Are you paying too much for your mortgage?

According to figures from UK Finance the average mortgage interest rate for new loans  was 2.07%. If you currently have a mortgage with one of the big banks and building societies and you are paying their standard variable rate you will be paying much more than you need to, Barclays are charging 5.24% Halifax 4.24% HSBC 4.19% NatWest 4.24%.

Save money on your mortgage

Call us now on 0115 8820441 to see what savings you may be able to achieve.

Your home may be repossessed if you do not keep up repayments on your mortgage. You may have an early repayment charge with your current lender and should check before re-mortgaging. We would always advise you to think carefully before securing other debtsagainst your home.

 

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Time to Remortgage?

Are you one of the many homeowners who will face higher mortgage payments as a result of banks increasing their standard variable rate of interest (SVR) following the Bank of England’s decision to raise the base rate last month?

Time to Remortgage

If you are a customer of one of Britain’s biggest mortgage lenders such as Barclays, Halifax, HSBC, Lloyds, Nationwide and NatWest and you have a SVR mortgage you will have seen these rates increase by 0.25% on the 1stSeptember.

If your initial mortgage deal has expired and you have taken no action it is highly likely that you will have been placed on your lenders and will experience increased payments unless you move to a cheaper fixed rate deal.

Depending on your circumstances you may be able to save hundreds of pounds a month so contact us today to ensure you are not paying more than you need to.

You may have to pay an early repayment charge to your existing lender if you remortgage. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

 

 

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HOW TO BUY YOUR FIRST HOUSE IN 2018

If you’re a first-time buyer, this could be the year you make your move. Lenders are offering competitive deals designed to meet the needs of those with smaller deposits. Stamp Duty has been cut for first-time buyers. There are more entry-level properties coming to the market now that some buy-to-let landlords are selling following the recent tax and Stamp Duty changes. Sellers, particularly in the capital, are reducing their asking prices to attract buyers, all of which could make your property purchase potentially more achievable. For those planning their move there are some practical steps you can take to ensure you reach your goal.
Draw up a budget
Moving can be an exciting but expensive time. We’ll help you work out how much you’ll need for a deposit. Although you can get a mortgage with a 5% deposit, some lenders require more and will offer better deals to those with bigger amounts saved. The good news is that as a first-time buyer you’re now exempt from Stamp Duty on first-time purchases up to £300,000 and the existing rate of 5% will apply between £300,000 and £500,000. The relief will not apply to properties above £500,000.
Drawing up a budget will help you work out how much cash you will need for the fees you can expect to pay. There are costs involved with arranging a mortgage, and we will talk you through these in detail and confirm them in writing. You’ll need a solicitor or a conveyancer to carry out the legal work and you’ll probably want to have a survey done to ensure the property is in a good state of repair.
Gather the evidence that lenders require
The chances are you’ll be taking out a sizeable loan, so lenders will want evidence that you will be a reliable and responsible borrower. Keeping up to date with credit card payments, mobile phone contracts and other regular payments like your rent will help. Cancelling unused subscriptions or cutting your spend on entertainment can be a good move, as lenders will look carefully at your outgoings. Check your credit report, as this will be scrutinised too; it’s a good idea not to make any new credit applications in the six months before you apply for a mortgage.
Explain your circumstances to sellers
Don’t forget that being a first-time buyer has distinct advantages from a seller’s point of view. You could prove to be a more attractive proposition than another potentially-interested purchaser who has a property they need to sell before they can proceed.
Check prices on the web
Many property portals provide actual sale prices achieved for properties in the area where you are looking to buy. This is generally a more reliable guide to values than the prices at which properties are being marketed. This information can help you form a picture of what a property is likely to sell for, and help you make a realistic offer.
Your home may be repossessed if you do not keep up repayments on your mortgage.

 

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Why Mortgages and Life Cover go together

Having a mortgage is a big responsibility, particularly when you consider how much debt you’re taking on. This is where life assurance can play a major part in securing the financial future of your family and provide the peace of mind of knowing that if the worst were to happen, your family would be financially secure and your mortgage paid off. It’s not a decision you should delay; as you get older the premiums increase in cost.


Protection for your needs

Term life insurance policies run for a fixed period – such as 5, 10 or 25 years – and pay out if you die during the term of the policy. There are various forms of cover, including level term insurance, where the cover remains at a constant level throughout the term of the policy, or decreasing term insurance where the level of cover gradually reduces over the term. The latter is often taken out with a mortgage, with the sum assured reducing in line with the outstanding amount of the mortgage.


Whole-of-life policies provide cover that lasts a lifetime. This type of policy doesn’t normally have an end date, so premiums are paid until you die, at which point the policy pays out (sometimes premiums end at a certain age, say 80, but cover continues until death).


As with all insurance policies, conditions and exclusions will apply.

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How can I improve my score

In our previous blogs we have explained how mortgage lenders use a formula to calculate a score and some of the things that can adversely affect this score and the outcome of your mortgage application.

In this article we explain some of the basic checks you can make to improve your rating:

  • Register on the electoral roll at your current address. You don’t have to wait for a reminder you can apply at any time on Gov.Uk
  • Make sure all your existing credit arrangements are registered to your correct name and current address
  • Ensure there are no other mistakes on your file, such as other people’s debts or payment. If you find errors challenge them and get them removed.
  • Don’t make too many credit applications in a short space of time. Credit searches stay on file for 12 months. Space them out.
  • If you have little or no credit history, apply for a credit card spend small amounts each month and repay in full.
  • Set up direct debits so that all payments are made on time. If you have problems negotiate smaller payments and stick to them.
  • If you have savings use them to pay off your debts.
  • When you take out a joint mortgage or joint bank account, your credit history is linked to that person. If they have a bad credit rating it could impact yours. If you split, write and tell the credit agencies.

This list is not exhaustive so always disclose all relevant facts and details to your adviser so that you get comprehensive mortgage advice relevant to your individual situation and the best lender for you.

Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage.

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What affects your credit score

In our previous blog we have explained how mortgage lenders use a formula to calculate a score that represents your credit history and helps to indicate what type of borrower you are. The result they come up with can affect the outcome of your mortgage application.

Making sure the information contained on your credit report is accurate and working to improve your score is essential to getting the best mortgage or loan. In this blog we have listed some of the things that can adversely affect your credit score.

  • Not being on the Voters Roll. Lenders check the roll as a precaution against fraud, to make sure that you live where you say you do. If lenders are unable to confirm your address history from the voters roll or other sources they are unlikely to consider you for a loan.
  • Frequent changes of address as this points to a lack of stability.
  • County Court Judgements.& Bankruptcy Orders stay on your record for six years.
  • Missed or late payments on credit cards, mobile phone contracts, energy bills or other commitments.
  • Too many credit searches in a short space of time. Whilst most people understand that applications for a credit card, mortgage or loan will result in a credit such, applications for contract mobile phones and house or car insurance that are paid monthly are also credit agreements and will result in a credit search. These searches will remain on file for a year.

Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage.

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Your credit score is important

When you apply for a mortgage lenders use a formula to calculate a score that represents your credit history and helps to indicate what type of borrower you are.

Making sure the information contained on your credit report is accurate and working to improve your score is essential to getting the best mortgage or loan.

A lender will use one of 3 credit agencies to check your financial history and payment record before offering you a mortgage; these are Experian, Equifax and Call Credit (Noddle). It is worth getting your credit report yourself to spot any potentially errors, such as an incorrect house number, post code or a wrongly registered County Court Judgment which could lead to your credit application being rejected. You should obtain your credit reports as early as possible in the process to check for errors and also whether you’re correctly showing on the electoral roll. You can run a free report at www.noddle.co.uk or carry out a free check with a 30 day trial at www.experian.co.uk and www.equifax.co.uk

Credit agencies compile credit histories from a number of sources, including the electoral roll, County Court Judgments and how effectively past debts have been paid. Every time you open a new form of credit it will leave an electronic footprint on your record. The decision to turn borrowers down for credit isn’t made by Experian or Equifax but by the lenders, based on their own criteria. Although you may find the lender simply tries to tell you that you need to speak to the credit agency.

Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage.

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Consumers confused over Help to Buy

Monday, November 04, 2013

There is confusion over the Government’s Help to Buy: mortgage guarantee scheme, with 43% of active first time buyers and other home movers confused about the benefit the scheme will give them.

In addition, almost a third (31%) of consumers who are looking to buy or move admit they do not know whether there is a difference between a 95 per cent mortgage offered by a lender which has signed up to the scheme and a 95 per cent mortgage from a lender which hasn’t. Results from a consumer survey commissioned by the Building Societies Association, show that:

18 per cent of first time buyers and 17 per cent of home movers believe that they can borrow more through this scheme than with a ‘standard’ 95 per cent loan. – 12 per cent of both first time buyers and home movers believe that their monthly repayments will be lower as a result of taking a Help to Buy: mortgage guarantee loan. – One in ten first time buyers (just 5% of home movers) believe that the scheme will protect them if they cannot keep up their monthly payments. – 12 per cent of first time buyers (just 6% of home movers) say that Help to Buy: mortgage guarantee will protect them if their house price falls. – 24 per cent of first time buyers and 22 per cent of home movers say that they are more likely to be approved for a Help to Buy mortgage.

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HOUSE PRICES

House prices continue to rise in October;

http://nfinews.co.uk/5KB-1Y9Y7-B676JHTOEF/cr.aspx

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Property Price Bubble talk is “premature”

Latest analysis from buy-to-let specialist, Assetz, suggests that we are far from the prospect of a ‘property bubble’.

In fact, they claim that current healthy buy-to-let yields, especially outside of London and the South East, are part of the proof that we are not at the end of another a boom/bust cycle.
Strong gross average yields of 7-8% currently being achieved across many economically sound regions of the UK indicate that investments are cash positive and have significant opportunity for price growth – buffered  against interest rate rises and dispelling talk of a bubble, says Assetz. Rental values are also set to continue rising, increasing incomes further as the number of renters surge in line with population growth, and property supply shortages for sales and letting persist.
Just before the market peak in 2007, average regional gross yields were much lower at 5-5.5% which were not sufficient to cover running costs and subsequent interest rate hikes. Investors at that point were speculating solely on continuing price growth and happy to accept cash losses on rental income after running costs, a very different picture from today.
Further analysis from Assetz illustrates that for a £100,000 property currently achieving an average 8% gross yield, £8,000 in this case, the value would need to grow by around 45% (and for there to be no growth at all in rents) for the gross yield to be reduced to 5.5 per cent. The most recent annual price growth reported by the Office for National Statistics was 4.1% across England, 1% in Wales and -0.7% in Scotland. London’s annual growth was 8.7% from August 2012 to August 2013.

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