This top tip is easy for all - get life insurance to cover your mortgage even if you have a Death In Service benefit.

Life Insurance and Death In Service (DIS) are NOT the same.

For many, DIS will pay out 3/4x your salary, so if on £50k a year, £200k payment.

However, if you’ve taken a mortgage which is 4 to 5x JOINT incomes, this could be £50k + £50k (£100k) x 5 = £500k mortgage. As such, the DIS wouldn’t even cover your half.

Why is this bad? - well, for a start, the monthly mortgage payments will remain, as will the household bills, even if the mortgage is cleared down by half from your DIS.

Ultimately, your partner may still be forced to sell the family home during a difficult time, relocate away from their support network where property is cheaper, only adding to existing struggles.

Life Insurance is the solution.

To cover a mortgage , in joint names, can start from as little at £10 per month. It will ensure in the event of anyone named on the mortgage passing away, the mortgage is cleared in full.

It also means that the Death In Service benefit, once paid, can then go directly to supporting the households monthly bills for a sustained period of time, or allows for the remaining partner to take a period of time off work to look after the kids following such a tragic time.

If needing to review your options, please get in touch using the link below:
https://www.simpleremortgage.co.uk/insurance-enquiry

Given the increased monthly payments millions are now facing, interest only mortgages are now coming back to the forefront of conversations.

Unlike repayment mortgages where you pay back both interest and the capital, interest only mortgages work by paying back just the interest, only.

As such, your mortgage will be lower than if you were on a repayment mortgage, however, your mortgage balance WILL NOT reduce over time.

Great as a potential short-term option until rates hopefully fall back, at which point you could transfer back to a repayment mortgage. If not, come the end of your mortgage term you will still have the original outstanding balance to be paid.

Again, great for people with large amounts of equity looking to downsize eventually, or those with large pension pots.

It’s crucial to point out that interest only mortgages are not available to everyone as lenders require certain criteria is met, likewise, this is not a long-term solution for most.

Wondering what your options are and if right for you? Contact us, now.

Thinking you can’t get a mortgage as a First Time Buyer (FTB) due to low credit score?

Think again!

The score at the top of your credit file means little to lenders. It’s an indication of your financial health, however, it’s the history of payments that really counts.

For example, did you know you could get a mortgage purely from having a credit card you’ve cleared monthly over the last 10 months?

Even a score of 572/999 could be good enough providing you’ve never missed a payment on anything - so why wait longer than needed?

Wanting to know if you’re really ready? - get in touch today and let one of our team clarify your current position.

Seems a pretty bold claim that in today’s current climate where we are seeing rates soar, we are still saying you could save money on your mortgage, however, it’s true!

So how is this possible?

Many believe the interest rate charged by mortgage lender to be the most important factor when looking for the best mortgage deal, however, the length of time you take your mortgage over is just as important, if not MORE crucial.

Example:

• £200,000 mortgage, over 30 yrs on a rate of 5% = £1,073 p/m and total interest of £186,512 over the life of the mortgage. (yes, that’s right, almost double what you borrowed)

Or..

• £200,000 over 25 yrs at 5% = £1,169 p/m and £150,754 in interest over the life of the mortgage

Total saving = £35,758

Yes, you would be paying an extra £96 per month, and in today’s climate of rising bills that really could make a huge difference, but if you are still living with an excess/contributing towards savings each month, then maybe now is the time you start getting that money to work harder for you.

What better way that have it save you £35k and retire 5 years sooner?

See how much you could save, here:
https://www.simpleremortgage.co.uk/monthly-payment-calculator

Now, before we go any further - this is not a sales tactic.

In current market conditions, we are seeing roughly 2/3 lenders per day on average, withdrawing ALL products, with little to no notice.

A recent study published by MortgageSolutions found the average product in on the market for 13 days, before being withdrawn.

In 2022, it can be hard to stomach the high interest rates we’re seeing, and you will naturally be thinking ‘there must be better mortgage deals available to me’ - but this in itself can prove costly. Chances are, after the initial call you won’t search that evening, but the evening that follows will be spent trawling the internet and all the comparison sites known to man - showing the same results.

By the time you go back to your adviser 2 days has now passed and rates could look even higher due to changes.

The more complex your situation, the less options you have and the more prone you are to falling foul of this trap.

Mortgage advisers can source the best deals, whether a self-employed mortgage, a contractor mortgage or just your run of the mill setup - mortgage brokers are there to support and guide you to the best outcome, it’s in no ones favour if you could then search yourself and find cheaper.

So be prepare to accept that rates have gone up, and act fast and don’t miss out!

Are you, like the rest of us looking at the Bank of England increasing interest rates, and wanting to protect against further rate rises by fixing into a new deal, but wanting to move in the not too distant future?

Have you heard of porting?

Porting is the process of moving your existing mortgage, to a new property, WTIHOUT having to pay any early repayment charges (ERCs).

Any agreement will be subject to the lenders criteria at that point in time, and if additional borrowing is needed (for example because the property costs £100,000 more), it will all be done via your existing lender.

So - you really can have both your cake and eat it!

For years we’ve been brainwashed into thinking we must improve our credit scores, it’s pointless trying to obtain a mortgage until your credit rating is ‘Good’ or ‘Excellent’ - however this couldn’t be further from the truth!

In fact, lenders will either carry out a credit search, or run their own internal credit score - therefore leaving your personal score, redundant.

For example, you could have a score of 935 (excellent), however due to the fact you missed a mortgage payment 3 months ago, be declined for a mortgage.

On the other hand, you could have a score of 625 (fair/good) and be accepted due to the fact you’ve never missed any payments, you’ve simply a low score due to previously not having much in the way of credit.

If you’ve never missed a payment, don’t worry about your score!

If you’re a BTL landlord, by now you should know of the difficulties that potentially lie ahead in regards to the EPC requirements for rental properties in the UK. As of 2025, all new rental agreements will require and EPC reading of C or above, and by 2028, all existing rental agreements will require a rating of C or above.

Despite the fast approaching deadline, the UK government are yet to confirm exactly much they require landlords to spend trying to obtain a C rating, however early indications suggest between £8k - £10k PER PROPERTY!

Now, if you have 20 properties, this quickly adds up.

However, one thing you may not know is that this new EPC requirement does NOT apply to HMO properties. That’s right, it’s true. The requirement for HMO properties is remaining (at present) at an E rating.

So - before you spend thousands on your property, make sure you are actually required to. Check with you local council what classes as an HMO (not all councils have the same rule). If you have an HMO licence already, safe to say you should be safe.

Is it time you start thinking about HMOs?

Not sure how to finance an HMO or which lenders actually lend on this type of property?

Maybe you find yourself caught needing to fund works on a property, and are looking to remortgage?

Whether refinancing a buy to let, or looking to purchase an HMO mortgage - get in touch and see how financing both is easier than you think, with help from our mortgage advisors.

We hope this helps!

This month, given all that’s happening, we’re not just telling you to look at something mortgage related, but encouraging you to properly sit and review all finances.

Yes your mortgage is highly important and the biggest financial commitment most of us have, however, please do take the time to sit with your April bank statements and:

• Review all outgoings

• List exactly how much you’re spending on each area (gas/elec, food, takeaways, nights out, gym membership, entertainment (netflix/disney/amazon/apple TV)

• Now, where can you cut back? Where are you over spending?

• Have you swapped from one of the bigger supermarkets to a smaller one that’s cheaper?

• Could you get the bus/train to work instead of wasting money on fuel?

• Are you on the best mortgage deal available for you?

Did you know, since the latest base rate increase, if you’re sat on your lenders variable rate and have a mortgage of £250,000 - your mortgage payments have just gone up £70 per month, or £840 per year.

It’s amazing how much we could all save by simply dedicating the time to it.

We hope this helps!

Are you looking at bungalows and the ever increasing cost thinking you’ll never be able to afford one? Well, maybe it’s easier than you think.

Unlike Equity Release of yester-year, today’s ER products are limited to 55% LTV (meaning you will always have equity remaining for passing to loved ones), are paid as if an Interest Only mortgage, and even if not currently working, you can obtain an ER mortgage.

Example: Client currently living in a 3 bed semi, mortgage free, £200k value… wanting to buy £300,000 bungalow.

Value - £300,000
Equity Release Mortgage - £100,000
LTV - will never go above 33% (unless house prices go down)
Monthly interest only payment = £375 - £415 per month
Mortgage is then cleared via overpaying, selling and moving again, or on death.

With no income requirements, and even available to those with credit issues, Equity Release really is becoming a growing solution to thousands every year who want more, but have previously been unaware of their options.

Read more on the topic here: https://www.simpleremortgage.co.uk/equity-release

Did you know that mortgage offers are valid for 6 months? Did you know that some lenders can even extend beyond this? - Thinking how does this impact you? Well…

New Build = if a property is still in the process of being built, you want that security of knowing should the build take a little long than anticipated, your mortgage will still be there for you.

Purchasing = statistically, 1 in 3 purchases falls through, therefore the bigger your chain, the longer the house buying process is likely to take, as such, you want to rest easy knowing you can ride it out and won’t lose out on purchasing your dream home.

Remortgaging = if your deal doesn’t expire until end of September, and we are in March now, you might think it’s too early to start the process. You might be worried that mortgage rates will continue to increase as we’ve seen over recent months. 6 month offers allow you to capitalise on mortgage interest rates now and lock them in place. As such, even if rates go up another 0.5% - you’re deal will remain in place, secured and ready for you to complete when your current deal ends.

This one is one of the most essential, yet easiest things to get right - sort your mortgage, and then look at sorting your solicitors.

Why?

Simple... not every solicitor/conveyancer is on every lenders approved panel. For example, the best deal out there might be with Coventry Building Society, yet you local solicitor mightn’t have transacted with them in the last 6/12 months with being a smaller building society compared to a major bank. If this is the case, your solicitor might have been taken off their approved panel.

But again, why is this a big deal?

Well, Coventry BS might have a deal that over the next 5 years, is £800 better than the next cheapest lender available to you. However, your solicitor mightn’t be on their approved panel, and you may have already instructed them and paid fees in the process. If so, you’re now stuck with them and forced to look at an alternative lender, therefore costing you £800 in the process.

When an advisers looks to support you with selecting a solicitor, look to entertain the idea, it might just save you £££’s.

If you’re thinking towards the summer, and gearing up towards that next move, there’s one thing that will always set you off on the right path - speak to a mortgage advisor now!

Even if you don’t have plans on moving just yet, it’s always best to invest 20-30mins speaking with a mortgage broker, to help blueprint the structure of that next move.

How much can you really borrow? - simple question, but did you know some banks will lend you only 4.5x your income, yet there are others who can offer 5.5x.

Avoid going to your current bank? - why we hear you ask… simple, your bank can only offer you their mortgage deals, and NOT THE BEST mortgage deals on the market for you and your circumstances. Did you know we recently saved a client £1,300 when compared to the ‘best’ mortgage deal offered by their bank. That doesn’t sound like the best to us!

Tax return season in full flow? - with the government extending the 2022 deadline until the end of February due to ‘covid delays’ many of you will still be scratching your heads in terms of how to structure your returns. All we can advise is that the more you earn, the more you can borrow. Keep in mind lenders will focus on Net Profits and not Turnover, it’s always best to reflect true earnings if you’re thinking about getting a mortgage. Just remember, Net Profits are what lenders will base affordability off.

Needing a Decision In Principle? - All estate agents will ask one thing and one thing only when you first book to view a property… have you got a Decision In Principle? For most, the answer is yes because they’ve gone to their bank, however going directly to your bank means you’ve also been credit searched, which also means you’re likely to go back for the sake of ease.

Shake this habit, call us on 0330 100 1231 or start you journey online, as at Simple Remortgage, we can offer you once within the space of 10-15 minutes and DO NOT run any credit searches on you in the process.

So, what are you waiting for?

No matter who you are, where you are, there’s always a holiday atmosphere in the air through the month of December, and as such, we often fall into a false sense of security whereby we put things off until January… DON’T!

Reports out towards the end of November suggest policy makers could be about to increase the Bank of England base rate, catching millions off guard.

Want to ensure you’re protected? - best thing to do is speak to one of our expert mortgage advisers, and see what is the best mortgage deal for you, in the UK, right now. With mortgage offers valid for 6 months, it’s always best to get a mortgage deal secure as soon as possible, because once you have your mortgage offer, it is valid in most cases for 6 months, therefore protecting you against any future rate rises!

It’s a common thing, you aren’t alone. Whether it’s getting your child into a better school catchment area or relocation for work, there’s sometimes a need for a mortgage over a shorter period of time.

Solution? - Think variable, think Bank of England (BoE) tracker.

BoE trackers will only ever move in line with movement in the base rate and will not be influence by your lender. As such, there’s an element of security/stability as although the rate could increase or decrease, we know it’s not influence by the performance of the bank in question. We also know that base rate movement is decided on monthly, and therefore can be seen as a less ‘volatile’ option.

Another great point is that ‘most’ (but not all) trackers have no Early Repayment Charges, meaning you have the freedom to move/pay back your mortgage on your timeframe.

Speak to an adviser today.

Have your thought about the equity within your property? For many thought can be daunting, after all we spend years clearing off our mortgage, so why would you potentially increase your mortgage?

Well often, it’s a quick and easy way of pulling together a deposit and getting that first BTL. Yes, your mortgage may have increased by £20,000 for example, but with the rental income, you could potentially use some of the funds to support the increased mortgage payment instead of borrowing over a longer period of time. Or, you could save some of the rental and in a few years make an overpayment on your residential mortgage of £20,000, and therefore clearing off the additional borrowing you took out to fund the venture - all whilst no owning two properties.

Is it time you spoke to an adviser?

One of the easiest ways to lose money each month on your mortgage, is to think that staying with your existing lender is right thing to do. It isn’t.

Shop around.

‘Don’t they give preferential rates to existing customers?’ - No.

Sometimes, it might seem as though you’re getting a better deal because the interest rate being offered is lower than the deal your currently on.. winner. BUT… have you actually compared that deal against other lenders? Is it actually a good deal?

The reason why the new rate may be lower is because your Loan to Value (LTV) has reduced, and you’ve changed LTV bracket and qualify for better deals. But just because it’s better than what you’re on now means nothing. In this situation, most lenders will offer a better rate than what you’re on.

In fact, in a lot of instances, retention deals prove to be higher not only than market average, but higher than the deals your lender offers to new customers!

Isn’t it time you got in touch and compared?

There’s a huge misconception, even when looking at other mortgage advisory firms and the advice they dispense, that you should only apply for a new loan, credit card, or car finance - once your mortgage has been approved. WRONG!!!

Please DO NOT follow this advice as it will only destroy your chance of getting a mortgage!

Truth? - you need to wait until the completion of the mortgage has taken place.

Why? - Lenders will often re-score your application at the point of completion, especially where it’s taken a while to complete (5-6 months), to ensure circumstances haven’t changed. If they carry out a new credit search and see a new loan not previously declared, they’ll put a hold on your application and will factor the monthly commitment in as a deduction, which could reduce the amount you’re able to borrow and kill off your ability to get a mortgage.

Not all lenders do this, but whether you’re purchasing or remortgaging, you certainly don’t want to take chances when you could simply wait a few weeks.

Speak to an advisor now for more advice that will really shape your future

One of the easiest ways to get a mortgage offer fast, is to prepare the documentation likely to be needed, in advance.

Most lenders will ask for latest 3 months payslips for any applicant (or last 2 years worth of accounts for self-employed individuals), latest 3 months bank statements, latest annual mortgage statement and sometimes ID/proof of address documentation separate to any of the above.

It’s worth noting that if you’ve had a recent change of jobs or a pay rise, further supporting information regarding this will also be needed.

Each case is assessed on it’s own merit, and the list of information needed is not limited to the above, however it’s a brilliant starting point.

Speak to a mortgage advisor today.

At school we learn about a lot of things, but finances and the processes behind certain transactions, we don’t, despite having a huge impact on our lives.

Many clients will often call up a few weeks before their current deal is due to expire, and there’s actually nothing wrong in doing this. You’re still before the date your rate is due to expire and fall onto the SVR, so why think otherwise?

Sadly, remortgaging from one lender to another, in today’s climate with Covid delays, it’s taking longer than normal for banks to process new applications. From the point of application to offer can take up to 4 weeks, then your have the solicitor work that happens thereafter which can take up to 2 weeks, switching you from one lender to the next and updating land registry for you in the process. This is 6 weeks in total providing all goes smoothly.

With this is mind, and the fact rates are at a historic low, anyone looking to remortgage should ideally start the process 2-3 months in advance.

Lock in that low rate before they start to increase. We’re seeing rates being withdrawn from the market with little to no notice, and often clients end up kicking themselves that they didn’t apply sooner. The important thing to remember is that if you apply and rates go DOWN, we can easily move you across to that better rate - no problem. If rates go up however, well, there’s no going back in time, so our hands are tied.

If you have left it late, that’s fine, we understand life gets in the way. We’ll do our absolute best and work with the contacts we have in order to try and escalate your application the best we can. At Simple Remortgage we don’t want to see any clients fall onto their SVR, however time isn’t always on our side, so please be proactive and start the process early.

Wanting to access your mortgage options, speak to a local mortgage advisor now.

It is possibly one of the most debated topics within the mortgage world between an adviser and their client. What can be said is, trust your adviser has done the maths.

Often you’ll see this amazing deal of 1.19% fixed for 2 yrs. On the surface this is incredible and yes, sign us up straightaway, however when you dig deeper and see the £1499 arrangement fee (for example), the wheels quickly come off for some looking to take advantage of this deal.

Why? - Simple, it doesn’t make financial sense. The low interest rate is NOT saving you enough money to offset the fee. The low interest rate might save you £900 in comparison to a 2.0% deal without fees, however if we use the example above and the fee of £1499, you are instantly £599 down overall. Most people will add the fee to the loan, so in addition to this, you also have interest mounting up on it year after year.

This is of course just an example, but the size of your mortgage is crucial:

The bigger the mortgage, the more impact the rate has and this often outweighs the fee and will save you more.

The smaller your mortgage, the more likely you’ll want to find a deal with no fees before focusing on the rate.

Speak to one of our advisers and find out what route is best for you.

With 2020 leaving many of us confused and uncertain of what lies ahead, we believe that for some, choosing a deal with no ERCs (typically a variable rate deal) could be better than the certainty offered by a fixed rate deal.

Why?

Well in 2020 many of us put our lives on hold. Weddings were cancelled. Big home moves were put off. Holidays were in our own back gardens. And the reality of potential job losses still looms.

Choosing a deal with no ERCs, at a time when interest rates are incredibly low and market stimulus is needed, could actually benefit thousands, if not millions, of people across the UK. Deals with no ERCs allow you the flexibility to; move house without being tied to your existing lender, draw down additional funds by remortgaging earlier than expected should they be needed (weddings back on), or simply the peace of mind knowing if you were to lose your job, you aren’t tied into a deal and suddenly facing a 3% charge of your mortgage balance to leave!

Is it time you spoke to a mortgage advisor?