Property and Mortgage News - Latest Mortgage Advice
What Is A Mortgage In Principle? - And How Do I Get A Mortgage In Principle?
A Mortgage in Principle confirms the amount of money you are able to borrow from a mortgage provider.
When buying a property, whether for your to live in or a buy to let, estate agents are now requesting you have one BEFORE you can make an offer on a property, with some in London requesting one before you can even view a property. But what are the other benefits, and how do you get one?
12/06/2023
Are Homeowners And Those Renting Set To See A Spike In Their Monthly Payments?
Boss of Barclays, CS Venkatakrishnan, believes household incomes will soon start feeling an even greater pinch when existing mortgage deals expire.
With projected increases in mortgage payments of between £266 - £416 per month, per household.
With 1.3 million households set to see their mortgage deals end in 2023, we ask our team, what can be done to offset rising costs, and is it best to go short, or long term, when next choosing a new deal.
25/05/2023
Does Moving A Buy To Let Into a Ltd Co Really Save You Money Overall?
With recent tax changes to BTL’s, many are looking to move their properties into a LTD Co in order to save tax… but could this end up costing you more?
We investigate the true costs of moving a property from your personal name, into a Limited Company you own
16/08/2022
Do You Need A Good Credit Score To Get A Mortgage?
For years we’re told that unless we have a ‘Good’ or ‘Excellent’ credit score, we’ll struggle to get the best mortgage deals, or will struggle to get a mortgage at all… but how true is that?
Have you been wasting years building a credit score, when you could’ve bought sooner, when house prices were cheaper and interest rates were cheaper?
15/08/2022
Mortgage Affordability Tests Scrapped By Bank Of England
The bank of England have officially scrapped rules forcing lenders to stress test clients affordability at 3% higher than existing rates.
Binning such rules could see lenders potentially offer more to those looking at borrowing, meaning getting onto the property ladder, or climbing the property ladder is no more achievable, but is it as easy as that?
01/08/2022
Renter Reform: Landlords Forced To Allow Pets, Notice Period For Rent Rises Doubles
Sweeping changes are being introduced by The Department for Levelling Up, Housing and Communities - but what does this mean for Landlords and Tenants alike?
16/06/2022
5 ways to become a successful property investor
Ever wondered how some people started? - Thinking of investing in property yourself?
You’re in luck!
In this article, we look at 5 of the best methods that can help any investor, whether experienced or new, expand their portfolio and become a highly successful, BTL investor.
17/05/2022
Chancellor Rishi Sunak warns that some mortgage payments could jump by £1,000 per year.
With interest rates expected to reach 2.5% over the next 12 months, anyone currently not on a fixed rate could see their mortgage payments increase dramatically.
28/04/2022
BREAKING NEWS: Bank of England base rate increases for 2nd month in a row!
What impact will this have on you?
What will this mean for the housing market?
Are there more rate rises coming?
How the increase in the Bank of England’s base rate could affect your mortgage – and why you should act now.
After months of speculation, the based rate was finally increased to pre-pandemic levels of 0.25% in December, however, why is this happening, and how the base rate is expected to continue rising? Find out all of this, and more, in this article published by our Director, Stephen Harrison.
Overpaying by not shopping around?
According to latest reports, homeowners who don’t shop around for a better deal, could be worse of by over £2,500.
Accordingly to latest research, those who stay on the lenders SVR and do nothing are worse off, but even those who remortgage with this existing lender for ease, mightn’t be getting the best rate (or even rates offered to new clients).
As such, it’s paramount that all borrowers look to reassess their options and discuss with a broker.
Buy To Let Bouncing?
House sales are up 10%.
BTL landlords currently only need to pay 3% Stamp Duty on any purchase below £500,000 thanks to Stamp Duty holiday.
Lenders are cutting BTL rates.
First-time landlord opportunities rising - some 65% of all BTL products are now accessible to FTLL’s.
You wouldn’t think the above is all accurate as of August 2021, off the back of a global pandemic and financial collapse. Yet, here we are. The BTL market would appear to booming for the first time since the introduction of the additional 3% Stamp Duty on all additional house purchases in April 2016. But what will happen to the BTL market after the Stamp Duty holiday ends? Time will tell.
Learn more at: https://www.mortgagestrategy.co.uk/buy-to-let-mortgages/
Mortgage costs to rise 13% by 2023?
October 2021 saw the return of the autumn budget, where the government set out its plans for the year(s) ahead.
What was not widely publicised was the potential increase in mortgage rates, especially over the next 24 months, to the end of 2023.
In the governments budget, an independent forecaster declared that we could see an increase of 13% in the amount of interest we, as borrowers, pay.
Initially this caused a slight stir as some outlets made it seem as though interest rates could go up 13% - however, it’s actually the amount of interest you pay, could increase. So if you were currently paying £100 interest each month, this could become £113 per month.
Read more at:
https://www.theguardian.com/money/2021/oct/28/homeowners-face-biggest-hike-in-mortgage-costs-since-2008
Base rate held at 0.1%, talk of 1% by end 2022?
On 4th November 2021, Bank of England held the base rate at 0.1%, when it was widely anticipated that it would be increased to help with inflation fears.
The bank acknowledged this, but said it would look to see how the wider economy faired following the end of the furlough scheme.
The committee noted that continued increases in asset and energy prices could see the bank rate rise to around 1% by the end of 2022.
But what does this mean for borrowers? - Well, good news. As the base rate has remained, it should in theory see mortgage rates remain around a similar level as present. However, with reported increases on the horizon (2022), NOW is the time to remortgage!
Mortgage Prisoners?
A recent report suggests up to 250,000 home-owners are ‘mortgage prisoners’, forced to pay standard variable rate mortgages which typically charge more than double the most competitive fixed and discount rates on the mortgage market.
Why?
Typically as a result of losing a job or a partner leaving, people often find themselves trapped as a result of not meeting affordability, despite maintaining all mortgage payments. A lot of people would rather go without food on the table than miss a payment and ruin their credit score. With the government now involved, plans are slowly taking shape for those in need.
Learn more at: https://www.bbc.co.uk/news/business-54897989
House Prices?
This Really does depend on who you ask, and when. A few months ago there was talk of a price drop once the Stamp Duty Holiday ended, however with that now being extended, and the re-introduction of 95% rates (which will only support demand for houses), along with the economy picking up with easing restrictions, some aren’t predicting a drop at all.
Savills suggest that house prices will increase between 24%-27% in some areas between now and 2025. Rightmove predict a 4% increase in 2021 alone. In November ‘20 average house prices were at a record £250,000 (up 7.6% from a year prior) in the UK, and £500,000 in London.
Read more at: https://www.independent.co.uk/news/business/uk-house-prices-average-record-stamp-duty-b1790196.html