Category : Mortgages

Help to buy mortgages

Is your Help to Buy deal ending?

Is your Help to Buy deal ending?

Since its launch in April 2013 more than 145,000 properties have been bought using the Help to Buy Equity Loan scheme. Five years on and the interest-free element of the loan is due to end, with homeowners potentially facing expensive fees.

The Help to Buy Equity Loan scheme was aimed at helping more first-time buyers onto the housing ladder; they just needed a 5% deposit and 75% mortgage. The remaining 20% came as a loan from the government and was interest free for the first five years.

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fixed rate mortgage

What’s the point of a property survey?

You’re not bound by law to have a survey done on a property you’re buying, but while it may feel like an unnecessary expense given all the other costs involved in homebuying, it could actually save money and stress in the longer-term.

A survey is basically a health check on a property. If the property fails the health check, you’d want to know about it before you proceed so that you can negotiate with the seller or – if the worst is revealed – pull out of the sale. There are a number of different types of survey ranging in cost: Read More

Family Insurance

What life insurance is best for your joint mortgage?

What life insurance is best for your joint mortgage?

When you take out a mortgage we would always recommend you take out appropriate life insurance too, so that you know your monthly mortgage payments are covered if things go awry.

If you’re buying on your own, a single life insurance plan will probably do the trick, but if you’re going into joint property ownership, a joint plan may be more appropriate. So, which is best for you?

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Help to buy mortgages

Valuations vs Surveys

Conveyancing is an important part of the home buying process, and it’s important to note it’s required when both buying and selling a property.

So what should you consider when choosing a property solicitor to carry out your conveyancing? It’s important to use a qualified property solicitor who’ll be able to take care of a range of issues on your behalf, including:

Interest Rates

Interest Rate Rise

Interest Rate Rise

In 2007 Bulgaria and Romania joined the European Union, Lewis Hamilton got his first drive in Formula 1 partnering with Fernando Alonso at McLaren, the final book in the Harry Potter series was published and England played their first match at the new Wembley Stadium.

It was also the year in which the Bank of England last raised interest rates, when they went up by 0.25%.

That all changed on 2 November 2017 when The Bank of England voted to raise UK interest rates for the first time in over a decade, to 0.5%.

So how could an interest rate rise of 0.25% affect you?
In the short term, both borrowers and savers could see a modest effect on finances. Savers are likely to be pleased with the welcome boost even if the increase is small. Borrowers however will be less pleased as they could see their mortgage repayments rise.

Impact on borrowers
Higher interest will mean that those on Standard Variable Rates (SVR) or Trackers Rates will see their mortgage repayments rise. On a mortgage of £125,000 an increase of 0.25% would result in payments increasing by £15 a month (£185 a year).

Those with larger mortgages will in turn see a larger payment increase. Those with a mortgage balance of £250,000 will see their monthly payments increased by £31 (£369 a year). However, the 57% of borrowers on a fixed rate deal will be unaffected during their fixed term.

These figures might not seem much in isolation, but borrowers should also be aware that higher interest rates could impact other borrowing, like credit cards, car credit or unsecured loans.

There’s also the prospect that rates could continue to rise over the long-term. If we hit 1%, the monthly repayments on a £125,000 mortgage would go up by £78.48, and £161.69 if the rate doubled to 2%.

If you’re concerned about the impact of higher interest rates on your mortgage repayments you may want to consider a fixed-rate deal, especially if you’re currently on SVR. Remember, if you’re already on a fixed-rate deal you may face higher repayments when the term ends. Make sure you diarise when that’s due to happen and get in touch so that we can discuss whether the best option is to remortgage.

Impact on savers
According to research there’s no standard savings account on the market that can outpace inflation, in fact the average easy-access savings account is currently paying 0.35% interest.

If the Bank of England increases the base rate savers may be able to find better returns to keep up with rising inflation. However, as with mortgages, those already on a fixed rate will not see higher rates until the term ends.

Whether you’re a saver or a borrower, we’d love to help you make more of your money. Get in touch to find out how.

Your home/property may be repossessed if you do not keep up repayments on your mortgage.

Self Build Homes

What are your grand designs?

What are your grand designs?

Are you a budding Frank Lloyd Wright with ambitions to design and build a home to your exact specifications?

If you’re choosing to build the property of your dreams and you have the knowledge and skills required, you could opt for the DIY route and take on as much of the work as you can. Or you could choose to employ professionals to do some, or all of it for you.

Self-build mortgages
Whichever route you choose you’ll need to think about financing the project – unless of course you have enough cash to fund such a project. You won’t be able to apply for a residential mortgage, which means you’ll need to look specifically at specialist self-build mortgages.

With a self-build mortgage you won’t receive all of the funds in one lump sum as you would with a residential mortgage. Instead, these types of mortgages tend to pay out funds during different stages in the process. For instance, once you’ve bought the land, or when the foundations are laid, or when the roof and windows have been installed.

The timing of the release of funds will differ depending on the materials you’re using to build your home, or if you’re renovating a property rather than building from scratch.

Self-build advantages
Every year 13,000 people from all walks of life take the plunge and build their dream home and it’s not surprising when you consider the benefits. You can choose where to splash out and where to save. You can design your living space around the needs of your family, so if you love cooking you could make the kitchen the heart of the home. You could also make sure your home has a low carbon footprint by installing solar panels and using eco-friendly building materials.

If you find a plot priced under the £125,000 threshold you could also save thousands on stamp duty as it is only payable on the purchase of the land.

If you have a grand design, or you’re looking for advice on non-standard mortgages, please get in touch. We can help find the right mortgage whatever your property ambitions.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Your home/property may be repossessed if you do not keep up repayments on your mortgage.