IMPORTANT DISCLOSURE: The content of this page does not consider your particular circumstances and does not constitute personal advice. For specific advice always consult a registered Independent Mortgage Advisor.
Monday 25th November, 2024
Inflation May Rise Over the Winter – But What About Mortgages?
Prices for services have been rising throughout October, contributing to higher inflation than experts had expected. Watching inflation and keeping it in check are critical factors in the Bank of England’s decision to maintain, drop or increase the base rate. So, what does this latest increase in inflation mean for mortgage rates?
Experts widely predict that the BoE will hold the base rate at its current level in December, keeping markets stable. We still expect decreases in spring as inflation is likely to cool again. That’s because the current increase is largely tied to very specific services like airfares and package holidays which tend to change prices often and sometimes unpredictably.
As mentioned last week, we believe that in the long term, mortgage rates will continue to drop. Remember that mortgage availability has increased significantly since August, attracting more buyers to Edinburgh. To learn more, contact our Director, Fiona Vernon on 07900 605674 or email [email protected].
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Monday 18th November, 2024
BoE Predicts Cautious Base Rate Drops Over the Coming Months
What’s happened during the week and a bit following the BoE’s base rate drop? It’s fair to say that the biggest news stories came from across the Atlantic this week with the USA electing a new President and the Federal Reserve dropping interest rates by 0.25%. In the United States, interest rates are expected to fall further.
Here in the UK, the Bank of England has advised caution, stating that interest rates are unlikely to drop further buth not excessively and more slowly than analysts expected even a few weeks ago. In Scotland, we’re enjoying the continued high level of interest in period property viewings looking ahead to the budget statement due in early December.
In the long term, that means the cost of mortgages will likely drop, continuing to attract buyers to some of Edinburgh’s most astonishing period properties. Would you like to talk about selling your period home? Talk to our Director, Fiona Vernon on 07900 605674 or email [email protected] for more information.
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Monday 11th November, 2024
The BoE Base Rate Has Been Dropped – What’s Next for Lenders and BTL Landlords?
This week, the Bank of England announced the second drop in its base rate this year. The bank met most analysts’ predictions with its decision, and it’s a little too early to say how mortgage lenders will react.
In the meantime, let’s take a look at the buy-to-let market in Edinburgh. Traditionally, BTL investments in Edinburgh period property have performed strongly. Still, this year has brought some changes and challenges for BTL landlords, which may seem some investors leave the market. The news is not all bad, though.
Challenging markets always create opportunities for investors who are ready to deal with short-term obstacles to reap long-term benefits. Scottish landlords have benefited when the Cost of Living (Tenant Protection) (Scotland) Act 2022 ended earlier this year. Rents rose but not extraordinarily and came in line with what would have been expected without the legislation, and the market stabilised.
With continued demand for high-quality private rental properties, investing in period property remains not only viable but simply advantageous. To learn more, talk to our Director, Fiona Vernon on 07900 605674 or email [email protected] for more information.
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Monday 4th November, 2024
Three Days Until the Next BoE Base Rate Announcement…
As economists are still trying to consider the most likely effects of the Labour government’s first budget statement, mortgage professionals are getting ready for the Bank of England’s next base rate announcement. The Monetary Policy Committee (MPC) is due to release its decision on 7 November, and we’re looking forward to nringing your the latest update right here.
Recent predictions from various economists seem to suggest that rates may continue to drop over the next year or so. However, the final decision lies with the MPC. Keep checking back here for next week’s update.
In the meantime, if you would like to discuss selling your Edinburgh period property, now or in the future, talk to our Director, Fiona Vernon on 07900 605674 or email [email protected] for more information.
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Monday 21st October, 2024
Pound Sterling Strengthens as European Central Bank Drops Interest Rates
This week’s headlines on interest rates were dominated by the European Central Bank (ECB) dropping interest rates for the third time since the beginning of the year. Within 24 hours of the announcement, Pound Sterling strengthened against the Euro.
In the UK itself, it has been a quiet week for mortgage lenders as many are waiting for Labour’s budget statement at the end of the month and a potential interest rate cut next month.
Buyer interest remains high with plenty of competitive mortgage rates available to suit buyers in different circumstances. Some fixed-rate deals are available with interest rates below 4%. Those rates may drop even further if the BoE drops the base rate again later this year.
All in all, that means now is a great time to start thinking about selling an Edinburgh period home. To learn more, talk to our Director, Fiona Vernon on 07900 605674 or email [email protected] for more information.
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Monday 14th October, 2024
Mortgage Lenders Prepare for Labour’s Budget Statement
After two months of high activity levels across most segments of the mortgage market, October is looking a little quieter. Mortgage affordability and availability remain at high levels, instilling confidence in the market as a whole and encouranging prospective buyers to schedule viewings. At the beginning of October, there were more than 6,600 mortgages available in the UK.
Lenders, sellers and buyers alike are waiting for the Labour government’s first budget statement on 30 October. At the same time, experts expect another drop in the Bank of England base rate, most likely in November. We’ll update you here as soon as we see new developments in the market. In the meantime, feel free to contact us for more information about period property sales in Edinburgh.
Whether you are looking to sell now or in a year, you can reach our Director, Fiona Vernon on 07900 605674 or email [email protected] for more information.
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Monday 7th October, 2024
Mortgage Affordability Helps Stabilise Scottish Property Sales
August and September’s mortgage news revolved around lenders dropping rates and launching countless new deals into the market. As we’re heading into October, it’s time to take a closer look at the effects the all this activity has had on the Scottish prime property market.
Two things stand out:
(1) mortgage affordability has increased across most market segments as mortgage costs are once again dropping below rental costs. We believe that this will drive further activity, especially if the Bank of England reduces the base rate once again in November as widely predicted.
(2) the Scottish property sales market overall is stabilising. Prime properties tend to be less susceptible to short-term changes, but increasing stability has a positive effect here, too. Early data from Scottish and UK-wide house price indices indicates growth.
For more information on either, take a look at our October market update or contact our Director, Fiona Vernon on 07900 605674 or email [email protected] for more information.
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Monday 30th September, 2024
Mortgage Rates Drop on High Street and Specialist Lenders’ Products
The last week of the month has seen even more cuts in mortgage rates offered by both high street and specialist lenders. Santander has been one of the latest big-name lenders to offer a rate below 4% on its two-year mortgage deal.
Specialist buy-to-let lender Keystone Property Finance has also joined the ranks of lenders offering more competitive options to prospective buyers with standard two-year fixed rate deals starting at 3.24%.
Across the market, the picture for borrowers is clear – there are more options available than we have seen for well over a year. That is also good news for period property sellers: with buyers finding it easier to secure finance, interest is bound to increase is we continue further into autumn.
If you’re thinking about buying or selling a high-value property in Edinburgh but are unsure where to start, feel free to contact our Director, Fiona Vernon on 07900 605674 or email [email protected] for more information.
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Monday 23rd September, 2024
BoE Base Rate Remains as More Lenders Drop Their Rates
The Bank of England’s highly anticipated interest rate announcement had property and mortgage experts glued to their screens this past week.
As the industry was waiting for the Bank’s latest decision, more lenders started offering competitive fixed rate deals. Halifax and Virgin Money are among the most recent lenders to cut fixed rate deals. Buy-to-let specialist Accord is also bringing more tempting rates to the market for any borrowers looking to purchase or remortgage investment properties.
Are you thinking about getting a better deal? The last few weeks have seen some of the best deals in months come to the market. At Ativa Property, we’re lucky to work closely with independent mortgage advisors that are happy to look for deals to suit different circumstances. If you’d like to know more, contact our Director, Fiona Vernon on 07900 605674 or email [email protected] for more information.
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Monday 16th September, 2024
Countdown to Another BoE Base Rate Cut?
As the property market overall is becoming increasingly more buoyant, with both buyers and sellers ready to act, lenders are waiting for the coming Bank of England base rate announcement.
To see how much has changed in the past few weeks, we only need to look at the number of mortgages available to borrowers. As of the beginning of September, that number stood at just under 6,500 mortgage products, roughly 700 more than buyers could choose from in February.
The effect on Edinburgh period property sales is clear – we’re seeing more interest from potential buyers looking to take advantage of some of the most competitive deals we’ve seen in months. Would this be the right time for you to consider selling your period property? Contact our Director, Fiona Vernon on 07900 605674 or email [email protected] for an informal chat about your circumstances.
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Monday 9th September, 2024
Less Than Two Weeks Until the Next BoE Base Rate Announcement
August was a busy month for mortgage news and deals. The first half of September is looking a little quieter as borrowers and lenders are waiting for the next Bank of England base rate announcement.
That announcement will come on 19 September at noon. Until then, we may see a few more lenders launching competitive rates in line with August’s deals. However, we’re not expecting the same flurry of activity that we’ve seen for the past few weeks.
The fact remains that potential buyers currently have the best selection of mortgage deals we’ve seen for months. If you’re considering looking for an Edinburgh period property, let us know how we can help. Feel free to contact our Director, Fiona Vernon on 07900 605674 or email [email protected].
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Monday 2nd September, 2024
Big-Name Lenders Release Raft of Competitive Mortgage Deals
The month of August was rounded off by a host of big-name lenders joining the ranks of those who ha released more competitive mortgage deals earlier in the month. Lloyds, Halifax, TSB and Clydesdales Bank are amomng those who cut two-, three- and five year deals respectively.
Lenders catering to non-standard buyers, like Precise Mortgages, also re-launched some of their offers with lower fees and interest rates lowered in line with the BoE reduction in the base rate.
For buyers, that means better access to more enticing mortgage deals, and the increased interest and number of viewings wer’re seeing is reflecting this. For sellers, it shows that this autumn could be the best part of the year for putting a property on the market.
If you’d like to talk through your circumstances, contact our Director, Fiona Vernon on 07900 605674 or email [email protected].
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Monday 26th August, 2024
More Competitive Mortgage Deals Hit the Market
August has brought a lot of movement in the UK mortgage market. This week, the Nationwide has launched a deal that has the potential to convince buyers who’ve been holding out to start looking for Edinburgh period property.
This five-year fixed rate deal comes in at 3.78% with 60% loan-to-value. This kind of deal does come with a relatively high fee, although that is perhaps not surprising with a rate so far below the current market average of 5.25%. The cuts have been welcomed by industry insiders with some seeing a “pivotal shift” in the country’s mortgage market.
We’re starting to see increased activity in the Edinburgh market already with sellers getting ready to stage their homes and welcome potential buyers. If you’d like to chat about the best time to sell your period property or are ready to view an outstanding Victorian flat in the capital, contact our Director, Fiona Vernon on 07900 605674 or email [email protected].
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Monday 19th August, 2024
Five-Year Fixed Rate Deals Starting to Fall Below 5%
The Bank of England base rate cut at the beginning of this month continues to send ripples through the mortgage market. Whilst we saw the first mortgage deal drop below 4% right at the end of July (scroll down for more), we are now seeing high street lenders offering five-year fixed mortgage deals below 5%.
That’s great news for anyone looking to buy an Edinburgh period property and prefering predictable payments for several years. If you’re happy with a two-year fixed deal and able to pay a significant deposit, you’ll find rates as low as 3.49%. Lower mortgage rates are also good news for period property sellers. As mortgage costs are dropping, more buyers become interested in looking for their next home.
As a result, the rest of the summer and the autumn are bound to bring increased levels of viewing activity across Edinburgh. One of our most exciting listings at the moment is a stunning first-floor drawing room flat in the perfect Victorian Terrace.
If you’re interested in viewing period property or are considering selling your property, contact our Director, Fiona Vernon on 07900 605674 or email [email protected].
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Monday 12th August, 2024
More Lenders Start Cutting Mortgage Interest Rates
Since the Bank of England’s base rate cut at the beginning of the month, we’ve started seeing more activity from potential Edinburgh period property buyers and sellers. The mortgage market has also been moving over the past week, and lenders are starting to offer more competitive mortgage rates.
With potential buyers having access to some of the best mortgage rates in months, we expect viewing activity to increase. Are you thinking about selling period property? We’re happy to advise you! If you’re looking for a competitive mortgage, we’re happy to connect you with experienced mortgage advisers that can find you the best deal for your circumstances.
If you’re considering selling your property and are unsure about the next step, contact our Director, Fiona Vernon on 07900 605674 or email [email protected].
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By Claire Walsh, Independent Mortgage Advisor, CW Mortgages
Monday 5th August, 2024
Rate reductions are here!
The waiting and wondering is over – the Bank of England has announced a cut in the base rate from 5.25% to 5%. Even before the announcement was made, data from one major lender, Lloyds Bank, showed a significant increase in the number of people moving homes in the U.K. The rate cut will definitely increase the momentum in the market.
Amanda Bryden, head of mortgages at Lloyds Bank, commented on the findings: “…The home mover market has had a positive first half of this year, with an increased number of people making a move, in a sign [that] buyer confidence is improving. Six out of ten movers have chosen detached or semi-detached properties, as larger living areas make them a popular choice as people seek more space and privacy.”
For more information about this or any other mortgage enquiries please contact me [email protected] or call 07855452368.
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Monday 29th July, 2024
First Mortgage Rate Drops Below 4%
As we’re waiting for the next base rate announcement from the Bank of England, it looks like lenders are getting ready for a period of enhanced competition. Most recently, the Nationwide announced a rate of 3.99% on five-yer fixed mortgages with a 40% deposit. It’s the first time since February that the country’s largest lender has offered a rate below 4%.
At the same time, the average mortgage rate for two-year fixed deals has also dropped well below 6% this month. If the BoE’s rate drops below its current 16-year-high at the beginning of August, we’re very likely to see more competitive mortgages coming on the market. We’re sure that this will give the entire market a boost, increasing both buying and selling activity in the Edinburgh prime property and period property markets.
If you’re considering selling your property and are unsure about the next step, contact our Director, Fiona Vernon on 07900 605674 or email [email protected].
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By Claire Walsh, Independent Mortgage Advisor, CW Mortgages
Monday 22nd July, 2024
Focus On – Mansfield Building Society
Mansfield BS Launches into Scottish Buy-To-Let Market
Mansfield may not be a household name in the mortgage market, but the company definitely has comparative products and services.
For more information about this or any other mortgage enquiries please contact me [email protected] or call 07855452368.
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By Claire Walsh, Independent Mortgage Advisor, CW Mortgages
Monday 8th July, 2024
What Does The Result Of The General Election Mean For House Buyers?
With the landslide victory for Labour, it is all change at Downing Street. But how will the new government help first time buyers and other home buyers?
Looking at Labour’s manifesto, there will be no immediate changes in regards to VAT, national insurance or income tax. The manifesto also contains measures to help first time buyers including a permanent mortgage guarantee scheme to support those with a low deposit. With a new government in place, there could also be a renewed optimism in the economy, and this can all help bring down inflation and encourage lower mortgage rates, which we can all look forward to.
For more information about this or any other mortgage enquiries please contact me [email protected] or call 07855452368.
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Monday 1st July, 2024
Mortgage Rate Cuts on the Horizon
The month of July is shaping up to be a calm and steady one for property sales. With potential Bank of England base rate cuts expected as early as August, and the number of available mortgage products growing, potential buyers have plenty of options to choose from.
While some sources had predicted a drop in the base rate for this month, the BoE appears to be waiting to make sure that inflation remains at its target rate of 2%, which it hit in May after reaching a high of 6.7% last September.
For sellers, that means now is a good time to prepare for a successful sale. Presenting a period property at its best can make the difference between a home lingering on the market or closing a deal within days. If you’re considering selling your property and are unsure about the next step, contact our Director, Fiona Vernon on 07900 605674 or email [email protected].
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By Claire Walsh, Independent Mortgage Advisor, CW Mortgages
Monday 24th June, 2024
Lender Feature – Aldermore Bank
One aspect of being a good mortgage adviser is having good partners to work with. Although nothing to do with you, it a lender’s team is not up to scratch, it reflects on you and ultimately impacts the borrower. That is why I like working with Aldermore Bank.
When Aldermore is the lender that fits the bill for my clients, they are there to help me every step of the way, even if the circumstances are complex. Yes, they are a specialist bank, but their current buy-to-let rates are as competitive as the high street lenders.
A recent client was remortgaging four buy-to-lets in a limited company portfolio. It may not have been a perfectly smooth process. However, by talking constantly to the lender’s team and getting back to my client at every step and explaining in layman’s terms what was needed, we managed. This kind of service if of the utmost importance to most people, and lenders with a good team are always the ones I will go to if the rates are similar to others with a less favourable service record.
For more information about this or any other mortgage enquiries please contact me [email protected] or call 07855452368.
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By Lynsey McMenemy, Independent Mortgage Advisor, Hansar Mortgages
Monday, 10th June, 2024
Mortgage market update
For more information about this or any other mortgage enquiries please contact Lynsey McMenemy on 0800 999 1435 or email [email protected]
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By Lynsey McMenemy, Independent Mortgage Advisor, Hansar Mortgages
Monday, 26th May, 2024
Mortgage market update
For more information about this or any other mortgage enquiries please contact Lynsey McMenemy on 0800 999 1435 or email [email protected]
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By Claire Walsh, Independent Mortgage Advisor, CW Mortgages
Monday 20th May, 2024
Lender Feature – LendInvest
New: 80% LTV buy-to-let products, rate reductions and new holiday let products
LendInvest have more choice now since the launch of their new products for buy-to-let customers. They are a specialist lender for your buy-to-let purposes with 80% loan-to-value products. Most lenders only go up to 75%. LendInvest are a specialist in this area and have an easy application process that an independent mortgage adviser will take you through.
- Up to 80% LTV five-year products for standard properties and small HMOs
- Increased max. LTV for new build flats in line with new build homes
- 2-year and 5-year fixed rates for holiday lets are now available
- Increased maximum loan sizes up to £3 million
For more information about this or any other mortgage enquiries please contact me [email protected] or call 07855452368.
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By Lynsey McMenemy, Independent Mortgage Advisor, Hansar Mortgages
Monday, 13th May, 2024
Mortgage market update
The maintaining of the base rate at 5.25% was not a surprise and was a disappointment for many, but the mortgage market is in a much more stable position, industry experts have said.
“Those buying and remortgaging have enjoyed the competition on pricing that we’ve seen so far in 2024, with average rates comfortably below the figures we saw last summer. We are seeing strong demand across the board, but particularly from first-time buyers, who are being helped by wage inflation and house price stability, as well as wider inflation edging down slightly.”
The average selling time across Edinburgh, the Lothians, Fife and the Borders during February – April 2024 was 33 days, which is six days slower than the same time last year. We have seen a 19% increase in stock availability in April so now is a good time to sell.
For more information about this or any other mortgage enquiries please contact Lynsey McMenemy on 0800 999 1435 or email [email protected]
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By Claire Walsh, Independent Mortgage Advisor, CW Mortgages
Monday 6th May, 2024
Lender Feature – Aldermore Bank
Specialist lenders can be used when high street lenders have their standard matrix and clients don’t fit. Thankfully, Aldermore can look more closely at certain aspects of a poor credit history, whether it is through a lack of credit or clients having some blips on their credit history.
Some of the key features include:
- Combined county court judgements (CCJs) and defaults up to £300 per applicant will now be ignored across all levels of criteria
- Level 1 and level 2 clients may be eligible for up to 95% loan-to-value (LTV)
- Level 3: historic mortgage loan arrears, CCJs and defaults from six months are permitted. In addition, a maximum of three missed unsecured loan payments in 12 months is allowed as long as the customer is currently up to date.
These are just examples, but it is always good to know that your Independent Mortgage Adviser has other options for you.
For more information about this or any other mortgage enquiries please contact me [email protected] or call 07855452368.
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By Lynsey McMenemy, Independent Mortgage Advisor, Hansar Mortgages
Monday, 29th April, 2024
Edinburgh market update
Spring is here it’s also the perfect time to sell your home in Scotland as we head into the busiest season of the year for moving home. We have seen over 250 new listings in the last week advertised.
It may come as a surprise to some that Edinburgh is the second fastest-growing city in the UK after Manchester, with a 12% rise since 2006.
There are great indicators for the health of the property market in 2024. We expect monthly new listings and monthly sales agreed to continue to perform strongly over the coming months as buyers and sellers exercise their confidence in the market, although we have not seen any base rate drop as yet, we are positive better rates are coming.
Some of the lenders are introducing new products such a “own new” and “helping hand” which gives eligible clients the option of borrowing a higher loan amount when taking a 5 or 10 year fixed rate product.
For more information about this or any other mortgage enquiries please contact Lynsey McMenemy on 0800 999 1435 or email [email protected]
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By Claire Walsh, Independent Mortgage Advisor, CW Mortgages
Monday 22nd April, 2024
Lender Feature – Mansfield Building Society
The Mansfield offer interest only mortgages on a variety of fixed rate and discounted rate products, as follows:
- Up to 75% LTV up to age 70 (70% between ages 70 and 85)
- Part capital repayment / part interest only is available (interest only element capped at max LTV above)
- A variety of repayment strategies acceptable, including stocks and shares, sale of a buy-to-let or holiday home, property downsizing and more.
However, there are some caveats. Property downsizing is available as a repayment strategy to allow people to repay the balance using equity in their property. There must be a minimum £200k equity in the property. Downsizing might be useful for those looking to raise capital in later life without the use of RIO or Equity Release.
For more information about this or any other mortgage enquiries please contact me claire@cwmortgages or call 07855452368.
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Monday, 15 April, 2024
Fixed Rate Mortgage Rate Update
According to Moneyfacts, following six consecutive months of mortgage rate cuts, rates have started to edge up since the start of February – the two-year fixed rate mortgage has risen from 5.56 per cent to 5.8 per cent and the average five-year fix has risen from 5.18 per cent to 5.39 per cent. This means there’s no longer any sub 4 per cent rates available, taking us back to where we were in December, 2023.
However, these rate rises are not expected to last with predictions that rates will start to fall slowly over the course of the next year or two.
Always seek advice from an independent mortgage advisor who can tailor their advice to meet your specific needs.
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By Claire Walsh, Independent Mortgage Advisor, CW Mortgages
Monday 8th April, 2024
How Are House Prices Fairing?
According to the latest Halifax Price Index house prices rose by 2% in March, on a quarterly basis, though the price of a UK property fell by -1% or £2,908 in cash terms.
Karen Noye, mortgage expert at wealth management business, Quilter,said: ”The dynamics of the mortgage market have played a pivotal role in shaping the current state of the property market. Initial cuts in mortgage rates sparked a renewed interest among potential buyers and movers, who had previously adopted a wait-and-see approach due to the financial uncertainties of 2023. However, the subsequent slowdown in rate reductions by lenders has served to keep property price rises in check.”
What we may be looking at is a spring surge with revived buyer confidence that may help with house price increases going further into the year.
For more information about this or any other mortgage enquiries please contact me claire@cwmortgages or call 07855452368.
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By Lynsey McMenemy, Independent Mortgage Advisor, Hansar Mortgages
Tuesday, 2nd April, 2024
Mortgage Update
Some news just launched last week, a lender has just introduced a 99% mortgage product this week for first time buyers with just £5000 deposit available up to £500,000.
This could be a game changer for many dreaming of becoming homeowners. It is helping those who need it most to get onto the property ladder, and subsequently allowing those already on the ladder to move further up.
For more information about this or any other mortgage enquiries please contact Lynsey McMenemy on 0800 999 1435 or email [email protected]
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By Claire Walsh, Independent Mortgage Advisor, CW Mortgages
Monday 25th March 2024
Good News from Virgin Money
When clients have second jobs , are self-employed or contractors sourcing their mortgage can be a bit more complex. More lenders need to help, especially when people have second jobs as most lenders will not take100% value of a second income. However, one such lender that is more open to this is Virgin Money.
Virgin Money has announced changes to its mortgage lending policies, alongside updates to several of its mortgage products. The modifications are designed to provide more flexibility for borrowers with second incomes, contractors, and those currently on probation in their employment.
Key changes to the mortgage lending policy include allowing 100% of income from second jobs to be considered, provided it has been consistent for at least 12 months, a shift from the previous requirement of 50%, and a two-year employment history.
Good news for people in these categories.
For more information about this or any other mortgage enquiries please contact me claire@cwmortgages or call 07855452368.
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By Lynsey McMenemy, Independent Mortgage Advisor, Hansar Mortgages
Monday 18 March 2024
Mortgage Update
A net balance of 10% of surveyors reported that house prices rose through the month of February, as we head into spring the busiest time of the year for property sales, particularly for Edinburgh.
Despite November to January typically being a quieter period for the residential property market, property sales volumes across East Central Scotland saw a gentle but encouraging uptick of 2.8% year-on-year, according to the latest data from ESPC. This indicates growing interest among buyers compared to the same period last year which bodes well for the rest of 2024.
We have seen a slight increase in mortgage rates this month as the swap rate has risen, however, as the base rate remains at 5.25 % we expect the rates to start declining from April 2024.
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By Claire Walsh, Independent Mortgage Advisor, CW Mortgages
Monday 11th March 2024
THE IMPORTANCE OF YOUR CREDIT RATING
When applying for a mortgage your credit file always plays an important part of the process. If there are any small discrepancies then some mainstream lenders will overlook them but everything really needs to be in good shape. This part is not derived by your income per se. Highlights would be; not constantly using all of a big overdraft, paying more than minimum payment to your credit card, closing down any credit cards you do not use that have big limits, not using pay-day loans and not having car HP with large monthly repayments and a large balloon payment. I have found so many times that none of these credit items are considered by clients when going for a mortgage.
Should your credit be an issue then there are lenders that will still lend. That is why, more than ever, talking with an Independent Mortgage Adviser could be the solution to any possible issues as they have the knowledge and resources to research for you.
If you would like to talk to Claire about this or any other mortgage related question, get in touch with her directly on 07855 452368 or email [email protected]
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By Lynsey McMenemy, Independent Mortgage Advisor, Hansar Mortgages
Monday 4th March 2024
Approvals for home purchase mortgages rose for the fourth consecutive month in February, taking them to their highest level in more than a year, according to the latest figures from the Bank of England.
We are seeing growing confidence in the mortgage market with the swap rates reducing. The swap rate is what lenders pay to financial institutions to obtain fixed funding for a certain period, and as a result dictates mortgage pricing more so than the prevailing base rate. If swap rates increase, mortgage rates will increase for lenders to maintain profit margins, and vice versa. We are seeing 5 year fixed deals as low as nearly 4% whilst the base rate remains at 5.25%.
Many lenders have been adapting their products for customers and allowing extended terms into retirement for borrowers which has been welcome news for many.
For prospective buyers, right now could be a good time to buy because there is less demand due to higher rates.
Monday 26th February 2024
MORTGAGE NEWS UPDATE
THE HALIFAX DEFYS COMPETITION WITH RATE REDUCTIONS
Mortgage rates had been creeping up recently but at the end of last week the Halifax has surprised the industry by reducing its rates on selected fixed-rate products, including homebuyer products such as those for first-time buyers, large loans, New Build, and Affordable Housing including Shared Equity/Shared Ownership, plus corresponding Green Home products. Remortgage products will also see reductions in rates for large loans, Affordable Housing, and equivalent Green Home products.
By Claire Walsh, Independent Mortgage Advisor, CW Mortgages
Monday 26th February 2024
THE HOUSE-BUYING PROCESS
The house-buying process can be a daunting prospect for first-time buyers and home movers.
When you are booking a holiday or buying a car, some of our most expensive purchases, we can do this with the click of a button on the internet. It is not so easy to buy a house in this way yet…
The best place to start is to chat with a good, Independent Mortgage Adviser. They will go through the whole process with you. After your brain has stopped buzzing with all this information, they will then complete a fact find that will collect all your income and commitments, along with employment history.
Once this is complete they will be able to research and give you an idea of what you can borrow and what lenders will lend. They will have access to most of the marketplace to ensure you get the best product that suits your needs. Yes, you can go directly to your bank but they only have their own products and only use their own matrix, which does differ from lender to lender. A good broker will exhaust every avenue if it is a complex mortgage, or you have a complex income setup.
Once you have your Decision in Principle (something that you should have before you put in any offer) and an offer is accepted the IMA will complete the full application and submit with the documents requested by the lender. They will keep you up to date on how things are progressing and let you know when the offer is confirmed.
I always like to keep in touch with my clients and their solicitor to ensure everything is proceeding as it should and the completion date is in place, even though my job is done at this point.
This can be one of the most stressful times in your life but I always tell my clients that my job is to take that away that stress and I will do my best for them.
By Lynsey McMenemy, Independent Mortgage Advisor, Hansar Mortgages
Monday 19th February 2024
MORTGAGE UPDATE
The latest Property Watch report shows the UK housing market has exhibited surprising resilience in the early months of 2024, driven by pent-up demand, favourable mortgage rates, and improving buyer sentiment.
The Edinburgh market is showing continued resilience with a higher level of inventory available (26.9% up in January 2024 year to year in property listings).
The Scottish property market has fared comparatively better than almost all other UK nations.
Data published by Nationwide as part of their annual review showed that Scotland and Northern Ireland were the only parts of the UK where property prices rose in 2023.
We are seeing good signs from lenders across the board who are offering competitive rates for both 2 and 5 year fixed deals with some lenders offering 5 year deals with only a 2 year early redemption penalty.
By Claire Walsh, Independent Mortgage Advisor, CW Mortgages
Monday 11th February 2024
Focus On Furness Building Society – Buy-To-Let
As an Independent Mortgage Adviser I have had many different types of client come to me for mortgage advice. Some are straight forward and others are more complex. That is when my research helps me find the right lender to suit the client’s needs. There are so many lenders that you may not have heard of before but whose matrix fits the client’s situation.
One such lender is Furness Building Society. When there is a scenario that the client wishes to rent their property to a family member, this is called a family buy-to-let mortgage. There are only 3 lenders that will look at this and one does not l
end in Scotland. Lenders assume most people won’t charge their relative the full market rate and this is considered to increase the risk for both the borrower and the lender Furness cater for this scenario.
Case Study – Regulated BTL
Who did they help?
Lynn has a flat in Glasgow and wanted her two grown-up sons to move in.
What did she need?
Lynn’s mortgage deal on her flat in Glasgow was up for renewal and she was trying to find a lender that would allow her two sons to rent it from her.
How did Furness help?
Their flexible lending criteria allows them to assess mortgage applications on a full affordability basis using earned income up to the age of 69 and in this instance, Lynn wanted the term to take her to her expected retirement.
Their experienced underwriters were therefore able to review Lynn’s eligibility on the basis that the loan represented 60% LTV and she was able to afford her own mortgage, the Buy-to-Let mortgage and her usual outgoings using her own income. They did not factor in any of the rent paid by her sons.
For any advice on this or any other mortgage please get in touch.
By Claire Walsh, Independent Mortgage Advisor, CW Mortgages
Monday 5th February 2024
Thursday’s meeting of the Bank of England’s Monetary Policy Committee voted to keep the base rate at 5.25% for the fourth consecutive time. This may be much to the disappointment of borrowers who await cuts to interest rates in the hope this will make borrowing cheaper.
However, mortgage rates have already seen a steady decline over recent months. Rates, on average, on 2 & 5 year fixed rates have fallen by over one percentage point over the last 6 months.
Will mortgage rates continue to fall?
Borrowers should concentrate on what products and rates suit their needs, with the help of an Independent Mortgage Adviser, and not get caught up in base rate headlines as these tend to scare clients or give false hope.
There are some very competitive rates in the marketplace for Residential and Buy to Let mortgages, with some lenders undercutting the Bank of England Base Rate by a decent margin. Last week I saw a rate of 3.99% for a 60% Loan to Value Buy to Let. Definitely rates are better than 6 months ago.
Borrowers concerned about their existing mortgage or looking for a new deal would be wise to speak to a mortgage adviser that can research suitable rates and who has the whole of the market place to look at.
