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.
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.
