Mortgage payment holidays are ending – here’s everything you need to know

The coronavirus pandemic has impacted the finances of millions of households across the UK. With many sectors hit hard, the furlough scheme has supported jobs while the government made a range of grants and loans available to aid businesses through lockdown.

On an individual level, almost one in six mortgage holders in the UK took a mortgage payment holiday under a scheme devised by lenders and the Treasury. Continue reading

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Can I get a mortgage if I’ve been furloughed? Here’s what you need to know

At the end of July, approximately 9.5 million jobs from 1.2 million different employers were furloughed in the UK as part of the government’s Job Retention Scheme.

If you’re currently furloughed, you might be worried about your chances of getting a mortgage, particularly if you’re in the process of buying a home or switching your mortgage.

You may also have seen headlines in recent weeks about lenders such as Nationwide and TSB reserving the right to exclude the wages of furloughed workers when deciding how much you can borrow.

The good news is that many lenders continue to accept applications from furloughed workers. Read on to find out what you need to know.

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Need a self-employed mortgage? Here are 3 great tips

At the end of 2019, there were more than five million self-employed workers in the UK. While working for yourself offers many benefits, dealing with the financial aspects of running your own business can sometimes be a challenge – particularly when it comes to getting a mortgage.

Research from Aldermore Bank has found that three in ten self-employed workers believe that the mortgage process is biased against people who work for themselves. While it’s true that so-called ‘self-cert’ mortgages are no longer available, many lenders are more than happy to lend to self-employed applicants, and you can typically access the same great deals as employed workers.

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What is the Stamp Duty holiday and what does it mean for you?

In recent months, the government have unveiled a range of measures designed to support the economy through the coronavirus crisis. From the furlough scheme to discounts for eating out, the Chancellor has been forced to come up with a range of policy initiatives to kick-start the economy as the country emerges from lockdown.

In his recent summer statement, one of Rishi Sunak’s key announcements was a Stamp Duty holiday. With immediate effect, house buyers in England and Northern Ireland will benefit from a reduction in the amount of tax paid on the purchase, with many buyers paying no tax at all. Similar holidays have been announced in Scotland and Wales.

Here’s everything you need to know about the Stamp Duty holiday and what it means for you.

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Only Connor McLeod of the clan McLeod could claim immortality – You need Life Insurance

So why don’t more people read about Life & Insurance and Income Protection

All together now “Who wants to live foreveeeer, who wants….”

I also notice I have used the past tense about being immortal, however all joking aside, it is my suspicion that none of us are immortal. But how many of us make plans in case something comes along and puts our health, work or families at risk? Not enough it seems, although some of us do take care of our health with the use of supplements for our joints like the one on these proflexoral reviews online.

Too often I talk to clients, who tell me ‘my work cover is enough’, but don’t know what they have, or say ‘family will look after me’ and what is also talked about is “I’ll sort it once the mortgage is ok” but that day never seems to come, even once the mortgage is sorted, the need just seems to drift away, perhaps till it is too late.

I want to share some details with you that were released by an insurer about Life and Critical Illness cover.

  • the UK has a shortfall of cover of £24 Trillion (£24,000,000,000)
  • 56% of people have cover, but not enough
  • 87% of people have NO critical illness cover

Or what about income protection?

  • 1/3 of the population have no accessible savings,  should the worst happen1
  • Approximately 17,000 people reach their sixth week of  statutory sick pay2
  • Almost 1 in 5 people will stay off sick and eventually leave work2
  • Only 1 in 12 adults currently hold an income protection policy3
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Today’s Bank Base Rise

Well after 10 years it finally happened – the Bank of England have put the Bank Base Rate up.

The Bank Base Rate only went up by 0.25% but this is a good time to get your mortgage & other finances in order.

It may be November, but a Spring Clean could be just the thing. Both the Bank Base Rate and Rates in the general market are very low still and while they have moved up a little from the very lowest, but this can still make them less than half of most lenders standard rates.

It only takes about 15 minutes to check you eligibility for a new rate. Why not give us a call on 0131 339 2281.

But what impact will a Bank Base Rate rise have?

An interest rate rise of 0.25% has taken the Bank Base Rate up to 0.5%, which is still a historically low figure. Existing borrowers whose mortgages are directly linked to the bank rate will see an instant increase in monthly repayments. For example, for those with a tracker mortgage linked directly to the Bank of England (BOE) rate, for every £50,000 of borrowing on a 20 year repayment mortgage, the interest rate change today would rise their payment increase by £6 per month*.

The prediction, now fact, has already seen lenders withdrawing some of the lowest rates on the market and a rate rise could have a further impact on product availability. So if you’re currently on a standard variable rate or your current deal is about to come to an end, it may be worth reviewing your mortgage needs with an adviser.

*Indicative figure, calculations based on £50,000 borrowed over a 20 year term, with mortgage interest rates changing from 2% to 2.25%.

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Where can I get a 95% mortgage?

Where to find a 95% mortgage – by Mark Dyason

The market has changed dramatically in the past decade and buyers with a small deposit can find it difficult to get the right loan, but can still find a 95% mortgage, if you know where to look.

Many big banks are looking for customers with large deposits and perfect credit histories so wandering into your local branch might not yield the result you want. But don’t give up hope, there are many options available.

Do I need a perfect credit score?

A common misconception is that you need to have had pristine finances for a number of years if you’re to get a mortgage with a small deposit – but that’s not the case.

The majority of people have good credit scores. But even if you’ve had a financial blip in the past – such as a missed payment – there are still options for getting a 95% mortgage. These are usually from smaller lenders and building societies – which you might not find when you walk down the high street.

These lenders are ready and willing to help borrowers who have had some issues with credit in the past. A quick call to Edinburgh Mortgage Advice will help match you with the right 95% mortgage deal.

Bank of Mum and Dad

The original savings scheme

Can I use my parents as a guarantor? 

Some call it the ‘Bank of Mum and Dad’ as getting parental assistance is becoming common in today’s mortgage market.

A range of lenders will allow parents to act as a guarantor on your mortgage, or to offset your loan with their savings. For example, one lender offers 100% mortgages when parents place some of their savings into an offset account.

Your parents’ savings earn interest for three years and after this time they can move their cash elsewhere. By that point you’ll be able to stand on your own two feet and access cheaper mortgage rates, without parental support.

Are there other schemes available?

Many people are using shared equity schemes to purchase their first home. Shared equity allows you to move into your own house, without having to fund all of it.  In some cases a bank will lend up to 100% on your share of the property, meaning you do not need a deposit at all.

In Scotland the Low-cost Initiative for First Time Buyers (LIFT) is a scheme which can help you get onto the property ladder. You pay for a share in the property while the Scottish government pays for the remainder. This can really help those with smaller deposits own a home with a small deposit.

Mortgage Rates

Have a look at what 95% rates are available

Other government schemes are available in both England and Scotland, but again these may not be widely publicised at major lenders.

So stop pounding the high street and give Edinburgh Mortgage Advice a call on 0131 339 2281.

 

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How can a first time buyer get a mortgage?

They say buying a house is one of the biggest financial decisions you’ll ever make, and for any first time buyer this is a daunting prospect.

The mortgage market can be a difficult place to navigate and this is especially true when you’re doing it for the first time. First-time buyers have many questions but often struggle to find simple, plain speaking answers. That’s where we come in.

Speaking to a fully qualified mortgage broker will help match you with the right deal and hold your hand through the entire mortgage process.

First time buyer help from Edinburgh Mortgage Advice

How much can a first time buyer borrow?

How much you can borrow depends on a range of factors including how much you earn and how big a deposit you have saved. Banks and building societies will take into account how long a mortgage term you would like and if you have any children or dependants.

Lenders also look at how much you have borrowed elsewhere (such as credit cards) and your regular monthly outgoings.

Speaking to Edinburgh Mortgage Advice will help you understand exactly how much you can borrow, and how much your monthly repayments will be. An initial fact find can take just 15 minutes and will give you a better idea of what to expect.

Can I get a mortgage with my circumstances?

People who have irregular income or whose work is commission based can sometimes struggle to get a mortgage on the high street. But that doesn’t mean there isn’t a mortgage lender who will offer you a loan.

Those who receive bonuses, have stepped income, receive overtime payments or are shift workers can also find themselves at a disadvantage with the big banks. Yet there are lenders out there who will be receptive to your circumstances. Our team will be able to search across the market and find a lender that suits you.

What help can first-time buyers get?

Many a first time buyer will get financial help from their parents when buying their first house. But there are different rules depending on whether you’re receiving this cash as a loan or as a gift, and this could affect the type of mortgage you apply for.

There are also many government schemes which could help you make that first step onto the property ladder. There is no need to struggle on your own. We have dealt with hundreds of people like you and can guide you through the options that are available. We will be there from your first phone call to the day your mortgage completes.

To have a chat with our team and find the best first-time buyer mortgage for you, pick up the phone and call Edinburgh Mortgage Advice on 0131 339 2281 or contact us here

Posted in Edinburgh Mortgage Advice, First Time Buyers, Government Schemes, Housing Market, Lenders, Mortgage Know How | Tagged | 1 Comment

Save enough on a remortgage to pay for your summer holiday?

During the cold winter months our attention often turns to the summer – and the possibility of a holiday. Newspapers and TV stations are filled with images of sun-kissed locations but these getaways, especially with the whole family in tow, are an expensive affair. Here is where a remortgage could help.

summer holiday

Finding the cash for a summer holiday is difficult, so why not take a look at your finances and see if you can save some money. Remortgaging could save you thousands of pounds a year and can be done with minimal hassle.

 

Will mortgage rates stay low forever?

The rates on offer in today’s mortgage market are at a historic low, meaning you could save cash by switching to a cheaper product. However, time is of the essence as this situation won’t last forever. But having more and more debt can dig you into the ground, so I would first educate myself on debt, what is the solutions to get out of it, I recommend to read articles from https://nationaldebtadvice.org.uk/

The long-term impact of Brexit on mortgage rates has yet to be seen, and that’s before looking at wider economic issues. Mortgage rates have already increased in the United States following the election of Donald Trump as President and the question now is will they go higher, and will UK rates follow suit?

Whatever happens, you can avoid being caught out by future rate rises and remortgage to a new deal today.

What do I need to remortgage?

Switching mortgage doesn’t have to be difficult. A 15 minute call to Edinburgh Mortgage Advice will quickly establish whether you can save by remortgaging.

You don’t need to dig out all your old paperwork, you just need these four pieces of information:

  • Your current house price
  • What you paid for your house
  • The number of years left on your mortgage
  • Your current monthly payments

If we believe you can switch and save then a full review of your mortgage can be done in just 30 minutes.

remortgage calulator

Click here to see the best rates available

Can I remortgage from a standard variable rate?

If you’re currently on your bank or building society’s standard variable rate (SVR) then it’s very likely you can save money with a remortgage – and it’s easy to do so. People often look at their SVR and believe they are getting a good deal because it is lower than the rate they have paid in the past.

Even if this is the case you could be paying more than you need to. In fact, you could have been paying over the odds for years. In many instances your mortgage rate could be halved by remortgaging from your current lender’s SVR.

To see if you’re eligible pick up the phone and call Edinburgh Mortgage Advice on 01313392281 or fill in your details here and we’ll be in touch. You could save thousands a year… perhaps even enough for a summer getaway.
Just remember to send us a postcard!

Get more information on saving money on your remortgage

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Right to Buy in Scotland

Help to buy is near enough finished in Scotland, however if you are still trying to get this sorted out, please give our specialist team a call.

Anyone who is to make the purchase needs to be named on the offer letter from the council, if you are not named you cannot be part of the purchase.

It is possible to borrow 100% of the discounted purchase price and it is also possible to get a mortgage if your credit history is less than perfect, however the lower the creidt score – the higher the rate you will be offered.

Time is of the essence if you are looking at right to buy – so give us a call on 0131 339 2281 and let us help you get on the housing ladder.

 

Posted in First Time Buyers, Government Schemes, Poor Credit, Scotland | Tagged | Leave a comment