26 Apr

85% buy to let mortgages

A quick search online at any of the major mortgage comparison sites will show that there is now more 85% mortgages for buy to let property than ever before. This is good news for the buy to let market place as more lenders give greater choice and help to those who have smaller deposits. 85% mortgage rates also appear to have come down which can only help increase the activity in the market place.

This will also help to boost the buy to let market place as buy to let investing becomes more affordable to those who are entering the market, or who are looking to use buy to let to further increase their pension. Over the past few years 85% mortgages have been very expensive and carried larger than average fees as they were viewed as high risk for many mortgage lenders and banks.

Which lenders currently offer 85% LTV mortgages

  • Kent Reliance
  • RBS
  • Natwest
  • Nationwide
  • Halifax

If you need a buy to let mortgage then please contact me. I can help both with mortgages and advice on all aspects of buy to let and being a property landlord.

Source: https://www.lendingexpert.co.uk/mortgages/buy-to-let/85-percent/

 

19 Mar

Q&A: What is a variable rate mortgage?

Choosing the right mortgages for first time buyers

Choosing the right mortgages for first time buyers

Another question I get asked alot is to explain what a variable rate mortgage is.

Answer: A variable rate mortgage is a type of mortgage whereby the rate of interest you pay is variable.

This means the interest you are charged can go up or can go down. This means that the payments you make throughout your mortgage term can also increase and decrease.

19 Mar

Q&A: What is a tracker mortgage?

Choosing the right mortgages for first time buyers

Choosing the right mortgages for first time buyers

What is a tracker mortgage and how do they work?

Answer: A tracker mortgage “tracks” the BOE base rate. This means the rate of interest you are charged will follow the rate set by the BOE.

For example, you may have a mortgage that is 1% above the base rate, this would mean that with the current rate you would be paying 1.5% interest on your mortgage.

19 Mar

Q&A: What is a fixed rate mortgage?

Choosing the right mortgages for first time buyers

Choosing the right mortgages for first time buyers

I was asked on the Q&A forum: What is a fixed rate mortgage and how do they differ from others?

Answer: Fixed rate mortgages are very popular and come in fixed rate terms of 1,2,3,5 and 10 years. A fixed rate mortgage means that the interest rate you pay is fixed for a set period of time. This means that it will not change over the fixed term period.

For example, if you have a 2 year fixed rate mortgage at 5%, this is the rate you would pay for the first 2 years of your mortgage. After the 2 years are up, your mortgage would then revert the the banks standard variable rate. Simple!

18 Mar

What is the difference between “fee” and “no fee” brokers?

Why do brokers charge for advice

Why do some mortgage brokers charge for advice and others dont?

I was recently asked this question on my Facebook page – what is the difference between those brokers what want to charge a fee and those that dont?

The mortgage advice I give to all first time buyers is to use a “no fees” broker, unless you feel that your mortgage application is going to be complicated or difficult. For example, if you have good credit then you should’nt have any problems getting a good deal with a “no fees” mortgage broker with any of the mainstream lenders.

However, the mortgage broker who is charging no fee will only refer lenders to you who pay a commission, and rightly so they need to earn an income for their work!

This means however, that if you choose to pay for advice – perhaps in the region of £200 – £700 depending on your mortgage, then you will have the choice of direct only mortgage lenders, and wider choice overall.

What do I do if I have bad credit?

This may be an option if you have a difficult credit history and the mortgage broker will need to provide above and beyound mortgage advice to get you the right mortgage deal for you. Your mortgage broker may need to go to several lenders in order to find a mortgage lender willing to accept your application, this off course would take up a lot more time and may require a advisor fee.

18 Mar

Getting a mortgage for the first time

Buying a home for the first time is an exciting time

Buying a home for the first time is an exciting time

So, you wish to buy your first home and take out a mortgage. Then congratulations on your first steps to becoming a home owner! Buying a home for the first time is very exciting, however, it is also a time to be cautious when looking a your mortgage and finance options. Get good independent advice from a mortgage professional is essential. What should you be looking out for?

  • Choose an independent advisor who has access to the whole market
  • Choose a no fees advisor who can arrange your mortgage for free
  • Speak with a few different brokers to get an idea of what they can do for you
  • Remember that all mortgage brokers and advisors have to be FCA approved to get mortgage advice.

What types of mortgages are available?

Choosing the right mortgages for first time buyers

Choosing the right mortgages for first time buyers

This really depends on a range of different factors that are personal to you. If you are as first time buyer and have a mortgage deposit of 5% then you should be looking at the 95% mortgage products and also the Help to Buy and New Buy schemes that are supported by the government. Help to buy mortgages The mortgage Help to Buy scheme was established to help first time buyers and those with a low 5% deposit get on the housing ladder. The government provides a 20% equity loan to bring the total loan to value to 75%. Most mortgage lenders offer fixed rate, variable rate, tracker and discounted mortgages. I would suggest anyone taking out a mortgage to discuss the options with your advisor or broker before making any firm decisions on the type of mortgage you should go for. An introduction to mortgages for first time buyers How do I find an good mortgage advisor? I would suggest you speak with friends and family who have recently used an advisor and ask for recommendations. Otherwise there are many good mortgage comparison sites and advisors online who not only provide mortgage advice, but allow you to search through and compare different types of mortgages online.