The holiday let mortgage has well and truly checked in

Friday, 7th September, 2018
holiday home mortgage

Buy to let mortgages for short-term holiday lets are no longer just a seasonal thing. In fact, it would seem that they’re here to stay – whatever the weather.

Until recently, lenders have tended to prefer to award a buy to let mortgage to those with plans to let out their property on a long-term basis and not the short-term. This has now changed – particularly in the wake of companies like Airbnb, which have transformed the holiday accommodation sector.

However, as we approach the end of summer, and as many of us get back to normality after enjoying what has been the finest summer we’ve had in years, there will no doubt be a selection of people looking to buy a UK holiday home – and who may already be considering a holiday home mortgage.

The good news is that holiday home mortgages are now more accessible than ever and this, combined with high short-term holiday rental yields, makes owning – and letting – a holiday home an appealing prospect.

According to the Residential Landlords Association, seven per cent of landlords are moving their properties from long-term to short-term lets – a factor that has undoubtedly been prompted by changes in tax relief on buy to let properties.

As furnished holiday lets are treated as businesses and not investments they are taxed differently, which enables those who have a mortgage on a holiday let property to qualify for entrepreneurs tax relief and even claim the cost of furnishing the property!

The recent shift in attitude towards Airbnb by lenders has also changed things considerably. Beforehand, borrowers had to request permission from the lender to let their property out on a short-term basis and many lenders ruled it out completely. However, the mortgage market is moving forwards and against the backdrop of recent tax changes to buy to let properties, the short-term let mortgage is gaining popularity.

Whilst we can’t advise on the tax implications of arranging a holiday let mortgage, as a Guildford mortgage broker we certainly can advise on the right mortgage that could help you to not only own your dream holiday home, but also potentially make a nice profit on it, too.

To speak with a Guildford mortgage specialist contact the Complete Mortgages team on 01483 238280 or email info@complete-mortgages.co.uk. One of our buy to let mortgage experts will be able to talk you through your options and find a short-term buy to let mortgage that suits you. We’re also specialists in standard buy to let mortgages, limited company buy to let mortgages and commercial mortgages, too.

By Mark Finnegan, Director at Complete Mortgages


How to increase your chances of getting a mortgage – part 2

Friday, 10th August, 2018
mortgage broker

Following on from part one, which you can read here, part two continues with some of the more standard tips and pitfalls to be aware of – as well as presenting some of the mistakes which have had negative consequences for those applying for a mortgage in the past.

1. Bad form is to not correctly fill in your form

If you’re using a mortgage broker, then this is less relevant as they should be handling – and checking – the paperwork on your behalf. However, if you do decide to go it alone with your mortgage application, fill everything out in full – including your entire name. Don’t round up income figures, do make sure that your address history is accurate and always give honest answers about your spending habits. More importantly, declare any debts; not doing so could lead to being instantly declined for a mortgage.

2. Don’t put off until tomorrow what you can do NOW!

When it comes to gathering paperwork, we’re all guilty of a bit of procrastination and hoping that the omission of the odd document here and there won’t be a problem. However, when it comes to getting a mortgage, getting the application right first time is well worth the effort. Our advice is to get everything you need together in one go. Examples include: bank statements for the last three months; last three months’ pay slips, latest P60, any evidence of bonuses, and, if you’re self employed, your last three years’ worth of accounts and tax returns.

3. Stay out of your overdraft

Being in the red creates a black mark – on your credit rating. It also implies that you’re unable to manage your own money and spending. Make every effort to stay within the confines of your own budget and give the lender fewer reasons to say ‘no’ to granting a mortgage.

4. Light-hearted bank statement pranks may lead to heavy consequences

As tempting it as might be when paying a friend back for a set of concert tickets they bought to leave something cheeky or crude in the ‘reference’ field, think twice before you do it. Whilst it may be funny in the heat of the moment, it leaves a record that might not have the same impact on the lender reviewing your case. As funny as it might be at the time, out advice is to save the gags for the pub.

5. Don’t take a gamble on your mortgage

This one probably should be obvious – but it’s often overlooked. A regular transaction made at high street or online gambling companies doesn’t look particularly good and sends alarm bells ringing. Our advice, given how we’re not betting people, would be to put any money you were going to gamble towards a deposit on your property.

6. Big cash deposits can lead to big problems

The odd irregular cash deposit from or to a friend isn’t a problem, however if these payments regularly appear on your statement then it could be flagged and questioned by the lender. If the topic of money laundering isn’t called into question then any payments may be viewed as financial commitments. Either have explanations for each and every significant payment, or try to reduce the amount of irregular payments you either make or receive.

For many, getting a mortgage is a minefield. Why not let Complete Mortgages, a mortgage broker in Guildford, do it on your behalf? From first time buyer mortgages and buy to let mortgages, to commercial mortgages and more specialist mortgages, we can help. Call us on 01483 238280 or email info@complete-mortgages.co.uk to find out how we can help you.


Second Countrywide broker joins Complete Mortgages

Monday, 6th August, 2018
Mortgage Broker Knaphill

Guildford mortgage broker, Complete Mortgages, has lured yet another high-flying mortgage specialist from the UK’s largest single mortgage brokerage, Countrywide, as part of its continued growth plan and following a series of national mortgage industry award wins.

Sam Man, who takes the Complete Mortgages team to 14 people, spent one-and-a-half years at Countrywide after taking over the role of mortgage and protection consultant from Lee Cousens when he left the firm to join Complete Mortgages in 2017.

Prior to working at Countrywide, Sam established his career as a senior banker and protection consultant at Lloyds TSB and Natwest.

Building on Complete Mortgages’ relationship with Surrey’s network of 17 independent estate agents, Seymours, which has seen senior Complete Mortgages brokers permanently located in the estate agent’s offices, Sam will operate out of Seymours’ Knaphill office from August 2018.

On joining the team, Sam comments: “Complete Mortgages is a Guildford Mortgage Brokerage with a national reach and a growing reputation for securing great mortgage deals for its clients. This, combined with its award-winning service levels, makes Complete Mortgages a great company to work for and an opportunity that I’m looking forward to develop as I make it the ‘go-to’ mortgage broker in Knaphill.”

Complete Mortgages has grown significantly since it was established in 2005 and become nationally renowned for providing access to a diverse range of mortgage products, from first time buyer mortgages and buy to let mortgages to adverse credit mortgages and equity release mortgages. It also continues to win prominent Mortgage Intelligence Awards year after year.

Mark Finnegan, Director at Complete Mortgages, adds: “We’re delighted to have once again appointed a high-profile broker from a high-profile brokerage and we now look forward to building on our success, growing our client base and continuing to deliver an award-winning mortgage broker service.”

If you are looking to arrange a mortgage in Knaphill contact Sam via sam@complete-mortgages.co.uk or call 01483 238280.

 


How to increase your chances of getting a mortgage

Saturday, 28th July, 2018
guildford mortgage broker

Firstly, this isn’t a cheat or a piece that advocates – or even encourages – you to try and pull the wool over a mortgage lender or broker’s eyes, and that’s for the very simple reason that it’s impossible and won’t work.

You will not be able to trick a lender into giving you a mortgage or awarding you with the best mortgage deal.

However, just as an athlete prepares for an event, there are a number of things that you can do to help get you mortgage fit. Here are a few pointers to get you started.

1. Score points with your credit score

One way a lender can check if you have what it takes to repay your mortgage and honour your commitment is to check if you have good credit history.

In general, your credit report is what it is and made up of a number of sources including credit card history, loans taken and overdrafts used.

Before you apply for a mortgage it’s worth checking to make sure it’s a) up to date and b) correct.

If you spot anything glaringly inaccurate then at least you have the opportunity to fix it in the short term before it scuppers your chances long-term.

2. No vote, no chance

If you’re not registered to vote than you’re unlikely to get a mortgage. This one’s really easy to prepare for, too. If you’re going to fall down at one of the hurdles then don’t let it be this one. Click here to register to vote.

3. Don’t let the past affect your future

Joint current accounts, loans and other commitments carry joint responsibility. If you’re linked to any of these via an ex-partner – and the ex-partner has defaulted on a payment or done something that would have a negative consequence – then you’re going to be affected, too.

The best way forward in this instance is to check if you’re still linked in any way and, if you are, get yourself disassociated.

4. Be careful with your credit

Just because you have a credit limit of £12,000 doesn’t mean you need to spend £12,000 on credit. At least that’s the view of lenders, who would typically prefer your overall credit card debt to be no more than 50 per cent of the amount available (the lower the better).

When it comes to credit card debt, then it’s better to pay it off – however don’t leave yourself with zero debt and huge credit limits; lenders worry that you may one day go one a huge spending spree!

5. Be diligent with your admin

We’ve all had accounts that we don’t use and rather than close them down, we’ve simply cut the associated cards up and thought that that was it.

Having multiple bank accounts open with nothing in them isn’t advisable, especially if the details attributable to those accounts are out of date and could be disadvantageous to you.

6. Don’t apply for credit just before you apply for a mortgage

The more credit searches you have on your file in a short space of time, the more chance a lender has of thinking you’re in desperate need of credit – even if you’re not.

We would advise that you get a mortgage before you get the new car!

7. Bills don’t pay themselves

So make sure you pay yours – on time.

Not paying a bill on time stays on your records for six years, so don’t let an innocently missed payment result in a missed mortgage offer.

8. Use a mortgage broker

This one really is simple.

As a Guildford mortgage broker, we see people battling with mortgage applications on their own day in, day out, all when they could let us do the legwork on their behalf. As mortgage brokers do this every day and know what’s required (and, importantly, what’s not) they can simply fast-track the process.

Why waste your time when you can hand it over to a professional!

If you’re thinking of applying for a mortgage, or if you’ve been struggling to get a mortgage, contact the Complete Mortgages team on 01483 238280 or email info@complete-mortgages.co.uk. We can help with first time buyer mortgages, buy to let mortgages, commercial mortgages and adverse credit mortgages.

By Mark Finnegan, Director at Complete Mortgages


Are interest only mortgages good or bad?

Tuesday, 3rd July, 2018

Interest-only mortgages are a bit like life. They’re not simply all bad or all good, they’re not clear-cut and they’re often right for some people, but not others.

However, from recent reports that suggest that the interest only mortgage is making its comeback, you could be forgiven for thinking that UK homeowners are about to revert to the pre-crash days and readopt the interest-only approach to home ownership.

In fact it wasn’t that long ago that interest only mortgages were commonplace.

It was only the financial crisis of 07/08 that provided what is now seen as a much-needed reset. Up until that point, people were applying for a mortgage on the strength of what they said they could afford as opposed to what they really could afford.

What made this palatable was that house price growth created a safety net as interest-only homeowners were banking on significant equity growth to pay down their mortgage when the time came. However, given the slowdown in property growth over recent years, this is less of a dead cert.

So what’s the difference this time, then?

Well, first of all a little context is needed. Data recently published by Moneyfacts, the financial analyst and comparison site, has revealed that 33 lenders now offer interest only mortgages – up from only 12 offering the product in summer 2013.

However, as stated by a Moneyfacts finance expert in a recent interview with industry title Mortgage Strategy, there were 73 lenders offering interest only mortgages back in June 2008, which reveals we have a long way to go before we reach those levels.

Furthermore, unlike days of old, to apply for an interest only mortgage today you have to have a low loan to value ratio – something that rarely got in the way of a deal pre-crash and certainly before the introduction of the Mortgage Market Review, which resulted in a severe tightening up of the mortgage market after it was put in place.

Yes, interest only mortgages seem to be gaining ground once again – however this type of interest only mortgage seems reserved for those who aren’t banking solely on property growth to pay for their mortgage decades down the line, as you will need to have a repayment strategy in place at the outset that is acceptable to the lender. Evidence also suggests that in addition to a large deposit, those looking to get an interest only mortgage will also need to earn a large salary.

Back to the original question, then: are interest only mortgages good or bad?

As a Guildford mortgage broker that has witnessed the ups and downs of the mortgage market both pre and post-crash, I’ll say that it completely depends on the individual’s circumstances. And for that reason, we would always advise that anyone thinking of applying for a mortgage – of any kind – appoints the best mortgage brokerage they can to help guide them through that process and provide that peace of mind.

If you’re considering applying for an interest only mortgage contact a member of the Complete Mortgages team on 01483 238280 or email info@complete-mortgages.co.uk. Remember, we also specialise in buy to let mortgages, commercial mortgages, adverse credit mortgages and limited company buy to let mortgages, too.

By Mark Finnegan, Director at Complete Mortgages


Is the robo-adviser redundant already?

Thursday, 28th June, 2018

At a time when there is continual debate around whether or not the human workforce will eventually be replaced by robots, I have to admit that I experienced a degree of pleasure this week upon reading an article that called into question the efficacy of robo-advisers.

The Financial Conduct Authority has issued a warning that robo-advisers could be misleading customers over fees and the nature of the advice offered – something that those applying for a mortgage should now be taking note of.

In a world where apps are standard fare, automation has become de rigueur and the perception that automation equates to better, this warning shot from the city’s watchdog pulls into focus the delicate – and often complex – nature of mortgage guidance.

It also raises the question of whether or not a service so nuanced and personal, such as that offered by experienced mortgage brokers, can simply be replaced by apps or web-based platforms.

As a Guildford mortgage broker we are all too aware that getting a mortgage is a big decision – and one that is underpinned by many variables, most of which cannot be expressed or picked up on through an automated process. A personal approach, such as that available via face-to-face meetings or even via a telephone call, enables the mortgage adviser to pick up on the small aspects that make up the bigger picture.

It also enables the adviser to ascertain the mortgage applicant’s own understanding of their obligations and commitments with respect to the nature and size of the mortgage they require. An automated platform is a standardised approach and one that doesn’t take into account swathes of people who, for example, may be more vulnerable when it comes to making big financial decisions and who, therefore, would benefit from a conversation with an expert.

I’m not anti-automation. In fact, I wholeheartedly believe that there are many services and aspects of modern life that have improved since becoming automated. However, in my opinion, mortgage advice and mortgage brokerage services do not – and should not – fall within this category.

If you want to speak with actual people when it comes to getting a mortgage in the UK, contact Complete Mortgages on 01483 238280 or email info@complete-mortgages.co.uk. We specialise mortgages for the self-employed, mortgages for teachers, adverse credit mortgages, buy to let mortgages and limited company buy to let mortgages.


How to get the best equity release mortgage advice

Thursday, 24th May, 2018

Equity release mortgages have well and truly arrived.

As recently pointed out in our last equity release article, which includes a five point guide as to what you need to know about equity release loans, it is estimated that the value of UK equity release mortgages increased by £10bn last year.

However, it’s important to note that wherever there’s an opportunity, there are always opportunists, which was my first thought on recently watching a series of equity release adverts on TV.

One advert was proudly selling access to equity release mortgages for a fee of ‘only’ 1.95%. Whilst this doesn’t sound that high, it typically equates to around £1,395 – £1,495, which is, in fact, a relatively high charge.

As a Guildford mortgage brokerage that specialises in helping our clients to get an equity release mortgage, we believe that our fees are much fairer and transparent. For example, our flat fee structure means that we can help you apply for an equity release mortgage for only £699 – regardless of the complexity of the mortgage and value of the loan amount.

What’s more, our team of Guildford mortgage brokers now includes three equity release specialists. All three advisers have secured the highly coveted Certificate in Regulated Equity Release (CeRER) qualification, which ensures that Complete Mortgages can offer a wider selection of equity release mortgages to a wider section of the population.

It also means that we can help those who have traditionally taken out interest-only mortgages – and who are on an interest-only mortgage right now – to transition to an equity release deal without having to refer to a third party.

Whether you’re currently on an interest-only mortgage and thinking of switching over to equity release, or you’re simply considering your options and think that equity release could be a route you’d like to take, the first thing you need to do is contact a trusted – and qualified – mortgage brokerage.

Why not contact us to find out more on 01483 238280 or by emailing info@complete-mortgages.co.uk.

Complete Mortgages also specialises in other mortgages over and above equity release mortgages. We can also arrange mortgages for self-employed people, mortgages for teachers, adverse credit mortgages, buy to let mortgages and limited company buy to let mortgages.

By Mark Lucas, Equity Release Adviser at Complete Mortgages


Is time running out to get a competitive fixed rate mortgage?

Wednesday, 14th March, 2018
guildford mortgage adviser

Have you recently switched – or considered switching – your mortgage?

If you haven’t then you’re not alone. However, it may be worth considering your options as the debate around whether or not a new interest rate rise is imminent (many are saying it is) gains ground.

Whilst we don’t know when, exactly, or by how much, the Bank of England will increase interest rates, we do know that another two are planned before 2020.

If the first, relatively modest, rise of 0.25% wasn’t enough to get you thinking about fixed rate mortgages then the second one might.

As a Guildford Mortgage adviser, we’ve seen an influx of people from across Guildford and the southeast enquire about getting a fixed rate mortgage. Lenders have increased their mortgage rates since the last interest rate rise, however it’s not too late to get the ball rolling and apply for a fixed rate mortgage.

With access to some of the most competitive mortgage deals in the UK, Complete Mortgages is still seeing a number of options which, if you were to act now, would mean that you would still benefit from an excellent mortgage rate – and would be well placed to beat the rise (if and when it happens).

We’re seeing demand for three year fixed mortgages, five year fixed mortgages and even 10 year fixed mortgages increase significantly, which indicates that people are now beginning to think seriously about locking themselves into consistent monthly mortgage payments – something that we haven’t seen on this scale for a decade.

Of course, it’s all down to affordability.

Analysis by estate agent Savills suggested that a 1% rise in interest rates would add approximately £10bn to mortgage repayments in the UK – or an average of £930 a year (£77.50 per month) to the cost of servicing an average mortgage.

Depending on your financial circumstances, you may prefer to have the flexibility that comes with other products such as tracker mortgages. Either way, if the much-deliberated rise has made its way to the front of your mind then it’s certainly worth picking up the phone and calling a member of the Complete Mortgages team, who will be able to advise you on the right fixed mortgage for you.

In answer to the original question regarding whether or not time is running out to get a competitive fixed rate mortgage, I would say that there is still time – however I would also recommend that you don’t waste time.

Complete Mortgages also specialises in other mortgages over and above fixed or tracker mortgages. We can also arrange mortgages for self-employed people, mortgages for teachers, adverse credit mortgages, buy to let mortgages and limited company buy to let mortgages. Contact us on 01483 238280 or email info@complete-mortgages.co.uk for more information.

By Mark Finnegan, Director at Complete Mortgages


Self-employed friendly mortgages

Monday, 5th March, 2018

Sometimes, it’s as though those who take the most risks are penalised the most.

At least that seems to be the sentiment of 71% of self employed people who feel that they are discriminated against when it comes to getting a mortgage, according to new research from The Mortgage Lender.

Yes, mortgages for self-employed people seem to be that little bit harder to come by, which is a huge shame – particularly when it’s this demographic who play key roles in growing the UK economy and given how, according to new research by Data Line for Business, there are now record numbers of self-employed people in the UK.

Data Line for Business’s research highlighted how:

  • One in seven people now work for themselves
  • The number of self-employed people have grown by a million since a decade ago
  • Self employed women have grown 24% to 300,000 since Q2 2013

Whilst this is great news when it comes to the UK’s entrepreneurial spirit, it’s very much at odds with the barriers – and the perceived barriers – to self-employed mortgages.

What’s the problem with getting a mortgage if you’re self-employed? 

We often get self-employed people asking, ‘Why is it hard to get a mortgage, even when my monthly mortgage repayments would be significantly less than my current rental outgoings?’.

The truth is that lenders find it hard to assess self-employed people as they might pay themselves different amounts at different times. Some may choose not to pay themselves much at all in order to keep cash in the business.

Prior to the financial crash, self-certification mortgages enabled business owners to get a mortgage relatively easy. After the crash, lenders became less inclined to lend on the basis of what the applicant claimed they earned.

However, there are a number of accessible self-employed mortgages on the market right now. Also, as a Guildford mortgage broker that specialises in contractor mortgages and mortgages for the self-employed, we are well placed to help all business owners – from sole traders to owners of limited companies – get a mortgage.

Our advice would be to get in touch on 01483 238280 or email us on info@complete-mortgages.co.uk. Also, in advance of speaking – or meeting – with a member of the Complete Mortgages team, we would recommend that you gather the following documentation in readiness: –

1. Two years’ accounts (if you have a Limited Company or Partnership)

2. SA302 forms and Tax Year Overviews for the two past two years. Here’s a link for more information on how to obtain them

3. Proof of a deposit (or equity in your property, if remortgaging) of at least 5%

Getting a mortgage if you’re self-employed isn’t unachievable. It just requires a little more work. However, as a mortgage adviser in Guildford, we’ll handle the legwork on your behalf.

Remember, Complete Mortgages doesn’t just specialise in mortgages for self-employed people. We also specialise in mortgages for teachers, adverse credit mortgages, buy to let mortgages and limited company buy to let mortgages.

By Mark Finnegan, Director at Complete Mortgages


How to remortgage

Tuesday, 13th February, 2018

2018 is the year of the remortgage.

If you didn’t read my last piece and are wondering why 2018 is any different to 2017 – or any other year for that matter – then read on.

Going up? 

Nobody knows when or even if interest rates will go up in 2018, however there is much talk and speculation that the Bank of England could raise the Base Rate of interest by up to 0.50% at some point this year.

To put this into context, it would mean that someone on a variable rate mortgage borrowing £200,000 would face up to a £600-a-year increase.

Getting the most from your mortgage 

First of all, and despite what you may think, arranging a new mortgage is really straightforward – particularly if your mortgage broker is handling it on your behalf.

As a Guildford mortgage broker we see it all the time; people resisting remortgaging due to the perceived ‘hassle’, only to be pleasantly surprised when it’s all done and dusted without much effort on their part.

Here are Complete Mortgages’ top tips on remortgaging to get you started:

1. Dig out your paperwork 

Having an understanding of how much is outstanding on your mortgage, the mortgage term and any fees attributable with changing your mortgage will make it easier to navigate any questions that you will inevitably have to answer.

2. Know what you spend 

The process of getting a mortgage has changed over recent years, in as much as lenders now want to see clear evidence of your outgoings and, more importantly, your ability to comfortably make the mortgage repayments. Having some idea of what you spend on a monthly basis in advance will save time to-ing and fro-ing.

3. Do your homework

It may sound obvious, but take some time to find out what mortgage products are out there. New mortgage products are entering the market all the time, so make sure you pick the right mortgage for you and your lifestyle. More importantly, make sure that you’re set to benefit from a mortgage switch and that any financial gain from a new mortgage isn’t wiped out with exit fees from your existing mortgage.

Is there an easier way of doing this?

Of course there is. Using a trusted mortgage broker, such as Complete Mortgages, will save you a lot of legwork, time and possibly a bit of heartache, too.

If you let us handle your remortgage we’ll not only manage the entire mortgage application process on your behalf, but we’ll also spend the time finding the right mortgage for you, from the hundreds available (including the many broker exclusives that we have access to). What’s more, depending on the product chosen, there may not even be a fee for you to pay at all.

See, remortgaging really isn’t as difficult as you might think.

Contact the team on 01483 238280 or email info@complete-mortgages.co.uk to find out more. Even if you’re not looking to remortgage, don’t forget we’re also specialists in buy to let mortgages, limited company buy to let mortgages, adverse credit mortgages and commercial mortgages, too.

By Mark Finnegan, Director at Complete Mortgages