Revisit, remortgage and save money

Thursday, 29th June, 2017

It’s funny. Everyone is always looking for a deal (myself included) and yet sometimes, even when the deal is right in front of him or her, they just can’t see it.

What’s even more ironic is that people can expend huge amounts of energy collecting loyalty points here and ‘50p off your next box of tea bags’ vouchers there, all the while missing out on the most important deal – and one that could save them hundreds of pounds each month.

The deal I’m referring to in this case is the often-overlooked remortgage.

As a Guildford mortgage broker I can honestly say that I don’t think I’ve seen as many instances where there is such a gulf between the mortgage our clients signed up for (call it point A) and the mortgage that they could have now, even with the same lender (call it point B).

Naturally, it is the Complete Mortgages team’s job to make our clients aware of how they could save money on a mortgage – or, to put it another way, how much they are overpaying on a mortgage. And that’s what we’re in the process of doing right now, much to our clients’ delight.

However, for many people – namely those who either don’t use a mortgage broker or don’t have a proactive mortgage broker, they might never know.

Whilst there’s lots to be said for the proverb ‘ignorance is bliss’, or ‘what you don’t know can’t hurt you’, I’m pretty sure that people would rather have the opportunity to change mortgage – or at least be alerted to the prospect of changing their mortgage – and that’s the purpose of this article.

If you’re one of those people who applied for a mortgage two or three years ago, when deals were great and seemed as though they couldn’t get any better, then this is for you.

Essentially, mortgage deals have got better and you could quite easily be saving hundreds of pounds each month as a result.

In some cases you could simply switch your mortgage to a different deal on offer through the same lender. Not only can we handle ALL the paperwork and application process on your behalf, but also our service is completely FREE for you.

Our usual fee is £399 however in the case of a simple mortgage switch with your existing lender, we wouldn’t charge you a penny.

Even in cases where a fee may be chargeable, the process of remortgaging could still work out financially beneficial for you in the long run.

Our advice is to contact a trusted mortgage broker to explore your options and discover how easy it is to save money on your mortgage. You may or may not want to use Complete Mortgages – or even a mortgage broker in general – but at least you can’t say that we never told you.

Are you looking to remortgage? Interested in finding out of you could save money on your mortgage by making a simple change to your current mortgage? If so, contact us on 01483 238280 or email info@complete-mortgages.co.uk. Remember, we’re also specialists in buy to let mortgages, adverse credit mortgages, limited company buy to let mortgages and first time buyer mortgages.

By Mark Finnegan, Director at Complete Mortgages


Guildford mortgage lending is on the up… but so are its property prices

Thursday, 1st June, 2017
Guildford mortgage

Let’s start with the universally good news – mortgage lending to homebuyers increased by 27% in March.

The figures, as released by the Council of Mortgage Lenders (CML), suggests that even first time buyer mortgages were on the up across the UK, with 31,500 loans granted in March 2017 compared with 28,100 in March 2016.

As a Guildford mortgage broker, Complete Mortgages’ March was particularly busy; so busy in fact that it bucked the national trend by being a staggering 82% up on March 2016.

As a local mortgage broker this is, of course, good news. However, it’s also good news because it highlights that the Guildford mortgage market continues to move apace and suggests that we can expect this trend to continue as we head into summer (a period when home moving and home buying activity typically tends to slow down).

On the flipside, there is the issue of Guildford’s rapidly increasing property prices. And whilst this isn’t bad news for those who already own a home, it is unlikely to be met with positivity by those itching to get their feet on the property ladder.

Research by online estate agents House Simple has shown that outside of London, the UK’s least affordable areas include Bath, Brighton, Crawley, Tunbridge Wells and, of course, Guildford. In fact, less than 7% of Guildford properties are priced lower than the national average.

So, what does this tell us? Well, it confirms what we already know; Guildford is an expensive and desirable place to live. It’s also likely to be met with concern by first time buyers whose chances of buying a property in Guildford are arguably much slimmer than this month’s national averages from the CML would suggest.

However, what Guildford first time buyers must remember is that there are hugely competitive first time buyer mortgage deals entering the market all the time. And with 85% loan to value mortgages on 4.5 x earnings now available, the Guildford first time buyer is now able to enter the market without having to rely solely on putting down an astronomical deposit.

Are you a first time buyer? If so, then our advice is to contact the Complete Mortgages team, which specialises in first time buyer mortgages, to discuss how we can help move you towards homeownership.

Just remember that as Guildford property prices increase, the relative value of your deposit decreases, so taking action sooner rather than later is advised before homeownership really does become out of reach.

Contact Complete Mortgages on 01483 238280 or email info@complete-mortgages.co.uk to discuss our services, from first time buyer mortgages and commercial mortgages to buy to let mortgages and limited company buy to let mortgages.

By Mark Finnegan, Director at Complete Mortgages


Calling all Bournemouth first time buyers

Thursday, 25th May, 2017

It’s great to see how the UK mortgage market is still proving to be buoyant, with research by the Council of Mortgage Lenders showing that there was a 27% increase in the number of mortgages granted in March.

However the Bournemouth property market, particularly for first time buyers, has become a bit of a game of cat and mouse.

No sooner have would-be homeowners saved a deposit (the chase) does the property (the mouse) escape – usually in the form of escalating property prices which, similar to the effects of inflation, chips away at the relative value of the savings pot.

Let’s not forget that back in January the Bournemouth Echo reported how Bournemouth had joined the ranks of Hong Kong, Sydney and San Francisco as one of the least affordable places to live.

Great news if you already own a home. Not so great if you’re one of the many still holding out hope of home ownership. After all, if you’re a Bournemouth resident shouldn’t buying a property in Bournemouth be a right and not a privilege?

The story*, which was based on an annual survey by Demographica, revealed that the price of a home in Bournemouth is 8.9 times higher than the median annual household income of the area.

Given the scale of this imbalance it’s highly likely that the CML’s recent figures, which illustrated how UK first time buyer mortgages granted in March 2017 stood at 31,500 compared with 28,100 in March 2016, doesn’t reflect Bournemouth’s first time buyer demographic.

The question now, therefore, is what do we do about this gulf between property prices and what most people – first time buyers in particular – can afford?

The good news for those looking for a first time buyer mortgage in Bournemouth is that as property prices increase, so too does the competitive nature of the mortgage market.

There are currently 85% loan to value mortgages on 4.5 x earnings now available, which will provide the Bournemouth first time buyer with a better chance of accessing the property market without having to place all their hope in saving a sizeable deposit.

If you’re a first time buyer in Bournemouth, simply get in touch to discuss how we can help you get on the property ladder. It may not be Sydney or San Francisco, but if your home is Bournemouth then you should be able to buy a property in Bournemouth.

Contact Complete Mortgages on 01202 049661 or email jo@complete-mortgages.co.uk to discuss our services, from first time buyer mortgages and commercial mortgages to buy to let mortgages and limited company buy to let mortgages.

*Daily Echo

By Jo Frankowski, Complete Mortgages


Beat the spring rush and use winter to get ‘mortgage-ready’

Tuesday, 7th February, 2017
mortgage ready

After a wet, dreary and (more often than not) cold British winter, the onset of spring is always a welcome relief.

Not only because with it comes the sunshine and a reminder that summer is only around the corner, but it’s also a time when people start to consider their options when it comes to moving home and getting a mortgage.

Let’s face it, applying for a mortgage mid-winter, for most people, isn’t the most alluring prospect.

However, as a result of keeping big decisions to a minimum during the colder months, there is often a rush of people in March, all of whom want to apply for a mortgage at the last minute.

Not only does this bottleneck put pressure on lenders, but it also puts pressure on those applying for a mortgage, too.

The good news is that as a Guildford mortgage broker with a large – and growing – team of advisers on hand to handle mortgage applications on your behalf, we can take that pressure off and make securing a mortgage a seamless process.

Of course, since June last year we are constantly presented with the recurring questions of ‘what about Brexit?’ and ‘how will Brexit affect my mortgage?’

Despite a degree of uncertainty surrounding Brexit, recent figures from the Council of Mortgage Lenders estimates that gross mortgage lending hit the £20.4 billion mark in December. Whilst this was 4% lower than November, it was also 4% higher than December 2015.

Equally, hugely competitive deals from lenders that began to make an appearance throughout 2016 and are now continuing into 2017 will mean that, for many, applying for a mortgage whilst the option of potentially saving money in the long-term is still there will make the opportunity of getting a good mortgage deal hard to resist.

Whilst some homeowners may be more inclined to wait until there is more clarity around the impact of Brexit – something that we at Complete Mortgages believe will take longer than one or two seasons – Spring is always a time of increased activity when it comes to the property market and mortgage applications. As a result, starting the process earlier will give you that extra advantage.

Regardless of the nature of the application – from residential mortgages and buy to let mortgages, to sub prime mortgages and limited company buy to let mortgages – we will handle 100% of the paperwork on your behalf, proactively chase your application and keep you updated at every step of the process.

So, there really is no need to wait until spring. Our advice is to get the ball rolling by picking up the phone and discussing your options with us sooner rather than later.

Even if you do decide to wait until spring has finally sprung, we can part complete your mortgage application in advance so that you will be ahead of the game when you do make your decision – whether that’s in spring or even summer.

Either way, use winter while it’s still here and ensure that you’re ‘mortgage-ready’ in advance.

Contact a member of the Complete Mortgages team on 01483 238280 or email info@complete-mortgages.co.uk.

By Mark Finnegan, Director at Complete Mortgages


Could limited company buy to lets be the landlord’s saviour?

Friday, 16th September, 2016
buy to let

The viability of the buy to let property market as an investment, particularly for those with large mortgages, has been compromised since the government introduced new tax rules, the details of which can be viewed here.

And yet demand for property in the UK remains high, with demand to make money on property seemingly higher. So, now that margins are being squeezed on individual buy to let arrangements, what’s the alternative?

The answer is, in the main, simpler than you might think and means that not only could you become a landlord in a much more efficient – not to mention profitable – way, but also a business owner, too.

Limited company buy to let mortgages

As a Guildford mortgage broker, Complete Mortgages has seen a high number of buy to let landlords in the South East of England with high loan to value mortgages reconsider their options since the new tax legislation was announced.

One of those options – and one that is becoming increasingly popular – is using a special purpose vehicle (SPV) or, quite simply, starting or building a buy to let property portfolio by purchasing properties through a limited company.

Of course, like most things in life, there are pros and cons so in order to try and explain the basics, here is a quick guide to the good and the bad bits associated with business buy to lets. However, it’s important to point out that given how everybody’s circumstances differ, it’s essential that you consult an accountant before making any decision.

The pros

Pay less tax on buy to let properties

For reasons laid out here, tax payable on individual buy to let property revenue is getting higher. However, this new structure doesn’t affect buy to lets through a limited company.

Tax-free dividends on buy to let properties

At the start of the 2016/17 tax year the government made a number of changes, one of which is that you no longer have to pay tax on the first £5,000 of your dividend income – regardless of how much non-divided income you earn. For example, let’s say you earn £40,000 a year, through PAYE, for company A. You then set up your own company called Business Buy to Lets limited and purchase a property, which yields £5,000 in rental income a year. Not only is that £5,000 tax free, but it means that you can…

…Reinvest your profits without any tax liability

Now that you’ve earned £5,000 without incurring any tax liability, you can do what you like with it. You may wish to reinvest it in the property or even put it towards a deposit on another property – something that would have taken you a lot longer to save for if you had purchased the property as an individual, as that £5,000 would have been diminished by tax.

The Cons

Say goodbye to Capital Gains Tax relief

As an individual buy to let landlord, you receive £11,100 tax relief when you sell your property. With properties purchased by a limited company, there is no Capital Gains Tax relief.

Companies cost money

There is administration involved in running a company. Even if you only generate an income of £5,000 per year and there are only a few transactions to account for, you will need to keep accounts, file returns and manage the corporation tax and personal tax elements of running a limited company. The cost will vary from accountant to accountant, however it’s an essential component of owning a limited company, unavoidable and required by law.

Limited company buy to let mortgages have higher rates

Unlike individual buy to let mortgage rates, which have dramatically dropped over recent months to keep the buy to let market buoyant, business buy to let mortgage rates are higher.

Perhaps the biggest drawback for those looking to apply for a limited company buy to let mortgage is the fact that the range of options decreases. Some lenders don’t even offer mortgages to limited companies.

Before you do anything…

… and irrespective of the broker you use, you must seek advice from an accountant before making any decision – even the decision to form a company (or SPV).

However, as an award-winning mortgage brokerage Complete Mortgages has access to a comprehensive panel of lenders and a range of limited company buy to let deals to suit everyone. We can give you guidance on all mortgage-related aspects of becoming a business-owning, portfolio-building landlord including the:

  • Standard Industrial Classification (SIC) your company needs to carry in order to secure a mortgage
  • Roles and responsibilities that you – as a director – have when it comes to your mortgage

Contact the Complete Mortgages team on 01483 238280 or email info@complete-mortgages.co.uk to find out more about becoming a limited company buy to let landlord.

By Mark Finnegan, Director at Complete Mortgages