Is getting a mortgage quickly October’s priority?

Tuesday, 29th September, 2020

We recently covered how the recession is beginning to bite, and that first time buyer mortgages – particularly low deposit mortgages and no deposit mortgages – are slowly disappearing from lenders’ shelves. However, a recent report claims that mortgage demand is at pre-COVID levels. So, with demand high and availability low, is September a key month to apply for a mortgage?

The answer might just be ‘yes’ – particularly if you fall into the first time buyer mortgage category (and potentially the adverse credit mortgage category, too). But first of all, let’s take a look at the figures.

The Bank of England reported that demand for mortgages rose in July – the first time since lockdown – and that the number of new home loans rocketed from 39,900 in June to 66,300 in July. Whilst this is good for the economy, it is also at odds with a report from Moneyfacts that states how borrowers with a 10% deposit now have almost no low deposit mortgage deals available to them – down from 779 at the beginning of March.

As a Guildford mortgage broker with access to the UK’s best mortgage deals, we can find the right mortgage for everyone. However, given the speed at which mortgage products are disappearing, combined with increasing demand for mortgages, it looks as though another bottleneck could be around the corner; one caused by people scrambling for specific mortgage products just in case they disappear.

Whilst Complete Mortgages is unable to comment on how many more low-deposit mortgages are going to be withdrawn, there certainly seems to be a downward trend.

As a result, the only way in which to address this is to apply for a mortgage as soon as possible; not only so that you have access to the biggest pool of mortgage products available, but also to place yourself firmly in the mortgage application queue, which is likely to continue to grow until the stamp duty holiday is discontinued in March.

If you feel like you’re running out of time when it comes to applying for a mortgage, then let Complete Mortgages handle it all – from initial mortgage consultation to getting a decision from the lender – for you.

Contact our team of Guildford mortgage advisers on 01483 238280 or email info@complete-mortgages.co.uk. And remember, we also handle buy to let mortgages and commercial mortgages, too.

How adverse credit mortgages are helping first time buyers

Monday, 22nd May, 2017
Adverse credit mortgages

For those of you that keep up to date with Complete Mortgages’ articles, news and views, you’ll know that we have been proactive in ‘rebranding’ the adverse credit mortgage or, as it was more widely known, the sub prime mortgage.

Importantly, this is not because Complete Mortgages is an irresponsible Guildford mortgage broker. Nor is it because we refuse to accept its role in the 2007/8 financial crisis (unregulated sub prime mortgage lending was undeniably an instrumental factor).

Our reason for supporting the new wave of adverse mortgage lending is twofold. Firstly, lending of this nature no longer represents the sub prime lending of pre-2008, as you can read here. Secondly, it is increasingly becoming a way in which young first time buyers can successfully apply for a mortgage and therefore access the property ladder.

Around this time last year a TransUnion survey revealed that millennials are highly likely to have a bad credit or subprime credit rating, which limits their access to loans and, of course, mortgages. A recent article in the Telegraph also supports this by including ONS figures that suggest that almost 100,000 millennials who live with their parents believe that they will never move out.

This is a particularly disheartening scenario and one that, in many cases, stems from high student loans and the rising cost of living. Unfortunately, this can often lead to overdependence on credit, which, if not managed, can result in a bad credit rating.

The cycle is clear. The question now is how do we break it, or at least how do we help young first time buyers shortcut it? And that’s where the new wave of adverse credit mortgage comes into play.

Thankfully, first time buyers are now able to access up to 85% loan to value mortgages at 4.5 times their income with non-high street lenders.

Of course – and as pointed out in a previous Complete Mortgages article on sub-prime mortgages – there needs to be evidence that those applying for an adverse credit mortgage can make the required repayments. Likewise, applicants will need to apply for a mortgage in the knowledge that they will be paying more for the privilege.

However, when faced with living with your parents well into your thirties, a situation that is only compounded (and arguably prolonged) by escalating house prices, the modern day sub prime mortgage could prove to be a helpful springboard for many young people.

Regardless of situation and credit score, I would recommend those who think an adverse credit mortgage could be a viable route for them to get in touch with me or a member of the Complete Mortgages team to discuss their options.

To speak with a credit repair mortgage specialist contact Mark Lucas on 01483 238280 or email lucas@complete-mortgages.co.uk. Complete Mortgages also specialises in commercial mortgages, buy to let mortgages and limited company but to let mortgages.

By Mark Lucas, credit repair mortgage specialist at Complete Mortgages

The Bournemouth property market isn’t the only thing that’s booming

Thursday, 23rd February, 2017

A recent report* has revealed how Bournemouth is among the UK’s destinations that saw the highest rise in property prices in 2016, with the average price of a home in the area growing by 5.7%.

For those of us who own a property in this wonderful part of the world then this is great news.

However, for those with an equal affinity for Bournemouth yet who aren’t in a position to buy, then this report will no doubt be greeted with a degree of discomfort. After all, a 5.7% increase is not insignificant and, for some, could place applying for a mortgage and, ultimately, homeownership, even more out of reach.

The good news is that the current mortgage market is littered with a variety of mortgage products that aim to target a huge cross section of people – from first time buyer mortgages through to buy to let mortgages – to ensure that everyone has a fair chance of getting on (or in some cases, keeping on) the property ladder.

And on the topic of mortgage selection and availability, it isn’t just Bournemouth that’s booming. Adverse mortgages, or what were referred to as subprime mortgages prior to the financial crisis in 2007/8, are back – albeit in a different and thankfully much safer guise, and this time they are operating to a much tighter framework.

In contrast to the years leading up to the financial crisis, where sub-prime mortgages were awarded to people without necessarily understanding their ability to make repayments, the new generation of adverse mortgage lending is very different.

Unlike the prime market, for instance, whereby decisions are made, in part, by computers, mortgage brokers providing subprime mortgages, such as Complete Mortgages, now spend more time listening to an individual’s circumstances in order to understand the bigger picture before approaching lenders.

Applicants still need to be financially robust enough to show that they can meet mortgage repayments; it’s just that the decision to grant a subprime mortgage takes into account a wider pool of variables that a binary ‘black and white’ approach afforded by algorithms and automated software cannot.

Complete Mortgages, for example, even works with insolvency practitioners to help applicants build a case for being granted a mortgage around existing financial commitments and debts.

Moreover, the ever-growing portfolio of adverse mortgage products is aimed at those who may have unfortunately experienced difficulty in recent months, whether that’s through a separation, business difficulties or redundancy, as opposed to pre-2007 when sub-prime products were available to those looking to take out a mortgage – or multiple mortgages – based on a self-certification model.

So, for those who might fall within the adverse mortgage category and are aware of ‘booming Bournemouth’ and its appreciating property values, then there is no need to panic – but we would advise that those considering applying for a mortgage in Bournemouth act sooner rather than later before continued house price growth really does make homeownership a more exclusive proposition.

If you’re considering applying for a mortgage and feel that an adverse credit mortgage product may best suit your needs, contact Complete Mortgages on 01202 049661 or email enquiries@complete-mortgages.co.uk.

*UK Cities House Price Index

Mark Lucas, Adverse Mortgage Specialist at Complete Mortgages