Can equity release mortgages reshape society?

Monday, 1st February, 2021
equity release mortgages

Admittedly, this sounds like the type of question you might expect to find in a journal (or, at the very least, a trade media title). However, as an equity release mortgage specialist and Guildford mortgage broker, we believe that the answer is ‘yes’ – and here’s why.

For a whole host of reasons, many of which are generational (and not all of which can be blamed on the current global situation), young people are finding it increasingly tough to get a first time buyer mortgage.

This might be related to a reduction in available first time buyer mortgage deals. Or, it might be simple economics, whereby demand has pushed up the price of property, thus decreasing the ‘real’ value of a deposit that someone may have taken years to save and leaving homeownership out of reach. Regardless of the cause, it’s really not that easy for the next generation of homeowners.

And this is where equity release mortgage deals are making a big difference.

See, many of those aged 55 and over (the pre-requisite for equity release) are at the opposite end of the spectrum. They made money – sometimes a lot of money – on their property. More often than not, it was by pure luck and in no way the result of any shrewd business decisions. Property simply went up, and up and up.

But now, as they find themselves either financially secure or in the latter stages of their life, equity release – the process of freeing up wealth currently tied up in bricks and mortar – is becoming a way in which to help their children, and even grandchildren, get that foot on the property ladder.

We’re all aware of the term ‘bank of mum and dad’, but now the ‘bank of grandma and granddad’ is also becoming more commonplace, too.

Age Partnership has reported an increase in equity release as a way in which for those of a certain age to provide their loved ones with early inheritance gifts. Maybe last year’s equity release boom was to help family members buy a property before the stamp duty holiday ends this spring. Either way, it seems as though equity release mortgages are becoming a balancer – a way for the older generation to move wealth down a generation or two in order to give younger family members the same opportunities they once had.

In any case, equity release mortgages are becoming more popular. Given the struggles the youth of today face, it’s not hard to see why.

Are you 55 and over and thinking of applying for an equity release mortgage? If so, contact the Complete Mortgages team today on 01483 238280 or email info@complete-mortgages.co.uk. Similarly, if you’re the recipient of an equity release inheritance gift and are looking to apply for a first time buyer mortgage, get in touch.

By Mark Finnegan, Equity Release Adviser at Complete Mortgages


Rush for first time buyer mortgages

Friday, 2nd October, 2020
first time buyer mortgages

As the wheels of the economy slow down and people begin to brace themselves for the full effects of a recession, there are a number of groups likely to be affected over the coming months. For the purpose of this article, we’re going to focus on those applying for a first time buyer mortgage (or those about to apply for a first time buyer mortgage).

Sadly, COVID-19 has impacted young people’s income and forced lenders to tighten up their mortgage lending criteria. The overall result is shrinkage in first time buyer mortgage availability.

House prices are predicted to fall in the wake of the recession, and this is likely to help make getting on the property ladder that bit easier. However, it’s those who, after many years of saving, have built a sizeable deposit that are likely to be well placed to get a first time buyer mortgage.

Regardless of your situation, the good news is that all is not lost.

As a Guildford mortgage broker and first time buyer mortgage specialist, we still have access to a good range of first time buyer mortgage products that includes low deposit mortgages – and even a few no deposit mortgages, too.

You may also find our first time buyer mortgage guide useful, which includes 13 tips for how to improve your chances of getting a first time buyer mortgage – all of which are still relevant in a post COVID-19 world. You can download it here.

Of course, if you are looking to get your feet on the property ladder but feeling overwhelmed by the news that it’s becoming harder to buy a property, then there really is no substitute for picking up the phone and speaking to one of our first time buyer mortgage experts.

The situation does seem to change on a daily basis so our advice, if you are ready to apply, is get in touch straight away and start the mortgage application process sooner rather than later.

Contact the Complete Mortgages team today on 01483 238280 or email info@complete-mortgages.co.uk. And if your mortgage requirements are less first time buyer oriented, then remember we’re also buy to let mortgage specialists and adverse credit mortgage specialists, too.


Get a good mortgage deal (while you still can)

Monday, 7th September, 2020

We’re revisiting the benefits of remortgaging this week. For good reason, too, as finding a great mortgage deal is becoming increasingly difficult.

It’s no surprise that the UK economy is under strain given the current crisis. However, one of its knock-on effects has been an increase in mortgage rates in tandem with a decrease in the number of mortgage products available from lenders.

In fact, getting a good mortgage deal isn’t as easy as it was only a couple of weeks ago – both in terms of mortgage rates and mortgage product choice. According to Moneyfacts, mortgage products dropped by 202 – or from 2,728 to 2,526 – from the beginning of July to the beginning of August.

In particular, those applying for a fixed rate mortgage and who require anything above 75% loan to value are likely to be wondering what’s happened, particularly given how mortgage rates have sat at historic lows over recent months.

Whether you’re looking to remortgage, or simply want to apply for a first time buyer mortgage, the good news is that all is not lost. After all, good UK mortgage deals haven’t disappeared altogether.

Yes, there are fewer mortgages available. And yes, mortgages that only required a 5% deposit are likely to remain absent until the economy is in a much stronger position. But there are options, and Complete Mortgages is able to assist mortgage applicants at every end of the spectrum.

Furthermore, as an award-winning mortgage broker in Guildford that’s part of the Mortgage Intelligence Network, our team of Guildford mortgage brokers are able to source the very best mortgage deals available at any given time. So, where there are good deals to be had, Complete Mortgages has ready access to them.

Don’t be disheartened by the shrinking pool of mortgage products. However, do take it as a sign that you should act quickly if you want to get a mortgage before the recession worsens and leads to further restricted availability.

If you want to remortgage or apply for any of the specialist mortgages we offer, such as buy to let mortgages, commercial mortgages and adverse credit mortgages, then get in touch on 01483 238280 or email info@complete-mortgages.co.uk.

By Mark Finnegan at Complete Mortgages


Time to get a fixed rate mortgage before the general election?

Monday, 2nd December, 2019
mortgage rates

This article really couldn’t be timelier.

It also follows on nicely from my recent article on remortgaging, which encouraged homeowners to take advantage of the great mortgage deals currently on the market and consider getting a remortgage deal in place – even if it’s not strictly necessary – now just in case things take a turn for the worse in 2020.  After all, any offer made by a lender now is valid for six months and a lot could happen between now and then.

In fact, the theme of this piece is almost the same as that article in as much as it broadly covers the same topic – getting a cheap mortgage – however it does so in a more specific way, based on a more pressing event: the general election.

The last piece covered Brexit mortgage uncertainty and any possible interest rate rises in 2020. This piece tackles how the general election may affect mortgage rates, particularly given how they’re currently at rock bottom prices.

Only last week, The Sun covered how those who get a five-year fixed rate mortgage before the election could save themselves £4,350 a year. Similarly, Martin Lewis has highlighted how the UK’s political and economic uncertainty has translated into an opportunity for mortgage holders and is encouraging homeowners to look at good mortgage deals now to avoid potentially becoming vulnerable if what happens after the 12 December has a negative impact on mortgages.

Whether you’re new to the housing market and want to apply for a first time buyer mortgage, or you know your current mortgage deal is due to end, my advice is that you contact us to explore your mortgage options, see if there’s an opportunity for you to get a better mortgage deal and make sure that everything’s in place – namely a mortgage offer – before election day.

As a large and growing Guildford mortgage broker with a comprehensive panel of lenders, we not only have access to the best UK mortgage deals, but we also have a team large enough to process your application quickly, which is exactly what you need if you want to take advantage of what may, in hindsight, turn out to be the calm before the storm.

Complete Mortgages also has access to the most competitive specialist mortgages including commercial mortgages, adverse credit mortgages, buy to let mortgages, limited company buy to let mortgages and mortgages for contractors.


Could 2020 be the year of the first time buyer mortgage?

Friday, 22nd November, 2019
first time buyers

It’s official (according to a report from Post Office Money, at least). First time buyers are taking less time to save a deposit.

The report, which outlines how the average first time buyer in 2019 took 3.6 years to save up enough to afford their first home compared with 3.8 years in 2018, is positive news – particularly as we head into a new year, which is a time when property sales tend to spike.

Of course, there are a number of reasons why those applying for a first time buyer mortgage are reaching their goal quicker. The report lists overtime, a helping hand from parents and even selling unwanted items on sites such as eBay as being behind the boost. However, regardless of what’s driving the push, it would seem that demand for first time buyer mortgages is likely to increase in 2020.

If you fall under the category of first time buyer and are looking to apply for a first time buyer mortgage in 2020, then there are two things that we recommend you do:

1. Sign up to receive our newsletters, then download our comprehensive first time buyers guide, which includes 13 key tips on things that you should be thinking about or getting in place in advance of submitting your first time buyer mortgage application.

2. Call a member of the Complete Mortgages team on 01483 238280 or email info@complete-mortgages.co.uk to discuss next steps and how to make sure your first time buyer mortgage application goes through seamlessly.

And, while we’re covering top tips, this article also provides the perfect opportunity to remind first time buyers about the government’s Help to Buy ISA, which will close to new savers on 30 November.

For savers that aren’t aware of the scheme, it is open to those saving to buy their first home and sees the government top up your savings by 25% (up to £3,000) – without any pressure on you to pay it back!

The eligibility criteria states that the property you eventually buy must:

1. Have a value no more than £250,000 UK wide or £450,000 if the property is in London

2. Be the only property you own

3. Be where you intend to live

With less than two weeks to go until this offer is withdrawn, the team at Complete Mortgages recommends you act fast and apply for a Help to Buy ISA today. You can review the different products via Money Saving Expert here.

In the meantime, if you have any other first time buyer-related questions, concerns or points you’d like to discuss with a Guildford mortgage broker, then contact us today.