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


How do I get a mortgage if I have a bad credit rating?

Friday, 29th July, 2016

So, you want to apply for a mortgage. And if that isn’t tough enough, you also have a poor credit rating to boot. Don’t worry, the doors of home ownership don’t need to close on you and you’ll be pleased to know that there is a way to ensure that you get your foot firmly on the property ladder.

If we cast our memories back to the credit crunch of 2007/8, when adverse credit mortgages (or subprime mortgages) were arguably one of the root causes of the financial crisis, you could be forgiven for thinking that a sub prime mortgage is one to avoid.

However many things within the financial services have changed over the last eight years and, thankfully, the sub-prime mortgage is one of them. For a more informed guide as to what’s changed and how adverse credit mortgages have undergone a facelift, read our article here.

Here, we will deal with the frequently asked questions the Complete Mortgages team receives when it comes to applying for a mortgage with a poor credit rating.

After all that happened, do subprime mortgages still even exist?

Yes, but they are now very different. Firstly, you have to demonstrate that you are able to make repayments. Secondly, sub-prime mortgages aren’t granted with the same reckless abandon they once were. They are very much regarded as a niche product and many lenders will only approve adverse credit mortgages if the applicant can show that they’ve experienced an ‘unexpected event’, such as divorce or business failure.

Where can I get a mortgage with a poor credit history?

Or, more to the point, ‘who will give me a mortgage with my bad credit rating?’. Given how there are more complexities around applying for subprime mortgages, we would recommend that this is one for a mortgage broker to handle. If they’re worth their salt they’ll be able to match your profile, lifestyle and circumstances with a suitable product. And when it comes to products, a reputable mortgage broker will have full access to a comprehensive product portfolio at any given time. Let’s face it, mortgage applications can be an arduous task at the best of times, so why not let your broker do the legwork?

Are subprime mortgages more expensive than prime mortgages?

Yes, they are. The costs vary and this is something to explore with your mortgage broker, however the structure – both in terms of cost and risk – is very different now from those on the market pre-crash. This is where your broker will add value, by presenting a suite of products that will match your needs and being able to discuss your options face to face.

Will the recent EU referendum outcome make it easier or harder for me to apply for an adverse credit home loan?

It’s really is too early to say. There are reports to suggest that the subprime lending industry is growing and that home loan products aimed at people with adverse credit has doubled in the last twelve months*, however the direct impact of the Brexit vote is still unfolding.

I think I need to apply for a subprime mortgage. What shall I do next?

Get in touch with a trusted and reputable mortgage broker, who will be able to guide you through your options and advise you on the best route to take. At Complete Mortgages, a Guildford mortgage broker, we have a specialist sub-prime mortgage team that is well versed in securing mortgages for those with poor credit scores. We will offer a free initial consultation but there would be an application fee (typically £749 to £999) if you want to go ahead.

Not looking for a subprime mortgage? Remember, we also arrange first time buyer mortgages, commercial mortgages and bridging loans, too. Simply contact us on 01483 238280 or email info@complete-mortgages.co.uk.

*http://www.yorkshirepost.co.uk/news/brexit-jitters-could-lead-to-a-resurgence-for-sub-prime-mortgage-markets-1-8025082


Mortgage boom for Bournemouth

Thursday, 18th February, 2016
mortgage broker in bournemouth

It really is boom time for Bournemouth. Not only is lending on the up, which means that more people in the area are arranging a mortgage, but also a survey carried out by a travel brand has revealed how Bournemouth is now one of the top trending hotspots in England.

Kent took the top spot of UK destinations with flight searches up by 602 per cent. Cambridge came second, up 288 per cent, with Bournemouth up a staggering 100 per cent*.

As a Bournemouth mortgage broker Complete Mortgages has witnessed the Bournemouth property market go from strength to strength over recent years. We’ve certainly seen an increase in mortgage applications and the recent swathe of deals to hit the market has only exacerbated this.

Even the Bank of England seems to be surprised by the amount of mortgage lending that took place in December (a period that’s generally quiet) after it was revealed how £18bn was released by banks and building societies during the Christmas month – up £3.3bn from the same period in 2014.

Looking at the increase in people applying for a mortgage in Bournemouth combined with the revelation that Bournemouth is a ‘top trending hotspot’, it would seem that the area is becoming a go-to place for homemakers, holidaymakers and investors alike.

So, if you’re a buy-to-let investor looking for a buy-to-let mortgage, or thinking of jumping on the Bournemouth bandwagon and simply want to move to the area, then get in touch and find out how we can help you secure a mortgage and be part of the Bournemouth boom.

Whether you’re looking to arrange a mortgage in Bournemouth or simply want advice on finding the right mortgage for you, contact me on 01202 049661 or email jo@complete-mortgages.co.uk.

By Jo Frankowski, Manager at Complete Mortgages’ Bournemouth office

*Momondo