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

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

Time to buy a property in Bournemouth?

Thursday, 6th October, 2016
Bournemouth mortgage broker

The property market is, as Jimmy Greaves would often say about football, a funny old game.

And similar to football, it’s littered with ups and downs, peaks and troughs, winners and losers. Some people may find themselves living in an area that housing market intelligence states is – or is soon to be – thriving. Others may find themselves in an area that, according to industry reports, is experiencing a slowdown.

Some live in both, as is the case with Bournemouth.

Back in January of this year Bournemouth experienced the sharpest increase in house prices out of all areas across England and Wales, with Your Move stating how the average Bournemouth property price went up by 2.9%, which was faster than anywhere else1. Fast forward to this month and it would appear that Bournemouth and other southern cities including Oxford and Cambridge are ‘leading a slowdown’ in the UK’s property market2.

Talk about a fall from grace.

However, we need to keep in mind how UK property values fluctuate on a continual basis and that nothing lasts forever. In fact, as a Bournemouth mortgage broker, I see this as an opportunity for those looking to buy a property in the region.

When it comes to the stock market, investors live and die by the sword. If they buy low and sell high, they make money. Conversely, if they buy high and values drop then they can lose money. The trick is to buy at the right time. The housing market isn’t so fickle in as much as we rarely see property prices fall, however the recent slowdown provides the opportunity for property investors looking to arrange a buy to let mortgage – or even those looking to secure a first time buyer mortgage – to enter the Bournemouth property market before property prices once again begin spiralling out of reach and before housing intelligence reveals that Bournemouth has fallen back into favour.

The reason for Bournemouth’s boost in property values at the beginning of the year was a result of the region’s growing digital economy, or the ‘silicon beach surge’, which saw a 212% in new digital companies enter Bournemouth and Poole between 2010 and 2013. This kind of growth trajectory simply doesn’t end overnight.

Equally, if we take a look at the recent reasons given for a slowdown in Bournemouth’s property prices then it mainly comes down to the EU referendum’s fallout, the fears of which have been allayed by national newspapers stating that the post-referendum impact wasn’t as drastic as many had anticipated.

From my perspective, as a mortgage broker in Bournemouth, I would say that this ‘downturn’ represents an opportunity for those who have been thinking about applying for a mortgage to get the ball rolling whilst we’ve been afforded this ‘pause’ in house growth.

After all, when prices begin to rise again – and they will – it simply means in real terms that the value of your deposit will diminish.

If you’re looking for Bournemouth mortgage advice or are ready to apply for a mortgage, regardless of whether you’re a first time buyer or a seasoned property investor, Complete Mortgages can help find the right mortgage deal for you. Contact the team on 01202 049661 or email enquiries@complete-mortgages.co.uk. 

1 International Business Times

2 The Telegraph

By Jo Frankowski, Senior Mortgage Broker at Complete Mortgages Bournemouth office

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