Budget boost for first time buyer mortgages

Friday, 12th March, 2021

The Chancellor, Rishi Sunak, handed the UK some positive news last week (particularly those in the market for first time buyer mortgages) after announcing that ‘generation rent’ is to be replaced by ‘generation buy’.

The claim follows the government’s decision to extend the stamp duty holiday to 30 June from what was scheduled to conclude at the end of this month. It will then be tapered from 1 July until the 30 September.

What does this mean? Well, it means that the current tax break on the first £500,000 will remain in place until 30 June. It will then be halved to £250,000 from 1 July to 30 September. Then, from 1 October, the full stamp duty measures will be put back in place.

This is, of course, good news for those who were planning on applying for a mortgage before the stamp duty holiday ends. It’s also good news for those who are currently in the process of buying a property, but who may just have completed after 31 March, which would have perhaps incurred charges that the buyer was aiming to avoid.

And, of course, the Chancellor’s decision is also likely to be welcomed by anyone looking to get a mortgage today, as it means that there is now an extra amount of time available to cover the mortgage application process and any chain-related issues that often impact the sale and purchase of a property.

So, if any of the above descriptions accurately describe you – or if the outcome of the Budget has acted as a tipping point and given you the certainty you needed to make your first – or next – move, then the next bit is simple.

If you are looking to apply for a first-time buyer mortgage, or if you simply want to take advantage of the stamp duty holiday before it ends, then contact the Complete Mortgages team on 01483 238280 or email info@complete-mortgages.co.uk.

Remember, whilst we are first time buyer mortgage specialists, we are also buy to let mortgage specialists, equity release mortgage specialists and commercial mortgage specialists, too.

Six top tips on equity release mortgages

Wednesday, 20th March, 2019
Equity Release Mortgages

If you’re considering going down the equity release mortgage route, then you’re probably aware of the overall concept behind them, how they work and the benefits of releasing equity from your home – particularly if you’re 55 years old and above and looking to free up capital.

If that’s not the case, then read our ‘Are equity release mortgages good or bad?’ article, which provides a quick and easy guide to equity release.

However, if you are further down the line and are now thinking about the wider implications, then these six tips may be of interest.

1. Consider the alternatives

Equity release mortgages are effective and their growing popularity reflects this, however it’s always good to know your options. When it comes to alternatives, then the most cost effective way of raising capital is to downsize. However, if space is important to you and you want to stay in your home and have more money at your disposal, then applying for an equity release mortgage could be a more suitable route.

2. Keep your family in the loop

Equity release is a big decision and one with a number of potential repercussions for children and family members later on down the line. Our advice, when it comes to equity release mortgages, is to make your intentions clear to all those who may be affected by an equity release contract in the future.

3. Big decisions require good mortgage brokers

As a Guildford mortgage broker, we’ve seen – and helped people through – the effects of poor equity release decisions made on the back of bad advice. Getting an equity release mortgage is a significant decision and one that needs to be backed up by sound advice. Make sure that choosing a good mortgage broker is on your list of priorities before committing yourself to anything.

4. Know the numbers

Fees and compound interest form part of equity release mortgage deals. It’s no different from any other mortgage agreement in that regard, however this may have more implications on those who, as they get older, are likely to work and earn less. Know where you stand and how much it’s going to cost you before you sign the paperwork.

5. Equity release is convenient…

…but it can also be an expensive way to borrow. If, after getting good advice from a mortgage broker, you decide to apply for an equity release mortgage, then make sure you don’t take out more than you need, as any excess money will be accruing interest up until the point that your property is sold.

6. Lowest isn’t always the best

Choosing a mortgage with the lowest possible rate is pretty much a priority for everyone. However, when it comes to equity release, lowest isn’t necessarily the best. Equity release mortgage deals often include special features, such as offering the borrower the ability to make monthly repayments to avoid interest rolling up. Whilst the premium for this may be a slightly higher interest rate, it may work out more beneficial on a long-term basis and provide a greater degree of flexibility.

Still unsure about equity release mortgages? Contact one of our equity release mortgage specialists on 01483 238280 or email info@complete-mortgages.co.uk to find out more. Remember, we’re not just specialists in equity release mortgages but also first time buyer mortgages, buy to let mortgages and commercial mortgages, too.

By Mark Lucas, Equity Release Specialist at Complete Mortgages