Business as usual?

Friday, 13th November, 2020
business as usual

As 2020 continues to upend the entire world in one way or another, the use of the word ‘usual’ has become – well, unusual.

In fact, there really hasn’t been anything usual about this year at all; whether it’s global pandemics or global politics, things have unquestionably been very different from what we’ve become used to.

However, despite the uncertainties caused by the current pandemic and the rules and regulations associated with the latest national lockdown, one thing is certain – the housing market remains open for business as usual.

According to Housing Secretary Robert Jenrick, homeowners are able to move and estate agents should continue operating. Of course, things will be different and, in the case of property viewings, virtual viewings are likely to increase, but the important point is that those looking to move should keep on looking, and those applying for a mortgage should keep on applying.

Realistically, ‘Is now a good time to move?’ and ‘Is now a good time to get a mortgage?’ are probably more pertinent questions for those thinking of buying a property.

As a Guildford mortgage broker, we saw first-hand how the first national lockdown caused a bottleneck effect when the housing sector temporarily closed. People still need to get a mortgage and move, after all.

This time around things are different, not only because the sector is open and government is actively encouraging people to move if they need to, but also because the Chancellor announced a stamp duty holiday on properties up to £500,000 (and therefore a potential property tax saving of up to £15,000), provided that completion takes place by 31st March 2021 *. ­­

As a result, you have a housing sector that’s open as usual and the equivalent of a discount on the cost of moving available for the next few months.

So yes, now is a good time to move and apply for a mortgage. But let’s be honest, it’s more business as unusual than business as usual.

If you’re hoping to take advantage of the stamp duty holiday then contact the Complete Mortgages team on 01483 238280 or email info@complete-mortgages.co.uk. Remember, we specialise in ALL mortgages from first time buyer mortgages and equity release mortgages, to adverse credit mortgages and commercial mortgages.

* https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates

If you purchase a residential property between 8 July 2020 to 31 March 2021, you only start to pay SDLT on the amount that you pay for the property above £500,000. These rates apply whether you are buying your first home or have owned property before.

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

Stamp duty cut could save you £15,000

Thursday, 9th July, 2020

The last few months have been turbulent, to say the least. And if you’re anything like me, then you’ve probably lost track of the countless bailouts, measures and financial packages that have been announced in order to get the UK’s economy back on track.

However, one measure that was announced yesterday by Chancellor Rishi Sunak as part of the Summer Statement is likely to stick firmly in the mind, particularly with those looking to apply for a mortgage and move home: the cut to stamp duty.

Prior to the announcement, stamp duty on the purchase of a main residence cost £1,500 on properties valued at £200,000; £5,000 on properties valued at £300,000; £10,000 on properties valued at £400,000, and £15,000 on properties valued at £500,000.

As of 8 July, stamp duty no longer applies to residential properties with a value up to £500,000 * – a move that is thought to affect up to 90% of UK homeowners. Not only that, but properties over £500,000 will also attract a much lower level of stamp duty, too.

It’s important to remember that this isn’t something that will stay around forever. In fact, it’s a stamp duty holiday – and one that will only last until 31 March 2021. The announcement, of course, has been designed to get the economy (and homeowners) moving, and with rates so attractively low – or non-existent in the case of purchases up to £500,000 – Complete Mortgages expects there to be a flurry of activity over the coming months.

It’s also important to note that, in real terms, the stamp duty holiday actually increases a homeowner’s purchasing power by effectively boosting their deposit. For example, if you’re looking to move home and your budget’s £500,000, then the £15,000 saved in tax can be used to increase the amount you’re putting down on the property. Rather than pay 3% in tax, you can increase your deposit by 3% – a double win that will be particularly welcomed by those looking for high loan to value mortgages.

Ironically, as a Guildford mortgage broker that has experienced its busiest June ever, we haven’t seen anything but a flurry of activity during the lockdown period. Still, we applaud the Chancellor’s bold move and we expect those applying for a mortgage in the UK will be equally appreciative.

So, the countdown is on. Will you take advantage of it?

UK homeowners now have nine months to benefit from the stamp duty holiday and reduce their property tax bill. If you’re looking to get a mortgage over the coming months, Complete Mortgages can help. Contact us on 01483 238280 or email info@complete-mortgages.co.uk to begin your mortgage application.

* the 3% higher rate for purchases of additional dwellings (including buy to lets) applies on top of revised standard rates above for the period 8 July 2020 to 31 March 2021.

Getting a mortgage with bad credit

Saturday, 9th March, 2019

Do you remember the heady days of pre-2007; a time (for a decade or so leading up to the ‘credit crunch’) when there was unfettered access to mortgages and mortgages were granted on the basis of what the applicant stated they earned?

I do, as it was only 2006 when I launched Complete Mortgages as a mortgage broker in Guildford, so I was able to witness the pre-crunch and post-crunch scenarios in a very short space of time.

Pre-2007, those who wanted to buy into homeownership could do so with relative ease. Post-2007, mortgage lending dried up and a more forensic approach was taken when it came to analysing the affordability levels of those applying for a mortgage. So much so, in fact, that adverse credit mortgages, formerly known as sub-prime mortgages, all but dried up completely.

However, after mortgage lending reform, the introduction of tighter legislation and a deeper understanding of how to avoid ending up in a similar situation again, the subprime mortgage is no longer frowned upon. In fact, adverse credit mortgages have quickly become a mainstay amongst mortgage lenders and mortgage brokers UK-wide.

Importantly, those applying for an adverse credit mortgage will need to be able to fully evidence their earnings. The days of self-certification mortgages really are over. Instead, adverse credit mortgages have been designed to help the following groups of people:

1.Those with a history of defaulting on payments

It’s no secret that failing to pay your bills on time is generally frowned upon. However, as we all know, it’s very easy to do. Overlooking payment dates is a common occurrence for many – but should they really be locked out of home ownership because of it.

2. Those who have had County Court Judgments (CCJs)

A CCJ is a type of court order that can be filed against those who owe money yet have failed to pay it back. If you receive a CCJ but fail to pay the amount stated back within 30 days, it is entered on your credit record for six years and is regarded as a serious black mark.

3. Those who have arranged Individual Voluntary Arrangements (IVAs)

Whilst not quite bankruptcy, it is a form of insolvency that’s based on a formal, legally binding agreement to pay off your debts over a period of time. As the courts and the creditors have agreed it, you have to stick to it.

4. Those who have declared themselves bankrupt

The big ‘B’. This one is generally viewed as the end of the line and taken very seriously by mortgage lenders. After all, if someone has been declared bankrupt then they are often viewed as high risk.

5. Those with a thin credit file

If you are new to borrowing – regardless of your age – then there can be little (or zero) history available to enable lenders to build up an accurate financial picture of those looking to borrow. This factor is assessed on a case-by-case basis, but it can have a negative impact on your ability to apply for a mortgage.

If you are hoping to get a mortgage but fall under one of the five areas above, then the good news is that all is not lost. However, you may have to consider applying for a subprime mortgage.

Our team of adverse credit mortgage specialists are on hand to discuss any concerns you may have and help you overcome any mortgage obstacles you’re currently facing. Simply contact us on 01483 238280 or email info@complete-mortgages.co.uk. We can also help with standard mortgages, buy to let mortgages, mortgages for self employed people and commercial mortgages, too.

By Mark Finnegan, Director at Complete Mortgages

How to increase your chances of getting a mortgage

Saturday, 28th July, 2018
guildford mortgage broker

Firstly, this isn’t a cheat or a piece that advocates – or even encourages – you to try and pull the wool over a mortgage lender or broker’s eyes, and that’s for the very simple reason that it’s impossible and won’t work.

You will not be able to trick a lender into giving you a mortgage or awarding you with the best mortgage deal.

However, just as an athlete prepares for an event, there are a number of things that you can do to help get you mortgage fit. Here are a few pointers to get you started.

1. Score points with your credit score

One way a lender can check if you have what it takes to repay your mortgage and honour your commitment is to check if you have good credit history.

In general, your credit report is what it is and made up of a number of sources including credit card history, loans taken and overdrafts used.

Before you apply for a mortgage it’s worth checking to make sure it’s a) up to date and b) correct.

If you spot anything glaringly inaccurate then at least you have the opportunity to fix it in the short term before it scuppers your chances long-term.

2. No vote, no chance

If you’re not registered to vote than you’re unlikely to get a mortgage. This one’s really easy to prepare for, too. If you’re going to fall down at one of the hurdles then don’t let it be this one. Click here to register to vote.

3. Don’t let the past affect your future

Joint current accounts, loans and other commitments carry joint responsibility. If you’re linked to any of these via an ex-partner – and the ex-partner has defaulted on a payment or done something that would have a negative consequence – then you’re going to be affected, too.

The best way forward in this instance is to check if you’re still linked in any way and, if you are, get yourself disassociated.

4. Be careful with your credit

Just because you have a credit limit of £12,000 doesn’t mean you need to spend £12,000 on credit. At least that’s the view of lenders, who would typically prefer your overall credit card debt to be no more than 50 per cent of the amount available (the lower the better).

When it comes to credit card debt, then it’s better to pay it off – however don’t leave yourself with zero debt and huge credit limits; lenders worry that you may one day go one a huge spending spree!

5. Be diligent with your admin

We’ve all had accounts that we don’t use and rather than close them down, we’ve simply cut the associated cards up and thought that that was it.

Having multiple bank accounts open with nothing in them isn’t advisable, especially if the details attributable to those accounts are out of date and could be disadvantageous to you.

6. Don’t apply for credit just before you apply for a mortgage

The more credit searches you have on your file in a short space of time, the more chance a lender has of thinking you’re in desperate need of credit – even if you’re not.

We would advise that you get a mortgage before you get the new car!

7. Bills don’t pay themselves

So make sure you pay yours – on time.

Not paying a bill on time stays on your records for six years, so don’t let an innocently missed payment result in a missed mortgage offer.

8. Use a mortgage broker

This one really is simple.

As a Guildford mortgage broker, we see people battling with mortgage applications on their own day in, day out, all when they could let us do the legwork on their behalf. As mortgage brokers do this every day and know what’s required (and, importantly, what’s not) they can simply fast-track the process.

Why waste your time when you can hand it over to a professional!

If you’re thinking of applying for a mortgage, or if you’ve been struggling to get a mortgage, contact the Complete Mortgages team on 01483 238280 or email info@complete-mortgages.co.uk. We can help with first time buyer mortgages, buy to let mortgages, commercial mortgages and adverse credit mortgages.

By Mark Finnegan, Director at Complete Mortgages

Self-employed friendly mortgages

Monday, 5th March, 2018

Sometimes, it’s as though those who take the most risks are penalised the most.

At least that seems to be the sentiment of 71% of self employed people who feel that they are discriminated against when it comes to getting a mortgage, according to new research from The Mortgage Lender.

Yes, mortgages for self-employed people seem to be that little bit harder to come by, which is a huge shame – particularly when it’s this demographic who play key roles in growing the UK economy and given how, according to new research by Data Line for Business, there are now record numbers of self-employed people in the UK.

Data Line for Business’s research highlighted how:

  • One in seven people now work for themselves
  • The number of self-employed people have grown by a million since a decade ago
  • Self employed women have grown 24% to 300,000 since Q2 2013

Whilst this is great news when it comes to the UK’s entrepreneurial spirit, it’s very much at odds with the barriers – and the perceived barriers – to self-employed mortgages.

What’s the problem with getting a mortgage if you’re self-employed? 

We often get self-employed people asking, ‘Why is it hard to get a mortgage, even when my monthly mortgage repayments would be significantly less than my current rental outgoings?’.

The truth is that lenders find it hard to assess self-employed people as they might pay themselves different amounts at different times. Some may choose not to pay themselves much at all in order to keep cash in the business.

Prior to the financial crash, self-certification mortgages enabled business owners to get a mortgage relatively easy. After the crash, lenders became less inclined to lend on the basis of what the applicant claimed they earned.

However, there are a number of accessible self-employed mortgages on the market right now. Also, as a Guildford mortgage broker that specialises in contractor mortgages and mortgages for the self-employed, we are well placed to help all business owners – from sole traders to owners of limited companies – get a mortgage.

Our advice would be to get in touch on 01483 238280 or email us on info@complete-mortgages.co.uk. Also, in advance of speaking – or meeting – with a member of the Complete Mortgages team, we would recommend that you gather the following documentation in readiness: –

1. Two years’ accounts (if you have a Limited Company or Partnership)

2. SA302 forms and Tax Year Overviews for the two past two years. Here’s a link for more information on how to obtain them

3. Proof of a deposit (or equity in your property, if remortgaging) of at least 5%

Getting a mortgage if you’re self-employed isn’t unachievable. It just requires a little more work. However, as a mortgage adviser in Guildford, we’ll handle the legwork on your behalf.

Remember, Complete Mortgages doesn’t just specialise in mortgages for self-employed people. We also specialise in mortgages for teachers, adverse credit mortgages, buy to let mortgages and limited company buy to let mortgages.

By Mark Finnegan, Director at Complete Mortgages