How is Coronavirus affecting mortgages?

Friday, 13th March, 2020

There’s nothing like an interest rate cut to get people to sit up and take notice (not that people aren’t already on high alert following the daily stream of news surrounding Coronavirus).

However, an interest rate cut does generally signify some kind of issue. Or, at the very least, provides a signal that something isn’t as it should be.

It’s also quite polarising. On the one hand, you have savers – possibly even those who’ve paid their mortgage off – who will have rolled their eyes at the fact that their savings are no longer earning as much money as they were only a few days ago. 

This also applies to those who’ve recently entered fixed rate mortgage deals, who are likely to experience a period whereby they’re potentially paying more than they would have on non-fixed mortgage deals.

On the other hand, there are those on tracker mortgages who will no doubt welcome a period of cheaper monthly mortgage payments.

Either way, the link between Coronavirus and mortgages is certainly being felt – and not just by homeowners, either. As a team of Guildford mortgage brokers, we are adjusting and adapting our approach to mortgage applications on a daily basis, too.

Negative points aside, and without trying to sound too opportunistic, Coronavirus does present an opportunity for those applying for a mortgage or who are thinking about remortgaging.

As the Bank of England’s interest rate has been cut from 0.75% to 0.25%, lenders are now likely to reduce their mortgage rates, too. Complete Mortgages predicts that any reduction by lenders isn’t going to reflect the entire 0.50% base rate cut, but probably somewhere in the region of 0.10% instead. Of course, rates may not drop at all and this, in part, depends on how long the Coronavirus lasts and how widely felt its impact is.

However, just as those keeping a keen eye on the stock market are waiting to buy back in at the right time, our advice would be to keep in touch with your Guildford mortgage adviser (and by that we mean us) to find out just how low fixed rate mortgages go before committing to a 2, 5 or even 10 year fixed rate mortgage.

For the latest mortgage advice and Coronavirus mortgage updates contact the team on 01483 238280 or email info@complete-mortgages.co.uk.

Note: those currently in the mortgage application process with Complete Mortgages should not be concerned about disruption of service. All of the team are ready and fully equipped to work from home should that become necessary.

Getting a mortgage if you’re divorced

Thursday, 6th February, 2020
Getting a mortgage if you’re divorced

Interestingly, there appears to a ‘content gap’ when it comes to advice on applying for a mortgage if you’re divorced.

Strange, considering how research from the Office for National Statistics revealed how there were 90,871 divorces in 2018.

Reassuringly, this was down 10.6% when compared with 2017. However, 90,000 is still a large number. And, if you multiply this by two, on the basis that for every divorce there are potentially two people needing a mortgage, then that’s potentially 180,000 newly separated individuals enter the market wondering ‘can I get a mortgage now that I’m divorced?’.

Given the number of mortgage applications for divorcees we’ve prepared over the years, the Complete Mortgages team has become, for want of a better phrase, divorce mortgage specialists. And, considering that January is a notoriously busy time for separation, we thought we’d share a few tips for getting a mortgage if you are divorced.

Will child maintenance payments reduce the amount I can borrow?

Lenders treat child maintenance payments as outgoings, just as they would loan repayments and utilities payments, so it will affect your borrowing capability. Conversely, if you’re receiving child maintenance payments, then some lenders will not consider this income, and therefore you will not be able to use this form of income to borrow more. Thankfully, there are some exceptions to the rule, which a good mortgage broker will be able to source for you.

I’m buying a property to live in, but I still own the marital home. How will this affect my chances of getting a mortgage?

If you plan to continue being named on the mortgage then a second property will be treated as such. This means that from a lender’s perspective, you will need to be able to demonstrate that you can meet payments on both properties – this is something that a reputable mortgage broker will be able to help you with. Similarly, as a second property purchaser, you would be required to pay the additional 3% Stamp Duty as specified by HMRC. You can apply for exemption; however, you would need to provide legal evidence to prove that you are formally separated – your solicitor will be able to provide guidance on this.

I’m currently going through a divorce and have moved out of the marital property. Do I still need to continue paying for the mortgage?

Regardless of your situation, you will need to keep paying for the mortgage if you’re named on it. By not paying on time, you may damage your credit history and therefore your chances of arranging a mortgage after your divorce. If one person refuses to pay, this could spark a long-lasting chain of events. Banks can be sympathetic to divorce, so the sooner you contact them and make them aware of your situation, the easier it will be. In some cases, lenders provide mortgage payment holidays to help remove pressure in the short term.

I’ve just gone through a divorce and am ready to purchase my next property. What do you recommend?

Get good mortgage advice. As a Guildford mortgage adviser that has arranged mortgages for countless people after they’ve gone through divorce, we understand the ins and outs of post-divorce mortgage applications, and the subtleties and difficulties associated with the process. So, if you’re ready to take the next step then contact the Complete Mortgages team.

Whether you’re recently divorced and looking to get a mortgage or ready to move up the property ladder, our team of Guildford mortgage brokers can help. Contact the team on 01483 238280 or email info@complete-mortgages.co.uk.

Surrey mortgage broker lands exclusive limited company buy to let mortgage pilot

Wednesday, 9th October, 2019

Guildford mortgage broker, Complete Mortgages, has become one of only a handful of mortgage brokers in the UK to run a limited company buy to let mortgage pilot with West Bromwich Building Society, the UK’s seventh largest building society.

Complete Mortgages can now offer some of the UK’s lowest limited company buy to let mortgage deals with a maximum loan-to-value of 75%.

The Guildford mortgage adviser is now urging seasoned portfolio holders and those looking to buy a property through a limited company to contact the Complete Mortgages team to secure competitive mortgage deals before the pilot ends.

Mark Finnegan, Director at Complete Mortgages, comments: “We’re delighted to have been invited to join West Bromwich Building Society’s pilot and to now be able to offer our customers some of the most competitive limited company buy to let mortgage deals in the UK. Buying through a limited company has become a popular way in which to invest in property and we’re seeing more and more people adopt this approach. This pilot makes these specialist mortgages even more accessible and we’re proud to have been chosen to participate.”

Research conducted earlier this year by specialist lender Precise Mortgages revealed how two thirds of portfolio landlords are planning on using limited companies to buy their next investment property. West Bromwich Building Society, which uses mortgage brokers to lend to 90% of its customer base, is expecting to capitalise on this increased interest in limited company buy to let mortgages.

For further information or to apply for a limited company buy to let mortgage with Complete Mortgages contact the team on 01483 238280, email info@complete-mortgages.co.uk or visit www.complete-mortgages.co.uk.

How to get a cheap mortgage

Wednesday, 7th August, 2019

This isn’t a cheat. Nor does it involve any sneakiness or withholding of information on your part when it comes to applying for a mortgage. And yes, it’s legal!

In fact, it’s so above board that you may even kick yourself and wonder why you haven’t done anything about it before.

Note: if you’re an existing Complete Mortgages customer then this doesn’t apply to you as, for reasons you’ll understand if you read on, we wouldn’t have let this happen to you in the first place.

According to Yorkshire Building Society, more than £26bn worth of mortgage deals are due to mature in October. Simply put, this means that £26bn worth of mortgages are about to slip on to the more expensive standard variable rate (SVR).

It’s a bit like energy providers or telecoms firms; when you’re coming up to the end of your contract you can either renew on a more cost-efficient deal – or start paying more.

The building society’s analysis further reveals that by avoiding the ‘default mortgage setting’ of the SVR through remortgaging, homeowners could be saving themselves up to £200 a month. That’s £2,400 a year!

If you’re not currently a Complete Mortgages customer but are one of the many UK homeowners whose mortgage is about to become more expensive, then our advice is that you start looking into remortgaging as soon as possible. Of course, as an award-winning Guildford mortgage adviser, then we recommend you call us on 01483 238230 to kick start the remortgage process.

Either way, failing to change mortgage deal – or even mortgage lender – if you’re about to fall onto the SVR could end up costing you a pretty penny.

As to why it doesn’t apply to our customers, we contact each and every single one of them months before their mortgage deal is due to end – regardless of whether that’s in October or not.

We have a team of people whose role it is to make sure that not a single client falls onto the SVR. The reason we do this is because being a good mortgage broker isn’t just about making sure the customer gets the best mortgage available to them, but also that they save as much money as possible along the way.

Yes, remortgaging takes a bit of time and legwork (although a mortgage broker worth its salt should gladly handle this for you), but it isn’t particularly difficult. And as the price of not doing it can be as much as £2,400 a year, then why wouldn’t you explore your options.

If you’re not currently a Complete Mortgages customer and think that you might need to remortgage in the not too distant future, then contact the team on 01483 238280 or email info@complete-mortgages.co.uk.

If you are already a customer, then you needn’t do anything at all. If your remortgaging needs are already catered for then remember that we also specialise in first time buyer mortgages, buy to let mortgages, adverse credit mortgages and equity release mortgages.

By Mark Finnegan, Director at Complete Mortgages

How will Brexit affect my mortgage?

Monday, 28th January, 2019

Ah, Brexit. If there’s one word that people – regardless of their position – are tired of hearing, it’s probably that one. However, it’s a reality and one that is affecting all markets – including the mortgage market.

Regular readers will know that the team at Complete Mortgages isn’t one to shy away from topical debate, so as the official date approaches (or moves further away?), we thought we’d address Brexit and mortgages head-on.

Is it a bad time to get a mortgage?

There is general uncertainty around Brexit – and understandably so.

However, you may be surprised to learn that despite all the talk of doom and gloom, housing transactions, post-EU referendum, have remained relatively stable.

Figures from HMRC UK Property Transaction Statistics suggest that the biggest spike was pre-referendum in April 2016, when there was a big push for mortgages and house purchases prior to the introduction of the 3 per cent stamp duty surcharge. Since then, there haven’t been any dramatic reductions or increases in the number of houses being sold.

Shall I make the jump to a fixed mortgage?

There is still a long way to go – maybe even longer than we thought – before we officially leave the EU. As a result, our advice to those who are about to apply for a mortgage is don’t put your life on hold.

Mortgage rates are still very low so there are still some fantastic deals on the market. Equally, given the turbulence around Brexit, it has become a buyers’ market. On that basis, buying now could result in the savvy property hunter bagging a bargain.

Yes, there are some incredibly competitive fixed rate mortgages on the market right now, however any decision to switch to a fixed rate mortgage, in our view at least, should be made with more than just Brexit in mind.

Taking a long-term view

Often, when you’re in the eye of the storm, it’s difficult see beyond the immediate issues and consider the long-term picture.

Whilst very different to Brexit, the financial crash of 2007/8 caused much panic and saw house prices slump significantly. However, much less than a decade later, house prices bounced back and the impact of the crash drifted from the minds of UK homeowners. 

Whilst Complete Mortgages cannot predict the future, buying a house is a long-term investment, so making decisions using a short-term view could be, well, shortsighted.

Brexit is unknown territory, yet regardless of the direction that it takes us in – for good or for bad – the world will still continue to spin and people will always need mortgages to buy property.

As a Guildford mortgage broker, we have access to hundreds of fixed rate mortgage deals available NOW that will provide certainty of payments in these uncertain times for homeowners – existing and prospective – in Guildford and the surrounding areas. If you’re sitting on the Brexit fence and need some mortgage advice from a Guildford mortgage adviser, why not contact the team on 01483 238280 or email info@complete-mortgages.co.uk.

Complete Mortgages appointed as preferred brokers for prestigious Surrey development

Wednesday, 11th April, 2018

Guildford Mortgage brokerage, Complete Mortgages, has been appointed to handle mortgage applications and enquires for Shanly Homes’ Oak Meadows site – a new development in Woking’s West End area containing 84 properties ranging from £525,000 to £890,000.

The decision builds on the Guildford mortgage adviser’s successful partnership with Seymours, which is exclusively selling all 84 properties on behalf of Shanly Homes under its Land & New Homes division.

The development, which officially launches on 14 April, offers private parking to all 84 homes, spacious internal layouts, professionally designed kitchens and landscaped gardens.

A number of the units are available under the Help to Buy Scheme, a government initiative that makes new build properties accessible to all home buyers by providing a loan to increase the overall size of the borrower’s deposit.

As a Help to Buy mortgage specialist Complete Mortgages provide its clients with a comprehensive mortgage brokerage service, which means that it can manage all aspects of the Help to Buy mortgage application process – from the initial enquiry through to securing an offer from the lender.

Mark Finnegan, Director at Complete Mortgages, comments: “This is yet another positive step forward for the business and one that reflects our commitment to providing nothing but good service, as well as ensuring that our clients are able to achieve their desired goals when it comes to finding their next home. We’re proud to have been appointed as an approved mortgage broker at the Shanly Homes site and now look forward to helping our clients and those of Seymours find their next home.”

Nationally recognised for its high service levels and sustained growth, Complete Mortgages continues to win awards year after year at the Mortgage Intelligence Awards event. The awards programme is run by Mortgage Intelligence, a mortgage and insurance network and club that helps brokers achieve more by providing tailored solutions, support and training.

To attend the launch of Oak Meadows or for all mortgage enquiries relating to the development contact Seymours Land & New Homes in Horsley on 01483 355444.

Is time running out to get a competitive fixed rate mortgage?

Wednesday, 14th March, 2018
guildford mortgage adviser

Have you recently switched – or considered switching – your mortgage?

If you haven’t then you’re not alone. However, it may be worth considering your options as the debate around whether or not a new interest rate rise is imminent (many are saying it is) gains ground.

Whilst we don’t know when, exactly, or by how much, the Bank of England will increase interest rates, we do know that another two are planned before 2020.

If the first, relatively modest, rise of 0.25% wasn’t enough to get you thinking about fixed rate mortgages then the second one might.

As a Guildford Mortgage adviser, we’ve seen an influx of people from across Guildford and the southeast enquire about getting a fixed rate mortgage. Lenders have increased their mortgage rates since the last interest rate rise, however it’s not too late to get the ball rolling and apply for a fixed rate mortgage.

With access to some of the most competitive mortgage deals in the UK, Complete Mortgages is still seeing a number of options which, if you were to act now, would mean that you would still benefit from an excellent mortgage rate – and would be well placed to beat the rise (if and when it happens).

We’re seeing demand for three year fixed mortgages, five year fixed mortgages and even 10 year fixed mortgages increase significantly, which indicates that people are now beginning to think seriously about locking themselves into consistent monthly mortgage payments – something that we haven’t seen on this scale for a decade.

Of course, it’s all down to affordability.

Analysis by estate agent Savills suggested that a 1% rise in interest rates would add approximately £10bn to mortgage repayments in the UK – or an average of £930 a year (£77.50 per month) to the cost of servicing an average mortgage.

Depending on your financial circumstances, you may prefer to have the flexibility that comes with other products such as tracker mortgages. Either way, if the much-deliberated rise has made its way to the front of your mind then it’s certainly worth picking up the phone and calling a member of the Complete Mortgages team, who will be able to advise you on the right fixed mortgage for you.

In answer to the original question regarding whether or not time is running out to get a competitive fixed rate mortgage, I would say that there is still time – however I would also recommend that you don’t waste time.

Complete Mortgages also specialises in other mortgages over and above fixed or tracker mortgages. We can also arrange mortgages for self-employed people, mortgages for teachers, adverse credit mortgages, buy to let mortgages and limited company buy to let mortgages. Contact us on 01483 238280 or email info@complete-mortgages.co.uk for more information.

By Mark Finnegan, Director at Complete Mortgages