Beat the spring rush and use winter to get ‘mortgage-ready’

Tuesday, 7th February, 2017
mortgage ready

After a wet, dreary and (more often than not) cold British winter, the onset of spring is always a welcome relief.

Not only because with it comes the sunshine and a reminder that summer is only around the corner, but it’s also a time when people start to consider their options when it comes to moving home and getting a mortgage.

Let’s face it, applying for a mortgage mid-winter, for most people, isn’t the most alluring prospect.

However, as a result of keeping big decisions to a minimum during the colder months, there is often a rush of people in March, all of whom want to apply for a mortgage at the last minute.

Not only does this bottleneck put pressure on lenders, but it also puts pressure on those applying for a mortgage, too.

The good news is that as a Guildford mortgage broker with a large – and growing – team of advisers on hand to handle mortgage applications on your behalf, we can take that pressure off and make securing a mortgage a seamless process.

Of course, since June last year we are constantly presented with the recurring questions of ‘what about Brexit?’ and ‘how will Brexit affect my mortgage?’

Despite a degree of uncertainty surrounding Brexit, recent figures from the Council of Mortgage Lenders estimates that gross mortgage lending hit the £20.4 billion mark in December. Whilst this was 4% lower than November, it was also 4% higher than December 2015.

Equally, hugely competitive deals from lenders that began to make an appearance throughout 2016 and are now continuing into 2017 will mean that, for many, applying for a mortgage whilst the option of potentially saving money in the long-term is still there will make the opportunity of getting a good mortgage deal hard to resist.

Whilst some homeowners may be more inclined to wait until there is more clarity around the impact of Brexit – something that we at Complete Mortgages believe will take longer than one or two seasons – Spring is always a time of increased activity when it comes to the property market and mortgage applications. As a result, starting the process earlier will give you that extra advantage.

Regardless of the nature of the application – from residential mortgages and buy to let mortgages, to sub prime mortgages and limited company buy to let mortgages – we will handle 100% of the paperwork on your behalf, proactively chase your application and keep you updated at every step of the process.

So, there really is no need to wait until spring. Our advice is to get the ball rolling by picking up the phone and discussing your options with us sooner rather than later.

Even if you do decide to wait until spring has finally sprung, we can part complete your mortgage application in advance so that you will be ahead of the game when you do make your decision – whether that’s in spring or even summer.

Either way, use winter while it’s still here and ensure that you’re ‘mortgage-ready’ in advance.

Contact a member of the Complete Mortgages team on 01483 238280 or email info@complete-mortgages.co.uk.

By Mark Finnegan, Director at Complete Mortgages


The Help to Buy scheme is over… but it’s not the end for first time buyer mortgages

Thursday, 13th October, 2016
first time buyer

As the saying goes, ‘nothing lasts forever’. Government priorities have a habit of changing (as do Prime Ministers) and with that comes changes in policy.

And it would appear that this is what has happened following the news that the once lauded and very popular Help to Buy Scheme is to come to an end in December. The good news, however, is that it’s only the Mortgage Guarantee element of the scheme that is scheduled to end; its other components including Shared Ownership, Equity Loan and Help to Buy: ISA, remain available.

The Mortgage Guarantee element of the scheme, which has enabled lenders to purchase a guarantee on mortgage loans and, as a result, offer homebuyers – first time buyers in particular – high loan to value (LTV) mortgages of between 80 – 95%, has made homeownership accessible to those with limited access to a deposit. In fact, according to figures*, since the scheme’s launch in January 2014 it has been behind over a staggering 89,000 mortgages.

The question now, however, is whether or not high LTV mortgages are over and, along with it, the chance of homeownership for those who, without the scheme, may have struggled to secure such a highly geared mortgage.

The answer remains unclear and there is much speculation. Many are of the view that as we enter 2017, high LTV mortgage products will diminish. Others believe that even without the government’s support, the first time buyer market is buoyant and can withstand the removal of what many regard as a crutch.

For those who have earmarked the New Year as a time to put their deposit to good use, then here are three things to remember:

1. Lenders need first-time buyers (or those who require a high LTV mortgage which, given how growth in property values has eclipsed growth in wages, is a huge proportion of the population).

2. Whilst the Help to Buy Scheme has undoubtedly been incredibly helpful, the 95% mortgage was already making a post-recession comeback even before the scheme was launched, and therefore it isn’t necessarily the panacea that some have come to believe.

3. 95% mortgages aren’t exclusive to Help to Buy. Put another way, even during the scheme’s lifetime those applying for a mortgage could still access 95% mortgages without going down the Help to Buy route.

As a Guildford mortgage broker that has been getting a 95% mortgage for many of our clients, we feel relatively at ease by the confirmation of the Help to Buy Scheme’s closure. Why? Because as a mortgage broker, with access to a comprehensive panel of mortgage products, we know that there is a plethora of options available that match a huge demographic of people.

For the general public securing a mortgage is often perceived as a binary process; it’s either black or white, yes or no. For a mortgage broker acting on their behalf there are many shades of grey in-between and it’s our job to explore, unpick and navigate them in a way that secures the right mortgage deal for them.

So, whether you’re a first time buyer or someone who was relying on the Help to Buy Scheme to get on the property ladder, don’t rule out homeownership just yet.

Contact the Complete Mortgages team on 01483 238280 or email info@complete-mortgages.co.uk to find out how you can still secure a high loan to value mortgage – and why the end of the Help to Buy Scheme doesn’t spell the end of your homeownership dreams.

*www.financialreporter.co.uk

By Mark Finnegan, Director at Complete Mortgages