Revisit the remortgage (even if you don’t quite need to)

Thursday, 28th November, 2019

Here’s the thing. When it comes to remortgaging, we pride ourselves on providing a bulletproof service.

You can read more about our approach to remortgage applications via our article entitled ‘When is the right time to remortgage?’, but to summarise, if you’re a Complete Mortgages customer you will NEVER need to worry about falling onto the standard variable rate mortgage as we will never let it happen.

However, our award-winning mortgage broker services aside, there is currently one good reason to be considering your remortgaging options even before we remind you to consider them.

As I write this, remortgage rates are low. Incredibly low, in fact. And if you take into account just how competitive remortgage rates are right now combined with the fact that lenders’ mortgage offers typically last for six months, then it means that you could potentially lock in a great mortgage deal now so that it’s all in place for when your current mortgage does end.

For example, if you secured a low cost mortgage deal now, at the end of November 2019, it could be redeemable up until the end of May 2020. There would be no pressure from the lender to proceed with the deal from now until the offer expires, but it would cushion you against factors out of everyone’s control such as any negative Brexit fallout and interest rate rises, should there be any in the next six months.

Of course, we can’t predict what may or may not happen in 2020. However, as a Guildford mortgage broker, we’re just offering food for thought and highlighting a simple way in which you can protect yourself from any future rising costs.

After all, when mortgage rates become so low, it gets to the point whereby there’s only one way they can go. By getting a mortgage offer based on today’s rates, you’re safeguarding yourself against the unpredictability of tomorrow. And, if they go down even further between now and when you’re due to remortgage, then you simply apply for another deal.

Looking to hedge your bets when it comes to remortgaging? If so, contact the Complete Mortgages team on 01483 238280 or email info@complete-mortgages.co.uk to discuss your options. Remember, we also offer a range of specialist mortgages including buy to let mortgages, limited company buy to let mortgages, mortgages for teachers and adverse credit mortgages.


A boost for first time buyer mortgage seekers

Saturday, 20th October, 2018
first time buyer

Interest rates have gone up, but so too have the chances of first time buyers getting a mortgage with a small deposit.

Data from Moneyfacts has revealed that the average rates for 95% loan to value mortgages – mortgages for those with only 5% deposit to put down on a property – for two and five-year fixed rate terms have reached the lowest levels on record.

Whilst the period of recorded data only dates back to 2007, when Moneyfacts began recording it, 11 years is still a long time and this newfound accessibility for hopeful homeowners with a small mortgage deposit is significant.

Two-year fixed rate mortgages, for example, have fallen from an average of 4.16% in September 2017 to 3.73% today. Likewise, five year fixed rate mortgages have dropped from 4.57% in 2016 to 4.08% today.

You may think that this is at odds with the two recent interest rate rises, and to a degree you’d be right. However, there is speculation that lenders are keen to keep the first time buyer close so that they become the go-to lender at latter stages in the applicant’s property ownership lifecycle.

You could liken this to the motor industry, whereby those buying a car at the lower end of the manufacturer’s price range are nurtured as years go by in the hope that they stay loyal and buy something requiring a bigger budget as they progress in life.

Of course it’s all relative, and we shouldn’t forget that in today’s market, where there is a huge swathe of competitive mortgage deals on offer, 3.73% and 4.08% is still significantly higher than the ‘standard’ mortgage. That said, if you’re someone who’s looking to enter the property market and you only have five% to put down, then at least there are now more attractive first time buyer mortgage deals to get you on the property ladder.

As a mortgage broker in Guildford that specialises in first time buyer mortgages – including some of the more specialist mortgages such as mortgages for teachers and mortgages for self-employed people – Complete Mortgages is here to help.

If you have a 5% deposit then contact a member of the team on 01483 238280 to discuss your options and find out how you, too, can get two feet on the property ladder. Alternatively, email info@complete-mortgages.co.uk.


How to increase your chances of getting a mortgage – part 2

Friday, 10th August, 2018
mortgage broker

Following on from part one, which you can read here, part two continues with some of the more standard tips and pitfalls to be aware of – as well as presenting some of the mistakes which have had negative consequences for those applying for a mortgage in the past.

1. Bad form is to not correctly fill in your form

If you’re using a mortgage broker, then this is less relevant as they should be handling – and checking – the paperwork on your behalf. However, if you do decide to go it alone with your mortgage application, fill everything out in full – including your entire name. Don’t round up income figures, do make sure that your address history is accurate and always give honest answers about your spending habits. More importantly, declare any debts; not doing so could lead to being instantly declined for a mortgage.

2. Don’t put off until tomorrow what you can do NOW!

When it comes to gathering paperwork, we’re all guilty of a bit of procrastination and hoping that the omission of the odd document here and there won’t be a problem. However, when it comes to getting a mortgage, getting the application right first time is well worth the effort. Our advice is to get everything you need together in one go. Examples include: bank statements for the last three months; last three months’ pay slips, latest P60, any evidence of bonuses, and, if you’re self employed, your last three years’ worth of accounts and tax returns.

3. Stay out of your overdraft

Being in the red creates a black mark – on your credit rating. It also implies that you’re unable to manage your own money and spending. Make every effort to stay within the confines of your own budget and give the lender fewer reasons to say ‘no’ to granting a mortgage.

4. Light-hearted bank statement pranks may lead to heavy consequences

As tempting it as might be when paying a friend back for a set of concert tickets they bought to leave something cheeky or crude in the ‘reference’ field, think twice before you do it. Whilst it may be funny in the heat of the moment, it leaves a record that might not have the same impact on the lender reviewing your case. As funny as it might be at the time, out advice is to save the gags for the pub.

5. Don’t take a gamble on your mortgage

This one probably should be obvious – but it’s often overlooked. A regular transaction made at high street or online gambling companies doesn’t look particularly good and sends alarm bells ringing. Our advice, given how we’re not betting people, would be to put any money you were going to gamble towards a deposit on your property.

6. Big cash deposits can lead to big problems

The odd irregular cash deposit from or to a friend isn’t a problem, however if these payments regularly appear on your statement then it could be flagged and questioned by the lender. If the topic of money laundering isn’t called into question then any payments may be viewed as financial commitments. Either have explanations for each and every significant payment, or try to reduce the amount of irregular payments you either make or receive.

For many, getting a mortgage is a minefield. Why not let Complete Mortgages, a mortgage broker in Guildford, do it on your behalf? From first time buyer mortgages and buy to let mortgages, to commercial mortgages and more specialist mortgages, we can help. Call us on 01483 238280 or email info@complete-mortgages.co.uk to find out how we can help you.


Three reasons to use a buy to let mortgage broker

Monday, 6th November, 2017
buy-to-let mortgages

The buy-to-let mortgage market is booming – but not necessarily in the way you might think.

In fact, it’s taken quite a pounding over recent years. The first attack came when George Osborne, in his role as Chancellor, announced the phasing out of tax relief for landlords. The second, also a ‘blow’ by Osborne, came in the form of stamp duty surcharge on additional properties.

The result? The jury’s still out, however the repercussions seem to be a combination of landlords with high LTV mortgages releasing some of their properties back on to the market and existing landlords raising their rent.

Yet recently released figures suggest that buy to let mortgages are far from over.

According to Moneyfacts*, there has been a seven per cent rise in the number of buy to let mortgage products to enter the market, taking the total to 1,735 – the highest number of mortgages for landlords since the heady, pre-crash days of 2007.

It also makes choosing the right buy-to-let mortgage increasingly difficult.

So, as increasing taxes don’t seem to be putting off would-be landlords from entering the market – and following our recent ‘five reasons to use a mortgage broker’ article – we thought we’d outline three key reasons to consider using a buy to let mortgage broker.

1. Time is money

As a mortgage broker in Surrey, a county with a large share of buy to let landlords, we are in a continuous cycle of appraising new buy to let mortgage products in the context of our clients’ needs. Of course this is hugely time consuming – however it’s our job. You, on the other hand, may not have the time required to separate the wheat from the chaff and sift through this growing glut of deals.

By getting a buy to let mortgage broker to do the legwork and find a deal based on your personal requirements – all of which would have been established during an initial consultation – you are able to save yourself huge amounts of time by only having to deal with a shortlist containing the best-of-the-best deals.

2. Mortgage brokers are mortgage experts

If you’re looking to sell your property, you’ll no doubt commission an estate agent to sell it. If you have a problem with your roof you’ll consult a roof specialist. Similarly, if your car’s not working, you will probably visit a mechanic. We can’t all be experts in everything – there simply isn’t enough time. We don’t claim to be property experts, nor can any member of my team (myself included) fix a car, but we are experts in arranging a mortgage for our clients. If you want to save time and benefit from expert advice, then use a mortgage broker with a good reputation.

3. Not just any mortgage

Those of you that already have experience of getting a mortgage – either independently or though a mortgage adviser – will know that there is a lot of ‘crossing the Is and dotting the Ts’. With buy to let mortgages, there is even more.

Not only that, but a good mortgage broker can help advise you with regards to making sure the numbers stack up (i.e. the mortgage you secure works in tandem with the rent you plan to charge). The difference between 1% on your mortgage rate here, or a potential/hidden charge there, can make a serious impact on your profit. An experienced buy to let mortgage broker will be able to review this in relation to your own requirements very quickly and make sure that you get the right deal for your circumstances.

Cut through the buy-to-let mortgage ‘noise’ and contact Complete Mortgages on 01483 238280 or email info@complete-mortgages.co.uk. Remember, we also offer specialist mortgages including commercial mortgages, self-employed mortgages and adverse credit mortgages.

By Mark Finnegan, Director at Complete Mortgages

*https://www.ftadviser.com/mortgages/2017/09/12/number-of-buy-to-let-deals-at-10-year-high/


The buy to let mortgage goalposts have moved… again

Thursday, 28th September, 2017

Staying on top of the buy-to-let mortgage market has become a job in its own right.

Some changes are small and relatively inconsequential – the inner workings, or behind the scenes details, if you will, that we tackle as part of the mortgage application process and that don’t need to burdened on our clients.

Others, such as the upcoming Prudential Regulation Authority changes, which will be applied by 30 September 2017, do need some light shed on them.

After all, current landlords and those in the process of applying for a buy to let mortgage are coming to us and asking ‘what does it mean for me?’.

In order to make the information accessible to everyone, we’ve prepared our Prudential Regulation Authority changes made simple.

This should clear a few things up, however if you still need clarification then please call a member of the Complete Mortgages team on 01483 238280, who will be more than happy to help.

So, if you’re a landlord and wondering ‘how will the new buy to let rules affect me?’, then read on.

1. Size matters

As part of what appears to be a crackdown on buy to let landlords who have ‘stockpiled’ mortgaged properties, the new rules really impact those who have four or more properties within their portfolio.

It’s also important to note here that the figure of four doesn’t relate to the number of mortgages you have – but the number of properties. If you own four properties under one mortgage then you will still be treated as a portfolio landlord. If you have two or three mortgaged buy to let properties, the new lending criteria will not affect you.

2. Down to the last detail

If you currently own three buy-to-lets and are looking to buy a fourth, or if you already own four and are looking to buy more, then you will be required to prove that your other properties – or at least your ability to cover the cost of the other properties – won’t be affected by taking on another.

To do this, lenders will:

a. Want to review income from other sources – including that derived from your existing portfolio – to ensure that can cover maintenance and void periods

b. Assess your experience as a landlord

c. Apply an Income Coverage Ratio, which is dependent on a number of factors including all your earned income. Note: this will vary from lender to lender

d. Require full details of the entire portfolio in order to assess the overall risk, potentially including assets/liabilities, cashflow and investment intentions.

Essentially, lenders will want to carry out stringent checks to make sure that taking on an additional property – or properties – will not be too much of a financial stretch.

3. Getting personal

Of course, as part of these checks, lenders will also want to know your personal liabilities and outgoings, too.

Expect the following areas to be explored as part of the review:

a. Credit cards and their balances

b. Vehicle financing agreements

c. Loans

d. General outgoings

The buy to let mortgage market is a constantly evolving sector. As a result, it’s important that you don’t get caught out.

As a Guildford mortgage broker our advice for buy-to-let landlords is to contact a mortgage adviser to find out how the new changes might affect you personally.

Likewise, we recommend that all new and aspiring landlords find a reputable mortgage broker to advise them on how to apply for a buy to let mortgage in the context of the impending new rules.

Contact Complete Mortgages on 01483 238280 or email info@complete-mortgages.co.uk. Remember, we also offer specialist mortgages including limited company buy to let mortgages, equity release mortgages and adverse credit mortgages.

By Mark Finnegan, Director at Complete Mortgages