Do you have a mortgage with Halifax? If so are you on their standard variable rate?

Are you aware this SVR is due to increase by 0.49% (to 3.99%) for borrowers who come off of product rates taken from January last year?

Halifax standard variable rate today sits at 3.50% for most borrowers – this sounds fairly competitive.

Yet if you have 40% equity in your home you are probably paying too much for your mortgage.

If you have 40% equity in your home you are paying up to £50 more per month than you need to.

The extra costs of staying on a standard variable rate are clear when you know you could be paying just 2.99% interest on your mortgage  - and benefit from fixing your rate at the same time.

We can arrange a re-mortgage for you to obtain a lower mortgage rate  - without hassle, without meetings, and without paperwork.

All you need do to make these valuable savings is to contact us now – contact us now.

Figures above are estimates and intended as a guide only. Each individual borrower will have their own circumstances and savings cannot be guaranteed. The figures above should not be considered an offer of terms.

Are you one of the 16,000 Bank of Ireland mortgage customers who were recently transferred to Nationwide under it’s ‘The Mortgage Works’ brand? If so, are you currently enjoying the Bank of Ireland standard variable mortgage rate of 2.99%?

Mortgage Rate increases from March 2012

You will probably be aware that Nationwide intends to increase your mortgage payments from 2.99% to the 4.79% offered by The Mortgage Works under it’s standard variable rate. These increases are due to start imminently, being implemented from next month – March 2012.

The average mortgage size of those transferred is understood to be £150,000 which means an increase of around £225 per month in mortgage interest payments. This is especially punative given that the average loan to value of transferred clients is low at around 50%.

Keep your mortgage rates low

Fortunately, ex Bank of Ireland clients can opt to move to another Lender to avoid the increase in monthly mortgage payments, or, in some cases, see a reduction in payments.

We can currently access tracker remortgage rates from 2.69% and fixed remortgage rates from 2.85%. What is more we can arrange everything with no valuation fees and legal costs paid by the Lender.

If your Bank of Ireland mortgage is causing you concerns – – contact us now.

Abbey Santander today announced that it is reducing maximum lending on it’s offset mortgage product to £550,000 from the current £1 million. We believe this will severely reduce their impact in the offset and flexible mortgage sector as the bulk of the offset mortgages we handle are in the £500,000 to £1 million range.

Fortunately there are still a number of Mortgage Lenders offering full offset mortgages products above £550,000.

Both Accord and Leeds offer offsets up to £750,000 and Coventry, Scottish Widows Bank, and Barclays Woolwich will advance up to £1 million on an offset basis.

If you are considering an offset mortgage product we always recommend that you be certain you will use the flexible and offset facilities. These products are typically priced slightly above the traditional products – borrowers taking an offset mortgage and not using it’s features will therefore be disadvantaging themselves.

Please visit our what is an offset mortgage page for more information.

If you require assistance in arranging an offset mortgage – contact us now.

Abbey Santander today announced they are changing their policy on interest only mortgage applications.

They said:

‘We constantly review our offering to ensure it best meets the needs of your clients and following a review of our interest criteria we have taken the decision to reduce our maximum LTV on our residential mortgages where any loan part is on an interest only basis to 50%.’

This means that any borrower who wants to have any part of their mortgage on an interest only basis with Abbey Santander in the future cannot borrow more than half the value of the property.

What is an interest only mortgage?

Under an interest only mortgage arrangement, the borrower services the ‘interest only’ on a mortgage loan each month.(Under the more traditional arrangement of capital repayment a repayment of capital is made each month in addition to servicing the interest).

What does this action by Abbey mean for the future of interest only mortgages?

We have seen all Mortgage Lenders becoming more restrictive in their approach to interest only mortgages in recent years. Most now will not consider interest only mortgages for loan to values over 75%. Abbey is the first major player to reduce this figure to 50%.

Whether this 50% figure will also apply to their offset mortgages is not yet clear. (offset mortgages are often set up on an interest only basis and the funds in the offset account have the effect of paying down the capital element if set up in the right way).

Will Nationwide, Halifax, and Barclays Woolwich follow Abbey’s lead? – that will very much depend on how borrowers react to this.

Clearly clients who want to use interest only above 50% loan to value will not now be offered Abbey Santander products as a potential solution. During the last 12 months Abbey have been competitive on rates in the 60% to 75% loan to value range and that may no longer be enough to maintain their levels of business. This could leave room for Nationwide, Halifax, and Barclays Woolwich, to pick up the slack without having to be aggressive on pricing. This is clearly not good news for borrowers.

What if I already hold an interest only mortgage above 50% – should I worry?

If you already hold all, or part of your mortgage on an interest only basis you should already have some kind of repayment vehicle arranged, be that ISA’s, pensions, inheritances, bonuses, shares portfolios, or sale of property

- That has not changed.

Abbey have not said that existing borrowers will be affected and Lenders do not, as a rule, apply new criteria to existing clients. This type of policy may cause an issue if you intend to move and wish to port your product.

If you are unsure about how these type of policy changes may effect you, get independent mortgage advice.

If you require help or advice with an interest only mortgage – contact us now.

Halifax issued a press release today stating they are increasing maximum loan to value on New Build houses to 90%

What does this mean for you as a Borrower?

If you are applying for a mortgage as a first time home buyer with a low deposit you will often be asked if you are buying a New Build property. (A new build in Mortgage Lender parlance is a property that has not been lived in before, typically sold direct to the applicant by the Builder or Developer.)

Why is it important to you and your Mortgage Broker if the property is ‘New Build’?

Lenders have differing attitudes to lending on New Build properties as opposed to older homes, particularly in respect of deposit size. Lenders will ask for a higher deposit on a ‘New Build’ than on an equivalent deal with a ‘pre-occupied property’. This caution stems from the practice of Developers selling new properties at a premium price which cannot always be realised in the event of a swift resale. Lenders will look to reduce their risk by asking the client to invest a little more cash into the deal.

Why are Halifax taking this action now?

Firstly, this may be an indication that Colleys (the surveying arm of HBOS) believe that prices on New Build properties are becoming a little more realistic.

It may also be in preparation to benefit from the Government’s New Build Indemnity Scheme programme which is also advantageous to the Lender.

More about New Build Properties and Mortgage Lending

Use an Independent Mortgage Broker when purchasing a New Build property as complications with Mortgage Lending will be encountered – for example:

Flats – maximum loan to value on New Build flats can be lower than on houses, meaning you need a higher deposit

Builder’s Incentives – Incentives provided by the Builder such as deposits and stamp duty paid are not always acceptable to Lenders.

Exposure – Lenders will limit the amount of exposure they have on a particular development or apartment building, and this can sometimes exclude Lenders for the Borrower.

If you need a Mortgage on a new Build Property – contact us now.

The New Build Indemnity Scheme is designed to improve conditions for first time buyers in the mortgage lender market by offering additional security and guarantees to the Mortgage Lender without impacting on the client’s position.

How the New Build Indemnity Scheme works

In simple terms, the Developer/Builder will contribute cash funds in the order of 3.5% of the value of the property into a fund designed to protect the Lender’s position in the event of default by the Borrower.  The fund will be held for seven years and interest will be payable on it.  At the end of this period funds will be returned to the Developer less a portion of any credit losses incurred during the period.  Funds will be pooled so that the Lender can draw on them to meet losses on any properties sold by the Developer under the scheme.

The new Build Indemnity Scheme will be available on both flats and houses. There will be no compulsion for the Developer to join the scheme and both Lenders and Developers will decide who they wish to work with.

The scheme is designed for owner occupiers and not investors and will therefore not be available on the buy to let market.

New Build Indemnity Scheme Important points

The fund does not protect you as the Borrower in any way as your own liability will be exactly the same as in any other mortgage.

The party getting the real benefit is the Lender whose losses can be protected at up to 95% of their value by the fund. Although the FSA will expect the Lender not to compromise their standard underwriting requirements, this protection can obviously be expected to affect their decision making as to the benefits of competing in this area of the mortgage market.

You as the Borrower

The New Build Indemnity Scheme can be expected to make funds more accessible for Borrowers on New Build property, with perhaps a little more competition leading to better Mortgage rates.

If you require a mortgage for a New Build property – contact us now.

Tomorrow (1st February 2012) sees the launch of Nationwide Building Society’s TV advertising campaign to promote it’s Nationwide low deposit mortgages for first time buyers.

Nationwide is a strong lender for the first time buyer market and we often use them for our clients due to their competitive rates and sensible underwriting.

With so much press talk about the difficulties first time buyers have in generating mortgage deposits, this launch will provide a welcome patch of sunshine in generally grey skies.

Currently Nationwide products require a minimum 10% deposit (unless the applicant is an existing client), and there are Lenders offering 5% deposit mortgages.

However the Nationwide mortgage rates are competitive for first time buyers at 5.29% fixed and, since credit scoring in the ultra low deposit mortgage market is particularly tough, Nationwide Building Society should provide a good source of lending for first time buyers in the first half of 2012.

If you require a first time buyer, low deposit mortgage, from Nationwide, or any other Lender – contact us now.

Today we have added a new bad credit mortgage page to our amortgagenow website with comprehensive details of credit problems and how they affect your ability to secure a mortgage.

We feature a coloured banding system to enable you to assess how your credit record may fair and how you are likely to be viewed by mortgage lenders in today’s market.

Our independent mortgage brokers are waiting to assist you with your bad credit mortgage.

If you need help with your mortgage – contact us now.

Purchasing an investment property is something that doesn’t come without risk, yet with a few key points to guide you on your way, you can improve your chances of buying profitably.

Below are nine tips to help you make key decisions on investment in property.

1. Location

If  you have rented a home at least once in your life you will appreciate the importance of location. Quite simply, properties located in the more central areas cost more  to rent.  You will need to do some research before you buy a property, in order to establish the ‘quality’ of the area.

If you find a situation where you can buy a ‘cheap property’ that is not located in prime area, you should think twice. There is no value in owning a nice property in an area few people ever want to consider for their home.

2. Rental history

Before you buy a property you should check out the rental history on it. This will tell you the amount of rent former landlords have charged and  give you an idea of the profit potential of your prospective investment property.

In addition, check the amount of time that the property was rented for – importantly, be on the lookout for high tenant turnover. In the majority of cases this will indicate there is a problem with either the location, or the property itself.

3. Amount of listings in the area

Walking through the area where you intend to buy your new investment property, or perhaps just checking the internet will give you a view of the number of rental properties that are listed locally. See how quickly properties turn from ‘available’ to ‘let’ and you will have a good idea of demand.

4. Schools

Family tenants will initially take a look at the schools that can be found close to your investment property. This is one of the main reasons why they would want to rent a home in that area.

Before you buy an investment property check the available schools in  the area and their performance standards. The higher the local schools are classified, the more likely it is people will want to rent your property.

5. Proximity to amenities

Most people who want to rent will be interested in local the proximity of amenities. Having a property that’s near to the supermarket, to a big shopping centre, a cinema, bank, post office and so on will grant you higher chances of finding tenants for it. There are also many individuals who will want to have access to leisure facilities like gyms, swimming pools, and clubs , so be sure you take these into consideration as well.

6. Crime

Look for a low crime area – statistics are available on line. If the area you are targeting is known for crime, few will want to rent there and the rent you can expect will be very low.

7. Job opportunities

People want properties convenient for their workplace. Many will want to relocate nearer to their workplace, as commuting not only takes time, but also costs money and stress.

Choose an investment property that is easily commutable to the town centre, or major employers such as hospitals and colleges, but far enough away so that people will not have to deal with problems like pollution or a crowded traffic.

8. Size of the property
This is a major consideration. When people look for a place to rent, one of the main factors that will attract them is the space of the property. If your investment property is good for young families with at least two bedrooms, you have an advantage.

A property with two bedrooms and two bathrooms is a suitable investment for those seeking young Professionals who are likely to share.

9. Age of the property

When you buy an investment property consider one that is not older than ten years. This will exempt you from many dangers and costs when it comes to building maintenance. You will be the one having to fix the problems for the tenant, so a good choice will keep your costs down.

In summary

Putting yourself in your tenant’s shoes is the best way to judge the right property for you. Personal taste is irrelevant – this is a business transaction.

Whatever you decide – we wish you well. If you require a mortgage for an investment property – contact us now.

Platform is part of Co-Operative Bank, it’s specific role is to handle buy to let mortgage lending through mortgage brokers.

Platform advanced £450 million in 2011. As as indication of their confidence in the buy to let mortgage market they intend to increase lending by one third to £600 million in 2012. This is good news for buy to let investors as Platform are one of the leaders in this area of the mortgage market.

Rates from Platform tend to be competitive (buy to let rates start at 3.29% as of this morning), and underwriting criteria is also fairly well thought through. Features include free standard valuation on many products.

If you have a requirement for a buy to let mortgage – contact us now.

For more information on buy to let mortgage lending see our video below