Before you start searching for a home it’s a good idea to work out exactly how much you can borrow. You can speak with your bank but by just doing that, you are limiting your options.
There’s a huge range of mortgage deals available from many different lenders and our independent mortgage advisors can check them all. From rates to terms of the mortgage, we get to understand your long-term goals, why you’re buying the property to ensure we find you the best rate, with mortgage terms that suit you.
As the cost of borrowing is so low at the moment, if you’ve already got a mortgage in place you could be paying more than you need to! Our advisors are able to help you look at re-mortgaging options too, maybe even helping you release some money from your home too! You never know, if you could end up paying a lower monthly repayment and get to take that holiday you’ve been dreaming of.
The buy to let market continues to see lenders acting very much as was. Rates have held at competitive levels despite some residential rates going up over the recent months.
With the growth in house prices over the last few years, specifically in this area we have seen a real market shift towards investors looking at owning investment properties through a Ltd company rather than as an individual. The reasons behind this are fairly straight forward. The way a lender calculates how much you can borrow is worked out using what we call a stress test. This stress testing works on a number of levels and makes certain assumptions based on ‘worse case scenario’ situations with interest rates. The stress testing available on a Ltd company is a lot more flexible and in most cases will allow someone to raise more of a mortgage than they would if they were to own the investment as an individual. There can also be tax advantages to handling your affairs this way.
95% mortgages are back!
Announcements in recent months saw a real buzz back in the marketplace specifically around our first-time buyer and lower deposit clients. Living and owning property in an area where prices are at such a premium can often make it difficult for people trying to move or get themselves on the ladder. We are now seeing more and more lenders returning to the 95% market with the added confidence and support of the government which has helped give more confidence to the marketplace.
With more buyers now able to get mortgages and look at properties there is of course an increase in demand. Increased demand is healthy as it creates a competitive market for both buyer and seller. Whether you are a first- time buyer, someone looking to move home, or an investor, one thing right now is for sure. It has never been more important to ensure you are receiving the right advice on your options from experienced and qualified experts. Here at Mortgage Advice Bureau, we are proud of the exclusive deals we have available to all clients as well as the wealth of knowledge and expertise available through our brokers. If you think you need a refresher on your options or are thinking of anything mentioned above and how it could possibly impact you then please do not hesitate to get in touch free of charge and we would be more than happy to help and advise.