Issue 4 of our newsletter " Mortgage & Protection" news
Caz Blake-Symes • July 13, 2018
Welcome to our latest newsletter for Summer 2018. With excellent mortgage deals still on offer, is this the time to assess your borrowing needs? If so, then we look at differing options and the ways to borrow that might be on offer, dependent on your own personal situation.
Elsewhere, we consider the peace of mind brought about by having suitable protection cover in place, should the unexpected occur. If you felt that it’s unlikely you would benefit from a payout if you had to claim, then think again.
With all this in mind, we highlight how important it is to come to us for professional advice to help navigate you through the massive array of lenders, insurers and their product choices, along with endeavouring to enable you to meet the affordability criteria on mortgage loans.
Finally, the Buy-to-Let landlord represents an important and sizeable piece of the property marketplace, but recent developments mean that it’s vital that they take advice on regulatory and tax developments, and perhaps consider if Limited Company status is a suitable route forward.
We hope you find the issue of interest and, once you’ve had a chance to look through, do pass it onto friends, relatives or work colleagues, if you think it may be relevant to them too.
In this issue
- It’s good to talk- is it time to talk about your borrowing needs?
- Take care of yourself – is your income protected?
- Paying the Mortgage or Rent - which is best?
- Looking to borrow- lots of things to consider to get the best deal.
- Borrower facts and statistics
- Your guiding light – get advice and updates for Buy to Let Landlords.
- Limited Company for Investors?
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#buytoletlandlords
#firsttimebuyermortgage
Adapted from Zoopla’s April 2025 Housing report I mage: The analysis uses average house prices from the house price index and for first-time buyers to assess mortgage payments at different mortgage rates applied to a 30- year mortgage, at different loan-to-values. One emerging trend that we expect to positively support market activity in the coming months is a relaxation in how lenders assess the affordability of new mortgages. While buyers focus on the mortgage rate they will pay, lenders also check whether the borrower can afford a 'stressed mortgage rate' at a higher level than the borrower will pay. While the average 5-year fixed rate mortgage is around 4.5% today, many lenders are currently 'stress testing' affordability at 8-9%. This makes it harder to secure a mortgage without a large deposit. If average mortgage stress rates were to return to pre-2022 levels of 6.5% to 7%, this would deliver a 15-20% boost to buying power. An average first-time buyer with mortgage repayments of £1,020pcm at a 4.5% mortgage rate would typically have to prove they could afford monthly repayments of £1,550pcm at an 8.5% stress rate. If the stress testing is relaxed to 6.5%, repayments would fall to £1,275pcm, boosting buying power. It's a similar pattern for the average homeowner, while the actual impact will vary by lender and type of borrower. This change would consequently supporting demand and sales volumes, helping to clear the stock of homes for sale, rather than boosting house prices. Other existing rules and regulations that remain in place will continue to impact the availability of mortgage finance. Comment from Phil Clark “This is potentially very exciting news and will give borrowers a greater choice of products if these rules are relaxed. Regardless of whether you are a First-time Buyer, Looking to move, remortgage or invest in property, there are a huge range of competitive mortgage deals on the market. I will be delighted to discuss your specific requirements and offer you the most suitable deal!” Please call Phil on 0117 3251511 or email info@swmortgages.com For more information about the Mortgage and Protection products we offer, please visit www.bristolmortgagesonline.com Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
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There have been some important changes to the legislation regarding Stamp Duty Land Tax with effect from 1 April 2025.
This edition includes fantastic new mortgage products, updated guides for those with adverse credit, 17 great tips to follow before making and application and lots more.
If you need help with any of the items covered, please call Phil on 0117 325 1511.
Let us help you If you have a poor credit score or issues with your credit history.Call Phil on 0117 3251511 to discuss any credit uissues.
The housing market is resilient, supported by faster growth in average earnings. There are the most homes for sale in 7 years, which will keep price inflation in check. But are buyers missing opportunities in the flats market?
Here at Bristol, Bath and Exeter Mortgages Online, we understand that getting your first mortgage, or even a remortgage, especially if your circumstances have changed, may look like an impossible task, but we are here to help.
We hold your hand from your initial enquiry through to the completion of your purchase. It's not that tricky and there are ways you can improve your odds and boost your chances of a successful mortgage application.
We are delighted to be able to offer our clients an incredible mortgage deal through Bath Building Society.
Bath Building Society is currently offering market-leading discounted mortgage products designed to provide flexibility and great rates.
Adapted from BBC Article by Kevin Peachey, Cost of living correspondent 13 February 2025 Two major lenders launched mortgage deals on Thursday with interest rates of less than 4%, as competition picks up in the sector. The prospect of further cuts in the base rate by the Bank of England has given mortgage providers confidence to reduce their own rates. But the attention-grabbing sub-4% deals by Santander and Barclays will not be available to all borrowers, particularly first-time buyers, and may come with a hefty fee. The return of such deals might prompt other lenders to follow suit after a period of tepid competition. Nationwide, the UK's biggest building society, has said it will reduce some of its rates on Friday. Mortgage deals with interest rates below 4% have not been seen since November. Across the whole market the average rate on a two-year fixed deal is 5.48%. The typical rate on five-year deals is 5.29%, according to latest figures from Moneyfacts. Time to decide Some tracker and variable rate mortgages move fairly closely in line with the Bank's base rate, which was cut to 4.5% a week ago. However, more than eight in 10 mortgage customers have fixed-rate deals. The interest rate on this kind of mortgage does not change until the deal expires, usually after two or five years, and a new one is chosen to replace it. About 800,000 fixed-rate mortgages, currently with an interest rate of 3% or below, are expected to expire every year, on average, until the end of 2027. That means a higher monthly bill for many homeowners on their next renewal, but there are signs that the rate they could pay is on its way down. Bank of England governor Andrew Bailey said the interest-rate setting committee expected to be able to cut rates further "but we will have to judge meeting by meeting, how far and how fast". This will affect savers who are seeing lower returns, but could bring better news for borrowers. The Bank's next rates decision is on 20 March. Message from Phil Clark “Regardless of whether you are a First-time Buyer, Looking to move, remortgage or invest in property, there are a huge range of competitive mortgage deals on the market. I will be delighted to discuss your specific requirements and offer you the most suitable deal!” Please call Phil on 0117 3251511 or email info@swmortgages.com For more information about Mortgage and Protection please visit www.bristolmortgagesonline.com