Great News on Budget Day for Home Buyers!

YAY, Mortgages with just 5% deposits will be back offered by a few lenders from April!

Amongst lenders offering mortgages with just 5% deposit are well known high street lenders and more are to follow and join in their offering of 95% Mortgages.

The stamp duty holiday has now been extended until the end of June and the nil band is set to stay at £250,000 until 30th September.

These are all very welcome news for first time buyers and home buyers!We are very busy and appointments need to be booked in advance so don't wait - contact us now to discuss your position to buy your dream home.

Am I too old to get a mortgage?!

Am I too old to get a mortgage?

We often hear this question from customers who are in their 40s or 50s and who believe that due to their age, they will not be able to get a mortgage.

Whilst there is a question on mortgage application about your age, this is usually not the main factor deciding whether or not you qualify to get a mortgage.

Many lenders have no limit as to how old an applicant is at the point of application and many lenders are very flexible as to the mortgage term’s length. You could potentially even be in your 80s when you finish repaying your loan.

What lenders are more interested in is, how you will be able to service your monthly payments and what retirement income you are likely to have. You could request to stretch the term of your mortgage however lenders will want to see what income level you will have to continue to be able to service your loan. You might only have a modest state pension, but you might also have other pension pots and sources of income, like dividends from your business or rental income.

If, at the point of application, you are more than 10 years away from your planned retirement age, then the lender may not even ask for evidence of your pension income. This doesn’t mean that it should not be taken into consideration. If, however you have less than 10 years left to your planned retirement age, then you are most likely to be asked for some pension forecast or other documents stating potential future income.

We do advise on mortgages with longer term, often stretching to or past retirement age and it is mainly about being able to afford the payments.

Should you have any doubts or queries, do contact us for initial consultation.

What is changing for EEA and Swiss Citizens on mortgage front?

New Year will bring lots of changes for businesses and employers due to Brexit and there may be also some changes to mortgage borrowers who are non-UK residents living and working in the UK.

Some mortgage lenders are already introducing new criteria due to Brexit! For some mortgage applications certain lenders will soon require proof of residency rights in the UK from EEA/Swiss nationals. Examples of documents required are pre-settled and settled status documents. If, therefore, you are a non UK national living and working in the UK and planning to get a mortgage, it is best to check whether you have the required residency status after 31 December 2020.

Should you need further information or need help with preparing your mortgage case, do contact us and we will be happy to help.