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One thing is certain: in most cases, when buying a house, you will be required to have a deposit. So what should you do if you want to buy but don’t have enough deposit? Would taking a loan or borrowing from other people be a solution We have been recently approached by some customers who had borrowed so they have a deposit and they were very disappointed to learn that this would not help them! First of all, whilst lenders usually accept a gifted deposit (parents, siblings, grandparents can gift), on condition it is not repayable, only a very limited number of lenders would consider if the deposit was borrowed from a third party or from another lender. By taking this step, you are going to limit yourself extremely in terms of lenders’ choice. Secondly, a loan for deposit may not only lower your credit score but it will also affect your affordability so the amount you could borrow as mortgage may get reduced! Deposit coming from a borrowed amount is one of most common issues we see daily. Remember, before you take any financial decisions, you should speak to a broker first. Otherwise, you might end up with a loan but with no mortgage in the end! Contact us if you have any questions.

What could be better than boosting your savings by further 25% when you are planning to buy a house? Could you benefit from a Lifetime ISA? Here’s a couple of facts about a Lifetime ISA (LISA): A Lifetime ISA can be opened by anyone aged over 18 and under 40 Savings made before 50 attract a 25% bonus from the Government (capped at £1000 per year). This bonus is paid monthly, so interest can be earned on the bonus too. A maximum of 4000 can be saved per tax year with no monthly limit. Savings can be used to buy a first home, to provide benefits in retirement from age 60, or in case of a terminal illness with less than a year to live. If savings are withdrawn for any purpose other than those stated above, a 25% charge is applied. If you have both a Help-to-Buy and Lifetime ISA, the benefit from only one of these can be used for a first home purchase. To be able to buy your first home with LISA savings and bonus you must meet the below conditions: the property costs £450,000 or less you buy the property at least 12 months after you make your first payment into the Lifetime ISA you use a conveyancer or solicitor to act for you in the purchase you’re buying with a mortgage If you have any other questions about buying a house, get in touch with us!

Re-mortgage can be an opportunity to review your strategy and to see what can be done to start building your investment property portfolio . Our success story this week is of clients who bought their first home with very little deposit 2 years ago and, on re-mortgage, we have now managed to get a deal that will let them borrow extra £30k to invest in their first property to let! This is a great outcome after only 2 years when they first bought a residential house. Property values have increased over the last year and, despite all Covid related distractions, the market is very busy. It may be a good thing if you want to borrow extra capital on your home. Every time your property grows in value, you gain more and more equity (ownership) which can mean benefits like: an option to borrow more, option to renegotiate your interest, or option to reduce the term of the mortgage. Remember, every case is different and it has to be assessed on its own merit but when you are planning your re-mortgage, you should not just assume that switching product with the same lender is the only option available for you. Have a chat with a mortgage adviser to discuss what can be done.

If you had bought your house with the Help to Buy Loan and you would like to borrow extra on Re-mortgage to be able to clear that loan, it may be possible but you need to bear in mind that there are a couple of requirements you need to meet: You will need your house valued by a RICS Certified Surveyor – this valuation is only valid for 3 months so plan the process in advance. You need to pay for this survey. You could repay your equity loan in full or in part You will need to complete a redemption form and send it to Target together with an administration fee of ca. £200- £250 You will receive a redemption quote based on the amount of loan you wish to settle (full – 20% of property value, or partial – 10% of property value) You will need to appoint a solicitor to deal with the Help to Buy loan repayment process, so bear in mind the extra cost for legal fees and solicitor fees as well. You will need to check whether you can actually afford to borrow more so before you do anything at all, contact a mortgage broker to check your affordability and credit worthiness. There are other ways to settle the Help to Buy loan so if you need more information, check it here: https://www.gov.uk/.../how-to-repay-your-equity-loan...

Have you heard of First Homes Scheme launched on 4th June? From 4th June, new Government scheme has been introduced offering local First Time Buyers a discount of at least 30% of the market value! The programme aims to support first time buyers, especially key workers like NHS staff or Veterans so there is a benefit to the local community for generations to come. When the house bought under the First Home Scheme will be sold in future to another first time buyer, the same percentage of discount will be passed on to them. These homes will be made available across the country with the first ones launched as a pilot in East Midlands. It is fabulous news especially given the constantly increasing house prices! Further information can be found here: https://www.gov.uk/.../discounted-homes-for-key-workers...

What is Basic Mortgage Valuation? When you are in the process of applying for a mortgage, a lender will want to know that the house is worth the price you have agreed to pay for it and that it is in an acceptable condition to lend on it. They send a suitably qualified surveyor to check these aspects and do a report which helps them take a decision whether or not to offer. This process is called Mortgage Valuation. Who pays for Mortgage Valuation Report? Many lenders offer this report free of charge or for an agreed fee and if they do charge, then it is the buyer who will have to pay. Will I get a copy of the report? Usually, lenders keep it to themselves only, so buyers do not get a copy. It is a report that is done for the benefit of the lender to see if it is worth lending on the property. What report can I get as a buyer? As a buyer, it is recommended that you engage a surveyor to carry out so called ‘Home Buyers Report’. It is a more detailed document about the condition of the property. How can a Homer Buyers Report help me? Once you have done this type of report, you will have a more detailed view on potential future repairs and on existing condition that might cost you in the long run. This, in turn, can help you re-negotiate the price or take an informed decision on what value for money you are actually getting. What does a Home Buyers Report check? It normally looks at internal and external features of the property and checks things like heating system, drainage, water services, energy efficiency rating, roof, windows, damp, insulation etc. How will I know something needs attention? Homebuyer’s report is colour coded so if anything is marked amber or red, should get your attention as it will indicate there is an issue that might be faulty or in need of repair. Do I have to do Home Buyers Report? No, it is not obligatory or required by lenders, but it is recommended if you want to know more about the condition of the house you are buying. Who pays for this report? You, as a buyer will need to pay for it, and its cost varies so best get a few quotes to compare. Will I get a copy of this report? Yes, you do get a copy of this report, but you don’t need to show it to the lender. When should I consider a Building Survey? This type of report is usually recommended to be done on older or larger properties or the ones that you plan to do major building work on. This is the most detailed, most comprehensive and most expensive survey done out of the ones mentioned here. Where do I find a surveyor qualified to carry out a Home Buyer Report or a Building Survey? Some lenders offer discounted price for surveys done by their designated surveyors so you may want to discuss this with your broker or, if a lender you are using doesn’t offer this option, then you will find a suitably qualified surveyor under this link: https://www.ricsfirms.com/ We hope you find this article helpful and if you have any mortgage or house-buying related queries, do contact us and we will be happy to help.

Would you believe that a lender can refuse to mortgage a house if they have already offered on too many in the area?... Yes, it really can happen! Lender does a post code search and they can decide that they have so called ‘overexposure’ in the area and so they will not want to take any more risk there. Overexposure is often an issue on new build development sites and it is very frustrating! But it may also happen for older properties where lender sees too much risk in the particular area and they simply stop offering there. There are many aspects related to property where even the most perfect case scenarios can go wrong. A very important factor is the condition of the house you will be buying, whether it is in a habitable and approvable condition. Also, if property is of a non-standard construction, or if it is in the area where for example there were mineshafts historically, a lender may refuse to mortgage on it. Best thing you can do is to discuss the property you are buying with a broker who will have access to lenders offering on even the quirky builds or construction types. Don’t think the only aspect of your mortgage offer is around your affordability! Property plays an important role here too. If you have any questions, contact us for help.

Could a lender refuse a mortgage if it has already been offered?! The answer is Yes! We might think that once we have a mortgage offered, we can be sure that we will soon be moving into our beautiful new home. How frustrating it must be when the lender decides to cancel the offer? Why could this happen? Lenders may do so called post-offer checks to see if we are in the same financial position as at the point of application. They need to be certain that our earnings, income and credit score is satisfactory. Lender can, therefore, ask for further information at any point and if there is any change in our material position, they can simply withdraw the offer given previously. That is why it is so important that you do not change jobs or take any new form of borrowing without consultation with your adviser as this might seriously jeopardise your chance of buying. Also, do pay all your commitments on time and do not enter into any payment holidays. The rule is simple, if you are not sure about something, always ask the broker. Change of circumstances may not always mean mortgage will not be completed, but it needs to be reported to the lender. If you have any mortgage related questions, simply contact us and we will be happy to help you.

More positive news for buyers who can only put forward a smaller, 5%, deposit. More and more lenders have announced returning with products designed for this purpose. So far there are only a couple of lenders willing to lend to buyers with such a small deposit for mortgage and their criteria differ but we can confirm that there are options now available if: - You only have 5 % deposit - You are not furloughed - Your credit score is pretty good and there is no adverse elements on your credit file - You are a First time Buyer - You are happy to go for the rates between 3.99% and 4.5% It is very positive to see more and more lenders considering return to small deposit mortgages. We are very busy and taking bookings for availability for at least a week in advance so Book Your Appointment to avoid Disappointment!

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? 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.

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.