Mortgage arrears: what to do if you are behind on payments

Being a homeowner can be challenging and falling behind on mortgage repayments could put you at risk of losing your home. However, there are urgent steps you can take if you find yourself falling behind.

What are ‘Mortgage Arrears’?

Missing mortgage payments means you’re at risk of falling into mortgage arrears, a serious situation which should not be ignored. The impact of the cost of-living crisis has led to more and more homeowners falling into arrears. It can seriously impact your credit file and your ability to borrow, with persistent arrears resulting in the loss of your home.

What do I need to do?

Contact your lender straight away. Not notifying your lender could trigger the arrears and can have a detrimental impact on your credit report. Ask your lender for support, as they may offer guidance depending on your circumstances which could include a reduction in payments or extending your term. It’s important to understand that accepting this guidance will add to the cost of the mortgage over the longer term.

Therefore it’s important to switch back to your usual mortgage payments as soon as your finances are manageable, in order to reduce long term costs. Reaching out to your lender and discussing your situation will not impact your credit file, so there is no harm in asking for support.

Reassessing your finances is an important action to take. Taking the time to organise your money can help when finances get tight. If you’re in arrears, you may find yourself struggling with other payments too. If this is the case, seek debt help through debt counselling agencies. Proving that you’ve been actively trying to manage your debts could delay the repossession of your home. As a result of the Mortgage Charter, the majority of lenders won’t repossess a home until at least 12 months after the first missed payment. You will not be forced to leave your home without consent, unless in exceptional circumstances.

Should the worst happen, and repossession is inevitable, consider selling your home yourself. As a result, you won’t have a repossession registered against you which could help you in the future.

Rising interest rates and unemployment over recent months have put pressure on homeowners and disposable income, forcing some to cut or suspend monthly mortgage payments. It’s not all doom and gloom, with many options available before repossession occurs.

For more information, contact us and we can support you and discuss the options available to you.

The struggles of insurance for young people

A significant percentage of the population between the ages of 18 and 34 face an overwhelming challenge: accessing sound financial advice. Despite their financial concerns, many find it difficult to access professional protection guidance.

A recent survey found that, among 18–34-year-olds, four in five (81%) believe that getting financial advice is important. However, 51% of young adults were not sure where they should start looking. Within this group, 32% were unable to afford premiums and 27% had a perceived lack of need for the products.

Importance of protection

When it comes to the importance of insurance, you cannot afford to underestimate its significance. Unexpected events like accidents, illnesses, or job loss can have devastating financial consequences without proper coverage in place. Seeking guidance from a qualified protection adviser can help you navigate complex financial landscapes. By taking proactive steps to access professional advice, you can lay a solid foundation for a financially secure future.

Many young adults tend to underestimate the significance of insurance in their lives. It’s common to think that insurance is an unnecessary expense. However, life is unpredictable, and unexpected events can impact the ability to earn in the future, which is why speaking to a protection adviser becomes even more essential.

Here to help you

Advisers not only help clients secure mortgages but also educate them about the importance of protection and insurance. Whether it’s life insurance to safeguard your family’s future or income protection insurance to provide a safety net in case of job loss or illness, we can guide you in making informed decisions. Tailoring insurance solutions to specific needs and financial capabilities, ensuring that you are adequately protected.

No one likes to think about the worst-case scenario, but it’s important to consider the small steps towards protection, regularly reviewing your circumstances with your adviser can provide valuable reassurance and guidance.

For more information, contact your adviser who can support you and discuss the options available to you.

EPC changes: what it means for landlords

The Government recently announced changes to Energy Performance Certificate (EPC) regulations. The decision to remove the deadlines has raised questions about its future impact and the influence this has on landlords.

EPC regulation changes

As you may already know, EPC regulations require landlords to obtain an EPC rating when selling or renting a property.

The certificate rates a property from most efficient to least efficient, in the aim of guiding potential buyers and renters on the potential costs and overall energy efficiency of the property.

Despite the changes, properties still require an EPC rating although there is no longer a requirement for new tenancies to have a rating of C or above.

What does it mean for landlords?

Following the proposal reversal, landlords are no longer legally required to take any further action to improve their energy efficiency rating across their portfolio.

The Government is still recommending upgrades where possible, in support of its Net Zero target, however these remain recommendations until further notice.

It’s important to consider the demands of the market, with opportunities available to create a suitable property for tenants who want a more energy-efficient home.

Staying informed and prepared

While the discussions regarding EPC regulations continue, it’s essential for you to stay informed and prepare for potential changes. Consider reviewing your properties for energy efficient opportunities, making improvements where feasible. This could be an excellent selling point to attract eco conscious tenants. Stay updated on any changes in regulations, as they may impact your obligations and opportunities. Be prepared for potential market shifts.

A general election could see EPC regulations make a potential return, so keeping your energy efficiency at a high level could set you apart in a competitive rental market.

For more information, contact us today and we can support you and discuss the options available to you.

Fixed rate mortgage term ending: what should I do next?

As your fixed rate mortgage term approaches its end, it’s essential to carefully consider your next steps. This critical moment presents an excellent opportunity to reassess your financial situation and evaluate your circumstances.

Review your mortgage options

Before your mortgage comes to an end, it’s crucial to explore your options. It’s important that you start planning your mortgage options at least six months before the end of the fixed rate period. Consult with your lender or mortgage adviser to determine which option suits your current financial goals and circumstances.

Assess your finances

This is the ideal time to take a closer look at your overall financial picture. Consider factors such as your income, expenses, outstanding debts, and any major life events, such as retirement or sending children to university. Ensure that your mortgage decision aligns with your long term financial objectives.

Insurance coverage

While reviewing your mortgage, don’t forget to assess your insurance needs. Homeowners should have adequate insurance coverage to protect their property and assets. Check your buildings and contents insurance to make sure it is up to date and sufficient to cover potential risks. You may also want to explore life insurance options to provide financial security for your loved ones in case of unexpected events.

Seek professional advice

Mortgage and insurance matters can be complex, and regulations may change over time. Therefore, it’s wise to seek advice from financial professionals. They can help you navigate your options and ensure you make informed decisions tailored to your unique circumstances.

Plan for the future

As your fixed rate mortgage term approaches its end, it’s an opportune moment to plan for your financial future. Consider setting new financial goals, such as building a retirement fund or investing in additional properties. Having a well-thought-out financial plan can help you make the most out of your home and insurance.

When your fixed rate mortgage term is nearing its end, it’s a pivotal moment to review your financial circumstances, evaluate your insurance coverage, and make informed decisions about your next steps. Seek professional guidance, explore your options, and use this opportunity to secure your financial future while protecting your most significant asset – your home.

For more information, contact us today and we can support you and discuss the options available to you.

High inflation: how does it affect me?

As inflation remains high, it’s the perfect time to take a closer look at how it could impact you. Whether you are behind on payments, looking to stretch your finances or coming to the end of your mortgage term, there are options available to help you.

What is inflation?

Put simply, inflation is the increase in price over time, acting as a measure of value of a currency. Tracked by several indicators, such as the Consumer Price Index (CPI) which tracks the average cost of everyday items, inflation is well above the Bank of England target of 2%, a target which has been in place since 2012.

Soaring food and energy bills have driven inflation, with oil and gas demand increasing as a result of Covid and the war between Ukraine and Russia.

How does it affect me and my mortgage?

To combat high inflation, the Bank of England raise interest rates to encourage saving. This makes borrowing more expensive and higher monthly payments for those with mortgages.

If you are on a variable rate mortgage, this level of inflation and high interest rates will be increasing your monthly payments, with your cash no longer stretching as far as it previously had. However, many homeowners are on fixed-rate mortgages. As a result, monthly payments will not change for the duration of that mortgage product.

Is your fixed-rate mortgage product coming to an end? It’s important to remain cautious around interest rates, even if they do start to come down. Variations in rates can make it hard to navigate the complexities of the mortgage market. It’s important that you start planning your mortgage options at least six months before the end of the fixed rate period.

Consulting with your mortgage adviser to determine which option suits your current financial goals and circumstances, can enable you to make informed decisions during these challenging times.

For more information, contact us today and we can support you and discuss the options available to you.

What does the mortgage charter mean for you?

The Mortgage Charter is a new set of rules that helps people when they’re trying to get a mortgage to buy a house, it’s like a guide that mortgage lenders have to follow. So what’s the purpose of the Mortgage Charter and how does it impact you?

What is The Mortgage Charter?

The goal of the Mortgage Charter is to make things easier and fairer for customers who want to buy a home. It makes mortgages less confusing, stops lenders from giving out risky loans, and makes sure customers are treated fairly. It’s all about helping people achieve their dream of owning a home without any unnecessary worries.

How does it impact me?

One important thing the Mortgage Charter does is make sure that mortgage lenders give clear and easy-to-understand information to customers. This means that when you want to get a mortgage, the lender must explain everything about the mortgage in a way that’s not confusing. This helps you understand what you’re getting into and how much it will cost you.

Another good thing about the Mortgage Charter is that it stops lenders from giving out mortgages that might be too expensive for the customers. Lenders must check if you can really afford to pay back the mortgage before they give it to you. This helps make sure you don’t end up owing more money than you can handle.

The Mortgage Charter also makes lenders more responsible for what they do. If something goes wrong or you’re not happy with the mortgage, there are better ways to complain and get things fixed. This makes sure that mortgage lenders treat customers fairly and don’t take advantage of them.

Summary

It gives you clear information, so you know what you’re getting into when you want to buy a house. It also makes sure that the mortgage you get is something you can really afford, so you don’t run into money problems later on. And if there are any issues, the Mortgage Charter makes it easier for you to get help and sort things out.

If your circumstances change or you are experiencing financial difficulties, please contact us today and we will be able to provide you with help and support alongside your mortgage lender.

Added value benefits: skip the GP queue

With unprecedented waiting times and difficulty accessing services, many people would welcome an alternative way of speaking to a GP in the current environment. A significant number of insurers now include access to private GP services within the policies they sell, so being aware of who offers what could help you skip the queue and speak to a GP sooner rather than later.

Skipping the queue

Insurance providers can collaborate with established and reputable GPs, creating a preferred partner network. This arrangement allows you to access GP services more swiftly than those outside the network.

By negotiating priority scheduling agreements with GPs, insurance companies can ensure their customers receive advanced service, minimising delays and streamlining the process. You will need a policy with an insurer offering these services to be able to access these benefits.

To help customers get the most out of these added value benefits, insurance providers establish dedicated support teams to assist them.

These teams can provide guidance, gather necessary documentation, and facilitate communication with GPs, reducing administrative burdens for customers.

How often can I use it?

It’s not uncommon to require the advice of a GP multiple times throughout, and where the service is made available to family members, they may have the need to call on the service several times.

Most providers offer unlimited access to a certain number of appointments per year, although there are a few providers with restricted access.

Most insurers include GP services alongside a package of other benefits, usually from a third-party provider. These services are not written into the core policy contract and could therefore be withdrawn.

For more information, contact us today and we can support you and discuss the options available to you.

How to grow your buy-to-let portfolio

Investing in buy-to-let properties can be a rewarding venture, providing a consistent income stream and the potential for long-term capital appreciation. However, growing your buy-to-let portfolio requires careful planning, market awareness, and strategic decision-making.

Here are seven essential tips to help you expand your buy-to-let portfolio successfully:

1.       Research the market:

Thorough market research is the foundation of a successful buy-to-let portfolio. Stay updated on property trends, rental yields, and demand in different regions. Understanding local property market dynamics will help you identify high-potential areas for investment.

2.       Diversification:

Consider diversifying your portfolio by investing in different types of properties. While residential properties are a common choice, don’t overlook commercial spaces or student accommodations. Diversification may reduce the spread of risk and enhance your chances of stable rental income.

3.       Financial planning:

Develop a clear financial plan before expanding your portfolio. Calculate the costs of purchasing, maintaining, and managing each property, including potential renovations or repairs. Ensure you have a robust budget to cover all expenses and potential vacancies.

4.       Sourcing properties:

Attend property auctions and explore online platforms to find the best deals. Off-market properties can sometimes offer more value for money. Engaging with property sourcing companies or experts in the field can also help you identify suitable investment opportunities.

5.       Property management:

Efficient property management is crucial to maintaining tenant satisfaction and minimising vacancies. Consider hiring a reliable property management company to handle day-to day responsibilities such as maintenance and rent collection.

6.       Add value:

Look for properties with potential for value enhancement through renovations or improvements. Adding modern features, upgrading kitchens and bathrooms, or optimising the property’s energy efficiency can attract higher-quality tenants and increase rental income.

7.       Stay compliant:

There are many strict regulations governing the buy-to-let sector, including safety standards and tenancy agreements. Staying compliant with these regulations is vital to avoid legal issues and protect your investment.

Growing a successful buy-to-let portfolio requires a combination of careful planning, thorough research, and effective management. By diversifying your investments, focusing on value addition, and staying informed about market trends, you can give yourself the best chance to position yourself for long-term success. Building a substantial portfolio takes time, dedication, and a strategic approach. And as with any investment there is risk which you’ll need to assess.

For more information, contact us today and we can support you and discuss the options available to you.

Holiday lets: are they worth it?

If you’ve ever considered investing in a second property, you may have already thought about holiday lets. With the popularity of staycations on the rise, now could be a better time than ever to get into the game.

The ability to make some extra cash while also maintaining the possibility of enjoying the property yourself is an attractive prospect for many.

Generally, a holiday let is a property that is let out to tourists for short periods of time as accommodation for their trips. Whether you let out the property for a weekend or a month – holiday lets can command a much higher price than a standard buy to let. As long as the property is available to holidaymakers for a minimum of 210 days of the year, you are free to use it yourself for the remainder of the 12-month period. Shorter term lets can offer an easier role as a landlord too – as you’re not responsible for maintaining a tenant’s primary home.

Some recent predictions suggest that the appetite for staycations will continue to rise post-pandemic after regulations caused a surge in people choosing to holiday domestically. This trend has led to investors looking to make holiday lets a lucrative safe haven for their money. At peak times, some holiday lets in popular tourist destinations can earn as much in a week as a standard buy to let does in a month. Although holiday lets in popular destinations can be more expensive to purchase initially, the return on investment is typically more than a buy to let.

As long as your property meets the furnished holiday let criteria, holiday lets are eligible for full mortgage interest tax relief. As holiday lets are officially categorised as businesses, there’s no limit on the mortgage interest amount incurred that you’re able to offset against your profits. This can be a great way for taxpayers on a higher rate to reduce their income tax bill. Holiday lets are also subject to business rates as opposed to council tax, while there’s also a possibility you’ll be able to claim 100% relief on business rates should your property have a rateable value of less than £12,000.

While the primary reason for moving into the world of holiday lets is to generate income, they also offer the chance for landlords to enjoy them as well. Unlike a standard buy to let, landlords are able to utilise their properties for a certain period throughout the year – creating a happy medium between a second income and a second home.

If you’d like to discuss the options available to you, contact us today.

Home improvements: Garage, loft and cellar conversions

Garage, loft, and cellar conversions are popular home improvement projects that can significantly enhance a property’s value. These transformations not only maximise the existing space but also satisfy the ever-growing demand for multi-purpose living areas.

Increased Living Space

One of the most apparent benefits of these conversions is the addition of valuable living space. With property prices high, making the most of every square foot is essential. Converting garages, lofts, or cellars into usable spaces, such as bedrooms, home offices, or entertainment areas, can significantly boost a property’s appeal and value.

Adaptability to Changing Needs

As families grow or lifestyles change, the demand for adaptable living space becomes crucial. Conversions offer flexibility to create rooms tailored to the homeowner’s specific requirements. A loft turned into an extra bedroom, or a cellar transformed into a playroom can cater to varying needs, attracting potential buyers with diverse preferences.

Energy Efficiency

Many garage, loft, and cellar conversions involve upgrading insulation and implementing energy-efficient features, aligning with the increasing focus on sustainable housing. Homebuyers are often drawn to properties with lower running costs, making energyefficient conversions more appealing and potentially increasing the property’s overall value, as well as improving the EPC rating.

Enhanced Aesthetics and Functionality

Conversions offer the opportunity to create bespoke spaces with unique designs and features. A well-designed conversion can elevate a property’s aesthetics and functionality, making it stand out in the competitive housing market. In prime urban areas, where space is at a premium, a well-executed conversion can be a key selling point, leading to higher demand and increased house value.

Remortgage to fund your conversion

There are a variety of ways you can fund these projects, with remortgaging being just one of these options.

For more information, contact us today and we can support you and discuss the options available to you.

100% Mortgages: How can they help me?

A 100% mortgage, also known as a zero-deposit mortgage, is a loan that allows first-time buyers to borrow the full purchase price of a property without having a deposit.

For first-time buyers, a 100% mortgage can be an appealing option as it allows you to step onto the property ladder sooner, without having to build up a large deposit. It can help individuals or couples who may be struggling to save a sizeable amount for a down payment, while also covering other expenses linked with buying a home, such as legal fees and moving costs.

What about my finances?

With a 100% mortgage, first time buyers could face higher interest rates compared to mortgages with a deposit. Lenders view these loans as higher risk as there is no initial equity, and as a result, they may charge a higher interest rate to balance this risk.

Furthermore, as a first time buyer, it is important to consider the long-term affordability of a 100% mortgage. Without a deposit, the loan amount will be larger, resulting in higher monthly repayments. It is essential to carefully assess your personal finances, considering ongoing mortgage payments, other living expenses, and potential interest rate changes.

Government-backed schemes

In recent years, some initiatives, and government-backed schemes, such as Help to Buy, have been introduced to support first-time buyers. These programs aim to assist buyers by providing equity loans or shared ownership options, reducing the burden of a large deposit, or enabling buyers to purchase a portion of the property.

Help to Buy closed to new applicants towards the end of 2022, although there could be a chance of it making a return with Wales extending the scheme to 2025. It is uncertain if the Help to Buy scheme will return, but there are still plenty of options available to first time buyers.

It is essential for prospective buyers to carefully consider the long-term financial implications, including higher interest rates and monthly repayments, before opting for this type of mortgage.

Exploring other government schemes and saving for a deposit may still be a wise approach to secure the best financial outcome when purchasing a home.

For more information, contact your adviser who can support you and discuss the options available to you.

Property Chain: Reducing the impact it has on you

Buying and selling property can be a complex and stressful process. One of the most challenging parts of buying or selling a property is the property chain.

A property chain is where a group of home buyers and sellers are dependent on one another when purchasing a house – for example the owner(s) of the house you want to buy might need to find a house to buy themselves.

It’s important to understand the challenges within a property chain, helping prepare yourself to reduce the risks.

Understanding the property chain

The property chain can cause a lot of issues for buyers and sellers, and it is essential to understand these issues to navigate the buying and selling process successfully. One of the most significant issues with a property chain is that it can cause delays. If one person encounters a problem, such as a surveyor finding an issue with a property, it can cause a domino effect that delays the entire chain.

Another issue with a property chain is that it can be fragile. If one person pulls out of the chain, it can cause the entire chain to collapse, which can be incredibly frustrating for everyone involved. This can be especially problematic if you are close to completing the purchase of your new home and have already made plans to move in.

What can I do to reduce the impact?

Fortunately, there are several things that you can do to reduce the impact if these issues arise. Firstly, it is important to work with an experienced mortgage adviser who can help you navigate the buying and selling process. Providing you with guidance on how to reduce the risk of delays and help you find properties less likely to be involved in a long chain.

Another thing that you can do is to be as prepared as possible. Having your mortgage in place, and all your paperwork ready to go can help to speed up the buying process and reduce the risk of delays. Good communication between all parties is also a must and helps to reduce the risk of misunderstanding.

The property chain is a necessary part of the buying and selling process, but it can be complex and cause a lot of issues. By doing all you can to prepare as much as possible using the tips above can help make the buying and selling process as smooth as possible.

For more information, contact us today and we can support you and discuss the options available to you.

Life Cover: Always plan for the future

Life is unpredictable, but preparing for the unexpected can provide peace of mind and financial security for you and your loved ones. Whether you are considering life cover or reevaluating your finances, it’s always important to plan for the future.

Cost-of-living pressure

With inflation remaining high, and continuing to affect household budgets, dealing with price rises could be difficult especially for those on fixed incomes.

While not all types of insurance are indispensable, it’s important to think carefully and consider your future financial security.

Why is life insurance important?

If you were to have no life insurance in place what position could this leave your family in, should the unthinkable happen? It’s more important than ever to have protection. The policy pay out can cover expenses such as funeral costs, outstanding debts and can provide ongoing financial support for dependants, after the loss of a primary income earner.

Always plan for the future

Planning for the future goes beyond life cover. It requires long-term goals and taking the right steps to achieve them. By taking steps to prepare for the unexpected you can provide financial security for you and your loved ones, giving peace of mind knowing those closest to you will be taken care of if you’re not there to provide for them.

Although it may be challenging to afford insurance, with the uncertainties of life, it’s always important to plan ahead and provide a safety net.

It’s essential to act now, if you can, as you could face higher premiums when starting a life policy at a later date.

Advisers are there to provide guidance on the most suitable protection plans for you. Updating your life cover to reflect changes in circumstances will also give you the most appropriate level of cover.

For more information, contact your adviser who can support you and discuss the options available to you.

If you’d like to discuss the options available to you, contact us today.

First time landlords: The next generation

Around 140,000 landlords retired in 2022, predominantly these were older investors, who were part of the early buy-to-let mortgages launched in 1996. They leave behind a gap which is at risk of not being filled. What does this mean for the next generation of landlords?

Currently, there are around one million landlords above the age of 65, with an average of 96,000 landlords turning 65 each year in the UK. With many retiring, there is an opportunity for new landlords to enter the buy-to-let market. Being a first-time landlord in the UK can seem like a daunting task, but there are many positives to owning a rental property:

1. Steady Income Stream

As a landlord, you’ll receive monthly rental income from your tenants, which can provide you with a reliable source of income. This income can be particularly helpful if you’re looking to supplement your primary income or build wealth over time.

2. Property Appreciation

Property values have been steadily increasing in recent years, and this trend is expected to continue. As a landlord, you’ll be able to benefit by potentially selling your property for a profit down the line. Additionally, property appreciation can increase the value of your rental property and allow you to charge higher rent prices.

3. Control over your Investment

Owning a rental property can give you more control over your investment compared to other options, such as stocks or bonds. You can make decisions about how to manage your property, including setting rent prices, selecting tenants, and developing the property.

From generating a steady income stream to enjoying potential property appreciation, owning a rental property can be a smart investment decision.

If you are in a strong financial position to afford or consider entering the buy-to-let market, becoming a landlord could be a successful investment to make. However, there are risks involved and it’s important to understand the challenges you may face.

For more information, contact us today and we can support you with your buy-to-let mortgage.

Income: Your most valuable asset

Income is undoubtedly your most valuable asset, and protecting it is crucial for both present and future financial security. It’s the source of paying for daily expenses, investing for the future, and building a secure financial foundation.

The importance of income protection

Income protection is vital for future financial security. Unpredictable events such as illness, disability, or unexpected accidents can happen at any time and without income protection, they can significantly impact your financial situation. Income protection helps ensure that you can meet financial obligations and maintain your lifestyle, even in the absence of a regular income source.

Income protection insurance provides a regular income stream in case of unexpected events that lead to a loss of income. This type of insurance can cover a range of events, including accidents, illnesses, and disabilities that prevent an individual from working.

Financial security & peace of mind

Creating an emergency fund is also another essential step to protect income, ensuring future financial security. Typically, an emergency fund contains three to six months of living expenses, providing a cushion during challenging times. Having an emergency fund in place can help prevent the use of credit cards or loans during unexpected events, protecting your credit scores and financial well-being. Having a ‘plan b’ in place can offer peace of mind, knowing that you are financially protected in case you are unable to work due to an injury, illness or disability.

When should I start?

It’s essential to start planning early for income protection. By planning early, you can take advantage to build a secure financial foundation. The earlier you start planning for income protection, the more time you have to build a safety net that can build protection against unexpected events.

Starting early and reviewing your income protection can help you build a secure foundation, acting as a safety net against unexpected events and ensuring a more secure financial future. For more information, contact us today and we can support you and provide the best outcome for your situation.

Equity release: Lifetime mortgages

Equity release has become increasingly popular in recent years. It allows homeowners, aged 55 and older, to access the equity tied up in their property without having to sell it. This can be done in several ways, but the most common ones are through a lifetime mortgage or a home reversion plan.

What’s the difference?

A lifetime mortgage is a loan secured against your home that allows you to borrow a lump sum or receive regular payments. The loan is repaid from the sale of your property when you pass away or move into long-term care. On the other hand, a home reversion plan involves selling a portion of your property in exchange for a lump sum or regular payments, while retaining the right to live in your home rent-free for the rest of your life. Although our advisers are unable to advise on home reversion plans, they are there to support you on lifetime mortgages.

How will it impact my family?

While lifetime mortgages can provide a welcome source of income for retirees, who may have limited pension savings, it is important to consider its impact on your family. Here are some things to keep in mind:

Financial support to family: Lifetime mortgages can enable you to provide financial support to your family, whether it’s helping with university fees, paying for a wedding or gifting a deposit for a house purchase.

Inheritance: Lifetime mortgages can reduce the amount of inheritance you can leave to your loved ones. This is because the lifetime mortgage will need to be repaid from the sale of your property, which may leave less money for your beneficiaries.

No need to relocate: You can stay in your home while still accessing the equity tied up in the property. This means you don’t need to downsize or move to a different location to release cash.

Lifetime mortgages can be a useful tool for extra income, but it may not be right for everyone. It may affect your entitlement to state benefits and may reduce the value of your property. For more information, contact us today and we can support you and provide the best outcome for your situation.

How to get on the property ladder in 2023

Buying a property is a big decision, especially for first-time buyers. While it can be an exciting and rewarding experience, it can also be stressful and overwhelming. There are several tips and options available that can help you, as a first-time buyer, get onto the property ladder.

1. Save for a deposit: The larger the deposit you can put down, the better the mortgage deal you will be able to secure. It’s recommended to aim for a deposit of at least 10% of the property value, although some lenders may require more.

2. Check your credit score: Your credit score will play a big role in whether or not you can get approved for a mortgage. Check your credit score and take steps to improve it if necessary, such as paying off any outstanding debts.

3. Get a mortgage in principle: Before you start looking for properties, get a mortgage in principle from a lender. This will give you an idea of how much you can borrow and what your monthly repayments are likely to be.

4. Consider government schemes: Look into the various government schemes available to first-time buyers, such as Lifetime ISA or Shared Ownership.

5. Be realistic: It’s important to be realistic about what you can afford. Make a budget and factor in all of the costs associated with buying and owning a property, such as mortgage repayments, insurance, utilities, and maintenance.

6. Don’t settle: Don’t just settle for the first property you see. Shop around, comparing prices, locations, and property types to find the best deal for your budget and needs.

7. Consider a fixer-upper: Properties that require some work or renovation may be more affordable than move-in ready homes. Consider the cost and time involved in renovating a property before making an offer.

8. Shared ownership: A scheme that allows first-time buyers to purchase a portion of a property and pay rent on the remaining share. It can make property ownership more affordable, easier to qualify for, providing flexibility for those who may need it.

Following these tips could increase your chances of getting on the property ladder, as a first-time buyer. For more information, contact us today and we can support you and provide the best outcome for your situation.

Reviewing your Mortgage Product & Options to Refinance

Remortgaging and product transfers are two popular options for homeowners looking to make changes to their mortgage. While both can help release funds in your home, there are key differences between the two.

What are the differences?

Remortgaging involves taking out a new mortgage on your existing property, replacing your current mortgage with a new one from a different lender. This can be beneficial if you are looking to lower monthly repayments, release equity from your home, or switch to a more favourable interest rate. Product transfers, on the other hand, involve switching from one mortgage product offered by the same lender to another.

If you are refinancing or releasing funds, with a current mortgage lender to borrow more, this would be classed as a type of product transfer known as a further advance. This can also lead to lower monthly repayments, but the key difference is that you don’t have to apply for a new mortgage. Both remortgaging and a further advance can help you release funds, but the amount you can release will depend on several factors, including the value of your property and the amount of equity you have built up.

What about my finances?

Before deciding to remortgage or transfer your mortgage product, it is important to consider your financial situation and long-term goals. For example, if you have a low credit score, you may have trouble finding a new mortgage with favourable terms. Additionally, if you have a variable interest rate, switching to a fixed rate can provide more stability, but may also come with higher monthly repayments.

Refinancing for home improvements

Refinancing, which includes both remortgaging and a further advance, can be a great option when looking to make home improvements. By releasing funds from your home, you can use the money to make upgrades, such as adding a new bathroom, extending your kitchen, or installing a new heating system. This can increase the value of your property, making your home more comfortable and energy efficient. Although remortgaging and further advances can help you release funds from your home for improvements, it’s important to consider your financial situation and long-term goals before deciding. For more information, contact us today and we can support you and provide the best outcome for your situation.

How to get ready to sell in 2023

Getting your house ready to sell requires preparation and effort, but it can significantly increase the chances of a successful sale. Here are some tips to help you get your house in the best condition before selling:

1. Declutter and depersonalise: Remove personal items such as family photos and memorabilia, and clear away clutter from countertops and shelves. This will allow potential buyers to see the true potential of the space and imagine themselves living in the property.

2. Clean and repair: Give your house a thorough cleaning, including the carpets, windows, and bathrooms. Repair any broken items, such as leaky faucets, torn screens, and damaged flooring. These small details can make a big difference in the overall appearance of your home.

3. Paint and update: Fresh paint can brighten up a property and make it look more appealing to a wide range of buyers. Updating features such as light switches, door handles and taps, can also make a difference.

4. Highlight the best features: Demonstrating the best features of your home, such as a beautiful garden, spacious kitchen, or fireplace. These are selling points that could attract potential buyers.

5. Present the rooms: Furnish each room with purpose. Creating a space that feels inviting and functional can help potential buyers visualise themselves living in the property.

6. Lighting: Make sure that every room has enough lighting, including natural light and artificial light to enhance the look and feel of a room.

7. Professional photographs: Hire a professional photographer to take high-quality photographs of your home. These will be the first thing potential buyers see when searching for a new home, so it is important to make a good first impression.

Preparing your home for sale requires effort, but it can pay off in the form of a higher price and a quicker sale. Following these tips can make your home more attractive to potential buyers and increase your chances of success. For more information, contact us today and we can support you and provide the best outcome for your situation.

Buy-To-Let Mortgages in 2023

Demand for rental accommodation in the UK was up by 23% in 2022, as rents hit a record high. The new year could see a continued rise in rental demand and prices, is now the time to undertake a new challenge?

What is a buy-to-let mortgage?

Buy-to-let mortgages are designed to help you buy a property that you intend on renting out to others, instead of living in the property yourself. The amount you can borrow usually depends on the rental income you expect to earn from tenants, although lenders may consider other forms of income dependent on your situation.

Differences between buy-to-let and residential mortgages

Buy-to-let is specifically for someone else to live in the residential property. A residential mortgage is solely for you to live in the property.

Buy-to-let mortgage payments are usually interest only, with the total loan fee due at the end of your mortgage term, often serviced by selling the property. Residential mortgages are typically on a repayment scheme within a term, eventually owning the property at the end of the term.

How much will it cost?

The cost depends on several factors. Typically, you will need a higher deposit for a buy-to-let mortgage, which is usually around 25% of the property value. The bigger the deposit you can put down, the smaller the mortgage you’ll need to borrow. Interest will only be paid back each month, not the full capital amount.

Although your monthly payments are cheaper than a residential mortgage, you need to consider how you will repay the full cost of the mortgage at the end of your loan term.

Whether you are new to the buy-to-let market or have years of experience, there are options out there for you.

For more information, contact us today and we can support you and provide the best outcome for your situation.