Category: Mortgage Advice Belfast

Increase in remortgage activity.

There was a 12% rise in remortgage instructions in February according to the LMS.

The most popular main aim when remortgaging was to lower monthly payments, cited by 28% of borrowers. The survey by the conveyancing firm says 42% of borrowers increased their loan sizes in February. Popular reasons for increasing mortgage loans was home improvements and to consolidate more expensive debts to a cheaper mortgage rate.

46% of those who remortgaged took out a five-year fixed-rate product, which was the most popular product last month. 45% opted for 2 year fixed rate products. Borrowers are unconvinced about pending rate reductions despite mortgage lenders factoring this in with lower interest rates.

Get in touch with a local Mortgage Advisor for the best remortgage solutions

Go back

Your message has been sent

Barclays Cuts Mortgage Rates: New Offers Below 4%

Barclays has announced it will be reducing rates across its residential purchase and remortgage range, with some product mortgage rates below 4%.

The residential purchase only green home five-year fixed, with a product fee of £899 will be lowered from 4.13% to 3.99%.

The residential purchase remortgage only premier two-year fixed rate with a fee of £999 at 60% LTV has been reduced from 4.46% to 4.20%.

Barclays will also introduce a residential purchase only five-year fixed with a rate of 3.99%. This comes with a product fee of £899 at 60% LTV, minimum loan is £5k and maximum loan £2m.

The mortgage rate changes at Barclays will come into effect from 13 February.

Get in touch with a local Mortgage Broker

Go back

Your message has been sent

House prices not affordable except in Northern Ireland

The average cost of a home in England was £298,000 in the 12 months to the end of March last year, equal to 8.6 years of average household income, the latest official data shows.

The Office for National Statistics (ONS) calculates this affordability level on an annual disposable household income of £35,000 during the period. An acceptable level of house price affordability is at five years of household disposable income.

It adds that since 1999 “house prices have increased twice as quickly as household incomes in England; house prices in Wales and Scotland have also increased more rapidly than incomes, but the differences are more moderate”.

The department points out that average house price to disposable household income ratios were 5.8 years in Wales – based on homes priced at £205,000 and £35,000 average incomes.

In Scotland, the ratio is 5.6 years – based on homes priced at £185,000 and £33,000 average incomes.

While in Northern Ireland the ratio is 5 years — based on homes priced at £160,000 and £32,000 average incomes.

The ONS says for low-income households, average-priced homes in all four countries have been “unaffordable” since 1999, when it began collecting data in this series.

It says only the 10% of highest-income households in England could afford an average-priced home with fewer than five years of household income in the financial year to 2023.

This is in comparison to Northern Ireland where an average-priced home was affordable with an average household income.

Contact us to discuss your mortgage options

First time buyer rates still low amid turbulence

Rightmove has released its weekly mortgage report.

The current average asking price of a typical first time buyer property is £225,340.

For someone taking out an average five-year fixed, 85% LTV mortgage, the average monthly mortgage repayment on this type of home is now £1,104 per month if repaying over 25 years, compared with £1,138 per month a year ago (when the average first-time buyer property asking price was £223,426).

The average rate for a 95% loan to value mortgage fixed for 2 years is 5.65%. The larger deposit a buyer can put towards the purchase the lower mortgage rate that can be sourced.

For example the average 2 year fixed rate for a buyer with a 25% deposit is 4.85%. The average 5 year fixed rate is 4.74%.

To discuss your mortgage options get in touch with a local broker through Best Mortgage Services.

Contact Us

Things to consider when choosing a mortgage.

With rising household bills, switching your mortgage could be one way to save some money. As competition hots up between lenders there are plenty of low rates to choose from. Many of the deals are below 1 per cent.

Here are top tips to choosing a mortgage.

Know your budget. List all you’re your expenses and see what surplus is left over.

Decide which mortgage is right for you. Many people prefer the security of a fixed rate. With variable rates your mortgage payment will change as interest rates change.

Look at the whole deal. Don’t just look at the interest rate. Consider application fees, arrangement fees, early repayment charges.

Talk to a Mortgage Broker. Mortgage Advisors continuously search mortgage deals and can advise on the best option for your circumstances. Some of the best deals are only available through mortgage brokers. Get in touch with a local mortgage broker.

Get your paperwork ready. Have at least 3 months bank statements and payslips for proof of income. If you are self-employed most lenders will require at least 2 years accounts. Proof of identity and proof of current address is required.

Check your credit file. Get a copy of your credit report to check that there is no adverse credit registered. Some lenders will decline an application based on the information on your credit file.

Job consistency. Lenders like to see you have been in your current job for at least 3 to 6 months and will need confirmation that the role is permanent.

The larger the deposit the better. Lenders reserve their best rates for those with larger deposits. The more money you can put towards the purchase, the greater choice of mortgages you will have.

Minimise your debts. Try to reduce any debts that you have before applying for a mortgage. This demonstrates to the lender that you can manage money effectively. It could also mean that you will qualify for a larger mortgage when it comes to the lender’s affordability calculations.

Lifetime Fixed rate mortgages

Not one but two mortgage companies will start offering lifetime fixed-rate mortgages in 2021, in a move that could fundamentally change how we finance house purchases.

The longer you fix, the greater your financial stability – but usually you pay extra for that peace of mind. Short term fixes are usually cheaper, but when the fixed rate ends there is a risk that interest rates and mortgage rates will be higher and more expensive.

But the longest most people will fix for is five years, although a few mortgage deals let you fix for as long as 10. Long term fixes may not have taken off because they usually carried hefty early repayment charges or exit fees.

Long term fixes are a welcome solution to first time buyers offering security and certainty to budget finances. The interest rate will certainly be higher than 2 or 5 year fixed rates in the short term but over the course of a 25 year mortgage they could work out better value in the long term. Especially if interest rates nudge higher every 2 or 3 years.

House prices rose by 8.5 per cent in 2020, according to the Office for National Statistics, and the average property now costs £252,000. For such a large price, fluctuations in interest rates can be intimidating for buyers who face the prospect of decades paying it back.

Time will tell if more mortgage companies offer long term fixed rate solutions. Talk to a local mortgage broker to discuss your mortgage options.

Essential Mortgage Application Checklist

If you are planning to apply for a mortgage it’s a good idea to get ahead and try to sort out the paperwork you are likely to need.
Whilst what you will need will depend on your circumstances and the lender in question, this checklist should give you a starting point.

Check Your Credit Report

Get a copy of your credit file to ensure that it is accurate and if there is any adverse credit registered on it. Where possible you want to be registered on the Electoral Roll at your main address. Your address history needs to be accurate.
Avoid overdrafts and definitely don’t take out payday loans as this raises alarm bells to lenders assessing your mortgage application.

Ensure your ID and address documents are up to date

You will need to provide proof of ID or address to satisfy money laundering requirements it must be the original document, not a copy, and be current and valid. A passport or driving license is usually used for proof of Identity. For proof of address a utility bill, bank statement, rates bill may be used. The document must be dated within the last 3 months.

Make sure you can show the source of the deposit money

Lenders will want to see where your deposit is coming from, whether it’s from your savings or a gift. Savings will need to be evidenced with bank statements and recent large lump sum transfers will have to be explained.
Gifted deposits will usually require a letter from the person giving you the money ( for example parents) but the format will vary depending on the lender. Lenders may require this letter witnessed by a solicitor.
If you are raising the money on another property it may make sense to start this process earlier to ensure you have the money available when needed.

Have all your income proof readily available

Latest 3 months payslips
Latest 3 months bank statements (the account that your salary is paid into)
Latest P60 (especially if you have bonus income)
Last 2 or 3 years SA302s or signed accounts (if you are self employed).

Details of other credit balances

For all other credit card, personal loan and other mortgage balances the lender will require the start date of the loan, monthly payment and current balance outstanding. The information should match the info on your credit report.

Request a call back

Go back

Your message has been sent

Essential Questions for Your Mortgage Adviser

Questions to ask your Mortgage Adviser? Taking out a mortgage is likely to be the biggest debt you will have in your lifetime. Choosing a mortgage is not a decision to be taken lightly.

To get in touch with a mortgage adviser in your area please contact us.

Get in touch with a mortgage professional

Questions to ask your Mortgage Adviser

  1.  How do you charge your clients? Get this clear from the outset. Some mortgage advisers charge a fee upfront or on completion, others are paid commission from the lenders. Some mortgage advisers charge a combination of a fee and commission.
  2.  Are you independent and able to cover the entire mortgage market?  Our mortgage brokers all cover the whole of the market.
  3. How long will the mortgage process take? This will vary from person to person and your adviser should be able to give a rough estimate. Other factors have an impact here for example if you are waiting to sell your own house to release deposit funds.
  4. What deposit should I have? Your mortgage broker will be able to provide quotations based on various levels of deposit. Generally the higher deposit you put down then a lower interest rate can be obtained.
  5. What qualifications do you have? All our mortgage brokers are CeMap certified. CeMap is the certificate of mortgage advice and practise.
  6. Can you give me a breakdown of all the mortgage costs? Make sure your mortgage adviser gives you a breakdown of all the costs and fees. The last thing you want is unexpected fees further down the line.
  7. Can you provide advice on other areas of finance and insurance? Many mortgage brokers will be able to offer guidance on home insurance, life insurance, income protection and pension planning.
  8. Will you review my mortgage in the future? Building a relationship with your mortgage broker is beneficial as they will monitor your mortgage payments and advise when savings can be made. This will save thousands over the lifetime of the mortgage.

Get in touch with a Mortgage Advisor

Mortgage Advice. Where to go for the best mortgage deal.

Mortgage advice is essential. Choosing a mortgage is one of the biggest financial decisions you are likely to make. There are thousands of mortgage deals out there, so how do you choose the right one for you? From the many different providers to the extensive range of products and rates available sourcing a mortgage can be very complex.

Mortgage Advice

Lenders and brokers must offer advice by recommending the most suitable mortgage for you. A Mortgage Adviser will assess the level of mortgage repayments you can afford, by taking into account your income unsecured debt repayments and various outgoings.

If you choose your own mortgage without advice it’s called an “execution-only” mortgage application. Getting mortgage advice rather than on an execution-only basis means that, if for some reason the mortgage turns out to be unsuitable for you later on, you’ll have more rights when you make a complaint.

If you don’t take advice you could end up:

  • with the wrong mortgage for your situation, which would be a costly mistake in the long run
  • being rejected by your chosen lender because you didn’t understand the mortgage criteria. Too many credit searches by multiple finance companies can have an adverse affect on your credit rating.

Talk to a mortgage advisor

A mortgage adviser, also known as an independent mortgage broker, is a specialist with in-depth knowledge of the market. They are not restricted to one Bank’s mortgage products.

Mortgage brokers might charge you for their service depending on the product you choose or the value of the mortgage. Others will be free to you but they’ll receive commission from the lender.

They should tell you up front how much you will pay for their services. You should also be told if an adviser is paid commission. Once your broker makes a product recommendation they must give you a mortgage illustration document usually called a KFI – Key features Illustration

All mortgage advisers must offer you advice when recommending the most suitable mortgage for you. This means you are protected and you can complain to the Financial Ombudsman should the advice be unsuitable which results in a financial loss.

using a Mortgage Broker

      • They help you take all the costs and features of the mortgage into account
      • They may have exclusive deals with lenders, not otherwise available
      • They’ check your finances to make sure the mortgage is affordable
      • They should only recommend a mortgage that is suitable for you
      • They will complete the paperwork for you, so your application should be dealt with faster
      • They are regulated by the FCA – Financial Conduct Authority
      • They offer appointments outside of normal working hours for your convenience.