Getting a mortgage

How can my kids get on the property ladder?

First time home buyers don’t have it easy these days. The Mortgage Advice Bureau says that the average age of a first-time buyer is now 37, which would make a standard 25-year mortgage take them to 62. 

So what’s the scenario for young people today? Watch our video to find out what some of the options are out there, and some tips for how improving their credit score can set them on the road to getting on the property ladder.

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Calling first time buyers and home improvers!

This coming weekend Experian’s experts are on the road at two home shows in different parts of the country, and we’re looking forward to meeting you.

First Time Buyer Home Show, Croydon, Sat 16 April  #FTBHomeShow
On Saturday 16th April we’ll be at the First Time Buyer Home Show (free entry!) at Fairfield Halls in Croydon, from 10am to 4pm, helping to show how improving and maintaining your credit report can put you in the best position to get a first mortgage.

At 3.30pm Jill O’Connor from Experian will be giving a seminar on how your credit report is made up, what you need to look out for and how you can go about improving your financial situation.

Experian research in December 2014* found that more than a quarter of people in the UK looking to buy their first home before 2016 – around 1.81 million people  – had missed credit repayments, defaulted accounts and CCJs currently listed on their credit report. Continue reading

Getting on the property ladder: how it has changed

Getting on the property ladder has changed over the last five decades, and it’s not nearly as easy to get a mortgage as it used to be.

The way we use money has changed a lot over the years. Watch the video to see how money has changed through the generations with three families we spoke with.

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Am I too old to get a mortgage?

Getting a mortgage past 65?One news story that attracted our attention in 2015 was the one in which a bank was penalised for age discrimination after withdrawing a mortgage approval for a married couple in their 40s, on the grounds that the husband would be over 65 when the deal ended.

The Financial Ombudsman Service ruled in the couple’s favour and ordered the bank to pay them £500 in compensation, saying that the bank had relied on “untested assumptions, stereotypes or generalisations in respect of age”.

Should we be given the chance to keep up mortgage payments past the age of 65? 
It’s arguable that being 65 today  – in terms of health, lifestyle, fitness and expectations – is not the same as being 65 twenty, certainly forty years ago. And 65 being the default retirement age has been phased out, and people can work as long as they choose to – employers are no longer allowed to discriminate against workers choosing to work beyond 65. Continue reading

Could the Help to Buy ISA help with property dreams?

what is help to buy ISA

The home ownership dream can seem just that for many of us – a dream. New mortgage affordability rules – where mortgage lenders require more current financial information as well as examining your ability to pay in the future – have made the home-buying process more complicated. Add to this, booming house prices and it means that many hopeful homeowners have to find larger deposits than before. 

According to the Nationwide House Price Index, the average UK property price in October 2015 was £196,807 – up from £173,678 in October 2013 (a rise of 13.3 per cent). On a mortgage that offers 90 per cent loan-to-value (LTV), this means finding a deposit of nearly £20,000, with estate agent and legal fees on top of that too.

On 1 December 2015, as trailed in the Chancellor’s March 2015 budget, the Help to Buy ISA will be launched, in which the government will make a contribution towards the deposit on a house purchase.

The scheme allows first-time or existing buyers to get onto, or move up, the housing ladder with as little as a 5 per cent deposit. Depending on your circumstances and the property you are trying to buy, such as a new build, the Help to Buy scheme can help you with an equity loan or mortgage guarantee.

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First Time Buyers: 5 tips to check your credit history

Could your credit history prevent you from getting a mortgage? Experian research has found that more than a quarter of people in the UK looking to buy their first home before 2016 –  around 1.81 million people  – have missed credit repayments, defaulted accounts and CCJs currently listed on their credit report*. And all of these could prevent them from securing a mortgage.

Managing credit accounts such as credit cards, mobile phone contracts and even some utility services can be important in order to build and maintain a good credit rating.

So if you’re looking to get on the housing ladder, how can understanding your credit history prepare you for a mortgage application?  Here are our 5 top tips.    Continue reading

First time buyers: How you can get on the property ladder

Guest blog post from Stephen Dwelley, Director, sharetobuy.com

Visit the London Home Show - 26 September, Queen Elizabeth II Conference Centre, Westminster, 10am-5pm

Visit the London Home Show – 26 September, Queen Elizabeth II Conference Centre, Westminster, 10am-5pm

There are many challenges faced by first time buyers trying to get on the housing ladder, particularly for those without the help of the Bank of Mum and Dad.

First time buyers should not lose hope, however, as there are now a wide range of affordable housing schemes to help people get onto the housing ladder and progress to a larger property. These include:

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9 tips for buying a home with a partner

Buying a home with your partner or friends can be a much needed boost to get on the property ladder – helping to raise a bigger deposit and making your dream that extra bit more affordable.

Checking your Experian Credit Report can also help you see if and how you are financially linked. It can also help you understand if you need a little work to tidy up your credit history before a joint mortgage application is made. Here are some key tips we’ve put together to help you, if that’s what you’re about to do.

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The cost of home improvements

It’s been said that we’re a nation of DIY-ers. Before the credit crunch, the property boom saw many people buying new places, doing them up and selling them on for a profit.

But in the years following the crash many were unable to sell, instead choosing to do up their homes and make them nicer places to live.

These days, we seem to occupy the middle ground. According to a 2014 survey by Lloyds Bank, 40 per cent of people undertake renovations to improve the look of their home, while 33 per cent do it to add value.

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Mortgages: do we feel less confident since the MMR?

Applying for a mortgage is rarely a straightforward process. In April 2014, the process was made even tougher with the introduction of the Mortgage Market Review (MMR), new rules on mortgage affordability. 

In fact, almost half (45%) of those who planned to buy a property since the introduction of the MMR last year have failed to do so, accorRising House Priceding to new research commissioned by Experian.

A quarter claim that the MMR has impacted their ability to buy a property, while a further third (37%) report that the changes have made them feel less in control of securing a mortgage. Continue reading