Getting a mortgage

A guide to remortgaging

Remortgaging is on the up! It now accounts for about a third of all home loans.

When you remortgage, you take out a new loan with either your existing lender or another lender. According to the Council of Mortgage Lenders (CML), there were 34,700 loans for remortgage in December 2016, worth a total £5.8bn – that’s an increase of 13% in volume and 14% in value – while Paragon reported they now account for 39% of all mortgages handled by advisers.

Remortgaging could help you free up money for something you really want, help you pay your mortgage off quicker by moving to a lower rate, or help you better manage your monthly household outgoings. TSB found that homeowners could save an average of £96 a month by remortgaging to a lower fixed rate deal.

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7 tips for moving in to your new home

You’ve sealed the deal, inked the contract and are about to move into your new home at last. But before you take a breather, there’s still plenty to do – some of it is the fun part (furnishings) and some of it is necessary administration tasks. Each of those can be done in a finance-friendly way though.

Here are our top tips for moving in to your new home, and how you could make the most of your finances.

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How to make mortgage lenders love you

How to get a mortgage

One of the first steps to getting a mortgage is to impress the lender with your credibility. So here are a few simple steps to financially prepare yourself to help you get the mortgage you want.

In 2014 the Financial Policy Committee (FPC) said that only 15% of all new mortgage lending offered by banks and building societies could be more than 4.5 times a person’s income. Currently, mortgages of more than 4.5 times the borrower’s income is around 10% of lending.

So, if you want to be in the 15% of high loan-to-income applications, you’ll probably need to have:

  • A good deposit
  • A steady income
  • Little debt
  • A good credit score

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Home improvement: can it pay off?

Is improving your home worth it

We’re a nation of DIY lovers, aren’t we? Home improvement can be a double winner, as not only can it make your house into a home, it could also make it a more profitable asset for you.

And a lot of us think that now. An amazing 91% of homeowners think their house value has increased since they bought it, and by an average of £33,125, according to recent research from Co-op Insurance.

The research also showed that homeowners believe that renovation and decorative works they’ve carried out has led to an average £14,900 increase in property value.

But doing your homework before starting, working out exactly how you’re going to pay for the improvements, is important too.

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7 tips for first time home buyers

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Buying your first home can seem at times like climbing a particularly steep hill - daunting, confusing and with several pitfalls along the way.  Prices are still rising, with the average UK first-time buyer home now costing £184,973, 7% up on that of a year ago1.

And finding the money for a deposit without help from the Bank Of Mum And Dad can be a real challenge – the typical first-time buyer deposit is now £33,222 - that’s 133% of an average salary1. The average first-time buyer borrowed 3.49 times their income, and the average first-time buyer loan was an estimated £136,0001.

But with a few simple steps to prepare yourself financially, and make lenders see you in a positive light, you could approach buying your first home with a lot more confidence.

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How could joint finances affect your credit rating?

Share a credit account? Then you share credit report information too.  Sharing finances can mean you’re more linked than you think, as lenders will often look at both of your credit reports when assessing your credit. 

If and when you apply for credit together, lenders will be able to see your partner’s financial information too and may use this when they make a decision about you when you next apply for credit. So we’ve put some tips to help you get up to speed with shared finances and credit.

Five top things you need to know about love and money

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  • Financial association means that your credit report can become linked to someone else’s through joint financial activity. This could be applying for a mortgage, opening a joint credit account, or in some cases even being on the same broadband or utility contract.

 

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  • Your credit report will only contain your financial information, but will show the name of anyone you share a financial connection with. If you share a credit application, each of you would see the other’s name in the section of your Experian Credit Report entitled ‘Financial Associations’.

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14 new Garden Villages to be built across the UK

Garden Villages to be builtWe now know where the 14 new ‘Garden Villages’  - new towns to help solve the housing crisis – will be. Their locations range from Cumbria to Cornwall.

Government ministers have backed plans for a brand new wave of ‘garden villages’ with between 1,500 and 10,000 new homes, in an effort to confront the growing lack of good housing stock.

Here’s where they are:

Long Marston (Stratford-on-Avon)
Oxfordshire Cotswold (west Oxfordshire)
Deenethorpe (east Northamptonshire)
Culm  (Devon)
Welborne (Hampshire)
West Carclaze (Cornwall)
Dunton Hills (Essex)
Spitalgate Heath (Lincolnshire)
Halsnead (Merseyside)
Longcross (Runnymede and Surrey Heath)
Bailrigg (Lancaster)
Infinity Garden Village (south Derbyshire)
St Cuthberts (near Carlisle)
North Cheshire (Cheshire)

Each village will include green spaces, good links to public transport and a wide mix of house prices, including affordable homes. Continue reading

How to make your dream home a reality

Britain has enjoyed a number of property booms over the past 20 years. And despite the fact that property prices have also tumbled on a number of occasions, the average house price has risen significantly. 

According to the Nationwide House Price Index, the average UK house price went up from £54,008 at the end of Q3 1996 to £206,346 at the end of Q3 2016 – a whopping 282 per cent increase.

Unfortunately, rising house prices has meant that it has become harder for first-time buyers to get a foot onto the property ladder. Using the average house price as a guide, even if a mortgage has a 95 per cent loan-to-value, buyers would still need to find a deposit of over £10,000. Add in solicitor and estate agent fees and the initial layout can seem daunting.

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Brexit: What’s the latest, and how does the interest rate cut affect homeowners?

brexit-interest-rate2After the political whirlwind of the last couple of months, it appears the country’s immediate future may be becoming a little clearer.

Now that Theresa May has taken office as Prime Minister, she will agree the government’s negotiating position before she triggers Article 50, and officially starts the clock on the UK’s exit from the EU.

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Why choose Shared Ownership?

The home ownership dream can seem more out of reach than ever, with mortgage affordability rules making the home-buying process more complicated. And ever-increasing house prices mean that many hopeful homeowners usually 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.

More information: What type of mortgages should I get?

So what for the hopeful at the foot of the property ladder? One potential solution is part-own, part-buy – Shared Ownership. A step that yours truly took a few years back and have never regretted.

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