Tuesday 29 November 2011
BUY-TO-LET – A USEFUL ALTERNATIVE FORM OF INVESTMENT
Interest rates on Buy-to-Let mortgages are going down and even the high completion fees, which most lenders have been charging, have started to reduce. Here, too, the higher your deposit, the better the interest rate. For those with the necessary funds the purchase of an investment property can provide a useful alternative to a pension, or a top-up. Do give us ring and we can make enquiries for you.
Monday 21 November 2011
MORTGAGES – CONSIDER YOUR OPTIONS
The Bank of England’s holding down of interest rates has been a saving grace for many people with a mortgage, particularly for those whose mortgage is directly linked to the Bank of England’s Base Rate – still currently 0.5%.
Actions to take:
1. Find out what your interest rate is. If it is 3.0% or less, you are likely to be best off by staying as you are. However, if you find that you are paying 4.5% or more, then you are likely to be on the lender’s Standard Variable Rate (SVR). If this is the case, you should contact us to make enquiries on your behalf. Mortgage rates are particularly low at this time, and it is possible to move over to a better rate and also fix it – against the time when interest rates do go up. Such changes can often be done for very little cost and produce a significant saving in monthly payments.
2. Check if your mortgage is on an interest-only or a repayment (capital and interest) basis. If you have an interest-only mortgage, you should look at your options as regards moving on to a repayment basis. This can be done with your present lender. The mortgage will have to be repaid at some time and unless you have another strategy, you should make these enquiries.
We will be happy to assist.
Tip: Interest rates currently are tiered, i.e. the interest rate is lower when the deposit is higher. For example, if you have only a 10% deposit, the interest rates are high. With a 15% deposit they are lower. With a 20% deposit still lower, and so on until the very best rates are for those having to borrow less than 50% of the property value. The same tiers also apply when you are remortgaging. In some cases you can save money by taking out a personal loan to bring you down to the next interest rate level. It can work out as a lower cost even when having to pay both the mortgage and the loan.
Actions to take:
1. Find out what your interest rate is. If it is 3.0% or less, you are likely to be best off by staying as you are. However, if you find that you are paying 4.5% or more, then you are likely to be on the lender’s Standard Variable Rate (SVR). If this is the case, you should contact us to make enquiries on your behalf. Mortgage rates are particularly low at this time, and it is possible to move over to a better rate and also fix it – against the time when interest rates do go up. Such changes can often be done for very little cost and produce a significant saving in monthly payments.
2. Check if your mortgage is on an interest-only or a repayment (capital and interest) basis. If you have an interest-only mortgage, you should look at your options as regards moving on to a repayment basis. This can be done with your present lender. The mortgage will have to be repaid at some time and unless you have another strategy, you should make these enquiries.
We will be happy to assist.
Tip: Interest rates currently are tiered, i.e. the interest rate is lower when the deposit is higher. For example, if you have only a 10% deposit, the interest rates are high. With a 15% deposit they are lower. With a 20% deposit still lower, and so on until the very best rates are for those having to borrow less than 50% of the property value. The same tiers also apply when you are remortgaging. In some cases you can save money by taking out a personal loan to bring you down to the next interest rate level. It can work out as a lower cost even when having to pay both the mortgage and the loan.
Monday 14 November 2011
HOUSING – A VITAL ELEMENT
Regardless of the recent state of the market, purchasing property to live in remains a sensible financial investment for most people.
The property market is generally flat despite the low interest rates. Any significant increases have largely been down to investors buying properties to let out. With a shortage of properties to let, the level of rental income has been rising.
While investors are benefiting, it does not help First-Time Buyers and those who are looking to move. Most First-Time Buyers are having to either borrow deposits from their parents or look to take advantage of the assistance being provided by several schemes for purchasing newly built properties.
The property market is generally flat despite the low interest rates. Any significant increases have largely been down to investors buying properties to let out. With a shortage of properties to let, the level of rental income has been rising.
While investors are benefiting, it does not help First-Time Buyers and those who are looking to move. Most First-Time Buyers are having to either borrow deposits from their parents or look to take advantage of the assistance being provided by several schemes for purchasing newly built properties.
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