Wednesday 29 November 2017

STRICTER RULES FOR BUY-TO-LET BORROWING

New regulations have just come into force which require lenders to deal differently with those owning 4 or more residential rental properties. This level of landlord will now have to submit full details of their portfolio including values and rental incomes for all of the properties owned, and these must fit into the new affordability calculations.

Those who own fewer than 4 residential rental properties will be able to remortgage properties and increase their portfolio up to the level of 4 much more simply. This does look to be yet a further effort by the Government to disadvantage those seeking to build a large property portfolio.




Friday 17 November 2017

OTHER OPTIONS FOR OLDER BORROWERS

The market is becoming generally more flexible in dealing with borrowers aged 60 and over.


Many lenders will automatically accept earnings from employment for up to age 70. Where the

borrowers have pension incomes or investment income, then mortgage terms up to 80, or even

age 85, are not out of the question. Give us a ring and we can make enquiries for you.


Monday 13 November 2017

OVER 60? CHECK OUT LIFETIME MORTGAGES

Lifetime mortgage rates are normally fixed for the whole term of the mortgage which is usually until the property is sold on death or when moving into care.




So if you have one already, then there is probably nothing you need to do. However, if you have been considering taking one out, it would be wise to do so quickly. Over the last year the number of older

borrowers taking out a Lifetime Mortgage has increased by over 40%. This is a result of more older people approaching the end of an interest only mortgage arranged many years ago, and changes in Lifetime Mortgages which have made them more flexible.


A Lifetime Mortgage is effectively a self-certification mortgage as there are no affordability requirements as with a standard residential mortgage. The amount that can be borrowed depends only on age and the property value.

Even a poor credit record generally does not affect the ability to borrow. This can provide a powerful solution for older borrowers.

The borrowers have the choice of servicing the mortgage with regular or ad hoc payments or letting the interest simply roll-up. The bottom line is that there is no threat that missed payments would end up with one being kicked out of their property. Note: Lifetime Mortgages have a minimum age of 55; a husband and wife would require both to be aged 55 or older. Do give us a ring and we can quickly give you an idea of how much you would be able to borrow based on your age and property value.




Thursday 9 November 2017

FIXING YOUR MORTGAGE

If you have a mortgage, review it. If you are already on a fixed rate for a reasonable term,


you probably do not need to take further action. However, if you are on your lender’s Standard



Variable Rate, you face an increase in your monthly costs in the event of any mortgage rate increase.

The easy solution is to talk to your lender about changing your mortgage over to a fixed rate. This

can usually be done for little or no cost, and for most people will also mean they will immediately

pay less than they were paying. For example a switch to a fixed rate can mean your paying a rate

which is 2.0% or so lower than you are paying currently. This can result in significantly lower monthly payments. Check it out.


Wednesday 1 November 2017

CHANGES AHEAD!

The Governor of the Bank of England has been preparing us for an increase in interest rates in the near future. That and the uncertainty with the BREXIT negotiations are reasons



for reviewing one’s finances sooner rather than later. Mortgage and Lifetime Mortgage interest rates will both be influenced by any increase announced by the Bank of England and, in fact, some lenders have already started making adjustments.