Inspector Finance article about Mortgage Solutions for Home Buyers in Manchester.
Best of Finance look at Choosing a Mortgage Broker.
Private Finances Blog, looking at the decisions you should think about when choosing a Mortgage.
Money Gram Award, how to find the right mortgage for an easy purchase.
The financial Help Centre, take a focus on what mortgages you can really hope for.
If you’re looking to invest in property, student housing could be a potentially lucrative market to look into, with more people than ever studying in the UK.
The latest figures put the amount of UK students at around 1.8 million, with many of those students living in rented student accommodation.
We spoke to Mighty Student Living, who said: “While there was some worry that the student property market might be hit by Brexit, more people than ever before are coming to study here in the UK, and there’s still plenty of potential for investors.”
With such potential for some pretty good rental income, here’s our quick guide to investing in student property.
Choosing the right location is key when investing in student accommodation, perhaps even more so than the appearance and condition of the building itself.
Be sure to do a little research to make sure that you’re investing in an area with lots of students, but relatively little existing accommodation.
For example, many northern towns and cities have much more students than they do suitable accommodation, so there’ll be little competition.
On the other hand, many parts of London are oversaturated with student properties, where the costs are also much higher too.
Once you’ve found a suitable town or city, it’s all about choosing somewhere that’s close to both the university itself and the town centre, with plenty of amenities such as shops, restaurants, and of course, pubs!
While you might think of student properties as being pretty basic and low-budget, think again!
Student properties today are much more sophisticated than you might think, with students more than happy to spend a little extra on rent to ensure that they’re comfortable.
Bear this in mind with choosing a property to invest in and don’t worry too much that you might be pricing students out if you charge a slightly higher rent, because many (especially overseas students) will be more than happy to pay that little bit extra.
Making sure that the property is fully kitted out with a modern kitchen and bathroom doesn’t just make the property more attractive to potential tenants, but newer utilities mean that you hopefully won’t have to pay as much for maintenance further down the line.
Mortgages for students lets can be a lot harder to obtain than normal buy-to-let mortgages and not all lenders will be happy to grant you the money for a property if it’s going to be rented out to students.
However, if you’re investing in a purpose-built student accommodation development then you won’t be able to get a mortgage for this and will have either pay with cash or finance it through a loan.
While you won’t necessarily see great short-term gains, investing in student property can be highly lucrative.
As we’ve pointed out, there’s plenty of demand for student accommodation and you can expect a return of about 10% on your investment, but do bear in mind that this is a medium to long-term investment and you might have to be a little bit patient!
There are lots of myths surrounding the difference between renting and buying and which one is better for your pocket.
So, in an effort to debunk these myths, we’ve taken a look at the average gap between buying and renting in each English county.
This has been based on the average house price and renting price provided by Zoopla for each county, with the average monthly mortgage payment calculated using a 10% deposit on a 2.63% interest rate mortgage over 25 years.
Although many of the mortgage prices are higher than renting, the result of owning your own house by the end of your mortgage means they are much better as a long term investment.
Use the Snippet below to embed the infographic.
A number of questions were raised following George Osborne’s Summer Budget 2015 as to the proposed changes to buy to let mortgage interest relief on personal borrowing.
The changes to the treatment of mortgage interest has meant that investors are favouring going down the limited company route. As discussed in an article published on This is Money, brokers witnessed a big increase in applications for buy-to-let loans from limited companies as landlords prepared for the new tax amendments in April.
In this article we will be answering whether or not you can get a mortgage through a Ltd company and discussing your options going forward.
The answer is that yes it is possible to obtain a mortgage through a Ltd company.
However, saying this, it is all too common for less-experienced brokers to reject borrowers who are looking to protect their investment properties in Ltd companies. This is because it can be much more difficult to locate lenders who will offer this.
The truth of the matter is that high street lenders generally do not tend to offer mortgages such as these, and prefer to stick to more straightforward conventional businesses.
Consequently, this means that borrowers end up having to opt for the personal borrowing path and means that they aren’t benefiting from the advantages in the way that they should be.
So while there are perhaps fewer lenders offering mortgages for Ltd companies, there is still availably for limited companies choosing to go down this route.
There are certainly some clear benefits of Ltd company mortgages. One advantage is that from April 2020, mortgage interest will no longer be an allowable expense for individual property investors, yet it will remain allowable for companies holding a property.
Another advantage of limited company mortgages is that you are allowed to have multiple shareholders on title deeds. This means that it is much simpler for you to be able to administer proportions of ownership, as well as a share of profits.
Generally, buy to let mortgages for limited companies are more expensive. On top of the increased interest rate, the arrangement fees are also charged as a percentage as opposed to a fixed amount.
You also need to be aware of the additional costs in terms of legal assistance should the lender choose for their solicitor to act for them, which is actually quite normal.
Whilst the interest rate and additional costs make buy to let mortgages for limited companies more expensive, the tax benefits often outweigh the extra costs. It is advisable though to check with an accountant first as to whether your personal situation qualifies for this.
Whilst it is not always straightforward to get a mortgage if you own a Ltd company and are wanting to possibly refinance or even buy a new property, this isn’t to say that it cannot be achieved.
Although there are a few lenders who will work with companies trading in other areas, it’s generally the case that Ltd company mortgage lenders usually consider companies which are wholly involved in property more favourably.
These companies which only tend to work in rental property are referred to as Special Purpose Vehicle (SPV) limited companies. The benefit of setting up a SPV is that not only will some lenders only lend to SPVs, yet it is also an effective solution to ring-fence the asset.
On the other hand, there are also a few lenders who may also consider normal buy to let lending to Ltd companies that already exist as a trading business. With this option, the business doesn’t essentially have to be trading in property.
Another option which might be preferable to your own situation is that if you are a newly registered limited company, it’s also possible, based upon certain conditions, to be able to obtain a mortgage.
This would have to be the premise that the Ltd company would have to have been formed during your application. It’s also probably be advisable to register it as an SPV.
This article is just a brief look into your options for obtaining a mortgage through a limited company. Should you have any further question or queries, then please free to contact Search Mortgage Solutions here.
Embarking upon building your own house is a huge undertaking and if it’s something you’re serious about considering, the very first bridge you’re going to have to cross is how to fund the whole thing.
If you’ve got money in place from another source then that’s great, but the chances are that you’re going to need a mortgage.
However, self-build mortgages differ from traditional ones as the money is released in stages as the build project progresses.
The way in which the money is released varies from one mortgage to another, and which kind you choose will depend a lot on your own personal circumstances.
While each build is obviously different, these are the most common stages of a project:
1. Purchase of the land
2. Preliminary costs and foundations
3. Wall plate level
4. Wind and water tight
5. First fix and plastering
6. Second fix to completion
There are two main types of self-build mortgage, advance and arrears, and we’re going to take a look at both in more detail.
This is the most common type of self-build mortgage, whereby the lender will release some money to allow you to purchase the land, usually somewhere between 50% and 85% of the land’s value.
They will then go on to release in stages such as those outlined above. The money is paid out at the end of the stage, once work has been completed and a valuer will visit the site.
These types of mortgages are best for those who have enough savings to fund the early parts of the build, as well as pay off the deposit for the land.
For example, you may already own the land and want to remortgage it to fund the build, or you may have recently sold your own house to fund the project.
If either of these are the case, then you’re probably best opting for an arrears mortgage.
However, the fact is that most won’t have enough cash to both place a deposit on the land and complete the early stages of work required to get the cash from an arrears mortgage.
In this case, you may be best opting for an advance option. In these mortgages, the money from is released to you at the beginning of each building stage rather than at the end.
This gives you the cash for materials and builders up front, and these mortgages will often lend more upfront than an arrears one.
For those will less upfront capital or who don’t wish to sell their existing house straight away, we would usually recommend an advance mortgage, although as always, each project is different and we’d suggest getting in touch with one of our mortgage advisors to fully discuss your options.
Once you’ve got your finances in place you’ll be one step further along the line to building your own dream home.
For an idea of what lies ahead, check out this step-by-step guide on how to build your own home from Which? Mortgage Advisers.
And for more information on mortgages, head to This Is Money for their five top tips on finding a self-build mortgage.
Buying your first home is almost as scary as it is exciting, but it’s ultimately one of the most exciting purchases that you’ll ever make in your life!
To try and make the process that little bit smoother we’ve put together this list of ten top tips to finding your perfect first home.
While the big thing you’re going to want to consider is obviously your mortgage payments, it’s crucial to understand that there’s a whole host of other costs that you’re going to be facing.
For example, there are property taxes, bills, surveys and valuations as well as things such as stamp duty and mortgage arrangement fees.
If you’re used to just calling your landlord to sort repairs in your rented property, remember that6 you’ll be liable to pay for all of this in your new home.
Bear all of this in mind when setting your budget as if it might be wise to be a bit more realistic during your search rather than getting stung later on.
Having a good sized deposit means that you’ll open up a lot more potential properties for your search.
Generally speaking, you need something which is somewhere between 5% and 20% of the value of the property you wish to buy.
Of course, the more you save the better, as it’ll make applying for your mortgage much easier.
There are a number of schemes available which are designed specifically to help first-time buyers, and can help you afford a much wider range of properties.
The most well-known is the Help to Buy scheme, which allows you to borrow as much as 20% of the value of your property as long as you can stump up a 5% deposit.
There’s also the similarly named Right to Buy scheme which helps buy your council house and the option of shared ownership where you only buy a portion of your home and rent the remaining share.
Of course we’d say this, but we really do think it’s important that you come to a broker such as ourselves at Search Mortgage Solutions, especially when it’s your first time house hunting.
There are a lot of different mortgage options out there and it can be a bit overwhelming for first-time buyers.
A broker can help scour the entire market, using their vast experience and knowledge to help whittle things down and find the best mortgage for you.
What’s more, while some brokers will charge a fee for their services, here at Search Mortgage Solutions we can offer a no fee service as we work on commission from the lenders!
It’s all well and good finding your dream home, but the location is just as important. While you can carry out work to improve your new home, unfortunately, you can’t do the same for the surrounding area!
The best thing to do is get out and explore the area for yourself. Try and get a general feel for the area and check out things such as if the streets are clean for example.
It’s also a good idea to pop into the local shops, pubs, parks and other places you’ll likely be visiting.
And if you really want some good insight, ask the locals!
We can’t stress it enough but make sure to ask as many questions as possible before committing to making any offer.
A property might seem perfect on the surface, but dig a little bit deeper and things can quickly start to unravel.
For example, how long has the house been on the market? Have there ever been any disputed with neighbours? Have there been any recent renovations?
For some more good questions to ask, check out this post from the Homeowners Alliance.
Nowadays you can take things a step further by carrying out a whole host of checks on a property or area online.
For example, at Nethouseprices you can find out exactly how much local properties have recently sold for, or check out the UK House Price Index for average prices in certain areas.
You can even also check things such as whether your property is a flood risk or whether the area has a high crime rate.
It can be a rookie mistake to forget to check your credit score before apply for your mortgage, and it’s quick and simple to check.
Just head to a site such as ClearScore where you can check your score for free! There are lots of little things such as not being on the electoral register and having an account registered to an old address which can actually have a really negative impact on whether you can get a mortgage or not.
It might not be the first thing that you think of, but it is important to have a proper survey carried out on your potential property before putting pen to paper.
It’s important to know exactly what you’re getting yourself in for and making sure that there are no skeletons in the closet (metaphorically speaking of course!).
It’s also good to know exactly where your property ends and your neighbours begins.
We’d recommend booking at least three viewings before committing to a property, and make sure that they’re all at different times of day.
For example, seeing things during the cold light of day makes it easier to pick out flaws, but evening might bring its own problems.
For example, everything could be nice and quiet during the day while everyone’s at work, until the noisy neighbours get home from work at 5 and start blasting loud music!
Buying your first home is almost as scary as it is exciting, but it’s ultimately one of the most exciting purchases that you’ll ever make in your life!
To try and make the process that little bit smoother we’ve put together this list of ten top tips to finding your perfect first home.
While the big thing you’re going to want to consider is obviously your mortgage payments, it’s crucial to understand that there’s a whole host of other costs that you’re going to be facing.
For example, there are property taxes, bills, surveys and valuations as well as things such as stamp duty and mortgage arrangement fees.
If you’re used to just calling your landlord to sort repairs in your rented property, remember that6 you’ll be liable to pay for all of this in your new home.
Bear all of this in mind when setting your budget as if it might be wise to be a bit more realistic during your search rather than getting stung later on.
Having a good sized deposit means that you’ll open up a lot more potential properties for your search.
Generally speaking, you need something which is somewhere between 5% and 20% of the value of the property you wish to buy.
Of course, the more you save the better, as it’ll make applying for your mortgage much easier.
There are a number of schemes available which are designed specifically to help first-time buyers, and can help you afford a much wider range of properties.
The most well-known is the Help to Buy scheme, which allows you to borrow as much as 20% of the value of your property as long as you can stump up a 5% deposit.
There’s also the similarly named Right to Buy scheme which helps buy your council house and the option of shared ownership where you only buy a portion of your home and rent the remaining share.
Of course we’d say this, but we really do think it’s important that you come to a broker such as ourselves at Search Mortgage Solutions, especially when it’s your first time house hunting.
There are a lot of different mortgage options out there and it can be a bit overwhelming for first-time buyers.
A broker can help scour the entire market, using their vast experience and knowledge to help whittle things down and find the best mortgage for you.
What’s more, while some brokers will charge a fee for their services, here at Search Mortgage Solutions we can offer a no fee service as we work on commission from the lenders!
It’s all well and good finding your dream home, but the location is just as important. While you can carry out work to improve your new home, unfortunately, you can’t do the same for the surrounding area!
The best thing to do is get out and explore the area for yourself. Try and get a general feel for the area and check out things such as if the streets are clean for example.
It’s also a good idea to pop into the local shops, pubs, parks and other places you’ll likely be visiting.
And if you really want some good insight, ask the locals!
We can’t stress it enough but make sure to ask as many questions as possible before committing to making any offer.
A property might seem perfect on the surface, but dig a little bit deeper and things can quickly start to unravel.
For example, how long has the house been on the market? Have there ever been any disputed with neighbours? Have there been any recent renovations?
For some more good questions to ask, check out this post from the Homeowners Alliance.
Nowadays you can take things a step further by carrying out a whole host of checks on a property or area online.
For example, at Nethouseprices you can find out exactly how much local properties have recently sold for, or check out the UK House Price Index for average prices in certain areas.
You can even also check things such as whether your property is a flood risk or whether the area has a high crime rate.
It can be a rookie mistake to forget to check your credit score before apply for your mortgage, and it’s quick and simple to check.
Just head to a site such as ClearScore where you can check your score for free! There are lots of little things such as not being on the electoral register and having an account registered to an old address which can actually have a really negative impact on whether you can get a mortgage or not.
It might not be the first thing that you think of, but it is important to have a proper survey carried out on your potential property before putting pen to paper.
It’s important to know exactly what you’re getting yourself in for and making sure that there are no skeletons in the closet (metaphorically speaking of course!).
It’s also good to know exactly where your property ends and your neighbours begins.
We’d recommend booking at least three viewings before committing to a property, and make sure that they’re all at different times of day.
For example, seeing things during the cold light of day makes it easier to pick out flaws, but evening might bring its own problems.
For example, everything could be nice and quiet during the day while everyone’s at work, until the noisy neighbours get home from work at 5 and start blasting loud music!
Embarking upon building your own house is a huge undertaking and if it’s something you’re serious about considering, the very first bridge you’re going to have to cross is how to fund the whole thing.
If you’ve got money in place from another source then that’s great, but the chances are that you’re going to need a mortgage.
However, self-build mortgages differ from traditional ones as the money is released in stages as the build project progresses.
The way in which the money is released varies from one mortgage to another, and which kind you choose will depend a lot on your own personal circumstances.
While each build is obviously different, these are the most common stages of a project:
1. Purchase of the land
2. Preliminary costs and foundations
3. Wall plate level
4. Wind and water tight
5. First fix and plastering
6. Second fix to completion
There are two main types of self-build mortgage, advance and arrears, and we’re going to take a look at both in more detail.
This is the most common type of self-build mortgage, whereby the lender will release some money to allow you to purchase the land, usually somewhere between 50% and 85% of the land’s value.
They will then go on to release in stages such as those outlined above. The money is paid out at the end of the stage, once work has been completed and a valuer will visit the site.
These types of mortgages are best for those who have enough savings to fund the early parts of the build, as well as pay off the deposit for the land.
For example, you may already own the land and want to remortgage it to fund the build, or you may have recently sold your own house to fund the project.
If either of these are the case, then you’re probably best opting for an arrears mortgage.
However, the fact is that most won’t have enough cash to both place a deposit on the land and complete the early stages of work required to get the cash from an arrears mortgage.
In this case, you may be best opting for an advance option. In these mortgages, the money from is released to you at the beginning of each building stage rather than at the end.
This gives you the cash for materials and builders up front, and these mortgages will often lend more upfront than an arrears one.
For those will less upfront capital or who don’t wish to sell their existing house straight away, we would usually recommend an advance mortgage, although as always, each project is different and we’d suggest getting in touch with one of our mortgage advisors to fully discuss your options.
Once you’ve got your finances in place you’ll be one step further along the line to building your own dream home.
For an idea of what lies ahead, check out this step-by-step guide on how to build your own home from Which? Mortgage Advisers.
And for more information on mortgages, head to This Is Money for their five top tips on finding a self-build mortgage.
Buy to Let properties are still a good investment that could bring you a good return on your money now and help you build a nest egg for your future retirement.
With all investments, you should do your homework before putting any money into it and buy to let is no different. With this in mind, we’ve put together this guide which will make your research a little easier. Without further ado, here’s our list of ten tips that will help through the purchase of your first buy to let property.
An independent mortgage advisor should be one of your first considerations. There are some key differences that set buy to let mortgages apart from a standard property loan that you will have used to buy your own home.
The application for a buy to let mortgage will not only assess your ability to pay the mortgage based on your own income, but also on the likely rental income from the property. Lenders have tightened up their lending criteria to minimise risk and also because of government legislation, so it’s a good idea to discuss your plans with an independent mortgage advisor, who will present you with buy to let mortgage advice based on your circumstances
It might sound obvious, but crucial to the success of your buy to let business, is getting a tenant into your property as quickly as possible. Remember that you will be responsible for the mortgage payments on the property whilst it remains empty.
This should guide your decisions over the property you buy. Run-down houses might come cheap, but they might take 3-4 months to get into a habitable state. If you cannot complete the work yourself, you’ll need to hire a contractor to do it. Contractors usually have a number of jobs in the queue, so finding one that can start immediately will be difficult.
For an easy start to your buy to let business, we’d recommend that you find a property that just needs a lick of paint before your first tenant moves in. Obviously, you’ll pay more for property that is ready to let and that will reduce the yield on your investment, but you will minimise the risk of having to fund the house from your personal income.
You may be reluctant to use a letting agent to help you manage your buy to let property. After all, they’ll be taking a commission from your rental income, which might make margins a little tight.
There are, however, some really good reasons to use one. Firstly, you are new to the buy to let market, whilst they manage a large number of properties. Like the Independent Mortgage Advisor, they know the market inside out. We’ve listed a few of the benefits below.
A letting agent will likely have a list of prospective tenants that are looking for properties, minimising the time it takes to get someone into your home and taking away the need for you to advertise the property.
Like an estate agent, the letting agent will show prospective tenants around the home, so you don’t have to take time out of your day job to do this.
Your letting agent will take care of Checking the immigrations status of tenants – explained here in this Citizen’s Advice Bureau article. With a £3000 penalty per tenant not entitled to live in the UK, this is an extremely important responsibility.
The letting agent can hold the deposit of your tenant, as is required under the Deposit Protection Scheme – explained here on the .gov website, meaning you don’t have to.
Using a letting agent doesn’t have to be a permanent thing. You will usually be required to sign up for a minimum term with the letting agent, but after that time, if you feel able to, you can take on all these responsibilities yourself and increase your profit margin.
It’s a consideration that too many landlords leave out of their planning. For first time buy to let landlords, it’s a good idea to choose young families. Generally speaking, they make good tenants who are looking for a property they can live in for a few years whilst they raise their family and save for their own home.
Letting out to students may seem like a good idea, with potential for increased rental income by letting out individual rooms. Remember that students are a higher risk for things like non-payment of rent and damage to property. We’d strongly advise against student lets until you have been a landlord for some time, with a number of properties in your portfolio.
Becoming a landlord brings certain responsibilities with it. You need to ensure that you have the means to carry out repairs on the property. If things like the boiler break down, your tenant will call you and expect you to arrange a repair or replacement immediately.
If you are using a letting agent to manage the property, you may be covered for this and they may take care of the repair. Check this with your letting agent when you first discuss the management of your property. If it isn’t in their standard package it may be a ‘bolt on’ service that you can pay an additional fee for.
Should a minor catastrophe occur, like a flood or a fire, you’ll be required to re-house your tenant. Obviously, the costs of this could be extensive, before you even begin to get your property repaired. That’s why landlord insurance is an essential expense that you must budget for. As always shop around for the best deals on insurance and also make sure there isn’t a crossover with your letting agent’s insurance.
For personalised advice on getting started as a buy to let landlord, contact Search Mortgage Solutions on 0800 756 7794, we’ll be happy to discuss your plans for your buy to let business and help you through the process.
A number of questions were raised following George Osborne’s Summer Budget 2015 as to the proposed changes to buy to let mortgage interest relief on personal borrowing.
The changes to the treatment of mortgage interest has meant that investors are favouring going down the limited company route. As discussed in an article published on This is Money, brokers witnessed a big increase in applications for buy-to-let loans from limited companies as landlords prepared for the new tax amendments in April.
In this article we will be answering whether or not you can get a mortgage through a Ltd company and discussing your options going forward.
The answer is that yes it is possible to obtain a mortgage through a Ltd company.
However, saying this, it is all too common for less-experienced brokers to reject borrowers who are looking to protect their investment properties in Ltd companies. This is because it can be much more difficult to locate lenders who will offer this.
The truth of the matter is that high street lenders generally do not tend to offer mortgages such as these, and prefer to stick to more straightforward conventional businesses.
Consequently, this means that borrowers end up having to opt for the personal borrowing path and means that they aren’t benefiting from the advantages in the way that they should be.
So while there are perhaps fewer lenders offering mortgages for Ltd companies, there is still availably for limited companies choosing to go down this route.
There are certainly some clear benefits of Ltd company mortgages. One advantage is that from April 2020, mortgage interest will no longer be an allowable expense for individual property investors, yet it will remain allowable for companies holding a property.
Another advantage of limited company mortgages is that you are allowed to have multiple shareholders on title deeds. This means that it is much simpler for you to be able to administer proportions of ownership, as well as a share of profits.
Generally, buy to let mortgages for limited companies are more expensive. On top of the increased interest rate, the arrangement fees are also charged as a percentage as opposed to a fixed amount.
You also need to be aware of the additional costs in terms of legal assistance should the lender choose for their solicitor to act for them, which is actually quite normal.
Whilst the interest rate and additional costs make buy to let mortgages for limited companies more expensive, the tax benefits often outweigh the extra costs. It is advisable though to check with an accountant first as to whether your personal situation qualifies for this.
Whilst it is not always straightforward to get a mortgage if you own a Ltd company and are wanting to possibly refinance or even buy a new property, this isn’t to say that it cannot be achieved.
Although there are a few lenders who will work with companies trading in other areas, it’s generally the case that Ltd company mortgage lenders usually consider companies which are wholly involved in property more favourably.
These companies which only tend to work in rental property are referred to as Special Purpose Vehicle (SPV) limited companies. The benefit of setting up a SPV is that not only will some lenders only lend to SPVs, yet it is also an effective solution to ring-fence the asset.
On the other hand, there are also a few lenders who may also consider normal buy to let lending to Ltd companies that already exist as a trading business. With this option, the business doesn’t essentially have to be trading in property.
Another option which might be preferable to your own situation is that if you are a newly registered limited company, it’s also possible, based upon certain conditions, to be able to obtain a mortgage.
This would have to be the premise that the Ltd company would have to have been formed during your application. It’s also probably be advisable to register it as an SPV.
This article is just a brief look into your options for obtaining a mortgage through a limited company. Should you have any further question or queries, then please free to contact Search Mortgage Solutions here.