Mortgage Broker Manchester

In an attempt to keep monthly mortgage repayments as low as possible, an increasing number of homeowners (and first time buyers, of course) in the UK are searching for deals which offer a term of 30 years or more, according to the Mortgage Advice Bureau who have reported that between April and June this year (2015), a significant 20% of those looking for a mortgage were seeking deals of this length. In comparison, this stood at just 8% this time last year.

A Typical Term In The UK Is 25 Years

Typically, a mortgage term will be no more than 25 years, however an increasing number of Brits are on the hunt for deals which allow them to spread the cost of borrowing over 30 years, sometimes more. This comes, in many cases, due to the fact that it is expected that the Bank of England will push up their base rate early next year, causing the currently all-time-low mortgage rates to rise. For those on a fixed deal, this won’t have an immediate impact however for those on a variable rate mortgage, the cost of monthly repayments could shoot up literally over night.

Those In Their Thirties & Older Are Facing Problems

Whilst 25 years may be the typical term for a mortgage to be taken out over in the UK, many buyers are finding that they’re unable to be accepted for anything longer, however, given the fact that many first time buyers are now into their thirties once they’ve saved up a deposit large enough to buy. As such, it’s often the case that, with lenders wanting mortgages to be repaid in full by the age of 65, these longer deals are simply unavailable for many.
Add to this the fact that property values are soaring above incomes in many areas, homebuyers are finding themselves in a difficult situation. They need these longer term deals to be able to afford repayments yet it’s taking too long to save up a deposit to be able to obtain them, even, in some cases, with the likes of the Help To Buy Scheme.

A Longer Term Means Higher Repayments

Whilst more than one fifth of mortgage applicants are now seeking a longer-term deal, it’s important that it is understood just what this means and why repayments can be deceiving. In the short term, yes, monthly repayments will be lower, however over the entire term of the mortgage, repayments will be significantly higher than on a short term.
The example recently given to the Daily Mail is:

The average house price in Q2 2015 stood at £151,668.

By spreading a mortgage over 30 years the monthly repayment would be £551 – £83 per month less than paying the same loan over 25 years.

However the total cost of repaying a mortgage over 30 years is £23,297 higher than over 25 years, with 25% more interest due in total.

The different between borrowing over 35 years compared with 25 is even greater. This would save £141 in monthly repayments initially but over the lifetime of the loan a homebuyer would pay an extra £47,707.

All in all, whilst for many a longer term MAY seem attractive, when you start to look at things in the longer term, it’s clear that they might not always be the great solution they initially appear to be.

Are you considering moving to London or perhaps simply moving to a different borough? If so, have you taken a moment to have a look at how the move may affect your home insurance premiums? Believe it or not, your postcode CAN affect how much you need to pay to insure your home, sometimes fairly significantly and, as such, we wanted to take a look at the ten most expensive London boroughs for home insurance and asked our team of London mortgage brokers to share their findings.
When shopping around for home insurance, you’re always going to be met with different premium quotes from different insurers, however all will take into account certain factors when putting together a price, with these including the rates of burglary and flooding. Of course, this can also give an indication as to how ‘risky’ an area may be and could well be something you haven’t thought to consider previously.
Looking solely at London boroughs, those areas found to have the highest home insurance premiums back in 2012 were:
As you can see, a house on Fenchurch Street is likely to see home insurance premiums of £787 per year, a whopping £161 higher than the next on the list; Golders Green. Looking at average house prices, this equates to a premium of £1.49 per £1,000 house price on £526,868.
Of course, the cost of home insurance isn’t always going to be the deciding factor as to whether or not you move to an area, however it’s something which many people never even think to consider. You may be paying £300 in other parts of London, however a jump up to £787 is a huge difference and one which many can’t necessarily afford!
It always pays to do your research when buying a house and whilst most people only think to look at how much council tax they’ll pay and what their mortgage repayments are going to be, things such as home insurance premiums are one of the costs that could drop a bombshell should you face a high price without expecting it!
Looking a little further at what influences the price of home insurance premiums, we see:

• House Price
  Houses which cost more will always come with a higher insurance premium anyway, given that it’ll cost more to repair or rebuild should the worst happen and a claim need to be made. By many, this is expected.
• Flood Risk
  What is the flood risk of a house you’re considering buying? A greater flood risk could mean far higher premiums given the fact that you’re statistically more likely to make a claim for water damage than in an area with a lower risk of flooding.
• Crime Rates
  What is the crime rate in the area? No one wants to be burgled, however this will increase premiums accordingly, again due to the fact that you’re more likely to make a claim whilst living there. You can research the crime rate in your area here.

Whilst we’re not suggesting you base a move decision upon the cost of home insurance, it’s one thing which many don’t factor in or consider and something which we believe should be looked at ahead of putting in an offer on a property.
 

As a first time buyer, it can be difficult to save up a deposit which is large enough to secure a mortgage and whilst the likes of the Help To Buy Scheme are doing a fantastic job at making it easier for individuals and couples to get onto the property ladder, the fact still remains that at least a 5% deposit will be required. In some areas, this can mean anything between £4,000 and £5,000, working a house priced £80,000 – £100,000, however in other areas, this could end up needing to be £10,000 or more – not the easiest figure to save up whilst working on minimum wage.
As such, more and more parents are helping out and either gifting or lending money to their children for a deposit, however is it really so simple or are there things to take into consideration? Our mortgage broker, David Sharples, has put together a number of consideration points which you’ll find below.

Is The Deposit A Gift Or A Loan?

Whilst technically there’s no issues with a parent providing a deposit for their children to buy a home (other than the fact that lenders look more favourably on those who save up their own due to demonstrable money management), it’s important that it’s made clear whether it’s a gift or a loan.
The easiest way for parents to provide a deposit is to give it as a gift which means that they don’t, in any way, shape or form have any financial interest in the property. In this instance, lenders will simply ask for a letter from the parents which state that it is in fact a gift and that it will not need to be repaid at any point.
One consideration here, however, is that if the parent dies within seven years of making the gift, this is likely to be treated as part of their estate and may be eligible for inheritance tax. Given that inheritance tax only comes into play if both parents die and the estate left is more than £325,000, for most this won’t become an issue.
If, on the other hand, the deposit is a loan and must be repaid, lenders will take this into account when looking at affordability, assuming regular repayments will need to be made. This, of course, means that when parents gift a deposit, you’ll usually not be able to borrow as much as you would be able to if it had been given as a gift.

Protecting A Gift From Relationship Breakdowns

If one set of parents is gifting a deposit, you may want to consider protecting this from a relationship breakup further down the line. At the very least, this needs considering, especially if you’re not married and have no children.
For as little as £100, you can get a ‘Deed Of Trust’ drawn up by a solicitor which will outline how equity is to be divided should a relationship break down. It’s a small price to pay for peace of mind.

How About Buying Together?

If your parents are still working, buying together could be a great option. This does, of course, mean that both yours and theirs names are on the deeds, making you jointly responsible for making repayments. In many cases, you’ll find that it’s easier to secure a mortgage under a joint application like this and you may also be able to borrow more.
Always take into account the fact that, however, your parents could be liable for capital gains tax should you sell the property and it be their second home.
It’s well-advised that you seek professional advice if this is something which you’re considering, taking into account the age of your parents and the fact that many lender’s won’t extend a term beyond the age of 65 or 70.

Guarantor Mortgages

Perhaps another option for some, if parents are homeowners with a significant level of equity, is to consider a guarantor mortgage. In short, this means that they act as guarantors for your mortgage payments, guaranteeing to pay if you don’t. Whilst not for everyone, there is a catch – a ‘charge’ is placed on your parents home and in the event that you default on your mortgage payments, the mortgage lender can pursue your parents for payment.
The plus side, however, is that you’ll often be able to borrow more with a guarantor in place.
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If you’re considering your options for your parents helping you get onto the property ladder, why not get in touch with one of our expert mortgage brokers to discuss your situation? We’re available on 0800 756 7794 7 days a week between 8am and 10pm!

If you’re preparing to put in an application for a mortgage, especially as a first time buyer, it’s important that you’re prepared for the questions which they’ll ask you. Of course, if you’re using the services of a mortgage broker, it will be them who ask this information, however regardless of the route you’re taking to apply for your mortgage, it’s important that you’ve prepared answers and know how to respond, in detail, to certain questions.
As such, we asked David, our leading Manchester based mortgage broker, to outline six commonly asked questions by mortgage lenders.

1. How Much Do You Want To Borrow?

If you’re at the stage of putting in a full application for a mortgage, you should have a good idea as to the price of the property you’re looking to buy and, as such, know how much you’re wanting to borrow. This is perhaps the most important question to have an answer to as, without knowing this, a lender is unable to give a decision. They’ll want to know, almost to the exact figure how much you’re asking to borrow – not the price of your property (of course, your deposit needs to cover the difference between the property price and your mortgage unless you’re looking at using the Help To Buy Scheme or similar).

2. What Is The Size Of Your Deposit?

Whilst it’s certainly possible to get a mortgage with only a 5% deposit, it’s a widely known fact that the bigger your deposit, the lower rate of interest you’ll be able to find. It’s important that you know, at the time of your application, how much you have to put down as a deposit. Don’t be tempted to over exaggerate this and rely on money you may have in a month’s time – be honest, upfront and state how much you have available. Are you flexible? Maybe you’re wanting to put down a 5% deposit and use the remainder of your savings to furnish the house, however if you’ve got a healthy amount in the bank, could you stretch to 7.5% or even 10% if it came to it? It’s important that you know and have made these decisions before putting in your application. Remember, the larger your deposit, the lower your monthly repayments will be.

3. Where Did Your Deposit Come From?

Whilst you may not think it matters where your deposit has come from, lenders WILL ask the question as they look more favourably on those who have saved up their own rather than it being gifted. Of course, that’s not to say you’ll be rejected if you’ve had a deposit gifted but, again, honesty is the key. Those who have saved up a deposit are already showing a degree of money management to the lenders, hence why it’s looked upon so favourably.
One thing to note here is that you’ll be required to provide your conveyancing solicitor with evidence as to how you earned the deposit with it being a legal requirement to check for money laundering.

4. What Is Your Annual Income?

Lenders will want to know your pre-tax income each year and to see evidence. If you’re applying as an individual, that’s your personal income, if you’re applying as a couple or in joint names, that’s the joint income.
If you have other earnings coming in such as bonuses, overtime, commission, second jobs or any other form of income, be sure to document these as well as it can showcase a higher income if fairly stable.
Having information available with supporting documentation in the form of pay slips, P60’s and bank statements will ensure no delays are experienced.

5. What Are Your Monthly Outgoings & Any Other Financial Commitments?

Lenders will want to know how much you spend each month and what on! Knowing how much you spend is key to working out affordability for mortgage repayments and, as such, you’ll need to provide evidence usually in the form of bank statements. In most instances, you’ll be asked to justify and explain large outgoings over a certain amount.
Of course, lenders will also want to know any other financial commitments you have such as credit card balances, car loans, personal loans or other forms of borrowing. Please note, student loans are NOT taken into account here and do not count as a debt for this purpose.
If at all possible, try to become debt free before applying for a mortgage.

6. What Is Your Employment Status?

Lenders will want to know how you earn your income! It’s all well and good showcasing your annual income, however they’ll want to know where it came from and how stable your job is. Do you work full time? Part time? Are you self employer or perhaps a director of your own business?
In most cases, full-time employment is viewed as the most risk free however you’ll need to ensure you’re established in the job and that you’re not in a probationary period.
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At the end of the day, applying for a mortgage isn’t as difficult as it sounds in many cases, however by preparing for the questions they’ll almost certainly ask you on your application, you can be in a great position to offer honest answers alongside all the supporting documentation they’ll need to process it.
Don’t worry – we’re confident you’ll be a home owner in no time at all!

Given that taking out a mortgage is likely one of the largest financial decisions you’ll ever make, it’s important to understand the different options available and be able to have an idea as to which is best suited to you. Of course, applying for a mortgage through a mortgage broker is a great way to receive independent advice as to which product is best suited to your individual financial circumstances not just now but moving forwards as well, however as with everything, it helps if you’ve got an idea as to what is likely to work best for you and have your own understanding as to what the options being presented in front of you mean.
As such, our leading broker, David, has put together a look at the difference between fixed rate mortgages and variable mortgages, looking at which is deemed the best option dependent on individual circumstances. Deciding on the right type of mortgage as a borrower is likely THE biggest decision you’ll need to make so understanding your options helps considerably.

What Is A Fixed Rate Mortgage?

Regardless of what happens to interest rates, with a fixed rate mortgage, you’ll pay the same level of interest each year across the term of the deal. In some instances, mortgage rates will rise and you’ll be paying less than you would be at the current rate offered and in others, rates will drop and you’ll be paying above the current rate. What makes fixed rate mortgages so attractive to home buyers, however, is the fact that payments remain the same each month and from a budgeting and financial forecasting point of view, this is a fantastic plus point.
Of course, you’ll find pros and cons of fixed rate mortgages, as with all types, with the main ones being:

If you like the sound of knowing to the penny what your monthly repayments are going to be, it is likely the case that a fixed rate mortgage is a strong contending option for you. Whether you’re a first time buyer trying to balance budgets, a home mover looking to assess your own affordability of a new home or even an investor taking out a buy to let mortgage who wants the reassurance that costs won’t rise over a set period, there’s no doubting that their popularity lies in the fact that the rate is what it says on the tin – fixed.
Top Tip: Spend time working out how long you’d ideally like to fix your mortgage rate for as leaving this can be costly. Always take into account your plans for moving home in the future (especially if remortgaging).
Further questions which we see asked on a regular basis surrounding fixed rate mortgages include:
Why Does The Rate Go Up The Longer The Fixed Term?
When you take out a fixed rate over a longer period of up to ten years, you’ll find the rate is higher than fixing for one or two. This is due to the fact that lenders are taking a greater risk that interest rates could rise over a longer period whilst still having to guarantee your rate if this happens.
Of course, what we still come back to for many is that, despite a higher rate at this stage on some mortgages, the certainty of monthly payments remaining fixed is a far more attractive offering.
What Is An Incentive Period?
As with all mortgages, you’ll take a fixed rate one out over a term of anything up to 25 years or, in some cases, longer. That doesn’t, unfortunately, mean you’re able to fix the rate for the entire term. The period of up to ten years of the fixed rate is known as the incentive period.
What Happens After The Incentive Period Ends?
Don’t panic! You won’t be expected to repay your mortgage in it’s entirety at the end of the incentive period and in most cases, after this you’ll go on to the lenders SVR (standard variable rate). Of course, this likely isn’t the best deal and most will remortgage at the end of an incentive period to ensure they’re paying only the interest rate which they need to.

What Is A Variable Mortgage?

Whereas with a fixed rate mortgage the interest rate and, as a result, your monthly payments remain the same each month across the incentive period, with a variable mortgage, rates and repayments can, and do, go up and down with the primary cause of fluctuations being the economy.
When the economy is booming and growing, interest rates increase to try and discourage spending whilst the opposite happens and rates drop when we experience a downturn.
What many don’t realise, however, that variable mortgages fall into three categories, all of which offer something slightly different to the others:
1. Tracker Mortgages
Tracker mortgages work where the rate track usually the Bank of England’s base rate (but can also track the Libor rate ) and will move in line with it. It’s important to understand that this doesn’t mean the rate is the same as the base rate however they’re a popular option for many, especially in times such as the present where the base rate is low. In addition, many are sold by the fact that only economic factors will move the rate, not commercial decisions by the lender.
As with a fixed rate mortgage, you’ll be tied into a tracker for a set period of time, most commonly for two years, however it’s also possible to take out what is known as a ‘lifetime tracker’ which tracks across the full term of the mortgage.
A word of warning here is to watch out for mortgages labelled as ‘trackers’ by lenders but which include small print which allows them to increase the rate for reasons other than the base rate changing.
2. Standard Variable Rate Mortgages (SVRs)
Every single lender have an SVR (standard variable rate) which they’re free to move up and down as they see fit, however again, these usually roughly follow the Bank of England base rate and sitting anything between 2 and 5 percentage points above. SVR’s can vary significantly between lenders.
In many instances, SVR’s are rarely opted for given the alternatives available and often aren’t available to new customers, however it is this which a mortgage will transfer to at the end of the incentive period on a fixed term, as an example.
In some cases, SVR’s can be cheap, however it’s often a risky decision given that a lender can, in theory, change the rate at any time.
One main benefit which is seen on SVR’s is the ability to repay in full without facing any form of financial penalty, thus making them ideal for those who may only need a mortgage over a short term with the potential to repay early in full.
3. Discount Rate Mortgages
The third variation on variable mortgages, discount rate mortgages, usually see a discount offered against the lender’s SVR, with many lasting between two and three years. Some discount rates, however, are available over the lifetime of a mortgage.
When considering discount rate mortgages, our top tip is to be sure to read and comprehend the marketing material properly. A discount rate could be offered at 2%, however you need to understand whether this means a 2% discount off the SVR or whether the rate payable is 2%.
You may not always get the benefit of base rate changes with a discount rate unless the lender changes their SVR however similarly, a discounted rate can go up if the lender hikes up their rates.
What Is A Capped Deal?
Given that variable mortgages can, and do, go up and down, in many instances, lenders will offer what is known as a capped deal, meaning that there’s an upper ceiling in place which rates can never rise above. This can go some way in reducing the levels of risk associated with variable deals and the uncertainty which many borrowers have surrounding the potential for repayments to spiral should rates suddenly soar.
Capped deals are, however, relatively rare nowadays and even when they are available, caps can be set quite high and the starting rate is often higher than on other deals.
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Which Mortgage Should You Choose?

The question of which mortgage should you choose comes up time and time again and it’s important that you understand the core differences between fixed and variable rate deals.
As a general rule, a fixed rate deal is attractive to many given the fact that repayments remain constant but it’s important to understand that this is essentially an insurance policy against rising rates. As such, you’ll often pay a premium for this benefit.
On the other hand, variable rates can be risky and there is always that uncertainty as to how much repayments will be, especially when rates can rise relatively quickly. Of course, when rates from on a variable mortgage, monthly payments will go down.
At the end of the day, few borrowers understand the specific ins and outs of the difference types of mortgage and, as such, it always pays to sit down with a professional mortgage broker, discuss your individual financial circumstances and work out which type will work best for you not just now but moving forwards into the future as well.

The reality is very much the case that thousands of homeowners across the UK are finding themselves as what is known as a ‘mortgage prisoner.’ This, of course, is due to the stricter criteria for lending which we’ve seen come into play over the past 18 months coupled with the fact that, going back a few years, borrowing was relatively easy for even those with questionable credit history.
What Is A Mortgage Prisoner?
The Mortgage Market Review brought with it far tighter lending criteria than was previously the case, something which was intended to prevent lenders lending to those who could potentially be unable to repay and default on repayments. Following the infamous 100% (or higher) mortgages and the high number of cases where borrowers were unable to afford repayments, the MMR brought in stricter criteria for lenders to assess affordability and finances.
As such, thousands of homeowners are finding themselves paying a mortgage at their lenders SVR (standard variable rate – that which is paid when a fixed, tracker or discount mortgage ends) because they simply cannot get approval on a new mortgage due to not meeting affordability criteria.
What is happening is that lenders are informing borrowers that they believe they couldn’t afford the repayments on a remortgage or on a new fixed rate deal, despite the fact that this would actually see repayments being cheaper than they are currently paying on the SVR.
Even in circumstances where a borrower has been with a lender years, never missed repayments and have a great credit history, if your current circumstances don’t meet their affordability criteria, it’s often a case that a remortgage or new fixed rate deal won’t be approved.
In other instances, borrowers are finding that lenders have changed the terms of their mortgage and that what they believed to be ‘portable‘ (meaning your mortgage can move house with you) is actually not.
Who Is Affected & What It Means?
It is currently believed that up to 40% of homeowners could find themselves mortgage prisoners over the coming years, unable to secure a new deal once their current fixed term or tracker period comes to an end.
In short, finding yourself as a mortgage prisoner doesn’t mean you’ll lose your house, something which many fear when they hear the term. Worst case scenario is that you’ll end up ‘stuck’ at your current lender’s SVR however this means you’ll be paying a far higher rate of interest than you could be should you be able to secure a new deal, making monthly repayments higher, often considerably.
On rare occasions, it has been known that homeowners have found themselves knocked off the property ladder due to their mortgage no longer being portable, however this is unlikely to happen so long as you double check prior to putting your house up for sale.
The stricter lending criteria currently in place effectively means that those who have a great track record are being rejected for a ‘new deal’ on the grounds of affordability. Despite never missing payments and a great credit history, the MMR means they no longer class as being a ‘safe bet’ for lending to.
Lenders are now forced to take an in-depth look at bank statements and some have been known to carefully scrutinise things such as gym memberships, childcare and even pension contributions.
What Can You Do If You’re A Mortgage Prisoner?
If you find yourself a mortgage prisoner, don’t give up! Whilst your current lender may be refusing to give you a new fixed rate deal, it’s important to know that not all lenders use the exact same criteria. What one lender looks at to assess affordability isn’t necessarily the same as others.
Whatever you do, don’t give up! We welcome you to give one of our expert mortgage brokers a call today on 0800 756 7794 who can chat through your circumstances and look for the best solution. Whilst you may feel you’re a mortgage prisoner, there’s usually options out there and as ‘whole-of-market’ brokers, we’ll find the lender whose criteria you will meet! All this for absolutely no broker fee!

Whether you’re considering a move in the coming years or have just moved into a new place and want to make improvements to your property, it’s important that you consider what will and won’t add value to your home. As such, we’ve outlined below 5 ways to add value to your property, whether you’re getting ready to sell or are simply planning for the future.
1. A Loft Conversion
It’s a well known fact that adding extra living space to you home can significantly increase it’s value and, as such, the most attractive way to do so is to have your loft converted. Whilst extending upwards can be both costly and time consuming, it’s almost guaranteed to increase the value of your home. One thing to bear in mind is that, in order for it to be considered an extra bedroom, you’ll need to make sure you get planning permission. In terms of how much a loft conversion can add to the value of your home, it’s generally regarded that in London it can add up to 15% whilst elsewhere, around 10%.
2. A Second Bathroom
We all know how frustrating it can be trying to manage the morning routine and, as such, another popular and common way to increase your properties value is to add a second bathroom. Whether this ends up being an en-suite alongside the master bedroom or even downstairs replacing a utility cupboard, for example, it’s certainly something to consider. If you’re in London, as an example, couples or families could be used to two or more bathrooms and if you’re only offering one, you may struggle to sell for that simple reason. It is thought that adding an extra bathroom can increase the value of your property by 3% in London or 7 – 10% elsewhere.
3. A Conservatory
Again, one thing which prospective home buyers love is extra space and an attractive way to do so is to add a conservatory to your property. By choosing the right type of conservatory which meets all planning regulations and offers a warm, spacious area can do wonders to your home and not only increase it’s value but make it easier to sell as well. In London you can expect a conservatory to increase the value by 3% or 5% throughout the rest of the country.
4. Add Double Glazing
If your property doesn’t have double glazing then having this installed is almost a necessity. Homeowners almost come to expect double glazing in every property nowadays and, as such, it’s often a case that if you’ve not got it installed, you’re actually devaluing your home. It is a well known fact that noisy roads can knock anything up to 20% off the price of a property and, as such, if you can ensure double glazing is in place you’re almost certain to be able to avoid this. Outside of London, adding double glazing can increase house prices by 5% with this being around 3% in London.
5. Repaint Your Property
If your property hasn’t been painted in years, would knowing that doing so could increase the value of your home by up to 10% in some areas get you up a ladder to do so? No one wants to purchase a house which appears to have seen better days and first impressions really do count. By ensuring the front of your house has had a fresh lick of paint, you’ll know you’re not putting off buyers and that you’re offering your property in a great light and ensure it gives off a fantastic first impression!
Of course, whilst these value figures are only estimates and no one can guarantee a sale due to any single improvement, what they will do is ensure your house can be put on the market at the very top of the price bracket that it’s worth and be far more attractive to potential buyers than others in the local area.

In today’s (8th July 2015) emergency budget, George Osborn announced that the tax relief on privately rented buy-to-let properties is set to be reduced to 20%. At this moment in time, landlords are able to claim up to 45% of interest payments on mortgages as tax relief, something which has contributed to the large surge in buy to let properties over recent years. Of course, the fact that individuals are now able to retrieve lump sums from their pension pot has also helped, however being able to offset anything up to 45% (dependent on the tax band the landlord falls into) made buy-to-let a very attractive proposition.
Today’s budget saw the Chancellor announce that this tax relief will be reduced to just 20%, the basic rate and is intended to address “unfairnesses in property taxation” and is set to be phased in “gradually” from 2017.
The issue seen with buy-to-let is that this pushes up house prices as well as reducing the number of homes available for first time buyers. It’s no hidden fact that many of the properties bought by investors and landlords are towards the bottom of the property ladder (in order to be able to make a tidy profit when renting out to families, couples or individuals whilst keeping rent affordable) and, as such, George Osborn aims to try and create a more even playing field and help thousands more first-time-buyers get themselves onto the property ladder each year.
Of course, whilst that is indeed the intention, we wanted to take a look at what this could mean across both landlords, home buyers and those in rental accommodation following the rollout.
For Landlords
It is clear that the majority of landlords will not be happy with today’s announcement. For some, they could see the level of tax relief which they are able to claim on interest payments fall from 45% to 20%. Let’s say, as an example and for ease that their monthly interest amounts to £200. At 45%, borrowing would cost just £110 whilst following the changes this would cost £160. There’s a huge difference and for many landlords could be the difference between profit and a loss, especially when interest rates rise as they’re expected to do.
For those on the highest tax band, the cost of borrowing will now more than double and this could well prove not to be profitable at all.
For Home Buyers
Whilst it is intended that the changes will ‘level the playing field’ this may not necessarily be the case. Of course, it could well be that we see a surge of investment properties sold off over the coming years, however we are likely to see little change. Perhaps we could see the rate at which buy-to-let properties are being snapped up slow down a little, however in the grand scheme of things, it’s unlikely to make the positive impact upon the levels of available houses for first time buyers which is intended.
Of course, as a home buyer or specifically a first time buyers, however, it’s encouraging to know that there’s now going to be a far fairer level of competition out that and there’s potentially less of a risk of investors putting in higher offers than you can afford to simply because they’re able to claim 45% of interest as tax relief.
For Tenants
Those who today’s changes could affect worst is those currently in rental accommodation. If landlords are effectively seeing reduced profits once the changes come into force, they’ll want to make this back somehow and the most obvious suggestion is that they’ll increase rent. Over the coming years, we could see rent hit an all time high and many who even currently struggle to afford high rents pushed into a difficult position.
Whilst the changes, in theory, seem to have good intentions to try and help those looking to buy a home for themselves and their families, only time will tell what will happen for certain!

If you asked us if we could find a way to link British property prices and the Silverstone Grand Prix, we’d probably reply saying we couldn’t! Low and behold, however, one of the UK’s leading online estate agents, eMoov have gone and done just that and released an infographic which looks at how property prices here in the UK have changed over the years alongside the British Grand Prix winners!
For a concept we wouldn’t have thought to work, it works brilliantly. It works so well that we wanted to share it and, as such, here it is:

 
If we look back to 1955, the average house price was just £1,928! It’s phenomenal to think that in 2015, that is £188,566, a huge increase of 9,680%! The question which is asked time and time again is when are things going to settle down, however we think it’s safe to say that the price of houses is set to continue to rise for some time, albeit perhaps at a slower rate than we saw in the early 2000’s!

When it comes to selling your house, you’ll have a list as long as your arm of things you want to get done. Of course, whilst we understand that getting a mortgage in place for your next property is of uttermost importance (we would say that; we’re mortgage brokers) one of the hardest decisions in 2015 is how to choose the right type of estate agent.
Rewind just ten years and you more or less had only one option when it came to selling your house; use one of the established local agents. Of course, it cost and it cost a significant amount of money, however it was the way things were and it’s how things had been for many years.
As with many industries, however, the internet turned things on their head and saw the emergence of the ‘online estate agent.’ For the first time, homeowners had the option to sell their property through an online agent, often managing viewings themselves. The downside is that there’s a fair bit more work involved, however given that having your property listed on Rightmove and Zoopla are pretty much the only forms of marketing many houses will need in order to sell, it can save a small fortune. And yes, we’re talking thousands of pounds!
The other option which is becoming increasingly popular is the private sale, however for many, this involves far too much work and admin. Whereas with an online agent you still have the support of a team of experts, when selling privately you’re ALL on your own!
We recently came across this great infographic which has been put together by House Network which seeks to answer the question of ‘How To Choose The Right Type Of Estate Agent’ and, in our opinion, does a fantastic job of covering the options!
Why not take a moment to check out the infographic yourself and use it to make your own decision as to the best way to sell your home: