Mortgage Broker Manchester

Applying for a mortgage is a daunting thing, especially if you have never before made a mortgage application. Even if you do have prior mortgage application making experience though, because the industry is ever changing and property isn’t something all but developers do very often, it can still prove a mammoth task. Hence, below are five ways in which to better your chances at having a proposal approved.

Get Saving

Saving is perhaps an obvious means of one day becoming able to purchase that first time or even dream home. Whilst obvious, it is though necessary, at least for the vast majority of us. Hence, it is well worth taking the time to make the point; saving is by far the most sensible means of one day owning your own home, not least because the ‘cash poor’ stand to pay far higher mortgage interest rates, if they manage to secure a mortgage at all, as the Gaurdian Newspaper website reported as far back as 2010.

Repay Any Outstanding Debt

These days, many of us have debts, or have had. Therefore, few if any mortgage providers will discount or refuse a mortgage application on the basis of previous or even current debts, provided repayments are being made. That said, applying for a mortgage whilst you have outstanding debt can negatively impact upon your chance of having a mortgage application approved and as well increase what your premiums.

Whilst having incurred debt itself is not necessarily an indication that a person or couple cannot manage their finances, having to fork out for monthly debt repayments does increase a borrower’s probability of becoming unable to keep up with the added pressure of mortgage repayments. So, to stand the best chance of not only having a mortgage approved, but of securing the best mortgage, it is advisable to clear any outstanding debts before applying, when possible. 

Look Into Help To Buy Schemes

Help to buy schemes can prove not just a financially savvy means of purchasing a home, but for first time buyers often the only means of getting onto the property ladder.

UK government run help to buy schemes operate by initially reducing the deposit amount charged to secure the purchase of a home. Often restricted to first time buyers, the idea is that buyers stump up 5% of a property’s value to use as a deposit and the government will pay the remaining amount in the form of a loan, enabling young couples especially to purchase a home in which to begin and / or raise a family. To learn more about the Help to By Schemes currently in operation, visit the Official UK Government  website or, alternatively, consult and speak with a mortgage broker.

Improve Your Credit Rating

Once upon a time people were wary of checking their credit rating too frequently as doing so could, at worst, negatively impact upon it. These days it is becoming more accepted that people wish to keep up to date with where they stand and what their credit rating is. The fact is, the reason people are eager to keep up to date with their credit rating because they are simply diligent and wish to keep on top of things.

Understanding this, a number of companies have begun 2016 by introducing and advertising their credit checking services. Whilst this is good news for those hoping to compile a solid mortgage application this year, it is advisable to first take a look at the advice offered by the Money Saving Expert website, if you have opted to forego the support and guidance of an accredited mortgage broker.

As an impartial and expert source of advice, the Money Saving Expert website is an invaluable place to turn when compiling a mortgage application. Not only do they illuminate individuals as to the realities surrounding those offers of ‘free’ credit rating check services, their website also features a wealth of mortgage related and up to date advice on how to secure a mortgage and present yourself to potential lenders.

Use The Services On A Mortgage Broker

There are numerous reasons why using the services of a mortgage broker, such as our expert team here at Search Mortgage Solutions, is by far the best advice out there.

The fact is, mortgage brokers are experts in all things mortgage related. Hence, their knowledge concerning mortgages and mortgage related issues is not just extensive, but up to date. Because the mortgage industry is ever changing, keeping up with what is what can prove too much for many, especially first time buyers. So, to ensure you are getting the best deal and putting forward the best application possible, it is prudent to at least consider consulting an accredited mortgage broker.

For more and more detailed information as to why it is advisable to turn to an accredited mortgage broker ahead of making or submitting a mortgage application, visit the Guardian Newspaper website, which features an insightful article on why the majority of successful mortgage applications are in 2016 brokered ones.

Good news for potential homeowners: The Bank of England has revealed mortgage approvals hit a three month high in November.

A report showed that net mortgage lending went up by £3.9 billion, the largest rise since February 2008.

There were 70,410 loan approvals for house purchases in November, which was more than expected as the average over the previous six months was only 68,428.

Remortgaging figures were also promising, with 39,161 approvals, largely in line with the previous six months’ average.

The figures are great news for prospective homeowners, especially prospective first time buyers who are hoping to get onto the property ladder in 2016.

There are certainly plenty of promising signs. Alongside this increased lending we’re currently experiencing record low mortgage rates, some great mortgage deals, as well as the government’s Help to Buy scheme (see one of our earlier blog posts for more info on that).

We’ve now seen two successive months of increased approvals which has hopefully allayed any worries of a dip over winter.

It is also very encouraging to see that approvals are much higher than we were seeing at this point last year.

As we see lenders become more confident in the market, and borrowers benefit from record lows in mortgage rates, we should see lenders continue to offer more and more special deals to prospective borrowers.

The one possible negative going forward is the simple lack of housing, and we need to see the government follow through on promises in this regard.

Hopefully, as the economic climate steadily improves we will see mortgage lending stabilize and increase even further in 2016.

If you are thinking of trying to secure a mortgage, whether its for the first time or on a new property, get in touch with one of our experts for some free specialist advice!

2016 looks set to be another year of record-low interest rates with economists predicting a maximum rise of as little as half a per cent.
These all time low rates mean that 2016 is a great time to secure your mortgage before rates potentially rise again over the next few years.
So if you are planning to make an attempt to break into the housing market in the coming year, make sure to heed our top tips to ensure the best possible chance of having your application approved.

Boost your credit score

One of the first things a lender will look at when contemplating approving your mortgage is your credit score.
Its just good practice in general really, but if you know you’re going to be applying for a mortgage you need to make sure any existing debt is managed correctly.
First things first you need to make sure all bills are paid on time, and make sure you pay off your existing debts, paying more than the minimum payments if possible.
You can check your current credit score for free using websites such as Noddle. It’s quick, free and can give you a great idea of where you stand before you apply.
Keep an eye out for any outstanding or late payments and stay on top of your credit report to put yourself in the best possible situation.

Do some market research

There are a whole host of lenders and different mortgages types available out there and it can all be a bit overwhelming, especially for a first time buyer.
All the different banks and building societies will try to tempt you with different fees and offers, as well as different types of loans such as fixed-rate or adjustable-rate.
While you can go out and try and research the market for yourself it can be very difficult to make sense of without extensive knowledge of the mortgage sector.
One of our mortgage experts can take a look at your individual case and help you decide which mortgage is right for you.

Be realistic

If you find yourself really struggling to secure a mortgage on your dream property, you may need to think about looking at a slightly cheaper option.
Although its not ideal sometimes you just have to realise that certain properties are going to be unachievable.
Compromising in a couple of areas could really help your chances with getting a mortgage and you may even be able to move on to the kind of property you have your heart set on in a couple of years’ time.
Also make sure that you take into account all the other costs that you’ll have when buying a home, things such as taxes, insurance and maintenance costs.
All of the above costs do add up and so make sure you know what you can and can’t afford before trying to secure your mortgage.

Save up a decent deposit

Lenders usually require a deposit of at least 5% of the property’s value before they agree to lend you the other 95%, but its best to try and put down a bigger deposit if you can.
Offering up a bigger upfront payment will obviously leave you with less to pay monthly, and also means you’re less likely to fall into negative equity.
While paying off half of your house in your deposit is going to be fairly unrealistic for most buyers, coming with a deposit of around 20% if your financial situation will allow it.
It’s important that you have as much information as possible before attempting to secure yourself a mortgage, whether that’s about your own credit history, the kind of property you want, or the type of mortgage that’s best for you.
That’s why we recommend getting in touch with one of our mortgage experts for simple, fast advice to suit your circumstances, with no broker fees.

Most people who have a growing family will at some stage find their present home just isn’t big enough. The obvious solution to some people would be to move and purchase a bigger house, but for some it isn’t really an option. Moving house costs money. Legal fees, estate agents costs, stamp duty; it all adds up and add in the fact that the mortgage is also likely to be considerably bigger and it’s clear why some people don’t want to take this option.
Converting the loft can often be a far cheaper solution and can add an extra bedroom, office, playroom and perhaps a bathroom or shower room as well. You will however need to think carefully about one or two things as it is being built.
Before you get to the stage where the electrical wiring is being installed you’ll need to decide how many and where you want the sockets locating. Remember that nowadays most people have an array of devices including mobile phones, iPads, iPods, games consoles and digital cameras so consider fitting a USB 13amp 2 Gang Switch Socket to allow for convenient charging. It will also have built in protection for if the current goes over 1.2amp when it will trip off automatically to protect the device.
Your lighting needs are also going to be different up in a loft. Most lofts have a limited amount of head room so a pendant light is not really going to be convenient. Think about fitting downlighters into the ceiling which will look neat and give off a decent amount of light. Take a look at the Aurora 240v Polished Chrome Fire Rated Downlight for a stylish look that is also practical as well.
If the shape and size of your loft allows then go for some built in cupboards with a hanging rail which will eliminate the need for a free standing wardrobe. You’ll then be able to enjoy a clutter free space.

Recently buy to let schemes have had a shakeup due to the new second home tax set to come into force from April 1^st, 2016.

What Is The New Tax?

George Osborne announced in the previous month’s Autumn Statement that potential investors and individuals purchasing second homes or buy to let property should expect to pay an increased rate of stamp duty. The exact increase was stated as an additional three percentage points and is applicable over the stamp duty land tax rates currently in place.

What Does The Increased Rate of Stamp Duty Mean?

Therefore, properties worth £125,000 or less will be subject to a three percentage point tax when previously they were subject to 0%. Home owners with a property valued between £125,001 and £250,000 will see their percentage point tax increase from the two percentage point tax presently paid to a five percentage point tax whilst properties valued between £250,001 and £925,000 (who currently pay a five percentage point tax) will have to pay an eight percentage point tax. Lastly, homes above this threshold and up to 1.5 million will be charged a 13 percentage point stamp duty and any home exceeding 1.5 million in value will be subject to a fifteen percentage point tax.

Despite the details contained in the Autumn Statement, the details of who this will affect and how are yet to be released. Consequently, many home owners have been left feeling confused and concerned at what it could mean for them, and how in practise this new rate of tax will work.

The Potential Downside: Non-professional Landlords Who Rent Their Own Homes

Of those most concerned and understandably confused, are those who own buy-to-let property but who do not own the home in which they themselves reside. Most of the investors who fall into this bracket are not professional landlords as most professional landlords do own their own home as well as one or more properties which they let out in order to provide or supplement their income.

Then, many of those who do not own their own home rent because they cannot afford to purchase a home in the area in which they live, whilst taking advantage and making the most of rising property prices by buying in other parts of the UK where property prices are more affordable. Subsequently, they then let those properties out for financial gain.

Hence, the question on the lips of such investors is what a new second home tax might mean for them when they do become financially able to purchase their own home, as many have buy to let property to afford to do exactly that and are now wondering if this new rate of stamp duty will effectively scupper their plans.

The problem is that answering the question is far less simple, or at least the Treasury seems to believe it to be based on the answers they have so far given. In fact, the only solid answer the Treasury has yet given is one advising such buy to let investors to be patient as the answer will be contained in a consultation paper due to be released to the public before the end of the year.

The Potential Upside: Investors Who Already Own Their Own Home and a Second Home or Buy To Let Holiday Home

In the meantime, the Treasury was able to answer the question posed by thousands of home owners who also own a buy to let holiday property and are eager to know how they might be affected, or even if they will be affected and so expected to pay more.

Quite simply, the a Treasury spokesperson assured this band of investors that it is unlikely they will be subject to pay a higher level of tax as they have or will be owning a home and not technically a second property. Reiterated, what the treasury have stated is that the charge will most likely not be charged in retrospect to those who already, right now own more than a single property.

Need advice About the New Rate of Second Home Tax or Want to Speak with Someone?

To learn more about the proposed stamp duty tax rise and what experts are saying, readers can visit the BBC News Website where there is also ‘full and in-depth coverage of the Spending Review and Autumn Statement’ and information on who this might effect, and how.

Alternatively, for advice on your own situation, contact us directly via the Search Mortgage Solutions Contact Page, where you can request a call back from one of our team.

You may have heard in recent news that the Federal Reserve in the United States has raised interest rates. This headline might not have meant anything to you at first glance, but are there any implications for borrowers here in the UK? Read on to find out what the first rate rise in the US in 9 years means for us.

What exactly happened in the US?

The US Federal Reserve, the US equivalent of the Bank of England raised its base interest rate by 0.25%. This is the first rate rise from the Federal Reserve in just over 9 years. Rates have been kept artificially low by the Fed in the US since the financial crisis in 2006. The reason for this was to make the cost of borrowing relatively cheap and therefore be a stimulus to growth.

The rate increase by the Fed is a good sign that the US economy is well and truly on the mend.

Will the Same Happen Here in the UK?

The US and UK markets have mirrored each other for quite some time, so the rate increase in the US is an indication that the same will happen here in the UK soon.

Mark Carney, the Governor of the Bank of England said recently that he was in no rush to make an interest rate increase, but the feeling amongst experts in the city is that this position will need to change with an interest rise by around Spring 2016.

What Will a Rate Increase Mean in the UK?

With interest rates being kept low here by the Bank of England for so long anyone who haw taken out a mortgage in the last 9 years will not have experienced an interest rate rise.

Unlike mortgages in the US, most mortgages in the UK are are index linked at a few percent above the Bank of England base rate. This means that the interest rate of a mortgage, or any other borrowing that tracks the Bank of England base rate, will rise with the Bank of England base rate.

Even a small quarter percent interest rate rise can make quite large increases in the monthly mortgage repayments of borrowers.

What is Expected for UK Interest Rates Long Term?

The Bank of England have previously indicated that they expect the interest rate in future to be half of its historical average; that would be approximately 2.5%. Obviously a 2.5% interest rate would cause very large increases in the mortgage payments of homeowners.

An example reported by Sky News this week, showed a typical tracker mortgage on a £200,000 house with a £150,000 mortgage costing £165 per month more in the event of a 2.5% interest rate rise.

Interest Rate Rises Worry Me, What Should I Do?

If you have any concerns about your mortgage or you are about to renew your mortgage, talk things over with your lender or get advice that covers the whole of the market from our mortgage brokers here at Search Mortgage Solutions. We are able to advise across all the mortgage products on the market, including mortgages that offer more protection against interest rate rises than standard tracker mortgages. We look forward to hearing from you.

There are a number of things to consider before you even consider applying for a mortgage. One of the most difficult decisions to make is choosing the length of time in which to pay your mortgage. They can vary from just a couple of years up to double figures, but why is there such a wide range, and which is best for your situation? Here at Search Mortgage Solutions, our mortgage brokers want to help you find the best mortgage for your situation, so here are our mortgage repayment length tips.

A short period

Firstly it’s important to outline the current positives of the mortgage market. The last 12 months have been great for mortgages and there are plenty of low interest rates available. Unfortunately they are expected to rise in the not too distant future. Because of this inevitable rise, one potential move would be to sign up to a short fixed term mortgage, such as two years, so that the interest rise will have little or no impact on your repayments.

Obviously in an ideal move we would all like to sign a short length mortgage but of course financially it might be impossible for many because the shorter the length of time, the bigger the monthly repayments. If you have managed to save a considerable lump sum before signing up then this might be the deal for you, but if you haven’t you might find it very difficult to live with.   

A longer period

On the other side of the coin is a longer term mortgage. Off the back of discussing the shorter period, the obvious positive of signing up to a lengthier mortgage deal is that the monthly payments will be much smaller, therefore more manageable, especially if you enter the mortgage without a great deal of savings.

With interest rates at staggering lows, it can be tempting to sign onto a fixed payment long term mortgage, however these deals will still be more expensive than a short deal in its entirety as you pay more interest for the privilege of having such time to pay back. While the standard longer period mortgage length might be around 6 years, recent deals have stretched in to double figures, with deals as long as 10 or even 12 years.

Money aside these deals are obviously easier to commit to if you feel as if the home you are buying is somewhere you are going to be for some time. They are not ideal for people who plan to move on in a couple of years, whereas a shorter one is.

Because of the fantastically low interest rates (around 1%), there is no better time to move for a short term mortgage, such a 2 or 3 year deal, however we understand that this just isn’t achievable for everyone. With the current renting situation, it is trickier to save than ever so there will be an increasing amount of people who can’t take on these deals. If you are managing to save at a much smaller monthly pace then obviously a long term deal is most likely your only option.

Regardless of what you can or can’t afford, Search Mortgage Solutions can help you find the best possible deal for your financial situation, no matter how unique…all without any broker fees!

The UK government has announced a new ISA scheme which it homes will better enable first time buyers to make their first steps onto the property ladder. For those signing up to the help to buy ISA, he government will offer a tax-free payment of up to £6,000 when buying their first home, and interest rates up to 4% when looking to save for a deposit.

Like other ISA’s, this one is tax free and designed as an incentive for potential first time buyers as a place to save up for their initial deposits. The added bonus with this new ISA is that the government will offer 25% to the value of whatever is saved in the account. The worth of this added lump sum is £3,000 per person, therefore £6,000 for a couple.

The ISA came into action from the 1^st of December and has so far been picked up by 14 organisations in the UK, so is widespread for plenty of first time buyers to inquire.

Here is the official scheme outline from the Treasury.

How do they work?

Similarly, to any regular ISA, the new help to buy ISA gives you an account to to put your hard earned money in to gain interest whilst being free of tax. When an individual or couple first open an ISA they will be able to initially deposit up to £1,000 in one go. Following this, monthly payments can be made into the ISA of no more than £200 a month, with a maximum capacity of £12,000 in the account.

When the owner of the ISA looks to buy a home, the government then offer their 25% bonus fee. This is a £50 bonus on every £200 you save, scaling to a maximum of £3,000 per person. The bonus is available for home purchases of up to £450,000 in London and £250,000 outside the capital.

The requirements

The ISA is available to anyone over the age of 16 and following its opening date of 1st December, it will close on 30^th November 2019. The time in which to receive the government bonus also have an expiry date, so if you haven’t bought or put a deposit down by the end of 2030, you will loose the opportunity for your free 25%.

The Minimum amount of money you can save in this ISA to get the government bonus is £1,600, which essentially could be as little as four months’ worth of payments (initial £1000 followed by three monthly payments of £200).

Taking the plunge

Once you save up the maximum the ISA allows and you feel its time to make the big move onto the property ladder the helpful thing means you aren’t tied to the same bank or lender that you took out the ISA, although they will almost certainly make you a deal before you get chance to shop around. No matter how good the deal is, you should always thoroughly check the market for the best possible, and our mortgage brokers can certainly help you do that.

If your deal for a new home falls through but you still want to clear the ISA, you are allowed to withdraw the money but you will not receive any of the government bonus because you have not committed it to a deal directly from the ISA.

This new ISA is another great help to first time buyers as renting climbs, making it trickier than ever to put cash aside. The mortgage market is wider and more confusing than ever, so as well as saving, take a step back and make the correct decision once you have done the hard bit of saving.

Recent improvements in the UK economy and a willingness of banks and building societies to start lending for mortgages have led to a rise in the number of housing developments currently under construction.

This is really good news for the building industry, which was undoubtedly the industry hit hardest at the start of the economic downturn and the slowest to recover.

Now that the construction industry is showing signs of recovery, we thought it would be good to take a look at how building are firms trying to meet the increasing demand for new homes and how the treasury is helping first time buyers get onto the property ladder.

New Developments Get A Helping Hand from Planners

In an attempt to close the supply and demand gap in available properties,George Osborne, the Chancellor of the Exchequor, has helped the construction industry by relaxing planning regulations. Councils are now encouraged to automatically accept applications to build on brown field sites.

This relaxation of planning rules is a further measure from the Treasury, who had previously relaxed the rules on the changes a homeowner could make their property without the need for planning permission.

This latest assistance from the chancellor has undoubtedly been a catalyst in starting many new developments by easing the planning process, which had previously been both a costly and lengthy process. 

If you want to find out more about planning permission and the changes that are now in place, you can do so online at the Governments Planning Portal.

New Construction Methods

The building industry has adopted many innovations to speed up the construction of houses. These new methods have an industry used term – MMC, which stands for Modern Methods of Construction. Most common amongst these MMC is the use of Structural Insulated Panels (SIPS) which are constructed offsite, transported to the site and assembled. The brickwork, windows and roof of the house are then built around the SIPS panels.

Building on brownfield sites that has been previously overlooked for construction purposes sometimes means that the landscape isn’t as ideal as land that builders would usually seek. In cases where houses are built into steep hillsides Sheet Piling is used to create retaining walls.

Together these faster methods of construction and the ability to use land that would not normally be considered for housing developments is helping to increase output of new homes by the building industry.

Further Help from the Treasury

The biggest barrier to first time buyers getting onto the property ladder is the size of the deposit required to get mortgage approval. Many financial institutions require a minimum of a 20% deposit, which is almost impossible for savers to achieve if they are in rented accommodation.

To help these first time buyers out, the Government has introduced the Help to Buy ISA, into which the Government will pay £50 for every £200 saved by individuals. The accounts allow for an initial deposit of £1000 and a have a maximum monthly deposit cap of £200. The maximum amount of Government help available per Help to Buy ISA is £3000.

The really great news for couples who are buying their first home is that each person can have their own Help to Buy ISA, meaning that you can double the amount of help available from the Government.

To find out more about Help to Buy ISA accounts, we recommend you check out the Government Fact Sheet online.

The availability of Help to Buy ISA’s for the next four years offers both builders and buyers helping hand. We look forward to reporting the effects of these incentives in around a year’s time when we will have statistics about take up rates.

After getting together the money for a deposit on a new place, securing a mortgage can seem like a daunting prospect.

A good credit score is a must if you want to qualify for a mortgage, but there is plenty you can do to make sure yours is as high as possible before applying.

The trick is to make yourself seem as attractive as possible to lenders, and as one of the UK’s leading mortgage brokers, we’ve put together these simple tips to give you the best possible chance of being approved.

Stay one step ahead of the lenders

One way of showing the financial discipline needed to get that mortgage is to check your credit score before your lender does.

Your credit file will show all your credit cards, loans, overdrafts, mobile phone contracts and more for the last six years, and best of all, you can check it all for free.

Credit rating agencies such as Equifax and Credit Expert usually charge up to £180 a year for their credit monitoring services, however to get around this you can sign up for a free trial, view your credit report and then cancel before any charge is made.

Alternatively, Clearscore offer a free credit score check with no card or bank account details required!

While the report you see may not the same as the one your lender will use it will still show you how well you’ve been managing your credit, and show you how you can improve it.

Just make sure you cancel as soon as possible to make sure you don’t end up paying!

Tidy up some of your old accounts

When applying for a mortgage, longer and more stable credit relationships are key, so its important to tidy up and close any inactive accounts you may have open with small balances.

Another top reason to close your old accounts is that they may prove a fraud risk, and it’s one less place you need to change your address if you do move house (another factor that can impact on your credit score).

Although, it is worth leaving some old debts on your credit report, as long as they were all paid off as agreed as it shows a good history of debt management.

Don’t apply for credit just before a mortgage

Lenders will search your credit history every time you apply for any type of credit or even a mobile phone or utility contract, even if you don’t actually take if out, and multiple searches in a short period can make lenders think you’re desperate to borrow.

For this reason its best to avoid applying for any type of credit for between three and six months before seeking a mortgage.

Of course if you genuinely need to apply for credit, the odd application will be ok, although steer clear of payday loans, as they’re sure to set alarm bells ringing for the lenders!

Manage your existing credit

One of the most important factors affecting your credit score is the difference between how much credit you have available, and how much you actually use.

It can be difficult to strike a successful credit balance, but keeping your debts under 50% of your total available credit is a must, and staying under 30% will help you even further in securing a mortgage.

Paying more than the minimum payments on your credit cards will not only help with this, but will save you money and show lenders you’re serious about securing that mortgage.

Pay your bills on time

Finally, it might seem like an obvious one, but its crucial that pay all of your bills on time, as any missed payments will show up on your report for the next six years.

At the time, a months missed bill may not seem like the biggest problem, but it could end up costing you when it comes to securing a mortgage!

The easiest way to make sure all you’re up to speed on all your outgoings is to set up direct debts so that all your payments are completed automatically each month.

If you’re confident you’ve followed these tips and improved your credit score as much as possible, you can visit our site to take the next step toward securing your dream home, whether a first time buyer, home mover, or even if you’re remortgaging.