Mortgage Broker Manchester

Whilst there has been some improvement in the mortgage approval rate for first time buyers, getting the first step onto the property ladder is undoubtedly the hardest.
Even if you can demonstrate a history of good personal financial management and have a deposit that can be anywhere up to 20% of the purchase price, you may still find it difficult to get a mortgage approval.
For this reason, more first time buyers are opting to apply for forty year mortgages in order to get a mortgage approval from a bank or building society. In this blog we’re going to take a look at 40 year mortgages and their pros and cons.
How could a 40 year mortgage help me get approved
Most mortgage products are focussed on a repayment period of 15, 25 or 30 years. Although you may change your mortgage provider during this time period to take advantage of the best interest rates, a mortgage based on these timescales is designed to be amortised, that is, fully paid off in the final payment in the 15th, 25th or 30th year.
To get a mortgage paid off in a shorter period of time, it’s fairly obvious that the repayments required are going to be higher. This can be the bar to people getting on the mortgage ladder. The banks will assess your income and decide if you will be able to comfortably meet the repayments. They’ll also take into account the effects of an interest rate rise and see if you would still be able to meet the repayments.
40 year mortgages are designed for the people that the banks turn away because whilst they meet other criteria for lending like financial responsibility, their monthly income is deemed to be too low to comfortably meet the repayments. Adding a further 10 years of payments to the mortgage means lower payments during the course of the mortgage.
What are the advantages of a 40 year mortgage?
If you have previously been turned down for a mortgage of a shorter time period because it has been judged you’ll have difficulty in making the repayments, a 40 year mortgage may be for you. The extended repayment period will result in lower monthly payments. These lower monthly payments may be acceptable to the mortgage lender and may allow them to approve your housing loan.
And the disadvantages? 
Extending the repayment period means that you’ll end up paying more interest on your loan. You should take serious consideration of this because the amounts of money involved can be considerable.
Paying off the loan over a longer period of time also means that you’ll build equity in your property at a slower rate. Equity is the difference between the value of your property and the amount of the mortgage that is still outstanding on it. If you’re paying a smaller amount off your mortgage each month it will take longer to build up equity in your property. However, house prices are still rising so you may find that your property continues to gain value after your purchase helping you to build some equity.
Do you want to be paying a mortgage a long way into your 60’s? For most people the answer is no. This is another serious consideration you need to make. Add 40 years to your current age and that’s how old you’ll be when you have finished paying off your mortgage. This places a lot of restrictions on your future options – early retirement being one of them.
Pay more each month than you need to
If a 40 year mortgage is the only way you can get onto the property ladder, you can help to reduce the amount of time to repay the loan and the interest that you’ll pay on it.
Just because the banks think you might not be able to sustain higher payments doesn’t actually mean that you can’t do it. If you are able to pay back more than you are required to on a monthly basis you can dramatically reduce the interest and the length of the term of your home loan.
 
So what now?
If you think that a 40 year mortgage could be the way that finally gets you onto the property ladder we recommend you get some advice from a bank, building society or a mortgage broker.
 
Banks and building societies will offer advice on mortgage products that they have to offer, whereas a mortgage broker can give you advice on mortgages from the whole of the market. In many cases the in depth knowledge of a broker can find mortgages that suit your needs that you may otherwise not have found. You can also visit our first time buyer pages to find out more about getting your first mortgage.

In the years running up to the credit crunch the popularity of interest-only mortgages soared, as borrowers were able to cut their monthly repayments by just paying back the interest, not the capital. By the end of 2012, most lenders stopped lending on an interest-only basis, after many within the industry deemed it irresponsible.

However, according to latest figures from the Council of Mortgage Lenders, around 1.9 million buyers are interest-only mortgage customers. For many first-time buyers or homeowners who may be ready to remortgage, understanding the options available and the best to suit their needs and financial state isn’t alway’s easy.

That’s why we have put together a breakdown to help buyers understand the ‘do’s and don’ts’ of interest-only mortgages, who they could benefit and the risks of lending on an interest-only basis.

What Does ‘Interest-Only’ Mean?

An interest-only mortgage offers buyers a cheaper way to buy a property. This is due to the repayments only covering the interest of the loan, rather than paying off the capital.

By the end of the mortgage term agreed, the buyer will only have paid off the interest of the original loan and nothing of the actual debt, unlike a repayment mortgage that would have cleared the debt.

Why People Chose Interest-Only Mortgages?

For both first time-buyers and next-time buyers, particularly those who may be buying in high-price area’s such as London and the South East, interest-only mortgages can sometimes be cheaper than renting.

Often, buyers do have the intentions to switch to a repayment mortgage at a later date, but many get used to the lower repayments and put off increasing the amount, meaning the cost continues to mount.

What Are The Risks Of Borrowing On Interest-Only Terms?

One thing to bare in mind when considering an interest-only mortgage is trends in market. For instance, if house prices don’t rise, buyers will not gain any equity in their home, which essentially means they renting, simply from the bank. So switching from interest-only as soon as possible is advised.

Can Interest-Only Borrowing Work For You?

If you are a buyer and are considering lending on an interest-only basis, there are a number of things that you should bare in mind before making a firm decision:

Be sure that you can afford more than the initial interest-repayments each month. This will help you when you come to switch to a repayment-mortgage and the monthly cost increases.

Put aside a separate amount each month to invest into an Isa or stocks. This will help you save money to go towards paying of the capital of your mortgage. It’s also much better to have this when it comes to switching, as you could struggle if your interest rate goes up.

Check if your lender will allow you to may overpayments. Any sum you pay off is then no longer covering interest, but going towards the capital.

When applying for a mortgage you have two initial options for finding a deal. You can either approach lenders directly or you can find a broker help find you a mortgage. Here at Search Mortgage Solutions we believe that brokers are by far your best option, no matter your situation, thats why we have put together 5 reasons you should choose a broker over going direct.

It’s Less Bureaucratic

One of the most off-putting and potentially damaging things about going direct is the manner in which many lenders or banks speak to you. The majority of us aren’t mortgage experts so it can be a bit overwhelming being bombarded with financial jargon, which only overcomplicates the situation. This either leaves the majority of us confused or signing a deal in blind faith, which is potentially very dangerous.

Brokers understand this and can walk you through each step of the application process in common-sensical terms. With their expert guidance in language you understand the process can be much simpler and won’t lead you into agreeing a deal that’s not right for you.

Their help is arguably more valuable than ever following the most recent Mortgage Market Review which has lead to the application process becoming even more complex.

They’ll Approach The Wider Market

A mistake made particularly by first time buyers is choosing to go straight to their existing bank for a mortgage. Making this decision can massively restrict your options because the current mortgage market is more expansive than it has ever been.

Because brokers aren’t tied down to a particular lender, they have the whole market at their disposal. Combining this with the ever expanding market and you obviously have a better opportunity for a cheaper deal.

They’ll Source Exclusive Deals

As previously mentioned the current market is expanding, which has paved the way for a new and previously non existent relationship to emerge. In the past there was a certain amount of distrust between lenders and brokers. (who were ore seen as the chancer/third party type)

This relationship has been a result of changes in standards of brokers, honour have to have official mortgage qualifications monitored by the FCA.

These changes have enabled brokers to communicate better with lenders and (depending on your unique situation) gather exclusive deals created just for you, something which would be impossible if you choose to go direct.

They’ll Do The Legwork

If you decide to go it alone and are confident enough analyse the wider market yourself then it can be a lengthy and time consuming process. Brokers are specialists at scouring the market and sourcing deals and have the professional know-how and specific mortgage IT systems to do so.

Why extend the process and burden yourself with even more stress when you can employ a professional to  do it for you?

They’ll Manage The Extraordinary

Having particularly extraordinary financial circumstances (such as being self employed) can often work against you when applying direct. This is because the application process is further complicated, and lenders are less comfortable in working with something out of the ordinary.

Don’t become frustrated or concede you’ll never get a mortgage if you have shared this experience, because mortgage brokers thrive on extraordinary circumstances. They understand you may need more help than most applicants and relish the opportunity of getting out in the lending world to find you a deal .

People become uncertain about working with mortgage brokers because they charge broker fees for their services. Though this is true in come cases it isn’t in all, and some earn their living through their deals with the lender, so it isn’t you who is stiff-armed with extra costs at a later date. This should be one of your first questions you ask a broker as there are plenty out there that don’t charge.

As someone looking to invest in a buy-to-let property; you generally have one main decision to make and that is as to the type of investment property you purchase. Do you opt for student accommodation, private rental accommodation or even holiday accommodation? There’s advantages and disadvantages to all types of buy to let properties and, as you’d expect, the returns can differ greatly…but so can the workload involved!
As an example, you’ll typically need to be far greater involved in a student property than you would a private rental one; given that students will generally change year on year and that they’re often more ‘needy’ than say a family would be. On the flip side, however, you’ll usually see a more attractive return on the grounds that you could have four, five or even more students sharing a house.
In recent years, however, since around 2011, we’ve seen a significant increase in the number of property investors putting their money into holiday homes. Some of that, as you’d expect, is cottage accommodation but one of the largest areas of growth has been that of serviced apartments and our top tip today is to seriously consider your opportunities here should it be something that appeals to you.
With an increasing number of travellers and holidaymakers choosing to stay in a serviced apartment over a hotel or B&B (check out the below infographic titled ‘Travel Habits For City Breaks Around The Globe” for further insight and justification as to why it’s such a great industry to be investing in), it’s unsurprisingly becoming somewhat of a hotspot for investment. Why? Because in many instances, you won’t struggle to find an agent who will be more than happy to let out your apartment on your behalf. As such, in many cases, you needn’t worry about finding bookings and can simply focus on the running of the apartment. Yes, it’s not easy work given the tenant turnover, however it is widely assumed that “serviced apartments are able to offer much higher rental returns – potentially 300% more than normal buy-to-let.”
Whilst it’s not for everyone; for those wanting to take a slightly different BTL approach, it’s an attractive one and one within an industry that continues to grow year on year at a sizeable rate!
Of course, if you’re looking for buy to let mortgage advice, why not give us a call on 0800 756 7794 and have a chat with one of our advisors?
In the meantime, for further justification as to why serviced apartments could well be this year’s great BTL investment, here’s the previously mentioned infographic:

As a first time buyer, it can be difficult to know where you can actually afford to buy, especially given all the talk in the press on affordability and mortgage approval stats. The housing market is currently more varied than ever before, with new builds popping up everywhere you look, with geography playing a huge role in the cost of putting a roof over your head. Here at Search Mortgage Solutions, one of the UK’s leading mortgage brokers, we want to help make the process of starting your search for your dream first home as easy as possible.
As such, we have researched how much of the UK property market is available to you dependent on your current occupation. We took the average salaries from 7 different industries and applied the average first time buyer mortgage repayment figures to them (18%). This, coupled together with the average deposit of a first time buyer (£29,000) and a mid-range priced 3 bedroom property on the UK market allowed us to reach some surprising conclusions as to ‘affordability’ by job role. The results can be seen below.

INDUSTRY	AVERAGE SALARY	MARKET AVAILABLE
Information Technology Services	£35,437	31%
Financial Services	£35,320	28%
Software Development	£34,508	27%
Construction	£30,808	18%
Manufacturing	£30,131	17%
Retail	£25,750	9%
Education	£24,950	9%

What our study shows is that unless you are earning significantly above even the highest salary listed in our table (£35,437), then the percentage of properties available to you sits at less than a third of the entire UK market. A surprising discovery.
Following these results, we also looked at where the cheapest regions to buy in each part of the UK are, again looking at a mid-range priced 3 bedroom house with an average deposit of £29,000. The results are listed below.

WHERE	MORTGAGE REPAYMENT PER MONTH
Strabane, Northern Ireland	£208
Blaenau Gwent, Wales	£235
Hartlepool, England	£298
North Lanarkshire, Scotland	£319

Perhaps unsurprisingly, the North proved to be the most consistently cheap/available area of England, with County Durham, Yorkshire and Lancashire providing the majority of cheapest options. The most Southerly region in our price range was Corby in Northamptonshire. In Scotland, results were scattered, but the central regions surrounding North Lanarkshire generally proved to be the cheapest.
In Wales, the South Coast offered up all of its affordable regions in our price range, while in Northern Ireland almost every region was available in our highest salary job, but prices did range from £208 up to the £500’s.
———————————————————————————————————————————
Statistics for average salaries was sourced from:
http://career-advice.monster.co.uk/salary-benefits/pay-salary-advice/uk-average-salary-graphs/article.aspx
Each search was carried out using this tool:
http://www.bbc.co.uk/news/business-23234033
———————————————————————————————————————————

It’s a well known fact that many are struggling to buy their own home at the moment, due in part to rising property prices and the difficulty of getting approval for a mortgage, however how does the cost of buying compare with renting your home? Could it well be the case that we’re experiencing a vicious circle of renting where the costs are significantly higher than mortgage repayments would be and therefore making it impossible to save up a sizeable deposit?
We recently put together the below infographic to showcase ‘The Cost Of Keeping A Roof Over Your Head’ looking specifically at ‘Renting vs Buying’ in 2015.
We were surprised to find that over a lifetime, renters can easily pay in excess of £296,000 to landlords, a figure which could see them purchase a 5 bedroom detached house in Manchester! With the likes of the Government’s Help To Buy Scheme, there IS help out there for those who want to get themselves onto the property ladder and we’re confident that seeing the facts and figures above could be enough to convince even the biggest of doubters that buying your own home is the right way to go.
Fancy sharing our infographic on your own site or blog? Here’s a handy embed code:
<a href=”https://www.searchmortgagesolutions.co.uk/renting-vs-buying-2015″ target=”_blank”><img src=”https://www.searchmortgagesolutions.co.uk/renting-vs-buying.png”></a><br /><br />

For lots of people, a rented property is a platform where they can live whilst also hopefully putting aside enough to later make that first step onto the property ladder and buy. While this is many peoples intention, it is becoming increasingly difficult to achieve. At Search Mortgage Solutions, our mortgage brokers in Manchester, Leeds, Liverpool, London, Bristol and Birmingham have been crunching the figures, and assessing why in the current climate, entering the vicious circle of renting, makes it increasingly difficult to purchase your first home.

The Average Rental Cost Is Rising

Following recent figures released in August by HomeLet, the average price of renting a property in the UK rose to £937 per month. The most dramatic rise in rent came in the South-West, where the average rental price is £977 per month, which was more than a £100 rise on 2014’s figures. The rising rental costs have been apparent in every region in the UK except one. The North West of England actually posted a 1.4% decrease, but stands alone as the anomaly amongst these figures.

All this means is those aspiring to buy a home in the future but currently rent, are finding it increasingly difficult to meet asking prices of houses when their potential savings are being shortened by increasing rent. Making matters worse are the rising house prices, which further narrows the goalposts.

House Prices Are Rocketing

One explanation for the rise in rental properties points to the initial rise in house prices which has skyrocketed in the last year. This has left an increasing number of people looking to rent for longer because they cannot afford to buy yet. It has been at this point in which landlords have taken the opportunity to make more money by bumping up rental costs because they know there are plenty of people competing for them, perpetuating the vicious circle of renting.

So what options do you have if you’re currently renting but are desperate to buy? Well according to HomeLet’s Rental Index, the rise in rented properties massively varies around the UK. For example though the South West, South East and London have suffered, rented properties in Wales, Northern Ireland and East Anglia have barely shifted, and as previously mentioned the North West has actually dropped 1.4% (thats an average of £9 in the last 12 months).

Stand Your Best Chance Of Owning

To stand the best chance of getting your foot on the property ladder, these areas might be the best bet. As it stands they give you the cheapest rental base to save. Despite this, no matter where you are house prices and mortgages do seem to be on the rise, meaning the vicious circle of renting continuously tightening.

If you are in a position to buy, then now could be a good time to do so. though prices are consistently on the rise, there are more mortgages deals available than ever and they are currently comparatively low compared to renting prices. In fact on current rates, it is on average £56 cheaper to pay off a mortgage than it costs to rent a 3 bedroom property.

Here at Search Mortgage Solutions, we can provide expert advice on all mortgages, and whatever your situation, we can help. Whether you are looking to ‘Buy to Let’ or a first time buyer, we have the experience and knowhow to help you get the best deal.

Whilst there’s no denying the fact that many young people are struggling to get onto the property ladder as a result of increasing house prices, tougher mortgage criteria and the difficulty of saving up a sizeable deposit, it must still be remembered that there are those of a younger generation who successfully find themselves buying a home and it’s often the case that, when you look to move home and up-size, it’s those just starting out who will be looking to buy from you. As such, it’s absolutely vital that you understand what these buyers are looking for and take the time to carry out any work which could help you sell quicker and for the right price. Our principal mortgage broker, David, looks here to share just 5 top tips on how you can help sell your home to the younger generation.

1. Paint Your Walls Warm, Neutral Colours

Don’t be tempted to do anything other than paint your walls a warm, neutral colour if your target market to sell to is ‘young professionals’ or ‘young families.’ Warm grey works very well as a wall colour, if only to ensure that anyone who views your home is able to envisage how they can best bring in their own colours. Having an overpowering coloured wall or busy wallpaper can be off putting as it can be difficult to imagine changes, however this problem is eliminated with neutral colours. Of course, you must also remember that in many cases, less is more when it comes to interior design and the more simplistic, the better.

2. Consider Updating The Bathroom

To many, the bathroom is a place for relaxation and, ultimately, one of the most difficult rooms in the house to ‘rip out and start again.’ As such, by updating your bathroom you could be adding a whole new level of attractiveness. You generally won’t find potential buyers to be as fussy about the bathroom interiors as they would be the lounge or bedroom; so long as it’s clean and relaxing.
If they’re not outdated, you shouldn’t need to replace the bathroom suite itself and it’s amazing how far re-tiling can go. We spoke with Amy from RF Interiors, one of the UK’s leading suppliers of marble tiles who recommended, “go for something fancy yet simplistic at the same time. We find marble goes down a treat in the bathroom when you choose the right style as every single tile will have it’s own unique characteristics whilst a stunning overall look and feel.”
Above all else, make sure the bathroom is modern, functional and stylish and you’ll be surprised how much interest it picks up.

3. Finish Any Unfinished Projects

Have you started a job but not got round to finishing it? Before you put your property on the market, find the time to do so or get a professional in to help out! It’s surprising how many home owners get sidetracked when half way through a job but unfortunately it’s also one of the main reasons for disinterest in a home when looking round. Young families or even young professionals are unlikely to have the time to finish jobs which you started (unless you’re prepared to knock a hefty amount of the final sale price for the inconvenience) so it’s beneficial to do these yourself not just for the likelihood of it putting off buyers but for the financial ones as well.
Think ahead and, if at all possible, ensure there’s no outstanding projects before you even approach an estate agent and put your home on the market.

4. Replace Worn Carpets

There’s few things more unsightly than old, worn carpets and they can be a real turn-off for potential homebuyers when looking round your property. Whilst perhaps not an ‘investment’ in the same sense as other would could be, you’d be surprised at the difference new carpets makes to the overall appearance of a house.
You don’t need to opt for top of the range carpets, simply something clean, new and attractive. Trust us, if you go for neutral colours (there’s a neutral theme here isn’t there), you can’t go wrong and at least potential buyers will know they won’t need to rush out and fit out an entire house with brand new carpets. If you’ve got smaller rooms in the house, try looking at local carpet shops for offcuts from larger rolls as these can be a cheap way to carpet these.
If you either can’t afford to replace or the carpets are in relatively good condition, at the very least consider having them professionally cleaned.

5. Consider Selling With Lifestyle Photos

One thing which is becoming increasingly popular with those looking to sell their homes to a younger generation or those who simply want their homes to standout online is to take lifestyle photos rather than your traditional estate agent images. Victoria of V-Move is a strong purveyor of such shots and a recent blog post of hers suggested a range of tips for staging your home and, of course, for the photos. Another top tip which makes absolute sense is, “Ask your agent to re-take your front photograph with a bright blue sky. It really works wonders!” Who wants to see photos of a house on a dull day?!
—–
At the end of the day, you need to know who you’re marketing your house to before you make any changes, however by doing your research, you’ll be able to understand what you need to do to make your home most attractive to those you want to sell to.

It’s no secret that, earlier this year, mortgage rates hit an all time low, with a fixed-rate deal being available for 1.07%. As of the start of September, we continue to see mortgage rates far lower than anyone would have imagined this time two years ago, however one question which we still hear asked on a daily basis is ‘how long should I fix my mortgage for?’ We asked David, one of our mortgage brokers.
Lenders are currently offering fixed-rate deals for anything between one and ten years and which you choose should, above all else, take into account your circumstances and how they’re likely to change over the next ten years. Whilst there’s no denying the fact that the very lowest rates will only be available on one or two year fixed mortgages, for many, there’s a real attraction of fixing payments at a set rate for a period of ten years.
What must also be taken into consideration is that interest rates will rise, it’s simply a question of when. A longer fix, whilst not necessarily the lowest available today could see a small fortune saved over the course of the term should rates rise considerably.
When looking to make a decision as to how long you should fix your mortgage for, however, our top tips are:

Are You A First Time Buyer?

If you’re a first time buyer, it’s generally advised that you should fix your mortgage as this will give you the comfort that you know what your outgoings will be each month. On a variable mortgage, payments can change and, as such, you can’t always be sure what you’ll pay. For first time buyers, budgeting is always key and having a fixed-rate means you won’t be in for any surprises.

Could You Afford Higher Repayments?

In many cases, both first time buyers and home movers are borrowing the maximum they’re able to, due to low wages and high property costs and the question which must always be asked is whether higher repayments could be afforded. If the answer is no, a fixed mortgage is the solution and will ensure you won’t see any changes in payments over the fixed term.

Are You Planning On Moving House Within 5 or 10 Years?

If you’re planning on moving house within five or ten years, don’t be tempted to fix in for more than two or three years as you’ll end up being met with costly early repayment fees. Planning ahead should be a large decision factor and, whilst plans to change, it makes sense to consider your longer-term plans. If you can’t see yourself moving and have found your dream home, fixing for ten years could well see large savings made once interest rates as a whole rise over the coming years.
At the end of the day, for most borrowers, fixing the rate on their mortgage makes sense from a financial perspective and with none of us knowing what interest rates may lie at in 12 months time, there’s every argument that now is the time to buy, so long as you’ve found the right property!

Whilst the majority of us would much prefer to buy either a new build or an existing home, some of us have dreams to build our own home and self-builds are becoming increasingly popular. One question which arises time and time again on the subject of self-builds, however, is how they can be financed. It’s common knowledge that a traditional mortgage isn’t intended for those building their own home but what are the options? We asked our mortgage broker, David, to share his insight.

Financing A Self Build

Financing a self-build is a slightly different process when compared to that of securing a mortgage for a ready-built property (even new-builds), given that you’ll need to be funding the project over a series of weeks or months rather than purchasing outright in one lump sum as is usually the case. Most people will, of course, still need to secure a mortgage as they would on any property.
At this moment in time, despite it’s growth, the self-build market is relatively small and, as such, many lenders still don’t offer standard products which meet the criteria. As such, you’ll either need to speak to a number of different lenders or will need to work with a broker who knows who is currently offering self-build mortgages to be able to make the right decision as to who is the most suitable lender.
In all instances, a lender will require to see the final plans for your self-build prior to agreeing a mortgage.

Finance Will Be Released In Stages

One thing which it’s important to understand when applying for a self-build mortgage, however, is that, in most instances, funds will be released in stages as opposed to all up-front as you’d usually expect. This, of course, is to ensure you’re able to fund each stage of the development, however also to allow the lender to carry out frequent checks as to the status and progress of the project and be able to sign off the next release of funds.
Of course, a self-build mortgage comes with a far greater level of administration and involvement than a standard mortgage and this is often reflected in the cost of borrowing which will typically be higher than an everyday residential mortgage. However, on the flip side, you may find you need to borrow less which can cancel out the increased costs.

Ask Yourself Why You’re Self-Building

Above all else, you need to ask yourself why you’re wanting to undertake a self-build and the driving factor should always be that you’re doing it because you want to! Yes, a self-build mortgage may cost a little more, however if you end up with your dream home does it really matter too much? A self-build should be a solution to creating your dream home which you’ll stay in for good and This Money predicts that, upon completion, a home could immediately be worth up to 25% greater than what it cost to build.