Cryptocurrency still not widely accepted in the mortgage world.

There’s been a lot of hype around the rise of ‘Cryptocurrency’.  Specifically, relating to Bitcoin and other similar electronic currencies.  Currently they are not regulated and their price can fluctuate immensely day by day.  However, there have been a number of success stories and thus providing funds which could possibly be used as a deposit for a property.  Normally, lenders will want to see a build up of savings, or proof of where the funds have come from, inheritance etc.  With no formal category for this type of return, and no formal guidance from the regulators, some lenders may class it as gambling and not allow it as a form of deposit.  Some of the major high street names have already confirmed they will not accept deposits derived from cryptocurrency. With technology thriving as it is and some cryptocurrencies now worth billions worldwide, this could be deemed quite an ignorant view.  I suspect, as they become more widely known and used, only time will move this forward.

In the meantime, and especially in the current climates, you should do your homework and speak to a ‘whole of market’ mortgage adviser.  They might have an avenue for such a transaction.

However, if the person you are speaking to is not offering ‘whole of market’ advice, i.e. they just review a panel of selected lenders, you may not be getting the best product for your needs and/or requirements.  For some of the larger brokers, lenders may even put one of their own underwriters in-house, so that your application can be processed within their offices.  This helps with speed, instructing valuations and dealing with queries quickly.   And remember, you can place your mortgage with whoever you like. You are under no obligation to anyone, despite what some may say! If you don’t like their stance, or they’re ‘forcing’ you to use a specific adviser, walk away….

Finally, we are delighted that Impact Specialist Finance has been nominated for Best Product Innovation; Best Use of Technology; Bridging Distributor of the Year, Best Buy to Let Broker and Specialist Finance Business of the Year at the 2019 Specialist Finance Introducer Awards.  Brought to you by Mortgage Introducer, the SFI Awards celebrate all that is great in the specialist mortgage sector.

To help us, we need YOUR vote please!  You can nominate at https://sfiawards.co.uk/voting/.  Thank you in advance!

Can a 'Cryptocurrency' help you buy a house?

You’ve probably seen some of the hype around the rise of what’s called ‘Cryptocurrency’.  Specifically, relating to Bitcoin and other similar electronic currencies.  Currently they are not regulated and their price can fluctuate immensely day by day.  However, there have been a number of success stories and thus providing funds which could possibly be used as a deposit for a property.  Normally, lenders will want to see a build up of savings, or proof of where the funds have come from, inheritance etc.  With no formal category for this type of return, and no formal guidance from the regulators, some lenders may class it as gambling and not allow it as a form of deposit.  Despite some lenders confirming they will assist, some of the major high street names have already confirmed they will not accept deposits derived from cryptocurrency. With technology thriving as it is and some cryptocurrencies now worth hundreds of billions dollars worldwide, this could be deemed quite an ignorant view.  I suspect, as they become more widely known and used, only time will move this forward.

With this in mind, Technology plays a major part in our financial world.  Some lenders already do a lot of their functionality via a mobile app, including voice and face recognition.  Impressive hi-tech stuff indeed.

Most people will start their home buying process via the Rightmoves and Zooplas of the world, but some commentators are also predicting that the whole home buying process will soon become a digital revolution.  With more effective use of technology cutting down the mortgage process, some entities launching ‘robo advice’, and many lenders now processing everything online, I can see how that can happen.

However, at the same time, I can also see many customers just wanting to speak to someone face to face.  Especially those who have not grown up with technology!  Plus, as mortgage volumes are increasing, we will see more and more customers fall out of the 'technology only' bracket.  So, explore all options and if the technology becomes too confusing, pick up the phone!