Carpool Karaoke.....for mortgages!

The world has gone Carpool Karaoke crazy!  Celebrity James Corden has had a number of top celebrities, including Adele and Michelle Obama, in his passenger seat to sing along to an array of hits.  In celebration of our 25th anniversary, the AToM team have filmed a rendition of the Madness classic ‘Our House’ and this is available for your viewing pleasure on our Facebook page (www.facebook.com/atommortgages).  Hope you enjoy it, as much as we did filming it!! 

In other news this week, a number of new products have been launched as lenders have a big push to finish the year on a high.

Our good friends at Precise Mortgages have launched a Right to Buy range for those eligible to buy their rented property at a discounted price from their council or housing association.  Allowing up to 100% of the purchase price, this is a great offering from the lender as it also allows an element of credit issues, with some defaults and CCJs accepted (Terms apply).

Investment Properties, Buy to Lets, usually have the mortgage loan available calculated based on the rental generated by the property.  Usually this is calculated at 145% of the mortgage on a nominal rate of 5.25%.   However, new lender, Foundation Homeloans, has launched a 5 year fixed rate at 3.45% and can calculate the loan based on this rate and 125%, if buying in a limited company.  It changes to 145% if in a personal name.

Finally, a number of lenders have reduced rates for customers looking to buy a new build property.  Whether it be a house or flat, lenders will assist assuming it has the right building guarantees and will even consider if the builder has an incentive offer, such as contribution towards deposits or stamp duty.  Some of the new build properties around the area are also eligible for Shared Ownership.  This involves the purchase of a smaller share of the property, whilst renting the remainder.  Normally there is an option to purchase the remaining share at a later date.  Explore all the options available to you. 

Dudley launch - AToM one of the chosen few!

The summer is over, the kids are back to school and the post holiday credit card statements are on their way!  Ok, so a bit negative, but don’t panic when they arrive.  Debt Management Plans and Payday loans look like an attractive solution and they will be right for some people. However, most mortgage lenders are not favourable to these arrangements.  If you are looking to change your mortgage, think twice before committing to such a plan. Consolidating debts into one monthly payment via a secured loan or even a total remortgage may be a better option. Obviously securing short term debt in to a longer term loan will inevitably increase the amount of interest paid and professional advice should be sought before going this route.  But do review your options as rates are low.

The Dudley Building Society has launched their new mortgage lending proposition through seven key mortgage packager/distributors around the country.  We’re delighted that AToM is one of the chosen few!  The Dudley BS specialise in assisting First Time Buyers, Shared Ownership (90% of share on New Build properties), Right to Buys, Buy to Lets and more.   It’s great to see lenders expanding their propositions in to new areas and we look forward to working with them.

Buy to Let mortgages seem to be the flavour of the month.  With the rental market remaining buoyant and showing no signs of declining, lenders are reacting to the huge demand for investment/buy to let properties.  This sector has also experienced the recent mortgage price war and some big criteria changes as lenders seek to attract more of this business type.  Buy to Let properties will often provide a modest monthly return over and above the mortgage payment.  The additional amount can be used to supplement income, or, with flexible mortgages, can be used to “overpay” the mortgage and reduce the term.   Most lenders in this sector will require the rental income to exceed the mortgage payment by up to 125%.  Remember that, whatever the deal, lender terms and conditions will always apply and there are no guarantees of continued rental or capital growth.

August was a superb month for AToM.  Completion numbers, those taking out mortgage loans, were the best for five years!  Thank you to all those who have been using AToM’s services, we really do appreciate it.

Increased competition in the 95% LTV market for First Time Buyers

We’ve seen another week of market movement and increased competition as lenders lower rates and loosen criteria.  There is a lot more positive activity from the lenders, however we are also seeing an increase in service times and underwriting responses resulting from increased volumes.  A few are even reporting backlogs of over a week just to look at a case!  In addition, if they then need further information in respect of the application, once received, this can then join the back of the queue again to be looked at!  Be aware of these timescales if you are in a hurry to complete.

House prices rose in March by 0.2% compared to February according to the Halifax House Price Index with the average price now sitting just below £164k. 

Our good friends at the Saffron Building Society have launched a superb product aimed at First Time Buyers.  The lender is offering a 95% mortgage with no credit scoring, to those who have never owned a property.  Customers will still be credit searched but cases are reviewed on a manual assessment, rather than a computer making the decision.  There are no early redemption penalties and the arrangement fee is just £495.  This is not just aimed at New Build properties either!  Obviously terms/conditions and other fees may apply, but this kind of innovation is exactly what the mortgage market needs!

Although not household names, specialist lenders like Saffron have money to lend and a desire to create products to assist gaps in the mortgage market.  For instance, the usual requirement on the self employed is 2 or 3 years accounts and possibly the SA302 returns from the Inland Revenue. Some specialist lenders, for the right deposit, will allow just 1 years accounts to prove income, normally with an accountant projection for the second full year and probably up to six months personal and business bank statements.

This is the beauty of using a mortgage broker.  They will have access to many lenders that you have probably never heard of and products that are not usually visible to the public eye. On average, a good mortgage broker will have access to over 6,000 mortgage products, from a huge number of lenders.  As with everything you purchase, it’s always worth shopping around as although you might think you have a great deal with your current provider, there may be better products out there that you are missing out on.