Metro Bank Removes Restrictions and allows landlords to let their properties to tenants on benefits.
The lender has said that the change will come into effect immediately and would not enforce the existing condition to exclude tenants on benefits.
Metro joins NatWest and the Co-operative Bank in allowing tenants on benefits.
For details on the FCA go to Register Home Page (fca.org.uk)
For more details go to Brighton Mortgage Broker – The Finance House
Tesco Bank Stops offering new mortgages and is looking at options to sell on its existing mortgage portfolio.
Tesco Bank says it will consider the complete transfer of related balances and ongoing administration of relevant accounts.
The Bank, which has been issuing mortgages since 2012, currently has more than 23,000 customers with a total lending of £3.7bn.
For information on the FCA go to Register Home Page (fca.org.uk)
For more information go to Brighton Mortgage Broker – The Finance House
DON’T GET CAUGHT OUT, to avoid increasing payments, borrowers whose mortgage deals are due to expire are encouraged to act fast by seeking the advice of a mortgage adviser.
The Times recently reported that thousands of mortgage borrowers whose mortgage deals are coming to an end this month risk a sharp increase in their monthly repayments if they do not act fast. The discounted loan deals that are coming to the end are worth a total of about £22.3 billion which is double the amount of the previous month. Unless these borrowers act with speed, they will be automatically switched onto their lender’s standard variable rate (SVR) and as a result, suffer an increase in their monthly repayments, unless they decide to remortgage.
According to Moneyfacts, the average SVR is 4.24 per cent, compared with a typical remortgage deal of 1.93 per cent. If you are switched to a standard variable rate, this will have a severe impact on your monthly repayments. A homebuyer with a £400,000 mortgage on the SVR would be about £485 worse off each month, £5,796 over a year, than a homebuyer who seized the cheaper rate.
Despite homeowners having the opportunity to save themselves a lot of money, a surprisingly large number of borrowers will fail to transfer, either out of apathy or believing that SVR’s are their only option.
Those who remortgage, stand to benefit from mortgage price wars. With limited demand for mortgages, lenders are competing for a smaller number of customers which means that lenders are offering competitive product transfers to clients, who, not so long ago, would have been forced to move elsewhere to get a cheap rate when their loan terms expired.
If your mortgage deal is due to expire, we would recommend that you get in contact with us to ensure that you do not get caught out.
For information on the FCA go to Register Home Page (fca.org.uk)
For more information go to Brighton Mortgage Broker – The Finance House
01273 857024
The Times recently reported that thousands of mortgage borrowers whose mortgage deals are coming to an end this month risk a sharp increase in their monthly repayments and be Stuck on a high Rate if they do not act fast. The discounted loan deals that are coming to the end are worth a total of about £22.3 billion which is double the amount of the previous month. Unless these borrowers act with speed, they will be automatically switched onto their lender’s standard variable rate (SVR) and as a result, suffer an increase in their monthly repayments, unless they decide to remortgage.
According to Moneyfacts, the average SVR is 4.24 per cent, compared with a typical remortgage deal of 1.93 per cent. If you are switched to a standard variable rate, this will have a severe impact on your monthly repayments if you are Stuck on a high Rate. A homebuyer with a £400,000 mortgage on the SVR would be about £485 worse off each month, £5,796 over a year, than a homebuyer who seized the cheaper rate.
Despite homeowners having the opportunity to save themselves a lot of money, a surprisingly large number of borrowers will fail to transfer, either out of apathy or believing that SVR’s are their only option.
Those who remortgage, stand to benefit from mortgage price wars. With limited demand for mortgages, lenders are competing for a smaller number of customers which means that lenders are offering competitive product transfers to clients, who, not so long ago, would have been forced to move elsewhere to get a cheap rate when their loan terms expired.
If your mortgage deal is due to expire, we would recommend that you get in contact with us to ensure that you do not get caught out.
For more info go to Brighton Mortgage Broker – The Finance House
Register Home Page (fca.org.uk)
UK inflation remains at 1.9% for March, Office for National Statistics says.
Unbelievably, the number of Decrease in Poor Credit mortgages available available at the moment has gone down from 851 in October 2018 to just 590 this month, according to data from Moneyfacts.
The poor credit mortgage market is considered a specialist lending sector, so most of these mortgages are only available through Brokers. So it’s a shame that the brokers that deal with these are the ones that also charge a fee, hitting the people with the most needs even harder.
It’s refreshing to know that The Finance House not only can arrange poor credit mortgages they will also do it without charging a fee.
No more wet signatures with The Skipton Building Society. Skipton, working with Brokers have now launched a new digital signature capability – they are starting to process some of their documentation via a digital signature.
This new process means being able to sign for a document online and no longer having to print, sign and post – saving you time and effort.
The first document you’ll be able to sign digitally for is their e-declaration form.
Platform, who are the intermediary mortgage branch of The Co-operative Bank, are the latest firm to remove letting conditions and DSS conditions that stop landlords letting properties to tenants who receive housing benefit.
From the 1st April 2019, none of their mortgages will stop landlords from letting to tenants in receipt of housing benefit.
Landlords can let to tenants from April. This will also be made across all lending brands of The Co-operative Bank.
Already, NatWest has removed restrictions on buy-to-let landlords which stopped them from letting to DSS tenants.
This was probably because that in October, NatWest’s lending conditions came under fire about a case of a landlord who was refused a remortgage and threatened with revocation of the existing mortgage on the property because she was renting to a tenant in receipt of housing benefit.
The Work and Pensions Committee contacted NatWest, Co-Op and a series of other mortgage lenders including Kensington, Nationwide, Metro Bank and Precise, whether their buy-to-let mortgage policy allow landlords to let to tenants receiving any benefits including housing benefit.
Holmesdale Building Society has agreed terms to merge with Skipton, subject to approval.
The merger will probably start on the 1st October 2018 and Skipton has already received consent from the PRA to approve the proposed merger.
Holmesdale started in 1855 and has 1 branch in Reigate, employing 26 people. Holmesdale decided that “it is in the best interests of current and future members to merge with a much stronger building society able to offer more choice and value to members in the long-term”.
Skipton will keep the branch in Reigate for at least 2 years from the start of the merger, then will be subject to the Society’s ongoing branch review process. Holmesdale members will be able to transact in any branch of the enlarged Society from the merger date.
Mike Kirsch, Chief Executive of Holmesdale Building Society, said:
“We firmly believe that this proposed merger is in the best interests of our members. Without the merger we would not be able to continue to provide the same range of products or good value pricing to our members. We believe we can offer enhanced security by merging with a much stronger building society able to offer more choice and value to members in the long-term.
“A merger with Skipton will result in Holmesdale members having access to Skipton’s large national branch network, its online, post, telephone and financial advice offering, and to a broader range of attractive products and services – from the time when the merger becomes effective.”
David Cutter, Skipton’s Group Chief Executive, added: “We have always made it clear that we would consider further merger activity where it is in the best interests of our members. We look forward to welcoming Holmesdale members on board and sharing with them our full range of financial solutions to help them plan for their life ahead.”
There are just 387 properties currently for sale at £300,000 or less in London Travel Zones 1 and 2 that would be stamp duty exempt for first-time buyers, according to HouseSimple data.
Extending the search area to include Travel Zone 3, the number of stamp duty exempt properties increases to 1,235.
Not surprisingly, the Royal Borough of Kensington and Chelsea has the fewest stamp duty exempt properties, with just six, including a tiny 113 square foot studio flat, in SW5, Earls Court. The boroughs of Camden and City of Westminster, both have just 18 stamp duty exempt properties currently on the market.
First time buyers should head to the borough of Croydon for the largest number of stamp duty exempt properties on the market today. Croydon has 795 properties