There is good news about Mortgage Availability with Lockdown as the UK’s top lenders are reintroducing their mortgage offers, making it easier to get a home loan as lenders find ways to operate during Covid-19 lockdown.

Mortgage Availability with Lockdown, Nationwide, Halifax, Virgin and Santander have made it easier for people to qualify for a loan. This is much welcomed news for prospective buyers who have been stuck in a world of limbo. Halifax and Nationwide are both now accepting mortgage applications at 85% LTV which means that you need a 15% deposit on the deposit that you want to buy.

Virgin Money began offering purchase mortgages again, as Santander increased its maximum loan size from £300,000 to £500,000 and cut fees on its residential mortgages.

Lenders have been changing the way they operate to cope with the lockdown and are now much more reliant on their IT systems. Through the use of virtual property valuations, lenders are adjusting to lockdown restrictions which has allowed them to reopen their temporarily closed doors.
There are now an increased number of options available to you if you are looking to purchase or remortgage. With The Bank of England’s base rate at its lowest levels in history, it could be a good time for you think about your current financial arrangements. We could be able to get you a better deal with a different lender to lower your monthly mortgage payments or allow you to raise additional capital.

For more information go to Brighton Mortgage Broker – The Finance House
To check the FCA register go to Register Home Page (fca.org.uk)

In its package to help people who have had their circumstances changed as a result of Covid-19, the Chancellor announced a series of measures to alleviate the financial impact of losing a job or self-employed income including a Mortgage payment holiday.

One of these was the option to take a mortgage payment holiday. But what is it and how does it work? We’ve created a guide that explains it in more detail. The first thing to say is that calling it a holiday isn’t strictly true. The Mortgage Payment Holiday was originally designed for customers who had fallen on hard times and couldn’t afford their monthly mortgage. The Lender would talk through the customer’s circumstances and then agree, if there was a way forward, to suspend the direct debit for three months whilst the customer sorted themselves out. In the background, the lender would add the missed payments, plus the interest payable onto the mortgage and then when the payments started again, the monthly amount would be higher to take into account in the increased in the mortgage. The customer’s credit report would show three missed instalments and therefore the payment holiday would have a negative impact on the customer’s ability to obtain credit in the future certainly at high street prices.

What has changed?

To have a payment holiday under the COVID-19 measures, you don’t need to be financially distressed and the link between your payments or should we say lack of them with a credit referencing agency is broken. This means that there should be no impact on your credit score if you choose to take a holiday. Instead, your mortgage payments after the 3-month holiday will go up to make sure you repay the mortgage amount plus any interest in full.

A word of warning

If you are coming to the end of a fixed rate or other such mortgage deal, a time when your mortgage would normally drop back on to a higher rate of interest, then normally your lender would offer you another deal to encourage to keep your mortgage with them.  This is sometimes called a rate switch or product transfer and is normally a similar rate of interest to what you would be have been paying under your current deal.  However, some lenders are not in a position to offer the new lower rate if you are currently taking a payment holiday. You could attract a higher rate of interest on your outstanding loan which is then added to your mortgage and not be able to do anything about it. So, when it comes to your payment holiday, timing is everything. Of course, if you choose to take a payment holiday and then cancel your direct debit you run the risk of defaulting on your mortgage which is a risk that could damage your ability to obtain a competitively priced deal in the future.  

Talk to an expert

Taking a payment holiday is a decision which should not be taken lightly, if the implications are not understood then over time it could end up costing more money than it looked to save in the first place.  Talk to us and we can help you understand what a payment holiday means for you and when would be the right time.  And, if it’s something you still want to do, how to go about requesting a suspension of your mortgage payments from your current lender – each has their own way of doing things and different turnaround times. So, the message is simple, act if you need to, make sure your take expert advice first, and let us help today so you have the right result every time.

For more details go to Brighton Mortgage Broker – The Finance House
https://www.fca.org.uk/consumers/mortgages-coronavirus-consumers

Self Employed Income Support Scheme

The Chancellor has announced that self employed individuals who qualify will receive direct cash grants though a UK-wide scheme to help them during the coronavirus outbreak. The Chancellor has set out plans that will see those who are self-employed receive up to £2,500 per month in grants for at least 3 months. Called the Self-Employed Income Support Scheme, those who are eligible can receive a cash grant worth up to 80% of their average monthly trading profit over the last three years. It is anticipated that this will cover 95% of people who receive the majority of their income from self-employment.

Eligible people for the scheme will be able to apply directly to HMRC for the taxable grant, using a simple online form, with the cash being paid directly into people’s bank account.

The Self Employed Income Support Scheme will be open to those with a trading profit of less than £50,000 in 2018-19 or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19. To qualify, more than half of your income in these periods must come from self-employment.

To minimise fraud, only those who are already in self-employment and meet the above conditions will be eligible to apply. HMRC will identify eligible taxpayers and contact them directly with guidance on how to apply. The income support scheme, which is being designed by HMRC from scratch, will cover the three months to May. Grants will be paid in a single lump sum instalment covering all 3 months, and will start to be paid at the beginning of June.

Individuals should not contact HMRC now. HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational. Those who pay themselves a salary and dividends through their own company are not covered by the scheme but will be covered for their salary by the Coronavirus Job Retention Scheme if they are operating PAYE schemes.

Self-employed individuals can already benefit from a series of measures announced by the Chancellor to boost household incomes and will be able to access these while the new scheme is being rolled out. These include increases to Universal Credit, alongside income tax and VAT deferrals.

For more information go to Brighton Mortgage Broker – The Finance House

https://www.gov.uk/government/news/chancellor-gives-support-to-millions-of-self-employed-individuals

The Finance House has been seeking urgent clarification from the government about whether Home buying in the current climate should continue at the current time, particularly as physical property valuations are no longer possible. The government has now stated that:
1. Home buyers and renters should, as far as possible, delay moving to a new house while emergency measures are in place to fight coronavirus.
2. If moving is unavoidable for contractual reasons and the parties are unable to reach an agreement to delay, people must follow advice on social distancing to minimise the spread of the virus.
3. Anyone with symptoms, self-isolating or shielding from the virus, should follow medical advice and not move house for the time being.

Further detailed guidance about buying in the current climate is anticipated shortly, and The Finance is seeking urgent clarification from the FCA to that there are no barriers if the buyer/seller wants to go ahead.

For more information go to Brighton Mortgage Broker – The Finance House
For the FCA go to Register Home Page (fca.org.uk)

There has never been a more important time for customers to seek the advice of a Free mortgage advisor in Brighton as we start to see lenders reducing their exposure to the riskier end of the market. Those operating in the 90-95% LTV arena, Lenders offering first time landlord products and for some who operate predominantly in the self-employed market, there will be a period of re-positioning and re-pricing but of course this is where a mortgage brokers value really shines through. There are still plenty of attractive deals available and feedback from lenders who are well capitalised is that they are very open to business but can’t give advice in their branches in the current climate.

We are hearing and seeing a focus on payment holidays through email social media. What is clear, is that not all lenders have worked out how they will offer this option to customers who are in financial difficulty as a result of the Covid-19, and in what shape it will be delivered. A few are looking at moving customers to an interest-only option for a short period of time, others are looking at extending the mortgage term by 3 months, whilst the rest rely on their current terms and conditions. The challenge, breaking the relationship between a payment holiday and the system impact on your credit report. Of course a payment holiday is not free and has long term cost implications for a borrower, so the decision to take the holiday should not be taken without sound and professional advice.

One question we have been asked is “is the Insurance Industry going to follow the Lending world by introducing a three month holiday for protection premiums” and for the majority of insurers this is a no. Some are looking at the option, but this involves significant systems development and with the Prime Minister suggesting that we may have reached the peak of cases in twelve weeks, it may be that such changes are not necessary. In fact, Insurers, whilst not publicly announcing moves, are warning that anyone looking to cancel a policy and then to re-instate it once we are over the worst, they run the risk of having inferior cover put in place. This means for the sake of 3 months premiums; the policyholder could be putting the future financial security of them and their family at risk if we should ever suffer a repeat to today’s events. Anyone looking to cancel their insurance should be encouraged to think twice and perhaps prioritise the cover they have now, they might never get it again in the future.

Finally, it is worth re-iterating the Government’s message, that this situation is not like the credit crunch of 2010 where banks had little capital to lend, this is about saving the lives of the elderly and vulnerable and helping others.

https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate

Base rate

Free mortgage advisor in Brighton, go to Brighton Mortgage Broker – The Finance House

You may, or may not, have heard that The Bank of England has cut the Bank Interest Rate, March 2020 to 0.1% which is the lowest level in history.

This could be a great opportunity to review your current mortgage deal so we can get you the best arrangement for you.

In these unprecedented times, it is only natural to start to think about your current financial arrangements. As a Brighton Mortgage & Protection Adviser, I just wanted to let you know that we are here, open and have access to great technology solutions which means that we can review your finances securely without having to arrange a face to face meeting.

According to the Money Advice Service, each year one million people in the UK find themselves unable to work due to a serious illness or injury. Whether you own your own home outright, have a mortgage or are renting, the thing you will not want worry about when trying to get yourself better is finding the money to pay the bills, or to keep the lender or landlord happy by meeting their monthly direct debit. In our experience people are not always aware of what could happen if they were unable to work and many have no financial back up plans to protect them.

The most common causes of long-term work absence we know are mental health, stress, musculoskeletal injuries and acute medical conditions. But every client is different and so are their needs so that’s why we choose not to limit insurance solutions to just one provider. We have access to a wide range of insurers so we know that there is a solution to match both needs and budget. So, if you want to make sure your bills get paid when you aren’t able to work, an income protection plan is essential.

Should you have any questions about the Bank interest rate, March 2020 or anything else, we are a phone call or email away. We will continue to support you and your circumstances.

https://www.bankofengland.co.uk 
The Finance House, Independent Free Mortgage Broker

As you may have heard on the news this morning, the Bank of England base rate has been cut to 0.25%.

For about 320,000 people who are homeless in the United Kingdom, Banking for the homeless can help to claim benefits, getting wages and paying rent. Banking for the homeless has always been a problem.

Banking for the homeless

All banks require a proof of Identification and address to open a bank account. This is difficult when someone, more so when you live on the street, wants to open a bank account.

Chief Executive at Crisis, Jon Sparkes said: “It can be almost impossible to get a bank account without a fixed address and without ID, which often can be hard to keep safe and costly to replace if lost or stolen.” Banking for the homeless has always been a problem.

HSBC have joined forces with charities, including Crisis and Shelter, to offer homeless people a basic bank account that removes the need for photo identification or proof of address.

In 2018 the service started in Liverpool. So far it is going well, thirty-one branches, in the UK, have made the service live. More than eighty accounts have been opened so far. One of the first accounts was for a homeless man in Liverpool who had been homeless for about twelve years. Opening a bank account for him meant, for the 1st time in over 10 years, he could to claim benefits and is now on the housing list.

Shelter CEO, Polly Neate said “It’s hard enough if you’re homeless, living day-to-day on the streets in the freezing cold or trapped with your children in a grotty hostel.

Shelter is pleased to work with HSBC UK on this game-changing product. Having a bank account not only allows people who are homeless to receive wages and claim benefits, but it also gives them their independence back”.

Because they can use the “no fixed address” product, those who are homeless must register with charities such as Crisis or Shelter. They are then accompanied by a caseworker to one of the thirty-one participating HSBC branches to open their account.

To get bank statements and a debit card, the application forms will have the charities address. They can access the account online or over via the phone. Statements and any other relevant documents can be collectable from the charity’s office or the selected HSBC branch.

For information on shelter click here
For information on Mortgages click here

CPI inflation drops to 1.5% in October, down from 1.7% in September.

Inflation drops to 1.5%

 This is the lowest it’s been since November 2016, (according to the latest ONS statistics).

CPIH inflation, The ONS’ headline measure which includes owner occupiers’ housing costs, was also 1.5% in October, down from 1.7% the month before.

The main reason was due to electricity, gas and other fuels as a result of changes to the energy price cap.

More effects were due to furniture, household equipment/ maintenance plus recreation and culture.

For more information from the government  click here 

For more mortgage information go to Brighton Mortgage Broker – The Finance House

Many borrowers are confused about why they should remortgage, if at all.
Hopefully we can show you your options.

Research shows that there’s a lot of misinformation about How to remortgage a property, here are some of them:

• Remortgaging is a negative thing, it’s only done when you are desperate.
• It’s “embarrassing” to admit having done it.
• You only remortgage to borrow more funds.
• You must be desperate to remortgage.
• There is a limit to how many times a borrower can remortgage.
• You just remortgage to take on more debt,
• Remortgaging is only done to carry out renovations.
• People remortgage when they are failing to meet existing repayments,
• Remortgage is difficult so it’s not worth thinking about their deal every 2 years for the next 30 years.
• If you keep remortgaging, you will never pay off your debt because you start again.
• Remortgaging is expensive.

Although, in some circumstances, some of these may be relevant, they are not necessarily so.

So, lets look at the real facts about How to remortgage a Property.

• Remortgaging isn’t negative, although it may be done to help a negative problem.
• It is very common, certainly not embarrassing.
• You can re-mortgage for various reasons.
• Most people who remortgage aren’t desperate to do so.
• You can re-mortgage as many times as you want to.
• People often remortgage just to get a better rate.
• Some people remortgage to carry out home improvements, it is a cheap way to raise capital.
• Remortgaging can be one way to help improve your financial situation, speak to an advisor to review your options.
• Remortgaging can be complicated if you do it yourself as the regulations are changing all the time. A good advisor will do all the work for you.
• It is a common misconception that if you keep remortgaging you will never clear your debt. This is not true if you don’t add the debt each time.
• Remortgaging can be expensive if you get it wrong, a good broker will work out the best deal to ensure that it will save you money, or tell you not to proceed.

If you think remortgaging isn’t for you, this “switching inertia” may be costing you dearly.

Number of people on Standard Variable Rates shows their is borrower confusion

The huge number of borrowers on a higher rate than they need be shows that remortgaging is “greatly misunderstood”.

The best way to remortgage is to give yourself plenty of time before any deal is coming to an end and contact an independent, whole of market (and preferably free) mortgage broker who can demonstrate your potential savings by switching.  By starting about four months prior to your deal ending you have the best chance do let your broker do their market research, speak to the lenders, get their remortgage applied for and approved before you slip on to a costly Standard Variable Rate.

If your deal is coming to an end, contact The Finance House now on 01273 857 024, we are an independent, whole of Market, experienced and Free Mortgage Advisor (We receive a commission from the lenders).

You can check us on the Financial Conduct Authority website here.