I’m buying a property for the first time. How much can I borrow?
What’s the best mortgage for my circumstances?
I want to move and NOT sell my house, how can I do this?
I’m thinking about buying a property to let out
For many people their individual circumstances don’t fit the norm. In fact, everybody’s needs and situations are unique. The good news is that many lenders are aware of this and look to cater to specialist niche requirements.
We will ensure that we take time to find out about you, your plans for the future and your circumstances. Based on what we know about you, we will then research the whole market to look at how much you can borrow, the interest rates on offer and which lenders are best able to meet your needs.
When we make our recommendations to you, we will do so in a clear and straightforward way. We'll explain the overall cost of each option, what you will need to pay each month, the pros and cons of different products and how they could affect you if your circumstances were to change. We'll provide you with impartial advice about mortgage insurance. We'll help you complete your mortgage application, make sure you've got all the documentation you need in place and manage your mortgage through to completion. We'll talk to you about the longer term, about the opportunities the mortgage market could offer you and how taking an active approach to your mortgage in the future could help you realise your plans and ambitions. Once your mortgage is in place we will also provide you with a regular mortgage review, giving you the assurance that you've still got the best mortgage for your situation.
First Time Buyer
Good news for first time buyers! Many lenders have changed to their lending policies to help you take this important first step onto the property ladder.
Income multiples are becoming a thing of the past as a growing number lenders move to more sensible ways of calculating affordability. It is now possible to obtain a mortgage that may equal 5 x joint income as long as you are able to afford it.
Furthermore, there are an increasing number of 95% mortgage deals available to first time buyers. These can be particularly useful in helping you purchase your first home.
You may also wish to consider other options like shared ownership, the government's key worker scheme or a guarantor mortgage, where a parent guarantees to meet your repayments if you can't.
At GK we specialise in guiding first time buyers through the mortgage maze and house buying process. If you would like more information, please feel free to contact Gary Kenton on 01273 823100.
If you're looking for a mortgage deal because you want to move into a new home you'll probably find there's no shortage of attractive-looking deals on offer.
This is the largest area of the mortgage market and there is almost certain to be a loan that will suit your situation. However the apparent abundance of offers can be bewildering and make it difficult to know where to start.
Being confident that you have made the best choice from all the available options can take a lot of the worry out of what is said to be one of life's most stressful experiences.
We'll scour the market and find you the deals that best suit your situation: we'll look at how much you are able to borrow and give impartial advice about what rates are on offer and which lenders are best able to cater to your needs. We'll also work to ensure that your finances are in place as quickly as possible.
In recent years the remortgaging market has boomed, as savvy borrowers know that they can save money by moving their mortgage to a new lender or by renegotiating their current deal.
As the remortgaging market has developed, lenders have started to offer attractive incentives like reduced legal and arrangement fees or even no fees at all. These incentive packages are particularly attractive for borrowers with mortgages less than £150,000.
You can remortgage for other reasons: if you have owned your home for a number of years remortgaging could release equity, giving you cash for other things like home improvements and holidays. Your personal circumstances could also change: a rise in income may lead you to consider paying off your mortgage more quickly; removing or reducing uncertainty about changes to your monthly repayments could become important. Remortgaging can help here too.
As independent mortgage advisers we have access to deals from across the whole market. We will look at your current mortgage arrangements, talk through your reasons for remortgaging and identify the deals that best suit your particular circumstances. Even if your current deal carries early repayment charges remortgaging could still save you money in the long run.
We won't recommend remortgaging unless it's the most cost-effective thing for you to do. Staying with your existing lender and renegotiating your deal will not incur any of the legal expenses or other costs, so we will always consider this option when calculating what offers you the best value for money.
Buy to Let
In the last decade more and more people have got involved in the buy to let market. Property can offer a good income and is seen as a good way to finance retirement.
Interest rates are higher than for homebuyer mortgages and lenders generally require larger deposits: typically between 20-25% of the property's value.
As competition in this market has increased, choice has increased and there are lots of fixed rate, discount and other special offers available.
Lenders take different approaches when assessing buy to let mortgages but most will require the rent of the property to more than cover the mortgage. A monthly rent equivalent to 140% of the monthly mortgage payment is typical.
Higher house prices have brought lower rental yields - annual rental income expressed as a percentage of the property's value - and interest rate increases have also made life more difficult for buy to let investors.
We can source competitive buy to let mortgages both for landlords with extensive property portfolios as well as people with one rental property. We specialise in mortgages for properties with low rental yields. This kind of deal is particularly useful if you intend to renovate, with a view to increasing rental and resale value.
We help larger-scale investors by sourcing portfolio mortgages which enable financing to be spread across several properties on the basis of average rather than individual rental yield.
Changes will come into effect from 6th April 2017 which will affect the way that HMRC looks at rental income from property. This will have implications on future tax liability whcih is likely to increase.
Gary Kenton of GK Consultancy Services Ltd is not a tax adviser and is therefore not qualified to give advise on this matter. Advice in relation to current and future tax liability should be taken from an accountant or qualified tax adviser before proceeding with any buy to let mortgage.
Let to Buy
Many people now choose to let their existing property rather than sell when they move into a new home. Let to buy can bring you a range of benefits; it can be a shrewd investment and it's tax efficient too - the Inland Revenue will allow you to benefit from tax-free capital growth on both of your properties for up to two years.
What's more, let to buy can simplify the home moving process because your current property won't be involved in a chain. It's also often possible to use equity from your existing property to fund the deposit on your new home.
Many lenders offer let to buy borrowers preferential or even prime residential rates. Gary Kenton can help you find the best deals and advise you on how they compare with options that your current lender may wish to offer you.
Self Build and Renovation
Building a new home or taking on a renovation project gives you the chance to create your dream home. It can also prove to be a very shrewd investment move. You could significantly increase the value of your property and, if it's your main residence, any capital growth will be tax-free.
Financing this kind of project is easier than you might think. This is an area of the mortgage market in which some lenders specialise and you should have a range of options. With some deals it's possible to borrow up to 95% of the land and property purchase price and 100% of the development costs.
If you're buying a home in a new development, speed is usually of the essence. Property developers use incentives and deadlines to expedite sales. If you can get your financing in place quickly you could get your new home for less.
At GK we're used to reacting quickly to this kind of challenge even if your circumstances are not straightforward.
A secured loan is any loan that requires the borrower to provide the lender with some form of security. In the case of secured loans, the security will be the borrower's property, regardless of whether it is mortgaged or owned outright. Loans secured against property that is already mortgaged are known as second charges, whereas loans secured against a property owned outright with no existing mortgage in place are known as first charges.
Secured home-owner loans are available in varying amounts and for many different purposes, including debt consolidation. The amount available usually ranges from £3,000 to £50,000, although some lenders will consider lending up to £100,000. The amount borrowed is repaid monthly over a term agreed at the outset, which will usually range between three years and twenty five years.
APRC stands for Annual Percentage Rate of Charge. A lender is always required to quote the APRC when advertising a loan or borrowing rate. It is a standard interest rate calculation designed to reflect the total amount of interest that will be paid over the entire period of the loan. It must also take into account charges which the borrower has to pay in order to obtain the loan and during the loan period (such as lenders fees, valuation and legal fees etc). The purpose of APRC is to help you compare the true cost of borrowing.The amount you can borrow, the term available and the APRC will all depend upon the equity you have in your property, the lender's view of your ability to repay the loan and your personal circumstances, for example any adverse credit. The APRCs quoted by the lender will usually be typical rates, and these act as a guide only as the exact rate offered will be on an individual basis. As a general rule, it is advisable to compare the APRCs of different loans, as this is a good way to determine how competitive they are.
The lender has the added benefit of security against the property, which provides protection in the event of a customer's inability to repay. This means that persons who are self-employed or have recently changed jobs may be able take out a loan. They are also useful for larger amounts or where the applicant requires a longer repayment period.
Secured loans are now regulated under the same rules as first charge mortgages by the Financial Conduct Authority.
Please contact us for current rates.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on you remortgage. The overall cost for comparison is 7% APRC. The actual rate will depend upon your circumstances. Ask for a personal illustration. There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate that it will be £500. GK Consultancy Services Ltd is authorised and regulated by the Financial Conduct Authority. FRN 475401. Click here for our Privacy Statement.