Glimmer of Hope for First Time Buyers

First Time Buyers were given an indication this week that there may be more options available to them in the housing Market, see this article from The Guardian newspaper: https://www.theguardian.com/money/2020/dec/03/lloyds-reintroduces-10-deposit-mortgages-for-first-time-buyers

Where the focus has been on clients who have a 15% plus deposit available more recognisable names such as Halifax, Nationwide Building Society, Virgin Money, Platform Home Loans (Part of The Co-Operative Bank and Accord Mortgages (Part of the Yorkshire Building Society) have now entered the Market and are offering mortgages to First Time Buyer and Homemovers with a 10% deposit.

The Lenders offering 90% mortgages will look at cases with more scrutiny so seeking the advice of a Mortgage Broker has become more important than before.

Manchester Mortgages has been helping first time buyers for in excess of 20 years so understands the importance of getting the correct advice at the beginning of the house buying process.

We will fully assess your situation and advise what lender is able to offer you the best options for your circumstances.

As the market opens up to more first time buyers estate agents and builders will need to see you are in a position to proceed if you are successful having a offer on a property accepted.

Contact us on 0161 706 0242 and speak with one of our industry experienced advisers who can help you find the right mortgage.

PS We are also able to put you in touch with a solicitor to help you with the legal work involved.

Not Every Lender is the Same !

Arranging a Mortgage can be a stressful and time consuming process and in this article I look at the benefits of using an independent mortgage brokering service.

Lenders like Halifax, NatWest, Santander, Nationwide Building Society and Virgin Money although the interest rates may be very similar the way that they assess each application can be very different. However, these companies are not independent mortgage brokers !!

EXAMPLE. Two of the lenders will take 100% of overtime payments into account where the others may only take 50 or 60%.

Two of the lenders will take any pension contributions you may make as a credit commitment therefore reducing the amount they may lend where the three others will not.

One of the lenders will not take into consideration loan payments that have 6 months or less to run where the others will.

Three of the lender will lend even if you have been in a job one day where the others need you to be continually employed for six months.

As somebody trying to arrange a mortgage how are you expected to know this ?

Then it may be that you haven’t got a perfect credit record !

Perhaps had a County Court Judgement, Default on a loan or missed / late payments. Would any of the above lend money ?

One may the others wont.

What if you were self employed with one year accounts ? How would the lenders treat you then ?

So as you can see there are lots of different factors to take into consideration when applying for a mortgage and not all lenders are the same.

One way of finding the right mortgage is to speak with an Independent Mortgage Broker. They will be able to look at your situation and make an assessment of your circumstances and find the lender who will meet your current situation.

Manchester Mortgages has been arranging mortgages throughout Greater Manchester for over 20 years. They are an independent mortgage broker.

So whether you are a First Time Buyer, considering moving home, Remortgaging your property for a better rate or wishing to consolidate existing credit commitments to reduce your monthly outgoings our industry experienced advisers can help.

All it takes is a simple phone call to 0161 706 0242 where one of our friendly advisers can have an informal chat with you to discuss your requirements and the way forward. Manchester Mortgages are independent mortgage brokers and deal with all the lenders on the high street and specialist lenders. We work on your behalf not the lenders.

New build houses in Wythenshawe

The area of Greater Manchester known as Wythenshawe is booming. Affordable housing, with great access to the motorway network and the creation of many new jobs from the likes of Amazon and Manchester airport, mean that Wythenshawe is having a property boom.

Wythenshawe, Greater ManchesterAs an area, Wythenshawe has come a long way. 20 years ago parts of it were “no go areas”, it was run down, dilapidated and crime friendly. Now, many of the old decrepit estates of the 1950’s and 60’s have been pulled down and the whole area regenerated by building smart new houses and developments that will attract inward investment and families. One such development is this one in Newall Green, Wythenshawe.

As every house buyer is aware, the cost of housing is not cheap, and new build housing is no exception. As an added incentive (especially for families and first time buyers) to move to Wythenshawe, specialist mortgages can be arranged that offer a significantly better deal to homeowners than what is offered by the usual mortgage.

Better interest rates on mortgage repayments and fixed interest deals are two ways that people buying in Wythenshawe can take advantage of when buying a house. Interest rates are currently low, but they can’t really go any lower, so the only way is for them to rise. By fixing the interest rate of a mortgage for say 5 years, you are guaranteed to be repaying money at this low rate even when interest rates go up.

It pays to be smart with mortgages and getting the right mortgage will save you thousands of pounds over its course.

London vs North West Housing

The North West areas of Preston, Liverpool and the Wirral are popular locations for people who want to live in the north of England. But what’s is like living in the north?

Well, the cost of living is far cheaper for one. The average cost of a house in Liverpool is £107,000 (source: http://www.rightmove.co.uk/house-prices/Liverpool.html), compared with London which is £534,000 (source: http://www.rightmove.co.uk/house-prices-in-London.html). This single statistic proves that the north-south divide ridiculed as non existent by some is actually alive and kicking.

Ok, so house prices are cheaper, but wages are lower too. In this study from Manchester’s Metro newspaper we learn that London salaries are significantly higher than the rest of the country (http://metro.co.uk/2015/11/18/how-does-your-salary-compare-with-the-rest-of-the-country-5511194/). So what have Liverpool, Preston and the Wirral got going for them?

The cost of living is cheaper as well, as is the cost of motoring (no congestion charge) and the food is cheaper too. You could sell you London home for £500,000 and move to a 4 bedroom detached in Liverpool for £140,000, thus netting £340,000 cash in part of your move. If you look after your money that will keep you going for a good while.

It’s similarly far easier to get a mortgage broker to find you a decent mortgage when there aren’t such large sums of money involved. Mortgage advice and mortgage brokers practice an art of finding you the best mortgage for your requirements. They do this by speaking to all the mortgage lenders who provide mortgages that are suitable to your requirements. Don’t arrange your own mortgage, it’s not worth it as you’ll lose out financially. It’s far cheaper for you to arrange your mortgage through a mortgage broker, and their fee are usually absorbed by the mortgaging company too which means that the cost to you is transparent.

So have a read through the posts on this site, there’s lots about mortgages, housing and brokering in the north west. If you want any advice please get in touch with us.

Mortgages in Halifax and Huddersfield

In this interesting article from the Huddersfield Examiner it seems that both Halifax and Hudderfield are vying for a spot on the new Pennine edition of the popular board game Monopoly.

Huddersfield monopoly - housing mortgages

Most of us know what the game Monopoly is, where you move around a board, buying up property that you can then build houses and eventually hotels on. Doing this increases the rateable value of the land you bought. And you charge people when the land on your property, so the more houses the better.

Hudderfield is in West Yorkshire and has many outlying areas such as Longwood and Meltham. Halifax is smaller but popular housing areas like Todmorden and Ripponden are also close by.

Of course for most people buying a house in Halifax or Huddersfield, one of the most important things is to secure a mortgage, which is used to buy the house. Looking across the both areas, I notice that Manchester Mortgages have introduced a new mortgage brokering service in both Halifax and Huddersfield at http://manchestermortgages.co.uk/halifax-mortgage-broker-advisor/.

Getting the right mortgage is of course essential, as getting the wrong one – one with a higher interest rate and restrictive clauses such as not being able to make early repayments back on the mortgage should be avoided. I worked out that getting a 25 year mortgage in either Huddersfield or Halifax can cost you over £25,000 that you could avoid if you shop smart and get the right mortgage. I recommend you take a look at Manchester Mortgage’s new Huddersfield and Halifax brokering service – it should save you money.

Buying a house in Chatburn and Clitheroe

It was during this delightful walk between Chatburn and Grindleton in Lancashire that I started to think how nice it would be to live in an area of Lancashire such as this.

Chatburn today

Most of us find ourselves confined to the urban sprawl of places and districts such as Bolton and Preston, but the towns and villages such as Clitheroe and the Trough of Bowland are absolutely delightful – quite, peaceful and rural. Ideal if you want to get away from the rat race.

clitheroeOne only has to spend 30 minutes in the open spaces of Clitheroe, Chatburn or other similar villages to start to feel a sense of rejuvenation and reconnection to the earth. It’s probably one of the reasons that both places are tourist attractions for walking enthusiasts.

For those wanting to buy a house in Chatburn, Bowland or Clitheroe, I recommend you try the online agencies to see what sort of the properties are available and what prices you can afford, as for getting a mortgage, my advice is to chose a mortgage broker / adviser who is familiar with the area and who can offer you a wide range of mortgages – take a look at the homepage of this site (http://www.mortgagebrokeradvice.co.uk/) for recommendations.

Right, time to get back to my walk!

Buying a house in Rossendale

I’ve recently been in the Rawtenstall area of Rossendale Valley. The Rossendale Valley is an area of Lancashire that contains the towns of Rawtenstall, Bacup and Haslingden. It’s quite well connected from a travel point of view – from Haslingden you can take the Grane Road across to the M65 and Blackburn, and from Rawtenstall you can take the M66 to Bury and then pick up the M66 / M60 motorway network that can take you into Manchester and Bolton.

Rossendale Valley - photo

House prices and the availability of mortgage brokers vary considerably: on the Haslingden border is Helmshore which itself starts going upmarket. Continue on through Helmshore and you’ll get to Ramsbottom and Holcombe Village which have some of the most exclusive houses in the Rossendale Valley.

One of the estate agents currently doing businesses in buying and selling homes in Rossendale is Farrow and Farrow (https://www.farrowfarrow.co.uk/) who have a wide selection of property available throughout the Rossendale area.

For those not wishing to buy a house, renting is a big option these days and there are lots of properties available throughout Rossendale to let.

From experience once you’ve chosen where you want to live the next step is to find a mortgage broker who can get you the mortgage you want. Many people don’t put that much effort into this, but getting the right mortgage advisor who can broker you a mortgage deal can save you thousands of pounds. Personal recommendation speaks a lot and without hesitation my recommendation for people looking for a mortgage would be http://manchestermortgages.co.uk/. Based near the Rossendale Valley they have never let me down and have been brokering mortgages throughout Manchester for over 20 years.

It’s not just house buyers who use mortgage brokers either. People looking to remortgage, buy to let or let to buy will also benefit from using a good broker.

Mortgage Brokering in Bolton

Bolton is a city in Greater Manchester in the north west of England. For anyone who knows the area of Bolton, it has rich parts and poor parts. Similarly, houses and house prices vary considerably as do mortgages for various areas of Bolton.

For example, a mortgage broker who specialises in the richer parts of Bolton such as Egerton and Edgeworth is unlikely to be dealing into mortgages for properties in areas such as Breightmet and Failsworth.

map of Bolton

Similarly, depending on the value of the property a person wishes to buy, the interest rate on the money you want to borrow is dependent on the sum. For example, a loan arranged by a mortgage broker in Edgeworth or Egerton area of Bolton will have an interest rate of around 1.99% per annum. A loan for a mortgage for about £80,000 in Failsworth or Breightmet will probably be loaned on an interest rate of about 2.49%. This is a significant point that will make a considerable different to anybody using a mortgage broker to buy a house throughout Bolton.

With the Bank of England looking to raise the base rate shortly, now is a good time to get a mortgage for a property, before the interest rate rises take hold. Many mortgage brokers will be able to secure either a 2 or 5 year deal with a fixed interest rate. This information should be of interest to all mortgage holders who are looking to buy in Bolton.

If we asked the following questions, would you know the answers?

MORTGAGE

  • Who is your mortgage lender?
  • What interest rate you are paying?
  • What is the current mortgage amount outstanding?
  • How much per month are your mortgage payments?
  • Are you in a fixed rate – if so when does it end?
  • What rate will your mortgage revert to after any current deals ends?
  • What will your new mortgage payments be per month?
  • Are you paying your lender’s standard variable rate?
  • The current value of your house?

Once your current rate ends unless you review your mortgage you will revert to your lender’s Standard Variable Rate ( SVR ) – dependent on lender this could mean a rate of anywhere between 3% and 6% .

If looking to change lender ( re-mortgage ) you need to be reviewing your mortgage 3 months before your current deal ends as with re-mortgage solicitors have to be involved in the process which sometimes can delay matters.

asking a question

PROTECTING YOUR INCOME

  • If employed how much & for how long will your employer pay you if off work?
  • If self employed – do you have any cover in place to protect your income if off work?
  • If your income stopped due to accident or illness how would you be able to pay your monthly mortgage and bills and maintain your ( and if applicable your family ) lifestyle?

LIFE COVER / CRITICAL ILLNESS

  • If you died how much life cover do you have – would it repay your mortgage?
  • If you had a critical illness such as a Heart Attack or suffered a Cancer have you cover which would pay out for a second opinion and access to treatment by the best doctors in the world?
  • Do you have any policies which offer cover / treatment for your children in the event of them suffering a critical illness?
  • Time flies by and peoples circumstances change – it maybe that when you last took out your existing cover you were young, free & single – but now you are married / living with your partner and have children and a bigger mortgage !
  • Life companies now offer much more by way of benefits and flexibility in their policies – Manchester Mortgages can review your existing policies and advise on the best way to provide the cover you need to suit your present circumstances.

CONCLUSION

If you’re being honest you most probably knew a few of answers straight away such as your mortgage lender and how much your mortgage payments currently are – the rest maybe not.

Help the seller has died!

What happens when you are looking to buy a house but the person you are buying it from suddenly dies?

This is a question that not many of us encounter but some of us will, so it’s worth investigating in further detail.

buying a houseFirst of all, it’s necessary to look at who owns the home? Did the deceased person own it outright or was the mortgage shared? If they owned the home outright then the ownership of the home passed to whoever inherits it in the will. Also, is there any outstanding money left to pay the bank or building society in the form of a mortgage?

None of these matters are your direct concern obviously, but they will have a knock on effect: the sale of the house will be delayed significantly whilst the Will is read and acted on.

It could be that if the house was in joint names then the remaining party may no longer wish to sell the house meaning that the sale will fall through. Should ownership of the house pass to another person you may find that they are keen to sell it and wish to progress with the sale ASAP. This is often good news for the homebuyer, but sometimes, the superstitious amongst us will not like the thought of buying a house in which someone has died.

If contracts have been exchanged prior to the death then usually the house sale will progress, but if not you can expect lengthy delays. For those readers interested to know more on the subject of house buying where the seller dies, you can read this useful post: https://www.co-oplegalservices.co.uk/media-centre/articles-sept-dec-2016/what-happens-when-someone-selling-a-property-dies/