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.

Who knows best when selling a house?

My wife & I have lived in our bungalow in Manchester for the last 10 years and as our years progress we decided on one last move – more over my wife decided on one last move !

When we bought our bungalow back in 2010 for £132,000 it was in a sorry state as the previous owners had decided that the sunny shores of Crete were much appealing than rainy Manchester and had done a flit leaving the property which eventually was repossessed some 9 months or so later meaning the property had been empty and uncared for during this time.

We were in the lucky position of being able to buy the property without having to sell our existing home

and this meant we could lavish lots of love and attention on it without having to live there and also live through the day to day mess caused by the team of builders who basically ripped it apart and started again.

The end result was a modern two bedroomed detached bungalow with the advantage a large 30 feet by 10 feet kitchen diner with patio doors thanks to the refurbishment of the existing space provided by what was the old garage.

All the above did not come cheap – fifty thousand pounds plus to be precise.

Once all of the above improvements had been completed we moved in.

In 2018 we had a revamp of the property replacing the roof, turning some additional space at the rear of the kitchen into a utility room, sorted out a damp wall problem in the main bedroom, redecorated throughout and changed all the internal doors to nice oak ones, new carpets and extended the front porch slightly which tied in nicely with the new roof and another twenty thousand had been spent.

In 2019 my wife had seen a bungalow come up for sale which was off one of her all time favourite roads in Heald Green and we ended up going to view it – it was very run down but it also had a large rear garden which my wife was looking for as she is a keen gardener and wanted a new challenge for her green fingers !

It took until June 2020 before we eventually got the keys mainly because the owner was elderly and it took him a long time to agree a price, find a property and of course COVID-19 came along and house moves were not allowed for a period of a few months.

Again we were in the fortunate position of not having to sell our existing property before buying this one.

So we now are in the position to sell our existing our existing property and I contacted a few local Estate,

Agents to come and value the bungalow – the prices were all around the same mark of £265,000 which we considered low so we discussed the figures more with the Agent we had decided to use and they said try £275,000.

Even at £275,000 we thought this was still low and left things a couple of weeks until the new property purchase had completed.

When we were ready we advised the Estate Agent we were ready to put the property on the market and wanted to put in on at £295,000 which they did on the basis we could always accept a reduced offer or reduce the purchase price in the future.

Our existing bungalow went on the market on a Tuesday and we got three separate couples viewing – one on the Thursday followed by another viewing on the Friday and the third on the Saturday.

All the people who viewed offered – two at £290,000 and one at £295,000.

We accepted the offer at £295,000 as these people had sold their property and were in the best position to proceed.

So much for the Estate Agents who valued the property at £265.000 to £275,000 – we ended up obtaining the asking price and receiving £30,000 more than the lowest valuation.

The moral of the story – go with your instinct !

RE-MORTGAGE SAVES EXISTING MANCHESTER MORTGAGES CLIENTS £516 PER MONTH

CLIENTS SITUATION

Manchester Mortgages contacted one of their existing mortgage clients to review their mortgage and existing credit commitments.

The clients were both in their late 20’s, married with no children, employed as Teachers with a joint income of £65,000 per year.

Their property was in Didsbury and was worth £205,000 with an existing repayment mortgage with Virgin Money which had £165,000 outstanding with 33 years remaining – their existing fixed rate of 3.94% which Manchester Mortgages had originally arranged was due to expire in a couple of months and they were paying mortgage payments of £710 per month.

They had purchased their property two years ago and had utilised their credit cards to pay for home improvements including a new kitchen & bathroom, up graded the electrics and decoration – their credit card balances now stood at £18,000 which were costing £500 per month in payments.

Including the mortgage the cost for all of the above was £1,210 per month and in total they owed £183,000.

Clients were looking to reduce their outgoings to around £700 per month.

All payments were up to date with no payments missed.

The credit card balances were not reducing as the payments mainly covered interest with very little capital repayment.

THE PROBLEM

Clients were left in a position every month of seeing their monthly salary credited to their bank account only to see it go out as the above payments went out along with daily living expenses.

The credit card balances left the client feeling that they were working just to pay the credit card bills and meant that they could not afford to finish the jobs they wanted to on the house.

A new unsecured personal loan would only be repayable over a maximum 7 year period which meant that any new loan payments was outside clients budget.

Clients wanted to repay all the above debt and consolidate it to one payment so they could then see what was left in their bank account each month and budget accordingly.

Clients wished to keep their mortgage over the remaining term of 33 years.

THE SOLUTION

As Manchester Mortgages are a whole of market / independent broker we were able to research the mortgage market and recommended that clients re-mortgaged to a new lender and increase their mortgage to £183,000 which included repaying existing mortgage and all their existing credit card balances.

After fully discussing clients requirements Manchester Mortgages recommended a 2 year fixed rate at 2.66% with Accord Mortgages over 33 years which reduced the mortgage payments to £694 per month – a whooping reduction of outgoings of £516 per month.

The lender offered a free standard valuation and free legal fees via their nominated solicitor along with no arrangement fees.

Therefore clients now have only one payment per month and do not have to worry about credit card payments and know exactly where they are up to with their finances – Manchester Mortgages also reviewed their clients mortgage protection and income protection and clients took our advice and upgraded their cover which was easily afforded due to the above monthly savings.

THE DISCLAIMER

Clients were made fully aware of the implications of transferring short term loans to long term commitments and although they were reducing their immediate outgoings over the existing mortgage term, in the longer term the total charge for credit was likely to be higher.

In addition by transferring unsecured borrowing ( credit cards ) on to a secured basis they were potentially placing their home at a greater risk in the event of mortgage payments not being maintained for the term of the mortgage.

CONCLUSION

With their mortgage payments reduced clients are seeing the benefit of their £516 per month savings and are now enjoying completing their final odd jobs around the house.

If you have an existing mortgage and outstanding loans or credit card balances or wish to improve your property give MANCHESTER MORTGAGES a call on 0161 706 0242 to see if we can make a difference to your mortgage payments.

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.

What mortgage options exist for first time buyers?

With house prices continuing to rise it is becoming more and more difficult for First Time Buyers to get on the property ladder.

A lot of first time buyers are now turning to the Bank of MUM & DAD for help or Grand Parents.

They are normally in a position to provide their Children / Grand Children with a deposit but are asked to confirm that they will not have a financial interest in the property.

first time buyers signSo that money has to be a non repayable gift.

Below is an option potentially available

Example:

The Property is Valued at £150,000. First Time buyers borrow 100% of the purchase price (£150,000)

The Lender applies an interest rate fixed for 3 Years over the mortgage term 25 years (maximum).

The Parents / Grand Parents or other Helper place 10% of the purchase price (£15,000) into a Bank Account for the first three years of the mortgage. This account is an interesting bearing account.

At the end of the three years the money is returned to the Parent(s) / Grand Parent (s) or other Helper(s) with interest as long the mortgage payments have been made on time and in full.

The Mortgage then reverts to a Tracker rate with no penalties meaning that you are free to look at what other options are available to you (This would be dependent upon the Value of the property at that time and your financial circumstances).

The Benefit to the person placing the deposit into the account is that they are not considered to be guarantors and the buyers have full ownership of the property at all times.

This is a alternative option available and but as is the case with all mortgages you will meet the full application criteria which will include details of income, details of any outstanding credit commitments and you have to have a clear credit profile.

So what will the mortgage payments be ?

So based on a Purchase Price of £150,000 and a mortgage loan of £150,000 over 25 years and a current fixed rate of 2.95%

The Monthly Mortgage payment would be £707.42.

At the time of writing this article the Lender will provide you with a FREE mortgage valuation of the property along with no lenders arrangement /booking fee.

It is advisable that all parties take independent legal advice.

Manchester Mortgages have been providing mortgage advice to clients for 18 years and are now arranging mortgages for our original clients children and we are able to provide solutions to most situations.

Didsbury, Withington, Wythenshawe Mortgage Broker

Manchester Mortgages, the popular Manchester based mortgage brokering service is about to open new locations in Prestwich, Wythenshawe, Withington, Didsbury and Bury.

Those people wanting a mortgage service in south Manchester will be be pleased to find Manchester Mortgages will now be providing them an excellent advisory service for people wanting new mortgages, remortgages or just any form of adjustment to their mortgages in general.

wythenshawemortgagebrokerSouth Manchester is currently experiencing a mortgage boom with many new mortgage deals being completed every week. According to Alan Dee, one of the partners at Manchester Mortgages, the number of applicants for mortgages in the areas of Disdbury and Withington is growing all the time, and has doubled over the last 5 years. These impressive figures are however dwarfed by mortgage brokering applications in Wythenshawe, which due to the Manchester Airport development over the next 5 years, has become a boom area.

Prestwich and Bury lie on the other side of Manchester and are also very desirable areas to live, boasting good motorway access and high areas of green belt land that is attractive to home buyers.

Link: Get a downloadable map of South Manchester here – ideal for know the areas covered by Manchester Mortgages.

Homes in Manchester City Centre

There’s a lot of new building and housing developments underway in Manchester City Centre as anyone who has driven through it or works there will tell you. This is not surprising with house prices in London being ridiculously expensive that most people can no longer afford to live there.

So Manchester therefore looks very attractive, and you only have to go along to Piccadilly Station in the morning to see all the commuters who each day travel to and from London for work. Some would say this is quite a good idea really as you can get a lot of work done in the train.

Manchester city centre mortgage broker

As so many people are wanting to live in Manchester there is a lot on new build housing being built (see http://www.rightmove.co.uk/new-homes-for-sale/Manchester-City-Centre.html). Mortgage brokers in Manchester have been very impressed with the new housing developments around the Manchester City football ground (see my earlier post here).

Prices in the centre of Manchester are more expensive than areas outside, but this is to me expected, getting yourself a decent mortgage advisor is then next crucial step – as I repeatedly say, DON’T use a high street broker – their deals are rubbish, use and independent mortgage advisor and you WILL save yourself thousands of pounds throughout the duration of your mortgage.

Buying a house close to the Etihad Stadium

Manchester City’s ground is located in what is known as the Etihad Campus which contains the stadium, various training facilities and other related amenities. The owners of Manchester City have put a lot of money into both the club and the city in general. The surrounding areas of Miles Platting , Clayton, New Islington and Bradford / Beswick had all benefit from substantial regeneration and many old and run down buildings have been pulled down and new houses built on the land. Buying a house close the Man City ground is a dream for many die hard City fans and there are plenty available.

Manchester City groundA number of new build flats are for sale in the M11 area of Manchester close to the Manchester City ground (see this link) and at reasonable prices too. Homes buyers can also benefit by getting themselves a great mortgage through companies like Manchester Mortgages, whose main broker for the area, Andrew Butterworth is a life long City fan and season ticket holder.

According to Andy, if you’re looking to buy a house close to the ground, or in the areas of Clayton, Miles Platting and Beswick, good advice is to stay away from the high street mortgage lenders. The reason is that they’ll only tell you about the mortgages available from them. Manchester Mortgages will tell you about the different mortgages available from every lender. Over the duration of a mortgage, their advice will often save clients over £10,000.

There are a number of different properties available close to the Etihad, and the area is ideal for first time buyers, remortgages, home movers, or buy to let agents.

Manchester City fans should contact Andrew at Manchester Mortgages on 0161 706 0242.

Tameside Mortgages

Those of you considering buying a house in the Tameside area of Greater Manchester should consider some local Manchester mortgage brokers rather than the high street options according to Ashton under Lyne councillor David Matthews.

ashton under lyne

“Ashton and Stalybridge have some great houses available to buy, but people are telling me they are finding it difficult to get a mortgage.”

Fortunately the answer is simple, Google something like “Manchester mortgage broker” and you’ll find several companies who will be able to help you find the mortgage you need.

Tameside, containing the areas of Ashton, Dukinfield and Stalybridge has long been a popular area of Greater Manchester for people to live in, and looking at the Rightmove web site for Stalybridge (http://www.rightmove.co.uk/property-for-sale/Stalybridge.html) there are a lot of decent houses on the market.

However, echoing Ashton councillor Matthew’s statement, with house prices this high, getting a mortgage can prove difficult for some people. Most of us see renting a property as “dead money” because the money goes to someone else and you never get to actually own your own home. Most people want to go down the buying route of home ownership so after their mortgage is paid off, they have an asset that they can use as leverage to buy something else, or have a nice nest egg for when they retire etc.

When you get a mortgage always do the maths and work out how much it’s going to cost you over it’s duration. Critical figures are the interest rate of your mortgage and and fixed terms that apply to it. With the feeling that mortgage interest rates will rise over the next few years, it may be a savvy idea to get a mortgage broker who secures you a mortgage where interest rates are fixed for a number of years. This means you will beat any rate rises during this time.

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.