Bad Credit Mortgage

Bad Credit Mortgage- Everything You Need to Know 

Are you looking for a mortgage and yet you have bad credit  We specialise in helping those with  credit issues get mortgages. We know that there are certain  lenders that can help you. Now With regards to a bad credit mortgage, banks and building societies can behave cautiously towards the person they will lend. Those specific moneylenders only want to deal with individuals who have flawless financial records, culminate work records and large deposits. Anyhow, at apple finance we live in reality. We understand that money-related challenges can influence almost everybody whenever and often with very little warning but the financial consequences can be addressed and there are financial solutions.

Country Court Judgment’s

Having Defaults, County Court Judgment’s (CCJ’s), a home repossessed or a previous Bankruptcy can make it hard to find a mortgage product.

Sometimes individuals get into the debt because of the financial decisions that they have made, others ended up in debt despite their best attempts to remain financially stable. Regardless of whether they have been at fault, it’s the only right that they need to get back on the property ladder.

They might be looking for new remortgage deal which may save them money or could possibly reduce their monthly outgoings regardless of whether they do have a low credit rating or adverse credit.

Apple Finance

Fortunately, at Apple finance this is what we specialise in finding the correct lender for your circumstances. In spite of the fact that the lion’s share of High St banks and building society’s need you to have an immaculate record of loan repayment, it’s invigorating to realise that there is an increasing number of banks and building society’s returning into the market who will give adverse credit mortgages and finance again. Interest costs and mortgage rates are probably not going to match exactly with the high street lenders they will charge more however it is a route back into mainstream mortgage finance

Interest Rate Cost

The banks and building society’s will always keep a level of partition between their standard mortgage products and their adverse financial loans and mortgages. There are mortgages which in effect are credit improvement loans, if you keep up with the correct payments on time the lender will consider lowering the interest rate closer to a high street bank mortgage rate. Over a period of time, subject to your credit rating it may be possible to switch to standard mortgage product if you meet the lenders criteria. Of course it is the lender who decides the level of risk and they will set the interest rate and the mortgage product accordingly. They will of course assess your situation and check your credit file and make a decision not everyone is successful and obtains a mortgage. What we will do is keep you up to date with the mortgage case and let you know what is happening. So you will know where you stand and the steps that need to be taken to obtain a mortgage or improve your current situation and apply in two months time when your credit score has improved.

Complete the enquiry form and a local mortgage advisor will contact you to discuss your circumstances at a convenient time for you. Or speak direct to one of our mortgage advisors on 01902 213201

8am-8pm Monday to Friday.

Landlords in Wolverhampton should tread carefully when diversifying

There’s little question the shape of the landlord market is changing. Regulation and taxation changes have seen it move away from the dinner party landlords with one or two properties to those with much more comprehensive investment portfolios.

With that change has come a change in attitude, viewing property in more classical investment terms, and that means looking at ways to diversify. When it comes to investing, no matter whether you are putting your money into stocks and shares or bricks and mortar, diversification is a fundamental strategy. Spreading the risk across different investment properties is a smart move. Even if you encounter issues with one property, the performance of the other properties can help limit the effects, and leave you in a stronger position than putting all of your eggs into just one or two baskets.

From the professional landlords we deal with, we have seen these diversification strategies take a couple of different forms. The first is simply a geographical one; landlords are well aware there are significantly higher yields in certain areas outside of London and the South East. As the latest LendInvest Buy-to-Let Index shows, cities like Wolverhampton, Birmingham and Manchester are all delivering terrific returns to wily landlords. The other tactic has been to look to other asset classes within property, for example by investing in Houses in Multiple Occupation (HMOs) and semi-commercial properties.

With semi-commercial buildings investors have been particularly attracted by the fact that they can avoid the additional 3% stamp duty surcharge normally levied on investment properties. Meanwhile, HMOs have won favour because of the higher rental yields often available. Looking beyond traditional residential properties is a good idea for many investors. Permitted development rights have made it more straightforward to turn disused commercial properties into residential ones, homes that are badly needed to meet demand, while the economics of HMOs will always catch the eye. However, diversification is not as simple as merely buying a property in Wolverhampton or snapping up a nice-looking HMO that happens to be available.

With geographical diversification, landlords need to think long and hard about the logistics. Who is going to handle the management of that property? It’s one thing to take a hands-on role if you have a cluster of local properties, but once you become a cross-country landlord you then need to place your faith in others to maintain the standards you have set. Similarly, finding the right property will take detailed research. Yes,  Wolverhampton may be performing well on the whole, but there’s more to it than that. Which particular areas in the city are delivering the strongest and most reliable returns, and why?

HMOs for example are a much different proposition to a vanilla rental property, even though you are still only looking for typical residential tenants. Landlords need to organise a licence for example, while the fact that different regions have their own rules covering the expectations that a landlord must live up to means investors will need to put time aside to discuss those rules with the local authority’s HMO officer. Similarly, while investing in a semi-commercial property may have certain tax benefits compared to a traditional rental home, it isn’t short of additional logistical hurdles, not least how to go about finding an appropriate commercial tenant. Diversification will remain a crucial strategy for landlords and moving beyond purely vanilla residential investment properties can be a sound and lucrative method for doing so. But it remains vital that investors and their advisers look beyond the talk of large yields and tax benefits to truly get to grips with what they are investing in from the outset, if you need help or advice contact Apple Finance on 01902 213201

 

 

 

Is it really harder for young people in Wolverhampton to buy a home

The Resolution Foundation has called for 25-year-olds to be paid £10,000 to help them afford homes, saying the ‘generational contract’ between young and old has broken down. But is it really harder for young people to buy a home now than it was 30 years ago? House prices were booming in the first half of 1988, when a typical first-time buyer home could cost £50,000. That same property now, according to the Halifax UK House Price Index, would cost £234,850. Since 1988, the Retail Prices Index has increased 2.7 times, according to the ONS, so, in real terms, £50,000 in 1988 is now worth £135,000 – making it harder to afford a deposit.

As regards mortgage repayments, a typical rate in 1988 was ten per cent (two per cent above the Bank of England base rate). Fixed rate mortgages were not generally available. So, the annual repayments on a £50,000 mortgage would have cost £5,000 – or £13,500 in today’s money. Today, it is possible to obtain a two year fixed-rate mortgage at 1.5 per cent, reverting to a variable rate of four per cent after two years. Annual repayments on a £234,850 mortgage are, respectively, £3522 and £9394.

In other words, it is harder for 25 year olds to save up a deposit and persuade a bank to advance them a mortgage, but if they can get over that hurdle they will find the mortgage repayments much cheaper than their parents did.

If you need help or advice call Apple Finance on  01902 213201

Halifax dismisses fears of housing dip

The Halifax says it still expects annual price inflation of up to 3% despite biggest monthly drop since 2010

Britain’s biggest mortgage lender has dismissed fears that the UK housing market is heading for a crash despite posting news of the biggest monthly drop in prices since shortly after David Cameron became prime minister. Reporting on a month that traditionally marks the start of the spring house-buying season, Halifax said prices were down 3.1%, the steepest fall since September 2010.  The decline – which followed a 1.6% rise in March – meant the cost of the average home in the UK was cut by £7,140 to £220,962. Over the latest quarter – considered a better guide to the underlying trend – prices were 0.1% lower than in the previous three months.

Russell Galley, Halifax’s managing director, said demand for property had been weak in recent months. However, he still expected annual house price inflation to be between zero and 3% this year. In the three months to April, prices were up 2.2% on February to April 2017, down from 2.7% in the three months to March. Previous sustained falls in house prices have tended to occur only when rising unemployment forces people to sell their homes, but Galley said the UK jobs’ market remained strong. Unemployment is at its lowest level since 1975 and real wage growth has resumed.

Values dipped across the UK for the third quarter in a row, falling 0.1% between February and April, compared with declines of 0.1% and 0.7% in the two previous three-month periods, according to Halifax. The lender said both the quarterly and annual rates had fallen since reaching a peak last autumn. City analysts say the monthly Halifax figures tend to be more volatile than other surveys. House prices have been falling in London for some time, especially in wealthier areas, while values in areas outside the capital are still rising. Recent regional figures from Halifax showed the price of a typical house in London was £430,749 between January and March, the lowest since the end of 2015.

“More recently, activity and listings have picked up but we are finding the market still quite sensitive and only those prepared to negotiate hard are moving on.” Samuel Tombs, the chief UK economist at Pantheon Macroeconomics, said: “Looking ahead, consumers’ low confidence and modest rises in mortgage rates suggest that demand will continue to weaken. “Prices will fall rapidly, though, only when a large proportion of homeowners are forced to sell up. With unemployment and borrowing costs low and credit freely available, few people are being forced to sell their homes quickly. A period of broadly flat house prices, therefore, remains the most likely outcome.”

Apple Finance are happy to give free mortgage advice please give us a call on     01902 213201

The Mortgage Prisoners of Wolverhampton

Tens of thousands of British homeowners are trapped in expensive mortgages which they took out before the financial crisis because of new rules stopping them moving to better value loans.

There are 30,000 such “mortgage prisoners”, the Financial Conduct Authority (FCA) revealed, who, thanks to low interest rates, could each save thousands of pounds in repayments each year – if only they could remortgage.

The City watchdog is looking for ways to help these borrowers, who are all up to date on their mortgage payments, but it is difficult without undermining its own rules.

A key problem is that tougher affordability tests now apply to new loan applicants.

This means that someone who qualified for a loan in 2008 might not do so now, leaving them trapped in a position where they are paying for an expensive loan, but deemed unable to afford a new, cheaper loan.

Around 10,000 of these prisoners hold loans with active lenders, so the FCA is looking at a voluntary arrangement under which it asks their current current bank or building society to switch them on to a new deal.

However, the remaining 20,000 are with finance firms that do not issue new loans, such as Northern Rock or Bradford and Bingley, because their mortgage books were sold off to investors after the crisis.

The danger now is that those on standard variable rates will suffer when interest rates rise.

“There’s a mortgage ticking time bomb in the UK. Standard mortgage rates are soaring way above the UK base rates and if interest rates rise there is a huge risk of arrears and repossessions. This needs to be prevented,” said Martin Lewis from Money Saving Expert.

“The FCA is suggesting a possible voluntary agreement with the lenders – if that will work, great. If not, then it needs to force them.”

One group that is particularly affected is interest-only mortgage borrowers. Interest-only mortgages were popular before the financial crisis but banks typically ditched them afterwards because they relied on rising house values to keep borrowers from getting into negative equity.

As a result, these borrowers have struggled to switch onto new products as interest-only loans have been hard to find.

Bank of England data do, however, suggest things might be improving: there was a 45pc rise in the volume of interest-only lending in the third quarter of last year, compared with a year earlier. This indicates there are increasing options for this class of mortgage prisoner.

Borrowers are shopping around – but some still lose out

Overall, the mortgage market is working well, the FCA added, as most borrowers do shop around for a good deal, and then shop around again when any fixed-term offer comes to an end.

Those who don’t search the market for the best deal are together missing out on as much as £1bn of savings per year.

The FCA found 120,000 borrowers who are not ‘prisoners’ and would be able to get a better deal, but have still not switched away from old loans with non-lending finance companies.

In addition to these, around 800,000 other mortgage borrowers have moved off the original deal they signed up for but are still not on the cheapest loans available.

They could save around £1,000 each per year, the FCA estimates – meaning there are almost £1bn of annual savings available, if borrowers shopped around more actively.

The regulator is also looking at other ways to improve the mortgage market. It wants to make it easier for customers to compare mortgage products and to find out if they are eligible for them. It is also building a scorecard to rate mortgage brokers.

Rate rises are important to many in Wolverhampton and the West Midlands

A rate rise could have a substantial impact on both, potentially driving down the value of the home while increasing mortgage costs. The next UK interest rate announcement will be made on 10 May 2018.

The Bank of England (BoE) is trying to raise interest rates, but with the economy slowing and Brexit on the horizon the chances of rates rising sooner rather than later have fallen significantly.

The market is now pricing in a 17 per cent chance of a rate rise in May, having been at 100 per cent on 29 March 2018, after recent data pointed to a more buoyant economic outlook.

Continue reading “Rate rises are important to many in Wolverhampton and the West Midlands”

House price growth increases to 2.6% in the Wolverhampton area

Wolverhampton mortgage experts

Annual house price growth increased by 0.5% to 2.6% in April 2018, Nationwide’s House Price Index has revealed.

This represented an increase from 2.1% in the year to March, after prices increased by 0.2% from March to April.

Robert Gardner, Nationwide’s chief economist, said: “In recent years, we have seen a recovery in first time buyer transactions, which are now broadly in line with pre-crisis levels.

Principality to launch into Help to Buy in England

“The easing in credit availability, including schemes such as Help to Buy, have helped boost activity.

“Meanwhile, home mover activity has remained relatively subdued, in part due to the lack of stock on the market.

“Buy-to-let purchases have fallen as a share of total transactions since 2016, which reflects a softening in demand following tax changes and changes in underwriting standards.”

Craig Hall, new build manager at Legal & General Mortgage Club, said: “There is a good deal for first-time buyers to cheer about in the housing market right now.

“Property prices are now rising at much healthier levels, while mortgage rates are still competitive and support from various schemes such as Help to Buy remains on hand to help buyers onto the housing ladder.

“However, we cannot forget that there are buyers out there who are still finding it difficult to take their first step, and for these individuals speaking to a broker can make a big difference.

“Whether it’s raising awareness about schemes like shared ownership or providing access lenders that are willing to meet their needs, advisers can play a crucial role supporting borrowers to find their route to homeownership.”

But Jeff Knight, director of marketing at Foundation Home Loans, felt affordability was still a problem for first and second-time buyers.

He said: “Cities in the North of England are experiencing sustained price growth, adding to the already substantial challenge facing those looking to get one foot on the property ladder and pinning their hopes on a home outside the capital.

“Even with stamp duty cuts and low mortgage rates alleviating some of the pain points experienced by renters and buyers alike, affordability continues to remain a concern for the majority of those looking for their first or second home.”

And Jeremy Leaf, north London estate agent and a former RICS residential chairman, felt prices are rising due to a lack of supply.

He said: “The small increase in house price growth is probably more to do with a lack of supply rather than a burst of springtime activity.

“Nevertheless, a rise is more welcome than a fall and in line with other recent statistics shows that the market is continuing to follow a slow upward path, albeit without any fireworks. “Looking forward, we don’t expect a huge change but we are seeing an increase in valuations and listings which is likely to show itself in a little bit more activity over the coming months.”

 

Wolverhampton home buyers need more help to find cheaper mortgage deals.

Plans to make it easier for mortgage borrowers to shop around have been proposed by the City regulator, after it found nearly one in three people fail to find the cheapest deal.

The Financial Conduct Authority (FCA) said these people could have saved £550 per year with a lower-priced deal. It is also exploring ways to help “mortgage prisoners” – longstanding customers who are trapped in their existing deal – to switch.

Publishing its interim report into the mortgage market, the FCA said it had found that competition was working well for many people. But it also identified ways in which the market could work better.

Mortgage costs hit two-year high as lenders anticipate rise in UK base rate

Mortgage debt accounts for more than 80% of total UK household liabilities, so selecting a deal is one of the most important financial decisions consumers have to take, but it can be a difficult one to get right, the FCA said.

The regulator said that while there was little evidence that current arrangements between firms were leading to poor consumer outcomes, there was no easy way for people to be confident at an early stage of the mortgage products they qualify for.

This is a significant impediment to shopping around, and about 30% of customers fail to find the cheapest mortgage for them, it said. On average, these consumers were paying approximately £550 per year more over the introductory period of their mortgage compared with the cheaper product.

One approach could involve lenders making the necessary eligibility and other qualification criteria available to other market participants consistently at an earlier stage, the FCA suggested. This should help brokers and also create other opportunities for new online tools, it said.

The FCA also proposed making it easier for people to compare mortgage brokers, saying it intended to work with the broker sector to develop ways to compare deals.

The report said: “We found that on average a consumer’s choice of intermediary makes a difference to the eventual cost of their mortgage. In particular, we have observed links between more expensive mortgages and intermediaries that typically place business with fewer lenders. But there are few tools to help consumers choose an intermediary.”

Christopher Woolard, the FCA’s executive director of strategy and competition, said: “For many the market is working well with high levels of consumer engagement. However, we believe that things could work better with more innovative tools to help consumers.

“There are also a number of longstanding borrowers that have kept up to date with their mortgage repayments but are unable to get a new mortgage deal; we want to explore ways that we, and the industry, can help them.”

The FCA also outlined how “mortgage prisoners” could be better helped, many of whom took out interest-only deals before the financial crisis. Stricter lending practices since the crisis have made it harder for these customers to find a cheaper mortgage.

The regulator suggested there could be an industry-wide agreement for lenders to approve applications for a new mortgage deal from existing customers whose most recent mortgage was taken out before the financial crisis and who are up to date with their payments.

The FCA will consult on the findings and proposed remedies, with a final report due around the end of the year.

What is an interest-only mortgage, how to calculate your rates

Plans to make it easier for mortgage borrowers to shop around have been proposed by the City regulator, after it found nearly one in three people fail to find the cheapest deal.

The Financial Conduct Authority (FCA) said these people could have saved £550 per year with a lower-priced deal. It is also exploring ways to help “mortgage prisoners” – longstanding customers who are trapped in their existing deal – to switch.

Publishing its interim report into the mortgage market, the FCA said it had found that competition was working well for many people. But it also identified ways in which the market could work better.

Mortgage costs hit two-year high as lenders anticipate rise in UK base rate

Mortgage debt accounts for more than 80% of total UK household liabilities, so selecting a deal is one of the most important financial decisions consumers have to take, but it can be a difficult one to get right, the FCA said.

The regulator said that while there was little evidence that current arrangements between firms were leading to poor consumer outcomes, there was no easy way for people to be confident at an early stage of the mortgage products they qualify for.

This is a significant impediment to shopping around, and about 30% of customers fail to find the cheapest mortgage for them, it said. On average, these consumers were paying approximately £550 per year more over the introductory period of their mortgage compared with the cheaper product.

One approach could involve lenders making the necessary eligibility and other qualification criteria available to other market participants consistently at an earlier stage, the FCA suggested. This should help brokers and also create other opportunities for new online tools, it said.

The FCA also proposed making it easier for people to compare mortgage brokers, saying it intended to work with the broker sector to develop ways to compare deals.

The report said: “We found that on average a consumer’s choice of intermediary makes a difference to the eventual cost of their mortgage. In particular, we have observed links between more expensive mortgages and intermediaries that typically place business with fewer lenders. But there are few tools to help consumers choose an intermediary.”

Christopher Woolard, the FCA’s executive director of strategy and competition, said: “For many the market is working well with high levels of consumer engagement. However, we believe that things could work better with more innovative tools to help consumers.

“There are also a number of longstanding borrowers that have kept up to date with their mortgage repayments but are unable to get a new mortgage deal; we want to explore ways that we, and the industry, can help them.”

The FCA also outlined how “mortgage prisoners” could be better helped, many of whom took out interest-only deals before the financial crisis. Stricter lending practices since the crisis have made it harder for these customers to find a cheaper mortgage.

The regulator suggested there could be an industry-wide agreement for lenders to approve applications for a new mortgage deal from existing customers whose most recent mortgage was taken out before the financial crisis and who are up to date with their payments.

The FCA will consult on the findings and proposed remedies, with a final report due around the end of the year.

Around 1.67 million borrowers have interest-only mortgages and a significant number are at risk of losing their homes

But when you reach the end of an interest-only mortgage term – which is the deadline by which your loan must be repaid (normally between 25 and 30 years)– you will have to hand the property back to the bank unless you have another way of paying the lump sum.

What is an interest-only mortgage?

Around one in five borrowers, or 1.67 million people, have interest-only mortgages.

Tens of thousands of these loans will need to be repaid over the next few years.

The City watchdog warned earlier this year that a “significant number” of people are facing shortfalls and are “at risk of losing their homes.”

The Financial Conduct Authority (FCA) has referred to the crisis facing these borrowers as a “ticking time bomb”.

The problems are worst for borrowers who are approaching retirement and will not be allowed to remortgage due to their age and the fact their income will drop when they stop working.

Who are interest-only mortgages for?

Interest-only mortgages are only suitable for borrowers who have substantial savings or investments which they could use to pay back the loans when they fall due.

Borrowers opted for interest-only mortgages to keep their payments low but many didn’t understand the risks

But some people did not understand they would not own their homes at the end of the loan term

Other borrowers were sold investments by the bank alongside their home loans called “endowments”.

These were meant to grow over time so that borrowers could pay off their mortgages, but most of these investments failed to perform as well as expected leaving borrowers with a substantial shortfall.

In 2007 just before the global financial crisis, as many as a third of all new mortgages were sold on an interest-only basis.

This figure has fallen to just 4 per cent of all new mortgages today, after regulators raised concerns and lenders were forced to take a more cautious approach. opted for interest-only mortgages to keep their payments low and to allow them to borrow more.

What can you do if you have an interest-only mortgage?

If you have an interest-only mortgage it’s important to act as soon as possible and not to bury your head in the sand.

Speak to your mortgage lender and see if you can afford to switch to a repayment mortgage.

If you have enough time left before retirement, it may be possible to extend the term of your mortgage in order to give you more time to pay it back.

It is also worth speaking to a specialist independent mortgage broker like Apple Finance to see if you are able to switch to another lender with a lower rate.

This would allow you to put more of your monthly payments towards repaying the outstanding debt rather than just covering the interest costs.

A broker will also be able to help you to find lenders that have higher age limits.

Many lenders require borrower to pay back their mortgages by the time they reach 75, but others are more flexible so long as borrowers have enough pension income to keep up their payments.

David Hollingworth, of broker L&C, says: “It makes sense for those with interest only mortgages and no  repayment plan to consider their options sooner rather than later.

“Halifax, Leeds Building Society and Skipton will lend to borrowers up to age 80.

“Nationwide Building Society and Bath BS will consider lending to borrowers up to age 85.

If your house has grown substantially in value since you took out your mortgage, you may be able to sell and still have enough after paying back the bank to buy a smaller home.

Contact us at Apple Finance to discuss your options.