Can First time buyers Still Obtain a Mortgage
In this video Paul the mortgage broker from Apple Finance discusses mortgages for first time buyers in the current climate.
Website – https://www.applefinance.co.uk/
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The Work Space, All Saints Road, WV2 1EL
At the moment it is no longer possible to measure house prices in Wolverhampton, or indeed the rest of the UK. The Office for National Statistics (ONS) has suspended its house price index for the moment due to lack of data. So it should all be doom and gloom right, well actually no you could be wrong.
There has obviously been pent – up demand because most of the local estate agents in Wolverhampton have been experiencing a busy period with lots of enquiries clients. Speaking from the perspective of a independent mortgage broker I too can comment that the brokerage is busy. Lots of my clients have commented that they feel now is the time to move to somewhere with more space or a garden. Do you feel now is the right time to purchase a new home or extend your current home for more floor space?
If you would like a free chat about your
circumstances and a professional recommendation on a mortgage or
bridging product to suit your needs phone 01902 213201 or send a messgage
The benefits of using a second charge mortgage product, instead of a first charge mortgage.
If you would like a free chat about your circumstances and a professional recommendation on a mortgage or bridging product to suit your needs, call Paul on 01902 213201
Why now is a good time to invest in Buy to let, well rates are historically low and look to remain low for the medium term at least. Low interest rates and a flat line property market at least in Wolverhampton and the rest of the West Midlands, at the moment creates an opportunity. Property investment is still a safe investment and will continue to be after lock down has ended even if property values do dip in the short term. There is a previous article on this on the blog.
The property market has restarted and valuation’s and restricted viewings can re-commence subject to social distancing of course.
The effect of the property market re-opening, if you like in Wolverhampton means that now is a good time to purchase a investment property while values are at a low point and fairly flat. Why is this good news, well as long as you view property as a long-term investment then over the long term, the capital growth will add a lot of value to the property as the market returns to normal or the new normal.
Property types, popular for investment in Wolverhampton are the straight forward buy to let properties, with one family or person on a single tenancy agreement, living in a house or apartment. For the more experienced Landlord there is the shared house option also known as houses in multiple occupation (HMO) typically three to six people who are not related sharing the facility’s but each tenant having their own bedroom. Greater cashflow and higher yields plus more management work for the letting agent or Landlord.
From the mortgage brokers perspective, I can provide independent mortgage advice on a HMO mortgage or a Buy to let mortgage whether it’s a re-mortgage of an existing property. Bridging finance can also be used to obtain or refurbish and uplift a property which might as its current status be unmortgageable. If you are on a mortgage holiday at the moment you might want to read this previous article. applefinance.co.uk/mortgage-holidays
If you like a free chat about your circumstances and a professional recommendation on the best mortgage for you call
Paul on 01902 213201
Hello everyone this is a quick video about the property market opening back up. Any questions drop me a message, thanks for watching. Bye for now.
Sometimes referred to as payment holidays, where you contact your lender and explain that you are struggling financially because of the coronavirus crisis. Now some members of the public have thought that they would have a three month break with no costs and then the payments would resume.
Sadly, however this is not the full story all the lenders will calculate the interest and add this on, after the three months has passed interest will be added on a monthly basis to the amount you normally pay. Only take a mortgage holiday if you really, need to. Why you may ask well let’s call it by its real name which is a deferred payment break, there are no holidays involved here. Let me explain a client contacted me to have a quick chat about their plan to contact the lender and request the deferred payment plan for three months.
So I said only if you really need to because if you take the payment deferment although it is unlikely to show on your credit file there are consequences. In the future if you approach your lender or if you change to a different lender whether that’s a remortgage or a purchase they will ask any deferred payments? The reason is lenders look for security and if a client has had to request a payment deferment this could signal the fact that there money management skills are weak. Is this client ready to remortgage or mortgage a new property if they cannot pay their bill’s in the short term?
The jury is out on this issue
but a large proportion of the mortgage lenders out there will use this as a criteria
question. For some clients this will weaken their mortgage application. My
solution as a mortgage broker going forward will be to compile a database of
lenders and banks who don’t add this to their mortgage criteria. Contact Paul on 01902 213201 email@example.com for a one to one consultation via whatapp or zoom
If you would like a discussion
about your circumstances and a professional recommendation on a mortgage product
to suit your needs, call Paul
on 01902 213201
The Work Space, All Saints Road,Wolverhampton, WV2 1EL
No one knows exactly what the world will look like post lock down, but we do know that the restrictions will ease. Other countries are moving towards an easing of the lock down status, I am sure that britain will follow suit maybe taking a different path or using a different method. Once the housing market starts to move again which of course depends on how the economy performs, what will things look like?
There may be less Jobs some jobs will have been lost this is a reality there may be less first-time buyers around, however most will find a new job and re – enter the market with a deposit albeit a few months later.
House Price Drop
Less demand in the short term means there will be a dip in house prices no one knows whether this will be 10% or 20% many different figures are being banded about at the moment.
The Other Side Of The Coin
Lower house prices do help those who were struggling to buy their first property due to mortgage affordability who have a secure income these buyers may now enter the market. Lower house prices offer value so there is likely to be fresh interest from Buy To Let Landords in Wolverhampton looking to purchase investment properties.
I will adapt my business model for the new normal which is
more technology, using Zoom and whatsapp for advice and engaging with clients.
Please see my previous post on this Market-disruption Face to face mortgage advice will return I am
sure but don’t ask me for a date on that one.
The Banks And The Securitised Lenders
Mortgage cases with lower loan to value thresholds on
properties are still going ahead with the use of desktop valuations, (AVM)
Automated valuation model systems. Surveyors are still going out to conduct a
physical valuation on a property if they are empty. The high street lenders are
proceeding with the vanilla low risk cases, but shying away from the usual or
standard mortgage cases. There are however plenty of specialist lenders who I
deal with on a daily basis who are happy with a client’s complex mortgage
So clients are still looking to purchase and remortgage their
homes and the new normal becoming over time the norm. Despite the lockdown
business and society will carry on mortgages-during-the-lockdown The
mortgage market with the help of technology will adapt to these changes.
Are you thinking about a mortgage but you are unsure of the
process, you may have complex finance and mortgage needs, or questions about
how it works. I can discuss your finance needs over the phone by whatsapp, zoom
or via email.
Landlords have been contacting
me and asking the question “will I be able to find a lender to remortgage or
purchase a new property.”
If you would have asked me the
question about a month ago I would have said its not going to be easy.
A whole group of buy to let
lenders pulled their products from the market until further notice, because of
the uncertainty surrounding the virus and the jobs market.
Well what’s changed not all
but a large group of lenders have returned to the market within a short space
of time. The highest loan to value product on the market at the moment for buy
to let is 80% which is only 5% down on what the highest product LTV was pre
So when a landlord client has
contacted me about the current situation. I have said there are less lenders
active in the market place at the moment but as long as the mortgage case
stacks up financially there are still plenty of buy to lenders to choose from.
Additionally more are re
entering the market again so there own confidence levels must be increasing.
The message to landlords is I
can still place your buy to let mortgage or remortgage.
Do not panic
Whether you are self employed
a business owner or have a complex financial situation we can help with a
solution. Contact me Paul on 01902 213201 or email firstname.lastname@example.org for a