Coventry Building Society Introduce Market Leading Rates

The loans include new fixed, capped tracker and Flexx for Term products.

Highlights include:

Residential Mortgages

2.99% Flexx for Term with a 1.00% discount until 30.06.13, 60% loan to value with no ERC's.

4.35% Fixed until 30.06.13, 80% loan to value, no arrangement fee.

+ 1.99% BBR Tracker Capped at 4.39% until 30.06.13, 60% loan to value.

Offset Mortgages

+1.79% BBR Tracker until 30.06.13, 65% loan to value

+1.99% BBR Tracker until 30.06.13, 75% loan to value

+2.09% BBR Tracker until 30.06.13, 65% loan to value, with no arrangement fee

+2.39% BBR Tracker until 30.06.13, 75% loan to value, with no arrangement fee

Buy-to-let Mortgages

4.75% Flexx Fixed until 30.06.13, 65% loan to value, with no ERC's and no arrangement fee.

4.25% Flexx for Term, 65% loan to value, with no ERC's and no arrangement fee.

Royal wedding may spur feel-good sale

The least obvious effect of the royal wedding is that its likely to positively impact the economy - and perhaps even the housing market - if past experience is anything to go by. In the property sector, the feel-good factor is a real variable. When England does well in the World Cup, it becomes more difficult to arrange appointments to access homes as people presumably huddle ever closer to the television. We then tend to see a lift in sales and mortgage applications soon after, which it seems can be attributed to a generally more optimistic viewpoint pervading the population. It’s completely illogical, of course, but it is a fascinating insight into the part that emotion plays in the workings of the market. Something like just 10% of housing transactions are necessary due to work relocation or other external factors, so 90% of the purchases are discretional - we don’t need to move, but we decide we’d like to. We shall wait and see what happens in the coming weeks!

Buy to Let Explained

Buy to Let has very much been the favoured type of investment over the last few years, but is can be difficult for newcomers to get basic questions answered about how to get started, how you can buy your first property and what the rules and restrictions are. This first buy to let blog is designed to provide answers to these and other points.
The first thing to understand is that buy to let property can be purchased relatively simply and with little regard to your personal income, unlike a normal residential mortgage for your home. It is more concerned with the quality of the investment property itself and whether it is likely to provide enough income to pay the interest or repayments on the loan.
When you are looking at an investment property for the first time it is important to consider the level of rental income you expect to receive compared to the cost of the mortgage per month. Historically, lenders have expected the rental to be 125% more than the monthly mortgage cost. Unfortunately, after management costs and any void months when you cannot find a tenant, you could run a loss on these types of loans so if you are keen on easily covering the mortgage then the secret is to hunt out property that has the highest rental income compared to the price of the property.
Banks normally need a minimum deposit of 25% on a buy to let property to be put down but if the interest cover requirements are not met then you will have to put in a bigger deposit to reduce the size of the mortgage and hence fit the interest cover. You can obtain buy to let mortgage quotes very easily from many specialist mortgage brokers & here at Richards and Jones we consider ourselves quite knowledgeable on this type of mortgage. There are many mortgage products in the market today but some have large application fees that offset the apparently cheap interest rates and others have long tie-ins so be careful when choosing one. These are a couple of the reasons why you are best to seek advice from an adviser who can show you all the different deals available to you. Please go to www.comparethemortgagemarket.com for more information.
The sort of costs you should be aware of when working out if a property will be profitable are things like management charges from the letting agent (10-15% of the rent per month), property insurance (£250 per year for a flat for example), rental voids (perhaps assume one month a year will have no tenant), safety checks (£100 plus a year) and of course furnishing the property in the first place. Also watch out for service charges in blocks of flats taking as much as one months rent or so a year.
When you have worked out your figures do not be surprised to see that it is quite hard to locate property that does not make a cash profit on the rent coming in each month. After the boom of the last few years it is often only run down terraced houses and the like that bring in high yields (the percentage of the property price represented by the annual rental income) and those types of properties can bring their own problems in exchange for the higher income.
So why do people still purchase buy to let property if it doesn’t make them a profit each year? Well there are two types of profit with property, firstly the rental income left after costs and mortgage payments, and secondly the possible capital gains if the property price goes up. If you believe that house prices will go up over the long term then you can see the potential to make money regardless of short term dips. This long term view is what most investors now take and they are quite happy to buy property that is initially break-even but with the prospect of capital gains and rent rises.
Even if the rent does not make you a profit to begin with it is important to know that the level of demand for buy to let property from many sources such as population growth through new children, immigration and an increasing divorce rate is leading to rents rising at around 10% per year according to one of the biggest buy to let lenders. This means a rent of £700 a month could be £770 next year and £847 the year after if the growth continued at that rate. If you were just breaking even in the first year that would mean a £1764 profit on the rent in the third year, if all other factors remained equal.
Hopefully this has given those of you who have not yet started with buy-to let an insight into how and why people are still buying, and putting their faith in bricks and mortar providing some of their income in retirement. Call 0208 1231337 for more assistance.

First Time Buyers

With property prices on the slide again, now could be a good chance for first-time buyers to step onto the property ladder. Given low interest rates, it is also cheaper in many cases to buy rather than rent a comparable property.
A third of properties currently for sale have had their prices discounted by an average 6.1 per cent, according to property search website Zoopla.co.uk, and current price levels are expected to fall a little further this year. So, the discounts are out there and there are deals to be done. There is currently no stamp duty for first-time buyers to pay on properties costing less than £250,000. And as someone just stepping on the property ladder, you have one great advantage: you have nothing to sell, which makes you a very attractive proposition to vendors.
So what is stopping first time buyers - The deposit. The average first-time buyer needs to find a 25 per cent deposit, according to the Council of Mortgage Lenders. But saying that there are a number of 90% mortgages available meaning you only need to provide a 10% deposit, but that still could pose a problem to a number of people. For many would-be buyers, that means turning to the bank of mum and dad. Your parents might also agree to act as guarantors, which means they agree to pay your mortgage if you default on the payment. This will enable you to get a bigger mortgage than you would have managed on your own, but you should take legal advice before signing up for this option.
But if parental support is not an option, there is not many more options to you except looking at government schemes or builder schemes which we will talk about in later blogs. If you prefer new-build, you could look at the incentives some developers are offering first-time buyers. Some developers allow buyers to pay a five percent deposit on some of their schemes by lending a further 15 per cent as an equity share loan that is interest-free.
There is a greater choice of mortgage deals available to first-time buyers with a 10 per cent deposit than there was a year ago, but the best rates are still available to those with 25 per cent to put down. If you have just 10 per cent, you will pay a premium of around two percentage points on the rate and will face a tougher credit scoring.
When calculating how much you can afford to spend each month on a mortgage, it is important to factor in what happens if interest rates rise by 1 per cent, 3 per cent or even 5 per cent. Would you still be able to cover your mortgage repayments each month? Your budget should also cover a solicitor's, surveyor's and possible lender's or financial advisor's fees. All of these will be covered in later blogs. Though using an adviser from Richards and Jones will not cost you anything at all!
Think too, about the financial implications of buying an old or a new property. An older house offers the potential to renovate and add value – but that work could mean a sizeable outlay at the start. Homebuyers spend an average £7,700 on their home in the first year after purchase, but nearly a quarter of them do not budget for these expenses.

For more information:

0208 1231337

http://www.comparethemortgagemarket.com

enquiry@comparethemortgagemarket.com

The House Buying Process

The key steps in the mortgage application process

If you understand the application process you can be ready with everything the lender needs.

Find a Mortgage Adviser

http://www.comparethemortgagemarket.com

Its always beneficial to use an adviser instead of relying on your own bank to find you the best mortgage deal available. If you rely on your own bank then they will only advise on their own mortgages which will probablly be very limited. An adviser will have access to the whole of the market meaning access to hundreds of different lenders and thousands of different deals. You also have to consider that your bank will have a set criteria, or rules, that they will have to follow in order to lend. If you dont fit their criteria, you dont get the money! Different lenders have different criteria, which the adviser will know and be able to assist you with. Call 0208 1231337 or email enquiry@comparethemortgagemarket.com for more information.

Agreement in principle

Once you've found an adviser and have the idea of which sort of property you would like you may want to obtain an agreement in principal to show your affordability for a mortgage. A lender or mortgage adviser may offer to give you an 'approval', 'agreement in principle', 'decision inprincipal' or a 'mortgage promise' (these are all exactly the same). This sets out what the provider will be willing to lend you based on certain terms and conditions. This can be helpful when you are ready to make an offer on a property. The result of this is determined by some basic information such as name, address, date of birth, employment details, credit and credit history. If you are unsure of your credit history then you can always check online with EQUIFAX or EXPERIAN who are both the UK's credit agencies and can provide you with a detailed credit report.

Choose a solicitor or licensed conveyancer

You'll need someone to carry out the legal side of things - local searches, drawing up contracts and other legal paperwork. You could use a conveyancing solicitor or a licensed conveyancer. Some lenders have preferred solicitors, or you may be able to get a personal recommendation. At Compare the Mortgage Market we have links with a panel of solicitors and can provide independent quotes whether you use our mortgage services, buy a house from us, or not!

Make a full mortgage application

When you've decided to buy a property and had the offer accepted you will need to progress the approval in principal to a full mortgage application. They will also want to see evidence of your income, your identity, your current address and (where relevant) a previous lender or landlord's reference. They may also want a non-refundable fee to cover their costs and perhaps to pay for a valuation.
If you can't prove you've got a regular income (maybe because you're self-employed and don't have enough proof) you may be able to obtain an accountants certificate or SA302 self assessment tax return forms. Again, the adviser can help you choose which lender to use for the various proofs of income you ay be able to provide.

Property valuation

Your lender will usually have the property valued to make sure it's worth the price you've agreed to pay. If it's not, it could affect how much they'll lend you. It's advisable to get your own survey done too or to upgrade the lender's valuation survey to a more detailed one.

The mortgage offer

If the lender is happy with the valuation and supporting evidence that we submit on your behalf, you'll be made a formal offer - usually sent to you and your solicitor and ourselves. Once you (or your solicitor on your behalf) have signed and returned the offer documents, your lender is committed to providing the money. The mortgage offer usually requires you to take out buildings insurance, in case something happens to the property before you've paid off the mortgage.

Choose related insurances

Many advisers will try and sell all of the insurances as a package and also try and sell them as a condition of either the mortgage, or the mortgage advice. The minimum insurance that you are required to take out with a mortgage is Buildings insurance. The other insurances available are always recommended if you are in a position to afford adviseRs advise you have buildings and contents insurance, some form of life insurance and payment protection insurance to cover your mortgage. We provide quotes for all of these when we arrange your mortgage. We can also quote on these should you arrange your own mortgage or use another broker or adviser.

Exchange and completion

If you're buying, once you've got a formal mortgage offer, your solicitor can agree a date for exchanging contracts with the seller's solicitor. At this time you usually pay a percentage of the purchase price as a non-refundable deposit and commit to paying the rest on the agreed completion date (when the property becomes yours). Formal contracts are generally exchanged and then completion is set for the following week. This is not set in stone and exchange and completion can be carried out on the same day.

Call our office today for an informal chat on 0208 1231337

Considering Buying a House?

Buying your new home can be a very exciting time for you and your family.It is important that you enjoy this process and consider all of your requirements. Some people are fortunate enough to be able to buy their new home without the need for a mortgage, unfortunately though, most of us need some mortgage support.

My experience over many years has shown me that a buyer approaching an estate agent with formal mortgage approval is generally more likely to have a realistic offer accepted by a vendor. You need to place yourself in the estate agents shoes and understand that they will want to qualify you and your finances before being confident in your proposed offer to buy. They have an obligation to the vendor to ensure that you are “good for the money”. Although gaining formal approval on your mortgage before visiting the estate agents is not entirely essential as in reality a mortgage approval can be obtained very easily and very quickly too, especially when using an adviser from Richards and Jones estate agents. If you did go ahead and try to obtain an approval without getting whole of market mortgage advice it will be very unlikely that you have found the best deal available. You may also get a decline from the lender you have chosen yourself due to not fitting their criteria. Our independent adviser will be able to provide you with free impartial advice whether you buy a property from us or not.

Our next blog will guide you through the process itself.

For more information please check out our website at www.comparethemortgagemarket.com or give us a cake at the office on 0208 1231337

Is it time to Remortgage?

Over the last year or two many borrowers have been fortunate enough to take advantage of their lenders very low Standard Variable Rate (SVR) after coming to the end of a particular mortgage deal. Recently the remortgage market has become more competitive with lenders trying to entice borrowers to switch to them and take advantage of lower interest rates.

Remortgaging should certainly now be a consideration for mortgage holders. Lenders are making this switch more attractive by offering to pay valuation and Solicitor fees on your behalf. Currently rates are staring from 1.99% therefore providing excellent value. It would be a worthwhile exercise to consider your current mortgage position and discuss your options in more detail and review the whole mortgage market. Fixed rate remortgages should now be considered as long as you are free of any early repayment charges with your current lender.Fixed rate remortgage products currently start from 2.89% offering monthly financial stability. It is true to say that I have not seen fixed rates as low as this before and I don’t expect them to be available at this level for too long.

Make your decision based upon full advice relating to your own circumstances by calling an adviser on 0208 1231337

Compare the Mortgage Market

Compare the Mortgage Market provides expert independent mortgage advice for everyone from first timers and remortgagers, homemovers, to buy to let landlords.
Our ability to access the whole market, to explain the fine details and the pros and cons of each product makes your life easy. Our contacts and experience will help you from initial mortgage advice and throughout the whole process.

Outstanding Advice - Why use one of our advisers

Whole of Market

As an independent mortgage adviser, we have access to the whole of the mortgage market. That means we are able to find the very best mortgage for you from all of those available. We know which lenders to go to that will allow higher income multiples for example, those that specialise in self employed, those that take tax benefits and credits into account and so on.

Knowledge

With years of experience in providing mortgage advice we have built up an extensive knowledge of the ever changing mortgage market. Not only do we use this knowledge when we see our clients, but we also use it well before we even get in front of them.

Professional Advisers

Working under our network, Intrinsic, we are assessed all the time to make sure we are offering clients the best products available and are keeping well within the FSA guiudlines. Our independent mortgage advisers are trained to very high standard and pride themselves on the satisfaction they receive from their clients. Our client satisfaction quiestionnaire results will soon be posted monthly to show our progress.

A mortgage for life

When you arrange finance or insurance through us it is not just about that one time transaction & we like to think that you want to continue the business relationship throughout the full term of your mortgage. We make the commitment to you to find the best deal every time it comes to change your mortgage or review your insurance. We contact clients on a regular basis through text, email or letter reviewing your current situation and advising on any new products available or if there are ways to reduce your existing commitments.

http://www.comparethemortgagemarket.com

Bank Holiday

In the next few weeks we are spoilt for holiday time, with this Easter break, two May bank holidays and the Royal Wedding - many people are planning to escape the UK. But if you want to make the most of your money then you need to think about how you will spend it in advance. Perhaps with all the holiday opportunity you may be looking for a little extra cash to fund these. Secured lending is generally cheaper than unsecured lending, so having an extra £10k on your mortgage could cost you between 3%-5% interest rate (depending on your circumstances) instead of 10%+ on a personal loan or around the 20% mark on a credit card. This may fall in line with remortgaging your home if you have moved to the banks variable rate and are looking to fix your rate again. Please call or email on 0208 1231337 or enquiry@comparethemortgagemarket.com for a free informal chat.
On the Other hand.........
THE sun is shining, we are all enjoying our easter break and it's also the traditional boom time for house-hunting and house-buying and the headline news is that gross mortgage lending was up 21 per cent in March. So, why not have a look at RIGHTMOVE and see what houses are available to you and let the team at Compare the Mortgage Market find the right deal. For a list of deals available today please log on to http://www.comparethemortgagemarket.com

Welcome to Compare the Mortgage Market

I would like to welcome you to our business on behalf of the whole team and hope you may find our many blogs help you in some way or another. This blog will mainly focus on the financial side of the business giving you the latest mortgage rates available, types of mortgages, insurances and such like.

You can rest assure that your home move will be safe in our hands of Compare the Mortgage Market. With many years of experience in the housing industry we are able to assist you throughout the whole process.

If you would like to know any more about what we can offer you then please call the office on 0208 1231337. Areas you may wish to enquire about:

Property appraisals

Mortgage advice

Insurance advice

Conveyancing quotes

0208 1231337

email - enquiry@comparethemortgagemarket.com

www.comparethemortgagemarket.com