The importance of researching your mortgage and some factors to take into consideration

In the last few months, mortgage interest rates have fallen significantly as speculation grows as to when the Bank of England will begin to reduce the Bank Base Rate. So, whether you are stepping on, up/down the property ladder or considering purchasing/refinancing a buy-to-let property, your mortgage is likely to be more affordable than a few months ago.  However, careful thought and research needs to be undertaken to ensure the right mortgage product and lender is selected to meet your personal circumstances.

Continue Reading…

Rents rising and property prices stagnating/falling; can landlords take advantage?

Whilst it is generally well understood that the days of making a ‘quick profit’ from buy to let “BTL” are over, for seasoned landlords and well-advised new landlords who take a long-term view, the current market conditions could provide an opportunity to make new acquisitions. With rents rising significantly and property prices stagnating/falling, opportunistic acquisitions may emerge.  How do potential buyers take advantage?

Continue Reading…

Be prepared to act quickly

Despite the increase in the Base Rate to 5% by the Bank of England in June, speculation remains as to when the next rate rise will come and where rates will peak. With the expectation that UK inflation will remain stubbornly high for longer, some experts are forecasting rates to reach as high as 7% and remain higher for longer than was anticipated earlier this year. In this uncertain climate, mortgage lenders continue to withdraw and re-issue mortgage products at short notice.

Continue Reading…

For landlords, ICR will be a challenge, but some lenders are showing flexibility

Whether you have a single buy to let (BTL) or are a portfolio landlord, if you are considering a new purchase or refinancing an existing BTL mortgage, then each lenders’ Interest Coverage Ratio (ICR) requirements/policies will be crucial to your success.

In the current times of high interest rates, lenders have set challenging ICRs and many landlords may struggle to secure the finance that they need.

Continue Reading…

Property wealth has the potential to help older AND younger generations

In March the Equity Release Council issued their 2022 Later Life Lending report. The report highlights that in the UK, property wealth has reached £6.7trillion and £5.2trillion after mortgage debt. A significant portion of this wealth is in the hands of the over 55s. For some, the equity in their home could far exceed the value of their pension/investment savings and therefore have a significant impact on the quality of their retirement.

Continue Reading…

The impact of the ‘bank of mum and dad’ on first time buyers

During the December festive holidays, many families would have gathered and spent valuable time with parents and grandparents. Often, it’s an opportunity for the older generation to reach out to children/grandchildren to offer financial support at this critical stage in their lives, when they are looking to take that first step onto the property ladder. Despite the rise in cost of living and mortgage interest rates, First Time Buyers (“FTB”) will remain crucial contributors to the housing market, however, they face two key challenges: the level of deposit and affordability.

Continue Reading…

Residential remortgage rates fall

In October, we experienced a significant level of uncertainty in the mortgage market resulting in lenders withdrawing a number of residential mortgage products.

In the immediate aftermath of the ‘mini-budget’, 5-year fixed mortgages hit rates above 6%, creating anxiety for existing borrowers who were considering refinancing options. 

Since then, the combination of Rishi Sunak and Jeremy Hunt has brought some stability to the market and we are now beginning to see rates drop.

Continue Reading…

95% Loan-to-Value Mortgages are Back

Mortgages

The announcement by the Chancellor, in the March budget, of a mortgage guarantee scheme was the catalyst lenders needed to start focusing again on the low deposit lending market. Some of the biggest banks in the UK have signed up to the scheme and will from April offer 95% loan-to-value (LTV) mortgages.  A number of lenders have already launched low deposit mortgages without the support of the government’s scheme and there is an expectation that more lenders will follow.  Increased competition should provide borrowers with more choice, greater flexibility and hopefully (eventually) more competitive interest rates.

Continue Reading…

Webinar: Stepping on & stepping up the property ladder – first-time buyers

 

Watch a full recording of the webinar covering the implications of COVID-19 on those looking to get on or step up/down the property ladder

Kinnison’s Jatin Patel and industry commentator Kate Faulkner discuss the impact that COVID-19 may have on first-time buyers and those looking to step up or down the property ladder.

Continue Reading…