Heide’s Blog – 14th December 2018

It’s nearly Christmas and it’s the time of year for planning and preparing.  Getting things ready for the big day so things go perfectly.  Or as perfectly as possible.  You can’t plan for the unexpected but if you plan, you’ll at least know you’ll be in control for the majority of the time!

It got me thinking about Santa and how he manages to plan his journey to perfection – everything timed so nobody gets missed and the job’s done by the deadline.  Plenty of time, then, before he needs to worry about the next deadline.

Children send him their wish-list in plenty of time so he can ensure everyone’s happy and all his paperwork is done with plenty of time to spare!  They don’t want to be disappointed on the big day so they make sure they get their letters in before the Royal Mail delivery deadline.  They couldn’t possibly risk not having their toys on Christmas day, because they hadn’t sent their letter to Santa in on time.

It made me think about mortgages in a similar way.

If Christmas day is your moving day (or, if you’re re-mortgaging, it’s the day your current mortgage deal expires) then you want to ensure you’ve done everything possible to have your mortgage in place by that deadline.

In order to have the mortgage in place, you need to do the groundwork.  In the same way as the children need to have their letters to Santa sent on time, you need to have all your paperwork made available to your mortgage advisor (Santa!) to avoid any unnecessary delays and disappointments.

So, when your mortgage advisor tells you what documents you need to provide, think of it as your letter to Santa.

Get it in as soon as possible.  You won’t be penalised for having all your documentation ready early.  In fact, the sooner you have it ready, the better prepared you’ll be and the less stressful the whole process may be.

Getting everything together early will ensure if there ARE any questions or queries, there will still be plenty of time to deal with them before the big day arrives.

Make your list.

Check it twice.

Be prepared.

Send your letter early to avoid disappointment!

If you need any help in establishing what your “mortgage requirements list” looks like then please don’t hesitate to get in touch!  Don’t leave it to the last minute……

By clicking on any link contained in this blog you are departing from the regulatory site of Swift Mortgages. Neither Swift Mortgages nor Intrinsic is responsible for the accuracy of the information contained within the linked sites.

Your home may be repossessed if you fail to keep up the repayments on your mortgage.

Phone: 01525 309300
Mobile: 07903 302895
Email: heide@swift-mortgages.com
Twitter: @SwiftMortgages1
Linked In: Heide Swift
Instagram: Swift Mortgages
Facebook page: https://www.facebook.com/SwiftMortgages/

Heide’s Blog, 16th November 2018

Back in January 2018, The Sun newspaper reported the Financial Conduct Authority (FCA) saying nearly one in 5 mortgage customers in England and Wales – nearly 1.67 million households – have an interest only-mortgage.   These mortgages were described as a “ticking time bomb” as households could be in danger of losing their homes with no method repaying their mortgage at the end of the mortgage term.

See the newspaper report here: January 30th Article

Interest only mortgages were popular in the mid-1990s – around 25 years ago – when endowment policies were sold along-side the mortgage.  For the duration of the mortgage, borrowers would pay only the interest due on their mortgage and they would further pay into an endowment policy whose funds were invested.  Hypothetically speaking, at the end of the mortgage term (25 years later) the funds within the endowment policy would be worth enough to be able to repay the mortgage loan in full and the property would then be paid for in full.

The reality is, the endowment policies did not perform as expected and many of those mortgages are due to mature very soon but as there are insufficient funds within the endowment policies, there will be a shortfall between the amount to be provided by the endowment policy (if, indeed, the policy is still in place) and the amount owed to the mortgage lender.

Lenders had an obligation to write and advise their borrowers they needed to make provision for the repayment of the loan at the end of the mortgage term.

However, there was nothing the lenders could do to FORCE these borrowers to arrange an alternative repayment method.  This means there are thousands of households facing an uncertain future and possibly up to one in 10 households had no suitable repayment vehicle.

They could downsize to repay the loan but the value of property now means this method is certainly not guaranteed to provide them with enough equity with which to buy a property.

It’s possible there are people who may be unaware they are only paying interest on their mortgage loan.  One area of vulnerability may be women, perhaps who are widowed or living alone.  They may not be fully aware of the details of their mortgage if their husbands generally took control of the financial decisions.  They may be in their late 50s or early 60s and still working.  They will probably have lived in their home for a number of years – 20 years or more.  They may have children who have left home.


If you know of anyone in this position, try and get them to look into it as soon as possible. There may be things that can be done but the sooner they can be implemented the better.

For a complementary initial review please don’t hesitate to get in touch.

 

By clicking on any link contained in this blog you are departing from the regulatory site of Swift Mortgages. Neither Swift Mortgages nor Intrinsic is responsible for the accuracy of the information contained within the linked sites.

Phone: 01525 309300
Mobile: 07903 302895
Email: heide@swift-mortgages.com
Twitter: @SwiftMortgages1
Linked In: Heide Swift
Instagram: Swift Mortgages
Facebook page: https://www.facebook.com/SwiftMortgages/

 

Heide’s Blog, 9th November 2018

Budget: 29th October 2018

On 29th October, Philip Hammond, the Chancellor of the Exchequer, presented his budget to the House of Commons.

“…austerity is coming to an end – but discipline will remain” were his words, summarising his presentation.

Some of the key points he raised in the budget are here:

personal tax allowance

Personal tax allowances will be raised from April 2019.

  • Basic rate tax threshold will be increased to £12,500
  • Higher rate tax threshold will be increased to £50,000

capital gains tax

From April 2020, if you move OUT of your residential property and rent it out, private residence relief will be reduced from 18 months to 9 months.  This means if you sell the property after moving out you will be liable to capital gains tax on the sale of the property within 9 months.  This may occur if you move back in with parents or perhaps you move in with a partner and you rent your own home out.   If the reason for moving out of the home is disability or moving into a care home then the capital gains exemption period remains at 36 months.

From 6th April 2020 (the year after next) capital gains tax will be payable within 30 days of the sale.  Currently the system allows up to 21 months (depending on when the sale occurs) before the tax becomes due.

inheritance tax

The inheritance nil rate band will remain at £325,000 for 2019-2020.

The residence nil rate tax band will increase to £150,000 from 6th April 2019.

  • Both of these allowances can be used before the 40% inheritance tax is implemented.


savings

The amount you are able to invest into an ISA remains at £20,000 for 2019-2020.

Children’s ISA limit from 6th April 2019 is £4,368.

pensions

The lifetime pension allowance will increase to £1,055,000 for 2019-2020.  So if you are planning to draw down your pension and your funds already exceed the current £1.03million limit it may be worth waiting until April to do so.

If you are employed and are in an auto-enrolment pension scheme, the minimum contributions will increase significantly (employer and employee contributions) so be aware of that.

stamp duty land tax (SDLT)

Stamp Duty Land Tax relief to first time buyers in England and Northern Ireland will be extended to the purchase of shared ownership property and this relief will be effective 28th October, 2018 and back-dated to 22nd November 2017.

Check your stamp duty liability here: SDLT Calculator

There are plans for a consultation in January 2019 regarding the implementation of a SDLT surcharge of 1% to non-residents buying residential property in England and Northern Ireland.

budget summary

To read parliament’s summary please click here: Parliament’s Budget Article

 

Your home may be at risk if you fail to keep up the repayments on your mortgage.

By clicking on any  link contained in this blog you are departing from the regulatory site of Swift Mortgages. Neither Swift Mortgages nor Intrinsic is responsible for the accuracy of the information contained within the linked sites.

Phone: 01525 309300
Mobile: 07903 302895
Email: heide@swift-mortgages.com
Twitter: @SwiftMortgages1
Linked In: Heide Swift
Instagram: Swift Mortgages
Facebook page: https://www.facebook.com/SwiftMortgages/

 

Heide’s Blog, 2nd November 2018

This week’s blog is all about credit! 

 

I’ve had a couple of cases this week which involved credit issues of various kinds.

Although your credit rating may be good, it’s worth checking what your existing credit balances are. In other words, check what your available credit is.

If you have credit cards, you will be told what the available credit is on your monthly statement. If you are almost at the capacity of available credit on your cards, even though you may have made payments on time, this may affect your ability to take out additional credit.

Late payments are not good! Make sure you pay at least the minimum payment required each month. On time! Your statement will specify the date by which you need to make the payment and also what the minimum payment is.

If you feel you are being charged unfairly for something you may feel justified not to make the payment.

However, be aware that the provider may present you with a default which will appear on your credit report. Even if you pay the bill after the default has been received, your credit report will show that it had been ‘satisfied’.

Lenders will have their own views on satisfied defaults. They normally expect satisfied defaults to have been satisfied for a specific period of time.

The length of time since the default was received can be a factor (even if it has been satisfied).

Whether or not the default has been satisfied will be a factor. Even if it was received years ago, if it hasn’t been satisfied it will still show on your credit report that you owe the money.

The amount of the default can also affect the decision. The higher the amount the worse the effect.

A default on a mobile phone bill or utility account will still appear on your credit report.

If your mobile phone bill includes the payment for the handset, it may appear on your credit report as a loan.

A late payment will appear as a late payment. The reason for the late payment is not specified on your credit report.

Late payments on a mortgage are late payments on a loan secured against a property. Failure to make the repayments on a mortgage could result in the property being repossessed.

Late payments because you forgot to make the payment is not ‘preferable’ to missing the payment because you didn’t have the money to pay it.  In fact, it might indicate a failure to manage your finances.

 

My top tips:

  • Be aware of the credit you have available and the level of that available credit being used.
  • Get a copy of your credit report before you apply for a mortgage.
  • Know what loans, credit cards and hire purchase agreements you have.
  • Know what the monthly repayments are.
  • Set up the minimum payment to your credit card(s) each month.
  • Make sure you have enough money to pay your mortgage payments each month.
  • Ensure you’re registered at your current address on the electoral role.
  • Don’t change your bank account and stop any standing orders/direct debits until you know they have been transferred to your new account.
  • If you have adverse credit wrongly applied, query it and appeal it. Keep any written evidence of the reversal such as letters or emails. It may take a few weeks for any change to your credit report to be applied.
  • To check your credit, you could use Equifax, Clearscore or Experian.

 

Hot off the Press!

An article from Martin’s Money Saving Tips explains Experian will help tenants’ rental payments to be recorded on their credit file, in association with Rental Exchange.  Read the article HERE*.

 

Any questions? Give me a shout!

Your home may be at risk if you fail to keep up the repayments on your mortgage.

*By clicking on the links you are departing from the regulatory site of Swift Mortgages. Neither Swift Mortgages nor Intrinsic is responsible for the accuracy of the information contained within the linked site.

Tel: 07903 302895

Email: heide@swift-mortgages.com

Website:www.swift-mortgages.com

#SwiftMortgages

#BePrepared

#Credit

 

 

Heide’s Blog, 26th October 2018

This week I came across my first case of Japanese Knotweed which had been picked up in a survey on a property.   The buyer had withdrawn their offer on the property and the vendor instigated their own independent report.

Japanese Knotweed is the most invasive plant known in the UK and it can cause major problems to property.

 

It can grow up to 7 metres in height and it can push through walls, block drains and lift patios if not treated.

Japanese Knotweed Damage

The known presence of Japanese Knotweed in the vicinity of your property (even it it’s further than 7 metres from the building or even on a neighbouring property) can affect the valuation.  Some lenders may refuse to lend if there is any sign of the plant, whereas others will take a view on it.  Usually dependent on the results of a specialist report.

Generally the Japanese Knotweed will need to be successfully treated or removed (with proof of responsible off-site disposal and a 10 year guarantee for the works).

The cost of either local herbicidal treatment or off-site removal will vary, as will the time taken for the results to be effective.

Some lenders will expect you to retain savings for future treatment in case of possible recurrences.

An article in “Mortgage Solutions” in September 2018 indicates between 4% and 5% of houses in the UK are directly or indirectly affected by Japanese Knotweed (see the article HERE).

Furthermore, the article says 850,000 – 900,000 properties have experienced a reduction in value of 10% due to its presence.

By law, vendors must disclose to potential buyers that the property has experienced problems with Japanese Knotweed and this information itself can act as a deterrent to buyers.

Japanese Knotweed originates from volcanoes in Japan and it’s hardy enough to grow up to 10cm in a day.  It takes light and nutrients from other plants which often kills them in its wake.

Knowingly allowing Japanese Knotweed to grow to a neighbouring property can result in a fine of £2,500.

April to October is the main season for the growth of Japanese Knotweed but mild winters have extended the growth period from March to November.

HERE is the link to an independent website which contains videos to show you how to identify signs of the plant.

 

By clicking on any of the links contained in this blog you are departing from the regulatory site of Swift Mortgages. Neither Swift Mortgages nor Intrinsic is responsible for the accuracy of the information contained within the linked sites.

Phone: 01525 309300
Mobile: 07903 302895
Email: heide@swift-mortgages.com
Twitter: @SwiftMortgages1
Linked In: Heide Swift
Instagram: Swift Mortgages
Facebook page: https://www.facebook.com/SwiftMortgages/

 

Your home may be at risk if you fail to keep up the repayments on your mortgage.

Click here for my blog archive: https://www.swift-mortgages.com/blog/

Use the hashtag: #SwiftMortgages to keep in touch

#SwiftMortgages

Heide’s Blog, 19th October 2018

Once you have secured your mortgage, it’s vital you ensure your investment is protected.

A condition of the mortgage itself will be that the building is insured.  We would recommend you take the insurance out from the point of exchange of contracts as that is when your transaction becomes legally binding.  Most owner/occupiers will extend the buildings insurance to make sure their contents are also protected against damage, loss and theft.  Landlords will need to ensure they get the best possible protection for their investment property so may wish to take out a buildings insurance policy aimed specifically at buy to let properties and may include accidental and malicious damage to the property by tenants.

Most people avoid thinking about the possibility of illness, injury or loss of job.  However, it does happen and any of these circumstances may affect your mortgage payments which in turn, could result in the loss of your most valuable asset – your home.  Your mortgage is likely to be your biggest financial commitment and therefore it may be affected most by any sudden reduction in income. Looking at protecting your investment is a fairly straight-forward process:

A mortgage protection policy (a life insurance policy to pay out the balance of your mortgage in the event of a mortgage applicant dying, during the mortgage term) will ensure your loved ones need not worry about the cost of maintaining the mortgage payments.  The mortgage will be paid off by the proceeds of the life insurance policy.

An income protection policy will provide you with a monthly income which can be tailored to suit your specific income requirements and to any existing provision made by an employer.  So, if your employer will pay you in full for the first 6 months of sickness, we will only look at benefits starting after 6 months.

A critical illness policy will provide you with a lump sum of money, to help you out in times of need, in the event you are diagnosed with a qualifying critical illness.  This does not need to be a terminal illness, but a sum of money may enable you to take some unpaid time off work to recover, or get a 2nd medical opinion or have your illness treated privately.

Family Income Benefit will provide your family with an annual income for a specific period of time (tailored to suit your requirements) on the death of one of the mortgage applicants.  Assuming a mortgage protection policy has paid the mortgage balance, the additional income may be used to cover general household expenditure, childcare costs etc.

We look at your property purchase in a holistic way and will offer you the opportunity to protect it against unforeseen circumstances in the most cost-effective way to suit your personal and financial requirements.

Swift Mortgages offers business protection too so if you have any queries regarding key man insurance, relevant life insurance, shareholder protection or group cover then why not contact us for more information?

To give an idea of the risks of death, illness or being unable to work, why not put your details into this Risk Reality Calculator (courtesy of Liverpool Victoria).  Please note that the results are for illustrative purposes only and based on average statistics.

Liverpool Victoria’s Risk Reality Calculator

By clicking this link you will be departing from the site of Swift Mortgages, neither Swift Mortgages nor Intrinsic are responsible for the accuracy of the information contained within the linked site.

For a complementary initial review of your existing financial protection, or if you’d like to find out how I can help, why not give me a call or email me?

Mobile: 07903 302895

Email: heide@swift-mortgages.com
Website: https://www.swift-mortgages.com/
#SwiftMortgages
 #ProtectionIsImportant

There are other providers of Payment Protection Insurance (Short-Term Income Protection) and other products designed to protect you against loss of income.

For impartial information about insurance, please visit the website at www.moneyadviceservice.org.uk

 

Heide’s Blog, 12th October 2018

What exactly is the house purchase process?

 

The mortgage is just a small part of the whole journey and of course not everyone buys with a mortgage.  Effectively your mortgage is the funds you need to buy the property and whether you buy with cash or a mortgage it’s only a part of the process.

Initially you will need to decide where to buy.  If you’re moving out of your parents’ house and staying locally then the likelihood is, this won’t be an issue.  You’ll know the area and have a good idea where you want to be.  But if you’re moving out of your local area due to relocation with work, for example, this may be more difficult.

Do your research.

Visit the area.  Look around at different times of day.  Go to local shops, pubs, restaurant and speak to people.  Buy the local paper and watch the local news. Check out the local schools and amenities.  Try out local transport links.

What’s on your “must-have” list?  Can you be flexible with them?

When you know where you want to live  – check out local prices in the area you want to be.  When you know how much your ideal property will cost, make sure you check that you can actually afford it!

If you’re buying cash you’ll know exactly how much you have and that’s easy.

If you’re buying with a mortgage, make sure you check in advance of viewing and making offers, that you can raise the mortgage you need.

If you’re dependent on a mortgage AND the sale of another property to buy your new pad, make sure you work on the basis of “worst case scenario” for the sale of your existing property.  If you have to accept a lower offer for your current home and you’ve budgeted for selling at a higher price then that will leave you short.  Where is the deficit coming from?

Take a look at my earlier blog which talks about preparing in advance for your mortgage: Prepare for your Mortgage

How much can you afford?

Once you’ve found the sort of price range you need to buy in, make sure you check your mortgage affordability before you start viewing.  If you need to adjust your price range, it’s better to know BEFORE you’ve found the house of your dreams!

When you know what you can afford and where you want to live, you can start looking.  Check out on-line sites and also local estate agents.  Don’t forget, not all the estate agents are registered on all the general sites so it’s worth checking individually as well.

Is it near schools?  Is it in the catchment area you want?

What are transport links like?

Are you close to an airport?  Trainline?  What’s the noise like?  Check at different times of day.

Visit again and watch what goes on – is the traffic bad during the week?  If you’ve only viewed on a weekend you may not get a holistic picture.

Enjoy your buying journey! 

Making sure you have a check-list prior to viewing property will ensure you don’t waste a lot of time looking at unsuitable property.

For any assistance please don’t hesitate to get in touch!


Your home may be repossessed if you do not keep up repayments on your mortgage.

The Financial Conduct Authority does not regulate Buy to Let mortgages.

Phone: 01525 309300
Mobile: 07903 302895
Email: heide@swift-mortgages.com
Twitter: @SwiftMortgages1
Linked In: Heide Swift
Instagram: Swift Mortgages
Facebook page: https://www.facebook.com/SwiftMortgages/

Use the hashtag: #SwiftMortgages to keep in touch

Click here for my blog archive: https://www.swift-mortgages.com/blog/

#SwiftMortgages

 

Heide’s Blog, 5th October 2018

Mortgage Product Transfers

During the past month or so, I’ve helped clients with more product transfers than I have during the 12 months prior to that.

So, what’s a “product transfer” anyway?

If you think you may not be able to re-mortgage to a new lender then you may want to consider a product transfer or a rate switch.

It’s not technically a “re-mortgage” because there is no legal work involved due to no change in lender.

It’s a transfer from your current mortgage interest rate to a new rate of interest – in other words a rate switch – but at a better rate of interest than the lender’s standard variable rate.

You  can consider a product transfer normally any time from 3 months or so before the end of a current mortgage deal.  And at any time you are on your lender’s standard variable rate of interest.

In the same way as a re-mortgage you will usually have options available to fix your new rate of interest at a 2, 3 or 5 year rate.  In addition, you will get options to either pay an arrangement fee with a lower rate of interest or a higher rate of interest with no arrangement fee.

Why might you choose to transfer your mortgage product, rather than re-mortgage?

There are many reasons why you might choose a product transfer rather than a re-mortgage and here are a few of them:

  • Your circumstances have changed

If your circumstances have changed, particularly when it comes to a residential mortgage, you may find you can no longer “afford” your mortgage.

This may be due to a number of reasons – for example, one applicant has gone part time, one applicant is no longer working, one has changed their employment status (perhaps now self-employed rather than employed, perhaps you have more children, you may have additional childcare costs or maybe you have higher travel costs to work.  Or you have perhaps taken out additional credit since your last application.

Whatever the reason, if a new lender was assessing a brand new mortgage application from you, they may consider the loan you currently have would be unaffordable due to an income reduction and/or increased committed expenditure.  Therefore you may not be able to obtain a re-mortgage with a new lender.

  • You have limited time

I often speak to people who have left it till the “last minute” to sort out their mortgage interest rate.  Perhaps they had a letter from their lender a few weeks ago, but life got in the way.  And now they have a couple of weeks till their current fixed rate ends.

  • Underwriting rules and/or criteria have changed

Over the past couple of years, I’ve come across some instances where landlords, due to the changes in affordability calculations for buy to let mortgages, are now no longer able to get the same level of loan as they took out 3 or 4 years ago.  Effectively they are “stuck” with their existing lender as they are not able to re-mortgage to a new lender without putting additional funds into the property to increase the equity.

A product transfer is not a new application to a new lender so does not have to be underwritten nor the property physically re-valued.  It is generally a quick and easy way of getting a new fixed rate pretty quickly.

Please note, however, that you may NOT get an interest rate as good as if you went to a new lender for a re-mortgage.

I’m not sure about my plans – what other options might I have?

Sometimes you will get the option for a discounted rate with no early repayment charges.  This may be a good option if you are coming to the end of a fixed term but you don’t have definite plans for the next 2 years.  An example I came across recently was a client was intending to move in with her boyfriend although they had not fixed a date.  It was likely to be within the next 2 years.  So she transferred her mortgage to a variable rate of interest which was lower than the standard variable rate but which had no early repayment charges associated with it.  So she could sell her property – or re-mortgage it on a buy to let basis – without incurring penalty charges at any time during the next 2 years.

If you have left your re-mortgage to the last minute, either because you forgot about it or buried your head in the sand, please don’t hesitate to get in touch and we can see what options are available to you with your current lender.

Your home may be repossessed if you do not keep up repayments on your mortgage.

The Financial Conduct Authority does not regulate Buy to Let mortgages.

Phone: 01525 309300
Mobile: 07903 302895
Email: heide@swift-mortgages.com
Twitter: @SwiftMortgages1
Linked In: Heide Swift
Instagram: Swift Mortgages
Facebook page: https://www.facebook.com/SwiftMortgages/

Use the hashtag: #SwiftMortgages to keep in touch

Your home may be at risk if you fail to keep up the repayments on your mortgage.
The Financial Conduct Authority does not regulate Buy to Let mortgages.

Click here for my blog archive: https://www.swift-mortgages.com/blog/

Heide’s Blog, 28th September 2018

When buying a property you will need to put down a deposit.

What’s a deposit and how much will you need?

Where will your deposit come from – and where did the funds originate?

A deposit is money being put down towards the purchase (or re-mortgage) of a property.  The mortgage will make up the remainder of the value of the property.

For example.  You purchase a property for £300,000.  You have a deposit of £70,000.  Therefore the mortgage you will need is £230,000.  In other words, the value of the property, minus the deposit equals the mortgage you will need.


Your deposit can come from many different sources and could be a combination of more than one source.  Your deposit details will need to be specified on a mortgage application and these details will include the amount of the deposit and, to comply with anti-money laundering regulations, the source (origin) of the funds being used for the deposit.

A first time buyer’s deposit might come from their own savings, a gift from a close family member or possibly from an inheritance.

The important thing is that to comply with Anti Money Laundering regulations, the deposit source needs to be identified and documented.

If it’s your own savings, then having a record of your savings over the past year would be great – a statement or summary of the transactions is ideal.

If your deposit is coming from a gift, then a letter from the donor (whomever is providing the gift) confirming it’s a gift rather than a repayable loan is required.  Confirmation they have the funds available, usually by means of a recent bank or financial statement.  Sometimes, lenders will request the completion of their own “gifted deposit template” which would be lender-specific.  Your mortgage advisor would provide that for you and ask you to arrange completion of the form.

If the deposit is coming from an inheritance then there should be an official letter or correspondence of some kind (from a solicitor) confirming you are the beneficiary and the amount of money involved.  The requirement would be the letter plus a bank statement showing the money being transferred into your account (the amount should match the amount specified in the correspondence).  If the inheritance was received some time ago, a current statement showing the money still available in your account would be required.


One way to help first time buyers boost their savings is to take out a Help To Buy ISA.  A first time buyer could receive a maximum £3,000 bonus if they manage their savings in an official Help to Buy ISA account.  As a first time buyer, you would use these savings towards the deposit on your new property.  The scheme is available for ANY first time buyer to take advantage off.  So if there were 2 x first time buyers buying a property together, they could both use their Help to Buy ISA funds which could then potentially include up to £6,000 of funding from the Government.

For more details click here:  Help to Buy ISA

 

A “next time buyer” would normally provide the deposit for a new purchase from equity within their current property.  This equity would be released as cash on the sale of the existing property and then used as the deposit for the new purchase.   If the new purchase was being funded with additional deposit (over and above the equity from the existing property) then the source of the additional funds would need to be verified in the same way as a first time buyer’s deposit.

If the deposit is coming from the sale of a previous property then there will be documentation from a conveyancer confirming the sale the amount of money being paid to you as a result of the sale (after any mortgage has been redeemed and any fees have been settled).  That documentation plus a bank statement showing the deposit into your account by the conveyancer should be used as verification of the source of deposit.

If you are re-mortgaging a property in order to raise funds for your deposit then normally a copy of your mortgage offer would be required by the lender before completion.  If the re-mortgage application is being submitted at the same time as the new purchase mortgage then initially a mortgage illustration would be expected until such times as you have a mortgage offer which will confirm the availability of the deposit funds.

If you are buying an investment property then the source of your deposit may be any of the above and the requirement to confirm the source of the deposit will be the same.

For more information or if you have any questions please don’t hesitate to get in touch!

 

Think carefully before securing debt against your home, your home may be repossessed if you do not keep up repayments on your mortgage.

 

The Financial Conduct Authority does not regulate Buy to Let mortgages.

Phone: 01525 309300
Mobile: 07903 302895
Email: heide@swift-mortgages.com
Twitter: @SwiftMortgages1
Linked In: Heide Swift
Instagram: Swift Mortgages
Facebook page: https://www.facebook.com/SwiftMortgages/

Use the hashtag: #SwiftMortgages to keep in touch

Your home may be at risk if you fail to keep up the repayments on your mortgage.
The Financial Conduct Authority does not regulate Buy to Let mortgages.

Click here for my blog archive: https://www.swift-mortgages.com/blog/

#SwiftMortgages

  

 

Heide’s Blog, 21st September 2018

Are you prepared for your new mortgage? 

Mortgage Preparation can be started way in advance of your application, particularly if you’re self-employed.

  • If you’re a first-time buyer, start saving EARLY and KEEP RECORDS of your savings statements, savings books etc – at least one year’s worth of savings evidence required for anti-money laundering purposes.
  • Make sure you’re registered on the electoral role at the address you live at!
  • Make sure your passport is up to date. Make sure your Driving Licence shows the correct address.
  • If you’re recently married, get a copy of your marriage certificate to verify the change of surname.
  • Make sure you have bank statements (even if you do on-line banking) that show your current address.
  • Ideally don’t take out any hefty new credit commitments prior to a new application.
  • Check your credit report (Experian or Equifax) if you are:
    • Worried about any past credit blips
    • Don’t know exactly what finance you have open – sometimes if your mobile contract includes the cost of the handset, this will show as a LOAN
    • Unsure of whether you’re on the electoral role
    • Hazy about your previous address history
  • If you’re in a fixed mortgage term, KNOW when the end date is.
  • Start looking at alternatives 4-6 months before the end date.
  • Research the value of your property. Most will be easy to estimate comparing other, similar properties listed on Rightmove and Zoopla.
  • If you’re employed, start saving your payslips (3 most recent months are needed) and your most recent P60 in safe and easily accessible place.
  • If you’re self-employed, ensure you have up to date tax return data in the form of SA302s and tax year overviews. 3 years are required.
  • Depending on the lender, if you’re a Limited Company, accounts may be used instead of SA302s but have both fully up to date!
  • Also, 3 x months’ bank statements are required so keep them there too.
  • If you have any properties in the background (holiday homes or Buy to Let properties in the UK) – have the information about those available too:
    • Mortgage details if applicable
    • Rental income details
    • SA302s and tax year overviews showing your income being declared
    • Tenancy agreement if applicable
  • Make a note of your income (other than earned income) such as:
    • Pensions (annual statement required)
    • Child benefit (confirmed by bank statements)
    • Maintenance payments (are they court ordered? If not, at least6 months’ bank statements required to verify regular receipt)
    • For all the above your bank statements should show these being credited.
  • Know your outgoings – most people under estimate their monthly expenditure:
    • Council tax?
    • Standing orders for utilities?
    • Mobile phones?
    • Insurances?
    • Travel costs?
    • Childcare costs?
  • If you are buying a new property (ie raising funds from a re-mortgage for the deposit), some lenders will need to know more details about the property you’re intending to buy.
  • If you’re raising any capital (from a re-mortgage) to do any home improvements, make sure you have some quotes available if there is building work to be done.

Make sure you realise the value of a re-mortgage if that’s what you’re planning to do.

I saw a post recently about someone saving £300 in the year on their car insurance.

Re-mortgaging to a new lender may save you significantly more.

Most people will scour the internet looking for savings on their car insurance or mobile phone tariff. But when it comes to their mortgage, it may seem like “too much hassle”.

Why not let a mortgage advisor search on your behalf? 

Your home may be at risk if you fail to keep up the repayments on your mortgage.

Phone: 01525 309300
Mobile: 07903 302895
Email: heide@swift-mortgages.com
Twitter: @SwiftMortgages1
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Use the hashtag: #SwiftMortgages to keep in touch

Your home may be at risk if you fail to keep up the repayments on your mortgage.
The Financial Conduct Authority does not regulate Buy to Let mortgages.

Click here for my blog archive: https://www.swift-mortgages.com/blog/

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