Why you should use a mortgage broker to secure the best deal.

This article is from www.telegraph.co.uk/financial-services/  April 2016

With hundreds of different mortgages to choose from, hunting out the best deal to suit your needs can feel a bit like trying to find a needle in a haystack.

Access to more mortgages

If you aren't sure which type of home loan is likely to be right for you, it's a good idea to talk through all the available options with an independent mortgage broker.  They will be able to research the whole market on your behalf, rather than you having to trawl around numerous different lenders.

A spokesman for financial website Moneyfacts.co.uk said:  “An independent mortgage broker will look for the best mortgage for you. They aren't on the lender's side, they're on yours, and they'll give you access to far more products than if you went direct. You'll get unbiased advice and could choose from a range of lenders and subsequent products, rather than being restricted to the single range of the lender you go to. They also know the background criteria that a lender has and can bring this experience to bear when advising you and processing your application.

Greater buying power to secure the best mortgage deals

“Then there's the fact that, because a mortgage broker may put a lot of business to a particular lender in a year, they can exert influence and chase things in a way you just can't do by yourself – and that can be invaluable should things get held up.”

When you speak to a broker, they will start by asking you about your individual circumstances, including your income, how much you want to borrow and over what term, and how much of a deposit you have to put down.

They will then to talk you through the various deals you are eligible for, and can explain how the different types of mortgage work.

Once you’ve narrowed your choice of mortgage down, your broker will let you know the monthly costs, as well as any arrangement fees you will have to pay. They will then be able to help you with the application process, and answer any questions you might have, such as how long it will typically take for your mortgage to be processed.

Please visit our website at www.bristolmortgagesonline.com and Contact Us

How does Let to Buy work?

If you want to move house but you are struggling to sell your current home or your property has dropped in value, Let to Buy is something you may want to consider. Letting out your property could allow you to move into a new home without feeling pressure to sell in a rush and potentially at a loss.

If you own enough of the equity in your property, you could remortgage and release some cash to put down a deposit on a new home. You would then let out your existing property and use the rental income to cover the cost of the mortgage. This in turn will free you up to take out a mortgage for a new home and cover the repayments with your salary or other sources of income.

Mortgages if you want to Let to buy

Although some lenders will allow you to let out your home on a residential mortgage, this will normally only be on a temporary basis. So unless you are only going to be letting it out for a short time, it is likely you will need a Buy to Let mortgage.

Buy to Let mortgages are similar to residential loans, but there are some differences which our expert Advisers will be happy to talk you through.

Lenders will also want to see evidence that your rental income will comfortably cover your mortgage repayments. Being a landlord is not right for everyone, and entering into a Let to Buy arrangement should not be taken lightly. But if you are confident that you will get a decent rental income and can manage the responsibilities of letting out a property, this is a very worthwhile option.

Let to Buy can be an option for those who want to purchase a new home whilst keeping hold of their current property and letting it out. As someone looking to buy a new property, it can allow you to release some equity from your current home and put it down as a deposit on your new one.

Let to Buy is also a popular choice for couples who move in together later in life, perhaps once they both already have their own properties. In this case, you might both move into one of the properties and rent the other one out on a Let to Buy mortgage.

For more information about Let to Buy or Buy to Let, please click on the links to our website.

Please Contact Us today for a free consultation to discuss either Let to Buy or Buy to Let

What is a Second Charge Mortgage?

Second charge mortgages or second loans are often referred to as “second mortgages” because they have secondary priority behind your main (or first charge) mortgage. They are a secured loan, which means they use the borrower’s home as security. Many people use them as a way to raise money instead of remortgaging, but there are some things you need to be aware of before you apply.

• You must be a homeowner to get a second mortgage, although you do not necessarily need to live in the property.

• A second charge mortgage allows you to use any equity you have in your home as security against another loan. It means you will essentially have two mortgages on your home.

• A second charge mortgage can be a loan of anything from £1,000 upwards.

• Lenders now have to comply with stricter UK and EU rules governing mortgage advice, affordable lending and dealing with payment difficulties. This means that lenders now have to make the same affordability checks and ‘stress test’ the borrower’s financial circumstances as an applicant for a main or first charge residential mortgage.

• Borrowers will now have to provide evidence that they can afford to pay back this loan.

Our expert Advisers will be able to help you regarding what an affordability assessment might involve, and the evidence you may be required to provide to support your second mortgage application. Call us on 0117 325 1511

For further information, please visit www.bristolmortgagesonline.com/second-charge-mortgages

Why Remortgage?

Remortgaging means moving your mortgage from one lender to another to get yourself a better deal. And you don't even have to move house to do it.

There are many reasons why remortgaging could make sense for you:

•            You just want a better deal with a lower interest rate.

•            You need a more flexible deal with additional payment options.

•            You've come to the end of your initial Fixed Term deal.

•            You want to consolidate or rearrange all your finances.

•            You want to save money on your monthly repayments.

•            You want to borrow more to use the money for a project or home improvements.

•            You want to use some of the equity in your home rather than take out an additional loan.

•            Your current mortgage no longer suits your needs.

•            You have inherited some money and wish to reduce the amount you have borrowed.

•            Your credit rating has improved so you may get a better deal.

Think carefully before securing other debts against your home.

You may have to pay an early repayment charge to your existing lender if you remortgage.

UK interest rate cut: how it will affect you?

UK interest rate cut: how it will affect you?

Adapted from an article by Hilary Osborne from the Guardian 4th August 2016

The Bank of England has cut interest rates, taking the base rate to a new low of 0.25%. This is the first cut since March 2009, and how welcome it is will depend on your financial situation. The Bank also announced a new round of quantitative easing (QE) – pumping money into the economy to buy government bonds.

What does the cut mean for mortgages?

For anyone with a fixed-rate mortgage, it does not mean anything. But if any of your borrowing is on a variable rate then it’s likely to be good news.

The 1.5 million borrowers with mortgages that track the base rate will see their monthly repayments fall, probably from the start of September. For a homeowner on the average variable mortgage rate of 2.86% and a mortgage of £150,000, a reduction in line with the base rate will mean monthly repayments falling by £19.68 to £687.

Message from Phil Clark at Bristol Mortgages Online:

If you are looking for a First Time Buyer deal, a Home Buyer Mortgage or to Remortgage and cannot decide between a fixed rate or tracker mortgage, call us today on 0117 325 1511 for a free consultation with one of our expert Advisers.

Bristol & Exeter Mortgages Online always recommend a Fully Protected Mortgage

Bristol & Exeter Mortgages Online are Independent Mortgage Brokers, this means that we are not only mortgage specialists, but we can also access the whole market for your insurance protection needs.

Many banks and building societies and estate agents are “tied” to one insurer, and therefore cannot compete with an Independent specialist like us on cost or benefits as they only offer one product. This is a complex area and, in our view, is sometimes a more important decision than the mortgage. Whereas a mortgage may only last two or three years, the right protection could last the whole term!

We therefore always have a free face to face consultation with you and one of our experienced advisers to discuss your individual requirements to help us with our personal recommendations.

We have listed on our Protection & Insurance  webpage, brief descriptions of some of the many types of protection currently available, which may help narrow down your choices. Please feel free to Contact Usand we will arrange an appointment with you at home, in your office or at our offices in Henleaze, BS9 or Topsham, EX3