by cwms | Jan 10, 2024 | Mortgage Advice, Protection Advice
Using a mortgage and protection broker can save you time and worry, handling everything from searching for a deal to applying and communicating with the lender on your behalf. In today’s busy world, we could all benefit from having a calmer, more stress-free life, so here are our top 8 reasons for using a broker in 2024…
1. Access to Better Deals & Products
Banks and lenders can only access their own products. By contrast, brokers look at a broad range of mortgages and broker-exclusive deals. We have access to over 65 lenders to find suitable products to meet your needs whether you’re a first-time buyer, remortgaging, moving house or a buy-to-let investor.
2. Manage all the Admin and Legwork
The Coombes & Wright team look after the complete mortgage and protection process for you, including all application paperwork and admin, liaising with your lender, solicitors, estate agent or new home builders. This can be daunting and stressful if you’re unfamiliar with all the jargon and processes. Don’t worry. We do all the legwork so you can relax! With advisers across Hertfordshire in Brookmans Park, Potters Bar, St Albans, Hertford and Abbots Langley, plus London, and Dover and Canterbury, Kent. We offer appointments at a time and location to suit you and are available to answer questions and provide advice.
3. More Streamlined, Less Stressful
As brokers, we deal with lenders daily. We know the application process and background criteria for each to ensure you encounter minimal delays.
4. Benefit from Expert Knowledge
Mortgage brokers have expert knowledge of the mortgage and protection market and can recommend deals that suit your personal situation. We access software to search products faster and more thoroughly than you could. We have day-to-day experience with which lenders are most likely to accept you and help you avoid applying for deals you’re unlikely to get (which can negatively impact future applications).
5. You’re Fully Protected
Brokers have a duty of care to recommend suitable mortgage and protection products and must be able to justify our recommendations. You can complain and be compensated if our advice is not up to scratch.
6. Honest Peer-to-Peer 5-Star Reviews
As consumers in 2024, checking out a company’s customer reviews is second nature. We’re incredibly proud to have over 650 5-star reviews across Google, Trust Pilot and Facebook, reassuring you of our commitment to excellent customer service.
7. Industry Experience
We know the industry – Mortgage criteria have tightened massively over the last few years, with arguably the most comprehensive ranges of products on offer. Affordability tests and checking processes are in place to protect consumers but understandably increase application complexity and timescales. That’s why it’s so important to stay in the loop – and to have a broker on your side who understands it all.
8. On Your Side
Brokers are on your side and work for you! We search for the most favourable mortgages and protection products to meet your individual circumstances. We aren’t on the lender’s side. You get unbiased advice and can choose from a range of lenders and subsequent products rather than being restricted to a single range directly from a lender.
9. Fully Qualified
Brokers are qualified – There’s a lot to consider when choosing a mortgage or protection product such as life insurance or income protection. It’s not as simple as just opting for the cheapest deal. Mortgage & protection brokers must be qualified to give you advice.
So, there you have it, our top 8 reasons to use Coombes & Wright Mortgage Solutions for your next mortgage, remortgage or protection product.
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by admin | Jun 4, 2023 | Mortgage News
There are many reasons why saving for a deposit is harder than ever before. The rising cost of living, covid, and Brexit have all negatively impacted. However, getting your foot on the property ladder is not an impossible dream. Here are some tips on saving for a mortgage deposit.
Use the LISA if you qualify
If you’re a first-time buyer aged between 18 and 39, you are eligible to open a Lifetime ISA account. You can pay up to £4,000 each tax year into the account. The government then adds a 25% bonus (£1,000 maximum). You must use your LISA towards purchasing your first home or to fund your retirement. Under current rules, you can have a LISA and a regular ISA. This means that your savings and/or investments will get even more protection from tax. For investments, we act as introducers only.
See if you qualify for further help
Central government has various schemes to help would-be housing buyers, especially first-time buyers. Local authorities may also have their own schemes. Check availability and eligibility in the location where you want to buy.
Be flexible about your exact location
Many buyers only consider homes within reasonable commuting distance of their place of work. However, it can be beneficial to keep your options open and consider what is ‘reasonable’.
What “reasonable” means in practice depends partly on your outlook and lifestyle, partly on your transport options and partly on how often you have to go into your office and place of work. If you’re fully or largely remote, it may be worth looking at areas further afield or with limited transport options, often reflected in the local property prices.
Buy a property in need of upgrading
Looking for a property needing upgrading is a bit like thrifting in charity shops. There are definitely bargains to be had, but you need to be alert and quick. You also need to be realistic about your goals and totally honest about what you can and can’t do yourself.
Secondly, be clear about how long it will take you to make the necessary changes and the property habitable. This would typically mean ensuring that it was structurally sound (wind and watertight) and had essential utilities. You might be able to live without heating in summer, but in winter, it’s a different story
Thirdly, be realistic about your budget for the updates. Buying a “fixer-upper” isn’t necessarily more affordable overall than buying a home in pristine condition. It just means that you can pay a lower upfront cost, thus making your deposit savings go further. You can then do upgrades yourself or pay for someone else to do them out of your ongoing income.
Consider downsizing while you save
If you can “make do and mend” with a smaller property while you save, you may be able to build a deposit more quickly. Similarly, you might want to consider moving to a more affordable location. A cautionary word, ensure this move doesn’t excessively increase your travel and living costs.
For help and advice about getting on the property ladder, contact Coombes & Wright Mortgage Solutions. We offer free initial consultations without obligation.
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For investments we act as introducers only
by admin | Apr 18, 2021 | Mortgage News
If you don’t like the term “haggling”, think of it as “negotiation”. That’s essentially what it is. In simple terms, the seller (or their agent), is trying to achieve the highest possible price for their home. You are trying to achieve the lowest possible price for the property. This is not about “win/lose”. It’s about reaching an agreement. Here are some tips to help.
Prepare thoroughly
Guide prices are a guide to what a seller (or their agent) wants for the property. You should therefore regard them as sources of information rather than as instructions. What you really need to know is the state of the local market and the seller’s situation. You can find out a lot about the first point with some thorough digging around the internet.
The key point to understand is that you need recent, local data. Recent data tells you what the market is doing now, not what it did in the past. Local data tells you how the market is performing in the locations which interest you. To take an extreme example, there’s no real point in looking up data from London if you want to buy property in Aberdeen.
In fact, if you’re looking at buying in a city, then you want data at local-authority level if not postcode level. Be aware that there can be significant differences in property prices in different areas of a city. You need to be sure that you’re comparing like with like.
Get preapproved for a mortgage
If you need a mortgage, then get preapproved for one. This marks you out as a serious buyer and reassures sellers. Think about whether or not there are any other steps you could take to make a seller’s life easier. For example, can you be flexible with your move date?
Understand the seller
It’s always safer to deal with a seller who has a clear reason to move. This reduces the chances of them pulling out of the sale, leaving you high and dry (and possibly out of pocket). The more motivated a seller is to move, the more chance there is that they will be willing to accept a lower price in return for a quick and convenient sale.
There are, however, a couple of caveats here. Firstly, a seller may have a baseline price below which they cannot, or just will not, go. For example, they may need (or just want) enough to clear their mortgage. Secondly, the more competition there is for a property, the more likely it is that someone else will offer both a higher price and a quick and convenient sale.
Keep a clear head
Until the sale is complete, in fact, arguably until you’ve moved in, you’re buying a property. It may be someone else’s home, but it is not yours. Keep that in mind at all times.
Obviously, you should only be looking at properties where you would be happy to live. You must, however, avoid getting emotionally attached to them. Your attitude needs to be that you want a good deal for your money and will go on looking until you get one.
If any given property is out of your budget (or just overpriced) and the seller is not prepared to reduce the price, then just move on. If you really liked the property, then keep an eye on the listing. If the seller does not get a sale, they might become more flexible on price further down the line.
By the same token, however, be careful about focussing so much on getting a bargain that you lose out on a great property you could have afforded.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage
Please contact us for any more information.
by admin | Dec 6, 2020 | Mortgage News
Since 2001, the UK has had no fewer than 16 housing ministers. Seven held the post under a Labour government. Nine have held the post under a Conservative government. None have succeeded in resolving the many issues with the UK’s housing market. Now it’s Boris Johnson’s turn to try.
A conference to remember
Even though the Conservative party conference is an annual event, the 2020 conference will probably go down in history as an event to remember. It was the first time the conference had been held virtually. The reason it was held virtually was due to a global pandemic and, of course, it was the last Conservative party conference before Brexit.
It was therefore entirely understandable that the Prime Minister would use the occasion to try to spread at least some cheer and general positivity. One of the ways he did this was by setting out a plan to convert the current under 40s from “Generation Rent” to “Generation Buy”.
The Prime Minister’s plan is thin on detail
At present, there is virtually no specific information available about the PM’s intentions. All he has said is that he intends to make it possible for first-time buyers to buy homes with only a 5% deposit. This statement in itself is rather odd because it is already possible for them to do so via the existing Help to Buy Equity Loan scheme.
As a quick reminder, this was due to have been closed at the end of March 2021. It has, however, been officially extended to the end of March 2023. It will, however, only be available to first-time buyers. There will also be some adjustments to the level of help available. The fundamental mechanics of the scheme will, however, remain the same.
To recap, under the existing Help to Buy Equity Loan scheme, buyers put down a 5% deposit. The government guarantees 20% of the remainder so the buyer only needs a mortgage for the remaining 75%. The government loan is interest-free for five years. After this time, the buyer can either buy them out or pay interest on the loan.
Help to Buy Equity Loan Part 2?
If Boris Johnson simply meant to extend the existing Help to Buy Equity Loan scheme without any changes, then presumably he would just have said so. This suggests that, while the basis of the idea might be the existing Help to Buy Equity Loan scheme, there are going to be some changes to it.
The risks of extending the Help to Buy Equity Loan scheme
Extending the Help to Buy Equity Loan scheme to include completed property might placate those who object to homebuilders profiting from the taxpayer. It would, however, create additional risks, which could rebound on the taxpayer.
The first risk is the risk of creating a housing bubble, or, at the very least, creating excessive house-price inflation. If it does, then there are massive risks to everyone, including, possibly especially, the next generation of first-time buyers.
The second risk is the risk of default. Quite bluntly, the Help to Buy Equity Loan scheme does not make housing more affordable by making it less expensive. It makes it more affordable by restructuring the financing. It also puts the taxpayer on the hook for much of the risk of default on that financing.
Your property may be repossessed if you do not keep up repayments on your mortgage.
by admin | Aug 21, 2020 | Mortgage News
If you’re a potential first-time buyer then you may currently be very confused by all the headlines regarding the health, or otherwise, of the property market. There’s an easy way to deal with this confusion – ignore them. Focus on the fact that homes are meant to be places where you live. The fact that they also tend to increase in value over the long term is simply a useful bonus.
With that in mind, here are some questions you should be asking yourself before deciding whether or not to aim to buy now or wait until later.
Am I 100% sure I can service a mortgage over the next 5+ years?
When it comes to mortgages (and by extension home-buying), this is the key question. Ideally, you should be confident that you can service a mortgage over the entire term (without having to sell your home). In the real world, however, the length of mortgage terms means that it’s close to impossible to know what you’ll be doing (financially or otherwise) at the latter part of them. You should, however, be totally confident about what you’re doing for the next five years and if you’re not, then you’re probably better off renting.
Remember that buying a home and being unable to keep up with your mortgage can work out a very expensive and painful experience particularly if you end up in negative equity (owing more than your house is worth). You are especially vulnerable in the first five years or so of ownership. This is not only the time when you’ll have the least equity in your home, but also the time during which you’ll still be swallowing up the purchase and moving costs.
Am I 100% sure I can commit my deposit money over the next 5+ years?
Similar comments apply here. Once you convert your cash into bricks and mortar it stays converted until you sell your home. Selling your home within the first five years of purchase can see you having to take a hit on the transaction costs, not to mention having to deal with a whole lot of upheaval. In short, if putting together a deposit would leave you very short of cash, then you might be better off renting. Even with insurance, you have to think about what would happen if you had any sort of emergency.
Do I want to stay in one place over the next 5+ years?
In principle, you have the option to buy a house, live in it for a while yourself, then let it out while you go to live elsewhere, for example, if you go to work overseas. In practice, the amount of administration and cost this can involve means that it’s probably only worth even considering in very niche situations.
For example, you’ll have to change every product associated with your house, including your mortgage and insurance, from residential-property products to investment-property products. You’ll also need to meet all your legal and compliance obligations regarding the maintenance of the property and the welfare of your tenants.
This means that these days, you should buy a property on the assumption that you’ll be living in it yourself until you’re ready to sell it. If you’re thinking of letting your property on a non-residential basis (for example allowing holiday rentals for part of the year) and/or having a lodger, then you would need to check with your mortgage lender and your insurance provider(s) to make sure that this would be acceptable to them.
For completeness, if you are thinking of using your main home as a holiday let for part of the year, then you should also check with your local council to make sure that this is permitted.
Your property may be repossessed if you do not keep up repayments on your mortgage.
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