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 | Jun 4, 2023 | Mortgage News
There are plenty of online mortgage calculators to help you figure out the likely cost of your mortgage. It is, however, useful to understand how the calculations are worked out and the influencing factors you need to consider. Here is a quick guide to help.
Calculating the total cost of a mortgage
It’s vital to remember that you can only compare mortgages fairly if you look at their total cost rather than just the headline interest rate. Sometimes this will involve making estimates, but you should be at least fairly confident that your estimates are accurate. If you’re unsure how your finances will look over the next few years, maybe a mortgage is not for you right now.
The main factors influencing the cost of a mortgage are:
- The interest rate
- The term and amortisation period
- The initial set-up fees
It’s also advisable to know the Early repayment charge.
The interest rate
Interest rates can be variable or fixed. Variable rates track the base rate set by the Bank of England. In principle, this means that they have infinite scope to go up but can only go down as far as zero (unless the BoE did introduce negative interest rates). In practice, mortgage lenders may choose to set a minimum rate that would apply regardless of how low the BoE sets the base rate.
Fixed rates give you security, but they do not necessarily work out more affordable than variable-rate deals. For example, they may have added fees that increase the price, especially if you add them to the loan. You will then have to pay interest on the fees too.
It’s also worth pointing out that fixed-rate mortgages are fixed in both directions. In other words, if interest rates go down, you still pay the same fixed rate.
The term and amortisation period
A mortgage term is essentially the length of any initial deal e.g. a five-year fix. The amortisation period is the length of time it will take you to pay off the mortgage. Both will play a role in the cost of a mortgage.
The mortgage term determines when you must choose between remortgaging or going on your lender’s standard variable rate (SVR). The length of your mortgage amortisation period influences how much interest you will pay overall. In short, if everything else is equal, a mortgage with a shorter amortisation period will be more economical than a mortgage with a longer amortisation period.
The initial set-up fees
The initial set-up fees can be divided into fees you pay regardless of the lender (e.g. valuation) and fees that depend on the lender. It’s useful to know both so you can judge the cost of remortgaging. You also need to know if you can pay these fees upfront or if you’ll need to add them to your loan. If the latter, you’ll need to factor in the cost of the interest payments.
The early repayment charges
You may plan to pay off your mortgage early, but life doesn’t always go to plan. If that sounds depressing, remember luck can be both good and bad. Luck is, however, a part of life, or, more formally, your circumstances can change. If they do, you may need to exit your mortgage before the term ends, so it’s advisable to know how much this will cost.
Overall
These are the main financial points you should note. There may, however, be other factors you want to consider. For example, you might want to look for a mortgage that comes with a key benefit, like some level of flexibility with payments. It’s absolutely fine to take this into consideration.
Contact Coombes & Wright Mortgage Solutions for friendly, local, and flexible advice. We help people at all levels of the property ladder, from first-time buyers to homeowners remortgaging and property investors.
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by admin | Dec 20, 2021 | Mortgage News
When it comes to getting a mortgage, it helps a lot to prepare in advance. Firstly, you need to build your deposit. That can take several years. Secondly, you must make sure you make yourself an attractive mortgage candidate. Ideally, you want to allow at least six months for this. Then you need to put in the proper mortgage application correctly.
Building your deposit
Everybody is different, so it’s impossible to say how long you should allow for this process. It is, however, possible to say that you should learn about lenders’ rules on deposits. Firstly, you need to know what percentage of a property’s price you will need to have to be even considered for a mortgage.
Secondly, you will need to know what sources of funds you are allowed to use to build it. In particular, research the rules around gifted deposits and ensure that you comply with them in letter and spirit. If you don’t, then there is a strong chance that your future mortgage application will be turned down, even if you are a perfect candidate in every other way.
Making yourself an attractive mortgage candidate
You want to allow at least six months for this. Your first step is to make sure that you have ID. If necessary, get or renew your passport and/or driving licence. Next, check and see if you need to do any administrative cleaning. Before applying for a mortgage, you want to be on the electoral roll at the address on your financial statements.
At a minimum, ensure that your current account and payslips/accounts all show the same address as your electoral-roll listing. Ideally, check the details of all financial products you hold. This may be a nuisance, but you should be doing it anyway.
Check your credit records with TransUnion, Equifax and Experian. Make sure that they are all complete and accurate. If there are any mistakes, contact the agency immediately to have them corrected. Similarly, if you have failed to mark accounts as closed, do so promptly. For example, if you have an old credit card you never used, call the lender and close it down properly.
During this period, think about your finances with particular care. Remember that your lender will scrutinise your bank statements, so think about how they are likely to appear to an objective third party. If necessary, get an objective third party to look at your bank statements as they currently stand. Ask them if they think you should change your spending habits, at least for now.
Putting in the proper application in the right way
You might find it very helpful to use a mortgage broker. They can guide you to the best deal for you and advise you on how to apply for it. The critical point to keep in mind is that lenders want to know the answer to three key questions. These are:
- Can you afford the mortgage?
- Will you repay the mortgage without any hassle?
- Can they recoup their money from selling the property if there are any problems?
The more convincingly you can answer yes to all three questions, the more options you are likely to have. With that said, you don’t need to give up in despair if you’re not a “perfect” candidate. You may still find a more niche lender who will take you on.
As a final point, when you submit your application, as obvious as this may sound, ensure that you follow all the instructions. Answer all questions fully and accurately and upload/send any requested documents. Administrative errors might not get your application declined, but they may get it delayed.
Why use Coombes & Wright Mortgage Solutions?
We are an award-winning mortgage & protection broker providing local, flexible, friendly advice. Our head office is in Brookmans Park, Hatfield, and we have advisers in Abbots Langley, Hertfordshire, London and Dover and Canterbury in Kent.
Our team has over 100 years of combined property and mortgage industry experience. Jointly, we have helped and advised thousands of people at all levels of the property ladder. We pride ourselves on personalised service, exceptional customer care and a friendly approach.
by admin | Dec 10, 2021 | Mortgage News
Two trends are combining to create what could be a significant issue for the mortgage market and, indeed, for the UK as a whole. Firstly, people are waiting longer to get on the housing ladder (or being forced to do so). Secondly, mortgage lenders are now offering multi-decade fixed-rate mortgages.
A new mortgage time bomb?
If you buy your first home in your mid-thirties and take out a forty-year mortgage (fixed-rate or otherwise), it will end in your mid-seventies. Of course, this assumes that you never change your mortgage. In reality, people who bypass starter flats and make their first purchase of a family home may well choose to downsize once the children have flown the nest.
Then again, they may not. Even if they do, they may not be able to pay the total price in cash. From a financial perspective, downsizing isn’t as cut and dried as it might appear. There are a lot of variables to consider. It has the potential to save people money, but this is not guaranteed.
It also needs to be acknowledged that some relationships come to an end. When they do, the two halves of a former couple both need to find suitable accommodation. This has clear implications for personal finances in general and mortgages in particular.
This means that, whatever way you look at it, there is at least a strong potential that people will still be paying off their mortgages well into their later years. Whether or not this means that they will be paying them off post-retirement will depend on individual circumstances. The most obvious of these is when, or indeed if, the individual retires.
What and when is retirement?
Retirement used to be pretty cut and dried. If you had bought a house, you had paid off your mortgage (or were at least very close to it). You had a defined benefits pension and/or a pension pot you used to buy an annuity. This gave you a liveable income for your (relatively short) retirement years.
Retirement is a combination of what any given individual says it is and what they can afford. Some people are able and willing to continue working indefinitely, at least in some capacity. Some people can work but do not wish to do so. Some people are not able to work indefinitely regardless of whether or not they want to do so.
Realistically, despite modern science’s benefits, age is more than just a number. Anybody can be rendered incapable of working even if they would like to. What’s more, even if you’re willing and able to work, the work might not be there for you to do. This means that it’s precarious to rely solely on continued income from work to pay your mortgage at any time. It’s particularly risky in your later years.
Mitigating the risk
The most obvious way to mitigate the risk of carrying a mortgage into retirement is to do as much as possible to pay it off before you retire. This may involve making sacrifices in the present to benefit your future self. For example, you might choose to let out a room in your house (even if it means the children sharing rooms for a while) and forgo treats like holidays.
You should protect your income so you can continue to pay your mortgage if hit by one of life’s curveballs. If you’re employed, you could look at payment protection insurance. Regardless of your employment status, you could look at critical illness cover, income protection insurance and life insurance.
Last but not least, you should maximise your savings and income for retirement. One potential strategy would be to use your Lifetime ISA to build up a pot you could use to pay down your mortgage upon reaching retirement age. They use a pension and/or other savings/investment vehicles to save for your living expenses.
Why use Coombes & Wright Mortgage Solutions?
Coombes & Wright Mortgage Solutions is an award-winning mortgage & protection broker providing local, flexible, friendly advice. Exceptional customer service is at the heart of everything we do. We simplify securing and completing your mortgage and protection cover from initial enquiry to completion. Our flexible and friendly format is built around you. We ensure you get professional advice, without jargon, at a pace and time to suit your needs.
We act as introducers for pensions, savings, investments, and payment protection insurance.
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