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 | Sep 30, 2021 | Mortgage News
Babies are a lot of work. That’s a large part of why parental leave is so valuable. It allows parents to concentrate on parenting. At the same time, life goes on, and new parents need to keep on top of life admin and payments. With that in mind, here is a quick guide to mortgaging, remortgaging and parental leave.
Lenders are concerned about affordability
The first point to tackle is the elephant in the room. Lenders are required to examine a borrower’s ability to repay a mortgage. Parental leave and the expenses of having a baby can significantly impact a borrower’s ability to pay. They can therefore make it harder to get a mortgage.
There is, however, a clear difference between “harder” and impossible. In general, the key to success is understanding the obstacles you are likely to face. Then you can work to overcome them. In general, and as is often the case, the better your planning, the easier the change is likely to be.
Planning impresses lenders
When lenders assess your ability to pay, headline figures are only part of the story. They also look at your ability to manage your finances. In the context of mortgage applications, this means a lot more than “just” paying your bills in full and on time. That said, this is an excellent place to start. It also means showing you’ve thought about what the future might bring.
For example, if you’ve been planning on starting a family, have you been saving hard to build up a significant “cash cushion”? Once your parental leave is over, do you have a plan in place for childcare? If so, how are you going to finance it? Be very careful about relying on family help. Your family may be willing, but they are not guaranteed to be able, especially regarding grandparents.
Have you been able to build up an income stream outside of employment? If so, can you feasibly continue with it while also caring for a baby? How much income can you realistically generate from it? Do you have other assets you can monetise, even temporarily, such as a spare room?
Don’t blow your deposit on the baby
You’ll undoubtedly need some items for your baby, especially if you’re a first-time parent. Keep in mind, however, that new parents are prime targets for advertisers. Ignore paid-for promotions. Visit parenting groups and find out from other parents what you actually need and don’t need. Also, try to buy pre-loved as much as possible.
Consider your timing
This may not be an option for everyone on parental leave. It is, however, at least worth considering if you can. The last trimester of pregnancy and the first three months of a newborn are both joyous and exhausting. If you can’t sort out your mortgage before that time, it might be easiest to wait until later.
Usually, babies start to develop a more predictable rhythm when they are about three months old. They also tend to sleep for longer at a time, particularly at night. These changes can make it much easier for parents to organise non-baby-related aspects of their lives. It will also give a potential lender a better idea of how you’re managing your finances now that you’re parents.
Use a mortgage broker
Even if you tick every box as an ideal mortgage candidate, it can still be worth using a mortgage broker. Firstly, it can save you time. For new parents, there’s probably nothing more precious. Secondly, mortgage brokers can suggest deals you might never have found yourself. For new parents, this can be invaluable.
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. We offer flexible appointments at a time and location to suit your – and your baby’s – busy lives!
by admin | Aug 6, 2021 | Mortgage News
The saga of mortgage prisoners has been rumbling along since 2014 (when the recommendations of the Mortgage Market Review were implemented). Understandably, it has rather taken a backseat to both COVID19 and Brexit. It now appears to be back on the agenda with the industry, the FCA and the houses of parliament.
News from the mortgage front
Back in April, the plight of mortgage prisoners was highlighted, again, due to a brief skirmish between the government and the house of Lords. When the Financial Services Bill was presented to the Lords, they backed an amendment calling on the government to cap the Standard Variable Rate (SVR) lenders could charge mortgage prisoners.
This amendment was, however, rejected by parliament, leaving mortgage prisoners stuck with the status quo. In July, however, both the Treasury and the FCA made public statements indicating that the matter was still very much in their sights. In fact, the FCA is due to submit a review to parliament in November.
What will the review contain?
Obviously, the exact contents of the review will only become public when it is complete. It is, however, safe to assume that it will include an estimate of the size of the problem. The FCA previously estimated that there were around a quarter of a million mortgage prisoners (in July 2020). It now acknowledges that the number may be greater.
The FCA has also indicated that it will look at the effectiveness of the steps already taken to release mortgage prisoners. Presumably, this will provide some level of insight as to what is and is not working at the moment. It may therefore inform any changes the government may choose to make.
What changes could the government make?
Realistically, the government only has two options. The first is to change the affordability criteria, at least for mortgage prisoners. The other is to take steps to make it easier for mortgage prisoners to satisfy standard affordability criteria. Both options raise clear questions and potential issues.
The first option raises the question of who will be responsible if a former mortgage prisoner defaults on a mortgage they would never have given under current rules. If this risk is placed on the lender, then lenders might choose to play it safe and decline the application. This would therefore effectively send mortgage prisoners right back to square one.
The government could get around this by offering some kind of guarantee to lenders. There is certainly precedent for them doing so. The government already offers support to first-time buyers and certain other buyer groups. They could extend this to mortgage prisoners.
The issue here is that subsidising one group of buyers effectively gives them an advantage over other groups of buyers. This does not necessarily go down well with those other buyers, especially not if they are paying for the subsidy through their taxes.
What options are likely?
The government has to deal with the financial consequences of COVID19 and Brexit along with wider issues such as social care and major projects such as HS2. It, therefore, seems safe to assume that it will wish to avoid taking on any more financial commitments than it can help.
This would suggest that the path forward may be to restructure affordability rules albeit with heavy caveats. For example, the government may allow lenders to relax affordability rules if a borrower is already making repayments of the same amount or more. Obviously, the borrower would need to demonstrate a consistent track record of making those repayments.
Another option might be to insist that borrowers have some form of insurance to cover their repayments at least for a certain period. This requirement could potentially be waived for borrowers who have a minimum level of equity in their homes.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage
by admin | Feb 12, 2021 | Mortgage News
New research from mortgage broker Habito suggests a worrying lack of awareness about how mortgages work. It shows how a lack of financial education can have a serious impact on personal finances. Here are some of the key takeaways.
Ignorance is not bliss
Almost 20% of people did not know whether or not they were on their lender’s standard variable rate (SVR). In other words, they do not understand one of the most fundamental points of their mortgage.
Almost half of the respondents did not understand what remortgage was. The source of confusion varied.
- 6% of respondents did not know the term remortgaging
- 8% of respondents thought it was the same as taking out a second mortgage
- 17% of respondents thought it meant taking on more debt or was only done out of need.
To be fair to the last set of respondents, remortgaging can be used as a way to cover other expenses. It can also be used as a debt consolidation tool. It may therefore be that these respondents have heard about it in that context and not really understood its wider meaning.
Inaction can be expensive
Just over a quarter of people knew that they were on their lender’s SVR. This means that either they did not understand the impact of this or they did understand the impact but were not taking action to remedy it. This could be because they did not see it as a priority or it could be because they felt they were not in a position to do so.
Interestingly 11% of people felt uncomfortable about having lenders scrutinize their finances. This is just under half of the people who knew that they were on their lender’s SVR. That could be a coincidence but it could also be cause and effect. In other words, people might grit their teeth and pay more than they needed rather than expose their financial situation to view.
There may also be a connection with the findings of separate research by another mortgage platform, Haysto. This highlighted the stress and frustration felt by people who had been turned down for a mortgage.
If people feel like their finances are too precarious for them to have a reasonable chance of being accepted for a new deal, they may not even try to apply for one. This possibility would tally with the fact that data from the Bank of England shows that between February and November 2020 remortgaging dropped 33%.
A little knowledge can be dangerous
A worrying one in ten people thought that paying their lender’s SVR would help them to clear their mortgage quicker. On the one hand, it’s great that people have grasped the general importance of paying as much as you can towards debts.
On the other hand, it’s very concerning that some people clearly do not understand the difference between capital and interest. Assuming this ignorance carries over into other areas of their lives, they could easily also be overpaying on other products such as loans and credit cards.
A possible way forward
While acknowledging the importance of personal responsibility, it is also important that businesses and governments are responsible too. As a minimum, the government/FCA could place an obligation on lenders to remind people when they are due to be switched onto the lender’s SVA.
This reminder could contain a clear explanation of the next steps, including the possibility of remortgaging. It could also have pointers to other sources of information such as the Money Advice Service.
If the government wanted to take this a step further, it could restrict the percentage of mortgages lenders could have on the SVR. This could be done either via a direct cap or by taxation.
Your property may be repossessed if you do not keep up repayments on your mortgage.
by admin | Jan 15, 2021 | Mortgage News
COVID19 is battering the economy. Brexit has happened. There is no telling what 2021 will bring and yet the housing market is forging ahead. According to the Halifax House Price Index average house prices have increased 7.6% in the year to November and 1.2% between October and November. This begs the question of why house prices are rising.
The Stamp Duty holiday
Possibly the most obvious reason why house prices are rising is the Stamp Duty holiday. Quite simply, by making most buyers pay less to HMRC, the Treasury left them with more budget available for the offers themselves.
If this is the only factor driving the housing market, then its effect should begin to wear off very soon. The offer is due to come to an end on 1st April 2021. That’s basically for three months. What’s more, the Stamp Duty holiday only applies to purchases completed before that date. In other words, the conveyancing has to be finished.
The great escape to the country
The great escape to the country may be a bit of an overstatement. There is, however, clear evidence that home buyers want more space. On a like-for-like basis, bigger properties tend to cost more than smaller ones, hence average house prices could rise, possibly substantially, at least over the short term.
Over the long term, however, there are a lot of variables to consider. One of the most obvious is the question of what happens with smaller properties? If their owners hold on to them, then the strong house price rises could continue, fuelled by the sale of the larger properties.
If, however, their owners lower the prices to get rid of them to someone, then prices could level or even fall. A lot would depend on how many smaller properties were sold and at how much of a discount to what you would expect given pre-COVID19 housing trends.
The remote working issue
The question of whether or not the appetite for more space continues may depend largely on the question of whether or not remote working becomes an established part of the (post-COVID19/post-Brexit) “new normal”.
At present, this is literally anybody’s guess. It is, however, worth noting that COVID19 has forced companies to support remote working. This demonstrates that it can work at least to some extent. The question is, therefore, really whether or not companies see any benefit to it once the current pandemic is consigned to the history books.
The answer to that question is likely to be “it depends on the company”. Some companies may be only too eager to get their staff back into the office. Others, however, may be looking at the cost-savings of reducing their office space and the opportunities offered by being able to extend their recruitment process beyond their local area.
Seizing the moment
Another possible reason why buyers are so active now is that they don’t know for sure what’s going to happen in the future. Since March 2020, the UK has essentially been in various stages of lockdown in various parts of the country. Buyers (and sellers) might have been motivated by the thought that they might not get another chance to move any time soon.
If this is the case then, again, it’s debatable how long this stimulus will last. Up until recently, talk of a vaccine has been largely just that talk. Now, it seems to be making its way into reality. Depending on how this progresses, it may calm the nerves of buyers (and sellers), who fear being trapped in an unsuitable home for another lockdown (or more than one).
Your property may be repossessed if you do not keep up repayments on your mortgage.
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