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Buy to let mortgages … tricky but still worthwhile

Whether you already hold a portfolio of investment properties or see yourself becoming a property landlord, it will come as no surprise to learn that obtaining a buy to let mortgage has become a little more difficult of late.

For those trying to build a property empire, the latest set of requirements from the Prudential Regulation Authority has meant jumping through more loopholes to obtain a buy to let mortgage. From late 2017, landlords with four or more mortgaged buy-to-let properties need to provide a full analysis of their borrowing commitments across their portfolio before a lender will agree a further mortgage loan.

With the increased demand for home rental, a buy to let option still represents an affordable and sound financial investment in most cases, based on purchasing the right property, knowing which type of tenants you aim to attract, and fully understanding the rental potential whilst taking into account maintenance and any ongoing costs or fees.

Oliver Bishton from local independent mortgage broker Homeline Mortgages said, “Although the buy to let mortgage market has gone through a turbulent period, we are beginning to see significant changes from lenders. Some new products have recently come to market specifically for the buy to let borrower, with slightly better interest rates and fixed term options of 2 or 5 years. The buy-to-let mortgage you will be offered depends on your circumstances and the lender’s criteria. Typically, they will look for bigger deposits, strong rent to mortgage payments cover and other income streams. You will also need to be prepared for higher arrangement fees and a longer decision period.”

For anyone thinking about applying for a buy to let mortgage, the best advice is not to go it alone. With the new rules and regulations and increased amount of number crunching involved, the services of a good mortgage broker will come into their own.

Olly added, “An independent mortgage expert can really benefit you in the mortgage application process. We have our finger on the pulse of which lenders are offering the most competitive deals, plus we help you with all the preparation and paperwork which can significantly enhance your chances of getting mortgage approval and speed up the process.”

Despite the introduction of the 3% stamp duty levy, and the new stress tests for landlord mortgages, latest figures released reveal that the number of buy to let investors in the UK has hit an all-time high of 2.5m in the latest tax year. “Becoming a landlord is still an interesting proposition for many people, and at Homeline we are always happy to advise on all aspects of your mortgage application. We offer a free initial consultation to ascertain your chances of a successful buy to let mortgage application.”

To book an appointment call 01202 937444 or visit www.homelinemortgages.co.uk

A fee may be charged should you proceed with a Mortgage or Protection application. Please ask your adviser for further details. Your home may be repossessed if you do not keep up repayments.

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How far would you go without your salary?

This is a question at the forefront of every conversation that we have with our clients when discussing their protection needs. At Homeline, we always aim to go the extra mile for you and offer you a holistic view of your financial situation not only at present, but in the future if any eventuality were to happen to you or one of your loved ones.
Most of us have nowhere near the savings buffer that will allow us to make ends meet if we were to stop working due to illness. In fact, 57% of UK households have less than £5,000 in cash savings (1).
When thinking about how to protect your family, it is important to consider not only the basics of Life Insurance and/or Critical Illness Insurance to cover your mortgage, but also discuss with our advisers Income Protection insurance. After all, more than a third of us will be unable to work for longer than 2 months before retiring and that will not necessarily be because of a Critical Illness (2)
With more 97% of insurance claims being paid (3) and policies being more and more flexible to adapt to all budgets, there is really no excuse to protect your family and yourself against the financial implication of a long-term illness. After all, to protect your home does not mean to protect your house, but the people that lives within it.

If you would like to discuss this, or any anything else, contact our advisers today on 01202 937444 or visit our other websites to speak to a mortgage broker in Reading or a mortgage broker in Bournemouth

(1) FCA Cash savings market study report (Jan 2015)
(2) Hannover Re 2017, based on a 30 y.o. retiring at 65
(3) ABI (Association of British Insurers

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What no one would mention when talking about interest rate rises

Interest rate rises will happen, the only doubt that everyone has in their mind is when would it be. The Bank of England hinted in February that this could happen as soon as May. We have seen the market predicting a 0.25% increase within the next 6 months and some economists believe that the Base Rate will certainly hit 1% in 2019.

With this in mind, it is only natural to turn our attention to the biggest debt in any household: the mortgage. According to the Bank of England, 62% of all mortgages are on a fixed rate and, if you have previously applied for a mortgage through Homeline Mortgages, we will contact you in advance to review your financial situation.

However, there is a hidden cost that not many people mention when talking about interest rate rises: unsecured debt. This is credit cards, personal loans and any other debt that is not secured against your house. This kind of lending is less reactive to interest rate rises, as this market takes more time to react and adapt its products.

However, the consequence of this kind of debt rising due to higher interest rates will mean that your household finances might be stretched. The average adult in the UK has £3,975 of unsecured debt and Citizens Advice dealt with more than 2,700 new debt problems every day in December.

One of our advisers, Oliver Bishton, recently dealt with a client that was able to save nearly £2,000/month on monthly payments when consolidating his unsecured debt into his mortgage loan, receiving excellent feedback for the service provided:

“Oliver, just a short note to thank you for your professionalism in turning around the resi so quickly. Having been in finance for 24 years, I have been very impressed and will have no hesitation in making recommendations to you”
David, London

This is definitely a conversation worth having to find out whether this might the best option for you.

If you would like to discuss this, or any anything else, contact our advisers today on 01202 937444 or visit our other websites to speak to a mortgage broker in Reading or a mortgage broker in Bournemouth

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Time To Spring Clean Your Finances!

With spring in the air now is a good time to take a fresh look at your finances. We think about the physical side of spring cleaning and rejuvenating our homes such as sprucing up and redecorating, so why not do the same with our household finances.
The team at local mortgage specialists, Homeline Mortgages, suggest there are several ways in which you may be able to freshen up your finances, starting with a look at your current mortgage arrangements.


Oliver Bishton, Mortgage and Protection Adviser says “If you haven’t reviewed your mortgage arrangements in the last 5 years, then we recommend that you take the opportunity to do so now. Many lenders have some excellent mortgage products on offer, and any savings you make could be utilised for general living expenditure, invested in your property, or used to reduce your loan and save on longer term interest payments on your home.”
With spring being a time of renewal it’s the perfect time to evaluate things and make any necessary changes. The team at Homeline Mortgages have put down their top 5 tips.

1) Sort out that pesky paperwork
Most of us are guilty of storing up household paperwork, so now is a good time to go through everything and throw out any out of date material and check the status of current policies etc. Take a look for example at the level of protection you have in place. Is it up to date, and are you covered for any unexpected eventualities, such as being made redundant or unable to work?

2) Check out your credit status
If you are applying for a mortgage or any sort of loan, any lender will check your credit rating. You can use free credit checks from companies such as Experian and Equifax and use the report to help you work out your financial position.

3) Clear out unwanted stuff
If you’re having a spring clean, how about making some cash from your unwanted stuff. Good quality items that you no longer want or use could be sold on online sales sites or a local car boot or even a garage sale. The proceeds could go towards a home improvement or decorating project. If you’re a first-time buyer, selling things you no longer need could help you boost your savings on the deposit for your first home.

4) Shop around
There has been a lot of media coverage lately about how the main suppliers we use for our home utilities and services are not rewarding us for customer loyalty. It’s worth spending a bit of time checking out if you could save money on regular household bills such as gas, electricity, telephone and broadband bills.

5) Make your money work harder for you
If you are having a spring money make over, look at any savings, ISA’s, pensions or investments. Make sure your money is working hard for you, and if you need help with specific matters, we can put you in touch with our sister company <a href=”www.baggette.co.uk”>Baggette Wealth Management</a> for whole of market, independent financial advice.

Homeline Mortgages offer a free, no-obligation mortgage and protection review.
To talk to an adviser or book and appointment call Homeline Mortgages on 01202 937444.

A fee may be charged should you proceed with a Mortgage or Protection application. Please ask your adviser for further details.
Your home may be repossessed if you do not keep up repayments.

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What happens if you don’t fit the ‘mortgage mould’?

What happens if you don’t fit the ‘mortgage mould’?

As anyone who has applied for a mortgage recently will know, lenders may be offering very preferential rates, but they are being over particular about who they lend their money to.

Although 2017 saw the highest level of mortgage borrowing since 2008 spurred on by the continuing low interest rates from the Bank of England, most of these were mid-market and low loan to value borrowers who represent the safest bet for mortgage lenders.

So, what happens if you are categorised as a ‘non-standard borrower’? Kosta Shabrov, mortgage specialist for Homeline Mortgages in Poole states that this is where the services of a broker come to the fore.

“If for example you attempt to source your own mortgage using an online comparison website, you could fall foul of their automated credit scoring processes.  Mainstream lenders can sometimes look less favourably upon people who have a poor credit history, are self-employed, borrowing into retirement, are divorced or have irregular income. It’s a numbers game which doesn’t always take into account individual nuances “commented Kosta.

“The main thing is not to panic. If you do come under the term ‘niche borrower’ there are still plenty of smaller lenders who are geared up to making mortgage offers.”

Some of the high street names will still lend to non-standard borrowers but brokers often find that the preferential rates with fewer obstacles to overcome are from the less well-known brands. Those seeking a mortgage shouldn’t be put off by going with a less familiar name, your broker will do all the research to ensure that you are getting the best mortgage available which will suit your individual requirements.

Since the credit crash and the implementation of new affordability rules came into force, some potential borrowers have found themselves becoming mortgage ‘misfits’.

Kosta went on to say “We can help identify the right lender for your personal circumstances. For example, there are lenders who look favourably upon freelance workers or the self-employed. Others are more flexible if you want to borrow into pensionable age, and so on.  Your mortgage broker should be independent and not tied into any specific lenders and their detailed knowledge of the market should enhance your chance of getting a mortgage offer.”

At Homeline Mortgages the advisory team are used to supporting potential homeowners and helping them improve their borrowing prospects. For anyone thinking of applying for a mortgage the same advice will stand them in good stead, such as reducing any other borrowing including loans or credit cards, checking their credit score, and preparing a history of financial detail, such as income and all outgoings. In the case of being self-employed you’ll ideally need up to 3 years’ accounts verified by an accountant and proof of your earnings.

If you would like to discuss this, or any anything else, contact our advisers today on 01202 937444 or visit our other websites to speak to a mortgage broker in Reading or a mortgage broker in Bournemouth

A fee may be charged should you proceed with a Mortgage or Protection application.  Please ask your adviser for further details. Your home may be repossessed if you do not keep up repayments.

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