Borrowers that need to re-mortgage could be missing out on savings of thousands of pounds by not moving to a new mortgage deal. Mortgage rates are at their lowest levels following two historic Bank of England base rate cuts. Since the Covid-19 crisis, mortgage lenders have withdrawn many products from the market. The reason for these is due to operational constraints such as mortgage surveys and physical valuations. Lender contact teams have also been under pressure due to the high volumes of calls regarding payment holidays. All of this has placed constraints on lenders’ ability to process new re-mortgage applications, however there are signs that lenders are adjusting processes to overcome these constraints.

 

Large lenders are moving towards automated valuations:

For several years there have been appraisal companies, such as Hometrack in the UK, providing banks with near-instant and automated valuations for residential properties. These services enable banks to cut costs and improve customer service by offering quicker mortgage decisions, sometimes within two minutes.

There are options available for remote valuations / surveys. Photos of a property can be sent to a lender via an app for processing. Alternatively, Valuations are being carried out via remote visits which include a drive-by of the property in a vehicle to assess the information is correct and form the valuation.

The UK’s 10 largest lenders will all use automated valuations on residential mortgages and 8 of these will use this on re-mortgage applications of up to 85% loan-to-value (LTV). Those looking to re-mortgage at higher LTVs will have less choice available.

Using a mortgage broker will help those wanting to re-mortgage – especially for those borrowing at a higher loan-to-value (LTV).  A mortgage broker will find a lender who is more likely to accept a re-mortgage application.

Access to expert insight and knowledge has never been more valuable, for those looking to take advantage of the potential savings from the current interest rates. Borrowers will also benefit from the help of a mortgage advisor knows which lenders can use automated valuations and whether these are applicable to certain lenders along with current processing times.

 

Speak to JP-Finance for peace of mind:

Here at JP-Finance we receive the latest industry news prior to the general public and have the most up to date knowledge on lenders and any lending restrictions and limits.

If you’re looking to re-mortgage, buy or sell your home, or you are worried about the current situation, speak to a member of our team for free advice.

 

JP-Finance (UK) Ltd is an appointed representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading style of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority.


relief

 

 

Every two years Sport Relief raises money to help those in need. We all follow the news about celebrities braving the weather and all sorts of conditions they aren’t used to – all the in name of charity. Some of us even get involved ourselves and participate in walks, runs, or other sporting activities to help.

Watching the telly as people share stories of how their communities and lives have improved from your donations is a powerful motivator! It’s no wonder the event raises millions of pounds to help not just communities around the world, but right here in the UK as well. They fund over 2,000 projects in the UK through nearly 500 grants1.

Now think about those people in need you’re helping with your donations… what if it was your own family in their place? Wouldn’t you want to do everything you possibly could to help them and ensure they have everything they need in the face of disaster or the death of a family member?

Of course you would! And you can – by having the right protection in place.

What would happen to your family if you or your partner were to die? Do you have sufficient protection to take care of them financially so they can keep their home and pay the bills? Would you want them to rely on government benefits or charity handouts just to get by?

What if it’s just a serious illness? A diagnosis can have a significant impact on your family! Having cover in place will help you deal with the financial implications of a diagnosis. Many providers now include indispensable support with their policies to help you and your family cope with a death or illness. That additional support could be a game-changer when your circumstances change dramatically.

Sport Relief and other charities show us that we have a soft spot for others in need, so make sure you donate to your own future and protect yourself, your home and your family!

Speak to us today to find out how we can help you.

 

JP-Finance (UK) Ltd is an appointed representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading style of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority.

 

  1. www.sportrelief.com/where-your-money-goes

 

According to a recent article in FT Adviser, “Homeowners in Britain are woefully under-prepared in the event of long-term sickness, accident or ill health.”1

Nobody plans to get hit by a bus but these things do happen! Should you be left unable to work do you have a plan in place to keep paying your bills and mortgage?

Royal London’s recently commissioned State of the Protection Nation research highlights that only 19% of people with a mortgage have income protection in place, which leaves 81% unprotected!2 Is this you?

While you’re probably aware of the benefits of protection, the expertise of an adviser can help steer you in the right direction to ensure you’re protected when you need it most. If you take a look at LV=’s Risk Reality Calculator it will show you the likelihood of needing to claim on income protection, critical illness cover and life cover based on their research.

But it’s not only mortgage holders that need protection in place, renters need income protection just as much as homeowners. After all, the chances of an accident or illness making you unable to work don’t go away just because you rent!

Contact us today to see how we can help you find the right income protection policy for your needs, our panel of providers can offer something for everyone, so there’s no excuse!

Sources:

1: FT Adviser, 8 out of 10 mortgage holders have no income protection, May 2018

2: Royal London, State of the Protection Nation, May 2018

3: LV= Risk Reality Calculator http://riskreality.co.uk/gen

 

JP-Finance (UK) Ltd is an appointed representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading style of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority.


hospital

 

What If…

A recent sudden illness turned out to be just appendicitis. But what if it had been worse?

“My 11 year old son was rushed to hospital last Thursday night and on Friday morning had his appendix removed. Thankfully it was only appendicitis and he was able to come home on Saturday. My 2 night tour of A&E and the children’s ward opened my eyes.

 

  • Firstly, and sadly, my eyes were opened to sheer number of kids on the ward, of all ages and for all sorts of reasons; some clearly long-term. It hammered home to me just how often ‘it happens’ to those who say ‘it’ll never happen to me’. And that’s just one ward, in one hospital, in one town, on one day.
  • The occasional word cuts through the general hullabaloo of a busy children’s ward. When the word ‘Oncology’ rings out it sends a shiver down your spine.
  • Then there’s the sheer logistical mess of trying to juggle being with J and still being around for the other two kids at home – because even with a child in hospital, life goes on.

 

And the juggling is hard work, complex, and expensive with two parents, two cars, 3 kids, one in hospital, two at school, and a dog. J wants his mum and dad with him, but the other two can’t come home to an empty house and aren’t old enough to go shopping or cook their own meals, so they need a parent with them too. Then there’s the valiant attempt to maintain ‘business as usual’ for the two at home; homework, swimming, gymnastics, the morning chaos that’s called getting ready for school. And the dog to walk!

 

Mrs B spent Thursday night in hospital with J trying to sleep, best she could, on a chair. So on the Friday morning I sort the usual routine out, get the brother and sister off to school, run the dog around the field quickly then shoot to the hospital. Mrs B and I sit there with J, make him as comfortable as possible and reassure him before he makes his way to theatre, clutching both our hands as he’s wheeled along busy corridors. As he recovers, we buy a couple of meal deal lunches from the hospital branch of Boots and realise just how expensive cold and old sandwiches can be.

 

Then soon after lunch I head home to let the mutt out, give her a walk that Mo Farah would be proud of and be back home in time for when kids 1 and 2 come home from school… and realise as I leave that we’re paying most of our money to the hospital car park.

 

And all the time, I’m trying to think about the work I should be doing. Oh my word! Work! How can I go there with a child in hospital and two more to juggle with? What’s going to give?

 

Well luckily I was only away from work on the Friday and with the blessing or curse of a smart phone was at least able to keep on top of most things. Not every parent has a job that would enable them to do that.

 

Gone are the days of burying your head in the sand and claiming “It won’t happen to me”. It DOES happen and it’s not always just appendicitis.

Juggling family, work, and trips to the hospital is difficult, just over a short period of time. Imagine it was more serious? How would you cope if it required a longer stay? Would your employer understand after more than a few weeks? Could you afford the extra of a long hospital stay?

And what if it’s cancer?

Our infographic shows you some stats from AIG Life’s claim stats and Macmillan’s ‘Cancer’s Hidden Price Tag’ research report.

Could you afford to lose over £500 a month? What about over £800 a month? Plus an increase in monthly expenses on top of that loss?1

The cost of cancer is calculated as the loss of income and the additional costs experienced as a result of a person’s diagnosis.

It does happen, and it’s very costly when it does!

Contact us today to see how we can help you find an affordable protection plan that includes FREE children’s Critical Illness Benefit that will pay up to £25,000 on a valid Children’s Critical Illness claim.

Protect your children and your family today!

 

 

JP-Finance (UK) Ltd is an appointed representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading style of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority.

 

Sources:

1: http://www.macmillan.org.uk/Documents/GetInvolved/Campaigns/Costofcancer/Cancers-Hidden-Price-Tag-report-England.pdf

 


On Thursday 19 March, just days after the base interest rate was cut from 0.75% to 0.25%, The Bank of England has slashed the base rate in a further emergency response to the coronavirus pandemic, reducing the rate from 0.25% to 0.1% The latest cut takes the base rate to its lowest-ever level.

 

Why are interest rates cut?

The Bank of England lowers interest rates in order to stimulate economic growth. Lower financing costs can encourage borrowing and investing and therefore encourage growth.

 

During the on-going COVID-19 crisis, more than 1,500 mortgages have been withdrawn from the market in the last two weeks. Mortgage lenders such as Nationwide and Satander have withdrawn loans to buyers with a loan-to-value of 75% (deposits smaller than 75% of the property’s value), while NatWest and Halifax will now only lend up to 80% of a property’s value to new customers.

Other lenders have withdrawn from the market entirely, including Vida Homeloans and Atom Bank.

Lenders have also completely withdrawn Tracker Mortgages, including: Nationwide, Newcastle Building Society, HSBC and The Mortgage Works.

 

What is a tracker mortgage?

The interest rate on a tracker mortgage is linked to the Bank of England base rate. So if the base rate changes, the mortgage rate will change.

 

So why are lenders pulling mortgage products from the market?

During the current ‘lock-down’, many non-essential companies have instructed all staff to either work from home or have furloughed their staff. This applies to employees who are not key workers – e.g. NHS staff.

 

What is the lock-down?

As of Monday 23 March – the prime minister has put the UK into lock-down and instructed all citizens to stay at home. People can only leave their homes to exercise once a day, go shopping for food and medication, travel for medical needs or to care for a vulnerable person, and travel to work only if essential.

 

What are furloughed workers?

Under the Coronavirus Job Retention Scheme, all employers in the UK will be able to access support to continue paying part of their employees’ salaries (up to 80%) who would otherwise have been laid off during the ongoing crisis.

Furloughed workers are those whose employers have asked to stop working but have not been made redundant. These workers may not be able to carry out their jobs during the crisis.

 

Lenders are currently restricting lending due to staff shortages and increased demand for payment holidays. They cannot cope with new business, so they are stating that these measures are only temporary. Everything should go back to normal once the crisis is over.  We advise to stay calm as the restrictions on lending are temporary. For the best advice, contact your mortgage broker If you are looking to buy or re-mortgage during these unprecedented times.

 

Speak to JP-Finance for peace of mind:

Here at JP-Finance we receive the latest industry news prior to the general public and have the most up to date knowledge on lenders and any lending restrictions and limits.

If you’re looking to buy or sell your home, or you are worried about the current situation, speak to a member of our team for free advice.