If you took out a mortgage when buying your first home, did you know it’s likely it will ‘mature’ after a few years?

This means that the initial deal you got on the mortgage will expire, and you could end up paying more unless you  do something, such as remortgage  your property. But as someone living in your own property for the first time, do you fully understand what remortgaging means, the process itself, and whether or not you need to do it?

 

In this short guide, we’ll answer these questions for you.

 

What is remortgaging?
If you own a property, you may be able to borrow money against it, using your home as collateral, or replace your current mortgage with one offering a better interest rate. Remortgages account for around a third of mortgages in the UK and can yield big savings for homeowners. Think of it as shopping around for the best deal, exactly as you would with other expenses such as insurance policies and mobile phone contracts, rather than sticking with the same one out of habit.

 

Your current mortgage is ending
Many homeowners have tracker, discount or fixed rate mortgages that are limited to a certain period of time, and when that time has elapsed, you’ll be put on what is known as a standard variable rate-mortgage (SVR – as it’s sometimes known).

Just like your broadband provider writing to tell you when your introductory offer is about to expire and your monthly bills will go up, your lender will do the same and tell you you’ll be moved to an SVR. Your mortgage broker will probably be in touch at the same time to guide you through the options.

They’ll have the right professional experience,extensive industry knowledge and the ability to search the entire mortgage market. That means you can be confident that any deal that’s recommended to you genuinely suits you and your circumstances, and that the advice you’re being given has been offered with your best interests in mind.

 

The remortgage process

With great support from your broker the remortgage process can be straightforward and simple.

 

Consider your options
Choosing the right option can be daunting,particularly if you’re not used to making these types of decisions, so the support of yourmortgage broker can be invaluable in steering you the right way.

Checking you’re eligible for a new mortgage
Your broker will want to see some financial details to establish which lender would be the right one for your circumstances. This could include credit card statements, bank statements, payslips and utility bills.


Decision in principle
Once your broker has found the right lender foryou, they will complete a Decision in Principle (DIP) with the lender and they’ll contact you to let you know the outcome. Be aware that this isn’t a formal mortgage offer, but more of a guide of how much you could borrow.


Apply for your mortgage
You should now be at the point where your broker can apply for a mortgage on your behalf. If you’re moving to a new provider, your broker will pass on your documents the new lender needs to process the mortgage application. Your broker will keep you updated with progress as well.


Your house is valued
The mortgage lender will value your property to establish that it’s worth the amount you want to borrow and that there’s enough equity for you to borrow the amount you want.


Speak to a solicitor or conveyancer
If you decide to move to a new lender, a Solicitor or Conveyancer needs to be brought in, so they can prepare any new documentation that’s needed. Many lenders offer free legals for remortgages, which means you can change mortgage lenders without going through the added stress or expense of finding a Solicitor. 

 

Mortgage offer issued
Once your lender is happy with the valuation and paperwork provided you, your broker and your Solicitor or Conveyancer will be sent a formal mortgage offer.

This will contain all the details and conditions of your mortgage, so it’s worth going through it carefully before accepting and raising any issues if you have them.


New mortgage completes
The details of your new mortgage will be registered with the Land Registry by your Solicitor or Conveyancer and any funds raised will be sent directly to you.

 


Reasons to consider a remortgage


Your wish to borrow more money
If you need money to make home improvements or pay to pay off debts for example, you might ask to borrow money from your mortgage lender, on top of what you currently owe. But if they say no or aren’t offering very favourable terms, what can you do?

Remortgaging could be the solution, as you may be able to get the money at a better rate. But be aware that a lender may ask why you need the money and might ask to see proof of how it has been spent.

 

You want certainty over interest rates
Interest rates can go up and down, and that can have a big impact on the size of your mortgage payments. So, if you’re worried about changing interest rates at a time of economic volatility, changing to a deal that offers fixed rates might be an appealing option.


The value of your property hasgone up
If your home is worth considerably moretoday than it was when you bought it, you could be eligible for lower rates, in which case remortgaging could be an option to look at.


Your mortgage lender won’t let you overpay
Many homeowners may want to pay more on their mortgage so they can pay it off sooner or reduce the amount of interest they have to pay. This is common among people who may have seen a change in their circumstances, such as moving into a better paid job. But some mortgages don’t give you the option of overpaying, so remortgaging could offer a solution to this.

 

 

How much money could I save by remortgaging?


This depends on your personal situation, but calculations by Yorkshire Building Society often suggest that thanks to increased house prices and often lower available mortgage rates, a borrower whose mortgage is maturing for the first time could save money each month by remortgaging.

 

Reductions in your monthly mortgage repayments could make a big difference to your life, but of course, whether you see this money may depend on getting the right professional advice.”

 

Remortgaging for the reasons listed above won’t automatically work out better for you financially.

 

You could be hit with costs such as exit fees or early repayment charges if you make changes to your current arrangement, which means you don’t actually end up saving anything by switching to a new deal.

That’s why getting advice from a mortgage broker could help. They look at all the different variables with an objective, experienced eye and give you the right advice for your situation.

If you have any questions or want more details on any step in the remortgage process, speak to your mortgage broker. We’re here to work with you and advise you, so you can make the right financial decisions.

 

 

 


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.

 

 


On 1 April 2018, the Domestic Minimum Energy Efficiency (MEES) provisions came into force, which means that owners must have an energy certificate in at least E category for each of their rented properties. The MEES regulation is currently applicable to all new rental and extension contracts, but from 1 April 2020, they will also cover contracts concluded before 1 April 2018. A violation of the guidelines will result in a fine of up to £ 4,000.

MEES regulations apply to most rented properties in England and Wales. However, in some circumstances you may be eligible for an exemption, which will need to be registered in the PRS Exclusion Register.
If you are currently renting a category F or G property, you will need to take immediate steps to ensure compliance before 1 April 2020.


When looking for appropriate insurance during a mortgage application, we often take into account the amount of compensation we can get and family protection in the event of an unexpected. However, it’s important to remember the additional benefits you may not know about and will vary depending on your protection provider.

Examples of additional services include the advice of specialized nurses or virtual GP services.
It is worth to remember that additional services are usually free for you and your family, regardless of whether you have applied for compensation or not.

Would you like to talk about the available options? Contact us – our advisers are ready to meet with you at the time and place which suit you most.


Survey: Pink Home Loans Broker Deal

Dates: October 2019  – January 2020

Survey of 9 recent customers.

 

Survey question:

The advisor understood my circumstances and objectives before providing advise:

 

 

Survey question:

Everything considered, how personally valued did the advisor make you feel?

 

 

 

Survey question:

Everything considered, how satisfied were you with the overall process?

 

 

Question:

On a scale of 0 to 10 where 0 is ‘not at all likely’ and 10 is ‘extremely likely’, how likely or unlikely would you be to recommend your adviser to your family, friends and/or colleagues?

 

 

Question: Please explain your reason for the above score:

 


According to the property agency, the right plan and preparation are key when selling your home. You have probably been overwhelmed with a complexity of buying a house – getting a mortgage, understanding financial jargon and all the stress related to it. Sales may look similar, which is why proper preparation is so important.

Below are some main aspects that you should consider when selling your home:

– prepare your property so that it seems attractive to buyers (gardening, cleaning or minor renovation at home)

– choose the right property agency

– set the sale price based on a professional valuation

– organize an energy performance certificate (EPC)

– choose the right solicitor to help you with conveyancing

 

Remember – after receiving the offer, you should work with the solicitor on the final sale details, then exchange the contracts and make the property available to the new owner.