Mortgage Advice

Whether you are buying your first home, moving, re-mortgaging or investing in your business it is very likely that this is one of your largest financial commitments and biggest expenses.

Finding the right mortgage for you and your individual circumstances is paramount.

As confidence in the mortgage market grows, the products on offer from lenders are always changing and new options are becoming increasingly available. Fairstone’s mortgage experts understand the complex property market and have the experience needed to identify trends and navigate any difficulties that might arise, ensuring you get the deal that’s right for you.

The type of finance you need to secure your home will depend completely on your personal position however, our advisers can provide key areas of mortgage advice

 

Your home maybe repossessed if you do not keep up repayments on your mortgage. Property values can fall as well as rise.

Buying your first home is a major milestone and is undoubtedly a very exciting time.

That said the process itself can be very daunting when you haven’t experienced it before.

There are thousands of mortgages on the market and in theory they are all available to first-time buyers, although many banks and building societies are also offering specific deals for those taking their first step onto the property ladder.

These products could include incentives such as cashback, low fees or a contribution towards legal costs.

Knowing where to start is often the hardest part as with so many options available, how do you know what to look for? That’s where we can help. Your Fairstone adviser will guide you through the mortgage process, showing you the most appropriate solutions and explaining anything you are unclear about – without the jargon.

 

Your Fairstone adviser will guide you through the mortgage process, showing you the most appropriate solutions and explaining anything you are unclear about – without the jargon. Get in touch today to find out more.

A buy-to-let mortgage is simply one that will be used to purchase a property that you will in turn use to generate an income. 

Historically the buy-to-let marketplace has always been complicated, however, from 1 April 2016, new rules are set to make buy-to-let mortgages more elusive.

In his Autumn Statement, George Osborne announced that there would be a new stamp duty charge on buy-to-let properties and second homes. Purchasers will pay an extra 3% in stamp duty which means that on a property costing £175,000, the stamp duty will rise from £1,000 to £6,250.

 In addition a new rule requiring Capital Gains Tax to be paid within 30 days of selling a property will be introduced from April 2019.

From next year, rules that allow landlords to offset all of their mortgage interest against their tax bill will be phased out, which means that by the end of the decade higher-rate tax payers will get half the relief they do now. 

As these changes come into legislation and the buy-to-let market continues to evolve, independent financial advice has never been more important.

 

For advice on the evolving buy-to-let market contact a local Fairstone adviser today.

One of the biggest challenges for many individuals, families and businesses, is making the best possible use of their available finances.

Your mortgage should play a central role in this process.

Remortgaging is the process of switching your existing mortgage to another mortgage lender, usually to lower the amount you're paying on your mortgage. You are not obliged to remain with your original lender and switching could save you a significant sum over the course of your mortgage term.

To qualify for a typical remortgage product you may need to:

  • have equity in your existing property
  • be able to evidence a reasonably good credit history in terms of servicing your current mortgage

It is also important to remember that a professional valuation will be sought which may differ from your view of what the property is worth. When considering remortgaging your property please bear in mind that not all mortgage providers offer these types of products. Some will have more demanding acceptance criteria than others and many will include redemption penalties which could affect the final outcome.

To be certain that you a getting the best deal for you and your circumstances we provide independent advice that it tailored to your needs. Our expert advisers will match you to the most appropriate remortgage deal and guide you through the whole process.

 

Our mortgage experts can help find the right mortgage deal for you. Get in touch today to find out more.

As it becomes increasingly difficult for first time buyers to secure a mortgage, parents and grandparents are stepping in to help younger family members buy their first home. 

According to research it now takes an average of eight years to save for a deposit compared to a year in 1990 as a result two in three first-time buyers now receive help from their parents.

If you decide that you want to help out, you need to be sure that you are going about it in the right way to protect your own interests, as well as your children's.

There are a number of options available to you:

  • Parents with the available funds could buy a second property for their children to live in or take on a joint mortgage to help secure their first home
  • If you’re prepared to cover all eventualities you could act as a guarantor which has the benefit of leaving the mortgage in the child’s name  as opposed to shared ownership
  • Releasing equity in your home is an option, however, there may be restrictions from lenders, particularly if you are no longer working
  • The larger the deposit the more likely it is that a mortgage will be approved so if you are able to simply gift your child or grandchildren money this is one route to go down, although you will need to take the impact of inheritance tax into consideration.

Mortgage lenders are recognising the increasing role of parents in first time buyer transactions and are evolving their products to meet this new demand. There are now mortgage options that allow parents to be named on the deed without needing to be named on the title documents which can have tax benefits for the parents of the buyer.

As with any financial commitment there is no one size fits all and the best solution for you and your child will wholly depend on your financial circumstances.

 

For advice on helping your children to buy their own home contact a Fairstone mortgage expert in your area today.

Although it may not seem like it, you could be closer to saving for a deposit than you think.

The government has created the Help to Buy scheme to help people like you take steps to buy your own home. There are four elements of the help to buy scheme, the Help to Buy; ISA, Equity Loan, Shared Ownership and Mortgage Guarantee.

The Help to Buy ISA

When saving to buy your first home, if you save money into a Help to Buy ISA the government will boost your savings by 25%. This means that for every £200 you save you will receive a government bonus of £50.

The accounts are available to each first time buyer, not each household. This means that if you are planning to buy with your partner, for example, you could receive a government bonus of up to £6,000 towards your first home.

The minimum government bonus is £400, meaning that you need to have saved at least £1,600 into your Help to Buy ISA before you can claim your bonus. The maximum government bonus you can receive is £3,000 – to receive that; you need to have saved £12,000.

To open a Help to Buy ISA you must be 16 or over, a UK resident and you must not own a property anywhere else in the world. You must also be looking to purchase a property that costs up to £250,000 or £450,000 if you’re buying in London.

When you buy your first home, your solicitor or conveyancer will apply for your government bonus. Once they receive it, the funds will be added to the money you are putting towards your property.

Equity Loan

Equity loans are available to first time buyers as well as homeowners looking to move. The home you want to buy must be newly built with a price tag of up to £600,000.

With a Help to Buy Equity Loan the Government will lend you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest.

For example if you bought a home for £200,000, you’d get £150,000 (80%, from your mortgage and the cash deposit) and you’d pay back £40,000 on the loan (20%). You’d need to pay off your mortgage with your share of the money.

You won’t be charged loan fees on the 20% loan for the first five years of owning your home.

To reflect the current property prices in London, from February 2016 the Government is increasing the upper limit for the equity loan it gives new home-buyers within Greater London from 20% to 40%.

Shared Ownership

The Help to Buy Shared Ownership scheme offers you the chance to buy a share of your home (between 25% and 75% of the home’s value) and pay rent on the remaining share. Later on, you could buy bigger shares when you can afford to.

To take part your household must earn up to £90,000 a year and you must be a first time buyer.

This scheme is only available on newly built properties or those owned by Housing Associations.

Mortgage Guarantee

A mortgage supported by the Help to Buy Mortgage Guarantee scheme works in exactly the same way as any other mortgage except that under the scheme the Government offers lenders the option to purchase a guarantee on mortgage loans.

Because of this support, lenders taking part are able to offer home buyers more high-loan-to-value mortgages (80-95%).

You will still be fully responsible for your mortgage repayments. So if you have a 5% deposit, you will need to take out and pay back a 95% mortgage.

To utilise this scheme you must be a first time buyer and be purchasing a property priced up to £600,000.

The Help to Buy options are varied and the best scheme for you depends on your individual circumstances. Fairstone’s network of independent advisers can help guide you through the process, understand the various restrictions and choose the right route for you. Find a Fairstone adviser in your area today.

First time buyers

Buying your first home is a major milestone and is undoubtedly a very exciting time.

That said the process itself can be very daunting when you haven’t experienced it before.

There are thousands of mortgages on the market and in theory they are all available to first-time buyers, although many banks and building societies are also offering specific deals for those taking their first step onto the property ladder.

These products could include incentives such as cashback, low fees or a contribution towards legal costs.

Knowing where to start is often the hardest part as with so many options available, how do you know what to look for? That’s where we can help. Your Fairstone adviser will guide you through the mortgage process, showing you the most appropriate solutions and explaining anything you are unclear about – without the jargon.

 

Your Fairstone adviser will guide you through the mortgage process, showing you the most appropriate solutions and explaining anything you are unclear about – without the jargon. Get in touch today to find out more.

Buy-to-let and second homes

A buy-to-let mortgage is simply one that will be used to purchase a property that you will in turn use to generate an income. 

Historically the buy-to-let marketplace has always been complicated, however, from 1 April 2016, new rules are set to make buy-to-let mortgages more elusive.

In his Autumn Statement, George Osborne announced that there would be a new stamp duty charge on buy-to-let properties and second homes. Purchasers will pay an extra 3% in stamp duty which means that on a property costing £175,000, the stamp duty will rise from £1,000 to £6,250.

 In addition a new rule requiring Capital Gains Tax to be paid within 30 days of selling a property will be introduced from April 2019.

From next year, rules that allow landlords to offset all of their mortgage interest against their tax bill will be phased out, which means that by the end of the decade higher-rate tax payers will get half the relief they do now. 

As these changes come into legislation and the buy-to-let market continues to evolve, independent financial advice has never been more important.

 

For advice on the evolving buy-to-let market contact a local Fairstone adviser today.

Remortgaging

One of the biggest challenges for many individuals, families and businesses, is making the best possible use of their available finances.

Your mortgage should play a central role in this process.

Remortgaging is the process of switching your existing mortgage to another mortgage lender, usually to lower the amount you're paying on your mortgage. You are not obliged to remain with your original lender and switching could save you a significant sum over the course of your mortgage term.

To qualify for a typical remortgage product you may need to:

  • have equity in your existing property
  • be able to evidence a reasonably good credit history in terms of servicing your current mortgage

It is also important to remember that a professional valuation will be sought which may differ from your view of what the property is worth. When considering remortgaging your property please bear in mind that not all mortgage providers offer these types of products. Some will have more demanding acceptance criteria than others and many will include redemption penalties which could affect the final outcome.

To be certain that you a getting the best deal for you and your circumstances we provide independent advice that it tailored to your needs. Our expert advisers will match you to the most appropriate remortgage deal and guide you through the whole process.

 

Our mortgage experts can help find the right mortgage deal for you. Get in touch today to find out more.

Buying for children

As it becomes increasingly difficult for first time buyers to secure a mortgage, parents and grandparents are stepping in to help younger family members buy their first home. 

According to research it now takes an average of eight years to save for a deposit compared to a year in 1990 as a result two in three first-time buyers now receive help from their parents.

If you decide that you want to help out, you need to be sure that you are going about it in the right way to protect your own interests, as well as your children's.

There are a number of options available to you:

  • Parents with the available funds could buy a second property for their children to live in or take on a joint mortgage to help secure their first home
  • If you’re prepared to cover all eventualities you could act as a guarantor which has the benefit of leaving the mortgage in the child’s name  as opposed to shared ownership
  • Releasing equity in your home is an option, however, there may be restrictions from lenders, particularly if you are no longer working
  • The larger the deposit the more likely it is that a mortgage will be approved so if you are able to simply gift your child or grandchildren money this is one route to go down, although you will need to take the impact of inheritance tax into consideration.

Mortgage lenders are recognising the increasing role of parents in first time buyer transactions and are evolving their products to meet this new demand. There are now mortgage options that allow parents to be named on the deed without needing to be named on the title documents which can have tax benefits for the parents of the buyer.

As with any financial commitment there is no one size fits all and the best solution for you and your child will wholly depend on your financial circumstances.

 

For advice on helping your children to buy their own home contact a Fairstone mortgage expert in your area today.

Help to Buy

Although it may not seem like it, you could be closer to saving for a deposit than you think.

The government has created the Help to Buy scheme to help people like you take steps to buy your own home. There are four elements of the help to buy scheme, the Help to Buy; ISA, Equity Loan, Shared Ownership and Mortgage Guarantee.

The Help to Buy ISA

When saving to buy your first home, if you save money into a Help to Buy ISA the government will boost your savings by 25%. This means that for every £200 you save you will receive a government bonus of £50.

The accounts are available to each first time buyer, not each household. This means that if you are planning to buy with your partner, for example, you could receive a government bonus of up to £6,000 towards your first home.

The minimum government bonus is £400, meaning that you need to have saved at least £1,600 into your Help to Buy ISA before you can claim your bonus. The maximum government bonus you can receive is £3,000 – to receive that; you need to have saved £12,000.

To open a Help to Buy ISA you must be 16 or over, a UK resident and you must not own a property anywhere else in the world. You must also be looking to purchase a property that costs up to £250,000 or £450,000 if you’re buying in London.

When you buy your first home, your solicitor or conveyancer will apply for your government bonus. Once they receive it, the funds will be added to the money you are putting towards your property.

Equity Loan

Equity loans are available to first time buyers as well as homeowners looking to move. The home you want to buy must be newly built with a price tag of up to £600,000.

With a Help to Buy Equity Loan the Government will lend you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest.

For example if you bought a home for £200,000, you’d get £150,000 (80%, from your mortgage and the cash deposit) and you’d pay back £40,000 on the loan (20%). You’d need to pay off your mortgage with your share of the money.

You won’t be charged loan fees on the 20% loan for the first five years of owning your home.

To reflect the current property prices in London, from February 2016 the Government is increasing the upper limit for the equity loan it gives new home-buyers within Greater London from 20% to 40%.

Shared Ownership

The Help to Buy Shared Ownership scheme offers you the chance to buy a share of your home (between 25% and 75% of the home’s value) and pay rent on the remaining share. Later on, you could buy bigger shares when you can afford to.

To take part your household must earn up to £90,000 a year and you must be a first time buyer.

This scheme is only available on newly built properties or those owned by Housing Associations.

Mortgage Guarantee

A mortgage supported by the Help to Buy Mortgage Guarantee scheme works in exactly the same way as any other mortgage except that under the scheme the Government offers lenders the option to purchase a guarantee on mortgage loans.

Because of this support, lenders taking part are able to offer home buyers more high-loan-to-value mortgages (80-95%).

You will still be fully responsible for your mortgage repayments. So if you have a 5% deposit, you will need to take out and pay back a 95% mortgage.

To utilise this scheme you must be a first time buyer and be purchasing a property priced up to £600,000.

The Help to Buy options are varied and the best scheme for you depends on your individual circumstances. Fairstone’s network of independent advisers can help guide you through the process, understand the various restrictions and choose the right route for you. Find a Fairstone adviser in your area today.