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C & G to disappear from the high street
Posted June 12th by Nigel
Lloyds TSB is closing all of their 164 C & G branches with job losses of over 833. The group (HBOS) will also be closing the Bank of Scotland and Intelligent Finance mortgage departments for new business as from the 1st July.
The C & G clients can still use the main branches of Lloyds TSB for any mortgage enquiries.
First Time Buyer Information
Posted June 12th by Nigel
Deposit Requirements
Are you looking to become a first time buyer but the daunting deposit requirements are scaring you off? Don’t worry, all is not lost.
It’s true that mortgage lenders are being more careful than ever before about whom they lend to, the loan amount and lending criteria in general, which means that obtaining the necessary finance is harder than ever. A 10% deposit is a standard requirement, but it’s not unheard of for a lender to require up to 40%; it is also the case that the deposit requirement tends to increase as the deal improves. Here is our advice to help you tentative buyers on your journey to obtaining a mortgage.
Get Saving
Saving a deposit is no small task, but those who have chosen to start doing so will be far better prepared to make an offer on a property when they see their opportunity. As mentioned above, the larger the deposit, the greater the likelihood of getting the mortgage deal that’s right for you.
Which Savings Vehicle?
Saving for a deposit doesn’t necessarily mean accumulating money in your current account or starting another account with your bank.
Whilst interest rates are low at the moment, certain banks and building societies are offering relatively competitive rates on certain types of account and so it pays to shop around. If you don’t have much willpower, you may want to consider placing your savings in a notice account. These do not allow you to access your funds immediately, reducing the chance of you raiding your savings for an impulse buy. You usually have a choice of notice periods; the longer notice period usually attract a higher interest rate. However, this benefit must be considered alongside the possible need to move quickly when you want to make an offer.
You could also consider using your annual ISA allowance, in order to benefit from tax-free growth on your savings.
Whatever you think might be suitable, your best bet is to contact an independent financial adviser, such as Smith & Pinching Financial Services Ltd at www.smith-pinching.co.uk. They will analyse your overall circumstances and will make an unbiased recommendation from the whole market.
Find the Right Mortgage Deal for You
Finding the right mortgage deal is always important, but particularly now when everyone is feeling the pinch of the credit crunch. You will most likely need to shop around and so it is vitally important to get an unbiased opinion from a qualified professional. Contact us at our website www.mortgages4me.co.uk. We research the whole mortgage market and are not tied to any lender. We offer a free initial consultation and are happy to see you when it’s most convenient for you.
Surviving the Credit Crunch
Posted June 12th by Nigel
This guide gives you basic information on how to mitigate some of the effects of the credit crunch.
Potential Borrowers
For people with no or very low debt and who have savings, the credit crunch shouldn’t be causing too many problems (notwithstanding those who have suffered a large pay cut or unemployment of course); however, borrowers looking for credit may find the market is a very different place. Those looking for mortgages, remortgages, personal loans and credit cards could find that the problems created by the credit crunch mean that they experience significant difficulty securing the loan they want.
Find the Right Mortgage Deal for You
Finding the right mortgage deal for your circumstances is always important. The process can be somewhat complex at times, but is particularly so when finances are tight and lending is harder to come by. It’s usually best to shop around, which is why using an independent broker such as mortgages4me is ideal. We search the whole mortgage market and have no ties to any lender.
Get a free, no-obligation mortgage consultation
First-Time Buyers
Bank of England base rates are at an all-time low and house prices have fallen significantly over the last 12 to 24 months. As a result, some mortgage advisers are suggesting first-time buyers with a large enough deposit commit now and haggle to get the best price. This is a very general view and, whilst there might be some merit to it, we strongly advise that you consider your overall circumstances and take advice from an independent mortgage adviser, such as mortgages4me.
Consider Your Circumstances
Speaking to one of the mortgages4me team or using the online tools at mortgages4me.co.uk to learn more about your mortgage situation could help you to avoid some of the problems we have seen above. There are many questions to consider and we can help you ensure that you have all the information you need to make an informed choice. You need to think about the type of mortgage you have (e.g. capital and interest or interest only), whether it’s a fixed rate or a tracker, when the product period ends, how long you have left on your mortgage, how much you earn and whether this amount will change, how much you spend each month and whether you have any debts that you want to consolidate.
Make a Realistic Budget
Make a realistic budget of your monthly outgoings and work out what you can afford to cut out of your spending. This usually involves looking at luxury items (e.g. magazine subscriptions, new clothes, dining out etc), money spent on socialising and even old insurance policies that you no longer require (for example, some people may forget to cancel mobile phone or pet insurance in the event that these policies are no longer needed). This could help you to understand where you can save and hence generate more disposable income for mortgage purposes.
Repair Your Credit Rating
Check your credit rating for free or for a small fee, with Equifax or Experian. If you have a poor credit rating, not all is lost as there are ways to improve it. For example, using a credit card and having a mobile phone contract and making monthly repayments via direct debit will help prove to lenders that you are a reliable borrower.
Deal With Your Debt
If you are struggling to meet agreed debt repayments (credit arrangement, loan, mortgage or credit card), you should contact your creditor as soon as possible to discuss the situation. Most creditors will try to help you meet your obligations, possibly under a revised repayment plan; it is in their interest as well as yours to have the debt repaid.
Seek Professional Help
If all else fails and you cannot meet your mortgage repayments, there are professional bodies that can possibly help. If you feel you need to speak to someone in regard to debt, you should contact your local Citizens’ Advice Bureau or National Debtline on 0808 808 4000 (www.nationaldebtline.co.uk).
Blog Archive
January 2009
December 2008
November 2008
The views given in this blog are those of mortgages4me, a trading name of Smith & Pinching Financial Services Ltd, which is authorised and regulated by the Financial Services Authority. These views are market and economic views and should not be interpreted as giving advice. Whilst every care has been taken in producing this blog, Smith & Pinching Financial Services Ltd will not be held responsible for any inaccuracies, omissions or misquotations. Registered office: 295 Aylsham Road, Norwich, Norfolk, NR3 2RY.