What's the Property Market like in South West Surrey?

Thinking of buying or selling in South West Surrey this year? If so you’ll want to know whether now is a good time to get a mortgage deal, put your house on the market, and start your property search. Read on to find out…

The New Year is traditionally a time when the property market in South West Surrey – Farnham, Godalming, Haslemere etc. – starts to recover from the end of year lull. In fact the days between Christmas and New Year see a surge in visits to websites such as Rightmove as homeowners and new buyers use the holiday to start their property search.

This year appears to be no different with local estate agents commenting on the number of calls received by homeowners requesting valuations or expressing interest in properties in the first week of January. The market in South West Surrey is starting to pick up.

Should You Sell / Buy Now Or Wait?

However, property and economic experts expect the housing market to remain flat and growth to slow further this year – Royal Institution of Chartered Surveyors (Rics) predict growth in 2017 of 3%, compared to 6% in 2016.

Brexit and the changes to stamp duty rates continue to have an impact on the market, especially for buy-to-let and luxury homes, with buyers and sellers being more cautious.

Currently South West Surrey is experiencing a bit of a seller’s market. Estate agents in my hometown of Farnham have a shortage of properties at the moment, and many homes are being snapped up within days of coming on the market. Waverley remains a popular and desirable place to live, and homes do not hang around for long.

That said, if you also need to buy in the area you may find your options more limited but, as confirmed earlier, local agents are reporting an increase in requests for valuations as more homeowners prepare to sell.

Mortgage Interest Rates: When Will They Rise?

A good reason to act sooner rather than later is the expected interest rate rise. Currently at an all time low of 0.25% this has resulted in cheap mortgage rates for many, and a great opportunity to get a fixed rate mortgage before any increases.

Without the benefit of a crystal ball it is impossible to say whether interest rates will decline further, but indications are that they are more likely to increase this year. Fixed-rate mortgages are already cheaper than variable so it would seem prudent to get a deal now rather than later.

There are plenty of mortgage deals on the market with an interest rate of under 2%, with the right deposit. Even with just a 5% deposit you could get a rate of under 3%. We have also seen five year fixed rates creep below 2% recently too, again with the right deposit.

Start Your South West Surrey Property Search Today!

If you think 2017 is going to be the year you either buy your first property or move up, down, or sideways on the property ladder, here are your next steps:

Buyers

Mortgages: Get your financial affairs in order to ensure you get the best mortgage deals for your specific circumstances. A conversation with a financial advisor or mortgage broker is a good idea to discuss your situation and see whether there are opportunities to get a better offer.

Set up property alerts: Register with websites such as Rightmove, OnTheMarket and Zoopla and set up alerts for the area, price range, and type of property you are interested in.

Speak to local estate agents: Visit all the local estate agents, preferably in person, and register with them directly. Be clear about your position, they may contact you before properties appear on websites if they think you’re a good fit. Update them regularly about any changes – for example if you receive an offer on your house, or are able to increase your deposit.

Sellers

Finances: If you have a mortgage check to see whether you will incur any early repayment fees if you sell your house. Find out if your mortgage is portable if you want to move with it, or increase your borrowing. Now is a good time to look around at different mortgage products and see whether you qualify. Make sure you’re fully aware of the costs of buying and selling: conveyancing, moving costs, etc. If you are also buying there will be stamp duty to pay on your new property.

Valuations: Invite several estate agents to value your property so you can get fair market appraisal. Check out websites such as Zoopla to find out what properties have sold for in your area. Be realistic.

Prepare your property for viewings: Declutter and tidy, do those DIY jobs that you haven’t got around to doing, give your property a spring clean.

For mortgage advice and assistance – mortgages for first-time buyers, remortgaging etc. – please get in touch. My office is in Farnham but I look after clients across Surrey and West London. Call 01252 759 233 or email info@thesurreymortgagebroker.co.uk

BTW: if you’re a local estate agent in the south west corner of Surrey please let readers know your predictions for Q1 of 2017! Add a comment below…

What Information will I need to provide a Mortgage Lender?

Every year, thousands of Britons go cap-in-hand to banks and other lenders to request the money to buy a home. From first time buyers to re-mortgages, buy-to-let investors to re-locators, getting that all important ‘yes’ from lenders can be a tough call.

This year’s mortgage acceptance rate was up, at around two thirds of applications being accepted, compared to just one in ten in 2010. Although the acceptance rate is improving as we move further away from the crash of 2008, borrowers still have a tough task on their hands if they’re going to secure a great mortgage at a great rate.

Being prepared for your meeting with your lender is the first step to getting an offer. Understanding what you need to bring along, what sort of questions they’ll be asking and what kind of evidence you’ll need to provide will stand you in good stead for a positive outcome to the meeting.

Paperwork

There are several pieces of paperwork you’ll need to have to hand at some point during the application process. Here’s what you’re going to be asked for:

• Proof of identity and address: You’ll need to prove that you are who you say you are, and that you live where you’ve said you do. This means you’ll need a proof of identity, such as a passport, photo driving licence or shotgun license. You’ll also need a proof of address, such as a mortgage statement, council tax bill, bank statement or utility bill.

• Proof of income: Each lender has their own set of requirements for proving your income, and it can be more difficult if you’re self-employed. In general, if you can lay your hands on three months of payslips and the last two years’ P60’s you’ll be well prepared. For those self-employed, bring along your accounts and SA302 tax calculations for three years and the corresponding tax year overviews. All available from HMRC website, speak to your accountant or mortgage broker for help.

• Proof of affordability: Your lender will be checking to see if you are able to afford the repayments you are agreeing to. For this reason, you should bring along any evidence of benefits, savings and investments coming in, as well as any credit commitments you have going out.

• Bank statements: Bring along the last three months of bank statements (at least) to show responsible income and outgoings for the month.

• Insurance policies: If you have existing life insurance, critical illness or income protection insurance, you should bring along evidence of this. It could work in your favour if your acceptance is touch-and-go with the lender.

It might seem like you’re being asked to pull together a PhD thesis just to apply for a mortgage, but take it one step at a time and it’s not that bad. The more you can gather before you even start applying for mortgages, the faster things will move and the easier it will become. Grab a folder and organise your life admin to ensure an easier ride.

Deposit

Most lenders these days are asking for a minimum 10 per cent deposit, and many are looking for 20 per cent and up. Whatever amount you’ve managed to save, you’ll need to prove to your lender that the money is yours before they’ll consider you for a mortgage. If it’s in an investment account or a bank account, you’ll need to bring along a statement. If it’s a gift from a relative or friend, get them to sign a letter saying they are holding the deposit for you.

Credit score

Your lender will run a credit check to make sure you are suitable for their loan criteria. There’s not much you can do about this if you do have black marks from the past, but do think about improving your credit score prior to applying for a mortgage to make it more likely that you’ll be accepted. Pay off what you can, check you’re on the electoral role and grab a copy of your credit report to make sure everything on there is correct.

Find out what lenders will be looking for in your credit report here.

Even after all that, you’re still not guaranteed acceptance on a mortgage. However, if you’ve taken the time to gather the paperwork and evidence needed, you’ll be ready to apply with another lender.

To save time and increase your chances of getting a mortgage offer, consider using the services of a mortgage broker. This way you’ll only need to provide your information once, they will also be able to advise you on what documentation can improve your chances, and have access to mortgage products that you may not have seen online or at your local bank or building society.

To discuss any of the above in more detail please do not hesitate to get in touch. Call 01252 759 233, email info@thesurreymortgagebroker.co.uk or comment below.

The Difference between Life Insurance and Mortgage Life Insurance

For anyone who is buying or has bought their own home, this question has probably crossed their minds at least once or twice. Mortgage life insurance and straightforward life insurance are two very similar products, but are designed to do two different jobs. Here’s what you need to know.

What Is Life Insurance?

Life insurance is a policy which you take out, usually voluntarily, in order to provide for your family if you unexpectedly pass away. There are many kinds of life insurance, some which last for a fixed period of your life, others which stay with you for the whole of your life. The settlement figure can be anything from a few thousand pounds, designed to cover the cost of your funeral, up to many hundreds of thousands; enough to pay off all your debts and leave a good nest egg for your family too.

What Is Mortgage Life Insurance?

Essentially mortgage life insurance does the same job; it pays out some money if you die unexpectedly. However, this type of policy is designed to only cover the outstanding mortgage debt, and will not pay for any other debts, any funeral costs or leave any cash for your dependants. This is also referred to as ‘decreasing term life insurance’ because the amount it pays out decreases over the years, in line with the reduction in your outstanding mortgage.

Things To Think About

Sometimes your mortgage lender will require that you take out mortgage life insurance when you agree to borrow the money. Other times, you may be looking to take out some form of protection so that your family are taken care of if you are not around.

Whatever your reason for investigating life insurance, there are a few things you’ll need to think about before you decide:

• Decreasing term or fixed term? Mortgage life insurance is typically a decreasing term policy, which reduces in line with your mortgage. This is the cheapest type of life insurance policy, but for a slightly larger investment, you could be covered under a fixed term policy. This policy would run for the same term as your mortgage, say 20 or 25 years, but would pay out the same amount all through the term. This means that as you pay off more of the mortgage yourself, you could be leaving a nice little nest egg for your loved ones.

• Lenders policy or a third party? Your lender may try to sell you their own mortgage life insurance, but are they offering you a good deal? You are not obliged to take their deal, and it’s a good idea to shop around to see what other companies can offer.

• Single or joint? A common problem with mortgage life insurance is that they can end up being joint. Usually, a joint life insurance policy is not worth having, and most good brokers will recommend you take out separate policies instead. Even if you have a joint mortgage, you aren’t required to have a joint insurance policy, so look to take out two separate agreements instead.

• Changing interest rates: When you set up your mortgage, your lender will help you arrange a decreasing term policy which will reduce in line with your mortgage balance. However, changes in the Bank of England base rate could dramatically change the outstanding balance on your mortgage over the term of the agreement. For this reason, it’s important to reassess your mortgage life insurance from time to time to make sure it’s still enough to cover what you owe on your house.

Mortgage life insurance is a great solution for those on a tight budget who don’t have any dependants to think about. It’s cheap, it covers what you need it to, and it will make your lender happy.

However, if you have children or other dependants, or if you want to pay off other debts in the event of your unexpected death, you should consider other types of life insurance too.

If your mortgage life or life insurance policies are up for renewal soon, and you would like some help investigating a better deal for you and your family, please do not hesitate to contact me. Call 01252 759233 or email  info@thesurreymortgagebroker.co.uk

Can I get a Mortgage when I'm Retired?

The number of people who still have outstanding mortgage debt when they hit retirement is on the rise. In fact, according to the Office for National Statistics (ONS), there are currently around 350,000 over 65’s who still owe money on their house. With around 40,000 of these mortgage deals coming to an end each year, retirees have no choice but to renegotiate a new deal on their borrowing.

Getting a mortgage is certainly possible in retirement, but it can be more difficult. Whether you want to move house or remortgage your existing home, it’s important you understand the challenges you face so you can adequately prepare for your financial future.

The Challenges Facing Retired Borrowers

There are several key challenges facing older borrowers if they are looking to remortgage or change mortgage providers in their retirement. Some of these are:

• Mortgage repayment periods are getting shorter

Big banks and lenders are getting tougher about when mortgages are expected to be repaid. For instance, Skipton recently cut their maximum repayment age from 80 to 75, and West Bromwich Building Society reduced theirs from 80 to 70. Many of the big players such as Halifax, Lloyds and Santander have a maximum age of 75, or 65 for interest only loans.

• Lower income may restrict the offers available

Once you are retired, your income will inevitably drop. Depending on how much this leaves you with, as well as how much you owe on your house, you could find your options more limited than they would have been if you had secured a deal while you were still working.

• Higher risk may increase the interest rate

Because it is viewed as riskier for a lender to take on an older borrower, you could end up paying a lot more for your mortgage than a younger person would. Interest rates may be higher and repayment terms shorter, so affordability can be a big challenge.

If you are still working at the moment but feel that the amount you are paying right now on your mortgage may not mean you’ve paid it off by the time you retire, speak to your lender sooner rather than later. While you’re still employed, you have many more options and better value for money deals available to you than you will when you eventually stop work.

How To Find A Good Mortgage Deal

If you are facing the reality of getting a mortgage either in retirement or one that won’t be paid off until after you retire, finding a great deal in good time should be top of your list of priorities. You can start by looking at online price comparison sites, however bear in mind that not all mortgage products will be represented on these. Try to use at least two or three different sites to get a good overview of the market.

Once you have an idea of what you could be paying and who is likely to take you on, consult a mortgage broker to uncover any other deals on the table. Some specialist deals for older borrowers are only available through brokers, so it’s well worth taking the time to go through things with these an independent advisor.

Make sure you pick a mortgage that is right for your circumstances, and one that you can afford the repayments on. Equity release may look appealing, as it could help you fund your retirement and pay off your mortgage sooner, but make sure you understand fully what this scheme involves before signing up to anything.

If you are struggling to find a mortgage, give me a call and we can explore your circumstances in more detail. Call 01252 759 233 or email info@thesurreymortgagebroker.co.uk

If you shop around for Car Insurance, why not do the same for Home and Contents?

In the current economic climate, we’re all looking to save money where we can. Around 77 per cent of us shop around for our car insurance so that we can get a better deal, and huge numbers of us also shop around for energy deals, loans and even for cheaper groceries.

Despite the widespread support for the ‘compare and switch’ approach, it seems that home and contents insurance has somewhat fallen through the cracks. An incredible 78 per cent of customers admit to accepting their renewal price without checking if it’s a good deal, which could be costing us dearly.

Home and Contents Insurance: Why Shop Around?

The most compelling reason to shop around is that if you don’t you could be paying more than you need to. Insurance companies will often offer new customers exclusive deals and discounts to get them on board, but then are at liberty to hike the renewal price, often without the customer realising it’s happening.

Energy providers have hit the headlines recently because they frequently stick automatically renewing customers on their most expensive ‘standard’ tariff. Chances are your insurance provider is going to do the same. Recent research by VoucherCodesPro found that on average, auto renewing home insurance customers were paying a whopping £339 a year more than the cheapest deal available to them.

Jot the date of your renewal in your diary, and make sure you’re aware of any notice period you must give. Get quotes in from comparison sites and then ask your provider to see if they can match or beat the best quote you found. Never allow your policy to auto renew; loyalty does not pay!

It’s Easy To Compare Quotes For Home And Contents Insurance

If you are keen to know whether you’re getting a good deal or not, you’ll be pleased to know it’s actually really straightforward to compare insurance costs. There are three main routes to getting comparative quotes:

1. Use comparison sites: Just as you do for your car insurance, there are many price comparison sites out there ready to help you source numerous quotes. Always go to at least two comparison sites to ensure you’re getting a good spread of offers, and bear in mind some providers will not be available through these sites at all.

2. Go direct: For the companies who do not quote via price comparison websites, you could go direct for a quote. Notable for their absence from price comparison services are Aviva and Direct Line, two of the UK’s largest insurers, so keep in mind you might want to go to them directly.

3. Use a broker: Sometimes brokers can obtain better deals on insurance than any consumer is able, particularly if you have an unusual house. If you live in a listed building, in a flood prone area or a house of nonstandard construction, it’s worth getting a broker to do the shopping around for you.

You may be offered insurance as part of your mortgage deal, or even from your bank, credit card company or supermarket. Whoever it might be offering to insure you, take the time to make sure you’re getting a good deal before jumping in to any agreement.

Top Tips For Getting A Better Deal

Whether you’re in the market for a new policy or are approaching your renewal date, there are some things you can do to help your home and contents insurance provider give you a better deal.

To get the lowest price possible, try to:

• Pay annually: Paying monthly is almost always more expensive than paying in one go.

• Buy contents and buildings together: If you need both, buying them together will offer significant savings over treating them separately.

• Increase your excess: Opting to pay a higher amount of voluntary excess lets your provider offer you a lower rate on the policy.

• Get the right cover: Try not to overestimate the value of your contents, otherwise you could be paying for cover you don’t need. Check what’s already covered by other policies, such as your packaged bank account or travel insurance.

• Stop smoking: Smokers tend to pay more for their home insurance because of the increased risk of fire.

• Fit smoke alarms: Good smoke alarms on every floor of your property will not just help to lower your insurance premium; they could save your life too.

• Improve security: Upgrading locks on external doors, putting locks on windows and installing security lighting can be effective ways to both make your home less vulnerable and your premiums lower.

While you are shopping around for a cheap home insurance quote, make sure you are comparing prices fairly by discovering all the hidden costs. Administration charges are one of the biggest hidden expenses on home insurance quotes, so be confident you’ve got all the facts from your provider before making any decisions.

If your home insurance is up for renewal and you want a better deal, contact me to see whether I can help. Call 01252 759 233 or email info@thesurreymortgagebroker.co.uk