10 Affordable Places to Buy in Surrey

Surrey is not a county well known for affordable living. In fact, according to research by Zoopla, Surrey’s property prices are some of the most expensive in the country. Five out of ten towns in their Property Rich List – highest value towns – are in Surrey, including Virginia Water, Cobham, Esher, Richmond and Weybridge.

The average property price in these Surrey towns ranged from £916,469 to £1,385,218, hardly affordable by anyone’s reckoning. Surrey overall has an average property price (APP) of £507,957 compared to the national average of £232,885.

So is it possible to buy a house in Surrey for a more modest amount of money? Here are 10 property hotspots that will get you more for your money, even in an expensive county like Surrey.

1. Stanwell – £303,921 APP

If you like to travel Stanwell could be the ideal location, just half a mile from Heathrow Airport. While Stanwell maybe one of the more economically deprived areas of Surrey, that doesn’t mean that property prices are gloomy, 2016 property prices were up 13% on the previous year, and up 26% on 2014.

2. Goldsworth Park – £313,450 APP

Goldsworth Park is an area close to Woking with a good choice of different residential properties and local amenities. It has easy transport links to Woking and on to London by train, and also plenty of green spaces. Sold prices were up 8% last year.

3. Whyteleafe – £326,846 APP

Whyteleafe is just inside the M25 south of Croydon and 30 mins for Central London by train. Situated on the North Downs, Whyteleafe offers a combination of village life, countryside, and the benefits of being close to more urban towns and the city. House prices (sold) were up 10% last year on 2015.

4. Tongham – £345,934 APP

Close to wealthy neighbour, Farnham, and also conveniently placed for Guildford, Tongham is an affordable place to live in this part of West Surrey. Predominately housing with local amenities in the surrounding towns, it is close to great countryside and home to the fantastic Hog’s Back Brewery. House prices are on the up in this area, 19% on 2015.

5. Redhill – £352,817 APP

Just outside the M25 on the North Downs, Redhill has a busy town centre with station and easy access to London. Also close to the M23 to get to Gatwick Airport, or carry on to the A23 until you hit the coast at Brighton. House prices are climbing, up 12% on 2015.

6. Blackwater £356,558 APP

Blackwater is an area situated north of the M3 close to Camberley and Frimley. Away from the hustle and bustle of Camberley proper, with easy access to great countryside it’s a good option for anyone looking to be in the ‘M3 corridor’. Although there is a station, trains don’t go to London, however you can get a train to Reading and then London Paddington from there. Property prices were up 10% last year.

7. Byfleet – £362,613 APP

Byfleet, not to be confused with West Byfleet (APP £596,109) is on the other side of the M25 from it’s more affluent neighbour but close enough to visit! Byfleet is small with a village feel, close to New Haw station with trains to Waterloo (approx. 45mins). While not as popular or expensive as it’s neighbours (Weybridge is also close by), house prices are still climbing, 6% on 2015.

8. Horley – £365,901 APP

Horley is not far from Redhill and benefits from being close to the M25, Gatwick Airport and trains to London. A typical Surrey commuter town. Some online commenters feel it’s a little too industrial and soulless for them, but if you’re looking to get out of London at the right price it could be for you. Property values have not increase much in the past year, although they are up 15% on 2014.

9. Addlestone – £378,594 APP

Another Surrey town close to the M25, Addlestone has a busy town centre with plenty of amenities. Good access to London, airports and further west, and the Surrey Hills, Wisley RHS Gardens, and the Basingstoke Canal are all on your doorstep. Property values have increased by 9% since 2015.

10. Farncombe – £378,865

15 minutes walk from more expensive Godalming and with in easy reach of Guildford, Farncombe has mixture of housing, some more desirable than others. Fantastic location for anyone who wants to be close to the countryside and further away from London – however commuting is still a viable option with trains to London taking approximately 45 minutes. House prices were up 7% last year on 2015.

While property doesn’t come cheap in Surrey, compared to the national average, if you want to live west of the capital these are the places to explore.

If you need mortgage advice for securing your Surrey home, give me a call for a chat about your circumstances. 01252 759 233 or email info@thesurreymortgagebroker.co.uk

How to Calculate whether you can get a Mortgage for a Second Home

It’s not just first time buyers who are struggling to get accepted onto good mortgage deals these days. Second home owners are having a tough time too, with stricter lending criteria than we’ve seen in the past, and increases in stamp duty, making it harder to afford a second home.

Despite being asked to jump through hoops, the number of second home owners is on the rise. Record low interest rates and rapidly increasing house prices is motivating many homeowners to look into investing in a second property, either as a holiday home for themselves or as a buy-to-let* property.

But getting a second mortgage takes some planning, and could put your main home at risk if you’ve secured your borrowing on it. Here’s what you need to know.

The usual suspects

When you’re applying for a second mortgage, all the usual checks and confounding factors are sure to come into play, only this time they’ve got more clout. Needed a 10 per cent deposit for your main house? You could be asked for 25 per cent for your second. Needed a good credit score for your first house? You’ll need to be outstanding for this one.

If you’ve been through the mortgage process before, you should already know what you’re facing. As far as borrowing goes, you’re instantly a bigger risk to the lenders because you already have one mortgage, so expect them to be twice as tough on everything this time round. If you’ve paid off your mortgage, happy days; getting a second should be much easier.

Affordability Factors

Your mortgage provider will look at three main issues when deciding if you can afford a second mortgage or not. These are:

• Your income: Your lender should ask to see copies of your bank statements, as well as proof of any savings on investments you are benefitting from. State benefits, pensions and any other sources of income should be disclosed and proven here too.

• Outgoings: This is all about affordability, so even if you are desperately keen to secure a second home, you should aim to disclose absolutely all your outgoings at this stage. Think about regular outgoings like utilities and council tax, and those less regular ones such as Christmas and birthdays too.

• Coping with changes: Right now, homeowners on variable mortgages are enjoying record low interest rates, but it’s not going to stay that way forever. You and your mortgage lender will want to ‘stress test’ your mortgage deal to see how you would cope if, for instance, interest rates rise again or if you, or your partner, loses your job.

Honesty is the very best policy at this stage, so try to bring to light everything you know about your own financial situation. If you try to make it look like you’ve got more disposable cash than you really have, you’re only risking falling into financial trouble later on.

Other expenses

Aside of the usual checks, raising a huge deposit and making sure you definitely can afford this second home, you need to be aware of some of the other expenses which are tied in with a second home, and which are generally more substantial than they would have been with your first.

• Stamp duty: Stamp duty on second homes is much higher than that on your main residence. Currently properties costing £125,000 or less are free of stamp duty, but on a second home they will cost 3 per cent. In general, you will pay around 3 per cent more stamp duty for each bracket of house values than someone who is buying a main home.

• Council tax: Council tax is a bit of a grey area, with councils free to offer discounts or indeed to charge a premium as they wish. It’s worth checking out the situation where you’re planning to buy, as some councils can charge double for second homes in their area.

• Fees and charges: Solicitors fees, survey fees, estate agent charges… chances are you had to pay all these things back when you bought your main home, but bear in mind that the costs for a lot of these services has increased substantially since you were last in the housing market. Get quotes and make sure you’re fully aware of all the costs involved.

Being able to afford a second home is a great position to be in, and not a bad way to invest your extra cash. With interest rates at an all-time low and house prices rising steadily, your money will work harder for you in property than it will in a savings account.

If you would like to discuss your plans for buying a second home, and investigate potential mortgage deals, please get in touch. Call 01252 759233 or email info@thesurreymortgagebroker.co.uk.

* If you’re thinking about investing in property to then rent out, you’ll need a specific buy-to-let mortgage product. More about these here.

5 Questions to ask when Remortgaging

Remortgaging can fulfil a variety of needs. From releasing equity to pay for the things we love, to reducing the time it takes to pay our debt in full, many of us will consider a remortgage at some point in our home owning lives.

Ultra-low interest rates have driven a surge in remortgage applications, with 120 per cent more applications last winter than there were in 2014. The reports of massive savings and reduced mortgage terms is enough to send us all running to the lenders for quotes, but it’s important to think things through when it comes to a mortgage.

A mortgage is unlike any other form of lending; it’s the one biggest purchase most of us make in our lifetime, and is something we’ve got to live with for many years of our lives. Added to this is the ongoing concern that if we get it wrong, we could end up homeless. With all this in mind, it’s clear that a remortgage should be undertaken with the utmost care and consideration.

Here are the questions you should be asking yourself, and your lender, before entering into any kind or remortgage deal:

1. Is this the right time to remortgage?

Depending on your situation, it could be a great time to remortgage, or a really bad one. If you’re in a good value mortgage deal already or have big penalties to pay if you leave, chances are it’s not the right time to switch. However, if you’re at the end of your current deal, are on a fixed rate which is no longer good value, or want to release some of the equity from the house, it could be a good time to consider a remortgage.

1. How much is this going to cost?

Unfortunately, nothing in life comes cheap, and the same goes for your remortgage deal. Aside from any exit fees you might have with your current lender (be sure to check these out thoroughly before going any further), there are several other costs associated with remortgaging. For example, you’ll need to pay an arrangement fee to join a new lender, will need survey and legal fees and there may be other administrative costs to cover depending on how your lender is set up.

1. Will I be able to get a good / better deal?

New mortgage rules came in during 2014 that could mean you’ll struggle to obtain a good value mortgage in the current economic climate. Lenders must closely analyse your income and expenditure, and will undertake much more rigorous tests to ensure you can afford the new mortgage. If your circumstances have changed since you last got a mortgage, don’t presume you’ll get the same or similar deal as you did last time.

1. What am I trying to achieve?

There are numerous reasons people consider a remortgage, so be certain of your financial goals so you can effectively ensure they are being met. For example:

• You want to pay off other debts: If you want to remortgage to release equity and pay off credit deals elsewhere, make sure your mortgage is the right vehicle for doing this. Once you’ve taken into account the fees and charges, a personal loan might be better.

• Your deal is ending or poor value: This is a great reason to remortgage, but you need to be confident you’re getting a better deal from your lender. Do your sums, and don’t sign until you’re confident it’s worth it.

• Your home has appreciated: If your home has gone up in value significantly, you could be in a new loan-to-value band, meaning you could be eligible for much lower rates of interest.

Other reasons include changing from an interest-only to a repayment mortgage, or to reduce the overall term on the agreement now you’re able to pay more. Whatever reason you’re remortgaging for, have your overarching financial goal in mind and assess any offer to ensure it’s ticking your box.

1. Is my credit file healthy?

It almost goes without saying that a good credit record is fairly essential to switching to a new mortgage. The more black marks or outstanding debts on your file, the fewer deals will be open to your application. Get a copy of your report before you start applying, and check everything on there is fair and accurate to avoid nasty surprises later on.

More on credit reports and how to improve your score here.

As a homeowner, it is your right and privilege to seek out a better deal for your mortgage. Many borrowers report saving thousands of pounds over the lifetime of their mortgage as a result of switching away from their original deal, so it could pay dividends to compare the market from time to time.

However, as with any loan, do make sure you can afford the repayments and that the overall deal makes good financial sense before you sign on the dotted line.

For more advice on remortgaging and help finding a great deal, contact me on 01252 759233 or email info@thesurreymortgagebroker.co.uk

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.