Monthly Archives: January 2013

Kevin was brilliant and helped me find an affordable life cover product. Great Service

I have used this advisor many times and, unlike others I have dealt with, he is very trustworthy and tries his best to get the right products for our needs/circumstances.

Virgin Money is cutting rates across its residential mortgage range by up to 1.3 per cent from Tuesday 15th January. Offering some competitive rates at all loan to values.

Virgin money are offering a very respectable rate of 4.99 per cent at 90 per cent loan to value, reduced from 6.29 per cent. This should increase first time buyer interest. At the other end a two year fixed rate up to 60 per cent loan to value will become available from 2.49 per cent after it is cut by 0.15 per cent from 2.64 per cent. An equivalent tracker product is being cut by 0.20 per cent, from 2.75 per cent to 2.55 per cent.

If you are looking to purchase a property or remortgage the one you already hold, give us a call on 01489 580020 or complete the contact us form for a personal illustration, once we have assessed your financial situation and requirements.

Lloyds Banking Group has indicated that it is looking to increase its buy to let offering in 2013.

It is understood the group not only plans to increase total lending but plans to increase buy to let as a proportion of lending to around 21 per cent compared to 17 per cent in 2012.

This will be good news for new and existing landlords, as the buy to let lender offers competitive product rates with a range of arrangements fee options.

If you are looking to purchase a buy to let property or remortgage one you already hold, give us a call on 01489 580020 or complete the contact us form for a personal illustration, once we have assessed your financial situation and requirements.

Barclays is to launch a groundbreaking 95% mortgage next Monday, with family savings in the bank acting as a guarantor.

The family savings must equal 10% of the purchase price. The money will earn base plus 1.5%. The savings will be returned with interest after the initial three-year term of the mortgage, provided the mortgage payments have been kept up to date.

The 95% ‘Family Springboard’ deal, aimed at first-time buyers, will be a three-year fix at 4.69%.

It means that a first-time buyer purchasing a home at £160,000 would need a 5% deposit of £8,000 and require a mortgage of £152,000. The family would have to put £16,000 into a Barclays “Helpful Start” savings account. The mortgage repayments would be £861.34 a month at 4.69% for the first three years, based on a 25-year repayment mortgage.

The Barclays product has been greeted as a ‘cattle prod’ which will get other high LTV products into the market, which might just kick other lenders into offering something similar or competitive.

Bank of England

The Bank of England’s Monetary Policy Committee (MPC) has kept interest rates unchanged again.

The Bank Base Rate has been at its historic low level of 0.5% since March 2009.

At the beginning of the week, Citi predicted interest rates in the UK will remain at low for 4 more years as the economy struggles to recover.  This is a year longer than originally expected.

The majority of high street lenders have reduced their rates over the past few months and there are some very competitive deals for new purchases and remortgages at all loan to values.

The MPC also agreed to keep it’s Quantitative Easing (QE) programme at the current level of £375bn.

The QE programme involves buying assets – usually Government bonds – using money it has simply created. The institutions selling those bonds (either commercial banks or other financial businesses like insurance companies) then have “new” money in their accounts, which boosts the money supply.

Virgin Money have changed their lending criteria and will now only accept interest-only cases with a minimum loan size of £300,000. The same policy will also apply for part capital repayment and part interest-only cases.

Existing Virgin Money customers who want to port their mortgage to a new property, or who want to remortgage to a new Virgin Money product, are able to do so with no material lending changes.

Existing interest-only customers who want to increase their loan size can apply for the additional lending on a repayment basis if their loan is below £300,000.

There will be no changes to Virgin Money’s interest-only policy on buy to let loans.

Pete Ball, product and commercial director at Virgin Money, said “While some lenders have chosen to withdraw from interest-only lending completely over recent months, we believe that it remains an important part of the mortgage market for customers who can demonstrate confidence in repaying their loan at the end of its term through a clear and evidenced repayment plan. We have updated our lending policy, although there are no changes for existing Virgin Money customers who can continue their mortgage under their current arrangements.”

The lender continues to offer Loan to Values of up to 70% on interest-only loans.

Mortgage advisors in Southampton

Mortgage advisors in Southampton, at park gate our advisors are dedicated to providing you with the mortgage and insurance solutions that are tailored to your needs as well as providing a route to many other financial products.

Whether you are a first time buyer, moving home, looking to remortgage or a buy to let investor mortgage advisors in Southampton could help you find the right mortgage product for your needs…

We are independent mortgage advisors covering the whole of Southampton with many years of experience in arranging mortgages and/or life insurance.

Please call 01489 580020 or email us at info@parkgate.net if you would like to book an appointment or to request a no-obligation quotation with Mortgage advisors in Southampton.

Contact us via our contact page

Mortgage funds to rise significantly, Bank of England says

The supply of mortgage funds will be increased “significantly” by the Funding for Lending Scheme (FLS), says the Bank of England.

A survey of lenders by the Bank reports that lending picked up in the last three months of 2012, and will continue to do so in the coming months.

Separately, the Nationwide building society said that house prices fell by 1% in 2012.

And it predicted little change in either prices or sales this year.

The building society said that the average UK property was valued at £162,262 at the end of 2012, following a 0.1% drop in December.

The Bank of England’s Credit Conditions Survey found that the mortgage funds for Lending Scheme, launched at the start of August 2012, was now helping to increase the flow of money to borrowers.

The aim of the scheme is to channel as much as £60bn of cheap money to lenders, on condition that they then lend it to households, and to companies outside the financial sector.

An initial report on the scheme, published by the Bank in early December, found that lending to households and businesses increased only slightly in the third quarter of the year, as the new scheme got under way.

Since then, its effect has grown stronger. To read more click on the BBC Website.