Residential Mortgages

Your mortgage is likely to be your biggest financial commitment. It is therefore important that you know what your choices are and what is available to you.

Help to BuyUnder the first phase of the Help to Buy scheme, launched in April, the government will give homebuyers in England equity loans of up to 20% of the price of a new property worth up to £600,000.

Homebuyers need to contribute at least 5% of the property price as a deposit, with a 75% mortgage to cover the rest.

Under the second phase of Help to Buy, which had been due to launch in January, the government will underwrite 15% of the value of a mortgage, allowing people to buy properties with a 5% deposit.

It will apply to all home purchases in the UK of up to £600,000.

Applications for loans from the scheme will now be brought forward to the week beginning 7 October but the loans will not be paid out until 1 January. Anyone hoping to complete on their home purchase using the second phase of Help to Buy before 2014 will not be able to.

 

Santander joins the Hep to Buy Equity Loan Scheme

Santander 1The new range is available as part of the government’s Help to Buy equity Loan scheme on new builds and includes a 3.29% 2-year fixed rate, a 3.49% 5-year fixed rate and a 3.29% 2-year tracker.

All products are available with a minimum 5% deposit and have no upfront booking fees plus free valuation and £250 cashback on completion.

Santander joining the government’s Help to Buy Equity Loan scheme will play an important role in helping both first time buyers and home movers looking to buy new build properties.

Santander’s Help to Buy range offers competitively priced products with no upfront booking fees, extending the affordable housing options we can offer to customers who have a deposit from 5%, where you can also choose from our range of New Buy and Shared Ownership ‘exclusive’ mortgages.”

Since launch Help to Buy has been an overwhelming success in the new homes market. Santander coming into this market will give more choice which in turn gives more options for customers.

For more information on Help to Buy, please call 01489 580020 or email us at info@parkgate.net with your requirements and we can provide you with the right advise.

The Help to Buy – equity loan scheme gives first time buyers and next time buyers the opportunity to purchase a new build home with the help of an equity loan guaranteed by the government.

Help to BuyYou buy a minimum 80% equity share and, as part of that, you’ll need to be able to provide a deposit of at least 5% of the property value from savings or from some other source (like a gift from a relative).

An equity loan of up to 20% of the property value will be provided through Help to Buy. It’s interest-free for 5 years. After that, you pay an annual fee of 1.75% on the amount of the outstanding loan. The fee will increase each year by inflation (Retail Price Index (RPI)) + 1%.

You can start repaying the help to buy equity loan after you’ve owned the home for a year, but you’ll need to be able to pay a minimum of 10% of the property value at the time of repayment.

When you want to sell your home, you’ll need to repay the percentage equity loan that is still outstanding. So, for example, if you originally bought 80% of the property and you hadn’t repaid any of your equity loan, your repayment on selling would be 20% of the market value at the time when you sell.

For more information, please call one of our qualified advisers for further information on 01489 580020 or via the “contact us” page with your requirements.

Am I eligible to buy a home through Help to Buy equity loans?

  • You must be at least 18 years old
  • There is no maximum household income level
  • You will normally require at least a 5% deposit of the full purchase price
  • You must take out a mortgage which will need to be for 25% or more of the full purchase price
  • If a home owner already you must have sold your current home before or at the point of completion on your Help to Buy home
  • You cannot rent out your existing property to buy a second home through Help to Buy
  • Part Exchange is not available through this scheme
  • You cannot sublet your Help to Buy home
  • You cannot buy a home on sale for more than £600,000
  • You must be able to prove you can afford the mortgage repayments and other outgoings on the home you wish to buy.

Call us on 01489 580020 and we can take you through the initial help to buy affordability calculator which will determine whether the property is sustainable long term.

imagesCAU3ZMDP90% First time buyers

A two-year fix for first-time buyers available at 4.49% up to 90% LTV or a  two-year fixed rate at 3.79% up to 85% LTV to all homebuyers and remortgagers.

For further details on 85% or 90% deals call us on 01489 580020 or email us at quotes@parkgate.net where we would be more than happy to provide you with a personal illustration.

Help to Buy

Help to Buy – Equity loans

The Help to Buy equity loan scheme gives you the opportunity to purchase a new build home with the help of an equity loan guaranteed by the government.

with hep to buy you purchase a minimum 80% equity share and, as part of that, you’ll need to be able to provide a deposit of at least 5% of the property value from savings or from some other source (like a gift from a relative).

An equity loan of up to 20% of the property value will be provided through Help to Buy. It’s interest-free for 5 years. After that, you pay an annual fee of 1.75% on the amount of the outstanding loan. The fee will increase each year by inflation (Retail Price Index (RPI)) + 1%.

You can start repaying the equity loan after you’ve owned the home for a year, but you’ll need to be able to pay a minimum of 10% of the property value at the time of repayment.

When you want to sell your home, you’ll need to repay the percentage equity loan that is still outstanding. So, for example, if you originally bought 80% of the property and you hadn’t repaid any of your equity loan, your repayment on selling would be 20% of the market value at the time when you sell.

For further details on Help to Buy please call park gate on 01489 580020 or email us at quotes@parkgate.net with your requirements

 

halifaxHalifax are now offering to help first time buyers by paying all their stamp duty. This offer is available on properties costing between £125,001 and £250,000 on a range of products for a limited period. It’s a great offer, and you could save up to £2,500 by not having to pay the 1% stamp duty.

We will help you through the whole process from application to completion providing the help and support you would expect.

For further information or a personal quotation, please complete the details on the contact us page or email us on quotes@parkgate.net

Thousands face Bank of Ireland UK mortgage rate rise

Thousands of mortgage borrowers with Bank of Ireland and subsidiary Bristol and West will see the cost of their home loan nearly double.

 The bank has announced that it is to raise the rate on its Base Rate Tracker mortgages, despite the Bank rate remaining at 0.5%.

It has the power to charge a top-up level of interest on these home loans, even if the Bank rate does not move.

It blamed the rising cost of providing these mortgages and rules on capital.

Banks must hold a buffer of capital to a certain level in order to keep to European rules.

Rate rises

The bank will raise the mortgage rate for residential customers from, typically, the Bank rate plus 1.75% to the Bank rate plus 2.49% on 1 May.

It will then raise it further, to Bank rate plus 3.99%, on 1 October.

Buy-to-let customers will see their rate increased to Bank rate plus 4.49% on 1 May.

The bank said that 13,500 customers would be affected by the move, with more than half of them buy-to-let customers. The majority also had significant equity in their properties, it said.

The rate increases do not affect customers of the Post Office, which partners with the Bank of Ireland UK.

Borrowers in a position to move should consider switching banks before the full rate hike kicks in.”

If you hold a Bank of Ireland mortgage and would like to see if there is a product available for you to move to, give us a call on 01489 580020 or email us on info@parkgate.net with the basic details.

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.

Coventry Building Society will no longer offer interest-only residential mortgages for new lending.

From 3 December, Coventry Building Society will only offer interest-only mortgages for buy-to-let loans.

Existing borrowers at Coventry Building Society on interest-only will not be able to increase their borrowing on an interest-only basis but they will be able to port their existing mortgage.

The FSA established as part of the final publication of the Mortgage Market Review that ultimate responsibility for repaying the capital at the end of an interest-only term rested with the borrower, not the lender.

The FSA will publish a thematic review on the issues facing existing interest-only borrowers in early 2013.

Nationwide revealed it was pulling out of interest-only in October this year – it also took the line that interest-only has become a niche product, representing less than 3 per cent of the applications that it received.

If you have an interest only mortgage and would like a review to ensure that you have suitable repayment vehicles in place and they are on target or you would like to discuss transferring it to a Capital & Interest basis. Contact us on 01489 580020 or email us at  info@parkgate.net

 

Japanese knotweed (Fallopia japonica) is causing some concern with some lenders and valuers. Some weeds are invasive and can grow through the brickwork of a property causing severe damage, as with the case of the Japanese knotweed.

Japanese knotweed was introduced to Britain in the 19th century as an ornamental plant but it has become widespread. Japanese knotweed can grow through concrete and tarmac, the plant can grow a metre in a month and a 1cm section of underground stem can produce a new plant in 10 days!! These stems can remain dormant in soil for 20 years before producing new plants.

With lenders reviewing the policy on Japanese knotweed it could now be a case that the lender will not go to offer, however some lenders will consider going to offer if you have the Japanese knotweed eradicated and can provide a certificate of guarantee for a minimum number of years.

If you think you might have Japanese knotweed you should Contact the professionals. Members of the Invasive Weed Control section of the PCA are qualified and regulated in Japanese Knotweed management and can deliver efficient, effective and reliable treatment.

Do not ignore Japanese knotweed when you see it in your garden or building plot. It can grow quickly and costs will grow as the plant does. If you want information on Japanese Knotweed, a good first step is to read through the Environment Agency Guide – Vegetation Projects.