Local Mortgage Adviser

untitledA million turn to payday loans to pay mortgage and rent

Nearly 1 million people in Britain have used a payday loan to pay their rent or mortgage as they face making ends meet difficult, a survey carried out for Shelter has revealed.

A survey of 4,000 adults found one-in-five rent or mortgage payers had borrowed money to cover their housing costs while 2% had turned to the high cost short-term payday loans to avoid defaulting on payments.

One-in-four people said they would feel too ashamed to ask for help if they couldn’t pay their rent or mortgage while 40% wouldn’t admit if they were struggling with their housing costs to family or friends.

Payday loans showing on your credit report can seriously reduce the risk of you being able to purchase a property or even if you are just remortgaging.

Before you go and apply for a payday loan, consider the consequences and give us a call on 01489 580020 or email us via “Contact Us” whereby one of our qualified mortgage advisers at parkgate can assess your financial needs and provide you with the right advice which could save you from having to rely on payday loans.

 

Help to BuyHelp to Buy to Date

Prime Minister David Cameron has today announced that over 6,000 people have applied for a mortgage through the Help to Buy mortgage indemnity scheme in the three months since it was launched.

Figures published in November showed that 2,000 applications were made in the first month of the scheme and the number has more than trebled since then.

In total, almost £1bn in new homeowner loans will have been advanced once pending applications are approved. So far, nearly 750 homeowners have completed their purchases through Help to Buy 2.

The average Help to Buy customer is looking to purchase a home worth £160,000 and faces monthly repayments of around £900. The average household income of £45,000 means Help to Buy mortgages, on average, represent 23 per cent of borrowers’ gross income.

Cameron says: “Too many people have found themselves frozen out of the market in recent years as a result of the size of deposit required.

“That is why as part of our long-term economic plan we introduced the Help to Buy scheme, so hardworking people with sufficient earnings can get on, fulfill their aspirations and enjoy the security of owning their own home.

“In less than three months, the scheme has already helped thousands of people.”

If you would like to know more about the Help to Buy scheme, why not call one of our qualified mortgage advisers who would be more than happy to review your financial requirements. Please call us on 01489 580020 or email us via our “contact us” page.

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.

HSBC has decided to restrict the number of conveyancers it uses to transact its mortgages.

The panel will consist of 42 firms, however customers will be free to use their own solicitor, although HSBC will still instruct a firm from the panel for its own legal work if they do so Customers will therefore be offered an incentive to use a solicitor from the panel.

HSBC only deal with customers directly, therefore using a local mortgage adviser to research the market and consider all your options and associated costs could save you money and save you trying to deal with two solicitors.

For impartial advice on mortgage products for purchase or remortgage direct deals or advised products, please give us a call on 01489 580020 or email your enquiry to info@parkgate.net

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We offer whole of market advice for all types of customers, whether you are a first time buyer, home mover or looking to purchase a buy to let property. Being independent we are able to offer impartial advice from the whole of the market to ensure you get the product that suits your financial needs.

Whether you are looking to protect your mortgage payments or your family, we provide independent advice for life insurance, critical illness cover and income protection from a wide range of providers.

Buildings Insurance is a requirement when you complete on a mortgage the cover is to provide security to the lender, the insurance covers the main structure of your home. It will cover you for subsidence, storm, flood, fire or smoke damage and cover the costs of rebuilding or repair.

Equity release is a way of releasing cash from your property, either through selling a percentage to the reversion company or taking a mortgage on it, while allowing you, the homeowner to continue living there as long as you wish.