mortgage adviser in fareham

TestimonialCannot speak highly enough of the team at parkgate. Kevin has been extremely patient and approachable with me during the whole process. Nothing seemed to be too difficult for the team. I will certainly recommend this to others. Thank you.

BOEThe Bank of England has held UK interest rates at a record low of 0.5% for another month

The size of the Bank’s economic stimulus programme, known as quantitative easing, was also kept unchanged at £375bn.

Last month, Bank governor Mark Carney hinted that rates could increase later this year as the UK’s economic recovery becomes more secure.

When it comes, any rise in rates is expected to be small.

Speaking last month, Mr Carney said “we expect that eventual increases in Bank rate will be gradual and limited”. He has also talked of rates hitting a “new normal” of 2.5% by 2017.

The number of people out of work is also falling, with the unemployment rate down to 6.6% in the three months to May.

On the other hand, there is little pressure to raise rates to keep prices in check – the inflation rate fell to 1.5% in May, down from 1.8% in the previous month. The Bank’s inflation rate target is 2%.

Interest rates have been at their record low of 0.5% since March 2009.

Principality stops lending to payday loan users

Principality Building Society is set to stop lending to applicants who have taken out a payday loan within the previous 12 months.

The Wales-based lender Principality has stated that it would continue to process transactions under its current criteria until close of business on 18 February, meaning borrowers applying for a mortgage from the 19 February with the Principality must not have taken out a payday loan in the previous 12 months.

Principality is the latest lender to explicitly exclude recent payday loan borrowers, you need to consider your actions before taking out this type of credit as it can impact on your ability to obtain a mortgage.

Principality has also tweaked a number of other areas of its mortgage criteria, including for debt consolidation and for cases where the borrower takes part in online gambling. The lender will request further information at its discretion, where it identifies online gambling or any gambling debts on an applicant’s history. It says this is to ensure there is no underlying affordability issue.

The Principality has reduced its maximum LTV for debt consolidation mortgages from 90 per cent to 75 per cent and will now only offer them on a capital-repayment basis.

If you would like to review your financial position to see if you would be better off remortgaging to another lender offering a more competitive rate than taking out a short term loan.

Call us on 01489 580020 or “contact us” and one of our qualified advisers can discuss your requirements before you apply to the Principality and get declined.

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.

TestimonialThank you Kevin, for your help and advice. It was a pleasure to have you working on our behalf in such a friendly and professional manner. You explained everything clearly each step of the way and even patiently explained things for us a second and third time when we had any questions. You were always prompt in returning calls and e mails and we would readily recommend you to family and friends.

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

 

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.

Shadow Treasury financial secretary Chris Leslie has hit out at mortgage lenders for “sneaky” standard variable rate rises and called on them to do more to warn customers of potential rate rises.

Speaking at a fringe meeting on debt at the Labour autumn conference in Manchester yesterday, Leslie said it is “amazing” that rates are going up when funding is so cheap.

In August Santander increased its standard variable rate by 0.5 per cent to 4.74 per cent which came into force today and earlier this year Halifax, Clydesdale Bank, Yorkshire Building Society and the Co-operative Bank increased their rates.

If you have a mortgage and are currently on the lenders standard variable rate, then why not give us a call to see how much you could potentially save by switching lenders.

Call us on 01489 580020 to discuss your requirements.

You can also contact us via the Contact Us page or by email if you prefer info@parkgate.net and see what we can offer you to ensure that you are not over paying being on the lenders standard variable rate.

 

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

Mortgages
life insurance
home insurance
equity release

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.