No deposit? We could still help.

Picture1If you only have a small deposit, or do not have one at all, it may still be possible for you to obtain a mortgage.

There is a lender who will allow you to take out a personal loan to use as your deposit.

You need to pass the lenders affordability to show that you can afford the mortgage payments as well as the loan repayments. You will also need to meet the rest of the lending criteria.

However, this is ideal for someone with sufficient income but a low amount of savings.

 

Help to Buy Show – Hatherley Manor

HtBS_flyer_A5_Spring16_GloucOn Saturday 12th March 2016 we will be attending the Help to Buy Homes Show at Hatherley Manor, Gloucester.

We will be providing face to face, free financial advice for anyone considering the Help to Buy Shared Ownership or Shared Equity schemes.

Experts from various Housing Associations will also be there to discuss the different renting options and to give information on what properties are available.

The show runs from 10am to 3pm and entry is free. Tickets can be downloaded here.

5 Tips to Prepare your Credit Report for a Mortgage Application

BanksPicture1 and credit card companies use a variety of different information to give you a credit score, which determines whether they will lend to you and at what interest rate. 

1. Check your credit report to make sure everything is accurate and up to date. Some credit referencing agencies, such as Noddle, will allow you to do this for free, or for a charge of £2. If any of the information is incorrect tell them as soon as possible to have it investigated.

2. Try to avoid applying for credit in the six months prior to making a mortgage application. It could look like you are struggling financially and can have a negative impact on your credit score.

3. Since the new mortgage affordability rules in April 2014, there has been closer scrutiny on not only your credit history but also your budgeting and financial planning. It’s worth trying to save a little every month and finish every month with a surplus.

4. Lenders can take into account your available credit limits, and are likely to view low ‘utilisation’ as an indication of low risk. So try to keep the balances on your card accounts as low as possible.

5. It is vitally important to meet any agreed current repayments you have and paying a little more than your agreed minimum card repayments will not only reduce your balance more quickly but will also be a positive factor on your credit report.

Bad News for Landlords who are Higher Rate Tax Payers

calcFrom April 2017 the amount that some landlords can claim in tax relief on their finance costs (such as mortgage interest payments, interest on loans to buy furnishings and fees incurred on taking out and repaying mortgages) is being gradually reduced over 4 years.

When the new restrictions are fully in force from the beginning of the 2020/21 tax year, landlords will be only be able to claim tax relief at the basic tax rate of 20%, instead of 40% or 45% for those in higher or top rate income tax brackets respectively

As limited companies are not affected by the tax relief changes, it may be financially beneficial for some landlords to consider creating a Special Purpose Vehicle Limited Company. Of course, it will depend on individual circumstances and landlords considering this option should contact us beforehand.