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Silver safe in the shape of a house

First time buyer mortgages are better than ever

People often worry about how hard it is to get a mortgage as a first time buyer. While it can be a difficult area, you should remember that everyone has to start somewhere. Property prices may not be as out of reach as you think when you get a great rate. So long as you choose the best mortgage brokers for first time buyers in Bristol, you will get an amazing deal.

Record Low

Banks are currently making it very easy for people to take that first step onto the property ladder. When searching around, you will find that on offer are the lowest mortgage rates since 1995, the year when records began. From looking at figures provided by the Bank of England you can see that interest rates for two and five-year deals have fallen to the lowest in 23 years.

One example is someone looking to make a 5% deposit on a property and get a loan for the other 95%. You could expect to get a 2 year mortgage with a lower interest rate than you would have previously. In addition, 5 year mortgages will have a lower average rate than last year.

Mortgage rates are even better when you make a bigger deposit. A 2 year mortgage with a 10% deposit would have much lower interest than lending with only 5% of the property’s value. It is likely that this drop is due to lenders looking to increase business and beat the competition. Along with a cut in stamp duty for first time home buyers, it is easier to buy property.

Jump In The Market

Don’t waste your time by searching through the market. Instead, let Your Space Mortgages provide you with the best deal to save you time and money. We are specialists in an array of areas including acting as mortgage brokers for first time buyers in Bristol. To discuss our work further or for a consultation with no strings, contact us today.

For sale sign on house

Financial news

Up across the country

The Office for National Statistics has released the latest data on its UK House Price Index (HPI) tracing house price inflation, the rate at which the prices of residential properties purchased in the UK rise and fall. The UK HPI, introduced in June 2016, includes all residential properties purchased for market value in the UK. According to the data, average house prices in the UK have increased by 3.2% in the year to August 2018 (down from 3.4% in July 2018), remaining broadly stable at a national level since April 2018.

Over the past two years, records indicate that there has been a slowdown in UK house price growth, driven mainly by a slowdown in the south and east of England. The lowest annual growth was in London, where prices decreased by 0.2% over the year, down from being unchanged (0.0%) in the year to July 2018. The average UK house price was £233,000 in August 2018. This is £7,000 higher than in August 2017 and £1,000 higher than last month. On a non-seasonally adjusted basis, average house prices in the UK increased by 0.2% between July 2018 and August 2018, compared with an increase of 0.5% in average prices during the same period a year earlier (July 2017 and August 2017). On a seasonally adjusted basis, average house prices in the UK increased by 0.3% between July 2018 and August 2018

House prices in England increased by 2.9% in the year to August 2018, down from 3.3% in the year to July 2018, with the average price in England now £250,000. House prices in Wales increased by 6.2% over the last 12 months to reach £162,000. In Scotland, the average price increased by 4.1% over the year to stand at £153,000. The average price in Northern Ireland currently stands at £133,000, an increase of 4.4% over the year to Quarter 2 (Apr to June) 2018.

Happy to be Scottish

Edinburgh cityHappiness levels in Scotland have risen for a third consecutive year, according to the latest Bank of Scotland Happiness Index. The annual nationwide survey asks Scots how happy or unhappy they are in their local communities, to create an official cheeriness barometer ranging between -100 (very unhappy) to +100 (very happy). Overall, Scots are slightly chirpier than last year as the Index recorded a score of 44.9 (an increase of 1.2 points compared to 2017) and 5.9 points happier than they were three years ago.

Anyone looking for their next home might want to consider Central Scotland, with its leafy suburbs and The Helix – home of The Kelpies – as it’s been crowned the happiest place to live. The Highlands & Islands is the second happiest – perhaps partly because of its stark beauty and outdoors community – followed by the Lothians. Clouds may be gathering over West of Scotland though, as it fell to the bottom of the table this year. Getting older doesn’t necessarily mean becoming grumpier as the Index reveals that over 65s remain the happiest age group. They’ve consistently been table-toppers for the past three years. But at the other end of the age scale, 18 to 24 year olds’ happiness levels have grown by the highest number of points in the last year, and over the last three years. Those aged 35 to 44 are at the bottom of the table for the second consecutive year, and 24 points below the over 65s.

Two’s company when it comes to a happy home as for the third year in a row those households with two residents say they’re the happiest. Families of four have slumped four places to the bottom of the table, replacing those living alone, who move up just one position to fifth place. They say money can’t buy happiness but according to the latest Index, the more Scots earn, the happier they are. This year, Scots with a personal income of more than £60,000 are happiest, but last year, the magic number was between £40,000 and £59,999 – it’s moved to second place.

Lost in pension

Elderly Couple_300x200pxThe scale of the UK’s lost Pensions Mountain is exposed last week by research carried out on behalf of the ABI. In the largest study yet on the subject, the Pensions Policy Institute (PPI) surveyed firms representing about 50% of the private defined contribution pensions market. From this PPI found 800,000 lost pensions worth an estimated £9.7 billion. It estimates that, if scaled up to the whole market, there are collectively around 1.6 million pots worth £19.4 billion unclaimed – the equivalent of nearly £13,000 per pot. This figure is likely to be even higher as the research did not look into lost pensions held in the public sector, or with trust-based schemes typically run by employers.

Insurance providers make considerable efforts and spend millions every year trying to reunite people with lost or forgotten pensions. In 2017 more than 375,000 attempts were made to contact customers, leading to £1 billion in assets being reunited with them. However, firms are unable to keep pace with a mobile workforce that moves jobs and homes more often than ever before, so a digital solution through the Pensions Dashboard is now more important than ever. This would enable anyone to see all their pension savings, including the State Pension, together in a single online place.

Nearly two-thirds of UK savers have more than one pension, and changing work patterns means that the number of people with multiple pensions will increase. People typically lose track of their pensions when changing jobs or moving home. The average person will have around 11 different jobs over their lifetime, and move home 8 times. The Government predict that there could be as many as 50 million dormant and lost pensions by 2050.

Selection welcome

Pound Coins Following HM Treasury’s announcement last week, the Bank of England confirmed that it plans to issue a new £50 note. This will be the final note in the latest series, all of which will be printed on polymer. The Bank will announce a character selection process for the new £50 note in due course, which will seek nominations from the public for potential characters to appear on the new note. Having successfully moved to polymer with the £5 and £10 note, the Turner £20 note will be issued on polymer in 2020 and the new £50 note will follow this.

The Bank of England is very excited to be starting the process of introducing a new £50 note highlighting the need to provide the public with high quality notes that they can use with confidence. Moving the £50 note onto polymer is an important next step to ensure that the Bank can continue to improve the notes in circulation, they are cleaner, safer and stronger and harder to counterfeit. And, because they last around 2.5 times longer than paper notes, they are also more environmentally friendly.

Front of a yellow brick house

How much can you afford for home purchases?

The most important thing with a mortgage, regardless of the type, is that you can afford the repayments. You need to be as confident as possible that you won’t encounter any financial difficulties that could result in repossession of the property. To begin with you should look at how much you can afford, both in terms of the upfront costs and the ongoing monthly fees. As a leading team for home purchases Bristol residents can rely on, the Your Space Mortgage team is here to help with this.

Look closely at your finances

Firstly it is important to get a clear idea of your finances. Look at how much you earn, especially your monthly income. Then consider your outgoings and what you have left at the end of the month. In addition, think about your savings and what you can afford as a deposit.

You will need the details above if you apply for a mortgage. This is because lenders want to be confident that you can make the repayments. They have quite strict obligations to meet in determining affordability as well as whether it is safe to lend you funds.

How much can you spend on a property?

Setting your budget for the property itself is very important. For starters you need to ensure you can afford the deposit. Keep in mind that the more money you can put down the cheaper your monthly mortgage bill will be. In addition, remember you shouldn’t put everything you have into the deposit. After-all there are various fees you need to cover and you also may need funds for renovations.

Think about all of the upfront costs

There will be a myriad of different costs as part of the purchase. They can include:

  • Survey fees
  • Valuation fees
  • Local authority searches
  • Land registry fee
  • Mortgage broker fee
  • Solicitor’s fee
  • Stamp Duty (in England and Northern Ireland)
  • Land Transaction Tax (only in Wales)
  • VAT

The total for all of these could amount to thousands of pounds. Therefore it is important to ensure you have the funds available.

If you are struggling to decide how much you can afford for a home purchase we would be happy to help. Your Space Mortgages is an independent broker that always works with the best needs of our clients in mind. We can look at affordability with you.

When they consider home purchases Bristol residents should rely on us to help them. We are just a call away and always offer clear, honest advice.

Keys on a silver house keyring

Self employed Bristol residents come to us for mortgage advice

Your Space Mortgages possesses over 12 years of experience in the mortgage and financial industries. Self employed Bristol residents visit us all the time seeking advice as well as reliable solutions. Incredibly seasoned and as knowledgeable as they come, our team members can help with all of your enquiries.

Perhaps the biggest misconception with mortgages is that it’s very hard for self-employed people to get a loan. It’s true that self certification mortgage isn’t available anymore. This option was popular but they were banned in the UK in 2011. Nonetheless, the likelihood that lenders will allow self-employed people to borrow is just as great as it would be with a typical employee.

The same options are available

Whatever your type of employment, the key is to prove you have the income to pay back the loan. Normally, this means you’ll need to show your lenders two years’ worth of tax returns, SA302s, or company accounts. Certain providers ask for three years’ worth. Self-employed people might have to supply evidence of future work too. This will prove that you can preserve your present levels of income.

Don’t start panicking if you lack the two years’ worth of documentation. Obtaining a mortgage could still be possible. Self-employed persons that have frequent histories of contract work could use this as evidence of their dependability. Additionally, if you possess a home loan already but want to remortgage, your lender might show a bit more sympathy. The odds will be further in your favor if you prove that you’re reliable with repayments.

At Your Space Mortgages, we make certain that our clients understand everything about their mortgage. We shall go over time scales, available products, the amount you can borrow, and all the costs. Our team are the best source of advice for the self employed Bristol has.

If you want to begin as soon as possible, contact us today.

Pile of credit cards

Poor credit Bristol and re-mortgaging if your finances improve

Your Space Mortgages offers a helping hand to anyone worrying about affording a mortgage. We can discuss a number of things and find the right deal for you by searching the whole market. We even provide the best support for poor credit Bristol has to offer.

A history of bad debt and failing to keep up with payments can seriously affect your ability to get a mortgage. There are mortgages out there and specialist providers but you will likely have to pay a bigger deposit. The fees and interest could be higher too, accounting for the amount of risk the lender is taking on.

Improve your finances

One of the most important things to keep in mind is actually having a mortgage has the power to improve your credit rating. This is especially true if you make your payments on time and don’t encounter any issues. Keep in mind that missing a mortgage payment is one of the biggest black marks against you though. At the same time, you will really benefit if you can clear up other debts and make them more manageable.

A number of different things can cause your credit score to increase. As well as clearing debts and consistently paying your mortgage, an increase in your income and a big rise in the property’s value will help. You’ll also get a better rating if you own a higher percentage of the equity of the property.

Re-mortgage

If you agree to a specialist mortgage you have similar rights to everybody else. As a result, that means if your credit does improve you may be able to get a re-mortgage from a lender who previously would not lend to you. This could come with a smaller interest rate because your level of risk is now lower. Just make sure you consider any fees you will have to pay.

Having a bad credit score may not be the end of the world. Your Space Mortgages can help you to look for lenders and even plan ahead for improving your rating. If you have poor credit Bristol has nobody better to speak to than us. We will be happy to offer advice and recommendations, so don’t hesitate to get in touch today.

New home keys in the palm of a hand

Can I sell or let a right to buy home right away?

Right to buy Bristol to help clarify your rights

Your Space Mortgages don’t just focus on the mortgaging process itself. Instead, we offer assistance for a myriad of different areas. As the best company for advice regarding right to buy Bristol has, you can count on us to meet your needs.

The Right to Buy is the something that the majority of council tenants have to acquire a house for a reduced price tag. People who are new to this scheme usually have questions about it. To shed some light on the situation, we’re going to identify and answer one of the most common queries here.

Letting

The question asks whether a person can let or sell their home straight away. You’re free to rent the structure out once you finalise the purchase. However, you must notify the housing provider and supply them with a second address. In addition, you’ll have to alert the council’s legal service team.

Selling within five years

If you sell the property within five years, you will need to repay some of or the entire discount in most instances. You will have to figure out the amount you must repay. To do this, calculate your original discount as a percentage of your flat or house’s market value at the time of purchase. Afterwards, work out the total this percentage shall be of the price you’ll sell the building for.

Let’s say that the initial market value was £200,000, and your discount was £100,000. Your discount would be 50%. As such, you’d need to pay back 50% of the money you sold the property for. Anyone who sells it within a year has to repay this figure in full.

At Your Space Mortgages, we offer clients over the phone and face-to-face services. Which one we use depends on your personal preferences. Our appointments are flexible, since we make them work around your schedules. As a result you always have access to the best advice for right to buy Bristol has to offer.

If you’d like to see us about right to buy or something else, please get in touch.

Model of house on top of plans and by a pile of money

Prepare yourself for re-mortgaging

As you can probably tell from our name, our speciality is mortgages. For years, we have provided assistance that adds as much value for our clients as possible. These days, the community thinks of ours as the leading business working in re-mortgages Bristol has. No matter what your requirements are, we will see to it that you receive the attention you need.

Not everyone is ready for what re-mortgaging brings. To help, we’ve produced a series of tips that focus on different areas of the procedure.

Be prepared

Firstly, you must prepare yourself. Set a prompt for the end date of your present deal. The ideal time to begin looking for new mortgages would be between three to six months before your current one expires. That will give you enough time to look around the right deal.

Shop around

Another good suggestion would be to shop around. Don’t feel pressured into remaining with your current lender. Saying this, they probably should be your initial port of call whilst attempting to secure a superior arrangement. It’s entirely possible that other lenders could have more enticing offers though. Working with a broker like us can be the best option because we open doors to more lenders.

What will it cost?

Look at the total cost as well. Compare your existing monthly payments with what your new ones would be and decide which would be the better situation. Be certain to include any arrangement fees that come with the new mortgage, in addition to any exit penalties from your ongoing one.

Look at all the details

Finally, inspect the other features. Look at the new mortgage’s qualities and make sure it matches your specifications. You could potentially use your re-mortgaging in order to analyse your insurance requirements too.

At Your Space Mortgages, we provide over the phone and face-to-face consultations. Our appointments are incredibly flexible, as you can set them up to suit those times that are perfect for you. When it comes to re-mortgages Bristol residents can always have faith in us.

If you would like to work with us, please get in touch with our company. We hope to hear from you soon.

Man filling out spreadsheet on desk

Keep on top of monthly repayments

Your Space Mortgages independent brokers have been in business for over 12 years, assisting clients with various areas. The community considers ours the number one establishment when it comes to helping first-time buyers Bristol has to offer. Whatever it is you’re having trouble with, you can come and talk to us about it.

Prior to looking at properties, you’ll have to save up for a deposit. Typically, you should aim to save between 5% and 20% of the price of the house you’re looking at. To give an example, if you wish to purchase a place that costs £150,000, you must save up £7,500 minimum. Saving more than the 5% shall allow you access to a greater range of cost effective mortgages.

Monthly repayments

You also need to make certain that you’re actually capable of affording the monthly repayments. For first-time buyers in particular, it’s essential that you do this. A smart idea would be to put a budget together before you start shopping around for deals.

Keep in mind that lenders have to be very strict when it comes to making sure you can make repayments. If there is any doubt you may struggle to get finance. In addition, a lender shall stress test your capacity to make the repayments if your circumstances change or if interest rates increase. The circumstances could be that you’ve started a family or gone into retirement. As a part of the entire procedure, you must reveal evidence to your lender of any outgoings and income.

At Your Space Mortgages, we do our very best to offer support. We have a reputation as the most reliable team working for first-time buyers Bristol has. We will ensure you stay on the right track throughout the mortgage process. Things might seem intimidating initially, but with us here to guide you, there shouldn’t be too many issues.

If you would like us to aid you, please get in touch. We look forward to hearing from you.