News

Here, you can discover news articles and/or blog posts that we find relevant to us, and what you may find interesting. Feel free to come back to our site and read the latest entries as we will always seek to update this page regularly.

Experian drops proposed ClearScore merger

Thursday 28th February 2019
Owain Thomas

Experian has cancelled its attempt to buy startup rival ClearScore after opposition from the Competition and Markets Authority (CMA). In November, the CMA provisionally found the proposed £275m merger would result in less intense competition and harm the development of digital products. In a statement issued to the stock market today, Experian said following subsequent interaction with the CMA it believed the competition regulator would not allow it to proceed. "Experian does not believe that the CMA will approve the proposed acquisition of ClearScore on satisfactory terms, despite the dynamism and competitive nature of the market, and the customer benefits arising from the proposed transaction," it said. "Experian and ClearScore's shareholders have therefore taken the decision to abandon the proposed transaction." New innovations coming Experian added that its goal was to help more consumers with their finances by providing greater choice and convenience to them to access personal finance products at the best prices. "Over the next year we plan to bring exciting new innovations to market which will help consumers address their needs across their financial lives, while also investing in new areas to further broaden our offering," it said. As a result of the announcement the CMA has cancelled its investigation into the deal.…

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Barclays chops rates further for first-time buyers

Thursday 31st January 2019
Lana Clements

Barclays has further cut mortgage rates for borrowers with small deposits after reducing deals earlier this month. The lender is to now offer homebuyers with a deposit of only five per cent a two-year fixed rate of 2.86 per cent, as well a five-year fix of 3.35 per cent. Barclays is reducing the rate on its two-year fixed rate with £1,000 cashback to 3.34 per cent at 95% loan to value (LTV). The bank had already reduced rates on the two-year fixes above earlier in January, in a sign of the fierce competition for first-time borrowers among lenders. Housebuilders added to green home mortgages Barclays has also increased the number of housebuilders it partners with on its green home mortgage from five to 13. The deal uses lower mortgage interest rates to reward homebuyers who purchase an A or B energy performance certificate (EPC) rated new build home from one of the panel of builders. Borrowers can get a preferential interest rate on two and five-year fixed rate mortgages up to 90% LTV and Help to Buy mortgages up to 75% LTV. It means home movers purchasing a new build property could achieve a savings up to £375 on a typical mortgage of £150,000 over the five-year fixed rate term. The new partner builders include Bovis Homes, Persimmon Homes and Taylor Wimpey. External link to source: Mortgage Solutions - Barclays chops rates furter for first-time buyers…

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First-time buyer mortgage numbers jump as landlord purchases tumble

Thursday 17th January 2019
Lana Clements

The number of first-time buyer mortgages jumped to 36,200 in November, more than five times the number taken by new buy-to-let investors, UK finance data showed. The number of loans given to borrowers taking their first step on the ladder increased 5.8 per cent year on year, making up £6bn of new lending - a 9.1 per cent increase. At the same time, new buy-to-let mortgages dropped nine per cent year on year to 6,100. The deals were worth £0.8bn of lending, down 9.1 per cent. However, there were 15,000 buy-to-let remortgages - an increase of 9.5 per cent year on year - and worth £2.4bn, an increase of 9.1 per cent. There were 36,200 homemover mortgages in the month, an increase of 1.1 per cent from a year earlier. The group accounted for £7.8bn of new lending, up four per cent year on year. The number of remortgages in November increased by 1.3 per cent from 2017, but the £6.8bn of lending was flat. Jackie Bennett, director of mortgages at UK Finance, said: "A mixture of competitive deals and schemes including Help to Buy saw even more first-time buyers get a foot on the housing ladder during November. "Meanwhile, homeowner remortgaging activity has steadied, after reaching its highest level in a decade the previous month as a large number of fixed-rate deals came to an end. "In the buy-to-let market new home purchases remain subdued, while remortgaging continues to grow as landlords lock into attractive rates." Jonathan Harris, director of mortgage broker Anderson Harris, added: 'Encouragingly, first-time buyer numbers are holding up as they are essential to the overall health of the housing market. "Lenders have been tempting them with attractive rates at high loan to values, while government incentives, such as Help to Buy and stamp duty exemptions, are also playing a part. "First-time buyers have also benefited from the lack of competition for smaller homes from landlords, with many investors giving buy to let a wide berth. "Buy to let remains subdued although landlords are cannily remortgaging and cutting costs where they can." Source: Mortgage Solutions https://www.mortgagesolutions.co.uk/news/2019/01/17/first-time-buyer-mortgage-numbers-jump-as-landlord-purchases-tumble-uk-finance/…

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House prices flat as London fares worst and Wales best

Wednesday 16th January 2019
Lana Clements

House prices in Britain increased by 2.8% in the year to November 2018, edging up from 2.7% in October, official data showed. The average UK home is now worth £230,630, according to the Office for National Statistics (ONS). On a monthly basis prices were down by 0.1%. Over the year, Wales experienced the highest value growth of 5.5%, followed by the West Midlands with a 4.6% increase. House prices in London had the biggest fall, dropping by 0.7% annually and 1.2% month-on-month. Jeremy Leaf, north London estate agent, said: "On the ground, we are finding that we are in a price-sensitive, needs-driven market, especially at this time of year, which continues to be underpinned by low mortgage and unemployment rates, improving affordability and stock shortages. "As a result, we recorded better-than-expected viewings and valuations in early January, despite the Brexit uncertainty." Mark Harris, chief executive of mortgage broker SPF Private Clients, added: "Several lenders, including Barclays and HSBC, have reduced their mortgage rates recently on the back of falling swap rates as they attempt to get business off to a strong start to the year. "More lenders are likely to follow suit as funding costs remain low and there is a limited number of potential borrowers out there, as many people put decisions on hold until the Brexit outcome becomes more certain."…

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Mortgage market is opening-up to brokers in unexpected ways

Monday 14th January 2019
Richard Adams - Managing director of Stonebridge Group

There's no doubting this year could be a challenging one but, given your track record, I have no doubts in the ability of the advisory profession to deal with whatever might be thrown at them. Those who have spent any time in this market should be used to the unexpected by now and hopefully have the resilience, nous and entrepreneurial zeal to deal with any potential economic, political and regulatory changes. I think we can all agree that 2019 has the potential to deliver all three with some gusto. The good news however is that the foundations of the market are strong. Last year advisers cemented their position as the number one distribution channel, even in sectors like product transfers we saw the majority of business written by intermediaries - could we really have anticipated that just a few years ago? Borrowers and would-be borrowers continue to demand advice from professional advisers with access to the whole of the market. Whether that be initially through an automated offering or a traditional, face-to-face meeting, Joe Public continues to recognise that, when it comes to their mortgage, it pays to secure the best advice possible. Opening in new ways Of course, the mortgage market is also opening up in ways we might not have thought possible. The aforementioned product transfer sector - once purely the domain of lenders - is now a major opportunity for advisers. Meanwhile in later life lending, first-time buyer, self-employed, and other markets we have a much greater level of competition and complication, which means advice is absolutely vital. We also have the bedrock of the market for a number of years, the remortgage sector. Whether it is in the residential sector or buy-to-let, borrowers are keen to remortgage and want to access advisers' knowledge, particularly in light of the economic uncertainty that exists. Other income-generating areas Borrowers' may be more likely to take out longer-term fixes, which means UK Finance is suggesting the remortgage and product transfer markets might drop off in 2020 and beyond. But this year, the strength of those sectors seems undimmed and advisers will be able to ensure that it's not just these needs of clients that is looked at, but other income-generating areas such as general insurance, protection, and the like. The other important factor for advisers, and their clients, in 2019 is lender appetite and competition. This has grown in recent years, and the anticipation must be that this will continue in 2019. We've already seen new lenders entering buy-to-let and established lenders looking at their product options in other sectors. One suspects the clamour for business will mean rates stay highly competitive and, given this, advisers should be able to choose not just on rate but on service. Price is not everything That is, of course, depending on how the Financial Conduct Authority (FCA) might view the mortgage marketplace. In a move which, in my opinion, was a retrograde step, last year's Mortgages Market Study interim report focused a lot on price as a determining factor. However, I hope the final report u-turns on that and continues to recognise the importance - often much greater - of service, funding, and all other measures that advisers take into account when making their recommendation. Price is not the only consideration - far from it. All in all, 2019 comes with plenty of opportunities for advisers. If we are able to have some political certainty as well, then I'm hopeful we can all secure a further boost. On that point however, I'm not holding my breath. Source - Mortgage Solutions…

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How to get a mortgage with only one year's tax return

Thursday 5th July 2018

Self-employment has risen from 3.3 million to 4.8 million since 2014, fuelled by a mix of the autonomy gained by working for yourself, the appeal of of a high earning potential, and side-gigs turning into full-time job. As a new business owner, you'll already be beaming with excitement, but that feeling can fade if you decide you'd like to buy your own home but realise that it's not as straightforward for entrepreneurs as it is for employees. When purchasing a house, most lenders require two full accounting periods to pass and be reconciled before they are willing to lend to you. So depending on when you actually file your tax return, this could seriously affect your ability to obtain a mortgage for up to the first two or even three years after you have started your business. So how does getting a mortgage work for the self-employed? With the end of self-certification mortgages in 2014, over a third of new business owners say that it has become increasingly more difficult for them to become homeowners. This change means you must now apply for the same mortgage products and pass affordability checks as standard employees - but the process of approving the mortgage is hampered when it comes to providing evidence of your earnings. To facilitate the same mortgage to the self-employed, lenders will calculate the business' net profit after the deduction of expenses. This allows for a clear view of the funds spent on the start-up and growth of the business and potential sustainability. Does this also mean that obtaining a mortgage will cost a business owner more? Despite the extra evidence needed to secure a mortgage, it is not necessarily true that having a mortgage whilst being self-employed is more expensive. Providing that the financial information given to your lender is sustainable with the terms of the mortgage, the cost might not even differ from someone who is employed. As a mortgage broker, we know how committed new business owners have to be to make it through the first year, and we love supporting new business owners in achieving their dream of home ownership. We've spent years building close connections with our lenders and therefore we know just the ones who can support you with buying your first house with just one year's accounts. We'd be more than happy to discuss your individual situation and we'll do whatever we can to make the process as easy and painless as possible. With a suite of products and services that we are happy to discuss with you, we can build around helping your business owners to achieve home ownership. Using your SA302 Self-Assessment overview and other metrics to progress these applications, and we do everything we can to make the process easy and painless. So, if you have been self-employed for one to two years but have been worrying about how you are going to get on the property ladder, please give Your Mortgage Broker Cardiff a call on 02921321300 to get booked in for your consultation.…

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Can you really get a buy-to-let mortgage with no minimum income?

Thursday 5th July 2018

Becoming a homeowner is exciting. You can paint the walls whichever colour you like and hammer nails into the wall without the worry of being charged fees by your landlord. After a few years of homeownership, you may even fancy becoming a landlord yourself but the prospect of investing in a second property to rent out when you are on a tight income can seem daunting, and the idea of owning a buy-to-let property with no current income can seem impossible. Luckily for you, Your Mortgage Broker Cardiff can assist you whilst you are on your journey to becoming a landlord. Our buy-to-let service can be specifically tailored to those on lower incomes or those with no income at all. How can I prove low-risk to the lender? At Your Mortgage Broker Cardiff, we can advise you on a buy-to-let scheme that is non-regulated and does not consider personal income. Instead, the buyers existing personal mortgage can be used to assess the sustainability of the loan as well as the income likely to be made from the rental property. With no minimum income threshold, the valuation of the buy-to-let property will determine the affordability of loan terms. This valuation will provide the lender with the security needed to process the mortgage. This product differs from other mortgage services because the relationship between the lender and the landlord is a business to business exchange. How does 'buy-to-let' differ from 'residential'? Many of the processes and assessments involved with taking out a buy-to-let mortgage are vastly similar to taking out a residential one. However, the are some differences worth noting. The second property must be used as an investment and rented out to create income and to become a successful buy-to-let mortgagee, you are usually required to have had ownership of a residential property for six months or more. If necessary, we can help you find interest-only buy-to-let mortgages, which reduces monthly payments and eases the affordability of the investment, but the capital, of course, must be paid in full at the end of the term. Responsibilities as a new landlord. As a landlord, your responsibilities will increase and you will be required to carry out a number of checks and obtain insurances in order to comply with all the legal requirements and regulations, but we can advise on your obligations as a landlord and offer advice on handling security bonds and tenancy contracts. Your Mortgage Broker Cardiff pride ourselves on offering everyone the opportunity to increase their property portfolio regardless of income. We know the buy-to-let market inside out which allows us to focus on finding you the right lender so you can focus on your new investment. If you do have a low income or no income but are looking to invest in the property market, call us on 02921 321300 to get booked in for a free consultation.…

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