Greig Hofbauer - Finance Advice Centre - Mortgage Broker

We hope you've had a wonderful Christmas and spent lots of time with your families!

Undoubtedly, most of us have made some mistakes in 2022. On the bright side, there will be plenty of opportunities to grow and learn in 2023.

As mortgage advisors, it's our job to know a vast range of knowledge about the mortgage market and essential tips on setting yourself up to be in the best position to get one.

Make sure to reach out, ask questions, keep an open mind and don’t assume you know everything already. That’s a great place to start.

We look forward to working with you in the new year!

Always note: As a mortgage is secured against your property, it could be repossessed if you do not keep up the mortgage repayments

4 Days till Christmas!

We just wanted to wish everyone a genuinely happy Christmas this year.

The last few years have been tough for us all and sometimes it feels like it hard to stay positive. Make sure to spend time with loved ones and family and If you are feeling alone or feeling down, make sure to speak to someone to talk and seek help.

As much as we love talking about Mortgages we understand everyone is human and go through real and tough things everyday.

Do the best you can and spread some joy this Christmas!

- The FAC Family

Christmas is an amazing time to be with family, but it can also be a stressful time for your bank account. Fortunately, there are many ways to make your Christmas budget stretch further and save some money!

Here are some tips for saving money this Christmas season:

1. Try Secret Santa

Participate in secret Santa instead of buying gifts for every person on your list—it's much less expensive! Plus, it's fun! Check with friends, family or coworkers to see if they're interested. It also means everyone gets a gift

2. Only buy what you need.

In the Christmas sales, the temptation is all around, and suddenly your brain starts telling you that you need things simply because 'it's such a bargain'.

But the benefits of bagging a bargain in the sales are soon wiped out if you end up with things you don't really need and wouldn't otherwise have bought. Self-discipline is key! Buy for the long term: make sure you can reuse items year after year.

3. Buy in sales and buy ahea

Planning Christmas shopping for next year in the Boxing Day and January sales could save you £13,000 over the course of your lifetime, the research reveals. In addition to this, it will help you save and budget for all gifts throughout the year. If you aren't going to see family until after Christmas then why not buy the gifts when

4. Buy refurbished / Vintage

As well as helping you save money, buying second-hand / refurbished gifts can also help the environment. You often find refurbished/like new products have good warranties and are indistinguishable from new items but way less in price.

If you have any Mortgage related questions, as always, feel free to reach out via DM, Call or Email and we can discuss your current situation!

Always note: Your home may be repossessed if you do not keep up repayments on your mortgage.

Buying a home can be exciting.

However, it comes with a lot of preparation in order to ensure that you will not get yourself into a sticky situation.

It may be worthwhile to obtain insurance to cover your mortgage payments in the event of any future problems.

There are various types of insurance policies available to provide financial support to you and your family if your circumstances change, such as:

Life Insurance: If you pass away before paying off your mortgage, you will receive a lump sum that can be used to help pay off any outstanding balance.

Critical Illness Cover: If you are diagnosed with a serious illness, you will receive a tax-free lump sum. It is intended to provide financial assistance to you and your loved ones while you are undergoing treatment.

Unemployment Cover: This is a short-term income protection policy that pays out up to 70% of your gross annual income tax for up to a year.

Get protected from unforeseen circumstances, the right way.

If you have any questions, call as soon as you can, and we can assess how you can stay protected.

Always note: As a mortgage is secured against your property, it could be repossessed if you do not keep up the mortgage repayments.

Buying a house is an exciting chapter in your life.

But you take the risk of getting caught up in a mortgage you won’t be able to finish in this lifetime!

So if you are thinking about becoming a homeowner, sit down and itemise all the money you have coming in and going out.

Ask yourself, how much can you actually afford to save every month?

With this in mind you can see how long it will take for you to achieve your savings goal. If the timeline is too long, then you should consider increasing earnings, implement some compromises and adjust your spending.

Here are a few tips to reduce your costs, earn more and boost your savings:

- Switch to a discount supermarket and buy supermarket own brands.
- Reduce fuel costs and cycle or walk to work – if it’s too far then try lift sharing to reduce your commuting costs.
- Sell the stuff you don’t use anymore.
- Work a little more; accept overtime, if your main job allows it, consider a second job or freelancing in the evenings and weekends.
- Reduce your current rental costs – how much more could you save each month if you moved back in with your parents? Or can you share with a partner or friend?
- Use a cashback site – valid purchases will then earn you money back!
- Shop around. Find a cheaper deal on your mobile, broadband and utilities.

Do you have your budget and timeline set? Drop a message, email or call today if you have any questions. You’ll be one step closer to your new home in no time!

Always note: your home may be repossessed if you do not keep up repayments on your mortgage.

Just because you have bad credit doesn’t mean you have to kiss your chances of getting a mortgage goodbye!
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Get the help of a specialist before applying as talking to the wrong lender, could get you declined.⁣

Don’t worry, there are some lenders that will consider applicants with bad credit. There are also specialist lenders for severe credit issues.⁣
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Of course, rates and fees may be higher than average due to your credit, but this is usually assessed on a case by case basis.⁣
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It’s our job to help people like you who aren’t sure what’s right for them, we can guide you through the process and genuinely give you the support you need. Reach out, give us a call, drop us a message and we can be here to help!

Always note: As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the mortgage repayments

You’ve decided you want to buy your dream home, and now you are ready to calculate your potential mortgage costs. 🏠

In three simple steps, you’ll have an approximate cost of what your mortgage could be!

Head to FinanceAdviceCentre.co.uk today for more information - you’ll be one step closer to having the keys in your hand to your new home. 🔑

As always, for any mortgage-related questions, drop a message anytime, and we can discuss potential options available to you!

Always note: As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the mortgage repayments

Is a mortgage right for me right now?

In the mid-noughties, self-certification mortgages were very common, you were responsible for declaring your own income and this meant many people had loans they could not afford.

Time and the credit crunch have changed things radically. These days people still struggle to get mortgages, and it’s not been made any easier by the coronavirus pandemic.

So the starting point for first-timers is no longer about choosing the mortgage that’s right for them. It’s about ensuring you’ll be chosen for a loan by a mortgage company at an affordable rate.

Can you really afford a mortgage?

First things first. This is a numbers game so before you do anything else, have a good look at your finances.
There are free services that you can use like http://www.moneysavingexpert.com/moneymakeover to take a look at your finances and work out what you can realistically afford to pay every month.

Reach out to a mortgage advisor today!

It’s our job to help people like you who aren’t sure what’s right for them, we can guide you through the process and genuinely give you the support you need. Reach out, give us a call, drop us a message and we can be here to help!

Always note: As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the mortgage repayments

Conveyancing is the process of finding the best solicitors to assist you with the purchase or transfer of your property.

These solicitors will ensure that all documentation is prepared correctly and that contracts are exchanged, legally binding the purchase.

Most lenders require the property to be conveyed before the mortgage can be finalised, increasing the lender's confidence in the loan amount.

If you want to know more about the application process and other key terms, drop a DM, email or phone call, and we can discuss how getting a mortgage would work for you.

Always note: As a mortgage is secured against your property, it could be repossessed if you do not keep up the mortgage repayment

Applying for a mortgage can appear to be a lengthy and confusing process, with endless forms to complete.

You must provide proof of your income, credit commitments, and spending or provide tax returns and business accounts for the previous two or three years if you work for yourself.

Lenders will then conduct what is known as an affordability assessment, a detailed examination of your finances that will be used to determine whether you can afford your long-term repayments or not.

If you want to know more about the application process, reach out, and we can discuss how getting a mortgage would work for you.

Always note: As a mortgage is secured against your property, it could be repossessed if you do not keep up the mortgage repayment

Ever been worried about what would happen to your home if you got ill?

Critical Illness Cover is a plan that pays out the mortgage amount if you are diagnosed with a critical illness, as long as this is specified in the terms and conditions eligible for a claim.

You should consider protecting yourself and your loved ones if anything ever happens to you.

If you want to know more about Critical Illness Cover, reach out, and we can discuss the options available to you.

Always note: As a mortgage is secured against your property, it could be repossessed if you do not keep up the mortgage repayment

To study or to buy a house? Why not both?

This is possible with the Buy for University Mortgage.

This enables students to purchase a home to live in with the help of family and then rent out rooms to cover the mortgage payments.

It is intended to allow a student to purchase a property of their choice rather than rent, and to generate enough income from renting to cover the majority of the monthly mortgage repayments.

If you want to know more about Buy for-university mortgages, reach out, and we can discuss the options available.

Always note: As a mortgage is secured against your property, it could be repossessed if you do not keep up the mortgage repayment

Knowing how long the property you want to buy has been on the market is critical!

This will give you an idea of how much lower you can go when submitting an offer. If the property has been on the market for a long time and the sellers are desperate to move, they will most likely be eager to sell it, even if it is for less than the asking price.

If you want to know more about how you can get a mortgage, reach out and we can discuss the options available to you.

Always note: As a mortgage is secured against your property, it could be repossessed if you do not keep up the mortgage repayment

Finding a mortgage may appear confusing and time-consuming if you are a British Expat living and working abroad, or a Foreign National looking for a UK or Overseas property, we're here for you!

As an Independent Mortgage Advisor, we have access to over 40 banks and building societies, all willing to potentially accept applications from British Expatriates and Foreign Nationals seeking UK and Overseas Mortgages.

If you want to know more about getting an Expat mortgage, reach out, and we can discuss the options available to you.

Always note: As a mortgage is secured against your property, it could be repossessed if you do not keep up the mortgage repayment

According to Statista only 0.7% of homeowners in 2021 were aged between 16 and 24 years old.

In 2021, only 0.7% of homeowners were between the age of 16 and 24. This rose to 11.2% for those in the 25-34 age bracket, and 15.4% for those between 35 and 44 years of age. Less than a fifth were 55-64 years old.

The overwhelming majority were those aged 65 and over, occupying over one-third of the homeowner market.

According to mortgage statistics, most households (64%) in the UK are owner-occupiers, which means either owning a home outright, or owning a home with a mortgage. This equates to an estimated 24.7 million households.

In 2020, approximately 8.8 million (36%) were owned outright, with 6.8 million (28%) owned with a mortgage or a loan.

If you want to know more about how you can get a mortgage, at any age, reach out, and we can discuss the options available to you.

Always note: As a mortgage is secured against your property, it could be repossessed if you do not keep up the mortgage repayment

Looking to improve your credit score before purchasing your home? Here are a few quick tips to get you started!

Make regular payments on time.
Keep your credit utilisation low.
See if you could get an instant score boost.
Check for errors and report any mistakes on your report.
Monitor your credit file for fraudulent activity.
Avoid moving home a lot if you can
Keep old accounts open and show a long credit history
Consider getting a credit builder card

If you want to know more about improving your credit score, reach out and we can discuss anything mortgage related!

Always note: As a mortgage is secured against your property, it could be repossessed if you do not keep up the mortgage repayment

A question worth asking.. “How old are you?”

And we’re not talking about you but the property you want to purchase!

What year was it built? Is there a builder's warranty if it’s a new construction? You can look for signs of more significant issues by asking about the property's age before purchasing. All these factors can impact your overall spending, so make sure to factor them in.

mortgage advisors spend a lot of time researching the right questions to ask. If you are unsure what to ask, reach out and we can discuss anything mortgage related!

Always note: As a mortgage is secured against your property, it could be repossessed if you do not keep up the mortgage repayment

News:

The Bank of England announced it would increase interest rates by 0.75 percentage points to 3% - the most significant rise since 1989

Fixed rates are unlikely to be impacted, but lenders will likely increase their variable rates. This means borrowers coming off fixed rates will be affected if they decide not to do anything with their Mortgage and lapse onto a variable rate.

There have never been a better or more important time than right NOW to get yourself an excellent specialist broker.

Always note: As a mortgage is secured against your property, it could be repossessed if you do not keep up the mortgage repayment

It's crucial in times like these that you aren't hit by any hidden costs.

Disbursements are all the costs that you will have to pay in addition to your solicitor's fee, such as land registry fees and search fees.

If you are worried about any other hidden fees or small details you might be potentially missing, get in touch and we can talk about it! .

Always note: As a mortgage is secured against your property, it could be repossessed if you do not keep up the mortgage repayment

There are so many benefits to using a mortgage advisor.

You could save lots of time.
You could save money.
You can get access to more products.
You'll get expert financial advice.
You'll get help with paperwork.
You'll get help with the application.
You can get help with essential insurance.

Please get in touch if you would like to discuss what options are available for you.

Always note: As a mortgage is secured against your property, it could be repossessed if you do not keep up the mortgage repayment

There are some basics you need to get covered to get the best deal on your new mortgage.

Following these five steps will take you closer to the right deal for you:

- Examine your credit.
- Draft a budget within your possibilities.
- Learn about your loan options.
- Shop around.
- Prepare your paperwork.

If you need help learning about the best loan options for you, how to examine your credit or how to nail your paperwork, let's talk about it! Don't hesitate to get in touch via Dm, Email or phone call today.

Always note: As a mortgage is secured against your property, it could be repossessed if you do not keep up the mortgage repayments.

News

Who do you think should be the next Prime Minister?

Do you think Boris should be Prime Minister again?

Source: The Telegraph

Tory leadership news: Boris Johnson returns to UK as rival Rishi Sunak reaches 100 public backers

Boris Johnson landed back on British soil on Saturday morning as his prospective leadership rival Rishi Sunak became the first Tory leadership contender to reach 100 public endorsements from his fellow MPs.

A plane carrying Mr Johnson and his family arrived at London Gatwick at around 10.17am as calls grew from backbenchers for him to formally declare a run.

Leadership hopefuls require 100 nominations, which can be private or public, from Tory MPs by 2pm on Monday if they are to proceed to a second round of voting among the party membership.

Mr Sunak is the current frontrunner to succeed Liz Truss as prime minister but has yet to announce his candidacy.

It came as Priti Patel, the former home secretary, backed Boris Johnson to become the next Conservative leader and prime minister.

Because each mortgage lender approaches mortgage underwriting differently, there is no way to guarantee that you will be offered a mortgage.

Obtaining an Agreement in Principle (also known as a Decision in Principle) means that your mortgage provider will conduct a credit check and evaluate other financial information about you.

If you meet their initial lending criteria, the lender will usually issue you a certificate or letter confirming the amount you could potentially borrow. You can show this document to a real estate agent as proof that you passed the initial lender checks.

It's a good idea to do this before making an offer to ensure you have enough money to buy the property. Furthermore, some sellers will not accept your offer unless you have an AIP, so it's better to have one to be safe!

If you are concerned or have any questions about your mortgage application or anything mortgage related, don't hesitate to get in touch via Dm, Email or phone call today.

Always note: As a mortgage is secured against your property, it could be repossessed if you do not keep up the mortgage repayments.

Can my mortgage offer be withdrawn?

If you already have a mortgage deal agreed upon, then it should be honoured. However, ensure that you confirm this with your lender.

It is first-time buyers and remortgagers planning to put in an application who are at the sharp end of the current situation.

The mortgage products and rates they were expecting have now largely disappeared. When deals return, they will be more expensive.

It isn't until the mortgage application is complete that you are likely to have secured a specific rate. An earlier agreement-in-principle, for example, will rarely include a specific rate and will not be binding anyway.

It is important to stress that if you are part-way through a fixed-rate mortgage deal, that rate cannot be changed until that deal expires.

If you are concerned or have any questions about your mortgage application or anything mortgage related, don't hesitate to get in touch via Dm, Email or phone call today.

Always note: As a mortgage is secured against your property, it could be repossessed if you do not keep up the mortgage repayments.

Times are hard and the current mortgage and financial markets are very confusing, difficult to understand and stressful for most of us.

Just know, you can reach out to me anytime regardless of your question. I have spent a lot of time researching the market i am more than prepared to answer any questions you have.

Many lenders are still actively lending, some have put measures in place to slow down the application process or in some cases put applications on hold. So in general be careful what you read online or in papers and go to a trusted, qualified mortgage advisor like myself for help.

I am here to support you. Things will stabilise, things will recover, try and be patient, calm and collected and you will get through it.

If you have a current application in progress or a valid offer you will not be affected by any rate increases. If you haven't been able to secure a rate for your mortgage yet, it could be in your best interest to speak to an advisor as soon as possible.

Always note: As a mortgage is secured against your property, it could be repossessed if you do not keep up the mortgage repayments.

Seen the news? Here's a summary:

The Bank of England has raised interest rates again - this time from 1.75% to 2.25%, taking borrowing costs to their highest level since 2008!!!

Personal finance experts say the change will mean a rise of £25 a month in repayments for each £100,000 of a variable mortgage

The Bank also forecasts that the UK economy is already in recession - meaning two consecutive quarters of contraction.

Its monetary policy committee voted by 5-4 for the rate hike, with three members calling for a bigger rise and one arguing for it to be smaller.

Inflation - the measure of how fast prices are rising now compared to a year ago - is currently 9.9% and at its highest level in nearly 40 years.

Russia's invasion of Ukraine has pushed up the price of oil and gas, while shortages of goods globally have also made things more expensive

On Friday, Chancellor Kwasi Kwarteng will set out more details on a plan to help households with soaring bills

Source: BBC Finance

Wondering how this a may affect you? Call, DM, or Email today to speak to a mortgage advisor you can trust to give you the best advice.

Always note: As a mortgage is secured against your property, it could be repossessed if you do not keep up the mortgage repayments.

LTV (Loan To Value) is the amount borrowed to buy your home (the loan) compared to the mortgage lender's valuation of the property.

For example, when you pay £200,000 for a home, put down £20,000 as a deposit, and have a mortgage of £180,000, your LTV is 90%. This is because the loan amount (£180,000) is 90% of the home's value (£200,000).

The lower your LTV, the lower your interest rate will most likely be.

Email, call or DM today to learn more about your mortgage options.

Always note: As a mortgage is secured against your property, it could be repossessed if you do not keep up the mortgage repayments.

Since early 2021, the cost of living in the United Kingdom has been rising.

This past June, the cost of living hit a four-decade high of 9.4%.

Food, goods, energy, and fuel prices have also risen as a result of high customer demand and supply chain issues.

Because of all this, a new energy price cap went into effect in April 2022, effectively raising energy bills by 54%.

Several new price caps are set to take effect in October 2022 and January 2023, which will raise energy bills even more…

A new price guarantee on energy bills was announced last week by the government to tackle soaring prices and reduce the burden on consumers.

Liz Truss's plan - paid for by tens of billions of pounds of borrowing - will save the typical household around £1,000 and protect bill payers from further expected rises over the coming months.

It means bills will be significantly higher than last year's - but less than the amount they would have risen to had consumers been forced to meet the costs of the Ofgem energy cap change on October 1, when bills were set to rise 80% to £3,549.

So, what is the price guarantee?

The price guarantee is the unit rate you pay on a standard tariff, capped at 34p per kilowatt hour for electricity, and 10.3p per kilowatt hour for gas. This is on average, it varies by region, you will need to look it up by region, standing charge can vary a lot.

The standing charge for electricity is 46.4p a day, the standing charge for gas is 28.5p.

If you don't understand that, the big point is: use more, you pay more, use less, you pay less.

What's actually being capped is the amount firms can charge you for each unit of energy you use, that is what is being capped and that has been reduced substantially from what was going to happen in October.

Wondering how all of this can affect you? Let's talk about it. Get in touch via DM, Email or Call and we can talk through all your questions!