Moving house can be a really exciting time; scouring RightMove for potential new homes, heading to viewings and finding ‘the one’, and then getting your own house up on the market to sell. Amongst all of this, however, it’s really important to decide what your next move will be in terms of your mortgage. Should you find a new mortgage deal, or try to port your existing one? [Read more…]
When you take out a mortgage to buy your home, you typically take a deal that is to be paid off over the next 25-30 years. That doesn’t mean, however, that you have to stick with that original deal or lender for the whole of that term. In fact, it often makes sense to move your mortgage borrowing around onto different deals, or different lenders to take advantage of deals that might be available. Transferring your mortgage borrowing without moving house is known as remortgaging.
You might choose to remortgage with your existing lender if they can offer you a better deal (usually referred to as a ‘product transfer’), or you can move your borrowing and remortgage with a different lender altogether. [Read more…]
When you are self-employed, you may wonder how much you can borrow when taking out a mortgage. The nature of being self-employed often means that your income is not fixed each month/year. Without the security of a contract of employment, you may find it difficult to persuade some lenders that your income is stable enough to allow them to approve you for the mortgage that you want.
Sure, assessing the mortgage affordability for a self-employed person can be a little more difficult than for an employed person, but it’s by no means uncommon. Many lenders are well-versed in helping self-employed applicants get the right mortgage. [Read more…]
The Shared Ownership scheme has been around now since the 1970s. It’s a very popular way for those on low incomes or with low deposits to get onto the housing ladder. Shared Ownership has been described as a cross between homeownership and renting – but how does it actually work?
The Shared Ownership scheme explained
The Shared Ownership scheme allows you to purchase a share of a property, meaning you’ll only need a 5%+ deposit or in some cases, no deposit at all. You have a mortgage for the percentage of the property that you own, and you pay rent to the Housing Association on the rest. Commonly you can purchase between 30-50% of a property, however new changes to the scheme allow you to purchase just 10%. [Read more…]
If you would like to buy a property outright but you can’t raise a mortgage large enough to complete the purchase, then you might consider making use of the Shared Ownership scheme. The Shared Ownership scheme is designed to make buying a house more accessible for people on a lower income or who have low deposits- but is it a good idea?
How does Shared Ownership work?
Shared Ownership schemes are a cross between buying and renting aimed mainly at first-time buyers. You own a share of the property and pay rent for the part you don’t own at a reduced rate. Previously, you would need to purchase at least 25% of the property value, but new changes to the scheme allow you to purchase just 10%, making Shared Ownership all the more affordable. You will usually need to provide some level of cash deposit, and raise a mortgage for the rest of your share from one of the participating lenders (note: not all mortgage lenders will fund Shared Ownership properties). [Read more…]
The Help to Buy equity loan scheme has been around now since 2013, and with many people coming to the end of their five-year interest-free period on their Help to Buy equity loans, many are asking the same question – what are my repayment options? The good news is that there are a few different routes that you can take when paying back the equity loan – and we at Mortgage Light have experts that can help you decide which is best for you.
Firstly, let’s explain a little more about the Help to Buy equity loan
The Help to Buy equity loan is a government scheme designed to make the property ladder more accessible for those who are struggling to save for a house deposit. When it initially launched it was available solely to first-time buyers however, it is currently open to anyone looking to move into a new build property in England. There are similar schemes available in Wales and Scotland however, they are subject to slightly different rules. [Read more…]
The Shared Ownership scheme was introduced in the 1970s to help low income and first-time buyers get onto the property ladder. Today, it’s the most popular option for more affordably buying a home, and there are more than 200,000 Shared Ownership properties in the U.K. Even though the scheme is popular, there are many people who don’t realise that Shared Ownership is an option for them. So, how does it work and who is eligible?
What is Shared Ownership & how does it work?
If you’re on a low income, that certainly doesn’t mean that you’ll never be able to own a house. The Shared Ownership scheme is one available option designed to help those who may be struggling to scrape together the deposit for a home. This could be first time buyers, or those who were once on the property ladder and now can’t afford to get back on. You’re often able to buy into a Shared Ownership with no deposit – the only money needed is for solicitors and any mortgage fees.
As a first-time buyer, getting onto the property ladder can seem impossible, especially if you’re trying to put away money for a deposit whilst renting. The good news is that there are a few schemes that the British Government has put into place to make buying your first home a little easier. An example of this is the Help to Buy Equity Loan.
The Help to Buy Equity Loan was initially set up to help people get onto the property ladder and buy their first home, although it’s currently open to all homeowners who are looking to move. It’s only available on new build properties in England, and the new home must be your main residence and only property. Similar schemes are available in Wales and Scotland but are subject to slightly different rules.
The Shared Ownership scheme has been around for as long as the 1970s, so it’s likely that you’ve heard it mentioned in one context or another. Until you come to buy a property however, you may not have known exactly what it is.
There are a few different schemes out there for people to make use of when taking the first step onto the property ladder, and Shared Ownership is the most common affordable purchase option. But what does Shared Ownership actually mean?
Remortgaging is the process of taking out a new mortgage to replace your current one on a property that already belongs to you. When you buy your mortgage, you don’t have to think of it as something that you’ll be held to for the rest of your life. Instead, think of it as something to re-evaluate periodically to make sure you’ve got the best deal for your situation.
When should you consider remortgaging?
If approved, you can remortgage at any time, so you might be in a position to remortgage and not even be aware of it. A mortgage broker and adviser can help you figure out if remortgaging is right for you.