March Mortgage News - Mortgage Squared

Industry Pandemic Recovery

One in four people will take at least a year to recover financially from the pandemic, sources from poverty charity Turn2Us claim.  Those who have been affected financially may need an extra 17 months on average to get things back on track.  The charity claims 15% of people are struggling to afford their rent or mortgage payments, 19% are struggling with bills and 10% are having problems with paying for food.

Buying a Flat? Think Again.

More and more mortgage deals are becoming available for people who only have a small deposit, however if you’re looking to buy a flat then you could find your options limited. More and more lenders are only offering their low deposit deals on houses and bungalows with flats, maisonettes and new builds being excluded.  The new 5% deposit scheme should be good news for most unless your desired property is a flat.

Where Are The Best 90% Mortgage Deals

90% mortgages are now becoming increasingly available but where should you go and who offers the best rates?  With a week to go until the Governments new mortgage guarantee scheme launches, lenders are reducing the cost of a mortgage with a 10% deposit put down. The good news is there is little difference between lenders are most seek to compete for your business. Atom Bank, Platform, Nationwide, HSBC and Yorkshire Building Society all offer highly competitive rates for 90% mortgages with initial 2 year fixed rates of 2.99% to the slightly higher 3.09%.

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Council Tax Hike To Affect Mortgage Holders

Many mortgage holders are set to struggle due to the incoming increase in Council tax. Almost 2.3 of England’s major Councils are looking to increase tax by about 5% in April. This will take many bills over the £2,000 threshold for the first time and affect peoples outgoings.

Remortgaging Could Save You Up To £3,500 A Year

Remortgaging could save mortgage holders up to £3,500 a year experts are claiming.  Many borrowers are worried the impact of Covid has damaged their credit status meaning they won’t be accepted for a new mortgage with better rates.  Many others are still in furlough and are waiting to come out of this before proceeding with any new mortgage application. When borrowers don’t remortgage they revert back to the lenders standard rate which is more often then not a higher rate.

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TSB Launches New 95% Mortgage

TSB is relaunching it’s range of 95% mortgages. From the 7th  of April first time buyers and home owners who want to move will get access to the new scheme. Sadly, flats and new builds will be capped at 85% LTV.

Octopus Offers New Buy to Let Scheme

Octopus Real Estate has returned to the buy-to-let market with a scheme suited for cases not straight forward or simple.  Complex lending cases for buy to let now have a new scheme available which could solve problems for many.

Nationwide Reduces Rates

The mortgage lender Nationwide is reducing its rates on dozens of mortgage products across it’s range even at the highest LTV end.  There are also new products with a flat £1,499 fee for all LTV deals of 60%.  For example a 2 year fixed fee 60% LTV with no fee has been reduced to just 1.54% with the 90% LTV equivalent down TO 3.44%.

Equity Release Used For Debt

Older homeowners are using equity to pay off debts. Last year there was £3.4 billion pounds released in equity and 18% of this was used to clear unsecured debts.

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House Prices And Stamp Duty

The average house price in January 2021 increased by 7.5% and this is being contributed to the Stamp Duty holiday. The average price of a house in the UK rose to £249,000 in January of this year. The increase could be related to the increased demand after the property market stalled and was effectively put on hold most of 2020 and also the Stamp Duty with many home owners maybe inflating prices as they know the buyer has no Stamp Duty to pay.

Mortgage Payment Holiday Deadline Approaching

Homeowners looking for a deferred mortgage payment have just one week left to apply. The deadline for the scheme – which has provided financial breathing space for many during the Covid-19 pandemic – is Wednesday, March 31. Mortgage payment holidays can last up to a maximum of six months. This means if you’ve already had a holiday that only lasted for three, for example, you may be able to get a further three-month deferral.

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