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Mortgage Market & Trends
Mortgage Market & Trends
Mortgage Market Review | Key Changes You Need To Know About
On the 26th April 2014, new rules were introduced about how mortgages are bought and sold. The new rules have had a dramatic effect and consumers face a host of new challenges when applying for mortgage funding.
Gone are the days of 4.5 x income = mortgage borrowing. Lending is now based on affordability and lifestyle and you must demonstrate this. Lenders will now look at the number of financial dependants, financial commitments, borrowing patterns and even your hobbies.
Interest only mortgages are a scarcity. If you wish to apply for one then you will more than likely need a recognised repayment vehicle. Sale of property requires low loan to value ratios and £100,000's of equity. Some consumers may well become "mortgage prisoners", being stuck with an interest only mortgage and failing affordability on a repayment mortgage. Yes, overpayments may be made but with lenders perhaps not offering new deals to interest only customers, they are potentially faced with a future on high standard variable rates and little or no prospect or remortgaging to get a better product.
Effectively, all mortgage sales must now be advised. This has been and will continue to be a headache for banks and building societies who historically have never had to advise on mortgages. We are getting reports from customers that banks are taking weeks to book in appointments and some of them are even taking 2.5 - 3 hours to complete an interview. We heard of one interview that was terminated for 15 minutes until the customers decided exactly when they were going to have their future children and disclosed the cost of them!!!
Lenders of course will only ever advise on their own product range. The notion of Nationwide sending you to Barclays as they have a better mortgage is laughable and of course will never happen. Charwin Private Clients of course have access to unlimited mortgages from across the market place and know every lenders criteria and assessment process. This means Charwin brokers will take you directly to the best deals that you actually qualify for. We have been advising for years. Nothing new to us there.
The key choice for the customers post Mortgage Market Review is a service related one. Do you use an independent broker such as Charwin, or take the chance on dealing directly with lenders hoping for a favourable outcome? We think the answer is obvious.
For residential, consumer BTL and business BTL
Your consultation is obligation and cost free, as is looking at any recommendation we may offer. We do not always charge a fee. This depends on your circumstances. When we do charge fees we take into consideration the commission we receive from the lender. Please check the Key Messages provided to you for the basis on which we charge fees. It will also be explained to you by your adviser. All fees in all circumstances are discussed with you and put in writing prior to any application being made. Our charge to advise and arrange your mortgage is £695. We deduct any lender commission expected from this fee. If the lender commission exceeds £695, we will not charge you at all. For example, if we receive £600 from the lender, we will levy a charge to you on completion of £95. We do not charge for setting up life assurance, critical illness, income protection or other insurance.
For 2nd charge (secured loan) business, Representative APRC 7.5% Variable.
Representative example: Annual interest rate of 6.9%, Representative 7.5% APRC Variable. Based on borrowing of £80,000 over 240 repayments of £631.06. Total amount repayable £151,824.40. Includes lender fee of £495 and broker fee of £1,500.
Charwin Private Clients are authorised and regulated by the Financial Conduct Authority. Our firm’s number is 498486. You can check our details on the FCA register by clicking here.
Our trading address is Holland Court, The Close, Norwich, NR1 4DY. Tel: 01603 216881 || Fax: 01603 216885
Registered in England No: 06628612. Registered office: Holland Court, The Close, Norwich, NR1 4DY. This site is only directed at persons within the UK.
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