Latest news with #remortgaging
BreakingNews.ie
3 days ago
- Business
- BreakingNews.ie
First-time buyers lead the way for mortgage approvals in April
First-time buyers continue to lead the way for mortgage approvals in April, with the overall value of approvals supported by ongoing increases in the average value of approvals and increases in re-mortgaging levels. The trends in approvals are broadly in line with Q1 and are unlikely to impact our mortgage forecasts, according to Davy. Advertisement The Banking & Payments Federation Ireland's (BPFI) April mortgage approvals of €1.5 billion are ahead by 14 per cent by value and 4 per cent by number versus April 2024, with the timing of Easter (April 2025 versus March 2024) likely having some impact on April 2025 activity levels. First-time buyers (€965 million) again lead growth with a 12 per cent increase in value (3 per cent by number), with a large increase in re-mortgaging (€151 million), albeit off a low base. Second and subsequent buyers remains more muted with a 1 per cent increase in value and 6 per cent decline in numbers of approvals. Average mortgage approvals continue to increase with an 8 per cent increase in first-time buyers to €330,123 and a 7 per cent increase in second and subsequent buyers to €374,823. On a year-to-date basis, the overall value of approvals has increased by 16 per cent, with a 13 per cent increase in first-time buyers and 9 per cent increase in second and subsequent buyers. Advertisement Second and subsequent buyers are more impacted by the health of the existing homes market where supply remains at very low levels. Nonetheless, the trends in April are broadly in line with Q1 and point to increases in activity in the mortgage market. As a result, we maintain our mortgage forecasts with an overall mortgage drawdown of €14 billion (2024: €12.6 billion) and growth of 3 per cent in the stock of mortgage balances.
Daily Mail
3 days ago
- Business
- Daily Mail
How to get a mortgage: From applying for a decision in principle to getting an offer
Buying a new property, getting a mortgage and remortgaging are all huge financial decisions. They involve a number of different steps and a host of parties, including solicitors, estate agents and mortgage brokers. What's more, some of the steps are different depending on whether you're taking out a mortgage to purchase a property, or remortgaging and negotiating a new deal. This guide helps to demystify the process. From getting a mortgage in principle before searching for a property, to the documents you need when applying for a mortgage or remortgaging, we explain what you need to do. We also consider how to get a mortgage in various circumstances, including when you're a first-time buyer, are self-employed or are looking for a buy-to-let mortgage. It's always a good idea to compare mortgage rates to find out what deals may be available. Before you start your property search: Get a mortgage in principle If you are buying a home, the first step towards getting a mortgage usually involves applying for a mortgage in principle. This is also known as an agreement in principle or decision in principle, and it indicates how much a mortgage provider might be willing to lend you, based on information that you provide. You don't need to know the property you'd like to buy to get a mortgage in principle. In fact, doing this before ramping up your property search helps you narrow your focus on homes that you can afford to buy. It also shows you're serious about buying. But this won't be locked-in – even if the lender agrees to a mortgage in principle, there's no guarantee it'll actually offer you a mortgage when the time comes. You can apply for a mortgage in principle directly with many lenders online or in branch. Alternatively you can speak to a mortgage broker or adviser who should be able apply for a mortgage in principle for you. To get one you'll need to give the lender or mortgage broker your details including information about your income and outgoings. It should only involve a soft search of your credit file, which doesn't affect your credit score. This is Money's partner L&C can give you a free mortgage in principle. Enter your details and find out how much you could borrow in a matter of minutes. What if your mortgage in principle is declined? The lender might refuse your mortgage in principle for a few reasons, including if it thinks: you won't be able to afford the mortgage repayments you don't have a large enough deposit you have a poor or limited credit history Lenders look at your credit history to work out the risk of you not being able to repay the money. If you've struggled to meet your credit obligations in the past or are in significant debt, you'll probably find it difficult to get a mortgage in principle, and therefore a mortgage, from a mainstream lender. In this situation it's best to request a free credit report from the credit reference agency (or agencies) the lender used to check your credit file – the lender must tell you which it used when you ask. You can scour your report for areas to improve, for example registering on the electoral roll. You should also double-check the lender's criteria to make sure you meet them. If there's an element you fall short on, another lender may be more suited to your needs. New home: Once you have had an offer accepted, it is time for your full mortgage application Once you've found a property: Apply for a mortgage When you've found your ideal home and had an offer accepted, it's time to apply for a mortgage properly. If you're applying for a mortgage from the same lender that gave you a mortgage in principle, you should be able to retrieve the application and continue from there. There's no obligation to use the same lender that gave you a mortgage in principle. But if you do go with a different mortgage provider, it may ask you to complete a new mortgage in principle before you apply. What documents do I need for a mortgage? Knowing what documents the lender will ask for can speed up the mortgage application process. You should be prepared to show: photo ID such as your passport or full UK driving licence proof of residency or nationality if you've moved to the UK from a different country the last three to six months' worth of bank statements (the lender may want to check your regular outgoings) proof of income (such as payslips or your tax year overview if you're self-employed) evidence of your deposit (bank statements, or if your deposit's a gift you may need to fill in a form to prove you're not expected to pay it back) P60 tax statement Do you need a mortgage broker to apply for a mortgage? You don't need to use a mortgage broker when applying, but they can find the best mortgage deals for your situation and speed up the application process. While some brokers don't charge fees, others do. Make sure you understand fees before proceeding and compare a few different advisers before going ahead. If you have more specific needs, for example you're self-employed or have been turned down for credit in the past, a broker can help you find the best deal for your situation. The terms mortgage broker and mortgage adviser are often used interchangeably. They generally refer to the same type of service – someone who advises you on your options, including how much you can borrow, and searches the market for deals relevant to your situation. But make sure you know which type of adviser you're dealing with. Some advisers will only look for mortgages from a specific lender or group of lenders, or have a more restricted range of products they can recommend. These are often employed by the lender itself. Other advisers can search for the best deals from a wider range of providers. This is the type of adviser that's probably best to engage – look for brokers that describe themselves as independent or whole of market. What type of mortgage can you apply for? You can go for a fixed-rate mortgage, which fixes your interest for a set time, often two or five years. A variable mortgage on the other hand means that your interest can move up and down. Also consider fees and your options for the term – a longer term means your monthly payments will be lower, but you'll pay more interest overall. How long does it take to get a mortgage? It typically takes between two and six weeks for a lender to process your application and offer you a mortgage. But there are lots of factors that affect how long it takes to get a mortgage, including: Your preparedness: do you have all your documents together, such as your passport, bank statements and utility bills? Whether you're using a mortgage broker: mortgage brokers and advisers can make the application process quicker - but check whether they charge fees. The lender's checks: the lender needs to check your credit history in full, your affordability and whether the property is worth the amount you're buying it for. Whether the lender needs more information: the lender may ask for more documents or details before deciding on your application. The type of property involved: Some properties, such as leasehold flats, may require a longer mortgage process as the ownership structure is more complex Each mortgage application is different, which accounts for the wide variation in the time you can expect yours to take. How long does a mortgage offer last? A mortgage offer usually lasts for between three and six months. It depends on the lender so make sure you check. Once you've got an offer you can move on to the next stage of the process, which involves your solicitor carrying out legal checks on the property. Remortgaging: Switching to a new deal at the end of your fixed term Many people choose to fix their mortgage rate for a number of years, commonly two or five. When this comes to an end, they will need to switch to a new deal otherwise they'll fall onto the mortgage provider's more expensive standard variable rate. You can find a new deal with your existing lender, but you may be able to find a better one elsewhere so it's important to compare all your options. Switching to a new deal with your existing lender is called a product transfer, while going with a new provider means remortgaging fully. This involves many of the same steps as taking out a mortgage initially, including affordability checks and property valuation. How to find the best mortgage rates To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's online Mortgage Finder will search 1,000's of deals from more than 90 different lenders to discover the best one for you. You can get a free mortgage in principle, find out how much you can borrow and see which rates you might qualify for. > Find your best mortgage deal with This is Money and L&C Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage. Getting a mortgage in different situations: First-time buyers, home movers and more Here's an overview of getting a mortgage in different circumstances. A great way to find your best deal is by comparing mortgages. How to get a mortgage as a first-time buyer First time buyers can find it difficult to save for a deposit and their options are often restricted by what lenders are willing to let them borrow. First time buyers should look at these options when getting a mortgage: Lifetime Isa: this helps you save for a deposit quicker. You can put up to £4,000 a year into the account and the Government tops your contributions up by 25 per cent. Keep in mind you can only use the money to buy your first home or for retirement – you'll pay a penalty when withdrawing for other reasons. You will also pay a penalty if you use it to buy a home that costs more than £450,000. You can only open an account if you're under 40 and you must hold it for at least 12 months before you can use the funds to buy a home. Low-deposit mortgages: typically first time buyers need a deposit of at least 10 per cent but some providers now offer 5 per cent deposit mortgages. Products like this usually have higher interest rates and there's risk involved with borrowing a larger amount – for example, the value of your property could drop below the value of your mortgage. This puts you in negative equity, meaning your property would be worth less than what you owe. > What you need to know about getting a mortgage as a first time buyer How to get a mortgage as a home mover Your options are more complicated when you're moving home. You can sometimes choose to 'port' your existing mortgage to a new property. This allows you to keep your current deal, but not all mortgages can be transferred like this. Your available options will depend on whether your new home is cheaper or more expensive than your current one. For example, lenders can be reluctant to port a mortgage if you need to borrow more when upsizing. Otherwise, you can settle your existing mortgage and take out a new one. This can be beneficial if there are more competitive mortgage deals available, but you should take early repayment charges into account. These are likely to be due when exiting your current mortgage before the end of the term. > Can you afford a bigger home? What upsizers need to know How to get a mortgage when self-employed The self-employed need to give mortgage providers more proof of their income than employed workers, who usually just need to provide their last three payslips. In addition to documents such as your photo ID, utility bills, evidence of deposit and bank statements, the self-employed should be prepared to give: certified accounts of two or more years from a qualified accountant form SA302 from your tax return documents that support the information about your income in form SA302 These requirements can make it more difficult for the self-employed to get a mortgage, especially those who are newly self-employed. But the mortgage application process is the same whether you're employed or self-employed. There aren't specific self-employed residential mortgages for those who run their own business. A mortgage adviser can talk to you in more detail about getting a mortgage as a self-employed person. How to get a buy-to-let mortgage Buy-to-let mortgages are different products to residential mortgages and so have different requirements and application processes. They're usually interest-only, so throughout the length of the mortgage you only make interest payments before repaying the loan in full at the end of the term. To get a buy-to-let mortgage you'll often need to: have a deposit of at least 25 per cent of the property value show how much rental income the property can receive (usually lenders want to see it can earn at least 125 per cent of what you pay on your mortgage each year) own a property already give evidence of earnings outside of rental income be under the maximum age requirement (for many lenders this is 75) If you're interested in a buy-to-let mortgage, the rules can be complicated, so it helps to have an adviser explain everything for you. > How to invest in buy-to-let property – and other buy-to-let tips
Daily Mail
22-05-2025
- Business
- Daily Mail
Landlord mortgage rates plummet with HSBC, NatWest and TMW making cuts
Landlords are benefiting from a spate of mortgage rate cuts, with brokers suggesting now could be a good time to lock in a new deal. This week, HSBC cut its market-leading buy-to-let mortgage rates even further. The bank lowered deals by up to 0.25 percentage points, leaving landlords buying or remortgaging in their own name with some tantalising options. Its lowest buy-to-let rate for someone remortgaging at 60 per cent loan-to-value is now 3.74 per cent with a £3,999 fee. The two-year fixed rate deal would mean a landlord remortgaging a £200,000 loan on an interest-only basis could expect to now pay £635 per month, with the fee added to the mortgage. This is a far cry from the average buy-to-let rates being cited by rates scrutineer, Moneyfacts. It says the average five-year fixed buy-to-let mortgage charges 5.29 per cent while the typical two-year fix charges 4.99 per cent. Someone with a £200,000 interest-only mortgage on the average rate could expect to pay £832 on a two-year fix and £882 on a five-year fix. HSBC is also offering buy-to-let purchase rates as low as 3.84 per cent on a five-year fix, if the investor has a 40 per cent deposit and can stomach a £3,999 fee. Those wishing to buy with a 25 per cent deposit can secure a rate of 3.94 per cent with HSBC, again with a £3,999 fee. HSBC is offering lower fee options which may work out cheaper depending on the mortgage amount required. You can work out the true cost of rates and fees using This is Money's mortgage calculator. Another lender to cut rates recently is NatWest. It is now offering a 4.1 per cent rate with a £995 fee for landlords buying with a 40 per cent deposit. For those buying with a 25 per cent deposit, it is offering 4.33 per cent with a £995 fee. Aaron Strutt, of mortgage broker of Trinity Financial, said: 'Mortgage lenders have been busy lowering their buy-to-let rates for quite a while now as they try to tempt landlords to take their deals. 'There are lots of high fee and low rate products designed to help landlords either get sufficiently large mortgages, or ease their cashflow when they remortgage. 'We are still arranging a fair few buy to let mortgages, often for landlords buying in the north of England or through a limited company. 'There are a lot of remortgages coming up as well and landlords are clearly keen to get the cheapest possible rates. 'This often means they switch to a new lender because there is so much competition in the market.' Low rate, high fee mortgages gain popularity The Mortgage Works (TMW), which is the buy-to-let lending arm of Nationwide Building Society, also lowered its buy-to-let rates last week. It is now offering a 2.79 per cent two-year fix with a fee equal to 3 per cent of the loan, for those buying with a 35 per cent deposit. On a £200,000 interest-only mortgage that would work out at £468 a month with a £6,000 fee. Adding the fee to the mortgage would equate to £480 a month. 'This is a great product for landlords needing to remortgage and avoid a repayment shock, even though it has a chunky fee,' said Strutt. 'One of our clients just took a similar low-rate and high-fee buy-to-let deal because she had equity in her buy-to-let property and used the rent to supplement her income. 'This product isn't for everyone, and the fee is high, but the headline rate is ridiculously low, which certainly helps many landlords who want to maintain their cash flow. 'The rate is equivalent to 4.29 per cent with the fees included.' This low fee and high rate combination appears to be becoming more widespread. One lender, Capital Home Loans, has a 2.35 per cent fixed rate deal with a 7 per cent fee. But most lenders offer the choice between a 'high fee and low rate' or a 'no fee and higher rate' alternative. For example, buy-to-let lender BM Solutions has a 4.32 per cent two-year fixed rate with no fees at 50 per cent loan-to-value and a 2.93 per cent buy-to-let rate at 50 per cent loan-to-value with a 3 per cent product fee. 'Lenders have been constantly lowering their buy-to-let rates to try and attract landlords and we are now at the stage where rates are often cheaper than the residential rates,' added Strutt. 'Historically, buy-to-let rates have always been higher than the residential deals, but these sub-3 per cent products show how keen the lenders are to issue more mortgages to landlords. 'Many of the high fee and low rate buy-to-let mortgages have been designed to help landlords access larger loans. 'In many cases rental properties do not generate enough rent for landlords to access the loan sizes they need to buy or remortgage, especially when capital raising.' Best mortgage rates and how to find them Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit. You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes. If you're ready to find your next mortgage, why not use This is Money and L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
