Repossessions reach lowest rate on record
The number of repossessions in the first quarter of 2016 was 2100 – this is the lowest on record, according to the council of mortgage lenders. Brian Murphy, the head of lending at Mortgage Advice Bureau, stated ‘It’s really encouraging to see that repossessions are consistently decreasing. Ultimately, lenders want homeowners to stay in their properties, and repossession is very much seen as a last resort. Hopefully today’s figures provide consumers with reassurance that, providing they talk to their lenders as soon as they realise they may have an issue with their mortgage payments, in the majority of cases a solution can be found to enable them to keep their property’.
The ins and outs of stamp duty
You must pay for stamp duty land tax (SDLT) if you buy a property or land over a certain price in the UK. The government recently changed the way SDLT worked, away from the so called ‘slab’ system in 2014. Previously under this ‘slab’ system buyers would have to pay a single rate on the entire property price. However, under the now reformed system, buyers only have to pay the relevant amount of tax on the part of the property price that is within each tax band. So you don’t pay any SDLT on the first £125,000, but then pay 2% on £125,000-£250,000, and then 5% on £250,000-£925,000. Over £925,000 you then pay 10% and on a property over £1.5 Million you pay 12%. If buying a second residential home, BTL, or holiday home there is an additional 3% rate on top of the sliding scale.
The re-introduction of the 100% mortgage
You’ll have heard of the 100% mortgage, but is it all it’s made out to be? Unsurprisingly, there is a catch. Whilst the buyers themselves may not need a deposit, a ‘helper’ of the buyer must put 10% of the purchase price into a savings account with that particular lender. It has been claimed this helps all parties involved. The lender gets new mortgage customers, the buyer gets their property, and the ‘helper’ receives interest on what effectively is a savings account.
Access to a 100% mortgage could also be seen as a lenders ‘wager’ that house prices will increase by 10% within the next few years, as they are essentially guaranteeing that there will be enough equity in the property within three years to pay ‘helpers’ back.
Do you know your mortgage interest rate?
A recent survey by YouGov, on behalf of digital mortgage broker Habito, found that 33% of participants did not know what interest rate their mortgage was. A further 5% did not know who their mortgage lender was, and 9% were unaware of how long their contract was for. Habito released a statement regarding this survey which said, ‘Our research exposed a widespread lack of knowledge among homeowners over the basic details of their mortgage; this is potentially caused by the complexity of the process.’
We believe it is important to use a trusted specialist when applying for yours; ideally one who understands and has access to the whole market.
Our new in-house mortgage and protection specialist, Stefan Olingschlaeger boasts over sixteen years’ experience in this sector and has access across the whole market. If you would like a full review of your mortgage or simply a quick chat to see what your options are, please contact [email protected]. Alternatively give our Hove office a call on 01273 208813. An initial meeting is held at our cost and with no commitment.
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Your home may be repossessed if you do not keep up repayments on your mortgage.
