How Does a Mortgage Work?

Let’s take things back to basics. Here is a step by step guide to the mortgage process.

But the thing is, there is more than one type of mortgage. In this blog, we’re going to go through different types of mortgages. As well as guide you through how a mortgage works. Here are some examples of different mortgage options on the market.

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What is a Mortgage?

A mortgage is a loan you take out to help you buy a property or land. For most lenders, you will have to put down a minimum of a 5% deposit and the rest of the money you need will form the loan. Typically, most mortgages are taken out for a period of 25 years (Some mortgages may have longer or shorter terms) and the mortgage loan is secured against the value of your property.

You will pay back this loan monthly over an agreed period of time. You will also pay interest on the amount you have borrowed alongside your monthly payments. This is either a fixed interest rate or a variable rate of interest. Fixed interest rates are unchangeable payments you agree to. Whereas variable interest rates will fluctuate depending on the current interest rate set by the lender.

Affordability

The interest rate of your mortgage is something you have to consider when planning your monthly payments. It’s important that the mortgage applied for is affordable and Lenders have strict criteria concerning affordability.

 With affordability being a key consideration it is important that you work out your outgoings. Include financial commitments such as HP, loans or credit card bills, tax, food bills, and household bills. These are all things your lender will consider when calculating your affordability when you apply for a mortgage. Mortgage lenders require proof of your monthly income and specific expenditure information. As well as if you have any debts to repay.

happy couple signing for a mortgage


Mortgage Interest Rates

Typical interest rates are the lender’s variable rate (often known as the standard variable rate), fixed rates, tracker rates and discounted rates.

Variable-rate mortgages. A variable-rate is set by the individual lender. As the name suggests, with a variable rate mortgage your interest rate and mortgage payment could go up or down from month to month. If you choose a variable interest rate, this can be beneficial if interest rates drop.

Fixed-rate mortgages set the interest rate at a fixed amount for a period of time. This is normally a period of 2 to 5 years, however, there are longer-term fixed rates around sometimes up to 10 years in term. The advantage of the fixed-rate is a known monthly payment, however, if interest rates drop below your rate, then you will be potentially paying more than you need to.

Tracker rates, follow the Bank of England base rate. The rate could be described as “base rate +2%, this means that your interest rate would be the Bank of England base rate +2%. However, if the Bank of England base rate changes, the rate you pay will change, up or down.

Discounted mortgages follow the lender’s standard variable layer rate. The lender sets the variable rate and typically when the Bank of England changes the base rate, up or down. Then the variable-rate will generally follow suit plus or minus a margin for the lender. This again means that the monthly payment can change up to or down.

With most mortgage deals, all your rate will revert to the lender’s variable rate when your initial scheme comes to an end. So, as an example, if you have opted for a two-year fixed rate, at the end of the 2 year period your mortgage would revert to a variable rate.

How Mortgages Work When Moving Home

Depending on your mortgage deal, you may be able to transfer an existing mortgage loan onto your new property. This will depend on the value of your current property and your new house. You may be asked to take out more money to afford your new property. But, you may also be able to pay off your existing mortgage by scaling down in home size.

Types of Mortgages

There are three main types of mortgages:

● First-Time Buyer – This a mortgage specific for people taking their first step onto the property ladder. If you’re buying your first home, this is the mortgage that you will benefit most from.

●     Remortgage – Remortgaging can be a great way to save money and find a better interest rate for a similar mortgage type where there is no additional borrowing. It is always important to consult a mortgage advisor when you consider remortgaging. This way you ensure you find the best deal for you based on your needs, circumstances and preferences. You may have to pay an early repayment charge to your existing lending if you remortgage.

● Home-Mover – This type of mortgage helps you to move from one property to another. For people who have already brought their first home.

Whenever considering which mortgage is right for you and your circumstances, it is vital to consult a mortgage advisor. For more information from our mortgage experts, get in touch with our team today:

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Give us a call on 01604 300033 to enquire about all the mortgage options available to you. If you have any questions, please contact us to discuss your options – https://www.mymortgageexperts.co.uk/request-a-callback/

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“A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.”

Moving house during the coronavirus outbreak

Moving house during this time will require new processes and adaptations to ensure that everyone is safe and the risk of spreading coronavirus reduced as best as possible. Here is our quick step guide on how to stay safe and protect others when moving during this time.

To view the full guide, please click the image below

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Coronavirus – The Impact on Mortgages and Property Purchases

With the impact of Coronavirus affecting almost every industry, mortgage applications are no exception. Mortgage providers are still working hard to help applicants, but naturally there will be some disruption.

This guidance document aims to provide some additional information on
the impact the current situation has on any existing mortgages, as well as
highlighting some key considerations if you are in the process of applying
for a mortgage.

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Interest Rates

The Bank of England base rate has dropped to the lowest in its history,
which means that mortgage interest rates will also reduce. If you have
a tracker rate mortgage, then the rate you are charged will also reduce
because the interest rate you are charged tracks the Bank of England base
rate. In this scenario, your mortgage provider will be writing to you in due
course, to confirm how this will affect your monthly mortgage payment.
Even if your mortgage is not deemed a ‘tracker’ mortgage, you may be
on a variable deal. Although variable deals do not specifically track a base
rate, variable deal interest rates are set by your mortgage provider, and
can fluctuate in line with market conditions.
If your mortgage is on a Standard Mortgage Rate (SMR) or Standard
Variable Rate (SVR) then it is likely that your lender may reduce your
interest rate moving forward and will write to you shortly to confirm
how this will affect your monthly mortgage payment.

Mortgage Payment Holidays

In line with the UK Government announcements to assist mortgage
borrowers, mortgage providers are offering payment holidays in
an effort to assist those who have been financially impacted by the
Coronavirus outbreak. If you are facing financial difficulty and wish to
apply for a payment holiday, most mortgage providers have requested
borrowers contact them directly, as opposed to going via a broker.

The Financial Conduct Authority (FCA) wants to reassure that if you
request a payment holiday, there will be no impact on your credit
score and that companies should not be investigating the reason
for requesting the payment holiday. This guidance is specific to
mortgage borrowing, therefore if you are concerned about financial
difficulty linked to any other borrowing, e.g. credit cards or loans, it is
recommended that you contact your credit provider to discuss how
they can help you at this time. You can also contact the Money Advice
Service at www.moneyadviceservice.org.uk, which provides free and
impartial support to anyone concerned about financial difficulty.

The method to apply for a mortgage payment holiday varies
from lender to lender. Owing to the high volume of calls, it is
recommended that you check your mortgage provider’s website for
further instruction before telephoning. To avoid high telephone call
volumes, some mortgage providers have set up an online application
form for customers who wish to request a payment holiday.

If you are in financial difficulty, it is important you do not simply
cancel your monthly mortgage direct debit without contacting your
mortgage provider as this could have a detrimental impact on your
future credit history.

One thing that is key to bear in mind is to consider when your current
mortgage deal may end. If your mortgage deal is ending soon, it is
important to speak to your mortgage provider before requesting
a payment holiday as some mortgage lenders will not allow you to
review your deal whilst you are in a payment holiday period. This is
particularly important to consider, as once your deal ends it is likely
your interest rate will automatically revert to a Standard Mortgage
Rate (SMR) or Standard Variable Rate (SVR). These SMR and SVR
interest rates are likely to be higher, and if you are unable to review
your deal until the end of your payment holiday i.e. in 3 months, the
interest you will be charged will be a higher amount, and you may end
up paying more overall.

Mortgage Protection Payment Insurance

In addition to mortgage payment holidays, it is worth checking if
you hold Mortgage Payment Protection Insurance (MPPI). This is an
insurance policy which provides monetary support to pay your mortgage
if you are off work for a long period of time, as a result of illness, or in
some circumstances, through unemployment.
These types of policies will typically require you to be off work for at least
30 days before your claim can be submitted, but it’s worth checking to
confirm if you have cover and what your cover provides.

Remortgaging or Switching Your Deal

As mortgage interest rates have dropped, remortgaging your home to
a new provider could be a good opportunity to save money. It is worth
noting however that some mortgage providers are now limiting the
amount a customer can borrow and in some cases, not taking new
mortgage business at all in the current climate.
This does not mean you cannot still switch your mortgage deal with your
current lender to a more competitive interest rate. For borrowers who
are not currently locked into a deal, the option of a ‘product transfer’,
where you exit your current deal but remain with your existing provider
on a lower interest rate, could save you money. Please contact your
mortgage broker to discuss this further.

Moving Home

If you are thinking about buying or moving home, it is still possible to
obtain a mortgage, however timeframes may be significantly impacted.
The simple logistics of property viewings and valuations are severely
limited at present owing to social distancing obligations. Whilst this may
mean certain re-mortgages will still be possible, it could potentially have
a detrimental effect on purchases, as those involved in the process will
understandably want a property to be sufficiently valued, especially if
home improvements have been done.

Clarification from the Government about whether home purchases and
home moves should continue at the current time have said:

• Home buyers and renters should, as far as possible, delay moving to a
new house while emergency measures are in place to fight coronavirus.
• If moving is unavoidable for contractual reasons and the buyers and
vendors are unable to reach an agreement to delay, people must
follow advice on social distancing to minimise the spread of the virus.
• Anyone with symptoms, self-isolating or shielding from the virus,
should follow medical advice and not move house for the time being.

I am awaiting a valuation for a property I am wanting to buy, how will this be affected?

Some lenders are able to do desktop valuations on properties, as
opposed to physically going out to view them. If this is not possible, in
some instances larger estate agencies are offering video valuations to
mortgage providers to help avoid delay with mortgage applications.
This is not an option for all companies or all mortgage transaction
types. Some providers have postponed physical valuations until
further notice, however all other work pertaining to your mortgage
will be going on in the background to help avoid any further delay.
Once it is deemed safe for valuers to proceed with physical valuations
and visit the property, then your mortgage lender will be able to
assess and progress your application accordingly.

I have instructed a HomeBuyers Report on the property I am purchasing, how will this
be affected?

In line with UK Government guidance, it is likely all homebuyers
valuations will be suspended, with the situation assessed again at a
future date. Any booked surveys will be cancelled and then rescheduled
following the outcome of the latest Government advice at that point.

I want to apply for a further advance on my mortgage to help with reduced income at this
time, can I do this?

Some mortgage lenders are not currently accepting any new applications
at this time. This is to help ease any backlog of ongoing applications,
and simply to protect themselves and borrowers at this uncertain
time. However should your mortgage provider still be accepting new
applications, and subject to their satisfactory assessment of your income,
then applications for further borrowing may be possible.

Please be aware that should your lender require an up-to-date physical
valuation of your property, then the application may be subject to the
delays mentioned above, until such time valuers are able to gain access
to the property in line with UK Government advice.

I work in an industry severely affected by coronavirus, will my application be declined?

At this moment there are no widespread limitations from mortgage
providers restricting the occupations of customers they will lend to.
There are a few instances of mortgage lenders who will currently not
consider mortgage applications from customers who work in travel,
retail, hospitality and entertainment. However this is an exception, and
not the generic stance across the board.

I have already submitted my application, will I receive the interest rate deal I applied for?

Once your mortgage lender has received your application they should
honour the deal. Even if that interest rate deal is now no longer
available, you will have reserved the product and the rate at the time
your application was submitted.

A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME OR PROPERTY. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP THE REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Corona Virus / Covid19 Update (Mortgage)

We’re all facing the difficult challenge of responding to the coronavirus (COVID-19) and our hearts and thoughts go out to the people who have been affected by this. Our primary aim is to support our customers at the times when they most need it, and this is unchanged. In this time of uncertainty, we want to provide you with as much information as we can. We’ll continue to update you on our approach as we continue to monitor this difficult, evolving situation.

Please note that we are working remotely and due both ourselves and Lenders having been impacted by the virus our speed of service may be affected, please be patient in this unprecedented time.

To assist with any questions you may have, please find information below regarding UK lenders and information available regarding payment holidays and the Corona Virus.

Should you require further help or assistance please contact us for assistance at mortgage-admin@mymortgageexperts.co.uk

Accord We can offer a variety of solutions to customers who are worried about meeting their mortgage repayments, including payment holidays. We do need to make sure that solution we offer is right for the individual customer’s circumstances, so if you are having difficulties, please contact us on 0800 138 2403.
Al Rayan Bank We recognise that some of our customers could experience financial difficulties in the coming weeks due to coronavirus-related disruption. We will work with each customer on an individual basis to assess what help is available to help them manage their finances. We would encourage any customers who think they may be affected to contact us as soon as possible. Existing mortgage customers can contact Al Rayan on: 0808 231 2906
Aldermore We are offering customers the option to reduce or defer mortgages payments for up to 3 months. This means you can pay a lower payment or take a break from payments. You’ll need to make up the payments later in your mortgage term and we’ll work with you to find the best way to do this. There won’t be any impact on your credit rating during the period. Some eligibility criteria will apply. We also have other options available, including making overpayments. If you’re able to make an overpayment in the short term you could reduce your monthly payments later on. There are some account terms and conditions and eligibility criteria that apply to this. We can discuss this in more detail if it’s an option for you. Existing mortgage customers can contact Aldermore on: 0333 321 1000 (selecting option 2, option 1, then option 4) or mortgage.servicing@aldermore.co.uk.
Bank of Ireland Bank of Ireland UK are following UK Finance guidelines and will be offering payment breaks up to 3 months to those that need it. We’ll provide this option to your customers that have residential and Buy to Let Mortgages. If you would like to apply for a payment break, please fill in and submit the form at https://www.bankofirelanduk.com/mortgages/existing-customer/coronavirus-support/: However, if your payment is due within the next 7 days and you need immediate financial support, please give us a call on 0800 1699722. We are experiencing high call volumes at the moment though, so it may take a while to get to you.
Barclays As a responsible lender, it is crucial that we offer the right support to our customers at this time. We have therefore decided to offer customers who are potentially facing financial difficulty, a number of options to support them through this time. These include Repayment holidays for up to 90 days. We encourage customers to get in contact with us at the earliest opportunity to discuss the most suitable solution. Existing mortgage customer should contact Barclays on: 0800 022 4022
Bath Building Society At the moment we are speaking to customers on a cases by case basis. Customers should contact us directly if they are worried about their circumstances. Existing mortgage customers should contact Bath Building Society on: 01225 475719
Bluestone Mortgages In accordance with government policy, Bluestone Mortgages will offer a payment holiday of up to three months for eligible customers who are affected by Covid-19, either directly or indirectly. This accommodation is available from 19 March 2020 until 30 April 2020, at which time it will be reviewed. Customers will also be able to continue to make regular or ad-hoc payments to their mortgage during the payment holiday, to allow them to lessen the impact of the increase to the mortgage balance if they are able to. Existing mortgage customers can contact Bluestone on: 0800 368 1833
Buckinghamshire Building Society The Society is committed to supporting members in financial hardship through these difficult times and will absolutely commit to offering the 3 month payment holiday facility. We are currently looking at how best we implement this operationally and how we communicate with our members. We will be logging all requests and will come back to the member with confirmation as soon as possible. Existing mortgage customers should contact Buckinghamshire Building Society on: 01494 879517
Cambridge Building Society We know Coronavirus is leaving some people unsure of whether they’re going to be able to rely on their income. If you’re concerned about whether you’re able to make your mortgage payments please contact us as soon as possible, we have a supportive team who can help you. Contact the team on 0345 601 3344 or take a look at our payment difficulties guide.
Chorley Building Society Borrowers who may be experiencing mortgage payment difficulties as a result of Coronavirus should contact us at the earliest opportunity to discuss the range of payment options available. This can be done by completing this form and emailing to mortgages@chorleybs.co.uk. Upon receipt of this the Society will confirm next steps to them.If required, borrowers will be able to take a 3 month payment holiday. During this period, if they wish they will be able to make a nominal payment to their account or the equivalent of interest only by standing order.If the above arrangements are put into place this will not be recorded on the customer’s credit file.However, in the scenario that a customer doesn’t contact us and misses payments or has payment shortfalls these will continue to be recorded with the credit reference agencies. Existing mortgage customers can contact Chorley on: 01257 235001
Clydesdale Bank If you’ve been affected by coronavirus (due to illness or self-isolation) and are worried about what this might mean for you financially, there are things we can do to help. Please get in touch with us as soon as possible so we can discuss your individual circumstances and find ways in which we can support you. The sooner you contact us, the more we can do. Existing mortgage customers can contact Clydesdale on: 0800 121 4203
Coventry Customers who are up to date with their mortgage payments and not currently in financial difficulty can request a 3 month payment holiday if they need help as a result of COVID 19. Customers will self-certify, disclosing that they are impacted by Coronavirus, we will not be asking for any further validation of this. Providing a payment holiday will not attract arrears or adverse Credit data. Once the payment holiday is over, we will look at options to recalculate deferred payments but will contact the client about this. These deferred payments mean that interest will not be collected on their balance (which is not reducing either). Once recalculated, their payment will increase as the balance + interest on the balance not collected during the holiday will be rescheduled over a slightly shorter term. This applies to Residential and Buy to let lending. Contact number for clients affected – 0800 121 8899
Danske Bank We know that you may be worried about how the current situation could affect you and your money. We’re here to help and have put in place some support measures and information to help ease any concerns. Existing mortgage customers can contact Danske bank on: 0345 6002 882
Darlington Yes we will support the 3 month payment holiday with each request being considered on a case by case basis. Anyone concerned will need to contact our financial support team as soon as they can by emailing customersupport@darlington.co.uk, titling their email “Payment Holiday” and quoting their name and 8 digit account number in the email. Alternatively, Existing mortgage customers should contact Darlington on: 01325 366366
Digital Mortgages by Atom Residential Please be assured that we’ll do everything we can to support you if you are affected by COVID-19 – talk to us via the app, or call us on 0333 399 0050.
Dudley Building Society We recognise that these are unprecedented and difficult times for our borrowers. For any mortgage members concerned about meeting their mortgage repayments at this time please contact our Mortgage Servicing Team at the earliest possible opportunity to discuss what options are available to you. Existing mortgage customers can contact Dudley Building Society on: 01384 231414
Family Building Society Customers can call our Mortgage Service Team on 03330 140 146 to discuss all options.
Foundation Home Loans We will continue to follow existing regulations and processes and will assess each scenario on a case by case basis. Please call us on 0344 770 8030 if you have any concerns over making payments.
Furness Building Society We will be offering residential mortgage customers the opportunity of a three month mortgage payment holiday. The customer would need to call 0800 015 8026 and we would need to capture the reasons why they are looking to take up this offer to fully understand this is the best solution for them. Customers would need to be aware that interest/fees will still accumulate on the mortgage and at the end of the three month holiday payment the monthly mortgage payments will increase as a result of the three month payment holiday. This will not have an adverse effect on their credit report.
Gatehouse Bank In the current circumstances we remain focused on our customers. We understand that the Coronavirus risk may result in our customers needing additional support and we will look to be as responsive as possible. Specifically, for homebuyers and landlords facing financial difficulty, we will help assess their needs to find a suitable payment strategy, which will include providing a payment holiday, if necessary. In addition, savers facing hardship will be able to access funds deposited in our notice or fixed term accounts at short notice and with no penalty. The above is very much in line with the Bank’s existing policies to support customers experiencing issues. We would encourage any customer that is facing financial difficulties to contact us to discuss how we can support them. Existing mortgage customers should contact Gatehouse Bank on: 020 7070 6984 or 020 7070 6981
Halifax As the impact of coronavirus is felt across the UK, you may be worried about how it could affect you and your home. Your peace of mind is still our top priority, so we’ve created some extra ways to help, if you need it. If the coronavirus has affected your income, you may wish to take a mortgage payment holiday. You can ask to take a break of up to a maximum of three months by filling out our online form: https://www.halifax.co.uk/mortgages/existing-customers/payment-holidays/ Existing mortgage customers can contact The Halifax on: 0345 850 3705
Hanley Economic Building Society We will work with every borrower during these difficult times to support them through their mortgage payments. We have a range of forbearance measures including interest only and payment holidays, which will be discussed on a case by case basis with each borrower. As always we urge borrowers to contact us as soon as possible in the event of difficulty to ensure the best solution is put in place. Existing mortgage customers should contact Hanley Economic on: 01782 255000
Harpenden BS We encourage you to contact us and we will offer as much support as we can, and provide payment relief where possible. You can contact us by calling our Mortgage team on 01582 463133.
Hinckley & Rugby We expect the COVID-19 disruption to continue for some time and we are aware that our borrowers may be financially impacted. If you are experiencing or foresee any financial difficulties, our advice is to get in touch with us as soon as possible using our website. We will look at every customer’s situation on an individual basis to determine what solutions we can offer and will allow a 3 month payment holiday for anyone who is affected by COVID-19 as per the recent UK Finance guidelines. Please visit the Society’s website using this link to speak to us. https://www.hrbs.co.uk/contact/ Existing mortgage customers can contact H&R on: 0800 434 6343
Hodge For existing customers, if you are impacted financially by Coronavirus (COVID-19) and have any concerns, please contact us and we will seek to offer help and advice with any queries you may have. Existing mortgage customers can contact Hodge on: 0800 731 4076
HSBC Customers should contact us directly if they are worried about their circumstances. Existing mortgage customers should contact HSBC on: 03457 404 40411
Ipswich Building Society Affected borrowers who are up to date with their mortgage payments and seeking a mortgage payment holiday are asked to complete and return our self-certification request form by post or by email to paymentqueries@ibs.co.uk (we suggest using secure email where possible). Agreed arrangements will not be reported to credit reference agencies. Please note borrowers who are already in a payment shortfall or arrears will need to contact us in the first instance to discuss the options available. To get in touch with our mortgage payments team please call us on 0330 123 0773 or email us at paymentqueries@ibs.co.uk.
Kensington The situation is evolving so quickly that we think it is important to maintain regular contact with our customers, which is why we would like to reassess your situation each month. A payment holiday is a way to defer your monthly instalment, but it will still be payable in the future and your account will still accrue interest; which means a three-month payment holiday may not be the best option for everyone. Existing mortgage customers can contact Kensington on: 020 3827 8940
Kent Reliance We have agreed to support customers who are facing difficulties, as a direct result of COVID-19. Customers will need to contact Kent Reliance to discuss on what basis they are experiencing difficulties. We will then be able to explain the process and impact of a potential payment holiday, agreeing the right course of action to ensure we are working closely with our customers. Existing mortgage customers can contact Kent Reliance on: 0345 671 7274
Leeds Building Society We have a number of options that can help anyone experiencing financial difficulties and will work with borrowers to agree a solution that meets their circumstances. We assess each case individually and you can find more information and contact numbers in the ‘Repayment difficulties’ guide our website: www.leedsbuildingsociety.co.uk/mortgages/payment-difficulties/ Existing mortgage customers can contact Leeds Building Society on: 0345 050 5075
Leek United Building Society F you have been financially impacted by Coronavirus and you’re worried about how you’re going to pay your mortgage, please contact us. We’re here to help with a range of available options for you. You may wish to: Agree a payment holiday of up to three months as outlined in the Chancellor’s address on Tuesday, 17 March 2020. Agree a reduction on your monthly payments for three months. Extend the term of your mortgage to reduce the monthly payments. Change the way you make your payment or the date of your direct debit. Together we can review your individual circumstances to find a solution that is right for you. Please get in touch with us to discuss any concerns you may have so we can work to find the best solution for you at this difficult time. Call us 0800 783 0847 Email us at leeksupport@leekunited.co.uk
Mansfield Building Society The Society understands that some of its borrowers may find themselves in financial difficulty as a result of issues associated with Coronavirus. We would encourage any borrower who is experiencing difficulties to contact us as soon as possible. To support borrowing members, whether they are impacted directly or indirectly by Coronavirus, Mansfield Building Society like many other mortgage lenders will consider offering a payment holiday for up to 3 months to those members who are up to date with their mortgage payments and are experiencing issues with their finances as a result of Coronavirus. This may not be the right solution for you and so any member who is concerned about their current financial situation should get in touch with us at the earliest possible opportunity to discuss what options may be suitable for them. The Society’s friendly and experienced staff will look to understand each customer’s individual circumstances on a case by case basis to help you reach the most appropriate solution. Please contact us on 0800 092 8564 or 01623 676344 for advice or support, or by e-mail to mortgages@mansfieldbs.co.uk.
Market Harborough Building Society Market Harborough Building Society has Mortgage Specialists on hand to offer assistance if customers are being affected by COVID-19 (Coronavirus) and are concerned about making forthcoming mortgage payments. The Society can offer various potential solutions and encourage customers to contact us directly and discuss options available to them based on their individual circumstances. Existing mortgage customers can contact MHBS on: 01858 412610
Masthaven We recognise that the coronavirus outbreak will cause significant financial difficulty for many people. Existing customers should get in touch and we can explain the process. Existing mortgage customers can contact Masthaven on: 0207 036 2012
Melton Building Society We understand that some customers may be worried about the effect that contracting the Coronavirus (COVID-19) could have on their finances, for example due to a drop in income as a result of contracting the virus or because of the measures imposed to stop it spreading. If you have any concerns about how this could affect you and your mortgage, please click here to read the leaflet produced by the Building Societies Association and National Debtline or please get in touch on 01664 414141.
Metro Bank In line with the announcement from UK Finance, customers with a Metro Bank mortgage will be able to request a three month repayment holiday where they are experiencing issues with their finances as a result of coronavirus. Under usual circumstances we would assess the customer’s financial situation and ask them to provide information so that we can consider what forbearance options may be the most suitable. We recognise that these are exceptional circumstances and we want to support our customers, so we are not asking them to provide proof in order for us to consider a repayment holiday. We only ask that they call us so that we can discuss their situation and how we can support them. This measure covers residential mortgages and buy-to-let mortgages for landlords whose tenants are experiencing difficulty due to coronavirus. Customer who are already in arrears may not be eligible for a payment holiday, but there are other ways that we can support them so we encourage them to get in contact. Existing mortgage customers can contact Metro bank on: 0345 319 1200
Nationwide We continue to support members affected by coronavirus on a case-by-case basis and that includes offering payments holidays where needed. These will not be registered as arrears on the credit file. To apply for the payment holiday, customers can call 08004643030 and 0800302011 or apply online at https://www.nationwide.co.uk/support/coronavirus/mortgage-payment-holiday
Natwest Customers can get information or webchat with us via natwest.com,ulsterbank.co.uk or rbs.co.uk, depending on the brand their mortgage is with. They can also get the right contact details if they wish to discuss their circumstances. Our Specialist team will assess the customer’s circumstances and if they can’t pay their mortgage due to the impacts of coronavirus, they will be eligible for a mortgage holiday. Those assessments will take place when the customer contacts us. Customers will not be considered to be in arrears during the period of an agreed mortgage payment holiday if they were up to date when the repayment holiday was entered into, and there will be no impact on their credit file. However customers credit score may be negatively affected if they miss a payment and haven’t already applied for a mortgage holiday. Where a customer is already in arrears when they approach us for additional help, we will look at what further assistance we can offer. The payment holiday period can last for up to 3 months and no further evidence will be requested following the discussion with our dedicated team. Payments to both capital and interest are suspended during the agreed period and interest will continue to accrue during the holiday period. Payments are recalculated at the end of the holiday period to repay the new balance over the remaining term. There is currently no facility for an Interest Only Switch process for customers on Capital and Interest mortgage contracts Existing mortgage customers can contact Natwest on: 0345 302 0190
NatWest International We know you may be worried about being impacted financially due to coronavirus (COVID-19), and we want to support you. We have put a range of measures in place to help support you if you’re experiencing financial difficulties as a result of the outbreak including payment holidays on Mortgages, and Loan deferral for up to three months. Please contact us for more information. Existing mortgage customers can contact Natwest International on: +44 (0) 1624 632323
Newbury Building Society We are open for business but please bear with us as we adapt to the impact of Covid19 (Coronavirus) The Society is monitoring the outbreak of Covid19 (Coronavirus) closely to ensure we are taking the necessary steps to protect our colleagues, maintain our services and support our customers. We expect the Covid19 disruption to continue for some time and although the effects should be temporary, we are aware that our borrowers may be financially impacted.  To support borrowing members, whether they are impacted directly or indirectly by the Covid-19, Newbury Building Society like many other mortgage lenders will offer a payment holiday for up to 3 months to those members who are up to date with their mortgage payments and are experiencing issues with their finances as a result of the Covid-19. There are other solutions available. Please refer to the information provided to borrowers on our website. Please bear with us Due to the impact of Covid19, our Customer Service Teams in branches and head office are experiencing higher than normal volumes of calls and transactions. We would like to thank you for your patience and will deal with enquiries as soon as we can. In these difficult times, we remain focused on providing you with the excellent service and support you have come to expect of us, and we thank you for your continued loyalty. Our Helpdesk remains open and the team is contactable to help with any mortgage cases you may have. Please continue to check www.newbury.co.uk for the latest updates. Existing mortgage customers can contact Newbury Building Society on: 01635 555 700
Newcastle Building Society In line with the package of financial support announced by the Chancellor of the Exchequer, we are committed to support customers who experience difficulty with mortgage payments as a result of coronavirus. This includes payment holidays for a minimum of three months. If you are concerned about your financial situation please get in touch with us at the earliest opportunity; we have a range of options that we can consider in order to provide the support you need. You can email: mortgage.support@newcastle.co.uk or call our helpline number on: 0345 702 3083. Lines are open from 9am to 6pm Monday to Thursday, and 9am to 5pm on Fridays.
Norton Home Loans Customers experiencing a temporary loss of income due to the Coronavirus outbreak can apply for a payment break or holiday subject to proof of change in circumstances. This will not impact customer’s credit reports and no fees will be charged although interest will still accrue. Existing mortgage customers can contact Norton Home Loans on: 01709 512513
Nottingham Building Society If you’ve been affected by Coronavirus, due to illness, self-isolation or any other factor, and are worried about future payments, there are ways we can help. Here are some of the support options available for mortgage customers; Change the way you make your payments, or the date you pay them on Agree on reduced payments for a period Arrange a new payment plan to help you through this difficult period Look to increase your mortgage term to a longer period of time (reducing your monthly payments). A mortgage holiday of up to three months, as outlined in the Chancellor’s statement on March 17th – those interested in this option should contact paymentholiday@thenottingham.com and the team will be in touch to assess your eligibility For all other payment difficulty queries, contact our Customer Support Team and they will go through your individual circumstances and discuss the best options to help. Email collections@thenottingham.com and request a call back. Existing mortgage customers can contact The Nottingham on: 0115 956 4670
Platform One of the ways we are helping is to offer customers impacted by coronavirus a mortgage payment holiday for up to 3 months. We don’t apply penalties for missed payments and a payment holiday won’t have any adverse impact on your credit status. If you need a Payment Holiday, please send us an email including the following information: Name, Postcode and house number, Lender, Length of payment holiday (up to 3 months) Please include Reason: Loss of employment, Self-employed – business impact, Reduced hours, Illness/Self Isolating, Child care reasons, Other. If you have a Co-operative Bank or Britannia mortgage, please email; britanniacollections@co-operativebank.co.uk If you have a Platform, Mortgage Agency Services or Verso mortgage, please email; opt.plymouth@wmsl.co.uk Existing mortgage customers can contact Platform on: 08000 288 288
Post Office Post Office Money are following UK Finance guidelines and will be offering mortgage payment breaks p to 3 months to those that need it. We’ll provide this option to your customers that have residential and Buy to Let Mortgages. The payment breaks offered will not affect customers’ credit files at the Credit Reference Agencies. If you would like to apply for a payment break, please fill in and submit the form at https://www.bankofirelanduk.com/mortgages/existing-customer/coronavirus-support/: However, if your payment is due within the next 7 days and you need immediate financial support, please give us a call on 0800 1699722. We are experiencing high call volumes at the moment though, so it may take a while to get to you.
Precise Mortgages As you may expect we are receiving a large number of enquiries relating to mortgage payments as a result of Covid-19. These are unprecedented times and our Collections Department is dealing with these enquiries as quickly as they can. Please bear with us; we will endeavour to respond to calls and emails as soon as possible. If you would prefer us to call you back, please email your mortgage account number to collectionsenquiries@precisemortgages.co.uk and we will contact you as soon as possible. Please only email your mortgage account number and no other personal data. Alternatively, if you do wish to call us, you can contact us on 0800 781 8558. Please note that there are a number of options available, including payment holidays. Note that in accordance with the guidance issued by the Credit Reference Agencies, the account status reported on credit files will be recorded as either ‘0’ or ‘U’. This classification seeks to preserve the borrowers credit record during the payment holiday period. Please also note that if your payment is not due within the next 5 days, please call back at a later time to allow us to deal with the customers payments who are due.
Principality We appreciate you might be concerned about the impact of coronavirus and want to reassure you that we’re here to help with any worries you might have about your savings and mortgages with us. We want to be as flexible as we can be in helping our Members and colleagues through these challenging times. Principality Building Society will consider up to a 3 month payment holiday should they be unable to make their next mortgage payment. Our priority remains the wellbeing of our Members and colleagues but in order for us to ensure we’re able to help our most vulnerable Members, please only call us if you require immediate assistance with your mortgage. Customers should contact – arrearsreferrals@principality.co.uk Existing mortgage customers can contact Principality on: 0330 333 4000
Saffron Any Saffron customers directly affected should contact the customer services team as soon as they can, in confidence, on 0800 072 1100 and select Option 2 then 2, or visit the Saffron Building Society website.
Santander We’ve launched a new online form on santander.co.uk to allow existing residential and Buy to Let customers who are impacted by coronavirus to apply for a mortgage payment holiday. This is the quickest and easiest way for a customer to apply and is currently available to customers who are not in arrears and pay by Direct Debit. Please encourage clients to apply online wherever possible – https://mortgagesignup.santander.co.uk/onlinecredential/mortgage-holiday. Alternatively, existing mortgage customers can contact Santander on: 0800 783 9738
Scottish Building Society If you are having difficulty paying your mortgage as a result of the coronavirus outbreak, please contact our mortgage team to discuss your options. You can email us at homortgages@scotbs.co.uk Existing mortgage customers can contact Scottish Building Society on: 0345 600 4085
Scottish Widows Customers should contact us directly if they are worried about their circumstances. Existing mortgage customers can contact Scottish Widows on: 0345 845 8555
Skipton If your clients with a Skipton residential mortgage are concerned about making repayments as a result of the current Coronavirus situation, we’re here to support them. We’re currently experiencing a high number of calls, which might be making it difficult for your clients to get in touch, so we’ve set up a dedicated email PaymentHolidayRequests@skipton.co.uk for customers to contact us and request a call back. Within the email please ensure your client provides their mortgage account number and the best number for us to contact them on. This means they won’t have to wait in a queue. Once a call back has been requested, we’ll be in touch as soon as we can to discuss their individual circumstances, which will include the option of providing a mortgage payment holiday of up to three-months for any residential or BTL mortgages. In the meantime, we are asking our mortgage customers to leave their Direct Debit in place if they have sufficient funds to cover their regular monthly payment. They can also make a payment by bank transfer using our bank details, which you can find on our Ways to pay your mortgage page. First and foremost, we’re here to support you and your clients, but please remember our people are also affected by the current situation, so we thank you for your patience and understanding during this unprecedented time. Existing mortgage customers can contact Skipton on: 0345 850 1711
Stafford Railway Building Society We will be speaking to credit reference agencies to ensure consistent treatment of those customers to whom a repayment holiday is made available. We recognise that these are unprecedented and difficult times for customers. This is why we are offering customers who are up to date with their mortgage payments and impacted by COVID-19 the ability to self-certify if they need help. We will commit to help customers the best way for the individual, but an automatic payment holiday may not always be the most suitable approach and may not be required by all customers. Should the customer wish, we could conduct a full assessment of their finances. It’s therefore important that customers who believe they may be impacted by COVID 19, either directly or indirectly, contact their lender at the earliest possible opportunity to discuss if the payment holiday is a suitable option for them. Existing mortgage customers can contact Stafford Railway on: 01785 223212
Swansea Building Society The Society understands that some of its members may find themselves in financial difficulty as a result of issues associated with Coronavirus. We would encourage any borrower who is experiencing difficulties to contact us as soon as possible. The Society’s friendly and experienced staff will look to understand each customer’s situation on a case by case basis to help you reach the best solution based on your individual circumstances. Please contact us on 01792 739110 for advice or support.
Teachers Building Society Any customer experiencing financial difficulties should contact the Society on 0800 783 2367 to discuss both their personal situation and the options that may be available to them.
The Mortgage Lender Yes. We are dealing with a high number of calls at the moment. To help those most in need, we are asking that you only call us if you are having trouble making your next mortgage payment. We can discuss suitable options including a payment holiday on your mortgage, although this will result in you paying back more interest on your mortgage overall. The number to talk to us on is: 0344 257 0427
Tipton & Coseley Yes, self-certification of their need for help (payment holiday) will be accepted as long as the customer is currently up to date with their mortgage payments. Customers who prefer to go through a proper assessment to find a more suitable solution such as reduced monthly payments or interest only, are encouraged to contact us directly to consider their situation on an individual basis. Existing mortgage customers can contact The Tipton on: 0121 557 2551
Together Money Yes, as per government policy we will grant a 3 month payment holiday to anyone wanting to self-certify that they are impacted by COVID-19. No additional evidence or financial statement are required. Existing mortgage customers can contact Together on: 0333 455 2305
TSB If you are able to maintain your mortgage payments, you should continue to do so. However, if you have been financially impacted by COVID19 and this is impacting your ability to meet your monthly mortgage payment, then you are able to request a payment holiday up to a maximum of 3 months as long as you are currently up to date with your mortgage repayments without any impact on your credit file. If you are currently in arrears, please contact our financial difficulty team on 0345 835 3374 (open 8am – 7.30pm weekdays and 8am – 12.30pm Saturday), who will be able to support you with alternative treatments. If you choose to take a payment holiday you will need to be aware that the interest usually charged within your monthly payments will be added to the balance of the mortgage. Your account will be re-calculated at the end of the instalment break and written confirmation will be sent out approximately 2 weeks before your payments are due to restart. The payment will be calculated at that time using your higher balance and spread throughout the remaining term. Switching to a new mortgage deal is not permitted during a payment holiday.
Ulster Bank We understand that these are uncertain times, and many of you may be worried. We want to assure you that looking after our customers and colleagues is our number one priority, and we are closely following advice from government and the relevant authorities to make sure that we are prepared. If you’re concerned about being affected financially or being unable to get to the bank due to coronavirus (COVID-19), we’re here to help and can offer payment holidays on Mortgages, and Loan deferral for up to three months. If your income has been impacted and you know you are not going to be able to make your monthly mortgage payments, we can offer our existing mortgage customers a 3 month payment holiday. We need you to send an email to us at mortgage-paymentholiday@ulsterbank.com providing the key information we need to review and process your request. Please ensure you include all the following information within your email: All mortgage account numbers for which you are seeking a payment holiday Your full name (including any middle names) Property address details for the mortgage number(s) provided Please confirm if all your mortgage payments are up to date How many months payment holiday are you looking for (1, 2 or 3) From the start of which month would you like the payment holiday to commence Alternatively, existing mortgage customers can request a call back on: https://digital.ulsterbank.co.uk/personal/mortgages/manage-your-ulster-bank-mortgage.html
Vida Homeloans We recognise these are worrying times for many people and we are committed to supporting our customers as much as we possibly can. Belmont Green has a well-established forbearance policy in place to assist vulnerable customers. We will use this policy to support customers affected by the epidemic to ensure a fair customer outcome in each case. We will consider each case on its individual merits to ensure we get the best tailored outcome for each customer. We will carry out a full assessment before considering the appropriate measures needed. We can reassure our customers we will be doing all we can to ensure we achieve a fair outcome for them, based on their own individual situation. Existing mortgage customers can contact Vida on: 0344 892 0155
Virgin Money Https://uk.virginmoney.com/virgin/mortgage-payment-holiday/ – Please complete this form if you are experiencing financial difficulties due to the current coronavirus situation, and would like to arrange a mortgage payment holiday. We’ll take a look at your request and come back to you over the next week to confirm when your mortgage payment holiday will start. Our contact centres are extremely busy at the moment, so completing this form to request a mortgage payment holiday is the fastest way for it to be put in place for you. Existing mortgage customers can contact Virgin on: 0345 602 8301
West Brom for Intermediaries We already have policies in place to help borrowers who fall into financial difficulty, and this includes circumstances caused by Coronavirus. We have also signed up to the UK Finance led agreement to support customers who have been financially impacted due to Coronavirus. This help includes allowing members to reduce or defer mortgage payments for up to three months if needed. Importantly, we will work with you to identify the options we have to help you manage your particular situation, so please contact us as at the earliest opportunity if you’re facing financial difficulty. You can contact us either by calling our Customer Services team on 0345 241 3784 or messaging us via the Live Chat function on our homepage.
Bank of China The lender is currently formulating their criteria and policy. Please check back over the coming days for the details as they are released. Existing mortgage customers can contact Bank of China UK on: 0800 389 5566
Beverley Building Society The lender is currently formulating their criteria and policy. Please check back over the coming days for the details as they are released. Existing mortgage customers can contact Beverley Building Society on: 01482 881510
Earl Shilton Building Society The lender is currently formulating their criteria and policy. Please check back over the coming days for the details as they are released. Existing mortgage customers can contact Earl Shilton Building Society on: 01455 844422
Ecology Building Society The lender is currently formulating their criteria and policy. Please check back over the coming days for the details as they are released. Existing mortgage customers can contact Ecology Building Society on: 01535 650 770
First Trust Bank The lender is currently formulating their criteria and policy. Please check back over the coming days for the details as they are released. Existing mortgage customers can contact First Trust on: 0345 6005 925
Kingdom Bank The lender is currently formulating their criteria and policy. Please check back over the coming days for the details as they are released. Existing mortgage customers can contact Kingdom Bank on: 0115 921 7250
Loughborough Building Society The lender is currently formulating their criteria and policy. Please check back over the coming days for the details as they are released. Existing mortgage customers can contact The Loughborough Building Society on: 01509 631952 or email mortgages@theloughborough.co.uk.
Marsden Building Society The lender is currently formulating their criteria and policy. Please check back over the coming days for the details as they are released. Existing customers can contact The Marsden on: 01282 440500
MBS Lending Ltd The lender is currently formulating their criteria and policy. Please check back over the coming days for the details as they are released. Exisiting Mortgage customers can contact MBS on: 01664 414141
Monmouthshire Building Society The lender is currently formulating their criteria and policy. Please check back over the coming days for the details as they are released. Existing mortgage customers can contact Monmouthshire Building Society on: 01633 844 370
Pepper Money The lender is currently formulating their criteria and policy. Please check back over the coming days for the details as they are released. Existing mortgage customers can contact Pepper on: 03333 701 102
United Trust Bank The lender is currently formulating their criteria and policy. Please check back over the coming days for the details as they are released. Existing mortgage customers can contact United Trust Bank on: 020 7190 5555
Vernon Building Society The lender is currently formulating their criteria and policy. Please check back over the coming days for the details as they are released. Existing mortgage customers can contact Vernon Building Society on 0161 429 6262

HOMEOWNERS PUT OFF MOVING DUE TO STRESS

If you find yourself recoiling at the prospect of selling up and finding a new property, you’re not alone. Quite apart from Brexit uncertainty and the housing market slowdown, it seems that many homeowners are putting off moving because it’s simply too stressful. Concerns about moving to a new location, having noisy neighbours and high estate agency fees, among others, explain why 60% of homeowners in a recent study1 are reluctant to start looking.

Some respondents even said that moving home was more stressful than getting divorced (34%), having a baby (31%) or starting a new job (27%). It could be worth the pain, however; 62% of those surveyed said they believed that moving could make them happier. Taking action to minimise your stress, then, rather than avoiding it altogether, could make for a smoother transition and a brighter future.

FEAR OF THE UNKNOWN

Not knowing much about the location you are moving to is likely to increase your anxiety, so the best thing you can do is conduct some research. Find out about the schools, healthcare and amenities available in the area, talk to current residents, and see what noise and traffic levels are like at different points in the day/week. Arming yourself with more knowledge should help to alleviate your fears and improve your outlook.

FRETTING OVER THE FINANCES

For many, the prospect of finding a new mortgage is their biggest worry when considering a move. Seeking our advice as early as possible will give you more time to explore the available options and decide what’s best for you, whether this be transferring your existing mortgage, increasing the size of your loan or finding a new provider.

Remember, change can be positive – so if you’re thinking about moving, now could be the time.

1Yopa, 2019

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.

RESIDENTIAL PROPERTY REVIEW – October 2019

Our monthly residential market review is intended to provide background to recent developments in property markets, as well as to give an indication of how some key issues could impact in the future.

Continuing uncertainty in residential property market

The latest Royal Institution of Chartered Surveyors (RICS) UK Residential Market Survey, has reported a decline in home listings coming onto the housing market, with the net balance for new instructions slipping to its weakest point for more than three years at -37%.

This follows the more stable trend seen over the last three months, as ongoing political and economic uncertainty continues to dissuade vendors. As a result, estate agents’ books remain at near record low levels.

The near-term outlook suggests that sales will remain subdued over the next three months and price expectations will see a modest decline UK-wide over this period. However, sales volumes are expected to stabilise over 12 months and more respondents to the survey expect prices to rise, rather than fall over the coming year.

A mixed picture continues to be seen across the UK, with price gains in Scotland, the North West and Northern Ireland, whereas London and the South East retains negative momentum.

UK’s best new building

In the centenary year of the introduction of mass council housing, the RIBA Stirling prize for the best new building in the UK has been awarded to Goldsmith Street in Norwich. This is the first time in the 23-year history of the prize that the award has been won by social housing.

The project has been built by Norwich City Council and comprises 100 terraced homes which are rented out on secured tenancies at fixed social rents. Goldsmith Street offers highly energy-efficient homes using a passive solar scheme where annual energy costs are expected to be 70% cheaper than that of the average household.

Chair of the 2019 RIBA Stirling Prize judges, Julia Barfield said: “This is proper social housing, over ten years in the making, delivered by an ambitious and thoughtful council. These desirable, spacious, low-energy properties should be the norm for all council housing.

Shock interest rate hike on Treasury loans

Councils have reacted with frustration after an unexpected rise in interest rates from 1.81% to 2.82% on new borrowing from the Treasury’s Public Works Loan Board (PWLB). There are fears the rate hike, announced on 9 October, could delay or put a halt to regeneration plans and housebuilding schemes.

PWLB loans totalled nearly £8bn in 2018-19, which represents a 77% year-on-year rise in new borrowing. Many councils used the low-interest loans to invest in regeneration and housing projects and there are fears that housebuilding schemes will cease to be affordable and may have to be cancelled as a result.

Sharon Taylor, District Councils Network spokesperson and leader of Stevenage Borough Council commented: “It is extremely disappointing that the government is to increase Public Works Loan Board rates, at a time when councils’ finances are already under huge pressures. It’s another big blow for local government finance. The need nationally is for good quality, affordable housing. My view is only councils can deliver that. Why would you want to slow that down in the middle of a housing crisis?

House Price Headline Stats – October 2019
House Price Change by Region – October 2019
Average Monthly Price by Property Type – Ocober 2019
Mortgage Activity – October 2019

ARE YOU A LEASEHOLDER LOOKING TO BUY YOUR FREEHOLD? HELP IS ON THE HORIZON

The Law Commission has proposed a raft of new proposals which could make it easier for leaseholders to buy their freeholds. These will be welcomed by homeowners who have been told they must pay exorbitant amounts of money to buy their freehold.

There are an estimated 4.2m leasehold residential properties (one-third houses and two-third flats) in England, and around half of these are on leases with less than 80 years remaining. Ground rents average £370 per year.

One of the proposals that the Commission has put forward is to introduce a simple formula that would mean that eligible leaseholders would pay just ten times their current ground rent, or 10% of the value of the property, to convert their property from leasehold to freehold. It also recommends replacing the current right to purchase a one-off 50-year lease extension with the right to purchase an unlimited longer lease extension without a ground rent.

It also proposes removing the current requirement that leaseholders must own the lease on their property for a minimum of two years before they can buy their freehold.

The final recommendations will be published next year.

Residential Property Review

August 2019

A new era of renting – Build to Rent

A relatively new category in the rental market, Build to Rent, saw total investment of £2.6bn in 2018, an 11% increase from 2017 and it looks likely that this sector will continue to grow quickly.

Whilst home ownership remains an aspiration for many, figures show the private rented sector remains strong, growing from 3.7 million in 2009 to 5.4 million today, with many home-hunters choosing to rent long-term, often due to affordability and flexibility.

In contrast to many private landlords, Build to Rent providers often manage the whole building and seek to offer high levels of service and property management, as well as aiming to build a community.

The attractions of Build to Rent properties may include flexible tenancies with no fees or deposit, a monthly charge which includes all bills, facilities such as spas and gyms, on-site maintenance and community spaces.

Buyers’ market likely in second half of 2019

Recent research from Rightmove indicates that buyers may be able to obtain good deals in the remainder of 2019, with lower prices combined with high stock levels.

The research also shows that market fundamentals such as low interest rates and record employment levels remain strong. Additionally, mortgage availability remains good, as indicated by figures from UK Finance, showing the number of mortgage approvals from the main high-street lenders in May was up by 9.1% year-on-year.

Miles Shipside, Rightmove’s property expert said: “Those who have postponed their purchase should note that estate agency branches have more sellers on their books than at any time for the last four years, so there should be more choice of properties to buy. It could be a good opportunity to negotiate a relative bargain in the second half of the year, if they can set aside the continuing Brexit distractions.

He added: “With activity and prices often weaker in the second half of the year, it will be those sellers who are bold enough to price aggressively who will attract buyers with the confidence to act rather than hesitate. It would appear to be sellers in the upper end of the market who need to be boldest on pricing, as data shows that the middle and lower sectors are holding up better.

Brexit-related uncertainty remains in residential market

In its August Inflation Report, the Bank of England has reported that the housing market remains weak, but there are some signs of stabilisation.

The latest NMG survey, which is a biannual household survey commissioned by the Bank and covers over 6,000 households, revealed an expectation that house prices will decline a little over the next 12 months. The survey also revealed that around 20% of households who expect to move home in the next two years, reported having delayed their move due to Brexit-related uncertainty.

Nick Leeming, Chairman of Jackson-Stops said “The data makes it clear that continued uncertainty as we creep ever closer to leaving the EU without a deal has caused hesitancy in some areas of the property markets. Yet, once a firm decision has been made on when the UK will leave the EU and people decide to get on with their lives, we should expect to see a modest uplift in property prices in the new year.”

IS A 40-YEAR MORTGAGE A LIFELINE OR A LIFE SENTENCE?

Most people who choose a 40-year mortgage do so because they want a low monthly repayment. If you were to take a typical 25-year mortgage, your repayment would be higher. By stretching out the loan, monthly payments decrease.

WHAT YOU NEED TO CONSIDER

While lower monthly payments may be attractive and can represent your best chance of getting onto the housing ladder, there are downsides you should be aware of. Taking out a 40-year mortgage means you’ll pay more in interest, and you’ll find that you build equity, the amount of the property that you in effect own, more slowly.

Even if you don’t actually keep a 40-year mortgage for 40 years, the loan is designed with a 40-year timeframe in mind, so you could find that the interest rate is higher than it would be for a more traditional mortgage term. The chances are you’ll be making repayments in your retirement years, so that’s something you’ll need to consider. It makes sense to check that you can make overpayments if you can afford them and consider swapping to a shorter-term loan when your circumstances allow.

A mortgage is a loan secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.