At the start of November 2017 the Bank of England finally raised the base rate from 0.25% where it had sat for many years to 0.5%. Can any of us remember the last time that mortgage interest rates went up… was actually back in 2007…!!!

Interest rates have been low for a long time and many borrowers have never experienced a rate rise. If you have purchased your first home in the last 5 years then this is going to be a new experience for you and one that you may be concerned about.

The financial commentators that we read every day still maintain that interest rates are lower than they should be. And if the financial markets are to be believed we are going to see further rises in the coming months and years. Of course they can not accurately predict this but all the signs are there.

Who are the short term losers in this?

Anyone on a variable rate mortgage

Many lenders will pass this increase immediately on to any of their borrowers that are currently sitting on their standard variable rate (SVR). The letters may well already be in the post notifying people and giving them their new monthly payment.

Looking to fix your mortgage now could negate this increase and potentially reduce your payments as many of the fixed interest rates on offer are already lower than the SVR’s out there. Added to that is the knowing what your payments will be for a fixed period of time, and you start to see the sense in checking.

Anyone already on a fixed rate

If you have previously had the foresight to fixed your mortgage then you will already be enjoying knowing what your monthly payments are and your current payments will remain unchanged. But you will go on to your lenders SVR once this ends and in most instances this will increase your payments.

If your fixed rate is due to end soon then you may want to consider looking at a longer term fixed rate now. There are deals out there and you will protect yourself from any other short term rate increases that may be planned.

Borrowers with a tracker mortgage

If your mortgage tracks the Bank of England base rate then by its design you should be seeing your payments increase as the 0.25% increase is applied.

As you receive notification you could also consider fixing your future payments. As a minimum you should be considering what the recent rise has done to your payments and what future increases, if we see them, will further do to your payments.

Those with high unsecured debt on credit cards and loans

Those borrowers that see an increase in their monthly mortgage payments may start to see less money available to service other debt that they have. High credit card balances for instance still need to be paid off and that money has to come from somewhere.

If your plans were to refinance or restructure your debt then looking to do this now could be the best option. You could consider looking for a new deal that could get the balance on to a better interest rate, or you could consider consolidating it in with any new deals you can find for your mortgage.

Just Remortgages has for a while now been encouraging its clients to take a FREE review of their mortgage interest rates and subsequent monthly payments. We knew that by giving you your options before The Bank of England raised the base rate from where it has sat for many years, you would save money EVERY month and help lock in a new rate potentially over a longer period time.

But its not too late to do this. If any of the situations above are where you find yourself with your own mortgage then we want to speak with you.

To find out more, and to discuss your own situation and see exactly what sort of deal you could secure for yourself, please visit us at Just leave your details and we will get back in touch with some more information.

Interest Rates Rise up to 0.75% possible within the next 12 months.

The Bank of England Base Rate could be raised twice over the next year from its lowly 0.25% standing, according to a leading economist.

A recent research note published by HSBC’s UK economist, Liz Martins, stated the Bank of England’s Monetary Policy Committee (MPC) is expected to vote for a 25 basis point rise at its November meeting. Another 0.25% rate rise could take place in May 2018, Martins suggested.

That would mean that UK bank base interest rates would rise to 0.75% in just a few months.

Whilst it was previously believed that there would be no rate rise either this year or next, the Bank’s messaging has alluded to the possibility of a rate rise ‘over the coming months’. With another interest rate rise possibly by May 2018.

How is this likely to affect you?

This increased bank base rate is likely to feed into rates offered by lending institutions such as your Bank or Building Society.

The standard variable rate they offer may change as well as the rates offered for new fixed or variable rate deals.

So, is now the right time to consider fixing your rate so that you know what you will be paying for the coming months and years?

At present there are still many competitively priced 2, 3, 4 and 5 years fixed rate deals available. Fixing yourself into a new product will protect you from any increases in the Bank Base Rate which may affect mortgage rates offered by your existing lender which could result in you paying more each month for your mortgage.

So looking at fixed rate options now to future proof you from potential future interest rate rise is, possibly, the most prudent thing to do so finding the right deal for your circumstances could save you thousands over the coming years.

Interest rates are going to go back up, that is not in any doubt. What we don’t know is when.

Recent figures have stated that 3 million borrowers could still be on their lenders standard variable rate (SVR). This means that an interest rate rise, when it comes, is likely to be passed on to them by their lender and they will see an increase in their monthly payments.

So why are borrowers not acting now?

Citizens Advice has recently published their own research which stated that 1.2 million borrowers could save money now by switching to a new deal. They went on to calculate that a borrower, remaining on the SVR after a 2 year fixed deal ended, could be paying as much as an extra £439 a year in payments.

Looking at this now would allow these borrowers the opportunity to enjoy a rate based on the current low Bank of England Base Rate of 0.25%. If this goes up, and it will one day, then all the rates based around this will naturally go up as well.

Many homeowners if challenged would agree that they don’t feel better off with rates as low as they are. This is because they have got used to low rates and have got in to the habit of spending the extra money that their lower mortgage payments have given them. Many don’t even remember rates when they were higher having only taken out their first mortgage over recent years.

So are home owners going to get a shock when rates start to creep back up to a level that they have historically sat at? The answer to this has to be yes as affordability levels get tested with the increased mortgage payments that come with a base rate rise.

Just Remortgages has for a while now been encouraging its clients to take a free review of their mortgage rate. Knowing what their options are before their rate ends, and definitely after it has, have allowed many clients to save money and lock in a new rate over a longer period time. This will save many of them thousands of pounds over the term of the mortgage and give the extra peace of mind that they are on the best deal for their circumstances.

To find out more and to see exactly what sort of deal you could secure for yourself please visit Just Remortgages at Just Remortgages or call them on 0800 0887788. A free review of your current mortgage deal could be exactly what your finances has been waiting for.

Interest rates are not the most exciting of subjects but being on the wrong one will cost the average borrower thousands of pounds. UK rates are at an all-time low, so why are so many still paying too much each month on their mortgage?

It is estimated that over 3 million borrowers in the United Kingdom are still on their lenders standard variable rate (SVR). And with the average SVR sitting at an uncompetitive 4.59% the banks and building societies are laughing with the extra revenue that they are collecting from their customers apathy. An amount estimated to be over £9bn..!!!

Add to this recent research by Citizens Advice which demonstrated that borrowers who remain on the SVR after a 2 year fixed rate mortgage ends pay a staggering extra amount of £439 a year in payments.

They go on to estimate that 1.2 million borrowers would be ‘better off’ switching to a new deal with 1 in 10 paying over £1000 extra each year. An amount they could avoid by switching to a new competitive rate. This can be with their existing lender or by taking advantage of some of the rates being offered across the market at the moment.

Just Remortgages has for a while now been encouraging its clients to take a free review of their mortgage rate. Knowing what their options are before their rate ends, and definitely after it has, have allowed many clients to save money and lock in a new rate over a longer period of time. This will save many of them thousands of pounds over the term of the mortgage and give the extra peace of mind that they are on the best deal for their circumstances.

To find out more and to see exactly what sort of deal you could secure for yourself please visit Just Remortgages at Just Remortgages or call them on 0800 0887788. A free review of your current mortgage deal could be exactly what your finances have been waiting for.

Various mortgage schemes are intended especially for homebuyers with a poor credit score. Therefore to find the best mortgage when you have a history of poor credit, it is essential to speak to the right lender or mortgage broker. Add to that that many new homebuyers are unfamiliar with the different types of mortgages and the search becomes even more difficult.

How To Get A Positive Mortgage Decision With A History Of Bad Credit.

Getting a mortgage with bad credit is not as difficult as some would lead you to believe. In fact, each day homebuyers are accepted with less than perfect credit scores, with adverse credit such as defaults, CCJ’s and with historic missed payments. The secret to finding a mortgage lender to help is to only apply to those lenders that specialise in these sorts of loans.
The best way, and the way that many often take, is to speak to a mortgage broker that specialises in this niche. Not all brokers will be experienced in helping clients where they have evidence of a poor credit score, and because of this, the lenders that can help may not be familiar to them.

Speaking to the correct mortgage broker is also important because often the lenders that will look at this for you are only accessible via a mortgage broker. These lenders have opted to only market their products through this route rather than go direct to the general public.

What Information Will The Mortgage Broker Want?

The first thing that will be required is details of why your credit score is not at the maximum. The reasons that have affected this will be what is required to start the process of matching your personal situation to that of the lenders criteria.
Some lenders have allowed in their criteria for historic CCJ’s, defaults, missed payments, debt management plans. Or in some instances their plans will take in to account where your score is being hit because of high borrowing amounts or where the score is knocked because of a lack of history.

The mortgage broker can go through all of this with you and provide you with some options moving forward.

How much can I borrow for a mortgage? ” is a question quite often asked by existing mortgage borrowers as well as those looking to Purchase a house.

“How much of a mortgage can I afford?” is another quite often used term as is “How much can I afford for a house?”

In effect these questions are the same……….. based upon your income how much money  can you borrow in order to Remortgage or Purchase a property. It is at this point that you may turn to the “Mortgage Affordability Calculator” or “Mortgage Repayment Calculator”.

Quite often these mortgage affordability and repayment calculators only offer a single income multiple answers, but, in reality the answer to how much you might be able to borrow is much more complicated.

When you apply for a mortgage, lenders calculate how much they’ll lend based on both your income and your outgoings including loan agreements and credit card payments, child maintenance and other bills – so the more you are committed to spend each month, the less you can borrow.

They will take into your credit history when making a decision

Sometimes lenders will cap the loan they offer on income ratio’s at four-and-a-half times your annual pre-tax salary, sometimes the cap is higher and sometimes the cap is lower.

Lenders may also lend you less if you are looking to borrow at a higher loan to value.

In effect the online mortgage calculators need to be taken with a pinch of salt. Theses should be viewed as rough guides only. These guides will not always accurately predict How much I can borrow for a mortgage.

These Mortgage Affordability Calculators assume that all lenders are the same, when they are not.

Each lender has a different way of assessing how much they will lend to you.

So, contact us if you want to know –

  • How much can I borrow for a mortgage?
  • How much of a mortgage can I afford? or
  • How much can I afford for a house?

We will be able to accurately let you know how much you can borrow.

We will be able to give you an indication of your likelihood of being accepted.

We will be able to let you know how much your new mortgage will cost per month.

People whose credit score may be less than perfect can often find it very difficult to get a mortgage, but the good news is that if you are in that situation you are not necessarily fighting a losing battle. It is still possible to get a mortgage, even if your credit history is not exactly stellar, although there a few things you will need to keep in mind before you can set out to do so.

One important tip is to make sure you get all your credit files in order. It is important to be fully knowledgeable about the state of your credit. Then you need to consider whether or not you may be able to repay any of the money you owe as, if you can, this can certainly help your score and give you a better chance of convincing lenders that you are a safe bet.

There is also little point making multiple applications online, or going to your bank, as most high street organisations will not cater for people with bad credit. Putting in an application with a lender that is never going to give you a mortgage is not just a waste of time, it can also be damaging.

The most important thing to do is get advice from a broker. The advice that the team at Just Remortgages can give is invaluable, and we will be able to point you to lenders who will assess your case on an individual basis. Getting a mortgage with a bad credit score is tough – but it can be done.

If you need to save, or raise money, then remortgaging your home may be the way to go. Remortgaging can save you literally thousands of pounds, whether you are trying to consolidate your debts, release some equity or just cut down on your monthly costs. You may have looked around for the best deal when you signed on for your original mortgage, but things change very quickly in the industry, and it is highly likely you will be able to find a better deal in today’s climate.

Remortgaging reasons

There are a variety of different reasons why you might want to consider remortgaging, including:

  • Wanting more competitive interest rates following the expiry of your current deal
  • A change in your financial situation
  • Wanting to remove or add a borrower to your mortgage
  • New mortgage deals no longer being offered by your current lender

Just Remortgages

Just Remortgages is one of the most respected and trusted mortgage brokers in the United Kingdom. We are not restricted by banks, estate agents, lenders or any kind of financial institution, which means we are able to find you the best deal we possibly can.

Finding a remortgage may sound like a complex and time-consuming task, but in fact, it does not have to be a difficult process. It can be as simple as making contact with Just Remortgages to allow us to compile your mortgage review; and then just letting us work to source the ideal mortgage for your needs and situation. Contact Just Remortgages today for more information and advice.

If you are considering remortgaging your home, but wondering whether the current period is the right time for it, then the good news is – yes, it is! In fact, 2016 as it stands is an excellent time for remortgaging, with mortgage rates at very low levels and lots of excellent deals of many varieties available on the market. People who are remortgaging at the moment are enjoying considerably lower rates than was the case a few years ago, and this trend is not expected to come to an end any time soon.

Of course whether or not it is a good time to remortgage your home will also depend on your own personal circumstances. Some people may more obviously be in the right place to be able to remortgage, as they are on a standard variable rate or a very uncompetitive tracker rate, and are paying more for their mortgage than is standard or than they really need to. They’ll have a very good reason to want to return to the market to try to find a better deal, and reduce the payments they have to make every month.

Some people looking to remortgage wish to do so for other reasons, such as freeing equity. If they are facing a shortfall of cash in other areas, despite having built up tens or even possibly hundreds of thousands of pounds of equity in their home over the years, then generating a lump sum via remortgaging can be a sensible move for them.

Remortgages. However you spell it, re-mortgage or mortgaging, it’s all the same meaning.  The ability to change your mortgage provider, in the hope you achieve a better interest rate.

Some use the services of a Remortgage to just pay off their debts or raise money to do things such as home improvements or to extend their current property. As some find selling and buying a new property a long drawn out affair, with too much money lost on fees from estate agents and the tax man.

Remortgages have become more popular with owners choosing to stay in their home and extend. With interest rates at all-time lows, it makes sense to switch your mortgage to a lower interest rate. Some choose to take advantage of a longer term fixed rate, and with lenders offering mortgages with no fees its easy fast and cheap to do.

We often think with a poor credit or low credit score we might not get a mortgage agreed. But with many new lenders in the market place now, there is more choice and more mortgage products for anyone with a bad credit history.  Poor credit mortgages or mortgages with defaults are now possible. Having equity in your home will help secure a lower interest rate; the most important thing to remember is to keep paying your mortgage and other debts secured on your home, as lenders look at this as a very important part of making a lending decision.

We often speak to people who don’t even bother trying to get a mortgage, or just think they would be declined a mortgage if they tried. So they save the embarrassment and don’t apply.   Over the last 10 years there have been many ups and downs with the mortgage products available. Back in 2008 they nearly all left the market, but over the years more mortgages for bad credit have become available as lenders get more confidence in the market. Over 40% of the mortgages Just arrange involve a level of bad credit.  Anything from a mortgage with default, CCJ mortgages , or just late or missed payments on loans or credit cards. The biggest hurdle still faced is customers who have an IVA that’s recent, or still recently discharged from bankruptcy.