Do you aspire to own a new-build home? Are you looking to move home, but lack sufficient funds to afford the repayments on a low-deposit mortgage? You may find it easier to join, or move up the property ladder, thanks to the government-backed Help to Buy scheme.

There are several schemes currently:

Shared Ownership

This is available to first time buyers unable to afford the full 100% mortgage on a home. It works by allowing them to buy a share of the home (between 25% and 75%), and then pay rent on the remaining share. An option to buy further shares of the house in the future is available when it’s affordable. There are also opportunities for disabled and older people to participate in this scheme.

Equity Loans (England)

Help to Buy: Equity Loans are available for first time buyers as well as homeowners looking to move, but only on new-build homes worth up to £600,000. The Government will lend you up to 20% of the cost of your newly built home, which means you only need a 5% cash deposit and a 75% mortgage to make up the rest. Please note, the scheme is not available for those wishing to purchase a second home or Buy to Let property.

Affordable New Build Scheme (Scotland)

The Affordable New Build Scheme is available to first time buyers and existing homeowners looking to move, providing you want to buy a new build home, and you will be helped with up to 15% of the purchase price.

Help to Buy – Wales

Help to Buy – Wales provides a shared equity loan to buyers of new-build homes with a purchase price of up to £300,000.

Forces Help to Buy

This scheme allows personnel to borrow up to 50% of their annual salary, with a maximum of £25,000. The money can be used towards a deposit or any other costs associated with the purchase, such as solicitor’s and estate agent’s fees.

We’re here to help

We’ll spend time getting to know you and your specific circumstances so that we can find a scheme that’s right for you. Talk to us to find out:

• How much you can borrow
• The extra costs you need to consider
• How to protect your investment
• Which mortgage deal is most suitable for you

Most importantly, we’ll be here, by your side, throughout the process.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

According to new independent research, thousands of borrowers could be missing out on a better mortgage deal by not speaking to an adviser.

The recent study which surveyed over 2,000 UK homeowners revealed some pretty staggering results.

It found that 31% of borrowers who went direct to a mortgage lender didn’t understand how a mortgage adviser could help with their search.

The findings also showed that 69% of consumers who went straight to a lender hadn’t re-mortgaged in the last 5 years.

On top of this, 74% said they’d stayed put with their current mortgage policy because they felt they had a ‘good deal’.

However, without seeking mortgage advice, it’s likely that these individuals would have missed out finding a better mortgage deal.

Most mortgage advisers offer thousands of extra rates that aren’t available through direct lenders.

If you skip speaking to an adviser, you immediately limit your options when it comes to finding your perfect rate.

Data from mortgage sourcing platform Twenty7Tec, gathered in April, backs this up.

It showed that almost 12,000 mortgages were available through mortgage advisers, compared to just 2,000 directly on offer from lenders to consumers.

The analysis has been a real eye-opener, establishing that the mortgage industry needs to clearly demonstrate the value of mortgage advice for borrowers.

In fact, just 30% of those who went direct to the lenders said that they would speak to a mortgage adviser next time.

Meanwhile, 60% who didn’t seek advice when they took out their last mortgage didn’t know mortgage advisers were there to help the borrower.

In fact, just over a third of individuals polled thought that a mortgage adviser was there to support the lender!

Almost a third (29%) of homeowners who had advice when searching the market for the best mortgage deal were likely to have switched in the last five years, compared to just one in five (19%) of those who went direct.

These borrowers would have benefitted from opportunities to pay less interest as mortgage rates fell, with the average rate on a 2-year fixed term mortgage falling from 2.6% in June 2014 to 1.48% in June 2017.

Borrowers who used a mortgage adviser were also massively in favour of using one again.

Nearly all (98%) said that they found the support of a mortgage adviser ‘valuable’ and a further 95% said they would recommend using a mortgage adviser to family or friends.

“The importance of regularly meeting up with your mortgage adviser is not to be underestimated.  As the mortgage market and rates change so do peoples circumstances and a regular review will ensure you are on the right deal, or in the position to be when your current product expires.” - Steve Ridgeway, Head of Mortgages. 

Want to see if you could switch to a better deal?

Here at Edward Mellor, we offer over 50 of the latest rates from niche and high street lenders to find a mortgage deal that’s right for you.

We have a friendly team of highly qualified mortgage experts ready to offer you choices, options and solutions when it comes to funding your home.

From finding you the perfect mortgage rate, right the way through to the paperwork, our team handles every aspect of the process.

If you’d like a free, friendly chat with our team, click here.

Remortgaging to a different deal could potentially save you hundreds or even thousands of pounds a year, with over half of UK homeowners spending approximately £3,500 too much on their mortgage, it’s important to review your mortgage regularly to see if better deals are available elsewhere. 

Here, we explain exactly how remortgaging works and outline the potential benefits.

What is remortgaging?
Remortgaging is when you change the mortgage you currently have on your property, either by switching it to a new lender or by moving to a different deal with your existing lender.

Why remortgage?
The main reasons people remortgage are to save money (by securing a lower rate of interest), or because they are moving to a different property. Others remortgage to release capital (or ‘equity’) from their property to pay for things such as home improvements, or to pay off other debts.
Remortgaging allows home buyers to get a better rate on repayments, which then means lower monthly payments.
It can also allow for flexibility if your circumstances change. For example, if you get some inheritance or a promotion and you now want to increase your regular monthly payments or pay in a lump sum.

How you can save
When you first apply for a mortgage, most people sign up to an introductory rate for a certain period.
For those on a tight budget, this is often a fixed rate deal, which charges a fixed rate of interest for two or more years.
Then there are tracker deals, which track the Bank of England base rate, plus a set percentage on top. The deal might promise to charge base rate plus, say, 2% – so if the base rate were 0.5%, the rate charged to the borrower would be 2.5%.
However, remember that if the base rate rises, your mortgage repayments will go up too. You can work out how your mortgage will be affected by base rate changes by using our handy base rate calculator.
With a capped mortgage deal, the rate will rise and fall in line with market conditions with the guarantee that it won’t exceed a certain level.

How long does it take to remortgage?
It usually takes on average around 6 weeks to switch to a new mortgage with the same lender. If you are looking to change lender, however, this takes slightly longer.
It is recommended to look at your different options 8 weeks to 3 months before your current rate expires.

What does the remortgaging process consist of?
1. Speak to a mortgage advisor
2. Get your documents together
3. Submit your mortgage application
4. The lender values your property
5. You get a mortgage offer from the lender to confirm your mortgage has been approved
6. A solicitor handles the transfer of deeds from one lender to another
7. Your mortgage completes
8. You receive a letter from the new lender confirming your mortgage has been transferred, and that they’ll start taking new payments

Remortgaging is a fantastic idea for multiple reasons, if you feel like remortgaging could benefit you, why not get in touch with one of our friendly mortgage advisors and we can help you get the ball rolling with simplicity and ease. Click here to get in touch or call Edward Mellor Mortgages on 0161 443 4830.

* Your home may be repossessed if you do not keep up repayments on your mortgage.

 Being a first-time buyer can be daunting.

Not only are you about to make one of the biggest financial decisions in your life, but you’ll probably also have family members and friends offering their ideas on the right house, mortgage, lender conveyancer and even removal company for you.

We’ve put together some ideas to try and take away some of the stress and confusion and give you the confidence to move through the home buying process as smoothly as possible.

 Get the right advice

Of course we’re going to say that - it’s what we do! We’ll review your circumstances and look at your income, debt, day-to-day outgoings, employment and the size of your deposit, to assess what you can afford to borrow now and in the future.

We’ll talk you through the types of mortgage we think are right for you and the lenders who offer them.

 Save as much as possible

Buying a house is going to be expensive so it’s important to save, save, save and save some more to get yourself in the best position possible.

Many lenders will accept a minimum deposit of 5% of the cost of the house you’re buying but aim higher.

The bigger your deposit the smaller the mortgage (and monthly mortgage payments) making you more attractive to a lender.

 Know your budget

Your hard-saved deposit and monthly mortgage repayments aren’t the only expenses you need to be mindful of when buying your first home:

Some lenders will charge for a valuation fee to help them establish how much they are prepared to lend you.

You’ll also need to factor in the cost of a survey (depending on the type of property you’re buying and the lender you choose to go with you might need a basic mortgage valuation, a homebuyer’s report or a full structural survey).

In Scotland, you also need to budget for Land and Buildings Transaction Tax and in Wales, you’ll need to budget for Land Transaction Tax.

If you live in England or Northern Ireland, you won’t pay any Stamp Duty Land Tax on properties worth up to £300,000.

You’ll also need to pay your solicitor or conveyancer for any legal work and local searches they do on your behalf.

Talk to us and we can help with practical financial advice on your first and future home purchases.

Click here to book a free mortgage appointment or call us on 0161 443 4830.

 * Your home may be repossessed if you do not keep up repayments on your mortgage

Your mortgage is likely to be the biggest commitment, financially, you’ll ever make. With this in mind, it’s worth spending time making sure you know exactly what you’re getting yourself into. Here at Edward Mellor mortgages, we’ve put together a complete guide of everything you need to know to do with mortgages.

Let’s start at the beginning…

 What is a mortgage?

 A mortgage is a loan you take out to buy property or land. The loan is secured against the value of the property or land, meaning if you can’t or don’t keep up with your repayments it can be taken away.

 Who can get a mortgage?

 The good news is most people have no problem getting a mortgage. If you have a reasonable deposit, earn enough money and your credit score is strong, you’re likely to be eligible for a mortgage.

There are some restrictions however, you won’t be able to get a mortgage until you’re 18 and you may not get approved if you’re too close to retirement to pay off the loan in time.

Those who are self-employed need not panic, you can still get a mortgage as long as you can properly prove your income.

There are also specialist mortgages for people with poor credit scores or histories of financial trouble.

Every mortgage lender has different rules about who they’ll lend to and at Edward Mellor Mortgages we have over 50 lenders meaning you have plenty of options to choose the right deal for you.

Check out our Mortgage Borrowing Calculator to see how much you might be eligible to borrow.

Click here to use our Mortgage Borrowing Calculator. 

 How much do I need to earn to get a mortgage?

 Although how much you earn is taken into account, the amount you can afford to pay back each month is more important.

Your monthly mortgage repayments depend on how much money you borrow and over what period you have agreed to borrow it for. The amount you have to borrow depends on the price of the property you’re buying and how much of a deposit you have.

Lenders decide what you can afford to borrow based on your monthly income and outgoings.

Check out our Income Expenditure Calculator where you can look at your income and outgoings to help set yourself a budget.

Click here to use our Income Expenditure Calculator. 

 What mortgage can I afford?

 Our Mortgage Borrowing Calculator will tell you in less than 1 minute what you can afford to borrow.

 What is a mortgage deposit?

 Mortgage lenders ask you to put down a lump sum of cash before they’ll lend you money for a house, this is typically known as a deposit. This deposit usually has to be worth at least 5% of the property’s value.

For example, a house worth £250,000 would require a deposit of at least £12,500 (5%).

The percentage of the property’s value you borrow after chipping in your deposit is called your Loan to Value (LTV) ratio. A 5% deposit gives you an LTV of 95%, a 10% deposit gives you an LTV of 90%, and so on.

The lower your LTV is the better rate the lender will offer you. This means a lower monthly repayment.

 How much are mortgage repayments?

 The amount you’ll repay each month on your mortgage depends on many different factors. These include:

• The size of the mortgage.
• The term (length) of time your mortgage is for.
• The mortgage’s rate and the type of mortgage you choose.

Our Mortgage Repayment Calculator can show you how much you’d repay each month.

Click here to use our Mortgage Repayment Calculator. 

 What is a mortgage term?

 The term of a mortgage is how long you’ll be paying it off. It’s typically 25 years, but it can be as much as 40 years or as little as you like, as long as you can afford to pay it during that time.

The term of your mortgage can have an effect on how much you have to pay each month, so it’s something worth considering carefully.

 What is a mortgage rate?

 A mortgage rate is the amount of interest you’re charged on money you borrow to buy a property.

 What types of mortgage are there?

 There are lots of different kinds of mortgages designed to suit all kinds of people and their individual circumstances.

First time buyer mortgages help people get onto the property ladder for the first time, especially if they have a relatively small deposit.

Remortgages help homeowners to save money on their monthly repayments or borrow additional cash for big-ticket purchases like home improvements.

Buy to let mortgages are designed for people who have a property or want to buy a property they intend to rent out to tenants.

Our Find Me A Mortgage calculator helps you select a mortgage for your individual purpose.

 Which mortgage is right for me?

 It absolutely depends on your circumstances and what you need. Here at Edward Mellor, we have 35 years’ experience in helping our customers understand the very best mortgage deal for them.

 How do I get a mortgage?

 Once you find a property you want to buy, you need to choose a mortgage.

There’s a couple of options for you to choose from at this initial stage; you could go straight to a lender such as a bank or building society but they’re only going to sell you their own mortgage products.

That’s fine but it means you will likely miss out on better deals elsewhere.

If you go to a mortgage broker instead, they’ll look at deals from several – if not all – lenders.

The more lenders and products a broker has access to, the more certain you can be you’re not missing out on something better. At Edward Mellor, we compare deals from more than 50 lenders.

Firstly, arrange an appointment with us by submitting some basic information into our contact form. Click here to get started. 

Alternatively, you can find our direct contact details here so you can get in touch. 

Once you’ve confirmed your free appointment the mortgage advisor will guide you on everything you need to bring along to your appointment so that they are able to establish the best deal for you.

Your mortgage advisers will review your mortgage options with you and, if you’re ready to apply, submit your application to the lender with the best deal.

The lender will then carry out a series of checks, assessing what you can afford, how you’ve handled borrowing in the past and checking the property is worth what you’ve asked to borrow so that they can make a decision on your application.

If your application is approved, the lender will make you a mortgage offer - which is valid for three to six months, depending on the lender.

Once you’ve accepted the mortgage offer you are can instruct your solicitors to do their part to move you towards exchanging contracts with the seller of the property.

The final stage is completion, when your mortgage completes and you get the keys to the new place.

Our dedicated mortgage experts handle all the paperwork and phone calls while keeping you in the loop, so you’ll never have to chase anyone for updates on your mortgage’s progress.

* Your home/ property may be repossessed if you do not keep up repayments on your mortgage.

* Some buy to let mortgages are not regulated by the Financial Conduct Authority.

Protect what really matters for less than the price of a cup of coffee*

Ah, that daily takeaway coffee on the way to work. It’s a little bit of luxury for just a couple of pounds.

But for less than that*, you could provide something even more satisfying.

With the right Family Protection Insurance plan you could provide complete peace of mind for you and your loved ones.

It’s a small price to pay

Far from being a luxury, Family Protection (or more specifically, Life Insurance, Critical Illness Cover and Income Protection) should be considered essential. Especially if other people rely on your income.

It can provide funds to help deal with the financial consequences of illness, an accident, unemployment or death.

In such uncertain times, it can be reassuring to know those you care most about are protected.

So next time you find yourself struggling to choose between the latte or the mocha, why not consider a third option?

The long-term financial security of you and your family really is a small price to pay.

If you would like to find out more about Family Protection Insurance, give us a call on 0161 443 4830 or drop us an email at mortgages@edwardmellor.co.uk.

Related Links

Why it's important to have home insurance

*Quote basis: 35 year-old non-smoker, £250,000 decreasing life assurance and critical illness cover to cover a repayment mortgage, 25 year term, guaranteed premium. Premium of £57.33 per month is equivalent to £1.85 per day based on a 31-day month. Quote sourced via Openwork Select panel of insurers on 3 January 2019. Premiums are subject to an individual’s personal circumstances and medical history.

Mortgage Base Rate Remains Unchanged

There has never been a better time to speak to us about your mortgage.

The Bank of England has just confirmed that the base rate (the rate at which the Bank of England charges other banks and lenders when they borrow money) will remain at 0.75%.

There was a little apprehension about whether it would receive another cut due to the political instability and Brexit uncertainty. However, this important decision to keep the rate the same just goes to show that there is confidence in the UK economy - and it's here to stay.

But what does this mean for me?

Borrowers benefit from this decision in two ways: it keeps mortgage rates between lenders competitive and it increases the variety of products available.

We have kept interest rates at 0.75%. Find out more in our Monetary Policy Report.https://t.co/qBs5kb9Kp3#MonetaryPolicyReport #BankRate pic.twitter.com/jkNrJc44ek

— Bank of England (@bankofengland) January 30, 2020

Mortgage Rates

The rate could have gone either way.

If it had have increased, this would have meant higher interest rates for the end consumer. However, if it had have been reduced, it's possible this could've heightened the ever-growing competition between lenders.

Keeping the base rate the same and at a low rate means consumers are able to take advantage of great deals.

Variety of Products

Due to this low-interest climate, it has forced lenders to remain competitive with one another. This has led to a whole plethora of products becoming available to both the mainstream residential and buy-to-let mortgage markets.

However, all this choice can become a little overwhelming.

If you're feeling a little confused about what is available to you or if you think you could take advantage of a better deal, speak to our friendly financial service team today on 0161 443 4830 and book your FREE consultation!

You can also click here to compare our mortgage best buys online.

Related Links

UK House Prices Increase at Record-Breaking Pace

Base rate held - what does that mean for mortgage borrowers?

When applying for a mortgage, there are lots of documents and information needed to complete your application.

The more documents you can upload ahead of your initial mortgage appointment, the quicker you'll be able to get moving.

To help prepare you for your first mortgage appointment, we’ve put together a list of documents you’ll need to upload.

Please upload as much as possible of the following information ahead of your appointment:

1) Last 3 months payslips (and P60 if available) if you are currently employed
2) Last 3 years audited accounts and/or last 3 years SA302s if you are self-employed
3) Your most recent mortgage statement
4) Identification – Driving License and Passport
5) Last 3 months bank statements
6) Formal confirmation of state benefits, such as Child Tax Credit and Working Tax Credit from HMRC (all pages)
7) Any existing Life or Health Insurance Policies
8) Your latest Home Insurance Schedule