Most of us would assume that when the Bank of England (BoE) cuts its rate of lending, then interest rates for the public will also fall. Yet this has not been the case since Mr. Carney decided to cut the BoE rate following the Brexit vote. Banks fund their lending from a mix of sources; Savers’ deposits being one, but the money markets form a significant portion of their supply of cash. Since August the fixed rates UK banks are paying to borrow money for two, three and five years has on average more than doubled – and this is starting to feed into the pricing of the mortgage products.. read more →

Express Mortgage Services Ltd and its financial business partners work hard to protect you, and last year alone, the UK’s banks and financial service providers stopped 70% of attempted fraud from actually happening. Unfortunately though, the 30% that did happen cost the nation a staggering £755 million. To try and bring this figure down, a new national campaign – led by Financial Fraud Action UK (FFA UK) – is urging everyone to do one very simple thing: think before you act. Because deep down, most people already know the basic rules on how to beat financial fraud, it’s just that in the heat of the moment, when you receive a call,.. read more →

One of the fastest growing sectors in the mortgage industry is that of equity release. A growing number of homeowners are accessing the cash (equity) tied up in the value of their homes, for a variety of reasons such as: Repaying a mortgage Supplementing pension income Gifting to family e.g. deposit for a house Home improvements Dream holiday Moving home For some homeowners a traditional mortgage may still be the best (or only way) to achieve their chosen reason(s). For other homeowners the right choice for them is equity release. Equity release plans allow people over the age of 55 to raise money against their home without the need for further income. At Express Mortgages we can.. read more →

25 Aug 2016
August 25, 2016

Record Low Mortgage Rates

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Interest Rate Cut The Bank of England recently cut its base rate to 0.25% from 0.5%. The effect of this varies by the type of mortgage you have. A tracker rate will track the Bank of England base rate, typically above a given percentage, thus a change in the Bank of England base rate downwards will see mortgage payments reducing. What will this mean for me? If you are on a tracker mortgage, the savings are approximately £11.43 per £100,000 borrowed on an average 25-year repayment mortgage or £20.84 if interest only per month. Fixed rate mortgages are unaffected I’m On A Fixed Rate, Can I Get My Mortgage Payments.. read more →

As a result of regulatory recommendations, Nationwide, Barclays, TSB and Coventry Building Society have slashed the amount available to borrow by raising rental income requirements for BTL purchase and remortgage products. More lenders are under pressure to follow suit. Earlier this month the Daily Mail online surveyed 85 towns and cities across the UK finding that, “59 would not be accessible to landlords if tighter lending criteria is applied…”   What these changes could mean in practice The below table shows the maximum amount you may be able to borrow against rent now and after the changes. Using average rent figures the changes would mean a loan reduction of £35,000.. read more →

What is changing? The amount you can borrow on a BTL property has been reduced by 4 major lenders in anticipation of regulatory changes. As an example, on a property yielding a rental of £800 per month the maximum borrowing with these lenders will be reduced by around £20,000. This could affect a borrower’s ability to obtain a new product or to expand their portfolio. Will this affect me? It could do. If other lenders follow suit, then these rental calculations could become the norm. One industry insider has said that loan to values could be capped at 65% and one major lender has already cut its loan to value.. read more →

Brexit “will force rates up to 3.5pc within 18 months” warns the Bank of England’s (BoE) latest recruit to the Monetary Policy Committee. Michael Saunders. The ex-Citibank economist, who is set to join the rate setting organisation this coming August, believes Brexit will see a collapse in the pound which will lead to a swift hike in inflation. With the pound devalued, imports will become more expensive, causing inflation to rise. When inflation rises above 2.5%, the BoE will begin to raise interest rates from the historic low of 0.5% and while this will be of joy to savers, mortgage holders will suffer the consequences. A BoE basic rate of 3.5%, some SEVEN times higher.. read more →

After much encouragement from the major lenders we have put forward two of our hard working staff for awards at the BMA 2016. Stephen Darbyshire (our Director of Specialist Lending) has been nominated for Best Broker: Buy To Let and Ruth Huntley Jacobs (our Director of Operations) has been nominated for Technology Advocate If you agree with the nominations (and you have a spare two minutes) we would really appreciate it if you would nominate Stephen and Ruth for their respective awards. We are extremely grateful in advance for those clients who choose to help us. By selecting the different categories you’ll be able to submit as many nominations as you decide. Voting closes on.. read more →

Already this year, there have been a number of changes in the mortgage application process, but three areas in particular seem to have the biggest impact. The good news is that all three are a positive step by lenders to ease mortgage criteria and open up options that that could save you money on your mortgage borrowing or associated costs. Deposit levels Both residential and BTL mortgages have seen shifts in the level of deposit needed. On the residential front we now have over thirty lenders offering mortgages with a deposit as little as 5% and with no real difference in lending criteria to those who have larger deposits. With parental backing it is now possible to.. read more →

A recent industry wide survey by the Intermediary Mortgage Lenders Association (IMLA) demonstrates that Express Mortgages is one of the top performing brokers within the UK. On average, a Mortgage Broker will complete 69% of all applications they submit on behalf of their clients. Of course many brokers complete an even lower percentage of applications, Express Mortgages however had a completion rate of 83% in quarter 4 of 2015. IMLA concludes that the best brokers are, “evidently highly effective at matching borrowers with the product best suited to their needs, and we expect them to build upon this success as they continue to get to grips with adjustments to the.. read more →