26 September 2018

Press Coverage

There are concerns that those with Help to Buy mortgages may struggle to remortgage when they come to the end of their introductory deal. However, Matt Wilde, a Help to Buy specialist at SPF Private Clients, says borrowers should not worry unduly: ‘Many of the banks offering Help to Buy mortgages do not offer an option for remortgaging. But with almost all banks offering competitive product transfer rates to stay with them, it is often cheaper and simpler to remain with the existing lender and renew than to remortgage anyway.’ The Times, 8 September 2018

Homeowners face higher mortgage bills from today as banks pass on increased interest costs to their standard variable rate (SVR) customers. Mark Harris of SPF Private Clients, says SVR borrowers could save almost £6,000 a year by switching: ‘With two-year and five-year fixes still below 2pc for those with significant equity in their homes, there are some very competitive rates still available. If a borrower on Coventry’s SVR switched their £300,000 mortgage to a five-year fixed rate from HSBC at 1.89pc with a £999 fee, they would reduce their monthly payment to £1,256, saving £496 a month or £5,952 a year.’ The Daily Telegraph, 1 September 2018

A Times reader wants to know whether he should sell his buy-to-let properties to purchase a family home. Faye Richards from SPF Private Clients, says: ‘Depending on existing debt, rental and personal income, there may be scope to raise equity from your portfolio to enable a cash purchase, or to have a significant deposit and only a small mortgage on the new family home. Existing properties can be remortgaged on a buy-to-let basis on interest only to reduce monthly costs. This would allow a surplus from rent, potentially providing an income. Income tax and running costs will impact this income, however, and if they were to be sold, capital gains tax may need to be factored in.’ The Times, 8 September 2018

Concerns over increased mortgage rates are not limited to residential customers – landlords are also grappling with a rising interest-rate environment. Lenders are tempting them with 10-year fixed-rate mortgages. Mark Harris of SPF Private Clients, says: ‘While we are seeing more 10-year fixes in the residential space, they are far less common for landlords. However, borrowers should ensure they don’t lock in for too long or face a hefty early repayment charge to get out of the mortgage during the fixed period if they need to sell during that time.’ The Daily Telegraph, 31 August 2018

Homeowners up and down the country flocked to secure cheap remortgaging deals ahead of the Bank of England’s interest rate hike this summer, according to UK Finance. Mark Harris of SPF Private Clients, says: ‘August’s interest rate rise was well-flagged in advance, with many borrowers taking the opportunity to remortgage onto a fixed rate and save themselves from a hike in mortgage payments. Lenders continue to court remortgage business into the autumn, with Barclays one of a number of banks cutting pricing on its remortgage products.’ This is Money, 12 September 2018

The total number of residential property transactions between July and August increased by 1.3 per cent to 101,800, according to HMRC. Mark Harris of SPF Private Clients, says: ‘The signs are promising for a decent end to the year with a competitive lending market and remortgaging proving popular for residential borrowers. Buy-to-let has been hit hard with tax and regulatory changes but it is proving to be fairly resilient. While there have been a noticeable drop in novice landlords, many experienced investors continue to add to their portfolios.’ Your Money, 21 September 2018

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