29 October 2018

Press Coverage

Despite mortgages becoming more expensive, borrowers can still cut their mortgage term and pay less for their home. Mark Harris of SPF Private Clients says switching could shave years off a mortgage term: ‘Those who sit on their lender’s SVR spend many more years paying back their loan than is necessary.’ SPF Private Clients outlined how a borrower could be mortgage free sooner than expected: someone with a £200,000 outstanding mortgage on a property valued at £400,000, currently paying 4.24pc with 23 years remaining on the term – if they switched to a 10-year fix with the Coventry at 2.35pc, they would pay their mortgage off five years early and save £67,985 in interest. The Daily Telegraph, 2 October 2018

Some buyers are blanching at higher stamp duty, choosing instead to remain in their homes and spend on expansion or improvements. For those who press ahead with another property purchase, though, a bigger mortgage may be needed to cover the costs of higher stamp duty, says Mark Harris of SPF Private Clients. The Financial Times, 12 October 2018

A Times reader wants to know whether he should buy a home for his student daughter. Elena Todorova from SPF Private Clients, says: ‘A Bath Building Society mortgage is up to 100 per cent LTV, so this is worth exploring. The loan can be in the daughter’s name, with Dad as guarantor, or in joint names. If the mortgage is more than 80 per cent LTV, Bath will require a collateral charge over the parents’ property. There is a caveat: the property must have no more than three bedrooms and daughter will be allowed to let two of the rooms. Rates start from 4.69 per cent for two years and the loan is interest only.’ The Times, 20 October 2018

In a slowing property market, lenders are battling to offer the best deals of the decade in a new mortgage war inspired by Brexit. Mark Harris of SPF Private Clients says that despite rising Swap rates, the interest rate at which banks borrow from each other, ‘lenders continue to cut mortgage rates to attract potential buyers who may be waiting to see how Brexit plays out’. The Times, 29 September 2018

The number of first-time buyer mortgage approvals hit 35,550 in August, according to UK Finance. Mark Harris of SPF Private Clients, says: ‘First-time buyers really are proving to be the lifeblood of the housing market, responsible for keeping the number of overall house purchase completions at a stable level. Lenders continue to offer competitively-priced high loan-to-value products to attract them and with property prices softening in some areas, there are good opportunities for those trying to get on the ladder for the first time.’ City AM, 16 October 2018

Remortgaging approvals jumped to a nine-month high in August, according to the Bank of England. Mark Harris of SPF Private Clients, says: ‘With the number of mortgages for house purchase down in August, this may partly explain why a number of lenders continue to cut the cost of their best mortgage deals, despite last month’s interest rate rise. With many would-be buyers holding off making a decision until Brexit is resolved, lenders are battling for a relatively small pool of borrowers.’ The Metro, 27 September 2018

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