The chancellor is expected to unveil a mortgage guarantee scheme that aims to help first-time buyers get their foot on the property ladder in next week’s budget. Rishi Sunak is attempting to incentivise lenders to provide mortgages to first-time buyers, along with current homeowners, with deposits as low as 5% on properties worth up to £600,000. The government will offer lenders the guarantee they need to provide mortgages covering the remaining 95%, with details set to be unveiled on Wednesday. The scheme will be subject to standard affordability checks, and is expected to launch in April. Low-deposit mortgages have virtually disappeared due to the economic impact of the coronavirus pandemic, the Treasury said as Boris Johnson announced he wanted “generation rent to become generation buy”. “Young people shouldn’t feel excluded from the chance of owning their own home and now it will be easier than ever to get on to
Read more →Portfolio mortgages can simplify finances for overseas and expat landlords holding property in the United Kingdom, as that’s what they’re primarily designed for. With recent news regarding tax and stamp duty laws, overseas landlords are forever looking at methods to increase their investment income. Further changes in 2020 will lower the amount of tax relief a landlord can claim. For instance, overseas landlords won’t be able to offset interest as an expense like previous years. For landlords with multiple properties, or landlords aiming to grow their portfolios, a portfolio mortgage could be something to consider. Placing an entire portfolio under one mortgage can be beneficial, especially with a large number of properties. What is a portfolio mortgage? A portfolio mortgage allows overseas and expat landlords to place all of their buy to let mortgages under one mortgage. Portfolio finance is treated as a single mortgage account. Rather than having separate buy
Read more →In 2018, the average UK tenant spent 52% of their disposable income on rent and with rental payments so high it makes saving for a deposit to purchase a flat or home very difficult. There is however a scheme that provides an option for those who wish to own a property but do not have a large disposable income or savings. The Shared Ownership mortgage scheme allows applicants who are not able to currently afford to buy a property with the option to ‘purchase’ a share of a property whilst paying rent on the remainder. To be eligible for this scheme your household income must be £60,000 or less (£90,000 or less in London). Also, you need to be approved by the Housing Association and often you can only buy in the borough that you currently live in. An Example You buy a 25% share in a £500,000 property for £125,000. Your
Read more →A UK new-build property Should you buy a UK new build property or an existing property already built? You often see news in the press moaning that not enough new homes are being built in the UK and that there’s a vast shortage of housing. In fact, government figures show 162,180 were built last year (2018). That isn’t enough to fix the housing shortage but it does mean most of us will come across a brand-new property when we are out house hunting. Here are some pros and cons of buying a brand sparkly UK investment property new home straight from the developer against an existing home already built and for sale on the market. Pro’s of buying a new build property in the UK Unpack and go – A new home is a blank canvas with fresh tiling, paintwork, kitchens and bathrooms. This means there should be very little,
Read more →Getting A UK Mortgage With Foreign Income If you are a British expat living and working overseas and you are paid in a non sterling currency, you may experience difficulty securing a mortgage on a UK investment property property or remortgaging with an existing lender. The positive news is that there are lender options for UK expats and foreign nationals when it comes to remortgaging or purchasing property in the UK. It is possible to get a UK mortgage from abroad using foreign currency or a combination of Sterling and a foreign currency, typically US Dollar or Euro. Foreign currency mortgages are available Despite the seemingly overly restrictive regulations and the influence they have over traditional lenders’ appetite for lending to those with foreign currency income, it is still possible to access the funds you need to purchase a property in the UK. The lenders who are willing to provide
Read more →What is life insurance? Life insurance can pay your dependents money as a lump sum or as regular payments if you die early whilst you are working and in employment. It’s designed to provide you with the reassurance that your dependents will be looked after if you’re no longer there to provide for them. The amount of money paid out depends on the level of cover you buy. You decide how it is paid out and whether it will cover specific payments, such as mortgage or rent. You may need to think about whether receiving a payout will affect any means tested benefits your dependents might otherwise be eligible for. There are two main types of life insurance: Term life insurance policies: run for a fixed period of time (known as the ‘term’ of your policy) – such as 5, 10 or 25 years. Some policies can run longer upon
Read more →Why Invest in Property in the UK? Why Should Overseas Investors Invest In UK Property? Bricks and mortar have long been seen as a prudent way to invest with the phrase ‘an Englishman’s home is his castle’ revealing just how deeply entrenched in the British psyche investment property is. The UK investment property business is a financially rewarding and exciting business which can produce great rewards. It can produce a consistent income, even once you have retired. Historically, property prices have been on a strong upward trend since the 1970’s despite some volatility during the recession and credit crunch . New research has revealed that houses prices have grown faster in the UK than any other Europeans country. In fact, since 1988 house prices have gone up by a staggering 333%. This represents an average rise of 12.3% per year. Many home owners have benefited from the rising housing market
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