Peter Davies joins Mr Mortgages
Mr Mortgages is delighted to announce Peter Davies has joined our ranks. Formerly of Bradleys estate agents, Peter brings with him a wealth of expertise in arranging mortgages and insurance.
Peter can be contacted via the office on 01803 872109 or his mobile number 07590 106680
The Mortgage Market Review is a set of new rules that mortgage lenders have to abide by when determining how much you can afford to borrow.
Under the new regime, almost everybody will have to take mortgage advice.
Currently, just over half of applicants take advice from a mortgage broker. The remainder go directly to their bank or building society, which will sell them a home loan from their own range without any advice.
You can still go direct to a mortgage lender after April 26 but that bank or building society will then have to give you advice.
Note, though, that your bank's in-house adviser will not be independent, because staff are able to discuss only the bank's own products.
It makes far more sense to go and see an independent broker, who can offer advice on almost every mortgage on the market.
A good broker should be up to speed with the MMR to help things go smoothly.
The Help to Buy Mortgage Guarantee scheme is now launching on the 7th October 2013
What is it ?
Basically the government will be guaranteeing a certain percentage of someone's mortgage to a lender, which will enable the lender to offer 95% mortgages at competitive rates. The buyer will still own 100% of the property
Therefore you will be able to buy with only a 5% deposit, something that has been restricting the mortgage and housing markets for the last several years.
Who can apply ?
To qualify for the scheme, you will need to meet the following criteria:
What lenders are involved ?
As the government brought the scheme forward by 3 months, not many lenders were prepared for this. However as the weeks go one, more and more lenders will offer products, using an independent broker to find the best deal is a must.