Mortgage News

• Stamp duty changes introduced in 2016 which saw an increase in the thresholds and a surcharge introduced for 2nd properties has slowed purchase market down, there has been a drop of 45% in house sales in some areas with high end properties the worst hit, with stamp duty now 12% on the portion above £1.5m.
• House prices predicted to fall in 2017 due to the downturn in sales following stamp duty increases and uncertainty following Brexit.

However:

• Some of the lowest mortgage rates ever witnessed are currently available with 2 year fixed rates at 0.99% and 5 year fixed rates at 1.84%, perfect time for clients to review their options i.e. switching from lifetime trackers to a low fixed rate
• Majority of business currently is for clients switching to fixed rates, re-mortgaging, further borrowings and 2nd charges with clients choosing to stay in their home and carry out home improvements and renovations.
• We still have interest only lenders in the market for clients with the right income and equity.
• Option for longer term mortgages to ease affordability (up to 40 years).
• Various options for first time buyers to get onto the property ladder – help to buy schemes in London with a 40% interest free loan from the government for the first 5 years (20%outside London) or joint borrower sole proprietor mortgages whereby a relative can join applicant on the mortgage for affordability purposes but will not be a registered legal owner so client avoids surcharge in stamp duty.

YOUR HOME MAY BE AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

For more information, please contact our mortgage manager Pauline Aldridge on 020 8371 5246 or paldridge@sgfinancialservices.co.uk