So one question we get asked is what happening to the mortgage rates! well if you listen to the mainstream media you'd think we'd be transported back in time to the 1980s when rates were 12/15% !!! Contrary to popular belief there are some good deals to be had.
We have teamed up with our friends at Aqua Mortgages to bring you some early January mortgage highlights, of course, every person's circumstances are different but if you want to know more about what mortgage products are available to you then fill in the contact box and we will get one of the Aqua team to give you a call.
RESIDENTIAL MORTGAGE HIGHLIGHTS:
First Time Buyer
90% Loan to Value 4.84% 5 Year Fixed Rate with a £999 Product Fee. 4.94% 5 Year fixed without a product fee.
85% Loan to Value 4.69% 5 Year Fixed Rate with a £999 Product Fee. 4.79% 5 Year fixed rate without a product fees.
*Rates accurate as of 6th January 2023
**Rates are subject to change at short notice
DID YOU KNOW?
Product fees can be added to the mortgage, although they will attract interest for the duration of the loan.
Gifted deposits will be accepted by most lenders from immediate family to help with your purchase.
BUY TO LET
INTEREST COVERAGE RATIO
Affordability for buy-to-let mortgages is typically assessed by looking at the interest coverage ratio (ICR). This is the ratio of gross rental income to mortgage interest repayments. Lenders typically look for a minimum ICR of 125% (depending on whether you are a lower rate or higher rate taxpayer, or a Ltd Company) calculated using an appropriate stressed interest rate (stressed ICR)
The stress rate is the rate that the lender uses in the ICR calculation and is generally higher than the actual rate you are paying, to cover for future rate rises. This helps the lender to understand if the mortgage is affordable now but also if rates rise in the future.
LANDLORDS INSURANCE – PROTECTING THE CONTENTS
If you have a buy-to-let mortgage, your lender will insist that you have adequate building insurance to cover the cost of rebuilding the property should the worst happen. If you are going to rent out a property furnished which could simply include carpets, curtains, light fittings, and things like fridges or washing machines then you should also consider taking out landlord contents insurance. This will not only cover the cost of replacing or repairing the possessions you leave in the property, but it will also extend to covering damage caused by the tenant. Accidents will happen and not all tenants are as careful as you might like to think.
WHAT ABOUT TENANTS’ POSSESSIONS?
The good news is that landlords are not responsible for insuring their tenant’s belongings – but we would recommend that you let them know that they will need to get their own cover to avoid any potential future argument should something go wrong during the tenancy period.