Trust us to pick you the right mortgage…
With so many mortgage products from so many mortgage providers it pays to take independent advice from the whole of the market.
We are Limetree Financial Services; mortgages are our business
We've changed…
Same super
customer service,
new name.
There is a growing increase in the number of homeowners leasing their roof space to specialist companies for the installation of solar panels. But is this arrangement making their property un-mortgageable?
The Council of Mortgage Lenders (CML) has issued guidance on what solar panel leases should, and should not, contain, if they are to be acceptable for mortgage purposes.
One crucial detail: if a property has a solar panel lease which does not contain a mortgage break right, then lenders will be unable to accept the property as security.
Because some situations are in doubt, all cases subject to solar panel leases will not therefore be eligible for the free standard legal fees that CML currently offer to remortgage customers. The reason is that these cases will require their panel solicitors to review the lease first to check that it complies with CML guidance.
If you are leasing your roof to a solar panels company, or are intending to do so, and want to remortgage, we recommend that you obtain this information as early as possible in the mortgage application process.
For further information on solar panel leases read the CML guidance.
For further information on mortgaging, and finding the best deal for you from the many available, contact Limetree Financial Services. It’s free to find out.
No Comments »
If you are sitting on an interest-only mortgage with a low tracker rate, you might be in for a double shock.
Everyone expects interest rates to rise at some stage. Many clients will then look to remortgage. But when they do, the monthly repayments are likely to be much higher, as lenders restrict the ability to borrow on an interest-only basis.
To make matters worse, Santander announced recently that they will not accept applications for interest-only mortgages for over 50% of the property value, which is low. And other lenders are also restrictive – lending a maximum of 66%, or at most 75%, loan to value.
Another problem is that many interest-only lenders also require that the equity is over £150,000. (Equity is the amount of money that you would have left if you sold your property and paid off the mortgage).
Case study: interest-only remortgage
Let’s say you have a £250,000 property with a £150,000 interest-only mortgage, and as the rates rise you want to remortgage to find a better deal.
You would not be able to remortgage interest-only with Santander because you would be borrowing 60% loan-to-value.
And although this would be a LTV below 66% or 75%, the following lenders also would not (currently) lend to you: Nationwide, Woolwich, Cambridge Building Society, to name just three. That’s because you would fall short of £150,000 of equity.
The double whammy awaiting interest-only borrowers is the rise in rates combined with an increase in monthly repayments – as many of them will not qualify for interest-only and will have to start repaying capital as well.
But all is not lost. Contact Limetree for a free chat about your mortgage options. We are truly independent brokers who find the best mortgages from across the whole market, and may be able to find you a way to continue with interest-only.
No Comments »
The latest investment report from Prospect Wealth Management
In summary:
- The European Central Bank has restored confidence in European markets with its long term bank financing, so we see more stability in European bond and equity markets in the months ahead.
- Economic news still points to improving growth, despite the rise in the oil price.
- UK bonds are vulnerable to a lack of further quantitative easing – we are selling our remaining gilts in favour of short maturity corporate bonds.
- Equities are technically in a bull market and we see scope for further gains in coming months – we are overweight equities.
Download the full Investment Prospects March 2012
Prospect Wealth Management brings the highest standards of professional investment management to the individual investor, charities and trusts.
No Comments »
I am pleased to announce that the Limetree Financial Services is expanding, and we currently have vacancies for mortgage brokers.
We have positions available for both employed and self-employed roles, depending on experience.
Details are on the Jobs page. At Limetree it is as much about ambition, motivation and a strong work ethic as it is about qualifications and experience.
If you want to join the Limetree team, and think you can offer the highest levels of service and advice to our clients, please get in touch.
No Comments »
Most people know what a variable rate mortgage is. It is a mortgage where the interest rate on the loan is regularly adjusted by the lender. It may go up or down, based on whatever the rate is linked to, or at the lender’s discretion.
The knock on effect is that your monthly payments may fluctuate. People arrange variable rate mortgages in the hope of benefitting from lower rates, although the rates can of course go up as well as down.
But most people are only aware of one type of variable rate, when in fact there are three.
Tracker mortgages are guaranteed to follow the Bank of England Base Rate. When the base rate changes, the tracker interest rate changes by the same amount.
Discount variable rate mortgages have an interest rate where a discount is applied to the lender’s standard variable rate (SVR) for a set period. It moves up and down to the same degree as the SVR. A lender’s SVR is influenced by the movement of the Bank of England base rate, but not exactly. Mortgage lenders use their own discretion to set the rate.
Libor mortgages track the London Inter-Bank Offered Rate. This is the rate at which banks lend money to each other in the money markets. Most Libor mortgages have a three-monthly rate review but are not a liable to change as the other two.
If you have decided to go for a variable rate mortgage, you still need to choose between the different types. We are happy to advise you to find the product that suits your needs the best. There is no charge for talking to us – simply get in touch.
No Comments »
