Embarking on the journey of homeownership is a significant milestone. For many of us, particularly those between the ages of 25-50, owning our first home is a dream come true. However, the question that often lingers in our minds is, “Is now the right time to buy my first property?” Let’s delve into this question and explore the potential risks and rewards.

Timing the Market

Firstly, it’s essential to understand that timing the real estate market perfectly is nearly impossible. Prices fluctuate due to various factors, including worldwide politics, economic conditions, interest rates, and supply-demand dynamics. However, what’s more important is your personal financial readiness. If you have a stable income, a good credit history, and can comfortably afford mortgage payments, you’re in a strong position to consider buying your first property.

Current Market Conditions

In 2023, despite a slight uptick in mortgage rates, they remain relatively low historically, making it an opportune time for prospective homeowners. Moreover, with its independent, fee-free mortgage advice, Conran Mortgages can help you navigate these complexities and secure a favourable deal.

Potential Risks

While homeownership comes with many benefits, it’s crucial to be aware of potential risks. These include potential interest rate rises, which could increase your mortgage payments, and possible fluctuations in property values. Furthermore, as a homeowner, you’ll be responsible for all maintenance and repair costs, which can add up.

Reduce the Risks with Expert Guidance

While these risks may seem daunting, they can be mitigated with careful planning and expert guidance. At Conran Mortgages, we specialise in providing comprehensive, personalised advice to first-time buyers. We can help you understand how much you can afford to borrow, find a suitable mortgage deal, and guide you through the entire process, making it stress-free and straightforward.

The Rewards of Homeownership

Despite the risks, the rewards of homeownership are significant. It offers stability, the potential for capital growth over the long term, and the freedom to make your house a home. Moreover, you’re building equity with each mortgage payment (assuming you opt for a Repayment mortgage) – a valuable financial asset.

In conclusion, deciding whether now is the right time to buy your first property depends largely on your personal circumstances and financial readiness. While risks are involved, with the right guidance and preparation, the journey to homeownership can be exciting and rewarding.

If you’re considering buying your first property, reach out to us at Conran Mortgages. Our experts are ready to provide personalised advice and support to help you navigate the path to homeownership. Remember, owning your first home isn’t just about making a financial investment; it’s about investing in your future.

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Quite a title-grabbing headline, huh? Well, it is true; 100% mortgages are starting to make a return.

The last 100% mortgage fizzled out in 2008 as the credit crunch and recession hit the world. Sadly, finance was arguably mis-sold pre-2008 as lenders would offer 125% mortgages to those who could not afford payments over the medium term. We all know the results of this lending policy!

With 100% mortgages gone, borrowers had to find a minimum 10% deposit since 2008 and were penalised with loaded rates where lenders took risk into account. Thankfully, in recent times the gap closed slightly, making it viable for some fortunate First Time Buyers to afford a smaller deposit and monthly repayments. The Bank of Mum and Dad helped many fortunate first-time buyers.

But what about those who didn’t have this help available and had no choice but to become a tenant?

Historically, Shared Ownership and Help-to-Buy schemes were available, but choices on where and what you could buy were generally outside the buyer’s control; for example, to take advantage of HTB, you had to buy a new build home.

The government is presently discussing a future Help-to-Buy style solution, which could take a long while to launch, so in the meantime, lenders are finding solutions to help.

Today, one of our supportive lenders has launched a mortgage product targeting those in the Private Rented Sector.

So long as the applicant is over 21, a first-time buyer and can demonstrate they have paid rent for the past twelve months, along with paying the household bills, then this lender could be the solution for you.

Further to the above criteria, the lender requires the present monthly rent payments to be above the cost of the new mortgage payment. They won’t lend on New build flats either.

But what about the risk-averse borrower who doesn’t want to risk negative equity should the market turn sour?

Generally speaking, when the market turns, the group of borrowers who are worst affected are those who borrow at the higher loan-to-values and don’t have a backup solution. This can result in this group waiting until property prices bounce back, but in the meantime, they become “mortgage prisoners”. There is always a risk to any borrower; historically, time is the cure in this scenario.

However, this 100% mortgage will allow no more than a 5% deposit and over-payments of 10% per annum. These mortgages will be on a repayment method of paying back the loan, so the bounce-back effect coupled with repaying capital will help this situation and reduce the risk.

The lender is highly aware we have a large segment of society who are fed up with paying back someone else’s mortgage, and their solution is a viable one.

We fully expect many mortgage lenders to launch their 100% mortgage solution shortly, so Independent and Expert advice is essential. We would love to help.

The post 100% Mortgages for Renters… at last! appeared first on Conran Mortgages.

Since the tragic fire at Grenfell Tower in June 2017, selling and mortgaging flats with cladding have been nearly impossible without an EWS1 form (a survey specific to a building which sets out if the building is a fire risk or not) which confirms whether the building is safe.

This has resulted in homeowners in these types of properties being imprisoned, even when it is obvious the risk is low (on some types of buildings, not all). These homeowners, in essence, have become ‘mortgage hostages’. Allegedly, there are 700,000 homeowners affected by this.

When we have been approached by a client whose property has had cladding, there has rarely been an EWS1 form available. The reason is that they need to be signed off by registered fire engineers, which there are not many, thus a backlog causing big time-delays, and they have been cost-prohibitive. We have witnessed costs of between £10,000 and £50,000!

However, several lenders from Britain’s largest banks are now considering mortgage applications thanks to guidance from the Royal Institute of Chartered Surveyors (RICs).

Generally, on the basis there are plans to remove any dangerous cladding, these lenders will lend on flats that are eleven meters or above (some lenders will consider an application for five storeys and above). There is a government guarantee that this type of property owner will not have to pay for cladding removal (eleven metres and above). However, lending may be tricky under these circumstances unless the developer has signed a contract with the government confirming they will undertake such works.

It is a noteworthy point that most of these willing lenders may not require an EWS1 form. However, they will reserve their position, of course.

Many people have been forced to change their life plans and pause their family aspirations by being unable to upsize, ultimately, stuck in limbo due to cladding! With mortgage lenders’ new lending criteria, this could allow these guys to get on with their lives.

If this affects you, and you want to know more or see if lending is a possibility, please do get in touch.

The post Are cladding challenges a thing of the past? appeared first on Conran Mortgages.

With the easing of lockdown, and opening up of the housing market in England, perhaps now’s the time to chat about your borrowing needs. And, possibly take advantage of the excellent mortgage deals on offer – further aided by the Bank of England’s Base Rate sitting at 0.1%!

We’re currently busy working on behalf of our customers, and are available to discuss any borrowing (or protection) requirements you may have. Should you want to move property, purchase your first home, or simply want to stay where you are, but need to identify a more suitable deal from the whole of mortgage market. Remember that we are an independent FEE-FREE mortgage expert!

Download our June/July 2020 Issue – Full of valuable information about the current market status during this Covid-19 pandemic and how we can offer a FEE-FREE Mortgage advise.

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