What’s happening in the mortgage world this week?
Well its been a busy week this week to say the least! Borrowers are really out there looking for a hot property deal and lenders are coming in and out of the market like the hokey cokey!
The mortgage market has seen a huge spike in interest as borrower’s are looking to get the 90% LTV products as they come on and off the market – some of the real big hitters in the market like the HSBC and Virgin have been adding and taking away 90% LTV products to try and retain their service standards during the busy times. The removal is not necessarily a reflection of risk exposure more likely the inability to service the large volumes in addition to system overload!
Hot Topic’s
Getting a mortgage deal in these uncertain time’s
With the ever changing market and uncertainty with people’s incomes at present getting a mortgage can be a bit trickier than normal. That is where a good broker can come into their own – we act as a middle man with the lenders to navigate the lending criteria and look for a lender that will actually lend – there are still some cases that can’t be placed however this is usually when all avenues have been exhausted with the Lenders. The best brokers don’t charge a fee unless they can place a case and a broker with a large panel of lenders to choose from is in a far better position than a restricted panel lender.
Should I do my own Approval in Principle Online?
Well it depends on your experience with financial matters and to be honest if your speciality is engineering – then stick to that and let the broker’s do the work! I say this because you could inadvertently fill in the data incorrectly and either get an Approval in Principle that turns out to be invalid when you come to apply or find that you are short on income when it comes to actual event. Navigating some affordability calculators can be like circumnavigating the North Sea – its very easy to make a mistake and you could find yourself disappointed when you can’t get the property you want when the data turns out to be incorrect.
Is it worth getting an Approval in Principle in Advance of finding a property?
YES – this put’s you in prime position with the estate agents when you want to put an offer in – it proves affordability and in most cases they won’t accept an offer without proof of funds. Getting a ‘soft’ check done doesn’t affect your credit and when it comes to apply you can always look to a different lender. If the AIP is done via a broker they should check and verify your documents BEFORE they complete the AIP to ensure the data is correct.
Protection Zone
With application numbers increasing the number of protection applications are also on the rise – people are more aware of the consequences of no cover being in place.
Top three risk areas to consider
Life cover to pay a lump sum on death of the borrower – leaves the other party and family debt free
Critical illness cover – Lump sum on diagnosis of a critical illness – your choice of paying the mortgage balance or completing your bucket list!
Income protection – this has really come to the fore with borrowers wanting to provide themselves with private sick pay – is totally affordable and can take the stress out of becoming ill.
Question of the week?
When was the last time you updated your will or reviewed your protection? If it’s been a while now be the ideal time to take a look and get a free protection review with an adviser!
