Busy time if wanting a mortgage
New monthly advice column
Wel co me t o t he f i r s t co l umn we will be writing each month to deliver the latest mortgage updates and news.
I will also be providing you with an insight into how mortgages work and some helpful hints and tips to consider when buying a new home or remortgaging. So who are we?
Well my name is Kevin McCarthy and I am the business owner of Mortgage Advice Bureau East Kilbride.
We have a team of three at the moment, there’s myself and two highly experienced Mortgage and Protection Advisers i n Stephen Murray and Scott McIlwraith.
Between the three of us, we have over 30 years of experience in the financial services industry and have been providing advice on all things property related to residents in East Kilbride and beyond for well over a year now.
T h i s we e k ha s p r o b a b l y b e e n t h e b u s i e s t p e r i o d o f mor t g a g e a c t i v i t y i n r e c e n t m e m o r y , ma i n l y d u e t o t he announcement t hat t he S c ot t i s h Government’s First Home Fund scheme was ending last Friday.
Many people all over the country were scrambling to get offers put in to Estate Agents and mortgage applications were being submitted at record levels.
The First Home Fund was a scheme provi di ng up t o £ 25, 000 t o f i r s t t i me buyers towards a deposit on new and older properties and has helped thousands of people get that elusive first step on the property ladder.
Although it’s ended now, the great news is that it’s coming back in April next year, so I would encourage any first time buyers looking to purchase next year to get some advice on how it works and what your mortgage options are prior to that.
Now t hat t he Fi r s t Home Fund has ended, it’s going to be more difficult to obtain a mortgage with a small deposit for the time being, as you’ll likely need 15 per cent deposit or more as it stands.
Lenders have really t i ghtened t heir belts with higher loan to value products since March, but this is an ever changing environment and we have seen some lenders dip in and out of the market with products requiring only a 10 per cent deposit.
There is still the option of using the ‘Help To Buy’ scheme which only requires a five per cent deposit but is restricted to new build properties valued at £200,000 or less, so that’s always an option until the First Home Fund makes a comeback in April 2021.
Next time I’ll talk about the different types of mortgage products and things to consider when looking for that perfect mortgage to go along with your new home.
Thanks for your continued support in a local business and take care.