Stamp Duty Hopes

Posted on November 20th, 2017

With just days to go until Chancellor Philip Hammond unveils his Budget speculation is mounting that a Stamp Duty holiday may be on the cards. The Chancellor is under pressure to cut the tax for first time buyers in order to help more borrowers get on the property ladder. And several recent studies have shown just how much of an obstacle Stamp Duty actually is.

A report by the Centre for Economics and Business Research revealed Stamp Duty is preventing a staggering number of house purchases a year.  The study claimed an extra 146,000 sales could have taken place over the past five years had buyers not been deterred by the tax.

Meanwhile a study by the specialist bank Aldermore found one in five people who have bought a house within the last three years would be willing to buy again if Stamp Duty was cut. House movers are essential for the success of the housing market because, as people move up the property ladder, they free up more first time buyer friendly homes for new buyers. If Stamp Duty is making people stay put this will be having a huge impact on the market.

All eyes are on you Mr Hammond. We watch with baited breath!

A mortgage is a loan secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage.


What’s happening with larger landlords?

Posted on November 16th, 2017

There have been plenty of changes in the buy to let world over the last few years and for landlords the market is now very different to what it once was. Perhaps the biggest change to the sector came in last year when the roll out of a new system for tax relief came into effect which essentially limited the amount of relief a landlord could claim on the money paid as interest on their mortgage. That, coupled with the 3% surcharge in Stamp Duty on investment properties and second homes hit the sector hard, financially. But the latest round of regulation in the sector could cause problems in other areas – namely time.

The property investment world moves quickly and as such landlords often need fast decisions on finance applications. However, the latest rules to come into play from the Prudential Regulation Authority (PRA) have meant the application process for landlords with large portfolios can be quite cumbersome.

Under the new rules lenders must obtain the financial details of every property in a landlord’s portfolio when he or she applies for a new mortgages and doing so can take some time.

If you’re a landlord and you’re looking to increase your portfolio or remortgage your current properties call in and see us at We Know Mortgages and we’ll help you navigate the changes with as little disruption as possible.

A mortgage is a loan secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage.

Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from taxation, are subject to change.

The Financial Conduct Authority does not regulate most forms of buy to let mortgage.


Interest rates rise

Posted on November 7th, 2017

For the first time in 10 years, the Bank of England base rate has risen and, understandably, consumers are feeling a little concerned. So what does it mean for you?

Well, that all depends on what type of mortgage you have.
If you have a fixed rate mortgage you won’t see any change. As the name suggests fixed rate mortgages are set at a certain rate for a fixed period of time and are therefore unaffected by the rate rise. Once that term expires however you’ll revert to your lender’s Standard Variable Rate (SVR).

SVRs and tracker rate mortgages are affected by the Bank of England base rate. When the base rate rises so too do mortgage rates and when it falls mortgage rates fall too. The rate rise means anyone on their lender’s SVR or tracker mortgage could see their mortgage repayments increase. You may have already been contacted by your bank to let you know of any changes.

Despite the rise there are still some very attractive mortgage rates on offer so if you’re concerned about your mortgage now would be a great time to contact an experienced broker, like the team at We Know Mortgages, to find out if you could be on a better deal.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.