Mortgage Blog

The rush to remortgage as interest rates almost treble

Posted by John Yerou on June 16th, 2022 in Blogs, Mortgage Blog

On Friday 4th June, 2021, I reported Halifax’s remortgage rates around the 1% mark. A year on, mortgage interest rates look very different. The average two-year fixed rate is now almost three times more expensive than it was then.

Inflation, and the rising Base Rate to combat it, continue to climb. Here’s what you can do to lock in a rate to see you through these turbulent times.

Rising mortgage interest rates: what’s the story?

The Bank of England’s Monitory Policy Committee met on 4th May and raised the Base Rate again. They voted by a majority of 6-3 to increase Bank Rate by 0.25 percentage points, to 1%.

Those members in the minority weren’t against raising the base rate. Rather, they’d have preferred to increase it by 0.5 percentage points, to 1.25%!

At the subsequent meeting on June 15th, those in the minority got their wish. From June 16th (today) the Base Rate stands at 1.25%.

This has fuelled the expectation that rates will continue to rise throughout the year. It’s worrying, because lenders have already almost trebled their interest rates in a year.
Continue reading about  The rush to remortgage as interest rates almost treble

Ideal Buy-to-Let Contractor Investment Window Open (For Now)

Posted by John Yerou on February 25th, 2022 in Blogs, Mortgage Blog

For years, investing in property has benefited contractors looking to squirrel away their profits.

That same Buy-to-Let market is flourishing despite (or because of) rising interest rates and inflation.

Today, we take a quick dive into the figures that back up the trend. Moreover, what they might mean for rental income over the next couple of years.

We also gauge reaction from the industry, and how that bodes for the buoyant, bustling buy-to-let investment opportunity.

Table of contents

• UK Finance figures (housing market, whole);
  • 2021-23 overall gross lending forecasts (GBP);
  • 2021 homebuyer transactions (volume);
  • 2021 borrowing catalysts;
• Buy-to-Let report, Shawbrook Bank;
  • Factors indicating imminent Buy-to-Let growth;
• Industry reaction:
  • Joshua Elash, MT Finance: bigger yields in the pipeline;
  • Aaron Strutt, Trinity Financial: lenders compete at criteria level;
  • Propertymark: availability will restrict market performance;
  • Gerard Boon, Boon Brokers: Ltd Co. Buy-to-Let applications rising;
• Interest rates could drive a surge in BTL remortgages;
  • This window of opportunity won’t stay open for long.

Continue reading about  Ideal Buy-to-Let Contractor Investment Window Open (For Now)

Mortgage Strategy Awards Nomination: Best Specialist Broker/Distributor

Posted by John Yerou on January 14th, 2022 in Blogs, Mortgage Blog

7^th April, 2022:
update to our previous longlist announcement

Freelancer Financials makes the shortlist for Mortgage Strategy’s “Best Specialist Broker/Distributor” 2022

I’d like to thank everyone who took the time out to vote for us for this most prestigious accolade. You’ve made us so very proud.

Enough of you voted for us to enable us to make the shortlist.

On the back of that, we’ve had an interview with the Mortgage Strategy panel.

And, when they announced the longlist results earlier this week, we were overjoyed to see our name on the shortlist!

We’re not counting any chickens yet. We’re up against five other specialist brokers of varying sizes and who serve various markets.

The winner will be announced on the 25^th of May during the Mortgage Strategy awards ceremony at London’s Grosvenor House hotel. We’ll let you know how we get on but, until then, many thanks again. We couldn’t have progressed this far without your support. #Legends!
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Using Umbrella Payslips to Get a Worthwhile Mortgage

Posted by John Yerou on December 3rd, 2021 in Blogs, Mortgage Blog

There was a time when contractors chose Limited Company payment structures over umbrella companies. That’s because, working through a PSC, contractors retained more of their income than through an umbrella.

Even after paying an accountant, PSCs still made — and continue to make — financial sense. That is: from an income retention perspective.

And, yes: the difference in income persuades many contractors to overlook the risk of IR35‘s wrath.

Behind the scenes, we’ve also worked with many lenders to help them understand Limited Company day-rate contract income. So much so that our clients expect their application to breeze through the appraisal process.

Now, with another helpful nudge, many lenders are considering umbrella payslips, too.

So, up to a point: all good in the ‘hood.

But, in our article today, I focus on the unforeseen struggles contractors who switch to an umbrella company face with mortgage lenders. It’s an addendum to our recent post on ContractorUK, Why your umbrella payslip influences your mortgage application.

As ever, enjoy, comment, feedback to us. We’re only too happy to help:
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Sub-1% mortgages gone in a week, despite unchanged base rate

Posted by John Yerou on November 8th, 2021 in Blogs, Mortgage Blog

Even before the Chancellor dropped the mic on last month’s budget, mortgage lenders were putting up prices.

The rises began, in part, thanks to the Governor of the Bank of England.

He stated that the central bank “[would] have to act” in the face of rising inflation.

Lo and behold, we have that scenario: inflation hovering around 3%.

However, he chose not to raise the base rate when he had the chance, last week.

This has left many commentators exasperated, but it might at least slow the rise in mortgage interest rates…
…might. No promises.

Continue reading about  Sub-1% mortgages gone in a week, despite unchanged base rate