YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Stevens Financial Services Ltd is an Appointed Representative of Personal Touch Financial Services Ltd, which is authorised and regulated by the Financial Services Authority. FSA no 409368. We normally do not charge a fee for Mortgage Advice, however, a fee paying option is available. Our typical fee is £299. Some of the above products/services may not or are not regulated by the Financial Services Authority. Stevens Financial Services Ltd. Registered in England. Co. Reg. No. 5045806
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Bank of England
Base Rate
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Credit Crunch???
Citizens Advice has released a report that claims dubious advice from brokers, irresponsible lending decisions and aggressive arrears management by sub-prime lenders are driving an increase in mortgage arrears, court action and repossessions.
The report, Set Up to Fail, also shows how the regulation and safety nets currently in place are failing to protect vulnerable borrowers.
Citizens Advice concludes that government policy encouraging more people on lower incomes to buy their own homes, while a laudable aim, can only work if the problems its report highlights are addressed.
TIPS FOR FIRST TIME BUYERS
KNOW YOUR STUFF - Forewarned is forearmed. If you are reading this then you have already made a good move. First-time buyers need to know as much as they can about the market. What's a fixed rate, a tracker or a standard variable rate?
ENLIST THE HELP OF PARENTS - The bank of mum and dad doesn't need overflowing coffers to help. Many young househunters' parents have seen their home's value rise substantially compared to their mortgage and could lend a lump sum for a deposit, enter into a joint mortgage, or act as a guarantor. For advice on how parents, relatives or elder siblings can help first-time buyers - call us on 08452 602 302.
LOOK AT AFFORDABILITY - Traditionally mortgage lenders have offered 3 to 3½ times borrower's salary, or 2½ times joint earnings. But wages are not the only factor in affording mortgage repayments. In recognition of good prospects for sustained Bank of England base rates of around the 5% mark – the current rate is 5% - some lenders are extending borrowing through affordability measures.
JOIN FORCES - Young couples have it easier thanks to their combined wages. But if you haven't found 'the one', or are in a relationship but fear what might happen if things don't work out, there is the option of teaming up with a friend. Pool your deposits, work out a legally binding contract in case things go pear-shaped and apply for a joint mortgage to boost borrowing power.
DON’T PANIC - Interest rate cuts could be on the horizon and first-time buyers can bargain for good discounts on asking prices, as they are not part of a chain. Hold tight, get saving and cut back on unnecessary expenses.
Life Cover Premium Reductions - Life insurance premiums have plummeted in recent years and even those who already have cover could save by switching to a new deal ... Could you?
