Myself and my Vantage Mortgages team are expert mortgage advisers (friendly too!) and we love nothing more than helping people secure their dream homes, that in some cases they didn't think was possible.
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Vantage Mortgages Ltd is an Appointed Representative of PRIMIS Mortgage Network which is a trading name of Personal Touch Financial Services Limited. Personal Touch Financial Services Limited is authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate most Buy to Let Mortgages.
Great video, thanks! Would this process be the same for moving out of a shared ownership property into a shared ownership new build (building due to start at the end of 2024) and I’m not sure when to start the process
Hi, yes similar, but it is always tricky when buying a new build when it comes to timing. Finding a buyer that will wait is hard, it is sometimes worth breaking chain if you can although that is not always an option!
Hi, sorry not quite sure what you mean? A second property if it is a buy to let generally doesn't need to be factored in for a new residential mortgage as long as the rent more than covers the mortgage payment. hope that helps, if not feel free to get in touch! www.vantage-mortgages.co.uk
@@mortgageadvice.vantageI was meaning the rule if you own 2 propertys that you have to pay tax on the sale of the second property within 30 days. If your selling and also buying around the same time do you technically have 2 propertys to your name.
Hi, might be best to chat this one through properly. The tax you might pay on a second property sale would be capital gains tax if you have made a profit on it over time but I think I need to understand your situation more to give a proper answer! feel free to get in touch on the website www.vantage-mortgages.co.uk or email me adam@vantage-mortgages.co.uk
Out Mortgage was declined by two banks. Both brokers have no idea why, we did a national hunter check, cifaq check and both our credit scores are great. We earn more than enough and also have a big deposit we are so confused.
Oh that is odd! This can sometimes happen but it is rare. Sometimes it is just "internal score" which is not very helpful! which lenders have you been to? it may be worth trying someone a little more flexible
Do arranged overdrafts and optional spending affect mortgage application - for example my current mortgage is low although I spend money on clothes or nice things , trips etc… because I can. Obviously I were to move to a higher mortgage I can stop any optional spending to manage my monthly affordability although the spending from previous months will be evident on my bank statements. Hope that makes sense
Hi! I was offered a loan and would be able to pay Help to buy in my year 2. our house price went up by 10k in 18months. Am I allowed to pay help to buy with another loan? The lender is aware i am loaning to repay “other lender”. I dont want to remortgage at the moment.
Hi, I don't see why not but you may struggle to get a personal loan for enough? You could maybe borrow more from your existing lender if you have enough equity but that is sometimes tricky too. The best way is by remortgaging to a new lender but that isn't always the best thing for you if you are tied in at the moment!
@@mortgageadvice.vantage Hi! Thank you for your response! We are planning to pay early next year. Personal loan would just be about 10k, the rest would be covered by our savings. They gave us 7% APR. I think it wouldnt be too bad is it?
Helllo, so when I want to pay off my HTB share, do I have to go through the process of showing my savings for 6 months, my job offer etc? Or can I get the HTB share wrapped up in my remortgage offer from the same lender? My mortgage is renewing in 6 months and wanted it to swallow the HTB share, thought it's easy if I stick with the same lender?
Hi, You would maybe think that wouldnt you but it is often easier to just do it all in one process with a new lender! Then we get your income proof and everything all ready as we would anyway and do one application. Staying with the same lender and borrowing more can be a bit of a pain so if your rate is ending anyway it makes sense to swap! We can find the best new lender for you and take care of the swap over.
Thanks Adam, I am currently in year 3 of the help to buy loan (so interest free). When we bought our home in Sep-21, interest rates were at historic lows and house prices were likely set to continue increasing. So our plan was to remortgage to pay off the equity loan in year 5 (no sooner, due to our affordability). However 3 years in, interest rates have shot up to 5-6% and it seems house prices are flat to down (depending on what you read). Whilst I understand this means paying off the equity loan now might be a good idea, you would then be remortgaging the property when rates are 5-6% (vs 1.2% in 2021). This would drastically increase our monthly payments, and because our LTV would be higher, we probably wouldn’t get the best rate (like we are currently are with HTB 40% equity). With interest rates expected to remain above 5% in 2024, and likely above 3-4% between 2025-27, why should we not keep the equity loan in year 6-8 where the interest rate is 1.75% on the equity loan. With interest rates over the next decade likely between 3-5% vs 0.5-1.5% over 2010-21, I would also assume house prices won’t be rising as fast as they have (as mortgages have become less affordable). Bear in mind that our home is also a new build, which typically depreciated within the first few years (as you buy the property at a premium). Surely the equity loan is just extremely cheap debt in the current market, and with mortgage rates expected to remain high over the next 2-6 years, it means house prices won’t be appreciating as much as the government expected when they introduced HTB. So when we come to sell or pay off the equity loan, we might not be too much out of pocket. Any help would be much appreciated!
Hi, yes it is not an easy decision! I certainly wouldn't be remortgaging now to do it and coming away from your very low rate. I would think about it at the end of the 5 years though, if you keep it the 1.75% soon goes up after a few years so it only gets more expensive. Then with house prices potentially going up it is getting more and more costly to repay it. Plus then the time, I don't know how old you are but we only have a certain window of working life in which to take the mortgage over so that is a factor. All in all I would say the end of the 5 years is a good time but it will always be a bit of a gamble either way unless we start predicting the future?! Hope that helps!
@@mortgageadvice.vantage thanks Adam, super useful! I’m currently 24, and have 32 years left on the mortgage. Even with the equity loan interest rate starting at 1.75%, it would take several years to reach 3-4% if we assume inflation stays at around 2-3%. It feels like we might be better off overpaying our mortgage in year 5-7 to build up equity faster, and then maybe buy out the equity loan at the end of year 7 (by remortgaging). By that time, rates would likely be lower at around 3% (forecasts on Bloomberg), but likely still higher than the interest rate on the equity loan. Like I said before, with interest rates expected to be much higher over 2024-2030 vs the last decade, do you agree that house prices will not be appreciating as fast as they have? So the downside is somewhat limited today, vs when we bought the house in 2021?
I can't really tell you what is best without knowing the whole situation but generally I would say if you can buy a whole property and not just some of one that will be better!
Hi, it will depend on the rest of the case but at that value I would be surprised if it had too much affect, I would say you could still be looking at a few High Street lenders! Happy to look for you, just let me know!
@@mortgageadvice.vantage hi at the moment we had valuation on a property all the thick good mortgage application/ Aip income done we are waiting on mortgage offer
Hi there, no I wouldn't have thought so if that is your only issue I wouldn't be too worried! Happy to take a look for you, just get in touch if you would like at www.vantage-mortgages.co.uk
This was very helpful thank you! I’ve been searching for surveyors and they charge around £400. Is it true you can only pay back HTB in 10% lump sums? I’m at 2 years and was thinking of trying to pay off half htb (10%) but I think it’s better to wait the full 5 years to save up as much as possible, do you agree? The property value may also drop at some point.
Hi, yes £400 is probably higher end but around what I would expect. You are right with the 10% chunks, that's 10% of the property value at a time so you need a valuation each time. In terms of whether to now or not it really depends what the future holds! If property prices don't go up it wont matter but if they do then you will wish you had already!
Thanks Adam, this was super helpful! We are remortgaging in 6 months and I believe the RICS valuation lasts for 3 months but according to the H2B site it can be extended by 3 months using a “desktop valuation” would this allow us to proceed to get a valuation now in preparation for remortgaging in October? Thanks
Hi, no I wouldn't to be honest, it's just extra cost you don't really need. What I usually do is submit the mortgage application now based on what we think, then this can always be amended once the HTB valuation is done, just apply to the lender based on the maximum you think it would be. Obviously happy to help you with it all, just book a free call here if you would like: calendly.com/adam-vantage/new-appointment-youtube
Hi Adam, me and my boyfriend has a property which cost £400k we did £160k HTB, £220k mortgage loan and £20k deposit. We are now two years in and the mortgage loan is around £212k, however we just got our property valued and it has decreased from £400k to £360k. Does that mean now I can remortage for £356k (£160k-£16k+£212k)? Our mortgage is due to expire and we want to remortgage but our lender keeps saying we need additional borrowing?
Hi, yes in theory you are right with your figures of £356k that will get HTB paid off. The problem though is your new loan to value. If your house is worth £360k you are nearly at 100% borrowing which you can't do. You could move to a new lender and hope they will value you at more like £395k which would give you 90% loan to value but obviously that is quite a big difference!
Adam, is it true that HTB can challenge a valuation? I feel that I may end up in this situation as I borrowed 20% of £240k which was £48,000 out of London but the property is not worth that now due to factors out of our control, and likely to be around £215-220k. So from what I know, the RICS surveyor will come out and do this survey and provide a quote. Will HTB challenge it if its lower than the original £48k borrowed. We will be selling our property, not remortgaging. Thanks!
Hi there, that's an interesting one! I haven't heard of that happening to be honest, I have had a few cases where the value is now lower and it has been fine, it can't be helped! If you are selling it is very unlikely the valuation will be different to your sale price but don't get the valuation until you are sold and proceeding as it still only lasts 3 months!
@@mortgageadvice.vantage that’s really helpful. And yes I won’t be doing the valuation until the property is SSTC. Sadly we own a property in a new build building and the some of the other properties were sold to a shared ownership/right to buy organisation and they were sold at a cheaper price. Meaning there is some devaluation we have had to wait to balance out.
Just the video I was looking for. I do think the whole system is pretty backwards, especially with the potential of losing your buyer 😢 a very stressful process which I’m currently dealing with. And have only seen two properties I like 😂
It can definitely be stressful! If you want to run through things in more details just pop me an email adam@vantage-mortgages.co.uk and I will be happy to help!
What happens if your new properly requires small renovations, but you want to keep your existing house for a short time, say 3 months. How does one go about this? I.e. Owning both properties? I have the money in equity and mortgage on the first properly plus cash. It isn't clear how this works.
Hi Sorry for the delay! Yes you may be able to do this a couple of ways really if you have the equity, its quite bespoke depending on the exact situation! Pop me an email and I can go through it with you adam@vantage-mortgages.co.uk
Like you said it is abit of a gamble is all it is it seems you only need a fixed tarrif around october to January but you can only recieve a deal at the beginning of the year If you use more than the estimated energy would a fixed price change at all to go up by a small amount or hundreds
Hi, thats basically the same thing, we just tend to use the term remortgage to cover all bases. you just borrow more from a new lender than you owe your old one and the balance s yours to keep or repay HTB in this case
Hi there, it will depend on how much deposit you will have really but something small like that over 12 months may not cause too much of a problem with some lenders. The best thing to do is get a copy of your credit report so we can see exactly what it says then go from there but I suspect there will be a few good options for you!
<<If using different solicitor for Selling and buying is nightmare.>> If my selling solicitor quote much higher legal fee than others. Sholud I just go for it or still can use others solicitor?
I would say either go for it with them or you could also swap to a new solicitor for both sale and purchase. Beware though cheapest is definitely not best when it comes to solicitors, they can make or break your sale! So if they are good then maybe just stick with them
Thank you David.. What credit score you should have to qualify for a mortgage? Just in case of Numbers: Out of 1000 if your score is over 500, do you stand a chance of securing a one?
Hi there, it’s not so much about the numbers really, more the conduct of your credit accounts! So don’t get too hung up on the score itself just make sure everything is paid on time as much as possible!
Marketing my property next week, sale will go toward deposit remaining coming from new joint mortgage, current property no mortgage all cleared, seen new property made offer, if accepted do they need to know mine not sold yet? Or can we give agreement in principle get solicitor to align both sale and purchase whilst current property sold?
Hi, thanks for the question! So it’s very unlikely you will get your offer accepted on a new house if you have not sold yours, if you need the money from it to be able to purchase. Most estate agents will advise their seller to wait until you also have a buyer. However, have you thought about if you could keep your current house? If there is no mortgage on it now we could take out a mortgage to give you some deposit then rent your house out, keeping it for later in life! Happy to chat through how that works any time!
Hi Adam, I purchased my property on the HTB scheme. My property has decreased in value by £40k, what happens to my repayment. Do I pay my original loan, or 40% of the current value as it’s decreased.
Hi, This is where it is kind of in your favour! You still pay back the 40% of the current value so if it has gone down then you repay less. If you need to re-mortgage to do that though, depending on how much equity you have we may struggle to get the full amount by increasing the mortgage.
Hello, I remember seeing something about not being able to “buy back” 100% of the 20% and that the maximum is 95% of the original 20%, meaning govt retains a 5% ownership (which the owner pays interest on) until the owner sells. Do you know if this is still the case?
Interested to hear your thoughts on the following reasons why I think it is not a good idea to pay off help to buy right now. 1. The interest rate is only 1.75% in the first year then increase by CPI + 1-2% (dependant on when the loan was taken out). This will likely be 3-4% less than the current mortgage rates. 2. Interest payable on the H2B loan is only on the original balance taken out whereas if you remortgage to pay it off you are likely increasing the balance and paying higher interest. 3. Finally - and this is more speculation and where risk does come in…. But if house prices do decrease over the next year or so (as currently predicted) then you would have the opportunity of buying the loan out at a smaller amount. The risk is that house prices increase in the next couple of years. What do you think?
I agree completely! Its a tough one at the moment, its probably less appealing now than it has been. Personally I still would because I would want to just get it gone asap but I appreciate its all a bit of a gamble really. House prices could go down a bit but they could go up too so if you fix yourself in for a couple of years and keep HTB then that could cost you. basically there is no 100% guaranteed right answer, its just personal preference!
Very useful video 👍. For the reasons you've stated above, I agree that paying the HTB off now isn't ideal. The issue I currently have, is that I need to release some equity in my home (preferably with my current provider) but they say they can't, unless I pay off my HTB. They've advised that I just need the settlement figure for the HTB and they'll pay that off and then in 6 months time I can then remortgage again to then do what I need to do now. I'm desperate for the money now due to an injury keeping me out of work. Is there anything I can do?
Yes that is pretty much the case with lenders and borrowing more with HTB still in place. I do have an option with a specialist lender but they are expensive and the fees are quite high so it is not ideal! If you would like to know about that please do get in touch
what can be the intrest rate of HTB interest rate for 2024 ? HTB taken 2017 . Can it go over 6% ? I don't understand how CPI works If you bought your home with the earlier Help to Buy: Equity Loan (2013-2021) scheme, the interest rate increases by adding the Retail Price Index (RPI) plus 1%.
Hi, if the limited company's business is uk buy-to-let residential properties investments, with revenue and net profits deriving from the rental income, if any of the analysis change for company director of this company appling for mortgage? Thanks.
Adam, thank you for the great content. Taking into consideration the high mortgage rates and the fact that house prices are more likely to reduce than increase in the short term, does it really make sense to add the HTB loan to a mortgage? If the HTB interest is fixed at 1.75% that’s a heck of a lot better than the ~6% mortgage rates. Does it make sense to hold off for a couple of years given the current economic conditions whilst putting money aside that would have otherwise been spent paying interest?
Yes an interesting discussion I have been having lately! Personally I probably still would. House prices aren't exactly crashing and you never know when they may go up again. Rates are high but coming down too. it depends though, I wouldn't finish a fixed rate early to do it and pay a penalty, I would certainly wait in that case. Also depends on age and how long you have to repay the mortgage, if that is a factor it may be better sooner. The honest answer is I don't really know! We don't know what the next couple of years holds so it is a really hard decision! I would just always prefer to get rid of HTB asap!
Thinking about applying for share to buy on housing association property. Went for finance check for one of their properties at £183,000 for a 60% share, passed it. The housing group ( UKs leading one ) told me their contractor had gone into liquidation immediately after i applied & they had none of those specific houses available now or upcoming & couldn't release plots. They told me they had just one house available now ( a cheaper one at 168,000 for a 60% share, still listed on their website at this price) i replied I've already applied for a different house with an affordability check which took significant time / stress. I will have to ring them up again & change it if i applying for a lower priced property. They quickly responded with you don't need to that, as the the new price of this house it's ( now gone up to 183,000, from 168,000 on 60% share) so you don't need to call the finance company again. House went up in price unfairly. None of the other buyers on the road paid the new price & it's just this house left available. Their small print under the plots, house numbers states "we reserve the right to increase the house prices if we think its justified" This was the first problem. I felt like they were taking advantage of me. I am a first time buyer. Their customer services has been one sided, not providing any explanations towards questions i have, including regarding buying the share or about the property or the lease. Only when its to do with sending off forms before their deadlines (checks, or placing deposits, finding solicitors for conveyancing) they have made themselves available. They asked me to send signed consent of leasehold contract (3 forms ) & post it back before i pay a deposit to the housing group I did sign it but immediately tried to contact them where i had asked for an explanation over what part of the lease / share to buy actually meant. Again after sending 2 emails & several texts to their housing officer who deals with this there's been absolutely no correspondence, she said if you have any questions whatsoever regarding to buying the property or signing the forms, to get in contact with her. Part of the leasehold contract you sign it states " landlord may be entitled to terminate the leasehold without any necessary court order. If the lease is terminated the leaseholder will lose and not be entitled to any compensation for any shares in the property he or she acquired" I am a cash buyer without mortgage on this and have an Instinct something not right about what I'm being asked to sign for. It's a suitable house for me, right area, its ridiculously overpriced, feel like this housing group is taking advantage and only interested in my money responding only to do with that. I feel like pulling out of the sale as the contract looks dodgy & not very safe if they could pocket 183,000 cash of my money without even getting a court order? I've never been a bad tenant in all my years of renting, never been evicted, but I've had small rent arrears due to not knowing due to illness or not even being told by the housing groups or disuptes over incorrect over charges that took months to resolve. That's why im worried about this share to buy contract. Mortgage holders have some protection as a buyer, cash buyers appear not to ? Interested in your response, thanks
Sorry that sounds like maybe more of a legal question really! I would say speak to your solicitor before you sign up to anything, be sure to choose your own and not go with the ones that the builder recommends
I am 60 (disability PIP) my wife is 48 (working full-time) we have been renting all our lives . My landlord died and the daughter want to sell this house. We have been looking around but rents are crazy. A good friend of mine told me he will give me 10k for a deposit and i started looking around and found L&C online, filled out all our details and 15 minutes later i got "decision in Principle " the we could get a Mortgage of £90k . Is this to good to be true ?? I am in Northern Ireland and must say it's possible to find a house around £100k should i be happy ??
Yes that sounds entirely possible! I would always encourage you to speak to a broker though yourself rather than rely on the online tool because we need to be very careful to put your income in correctly to get a true decision!
