Bower Mortgage Company

First Time Buyer? Why you Need Specialist Mortgage Advice.

Sarah McInerney — Fri, 16 Jul 2010 15:26:58 +0000

Buying a home for the first time is a daunting prospect, that’s a fact. So much to take in, a whole host of new things to learn and major decisions to make.

Add to the equation the issue of arranging your first mortgage, and things become even more confusing and it has to be said, stressful.

Keeping a clear mind during the buying process is crucial so that all decisions made are done so with proper focus. So why cause yourself additional pressure by trying to choose your own mortgage?

Comparison Websites & High Street versus Personalised Advice

Whilst there are plenty of comparison websites out there claiming to be a ‘helpful’ source of information for borrowers, and whilst any high street bank or building society that you walk into will be more than happy to offer you their ‘latest deals’, none of these are actually taking your specific circumstances and needs into consideration.

A comparison website simply presents a set of search results; it won’t tell you whether those results will actually be right for you. And a bank or building society can’t offer you deals from the whole of the market because they are tied to their own products.

Navigating your way through the deals

With so many new mortgage products coming onto the market, it is becoming exceptionally difficult to navigate the deals on offer by yourself and without expert guidance, how will you know the one you choose is the best for you?

Taking expert mortgage advice is something that will help guide you through the plethora of options so that you end up with the right mortgage. Think about what lies ahead and ask yourself:

Could you, on your own, study the entire range of mortgages from the whole of the market and compare the benefits of each?
Do you have the time to manage your own mortgage application? To deal with telephone calls and form filling amidst your already busy life?
Can you see yourself negotiating exclusive deals from mortgage lenders that will save you money?
How do you know if the deal you are getting really is the best available on the market?
Could you be sure that your mortgage is truly the right one for your specific circumstances?

No? That’s why you need to take specialist mortgage advice from a whole of market mortgage adviser; one who has access to every loan on the market; one who will get to know your long term goals and select the product to suit your needs; and one who will ultimately save you money.

And what is more, an experienced, qualified mortgage broker will ensure there are safeguards in place to protect your mortgage, your home and your financial future.

First time buyer? Ease the burden and save yourself money by taking specialist advice from a whole of market mortgage broker!

Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.

Bower Mortgage Company: FSA regulated UK-wide mortgage advice from friendly, qualified, experienced mortgage planning specialists. Quality, face to face advice and a strong focus on building long term customer relationships. For money saving mortgage and mortgage protection advice, contact Bower on 0800 411 8668 or e-mail info@bowermortgagecompany.co.uk.

Full Time Whistle to be Blown on Interest Only Mortgages

Sarah McInerney — Sat, 26 Jun 2010 00:04:35 +0000

With mortgage lenders such as Halifax following Britannia, Yorkshire Bank and Scottish Widows into a phase-out of interest only mortgages, there has never been a more crucial time for borrowers – especially those with complicated situations – to take independent mortgage advice.

Lending criteria is being further tightened as a precautionary measure leaving borrowers in the dark over their options, especially those who are self employed, have credit issues or are looking for investment lending.

Lenders Protecting their Own Interests

Halifax has recently added a 0.2% premium on its interest only loans, effectively protecting themselves from default borrowers and closing the door on the interest only option.

When the interest rate fell from 5% to 0.5% at the beginning of the recession, people on interest only mortgages benefited greatly. However, it is believed that instead of putting aside the money saved to pay off capital; many are expected to have squandered it. The risk of borrowers defaulting on these loans is high and therefore the banks are understandably nervous.

So who will this phase-out affect? Unfortunately, even responsible borrowers will potentially lose out as the regulations are tightened across the banking and mortgage industry. First time buyers and buy to let investors will be reeling as they previously favoured interest only loans due to the lower monthly repayments compared with other types of mortgage.

Self employed borrowers who have in the past favoured interest only mortgages for their flexibility will now find it far more complicated to find finance.

Focus on the Positive

However, Geoff Charles, Managing Director of Bower Mortgage Company, believes that borrowers should focus on the positive side of the phase out.

“Interest only mortgages should never have been seen as a permanent solution. With these interest only loans being phased out by major lenders, it may make people sit up and realise that by seeking independent financial advice there could be better options available to them.”

Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.

Mortgage Rates set to soar: Fix Now!

Sarah McInerney — Sat, 05 Jun 2010 14:14:46 +0000

The next two years could spell bad news for borrowers who have failed to take action and fix their mortgage rates, as warnings abound over soaring rates which could force repayments skywards by £3,000 on a £200,000 mortgage, a recent report in the Sunday Times stated.

The warnings are hailed in the light of the launch of two new five-year fixed rate deals at 3.99% courtesy of Britannia and the Co-op; the first instance of five year fixed rates falling below 4% for a year.

Standard Variable Rate to Rise

According to Credit Suisse, lenders are set to raise mortgage profit margins and it is likely this will be done by raising existing customers’ standard variable rates and increasing margins on new lending.

On this note, Lloyds has announced an increase in its standard variable rate from 2.5% to 3.99% for new and existing customers when taking a new product or increasing their borrowing.

Other Lenders to Follow the Lloyds SVR Increase

Michelle Slade of the Moneyfacts website commented on the move by Lloyds: “The move by Lloyds follows similar moves by Nationwide Building Society and other smaller societies,” she said. “Now the UK’s biggest lender has moved to increase rates, other providers may follow.”

“Borrowers must not sit back and drift onto the Standard Variable Rate”

Geoff Charles, Managing Director of Bower Mortgage Company, said: “Borrowers absolutely cannot sit back and let themselves drift onto the Standard Variable Rate if they wish to know their exact mortgage costs. There is no guarantee of fixed monthly expenditure in this scenario and the danger is they may end up paying a much higher rate if no action is taken now while fixed rates are at their lowest for some time. Taking independent advice without delay is crucial.”

Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.

No More HIPs: Good News for Home Sellers

Sarah McInerney — Fri, 28 May 2010 23:43:52 +0000

Home Information Packs were introduced in 2007 with the aim of speeding up the process of selling a house by presenting buyers with much of the conveyancing information right from the start such as local searches, property information and Title Deeds.

The suspension of the packs by the new coalition Government as of 21 May 2010 aims to give the housing market a much needed boost by easing the burden of costs for sellers and encouraging them to test the water of the housing market, without having to stump up for a HIP which would have cost anything in the region of £350.

“Home Sellers will be able to get on with Marketing their Home”

Housing Minister Grant Shapps said: “By suspending home information packs, it means that home sellers will be able to get on with marketing their home without having to shell out hundreds of pounds upfront,” and he added: “We are committed to greener housing so from now on all that will be required will be a simple energy performance certificate.”

An energy performance certificate (EPC) costs in the region of £60 and sellers are responsible for presenting them within 28 days of putting their property on the market.

“Few have paid attention to these pointless packs”

Whilst the onus has now switched to buyers to pay out for searches costing around £200, and whilst this is looked on by some as adding to the burden of costs for first time buyers, it has been challenged by the National Association of Estate Agents who said, “It will be greeted enthusiastically by both the housing market and house buyers, few of whom have paid much attention to these pointless packs.”

Geoff Charles of Bower Mortgage Company agrees that HIPs were deterring sellers from putting their properties on the market due to a fear of a no sale costing them dearly. He said, “The aim of HIPs was to speed up the selling process, however, instead they stunted the market because homeowners were refraining from putting their properties on the market.”

“Sellers can see how the land lies without having to pay high upfront costs”

“It is a shame the packs did not perform as intended, however I believe their removal should give the property market a boost by encouraging sellers to see how the land lies without having to pay high upfront costs,” summarised Geoff.

Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.

Mortgages: Independent Advice is Crucial

Sarah McInerney — Fri, 21 May 2010 22:57:19 +0000

With the catastrophic events of the past two years in the banking industry, mortgage borrowers unsurprisingly lack confidence in finding the best mortgage option to best suit their needs. A recent survey has concluded that seeking advice from an independent financial adviser is the best policy to follow before choosing a mortgage.

Banking crisis causing confusion

Research carried out by YouGov revealed that 44% of the 2000 people questioned had less confidence in their ability to get the right mortgage product, compared to just 2% who felt they had more confidence as a result of the banking crisis. This suggests that changing regulations and interest rates have left many confused and uncertain as to how to get the best deal.

Financial Advisers: Most Trusted

Unsurprisingly, consumers are finding comfort in independent mortgage advisers. Of those questioned, 45% said they felt an independent adviser was best placed to find them the best mortgage option, which dwarfed the 25% that believed advice from a building society was the best course of action.

The Changing Landscape

With so much turmoil in the financial world, it seems that only independent financial advisers are in a position to advise the public in achieving their financial goals. Geoff Charles, Managing Director of Bower Mortgage Company, had this to say:

“Only whole of market independent mortgage advisers have the ability to search the entire market and source the deals that will offer the best savings. Some of these deals don’t forget are exclusively offered to brokers which means the public will never see them otherwise. Borrowers must seriously consider taking professional advice in order to enjoy the cheapest deals and get the most out of their financial futures.”

Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.