X
Contact Us
Contact Us Log In

Author: webmaster

5 Year High on Property Fall-throughs

BTL Planning Image

According to the Intermediary Magazine this morning, Quarter 3 of 2022 saw the highest level of property transactions falling through in 5 years – a trend we have seen and assisted many of our clients through.

According to the magazine, 90,188 transactions are estimated to have fallen through – an increase on 15.6% on a quarterly basis and a 3.6% increase since the same period in 2021.

The rate is attributed to the chaos that followed the political and global events in September 2022, where lenders pulled out of the market, cost of living crisis came to the forefront (increasing the issues around affordability), and increased moving costs (both in the process and also lender product fees as a result of the Bank of England’s rate hikes).

What can you do to protect yourself?

It is in the interest of all parties in a purchase to ensure that the process goes as smoothly as possible. There are so many factors affecting how easily a transaction goes through and ways of protecting yourself in case the worst happens.

  • Get everything ready before you start – Seems obvious, but there is a lot of research to be done before you even get to the point of offering on a property. We will be covering this over on our Facebook Page over the next few days, so make sure you follow us to get the hints and tips!
  • If you haven’t sold your property yet, don’t expect to be taken as seriously as a person with no property to sell – ultimately, until you have sold your property you wont be in a position to proceed (unless you have the cash to progress the purchase without the sale moving forwards) – so pushing anyone other than your selling agent is likely to cause friction.
  • Wait until you are fully confident you can move forward before committing money to a transaction – Until you have the mortgage offer, you simply aren’t in a position to successfully start the process of buying the house you have offered on. We always recommend holding back on paying for searches, additional surveys and other costs until either a verbal “Ok to go” from the lender, or a mortgage offer is in place. Otherwise you could be spending out on things that go to waste if you are unable to proceed (either because of issues with the mortgage itself, or the lenders valuation coming back low or unsuitable for lending)
  • Keep in touch using the right channels – Whilst its tempting to badger everyone involved in the process, there are key people to keep in touch with at different stages.. For example :
    • Until you have your mortgage offer, your main contact should be the Mortgage Broker
    • Once you have your mortgage offer, the solicitors work can start – so they should be your main contact.
    • Once you have the majority of the legal work done (Searches back, enquiries underway or complete), then you can work with the estate agent to get an idea of the completion timescales.
  • Keep Calm – Particularly in long chains, it can be a stressful process. Ultimately, nothing is set in stone until everyone in the chain is ready to exchange.

We will be covering some more detail over on Facebook over the next few weeks, so head over and follow us for more information.

In the meantime, we have two helpful guides to First Time Buyers and lots more info in our guide to the process on our homepage at www.mortgages4u.uk

Green Mortgages: what you need to know

COP27 – the climate conversation is at the front of people’s minds again. We take a look at what green mortgages are and how they can help you to go greener.

With the COP27 summit last month, the climate conversation is at the forefront of people’s minds once again. Reducing the impact, we have on our planet has become a key priority for homeowners up and down the country as we head towards the point of no return. Lenders are aware of this and want to help you achieve that – while also working towards their own green targets. Green mortgages are one of the key methods you can use to help your day-to-day become greener. We take a look at what green mortgages are and how they can help you to go greener.

In simple terms, a green mortgage rewards you for buying or owning an energy-efficient home. Whether your home is energy efficient at the point of purchase or you make improvements to your home, a green mortgage could reward you for being active in the fight against climate change. Essentially, a green mortgage offers you preferential terms if you can demonstrate that the property you own or are hoping to own meets certain environmental standards. A property with a high energy efficiency rating is likely to qualify for a lower interest rate or cash-back incentive. On top of this, lenders may even increase the maximum loan amount – opening doors to different locations or property types.
According to the Green Finance Institute, UK households account for around 20% of the country’s carbon emissions. This statistic alone demonstrates how everyday homeowners can make a real difference in the effort to reach net zero by 2050.

What can green mortgages do for you?

So, how can a green mortgage benefit you? Well, there are several pros to taking out a green mortgage. Lenders will offer lower interest rates to encourage you to have a more energy efficient home. This means your monthly payments may be less than they otherwise would – helping you to save money and the planet simultaneously. Having a more energy efficient home would also help you keep your energy bills at a more manageable level – a benefit not to be overlooked amid a cost-of-living crisis. A more energy efficient home takes less power to heat and therefore doesn’t cost as much.

As we edge closer to the government’s net zero target, eco-homes are becoming more desirable. As buyers are more frequently valuing the EPC rating of a home as a priority, having a home with a good rating could increase its overall value. Not only are you saving money through having cheaper monthly repayments – but your property’s value could increase.

How can I check my EPC?

If an EPC has been carried out for a property, you can find the certificate on the governments website at : Find an energy certificate – GOV.UK (www.gov.uk). Not only does the certificate give you the rating, but also a full appraisal of where you can improve your rating.

If your home has an EPC rating of A or B, or you’re looking to purchase one that does, a green mortgage could be the product for you. To find out more, speak to your adviser to have any of your questions answered.

General and Contents Insurance: Get Your Gifts Protected

The festive season is upon us. A time of family, togetherness and most importantly – presents! In a time of gift giving, it’s important to consider how you can protect any fancy new gadgets or expensive gifts you may receive this year. It would be devastating enough for your home to be broken into or damaged by fire or flooding – but the added anguish of losing your valuables could make it even harder. Of course, no one wants to think about these things happening to them – but it’s essential that you’re protected just in case.

Contents insurance is an optional protection plan that covers the contents of your home against damage caused by things such as fire, flooding and theft. Of course, these aren’t things anyone wants to think about over the festive period – but the alternative could be a lot worse. In a time where money is tight for millions of people, the prospect of having to pay large sums of money to repair or replace damaged or stolen goods could put a real strain on household budgets. Personal Belongings cover can be added to a Contents policy. This covers a range of various valuable belongings that wouldn’t otherwise be included under a contents insurance policy. Such things could include mobile phones, laptops, jewellery and camera equipment.

Usually, you’ll be covered against fire, flooding and theft – although accidental damage cover can be added as an optional extra. It’d be a real shame if your brand-new sofa was damaged during a particularly animated game of Christmas charades – so this could be an option worth considering!

Most policies will offer new for old cover. This means you will get the full replacement cost of any damaged or stolen items. However, some policies will only cover the current value of the items in question, so it’s worth checking the fine print of a policy before deciding what’s right for you.

Contents insurance policies are usually worked out on a sum-insured or bedroom rated basis. With a sum-insured policy, you get to put forward the figure you wish to be insured for based on the full value of the contents of your home. Alternatively, a bedroom-rated policy means that the amount you are covered for is based on the number of rooms in your house.

With Christmas just around the corner, many will be looking forward to both giving and receiving gifts. It’s therefore so important to make sure the contents of your home are protected against flooding, fire and theft. If you’d like to know more about how contents insurance can help you this holiday season, get in touch with us today!

The Bank of England Base Rate Rise – Don’t panic! Get advice.

It won’t have missed your attention that the Bank of England Base Rate has increased once again (this time another 0.5% taking it up to 3.5%). We take a really quick look at what this means in the grand scheme of things, and why its best not to panic just yet!

So, on the 15th December 2022, the Bank of England base rate rose to 3.5% – The highest level in 14 years. It’s natural to worry, particularly if you already have a mortgage or are looking to source one soon. But, we are seeing a different picture in the world of mortgage brokers.

Those on Fixed Rate Mortgages with a deal coming to an end and looking to limit the increase in payments are still benefitting from fixed rates moving downwards rather than up. As a perfect example, we arranged a fixed rate product transfer for a client back in November to secure a rate in case rates went sky high. Today, we have changed the product as a result of reductions in that particular lenders rates and instead of a rate of 5.44%, we have secured a rate of 4.79% – a drop of over 0.65%. That’s a reduction in their deal greater than todays increase.

For those on variable deals, we are starting to get the responses in from the lenders, and those that have communicated so far are noting that the rates for those clients aren’t going up immediately. Santander (for example) have announced that they will increase their variable rate products (including Alliance and Leicester) by the 0.5%, but at the start of February (which means payments won’t change until March 2023).

For those who haven’t reviewed their mortgage deal, or are due to review within 6 months (particularly if you are on a lenders Standard Variable Rate), now is a really good time to get a review. As always, we don’t charge unless we get you a mortgage.

Head over to our Contact Page or visit our Facebook Page to get in touch and discuss your options.

Let’s Get Your Mortgage Journey Started

Our highly skilled and helpful advisers are ready to help

Lets Get To It

Your home may be repossessed if you do not keep up repayments on your mortgage.

1st Call 4 Mortgages (UK) Ltd. Registered in England and Wales under number 09333010. Director : Paul Butler.
Registered address: 5 Arthurs Hill, Shanklin, Isle Of Wight, England, PO37 6EW
1st Call 4 Mortgages (UK) Ltd is authorised and regulated by the Financial Conduct Authority under number 676588 in respect of mortgage, insurance and consumer credit mediation activities only.

The information contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based within the UK.

For commercial mortgages, we work with an unlimited panel of lenders to find a potentially suitable arrangement for your consideration.

Our ICO registration number is ZA124100 and you can check via www.ico.org.uk.

We will receive commission from lenders. Different lenders pay different amounts depending on different commission models. For transparency we work with the following commission models: fixed fee, fixed rate of commission, percentage of the amount you borrow. Further details of the commission model, calculation and amount will be disclosed to you throughout your customer journey.

© 2006 – 2025 1st Call 4 Mortgages (UK) Ltd. All rights reserved.