The summer is over, the kids are back to school and the post holiday credit card statements are on their way! Ok, so a bit negative, but don’t panic when they arrive. Debt Management Plans and Payday loans look like an attractive solution and they will be right for some people. However, most mortgage lenders are not favourable to these arrangements. If you are looking to change your mortgage, think twice before committing to such a plan. Consolidating debts into one monthly payment via a secured loan or even a total remortgage may be a better option. Obviously securing short term debt in to a longer term loan will inevitably increase the amount of interest paid and professional advice should be sought before going this route. But do review your options as rates are low.
The Dudley Building Society has launched their new mortgage lending proposition through seven key mortgage packager/distributors around the country. We’re delighted that AToM is one of the chosen few! The Dudley BS specialise in assisting First Time Buyers, Shared Ownership (90% of share on New Build properties), Right to Buys, Buy to Lets and more. It’s great to see lenders expanding their propositions in to new areas and we look forward to working with them.
Buy to Let mortgages seem to be the flavour of the month. With the rental market remaining buoyant and showing no signs of declining, lenders are reacting to the huge demand for investment/buy to let properties. This sector has also experienced the recent mortgage price war and some big criteria changes as lenders seek to attract more of this business type. Buy to Let properties will often provide a modest monthly return over and above the mortgage payment. The additional amount can be used to supplement income, or, with flexible mortgages, can be used to “overpay” the mortgage and reduce the term. Most lenders in this sector will require the rental income to exceed the mortgage payment by up to 125%. Remember that, whatever the deal, lender terms and conditions will always apply and there are no guarantees of continued rental or capital growth.
August was a superb month for AToM. Completion numbers, those taking out mortgage loans, were the best for five years! Thank you to all those who have been using AToM’s services, we really do appreciate it.