Negative equity is when your home is worth less than what you owe on your mortgage. Short periods of negative equity may be uncomfortable but can be tolerable. Extended periods of negative equity can, however, be hugely challenging. You should, therefore, do everything you can to avoid it. Here are four tips to help. Never overpay for a property This may sound like stating the obvious but it can be a serious trap for the unwary. To avoid it, you need to have a clear idea of what a property is worth at the time you want to buy it. Ignore the potential for capital appreciation, just look at the current market value. Then look at the general market dynamics and see if there is anything you can glean from them. In particular, look for any evidence that the housing market is on a strong upward run. If it is, you could be in for a period of negative equity if the market cools again. Over time, you can reasonably expect general inflation to do its work and increase the value of your home. You do, however, need to think carefully about whether or not you can afford to sit tight while that happens. Never let yourself be tempted into making an emotion-fuelled offer to secure your “dream home”. If it’s meant to be yours it will be, at the right price. If it’s not, it wasn’t meant for you so move on. If you’re outbid (or gazumped) remember that the bidder may not have financing in place. If they don’t, they may find themselves unable to make good on their offer and the property may come back on the market. Pay for a proper home survey This is effectively a sub-point of not overpaying. It is, however, important enough to be highlighted on its own. Your initial offer for a property will be based on the information given by the seller plus what you’ve seen with your own eyes. In principle, the seller should declare any known issues with the house. In practice, you cannot rely on this. The seller may genuinely not be aware of them. Alternatively, they may hope to get away with not declaring them. In theory, if a seller fails to declare information on sales deeds, you may be able to take legal action against them. In reality, do you really want to have to deal with the hassle and expense this would probably involve? A proper home survey goes into much more depth than a simple valuation. That’s why it costs more. It is, however, an excellent investment against negative equity. Not only can it identify current problems, but it can also flag up potential future issues. The result of a survey will allow you to make a more informed decision about whether you want to proceed with the purchase at all. If you do, you’ll be in a better position to assess the agreed price. For clarity, deliberately “gazundering” a seller is unethical but revising an offer in the light of new information is perfectly reasonable. Maximise your deposit It’s an old piece of advice but it’s a solid one for many reasons. The larger your deposit, the more house prices can slide before you end up in negative equity. Please note, however, that large deposits should not be used as an alternative to doing proper research on the fair market value of a property for sale. Be careful about releasing equity The more equity you have in your home, the less chance you have of landing in negative equity. For this reason, it’s important to be very careful about releasing equity in your home. There may be times it is justified, even sensible, but be sure to get proper financial advice before you make any final decisions.

Moving house can be one of life’s most overwhelming experiences but it doesn’t have to be. The key to minimising stress is to plan out your move in advance. Then delegate as much as you can. Here are some tips to help. Make a list of your tasks One way to do this is to think through everything you need to do in relation to your move. Then cross-reference the list you create with the various lists available on the internet. That should give you a complete list or at least something very close to it. Once you have your list, see if any tasks depend on any other tasks. For example, you can only start packing once you have packing materials. Then pencil in your best estimate of how long each task is likely to take. If in doubt, err on the side of caution and allow longer. Then mark the tasks you could potentially delegate if necessary. Set a moving budget Even though you’ll want to keep the costs of your move as low as possible, spending a bit of money can make your life easier. As a rule of thumb, the quicker you need to move, the more you should budget for your moving expenses. This is because you’re going to have less time to shop around for the best deals and/or pick up items (like packaging materials) for free. When you set your moving budget, remember to allow for “settling in” costs once you reach your new home. At a minimum, be prepared to spend a little on convenience. For example, you might want ready meals/takeaways to save you the energy needed to cook. You might also need to replace items that don’t quite work in your new home the way they used to in your current one. Coordinate with your service providers Your aim should be to have your current service providers terminate their service at your current address on the day you move out (if not before) and have new services ready to go in your new one the day you move in. Check your contract with your current provider to see how much notice you need to give them. Do your research on potential new providers as far in advance as you can. A provider should tell you how much notice they need to get utilities set up when you move home. As a rule of thumb, if your new home has the necessary connections, allow at least three weeks. Four is usually better. Make a list of everyone you need to inform You may think that you do everything online but there’s a good chance that any significant online account you hold (e.g. your bank account) requires you to complete your address details. They may never be used to send mail but then again they might. You have no way of knowing. Also, there’s a very good chance that the terms and conditions of the service will require you to keep your contact details up-to-date. Updating your profiles may be tedious but it is necessary. It is, however, also a good opportunity for you to review what services you use and what accounts you have and close any which are no longer relevant. Even if you’re absolutely sure you’ve told absolutely everyone, it might still be worthwhile setting up a postal redirect for a month, if not two or three. This will capture any letters that were sent between you informing people of your move and them fully updating all their systems. It will also capture letters from anyone you forgot to inform. Set up a moving pack Basically, set up a bag with your most important possessions (e.g. your key documents) and anything you’ll need to “camp indoors” for at least a day, preferably two or three. For mortgage advice, please get in touch

The UK’s property market has long been an attractive target for investors. Up until recently, it had options for investors of all sizes. Now, however, smaller investors may be wondering if property investment is still worth it for them. Of course, this is an individual decision. There are, however, some common factors that most investors should consider. The traditional benefits of property investment Investors have traditionally been drawn to property by its combination of a steady income stream plus the prospect of long-term appreciation. Diversification, leverage and tax benefits were nice bonuses. Over recent years, however, the outlook for all of these has changed. Income Property can still offer a steady income but it has arguably ceased to be a fairly sure bet. Furthermore, increased market regulation has made it much harder for landlords to deal with tenants who can’t or won’t pay. Appreciation Property does still hold out the potential benefit of capital appreciation. Right now, however, that appreciation could take a very long time to materialise. Its impact may also be diluted by greater homebuilding. Diversification Diversification still can be a benefit of property investment. With that said, there are other ways to achieve diversification. Two obvious examples are investing in property-related shares and investing in precious metals. Leverage Property can be used as collateral against other purchases. This may not, however, be enough to justify the purchase. In essence, it begs the question of why an investor is using leverage in the first place. The obvious answer to this is to buy higher-priced investments such as property. In other words, you can leverage property you already own to buy more. Leverage, however, carries risks, particularly if you’re investing as an individual (i.e. outside of a limited company). It can be safer to avoid it and just invest with the disposable funds you already have. Tax benefits Property investment used to attract several tax benefits. Over recent years, however, the tax landscape for landlords has become much less favourable. This in itself does not have to be an issue for property investors. If you can pass your costs onto your tenants, then any increase in taxes essentially is their problem, not yours. With that said, the complexity of property taxes can lead to a lot of extra administration. Adding this to the other disadvantages of property may make investors decide to exit the area. The traditional drawbacks of property. The traditional main drawbacks of property are that it is capital-intensive and illiquid. Furthermore, investors are at risk of downward trends in both the overall market and the local area. There is also the reality that property has a lot of very specific management challenges. Capital intensive Buying a property ties up a lot of capital that could otherwise have been used elsewhere. It may require investors to take on debt that they are committed to repaying no matter what. Illiquid asset Even in red-hot markets, property transactions move at a relatively slow pace. If the market itself is slow it can take a very long time to sell. Market risk Historically, over the long term, the UK’s property market has been on a steady upward trend. Unfortunately, that does not guarantee that it will continue to do so. Even if it does there can be short-term flatlines, dips or crashes. Furthermore, these can have side effects that create additional challenges. For example, if homeowners struggle to sell their homes, they may decide to rent them out, thus becoming “accidental landlords”. This increases the level of competition for property investors. Location risk The desirability of areas can change over time. Sometimes this benefits investors. Sometimes it doesn’t. It’s also worth noting that one of the traditional drivers of desirability was the availability of work in the local area. If, however, remote-/hybrid-word becomes embedded then this could change the desirability of certain areas considerably. Smaller investors might therefore find it safer to sit out the market for the time being until there is more clarity on its future direction. Management challenges Over recent years, the UK’s residential property market has become increasingly regulated. This may have helped to drive rogue landlords out of the market. Unfortunately, it may also have been the last straw for legitimate small-scale investors. For mortgage advice please get in touch YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE The FCA does not regulate commercial mortgages and we act as introducers for it For investments, we act as introducers only

For sale by owner may work in a busy housing market (although it may not get you the best price for your home even then). When the market is slower, however, trying to sell your home yourself can be a seriously bad idea. It’s generally far better to find a reputable estate agent and commit to working effectively with them. Find the right estate agent Begin your search for a reliable estate agent by seeking referrals from individuals in your circle who have recently bought or sold properties within your locality. Additionally, you can go through online reviews and ratings and authenticate the agent's credentials, such as their licenses and certifications. If possible, interview multiple agents to compare their expertise, communication skills, and promptness. During the interview process, inquire about their track record, marketing strategies, and fees to make an informed decision. Set realistic expectations Setting realistic expectations is crucial when working with an estate agent. It is essential to have a clear understanding of the current market conditions, such as the availability of properties, the demand for properties, and the prevailing prices. Your agent can provide you with valuable insights and data to help you make informed decisions and set realistic expectations. To set realistic expectations, you should be open to compromise and be willing to adjust your goals and priorities based on the market conditions and your budget. For example, if you are selling your home, you may need to be flexible about the asking price, the timing of the sale, or the repairs and upgrades needed to make your home more attractive to buyers. Trust your agent's expertise Trusting your estate agent's expertise is a crucial aspect of working with them effectively. After all, they have the knowledge and experience required to navigate the market and help you achieve your goals. It is important to trust your agent's advice, insights, and recommendations to make informed decisions throughout the process. To build trust with your agent, it is essential to listen to their advice and ask for their opinions regularly. They are there to help you, and their expertise and experience can provide valuable insights that you may not have considered. Be open to new ideas and suggestions from your agent, even if they differ from your initial thoughts or preferences. Trusting your agent can help you make better decisions and avoid common pitfalls that many buyers and sellers encounter. Their experience can help you avoid overpricing or underpricing your property, making costly mistakes during inspections, or overlooking important details during negotiations. Trusting your agent can also help you achieve your goals more efficiently and effectively, such as selling your property faster or finding your dream home within your budget. Communicate clearly and regularly Clear and regular communication is an essential aspect of working effectively with your estate agent. Communicating your needs and preferences, asking questions, and providing feedback can help your agent understand your expectations and provide you with the best possible service. To communicate effectively with your agent, it is important to be honest and specific about your needs and preferences. In particular, you need to be clear about whether your priority is to achieve the highest possible price or the quickest possible sale. In the real world, you can generally have one or the other but not both. Asking questions is also a vital part of effective communication. Don't hesitate to ask your agent about any concerns or doubts you may have about the process. By doing so, you can gain a better understanding of the market and make informed decisions. Providing feedback is another important aspect of clear communication. By sharing your thoughts on properties, marketing strategies, or any other relevant topics, you can help your agent adjust their approach to better meet your needs. Technology also plays a vital role in facilitating communication with your agent. Email, text messaging, and video conferencing can be used to stay in touch and exchange information quickly and conveniently. For mortgage advice, please get in touch. For estate agents we act as introducers only.

For many people, getting a mortgage is essential to be able to buy a house. What’s more, after you’ve bought your house, you’re probably going to need to remortgage periodically. It, therefore, makes sense to think about how you can persuade a mortgage lender to say yes. Here are some tips to help. Take care of your credit score Your credit score plays a huge role in determining whether or not you will be offered a mortgage at all. It will also influence the terms you are offered. Having a high credit score will make it more likely that you will qualify for products with lower interest rates. This can save you a significant amount of money over the lifetime of the loan. Credit scores take time to build and benefit from regular maintenance. This means that you should treat them as a work in progress. If you already have a mortgage, then the payments you make towards it will help to nurture your credit score. If you’re renting, see if your landlord will report your rent payments to the credit agencies. If they won’t, see if you can self-report. Use a mortgage broker Mortgage brokers as intermediaries between potential borrowers and lenders. They are not, however, just “people in the middle”. They have extensive knowledge of the mortgage market and leverage this to find the best mortgage options for your unique financial situation. Their market knowledge is complemented by expertise in negotiation. For example, a mortgage broker may be able to secure you more favourable terms and/or rates than you would have achieved on your own. Using a mortgage broker can therefore save you a lot of money. It can also save you a lot of hassle. Working with a mortgage broker means that you have somebody to guide you through the application process. Even people who’ve had mortgages before can benefit from this. It can be invaluable for first-time buyers. Be realistic about how much you can borrow This point can actually be divided into three parts. Firstly, be aware of how much lenders are likely to be prepared to offer you regardless of what property you want to purchase. Secondly, be aware of how much lenders are likely to be prepared to lend against any given property. If you’re buying rather than remortgaging, keep in mind that a mortgage pre-approval is a fairly high-level agreement. The lender will need to see the specifics of the property before making a final offer. Thirdly, be aware of how much you can realistically afford without overstretching yourself. Lenders should check this but you should give this point serious consideration yourself. Have all your documentation ready before you apply Documents such as bank statements are usually quite easy to get quickly. In fact, you can probably just download them from your online account. Keep in mind, however, that you will probably have to show ID. Many forms of ID expire. If yours is coming close to its renewal date, then allow yourself plenty of time for the process. Make sure you complete the application form correctly This may sound like stating the obvious but it does matter (a lot). If you’re using a mortgage broker, they will usually guide you through the application process. If you’re not, however, then you’ll need to complete the form on your own. Give yourself plenty of time to do so. Read the form thoroughly so you’re totally clear on what is being asked of you. If you have any doubts, stop, clear them up and then go back. If you’re filling in a paper form, you can just put it away somewhere safe until you get the answer you need. If you’re filling in a form online, you can usually save it. Just remember to keep a note of your login details.

Spring is traditionally a busy time in the property market. Just how busy it is, however, depends on various factors. Many people involved in real estate will have been awaiting the spring statement with great interest. As it turned out, there were no measures aimed directly at the property market. Overall, however, it was still arguably good news for the sector. The economic outlook Probably the key news from the spring statement was that the UK’s outlook seems to have brightened somewhat. Previous forecasts predicted that the UK’s economy would shrink by 1.4%. Now the predicted shrinkage is just 0.2%. Whether or not this qualifies as good news is a matter of opinion. At the very least, however, it is less bad. The better news is that the UK economy is projected to grow from 2024 to 2027 (inclusive). Inflation is projected to fall Average inflation for 2023 is predicted to be 6.1%. It is expected to end Q4 2023 at 2.9%. This is (just) within the Bank of England’s target range of 1% to 3%. It’s also a fall of over two-thirds from its Q4 2022 peak of 10.7%. Inflation is a double-edged sword for the property market. On the one hand, general inflation is part of what contributes to house-price appreciation. On the other hand, excessive inflation can lead to serious affordability issues that can cripple the property market. Either the inflation itself leaves people less able to buy property or it leads to higher interest rates. These make mortgages more expensive (and hence less affordable). The property sector is highly dependent on the availability of mortgages. This means that anything that makes them harder to get is bad news for it. Assuming the fall in inflation is organic (i.e. not just a response to higher interest rates), it could bring welcome relief to the property market. In fact, even if it is, initially, just a response to interest rates, it could still be good news. Once inflation is tamed, interest rates may be able to come down again. It’s also worth remembering that interest rates are still fairly low by historical standards. The UK has a long way to go before it gets anywhere even close to double-digit interest rates. Unemployment will remain low Unemployment is projected to rise by a maximum of 1%. This projection is, however, a very interesting one. The chancellor’s spring statement was clearly strongly focused on getting the economically inactive back into work. Specifically, it was aimed at getting early-retirers and home-making parents back into the job market. If the chancellor’s moves succeed, it is very possible that the UK will actually have greater numbers of people in work despite a technical increase in unemployment. If so, then the boost to the UK’s economy might be greater than the raw figures might suggest. This would be excellent news for the housing market. Corporation Tax increases From April, businesses with profits of more than £250,000 will pay 25% Corporation Tax. Those with profits of between £50,000 and £250,000 will see their Corporation Tax increase to some extent but not the full 6%. Those with profits of less than £50,000 will continue to pay corporation tax at 19%. There are two reasons why this could be very relevant to the property market. Firstly, many property investors are now working through limited companies. They may find themselves forced either to pay the extra tax or restructure. Secondly, it could lead to businesses looking for ways to cut their costs. This could see firms that have retained office space either giving it up or downsizing it. This could potentially then create a ripple effect in the residential property market. At this point, however, that seems unlikely. Many knowledge workers will already be set up to work from home. For advice on mortgages please do get in touch FCA does not regulate some forms of Tax planning, for this service we act as introducers only.

If you’re self-employed and a homeowner or (potential) homebuyer, then now is the perfect time to have a mortgage check-up. After everything that’s happened, your financial situation may not be the best. Don’t, however, let that deter you from securing a suitable deal. Instead, use your business skills, strategy and help to get the mortgage you deserve. Set yourself a deadline for action If you’re a homeowner then you need to have a new deal ready before you are switched to your lender’s standard variable rate (SVR). Depending on your mortgage, you may be able to change deals earlier than this. Whether or not it makes sense to do so will, of course, depend on your circumstances. You should, however, definitely monitor the situation. If you’re a (potential) homebuyer then, in theory, you simply need funds in place before you complete. In practice, securing a mortgage (in principle) can help a lot with your home search. It reassures a seller that you are capable of making good on any offer you make. Ideally, therefore, you should start arranging your mortgage as soon as you realise you are serious about buying a property. Keep in mind that the level of demand can influence how long it takes to get a mortgage. Autumn is generally a fairly brisk time in the housing market so processing times may be longer. Demand may slow as winter arrives but this is also the time when staff are very likely to be on holiday (or off sick). Get professional help The UK has a lot more mortgage lenders than you might think if you just go by the adverts you see. What’s more, even if you have heard of a lender, you may not be aware of all their products. By enlisting the help of a mortgage broker, you can vastly increase your chances of finding the right mortgage product for your needs, wants and budget. In essence, a mortgage broker’s job is to assess your situation in much the same way as a mortgage lender. This will give them an idea of what products you could potentially access. The key difference between a mortgage broker and a lender, however, is that a mortgage broker works for you. They will therefore work with you to determine which product is the best fit and help you to put together your application for it. Going to a mortgage broker, therefore, reduces the likelihood that you will end up with multiple “hard” (visible) searches on your credit record. You may very well be accepted on the first product you apply for. Even if you don’t (for example, you choose to chance your luck slightly), you should still expect to find a good fit relatively quickly. A mortgage lender will only recommend you to apply for a product if they think you have a decent chance of getting it. Remember credit issues aren’t necessarily dealbreakers Credit issues weren’t necessarily a total dealbreaker even before COVID19. Post-COVID19 (and Brexit), it’s arguably in lenders’ best interests to be at least somewhat flexible about them. Of course, how much flexibility you may get will depend greatly on the lender. That’s part of the reason why having a mortgage broker can be so useful. It’s literally part of their job to know just how much flexibility lenders are prepared to offer applicants with credit issues. Realistically, the level of interest you get from lenders is also likely to depend on how attractive a candidate you are overall. Having a big deposit can do a lot to make lenders view you favourably. You might not even need to have the money in your bank account. If you have a reasonable expectation of releasing funds through the sale of your current home, this may be enough. At a minimum, show plenty of evidence of solid financial management. For mortgage advice, please get in touch YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

As a first-time buyer, there are, essentially, two steps to getting a mortgage. Firstly, you need to work on making yourself an attractive prospect to lenders. Secondly, you need to decide what kind of mortgage you want. Here is a simple guide to help. Making yourself an attractive candidate to lenders The exact qualification criteria for any mortgage will depend on the mortgage itself. With that said, lenders will assess candidates on similar points. This means that the general approach to making yourself an attractive mortgage candidate will apply to all lenders. Here are the key areas you need to address. Deposit When it comes to deposits, the golden rule is that bigger is better. With that said, there may be limits as to how much of your deposit can be gifted to you. Rules on this vary by lender. Saving in a Lifetime ISA (LISA), can be a useful way to boost your deposit. Just remember that LISAs can only be used to buy a first-time property or pay for retirement. If you withdraw money for any other purpose, you will be penalised. Affordability Affordability is essentially calculated on three factors. These are, the loan-to-vehicle (LTV) ratio, your current and predicted income and your current and predicted expenses. The LTV ratio will be set by your deposit and the price of the home you wish to buy. This leaves your income and expenses. Keep in mind that lenders will want to be reassured that you can afford the mortgage over the long term. This means that stability generally works in your favour. Try to avoid making any changes in the 6 months prior to applying for a mortgage. Certainly, do your best to avoid making any drastic ones. Also, remember that lenders will usually ask to see 6 months of bank statements. The main reason for this is to confirm that your financial standing is what you say it is. Checking your bank statements will, however, also give lenders a good idea of how well you manage your money overall. This means it’s advisable to be careful where you spend your money in the 6 months before applying for a mortgage. In other words, even if you can afford to splurge, it’s generally safer not to. You can always do it later, after you get your mortgage. Credit record Building up a credit record takes time so you should start working on it as early as you can. As you come closer to applying for a mortgage, keep a particularly sharp eye on your credit record. You need to identify them as quickly as possible to give yourself the best chance of getting them addressed before you apply. Deciding what type of mortgage is right for you These days, if you’re buying a home to live in, it’s largely taken for granted that you will want a repayment mortgage. For completeness, you can still get an interest-only mortgage. These are, however, now very niche. This means that your real choice is between a fixed-rate and a tracker mortgage. As the names suggest, fixed-rate mortgages have a fixed interest rate for an agreed period. Tracker mortgages are set at a certain level above the base rate. They move up and down as it does. Objectively, neither type of mortgage is better or worse than the other. Fixed-rate mortgages are not necessarily more economical than tracker mortgages (or vice versa). With that said, fixed-rate mortgages do bring a guarantee of stability. This can be particularly useful to first-time buyers as they will have minimal equity in their homes. It can therefore be well worth looking at taking out a fixed-rate mortgage as your first mortgage. Once you have built up more equity in your home, you can reassess when you come to remortgage. For mortgage advice please get in touch

Debt is sometimes a pretty-much unavoidable fact of life. It would be nice, for example, if we could all afford to buy houses out of cash savings, but for many people mortgages are the only feasible way of owning a home. While “good” debt may have a purpose, it can still be an advantage to be rid of it and “bad” debt (such as credit card debt) is generally something which should be dealt with as quickly as possible. So why do people keep carrying debt? Here are 3 common debt excuses – busted. I don’t have any spare money In fairness, this may seem to be true, in some cases it may actually be true, but ironically the tighter your budget is now, the more important it is to deal with debt. Here’s why, debt often becomes cheaper the less of it you have. Take credit card debt, say you maxed out a credit card and now you’re making the minimum payment each month to pay it off. Chances are most of your payment is actually going on the interest on the debt rather than paying off the debt itself. If you pay extra, more of your repayment will go on reducing the debt – and that means less interest the following month. So if you don’t seem to have any spare money, start by taking a long, hard look at your finances and accounting for, literally, every penny you spend to see if there’s any way at all you can eke out a little money to put towards your debts. If there really isn’t, then you need to look at ways of making extra money. The good news is you can earn up to £1K of extra income (over and above what you make in paid employment) without paying tax on it. This means that by becoming a micropreneur, you can potentially have another 1K a year to pay down your debts. It may not seem a lot, but it can make a huge difference. I don’t want my kids to think they’re different from their friends They are different from their friends. They’re your children and, clichéd as this may sound, quality time is the best gift you can ever give them. The memories you make will be with them for a whole lot longer than the latest must-have toy all their friends have. If you still need convincing, remember that children learn from their parents and they take those lessons with them into adulthood. Sensible money-management is one of the most important skills anyone can have in the modern world and parents need to set the example they want their children to follow. If you teach your children how to tell the difference between essentials and desirables and how to resist the temptation to pay for the latter on credit, you’ll be setting them on the best financial path for adult life. You may also be sparing them the burden of having to work out how to look after you financially in later years when they are working adults and you would like (or need) to retire. When X happens then… This one comes up all the time in all kinds of contexts. When Christmas is over then I’ll take out a gym membership. When the children are at school then I’ll start studying again. When I get a pay rise, then I’ll start paying off my debts. In fairness, in some cases, waiting does make sense, but in many others it’s just a way to put off dealing with a problem you’d rather ignore. In the case of debt the golden rule is “take action now”. The longer you leave debt, the more interest will be added to it.

You may be eager to buy a house but that doesn’t necessarily mean that you’re ready to buy one. Before you start getting too absorbed in the property listings, make sure you’ve considered these five points. Do you have current photo ID? You’ll need either a driving licence or a passport to apply for a mortgage.  If either is due to expire any time soon, then organize renewals as a priority.  Remember this can take time even under normal circumstances. How does your credit score look? Your credit score is a major factor in the mortgage application process. If it’s less than stellar you have two options. Option one is to look for a mortgage deal that is open to people with poor credit. Option two is to improve your credit score and then apply for a mortgage. From a financial perspective, the best course of action would be to run the sums on both options and see which delivered the best result. Of course, in the real world, there may be many other factors to consider. For example, if you know you need to move home anyway, you might prefer to take out a bad-credit mortgage even if it is more expensive than renting. That way, you’ll only have to go through the hassle of moving once instead of twice. Whatever you do, make sure that you take care of the sort of basic administration which can affect both your credit score and the lender’s checks. In particular, make sure that you’re on the electoral register at your current address. Also, make sure that all key service providers (like banks) have your correct address details. Are you covered for moving costs? If you’re a first-time buyer you still get a discount on Stamp Duty. In fact, you may not have to pay anything at all on properties worth up to £250,000. If not, you definitely need to factor this into your considerations. You’ll also need to think about surveying and conveyancing fees and mortgage arrangement fees. You may be able to roll any or all of these into your mortgage. If you do, however, you’ll be paying interest on them for the duration of the mortgage. Last but definitely not least, you’ll need to think about the cost of getting yourself and your belongings to your new home. There may be some flexibility on this cost. For example, you could move your belongings yourself instead of hiring movers. In principle, however, you should generally expect it to cost something. You need to be able to afford all of these and still have enough money left over to satisfy your lender’s deposit requirements. Ideally, you should have some money on top of this so you can be sure you have a bit of room to manoeuvre if you need it. What is your five-year plan? Even if you’ve ticked all the boxes so far, you might still want to hold off buying a house. Per the previous comment, buying a home involves paying a lot of upfront fees. Over time, these fees will usually be negated by the increased value of your property. You should, however, be prepared to allow roughly five years for this to happen. If you’re not totally confident that you can pay your mortgage and various other bills for the next five years, then you should think very carefully before committing to buying a house. If you do go ahead, you should be aware of the fact that you could end up having to sell for a net loss. Can you get pre-approved for a mortgage? Getting preapproved for a mortgage lets you know your home-buying budget. Remember, however, that it’s a limit, not a target. It also sends a message to sellers that you’re a serious buyer. This can give you an edge if there are competing offers. For mortgage advice please get in touch

Getting on the property ladder can be hugely challenging. When you’ve made it, however, it can be hugely rewarding. If nothing else, you're building up equity in an asset rather than handing over rent. If you’re thinking of buying your first home in 2023, here are some tips to help. Maximise your deposit There’s still time to open a Lifetime ISA (LISA). You can put up to £4K PA in it and get a 25% bonus at the end of the (financial) year. If you only have a Lifetime ISA for one year, this will only be £1K. It is, however, £1K of free money. If you’re looking to buy a home in 2024 or beyond, then you should certainly look at a (LISA). If you can save more than £4K PA, then you will need somewhere else to put your money. A regular Cash ISA is likely to be your best option. If it’s your only ISA, (for that year), you can save up to £20K PA in it. You don’t get a bonus but you do get your interest sheltered from tax. If you’ve been investing to build up funds, then you’ll need a plan for converting your shares into cash. It may be advisable to get help from a financial advisor. Work on your credit records Ask your landlord if they will report your rent payments to the credit bureaux. If they won’t, then consider signing up for a rent-reporting service. At the very least, keep a close eye on your credit records. If you see any unexpected events, follow up on them promptly. Mistakes do happen. If they happen to you, you need them corrected before you apply for a mortgage. Check whether you qualify for assistance to buy The two Help-To-Buy schemes (Equity Loan and Mortgage Guarantee) are not the only forms of assistance for first-time buyers. There is also the First Homes Scheme. The main qualification criteria for this scheme are set by the government. Local authorities can, however, fine-tune these criteria. You, therefore, need to check the details for your local area. Shared ownership can also be a way to get on the property ladder at a relatively low cost. Many shared-ownership schemes have a path to buying the property outright. Again, check the details of the scheme(s) in your local area. Find a mortgage broker A mortgage broker will be able to assess your finances and advise how much you can really afford to spend on a property. They will also know where you are most likely to get the most suitable deal It’s impossible to overstate the importance of getting the best possible deal on your mortgage. Remember, mortgages may have relatively low interest rates (compared to other credit products). They are, however, for very large amounts. This means that getting anything less than the most suitable deal can get very expensive very quickly. Get pre-approved for a mortgage Ideally, you should be pre-approved for a mortgage before you even start looking for a place to buy. There can, however, be a bit of leeway here, especially in a slow-moving market. If you do happen to see a property that’s a good fit for you, you can try approaching the seller. As long as they are convinced that you are a serious buyer, they may let you view the property. Being able to tell them that you have at least started the mortgage pre-approval process may do a lot to get them to take you seriously. Line up a conveyancer Good conveyancers are always in demand, even when the housing market is relatively slow. Do your best to find a reputable conveyancer in your area before you start your home search. This can make the process towards completion both much quicker and much easier. For mortgage advice, please get in touch We do not advise on investment products, and we act as introducers for it

In the UK, demand for rental accommodation tends to be consistently strong. If you have a spare room, you might want to tap into this demand. What’s more, you can earn up to £7500 a year tax-free under the government’s rent-a-room scheme. If this sounds good, here’s a simple guide on how to turn your spare bedroom into extra cash. Decide what you want from a tenant Probably the first question you need to answer is what sort of lease you’re willing to offer. To do this, think about these key questions. Do you want a full-time tenant or somebody who’s only there on weekdays? Do you want a long-term tenant or a short-term tenant? Do you want to let the room to a single person or a couple or are you open to either? Then think about your lifestyle and what that means for house rules. In particular, you will need to set a position on the following: Smoking/vaping Pets Noise levels Working from home Visitors particularly overnight visitors and/or children Lastly, think about how much you’re going to need to get on with your tenant personally. In other words, how much interaction are you going to have with them? If your paths are likely to cross fairly often, what sort of person will you be compatible with? Be clear on what you can offer The laws of supply and demand apply both ways. In other words, the more you can offer, the more interest you’re likely to get. The more interest you get, the more scope you have to charge a relatively high level of rent and/or be selective about your tenants. Prospective tenants need to know what they can expect: In the local area In the house and room From you personally Think about points such as: The local amenities Transport/parking Overall accessibility (especially for people with mobility issues) The facilities in the house (especially the internet and the number of bathrooms) The size and condition of the room itself (and whether it has its own bathroom). For completeness, if you want to participate in the rent-a-room scheme, the room will need to be furnished. Think about any aspects of your lifestyle that a prospective tenant might want to know about. In particular, do any of the following apply to you? Smoke/vape Have children Have pets Have a lot of visitors WFH/keep odd hours Prospective tenants will also need to know what terms you want to set. In particular, you will need to cover the following points. The rent and payment frequency (e.g. weekly/monthly) The deposit The contract length and any break period The arrangement for bills/CT For completeness, if you are using the rent-a-room scheme, the £7500 cap is for rent only. It is permissible to charge council tax and bills separately. Create a listing that's honest but sells A listing should highlight everything you can offer. At the same time, be careful to avoid creating a misleading impression of what the tenant can expect. All that will happen is that you get interest from people who will end up disappointed. Select your tenant When you are letting out a room in your home, there are generally two parts to tenant selection. Firstly, you find somebody you believe you can get on with (insofar as that’s necessary). Secondly, you undertake practical checks. For example, you may want to take references and/or do a credit check. If you are feeling particularly cautious, you may want to do a criminal records check. Keep in mind that a prospective tenant may want to undertake due diligence on you. You will need to decide for yourself how much information you are prepared to disclose. Set up a lease It’s easy enough to find lease templates to buy or even download for free. It can, however, be worthwhile paying a lawyer to draw one up for you. For more advice please get in touch