Worried about mortgage lenders withdrawing their products and deals?

The mortgage market is going through another unpredictable time with mortgage lenders withdrawing mortgage deals and increasing rates in a reaction to the recent news that inflation is slowing at a less-than-expected rate.

Do you need to remortgage now?
If you’re due to remortgage now, don’t panic! The good news is that help is at hand.

Despite the recent withdrawal of some mortgage products and rates, we still have access to thousands of mortgage rates and can search an extensive panel of lenders for you, finding deals and options that you may not have even considered. We’ll also be saving you hours of searching time and mortgage comparison headaches.

Speaking to an adviser can help during these unpredictable times
If you’re worried about remortgaging, seek mortgage advice from an expert. We have our fingers on the pulse of the mortgage market and are equipped with in-depth knowledge of the different mortgage products on offer. Our insider knowledge can make your remortgaging process simple, so are you ready to find the right mortgage for you? Speak to us today.

Call David on 07774 127179 or drop us an email to dbeach@finhawkmortgages.co.uk

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

 Approved by The Openwork Partnership on 12/06/2023

Staying with your current lender may feel like the safest option when your mortgage comes to an end, but that’s no guarantee that you’ll be getting the best deal. That’s why we recommend shopping around to get a mortgage that’s fits you.

When there is such uncertainty in the housing market at the moment, you might be thinking that staying put is the right thing to do. It may feel like the easiest, but unless you search the mortgage market thoroughly, you won’t know for certain that you’re on a mortgage deal that is the right deal for you. And staying with your lender doesn’t automatically guarantee this either.

Remortgaging – stick or twist?

If you’re looking to remortgage, it will have been a few years since you last went through the process. Your circumstances may have changed during this time, not to mention the changes that have happened to the mortgage market. We all know nothing stays the same, so why should your mortgage? It’s fine for something that worked a few years ago, to not fit quite so perfectly now.

We suggest seeking the help of an experienced mortgage adviser to help with your next remortgaging steps. We have access to a huge variety of mortgage options as well as an extensive panel of lenders. We’ll be able to access specialist search tools to help with the process. We can even find exclusive mortgage options with lenders that you may not have access to.

Take the weight off your shoulders with specialist help.

An adviser can be an invaluable guide to the variety of mortgage options out there, protecting your time and energy.

As well as using our in-depth knowledge of the mortgage market to search the thousands of deals out there, we can protect your time and energy, doing the legwork to find your mortgage match.

It might seem daunting looking at the mortgage market now, particularly against a less-than-positive financial climate. It may feel especially tricky if a change in your personal circumstances make you feel like your options are limited – such as a credit blip or redundancy. But it’s important to remember that there are thousands of mortgage choices out there – whatever your situation. And with an expert by your side, you’ll find one that suits you.

We know things may change, and we’ll be right by your side if they do.

If your mortgage expiry date is under six months away, you can secure a new deal now. This means you can spend your time finding the right deal, without rushing to meet the deadline of your mortgage expiring.

One final thing to remember when it comes to remortgaging, is that it isn’t just about comparing the mortgage interest rate, but the mortgage fees that your current lender will charge. If you’re looking to pay less in the long term, then it’s vital to look at the two of these together.

See what mortgage is right for you with an adviser from Finhawk Mortgages Ltd.

Your time and energy is precious, so why not let an adviser from Finhawk Mortgages Ltd do the remortgaging legwork for you? We’ll search and compare products on your behalf to find the right deal for you. 

Not only that, but once we’ve found it, we’ll help you through the whole remortgaging process – from scrutinising the small print, to making sure all your paperwork is in order, saving you unnecessary hours spent searching and mortgage comparison headaches. 

Our expert advice will make your mortgage search and application process pain-free, and our inside knowledge will protect you from any nasty surprises. So are you ready to find a mortgage that’s right for you? Get in touch with us today. 

Call David on 07774 127179 or drop an email to dbeach@finhawkmortgages.co.uk

Approved by The Openwork Partnership on 27/04/2023 

Centuries ago, Benjamin Franklin announced that “By failing to prepare you are preparing to fail”.

This is especially true when it comes to ensuring your personal finances are protected from the rainiest of days. However, with the rising cost of living likely putting pressure on your spending, you may be considering cancelling your cover, even when this could leave you more vulnerable than before. Read on to discover some of the reasons you should consider prioritising your financial protection over other cost of living worries.

Rising costs should highlight the necessity of financial protection
A recent survey by Which? has revealed that 65% of households have resorted to cutting back on essentials, selling items, or dipping into savings to pay their rapidly rising bills.

Financial protection products such as life insurance, income protection, and critical illness cover are sometimes the first things that people decide to cancel when things are tight.

However, without financial protection, one unexpected event or serious illness could plunge you into having to deal with a crisis with no financial support in place.

Life insurance means your family will not face financial hardship
Keeping your life insurance policy can ensure your family benefit from financial support if the worst happens.

Without protection in place, your family could perhaps no longer afford their regular outgoings, leaving them in a difficult financial position at what will already be a stressful time.

Cancelling your policy could jeopardise the financial security of your loved ones.

If you’re the main breadwinner, without your contribution to the household, your family may struggle to meet their regular financial commitments.

Income protection could support you while you’re unable to work
Injury, illness, or an accident could prevent you from working and earning your living at any time, making it hard to meet everyday expenses.

Even if you receive Statutory Sick Pay (SSP), paid at £99.35 a week in 2022/23, it may not be enough to cover your usual expenses and could force you (and your family) to adapt your lifestyle while you recover. Moreover, if you’re self-employed, you aren’t eligible for SSP.

Income protection could save you from such stress. If illness or injury prevent you from working, you can expect to receive up to around 60% of your wages.

Just as important as a payout, an income protection plan could give you access to rehabilitation services that grant you the ability to work again. As an example, 78% of Aviva customers who had rehabilitation support returned to work.

You could receive cover during a critical illness
If you cancel your critical illness cover to save money, you could find yourself out of pocket if you’re diagnosed with a serious condition. You may have to take an extended period off work on a significantly reduced income.

Critical illness provides a lump sum if you are diagnosed with a specified illness such as the following: Heart attack / Stroke / Cancer / Multiple sclerosis
Conditions may vary between providers.

While it’s unpleasant to think about, you should consider your own circumstances and whether you might be vulnerable if you cancel.

Having protection to offset unexpected healthcare expenses could be essential to preserving your financial wellbeing.

You may not feel you need insurance in all the areas discussed here. For example, some employee benefit packages include life insurance, so it’s worth checking to see if this is something you already have through your work.

The type and level of protection that is most suited to you will depend on your circumstances. We can help you decide what would provide you and your family with the most benefit and help you understand which policy is right for you, too.

Potential consequences
If you cancel your protection now with the intention of taking out cover again when your finances permit, you may find the premiums are significantly higher – especially if your health has deteriorated since you took out your original protection. You may also find there are exclusions based on pre-existing conditions.

The short-term savings often may not be worth the potential long-term vulnerability you cause yourself.

Your pension could be your “secret weapon” of protection
According to Pensions Age, 86% of savers are not on track to achieve their retirement expectations.

This serves as a caution that foregoing pension contributions could leave you short when it comes to your retirement funds.

So, pausing or cancelling your contributions now could have a negative effect on the size of your pension pot when you come to retire. This may leave you having to compromise on your later-life plans.

Discussing your pension with us could help to prevent overspending or under budgeting that may affect the funds you’d like use for your retirement.

Get In Touch
We can help to assess your financial wellbeing and assist in finding the right protection for you. This can help to safeguard your finances when confronted with unexpected circumstances. Please get in touch to discuss your needs.

Life insurance plans typically have no cash in value at any time and cover will cease at the end of the term.
If premiums stop, then cover will lapse.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028).
The tax implications of pension withdrawals will be based on your individual circumstances.
HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
Tax concessions are not guaranteed and may change in the future.
Tax free means the investor pays no tax.

Approved by The Openwork Partnership on 14.02.2023

With increases in the cost of living impacting on many household budgets, the cost of your monthly mortgage payment continues to be important.

On a capital repayment mortgage, the quicker you pay off your balance, the bigger your monthly payments will be. By having a longer term, you may benefit from a lower monthly payment, but you will also pay more interest.

Whether you’re taking out a new mortgage to buy your first home or have had a mortgage for several years and want to remortgage, it’s important to consider how soon you want to be ‘mortgage free’. You should weigh this up against a mortgage term that makes your monthly repayments affordable.

We can help guide you through all your mortgage options including advice on the term of your mortgage.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Approved by The Openwork Partnership on 30/01/2023

With over 10 years of record low interest rates, fixed rate mortgages offer borrowers the stability of knowing what the mortgage payment will be for a set period, which helps with budgeting.

Because of the way many lenders decide what rates to offer, we’re currently seeing tracker products priced a lot more competitively than fixed rate products.

Unlike a fixed rate, the monthly payment of a tracker mortgage fluctuates and the rate charged on the mortgage ‘tracks’ the Bank Rate usually for a set period. Whilst you may have to pay a penalty to leave your lender, especially during the tracker period, there are tracker products that have no early repayment charge, so you are free to leave without penalty.

If you’re coming up to the end of your fixed-rate and you’re faced with a higher interest rate than you were expecting, switching to a tracker at a lower rate may be tempting. Although you may find there are cheaper tracker products on offer than current fixed rates, you must be confident that you’ll be able to afford your repayments if the rate goes up.

We can help guide you through all your mortgage options including advice on whether a fixed rate or tracker product is more suitable.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Hardly a day goes by without the cost of living hitting the headlines. For many homeowners the increasing costs of owning and running a home is having a huge impact on household budgets. For those borrowers with a fixed rate mortgage, the recent increase in mortgage interest rates may not have an immediate impact. However, as mortgages are more expensive now than they were two years ago, you may see your mortgage payments rise when you next come to remortgage.

Overpaying on your mortgage now could save you more on interest down the line and help reduce your mortgage payments. It could also make sense to overpay on your mortgage rather than keep your money in a savings account, because you’ll earn more in interest savings on your mortgage than you could earn in a typical savings account.

An overpayment is any additional payment you make over your usual monthly mortgage payment. Overpayments can either be a one-off lump sum or a regular overpayment made throughout the year. Overpaying on your mortgage means you can potentially clear your mortgage balance quicker.

Lenders will offer you better rates if you have a lower loan to value. The more you can pay to reduce your mortgage, the potentially lower interest rates you’ll have when you come to remortgage to a new deal.

Overpaying on your mortgage might not be right for everyone. Using savings to overpay on your mortgage could leave you with less cash to fall back on in an emergency.

Not all lenders have the same rules for overpaying and there may be a penalty fee called an Early Repayment Charge if you overpay too much.

You should only make overpayments if you’re sure you can afford them. It’s a good idea to make overpayments if you already have an emergency fund, and you don’t have any other, more pressing debts that need to be repaid.

We can help guide you through all your mortgage options including advice on making overpayments.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

• Get help from a professional. Don’t rely on friends’ advice. The market is constantly evolving. Things that may have been true when your friends bought a house may not be true now.
• Look beyond the headline rate when choosing a mortgage deal.
• A mortgage adviser can help with more than just choosing the best deal, they can ensure the whole house-buying process runs as smoothly as possible.

Pete has just inherited £35,000 from his grandma and he’s thinking about investing in a buy-to-let property but has no idea where to start. So, what are the key things Pete needs to know?

Is the buy-to-let market a good investment?

Some of Pete’s friends have warned him that the buy-to-let market is still reeling from the effects of the covid pandemic. They claim, with more people working from home, there has been a population shift away from major towns and cities - reducing the demand for rental properties.

However, figures from Zoopla suggest that the buy-to-let market is enjoying something of a resurgence since covid restrictions eased. Demand for rental properties was reportedly up 76% in January 2022 compared to the same month in the previous four years. In addition to this, the stock of rental properties was down 39% on the five-year average, with rents rising sharply. All of this suggests that a buy-to-let property may well be a wise investment for Pete.

Is Pete likely to be accepted for a buy-to-let mortgage?

To be accepted for a buy-to-let mortgage, Pete needs to:

• Own his own home (outright or with a mortgage)
• Have a good credit report
• Earn over £25,000 a year
• Be young enough to pay off the buy-to-let mortgage before he reaches the lender’s upper age limit (generally between 70 and 75 years old)

Pete meets all of these requirements so, in theory, there’s nothing stopping him getting a buy-to-let mortgage.

So what else does Pete need to know about buy-to-let mortgages?

Buy-to-let mortgages are very similar to standard mortgages but there are some key differences Pete needs to be aware of:

• The minimum deposit is typically 25% of the property’s value
• Fees and interest rates on a buy-to-let mortgage tend to be higher
• Most buy-to-let mortgages are interest only, although there are repayment ones available. With an interest-only mortgage, you don’t repay the capital until the end of the mortgage term.

How much will Pete be able to borrow?

The amount Pete will be able to borrow is linked to the rental income he expects to achieve. Lenders usually ask that the rent you receive each month is 25-30% higher than your mortgage payment.

Other considerations for buy-to-let landlords

Pete shouldn’t assume that he’ll always have tenants. It’s important that he’s able to make his mortgage payments during periods the property is unoccupied or rent goes unpaid. He will also need savings for unexpected repair bills such as a broken boiler.

As well as these considerations, Pete needs to make sure he’s thought about how he’ll repay the mortgage. He shouldn’t assume he’ll be able to do this in full by simply selling the property. If house prices go down, there may be a shortfall for him to make up.

Buy-to-let and tax

Pete also needs to consider the tax he’ll have to pay as a buy-to-let landlord. As well as income tax on rent, Pete will be looking at paying capital gains tax on the sale of the property. It’s important that he factors this into his calculations when deciding if a buy-to-let investment is right for him.

The importance of professional advice

If Pete’s still keen to go ahead with a buy-to-let investment, the wisest thing he can do is speak to a professional mortgage adviser. They’ll be able to assess his particular circumstances and explain the options that are open to him.

If you’d like advice on buy-to-let mortgages, we’re here to help.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

One wet and windy evening, Rachel and Nathan decided to take advantage of their newborn, Eli, falling asleep in his Moses basket by getting an early night. Gently picking up the basket from its regular spot in front of the fireplace, they crept upstairs. No sooner had they settled in bed when they heard a massive crash from the living room. They ran back downstairs to find a pile of rubble in the exact spot Eli had been sleeping just minutes earlier.

Aware the incident could have been much worse, the couple were still left with an enormous mess to sort out. High winds had caused the inside of the chimney to collapse. However, Rachel and Nathan’s home insurance provider refused to pay for the structural damage because, according to their terms and conditions, the wind hadn’t been strong enough to constitute a storm. They also refused to replace the living room carpet because the couple’s contents insurance didn’t include accidental damage cover.

So, what can you do to make sure your home insurance provides you with the protection you’d expect when the unexpected happens?

Let’s start at the beginning - what exactly is home insurance?

Home insurance is split into two parts – buildings and contents.

Buildings insurance – this covers the building itself, including walls, floors, doors, windows and the roof. It also covers permanent fixtures such as baths, toilets, fitted kitchens and even wallpaper.

Contents insurance – This typically covers anything that can be taken with you if you move e.g. kitchen appliances and furniture.

Not all home insurance is equal

As Rachel and Nathan discovered to their cost, not all home insurance is equal. Although tempting to simply go with the cheapest option, it’s always best to check the details of any policy you’re considering to see exactly what’s included. For example, some buildings insurance covers garages, greenhouses and garden sheds but some policies don’t.

It's also a good idea to check for exclusions. You may find some insurers won’t pay out for anything considered to be the result of general wear and tear or damage that happens over time, such as damp or rot.

Meanwhile, contents insurance generally has a single-item limit, meaning high-value possessions may need to be named separately. You may also have to pay extra to cover belongings when they are taken outside your home.

Accidental damage cover is something else to think about. Rachel and Nathan decided to do without it. However, if they’d added it to their contents insurance, the cost of replacing their living room carpet may have been covered. According to MoneySuperMarket, mishaps account for over a quarter of all home insurance claims, so accidental damage cover may be worth prioritising.

Reading reviews of insurance providers can also be useful. Most events that result in a claim are pretty stressful, so you don’t need things like poor customer service making matters worse. According to the Association of British Insurers, home insurance prices fell to the lowest levels on record in the first quarter of 2022 meaning you shouldn’t have to pay a fortune for a good policy.

Do you really need home insurance?

Homeowners – although buildings insurance isn’t a legal requirement, most mortgage lenders insist on it. No one is going to force you to buy contents insurance but it can provide valuable peace of mind and combining it with your buildings insurance may save you money.

Renters – you don’t need to worry about buildings insurance – this is your landlord’s responsibility. However, contents insurance may be a sensible idea.

Key takeaways:

• What’s covered by home insurance varies from policy to policy, so you should check what’s included before making a purchase.
• Check the terms and conditions for any exclusions to make sure you’re getting the cover you need.
• Paying extra for accidental damage cover is worth serious consideration with over 25% of claims occurring as the result of mishaps.
• Read reviews before choosing an insurance provider – good customer service can be just as important as cost.

The Bank of England has raised interest rates which means bigger mortgage bills for some homeowners.

Since December 2021 the Bank of England raised interest rates from 0.1% to 1.25% to combat soaring inflation.

This move will have a knock-on effect as mortgage lenders raise interest rates in response, which will increase monthly payments for some borrowers.

What does a rise in interest rates mean for your mortgage?
Anyone without a fixed-rate mortgage is likely to see their borrowing costs rise, although how they are affected will depend on the type of product they have. Your adviser can help you assess your mortgage deal and figure out ways to make some much needed savings.

• Only borrowers with a mortgage that moves up or down with the base rate will be affected by the interest rate change.

• This includes tracker mortgages and standard variable rate mortgages (which you revert to when a mortgage deal ends).

Fixed-rate mortgages
Most mortgage holders are on fixed-rate deals so won’t see any change in their monthly payments. This is because the interest rate you pay stays the same for the length of the mortgage deal.

Standard variable rate mortgages
You will usually be moved on to a standard variable rate when your existing tracker or fixed rate mortgage deal ends. For example, if you take out a two-year fixed deal and you don’t remortgage, you will be moved to the lender’s standard variable rate. The rate is likely to be considerably higher than what you were paying before, so your monthly payments will increase, and lenders can raise the standard variable rate whenever they want.

Tracker mortgages
Homeowners with a tracker mortgage will find that their interest rate payments will now go up, but when this happens will depend on their lender. Tracker mortgages are a type of variable rate mortgage that follow the Bank of England’s interest rate. So, when official interest rates go up, the rate on your tracker will rise as well.

As a rule, they do not exactly match the base rate, but are set a level just above it. For example, if the lender’s rate is the base rate +1%, the interest you’d pay in total on your loan would be 1.5%.

Whatever type of mortgage you have, we can advise you about how the interest rate rise might affect you and address any questions or concerns you have.

How to save on your mortgage costs
The best thing you can do is to speak to your financial adviser. For example, if you’re on a tracker mortgage, they will be able to advise whether changing to a fixed-term deal to protect yourself from any further rises is a good idea. They will also let you know about the fees involved when making changes to your mortgage. If you are on a standard variable rate you can switch at any time, so with interest rates rising, your adviser can help you look at available fixed-rate deals.

Homeowners on fixed deals don’t have to worry about their mortgage going up until their current term ends. Most lenders will let you lock into a new deal six months before the current one ends so it’s a good idea to plan.

Whether you’re looking to remortgage or are a first-time buyer, we can help you find the most suitable deal for your circumstances and help keep your costs down.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT

A remortgage is the process of moving your home’s existing mortgage to one with a new lender. Remortgaging could help you save money if you weigh up the fees involved with the savings you could make. Here’s how it works.

People remortgage for many different reasons, including:

• Finding a better deal elsewhere – you might be on a standard variable rate (SVR) and want to move to a fixed-term rate.
• Coming to the end of a fixed-term deal on your current mortgage and wanting to lock in a lower rate with a new lender.
• The loan-to-value on the home is lower (as more of the mortgage has been repaid).
• Wanting to get ahead of a rise in interest rates, which would affect mortgage rates.

How a remortgage could help you save
One of the big reasons people remortgage is to save money on their monthly payments. If you’re on a standard variable rate that is higher than the fixed-rate deals currently available, you could save by switching – either to a fixed-rate mortgage or one that ‘tracks’ the Bank of England’s base rate.

If your home has gone up in value and you’ve paid off enough of your mortgage to give you a lower loan-to-value, it means you own more of your home and have less to pay off. Remortgaging could result in lower monthly mortgage payments because you’re paying off less of a loan amount (and in turn, less interest on it too).

How long does the remortgage application take?
The process can take between four to eight weeks from the time you apply so it’s good to start planning early. If you’re coming to the end of a fixed-rate or tracker term, your lender should tell you that your mortgage will move onto their standard variable rate1. This could be an ideal time to move if you find a better deal elsewhere, or you may even find an attractive deal with the same lender and go through a ‘product transfer’ (see box).

How much does a remortgage cost?

• Existing lender fees
  Your existing lender could charge you a fee if you’re leaving them early into a fixed period in your mortgage. This is known as an ‘early repayment charge’ and could be in the range of 1% to 5% of your outstanding mortgage balance. They will also charge you an ‘exit’ fee of around £50 to £100 to cover their administration costs.
• New lender fees
  Your new lender could charge you a range of fees, so before you commit it’s important to check what you will pay. This will help you calculate whether a move is financially beneficial overall.
  • Their fees could include:
    Application fee to set up your new mortgage. Could also be called an ‘arrangement’, ‘product’ or ‘booking’ fee. This could be around £1,000.
  • Valuation and conveyancing fees. Some providers won’t charge for these, but it’s worth checking if you are moving to a new lender.
  • Solicitor’s fee covering the legal paperwork to do with managing the transfer of your mortgage.

Is a remortgage right for you?
Whether or not you remortgage all depends on your situation and the type of mortgage plan you’re currently on. You may want a mortgage that lets you make overpayments, or you could be coming to the end of your current deal’s fixed term and think the lender’s SVR will be too high. One of the most important things you can do before you decide is gather your current mortgage paperwork, look at the fees and get some expert advice on your next steps.

What about product transfers?
If your mortgage is coming to its maturity date but you’d prefer to stay with your current lender, you could consider a product transfer. Switching to a new mortgage product with the same lender could save you money and time.

Our financial advisers can help guide you through choosing the option for you.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE