New Mortgage Rules UK: Will They Trouble You?

Back in April 2014, tougher lending rules were introduced throughout the United Kingdom in order to ensure that banks and lenders no longer over-burden borrowers.

One of the causes of the great recession we’ve just emerged from was borrowers taking on more debt than they could realistically repay – especially with fluctuations in interest rates. Just a small increase in interest rate led to huge increases in repayments, which some borrowers defaulted on.

new-mortgage-rules-2014, Will they worry You?

The new rules look at your total cash flow – and take into account how much money you have “spare” each month when your fixed monthly costs are taken into account. Things like credit card repayments, car finance repayments and even haircuts are being factored into the equation. Now banks will only approve mortgage applications if they’re absolutely certain that the borrower can repay what they owe, without difficulty.

Of course things change, people lose their jobs, and others go on to work their way up the career ladder – increasing their income at the same time. The new mortgage checks won’t stop people defaulting on mortgage repayments altogether, but they’re designed to prevent reckless lending – and promote responsible borrowing.

Lenders and experts are advising would-be borrowers to get their finances in order before applying for a mortgage, that also includes devising a realistic monthly budget that can be supported through bank statements and pay slips. While in the past lenders carried out limited affordability checks on borrowers, the onus is now on them to ensure that borrowers can afford to repay mortgages; otherwise they face large fines and other sanctions from the regulator.

If your finances are in order and you have a monthly budget devised, then the chances are that these new rules won’t trouble you, should you apply for a mortgage, buy and move into your new house. You also will need to be able to demonstrate that your income is sufficient to meet the repayments and other bills that you have to foot before a lender will approve your application, however. Yo

Removal Tips To Make Your Move Go Smoother

Moving house is always stressful. In this post we’re going to look at three great tips that will help your big day go that little bit smoother!

tips-for-a-smooth-house-move

• Stock up on boxes from your local supermarket

It’s amazing how much boxes cost if you buy them online, or even from your local packing or stationary shop. One of the best places to pick up boxes for free is from your local supermarket – supermarkets give boxes away because in a lot of cases it costs them money to dispose of them, or to have them taken away to be recycled. By giving them away to customers they can kill two birds with one stone – they can make you happy, and save money! If your local supermarket doesn’t have any boxes out for you to take around the till area, be sure to ask a member of staff, the chances are that they’ll have a mountain of boxes at the back of the store waiting to be crushed or taken away.

• Pay the charity shop a visit

You might not like the idea of “de-cluttering” or giving away some of your possessions – but by taking less “stuff” you can make your moving day a lot easier. Do you really need all of those clothes in your wardrobes and drawers? Do you need those rusty bikes in the garage – or even that broken furniture that’s stashed up in your loft? Be objective, be realistic and be honest with yourself. There’s no point hoarding things you don’t need because it’ll only cost you time and money when moving them to your new home. A new home should represent a new start – so get rid of things you don’t need. Of course you might not want to give everything away to your local charity shop – if you’ve got items of [real] value, why not list them on eBay or Gumtree? You can even make a bit of extra money to help ease the financial burden of your move!

• Keep important documents with you at all times

When we say “important documents” we’re referring to things like passports, birth certificates, marriage certificates and so on. The number of people who throw these things into boxes then forget where they’ve put them is truly mind-boggling. You can buy big metal document stores in supermarkets and stationary shops – put all of your documents into one of these, lock it with a key then put it into your car boot on the day of the big move. Don’t run the risk of losing your most important documents – some are irreplaceable, while others can be replaced but at a huge cost.

There are lots of things that can go wrong on your bid day, but by following these three simple tips you can save yourself time, money and worry – as well as a lot of sweat and tears if you manage rid yourself of the clutter that you no longer want, need or use.

If you would like any help or advice on Moving House or wish to book our estimator for a quote on your removal please call 0800 146 086  or simply fill out our on-line quotation form and we will promptly reply with a quotation for your removal

First Time Buyer Figures Hit Seven Year High in the UK.

As the UK emerges from recession, one of the best indicators to measure the strength of the economy is to look at first time buyer figures.

Increase in first time buyers in the UK

A recent article on thisismoney.co.uk discusses newly acquired figures from July 2014, these figures show that the number of first time buyers has increased for the first time since August 2007 – before the property bubble burst as the country headed into recession.

First time buyers are finding that the deposit needed to secure a property has decreased by around £3,000 on average – but most first time buyers are still coughing up a deposit of over £26,000 in order to be accepted for a mortgage, and to land their first home. 

Although some statistics point to the housing market picking up, other figures released by some mortgage lenders point to a slowdown in the amounts of money that they’re lending to buyers. These reports of decreased lending suggest that the property market may slow down once again in the near future.

There are various theories circulating as to why more first time buyers have been able to enter the market, with the most likely reason being the increase in government backed assistance for buyers thanks to the Help To Buy Scheme. This scheme offers higher loan to value mortgages for buyers, allowing them to purchase and move into a property with a much smaller deposit – sometimes of just 5%.

As the country continues to witness financial growth following on from the recession, many experts and observers are calling for buyers to be aware of the potential increase in mortgage costs, when the Bank of England increases the base rate. With buyers spending a higher proportion of their income on mortgage repayments, even a small increase in the base rate could lead to significantly higher mortgage repayments – which can in turn lead to financial difficulties.