Everything You Need To Know About Remortgages

A remortgage is where you take out a new mortgage on a property you already own – either to replace your existing mortgage, or to borrow money against your property.
For most people, their mortgage is their biggest financial commitment. And it follows that streamlining the largest debt can produce the largest saving – sometimes £1,000s each year. The main reason that you might want to remortgage is to save money.
Many of the best mortgages only last a short time – often two to five years – the typical length of time offered on a fixed rate, tracker or discount mortgage.
When it comes to an end, your lender will put you on its bog standard variable rate (SVR). It’s likely to be higher than your old interest rate and higher than the best buys available. If so, you want to be ready to remortgage to a cheaper rate. Talk to us around 14 weeks before your rate ends.
If you are tied into an initial deal then you might have to pay an early repayment charge which can be huge, often 2-5% of your outstanding loan. Plus, there is usually a small exit fee (it might call it an ‘admin fee’ or a ‘deeds release fee’) when you repay any mortgage.
This doesn’t mean you shouldn’t consider it as the savings can be big (especially if you have a large amount of mortgage debt). We can look at the sums before you commit to anything.
If the value of your property has risen rapidly since you took out your mortgage, you may find you’re in a lower loan-to-value band, and therefore eligible for much lower rates. Again, we can do the sums but it’s definitely worth a look.
Perhaps your current lender has said no to lending you extra money or the terms it’s offering aren’t very good. All lenders have different affordability calculations so remortgaging to a new lender might enable you to raise money cheaply on low rates. But remember to take all the fees into account to see if it really is cheaper than other forms of borrowing.
If you are looking at borrowing more, the new lender will ask you what the extra money is for. Surprisingly, it is likely to be more comfortable with you borrowing the money for a new car than for business purposes. Not so surprisingly, it might not want to lend you money to start a new business. The most commonly acceptable reasons to raise money are for home improvements and paying off other debts. Just be prepared for your lender to ask for evidence if you are borrowing a large amount, e.g. builder quotes, or proof that you have paid off the debts.
Maybe you want to be able to miss a payment. Changing jobs, going back into education, going travelling – whatever the reason, there are mortgages which will let you take payment holidays.

Get A Remortgage Today

Whatever flexibility you want in a mortgage, chances are it’s out there.
If it sounds like remortgaging could be the right move for you, discuss your circumstances with us and we will find a lender for you.

The Beginners Guide To Stamp Duty

If you are in the process of buying a property, you will need to think about the additional costs that you will face. As well as having to consider the overall cost of the property, you will need to factor in the cost of Stamp Duty.

Understanding Stamp Duty

If you are buying a residential property in England or Northern Ireland costing more than £125,000, you will need to pay Stamp Duty. Stamp Duty is the legal recognition of the purchase being made and, if the property is costing you more than £125,000, it cannot usually be avoided. Think of it as a tax that you have to pay as part of buying a home. The only buyers who do avoid paying Stamp Duty are first time buyers. If you are a first time property buyer in England or Northern Ireland, you are not required to pay Stamp Duty on the first £300,000 of a property purchase price. If you are buying a second home, Stamp Duty is payable on all properties costing more than £40,000 and an additional 3% is required on top of the standard rate band.

The amount of Stamp Duty that you are liable to pay will depend on the exact cost of the property and the rate band that it falls into. There are a few different Stamp Duty rate bands and it is calculated based on the amount of the property price that falls within each of these bands. As Stamp Duty is calculated as a percentage of the property cost, it’s different for everyone. For example, properties costing between £125,001 and £250,000 fall into the rate band of 3%. Those costing between £250,001 and £925,000 fall into the rate band of 5%, and so on.

How to Calculate Stamp Duty

With so many different rate bands and percentages to consider, calculating Stamp Duty is rarely easy. There are a lot of things to take into account and it’s not always easy to work out what needs to be paid. To help you out, we have created a Stamp Duty calculator. By entering the purchase price of the property, you can find out how much Stamp Duty you will be liable to pay.

To find out more about Stamp Duty and to quickly find out how much you will be paying, use our online Stamp Duty calculator.

The Landlord’s Guide To Insurance

It doesn’t matter whether you have recently bought a property to rent for the first time or you have been working as a landlord for a while, you need to think about landlord insurance. A lot of people underestimate the importance of landlord insurance, but it isn’t something that should be overlooked. Landlord insurance protects you and your property if anything were to go wrong. There are a lot of different options for landlord insurance, but taking out a policy doesn’t need to be daunting or costly. With a little bit of help, you can have landlord insurance set up in no time at all.

Taking Out Landlord Insurance

When you first start looking into landlord insurance, you will see that it is not a legal requirement. As a landlord, you won’t be breaking any laws if you don’t take out landlord insurance. However, that’s not to say that you shouldn’t take out a policy. A lot of standard home insurance policies won’t cover you if the property is being rented by tenants, meaning that you are not covered if something were to go wrong. This is why it’s always best to take our specific landlord insurance. If you don’t have landlord insurance, you could end up facing costs and stress that could have been avoided.

Landlord insurance works in the same way that standard home insurance does but it covers the additional issues that having tenants can bring, such as the loss of rent. When you are taking out landlord insurance, most insurers will ask what your tenants do. Though this doesn’t often affect the policy itself, you may be charged more if you are renting to students. This is why it’s always best to seek out a policy that specifically covers everything that you need it to, regardless of what that might be.

Landlord Insurance at Hawke Financial Services

As a landlord, it is your responsibility to provide a safe place for your tenants to live. This includes providing adequate smoke and carbon monoxide alarms. If you don’t fulfil this responsibility, you may find that your landlord insurance policy is not valid and that you are not covered for damage caused. When it comes to landlord insurance, there are a lot of different options available. Choosing the best policy can be difficult, but we are here to help. If you need help with taking out landlord insurance or you need professional advice, get in touch. Contact Hawke Financial Services today.