Martin Olsen - CHL Finance Ltd

11/12/2022

Interesting article.. this just shows how important it is to have a chat with your broker about life insurance. There are ways to eliminate risks towards financial hardship when your significant other passes away or suffers from a critical illness...

If anyone would like a chat about risks and how to eliminate these risks or just have a checkup of existing cover, feel free to get in touch...

THE death of a partner always comes as a huge blow but it can also plunge people into financial disarray, as one grieving mother is discovering.

14/09/2021

Great day at the lovely Victoria warehouse today at the FAE 21, lots of good chat with lenders and getting ideas for the more complicated cases...

04/06/2021

Shared Ownership, what is it, how does it work and should I look into it?

If you’re struggling to find a home you can afford to buy, one solution may be shared ownership. This is a solution where you buy parts of a property, and then "rent" the rest of the property, this helps to reduce the biggest obstacle facing first-time buyers: the need to raise a large enough deposit.

For many people, shared ownership can provide a stepping-stone out of renting and onto the property ladder, and it can help you on the road to full homeownership.

What is shared ownership?

If a house costs £150.000, you will typically need £15.000 in deposit and a minimum income of £30.000 and have little credit commitments like a car loan/hire purchase, credit card payments etc.

So this can be hard to achieve if you are paying high rent or just want the security of owning a house.

If we take the same data and apply it for a shared ownership property also costing £150.000 this is how it works.

Let's say you buy a 50% share of the house (this does not mean you will be living with some random person) so you will need £75.000

The deposit is 5-10% of the share, not the full price, so that means your deposit will need to be between £3.750 and £7.500
And your mortgage will then need to be between £67.500 to £71.250.

That is a lot less deposit needed and a lot less mortgage, and this again means your income does not need to be £30.000 but can all the way down to £16.000-£14.500.

This is a massive difference from the £30.000 income needed for the 100% ownership.

The monthly payment for the mortgage if it is £71.250 would be £341, and the rent for the £75.000 remaining share would be typical be around £200 per month.

The total monthly cost would be 541.
And if there is a price increase on the property, you will also get this when and if you sell the property.

Another big advantage I think at least is that if your financial situation increases, you get more salary, inheritance, etc, you can then increase your share by "stair casing". So you for example own 70% of the property.
Typical you can staircase with buying blocks of 10%.
With 70% ownership, you only pay rent on the 30% left.
So after a few years, you could own all 100% of the property.

So what are the negative things with buying with shared ownership?

If you only pay your mortgage, but not the rent, then you can be evicted. But again this is the same if you have a 100% mortgage, if you do not pay the mortgage your home will be repossessed.

There could be a lease and you would need to check the lease details, but again this is the same with a lot of new builds, flats, etc. Even though the government is changing the rules around leases a lot.

Subletting, it is not allowed to sublet a shared ownership flat, you can though have a lodger/flatmate, but this is the same as with a regular mortgage, where you would need consent to let from the lender and this often means they will load your interest rate with at least 1%

So all in all it is typically pretty much the same rules, advantages, and disadvantages as buying a regular property, but with the huge advantage of you being able to become a house owner with a low deposit and low income.

If you are interested in having a chat about shared ownership and your options, feel free to get in touch.

Here are a few shared ownership properties in Liverpool that is for sale:
https://www.rightmove.co.uk/properties/84535645 #/
https://www.rightmove.co.uk/properties/80485737 #/
https://www.rightmove.co.uk/properties/107324294 #/
https://www.rightmove.co.uk/properties/107789285 #/
https://www.rightmove.co.uk/properties/106949111 #/
https://www.rightmove.co.uk/properties/86493661 #/

30/04/2021

Something strange is going on at the moment. The property market is racing at incredible speeds, but is it too fast maybe?

More and more people reporting that if you do not view and bid within a few hours when a property comes on the market it is snapped up...

Just shows you need to act fast and you should start with a talk with your mortgage adviser, get a decision in principle so you know how much you can buy for and you can get ready to bid straight away you see that perfect property...

BBC is reporting on people queuing overnight to be able to be first to bid on properties that come up for sale...

Feel free to get in touch for a free chat about your mortgage needs.

Thirty people waited outside an estate agent from Thursday to bid on 14 new properties in Aberdare.

19/03/2021

Great news for people thinking about buying newbuilds. Finally, there seems to be something done on ground rent payments.

The Competition and Markets Authority has ordered two housing developers to remove certain contract terms requiring leaseholders to pay ground rents that double every 10 or 15 years.

Countryside and Taylor Wimpey have been told they have to stop with their system of really putting homeowners in a difficult situation.

About time there will be a lot more focus on this, we can not continue having a wild west scenario where homeowners are taken as prisoners.

The Competition and Markets Authority has ordered two housing developers to remove certain contract terms requiring leaseholders to pay ground rents that double every 10 or 15 years

18/03/2021

More lenders are coming out with 95% Loan to Value (LTV) mortgages.
Great interest rates, 5 years fixed rate, both for first-time buyers, home movers, self-employed and employed borrowers.

Mix this with the stamp duty holiday, there have not been options for first-time buyers and home movers like this for many many years.

Are you buying a property for £150.000 you only need a deposit of £7.500

By offering a 95% LTV mortgage lenders are now lending to many first-time buyers, second steppers as well as the self-employed who are often overlooked by other lenders.”

Are you looking to buy a property, get in touch and we can see if you qualify for a 5% deposit mortgage.

Your property may be at risk if you do not keep up repayments on any debt secured against it.

16/03/2021

5% deposit loans for first time buyers are back.

Yes, we all know that the government will be backing 5% deposit loans with the major banks, but some lenders are already tomorrow launching 5% deposit mortgages for first time buyers (FTB)

To qualify for the new product, first-time buyers will be able to borrow a maximum of 4.49 times their income, ensuring prudent affordability; to get an accurate lending figure get in touch and we can secure you a decision in principle.

These 5% deposit loans are only available for first-time buyers, and only for houses.

But I am sure more will come soon, so if you are looking to buy, get in touch and we can get the ball rolling.

Your property may be at risk if you do not keep up repayments on any debt secured against it.

11/03/2021

Habito is launching a 40 years fixed-term mortgage. This sounds great, and there is even no early repayment charge, great.....

But if you start looking into the details, and as they say the devil is in the detail.

If you have a 10% deposit then the interest rate is over 5.35%, I am sorry to say but that is kind of a bad deal in my eyes...
Basically, the 10-15 years extra term you get is mainly done so you can pay more interest.

If you compare it to right now you can get a 10% deposit loan with 24 monthly fixed rate to only 2.5% with no early repayment charge.

If you have a 25% deposit you can get rates at 1.45% for 2 years...

I really do not see a point at the moment and probably for many many years as to why you would take out a 40-year mortgage with the rate offered....
https://www.theguardian.com/money/2021/mar/10/uk-40-year-fixed-rate-mortgage-habito-deposit-loan?fbclid=IwAR17e0FrYErY-9VVUQWTgCQ73SE8IAJKC0lN5hdUyNBV3HAaM1pnFCeIjes

Habito will let borrowers with a 10% deposit pay loan back at 5.55% over up to four decades

08/03/2021

Right now there is a super opportunity for all property buyers, this also covers new builds and also old properties.

With the extension of the stamp duty holiday, £500.000 threshold until the end of June, and with the launch of the 5% deposit mortgage coming into effect from April you as a home buyer have never had greater opportunities before, to save a lot of £££ in stamp duty and at the same time got a low % deposit mortgage.

But to take full advantage of this opportunity you need to act fast,. You need to have completed your property purchase before the end of June.

Get in touch today and let's have a chat about your options.

Your property may be at risk if you do not keep up repayments on any debt secured against it.