Creative Lending Solutions

25/10/2023

Reduce Your Outgoings by Checking the Basics

Times are hard right now, and if you’re struggling to balance your income against the outgoings, then one action that you can see if you can save money by checking to see if you’re paying too much for utilities each month.

Council Tax – You might be able to get money off your council tax – either Council Tax Reduction or a discount. If you’re on a low income or claim benefits, you might be able to get Council Tax Reduction. Each local council runs its own scheme, so what you can get depends on where you live. (1)

You might be able to get a council tax discount for your property – for example, if:

- no one lives there
- you live alone
- you live alone apart from a live-in care worker
- people you live with are full-time students or apprentices
- someone you live with has a severe mental disability
- you need a bigger property because someone has a disability

You can find out about getting a council tax discount on GOV.UK.

Gas & Electricity – The energy market has had a turbulent time over the last two years, however recently the wholesale cost of energy has fallen (2), and there may be opportunities to either find a cheaper tariff from your existing supplier, or look around for more attractive deals from competitors. It’s worth doing the homework and shopping around just to see if you could be on a different plan that better fits your energy usage needs.

If you are finding it difficult to pay your energy bills, be sure to mention this to your supplier and they may be able to assist you with a manageable payment plan – it’s important not to keep the head below the sand here and be upfront with your supplier if you foresee any financial issues on the horizon.

You can also get extra help from your gas and electricity supplier by signing up to the Priority Services Register (3). You can sign up if you’re either:

- of State Pension age
- disabled or have a long-term health condition
- considered ‘vulnerable’ by your energy network

You can check who your electricity network operator is on the Power Cut 105 website.

Water Bills – Use the Consumer Council for Water calculator to check if having a water meter installed could save you money. If you’re on a low income you might be able to get a cheaper rate from your water company. This is called a social tariff. Find out more about social tariffs on the Consumer Council for Water website.

Sources

Gov.UK (2023) How Council Tax works. Available at: https://www.gov.uk/council-tax/who-has-to-pay (Accessed 18 Oct 2023)
Ofgem (2023) Switch supplier or energy tariff. Available at: https://www.ofgem.gov.uk/information-consumers/energy-advice-households/switching-energy-tariff-or-supplier (Accessed 18 Oct 2023)
Ofgem (2023) Get help from your supplier – Priority Services Register. Available at: https://www.ofgem.gov.uk/information-consumers/energy-advice-households/getting-extra-help-priority-services-register (Accessed 18 Oct 2023)
All the information in this article is correct as of the publish date 26th October 2023. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information

01/08/2023

What’s going on with mortgage rates?

Chances are that you will have seen the news headlines in recent weeks – inflation remains way above the Bank of England’s target rate of 2%, meaning that interest rates are continuing to rise for far longer than originally expected. This is ultimately impacting mortgage rates making the cost of home ownership even more expensive, and that’s on top of contending with the current Cost-of-Living crisis.

A challenging market

According to Moneyfacts (1), the interest rate on the average 2-year fixed-rate mortgage deal has now increased to 6.01%, and with 5-year fixed deals not far behind at 5.67%, on average. This means that homeowners who are remortgaging this year are set to pay potentially hundreds of pounds more each month on mortgage repayments compared to their older deals, brokered when rates were considerably lower.

Analysts are now forecasting that the situation may get worse next year, with the average household remortgaging in 2024 set to pay up to £2,900 more per year on mortgage repayments due to the increased rates (2).

What’s behind these increases?

As you may have seen, The Bank of England has consistently increased Interest Rates since 2021 in an effort to reduce consumer spending and increase saving, to counter the high levels of inflation across the UK economy, which has been especially noticeable in the increased prices for everyday groceries and energy bills.

However, the increase in interest rates does not appear to be helping curb inflation as quickly as experts forecast (2), which has now started to drive a round of increases in mortgage rates, as many key lenders have been withdrawing their old products and re-launching with higher rates.

More challenges lay ahead

There is a bleak outlook to the market right now, especially as the Bank of England confirmed that over 1.3m households were due to remortgage their properties before the end of 2023, and will experience the shock of the new higher rates, having previously taken out a mortgage when rates were around 2% or lower (3).

To give an example of what this can feel like, the average mortgage holder is looking at a £200 increase in their monthly repayments if their mortgage goes up by 3 percentage points, according to the Resolution Foundation think tank research on the topic (3).

What can you do?

The most important thing is not to stick your head in the sand. If you think you may have some difficulties in paying the mortgage, then we advise that you contact your lender immediately. If you fall behind your mortgage payments by 90 days, then your lender can start proceedings to repossess the property, however there are avenues of assistance that can prevent you reaching this stage.
By speaking to your lender, you may be able to make a plan for the payments you owe, or even to create a forbearance agreement with your lender, to allow a short-term solution to catch up on your payments.

We recommend that as well as speaking to your lender if you are struggling, please do not hesitate to reach out to us and let us know if you have any challenges, we can take a look at your specific circumstances and offer practical advice that can hopefully assist in your situation.

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

There may be a fee for mortgage advice. The Financial Conduct Authority does not regulate some forms of Buy to Lets.

Sources
1. BBC (2023) Mortgage rates: Average two-year fix now above 6%. Available at: https://www.bbc.co.uk/news/business-65931132 (Accessed 19th June 2023)
2. SkyNews (2023) Mortgage crunch: Annual repayments set to rise by almost £3k next year. Available at: https://news.sky.com/story/annual-mortgage-repayments-set-to-rise-by-2-900-on-average-next-year-says-think-tank-12904111 (Accessed 19th June 2023)
3. SkyNews (2023) Mortgage misery: What is causing the crunch, will it get worse and what can you do if you are struggling? Available at: https://news.sky.com/story/mortgage-misery-what-is-causing-the-crunch-will-it-get-worse-and-what-can-you-do-if-you-are-struggling-12904191 (Accessed 19th June 2023)

All the information in this article is correct as of 29th June 2023. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Analysts say the Bank of England is "caught between a rock and a hard place, as it has to choose between pushing more mortgage borrowers towards the brink and letting inflation run riot".

07/06/2023

Mortgage rate ending this year? We'll switch it with your lender for free.

If your mortgage rate is ending shortly, we can help secure a new deal with your existing lender. A new product may be booked typically between 3 and 6 months in advance.

• No broker fee for product switches
• Quick and convenient process
• We handle the paperwork
• Rates often lower than arranging yourself
• Advice to help you decide on your best option • Advanced booking for added peace of mind
• No supporting documents required in most cases

What if rates improve after booking your new product?

No problem, no fuss and no fee for us to switch you to a lower option at any time prior to your new deal starting.

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

There may be a fee payable to your lender for the new product chosen.

https://creativelending.co.uk/product-switch/

04/05/2023

When is the right time to remortgage?

Are you happy with your current mortgage? If so, then that’s excellent news. However, if it’s been a long time since your mortgage was last reviewed, or the end term is coming up soon, then a remortgage may not be far away.

Your circumstances may also have changed in the years since your current mortgage was arranged, so it’s always worthwhile seeking advice to check whether the mortgage you hold is right for your current situation.

Things to consider;

• If you have a fixed rate deal and it is coming to an end, you will likely end up on your lender’s standard variable rate (SVR) once the fixed period has ended.

• If you have a variable rate deal* you may be worried about rising monthly costs. If you are concerned, you may find a fixed rate deal will give you peace of mind with fixed monthly costs. However, it might be worth weighing up the pros and cons of costs of remortgaging, and note that fixing into a rate means you may not be able to benefit in reductions in the future.

• If your share of the property’s value has grown* because the price of your property has gone up, lenders may be able to offer you better terms. A lower loan-to-value (LTV) could help you to access a lower rate by remortgaging, but it’s worth considering your options as a whole.

• If you want to borrow more money*, remortgaging by using the equity in your property can sometimes be a popular way to raise finances, however there may be cheaper ways to borrow.

• If you want more flexible features* – Your existing mortgage deal might have strict terms regarding overpayment and will prohibit you from paying more than the contracted monthly amount. If you’d like to repay more quickly, a remortgage could allow you to switch to a deal that allows a certain amount that you can overpay without incurring fees. Other features, you might want to look for include having the ability to apply for ‘payment holidays’ when cashflow is tight.

Speak to us to discuss your options further, we can help talk you through your circumstances and can offer our experience and knowledge of the market and products available.

*IMPORTANT – If you are currently in a deal that is not due to end and decide you wish to remortgage to another lender, there may be high early repayment charges to leave.
Your home may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for mortgage advice. The Financial Conduct Authority does not regulate some forms of Buy to Lets.

All the information in this article is correct as of the published date. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

28/04/2023

Thank you everyone for your recent support. I hope you all have a fantastic Bank Holiday weekend!

25/04/2023

The importance of mortgage advice

At a time when mortgages are in the spotlight, or because of the difficulties around being able to afford a mortgage as a first-time buyer, where do you go? The normal and first instinct might be to turn to your bank or building society – as they will have their own products.

However, it could be a good option to look at a wider range of options, depending on what it is you’re looking to do. As we have access to a wide range of lenders, we can take a look at the options available to you and provide a tailored service to match your individual needs.

Even before you find a house, a discussion with us could help you decide how much you could afford, how to much to save for a deposit and when you do find a property, provide a recommendation for a product that is suitable for your individual needs.

Once the mortgage application has been accepted, we’ll follow up with the lender to ensure that everything is going according to plan and keep you informed of progress at each stage of the exciting journey. We’ll correspond with your legal representative as well, to make sure that all the legal aspects of the property transaction, aiming to ensure they are delivered on time and with minimum hassle.

We’ll also be able to help you with keeping your home yours, should the worst happen. We can talk through your circumstances to help you find the most suitable range of protection cover that fits your needs now, and for the future ahead.

In a nutshell, seeking advice on a mortgage can help, saving you time, effort and giving peace of mind that you’re getting the bespoke advice for your own situation, as well as protecting you and your family for all life can throw your way.

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

The opinions expressed in this post are those of the authors. The information provided in this post is not intended to substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

13/04/2023

5 Top Tips for Selling your Home

Small changes can make a big difference when it comes to selling your home. Follow these tips to make your house as attractive as possible for prospective new buyers.

1. Increase kerb appeal
First impressions always count – from the outside, tidy the garden, w**d the driveway and jetwash the patio – repair damaged fences and clean your windows before any viewings.

2. Choose neutral colours
It’s a classic – keep your colours subtle to increase the appearance of space and help buyers visualise them making their own mark upon the property. You can still inject some warmth with choice accent colours on soft furnishings such as cushions and rugs.

3. Clean & de-clutter your property
Give your place a spring clean and tidying away unsightly items in cupboards to help create more space and make it easier for potential buyers to think about how they can see themselves living there.

4. Consider the time of year
It’s challenging to make a house look as attractive in Winter as in other times, so think about holding on if you can – improved weather, brighter days and plants in bloom can give your place a natural makeover.

5. Presentation
Last-minute care and attention to the little details before estate agents come to take photos or potential buyers arrange a viewing can pay big dividends. Turn your lights on, ensure beds are made, curtains are tied back and children's toys are tidied away. Conceal pet beds & toys, and tactically place fresh flowers and air fresheners to increase the appeal for visitors.

11/04/2023

Open Up Opportunities With A Remortgage

If your fixed rate mortgage period is set to come to an end shortly, you could save some serious money by remortgaging. This is where you can look to move your mortgage from one deal to another to secure better rates, or even as a means of releasing a lump sum that could be put towards something very worthwhile, such as a home renovation.

It’s always worth shopping around for a good deal, and mortgages are no different. After your initial fixed-rate period comes to an end, often lenders will put you onto a higher ‘Standard Variable Rate’ potentially costing you more – so it’s worth taking action before this happens.

Talk to us today and we will listen to your circumstances and provide advice and recommendations on what you can do, alongside giving access to a wide range of deals and rates from across the market, to help you achieve the right mortgage to suit your needs.

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

There may be a fee for mortgage advice.

Creative Lending Solutions Ltd trading as Creative Lending Solutions is an appointed representative of HL Partnership Limited which is authorised and regulated by the Financial Conduct Authority. Creative Lending Solutions Ltd is registered in England and Wales with company number 14490191. Registered Office: 12 Sheridan Gardens, Whiteley, Fareham, Hampshire, United Kingdom, PO15 7DY.

This firm does not charge a fee for an initial consultation but there may be a fee for mortgage advice. The precise amount will depend upon your circumstances and will be agreed with you before proceeding, but we estimate it will be £995.

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

The FCA does not regulate some forms of Buy to Lets. Think carefully before securing other debts against your home/property.

The guidance and/or information contained within this page is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

30/03/2023

Get Remortgage Ready

It pays to shop around to get the best value – whether it’s saving money when finding a new broadband deal, changing to a cheaper energy provider or reducing the premium on your car insurance.

Mortgages are just the same – if your initial fixed term period is coming to an end, or you’re looking to release a sum of money for a big project, then it’s worth getting prepared upfront for a remortgage. We’ll help you find the right deal for you, and to help kickstart, here’s a few handy tips on how you can get the process going:

• Seek expert assistance – contact us today for bespoke, expert advice. We’ll listen to your needs, guide you through the process and recommend only the most suitable remortgage deals to allow you to save money and fulfil your dreams.

• Plan ahead – allow up to six months for a remortgage to take place, giving time for research and decision making for what you’re looking for alongside the process of applying for a remortgage itself.

• Plan your finances – just as for applying for your first mortgage, it pays to make sure your finances are truly in order. Check your credit score, don’t apply for any new credit, avoid any large purchases, avoid payday loans or overdrafts at all costs to boost your chances of quick acceptance for a remortgage.

• Get your documents in order – just as for your first mortgage, documents will be required to prove your identity, current address and proof of income – save time by gathering your documents together upfront.

• If you’re self-employed – you’ll need to show additional proof of income with three years history. You can aid your application by showing future workload and incoming revenue stream.

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

There may be a fee for mortgage advice. The Financial Conduct Authority does not regulate some forms of Buy to Lets.

28/03/2023

We take the strain out of finding your first or next mortgage and have access to a comprehensive range of products from High Street lenders and specialist options not available directly.

You may have faced disappointment in obtaining a mortgage yourself or you may simply be unsure where to start. We’ll listen to you and recommend the most suitable solution for your needs – and if you’d like us to arrange the new mortgage too, we’ll support you throughout every step of the application process.