Sussex Mortgage Services Ltd

Sussex Mortgage Services Ltd Providing whole of market Independent Mortgage & Protection Advice; that is individual, tailored and unique to your specific circumstances and needs.

SMS specialise in providing independent whole of market Mortgage Advice, ensuring that our clients receive the best advice at all times.

There are two types of bridging loan: open and closed. Some are regulated by the Financial Conduct Authority, and some a...
24/03/2022

There are two types of bridging loan: open and closed. Some are regulated by the Financial Conduct Authority, and some are unregulated. Generally speaking, regulated loans cover home purchases, while unregulated loans cover investment or commercial projects.

An open bridging loan has no fixed end date, although most lenders will expect to be repaid within 24 months (some will accept a longer term of 36 months). Open bridging loans are commonplace when there's a degree of uncertainty over dates, particularly renovation projects or when a sale has fallen through.

A closed bridging loan has a fixed period for when it must be repaid and is suitable when you've already contracts on your sale and have a firm completion date. You repay the loan from either the proceeds of the sale or by taking out a regular mortgage on the property you've purchased.

If you're thinking of buying a property and you're wondering about which mortgage options are available to you, we'd love to help you with your plans. Let's chat on :
☎️ 01273 906 706�
📮 [email protected]

A bridging loan is secured against a property in much the same way as a regular mortgage, with fixed and variable rate o...
23/03/2022

A bridging loan is secured against a property in much the same way as a regular mortgage, with fixed and variable rate options and a loan-to-value cap that's generally around 75%.

The main differences are that bridging loans are a short-term option (generally less than two years) and have higher interest rates and fees. They're also available with no monthly repayments, where interest accrues each day and is repaid at the same time as the loan is settled.

A bridging loan doesn't necessarily need to be secured on the property you are buying. If you own another property with sufficient equity, you can use it as collateral: useful if the property you want to buy needs major works that make it unmortgageable in the short term.

If you're thinking of buying a property and you're wondering about which mortgage options are available to you, we'd love to help you with your plans. Let's chat on :
☎️ 01273 906 706�
📮 [email protected]

If you're not yet ready or eligible for a mortgage, you can still take steps to give yourself the best chance of being a...
04/03/2022

If you're not yet ready or eligible for a mortgage, you can still take steps to give yourself the best chance of being accepted whenever you decide to buy a home.

Take a look at the following to see if you can make any improvements:

Think before you make that purchase. Legitimate business expenses are useful for reducing your tax bill, but a lower declared profit can affect how much you can borrow. If you have plans for major purchases (new computers or gadgets, office furniture, pricey software and tools), consider holding off until you’ve bought your new home.

Work on your credit score. Even if you've never missed a payment in your life, having a high balance on your credit cards, large personal loans, or making too many credit applications in a short space of time can bring your score down. Reducing your debts and holding off any more credit applications will see your score increase, opening up more lenders and loans.

Look at your bank account. If your statements show you constantly overdrawn, lenders will question your ability to manage your finances, so concentrate on staying in credit for six months before you apply. If you really can’t clear the overdraft, consider moving the balance to a credit card as these are looked upon more favourably by lenders. You might even find a card with a 0% interest rate, helping you pay off the balance sooner.

Show evidence of savings. How will you meet your mortgage payments if your business hits a sticky patch? Can you show a cash reserve of a few months as a safety net?

Get on the electoral roll. Not every lender requires you to be listed on the electoral roll, but having an active entry increases your credit score and adds an extra level of security in confirming your identity and address.

If the information you provide meets the criteria of a typical high street lender, you should be offered the same mortga...
02/03/2022

If the information you provide meets the criteria of a typical high street lender, you should be offered the same mortgage deal and interest rate as any conventionally employed borrower.

All lenders have their own preferences around their ideal customer, and some favour certain professions within the self-employed sector. To avoid making a wasted application, speak to an independent broker with experience of self-employed mortgages. They can steer you towards the most suitable lenders, saving you time, effort and disappointment.

Sometimes, your income, industry or other documentation won't tick all the boxes of high street lenders. Fortunately, there are specialist lenders for self-employed mortgages who often take a more flexible view, although their interest rates and fees can be slightly higher.

Just with all mortgages, the amount of deposit you have will affect the offers available to you and who you can borrow from. Lenders see borrowers with larger deposits as less of a risk, and they reward that with better products like lower interest rates and longer fixed-rate terms.

When you're employed, it's easier for lenders to verify your income through payslips, P60s and contacting your employer....
28/02/2022

When you're employed, it's easier for lenders to verify your income through payslips, P60s and contacting your employer. When you’re self-employed, you probably won't have payslips. More than that, your income could well be less consistent than a regular monthly salary, so lenders ask for more detail.

Along with standard credit checks and confirming your identity and address, expect to be asked for the following when submitting your mortgage application:

two or more years' accounts (preferably certified by an accountant)
SA302 forms or a tax year overview (from HMRC) for the past two or three years
proof of any upcoming contracts (if you're a contractor)
evidence of dividend payments or retained profits (if you're a company director)
details of any personal borrowing like loans and credit cards
a list of your monthly outgoings and commitments
at least six months of bank statements going back from now
confirmation of assets, including savings accounts and investments
additional sources of income
proof of current rent or mortgage payments

You may also be asked if you received any Government support during the pandemic and what happened in your business to need it. Some lenders will accept those payments towards your income, while others exclude them.

If the above sounds a little daunting, we're here to help! Get in touch to talk about your business and which lending options are most suited to your circumstances.

Although we're using the term here for simplicity, there's actually no such thing as a "self-employed mortgage".. Howeve...
26/02/2022

Although we're using the term here for simplicity, there's actually no such thing as a "self-employed mortgage".. However, alongside the familiar names on the high street, there are some specialist lenders who concentrate on mortgages for the self-employed.

Before 2011, self-employed borrowers could self-certify their income. If your credit rating was strong enough, lenders would pretty much take your word for it if you couldn't prove your income.

Unfortunately, these loans were abused by borrowers and lenders alike, leading to inappropriately high mortgages being given to people who couldn't afford to repay them. Eventually, after the financial crash, self-certified mortgages were banned by the Financial Conduct Authority (FCA).

Today, although the application process is slightly longer and more involved, self-employed people can generally choose from the same range of mortgages as employed borrowers.

As of November 2021, there were 4.2 million self-employed people in the UK, and many of them will think about owning the...
24/02/2022

As of November 2021, there were 4.2 million self-employed people in the UK, and many of them will think about owning their own homes at some point.

Mortgage lenders will consider you self-employed if you own at least 20-25% of a business, and when that business provides your primary source of income. Among the many different categories of self-employment, some of the most common include:

freelancers
sub-contractors
sole traders
directors of a limited company
partners in a business
agency workers

However, just because you have your own business doesn't necessarily mean that lenders will consider you self-employed. If you're in full or part-time employment and you also have an additional source of income from working for yourself, you'll still be classed as employed if your regular job makes up your main income source.

Applying for self-employed mortgages does mean jumping through a few more hoops than other borrowers, and lenders will ask for detailed information about your finances and business. But fear not, because our handy guide is here to explain the process and light the way.

If you’re over 55 or , a could help you release your home’s equity without having an income or making monthly repayme...
03/02/2022

If you’re over 55 or , a could help you release your home’s equity without having an income or making monthly repayments : https://cutt.ly/XI4Kkm8

A Lifetime Mortgage is a type of equity release with a loan that's secured on your property, but has no requirement to m...
03/02/2022

A Lifetime Mortgage is a type of equity release with a loan that's secured on your property, but has no requirement to make monthly repayments. Instead, the loan is repaid either when the property is sold or you go into long-term care.

Because Lifetime Mortgages are based on the value of your home and the equity in it, rather than your income or ability to pay, they can be a practical option if your income doesn't meet the requirements for a typical repayment mortgage.

Lifetime Mortgages are available to borrowers from 55 upwards, and the percentage of equity you can borrow increases with your age. There's no upper age limit on who can borrow, and you can take out a single lump sum or draw down a series of payments.

You can use a Lifetime Mortgage for almost any purpose, including:

* paying off your existing mortgage
* making home improvements
* going on a trip of a lifetime
* making a major purchase
* gifting money to a loved one

Bear in mind that interest will continue to mount until the loan is repaid. This means a Lifetime Mortgage is not suitable for everyone, particularly when you wish to bequeath your home to a child or children.

However, a Lifetime Mortgage could be the answer if you want to use your home's equity to help your children onto the property ladder now. Nonetheless, it's essential that you and your beneficiaries all understand the implications on a future inheritance.

Thinking about or new experiences in your ? If you have an income and equity in your home, you could right into you...
01/02/2022

Thinking about or new experiences in your ? If you have an income and equity in your home, you could right into your 70s : https://cutt.ly/XI4Kkm8

If your home has equity and you have an income from a pension or other investments, remortgaging can help you make home ...
01/02/2022

If your home has equity and you have an income from a pension or other investments, remortgaging can help you make home improvements, fund other lifestyle purchases or even consolidate any unsecured borrowing at a more competitive rate.

Think carefully before securing your debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Straightforward remortgaging will take into account:

* the value of your property
* any loans already secured on it
* any personal debt you have
* any income you receive from pensions, work and investments.

The process is very similar to taking out a mortgage on a new home, except there's no moving involved. First, the lender will ask a surveyor to carry out a valuation. Then, after approving your loan, they take out a charge on your property and record it with the Land Registry.

If you decide to sell before the loan is repaid, your solicitor will settle the mortgage from the proceeds of the sale before sending you the remaining amount.

Lenders have different criteria for minimum property value, minimum loan amount and maximum loan-to-value ratio, so please get in touch if you'd like to know more.

Looking to buy a home in your ? Find out about the (retirement interest only) that’s especially for borrowers over : ...
28/01/2022

Looking to buy a home in your ? Find out about the (retirement interest only) that’s especially for borrowers over : 55 https://cutt.ly/XI4Kkm8

Address

Rear Offices, 174, Church Road
Hove
BN32DJ

Opening Hours

Monday 9am - 6pm
Tuesday 9am - 6pm
Wednesday 9am - 6pm
Thursday 9am - 6pm
Friday 9am - 6pm
Saturday 9am - 1:30pm

Telephone

+441273906706

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