Curwins Financial & Mortgage Advisers Ltd

03/09/2024

20/11/2023

We're pleased to say our website has been updated.

Why not have a look, there's plenty of useful information.

Even better if you have any questions or would like to review your mortgage or insurance protection arrangements then give us a call.

Tel: 01752 491111

www.curwins.co.uk or

www.mortgageadvisersplymouth.co.uk

23/10/2023

‘When will mortgage rates drop?’

Research (1) has shown that online searches for the phrase ‘when will mortgage rates drop?’ surged from practically zero a year ago, to almost 7,000 during June and July this year, as worry clearly dominates for UK mortgage holders.

Hopes that rates have peaked heightened in September. After 14 consecutive meetings where rates were increased, good news came when the Bank of England’s Monetary Policy Committee voted to retain Bank Rate at 5.25% at its latest meeting.

In what has been a challenging time for mortgage holders, particularly those with a fixed rate coming to end, keeping track of available mortgage deals is hard as lenders alter their offerings. For advice on any aspect of your mortgage, please get in touch.

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

Source: (1) Standard Life, 2023

24/07/2023

A summer of ups and downs

Summer is here and activity in the housing and mortgage markets is hotting up… and cooling down at the same time. Latest data from the Royal Institution of Chartered Surveyors has positive news on housing supply, with a run of thirteen successive negative monthly readings for new instructions coming to an end with a positive reading in May. This is the strongest reading for new listings since March 2021 (1).

House price outlook

House price growth dipped in May and notably the annual rate of growth fell to -1.0%, marking the first time since 2012 that house prices have fallen year-on-year (2). It remains to be seen which direction the market will take in the second half of 2023.

Some are predicting that many homeowners will be forced to sell up when their current fixed-term mortgage deals end, which would see a boost to supply that might reinforce the downward price movement. Analysts are also suggesting that first-time buyers (FTBs) could be delaying their homebuying plans in the hope that mortgage rates or house prices are poised to fall sharply before too long.

Bank Rate

Meanwhile, the Bank of England’s (BoE’s) Monetary Policy Committee (MPC) increased Bank Rate from 4.5% to 5% in June. Borrowing costs are now at their highest level since 2008. Those with tracker or variable rates have seen immediate higher repayments and those on fixed rates are contemplating their next move.

Mortgage Charter

Around 85% of lenders operating in the UK’s mortgage market have signed a government charter agreeing to support borrowers following a meeting with the Chancellor to discuss the impact of rising mortgage rates on homeowners.

The charter includes allowing borrowers to contact their lender for help without impacting their credit file and enabling borrowers who are up to date with payments to switch to a new mortgage when their fixed term ends without another affordability check. The ability to switch takes effect from 10 July and will be available six months before a borrower’s fixed term period expires.

Lenders will also help borrowers to plan for when their rate ends and offer support to those struggling financially. This may include extending their mortgage term to reduce payments, switching to interest-only, or temporarily deferring payments.

Return of the 100% LTV mortgage

One especially noteworthy development is the launch of a new mortgage product that allows FTBs to take out a loan on the full value of their home. The 100% loan-to-value (LTV) mortgage is exclusively for current renters and depends on their being able to prove a track record of timely rent payments. Otherwise, 100% LTV mortgages generally require a guarantor to cover any missed repayments.

Your home may be repossessed if you do not keep up repayments on your mortgage.
Sources:
1 RICS, 2 Halifax

31/05/2023

Bank Rate and the mortgage market

Mortgage holders have been on a rollercoaster these past 12 months, with rising rates changing the state of the mortgage market. Thankfully, clear-headed thinking is the antidote to market volatility.

Monthly movements
After a decade of ultra-low interest rates, the return to rates around 5% has been a shock to the system for many mortgage holders. Mortgage rates have settled somewhat since the uncertainty caused by the mini-Budget, but they still remain higher than before September 2022.
The result is higher mortgage repayments for many mortgage holders, putting a further strain on household budgets.

To fix or not to fix?
In an environment of rising rates, the certainty offered by fixed-rate deals can seem appealing. Having a fixed-rate deal offers a guaranteed interest rate, which means monthly payments will be the same from the start to the end of your term. The ability to plan your budget is a big plus, but your monthly payments won’t fall if interest rates do.

Here to help – whatever the interest
With inflation remaining stubbornly high, we’ll continue to monitor developments in Bank Rate and the mortgage market. Wherever your property journey is heading, we’ll help you navigate the market.

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

05/04/2023

Financial resilience remains a challenge

One in five workers would rely on their partner’s income or savings if they were unable to work, according to a recent report (1) that paints a worrying picture of the nation’s financial resilience.

More than one in 10, meanwhile, would resort to taking on debt to cope, with one in four working adults having less than £1,000 in savings. Over a third of those with non-mortgage debts owe up to £5,000.

Self-employed issues
While anyone can suffer financial hardship, self-employed people are especially vulnerable, the research notes, due to their less stable pattern of income.

Despite the greater risk, self-employed workers are less likely to have crucial safety nets in place. Just 6% of self-employed workers have an income protection product that they purchased themselves, compared to 16% of employees.

Safety net
Income protection serves as a safety net that provides a replacement for your salary if you are unable to work due to illness or injury. Protection insurance is seen by experts as a key step to achieving financial goals.

56% of UK working adults surveyed said they would feel more financially resilient if they had such a policy, a figure that rises to 60% for 25 to 44-year-olds currently without protection.

As with all insurance policies, conditions and exclusions will apply

1LV=, 2023

14/03/2023

Equity release used for gifted deposits

It’s estimated that first-time buyers (FTB) using a gifted deposit can get onto the property ladder up to 11 years faster than prospective buyers consistently saving.

The research (1) found that a UK household saving £180 a month would take 10.9 years to reach the average £23,549 deposit needed by first-time buyers in England.

In contrast, a gift could get FTBs onto the ladder much faster. The average sum (2) raised by equity release for use as a gifted deposit in the UK is £61,596 – far above the average deposit for a FTB.

Your home may be repossessed if you do not keep up repayments on your mortgage. A lifetime mortgage is a long-term commitment which could accumulate interest and is secured against your home. Equity release is not right for everyone and may reduce the value of your estate
(1) more2life (2) Key Market Monitor

31/01/2023

Is now a good time to remortgage?

Mortgage rates fell back in the last few months of 2022, having surged after September’s ‘mini-budget’. If you’re thinking about remortgaging, could now be a good time to secure a deal?

Bank Rate blues
The Bank of England has increased Bank Rate throughout 2022 and is expected to continue doing so in the new year. Even so, rates have settled of late after peaking at a 14-year high of 6.55% at the end of October.

It is hard to predict exactly what will happen with future mortgage rates. The Bank of England has already hinted, though, that further Bank Rate rises are on the way, which could make this a good time to lock into a fixed-rate deal.

Stick or twist?
It is important to be aware, however, that there is a chance that if you remortgage now, rates could fall. This would mean you’ll be stuck paying a higher rate for the duration of the term.

If you’re in the last six months of your current deal, it might be worth locking into a new fixed-rate mortgage now. But remember – if you want to remortgage before your current deal ends, you might have to pay exit fees.

Get in touch
Whatever you’re considering, we can help you weigh up your options. Get in touch today!

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

13/12/2022

"Hello everyone" , after a quiet year on social media (of any kind for me) this Comedy Wildlife Award winner inspired me to say "hello". After what's been an interesting year in the world of mortgages we're still here in our Plymstock, Plymouth offices, looking forward to whatever next year brings. Compliments of the season to everyone.