First-time buyers – It’s all about your deposit!
Saving enough money for a deposit for your first home can be hard, especially if you’re in rented accommodation, or you’ve got a young family perhaps and plenty of regular outgoings already. So what can you do? How can you get that first step on the property ladder? Actually, once you’re into the habit of saving money, it may be easier than you think. Strong will power is what you need, plus a realistic plan on how to purchase your first home. That’s where MAPIO Financial can help, we can go through everything with you by completing a free cost of buying calculation, work out exactly how much you can borrow and what your monthly outgoings will be, to make sure it is within your affordability. Making a savings plan An ideal way to start is by opening a separate savings account, so that you’re not tempted to dip into it. Look for one with a higher rate of interest, or, if you can, it’s a good idea to use your annual Cash ISA allowance so that you don’t pay tax on savings unnecessarily. But do check the rates – not all ISAs are equal. Our top tip is to make a monthly payment into your saving account on the day you get paid; this is a great saving habit to create for the future. You’ll need at least 5% of the property’s purchase price for a deposit as a bare minimum. Even then, your choice of mortgage deals might be restricted, so if you want more choice then you’ll need a higher level of deposit. Considering all the options Many young people today are lucky enough to receive some financial support from the Bank of Mum and Dad. Parents and grandparents can help out with loans, gifted deposits, or can act as a guarantor for the mortgage lender (in which case, they become liable for paying the mortgage if you can’t). There are also other options, such as shared ownership schemes and the Government Help to Buy scheme, both of which are well worth considering and can make the difference of being able to buy your first home. The MAPIO team have extensive knowledge of the Help To Buy Scheme and so we can guide you through the steps involved, to see if this is a scheme that could be beneficial to you. It’s never too soon to start looking into these ideas. So why not pop in to the MAPIO office, or give us a call and let us know how your savings plans are stacking up? If you’re nearly there or you think you might have enough for your deposit, we can start looking into first-time buyers’ mortgages for you… there are lots to choose from, and some may need a lower deposit than you think!
Should the Stamp Duty Holiday get you packing?
Should the Stamp Duty Holiday get you packing. Find out more.
Payment holidays – important considerations
During these uncertain times it’s important to have the right information and guidance. The media is full of references to mortgage holidays and deferred payments, but do you really understand what the impact of these might be on your future mortgage products? You may have arranged a payment holiday with your lender, but what will the implications be in the longer term? So called “payment holidays”, missed payments, late payments and cancelled direct debits can potentially cause issues in the future, so we’re here to help you understand the implications of them and avoid any possible negative impact. By revisiting the information you have been given, we can guide you to make the choices that best suit your personal circumstances. Please call us at MAPIO mortgage advisors in York and we can advise you to help protect your home, and your family, during these unpredictable times. Let us help you.
Something you need. But we hope you’ll never use it.
Critical Illness Cover is a subject most people don’t like talking about, nonetheless an important one. When asked, most people will agree that protecting their family is one of the most important things to do, so it is surprising that so many families do not have any cover in place. No one knows what the future holds as there are so many things that are beyond our control, but you can get your finances in order so that when the worst happens, you are in the best position to deal with it. Critical Illness Cover is an insurance policy that helps protect you if you become critically ill during the term of the policy. It pays out a tax-free lump sum that you can use however you like, whether that’s to help cover health related costs, monthly expenses, make up lost income while you get better or even do some of the things on your bucket list! In our opinion, if you or a member of your family becomes critically ill, as a family unit you will need all the strength and courage to fight the illness, having a loss of income and financial worries on top could make it unbearable. The good news is, this can be taken care of. Here at MAPIO we will help you through the process of selecting the right insurance cover for you and your family. Having a financial expert guide you through the process is essential as it has never been more challenging to find the right cover. It is a complex process to compare products as the major companies do not agree on the naming or wording of critical illnesses, making comparisons more difficult. MAPIO are experts in both adult and children’s cover as both are equally important, we can make sure the whole family is protected. Having critical illness cover in place is not something you want to get value from, but if you did need to make a claim, it can make a positive difference. The appointment to discuss and arrange critical illness for you is completely free. Our experts can speak to you anytime with weekend and evening appointments also available. MAPIO mortgage experts Julie & John are both currently working from home and have access to everything required to help you. So call us today, we would love to give you the peace of mind that you have the right protection in place for you and family.
Need to Remortgage? We can help.
Remortgaging is not stressful and can save you money if you are in the right hands.
Covid-19 – what does it mean financially?
I understand that coronavirus (Covid-19) is creating challenging times for us all and I wanted to let you know that I am here for you and to make you aware of some options in the current market. Coronavirus and mortgage payment holidays For many the biggest financial outgoing will be your monthly mortgage payments. If you’re struggling financially due to coronavirus crisis you may have welcomed the recent promise by the chancellor to implement payment holidays of up to three months for those who are struggling financially. The mortgage payment holiday will provide flexibility in repaying your mortgage by allowing you to stop or reduce your monthly payments for up to three months. This won’t be suitable for everyone but could provide much needed help if you require this, albeit you need to be aware that this is not free money and you will be required to pay this back when your payments start again after the payment holiday. The first step will be to contact your lender and not everyone will be granted a payment holiday – most lenders have posted a link specifically for mortgage payment holidays due to Coronavirus on their websites and an online application service. There will be a fast track approval process in place, so you should get a quick decision and we are being informed that individual credit ratings should not be affected. It’s likely the lender will spread your outstanding payments over the outstanding term of your mortgage, so you will see an increase in your monthly mortgage payments. The shorter the term left on your mortgage, the larger the increase in your monthly payments, once the mortgage payment holiday is over. You should consider the impact this will have on your future financial commitments. When consulting the Lender websites, the updates are reasonably consistent and include the following key points to satisfy their eligibility criteria for a mortgage payment holiday: Your finances have been affected by coronavirus You are up to date with your monthly mortgage payments and not in arrears You have consent from everyone named on the mortgage For Buy to Let Mortgages, the lender may be able to consent to a payment holiday if once again, your mortgage payments are up to date and not in arrears and you can confirm that your tenants are having difficulty in paying their rent due to Coronavirus. Currently, the lenders can only offer a 3-month payment holiday for this situation. Therefore it is vital that if you are looking to apply for this, you do this at the most appropriate time for you and your individual circumstances. It is also vital that if you feel you need this support that you act fast to ensure that your mortgage does not fall into arrears. If you are coming to the end of a mortgage product, it is important that you understand that I/you WILL NOT be able to switch your mortgage to another preferential product with your current lender whilst on a payment holiday. For those of you who may have exercised the ‘overpayment’ allowance on your current mortgage, you may be able to ‘underpay’ on future monthly mortgage payments up to your overpayment reserve. Once again, you will need to contact your lender directly to arrange this. Protection It is more important than ever to keep your existing protection plans in place. News is currently circulating that future protection policies will no doubt have exclusions in place specifically for Covid-19 but also air borne viruses in general, hence the importance of keeping your current plans in place that do not have these exclusions and more importantly, provide the essential cover for you and your loved ones during these very uncertain times. I hope this update is helpful but if you need anything further, please do not hesitate to contact me. Most importantly please stay safe and healthy. Best regards Julie
AIP Vs DIP Vs MIP – What’s the Difference?
An AIP (Agreement in Principle) and a DIP (Decision in Principle) and a MIP (Mortgage in Principle) are all the same thing. The key word is ‘principle’. All mortgage lenders and estate agents have their preference for the name they like to use. Some say DIP, some say MIP or AIP. Here at MAPIO, we usually say ‘AIP’. By having an AIP, you have the reassurance that you’re eligible for a mortgage. Who needs an AIP? Whether you a buying your first property or moving home and you require a mortgage you will need an AIP to ensure you are in the best position to have an offer accepted on a property. Understanding How Much You Can Borrow? What can you afford? What will a lender loan to you? That’s your starting point on the journey to owning your home, and our experienced advisors will give you a clear view of how to get your finances in place. They’ll also help you to understand what’s happening, when, and why – and explain all of the costs involved. But the first step is to get an indication of whether or not you can borrow enough money, and to do that, you need an AIP.An AIP is one of the first things an estate agent will ask for when you want to make a firm offer on a property. How long does an AIP last? Usually, AIPs and DIPs are valid for between 60 and 90 days, whether they’re done face to face or – if you’re going direct to a lender – via an online system. But it’s important to remember that, as your situation changes, you do need to keep lenders up to date with anything that might impact their decision. Changing job, for example, or incurring a large debt. It’s an estimate, in writing, showing how much a mortgage lender is likely to lend you. Is an AIP binding, do I have to take it? No. AIPs are not binding, but they are a good sign that your finances show you’re in a position to make a serious offer on a home. This helps you, but it helps your sellers too. When you do have an AIP, our advisors at MAPIO will always check out the market too – to help you find the best deal for your situation. (Incidentally, most mortgage lenders don’t need to look into your credit score at this point, but they will do at the next stage in the borrowing process.) How do I get an AIP? When you ask us about getting a mortgage, we’ll ask you for information about your income, savings, and the deposit you’re thinking about for the property. Because we know the mortgage lenders well, we can use that information to find an appropriate lender for you, and then approach them to get the AIP under way. Getting an AIP takes us minutes – it’s free and there’s no obligation. We can take you through our in-house AIP process, which puts you in control of making an offer on the property you want. And as soon as you’re ready, we can then search the market for you to find you the very best deal. You’ll need: You also need to let us know about any debts, loans or commitments you have. And if you have a copy, your credit report is also useful. Be prepared, get the mortgage you want It’s never too soon to get an AIP, especially if there’s a property you’ve seen. Why not pop in to the MAPIO offices, here in Kings Square, and tell us what you’d like to buy? If you think you have enough for a deposit, and you’d like to get the ball rolling … we can look at getting you and AIP and find you the best deals. We can also discuss life insurance to protect your mortgage and your family, which many lenders look favourably upon. Remember you can buy through any estate agent and use our advisors at MAPIO to ensure you get the best deal, we have got over 50 years experience!
Are you making excuses that put your family at risk?
Are you making excuses that put your family at risk?
Let’s talk about getting a credit profile
A credit profile (or credit score) is what lenders use to see if you’re a risk or not, and to check you can manage your responsibility in terms of paying your debts. Everyone has a credit profile. It’s created from a pool of information that you add to, over the years, by paying for things regularly from a bank account. If you’ve been paying on time, then you’ll have built up a good credit score (sometimes called a rating), on your credit profile. If you’ve not paid on time – for almost any reason – then that score can go down. This is important, because credit providers (banks, credit-card providers, building societies, and even some shops), prefer lending money to people with good credit profiles. If you have a poor credit score, or profile, then it can be much harder to secure credit from a lender. You may even be penalised by only having access to higher interest rates. But if you have a good credit score, then you can get access to the better interest rates and deals on credit cards, loans, credit agreements and mortgages. A building society or bank will use one of three main credit referencing agencies (CRAs) in the UK – Experian, Equifax, and Noddle (Credit Karma) – to find out what your credit profile looks like. You can also find out what your current credit score is quite easily from those agencies, and it’s a good idea to check it from time to time because mistakes can and do happen. You could also use Clearscore, which is another free service. (If you do spot a mistake, get in touch with the credit agency and explain why the detail is wrong and ask for a correction.) It’s important to know that the information doesn’t stay on your report forever — a missed credit card payment will usually be wiped off after three years, for example. You can ask for a copy of your profile from all three CRAs. Each one offers different levels of detail, at different prices, but you also have the right to get a full statutory credit report from any one of them at a maximum of £2 per report. The credit scores themselves are calculated by taking several factors into account such as late payments, minimum payments, bankruptcy proceedings, CCJs (County Court Judgements), little or no financial history, and how often you’ve been applying for credit. You can improve your credit score in a number of ways. … and if you have a poor credit rating? Well, don’t panic. Life comes at you in different ways, we know that. We understand that it may not have been easy to stay on top of payments all of the time, and – while we’re not holistic financial advisers – we can talk to you about the information you’ve found in your credit profile, how that might impact a mortgage application and most importantly how we can help, whether you’re a first-time buyer or looking to remortgage.
Face the ‘What Ifs’ in life … So protect what matters
We all face big ‘What Ifs’ in life … So protect what matters
