Blog Archives

Autumn Statement 2015: London Help to Buy scheme will assist buyers in the capital

25.11.2015

Those struggling to buy in the capital will take some comfort from the launch of the London Help to Buy scheme in today’s Autumn Statement. George Osborne announced that the more generous version of the national Help to Buy scheme will enable buyers with a 5 per cent deposit to get an interest-free loan for 40 per cent of the purchase price, topped up with a mortgage of 55 per cent.

Help to Buy has been hugely successful across the country but hasn’t had such a big impact in the capital because property prices are that much higher. Offering a 40 per cent interest-free loan to London buyers will make a huge difference, enabling many to get on the housing ladder when they simply couldn’t before.

Take the example of a one-bed flat in Camberwell on the market at £360,000. A 5 per cent deposit works out at £18,000 but if you don’t buy via Help to Buy, you then need to raise a mortgage for the remainder, which requires earnings of circa £85,000, pricing out many buyers. Under London Help to Buy, a 40 per cent interest-free loan would be available, leaving you with a mortgage of just £198,000 to raise. This could be done with an income of £50,000, which is much more achievable in the capital.

Adrian Anderson
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Adrian Anderson

Mortgage lending at its highest since 2008

20.11.2015

The mortgage market goes from strength to strength with the highest monthly lending figure since July 2008, according to the Council of Mortgage Lenders. Mortgage brokers are certainly busy as borrowers increasingly turn to an intermediary to help navigate the post-Mortgage Market Review world with its many challenges. Those who can jump through all the necessary hoops will be rewarded with some very competitive rates indeed – a trend which shows no signs of abating as lenders vie for business and interest rates look set to remain low.

The biggest challenge for borrowers is meeting lenders’ affordability criteria, as property prices continue to rise in many areas while wages fail to keep pace. First-time buyers will find it difficult to get themselves in a position to buy unless they have assistance from the Bank of Mum and Dad. This should keep a lid on the market and ensure we don’t return to runaway growth.

Jonathan Harris
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Jonathan Harris

Will older borrowers find it easier to get a mortgage?

12.11.2015

Building societies are set to review their maximum lending ages for mortgage borrowers, as more older homeowners are finding themselves unable to move or stuck on high mortgage rates. The Council of Mortgage Lenders also issued a report this week into the growing demand for borrowing in retirement.

These moves are timely, addressing a problem which has already becoming a real issue. Older borrowers are being penalised unnecessarily with lenders preferring to lend to first-time buyers than those with many years evidence of servicing a mortgage, simply because they are approaching retirement age. But it is not just those in their late fifties or early sixties who are struggling to get the mortgage they want – it can be a problem for those in their forties too.

Lenders must recognise that the ‘new norm’ will be later retirement ages as annuity rates are low and life expectancy increases. Property is the asset that will be increasingly called upon to bridge the shortfall and finding ways of doing this, which are fair and affordable, is essential.

When lenders are assessing mortgage applicants nearer retirement age they need to take more time to understand the other sources of income such as investment portfolios and different pension funds, which are more complicated than PAYE. It is essential that the question as to how the mortgage will be serviced and paid off is answered, but more time needs to be taken to look at all the options available to borrowers in their fifties.

There are some lenders who are already more sympathetic towards older borrowers. Get in touch for more information.

Adrian Anderson
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Adrian Anderson

Why you need a mortgage broker

05.11.2015

More borrowers than ever are choosing to arrange their mortgages via brokers, with the Association of Mortgage Intermediaries forecasting that they will take a 75 per cent share of mortgage sales within five years.

Since the Mortgage Market Review (MMR) banned most non-advised sales, lenders have been struggling to cope. They have been forced to train staff to give advice but this has resulted in significant delays for mortgage applicants. Some borrowers who have gone direct to a lender have had to wait many weeks just for an appointment.

The intermediary market is enjoying its best period since the financial crisis as lenders realise that if they wish to meet their lending targets, they need to embrace brokers.

Another consequence of MMR is that it has become harder for some people to get a mortgage, such as those requiring interest only, older borrowers, the self-employed or those paying school fees. Brokers are increasing demand as it is more difficult to place deals and lenders don’t have the resources to give advice.

Approach a lender direct for a mortgage and your success will depend upon qualifying for one of its products; go to an intermediary and they can advise on the right product for your particular circumstances. This means that the borrower is not only more likely to be approved but also to end up with the right deal for them.

Use a broker? You’d be mad not to. Please get in touch for more information.

Jonathan Harris
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Jonathan Harris

United Kingdom Sotheby’s International Realty links up with Anderson Harris

02.11.2015

Anderson Harris is delighted to announce that it has entered into a formal introducer agreement with world-renowned property company United Kingdom Sotheby’s International Realty.

Founded by Adrian Anderson and Jonathan Harris, highly experienced brokers with over 20 years’ combined experience of arranging finance in the high-net-worth and ultra-high-net-worth sectors, Anderson Harris is regarded as a natural fit alongside the well-established Sotheby’s brand. Anderson Harris arranges bespoke mortgage solutions for clients, as well as arranging remortgaging and specialist structuring of high-value property loans.

Simon Tollit, Sales Director at United Kingdom Sotheby’s International Realty says: ‘I am delighted to announce our agreement with Anderson Harris. As Sotheby’s International Realty continues to make its mark as one of the leading residential estate agencies in the UK market, a working relationship with a private finance company has become an absolute must. As many of our clients are buying property at the top end of the market we have needed to ensure that we have the best financial advisors behind us to help structure their purchases.’

Adrian Anderson, director of mortgage broker Anderson Harris, says: ‘We are delighted to be linking up with Sotheby’s Realty and look forward to assisting clients with their funding requirements. With interest rates so low, it can make sense for high-net-worth borrowers to take out a mortgage to fund their property purchase.

‘We have developed excellent contacts with the private banks, enabling us to identify the most suitable lender for each purchaser. It is not just UK nationals who can benefit from this competitive pricing but international buyers can also obtain funding on attractive terms.

‘We support the client from start to finish, really getting to understand their situation and aims, identifying the best lender for their circumstances, helping them with the application and ensuring it processes quickly and smoothly. If the client is in a contract race or needs to proceed quickly, we can facilitate that so they are in the best possible position to proceed.’

Adrian Anderson
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Adrian Anderson