Persimmon Homes are now selling houses in some areas on a long lease of 999 years. The issue is that the ground rent is escalating and reviewed every five years. Nationwide have now made a decision that because of this, the properties would not offer suitable security and will not lend.

Why use Neil Soundy Financial Services for your mortgage advice in Cardiff

We will give you expert impartial advice on the mortgage market.

View the video on our homepage that explains how we can offer at least twice the choice of mortgages compared to a standard mortgage broker.

Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.

The Financial Conduct Authority does not regulate some forms of buy-to-lets.

We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.

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

Request Call Back

We can discuss your current situation and the options available to you before arranging a free no-obligation meeting.

Bath Building Society has recently launched a mortgage scheme that takes into account the income generated from renting a room in the property to increase the amount they will advance. This scheme is called Income Plus.

In this scheme Bath B/S take into account that you can earn up to £4250 per annum with no tax liability under the HMRC Rent a Room Scheme. This additional income is then taken into account to increase their lending compared to a traditional lender.

The basic details are as follows:

• Up to 50% of the loan amount can be covered by rental income from letting a room in the property. The balance of the loan amount must be covered by income
• The amount being covered by rent must be no more than 3 x the borrower’s income
• A minimum of 20% deposit is required.
• Minimum income of £20,000.
• Tenancy under licence, borrower to take tax advice.

Based on an applicant earning £25000 who wants to buy a property at £170,000 with a 20% deposit. The loan amount of £136,000 would be outside most lenders criteria. However by letting a room at £65 per week under Income Plus this would cover £63,000 of the loan, leaving £73,000 to be covered by income.

Why use Neil Soundy Financial Services for your mortgage advice in Cardiff

We will give you expert impartial advice on the mortgage market.

View the video on our homepage that explains how we can offer at least twice the choice of mortgages compared to a standard mortgage broker.

Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.

The Financial Conduct Authority does not regulate some forms of buy-to-lets.

We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.

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

Request Call Back

We can discuss your current situation and the options available to you before arranging a free no-obligation meeting.

A mortgage is probably the biggest financial commitment you’re ever likely to make.

So you need to consider how you or your family can maintain your standard of living and pay the mortgage in the event of death or serious illness.

If you go to a mortgage lender they can only give you one quote from their one provider but Neil Soundy Financial Services offers whole of market advice regarding protection.

To illustrate the difference

Clients borrowing was £102,000 over 25 year term. Mortgage in joint names.

HSBC recommended two single life policies costing :

Male client costing £15.12 per month

Female client costing £13.53 per month

Total monthly cost : £28.56 per month

Matching the same two single life policies NSFS quoted :

Male client costing £7.60 per month

Female client costing £7.79 per month

Total monthly cost : £15.39 per month

For identical cover, HSBC quoted premiums almost twice the price!

Contact us for a no-obligation review.

What Types of Protection Should I Consider?

It all depends on your circumstances as there are lots of options available.

For example, if you have a family, then as a bare minimum you should have life assurance which pays the mortgage upon death.

Another example is if you are reliant on your income or your partner’s income to pay the mortgage then there are two types of protection to pay the mortgage.

Critical Illness Cover (CIC) which will pay out a tax free cash lump sum on diagnosis of a critical illness.

Income Protection (IP) and that gives you a monthly income if you are unable to work due to illness.

There are a lot of protection policies out there so it can get very confusing!

The best thing to do is contact us with your circumstances and we can put together a protection package that will be best for you, within a budget you can afford.

Giving mortgage & protection advice to all of Cardiff including Pontprennau, Cathays, Roath, Cyncoed, Lisvane, Radyr, Lakeside, Whitchurch, Heath etc.

Request Call Back

We can discuss your current situation and the options available to you before arranging a free no-obligation meeting.

Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.

Santander has a range of Buy to Let mortgages starting with a 25% deposit. At this deposit, rates start from Bank of England Base Rate 0.5% plus 3.05% give a current pay rate of 3.55%. After the two years it reverts to the lenders standard variable currently 4.74%. Other options available.

The arrangement fee is fixed at £1499 as is added to the loan. This makes the product more attractive the larger the loan. Their lending criteria is different to most Buy to Let lenders as they take into account the need to cover voids and budget for ongoing repairs.

Other points to note is that they will decline all HMO lending and self employed applicants.

What other lenders offer?

Will actively lend to HMO’s and SPV’s.

Available up to 85% loan to value

Lend against the pay rate not nominal rate. (gives ability to borrow more funds)

No minimum income requirements for experienced landlords.

First time land lords who are first time buyers.

Contact me for the latest rates and criteria on all buy to let lenders.

Unusual cases are our specialty.

Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.

The Financial Conduct Authority does not regulate some forms of buy-to-lets.

We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.

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

I have researched the current availability of 95% mortgages that do not require additional security of a linked savings account or charge on a parent’s property.

The lenders that accept just a 5% deposit are:

Monmouthshire Building Society

Leeds Building Society

Newcastle Building Society

Yorkshire Bank.

This is a volatile area of lending with rates and lenders changing on a regular basis.

As with high loan to value mortgages you are penalised by paying a premium rate and offered a very limited choice of products. The Monmouth only offers a 5 year fixed rate. Maybe not the best idea if you need to keep your options open for career progression.

Unusually The Newcastle offer a 95% remortgage as long any additional funds are for home improvements only, no debt consolidation allowed.

Why use Neil Soundy Financial Services as your mortgage broker?

We give advice on all lenders and all mortgages.

View the video on our homepage that explains how we can offer at least twice the choice of mortgages compared to a standard mortgage broker.

Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.

The Financial Conduct Authority does not regulate some forms of buy-to-lets.

We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.

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

https://www.moneyadviceservice.org.uk/en/articles/choosing-a-mortgage-shop-around-or-get-advice

Request Call Back

We can discuss your current situation and the options available to you before arranging a free no-obligation meeting.

Obtaining BTL mortgages in Cardiff can be a simple affair requiring a 25% deposit and a reasonable rental margin. There are other options

BM Solutions have just changed their rental criteria (March 2013) and will now take up to 5 students on one AST and include DSS tenants.  Coventry will lend on 4 students on one AST, though there cannot be individual locks on bedroom doors.

If you require a reduced deposit Kent Reliance will lend with just a 15% deposit but you are paying a premium on the interest rate.

Most lenders require a minimum personal income of £25,000. The Mortgage Works has no minimum income requirement and will lend to age 90.

When looking to lend on a HMO the choice is more limited.  The introduction of additional licensing in Cathay’s by Cardiff Council has made the lack of choice starker. The usual lenders are Paragon, Monmouthshire Building Society, Leeds, Shawbrook and Aldermore. SPV mortgages on HMO’s are available.

An unusual feature of Paragon and Shawbrook are they will accept remortgages before six months at open market value if evidence of improvements can be proved.

Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.

The Financial Conduct Authority does not regulate some forms of buy-to-lets.

We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.

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

Request Call Back

We can discuss your current situation and the options available to you before arranging a free no-obligation meeting.