Author: Dax McLean

What is stamp duty? And can you add it your mortgage in the UK?

One topic that confuses many is that of Stamp Duty.

In some cases, when you buy a new home, you must pay a stamp duty.

But what are the exact rules involved? What are the costs?

Let’s find out…

What is Stamp Duty?

What Stamp Duty is now is different from what it used to be. Wait, does that sound confusing?

Let’s explain!

Stamp Duty was originally introduced to the UK in 1694 as a temporary tax to raise funds for the war against France.

At the time, it was also charged on hats, medicines, and newspapers.

Because Stamp Duty proved to be such a successful way to raise funds for the government, it’s still imposed on UK citizens today.

A Stamp Duty nowadays is a tax on property in England and Northern Ireland. It doesn’t apply to all properties but does to some.

In England, it is called Stamp Duty.

In Wales, it’s called Land Transaction Tax; in Scotland, it’s called Land and Building’s Tax. Different regulations apply in each country.

Non-UK residents purchasing UK property can expect to pay Stamp Duty, Land and Building Tax or Land Transaction Tax.

One thing to note is that as a non-UK resident, you will be charged more – usually around 2% more than a UK resident would.

When Is Stamp Duty Required?

There are instances where Stamp Duty applies and other instances where it doesn’t.

This can depend on whether you’re purchasing residential property, commercial property, or new build.

Let’s look at each scenario below:

Stamp Duty on UK Residential Properties

Stamp Duty may apply to your residential property purchase in the UK.

For instance, for any residential property you buy, that’s over £250,000 (in England and Northern Ireland), you will have to pay Stamp Duty.

Unless you’re a first-time buyer, you won’t pay Stamp Duty on residential properties up to £425,000. You will pay Stamp Duty on any amount above that.

This deal only applies to residential properties below the price of £625,000.

In Scotland, you will pay Land Buildings Tax on any residential property that sells for more than £145,000.

However, first-time buyers are exempt from Land Transaction Tax in Scotland if the property is under £175,000.

In Wales, things work quite differently, with all residential properties that cost more than £225,000 demanding Land Transaction Tax.

Stamp Duty on UK Commercial Properties

Commercial property Stamp Duty is the same in Scotland, Northern Ireland, and England. Buyers must pay Stamp Duty on commercial properties that cost over £150,000.

You will only be charged Stamp Duty in Wales if the property you’re buying costs more than £225,000.

Stamp Duty on UK New Build Homes

New build homes in the UK are subject to the same Stamp Duties as residential properties are assigned.

If you’re in England or Northern Ireland, you will pay Stamp Duty on properties that cost over £250,000.

In Wales, you will pay Land Transaction Tax on properties that cost more than £250,000.

What Does UK Stamp Duty Cost?

The amount you will pay in Stamp Duty will depend on the value of the house/property.

For instance, there is 0% stamp duty on properties up to £250,000 in England and Northern Ireland.

5% Stamp Duty applies to properties between £250,000 and £925,000, 10% Stamp Duty applies to properties between £925,000 and £1,500,000, and 12 % Stamp Duty on properties over £1,500,000.

The figures are a little different in Scotland.

There is 0% Land Building Tax on property that costs up to £145,000, 2% Land Building Tax on properties that cost between £145,001 and £250,000, 5% Land Building Tax on properties that cost £250,001 to £325,000, 10% Land Building Tax on properties that cost between £235,001 and £750,000, and 12 % Land Building Tax on properties that cost more than £750,000.

Wales also presents different figures for Land Transaction Tax. There is 0% Land Transaction Tax on properties up to £225,000, 6% Land Transaction Tax on properties that cost between £225,001 and £400,000, 7.5% Land Transaction Tax on properties that cost £400,001 and £750,000, 10% Land Transaction Tax on properties that cost between £750,001 and £1,500,00, and 12% Land Transaction Tax on properties that cost more than £1,500,000.

When Are Buyers Required to Pay UK Stamp Duty Fees?

Stamp Duty must be paid after the completion date within a set time. This period is 30 days in Scotland and Wales, but for those in England, it’s only 14 days.

How can you pay the Stamp Duty?

It’s made quite simple with the help of your conveyancer or solicitor.

If your solicitor or conveyancer can’t help you, you must file and post a paper return to action the process.

Don’t Want to Pay Stamp Duty in the UK?

Here are a Few Tips to Help You Avoid Stamp Duty

Affording Stamp Duty may prove challenging for your budget.

However, if you want to avoid paying Stamp Duty, Land and Building Tax, or Land Transaction Tax in the UK, you can do that in several ways.

Here’s a brief list of ways to consider:

• Rather buy a house boat, caravan or motorhome as there is no Stamp Duty charged on these.
• If you are a first-time buyer, purchase a buy-to-let, as you won’t be charged second home Stamp Duty and can benefit from first-time buyer discounts.
• Buy property under £400,000.
• If a family member will use the home, you can avoid paying second property Stamp Duty by putting the deed in their name and gifting them the deposit money.

Paying Stamp Duty in the UK Conclusion

Stamp Duty is a reality of the property market in the UK.

While Stamp Duty is unavoidable, there are ways around it if you’re willing to purchase a property with a lower value.

Remember to factor the cost of the Stamp Duty into the cost of a property when you’re interested in purchasing it.

Call us today on 01925 906 210 or contact us. One of our advisors can talk through all of your options with you.

The time has come to decide about your UK property and finances.

If you’re reading this, you either wish to sell your UK property soon or have more equity in the property you’re paying off.

And you know what that means, right? It means increasing the value of your property.

Increasing UK property value is a worthy investment, even if you don’t have any immediate plans to sell the property.

The good news is that you can take a few simple steps to increase your UK property’s value, and we share those steps with you below.

First, you must be aware that simple home improvement isn’t always the right step.

Often making minor repairs will improve a property’s value, but you can’t expect big ROI (return on investment) – sometimes, it just doesn’t work that way.

The trick is to know which improvements add the most value to a UK property and not to overspend exponentially, or you could lose money in the sale process.

What is the True Value of Your UK Property?

While it makes sense that your home’s value is the value assigned to it by a valuation specialist, that’s not always realistic.

Your property is only worth the amount that a buyer is willing to fork out for it.

If the area your home is in experiences high demand, the value of your property will go up.

Much the same, if your area becomes less desirable to live in, you may see the value of your property fall, even if you spend time and money sprucing it up.

You may advertise your property at a specific price but never get that exact price when you sell it.

If your home is in an excellent area but is falling down or riddled with structural issues, the price will naturally be pushed down.

What Adds the Most Value to a Home?

So, what adds the most value to a UK property?

Where should you spend your money for the best possible returns and, of course, ensure that your UK property value increases?

Unfortunately, for those who don’t want to spend a lot, the most expensive home modifications and improvements will increase the home’s value.

Consider the following for the most value-adding:

• Modernising the bathroom – you can buy a new shower curtain, install glass shower doors, and refresh the paint or tiles.
• Making the home more energy efficient – many people want an energy-efficient home for two reasons. The first is to do their bit for the environment, and the second is to cut back on energy costs.
• Installing an updated, ergonomic kitchen – adding a kitchen island for added workspace, incorporating kitchen stools, refreshing outdated appliances, or even just giving the kitchen cabinets a makeover can do the trick.
  • Spruce up the garden – there’s nothing more inviting than a lush green garden where the spring and summer months can be languidly enjoyed. A nice-looking garden will improve the value of a property.
• Converting the loft into a study, bedroom, or similar – lofts don’t always require planning permission, but it’s a good idea to ask first. You can convert the loft into extra living space for any amount between £15,000 and £50,000, which will add thousands to the value of your home.
• Adding an extension to increase the living and entertainment spaces – remember that extensions require planning permission before work can begin. Also, ensure that the amount you’re quoted for the work is money you can make back in terms of property value increase.
• Building a conservatory – this adds extra living space to the home. It could become a sitting room, a kitchen, or similar. Unfortunately, conservatories are rarely under £10,000, and there’s no guarantee they will add value to your property.

Simple Improvements Can Still Add Value to Your UK Property

If you’re not ready to go all out on big alterations or need more money to spend, you can make some simple improvements to increase property value.

This is not to say that simple improvements will be cheap, but they will be a little cheaper than major alterations requiring a much bigger financial commitment.

These include:

• A fresh coat of paint – make sure all the doors, walls, and window frames are neatly painted in a modern yet neutral colour.
• Kitchens can be modernized by painting or replacing cabinet doors, installing new cabinet and door handles, replacing tap handles and faucets, changing the old appliances, and so on.
• Bathrooms can be updated by replacing the shower curtain with a glass shower door or updating the tiles, for starters.

Home insulation upgrades are also a great way to make your property more attractive to prospective buyers.

David MacMichael, from Mac Surveyors, explained to us why:

“Improving your home’s EPC rating makes it significantly more attractive to prospective buyers. A higher rating signals better energy efficiency, which can lower utility costs and make the property more environmentally friendly. Buyers today are increasingly aware of sustainability, and homes with better energy performance are seen as future-proof investments, reducing their carbon footprint while providing long-term financial savings. In competitive markets, a good EPC rating can set your home apart, ensuring it appeals to eco-conscious buyers and those seeking lower running costs.”

Can I Remortgage My Property to Add Value to the Home?

If you remortgage your property, you can use the awarded money to carry out home improvements and alterations that add value to the home.

Keep in mind that remortgaging will come with an interest rate attached.

You will get a fairly good remortgage deal if you have a lot of equity in the home (equity is the amount of the loan you have already paid – this is the portion of the property you already own).

It’s not a good idea to remortgage a home if you don’t have a lot of equity in the property yet.

How to Add Value to Your Property Conclusion

Adding value to your property starts with knowing what your current value is.

You can use a free valuation service such as Zoopla to get a good idea or hire a valuation specialist to assist you.

Once you know what your property is worth, you can take the next step to improve the home.

It’s a good idea to look at what the properties in your immediate neighbourhood are selling for and what condition they’re in before you commit to any improvements or alterations.

Call us today on 01925 906 210 or contact us. One of our advisors can talk through all of your options with you.

Your mortgage will likely be one of the biggest investments of your life.

And because you’re spend many years repaying the mortgage about, the mortgage you get and the interest rate attached to it are of the ultimate importance.

Knowing where to find the best mortgage deals UK can make a big difference to your monthly instalments.

By making a wise mortgage deal choice, you can reduce the total amount you’ll have to pay over the span of your mortgage.

If you’re on the hunt for mortgage best buys UK, you’ve come to the right place.

We’ve pieced together some top tips to ensure that you get access to some of the best mortgage rates on the market.

With these pointers in mind, you can compare options and secure mortgage best buys UK for yourself.

Alternatively, working with a mortgage advisor can help you to improve on the options you may find while searching the market for yourself.

How to Get Mortgage Best Buy Rates in the UK

Everyone in the property market wants to ensure they get the best possible UK mortgage rates.

While some do manage to get low interest rates and low fees, it’s not always possible for those who don’t know where to look or what to look for.

Finding mortgage best buys UK can be a challenge for the average Brit, but by following a few simple steps, you can improve your chances of finding the best possible deal so that you can pay off your loan without it crippling your budget or putting you in financial hot water in the future.

Whether you’re using a financial advisor or not, it’s a good idea to educate yourself on mortgage best buys and what’s best to look for.

Below are a few steps you can take to ensure you cut back on mortgage costs without losing out on any perks.

1. Use a Mortgage Comparison Tool

Once you’ve got a property in mind and know how much you need to borrow, you need to look at the interest rates offered as this will determine how much you eventually pay back.

You could start with your bank, but you won’t be able to do much of a comparison as they will only provide their own deals and rates.

To shop around effectively, you should use an online mortgage rate comparison tool.

These platforms provide an overview of deals available, including what to expect for your monthly instalments.

Of course, you won’t be able to see every deal as some mortgages are only offered through certain brokers. But you’ll get a good idea of what’s available.

2. Increase Your Mortgage Deposit UK

Borrowers who are able to put up a higher deposit than the minimum are seen as low-risk and therefore eligible for a reduced APR.

Obviously, when you put down a bigger deposit, you need to borrow less money and your monthly instalments will also be lower.

Most of the mortgage best buys UK offer the lowest rates when there’s a deposit of 20% or 25% put down.

3. Improve Your Credit Score

Your credit history and score will determine what mortgage rate you’re offered in the UK.

If you have a poor credit score, mortgage lenders will view you as a high-risk client.

The better your credit score is, the greater chance you have of getting a good mortgage rate deal.

You can improve your credit score prior to applying for a mortgage by:

• Checking your credit report and ensuring that the details are up to date.
• Register on the voter’s roll as this provides the latest accurate personal information for you, and automatically increases your credit score.
• Avoid applying for credit for some time as every credit check will appear on your credit history and reduce your credit score.
• Ensure you pay all credit bills on time and in full every time.

4. Get Help from a Mortgage Broker When Searching for the Mortgage Best Buys UK

Using an online mortgage rate calculator will help you determine a good rate.

Then, consider if a mortgage broker can help you beat that rate.

The job of a mortgage advisor is to hunt for the best possible deal for you and to advise you on the various home buying schemes that you may qualify for.

During this process, you will find that some of the deals aren’t available through a broker but only through a direct lender.

Mortgage advisors may try to sell you additional products such as life cover, contents insurance, and mortgage payment protection insurance.

While some of these products may be useful to you, keep in mind that they’re not compulsory.

5. Check Your Mortgage Contract for Possible Hidden Costs

Most mortgage borrowers aren’t aware that there are additional feels included in a mortgage, not just the mortgage interest rate.

In some instances, you may acquire what you think are mortgage best buys UK with low interest only to find that there are additional fees that will be applied and increase the total cost of your loan.

One of the biggest additional fees to look out for is the arrangement fee (this can also be called an establishment fee or setup fee) which is often £2,000 or higher.

Of course, there are other fees that you might not expect that might catch you out.

For instance, settling your mortgage earlier than expected could be penalized and if you overpay each month in hopes of reducing your total loan payment time, you could incur up to 5% of the amount you’ve overpaid.

Not all lenders charge these fees, but some do, so it’s best to look for the added fees in your contract or discuss additional fees directly with your mortgage provider.
Conclusion

If you’re on the lookout for mortgage best buys UK, take the time to consider various options before making a final commitment.

You will find that the best mortgages are often provided by a mortgage advisor who can help you scour the market based on your individual requirements and your current financial situation.

To save time and money, follow the steps above or get in touch with your chosen mortgage advisor without delay.

Call us today on 01925 906 210 or contact us. One of our advisors can talk through all of your options with you.

If you find your mortgage payments overwhelming and you’re struggling to make ends meet, you could apply for a mortgage holiday (or mortgage payment holiday) in the UK.

In this article, we will discuss mortgage payment holidays, how they work, how to qualify for one, and the expected pros and cons.

What is a Mortgage Holiday UK?

What is a mortgage holiday UK and what does it involve?

A mortgage payment holiday UK is an arrangement that’s come to between a borrower and a lender that allows the borrower to take a temporary break from their mortgage repayments.

Some mortgage lenders provide up to 6 months’ holiday from mortgage payments, but this depends on your previous payment history and, of course, your current financial situation.

Can I Request a Mortgage Holiday as a Result of Coronavirus Impacting Income?

Over 1.6 million mortgage payment holidays in the UK were granted at the start of Coronavirus in 2020. While these holidays made a big difference to those experiencing them, they could not continue to be offered long-term.

It’s important to note that you can no longer request a mortgage holiday in the UK using Coronavirus as a reason.

That said, some mortgage providers still provide mortgage payment holidays at their own discretion.

One of the perks of Coronavirus related mortgage holidays is that they would not show up on your credit history. All other types of mortgage holidays will show up on your credit history and may impact your credit score.

What are the Pros of a Mortgage Holiday?

First and foremost, the biggest pro of a mortgage payment holiday UK is that it gives you some breathing room for a short period to get back on your feet.

Another pro is that avoiding falling behind on your mortgage payments could affect your credit score more negatively than a UK mortgage holiday.

What are the Cons of a Mortgage Holiday UK?

As with all things in life, some cons come with mortgage holidays in the UK.

It’s important to note that a mortgage holiday UK is only suitable for borrowers experiencing a short-term or temporary financial shortfall.

If your income is permanently reduced, there are better routes to take.

The biggest con to remember is that while you’re on a mortgage holiday, your interest is not and will start racking up.

At the end of the UK payment holiday on your mortgage, you’ll face higher monthly mortgage instalments, which could negatively impact your household cash flow.

Of course, your credit score will be affected, and taking a mortgage holiday in the UK could impact your future creditworthiness.

How Do I Qualify for a UK Mortgage Payment Holiday?

Not everyone will qualify for a mortgage holiday, even if the lender they’re with offers them.

Several factors will determine whether you qualify for a mortgage holiday or not, as follows:

• The lender – not all lenders offer mortgage holidays
• Your specific mortgage contract – some contracts don’t allow for mortgage holidays
• Your current financial situation – if you’re going through a temporary financial problem, going on maternity leave or similar, you may be able to get a mortgage holiday
• Whether you have overpaid on your mortgage in the past
• Whether your account is in arrears – if your mortgage is in arrears, you won’t qualify for a mortgage holiday

How Do I Apply for a Mortgage Payment Holiday UK?

The first step you need to take is to read your mortgage contract and pay special attention to the terms and conditions.

If the mortgage provider does offer a mortgage holiday, it will be mentioned in the mortgage contract.

That said, you can also call your mortgage provider and ask them directly if a mortgage holiday is available to you.

Qualifying for a mortgage payment holiday is one of the first steps. If you don’t meet the lender’s requirements, you won’t be granted a mortgage payment holiday.

First and foremost, lenders offering mortgage holidays UK often require the borrower to have been making full payments on time for a certain period. This period will vary from one lender to the next.

The lender will determine how long of a holiday you can have.

They will take several factors into consideration. Mortgage lenders offering payment holidays may approve your request but offer you a shorter payment holiday than you initially asked for.

The value of your mortgage will also come into play.

For instance, mortgage lenders may only grant mortgage payment holidays UK to borrowers with a mortgage that has a loan-to-value ratio of 80%.

What Happens When the Mortgage Payment Holiday Ends?

Once you’ve been granted a mortgage holiday, your monthly instalments will halt for the duration of the holiday as determined by the lender.

You should receive a document from your mortgage provider that states your balance, the new monthly instalment amount, and when the next instalment payment is required.

You can then decide if you will increase your monthly instalment amounts so that you can stay on point with your repayments and still settle the mortgage account on the same date as you originally planned for.

Alternatively, you can extend the term of your mortgage by a few months.

This will keep your monthly instalments at an affordable amount, but keep in mind that while your instalments will become lower, you will pay more money in interest fees in the end.

Chatting with a mortgage advisor can help you find alternative ways to restructure your repayment plan so that it works out best for you financially.

Mortgage Holiday FAQ UK Conclusion

If you’re struggling with your mortgage payments because of a temporary or sudden short-term financial hiccup, a mortgage holiday UK may be just what you need to get some breathing room again and get back on your feet.

Applying for a mortgage holiday is a simple process requiring you to contact your mortgage lender directly or speak with your mortgage advisor.

Call us today on 01925 906 210 or contact us. One of our advisors can talk through all of your options with you.

Let’s talk about mortgage terms in the UK. In the not-too-distant past, homeowners would take our mortgages UK over 25-year terms.

Nowadays, a 25-year mortgage term doesn’t seem realistic, especially with the high cost of living crisis and property prices.

More and more home buyers are applying for mortgages over 30 to 35 years.

One in four new mortgages in the UK run over 25 years.

The reason for such extended loan periods is that buyers want to get onto the property ladder sooner while reducing their expected monthly instalments and being able to afford more costly properties than they would on a shorter loan term.

There’s no doubt that extending the term of your UK mortgage can be beneficial, but it also comes at a cost.

This guide looks at the ins and outs of extending a UK mortgage and what to expect should you choose.

Chatting with a professional mortgage advisor is your best chance of making the right decision.

The Draw for Extended UK Mortgage Terms

There are benefits to extending your mortgage in the UK.

For instance, a longer mortgage repayment term will reduce your monthly instalments because you have 10 extra years to pay off the capital.

The lower payments will also ensure you qualify more easily with a lender offering mortgages, as the monthly repayments will be more affordable.

Pros and Cons of Extending Your UK Mortgage

One of the biggest demographic to benefit from the option to extend a mortgage is undoubtedly younger property investors who want to ensure that they pass the affordability assessment involved when applying for a mortgage.

Let’s consider a £200,000 mortgage over 35 years with a 3% interest rate.

Such a mortgage would come with interest rate payments each month of £178.

Now, consider the older way of doing things, where mortgages were paid over 25 years.

In such a scenario, the borrower would face an interest rate payment of £948 monthly!

The difference is remarkable.

This probably looks inviting, and it is! But there’s a flip side: the overall cost of the interest amount you’ll pay back on loan.

Using the example above as a reference, a 25-year mortgage would incur interest of £84,478, whereas a 30-year mortgage presents a whopping £103,495, which isn’t quite as inviting?

What’s the Solution to Avoid Additional Fees?

Many borrowers have found a way around incurring the additional fees.

This is done by starting with a mortgage with a longer loan term.

This will help to keep the initial costs down.

Then, when you have additional money, you can slash your term or overpay on your instalments.

Of course, this will not mean your mortgage extension is free, but you will pay less in fees/interest.

Age is Important to Consider When Extending Your Mortgage

Extending your mortgage is an option if you’re young. Unfortunately, many mortgage providers hesitate to provide funding to those over 65.

Most lenders only allow borrowers to extend a loan until their 80th birthday. If your loan repayments extend beyond that, you won’t be eligible for the extension.

That said, smaller building societies and some lenders are considering more leniency and may even allow repayments up to the age of 90.

A More In-Depth Look at the Pros and Cons of a 20-Year Mortgage and 30-Year Mortgage

Let’s dig a little deeper into the pros and cons.

Pros and Cons of a 30-Year Mortgage

Pros:

• Lower instalments impose less pressure on your monthly budget
• You can purchase more expensive property with a larger loan. And with the money you have left over each month, you can repair and maintain the home.

Cons:

• A 30-year mortgage will take the majority of your life to pay off. If you get a 30-year mortgage at 30 years old, you will be 60-65 years old by the time you pay off the property.
• You will pay a higher interest rate and pay interest over a longer term which means that a 30-year loan is far more expensive even if the monthly instalments appear lower.

Pros and Cons of a 20-Year Mortgage

• You can pay off your mortgage quicker and will have more time to save for retirement or spend on investments. For example, if you take out a 20-year mortgage in your 30s, you’ll be paid up by the time your 50s come around.
• A shorter loan term means you can build equity faster. Equity is the portion of the mortgage that is paid out, meaning it’s the portion of the home you’re now the owner of. An individual’s net worth is calculated with equity. During the term of your loan, you can loan against your home equity, but keep in mind that this is a risky business as the home will serve as security for the loan.

Cons:

• You’ll pay fairly high monthly instalments, resulting in less available cash flow for everyday living. So you’ll have to budget carefully.

Which Loan Term is Ideal?

Now, with pros and cons in mind, you’re probably wondering if you should go for a standard 20-year mortgage or extend your mortgage UK loan term to 30 – 35 years.

Financially speaking, the 20-year mortgage option seems stronger as it will save you money in the long term and also allow you extra time to save for retirement and invest.

That said, if you’re on a strict budget and the 20-year mortgage isn’t a viable option, the 30-year mortgage may be ideal for you.

Can I Extend the Term of My Mortgage in the UK? Conclusion

If you’re considering extending your loan term or want to know which loan term is best suited to your current financial situation, speaking with a professional mortgage advisor could help to provide some clarity and help you make an informed and confident decision.

Call us today on 01925 906 210 or contact us. One of our advisors can talk through all of your options with you.

With summer coming up, more Brits are considering their options for a second home mortgage, and you guessed it; a holiday home!

One of the first things that come to mind, after the financial factor, is where to buy a holiday home.

There are plenty of options spread across the UK – how do you make the ideal choice?

For most people, choosing a holiday home comes down to several factors as follows:

• Location, location, location!
• Climate
• Cost of property (affordability)
• Crime rate
• The people

Not sure where to start? Don’t worry! We did the legwork for you!

Check out our top pick of the best places to buy a holiday home in the UK.

Where to Buy the Best Holiday Homes in South West England

New Forest District

New Forest isn’t just gorgeous but enjoys around 217 hours of sunshine per month, which is much more than most places.

It is no surprise that it’s a tourist hotspot, with the national park’s beautiful trees towering over the area.

This area is exceptional for families and couples, with many opportunities for walking, camping, and canoeing.

Check Today's Best Rates >

And to top it all off, there’s something for thrill-seekers, too: a theme park!

Water quality is excellent, and you can expect the average temperature to be around 16 degrees Celsius.

While New Forest is not the cheapest area to invest in, it is considered one of the best. Check out Brockenhurst and Lymington.

Torridge

Spanning the north coast of Devon, Torridge is a firm favourite for locals and holidaymakers.

You’ll find gems of South West England, such as Westward Ho and the Hartland Devon Heritage Coast, in the area.

Torridge enjoys 186 hours of sunshine per month and has an average temperature of 16 degrees Celsius.

Beaches, a theme park and an outdoor activity centre, provide all the entertainment one could want while on holiday!

Where to Buy the Best Holiday Homes in South East England

Hastings

As it turns out, Hastings is one of the best places to buy holiday property in all of England!

It’s vastly popular among holidaymakers and offers swimming, beaches, walks and a plethora of amenities to enjoy.

Hastings enjoys 222 hours of sunshine per month and an average temperature of 17 degrees Celsius.

Canterbury

Canterbury is an area that steals the hearts of many Brits looking for prime holiday homes that provide a wealth of natural beauty and entertainment opportunities.

It also helps that Canterbury hosts not just one but three UNESCO world heritage sites.

These include the ruins of St Augustine’s Abbey, the Church of St Martin, and the Canterbury Cathedral.

Canterbury also enjoys a whopping 235 hours of sunshine per month, an average temperature of 17 degrees Celsius and various walks and historical sites for entertainment.

Check Today's Best Rates >

Where to Buy the Best Holiday Homes in the East Midlands and Yorkshire

East Lindsey District

East Lindsey can be found nestled in the coastal district of Lincolnshire.

The area enjoys 193 hours of sunshine each month and an exceptionally low crime rate.

There’s plenty to do and see when holidaying in East Lindsey District, with the most popular attractions including Skegness Beach and Natureland Seal Sanctuary.

Tea rooms, sports bars, pubs, and restaurants also delight visitors.

City of Nottingham

For those who like to holiday in bustling communities that are active and busy, the City of Nottingham is a top pick!

The city is jam-packed with restaurants, bars, shopping malls, sports stadiums, and even night clubs.

With a lively atmosphere and so much to see and do – even open-water swimming – it’s one of the most popular areas to own holiday property.

For sun lovers, the City of Nottingham enjoys 184 hours of sunshine per month.

Where to Buy the Best Holiday Homes in the East Anglia

East Suffolk District

East Suffolk District stands out for holidaymakers who like to swim at some of the best beaches.

As one of the best places to buy a holiday home in East Anglia, East Suffolk offers plenty to do and see.

You can enjoy beach escapes and walks and enjoy the area’s various shops, restaurants, and pubs.

The average temperature in East Suffolk is around 17 degrees Celsius, and the area gets around 222 hours of sunshine per month.

Great Yarmouth District

Another best place to buy a holiday home in East Anglia is Great Yarmouth.

The seafront of Great Yarmouth is known as the “Golden Mile” and those with holiday property in the area can enjoy beautiful sandy beaches, outdoor and indoor attractions and even amusement arcades.

Great Yarmouth District enjoys a very low crime rate, around 227 hours of sunshine per month, and average temperatures of 17 degrees Celsius.

Check Today's Best Rates >

How to Buy a Holiday Home in the UK

If you already have a mortgage to pay off your primary home in the UK, you might wonder how it’s possible to buy a second property.

If you’re specifically buying a second property to serve as a holiday home that you will personally use yourself, you will need to apply for a mortgage called a second home mortgage.

This is for property that you don’t plan to rent out to other people.

If you wish to buy a holiday home in England so that you can hire it out to holidaymakers, you will need to apply for a buy-to-let mortgage.

It’s vitally important that your finances are in good order if you’re going to apply for a second home mortgage.

Best Place to Buy a Holiday Home in the UK Conclusion

Spend some time considering which type of mortgage would be best for you, based on your intended purpose for the property.

After that, you should consult with a mortgage expert who can advise you on the requirements for the type of loan you’re looking for.

Applying for a second home mortgage to get a holiday home can be simplified with the help and guidance of a professional.

Keep in mind that second home mortgages often require a 15% deposit.

Call us today on 01925 906 210 or contact us. One of our advisors can talk through all of your options with you.

In this guide, we will talk about student mortgages UK and the frequently asked questions surrounding them.

Many British students’ default thinking process is that they won’t be able to get a mortgage simply because they’re a student. And we’re here to challenge that thinking.

The reality is that students can get onto the property ladder if they want to, and this post covers how to do that.

First off, don’t blame yourself too harshly if you’ve thought negatively about mortgages in the past while.

It’s not entirely outrageous to believe that lenders (especially mortgage lenders) that are typically risk-averse may consider students (regardless of age) a “no-go.”

After all, it’s normal for students to have limited income and a credit history that could be more robust.

This all said, lenders are making it possible for student mortgages UK.

Below we look at pertinent information for student mortgages in the UK.

Check Today's Best Rates >

Can Students Get Mortgages in the UK?

The great resounding answer to this question is; yes! UK student mortgages exist, but you’ll have to use alternative avenues to the average full-time employed citizen seeking a mortgage.

For starters, having a co-signatory or collateral will simplify the process.

But, of course, even with collateral or a co-signatory, you’ll still need to prove you’re in good financial standing and that you will be responsible once the UK student mortgage is extended.

The good news is that mortgage lenders in the UK consider each application individually, taking into account unique circumstances for each.

One of the best steps you can take is to consult with and even be represented by an experienced mortgage broker who has specific knowledge of how student mortgages UK work.

Proof of Income UK Students Can Use When Applying for Mortgages

As you may well know, how much you earn is an important part of any mortgage application.

Keep in mind that not all income streams are considered viable, and the type of income accepted will often come down to which UK student mortgage lender you use.

Many UK lenders will accept bursaries and stipends as a viable income source.

Before a lender commits, they will take a look at several factors as follows:

• How big is the deposit you’re putting down?
• Do you have a co-signatory?
• What collateral do you have to offer?
• Do you have a stable secondary income source?
• How long does your grant or stipend last?
• Are you already dealing with existing debt?
• Are you working, and if so, how much are you generating each month?
• What are your current monthly expenses?

If you’re receiving an allowance, trust payout, or generating income, make sure you mention this and provide evidence.

The more you earn or receive (and can prove), the better it is for your application.

Check Today's Best Rates >

Can Any and All Students Get UK Student Mortgages?

Of course, lending in the mortgage industry is non-discriminatory in the UK.

While certain student types may have greater access to income streams or be considered more responsible, lenders must look at the overall income amount, affordability and value of your collateral, or financial standing of your co-signatory (guarantor).

This means that the course you are studying doesn’t come into play and won’t impact the outcome of your UK student mortgage application.

One niggling point to keep is if you’re a foreign national seeking property in the UK as a student.

In theory, you can apply for a UK student mortgage regardless of where you live.

Still, if you use a guarantor (co-signatory) to secure the UK mortgage, the guarantor must own property in the UK to qualify.

3 Steps to Apply for Student Mortgages UK

To apply for a mortgage in the UK as a student, follow these simple steps:

Step 1:  Check Your Credit Score

Your credit history report will indicate how viable you are as a mortgage applicant.

You don’t have to pay for a credit check; you can check your credit score for free using the Experian website here.

Step 2: Consult with a Mortgage Broker

Chatting with a mortgage broker with specific experience with student mortgages in the UK is a step in the right direction.

They can guide you towards the right type of mortgage and ensure that you have everything required for the best possible potential application outcome.

Step 3: Compile the Required Documents

A mortgage broker can provide you with a checklist of the documents you will need to present during your application.

Make sure that you have everything required before processing your initial application.

Scrambling for documents last minute may just delay the entire process.

Can Students Get Joint Mortgages in the UK?

It appears that while joint student mortgages UK aren’t the norm, there are no rules or stipulations against them.

When students (or students and their partners) apply for joint mortgages, there’s a standard process to expect.

For example, the main income earner’s salary/income will be considered to determine affordability.

In short, to qualify for a joint student mortgage in the UK, the student or the partner earning the higher income must prove that they can afford the loan instalments even without the other applicant.

Types of UK Student Mortgages Available

As a student in the UK, you can consider the following types of loans that are suitable for students:

1.   Buy for University Scheme

In this instance, the parents are usually responsible for the mortgage, but the student’s (child’s) name is officially on the deed.

Students often rent out rooms to make an income to pay instalments. You can’t buy just any property with this mortgage type.

In fact, lenders will require the property you have in mind to meet certain criteria concerning the size of the house, the location, the number of rooms, and how many years you have left to study.

No fixed interest rates are possible, and you can expect the APR to be typically high.

Check Today's Best Rates >

2.   Family Springboard Mortgage

This UK student mortgage is available to students with family members who can put up 10% of the total property value as collateral.

The amount is put into savings with the lender. The actual buyer will need to provide 5% of the property value.

3.   Guarantor Mortgages

This is a “just in case” mortgage whereby the student applying is responsible for the loan repayments.

Still, a co-signatory will take responsibility if something happens and the student can no longer afford to repay the loan.

The tricky part is that your chosen guarantor will be assessed as if they are applying for the mortgage themselves, and they must already own property in the UK.

4.   Joint Borrower or Sole Proprietor Mortgages

This is the ideal UK student mortgage for a first-time buyer. In this instance, only one applicant holds the actual mortgage, but several people can pay into the mortgage.

Student Mortgages UK Conclusion

Student mortgages are certainly possible in the UK, but you must select the right type of UK student mortgage for your situation and only get into a loan that you’re sure you can afford to repay.

Call us today on 01925 906 210 or contact us. One of our advisors can talk through all of your options with you.

Your age can directly affect your eligibility for a mortgage, as lenders set upper and lower age limits for applicants to minimize the risk involved in lending and ensure they get a full return on their investment.

Here’s everything you need to know about mortgage age limits in the UK.

How Does Age Affect Mortgage Eligibility?

The older you get, the riskier you become to mortgage providers, making it harder to get a mortgage.

You’ll likely be on a lower income when older, either due to retirement or not working full time.

Your income will also be lower even with a pension to fall back on.

You’ll also have a greater risk of health issues as your age advances, impairing your ability to survive the full term of a standard 25–30-year mortgage and further inhibiting your eligibility.

To help mitigate such risks, lenders set maximum age limits on their deals.

Check Today's Best Rates >

What Is the Maximum Age Limit for A Mortgage?

Mortgage lenders usually set their age limits, so there’s no absolute maximum.

Lenders can stipulate a particular age limit at the point of application or when the mortgage term ends.

The lender may require that you’re not over 55 or 60 years when applying for a mortgage and that the mortgage term ends by the time you’re 70 or 75.

Mainstream providers are usually more conservative in their age limits, setting the maximum age at the end of the mortgage at 70 or your retirement age, whichever comes sooner.

Lenders specializing in later-life mortgage products can go up to 80 years and beyond.

Some don’t stipulate any age limits and instead decide whether to lend to older borrowers on a case-by-case basis.

Most lenders acknowledge the increased life expectancies today, and more people are working longer, creating more flexibility and leniency when lending into the retirement age.

What Other Factors Affect Mortgage Eligibility After Retirement?

Securing a mortgage isn’t just about how old you’ll be at the end of the term.

Other stringent conditions that can further impact your eligibility include:

Affordability

Affordability is crucial in all mortgages, regardless of your age. Lenders will only approve your mortgage application if you can prove you can make your repayments on time each month throughout the full term.

If the term runs into your retirement or you’re applying for a mortgage post-retirement, you must provide sufficient evidence that you can continue with repayments.

Lenders determine affordability by comparing your debt to income (DTI) ratio or monthly income vs outgoings and basing their decision on the amount you have left over that can cover mortgage repayments.

Check Today's Best Rates >

The Loan-to-Value (LTV) Ratio

The LTV is the size of your mortgage compared to the market value of the property you’re buying, expressed as a percentage.

Most lenders set a maximum LTV ratio and offer better deals to applicants with lower LTV.

A large deposit can give you a low LTV and increase your chances of getting favourable rates from more lenders as they consider the mortgage a lower risk.

A low LTV gives the lender more security in case property prices fall.

With a high LTV, the mortgage amount can exceed the property value in case of sudden drops, making it difficult for the lender to recoup their investment if you fail to make repayments.

Most lenders readily approve an 80% LTV for repayment mortgages, meaning you’ll require a 20% deposit.

Others accept 80%, while a select few consider 95% LTV, subject to meeting other criteria.

The maximum LTV is usually 85% for interest-only mortgages, but this can decrease to 75% for older applicants.

Property Type and Credit History

The type of property you want to buy and issues surrounding your credit history can also create obstacles for later-life borrowing.

Attempting to borrow to finance a non-standard property can be difficult because of the risks associated with such properties.

Unusual properties have a limited market, and most lenders consider them a higher risk.

If you default and the lender has to repossess, they’ll find it harder to sell than other properties.

Such unique properties can include houses with timber frames, high-rise flats, listed buildings, new builds, non-standard construction, and uninhabitable property.

Lenders will also consider you a higher risk if you have poor or bad credit.

The main issues involved in eligibility assessments when credit issues are a factor include the type and severity of the credit issue, the date it was registered and the reason for the bad credit.

Mortgage Alternatives for Older Borrowers

Various mortgage alternatives exist for an older borrower, provided you meet the eligibility criteria.

These include:

Lifetime Mortgages

Eligibility for lifetime mortgages starts at age 55 and is a form of equity release.

It’s a mortgage secured against your home, provided it’s your main residence, allowing you to retain ownership.

Check Today's Best Rates >

You get a tax-free lump sum or smaller multiple pay outs to do with as you please and repay the loan amount and any accrued interest when you move into long-term care or pass away and the property is sold.

You can also choose to set aside some of the property’s value as an inheritance for your family.

Home Reversion

A home reversion plan allows you to sell all or part of your home by releasing equity in exchange for a single lump sum or regular payments.

Lenders allow you to continue living on the property rent-free until you die or move into long-term care, provided you insure and maintain it.

Retirement Interest-Only Mortgage

With RIO mortgages, you only pay interest, similar to standard interest-only mortgages.

The loan amount is then paid off when you sell the property, move into long-term care, or pass away.

RIO mortgages usually feature minimum age requirements starting from 50 years.

Older People Shared Ownership (OPSO)

OPSO is a type of shared ownership for people aged 55 years and older.

It allows you to buy an initial share in an OPSO home, from 10% to 75% of the market value, and then pay rent on the remaining share.

Mortgage Age Limit UK Final Thoughts

Getting a mortgage when you’re older or retired can present some hurdles, and products may be harder to come by, but it’s not impossible.

A mortgage adviser or broker with experience arranging later-life mortgages can increase your chances of success, give you an in-depth view of the market and help you find an appropriate lender for your circumstances.

Call us today on 01925 906 210 or contact us. One of our advisors can talk through all of your options with you.

You’re travelling the countryside or walking through the streets of your favourite British village, and your eye rests on a cute sign affixed to a cottage with a rambling rose creeper and a thatched roof: Rose Cottage.

Ahh, there’s something about that cottage already, and it’s not just that it’s in your favourite village or only that it’s pretty.

It’s about more; it’s been named, and the name itself is rather quaint. And therein lies a bit of psychology to think of when buying and selling property in the UK.

You’d probably never guess that giving your property a name might drive up its value and earn it more attention.

Don’t worry – most people don’t know that either.

But property value research has provided a titbit of information that’s garnered much interest in recent times.

What’s that? For starters, homes named “Courtenay House” in the UK are typically far more expensive than other properties and usually go for somewhere in the £4.8m.

Check Today's Best Rates >

Research has found that homes with that name tend to be more expensive than those with any other.

By now, you’ve probably got a myriad of questions.

Did you pay too much for your property because it came with a name? Can you change the name, and at what cost?

Will you get more for your property than its deemed value because it has a name?

Should you name your property to increase its value? Should you avoid named properties if you’re in the market for a mortgage?

First, let’s deviate a little onto some of the other popular names doing the rounds on the property market in the UK.

Other Popular Names for High-Price Properties

While House of Courtenay is the house name that brings in the highest sale price, there are other house names that bring in a pretty packet for those trying to sell them.

And while these names are already being used, perhaps they could inspire some creativity if you’re looking to name your property:

These include:

• Meadow View
• The Willows
• Ivy Cottage
• Hillside
• Orchard Cottage
• Rose Cottage
• Woodlands

Undeniably, these property names have a certain ring to them, but what makes them sell at higher prices than other unnamed properties?

Of course, the value of a property is first and foremost about the quality of the space and the size, but other factors come into play; psychology.

A named property follows a carefully chosen theme, style, era or similar.

This creates a feeling of authenticity, uniqueness, and of course, being elite.

Status is a big deal in the property market – this is certainly food for thought when trying to sell your property or buy one.

Check Today's Best Rates >

Back to the House of Courtenay, Though

Let’s get back to the nitty gritty about the House of Courtenay.

To buy a property called House of Courtenay, you would typically need about £4.8m – at least that’s what the average property price works out to.

While you catch your breath, here are a few more facts you might want to know about properties named Courtenay in the UK:

• Courtenay properties in the UK that sold for the most were in Hampshire, Exeter, and North London (ranging from £2.9m to £7.7)
• Other high-priced properties that are named include: South Penthouse, Bar House, Ormidale, and Doves House.

Now that you’ve caught your breath, let’s look at where House of Courtenay comes from. Is it a historic name and what makes it so popular (and expensive, for that matter)?

First of all, Courtenay is not a name that originates from Britain. However, according to research, a medieval French dynasty is linked to the name.

Apparently, in the 12th Century, some of the family relocated to the UK, with most Courtenays residing in Devon.

As a result, many B&Bs, hotels, and manor houses have been named after the dynasty.

Let’s Talk About the Reason Why Named Houses Cost More

It costs just £40 to personalise your home address and this small fee could drive up the value of your house by a whopping 40%.

Why spend thousands on expensive renovations, extensions and extravagant garden landscaping to increase the value of your home when you can simply name your home and benefit exponentially?

You’ve probably seen enough homes in the UK named to know that naming homes in the country isn’t a new fad that just hit the market.

In fact, naming houses is a custom that’s happened for centuries in the UK. It was first seen with the upper class as they named their castles, halls, and manor houses.

They were clearly onto something good.

When you give your property a name, you add a personal touch to the space, which can be descriptive, sentimental, or historic.

Naming Your Home to Increase its Value in the UK

If you want to jump on the property naming bandwagon, it’s best to take a bit of time to carefully choose a name.

Before you settle on a name, write to the local council of your area.

The council will be in contact with Royal Mail to ensure that the name you wish to use hasn’t already been taken, especially in your area.

If the name hasn’t been taken, you’ll be informed once it’s accepted. Now, make your home’s signage – which shouldn’t cost you more than £40.

Check Today's Best Rates >

If You’re Buying…

With this information in mind, you can cut costs by negotiating with owners who have named their properties or entirely avoid purchasing named properties.

Call us today on 01925 906 210 or contact us. One of our advisors can talk through all of your options with you.

With house prices rising and renters paying more than homeowners a year, it can be challenging to decide which is better between buying and renting.

Both options have benefits and drawbacks, and your best choice depends on your circumstances and priorities.

Let’s explore both options to ensure you make an informed decision.

Buying Vs Renting in the UK 

Before deciding whether buying or renting is the best option, you need to weigh the pros and cons involved.

Pros of Buying a Home

Homeownership comes with various upsides, including:

• Freedom

Owning your own home means you don’t have to adhere to any tenancy agreement that states what you can and can’t do.

You’ll not need anyone’s permission to keep pets, decorate or furnish your home however you want and even make structural changes to enhance its value.

• Security

You’ll enjoy the security of a home in the long run without worrying about being forced to move by the landlord at short notice.

• Investment

Buying a home is investing in your future, and the monthly repayments will contribute towards something that is yours instead of your landlord’s.

You’ll have an asset that can increase in value, and you can sell it or use the equity to buy a bigger property, downsize to fund a retirement or invest the profit.

Check Today's Best Rates >

• Control

A fixed-rate mortgage makes it easier to control outgoing costs since you know exactly how much you owe each month.

When renting, you’re on the whim of the landlord, who can decide to increase your rent at any time.

Cons of Buying a Home

A few drawbacks of homeownership include:

• It’s a huge commitment

Buying a home is one of the biggest financial commitments you’ll ever make.

It will likely be your most considerable monthly expenditure for years, and you must be sure you can meet the monthly mortgage payments.

You may not have much left for other expenditures if you overstretch your budget, and if your circumstances change, you may struggle with repayments and even lose your home.

• Property market changes

The property market is volatile, and although the overall trend for properties is increasing in value, prices can also fall.

You might end up in negative equity if the prices fall too much and you find yourself with a property worth less than the mortgage.

• Additional costs

Owning a home comes with additional costs you must consider.

You’ll need to pay for insurance to cover the building and contents and protect your mortgage if something happens to you.

You’ll also be responsible for legal fees, Stamp Duty, Capital Gains Tax and maintenance or repair costs like fixing a leaking roof.

• Less flexible

Moving or selling can be time-consuming and difficult when you own a home, especially if you have a joint mortgage.

When you separate from your partner, taking over the mortgage or selling the property can be costly and complicated.

Legal and estate agency fees and moving costs can also be more prohibitive.

Check Today's Best Rates >

Pros of Renting

Renting comes with various benefits that can suit your lifestyle, including:

• Flexibility

It’s easier to move quickly when renting, as most rental agreements are only six to 12 months long.

If you lose your job, change jobs or simply want to live in a different area, you’ll not face many barriers.

You can give your landlord notice, walk away, rent a smaller home, or temporarily move in with family or friends as you figure things out.

• Easier budgeting

You’ll only need a small deposit, and rental payments rarely change. You’ll know your rent each month, making it easier to budget.

• You don’t have to worry about property prices or maintenance

You’ll not be affected if property prices or interest rates go up or down.

You’ll also not be responsible for maintenance costs, and if something goes wrong, you can simply call the landlord to fix it.

• More choice

Renting allows you to live in a bigger house and nicer area than you could when buying.

Some desirable locations in the UK are out of reach for most buyers, but you can live in a sought-after area when renting.

Cons of Renting

A few disadvantages of renting include:

• You’re not investing in yourself

Renting involves making large monthly payments to your landlord’s mortgage instead of your own.

You can easily pay rent your whole life instead of becoming a homeowner.

• It’s becoming more expensive to rent

Renting has become more expensive than owning a home in terms of monthly accommodation costs.

According to the Home Let Rental Index, rents are historically high and will continue to rise throughout 2023.

• Rules

You must abide by the landlord’s rules when renting, and there could be restrictions on modifying the property or owning pets.

• Sudden changes

You’ll be at the landlord’s mercy, and they can make sudden changes that disrupt your life.

For example, they can decide to increase the rent and impact your budgeting or suddenly sell the property and force you to find somewhere else to live.

Check Today's Best Rates >

Considerations When Deciding to Buy or Rent

Your situation will help you decide whether buying or renting is the right option.

A few things to consider include the following:

Do You Have Enough Deposit?

Difficulties saving for a deposit remain one of the biggest barriers to homeownership.

Although 0% deposit or 100% mortgages are available, they often come with various pre-conditions you must meet, including good credit ratings or having a guarantor co-sign the mortgage.

How Long Will You Stay?

If you expect circumstances to change, like moving jobs, renting may be more flexible and cheaper.

When you start paying rent, the deposit is cheaper than the initial cost of owning a home.

Can You Afford Repayments and Upfront Costs?

You must consider whether you earn enough to afford monthly mortgage repayments and the upfront costs of buying a home.

Such costs can include Stamp Duty, survey or valuation fees, solicitor fees, estate agent fees and moving fees.

The costs can vary, and you must weigh whether you can afford them before taking the plunge.

Is Buying Better than Renting UK? Final Thoughts

Buying a home can be a great way to secure your financial future, but renting can also be suitable if you can’t afford a property purchase, want more flexibility, or are not ready to settle down.

An independent advisor can help assess your circumstances and provide bespoke advice on the best way forward.

Call us today on 01925 906 210 or contact us. One of our advisors can talk through all of your options with you.