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So, you’ve done it. You’ve taken the plunge, found your dream house, sorted the mortgage (hopefully through us!), found a buyer for your own property and contracts have been exchanged. All that’s left now is to sit back, put your feet up and wait for moving day.Well, that’s what you might do if you miss having unnecessary stress in your life. But if you’d like to wake up on the day of the move feeling calm about the 24 hours to come, there are some things you can start doing the moment the move is guaranteed to happen. Declutter, declutter, declutter! First of all, it’s time to get rid of what you don't need. This is particularly important if you’re downsizing, of course, but even for those of us who are trading up to something with more space, it pays – literally, in fact – to get rid of the things you can before you say goodbye to the home you’re in.Whether you hire a specialist removal company or plan to shift the contents of your old home yourself in a hired van, every single item you transport from one property to the other will cost you money – either in the cost of the box it gets packed in, the cost of the people who arrive to carry it in and out of the lorry or in the cost of the van you have to hire.And of course, everything you pack needs to be unpacked at the other end, so the more you take, the longer it will be before you’re shipshape in the new place.Bottom line, it makes no sense at all to move stuff you don’t need to keep – so use the time you have now to get rid of it. Declutter outside, too! If you’re decluttering the inside, do the same outside. Dispose of the things you won’t be taking with you, especially anything that might be hazardous, like old paint, weedkiller, caustic soda, old barbecue gas containers and so on (making sure to take them to a facility that can dispose of them safely – your local tidy tip will be able to give you advice on the best way to do this).The same goes for the things in the garage and sheds that won’t be making the trip with you – that rake with the missing or rusty tines, the leaf blower that no longer works, the bike that’s too small for your youngest child. The same applies here as it does inside the house – why spend time and money moving something you haven’t used in years and don’t need? Be organisedPack smart by labelling the boxes with the rooms they’re going to go in when they arrive at the other end, especially if it’s not immediately obvious from what’s in the box. It also makes sense to prepare matching labels for the rooms themselves at your new home – matching Joe’s Bedroom with a room labelled Joe’s Bedroom is a lot easier for the movers than trying to match Joe’s Bedroom with Bedroom 1 or, worse, with rooms that aren’t labelled at all. Be prepared As you go through the packing process, have an Essentials box into which you put everything you might need in the first few hours at your new place. This might include plates and cutlery, mugs, enough glasses for everyone, coffee, tea and sugar, a book, pet food if appropriate, a packet of biscuits or other snacks and just about anything else you could possibly need before you get stuck into the task of unpacking in earnest. Don't forget to look after yourself Finally, on the day, take time to be kind to yourself. In most cases, there’s no deadline involved in unpacking into a new home other than the deadlines we set for ourselves, so be realistic about what you can and will achieve.In fact, if you’re super-organised, you might even arrange your packing so you know which boxes are priority boxes and which aren’t.Moving home can be stressful enough without adding to the pressure by setting yourself impossible targets. On moving day, take time to stop for something to eat and drink and to enjoy the sensation of being in a new place.You’ve worked hard to get there – so allow yourself to savour the moment by doing the hard work early rather than leaving it to the last minute. To find out more about our friendly and professional mortgage service, fees and what we can do to help make sure you’re not paying over the odds for your mortgage, why not visit www.oportfolio.co.uk or give us a call on 020 7371 5063.Your property may be repossessed if you do not keep up repayments on your mortgage.Oportfolio Ltd fees are payable on application. We charge a broker fee for property purchases of £495 and a remortgage/further advance fee of £395. Our product transfer fee is £295.  

 When it comes to making plans for the future, one option that many homeowners consider is looking for additional borrowing from their existing lender or, if the circumstances are right, re-mortgaging in order to raise the money needed for a home extension.According to a consumer survey earlier this year the prospect of carrying out home improvements rather than moving is very attractive – but the scope to build additional space is also often a key criterion for prospective buyers looking for a property where there’s potential to build up, down or out.Deciding to add value through construction is all well and good, but what happens if you then discover your home is in a Conservation Area?Conservation areas are protected by law from undesirable change because they’re deemed important either environmentally or architecturally. Every local authority has at least one of these conservation areas in the district it controls and there are now more than 10,000 of them in the UK.The nature of what is protected differs from place to place. In some cases it might be limited to a few buildings boasting unique or historically-relevant architecture, in others, it could be that the area is populated with ancient trees or that the general landscape is in some way worthy of safeguarding.In all cases, the nature of any building work that can be carried out is limited in some way and knowing what you can or can’t do before you start the planning process can not only save you financially by helping you to avoid wasting money on professional and local authority fees for schemes that won’t be approved but can also dial down the potential stress of being underprepared.Typically, conservation areas are found in older cities, towns and villages, but can also be applied to early housing estates for their historical significance in town planning as well as to landmarks and country estates (including privately-owned property within their grounds).If you’re not sure whether your home – or the home you intend to buy – is in a conservation area, the chances are the local planning authority will have a specialist Conservation officer who will be able to tell you if there are any restrictions that apply.Not all local authorities have a specialist officer and if that’s the case for the area you’re interested in, someone in the planning department will be able to give you the information you need.So, what does being in a conservation area actually mean in practical terms?Well, the principal benchmark that applies to planning applications in a conservation area is whether the intended work serves to either enhance or preserve the property and the surrounding environment. All planning applications are assessed against this basic principle.Once that test has been passed, the design element of your scheme will come under greater consideration than it would if the project were being proposed in an area not protected by Conservation Area status. Design, in this context, doesn’t relate to the size, position or mass of the intended completed property, but rather to the quality of the design and how it fits into its surroundings.What planning officers aren’t looking at is style – something of a different style to neighbouring properties isn’t necessarily a deal-breaker as long as it protects or enhances the immediate area.Contemporary design is also fine as long as the project meets that basic enhance or preserve test overall. Don’t be sucked into a game of ‘well the house down the street has got X, Y or Z, so why can’t we?’Many factors can determine what has happened in the past – from work undertaken under permitted development rules which didn’t require planning consent, to different planning officers taking a different view at a different time, to a conservation area being designated very recently.There is no ‘precedent’ in play, which means engaging early with your planning authority is a good strategy. Finding out what’s likely to be allowed will save wasted drawings and wasted time on a process that won’t deliver the result you want.If you use a local architect, he or she may well have a good understanding of the local authority view on the area.A good rule of thumb is to make a positive effort to enhance or improve what exists now, to commit to referencing the local area in some way (by using local materials, for example) and to take care over how you present your plans (think about 3D modelling or hand sketches rather than relying on conventional blueprints alone).Developing property in a conservation area isn’t a no-no – but it does require some thought and positive effort. To find out more about our friendly and professional mortgage service, fees and what we can do to help make sure you’re not paying over the odds for your mortgage, why not visit www.oportfolio.co.uk or give us a call on 020 7371 5063.Your property may be repossessed if you do not keep up repayments on your mortgage.Oportfolio Ltd fees are payable on application. We charge a broker fee for property purchases of £495 and a remortgage/further advance fee of £395. Our product transfer fee is £295.     

With Theresa May having emerged from her Brussels trip with unanimous backing for her plan for Britain’s exit from the European Union and prepares for tomorrow's Parliamentary vote on it (assuming continued Cabinet concerns about the likelihood of a Commons defeat don't mean it's postponed), one of the big questions which has yet to be answered is what the future holds for interest rates and, more specifically, the mortgage market.There’s much speculation about the many and varied potential economic consequences of Britain’s departure from the union – from the thorny issue of what happens with the Irish border to inward investment from overseas and the effect a future without a European trade agreement might have on our supermarket shelves.But arguably the biggest concern for individuals and business alike has been the potential effect on interest rates and the housing market.According to the Office for National Statistics, the housing market is now growing at its lowest rate for five years and in September the Governor of the Bank of England, Mark Carney, warned that a no-deal exit from Europe might force a rise in interest rates.So with the Prime Minister now looking for Parliament to sign up to a deal viewed as acceptable to remaining members of the EU, but which has received a lukewarm reception from pro-Leave MPs in her own party, what is the likely effect of Brexit on the mortgage market.The honest truth, of course, is that no-one really knows, and the level of largely speculative white noise around the subject since June 2016 when the UK voted to leave has been unhelpful at best.The variables are many and varied – interest rates in a no-deal withdrawal, for example, may look very different than they would in a Norway- or Canada-style European Free Trade Agreement. And until Parliament meets to debate the proposed agreement, none of us really have any idea what might be in store in that regard.So if we don’t know the answer to the specific question about what interest rates might do in our new post-March 2019 world, what do we know right now about the housing market?The first absolute is that interest rates will affect most homeowners regardless of our European status. This is simple fact. If you currently have a mortgage and you expect to have a mortgage at the time we leave, then whatever happens to interest rates will affect you whether you do nothing, move house, extend your borrowing or remortgage.We also know that the reasons for moving will remain unchanged. People move home – and, therefore, move mortgage – for all sorts of reasons: downsizing, upsizing, a change in job circumstances and/or location, family commitments and health reasons can all play a part. So, the motivation to move will be no different.It’s also probably fair to assume that the mortgage market will continue to be competitive.That doesn’t mean rates won’t go up, but such is the competition for business within the mortgage sector that it’s reasonable to guess that whatever context they have to work within – whether that’s against a landscape of increased rates or not – lenders will be doing whatever they can to offer the most attractive rates possible.In short, lenders’ profitability will depend on continuing to generate new business.We can probably also have confidence that the Bank of England will be doing its utmost to take a measured approach to how it responds to changing economic factors. The Bank regularly stress tests lenders’ ability to cope with changing demands and any rise in interest rates is likely to be agreed only where there is a longer term advantage to be gained in protecting the UK’s overall economic health.Whilst you can never say never, a return to the knee-jerk policies on interest rates we saw towards the end of the 1980s and which led to explosive rises in base rates overnight seem highly unlikely in the context of what the financial sector has learned in the decade since the economic crash of 2008.The question for most people is likely to be about whether it makes sense to extend their borrowing, either through an additional loan from an existing lender or a new mortgage from a new lender, until the picture becomes clearer.That will be a greater consideration for you depending on affordability – and that’s where the FCA and Bank of England rules on lending should help anyway, weeding out those applications which fail tougher lending criteria.If you’re considering a change in your mortgage for whatever reason, our advisers can help you to assess your personal situation and finances and advise you on the best course of action according to your circumstances.  To find out more about our friendly and professional mortgage service, fees and what we can do to help make sure you’re not paying over the odds for your mortgage, why not visit www.oportfolio.co.uk or give us a call on 020 7371 5063.Your property may be repossessed if you do not keep up repayments on your mortgage.Oportfolio Ltd fees are payable on application. We charge a broker fee for property purchases of £495 and a remortgage/further advance fee of £395. Our product transfer fee is £295.     

First Time Buyers Mortgages FAQs Answered by Oportfolio Getting on the property ladder can feel like an impossible task. Although still a challenge for many, there is a lot of help available for first time buyers to get a mortgage and their first home. Here we cover some of the most frequently asked questions regarding first time buyer mortgages. You can find out more about services to help first time buyers here, or call 0207 3715 063 for an informal, no-obligation chat with one of our friendly advisers. How much do you need to earn to get a first time buyer mortgage? The amount you need to be earning in order to secure a first time buyer mortgage will depend on the cost of the property you want to buy.Depending on the products being offered by your preferred lender or lenders, you will need to have saved between at least 5% and 20% of the value of the home you want to buy.The more money you want to borrow, the higher your repayments will be and, consequently, the higher your income needs to be. How can I get a first time buyer mortgage with low income? When considering whether to lend to you, mortgage lenders will look at – among other things – your monthly income and how affordable your monthly mortgage payments will be in the context of your other ongoing financial commitments, including your living expenses such as food, utilities and daily travel costs. They will also check your credit rating with one or more credit agencies.However, if you are likely to struggle to secure a mortgage on your own due to low income there many be other options available to you such as the Government’s Help to Buy scheme, shared ownership or Right to Buy scheme.It is always worth talking to a professional mortgage adviser to understand your options. What are mortgage rates for first time buyers? Many lenders offer products for which only first time buyers are eligible. There are a number of different products which might be available to you and these will often depend on what ‘type’ of first time buyer you are.For example, you may be buying a property and securing the loan yourself, or you may require a guarantor – often a parent – to guarantee the repayments for you.Different mortgage products may also have a higher rate of interest than others. Remember, too, that opting for a longer fixed term that guarantees your repayments will not change is usually more expensive.It is a good idea to get advice from a professional mortgage broker to understand the implications of each product. What is the average deposit needed for a first time buyer in the UK?  The average deposit required by a first time buyer in the UK as of December 2020 is 15%. So if you want to buy a house for £250,000 you would need to have saved £37,500 to put down as a deposit. However, some lenders require less (as little as 5%) and others require more (up to 20%).While 100% mortgages (where the mortgage company lends you the full purchase cost) were reasonably easy to find prior to the global pandemic of 2020, they have now been mostly withdrawn by the majority of High Street ‘big name’ lenders. Where can I find more information about first time buyer mortgages? Although there are plenty of price comparison websites available to you to check rates and repayments, it’s always worth talking to a professional adviser to get a proper picture of the market and what all your options will mean for you in real world terms.There are other resources available to you, as well, though, including the Money Advice Service which offers free and impartial advice on a range of subjects relating to personal finance.Lenders also provide information about the products that are available to first time buyers but bear in mind this is not impartial. Where can I get advice on first time buyer mortgage? To really get a sense of the full range of options that are available to you, it is always best to speak to a professional mortgage adviser who will give you information and guidance that is tailored to your own specific financial situation.A professional adviser will also have access to a range of products from different lenders, ensuring you get a wide choice of mortgages to choose from. What do most first time buyers get wrong about their mortgage? There are a few mistakes that first time buyers commonly make when they start the process of trying to get a mortgage approved.The most common mistake is not having any credit history. Other mistakes include having bank statements or utility bills registered to incorrect addresses and not saving enough money to put down a deposit (you will normally need between 5% and 20% of the property purchase price, depending on the lender). What are the biggest first time home buyer mistakes and how can you avoid them? Not having any credit history is one of the most common mistakes first time buyers make. Your credit history is one of the key things a mortgage lender will check to be confident you will meet your mortgage repayment commitment.You can avoid this by taking out a credit card and ensuring you pay the balance each month or joining subscription services like Netflix to create a history of monthly payments.First time buyers often also have bank statements or utility bills that are not registered to the correct address (for example, a bank account still registered to the parents’ address or utility bills from university days) and this can derail or seriously delay a mortgage decision. How do mortgages work in the UK for first-time buyers? In practical terms, all mortgages work in the same way, regardless of the borrower’s status – a lender advances you a proportion of the purchase price (usually between 80% and 95%) and you make monthly payments over a period of years until the loan is repaid.Some first time buyer mortgages have other elements in place to guarantee the loan or help with funding – guarantor mortgages where a parent or other individual guarantees the repayments or the Government’s Help to Buy scheme are two examples – but ultimately, all mortgages require you to meet a monthly payment commitment until the loan is discharged. Do first-time home buyers need a deposit? Yes, you will almost certainly need to find a deposit of between 5% and 20% to have any chance of being accepted for a mortgage with a reputable mortgage provider. Typically, you should budget on finding at least 15% of the purchase price as a deposit, since 90% and 95% mortgages are increasingly hard to find. What is needed for a first time home buyer to qualify for a great mortgage rate? To have the best chance of getting a great mortgage rate you will need to have a good credit history, sufficient income to make your mortgage payments affordable in relation to your existing financial commitments, and a deposit – the larger the better.Affordability is always going to be a mortgage provider’s key concern, so that should be the number one priority. After that, make sure you have no unnecessary debt and where you do have debt, show you are taking a responsible approach to dealing with it (for example, consider paying more than the monthly minimum). What is the best advice you would give to first time homebuyers? Optimise your affordability ratio by trying to pay down or pay off any debt. This will have a positive effect on your credit rating and will also give your lender confidence that you take a responsible approach to your financial commitments.You should also start saving for a deposit early. Your mortgage provider will require a minimum of 5% of the purchase price as your deposit – and in reality, many lenders ask for 15% or 20%. The higher your deposit, the lower the loan to value (LTV) you’ll need from your lender – and this will also improve affordability. What mortgages can a first time buyer get? There are a number of mortgage products on the market for first time buyers. These include standard and fixed rate mortgages that would be available to all buyers (and many lenders also offer fixed products that for which only first time buyers are eligible), guarantor mortgages where someone – usually a parent or other family member – guarantees to make the mortgage repayments on your behalf if you aren’t able to, as well as Right to Buy and Help to Buy schemes that provide additional financial support and/or incentives to first time buyers. How does getting a mortgage work if you're a first-time buyer? In practical terms, a first time buyer mortgage works like any other mortgage product – a lender advances a percentage of the cost of buying your property (usually between 80% and 95%, unless you have a very large deposit) and the borrower pays back the loan and the interest it attracts over a period of years.Sometimes, first time buyers require a little extra help and support, so some lenders offer guarantor mortgages, where another person- usually a parent or family member – underwrites the monthly repayments in the event that the borrower is unable to meet the commitment.There are also other schemes – such as shared ownership and Government-backed Right to Buy and Help to Buy – that support first time buyers in getting on the housing ladder. What deposit is needed for a first-time buyer mortgage? Typically, lenders will expect you to put up a minimum of anything between 5% and 20% of the purchase price as a deposit. In reality, although it is still possible to find lenders who will accept a 5% or 10% deposit and lend you the balance, most of the main banks and building societies require you to put down 15% or 20% before they will approve your application. How to find your first-time buyer mortgage? Obviously, one way to find a first time buyer mortgage is to search on price comparison websites or speak to your own bank, another High Street bank or a building society.The problem with this approach is that unless you know the mortgage market well, it’s not always to make sense of the differences between products listed on price comparison sites, and banks and buildings societies will only offer you information about their own products.It’s always a good idea to speak to a professional mortgage adviser who will have an overview of the market as a whole and will be able to recommend products that suit your specific financial needs. How long should I fix my mortgage for if I'm a first time buyer? It’s always tricky to know how long you should fix your mortgage for. Typically, the 1-, 2-, 5- and 10-year fixed mortgages are reasonably common.A professional adviser will be able to guide you on the best approach based on your specific financial situation. #More generally, though, one good rule of thumb is to look at the economic climate. If the base interest rate set by the Bank of England is rising or likely to rise, it may be better to pay a slightly higher monthly amount to give you certainty over your outgoings for longer.If the base rate is falling or likely to fall, then you may want to have the flexibility of a shorter deal that will allow you to change lenders sooner and take advantage of a better deal. How to find your first mortgage? We would always recommend you speak to a professional adviser  when you are making any significant financial decision.The benefit of this is that a qualified adviser has access to a wealth of product information and will be able to give you advice and guidance that reflects your existing circumstances whilst also taking into account your future plans.You can choose a mortgage based on what’s available on price comparison websites or the mortgage products your bank is offering – but these won’t always be the most suitable deals for you personally. What type of first time buyer mortgage should I choose? The type of first time buyer mortgage you choose will depend on your circumstances. If you have a decent deposit of between 5% and 20%, a good credit score and a healthy income, you will have a wider choice of products available to you.However, many first time buyers struggle to get onto the housing ladder because they either have few if any savings or they don’t earn enough in salary to meet lenders’ affordability checks.That doesn’t necessarily mean you can’t secure a mortgage – but it does mean you may have to consider products like a guarantor mortgage, which would mean someone else – normally a family member – underwriting your monthly repayments if you were unable to afford them.It’s always worth talking to a professional mortgage adviser to understand the options that are available to you. Can I afford a mortgage? Whether you can afford a mortgage depends on how much you are borrowing – and it’s worth bearing in mind that affordability is about balancing your mortgage repayments with your ongoing commitments and your income.As a first step, use an online mortgage calculator to work out if you’re likely to be able to afford the mortgage you want – and then talk to a professional adviser to get a more detailed picture of what’s possible. What are first time buyer mortgage affordability checks? First time buyer mortgage affordability checks are designed to see if you can afford the repayments for the amount you want to borrow in order to buy your home.Your lender will look at your income and ask you to provide details of all of your outgoings, including credit card payments and living expenses, to work out whether you’re able to meet the mortgage commitment on an ongoing basis – or whether you’re stretching yourself too thin. What first time buyer mortgage fees will I have to pay? Mortgage arrangement fees vary from lender to lender. These are often added to your loan and paid off through your monthly repayment. Some lenders also apply other fees – for example, legal costs – so it’s always worth checking the fee tariff carefully before deciding which lender to choose.A professional mortgage adviser can help you to make sense of the various products and fees – but remember they will also charge a fee for their services. The benefit of using a professional adviser is that they will manage your application from start to finish and will ensure it has the best possible chance of success. Do I need a big deposit for a first time mortgage? The more money you can put down as a deposit, the lower your mortgage repayments will be (or the sooner you can pay off your loan).You don’t have to have a big deposit – most lenders require 15% to 20% of the purchase price (though you can find some lenders who will accept 5% or 10%) – but the more you can offer up front, the better off you will be financially in the long term. Will lenders give a first time buyer mortgage on any property? There is no restriction on the type of residential property you can purchase as a first time buyer.Just remember that the bigger the property, higher the purchase price is ,likely to be and the more cash you will need to save for a deposit.Commercial and buy to let properties are a different matter and you should seek advice from a professional mortgage advisor if you are planning to buiy a home you don’t intend to live in yourself. How to find the best mortgages for first time buyers? We would always recommend talking to a professional mortgage adviser to find the right mortgage product. As a specialist, a professional mortgage adviser or broker will be able to talk you through current policies, rules and tax issues and will also have access to a wider choice of mortgage products.If you plan to find a mortgage by yourself, be aware that banks and building societies do not offer impartial advice and products you find on price comparison websites need to be fully researched so you understand the advantages and disadvantages and are aware of any hidden fees or special conditions. How does a mortgage rate work? Mortgage rates are influenced by the Bank of England base rate but are not the same as the Bank of England base rate. Most lenders offer a variety of rates – all above the base rate – that relate to different products.Very generally, speaking there are broadly three types of interest rate that you can choose from: fixed rates, which stay the same for a fixed period of time (usually between one and 10 years), tracker rates which are usually above the base rate but track changes in the base rate (so if the base rate goes up or down by 0.25%, for example, your mortgage rate will change by the same amount and the lender’s standard variable rate (SVR) which is almost always the highest of the three. What happens after my first time buyer mortgage offer is issued? Once you have received your formal mortgage offer, it is usually valid for a certain period of time (often between three and six months) by which time you need to have completed your purchase.Some lenders may also require you to have a survey carried out on the property you are buying, as a condition of the offer, in order to confirm it is structurally sound. How are first-time buyer mortgages different? Broadly speaking, first time buyer mortgages aren’t fundamentally different in terms of how they work – a mortgage provider lends you an agreed sum of money which you then repay over a period of years. During this time, the mortgage lender has a charge on your house, which simply means they have the power to repossess it if you fail to keep up your mortgage payments.First time mortgages usually differ either by type (some first time buyers buy their property using guarantor mortgages, where someone else guarantees the monthly repayments, or under a shared ownership agreement) or in the preferential rates that are sometimes offered by lenders to encourage new buyers onto the housing ladder. Should I add the cost of product fees to my first time buyer mortgage? If you have the money available to pay the fees without including them in the mortgage, that is a cheaper way to deal with them as you won’t pay interest on that additional element of the loan.Many first time buyers work to tight budgets and so for some people it is more cost effective in the short term to include the lender fees as part of the overall loan. How to prepare for your first time buyer mortgage application? Before you begin a mortgage application, you can prepare by getting your financial house in order.Ensure you’re able to offer the minimum deposit required by the lender you plan to choose (usually between 5% and 20% of the purchase price). Pay down or pay off existing debt. If you’re likely to be carrying debt at the time you submit your application, try to pay more than the minimum amount required by your creditors each month Take steps to improve your credit history – and if you don’t have any credit history, try to create one by joining subscription services or taking out a credit card (but remember to pay off the balance each month!) Ensure all your bank statements and utility bills are registered to your current addressHow does a fixed rate first time buyer mortgage work? A fixed mortgage rate for first time buyers works by guaranteeing your monthly payments will be the same each month for the period during which the loan is fixed, regardless of whether the Bank of England base rate goes up or down.You can win and lose with a fixed rate mortgage – winning when the base rate goes up, losing when it falls below your fixed rate. But it has the advantage of giving you the peace of mind of knowing exactly how much your mortgage will cost for a certain number of years. What happens at the end of my first time buyer mortgage deal? Like all mortgage deals, your first time buyer mortgage deal will come to an end after a certain period of time.If you do nothing, your loan will move to the lender’s standard variable rate (SVR). This is usually the most expensive way to borrow money from that lender.You do have a number of options – and you should act before your current deal ends. Either negotiate with your lender to move you to a new fixed rate (they should do this without you having to go through a new application), remortgage with another lender (this will require a full application) or stay on the SVR (this is highly unlikely to be the best option). How to improve your chances of getting a first time buyer mortgage? You can improve your chances of getting your first time buyer mortgage by making sure there are no nasty surprises in your financial and credit history.Your lender will research your finances thoroughly as part of what is known as an affordability test. They will want to see that you have a responsible attitude to any existing debt, that your existing debt is not excessive, that there is plenty of daylight between your income and your existing financial commitments and that your credit history is sound.You can improve that picture by taking simple steps to reduce or pay off you debt, overpay on monthly minimums and ensure you pay off balances where you can. How much can I borrow as a first time home buyer? How much you can borrow as a first time buyer depends on how much deposit you have to put down, the purchase price of your property and your income.A mortgage calculator can help you to see what might be possible – but it’s only a rule of thumb as it won’t factor in any of the variables that make up the affordability test your lender will carry out.You can find the Oportfolio mortgage calculator on this page. How to improve your chances to get a first time buyer mortgage? You can improve your chances of having an application for a first time buyer mortgage approved by taking steps to reduce or pay off existing commitments and debt and by making sure there are no black flags in your credit history.Most simple credit history checks are free (but you would have to pay for the detailed information on your credit file). Most lenders will check your history with one of the big credit agencies like Equifax or Experian.You can also help your case by making sure you’ve got a decent deposit to put down on your purchase – most lenders will expect you to put down between 5% and 20% of the purchase price, but typically it will be between 15% and 20%. What are the different types of first time buyer mortgages? First time buyers have a number of options when it comes to choosing a mortgage product. Like all buyers, first time buyers can choose standard and fixed rate mortgages, but you may also find special products that are designed specifically for first time buyers.These include guarantor mortgages where another person will guarantee to make your monthly payment s for you if you can’t afford to. This is usually a parent or other family member.There are also special government-backed schemes like Right to Buy and Help to Buy that provide additional financial support and/or incentives to first time buyers. What is the difference between a fixed rate and a variable rate mortgage? A fixed rate mortgage is a mortgage where the interest you pay on your loan – and therefore the repayments you make each month – are fixed for a certain period of time (usually between one and 10 years), regardless of whether the base rate goes up or down.Fixed interest mortgages give budgeting certainty for the period of the deal.Standard variable rate mortgages are loans where the interest rate will fall or rise depending on what is happening to the Bank of England base rate. It rarely makes financial sense to be on a standard rate mortgage, unless you only have a few months of the loan remaining. What is a fixed rate first time buyers’ mortgage? A fixed rate first time buyer’s mortgage is a loan where the interest is set at a certain level for the lifetime of the deal. Most fixed rate periods are for between one and 10 yearsA fixed rate means your repayments will be unaffected by changes in the economy and their impact on the Bank of England base rate. What is a variable rate first time buyers’ mortgage? A standard variable rate first time buyers’ mortgage (SVR) is a loan where the interest rate applied to your mortgage moves up or down to reflect changes in the Bank of England base rate.Unless you have only a matter of months until the end of your mortgage, it rarely makes sense to be on your lender’s SVR, and it’s worth bearing in mind that although lenders are always likely to raise interest rates in line with the base rate, they rarely pass on 100% of the benefit when the base rate goes down! What is an offset mortgage? An offset mortgage ‘offsets’ the amount of mortgage interest you’re charged by linking savings to your mortgage account with a savings account that you set up with the same lender.This type of mortgage essentially looks at your savings as having ‘paid’ an equivalent proportion of your overall mortgage loan. You can still access the savings if you need to – but if you take money out, your interest payments go up, and vice versa. Is an offset mortgage suitable for first time buyers?  If you have cash sitting in an account that is earning little or no interest, then an offset mortgage may be a good solution for you, as the amount you save in mortgage interest will usually be higher than the interest that money will earn in a savings account.It is worth talking to a professional mortgage adviser to look at the pros and cons of offset mortgages to decide whether this type of mortgage is suited to you in the context of your immediate and long-term plans.How much deposit will I need as a first-time buyer?The amount you’ll need for a deposit on your first home varies from lender to lender. But typically lenders will require you to put between 5% and 20% of the property purchase price down as a deposit.In reality, whilst it’s still possible to find lenders who will accept a deposit of between 5% and 10%, most mortgage providers now ask borrowers to put up 15%-20%. How does an Agreement in Principle differ from a mortgage offer? Contrary to what many people believe, an Agreement in Principle and a mortgage offer are not the same thing.An Agreement in Principle is exactly that – an indication that, based on fundamental information you have provided to a lender about your income and expenditure, they would be prepared to lend you the amount of money you need to buy a particular property.A mortgage offer is a formal agreement that the lender will definitely provide the money for you to make the purchase. A mortgage offer is based on much more detailed affordability checks, provision of documentary evidence of income and credit agency checks. Which schemes are available to help first-time buyers? There are three schemes available to support first time buyers. The Right to Buy scheme allows eligible council and housing association tenants to buy their properties at a discounted price (as of December 1st 2020 the discount is £112,300 in London and £84,200 outside London).The Help to Buy scheme, backed by the Government, offers financial assistance to buy their first property, as long as its value is under £600,000.And the Shared Ownership scheme allows people to part buy and part rent their home from the property owner. The properties are usually newly-built and owned by housing associations. What is a loan to value ratio (LTV)? The loan to value ratio, or LTV, is the percentage of a property purchase price that your mortgage provider will lend you. Typically, most lenders require borrowers to put up 15% to 20% of the purchase price as a deposit, giving an LTV ratio of 80%-85%. What insurance will I need? You will certainly need to have buildings and contents insurance when you buy your first – or any other – home. This is to ensure that if your property is damaged for any reason, the cost of repairs are covered by your policy, protecting not only your financial interest in the property but also your mortgage lender’s.Be sure to read the small print to understand what exclusions apply for any policy you may be considering as certain events will not be covered under a standard policy, and remember that buy to let properties require specialist landlord insurance. When getting a first time buyer mortgage do I need life cover? Not all lenders will insist you take out life cover to protect your mortgage – although some do – but it’s certainly advisable to do so.Having life cover ensures that in the event of your death or a terminal diagnosis you and/or your family will receive a tax-free lump sum pay out that will cover the remaining loan.It is recommended that you speak to a professional adviser to discuss your specific needs before taking out any sort of life or personal finance insurance. When getting a first time buyer mortgage do I need critical illness cover? Critical illness cover – or cancer cover as it is sometimes known, will pay out a lump sum upon diagnosis of a critical illness like cancer. This tax-free sum can be used for any purpose and will ensure that if you choose to you are able to either pay off your mortgage or meet your mortgage repayments even if you are unable to work. Does shopping around for mortgage rates hurt your credit score? Shopping around for mortgage rates does not impact on your credit score at all.However, if you make a formal application for a mortgage and are rejected, this will be registered on your credit file and may affect your credit score, potentially making it harder to obtain credit in the future.You can check your credit score without affecting it by using one of the many credit reference agencies operating in the UK. Equifax and Experian are the two largest and are the primary sources of credit references used by most credit brokers. Can I negotiate a first time buyer mortgage rate? Whilst you can negotiate as much as you like on the purchase price of a property, it is not possible to negotiate a mortgage rate directly with a reputable lender.Mortgage products tend to be fixed for the market and are available for all borrowers who meet their criteria. These products may be withdrawn by the lender and replaced by new products with different incentives or interest rates.It is worth speaking to a professional adviser to get advice about your options when you’re looking for a first time buyer mortgage.Read more about our services to help for first time buyers here, or call 0207 3715 063 for an informal, no-obligation chat with one of our friendly advisers.{ "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "How much do you need to earn to get a first time buyer mortgage?", "acceptedAnswer": { "@type": "Answer", "text": "The amount you need to be earning in order to secure a first time buyer mortgage will depend on the cost of the property you want to buy.Depending on the products being offered by your preferred lender or lenders, you will need to have saved between at least 5% and 20% of the value of the home you want to buy.The more money you want to borrow, the higher your repayments will be and, consequently, the higher your income needs to be." } },{ "@type": "Question", "name": "How can I get a first time buyer mortgage with low income?", "acceptedAnswer": { "@type": "Answer", "text": "When considering whether to lend to you, mortgage lenders will look at – among other things – your monthly income and how affordable your monthly mortgage payments will be in the context of your other ongoing financial commitments, including your living expenses such as food, utilities and daily travel costs. They will also check your credit rating with one or more credit agencies.However, if you are likely to struggle to secure a mortgage on your own due to low income there many be other options available to you such as the Government’s Help to Buy scheme, shared ownership or Right to Buy scheme.It is always worth talking to a professional mortgage adviser to understand your options." } },{ "@type": "Question", "name": "What are mortgage rates for first time buyers?", "acceptedAnswer": { "@type": "Answer", "text": "Many lenders offer products for which only first time buyers are eligible. There are a number of different products which might be available to you and these will often depend on what ‘type’ of first time buyer you are.For example, you may be buying a property and securing the loan yourself, or you may require a guarantor – often a parent – to guarantee the repayments for you.Different mortgage products may also have a higher rate of interest than others. Remember, too, that opting for a longer fixed term that guarantees your repayments will not change is usually more expensive.It is a good idea to get advice from a professional mortgage broker to understand the implications of each product." } },{ "@type": "Question", "name": "What is the average deposit needed for a first time buyer in the UK?", "acceptedAnswer": { "@type": "Answer", "text": "The average deposit required by a first time buyer in the UK as of December 2020 is 15%. So if you want to buy a house for £250,000 you would need to have saved £37,500 to put down as a deposit. However, some lenders require less (as little as 5%) and others require more (up to 20%).While 100% mortgages (where the mortgage company lends you the full purchase cost) were reasonably easy to find prior to the global pandemic of 2020, they have now been mostly withdrawn by the majority of High Street ‘big name’ lenders." } },{ "@type": "Question", "name": "Where can I find more information about first time buyer mortgages?", "acceptedAnswer": { "@type": "Answer", "text": "Although there are plenty of price comparison websites available to you to check rates and repayments, it’s always worth talking to a professional adviser to get a proper picture of the market and what all your options will mean for you in real world terms.There are other resources available to you, as well, though, including the Money Advice Service which offers free and impartial advice on a range of subjects relating to personal finance.Lenders also provide information about the products that are available to first time buyers but bear in mind this is not impartial." } },{ "@type": "Question", "name": "Where can I get advice on first time buyer mortgage?", "acceptedAnswer": { "@type": "Answer", "text": "To really get a sense of the full range of options that are available to you, it is always best to speak to a professional mortgage adviser who will give you information and guidance that is tailored to your own specific financial situation.A professional adviser will also have access to a range of products from different lenders, ensuring you get a wide choice of mortgages to choose from." } },{ "@type": "Question", "name": "What do most first time buyers get wrong about their mortgage?", "acceptedAnswer": { "@type": "Answer", "text": "There are a few mistakes that first time buyers commonly make when they start the process of trying to get a mortgage approved.The most common mistake is not having any credit history. Other mistakes include having bank statements or utility bills registered to incorrect addresses and not saving enough money to put down a deposit (you will normally need between 5% and 20% of the property purchase price, depending on the lender)." } },{ "@type": "Question", "name": "What are the biggest first time home buyer mistakes and how can you avoid them?", "acceptedAnswer": { "@type": "Answer", "text": "Not having any credit history is one of the most common mistakes first time buyers make. Your credit history is one of the key things a mortgage lender will check to be confident you will meet your mortgage repayment commitment.You can avoid this by taking out a credit card and ensuring you pay the balance each month or joining subscription services like Netflix to create a history of monthly payments.First time buyers often also have bank statements or utility bills that are not registered to the correct address (for example, a bank account still registered to the parents’ address or utility bills from university days) and this can derail or seriously delay a mortgage decision." } },{ "@type": "Question", "name": "How do mortgages work in the UK for first-time buyers?", "acceptedAnswer": { "@type": "Answer", "text": "In practical terms, all mortgages work in the same way, regardless of the borrower’s status – a lender advances you a proportion of the purchase price (usually between 80% and 95%) and you make monthly payments over a period of years until the loan is repaid" } },{ "@type": "Question", "name": "Do first-time home buyers need a deposit?", "acceptedAnswer": { "@type": "Answer", "text": "Yes, you will almost certainly need to find a deposit of between 5% and 20% to have any chance of being accepted for a mortgage with a reputable mortgage provider. Typically, you should budget on finding at least 15% of the purchase price as a deposit, since 90% and 95% mortgages are increasingly hard to find." } },{ "@type": "Question", "name": "What is needed for a first time home buyer to qualify for a great mortgage rate?", "acceptedAnswer": { "@type": "Answer", "text": "To have the best chance of getting a great mortgage rate you will need to have a good credit history, sufficient income to make your mortgage payments affordable in relation to your existing financial commitments, and a deposit – the larger the better.Affordability is always going to be a mortgage provider’s key concern, so that should be the number one priority. After that, make sure you have no unnecessary debt and where you do have debt, show you are taking a responsible approach to dealing with it (for example, consider paying more than the monthly minimum)." } },{ "@type": "Question", "name": "What is the best advice you would give to first time homebuyers?", "acceptedAnswer": { "@type": "Answer", "text": "Optimise your affordability ratio by trying to pay down or pay off any debt. This will have a positive effect on your credit rating and will also give your lender confidence that you take a responsible approach to your financial commitments.You should also start saving for a deposit early. Your mortgage provider will require a minimum of 5% of the purchase price as your deposit – and in reality, many lenders ask for 15% or 20%. The higher your deposit, the lower the loan to value (LTV) you’ll need from your lender – and this will also improve affordability." } },{ "@type": "Question", "name": "What mortgages can a first time buyer get?", "acceptedAnswer": { "@type": "Answer", "text": "There are a number of mortgage products on the market for first time buyers. These include standard and fixed rate mortgages that would be available to all buyers (and many lenders also offer fixed products that for which only first time buyers are eligible), guarantor mortgages where someone – usually a parent or other family member – guarantees to make the mortgage repayments on your behalf if you aren’t able to, as well as Right to Buy and Help to Buy schemes that provide additional financial support and/or incentives to first time buyers." } },{ "@type": "Question", "name": "How does getting a mortgage work if you're a first-time buyer?", "acceptedAnswer": { "@type": "Answer", "text": "In practical terms, a first time buyer mortgage works like any other mortgage product – a lender advances a percentage of the cost of buying your property (usually between 80% and 95%, unless you have a very large deposit) and the borrower pays back the loan and the interest it attracts over a period of years." } },{ "@type": "Question", "name": "What deposit is needed for a first-time buyer mortgage?", "acceptedAnswer": { "@type": "Answer", "text": "Typically, lenders will expect you to put up a minimum of anything between 5% and 20% of the purchase price as a deposit. In reality, although it is still possible to find lenders who will accept a 5% or 10% deposit and lend you the balance, most of the main banks and building societies require you to put down 15% or 20% before they will approve your application." } },{ "@type": "Question", "name": "How to find your first-time buyer mortgage?", "acceptedAnswer": { "@type": "Answer", "text": "Obviously, one way to find a first time buyer mortgage is to search on price comparison websites or speak to your own bank, another High Street bank or a building society.The problem with this approach is that unless you know the mortgage market well, it’s not always to make sense of the differences between products listed on price comparison sites, and banks and buildings societies will only offer you information about their own products.It’s always a good idea to speak to a professional mortgage adviser who will have an overview of the market as a whole and will be able to recommend products that suit your specific financial needs." } },{ "@type": "Question", "name": "How long should I fix my mortgage for if I'm a first time buyer?", "acceptedAnswer": { "@type": "Answer", "text": "It’s always tricky to know how long you should fix your mortgage for. Typically, the 1-, 2-, 5- and 10-year fixed mortgages are reasonably common.A professional adviser will be able to guide you on the best approach based on your specific financial situation. #More generally, though, one good rule of thumb is to look at the economic climate. If the base interest rate set by the Bank of England is rising or likely to rise, it may be better to pay a slightly higher monthly amount to give you certainty over your outgoings for longer.If the base rate is falling or likely to fall, then you may want to have the flexibility of a shorter deal that will allow you to change lenders sooner and take advantage of a better deal." } },{ "@type": "Question", "name": "How to find your first mortgage?", "acceptedAnswer": { "@type": "Answer", "text": "We would always recommend you speak to a professional adviser  when you are making any significant financial decision.The benefit of this is that a qualified adviser has access to a wealth of product information and will be able to give you advice and guidance that reflects your existing circumstances whilst also taking into account your future plans.You can choose a mortgage based on what’s available on price comparison websites or the mortgage products your bank is offering – but these won’t always be the most suitable deals for you personally." } },{ "@type": "Question", "name": "What type of first time buyer mortgage should I choose?", "acceptedAnswer": { "@type": "Answer", "text": "The type of first time buyer mortgage you choose will depend on your circumstances. If you have a decent deposit of between 5% and 20%, a good credit score and a healthy income, you will have a wider choice of products available to you.However, many first time buyers struggle to get onto the housing ladder because they either have few if any savings or they don’t earn enough in salary to meet lenders’ affordability checks.That doesn’t necessarily mean you can’t secure a mortgage – but it does mean you may have to consider products like a guarantor mortgage, which would mean someone else – normally a family member – underwriting your monthly repayments if you were unable to afford them." } },{ "@type": "Question", "name": "Can I afford a mortgage?", "acceptedAnswer": { "@type": "Answer", "text": "Whether you can afford a mortgage depends on how much you are borrowing – and it’s worth bearing in mind that affordability is about balancing your mortgage repayments with your ongoing commitments and your income.As a first step, use an online mortgage calculator to work out if you’re likely to be able to afford the mortgage you want – and then talk to a professional adviser to get a more detailed picture of what’s possible." } },{ "@type": "Question", "name": "What are first time buyer mortgage affordability checks?", "acceptedAnswer": { "@type": "Answer", "text": "First time buyer mortgage affordability checks are designed to see if you can afford the repayments for the amount you want to borrow in order to buy your home.Your lender will look at your income and ask you to provide details of all of your outgoings, including credit card payments and living expenses, to work out whether you’re able to meet the mortgage commitment on an ongoing basis – or whether you’re stretching yourself too thin." } },{ "@type": "Question", "name": "What first time buyer mortgage fees will I have to pay?", "acceptedAnswer": { "@type": "Answer", "text": "Mortgage arrangement fees vary from lender to lender. These are often added to your loan and paid off through your monthly repayment. Some lenders also apply other fees – for example, legal costs – so it’s always worth checking the fee tariff carefully before deciding which lender to choose.A professional mortgage adviser can help you to make sense of the various products and fees – but remember they will also charge a fee for their services. The benefit of using a professional adviser is that they will manage your application from start to finish and will ensure it has the best possible chance of success." } },{ "@type": "Question", "name": "Do I need a big deposit for a first time mortgage?", "acceptedAnswer": { "@type": "Answer", "text": "The more money you can put down as a deposit, the lower your mortgage repayments will be (or the sooner you can pay off your loan).You don’t have to have a big deposit – most lenders require 15% to 20% of the purchase price (though you can find some lenders who will accept 5% or 10%) – but the more you can offer up front, the better off you will be financially in the long term." } },{ "@type": "Question", "name": "Will lenders give a first time buyer mortgage on any property?", "acceptedAnswer": { "@type": "Answer", "text": "There is no restriction on the type of residential property you can purchase as a first time buyer.Just remember that the bigger the property, higher the purchase price is ,likely to be and the more cash you will need to save for a deposit.Commercial and buy to let properties are a different matter and you should seek advice from a professional mortgage advisor if you are planning to buiy a home you don’t intend to live in yourself." } },{ "@type": "Question", "name": "How to find the best mortgages for first time buyers?", "acceptedAnswer": { "@type": "Answer", "text": "We would always recommend talking to a professional mortgage adviser to find the right mortgage product. As a specialist, a professional mortgage adviser or broker will be able to talk you through current policies, rules and tax issues and will also have access to a wider choice of mortgage products.If you plan to find a mortgage by yourself, be aware that banks and building societies do not offer impartial advice and products you find on price comparison websites need to be fully researched so you understand the advantages and disadvantages and are aware of any hidden fees or special conditions." } },{ "@type": "Question", "name": "How does a mortgage rate work?", "acceptedAnswer": { "@type": "Answer", "text": "Mortgage rates are influenced by the Bank of England base rate but are not the same as the Bank of England base rate. Most lenders offer a variety of rates – all above the base rate – that relate to different products.Very generally, speaking there are broadly three types of interest rate that you can choose from: fixed rates, which stay the same for a fixed period of time (usually between one and 10 years), tracker rates which are usually above the base rate but track changes in the base rate (so if the base rate goes up or down by 0.25%, for example, your mortgage rate will change by the same amount and the lender’s standard variable rate (SVR) which is almost always the highest of the three." } },{ "@type": "Question", "name": "What happens after my first time buyer mortgage offer is issued?", "acceptedAnswer": { "@type": "Answer", "text": "Once you have received your formal mortgage offer, it is usually valid for a certain period of time (often between three and six months) by which time you need to have completed your purchase.Some lenders may also require you to have a survey carried out on the property you are buying, as a condition of the offer, in order to confirm it is structurally sound." } },{ "@type": "Question", "name": "How are first-time buyer mortgages different?", "acceptedAnswer": { "@type": "Answer", "text": "Broadly speaking, first time buyer mortgages aren’t fundamentally different in terms of how they work – a mortgage provider lends you an agreed sum of money which you then repay over a period of years. During this time, the mortgage lender has a charge on your house, which simply means they have the power to repossess it if you fail to keep up your mortgage payments.First time mortgages usually differ either by type (some first time buyers buy their property using guarantor mortgages, where someone else guarantees the monthly repayments, or under a shared ownership agreement) or in the preferential rates that are sometimes offered by lenders to encourage new buyers onto the housing ladder." } },{ "@type": "Question", "name": "Should I add the cost of product fees to my first time buyer mortgage?", "acceptedAnswer": { "@type": "Answer", "text": "If you have the money available to pay the fees without including them in the mortgage, that is a cheaper way to deal with them as you won’t pay interest on that additional element of the loan.Many first time buyers work to tight budgets and so for some people it is more cost effective in the short term to include the lender fees as part of the overall loan." } },{ "@type": "Question", "name": "How to prepare for your first time buyer mortgage application?", "acceptedAnswer": { "@type": "Answer", "text": "Before you begin a mortgage application, you can prepare by getting your financial house in order.Ensure you’re able to offer the minimum deposit required by the lender you plan to choose (usually between 5% and 20% of the purchase price).Pay down or pay off existing debt.If you’re likely to be carrying debt at the time you submit your application, try to pay more than the minimum amount required by your creditors each monthTake steps to improve your credit history – and if you don’t have any credit history, try to create one by joining subscription services or taking out a credit card (but remember to pay off the balance each month!)Ensure all your bank statements and utility bills are registered to your current address" } },{ "@type": "Question", "name": "How does a fixed rate first time buyer mortgage work?", "acceptedAnswer": { "@type": "Answer", "text": "A fixed mortgage rate for first time buyers works by guaranteeing your monthly payments will be the same each month for the period during which the loan is fixed, regardless of whether the Bank of England base rate goes up or down.You can win and lose with a fixed rate mortgage – winning when the base rate goes up, losing when it falls below your fixed rate. But it has the advantage of giving you the peace of mind of knowing exactly how much your mortgage will cost for a certain number of years." } },{ "@type": "Question", "name": "What happens at the end of my first time buyer mortgage deal?", "acceptedAnswer": { "@type": "Answer", "text": "Like all mortgage deals, your first time buyer mortgage deal will come to an end after a certain period of time.If you do nothing, your loan will move to the lender’s standard variable rate (SVR). This is usually the most expensive way to borrow money from that lender.You do have a number of options – and you should act before your current deal ends. Either negotiate with your lender to move you to a new fixed rate (they should do this without you having to go through a new application), remortgage with another lender (this will require a full application) or stay on the SVR (this is highly unlikely to be the best option)." } },{ "@type": "Question", "name": "How to improve your chances of getting a first time buyer mortgage?", "acceptedAnswer": { "@type": "Answer", "text": "You can improve your chances of getting your first time buyer mortgage by making sure there are no nasty surprises in your financial and credit history.Your lender will research your finances thoroughly as part of what is known as an affordability test. They will want to see that you have a responsible attitude to any existing debt, that your existing debt is not excessive, that there is plenty of daylight between your income and your existing financial commitments and that your credit history is sound.You can improve that picture by taking simple steps to reduce or pay off you debt, overpay on monthly minimums and ensure you pay off balances where you can." } },{ "@type": "Question", "name": "How much can I borrow as a first time home buyer?", "acceptedAnswer": { "@type": "Answer", "text": "How much you can borrow as a first time buyer depends on how much deposit you have to put down, the purchase price of your property and your income.A mortgage calculator can help you to see what might be possible – but it’s only a rule of thumb as it won’t factor in any of the variables that make up the affordability test your lender will carry out." } },{ "@type": "Question", "name": "How to improve your chances to get a first time buyer mortgage?", "acceptedAnswer": { "@type": "Answer", "text": "You can improve your chances of having an application for a first time buyer mortgage approved by taking steps to reduce or pay off existing commitments and debt and by making sure there are no black flags in your credit history.Most simple credit history checks are free (but you would have to pay for the detailed information on your credit file). Most lenders will check your history with one of the big credit agencies like Equifax or Experian.You can also help your case by making sure you’ve got a decent deposit to put down on your purchase – most lenders will expect you to put down between 5% and 20% of the purchase price, but typically it will be between 15% and 20%" } },{ "@type": "Question", "name": "What are the different types of first time buyer mortgages?", "acceptedAnswer": { "@type": "Answer", "text": "First time buyers have a number of options when it comes to choosing a mortgage product. Like all buyers, first time buyers can choose standard and fixed rate mortgages, but you may also find special products that are designed specifically for first time buyers.These include guarantor mortgages where another person will guarantee to make your monthly payment s for you if you can’t afford to. This is usually a parent or other family member.There are also special government-backed schemes like Right to Buy and Help to Buy that provide additional financial support and/or incentives to first time buyers." } },{ "@type": "Question", "name": "What is the difference between a fixed rate and a variable rate mortgage?", "acceptedAnswer": { "@type": "Answer", "text": "A fixed rate mortgage is a mortgage where the interest you pay on your loan – and therefore the repayments you make each month – are fixed for a certain period of time (usually between one and 10 years), regardless of whether the base rate goes up or down.Fixed interest mortgages give budgeting certainty for the period of the deal.Standard variable rate mortgages are loans where the interest rate will fall or rise depending on what is happening to the Bank of England base rate. It rarely makes financial sense to be on a standard rate mortgage, unless you only have a few months of the loan remaining." } },{ "@type": "Question", "name": "What is a fixed rate first time buyers’ mortgage?", "acceptedAnswer": { "@type": "Answer", "text": "A fixed rate first time buyer’s mortgage is a loan where the interest is set at a certain level for the lifetime of the deal. Most fixed rate periods are for between one and 10 yearsA fixed rate means your repayments will be unaffected by changes in the economy and their impact on the Bank of England base rate." } },{ "@type": "Question", "name": "What is a variable rate first time buyers’ mortgage?", "acceptedAnswer": { "@type": "Answer", "text": "A standard variable rate first time buyers’ mortgage (SVR) is a loan where the interest rate applied to your mortgage moves up or down to reflect changes in the Bank of England base rate.Unless you have only a matter of months until the end of your mortgage, it rarely makes sense to be on your lender’s SVR, and it’s worth bearing in mind that although lenders are always likely to raise interest rates in line with the base rate, they rarely pass on 100% of the benefit when the base rate goes down!" } },{ "@type": "Question", "name": "What is an offset mortgage?", "acceptedAnswer": { "@type": "Answer", "text": "An offset mortgage ‘offsets’ the amount of mortgage interest you’re charged by linking savings to your mortgage account with a savings account that you set up with the same lender.This type of mortgage essentially looks at your savings as having ‘paid’ an equivalent proportion of your overall mortgage loan. You can still access the savings if you need to – but if you take money out, your interest payments go up, and vice versa." } },{ "@type": "Question", "name": "Is an offset mortgage suitable for first time buyers?", "acceptedAnswer": { "@type": "Answer", "text": "If you have cash sitting in an account that is earning little or no interest, then an offset mortgage may be a good solution for you, as the amount you save in mortgage interest will usually be higher than the interest that money will earn in a savings account.It is worth talking to a professional mortgage adviser to look at the pros and cons of offset mortgages to decide whether this type of mortgage is suited to you in the context of your immediate and long-term plans.How much deposit will I need as a first-time buyer?The amount you’ll need for a deposit on your first home varies from lender to lender. But typically lenders will require you to put between 5% and 20% of the property purchase price down as a deposit.In reality, whilst it’s still possible to find lenders who will accept a deposit of between 5% and 10%, most mortgage providers now ask borrowers to put up 15%-20%." } },{ "@type": "Question", "name": "How does an Agreement in Principle differ from a mortgage offer?", "acceptedAnswer": { "@type": "Answer", "text": "Contrary to what many people believe, an Agreement in Principle and a mortgage offer are not the same thing.An Agreement in Principle is exactly that – an indication that, based on fundamental information you have provided to a lender about your income and expenditure, they would be prepared to lend you the amount of money you need to buy a particular property.A mortgage offer is a formal agreement that the lender will definitely provide the money for you to make the purchase. A mortgage offer is based on much more detailed affordability checks, provision of documentary evidence of income and credit agency checks." } },{ "@type": "Question", "name": "Which schemes are available to help first-time buyers?", "acceptedAnswer": { "@type": "Answer", "text": "There are three schemes available to support first time buyers. The Right to Buy scheme allows eligible council and housing association tenants to buy their properties at a discounted price (as of December 1st 2020 the discount is £112,300 in London and £84,200 outside London).The Help to Buy scheme, backed by the Government, offers financial assistance to buy their first property, as long as its value is under £600,000.And the Shared Ownership scheme allows people to part buy and part rent their home from the property owner. The properties are usually newly-built and owned by housing associations." } },{ "@type": "Question", "name": "Does shopping around for mortgage rates hurt your credit score?", "acceptedAnswer": { "@type": "Answer", "text": "Shopping around for mortgage rates does not impact on your credit score at all.However, if you make a formal application for a mortgage and are rejected, this will be registered on your credit file and may affect your credit score, potentially making it harder to obtain credit in the future.You can check your credit score without affecting it by using one of the many credit reference agencies operating in the UK. Equifax and Experian are the two largest and are the primary sources of credit references used by most credit brokers." } },{ "@type": "Question", "name": "Can I negotiate a first time buyer mortgage rate?", "acceptedAnswer": { "@type": "Answer", "text": "Whilst you can negotiate as much as you like on the purchase price of a property, it is not possible to negotiate a mortgage rate directly with a reputable lender.Mortgage products tend to be fixed for the market and are available for all borrowers who meet their criteria. These products may be withdrawn by the lender and replaced by new products with different incentives or interest rates.It is worth speaking to a professional adviser to get advice about your options when you’re looking for a first time buyer mortgage." } }] }

It’s been a few months since I last wrote about Brexit and its likely impact on interest rates, the mortgage sector and the residential property market. That was not long after the deadline for the UK to leave the EU was extended to the end of October.So, now that we’re roughly halfway between the last deadline and this one, what’s changed?On the one hand, nothing much has changed at all. There’s no more clarity now on how we’ll leave the bloc (or even, perhaps, if we’ll leave) than there was three months ago.But politically-speaking, on the other hand, everything has changed. We have a new Prime Minister working with an even more slender majority than his predecessor and leading a party that, if anything, is more divided than it has been at any point since the EU referendum.He chairs a cabinet that is loudly pro-Leave and, publicly at least, completely aligned to taking the UK out of Europe on October 31 come what may.Outside the inner sanctum of the cabinet, former senior ministers warn of chaos ahead if Britain is allowed to crash out of Europe without a deal, while the apparatchiks of central and local government ramp up their preparations for No Deal.Labour is said to be planning a vote of no confidence in a bid to force a General Election. The Liberal Democrats have a new leader in Jo Swinson, and her fiercely pro-Remain party is attracting membership applications from former Tory MPs, disillusioned with their brief stint as part of the Change UK party.All in all, things have certainly been better within Great Britain PLC. But what does the uncertainty mean if you’ve got a mortgage or you’re thinking of buying and/or selling your home?Naturally, it depends on what you read, who you listen to and whether you’re on the Winnie the Pooh or Eeyore side of the optimism/pessimism divide. But amid the more outlandish crystal ball-gazing, there have been some interesting and well-informed hypotheses doing the rounds recently.The general consensus seems to be that a No Deal Brexit would substantially increase the chances of an economic downturn. Some commentators have stopped short of predicting a full-on recession, but others haven’t been quite as shy.According to the Guardian’s personal finance and consumer correspondents, this may not be a bad thing for homeowners where interest rates are concerned. Their joint article talks of mortgage interest rates returning to their sub-1% levels of 2016 and even of the Bank of England imposing a zero rate to ease the transition to a new trade arrangement with the rest of the world.Such a move would undoubtedly be welcomed by homeowners who suddenly find their mortgage rates significantly reduced. But the other side of that coin, of course, is the resulting misery for savers and investors.As for house prices and whether now is the time to buy or sell, the same article suggests that trying to predict whether to move before or after October 31 is more likely to be a lottery.Having said that, the fact remains that if you consider your finances to be insulated from the immediate impact of Brexit – whether with or without a deal – then when you move is less of an issue.The only question at that point is whether you can sweeten the process by winning out on the price at which you agree to buy and securing the market value of the house you sell.The Daily Mail’s financial website This Is Money reports that there’s been a growth in the appetite for long-term mortgage deals, including the recently-trending 10 year fixed product some lenders are offering.As I said in our recent article on whether you should fix your mortgage rate, we’d advise caution when it comes to locking on to a long-term deal. They tend to be more expensive and if rates do come down – which is a distinct possibility over a period of a decade – then you’re going to lose out in the long run.There are circumstances where a long-term fixed product might be right for you – but I would strongly advise getting advice from a professional mortgage expert before you commit.And then  there are the conflicting calls in the Express and Times for the Bank of England to either raise interest rates and demonstrate its commitment to – and confidence in – Brexit (Express), or cut rates ahead of Brexit to ease the impact on the economy (Times). So, even the papers are divided on the best approach to fiscal policy.The fact is, we won’t have true clarity until October 31 arrives. In the meantime, the world keeps turning and life goes on.My advice is always that you should take any long-term financial decision – such as buying a house – in the context of your long-term financial security, and ultimately that comes down to the answer to the question of whether your potential financial exposure is controllable.Any investment is a risk – but calculated risks, where you’ve looked at the worst-case scenarios and demonstrated you can survive them, are always going to be preferable to walking into a commitment blind.The best thing you can do if you’re thinking about moving in the next three months is get some advice from a professional broker and a financial adviser – and factor that advice into your decision.  Need more information about your mortgage options? Take a look at our short guide to remortgaging. To find out more about our friendly and professional mortgage service, fees and what we can do to help make sure you’re not paying over the odds for your mortgage, why not visit www.oportfolio.co.uk or give us a call on 020 7371 5063.Oportfolio Limited is an appointed representative of Primis Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct AuthorityYour property may be repossessed if you do not keep up repayments on your mortgage.Oportfolio Ltd fees are payable on application. We charge a broker fee for property purchases of £495 and a remortgage/further advance fee of £395. Our product transfer fee is £295.

Anyone who’s looking to get their foot on the first rung of the housing ladder or has just managed to find their way onto it will know that being a first-time-buyer can be an extremely challenging and stressful time.You’d almost have had to have been living under a rock to have missed the fact that the turbulence of the last post-financial crisis decade has made the lending environment a darned sight tougher than it was for the previous two or three generations.But it’s not just the rigour of affordability tests that you’ll have to contend with as a first-time-buyer. You’re also going to feel hamstrung by your lack of experience in the market, and that’s something that many people underestimate when they set out to buy their first house.But first things first. Let’s deal with the first obstacle. Deposit & Affordability The simple fact is that whether this is the first house you’ve bought or the fiftieth, you’re going to have to prove to prospective lenders that you can pay back the money you want to borrow.This is the first and most important hurdle you’ll need to clear – if your lender decides you can’t afford the repayments, then everything else is immaterial.And if you can’t buy the house on your own? Well, there are still options available to you. Some lenders now offer products that allow a family member to guarantee or underwrite the repayments.Or, it could be that you know other people who might be prepared to buy the property jointly with you and view their share of the ownership as a long-term investment.In both cases, though, it’s wise to get professional advice to make sure you don’t find yourself under pressure to sell quickly and unexpectedly in the future.There are now more mortgage products on the market that will allow you to borrow the entire cost of a property – these are known as 100% mortgages. But attractive as these may be, consider them carefully because there are downsides (e.g. it’s easier to fall into negative equity if you have no capital tied up in your home).In any event, the more attractive mortgage products that will be available to you are likely to require you to put up some of the cost yourself in the form of a deposit – and having something to put down also reassures the lender that you recognise the scale of the financial commitment you’re making. Making a mortgage application You could apply for your mortgage online or in a lender’s branch. But it would probably serve your best interests to talk to an independent mortgage broker to get access to products you won’t be able to find yourself.There are very clear benefits to working with a professional mortgage broker.At Oportfolio, for example, we’ll advise you on affordability, the best way to structure your loan and the benefits of each product you might want to consider – but we’ll also look after your application from the point you start to the point you receive your mortgage offer and beyond.You’ll need to have quite a bit of personal information to hand to complete your application, but your broker will walk you through that, too.If you’ve already found a property you love, the estate agent you’re dealing with may push you to make an appointment with their in-house or preferred mortgage adviser. The only thing to know here is that there’s no obligation for you to do that unless you want to.It’s a good idea to get a mortgage offer in principle before you start house hunting. Most agreements in principle are valid for between 60 and 90 days, giving you a good amount of time to find a property and make an offer.Making an offer So, you’ve got a mortgage agreed in principle and you’ve found your dream home. How do you work out what to offer?To some extent, of course, you’re going to be constrained by the amount you’ve been told you can borrow. If you’re like most of us, you’ll probably have been including in your search properties that are slightly out of your budget in the hope you might be able to get a lower offer accepted.This is where your agreement in principle comes in handy because as a first-time-buyer with no chain and a mortgage already approved, you’re going to be more attractive to a seller who needs to shift their property to get the upper chain moving.To get a real sense of how much the house you want is worth, do some research. Find out what similar properties in the area have sold for in the recent past.What motivates a homeowner to sell is hard to guess. They may need to sell their property at the very top of its value to make their own step up the ladder. They may have priced their home to sell quickly because they’ve seen something they like and want to move fast. Or they may just be testing the market and are prepared to wait for the right offer.In the end, though, a house is only ever worth what someone’s prepared to pay for it – so knowing your own limit will allow you to make a confident offer. Oh no – my offer has been rejected! You really want the house, but the current owner has said no to your offer. Although this is disappointing, it’s not the end of the world. You have two options – either increase your offer if you can afford to (but it’s good practice to know the price beyond which you will not go) or walk away and find something else you love. The survey suggests there’s a problem This can be a minefield. If the problem is serious, it may prevent you from securing your mortgage (which will have been offered in principle on the basis the property you want to buy is sound).If it’s not a problem so serious as to be a dealbreaker, then can you afford to make the necessary repairs?Alternatively, can you use the problem to renegotiate your offer and then talk to your mortgage lender to see if you can use part of the loan agreed in principle to carry out the repairs? Again, a professional mortgage broker can help you here.There are few problems which are insurmountable in a property deal, but knowing how to circumnavigate the bumps in the road is easier when you have sound advice to work with.Remember, too, that you will need to appoint a solicitor or specialist conveyancer to take care of the legal stuff related to your purchase. Your mortgage broker will probably know someone they’re happy to recommend – but also ask for recommendations from friends and family.Above all, enjoy yourself – finding and buying your dream home should be an adventure, not a chore!Watch our video for first-time buyers and get a headstart on the things you need to consider when you start looking for your first home. To find out more about our friendly and professional mortgage service, fees and what we can do to help make sure you’re not paying over the odds for your mortgage, why not visit www.oportfolio.co.uk or give us a call on 020 7371 5063.Oportfolio Limited is an appointed representative of Primis Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct AuthorityYour property may be repossessed if you do not keep up repayments on your mortgage.Oportfolio Ltd fees are payable on application. We charge a broker fee for property purchases of £495 and a remortgage/further advance fee of £395. Our product transfer fee is £295.

It’s always lovely when the values you promote as a business are recognised publicly, so there was open delight at Oportfolio when the company’s founder, Oliver Whitehead, was named Best Overall Adviser at the recent Primis awards ceremony.It was Oliver’s third year of success at the awards, which recognise and celebrate the best UK mortgage and protection advisers and are organised by Primis – one of the biggest networks of financial services brokerages in the UK.His award this year saw him retain the Overall Adviser award he won in 2018, a year after being named Top Mortgage Adviser in 2017.The accolade serves as a ringing endorsement for the very simple principle that underpins Oliver’s approach to Oportfolio, a business he started 11 years ago following a decade in financial services, running his own mortgage brokerage and as a Director at Alexander Hall.Oliver said: “Ultimately what we strive to do is look after people in the same way we would want to be looked after ourselves. It’s that ethos of wanting to help people and to go the extra mile in doing it.”In the end, this month’s award is the ongoing reward for a seed which was planted back in 1998 when Oportfolio first opened its doors and welcomed its first client – that the values and ethics that the company is built on should run through the veins of everyone who has ever worked there or will ever work there.Building a company in your own image is no easy feat and, as Oliver himself observes, providing high-quality service has become something of a dying art for many companies. But by doing things the right way from the start, the process has got easier as the business has grown and its client base has increased.There’s also the fact that Oliver insists that the first contact the company has with a potential client is as good as the last contact. He makes a point of responding personally and immediately, wherever possible, to an initial query. You might think that’s obvious, yet this proactive approach isn’t as common as you might imagine.What that translates into in most cases is a sense in the person on the other end of the phone that they’re being looked after and are in safe hands.“I know that when people get in touch with us, what they’re really looking for is reassurance. They simply want some love and to know that the people they’re talking to not only know how to help them but actively want to help them.“In the end, that’s what my business has always been about – the desire to help people and to do that in the right way.”Oliver concedes that his own determination and commitment to deliver a consistently superior level of service is partly behind not just the awards success, but also Oportfolio’s continued growth and high client retention rates.“That has to be a part of it, yes,” he admits. “although you can never completely replicate yourself in other people.“But experience and knowledge also play a big part. The whole team here is completely aware of the process that lies behind applying for a mortgage. We know it can be an anxious or worrying time – but our job is to take that worry away, to reassure them that with our help it won't be as stressful as it may seem to them.”Knowing the market inside out and understanding which banks will be prepared to lend what amount under what circumstances is a big part of being a successful brokerage, of course. But it’s where circumstances aren’t straightforward that is where Oliver expects Oportfolio to earn its stripes.“That’s where the hard work is done,” he says. “In finding solutions to the problems we come across so that the people we’re helping still achieve what they set out to achieve.”All of which means that the awards that currently sit on Oportfolio’s shelves are much appreciated by Oliver and his team – but are really symbols of the hard work done in the past, and a reminder that the same level of commitment to the great service is required today, tomorrow and beyond. To find out more about our friendly and professional mortgage service, fees and what we can do to help make sure you’re not paying over the odds for your mortgage, why not visit www.oportfolio.co.uk or give us a call on 020 7371 5063.Your property may be repossessed if you do not keep up repayments on your mortgage.Oportfolio Ltd fees are payable on application. We charge a broker fee for property purchases of £495 and a remortgage/further advance fee of £395. Our product transfer fee is £295.

At Oportfolio, we know that success in life is only really possible when you have financial security – and in a competitive and challenging economic environment, that can be hard to come by.Having financial protection is one way of making sure you can meet your commitments when life throws you a curveball and you find yourself unable to work whether through a change in employment circumstances or illness.But with so many different products on the market – and so many providers to choose from – working out which product is the right one for your potential needs isn’t always terribly easy, particularly since it’s impossible to predict exactly what your circumstances might be at any given time in the future.Two of the most familiar insurance products that protect your personal finances are critical illness cover and income protection insurance.So how do you make the choice between the two? Unless you have some specialist knowledge of the market, trying to evaluate and compare products yourself can risk making a choice that doesn’t really achieve what you wanted.The simple answer, of course, is to use a professional broker who can advise you on the best solution according to what you think you might require and can access a wide range of products to give you flexible options. What’s the difference between critical illness cover and income replacement? Understanding what you’re paying for and the way in which it might benefit you is the obvious first step when it comes to buying any product, whether that’s a dishwasher, a coat or an insurance policy. So let’s start there.Critical illness cover is an insurance policy which will pay out a fixed lump sum should you be unfortunate enough to contract one of a number of specified illnesses listed in your policy that stop you from earning. Crucially, if you contract a serious illness which isn’t listed on the insurance schedule, the policy will not pay out. Once a policy pays out, cover ends – so in most cases this type policy is valid for a single claim.Income protection cover is an insurance product that will replace your regular monthly income should you find yourself unable to work either permanently or temporarily for any reason as defined by the policy. If you’re able to return to work, the payments will cease; however, cover (and premiums) will usually continue, meaning that most policies of this type allow for multiple claims. What’s the cost? Inevitably, when it comes to both policies the cost depends on your circumstances, salary and the level of cover you require. The cost of replacing a salary of £80,000 is clearly going to be costlier than a policy that protects and income of £30,000, assuming all other circumstances are the sameHowever, as a very broad rule of thumb, a report from FT Adviser suggests that to provide an income of £250,000 over 5 years (whether in instalments via income protection or a lump sum as critical illness), the cost of critical illness cover is about three times that of income protection.So, if income replacement is generally cheaper, is that a better option?Not necessarily, no. Critical illness outsells income replacement by roughly 5 to 1 in the UK because many people prefer to have a lump sum that will allow them to juggle their immediate priorities in a more flexible way.But although a lump sum will allow you to pay off, say, your mortgage, that’s of little use if you can’t then meet your other financial commitments. One also needs to come to a judgement over how and when you’re most likely to claim on either policy.Recent data, from the same FT Adviser report quoted above, suggests 60% of all income replacement claims are made as a result of accidents, stress or musculoskeletal conditions – none of which would be covered by a critical illness policy.By contrast, cancer – which is one of the conditions specified within a critical illness policy – accounts for only 15% of income replacement claimsSo, it’s clear that understanding the risks as well as the benefits are a fundamental part of choosing the right insurance product, and that’s why it makes sense to speak to a specialist professional adviser before you commit. It all seems very complicated. Why do I need income protection at all? While many companies offer some level of financial support for employees when they can’t work, very few provide that assistance beyond a year (and for many more, it’s much less). There are state benefits which are designed to offer some sort of help, but these would be unlikely to cover the financial commitments of a high earning individual.At Oportfolio, we’ll work closely with you to help you to identify the advantages and disadvantages of both types of insurance and recommend the best solution for you personally.Knowing you and your family are protected when times get tough is great for protecting your success in life – but deciding the best way of doing that requires expert knowledge and advice. To find out more about our friendly service why not visit www.oportfolio.co.uk or give us a call on 020 7371 5063Please note for these insurance products terms and conditions apply. This information is a summary only. You will receive a full policy document upon application. This policy will set out the terms, conditions and limitations of cover provided under the planYour property may be repossessed if you do not keep up repayments on your mortgage.Oportfolio Ltd fees are payable on application. We charge a broker fee for property purchases of £495 and a remortgage/further advance fee of £395. Our product transfer fee is £295. 

Research published in June 2017 shows the astonishing lack of critical illness or income protection insurance taken out by the UK workforce. The research conducted by Canada Life Group Insurance, which surveyed 1,010 full- and part-time employees in the UK, shows few across the country have a financial back-up plan in place should they fall seriously ill.Only 18% of respondents said they had some form of critical illness or income protection insurance to help them out should they contract a critical illness that impacts their earnings potential. Most shocking is that 72% said that they would struggle to cope financially should their income drop by £570 a month.That figure’s significant in that it’s the average loss of income experienced by approximately 80% of families following a cancer diagnosis. In cases where a major income earner in a household is hit by a serious illness, the right critical illness or income protection insurance policy can help act as a financial buffer and offer financial support during times of crisis. The case for critical illness or income protection insurance The research by Canada Life Group Insurance also highlights numerous other statistics that support the case for critical illness or income protection insurance. Some of which include:80% of respondents who are single and have children as dependents would financially struggle should they lose £570 a month. Only 10% of that 80% have some kind of critical illness or income protection policy 70% of those in a committed relationship or are married and don’t have children would also find themselves struggling to cope financially. Only 18% of that 70% have some kind of critical illness or income protection policy 71% who are committed/married with children would struggle to cope financially with a loss of £570 per month. Again, only 22% of that 71% have covered themselves with a specific critical illness or income protection policy 18% of respondents say that they have no savings at all, while 10% admitted to having less than £1,000 in savings to cushion the blow should they be hit by a serious illness 45% say they would have to apply for state benefits to help them get by financially if they were diagnosed with a serious illness, while 22% worry about being a financial burden on their familyThe importance of protecting yourself with personal insurance One of the more striking figures to take from the survey is that 46% say they aren’t worried at all by not having a personal or income protection policy, which is an attitude that flies in the face of the statistics mentioned above.With so many saying they’d struggle to pay for their lifestyle if they encounter a serious illness, and with 72% admitting they’d struggle to afford basic utility bills should their income fall by £570 a month, the benefits of a critical illness or income protection policy as a safety net are there for all to see.Working alongside Oportfolio’s specialist consultants can help people to better understand what type of critical illness or income protection policy is most suitable for them at their current stage of life, as well as helping them to find a policy that’s appropriate for them and the dependants who are reliant on them.Contact Oportfolio today to discover more about the range of personal protection policies available for your needs and budget.Please note that neither Oportfolio Limited or First Complete Limited are responsible for the accuracy of the information contained within externally linked sites accessible from this page.

Almost exactly one year ago, I wrote an article which started with a question:How would you and your family cope if you suddenly found you were unable to work and earn a living?Looking back, it seems almost prescient, but like everyone else I had no idea when I wrote it that it would be a scenario that would, all too quickly, become a dreadful reality for a great many people.Most will have read that piece, published on November 21st 2019, thinking either that ‘it will never happen to me’ or putting it at the bottom of quite a long to-do list which got longer and longer as Christmas came and went.And by the end of March this year, of course, it was all too late.The reality is that a global crisis of the type we’ve lived through this year is extraordinarily uncommon. The last time the world experienced anything remotely like it was the Spanish Flu outbreak in the early part of the last century.I hope, as I’m sure you do, that we will never experience anything like it again.But if nothing else, this year has proved that it’s foolish to take anything for granted, and while it’s highly unlikely that it will be a global pandemic like Covid-19 that will stop you from earning an income in the future, there are other, more common but no less worrying things that might.All other things being normal and aside from recession, critical illness is one of the biggest factors that contributes to loss of income within the workforce.There are a number of specialist insurance policies that can help to support you and your family if you were to be diagnosed with a serious or terminal illness and find you’re unable to continue earning.Statistics from insurer to insurer vary, but these figures from Legal & General give a sense of the range of common ‘claimable’ conditions and the policies that exist to protect against loss of income.Across a range of policies that include life insurance, critical illness cover (also known as cancer cover), terminal illness cover and income protection plans, the most common conditions that can lead to a successful claim are:Cancer (all types) Heart disease Chronic lung disease Bronchopneumonia and pneumonia) Motor Neurone Disease and other ‘wasting’ conditions Musculoskeletal disorders Strokes Clinical mental health illnessThere are differences in each type of policy, but broadly speaking most will pay out on diagnosis and the money you receive can be used for any purpose – whether that’s paying down debt to reduce your liabilities, meeting ongoing living expenses or paying for specialist private treatment.Some policies also give you the opportunity to scale payments. These include increasing or decreasing term cover where your pay-out and premiums either start low and go up to reflect advancing age and increased health risk, or start high and reduce over time to reflect reducing financial liabilities.In fact, the choices available in terms of the type of policies that are available are wide and varied and we would always recommend people seek advice from a professional adviser before making any financial commitment of this kind.A reputable adviser will be able to assess your needs not just in the short term but also over the longer term, factoring in growing or shrinking families, changing life-stage liabilities and priorities like mortgages and education costs and potential health issues.Regardless of the type and level of cover you might need, the one thing that is certainly clear from 2020 is that securing your financial future is not something that any of us can afford to put off until tomorrow – because as Covid-19 has proved, none of us know what tomorrow might bring.So if you’d like to explore how you can make sure you and your family are financially secure in troubled times, why not get in touch for an informal chat and see how Oportfolio can help you to make the right choices for your own future. Oportfolio Limited is an appointed representative of Primis Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct AuthorityYour property may be repossessed if you do not keep up repayments on your mortgage.Oportfolio Ltd fees are payable on application. We charge a broker fee for property purchases of £495 and a remortgage/further advance fee of £395. Our product transfer fee is £295.

As the UK takes its first tentative steps towards coming out of lockdown, the worries that enforced social isolation brought – concerns over job security, food shortages and the clear risk to health – are for many people being replaced by new anxieties relating to what our new world is going to look and feel like.For some people there will be an understandable sense of conflict as the government begins to carefully reopen Great Britain PLC.https://youtu.be/CMG5E5e6bPQWe want life to return to normal, but we know the pandemic isn’t entirely behind us; we’re looking forward to seeing friends, family and colleagues who we’ve perhaps only seen on a video link for the past two months, but we still fear the possibility of infection; and we want to return to work and regular (and secure) income, but we’re apprehensive about the long-term effect of this crisis on the economy.What that anxiety may well translate into is a reluctance to make decisions about the long-term future.But economic recovery – globally, domestically and personally – will only be realised when we have the confidence to act, spend and invest with confidence.And for that, you need the assurance and peace of mind of knowing you’re acting on the right information, advice that’s suited to your individual circumstances and guidance that insulates you as far as possible from financial risk.That’s where we come in.At Oportfolio we have years of experience and expertise in finding the mortgages and financial protection products that are best suited to our clients’ personal needs. Expert Help and Advice on Mortgages The housing market is now back in business, though for obvious reasons it’s going to be a slow process regrowth following two months of inactivity and sweeping changes in the financial circumstances of many people who might have been looking to move this summer.That said, if you need to move or your own financial situation has been less affected by lockdown than has others’, then there is still business to be done in the housing sector – and the slow market could well be an advantage for those in a strong position to buy.And with interest rates at an all-time low of 0.1%, there are also lots of good mortgage deals out there.So, if you’re still committed to moving in 2020, we’re ideally placed to help you find the best mortgage to set you on your way. Expert Help and Advice on Personal Protection The pandemic has taught us many things, but one of the key lessons has been that being financially prepared for the worst is essential.It’s an unfortunate fact that over the last eight or nine weeks a great many people have had to face what might, two months ago, have seemed like an entirely hypothetical question: what would you do if you suddenly found yourself without an income?But it’s a question that doesn’t just relate to the economics of employment.What if you suddenly suffered life-changing injuries in an accident, or received a diagnosis of a serious or terminal illness that left you physically or mentally unable to work?Would your family be able to cope financially if you died suddenly?Life insurance – whether in trust to avoid Inheritance Tax or not – to provide for those you leave behind, critical illness cover to give you a lump sum payment if you become seriously ill and income replacement insurance to give you a regular monthly payment should you be unable to earn for an extended period are all options that we can advise on to give you peace of mind.WillsAccording to consumer organisation Which?, more than half of all UK parents don’t have a Will – meaning the spouse/partner and children left behind risk receiving nothing.Making a Will is simple and straightforward, and something we can look after for you.So, if you’re ready to start making the decisions that will get your life back to some semblance of what might be normal, but you want a trusted professional adviser to guide you, we’re just the people to talk to.Why not get in touch with us for a friendly and informal chat – we’d love to hear from you.Please note: all information contained within this article was accurate at the time of publication.  Oportfolio Limited is an appointed representative of Primis Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct AuthorityYour property may be repossessed if you do not keep up repayments on your mortgage.Oportfolio Ltd fees are payable on application. We charge a broker fee for property purchases of £495 and a remortgage/further advance fee of £395. Our product transfer fee is £295. 

If you’re a homeowner, then chances are you’ll already have a life insurance policy in place to cover your mortgage, either because you decided it was the smart thing to do (which it is), or because your mortgage lender insisted on it.If you don’t currently have a life policy but you have significant outstanding debt on your mortgage loan, it would be prudent to consider taking out a policy to ensure that should you die the people you leave behind are able to meet that financial commitment.https://www.youtube.com/watch?v=kRZl7jP6rHMBut the key question today, if you do already have a policy, is whether or not your policy was set up in a discretionary trust.Current Inheritance Tax (IHT) rules mean that if the estate you leave behind amounts to a value of more than £325,000, anything above that figure will be taxed at a rate of 40%.Your estate comprises all of your property and financial assets, including any insurance policies you may have that payout on death. In many cases, it is these policies that tip someone’s estate beyond the £325,000 tax-free threshold.There are circumstances in which this threshold can be extended – for example, when the estate is passing to a spouse or civil partner. But in most other cases, that figure of £325,000 is likely to trigger the tax liability on your legacy.By writing your life insurance policy into trust, it can be excluded from your estate for probate purposes, meaning your loved ones will benefit from the full value of the policy when it pays out.And because it is not considered as part of the probate process which, depending on the complexity of your estate, can take weeks or months to complete, the people you leave behind should receive that money more quickly.It is rarely the case that your insurance company will pay out on your policy quickly. Their own claim processing times can also be long and drawn out and that can mean delays for your family at what is already likely to be a very distressing and expensive time.Having your policy written into a discretionary trust circumvents that problem as well. How discretionary trusts work To write a life insurance policy in trust requires you (known as the settlor) to set up the trust, specify formally who you want to receive the proceeds of the trust and on what terms – which, for the purposes of this example, we’ll assume is upon your death – and appoint trustees who will administer the trust fund when the time comes.Your beneficiaries will all fall into defined classes and this is to ensure your nominated trustees are able to properly identify who should receive all or part of the gift, as determined in your instructions.Your beneficiaries can be anyone of your choosing, but they must be able to be identified in one of the several classes that will apply to the trust.For example, you may specify ‘my grandchildren’ or ‘my nieces’, but you would not be able to specify something very general like ‘all my friends’ because the trustees would have no way of knowing how you defined a friend.When you die, your trustees will be able to pay your nominated beneficiaries immediately and directly, according to your wishes, without that lump sum being included in your estate for probate and thereby making it exempt from any potential IHT calculation.It isn’t difficult or complicated to set up a life insurance policy with this structure, but it is a good idea to ask a professional adviser like Oportfolio to do this for you to ensure it is watertight, properly reflects your wishes and meets all the tax tests that might potentially be applied to it.A further advantage of setting up your life insurance in a discretionary trust is that it ensures a definite outcome even if you were to die without a will.If you haven’t reviewed your life insurance cover and needs for a while, maybe now is a good time to do so. Why not get in touch with a member of our friendly team and see how Oportfolio can help to give you and the people you love financial security for an uncertain future. Please note: all information contained within this article was accurate at the time of publication. Oportfolio Limited is an appointed representative of Primis Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority Your property may be repossessed if you do not keep up repayments on your mortgage.Oportfolio Ltd fees are payable on application. We charge a broker fee for property purchases of £495 and a remortgage/further advance fee of £395. Our product transfer fee is £295. 

In my last article, I looked at some of the trends we might be seeing in the residential housing market over the coming year and looked at some of the commentary and analysis from market specialists about what might be around the corner.You can read that article in the News & Views section of the website, but the broad conclusion that most commentators seemed to draw is that while there will be growth in house values, there is also likely to be some caution in the market as people wait to see what economic trends the global pandemic and our future relationship with the EU bring.There is no certainty in predicting the future, but if we do see a slowdown in the activity and demand we’ve seen since June (thanks, largely, to the Stamp Duty holiday), then what are the options for those who want to move but are looking for greater economic stability before they take the plunge?The easiest option, of course, is to simply do nothing and put any plans to move on hold until we’re in a position to be able to accurately forecast trends around employment, base and mortgage interest rates, inflation, and industry growth.That may well suit some homeowners, but it may not be a viable option for those who have a pressing need to gain more space – perhaps because of a growing family or, in this burgeoning climate of entrepreneurialism and remote working, because the home has also become the workplace.For those who fall into the category of needing to move but being wary of significantly increasing their borrowing and, therefore, debt, remortgaging might well be the answer.What is remortgagingRemortgaging can take a number of different forms.Sometimes it’s just about moving your existing loan to another lender in order to take advantage of a product with a better interest rate when your current deal expires (depending on the products that may be available to you, staying with your existing lender isn’t always the smartest or most cost-effective move).When you move your mortgage in this way, you’ll have to fill in a new full mortgage application, providing quite a lot of personal and financial information and documentation to satisfy the lender’s underwriters that you’re going to be able to repay the loan.The other way to remortgage is to borrow more money against your home in order to release cash to pay down other debt or to fund home improvements.What are the pros and cons of both types of remortgage?The obvious benefits if you’re just moving your existing loan to a new lender is that you won’t be increasing your capital loan and depending on the mortgage product you move to you may also end up reducing your monthly repayments because of the equity you’ve built up and the fact the lower-risk loan to value (LTV) that delivers is more attractive to lenders.For those who are happy in their current home and simply want to fix their deal and their payments and maybe end up slightly better off as a result, this is obviously likely to be the most sensible solution.The advantages of releasing cash from your home by borrowing slightly more against it are twofold.First, it gives you a tax-free lump sum to either invest in extending your property or making other improvements to it.This may have the twin benefit of not only delivering the extra space you need but also potentially increasing the overall value of your home for when you do decide to move, possibly helping you to take a bigger step up the housing ladder.Second, because you are unlikely to be borrowing at the level you would have done had you been buying a new home, you are mitigating your debt liability a bit more.You will also be limiting the increase in monthly repayments and, of course, avoiding the additional costs associated with selling your home and buying another one.With estate agency fees, conveyancing costs, Stamp Duty (when the holiday expires on Match 31st), survey costs, removal fees and ancillary costs, you could be facing £30,000 or more in fees and other costs before you’ve even started house hunting.Do you have to use any proceeds from a remortgage to pay for home improvements?There’s no obligation for you to use a remortgage to pay costs associated with improving or extending your property.However, we would always urge caution if you are planning to offset existing debt against your home. It’s a risky strategy because your property may be repossessed by your lender if you find you’re unable to meet your monthly repayments in the future.For that reason, we’d always recommend that you speak to a professional mortgage adviser or independent financial adviser before you tie debt into your home.In the end, whether to move or improve is a personal choice and is dictated by your personal circumstances. Knowing what your options are is the key to making an informed choice about the solution that best fits your own personal circumstances.So, if your current fixed deal is coming to an end or you’re looking for more space but are worried about taking on the financial burden of a significantly larger mortgage, why not come and speak to our friendly team of advisers and see how we can help you to find the best option for today and beyond?  Oportfolio Limited is an appointed representative of Primis Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct AuthorityYour property may be repossessed if you do not keep up repayments on your mortgage.Oportfolio Ltd fees are payable on application. We charge a broker fee for property purchases of £495 and a remortgage/further advance fee of £395. Our product transfer fee is £295. 

I’m usually reluctant to make predictions about the UK housing market – there are too many variables to make gazing into a crystal ball remotely reliable, and the proof of that is there for all to see in the past 12 months!But understandably, people are more cautious about planning for their futures and one of the questions I get asked on a regular basis is What do you think will happen to house prices in the next year?Although no one – and I do mean no one – can say with absolute certainty what might happen to the UK’s often mercurial housing market over the course of a long year, there are some things that I think we can be fairly confident about.So, here’s my take on what to look out for in 2021 as the market hopefully continues its recovery from the pandemic-impacted last 12 months.Last orders for the Stamp Duty holidayIt’s likely that the market will be busier between Christmas and March 31st than perhaps it might be for the remainder of the year with a last dash to the Stamp Duty finishing post.Stamp Duty on purchases up to £500,000 was suspended by the Chancellor in the early summer as he looked to kickstart a market that had been brought to an emergency stop for three hard months of lockdown.Essentially, it was a move that gave everyone buying a property worth more than £500,000 an extra £15,000 in their pocket. Not surprisingly, the market has been in overdrive for the last six months of this year as a result.But the clock is now ticking loudly as we prepare for the final three months of the temporary Stamp Duty rules.Twelve weeks is a tight timetable in which to get a purchase completed, but it’s not impossible – so expect buyer demand to remain buoyant, at least until the point where its simply not possible to get a purchase over the line.In short, if you’re looking to buy and take advantage of the cash benefit the Stamp Duty holiday brings, or you’re thinking about moving and want to get the best possible price for your home, you need to act now.Deal or no deal, Brexit will play its partNo one is in any doubt that regardless of what may happen in the longer term, Brexit will present challenges whether we have a deal with Europe or not (and at the time of writing this, Boris Johnson and EU president Ursula von der Leyen have extended the deadline for negotiations to be concluded).The messages from both pro-Remain and pro-Leave have been markedly and obviously different overall, but in the Venn diagram of those opposing views there is at least mutual recognition of the fact that we face a tricky period adapting to whatever new arrangements are in place.The impact on the economy is far from certain – these are waters not charted by the UK in nearly half a century and the political and economic is far different to the one in which we joined the Common Market, as it was then known, in the mid-Seventies.Whatever the overall economic impact of Brexit, the only certainty is that we will see it reflected in the housing market.Prices will continue to rise, but sales may fallResidential housing plays a big part in the UK economy and so there’s a big economic incentive to keep it growing at a sustainable rate.Most analysts are expecting house prices to continue to grow, though at a more subdued rate than is expected for the three-year period starting with 2022.But some, like estate agents Knight Frank, also warn that in contrast to rising values, sales will actually fall by around 15 per cent in the next 12 months.So, what does that mean in practical terms?If Knight Frank are right – and as with all forecasts, that’s not a given – then assuming there are no further incentives from the Government at the end of the Stamp Duty holiday, people may well take a ‘wait-and-see’ approach.People are likely to be understandably cautious about taking on more debt at a time when the economic waves of both the global pandemic and Brexit – good or bad – have yet to roll onto the beach.Many may well choose to wait to see predictable trends in the financial and job markets and will have particular regard for the Bank of England’s strategy on interest rates and its effect on the mortgage market.Speaking of which …Interest rates – the market’s unknown quantityWell, perhaps unknown isn’t quite the right phrase because we know what we’re dealing with right now: rates that are at an all-time low of 0.1%, which helps to fuel market confidence.If we accept that taking them to zero or below would be not only unprecedented but also a move that would likely be triggered only in the direst of economic circumstances, then there is only one way for interest rates to travel.The question, then, is when they start to move.The Seven Capital report (see the link above) makes the point that the likelihood will be a continuing period when the current rate remains static. But the Bank of England has been consistent in its message that it’s aiming for an inflation target of 2%.Maintaining an exceptionally low base rate doesn’t serve that ambition, so we can probably expect rates to begin to rise gradually again at some point – but probably not until we see sustained and sustainable economic growth over a period of months.In the end, most residential housing forecasts predict house price growth – by anything between 3% and 8%, depending on which report you happen to read – and so in terms of the housing market, there is a sense of optimism around the place.And of course, for those who have certainty of income (or saved wealth) and employment or believe they are financially secure enough to weather whatever the economic climate brings, planning for a move in 2021 makes a lot of sense.Demand is high, rates are low, and the market is incentivised for at least the next three months. So, if you’re considering moving home in the next few months, come and talk to our friendly team to find out how we can make the dream happen. Oportfolio Limited is an appointed representative of Primis Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct AuthorityYour property may be repossessed if you do not keep up repayments on your mortgage.Oportfolio Ltd fees are payable on application. We charge a broker fee for property purchases of £495 and a remortgage/further advance fee of £395. Our product transfer fee is £295.

After the year we’ve had, it’s understandable that many people don’t want to take on the additional burden of a bigger mortgage to buy their dream home.As I’ve already explained in a previous article, if you do want to take advantage of the stamp duty holiday, which closes on March 31st next year, and you haven’t got the ball rolling already then you really do need to get your skates on if you’re to have any chance of completing before the deadline.But for a lot of people, the lack of job security that comes as a result of the gloomy predictions about the UK economy over the coming 12 months or more has given pause for thought.Lockdown may have been tough for many of us, but what it certainly has done is give homeowners the opportunity to experience their property up close and personal and see it warts and all.Living in a house in ‘normal’ times is very different to being confined to it, especially if you have school-age children who were sharing that space with you for the five months between the end of March and the beginning of September.What some of us have found is that the spaces we once thought perfectly adequate have narrowed. The kitchen that seemed to be tired by functional has been found wanting. Windows need replacing. The hot summer exposed the lack of relaxing spaces in the garden. And with the house full of people, the need for an en suite has never been starker.For others – the empty-nesters or those in later life who now find themselves living alone – it’s the sometimes overwhelming surplus of unused space that may have been the most noticeable thing.Pre-Covid our thoughts may have turned at some point to upsizing or downsizing to find a space more suited to our needs.But with the housing market effectively shut down for three months of this year and uncertainty reigning in the economy, we’ve had the opportunity to be a little more creative in how we view our own homes and the ways in which we can either create more space or make the extra space we have more useable.More than that, the sudden spike in demand from homebuyers when the property market reopened at the end of June was also a factor in driving house prices up to what many people consider artificially high levels – cooling interest from prospective buyers who might like to move house, but don’t need to.If you fall into either of these categories, then remortgaging could well be the best move you could make if you’re nervous about taking on significantly more mortgage debt but really need to make your home work differently for you.According to the online news portal Financial Reporter, remortgaging applications were up 11% on normal levels during October this year – the sixth month running that remortgage activity was above market norms.And with lenders now becoming more circumspect in mortgage lending for purchases (again, my earlier article this month looked at the way banks and building societies were squeezing the availability of high loan-to-value (LTV) borrowing), there are good deals to be had from banks and building societies that may be attracted by loans that represent lower risk.All that said, any form of charge on your house – where someone else, in this case a lender, owns part of your property – is something that needs to be thought through carefully and we’d always advise you to speak to a professional adviser to get the advice that best suits your specific needs.At Oportfolio, we work with our clients to help them find the solutions that will best suit their lifestyle and their financial situation – bot now and in the future – to make sure they get the home they want at a price they can afford.And on top of that, we take all the stress out of the remortgage process by ensuring we’ve thought about and addressed potential issues long before a lender sees your application – putting you in the best possible position to be accepted for the loan you need.So, if you’re looking to create a dream home out of your existing property and are thinking about remortgaging as a way of financing it, why not get in touch for an informal chat and see how we can help to turn that dream into reality for you? Oportfolio Limited is an appointed representative of Primis Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct AuthorityYour property may be repossessed if you do not keep up repayments on your mortgage.Oportfolio Ltd fees are payable on application. We charge a broker fee for property purchases of £495 and a remortgage/further advance fee of £395. Our product transfer fee is £295. 

The ongoing coronavirus crisis continues to put pressure on family income as the true impact of the Government's social distancing strategy is felt around the UK.There are a number of schemes that have been launched to help businesses, those in full-time employment and the self-employed financially. But the enforced isolation we're all experiencing has also been a time for many people to take stock of their personal finances.Despite the concerns that many people feel at this time, it's also an opportunity to think about the future and how we can safeguard ourselves in the future.Here’s our checklist for the things you can do now to give yourself complete peace of mind that you're protected in the future. Does your mortgage need updating? Many people are worried right now about how to pay their mortgage. If you share that concern, you're likely to qualify for the Government's mortgage relief scheme, which offers a 3-month 'holiday' from mortgage payments to ease the pressure on your finances.Even if you don't have any immediate concern about meeting your monthly payments, this is a good moment to review your existing deal.If you’re on a fixed rate or fixed-term mortgage, do you know when your deal expires?Even though there’s a lot of publicity around reminding us all of the possible benefits that can be gained from switching your mortgage when you’re approaching the end of your existing agreement, it’s still surprising how many homeowners allow themselves to lapse to their lender’s standard variable rate (SVR).Paying your mortgage at the SVR is more expensive and although there are circumstances where it might not make sense to move to a different rate (for example, if you’re planning to move or remortgage and want the option to move to another lender without having to pay an exit fee on your current mortgage) it’s a good idea to look at your needs a few months before your existing deal runs out, as most lenders will allow you to start applying for a new rate between 3 and 6 months ahead.You should always talk to a professional mortgage broker as he or she will be able to give you the right advice about the action you need to take with your mortgage, whether that’s to stick with your current lender on a new deal or switch your mortgage elsewhere. Is your life cover fit for purpose? It’s easy to forget about things like life insurance when our circumstances change, but it’s important that you take a moment each year to review the provision.It may be that you took out your policy years ago, perhaps to cover the remaining term on your mortgage when you first took it out, but if you’ve had a change in your circumstances since then – maybe you’ve remortgaged and extended the term, for example – then it could be your current level of insurance won’t cover what it needs to cover should the worst happen.If you discover that your life insurance is no longer adequate, then speaking to a professional adviser like Oportfolio can help you to choose the right product. Is your income protected? Your life insurance will payout when you die, ensuring the people you leave behind are looked after financially. But what happens if you can’t work – either permanently or for an extended but temporary period?These are situations that can be overlooked when planning for the future, but as we age our health inevitably becomes more vulnerable.There are two types of protection that can give you peace of mind when it comes to your income. One is critical illness cover, which will pay out a tax-free lump sum on diagnosis of a serious (often terminal) illness.This type of insurance, also known as cancer cover, since that is the condition most policies payout against, ensures you have enough money to allow you and those close to you to live comfortably.The second type of financial protection you might consider is income protection. This is a useful policy replaces a significant proportion of your salary if you’re unable to work for a prolonged length of time, but will eventually be able to return to work in the future.Although the sum paid is usually around 75% of your gross salary, the fact its tax-free means it is likely to more or less equal to your take-home pay.At Oportfolio we have the experience and expertise to offer you professional advice about the suitability of these products for you. Property insurance These are the policies that are most likely to be on your radar because they renew each year and you’re reminded of that by the insurer.Again, it’s worth taking a moment to speak to an adviser to ensure you’re getting the right product and to explore the market to see what else might be available.At Oportfolio we use a trusted panel of mortgage and insurance providers in order to give you the best possible advice about securing your financial future.Why not get in touch and see how our friendly team of advisers can help you to have a successful 2020?  Oportfolio Limited is an appointed representative of Primis Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct AuthorityYour property may be repossessed if you do not keep up repayments on your mortgage.Oportfolio Ltd fees are payable on application. We charge a broker fee for property purchases of £495 and a remortgage/further advance fee of £395. 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One is critical illness cover, which will pay out a tax-free lump sum on diagnosis of a serious (often terminal) illness.This type of insurance, also known as cancer cover, since that is the condition most policies payout against, ensures you have enough money to allow you and those close to you to live comfortably.The second type of financial protection you might consider is income protection. This is a useful policy replaces a significant proportion of your salary if you’re unable to work for a prolonged length of time, but will eventually be able to return to work in the future.Although the sum paid is usually around 75% of your gross salary, the fact its tax-free means it is likely to more or less equal to your take-home pay." } }] }

Despite the uncertainty in the housing market, the prospect of buying a second property – or perhaps a third, fourth or fifth – to rent out is still attractive to a lot of people.Recent research comparing the England and London property rental sector with world economies places England above 159 nations – specifically, between Ethiopia and Sri Lanka. London alone, where the sector is worth £21 billion annually, would be placed above 124 countries, sitting above North Korea but behind Latvia.And with homeownership for first-time buyers still a pinch-point for the market in spite of a number of High Street lenders recently announcing attractive mortgage products for first-time buyers, the rental market is expected to continue to grow.There are, of course, considerations that any prospective landlord would need to consider carefully. As Money Week noted recently, changes to Stamp Duty, mortgage interest relief and lettings agency fees, have put challenges in the paths of amateur landlords who may otherwise have been attracted to ‘dabble’ in property as a source of income.That said, profitability is also partly down to that old estate agency maxim of location, location, location. If you own a rental property in a highly desirable area, particularly in London, it’s likely to be easier to let at a good rent.That doesn’t guarantee a profit, of course, but a property in the right place is an obvious must if you’re to have any hope of making a decent yield on your investment.So, if you’re considering a buy-to-let investment and we assume you’ve got the basics right, what are the mistakes you need to avoid? Not minding your own business In the end, rental property is a business. It may not be a business with massive turnover or huge margin, but at the most granular level, it needs to at least break even. That means being prudent over what you invest in it – both in terms of real costs and your own time and effort, both of which have a value.If decorating, building works or ground and garden maintenance are needed, that will eat into your margin, so be pragmatic about where and what you invest. If a cheaper own-brand paint will serve just as well as the high-end stuff, that’s what you should consider using.Similarly, if the time and effort you spend dealing with the management of the property is going to materially reduce the amount you can earn from your day job, that needs to be factored in, too.There are a lot of landlords out there who failed as property entrepreneurs because they didn’t realise or remember their buy-to-let was a business – but if you keep the business side of your investment in mind, you’re less likely to become one of them. Failing to understand your responsibilities As a landlord, you’ll have a lot of statutory responsibilities and if you don’t understand what you have to do (and what you don’t have to do), life can get tricky.Your contract with your tenant and the rental agreement they have with you depends on both of you doing certain things.Among many other things, you’ll need to get certificates and undertake responsibilities for certain repairs – your tenants will be required to give you access on an agreed arrangement, pay the rent on time and keep the property in good order.If you – or they – fail to do what you’re required by legislation to do, someone could be in breach of contract. Failing to get the right cover This is a crucial thing to get right. The simple fact is that ordinary household insurance is highly unlikely to cover your property.Because your property is occupied by people who may not treat it with the same respect you would as the owner, and because there’s a chance it will be vacant at times (for example, between lets), insurers consider the buy-to-let property to be a different type of risk to that of an owner-occupied home.You’ll need to get specialist landlord insurance to cover your building (and, if you’re letting a furnished property, its contents – if it’s unfurnished, the tenant will be responsible for insuring their own possessions).We can help you to find a suitable product that offers you the best cover for your needs. Call us on the number below to speak to a member of our friendly team and find out more.Not planning to planInevitably, a buy-to-let will generate expense. It’s likely you’ll have to do repairs to the property that you may choose not to do – or to delay – if it were your main residence. The boiler might need to be replaced. The property will almost certainly need redecorating from time to time – and probably more frequently than you would do if you were living in it.Most of the expenses you currently associate with your own home will crop up in some form at your buy-to-let, so it makes sense to ensure you’re budgeting for those over the long-term so you aren’t hit with any nasty surprises.Getting your buy-to-let investment right doesn’t need to be an arduous process – and it can save you money and time in the long run if you start as you mean to go on.If you’re considering buying an investment property and want to generate an income from it, come and talk to us about how our expert mortgage and insurance advice can give you the peace of mind of knowing you’re set up for the best chance of success.Want to know how other clients felt about working with Oportfolio? Watch Gus and Selena’s video story!   To find out more about our friendly and professional mortgage service, fees and what we can do to help make sure you’re not paying over the odds for your mortgage, why not visit www.oportfolio.co.uk or give us a call on 020 7371 5063. Your property may be repossessed if you do not keep up repayments on your mortgage. Oportfolio Ltd fees are payable on application. We charge a broker fee for property purchases of £495 and a remortgage/further advance fee of £395. Our product transfer fee is £295.

Every client we see among the many hundreds we deal with each year is unique. They all have different priorities, different circumstances, different needs, different things to consider and different ways of approaching the decisions they need to make. There is no one-size-fits-all solution to the important things in life. There never has been. At Oportfolio, we understand this. It’s a philosophy that has been the foundation of our success over our decade in business because when you walk through our door or call us for the very first time, we treat you like we treated our very first client all those years ago. It’s how we’ve treated everyone who has come to us before you, and it’s how we’ll treat the next person to come to us after you. And the one after that. And the one after that. Whether it’s a mortgage, health and personal insurance or cover for their home or investment property, the only thing we’re really interested in is what matters to you right now. That doesn’t mean we can’t offer professional advice that will help you think about tomorrow – we can, and do; but first and foremost, we make it our priority to understand yours and then meet it if we can. You might be a first-time buyer looking for their first step on the property ladder, a seasoned mover aiming to make a move into your forever home, a homeowner looking for a better mortgage deal or an investor interested in expanding their buy-to-let portfolio. You may have a young family and are looking to safeguard their future by protecting your income or guarding against ill-health. Or you could be looking for tailored specialist insurance cover to help protect your home, contents or investment property. Today’s markets for all of these products and more besides is highly competitive and the wealth of choice available can be overwhelming and confusing. Moreover, you won’t always be able to access the most suitable mortgage or insurance products online or in the High Street. At Oportfolio we’ve been established for a long time and we work with a carefully-selected panel of providers to ensure we can offer competitive products at prices tailored to your individual budget and what you can afford. In the end, how we can help you with any and all the products and services we offer ultimately comes down to the same thing: what matters to you? We’ll spend time working alongside you to understand that and to advise you on how best to fit the mortgage or insurance cover you need to your unique and individual circumstances. And then we’ll be with you every step of the way to help you achieve success. Because what matters to you is really the only thing that matters to us. To find out more about our friendly and professional mortgage service, fees and what we can do to help make sure you’re not paying over the odds for your mortgage, why not visit www.oportfolio.co.uk or give us a call on 020 7371 5063.   Your property may be repossessed if you do not keep up repayments on your mortgage. Oportfolio Ltd fees are payable on application. We charge a broker fee for property purchases of £495 and a remortgage/further advance fee of £395. Our product transfer fee is £295.