We've just celebrated our 4th Anniversary and feel incredibly proud of our achievements. Since we opened in 2019, we've arranged over 1,735 mortgages worth more than £346million in written loans. Our team has steadily grown to six at Stratton Thorpe, plus our network of extended brokers now includes five companies across Leicestershire, Midlands, Rugby & Coventry, Cambridgeshire, and Surrey. Above all, the most pleasing is our consistently excellent feedback. We love hearing how much you love our personalised service as we go above and beyond to help our lovely clients. THANK YOU ❤️
Team News
We're pleased to announce Stratton Thorpe Mortgage Solutions now sponsors Hornton FC. Our very own Peter Thorpe is captain and has played for the team for 14 years. Playing in the Banbury District & Lord Jersey league, with their home at Hornton playing field - AKA The Cauldron! They've kicked off the season to a great start with three wins from three 💙⚽️ We're in great company with fellow sponsors The Oxford Iron Company and Campbell Martinez Construction Consultants.
mortgage NEWS & UPDATES
Skipton BS expands track record mortgage criteria to include former homeowners
Skipton Building Society has broadened its 100 per cent loan to value (LTV) product, the track record mortgage, to tenants who have previously been homeowners to offer a “homeownership lifeline”.
In an amendment to its criteria, the lender is allowing tenants who have been homeowners prior to the last three years, who can evidence affordability and with a strong track record of rental payments, to borrow up to 100 per cent of a property’s value.
The product was launched in May this year and was initially aimed at renters trying to get onto the property ladder without the Bank of Mum and Dad or guarantors.
Skipton has received £40m in mortgage applications, with over half of applicants looking to purchase terraced houses and 17 per cent being located in Scotland.
SOURCE - MORTGAGE SOLUTIONS
Rents set to rise almost five times faster than house prices by 2026: Hamptons
Rents are set to rise almost five times faster than house prices over the next four years, according to a forecast by Hamptons.
The estate agents forecast that rents will rise 25% by 2026, compared to a 5.5% price growth in property prices across Great Britain.
It predicts that falling mortgage rates combined with rising real incomes should see price falls stabilise in Q4 2024, before picking up again in 2025.
Hamptons also predicts that the total number of property transactions for 2023 will be just under one million – the lowest number of residential completions since 2012.
It believes transactions should recover to at least their pre-Covid norm in 2025 as lower mortgage rates unlock moves from previously priced out households.
However, a higher interest rate era will mean that the new norm will be between 1.2m and 1.3m transactions each year, rather than the 1.3m-1.4m it predicted last year.
SOURCE - MORTGAGE STRATEGY
Holiday lets: All you need to know about the mortgage and finances
Whilst overseas travel has enjoyed a boom this year, the air traffic control chaos which ensued on Bank Holiday Monday has also highlighted one of the major benefits of staying in the UK. You may not be able to guarantee the weather here, but the simplicity of rocking up to your holiday destination with only a train journey or a drive is quite alluring.
It’s no wonder so many people are purchasing their own holiday let so they can enjoy the benefits of a UK break themselves, whilst also making money at the same time. Bev Dumbleton, chief operating officer at Sykes Holiday Cottages, said for those thinking about renting out a second home or purchasing a holiday let, it’s important to be aware of the costs and steps to take.
From taxes to maintenance fees and mortgages, she runs through all you need to know below...
1. Take care of taxes
The good news is that there is a collection of tax benefits that holiday homeowners are eligible for which can make holiday letting more attractive than owning a buy-to-let.
For example, the HMRC allow running costs and expenses to be deducted from your overall income, meaning the amount of tax you pay on any profits is lower, and owners are also given capital allowances on items that are used to boost the potential income of their holiday let, like furniture.
But there are still several taxes of which to be aware. Owners of holiday lets need to pay council tax which can be higher than regular properties and differs by region.
Meanwhile, stamp duty is another one to take into consideration. This requires second homeowners, including those with properties which are let out, to pay an additional 3% tax on top of current rates.
Income generated from your holiday let will also be subject to income tax. The caveat to this, though, is that there isn’t a limit on the amount of mortgage you can offset with the profits you make from your holiday home.
And finally, if you sell a holiday let, you might be able to benefit from certain capital gains tax reliefs, such as Entrepreneurs’ Relief.
2. Managing your mortgage
If you’re planning to purchase a property to rent out as a holiday home, you’ll need a special holiday let mortgage which differs slightly from a residential or buy-to-let one. The deposit required for this will depend on the mortgage product you choose. The different types of deals available for holiday lets include fixed-rate, discounted-rate, and flexible-rate mortgages, but the deposit required is usually around 25% to 35%.
It’s a good idea to look for a broker specialising in this area and be prepared that mortgage lenders will want reassurance that your property has the potential to make a successful holiday let.
3. Budget for maintenance fees
Once your property is up and running as a holiday let, making sure it remains in tip-top condition for guests is key. Although this can come at a cost, with holiday let owners spending a yearly average of £1,520 on maintenance fees such as plumbing, electrics, and gardening, it will likely be worth every penny.
There are also ways to cut these costs. For example, if you live nearby, you could take on the cleaning and gardening yourself rather than outsourcing this service.
What’s more, maintenance fees are likely to be less expensive for holiday lets than buy-to-lets, as you’re able to keep a closer eye on the property and make smaller adjustments more regularly to spread the cost.
4. Holiday let agency fees
Holiday let agencies are there to support you along every step of your holiday letting journey, from helping you to choose the right property for you to taking care of marketing. Agencies typically take around 20% commission from each booking for their services, but this can vary based on the level of support you receive from them.
Although an added cost, agencies go a long way to help drive staycation bookings and can help manage the finer details such as advising on pricing or managing any customer requests.
5. A few added extras Last but not least, there are a few more costs to holiday letting to factor in. It’s essential to insure your holiday let so you’re protected should anything go wrong. Generally, standard home insurance policies don’t cover holiday lets, so you may need to take out a specialist policy. This will typically provide cover for both buildings and contents, along with additional protection tailored for holiday rentals.
You may also like to have some money set aside for updating the furnishings in your property or giving the interiors a general refresh. Small touches such as welcome packs go a long way towards driving bookings and making guests feel at home, while additions such as hot tubs or log burners have been proven to significantly increase income
SOURCE - WHAT MORTGAGE
IS your current mortgage deal ending before 1st APRIL 2024?
If your current mortgage deal ends before 1st April 2024, it's time to consider your remortgage. With remortgage applications, paperwork, valuations, and approvals taking between 8-12 weeks, sometimes more depending on your circumstances, now is the perfect time to start considering your options.
· Free no-obligation initial consultations
· Flexible appointments at a time & location to suit you
· Simple, hassle-free service - we take care of everything to ensure a smooth transition to your new mortgage
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