We’re celebrating our 5th Anniversary! From our humble beginnings in 2019 with just Julian and Peter, we’re now a team of ten with a broker network spread across the South and East of England and East and West Midlands. We couldn’t be prouder of our achievements, with multiple awards, most recently Best Mortgage & Protection Advice Company at the Southern Enterprise Awards 2024 and over 200 5-star reviews.
Thank you to every single client who has trusted Stratton Thorpe to provide tailored mortgage and protection advice over the last five years!
THERE’s STILL TIME TO DONATE!
By the time this goes to press, Julian will have completed his One Million Step Challenge for Diabetes UK. Since 1st July, he has been out and about, come rain or shine (mostly with his four-legged friend Rolo 🐶). There’s still time to support Julian and donate to his fundraising page. Every penny counts and will make a huge difference to such a worthwhile charity 🫶 THANK YOU
MORTGAGE NEWS
I’ve inherited a property – can I expand into buy-to-let?
Yes, it can be done, but first it’s important to note that you’re already on the property ladder, given that you own a home with no mortgage. This puts you in a strong financial position.
If you’re interested in building a property portfolio, what you’re describing is known as a ‘let-to-buy’ arrangement. This involves letting out your current property, raising a buy-to-let mortgage against it, and then using the released equity as a deposit for purchasing another property.
However, there are a few key considerations to keep in mind:
You won’t be able to release all the equity from the property. Lenders will allow you to release a certain percentage of the equity based on the rental value of the property, which you can then use as a deposit for your next purchase.
You will need to account for additional stamp duty. This is because your next property purchase will be considered a subsequent home.
You will also be subject to the standard mortgage assessment process. This takes into account your income, the deposit and other factors like stamp duty.
While you won’t be able to extract all the equity, you should be able to release enough to make a substantial down payment on your new residential mortgage. Simultaneously, you would take out a buy-to-let mortgage on your existing property. This is the essence of a let-to-buy strategy.
The key to making this work is seeking advice. It’s essential to assess how much you can borrow on a buy-to-let basis for your current property and how much you can borrow for the onward purchase.
Sitting down with a mortgage adviser is crucial—they can help you plan everything out, set realistic expectations and budgets, and guide you through sourcing your next property.
SOURCE: WHAT MORTGAGE
Average fixed mortgage rates fall across the board and product shelf life improves – Moneyfacts
Fixed mortgage rates have fallen across the board and the average mortgage shelf life has improved month-on-month, figures show.
According to figures from Moneyfacts, average fixed mortgage rates on a two- and five-year term have decreased by 0.21% and 0.18% respectively to 5.56% and 5.2%.
The report found that the average two-year fixed rate is at its lowest level since February 2024 and the average five-year fixed rate is at its lowest level since March 2024.
Moneyfacts said that the average fixed mortgage rate on a two-year term is 0.36% higher than its five-year equivalent, adding that two-year fixed rates have been higher than their five-year equivalent since October 2022.
The average two-year tracker variable rate mortgage fell to 5.68% in September, which is down from 5.95% in August and a drop from 6.25% in the same period last year.
The average standard variable rate (SVR) came to 7.99%, which is a drop from 8.16% in August and 8.09% in September 2023.
The highest SVR was recorded at 8.19% during November and December 2023.
Product choice fell slightly to 6,253 options in September from 6,657 in August but is higher than the 5,338 recorded in September last year.
The average shelf life of a mortgage product increased to 21 days, which is a rise from 17 days in August 2024 and 15 days in September 2023.
SOURCE: MORTGAGE SOLUTIONS
Q4 set to be busy time for remortgages
The average remortgage loan amount in London was £368,047, while the average for the rest of the UK stood at £172,268 making remortgage loan amounts 114% higher in London than in the rest of the country.
This is according to the July Remortgage Report from LMS which also revealed that £367.03 was the average monthly payment increase for those who remortgaged in July.
Some 45% of borrowers increased their loan size during the month and 44% of those who remortgaged took out a 5-year fixed rate product, the most popular product last month 26% said their main aim when remortgaging was to release equity in their property.
SOURCE: MORTGAGE STRATEGY
200+ 5-Star Google Reviews
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200+ 5-Star Google Reviews ⭐️
We have over 200 5-star Google Reviews ⭐️⭐️⭐️⭐️⭐️ Thank you to everyone who has taken the time to leave us a review. As a local small business, we really appreciate your support.
Move home by Christmas: Tips to speed up your property purchase
Want to be in your new home by Christmas? Whilst it might be an unrealistic deadline for most buyers, there are still ways you can speed up the home-buying process.
Prepare your paperwork and hire a conveyancer
A common cause of delays in the home buying process is not having complete paperwork. Before you even open Rightmove, make sure all your paperwork is in order.
This includes having a mortgage agreement in principle, as well as bank statements, utility bills, pay slips, and a valid form of ID like your passport. You don’t want to go through part of the process and then take steps backwards due to a missing document.
Enlisting a conveyancer early is crucial. Conveyancers are legal experts who handle the transfer of property ownership, and having one ready to go can help streamline the process. Make sure to choose a conveyancer who is transparent about their fees and services.
Manage your expectations around moving
Having grounded expectations about the timeline is vital. Even if you do everything right, you can still run into delays as there are factors beyond your control. These can be delays in receiving mortgage approval or issues in the property chain.
The latter is particularly tricky, as your purchase may be dependent on other buyers and sellers completing their transactions.
Embrace technology
The conveyancing process has evolved significantly in recent years, with digital ID checks becoming increasingly common. These checks, which use biometric and cryptographic technology to verify your identity, have helped speed up the property buying process. If your conveyancer offers digital ID verification, it’s worth taking advantage of this option to avoid unnecessary delays.
However, with the rise of digital tools comes the need for increased vigilance against fraud. Always double-check the bank account details before transferring any money. If in doubt, call your conveyancer to confirm the details.
Stay informed – ask questions and communicate
Finally, the most common cause of frustration in the home-buying process is a lack of communication. Make sure you understand each step of the process and don’t hesitate to ask your conveyancer for clarification if anything is unclear. Similarly, if you’re going to be unavailable at any point, inform your conveyancer in advance so they can plan accordingly.
While it may not be possible to move into your new home before Christmas this year, following these steps can help ensure that your sale is as smooth as possible. By being prepared, managing expectations, choosing the right professionals and embracing digital tools, you can get into your new home as fast as possible, even if it’s after Christmas.
SOURCE: WHAT MORTGAGE
