motion-mortgages

UK Mortgage Rates Dip Below 5% for First Time Since 2022

Sun, 17 Aug 2025 11:46:45 GMT

Two-Year Mortgage Rates Drop Below 5%: A Key Opportunity for Borrowers

After years of volatility and rising costs, mortgage rates are finally showing signs of relief. The average two-year fixed deal has now dropped below 5%; a milestone that hasn’t been seen since 2022. For homeowners coming to the end of their fixed terms, and for first-time buyers wondering if now is the right time, this shift could open the door to opportunity.

What's happening? Let's break it down

The average two-year fixed mortgage rate has fallen to 4.99% , marking the first time it has dipped below 5% since the mini-budget triggered a spike in borrowing costs in September 2022. This change signals growing competition among lenders.
For the first time in years, two-year rates are now slightly cheaper than five-year fixes, reflecting renewed market expectations of near-term interest rate cuts.
The Bank of England recently lowered the base rate to 4%, its fifth cu t since last year, making borrowing less expensive, especially for those with tracker mortgages .

Why it matters to you

Shorter fixes are back in favour

Two-year deals under 5% are now more attractive than longer-term options in a shift back toward historical norms. However, it's still important to talk to an adviser to find the best option and term for your specific circumstances.

Expiring mortgages = time to act

With many fixed-rate mortgages ending in the second half of 2025, borrowers could lock in lower payments now rather than wait.

Lower rates, but not sharply falling

Despite the rate cut, inflation forecasts suggest further reductions may be slow.

Lenders are racing to compete

Banks are slicing margins to attract new customers, meaning better offers could emerge soon.

What you should do now

If your fixed deal expires soon , now’s a great time to remortgage . Two-year fixes offer better affordability than longer terms.
If you're on a tracker or SVR deal , transitioning to a fixed rate could protect you from future rate hikes while rates are still falling.
First-time buyers : This dip is particularly relevant—current two-year rates around 4.99% are historically competitive.

Need help weighing your options?

A mortgage broker (like the team at Motion Mortgages) can help you compare rates, match them to your plans, and act quickly. Whether you're re-mortgaging , moving home or a first time buyer , expert advice can help you seize this rare window. Contact Motion Mortgages today to explore your options.

The Financial Conduct Authority does not regulate some forms of Buy to Lets. Your home/property may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for mortgage advice. The precise amount will depend upon your circumstances, but we estimate it will be £495.

Buy Your Home with £0 Deposit

Wed, 04 Jun 2025 14:02:50 GMT

April Mortgages announce 0% deposit mortgage

Getting on the property ladder just got a whole lot easier.

One of our lenders, April, has launched a brand new mortgage product – and it could mean you no longer need to save up for a deposit at all. That’s right: 0% deposit, 100% Loan-to-Value (LTV), and a real opportunity for eligible buyers to move in sooner than they thought possible.

Let’s take a closer look at what’s on offer.

Who is the No Deposit mortgage for?

This product is designed for homebuyers with a strong financial profile, but without a deposit saved. To be eligible, you’ll need to:
✔ Be a UK resident
✔ Have a household income of at least £24,000
✔ Have a good credit history
✔ Be buying a house (not a flat or new build) worth over £75,000
✔ Be under 70 years old at the time of application (and under 80 by the end of the term)

What kind of property can I buy?

This mortgage is available for houses only – sorry, flats and new builds aren’t included – and the property must be your main residence.

How much can I borrow?

With this product, you can borrow 100% of the property’s value*, meaning there’s no need for a deposit.

It’s important to understand the risks: if house prices drop, you could fall into negative equity, which may make it harder to move or remortgage later on. That’s why the lender carries out detailed affordability checks to ensure it’s the right fit for you now – and in the future.

*Subject to the lenders standard affordability checks

What are the benefits?

There are plenty of features built in to help make this mortgage work for you:

0% deposit required
Fixed rates for 10 or 15 years
Rate drops automatically as you repay more
No early repayment charges if moving or repaying from your own funds

Unlimited overpayments whenever you like

What are the risks?

As with any loan, there are always risks; with the 100% LTV mortgage the main one is that house prices can fall, leaving you in negative equity (where you owe more than the house is worth). We can answer any questions and address any concerns, and make sure you’re aware of all the risks and benefits before proceeding with your application. Remember, we’re here to help and make everything crystal clear for you.

Are there any other costs?

Yes – while you won’t need a deposit, you’ll still need to budget for other expenses like legal fees, Stamp Duty, valuation fees, and moving costs.

How do I apply?

This mortgage is only available through brokers – and advice is mandatory. That’s where we come in.

A qualified mortgage adviser will look at your financial situation, talk you through your options, and help you decide if this is the right route for you.

Could this be your key to buying sooner?
If saving for a deposit has been holding you back, this could be your chance to take the next step.

Get in touch with the team at Motion Mortgages and let’s find out if the April Mortgages No Deposit mortgage is the right move for you.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. Initial consultations are completely free of charge. There's no obligation to proceed and our broker fee of £495 will only become payable at offer stage of your mortgage application. Your home may be repossessed if you do not keep up repayments on your mortgage. The Financial Conduct Authority does not regulate some forms of Buy to Lets. Your property may be repossessed if you do not keep up repayments on your mortgage.

Halifax Releases New Affordability Calculations

Tue, 06 May 2025 10:01:43 GMT

What do Halifax's new affordability calculations mean for you?

Halifax has recently made changes to their affordability calculations, with the aim of helping more people step onto (or move up) the property ladder.

They have reduced the stress rates used in standard affordability calculations and are offering enhanced affordability for select 5-year+ mortgage products and like-for-like re-mortgage applications.

What’s the impact?

Home buyers may now be able to borrow significantly more. For example, a typical household of 2 adults, 2 dependants, and a combined income of £75,000, could see their borrowing potential increase by as much as £38,000. This scenario assumes a 25% deposit, a 2-year product, and a 25-year term.

The move is expected to make homeownership more accessible and affordable, especially for families looking to purchase or refinance in today’s competitive market.

Want to know how much you can afford? Get in touch with our friendly team of mortgage advisers today.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

What Should a First-Time Buyer Ask a Mortgage Adviser?

Wed, 16 Apr 2025 11:00:45 GMT

If you're a first-time buyer looking for mortgage advice, here are some key questions you can ask to help kick-start your journey.

Buying your first home is an exciting milestone, but navigating the mortgage process can feel overwhelming. Speaking with a mortgage adviser is one of the best ways to get clarity and ensure you make informed decisions. Asking the right questions can help you understand your options, avoid unexpected costs, and secure the best possible deal. In this blog, we outline the key questions every first-time buyer should ask their mortgage adviser.

1. How much can I borrow?

2. What type of mortgage is best for me?

There are several types of mortgages available, each with pros and cons depending on your personal circumstances. Some common options include:

Fixed-rate mortgage – Your interest rate remains the same for a set period, offering stability.
Variable-rate mortgage – The interest rate fluctuates based on market conditions.
Tracker mortgage – Your rate follows the Bank of England base rate.

A mortgage adviser can help you choose the best option based on your financial situation, so make sure you have this question lined up when speaking to them.

3. What deposit do I need?

Typically, lenders require a deposit of at least 5-10% of the property’s value. However, a larger deposit (e.g. 20%) can unlock better interest rates and lower monthly repayments. Your adviser can explain the impact of different deposit sizes and help you plan accordingly based on your personal financial situation.

4. What government schemes are available?

5. What fees and costs should I expect?

Beyond the mortgage itself, there are additional costs to consider, such as:

Arrangement fees – Charged by lenders for setting up the mortgage.
Legal fees – Covers solicitor costs for conveyancing.
Stamp duty – First-time buyers may benefit from stamp duty relief on property purchases
Valuation and survey fees – Ensures the property is worth the agreed price and identifies potential issues.

Your mortgage adviser can help you understand more about these fees, and help you to budget for them, thus avoiding any financial surprises!

6. How can I improve my mortgage eligibility?

Lenders assess your financial health before approving a mortgage. Steps to improve your eligibility include:

Checking and improving your credit score.
Reducing outstanding debts.
Saving for a larger deposit.
Maintaining stable employment and income.

Your adviser can provide tailored advice on strengthening your mortgage application.

7. Should I use a mortgage broker or go direct to lender?

8. What happens after my mortgage is approved?

Once your mortgage is approved, the next steps include:

Finalising the property purchase with solicitors.
Completing necessary paperwork and agreements.
Setting a completion date and preparing for move-in day.

Your adviser can walk you through the final stages and ensure a smooth transition to homeownership. At Motion Mortgages, we will be with you every step of the way until you have the keys in your hand.

As a first-time buyer, asking the right questions can make the mortgage process far less daunting. From understanding how much you can borrow to exploring government schemes and additional costs, a mortgage adviser is there to guide you every step of the way. By getting expert advice early, you’ll be in a stronger position to secure the right mortgage deal for you, and confidently step onto the property ladder.

Ready to start your home-buying journey? Contact us today and get personalised mortgage advice tailored to your needs.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Stamp Duty Has Changed: Here's What You Need to Know

Tue, 01 Apr 2025 13:33:22 GMT

1st April stamp duty changes have come into effect, here's what you need to know:

As of the 1st April, 2025, significant changes to England and Northern Ireland's Stamp Duty Land Tax (SDLT) have come into effect, impacting both first-time buyers and existing homeowners. We've put together a handy breakdown of the updated rates and thresholds below, but if you have any questions or concerns about the changes, please don't hesitate to call our team .

Standard Residential Property Rates

Stamp Duty for First-Time Buyers

Additional Residential Properties

Key SDLT Changes Effective April 1, 2025:

The nil-rate threshold for standard residential purchases has decreased from £250,000 to £125,000, meaning buyers now pay tax on property values exceeding £125,000.

For first-time buyers, the threshold has been reduced from £425,000 to £300,000. Additionally, the maximum property value eligible for first-time buyer relief has reverted to £500,000 from the previous £625,000.

Stamp duty will increase by an additional 5% for second properties such as holiday homes or buy-to-lets.

It's essential for prospective buyers to factor in these changes when budgeting for property purchases. For help calculating your STLD or understanding your affordability, reach out to our friendly team of mortgage advisers - we're always happy to help.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

How we're helping one couple relocate to Cornwall

Mon, 10 Mar 2025 10:38:55 GMT

Relocating? This story from one of our mortgage advisers might interest you.

I’ve recently been working with a lovely young couple who are relocating to Cornwall. They’ve been searching for new jobs and the perfect house for some time, but they were stressed out.

Why? They had spoken to their bank and were told that they couldn’t apply for a mortgage until they had been in their new jobs for 3 months. This didn’t work for them, they couldn’t move until they had a mortgage, but they couldn’t get a mortgage until they had a job in Cornwall. So what now?

Enter Motion Mortgages. The couple quickly calmed down when I explained that I could connect

them with lenders that can use their new employment contracts as evidence of income, before they have even started. Phew!

They have now both found work and they've had an offer accepted on a property, so we submitted their mortgage application this week which is moving along nicely.

The moral of the story? Don’t give up if you’ve been told no. Talk to Motion Mortgages and we’ll do everything we can to help. We look forward to supporting our Cornwall-bound couple throughout the rest of their journey.

Got a question? Reach out to our dedicated team: https://www.motion-mortgages.co.uk/contact

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

£5,000 Deposits for First Time Buyers

Wed, 19 Feb 2025 09:12:41 GMT

Accord Mortgages have released a product that could allow first time buyers to purchase a property with as little as £5,000 deposit.

This is very different offering to most lenders, who would insist that the deposit is at least 5% of the property's value (so still £15,000 for a £300,000 house). Combine this with reducing interest rates, this year could be a great time for those looking to buy their first home .

The £5k deposit mortgage is currently exclusive to Accord Mortgages (part of the Yorkshire Building Society ) and is of course subject to some criteria, so let's dive in and find out if it could be suitable for you.

Who is the £5k deposit mortgage for? The new £5k deposit mortgage is exclusively for first time buyers, to help them get their foot on the property ladder.

Is there a maximum property value? Yes, the maximum property value for homes bought using the £5k deposit mortgage is £500,000.

What type of property could I buy?
The £5k deposit mortgage is available for flats or houses, excluding new build properties.

How much could I borrow? One thing to keep in consideration is that a lower deposit increases your borrowing costs. The amount you can borrow will be subject to lending criteria - the team at Motion Mortgages are here to help work out your borrowing power, so get in touch and we can explore your options.

What type of interest rate would I be on? The £5k deposit mortgage is available on a 5-year fixed interest rate only. A fixed rate has both pros and cons, but it does come with peace of mind of knowing exactly where you stand for your initial mortgage term.

Is the £5k deposit available for a joint mortgage? Absolutely, but at least one of you must qualify as a first time buyer, and neither applicant must currently own a property. You must also both be 70 years old or under at the end of your planned mortgage term.

Think you might be eligible or want to know more?

If you're a first time buyer looking to get on the property ladder this year, why not get in touch with a member of our team to start asking those initial questions? We'd be happy to help.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Market Update 2025: Motion Mortgages

Mon, 03 Feb 2025 13:59:36 GMT

What's the latest from the mortgage market? Here's Dave Howarth with an update:

Now that January's behind us, I thought I'd take a moment to create a video and explain what's been happening in the world of mortgages so far.

So January was a bit of a roller coaster. We saw some initial interest rate reductions, but then the US election created some jitters in the market and lenders briefly increased their fixed rates again.

However, the good news is that with the anticipated Bank of England base rate reduction this Thursday, we're already seeing lenders proactively reduce their fixed rates again. So things are looking a bit more positive on that front.

Beyond interest rates, lenders are making it easier for borrowers in other ways too. Affordability calculations are improving and we're seeing some fantastic opportunities, especially for first time buyers.

Several banks are now able to offer loans of up to 5 1/2, even 6 times the household income, subject to the lending criteria. Of course, this can make a huge difference to what you can borrow.

We're also seeing lenders extend the maximum age limits, with some now lending up to the age of 75, even 80 in some cases. This allows for much longer mortgage terms, which can significantly help reduce your monthly payments.

Another big improvement is how lenders are handling people starting new jobs or with salary increases. Almost all major High Street lenders can now consider new starters or salary increases even up to three months before the new position starts. All we need is a contract of employment to confirm the new structure or the new job.

Continuity of employment is key here, with most lenders still preferring at least three to six months continuous employment.

We can of course help those just starting out, but options might be a bit more limited. So if you're about to start a new job or have recently received a pay rise, get in touch and we can explore all the options for you.

So All in all, 2025 has started with some really positive changes in the mortgage market. Lenders are definitely more willing and able to help customers to get the most up to date information on rates and the lending criteria, or to discuss your specific needs and circumstances.

Please don't hesitate to call our team and we'd be delighted to help find the right mortgage for you.

Best wishes,

Dave

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

The Value of Income Protection

Mon, 16 Dec 2024 08:00:01 GMT

Protect What Matters: The Value of Income Protection

Having a protection policy in place can make a big difference. Knowing that you and your family are protected can provide greater peace of mind. If the worst were to happen, would your family be financially supported?

What is Income Protection Insurance?

This type of insurance provides regular income if you are unable to work due to injury or illness. This is especially useful when you have large financial commitments, such as mortgage payments.

How it works:

Income coverage: The amount of replacement income you receive will depend on your salary. A percentage of your income will usually be paid out, which is based on your monthly salary. This tends to be around 50%-70% but will vary depending on the chosen policy and what the lender is willing to offer.
Deferred period: It is important to note that there is usually a ‘deferred period’ before the policy takes effect. The timing of this period will depend upon the agreed terms of the chosen policy, but it is usually around 1-2 months. If a longer defer period is agreed with the policy provider, then the premiums could be reduced.
Agreed terms: Most policies will have terms that differ from one another. Some are made to cover you for the short term, and others for the long term. Policies may also offer certain benefits up until the age of retirement. If you are unsure or in doubt about choosing a policy, it can be smart to talk to an adviser.

Premiums:

The cost of premiums for these policies can be influenced by a wide range of factors, some of the key ones being the following:

Health record: Your health, past and present, can be a big factor in determining the cost of premiums. Higher premiums are likely to be charged if you’ve had health complications in the past.
Age: Younger people may generally benefit from lower premiums, as they can be perceived by insurers to pose a lower risk.
Occupation: If a job is considered high-risk, then the premiums are likely to be higher. These can include job roles such as construction workers and firefighters, for example.
Lifestyle: Certain lifestyle choices can increase the price of premiums. Being a smoker can be viewed as a high-risk activity, so the premiums are likely to go up.

We're here to help you make an educated decision

With multiple protection policies available, it can be difficult to know what choice to make. We’re here to help you make a decision that fits your circumstances – we’ll listen to your situation and share bespoke advice that can help you make an educated decision to fit your protection needs.

How can I get advice?

Simply book an appointment with us to discuss your requirements, and we’ll be able to work with you to understand your lifestyle, and let you protect what matters.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Get Mortgage Ready: Mortgage Requirements

Tue, 10 Dec 2024 12:17:51 GMT

Get Mortgage Ready: Mortgage Requirements

Mortgages have specific requirements and are complex, with various factors affecting your eligibility. These include your credit score, income, and deposit. Different lenders have different criteria.

How do I know if I can qualify for a mortgage?

You may qualify for a mortgage based on factors like your credit score, income, employment history, debts, loan amount, and down payment size. It's best to contact us to understand the specific requirements and options based on your financial situation .

How much can I take out as a loan?

Lenders will assess the amount you wish to borrow in relation to your income to determine the likelihood of you being able to make your mortgage payments. In addition to this, lenders also consider other factors such as:

Your Salary and Expected Earnings
When determining your eligibility for a mortgage, lenders will assess your income to ensure that you have the capacity to make repayments. Typically, many lenders will only consider lending you up to four to five times your salary, although this may vary among different lenders.
The loan-to-value ratio
The loan-to-value ratio is determined by the size of the deposit put down on the mortgage. Some mortgages can be accessed with a 5% deposit, while others may require a 10% deposit based on the value of the house.
Credit score and Debt history
The lender will check your credit score and debt history to ensure that it's clean and without any issues, such as a poor debt history. A good credit score increases your eligibility for a mortgage.
Irregular spending habits
Lenders will request bank statements to check for irregular spending habits, such as gambling or large loan payments, which could significantly affect your eligibility for accessing mortgage payments.
Current Employment status
One crucial factor lenders look for is income stability. Being a permanent employee increases mortgage eligibility.

What additional fees should I be aware of when purchasing a house?

When purchasing a house, there are additional costs to consider aside from the mortgage. These extra fees should be taken into account when budgeting for your mortgage.

Your initial deposit
When purchasing a home, you will be required to make an initial deposit, which will then determine the loan-to-value ratio as previously discussed.
Stamp duty land tax
Stamp Duty Land Tax (SDLT) is a tax that when you buy land or a house over a certain threshold. The amount of tax that you need to pay is dependent on the cost of the property. To find out what the current rates are and how they could affect you go to https://www.gov.uk/stamp-duty-land-tax .
Valuation fee
The valuation fee is charged by the lender to send someone from a firm to assess whether the house is worth the mortgage.
Surveyors fee
The surveyor's fee covers the cost of a professional surveyor inspecting the condition of a house and identifying any necessary repairs, as well as providing an estimate of the potential repair costs. The fee typically ranges from £400 to £1,500 , depending on the extent of the survey and the value of the property.
Electronic transfer fee
This is the fee for having your mortgage transferred electronically, usually ranging from £25-£50 .
Removal fees
The cost of removal fees varies depending on the amount to be moved and the distance. Removal costs can vary from between £400 for a one-bedroom flat to over £1,000 for a 4-bedroom house.

How am I able to find the most suitable mortgage deal?

The way you can find the most suitable mortgage is to speak to us. We can have access to the wide range of products from High Street Lenders and specialist products not available direct with many different lenders. Contact us today and see how we can help you through your journey.

We’re here to help you:

We understand that the mortgage market can feel overwhelming. We’re here to help simplify the process and offer guidance every step of the way. Our expert team provides personalised advice tailored specifically to your financial situation, long-term goals, and individual needs.

Reach out to us today to discover how we can assist you in finding the right mortgage solution. Schedule a no-obligation consultation and let us help you navigate the complexities of the mortgage market with confidence. We’re committed to guiding you through this important journey with clarity and care.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Understanding Mortgages

Fri, 29 Nov 2024 11:15:01 GMT

Get Mortgage Ready: Understanding Mortgages

Are you looking to get yourself onto the property ladder? Feeling overwhelmed by all of the options that are available to you? Don’t worry here is a guide to guide you along the basics to starting to look into getting a mortgage.

What is a mortgage?

A mortgage is a loan from a lender, who are the people that supply the money, that you will then use to buy a house and then repay the lender in monthly instalments, including interest.

How does a mortgage deposit work?

A mortgage deposit is the initial payment made by the buyer when purchasing a house. The larger the deposit, the less money you will need to borrow through a mortgage, and the better mortgage rates you will be offered.

The deposit amount is usually a percentage of the property value. For instance, if you are buying a house for £300,000 and your deposit is 10%, you would need to put down a £30,000 deposit. The remaining £270,000 will be provided by the lender.

This is referred to as the Loan-to-Value ratio, which measures the percentage of the property price that needs to be financed through a loan to complete the purchase.

What types of mortgages are there?

As a first-time buyer, navigating the various types of mortgages offered by lenders can be overwhelming. To ease the process, here's a quick guide outlining the different options available and their benefits.

Fixed Rate Mortgage

A fixed-rate mortgage means that the interest rate on your mortgage payments remains the same for a set period, usually between two to fifteen years. Typically, first-time buyers are offered either a two-year or five-year fixed-rate mortgage.

One advantage of a fixed-rate mortgage is the financial stability it provides, allowing buyers to plan their budget around consistent mortgage payments without worrying about fluctuating interest fees.

However, this stability comes at the expense of flexibility, as it may discourage homeowners from switching to a different mortgage plan such as a variable rate.

Variable Rate Mortgage

A variable rate mortgage is different from a fixed rate mortgage in that your payments can vary each time due to the rate set by the lender. Unlike a variable rate tracker mortgage, these rates are not tied to the Bank of England base rate. This type of mortgage offers the benefit of paying less if the lender's rates decrease, but there is also the risk of paying more if the lender increases the interest rates.

Variable Rate Tracker Mortgages

A variable rate tracker mortgage is similar to a variable rate mortgage, but instead of the lender setting the interest rate, it is set by the Bank of England. This means that the rate will vary depending on the Bank of England's set rate.

While these mortgages are often more suitable compared to a standard variable rate mortgage, they still have a variable element attached to them. This means that your monthly payments could easily increase, making budgeting more challenging each month.

How am I able to find the most suitable mortgage?

We’re here to help you:

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Self-Employed Mortgage Starter Guide

Tue, 26 Nov 2024 10:52:21 GMT

Homes for Self-Starters: Self-employed Mortgage Starter Guide

Are you considering getting a mortgage as a self-employed individual? Mortgages for self-employed people are very common but can be seen as daunting. Here is a quick starter guide for people who are self-employed looking to get mortgages.

What counts as self-employed?

When getting a mortgage, it could be tricky to see if you are classed as self-employed. By lenders, someone who is self-employed is seen as someone who owns more than 20%-25% of a business which would be the main income. When applying for a mortgage being someone self-employed means that you will fall into one of these three categories.

Sole trader -This is someone who owns a business and retains all profits
Partnership-This is someone who owns a business but shares the profit with one or more people
A limited company is a separate company that keeps your own money away from your business

Being self-employed, how much can I borrow?

When you're self-employed, getting a mortgage isn't much different than for those with a regular job. Typically, lenders will provide a mortgage for up to 4.5 times your annual salary, although this can vary based on your income and the size of your deposit . Just like with any other type of mortgage, it's wise to save up for a deposit since a larger deposit can lead to lower interest rates.

Because I'm self-employed, do I need to pay a higher mortgage rate?

When you're self-employed, your mortgage rate isn't affected. As long as you can provide the same information as someone in a full-time job, you can access the same mortgage rates. This means your deposit amount and credit rating are the primary factors in determining your mortgage rate. However, if a traditional bank doesn't approve your application, you may need to explore specialist lenders who might offer higher rates for self-employed individuals.

Is there any way to try and boost my chances of getting a mortgage when I am self-employed?

There are a few ways that you would be able to boost your chances of getting a mortgage when being self-employed. Some examples of these are:

Be on the electoral roll
Any mistakes on your credit report to be fixed
Save up to make it so you have a bigger deposit
Complete an SA302 form – This can provide lenders with proof of your earnings
Make sure to keep a high credit rating.
Book an appointment with us .

Booking an appointment with us means that we can help you and make sure that you can get the most suitable mortgage possible whilst being a self-starter.

What is a credit rating and how does it work?

Credit rating is a rating created by the banks which is where they will check your credit report, and this will see how you have managed your debt and bills in the past. This is only on a credit card, not a debit card. An example would be that if you had many late payments, it would harm your credit rating but if you regularly make payments on time, you will have a higher credit score. A high credit score can show lenders that you are reliable and more likely to return money in comparison to someone with a low credit score. This is vital if you are self-employed as this could be the main piece of information used if you are a lender.

How am I able to find a suitable mortgage?

To find the most suitable mortgage, simply schedule an appointment with one of our representatives. We provide personalised care and ensure that you secure the most suitable mortgage for your needs.

We’re here to help you:

As a self-starter, you’re used to taking charge and making things happen—but even the most driven individuals can find the mortgage market overwhelming. That’s where we come in. We’re here to empower you with the knowledge and support needed to make informed, confident decisions. Our expert team offers personalised advice tailored specifically to your financial goals, ensuring that you stay in control while benefiting from our industry insights and guidance.

Contact us today to learn more and schedule a no-obligation consultation. We're here to support you through every step of the process, giving you the tools to succeed in your mortgage journey with confidence and clarity.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.

References:

MoneySuperMarket(2024) Compare self-employed mortgages and find the best rate Available at: https://www.moneysupermarket.com/mortgages/self-employed/ (Accessed on 18 October 2024)

What Does 'Loan To Value' Mean In A Mortgage Scenario?

Fri, 22 Nov 2024 23:35:17 GMT

We discuss what the term 'Loan to Value' (LTV) means and what part it plays in a mortgage application:

If you have any questions or would like to discuss your requirements with one of our mortgage experts, get in touch:

Is a Remortgage Right for You?

Mon, 04 Nov 2024 11:00:05 GMT

Is a Remortgage Right for You?

Everyone’s circumstances are different, so whilst remortgages and product transfers can bring certain benefits, there are important considerations to be made too, and this is why it’s important to seek professional advice before taking action.

These are an example of some of the key considerations that must be factored in from the outset:

Early repayment charge

When tied to a fixed rate mortgage deal, remortgaging before the fixed period has ended can result in an early repayment charge. The rate of this charge will be dependent on a variety of factors, and it’s recommended to speak to an adviser on what the impact could be for your specific deal.

Change of circumstances

Your financial circumstances may not be the same as when the mortgage was originally obtained. It could be that lifestyle changes, such as becoming self-employed or having a lower income, result in the lender criteria no longer being met.

Your equity has shrunk

In some cases where the value of your property has fallen since purchase, then this can cause challenges. For example, you had a 10% deposit when buying your home, borrowing the remaining 90%, if the overall value has fallen, then the amount you owe is a bigger proportion of the overall property value.

Credit history

Since taking out your first mortgage, if your credit score has worsened, with any missed credit card, mortgage or utility payments, or loan defaults, then it may be more difficult to remortgage. However, an adviser may still be able to find you suitable deals, even if your credit history isn’t the best.

Mortgage size

If you have a large mortgage, a remortgage or product transfer can be a suitable choice. However, for smaller mortgages, it may not be as worthwhile. Once your loan falls below a certain amount, it may not be economic to switch lenders, simply as you are less likely to make a saving if the fees are high. The smaller the mortgage you have, the larger the effect of any fees you pay to remortgage is, especially given that most new mortgage deals have a four-figure arrangement fee attached.

When planning for a financial commitment as important as your mortgage, it’s important to consider all the potential benefits and drawbacks of remortgaging. Speaking with an adviser can be a great way to ensure a wide range of mortgage products have been explored.

Need some help making the right decision?

It can be tricky to navigate the mortgage landscape with so many options for the future of your home. Seeking professional advice can make you feel rest assured that a wide range of options have been considered. Having an adviser investigate and understand your specific circumstances can mean a greater scope of product options are considered. Advisers also have access to exclusive lender products and deals that aren’t usually accessible to the public.

How can I get advice?

We’re here to help you through your remortgage or product transfer journey. We’ll take the time to listen to your individual circumstances and look extensively to find the right deal for you. Contact us today to see how we can assist you.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Useful Information for First-Time Buyers

Thu, 24 Oct 2024 09:53:52 GMT

Get Mortgage Ready: Useful Information for First-Time Buyers

As a first-time buyer, the process can seem overwhelming. Our goal is to make it feel more manageable and support you every step of the way. Here is a helpful guide with ideas and tips that could benefit first-time buyers.

First homes scheme

The Government has introduced the First Homes Scheme to help people get onto the property ladder. Through this scheme, individuals can purchase a house for 30% to 50% less than its market value. Properties included in this scheme can be viewed through developers or estate agents. Every home that is sold is evaluated by an independent surveyor to ensure that the discount is based on the actual market value.

Before applying, it's important to check with your local council as some may have specific eligibility criteria. Some councils have been known to provide discounts to key workers, current area residents, or those with lower incomes. According to the scheme, a newly built first home cannot exceed £250,000 in value after the discount has been applied, although the local council may establish a lower maximum price. After purchasing a property, you are free to decorate or modify it, but if you intend to rent or sell the property, it's crucial to adhere to the rules of the First Home Scheme.

How can I access this scheme?

There are several ways to access this scheme. One option is to consult with a developer or an estate agent, who can help determine your eligibility and provide information on the requirements. They can offer insights into the properties available under the scheme and guide you through the initial steps.

Alternatively, you can reach out directly to us and schedule an appointment. During this appointment, we will walk you through the entire process, from assessing your eligibility to completing the necessary paperwork. Our experienced team is dedicated to providing personalised guidance, ensuring that the process is as seamless and stress-free as possible. We are here to assist you every step of the way.

Skipton track record mortgage

When applying for a mortgage, lenders typically assess factors like credit score and bank statements to determine eligibility. However, Skipton's track record mortgage takes a different approach by focusing on the applicant's history of paying rent. This fixed-rate mortgage spans 5 years, ensuring that the interest rate remains constant throughout this period 2. While a deposit of less than 5% is accepted, it is not mandatory. Additionally, there are no completion fees associated with this mortgage. The main requirement is that all rent must have been paid for 12 consecutive months within the last 18 months. Proof of household bill payments may be required.

How am I able to access this mortgage?

A way to access this mortgage is that you are able to contact us and schedule an appointment, during which we will provide tailored advice based on your unique financial situation. Our team will walk you through the available options, offering a wide range of mortgage products to choose from.

95% Loan to Value Mortgage

How many times have you heard, "You need to stop paying for Netflix and buying expensive coffees, and one day you may have a mortgage"? This advice isn't helpful because one of the most daunting aspects of a mortgage is the initial deposit, which is typically 10% of the value of the house. Recognizing this, some lenders have introduced a new 95% mortgage requiring only a 5% deposit.

This can help people who are unable to put down a large deposit for various reasons. For example, on a £200,000 house, you would only need to pay a 5% deposit, which amounts to £10,000. This can be beneficial because it means you can own your property sooner compared to saving up for a larger deposit. Additionally, a fixed-rate mortgage can make budgeting easier by providing a clear understanding of the monthly payments.

Is a 95% Mortgage right for me?

A 95% mortgage has the benefit of allowing you to own your property sooner compared to saving up for a larger deposit. Additionally, a fixed-rate mortgage can make budgeting easier by providing a predictable monthly payment. By entering the market quicker, you can build equity in your house and potentially take advantage of rising house prices by remortgaging for a better-suited mortgage with a different interest rate.

However, a downside of a 95% mortgage is that you may only qualify for a smaller loan due to the higher risk involved. The interest rates on a 95% mortgage would be higher, meaning it may not be the most cost-efficient option. Additionally, you might have to pay extra fees, such as the high lending charge, which protects the lender if you're unable to meet the mortgage.

How am I able to find the most suitable mortgage?

We’re here to help you:

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Sources

Government (2024) First Homes scheme: first-time buyer's guide. Available at https://www.gov.uk/first-homes-scheme (Accessed: 29 August 2024)
Skipton Building Society (2023) Track Record Mortgage . Available at https://www.skipton.co.uk/mortgages/track-record-mortgage (Accessed: 30 August 2024)
Government (2024) First Homes scheme: first-time buyer's guide. Available at https://www.gov.uk/first-homes-scheme/how-the-scheme-works (Accessed: 29 August 2024)

Understanding Remortgaging and Product Transfers

Fri, 04 Oct 2024 07:48:01 GMT

Understanding Remortgaging and Product Transfers

In such a frequently changing market, it’s important to choose the right path for your home ownership journey. More favourable mortgage deals may become available as time goes on, so reviewing your options can be a smart choice. Remortgaging and product transfer are great ways to access alternative deals.

What is remortgaging?

Remortgaging is the process of moving from your existing mortgage deal to another with a new lender but for the same property. Switching to a different lender may be a more suitable option in some cases, as a better deal may be available that isn’t with your existing lender. Remortgaging may seem like the most suitable option at first glance, however, it’s important to consider other products to ensure you are getting the best possible deal.

What is a product transfer?

A product transfer is when you stay with the existing lender of your mortgage deal. This means that there isn’t a need to change lenders, making the process generally faster and simpler. Like remortgaging, this may be done to secure better rates or if your current mortgage is coming to an end. Seeking professional advice through the help of a mortgage adviser can be a great way to explore all your options.

Do I need a product transfer or remortgage?

Your mortgage is likely to be one of your most important financial commitments, so making the right decision is vital. Before deciding to remortgage or product transfer, you should be aware of the reasons for choosing either option:

Remortgaging and Product Transfer:

Your existing mortgage deal is coming to an end: By choosing to remortgage or a product transfer, you could avoid being put on your lender’s standard variable rate (SVR) when your current deal ends. The SVR rate is usually a lot higher than other deals, so finding another deal in advance can be a good idea. It is here that we can help advise in finding a suitable deal for you, before you are moved to the SVR rate.
More favourable rates may be available: Mortgage deals change over time, meaning one with a lower interest rate may become available. Choosing to product transfer or remortgage can be a viable way to benefit from these better rates.
Changing your mortgage payment type: Both Remortgaging and product transfer can allow for a different payment deal to be switched to. For example, changing from an interest only deal to a repayment mortgage deal.
Lifestyle changes: Life changes, and so do financial priorities. Switching to a more suitable deal to meet your changing needs is achievable through both remortgaging & product transfer.
Additional funding when needed: Remortgaging could enable you to raise money for a wide variety of purposes, including home improvements, to pay off debt and to help loved ones.

Product transfers share similarities to remortgaging, but differ slightly:

Maintaining lender relationship: Since product transfers use the same lender to switch to a new deal, the existing relationship with the lender shouldn’t change.
Less hassle and greater convenience: Remaining with the same lender will mean that the change over to a new product should in theory be simpler. The need to provide initial documentation can be avoided as a result.
Avoidance of early repayment charges: Remortgaging can incur early repayment charges. Choosing the product transfer route can avoid these early repayment charges.

Need some help making the right decision?

It can be tricky to navigate the mortgage landscape with so many options for the future of your home. Seeking professional advice can make you feel rest assured that a wide range of options have been considered. Having an adviser investigate and understand your specific circumstances can mean a greater scope of products are considered. Advisers also have access to exclusive lender products and deals that aren’t usually accessible to the public.

How can I get advice?

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

We're Recruiting - Latest Vacancies | Motion Mortgages

Mon, 30 Sep 2024 07:53:24 GMT

Join Us!

We're excited to announce that we are now recruiting for 4 positions within the Motion Mortgages & Protection team, based at our office in Crowthorne, Berkshire. The positions we are now actively recruiting for are:

Existing Client Mortgage Advisor
New Business Mortgage Advisor
Mortgage Case Handler
Mortgage Protection Advisor

Protect What Matters: The Value of Life Insurance

Tue, 10 Sep 2024 07:48:02 GMT

Protect What Matters: The Value of Life Insurance

Life insurance policies

A life insurance policy provides financial protection for your loved ones in the event of your passing. The policy pays out a lump sum that can help cover expenses like your mortgage or everyday bills. Understanding the different policies available to you, and what they cover, is an important factor before taking out any policy.

Here are some of the policies you could choose from:

Whole life assurance

Also known as ‘Whole of life cover’, this policy is typically designed to provide lifelong protection. This policy may be worth considering in many circumstances, especially after major life events, such as buying a property or starting a family. The policy would generally pay out in the event of your death, with proceeds being passed directly to your beneficiaries. If there are people who rely on you as the primary breadwinner of the household, this is a policy worth considering.

It should be noted that the premiums associated with this policy may tend to be higher compared to other policies, such as term life insurance.

Term life insurance

This type of policy is limited to a specific period of time. Depending on the agreed policy, the duration of the policy could keep you covered for 10 or 20 years for example. This policy will pay out if you pass away during the period the policy is valid. It is a cost-effective way to benefit from coverage when you need it most.

Within Term life insurance, there are further sub-types to choose from:

Decreasing term life insurance – where the amount of cover decreases over time – but often has cheaper monthly premiums.
Level term life insurance – where the amount of cover remains the same for the life of the policy – but can be more expensive than decreasing term life insurance.
Increasing term life insurance – both the cover level and the premiums may increase during the term of the policy – taking account of inflation or through a series of increases over time.

It can be challenging working out the pros and cons of each type, and this is where professional protection advice can really help you find the type of policy that fits your specific needs and financial goals.

Premiums

The cost of premiums for these policies can be influenced by a wide range of factors, some of the key ones being the following:

Health record: Your health, past and present, can be a big factor in determining the cost of premiums. Higher premiums are likely to be charged if you’ve had health complications in the past.
Age: Younger people may generally benefit from lower premiums, as they can be perceived by insurers to pose a lower risk.
Occupation: If a job is considered high-risk, then the premiums are likely to be higher. These can include job roles such as construction workers and firefighters, for example.
Lifestyle: Certain lifestyle choices can increase the price of premiums. Being a smoker can be viewed as a high-risk activity, so the premiums are likely to go up.

We’re here to help you make an educated decision

It’s also worth bearing in mind that all life insurance policies should be placed in a trust, to help provide additional control over how the proceeds are distributed after the policyholder has passed away.

With multiple protection policies available and different decisions available, it can be difficult to know what choice to make. We’re here to help you make a decision that fits your circumstances – we’ll listen to your situation and share bespoke advice that can help you make an educated decision to fit your protection needs.

How can I get advice?

Simply book an appointment with us to discuss your requirements, and we’ll be able to work with you to understand your lifestyle, and let you protect what matters.

motion-mortgages

UK Mortgage Rates Dip Below 5% for First Time Since 2022

Two-Year Mortgage Rates Drop Below 5%: A Key Opportunity for Borrowers

What's happening? Let's break it down

Why it matters to you

What you should do now

Need help weighing your options?

Buy Your Home with £0 Deposit

April Mortgages announce 0% deposit mortgage

Halifax Releases New Affordability Calculations

What do Halifax's new affordability calculations mean for you?

What Should a First-Time Buyer Ask a Mortgage Adviser?

If you're a first-time buyer looking for mortgage advice, here are some key questions you can ask to help kick-start your journey. ﻿

1. How much can I borrow?

2. What type of mortgage is best for me?

3. What deposit do I need?

4. What government schemes are available?

5. What fees and costs should I expect?

6. How can I improve my mortgage eligibility?

7. Should I use a mortgage broker or go direct to lender?

8. What happens after my mortgage is approved?

Stamp Duty Has Changed: Here's What You Need to Know

1st April stamp duty changes have come into effect, here's what you need to know:

Standard Residential Property Rates

Stamp Duty for First-Time Buyers

Additional Residential Properties

Key SDLT Changes Effective April 1, 2025:

How we're helping one couple relocate to Cornwall

Relocating? This story from one of our mortgage advisers might interest you.

£5,000 Deposits for First Time Buyers

Accord Mortgages have released a product that could allow first time buyers to purchase a property with as little as £5,000 deposit.

Think you might be eligible or want to know more?

Market Update 2025: Motion Mortgages

What's the latest from the mortgage market? Here's Dave Howarth with an update:

The Value of Income Protection

Protect What Matters: The Value of Income Protection

What is Income Protection Insurance? ﻿

How it works:

Premiums:

We're here to help you make an educated decision

How can I get advice?

Get Mortgage Ready: Mortgage Requirements

Get Mortgage Ready: Mortgage Requirements

How do I know if I can qualify for a mortgage?

How much can I take out as a loan?

What additional fees should I be aware of when purchasing a house?

How am I able to find the most suitable mortgage deal?

We’re here to help you:

Understanding Mortgages

Get Mortgage Ready: Understanding Mortgages ﻿

What is a mortgage?

How does a mortgage deposit work?

What types of mortgages are there?

Fixed Rate Mortgage

Variable Rate Mortgage

Variable Rate Tracker Mortgages

How am I able to find the most suitable mortgage?

We’re here to help you:

Self-Employed Mortgage Starter Guide

Homes for Self-Starters: Self-employed Mortgage Starter Guide

What counts as self-employed?

Being self-employed, how much can I borrow?

Because I'm self-employed, do I need to pay a higher mortgage rate?

Is there any way to try and boost my chances of getting a mortgage when I am self-employed?

What is a credit rating and how does it work?

How am I able to find a suitable mortgage?

We’re here to help you:

What Does 'Loan To Value' Mean In A Mortgage Scenario?

We discuss what the term 'Loan to Value' (LTV) means and what part it plays in a mortgage application:

Is a Remortgage Right for You?

Is a Remortgage Right for You?

Early repayment charge

Change of circumstances

Your equity has shrunk

Credit history

Mortgage size

Need some help making the right decision?

How can I get advice?

﻿

Useful Information for First-Time Buyers

If you're a first-time buyer looking for mortgage advice, here are some key questions you can ask to help kick-start your journey.

What is Income Protection Insurance?

Get Mortgage Ready: Understanding Mortgages