LTV, APR, DTI... it's enough to make your head spin. Let us break it down for you. Dig into our content to learn more about house hunting, first-time buyer mortgages, interest rates and so much more.
What’s the difference between a buy-to-let mortgage vs residential mortgage? It’s a good question. The two are similar in some respects, but you can’t buy an investment property with a residential mortgage or a home to live in with a buy-to-let mortgage. In this guide, we've outlined the key differences between these mortgage types.
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As if buying a house wasn’t expensive enough, you will also have to pay tax on your property purchase. This is known as Stamp Duty Land Tax (SDLT) and in some cases, it could set you back thousands of pounds. While you might not be able to avoid stamp duty completely, there may be ways to reduce the amount of tax you pay - keep reading to find out ways to reduce your stamp duty liability.
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Inheritance tax is part of a system that aims to redistribute wealth and finance public spending along with other taxes such as Income Tax, Corporation Tax and VAT. Inheritance tax is paid on a person's estate when they die. With significant increases in the value of property and investments in recent years the amount of inheritance tax being paid has increased. Three quarters of property wealth in the UK is in the hands of over 55s. This in turn means that many younger people are set to inherit substantial sums over the next few decades. So it’s understandable that many families want to reduce the amount that will go to HMRC and increase what their loved ones will receive in inheritance. With the help of some careful tax planning, financial advice, and generous gift giving, you can make the most of your money and protect those you care about. Keep reading to find out more.
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You’re almost ready to buy a home, but you’re not sure which one to get. Buying a fixer upper, smashing walls down with a sledgehammer and designing your dream kitchen looks so much fun. But you also like the idea of moving into a new build and not having to lift a finger. So, which one should you choose? If you’re struggling to decide between a new build and an existing home, join us as we explore the pros and cons of each.
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If you’re buying a home, planning your retirement, or looking for the right insurance to protect your family, a financial planner can help you make the right decision. But how do you choose a financial advisor and how much do they cost?
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Are you hoping to make some big changes to your home this year? Whether you’d like a new kitchen, loft conversion or two-storey extension, your biggest concern will probably involve funding. Big home renovations can often set you back thousands. If you don’t have the cash in the bank already, you might be wondering whether to use a second charge mortgage. Second mortgages are a popular option for homeowners looking to invest in their properties and for first time buyers looking to boost their deposit without family support. But how do second charge mortgages work? And are they worth it?
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Everyone seems to be talking about inflation right now, whether you’re scrolling through TikTok or chatting to the barman in your local pub. It can be hard to avoid it. It’s most visible in our bank accounts and wallets, the cost of filling up our cars or heating our homes, or the weekly trip to the big Tesco. But what does inflation rate actually mean and how does inflation affect mortgage rates? Let’s explore how it works and what you can do to reduce the cost of your mortgage.
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Are you and your friends struggling to buy your own homes thanks to rising property prices and the cost of living crisis? It can be really hard to get on the property ladder these days, especially since many lenders will only offer mortgages of up to 4 to 4.5 times an applicant’s income with a standard mortgage. In some parts of the UK, a mortgage of this size might be enough, but very often even one-bed apartments can be out of budget for many first-time buyers, who are finding themselves priced out of their chosen area. If this all sounds far too familiar, we might have a solution. If you get along well with your friends, siblings or parents and you’re all on a mission to buy your first home, you could use a ‘tenants in common’ agreement to get on the property ladder together. Or, if you’re in a relationship, but let’s say you have a larger deposit and you want that to be reflected when you eventually sell the home, this could be for you too. Let us explain…
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This blog post was written by the property experts at Nokkel. The Nokkel app connects home buyers with home owners including off-the-market properties, making buying, owning and selling property easier, fairer and more transparent.
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There are various reasons why you might be looking to remortgage your home. If you’re coming off a low fixed rate mortgage, you might want to remortgage onto a new fixed rate deal. Maybe you want to protect yourself from rising interest rates. Or you could want to release equity from your home to fund a renovation, studying, traveling or maybe to help a loved one get on the ladder themselves. Whatever your reasons for remortgaging, you might be finding it hard to remortgage, or even that you can’t afford to remortgage. If this is the case, don’t worry. It’s a common problem but thankfully, there are ways around it. Here’s what to do if you’re struggling to remortgage.
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When a lender offers you a mortgage, their offer letter will include an expiry date. The expiry date will vary depending on the mortgage lender, but it can last anywhere between 3 months to 6 months from the date the offer was issued. If you don’t buy a property before this date, you’ll need to request a mortgage offer extension. So how can you get a mortgage offer extension? And what should you do if things don’t go to plan?
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It’s very easy to get into debt. You might take out a credit card for rewards and cashback, only to spend more than you intended. Or you’ve taken out a personal loan to cover an emergency expense, only to lose your job. Maybe you’ve struggled to keep on top of your car payments with the cost of living on the rise. It could be something as simple as thinking you’ve cancelled a phone contract, only to find out you have an outstanding balance which you’ve not paid on time. Many people develop adverse credit, sometimes without even realising it. When used responsibly, debt can allow you to buy your dream home, start a business and even build wealth. But if you miss a payment, borrow more than you can afford or your financial circumstances change, you can end up with bad credit tied to your name. If you’ve struggled with debt in the past or you still have outstanding debt now, you might be worried about how this’ll affect your ability to get a mortgage. Can you get a mortgage for adverse credit? Is it possible to remortgage with a low credit score? Don’t worry, we’ll answer all your pressing questions in this guide. First thing’s first, what does adverse credit mean?
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With property prices rising so steeply and young people getting priced out of the market, for many first time buyers taking out mortgages with friends and family members could be a viable option to getting on the ladder. When two or more people buy a property together, there are two main ways the property can be held. The first option is for you and the other buyer(s) to be classed as joint tenants. The second option is known as tenants in common. Generation Home has introduced a new product known as Dynamic Ownership. It’s effectively a spin-off of tenants in common, but it’s designed for today’s generation of first time buyers who are struggling to buy in an expensive market. If your income or deposit is restricting your ability to get on the ladder, Dynamic Ownership could be the solution. So how does Dynamic Ownership work? We’ll answer your questions below.
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A lot of people dream of having their own place. Whether you want to live solo but can’t afford to rent by yourself or simply want to get your foot on the property ladder - there are lots of reasons why you might want to buy a house on your own. But is it possible? Find out how you can buy a home by yourself, and the ways you can boost what you can afford in our guide.
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Buying a house as a single person can be ridiculously expensive. Not only do you have to save a deposit by yourself, you’ll also need to pay for solicitors, valuations, moving costs and in some cases, stamp duty. With house prices rising so quickly and the overall cost of living going up, you might be thinking of buying a house with siblings or friends instead. If this is you, here’s what you need to know:
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Getting a mortgage is sometimes way harder than it needs to be. Not only do mortgage lenders want you to have a good salary and excellent credit rating, they also expect you to have a house deposit. But for many first time buyers, saving up for a house deposit is impossible while renting. Thankfully, there are plenty of ways to get a mortgage with a low house deposit, or even no deposit. You just need to know where to look.
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If you’ve used a mortgage calculator, you might be surprised by how much you can borrow for a mortgage. Even with a good job, perfect credit score and a decent house deposit, many first time buyers find it hard to borrow enough for the home they want. This is because house price growth has outpaced earnings, with the average house in the UK back in March 2021 costing 65 times more than in January 1970, while wages are only 36 times higher. Today, you can expect to spend 9.1 times your annual salary just to get a home. But most lenders will typically let you borrow just 4-4.5 times your salary, which leaves many first time home buyers short. If this sounds familiar to you, you might be wondering how you can get a bigger mortgage? Well, you’ve come to the right place.
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You and your partner are finally ready to buy a home together but there’s just one problem…you’re a first-time buyer and they already own their home. This might seem like a complicated and awkward scenario, but it happens more often than you think. If you’re buying with a homeowner, here’s what you need to know and how it affects your house purchase.
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Over the past few decades, the cost of homes has outpaced the average rise in earnings. In March 2021, the average cost of a home cost 65 times more than the average UK home in January 1970, while wages are only 35.8 times higher now. This has left many renters wondering if they’ll ever be able to buy their own home. But some are predicting that the economic uncertainty forecasted for the year ahead could result in house prices dropping. If this happens, first time home buyers might find it that little bit easier to get onto the ladder in 2023. So is now a good time to buy a house? Or should you wait until the market’s a little less volatile? If you’re wondering what to do, we’re here to help.
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If you’re struggling to buy your first home due to a small deposit, modest salary or ridiculously high property prices in your area, you might be wondering whether to take out an equity loan or shared ownership mortgage. So which is best, shared ownership or an equity loan? Let’s explore how these two options work and whether there are any alternatives.
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Buying a home with a small deposit can often be a challenge, due to rising house prices and strict affordability criteria. Not only do banks often limit the amount a buyer can borrow to 4 to 5 times their income, they’re often reluctant to offer large loan to value (LTV) mortgages. This is particularly true for first-time buyers on a modest income or those buying a new build. A number of schemes have been introduced over the years to try and tackle the problem, such as Help to Buy and shared ownership. What is the difference between shared ownership and Help to Buy? And if the two were to have a fight, who would win? Which should you choose?
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If you’ve been saving a house deposit, you’ll know only too well how expensive houses are. In fact, in our 2021 First Time Buyer’s report, we found that the cost of an average house in the UK is 65 times higher than in 1970, while earnings have only gone up 35 times. This affordability gap is making it harder and harder for first time buyers to get on the ladder in comparison to previous generations. But are house prices still rising? If inflation continues to rise, what happens to house prices? And why do house prices rise when so many people are struggling financially? We’ll answer your biggest questions below.
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Are your housemates driving you crazy? Do you lose entire evenings watching home transformation videos on TikTok? Do you dream of having your own space? If this is you, you might have started thinking about owning a home of your own some day in the future, but how do you get there? How long does it take to save for a house? And what’s the best way to save for a house? Look no further because we’ve answered your top questions below.
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2022 was another year of unpredictability. We experienced an energy crisis, cost of living crisis, rising inflation and three different prime ministers. After an uncertain year, it’s hoped that Rishi Sunak can help the UK avoid a lengthy recession and steer us towards economic stability in 2023. But what are his plans for housing? What does his Conservative manifesto say about first time buyers? And is government housing policy enough to help those who need it the most? Let’s take a look at what Rishi Sunak’s housing policies could mean for you.
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There’s something about buying a house that we Brits are obsessed with. But do you need to buy a house? And is owning a house worth it in the UK? We’ll answer your most pressing questions below.
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When it comes to getting your first home, one of the biggest barriers to homeownership is often being able to borrow enough to afford the size or type of property you want. There are two factors which reduce a lot of first time buyer’s mortgage affordability; their house deposit size and their salary. This is because earnings, which impacts both how much you can save each month and how much lenders will consider offering to you, have not kept pace with house prices over the decades. Luckily at Tembo, we’re in the business of helping you boost your borrowing potential.
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If you’re thinking of buying your own place, you may be wondering where to start. How much do you need for a deposit? How can you boost your affordability? And how do you get a mortgage? If you’ve been furiously Googling one mortgage question after another, you’ve come to the right place. With the help of our mortgage tips for first time buyers, you can save yourself time, stress and money.
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After more than a decade of low interest rates, the cost of having a mortgage is on the rise. The Bank of England’s base rate, which sets the benchmark for interest rates across the UK, has increased nine times over 2022. In December 2021 it stood at just 0.1%, compared to 3.5% a year later. It’s now at a level not seen since 2008. If you’re a first time buyer, all this uncertainty in the market might leave you wondering whether to fix your mortgage and how long to fix it for. To make your decision that little bit easier, we’ve weighed up the pros and cons of fixing your mortgage interest rate and explored the alternatives.
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What are mortgage interest rates, what is a good rate and how do you get the best deal? And which is better, variable or fixed rate mortgages? In this guide, we’ll walk you through all you need to know about mortgage interest rates, to help you work out what is the best option for you.
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If you’re a first-time buyer, opening a Lifetime ISA could help you reach your savings goals faster. You can save up to £4,000 a year in it and the government will top it up by 25% — that’s a bonus of up to £1,000 a year.
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Applying for a mortgage and getting rejected can be really disheartening, especially if you’ve been saving for a long time or you've found a property you want to buy. Whatever you do, don’t give up. Getting rejected once (or even twice) doesn’t mean you won’t get a mortgage in future. It’s also not uncommon - 4 in 10 young people have had a mortgage application declined in the past.
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If you’re saving for your first home, having a Lifetime ISA or Help to Buy ISA can make things that bit easier. In this article, we’ll take you through the main difference between the two accounts, and why you might select one over the other.
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If you’re saving for a house deposit, a Lifetime ISA could help you buy your first home faster. But is a Lifetime ISA right for everyone and are there any alternative ways to get on the ladder? Here’s everything you need to know about Lifetime ISAs to help you make your decision.
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Whilst deposits sound pretty straightforward, there is often more to them than meets the eye. Read our guide to deposits.
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How do you buy someone out of a property? Read our guide to learn the steps to buying someone out of a property.
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Shared ownership is a government scheme designed to help first-time buyers or people who have previously owned a home but can no longer afford to buy.
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There are many different ways to buy a home if you need to increase your budget. Read our guide to the alternative ways you can buy a home.
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Shared ownership has become a popular choice for those looking to get on the ladder, faster. Read our guide to shared ownership to learn more about the scheme.
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A joint borrower sole proprietor mortgage is a way to increase the amount you can borrow by adding a friend or family member's income to your mortgage application.
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Affordability is being able to comfortably repay your mortgage each month. Read our guide to how affordability works.
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Learn about how the Help to Buy scheme works.
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Confused about remortgages? We're here to tell you all about why you'd want one, when is the best time to take one out, how you do it and when you should avoid it.
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Read our guide to the top Instagram accounts for financial advice.
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Read the results of our impact and customer insights report for the first half of 2021.
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When you’re saving to buy a house, your deposit can seem the only financial obstacle standing between you and your dream home. But once you’ve got 5%, 10% or 20% of the property price tucked away in a savings account or Lifetime ISA, it’s time to start thinking about fees and taxes too.
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You can remortgage for lots of different reasons. Read our guide on how to remortgage and how remortgaging works.
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Are mortgage lenders tightening their affordability criteria? What does this mean for first-time buyers? How to navigate complicated mortgage lender requirements
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