Could your Social Media Account Affect your Mortgage Application?

These blogs and the information contained in them may no longer be current and therefore much of the information/figures quoted could be out of date and shouldn’t therefore be used as an indication of the current situation. If you require any further clarification please contact Derngate Wealth.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Did you know that some banks will look at your social media account before offering you a mortgage, or an insurer will grant you cover? In fact, there are even some companies that will check what banks may see – for a fee.

How does it work?

Some credit score apps are working with lenders to see if you will be able to meet your repayments and financial obligations and they are doing this by checking whether there are signs of irresponsible purchasing behavior and interests.

Companies like Experian have always analsysed consumers to give banks a picture of how much of a risk you are, although Experian has stated that they do not use Social Media for this purpose.

However, whenever you apply for a loan or a job, your social media may be vetted by other companies and they even charge you a fee to see the information and assumptions about you, that they are providing to these organisations.

These companies may put together a report of the impact your social media has on your borrowing ability.  It will give you an indication of the predictions companies are likely to make about you based on the data that is available online.

You can then use this report to change aspects of information publicly available in order to paint a more reliable picture to potential lenders.

What do they check?

These information gathering companies will look at your Facebook, Twitter, LinkedIn and Gmail profiles, as well as online shopping receipts to see whether you are a competent spender. It can also look at newsletter sign ups and log-ins, so be wary as you may be unwittingly sharing information about your preferences.

What can you do?

In fact, by signing up to things through Facebook and Google it may save you time, but it is giving the app a picture of your interests and spending habits, so it’s worth taking the time to register fully for access to these online services otherwise you are giving access to your contacts, images, your location and your browsing history.

Most of the time, this data is analysed by machines and you’ll be given a score. Therefore it’s essential that you set your your account to private so that only you have access to your account and information posted. Everything you share or post online publicly tells people something about you, your habits and your behavior. It can also help criminals steal your identity.

Our advice is to go into Facebook and use the option to view your profile from the public’s point of view and adjust your privacy settings You could also download your entire Facebook history in the privacy section so you can see exactly what’s been stored about you and make changes to protect yourself in the future.

If you would like advice on buying a property, contact Derngate Wealth today.

Read more: https://inews.co.uk/inews-lifestyle/money/can-your-social-media-account-affect-your-mortgage/

Interest rate rise could mean an increase in your mortgage payments

These blogs and the information contained in them may no longer be current and therefore much of the information/figures quoted could be out of date and shouldn’t therefore be used as an indication of the current situation. If you require any further clarification please contact Derngate Wealth.

Over four million homeowners will see their monthly mortgage repayments rise following the announcement that the Bank of England has increased interest rates for the first time in over 10 years. Interest rates have risen to 0.5% from 0.25%, reversing the emergency action that was taken immediately after the Brexit vote.

The move by the Bank of England comes amid householders increase in rising prices, which is outstripping the growth in earnings, following the devaluation of the pound since the EU referendum.

The average rise for those on a variable rate will £22 per month, although the recent popularity of fixed-rate mortgages (due to the competitive deals that have been available) means it will initially affect less than half of households.

The Governor of the Bank of England, Mark Carney, has reassured consumers that it wasn’t the start of a sustained upward trend in rates. He stated:

“To be clear, even after today’s rate increase, monetary policy will provide significant support to jobs and activity. And the monetary policy committee continues to expect that any future increases in interest rates would be at a gradual pace and to a limited extent.”

According to The Telegraph, experts are expecting two further quarter-point increases in interest rates by 2020, which would leave them at 1%.

The rise in rates has raised questions over the ability of homeowners to repay their outstanding loans given that there has been a steady rise in personal borrowing and credit cards in order to offset higher prices.

According to accountancy firm Moore Stephens (The Telegraph) over the first year of this rate rise, households are expected to face around £1.8m in additional interest. In addition, Moore Stephens has estimated that households will pay around £465m in additional costs on credit cards, overdrafts, personal loans and car finance as a result of the rate rise. In fact, in recent months there have been some signs of consumers using their savings or borrowing money via bank loans or on credit cards to keep up with day-to-day spending.

On the flip side, savers will benefit from the rate rise, with the increase in rates already being passed on by some banks.

If you would like to find out how the recent rate rise will affect you, contact Derngate Wealth today.

Your home may be repossessed if you do not keep up repayments on your mortgage

– https://www.telegraph.co.uk/personal-banking/mortgages/happens-fixed-rate-mortgage-ends/

 

 

What an interest rate rise could mean for you

These blogs and the information contained in them may no longer be current and therefore much of the information/figures quoted could be out of date and shouldn’t therefore be used as an indication of the current situation. If you require any further clarification please contact Derngate Wealth.

For the first time in a decade, the Bank of England has hinted that there will soon be a rise in interest rates.

Bank of England’s rate-setting committee member Gertjan Vliegh has argued for a rate rise to be put in place in the next few months in a recent speech to the economists in London.

If interest rates were to rise, there would be a rise in householder’s monthly bills, provided they have variable or tracker mortgage. For those on a fixed rate mortgage, although they are protected, their mortgage will rise once the deal comes to an end. If you are on a variable rate there will be a buffer in place to help you to cope with an increase in rates.

The rise in costs will all depend on the terms of the mortgage. The average standard variable rate mortgage at present is 4.6% according to Moneyfacts. Those with a repayment mortgage of £200,000 would pay an extra £28.72 based on a mortgage term of 25 years, if rates rose by 0.25%.

With a rate rise possibly imminent, now could be the time to remortgage onto a fixed deal or take out a fixed rate mortgage if you’re about to buy a property.

For savers, this is great news. The average saving account pays just 0.4% interest, down from 1% five years ago. We have had years of rock bottom rates, with a £20bn fall in the amount invested in the last 12 months alone. However, the expectation is that many banks will want to be seen to be passing on the full rate rise to savers.

If you would like advice on how any rate changes could affect you, contact Derngate Wealth today.

Your home may be repossessed if you do not keep up repayments on your mortgage

https://www.theguardian.com/business/2017/sep/15/uk-interest-rate-rise-what-it-could-mean–savers-mortgage-holders

 

How to beat lenders’ rate rises

These blogs and the information contained in them may no longer be current and therefore much of the information/figures quoted could be out of date and shouldn’t therefore be used as an indication of the current situation. If you require any further clarification please contact Derngate on the number above.

Mortgage rates are rising and the latest data from the Bank of England shows that for the first time in what has been a comfortable period for borrowers, fixed rates for two and five-year mortgage are slowly rising.

A rise in rates has been widely predicted for well over a year now and especially as capital markets started to reflect the higher borrowing costs between banks in the days following the election of Donald Trump as US President back in November. This has now filtered through to the consumers into higher rate mortgage costs, with the largest increase seen with long term fixed rate mortgages.

Generally consumers don’t switch bank accounts and chase the better interest rates, especially as the rise is incremental.

With regards to savings, even though rates are going up banks will continue to pay no interest on the savings held, even though they can reinvest the deposits. It’s not all doom and gloom though, as although average rates are dropping, some smaller banks have started to increase their payouts. In fact, around 30% of savings accounts saw a rate rise in January but these rates are coming from much lesser-known banks rather than the trusted popular high street names. This is because the smaller banks are trying to attract new customers in order to grow whereas high street banks don’t need to work too hard to attract savers.

Meanwhile, banks have been increasing the margins they have been taking on their mortgage lending, as the interest rate cuts following the crisis allowed them to do so.

So what does this mean for borrowers?

Borrowers should remortgage their homes to ensure that they can capture the low rates, especially as your existing mortgage could become more expensive very soon.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Talk to Derngate Wealth for information on getting the best interest rates and the options when it comes to remortgaging your property. We can advise you on whether this is the right strategy for your circumstances and future plans.

If you would like more information on how a rise in mortgage rates may affect you, please contact Derngate Wealth today.

https://www.telegraph.co.uk/personal-banking/savings/rates-rising-can-beat-banks/

UK lenders could move operations overseas

These blogs and the information contained in them may no longer be current and therefore much of the information/figures quoted could be out of date and shouldn’t therefore be used as an indication of the current situation. If you require any further clarification please contact Derngate on the number above.

According to the British Bankers Association chief executive Anthony Browne, the future of residential mortgage lending will be drastically changed for the worse if the major lenders were move their operations to outside of the UK.

Mr. Brown wrote in the Observer that most international lenders are deciding which operations to move outside of the UK and that they are on the cusp of making this decision. He also wrote that the smaller lenders could move before Christmas this year with the larger lenders soon to follow.

Association of Mortgage Intermediaries chief executive Robert Sinclair has also said that the current limits on trade borders with the EU would have a knock-on impact on the mortgage industry. Banks need to be able to trade cross border within Europe with no limitations and this has been integral to the mortgage industry and by leaving the EU this will be affected.

It’s not predicted that banks will leave the UK entirely, but many aspects of their operations will do so. Mr. Sinclair has stated that “The ability to trade capital, funding, swap and derivative products supports the wider world economy as well as our own” and that “ any threat to this risks limiting the ability of our largest UK Banks to support the domestic economy in the same way.“

Although we are unsure of when the UK will leave the EU, especially after this week’s news regarding Article 50, Mr. Sinclair says that we “cannot ignore the fact that changes to how these major banks operate has the potential to restrict the future funding of UK residential mortgage lending.”

Adam Tyler, Chief Executive of The National Association of Commercial Brokers believes that bridging the sector would be resilient in the case of lenders moving their operations to outside of the UK. He says “Bridging is a specialist sector that operates relatively independently of the major banking institutions, and if anything, the departure of big name banks could thrust alternative finance even further into the spotlight. It’s worth noting that the current bridging industry grew out of the ashes of the global financial crisis when many mainstream banks effectively shut up shop. In other words, any uncertainty on the high street often benefits the bridging sector as it becomes more visible and demand from borrowers increases.

Your home may be repossessed if you do not keep up repayments on your mortgage.

If you would like more information on how Brexit may affect you, please contact Derngate Wealth today.

Fears for funding of mortgage lending should banks leave UK