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information contained in them may no longer be current and therefore much of the information/figures quoted could be out of date and shouldn’t therefore be used as an indication of the current situation.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/

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

 

The effect of Brexit on the housing market

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.

The Royal Institution of Chartered Surveyors (Rics) has released figures showing that confidence is returning to the housing market following the vote to leave the EU in June, and that as a result house prices are set to rise.

After the vote on June 23rd, Rics had forecast a sharp fall in house sales and house prices, with the view that members were more pessimistic than they were at any point since the 1990s.

Rics, which is seen as a key market indicator, has now forecast that as the shock of Brexit has receds we are looking forward to an annual 3.3% increase in house prices year-on-year over the next five years.

In London in particular, there have been more house price drops reported in comparison to the rest of the UK where prices have risen, particularly in the Midlands.

This rise in prices can be attributed to demand outstripping supply, with a record low number of properties on the market (reported in December 2015). In addition, the Bank of England’s cut in interest rates has helped to boost confidence in both buyers and sellers. Although borrowing costs are low, there is still some uncertainty on the effect that Brexit will have on the housing market and economy in the UK.

In August this year the number of property enquiries fell, which isn’t unusual given that the market tends to take a dip in this month more than any other.

The decline in the number of people buying property can also be attributed to the fall in buy-to-let investors following the stamp duty rise for property investors.

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.

https://www.theguardian.com/money/2016/sep/08/confidence-housing-market-house-prices-rising-brexit-vote-rics-surveyors

Now we are leaving the EU, what next for homebuyers?

These blogs and the information contained in them is no longer current and therefore much of the information/figures quoted may 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.

Fixed mortgage rates fall to an all time low

According to Bank of England figures, Fixed rates have fallen as low as 1.07%, making them the lowest rates we have ever seen. Could this be your opportunity to lock in a great deal?

Mortgage lenders have been steadily cutting interest rates since the end of summer 2014, leading to the lowest fixed rates we have ever seen.

At the time of writing, Bank England figures show that for borrowers able to put down a 25% deposit on a home, the average five-year fixed deal is just 2.98%, while the two-year deal is as low as 1.99%

These aren’t even the best rates. Home buyers can fix their mortgage at 1.07%, and less than 3% if you are prepared to fix for ten years. Depending on your circumstances, you may find these deals too long or short and, therefore, opt for the five-year fix at 25%, making them a good middle-ground for many.

The best rates go even lower than this. Homeowners can fix for two years at just 1.07% and up to ten years at less than 3%.

For some, those may feel too short or too long, but a five-year fixes at below 2.5 per cent – and one at just 1.99 per cent – might look a very tempting middle ground.

Just twelve months ago the prediction by some industry experts was that interest rates would start to rise towards the end of 2015 and into 2016 but so far we haven’t seen any indications of this. If anything, it was felt by some analysts felt that rates would rise after the general election but this hasn’t been the case so far.

This is because of low inflation, a slowdown in world growth, a slump in oil prices, and problems with the Eurozone to name a few.

With the fall in fixed rates, home buyers have been able to obtain so exceptionally cheap mortgages. Rates could still fall, but the time to act is now because these deals could disappear overnight.

Britain’s economic recovery could still be halted if base rates rise over the next few weeks, and meanwhile the oil prices are falling, prices of food are much more competitive and energy costs are reducing this has all contributed to inflation being pushed down to well below the 2% target.

The general consensus is that rates won’t rise until at least this time next year.

Meanwhile house prices are rising, and so there’s a renewed confidence in the housing market. We are now in the midst of a ‘sweet spot’ for mortgage rates, and if you do want to secure a cheap fixed rate mortgage now then you need to check the following:

Arrangement fees – work out if the cheap deal is actually cheap once you have paid the arrangement fee on top. It might be worth going for a slightly higher rate with a lower arrangement fee.

Long and short term plans – are you thinking of moving in a year or two or are you thinking of staying put? Can you be sure that everything will go to plan? A good five-year fixed mortgage will be portable, but check with your mortgage broker as you might need to borrow more money and your lender could turn you down. If you do have to pay a redemption fee, it could end up not being the good deal you once thought!

Talk to a us, as we will be able to advise you as to what you need in order to be prepared for your application but remember, low rates today will be here for a while, but once they have gone, they have gone!

Your home may be repossessed if you do not keep up repayments on your mortgage. Rates and offers are correct at the time of posting, May 2015.

Will Brexit bring down property prices?

These blogs and the information contained in them is no longer current and therefore much of the information/figures quoted may 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.

As the referendum gathers pace, the headlines in the UK press in recent weeks have been nothing but doom and gloom in terms of the effect of Brexit on UK house prices.

Chancellor of the Exchequer George Osborne has claimed that leaving the European Union would hit house prices significantly and make mortgages much more expensive. He believes that the short-term effect of Brexit will be that property prices will fall if we decide to leave the European Union on June 23rd. He recently stated: “You will see the analysis we will do, but I’m pretty clear that there will be a significant hit to the value of people’s homes and to the costs of mortgages. That is one example of the kind of impact, economic impact, that we get from leaving the EU.”

The same claim has been made by Jayne-Anne Gadhaia, Chief Executive of Virgin Money and a recent survey by KPMG has shown that 66 per cent of estate agents believed that ‘Britain leaving the EU would have a negative impact on inbound cross-border investment’.

In December, Berkeley Homes complained that Brexit would mean London having less influence, fewer jobs and lower growth, and therefore needing fewer new homes built.

However, not everyone sees a fall in house prices as a negative outcome. For every person who has made a fortune from London’s fast-rising house prices, there are 20 or more young buyers eager to get onto the property ladder but who have been priced out.

But before the ‘in’ campaign starts to frighten homeowners with prophecies of negative equity, and the ‘out’ campaign tries to lure the priced-out with the prospect of a new era of cheap housing, we should ask whether the fears of estate agents and developers are built on false premises.

According to a study by Knight Frank carried out in 2013, nearly half of all prime London buyers were non-British citizens, with nearly a third not even residing in the UK. They were simply buying London property for investment or occasional use. However, with 9 per cent of prime market buyers from Russia and 7.5 per cent from the Middle East, Brexit may not make a difference to them. After all, regardless of whether we are in our out of Europe we still have economic stability and favourable rules for non-UK citizens and many other attractions. Following Brexit there would be pressure to introduce laws to limit the purchase of London property by those who aren’t UK citizens, and George Osborne has already tried to appease that urge by changing stamp duty in favour of owner-occupiers.

In the event of Brexit, some of these owners would sell up and EU Institutions would relocate, removing key staff out of London and some banks could even relocate to Europe. In addition, some EU workers could lose their right to live and work here.

Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

To find out how Brexit could affect your property, talk to Derngate Wealth today.

https://www.spectator.co.uk/2016/03/why-brexit-from-the-eu-wont-knock-london-property-prices/

https://home.kpmg.com/uk/en/home/media/press-releases/2016/04/global-investors-believe-brexit-would-result-in-less-investment-.html

https://www.telegraph.co.uk/business/2016/05/04/virgin-money-cashes-in-on-mortgage-boom/