When Nicola joined the firm in 2001, the average UK house price stood at £137,230. Today it’s closer to £291,000. The Bank of England base rate was 5.75% then, fell to a historic low of 0.10% in 2020/21, and now sits at 3.75%. Through banking crises, regulatory reform and rapid advances in technology, Nicola has remained a constant – trusted, knowledgeable and reassuring.

Promoted to partner within just 18 months, Nicola has built a career on dedication, market knowledge and long-term customer relationships. She has helped thousands of clients, often across multiple generations of the same family; from first-time buyers collecting their keys, to growing families upsizing, and later helping clients downsize or celebrate paying off their mortgage entirely.

“There’s nothing quite like the call from someone to say their mortgage is finally cleared,” she says. “Knowing you’ve supported them through that journey is incredibly special.”

While the profession has modernised, with remote advice now commonplace, Nicola’s commitment to personal service, having an office off Red Lion Square in Stamford for clients to pop in has never changed. Some clients may have moved away, but remain loyal, valuing the consistency and trust she provides.

Behind the scenes, her long-standing team of Ali and Sarah ensure the office runs seamlessly, allowing Nicola to focus on delivering clear, thoughtful and expert advice. There have been lighter moments too: early team outings to Fratellis or The George, red wine flowing before a Saturday shift beckoned, and competitive team-building days rallying or trying their hand at archery.

Originally from Stamford and now living in Corby Glen, Nicola, 47, balances her professional life with family, married with two university-age daughters. Outside work she enjoys walking, fits in some travel, and fondly recalls a 4am sunrise hike to World’s End in Sri Lanka, a moment she describes as unforgettable.

After 25 years, Nicola remains more than a mortgage and insurance adviser to many – she is a trusted confidante, financial expert and often a friend through life’s biggest milestones. As always she is positive about the future and building the team for the next phase of growth.

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The Bank has regular committee meetings to decide what should happen to interest rates. The aim is to keep on track with inflation targets and maintain a healthy economy. Inflation is currently at 2.6%, which is still above the 2% target the government sets for the Bank.

What’s happened to mortgage rates recently?

Mortgage rates have continued to come down slowly in recent weeks. Depending on the loan to value and style of product will determine how much the product percentage is affected.

What does the reduction to base rate mean for my mortgage?

Changes to the Bank’s Base Rate can impact how much interest you’ll pay on loans, including mortgages. If you’re on a fixed-rate deal, your monthly payments won’t change until the end of your deal. And if you’re on a tracker mortgage, or a variable rate mortgage that follows Base Rate changes, it is likely you will notice a reduction to your payments. Each mortgage lender has their own policy as to how much and when they pass on the rate cut but typically it is within one month and communication is always sent in writing to you.

If you are in the process of moving or remortgaging, you may have already received a mortgage offer and have not yet completed. It is definitely worthwhile reviewing the options and depending on your situation and the timescales involved, you could benefit from a new product on a lower rate.

If you’re coming to the end of your fixed-rate product, you’ve probably already started to think about the rate you’ll be offered on your next deal. You want to avoid reverting to the lenders standard variable rate (SVR). Most lenders will allow you to secure a new rate within four months and you can even make changes should further rate reductions occur prior to completion.

Will the Base Rate reduction affect affordability?

If you’re thinking of moving home, you may see changes to lenders affordability assessments.

Lenders’ ‘stress test’ calculations – which is how they calculate whether someone can afford a mortgage should their repayments increase are usually linked to the variable rate – typically with 1% added on top. Therefore, if the variable rate reduces following the base rate cut, we might start to see affordability assessments improve and therefore the potential loan amount you can borrow increases.

What could happen next?

History has shown that after interest rates have increased over time, they have remained stagnant before starting to reduce. While we are seeing a gradual downward trend, it is extremely unlikely that rates will drop back to the historic lows we saw back in 2021.

The financial markets have been forecasting two-to-three more possible cuts during 2025, so we could expect the base rate to fall to 3.75% by the end of the year. However, we need to be patient and wait for the respective committee meetings which are planned for the rest of the year and see what happens in the wider economic conditions and global events. The next decision on interest rates is expected on 19th June.

The post Bank of England reduces base rate to 4.25%: how could this effect UK mortgages? appeared first on ChoiceMortgages UK Ltd.

However, in 2018, the government announced that the scheme would end in March 2023 – for good. While this means critical deadlines are looming, ChoiceMortgages UK Ltd are here to help you navigate the process to ensure you can still benefit from the scheme. 

How does Help To Buy work?

In order to qualify for a Help to Buy equity loan, the property must be a new build sold by a registered Help to Buy developer, and, importantly, it only applies to first-time buyers. Property price limits are in place, and these vary by region. 

The initial requirement from you is to pay a deposit of at least 5% of the property purchase price, with you being able to borrow up to 20% by way of an equity loan. The remaining amount is funded by way of a mortgage.

There is no interest on the equity loan for the first 5 years, but once it kicks in – you will be charged a rate of 1.75% in the sixth year, which increases at each anniversary

Key dates to note

While this is the final season of the Help to Buy scheme, applications are still open for prospective first-time home buyers. These are the important dates to bear in mind and plan around:

Equity loan applications deadline: 31 October 2022 

Practical completion deadline: 31 December 2022. Note that this means the home builder should have completed work on your property such that it is ready to move into, with the new-home warranty in place. 

Scheme end date: 31 March 2023. By this time, you should have completed all the outstanding legal requirements for purchasing your home, and received the keys. It is your responsibility to make sure this happens, and funds will be withheld should you not meet this criteria. This date, however, has no bearing on your loan – your repayments will continue for the term of your loan.  

What to do if you’re in the process of building your home

Since the Help to Buy scheme only applies to properties sold by registered Help to Buy homebuilders, they should be aware of the key dates mentioned above. In fact, they communicate directly with the scheme with regards to which homes will meet the 31 March 2023 legal completion date, so it is highly unlikely that these deadlines will be missed.

Despite this, it is important to maintain full transparency and open communication with your homebuilder to ensure that your deadlines are met. 

Should you find yourself in a position where your homebuilder is unable to complete all the requirements on time, you’re eligible to receive your reservation fee and any deposits in full. 

We are here to help

If you are relying on the assistance of a Help to Buy: Equity Loan in order to make your dream first home a reality, the pressure is on to make it happen faster than you may have planned. 

It’s easy to be overwhelmed when faced with such a major life event, but you don’t have to go at it on your own. ChoiceMortgages UK Ltd is proud to have supported many clients with the Help to Buy scheme. Our years of experience in the industry will ensure you achieve the dream of owning your first home.

The post Help To Buy Equity Loans: What you need to know before the scheme ends for good appeared first on ChoiceMortgages UK Ltd.

I would like to thank all our customers past and present, who have continued to support us, and it certainly has been busy. Despite having experienced severe delays in the industry, significant changes to lending criteria, we have arranged over 440 mortgages, of which half, have helped people move into their new home.

I am very proud of the relationship we have with our customers and introducers, many of whom have dealt with us for several years. We regularly receive praise and recommendations, and our team very much appreciate your kind words, especially during these difficult times. 

I fear that the start of 2021 will be much the same and I would not be surprised if there is another lockdown, but we should all take comfort in knowing that the vaccine is ready for distribution. 

Our office is now closed for the festive season, allowing our staff a well-deserved rest and some of the magic Christmas brings! 

We look forward to hearing from you when we reopen on Monday 4^th January. So whether you are thinking of moving, wanting to do home improvements, or simply save money on your mortgage, we will be here to help. 

We cannot wait until we are able to see you in person, but for now, to keep everyone safe, we will continue to provide advice in the comfort of your own home, whether it be on the phone, via WhatsApp, Teams, Zoom or Facetime.

All it leaves me to do is to wish you and your loved ones a very merry festive season and it has never been more appropriate to wish everyone a happy, prosperous, and most of all a healthy 2021.

The post A Christmas Message appeared first on ChoiceMortgages UK Ltd.

We prioritise the health and wellbeing of all our customers and employees. We have been closely monitoring the current coronavirus outbreak in the UK and adhering to all government recommendations and guidance. For this reason, we have made the difficult decision to close our office premises but will still operate a full business service Monday – Saturday from 9am to 5pm.

We have a robust resiliency program in place and all our team can work remotely. We will continue to provide a high quality and efficient service.

Applications currently being processed

All our client records are held electronically, meaning we can access the information required for our usual activity. We are expecting the current situation to impact service levels as we are reliant on third parties processing and providing updates. As time goes on it is likely that more of their staff will be self-isolating and depending on government guidance some businesses may temporarily close.

Should we require further documentation from you, you can send this electronically via email and if you don’t have access to a scanner, a smartphone can be a substitute. If you are unsure, we can advise you how to use your phone to scan documents, which in turn can be emailed to us in PDF format.

We will be monitoring your application and providing you with updates when available. These may be via phone, SMS or email. We would recommend that you check our email address @choicemortgagesuk.com is on your approved sender list. Please remain patient and rest assured we will be chasing the progress of your application according to the information made available from third parties applicable.

New enquiries

As mentioned, we are operating a normal service from 9am to 5pm Monday to Saturday. Whatever your mortgage requirement or insurance need, we will be able to assist you so please call 01780 480600. 

Our staff members are experienced in providing telephone consultations and where necessary we can accommodate; WhatsApp, Facetime and Skype requests.

Meetings at our office

We understand that for many of our clients, face-to-face meetings are important. We are not able to book a face to face appointments at present, instead of relying on our ability to provide telephone conferencing. As the situation evolves and the guidance allows, we will be happy to schedule a meeting with you.

We have not taken our decision lightly but know that the proactive step will help minimise the spread of COVID-19. 

We will be updating our Social Media platforms with all the latest news, so please ensure you follow us on Facebook.

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