Expert Knowledge & Professional Service

Barclays providing 5.5 times salary mortgage offer to borrowers earning over £75,000

Barclays is providing 5.5 times salary mortgages to new and existing Premier and Barclays Wealth customers. 

Initially, the enhanced income multiple was due to end last year, although it has been extended with no set expiry date. 

The bank has raised the maximum income multiple for applications from 5 times salary to 5.5 times salary for all residential capital repayment mortgages.

Interest-only applications will not be considered, although the lender will potentially offer a 35-year repayment term to a maximum age of 70. This should lower the monthly costs.

If you do not have a Premier account, Trinity can arrange for a personal banker to contact you and open an account prior to the application being submitted. One applicant will need an annual income of £75,000 to qualify. If one applicant does not earn £75,000 you will need a joint income of £100,000 to qualify. You can also have £100,000 saved or invested with the bank. 

Our brokers also have access to a specific broker-only team regularly providing impressively fast mortgage offers.

Aaron Strutt, product manager at Trinity Financial, says: “Barclays 5.5 times salary mortgage offer has been popular with our clients, particularly as most high-street banks and building societies will lend between four and five times salary. They do not regularly offer mortgages over five times income. 

“Trinty has access to another lender offering up to 5.5 times salary mortgages providing clients earn over £80,000 - either individually or as part of a joint application. The lender has great rates and you do not need to open a premier account to qualify. The maximum loan is £500,000.”

To secure a 5.5 times salary mortgage call Trinity Financial on 020 7016 0790.

Mortgage offers and decisions in principle

For many borrowers it is important to secure a 'decision in principle' or an 'agreement in principle' before they make an offer to purchase a property.

A decision in principle (DIP) or agreement in principle (AIP) provides a good indication to the client (and increasing the estate agent) they would qualify for a mortgage. However, it is not a mortgage offer and does not provide a guarantee of lending.

Initial agreements require a minimal amount of information, and the lenders use mortgage underwriters and property valuers to ensure the applicants and their properties meet their acceptance criteria.  

The agreement is typically valid for three months.  

What is a mortgage offer?

Once your offer to buy the property is accepted, you have passed the decision in principle and your application has been submitted, the lender will assess the case. When the lender is happy, and the property has been confirmed as sufficient security you will be provided with a mortgage offer.  

Mortgage offers typically last between three and six months. Although, some lenders have specific completion deadlines and set product dates. It is also worth noting, purchase and remortgage offers can be valid for different time periods.

Santander, HSBC and Yorkshire Building Society all provide six-month offer deadlines for purchases and remortgages. Halifax mortgages are set to the product expiry date.

What happens if the mortgage offer expires?

If your mortgage offer expires and you need to get it extended, the lender is likely to re-assess your application and potentially carry out a new credit score and another affordability assessment.  It may also carry out an updated property valuation.

Once your offer has been produced, it is not advisable to take out new credit cards or loans. If the lender checks you again and you have more debt or you've been declined for credit, it may affect the application. 

Trinity can help you secure a decision in principle

If you approach some of the high street banks and building societies, you can wait weeks for an appointment with an adviser. While some appointments can also take hours to complete.

If you call one of our brokers and provide us with the list of documents we require, if you are in a hurry we can secure a decision in principle on the same day.

Aaron Strutt, product director at Trinity Financial, says: “Most mortgage lenders are offering their lowest ever rates and if you approach one bank, it's advisers will not check the market and tell you if there are any cheaper or more suitable mortgages available to you.”

To secure a 'decision in principle' call Trinity Financial on 020 7016 0790.

Financial Times - Buy-to-let property sell-off precedes mortgage tax relief cuts

The Financial Times highlights that Buy-to-let landlords are selling parts of their property portfolios to pay down mortgage debts as the potential loss of a valuable tax relief makes some highly geared properties less viable.

Others investors are buying properties not as individuals but as limited companies to reduce their tax liabilities, but Aaron Strutt of Trinity Financial, told the Financial Times that borrowers considering this more complex form of ownership should take advice on the implications from an accountant or financial adviser.

Click here to view the full story £

BBC News - Record low rate signals mortgage battle

The Yorkshire Building Society, the UK's second largest mutual, has launched the lowest-ever mortgage rate.

Aaron Strutt, of mortgage broker Trinity Financial, told the BBC: "We are seeing newer lenders competing to top the best buy tables. The banks and building societies are battling to attract new borrowers and they are tempting customers in with their cheapest ever mortgages.

"Most experts thought that rates could not get any better, although they are still coming down."

Click here to view the full story

HSBC five-year fixed rate mortgage at 1.69%

HSBC for Intermediaries has reignited the mortgage price war by launching a longer term 1.69% fixed rate mortgage.

At the end of the fixed period, which expires on the 30 September 2022, the mortgage reverts to the bank’s 3.69% standard variable rate. The overall cost for comparison is 2.96% APRC representative.

The 1.69% rate has a £999 arrangement fee and early repayment charges until 30 September 2018. Applicants will need a 40% deposit to qualify, and the rate is avilable for mortgages between £10,000 and £5 million. 

Aaron Strutt, product director at Trinity Financial, says: “The lenders are pushing to attract new borrowers and they are offering large mortgage loans at super-low rates. 

“Many borrowers are locking into five-year fixes because they provide payment security. Although, HSBC’s lowest two-year tracker rates are actually 0.60% cheaper than this five-year fix and it has the same maximum loan size.”

Representative example: A mortgage of £250,000 payable over 25 years, initially on a fixed rate until 30/09/2022 at 1.69% and then on a variable rate of 3.69% for the remaining 20 years, would require 63 monthly repayments of £1,022.31 followed by 237 monthly repayments of £1,224.61. The total amount repayable would be £355,993.10 made up of the loan amount, plus interest (£104,638.10) and fees of £999. The overall cost for comparison is 2.96% APRC representative.

The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.

To secure a mortgage through HSBC call Trinity Financial on 020 7016 0790.

NatWest lowers minimum interest-only income mortgage requirement to £75,000

NatWest for Intermediaries has lowered the minimum income requirement borrowers need to qualify for its interest-only mortgages.

Following a host of criteria changes, the bank has reduced to £75,000 the minimum basic income at least one applicant requires - down from £100,000. 

If the applicants plan to use the sale of the property as a mortgage repayment vehicle, the maximum loan-to-value remains at 75%. The interest-only element cannot exceed 50% of the property value with the remaining 25% on a full capital repayment basis.

Where there is an element of interest-only, there must be a minimum of £200,000 equity in the property at the end of the mortgage term when the capital repayment element has been repaid.

NatWest’s interest-only mortgages are available to all borrowers meeting the minimum requirements including first-time buyers and those remortgaging.

Aaron Strutt, product director at Trinity Financial, says: “If you are looking for an interest-only mortgage there is a wide selection of lenders to choose from, although some of the lenders have tougher criteria than others.

“Santander has relaxed its interest-only policy by removing its minimum income requirement and it raising the maximum age from 65 to 70. If the sale of the property is being used as a repayment vehicle, there needs to be a minimum of £150,000 amount of equity at the end of the mortgage term.”

To secure an interest-only mortgage call Trinity Financial on 020 7016 0790.

Tesco launches 0.98% purchase-only two-year tracker mortgage

Tesco Bank has reignited the price war by launching a purchase-only 0.98% mortgage tracking the Bank of England base rate plus a margin of 0.73%. 

At the end of the tracker period, which expires on 30 September 2019, the mortgage reverts to the bank's 3.89% standard variable rate. The overall cost for comparison is 3.47% APRC.

Aaron Strutt, product director at Trinity Financial, says: "If you are looking to purchase a property Tesco's mortgage offers real value for money. Our brokers have access to super-low tracker rates if you have a larger deposit and you want to remortgage, although they are slightly more expensive than Tesco's rate."

The 0.98% mortgage has a £1,495 arrangement fee and 2% early repayment charges apply for the first two years. Applicants will need a 40% deposit to qualify, and borrowers have to take full capital repayment mortgages.

The maximum loan size is £1 million, and overpayments are capped at 20% - rather than the more standard 10%.

Representative example: A mortgage of £250,000 payable over 25 years, initially on a tracker rate for 24 months at 0.98% and then on a variable rate of 3.89% for the remaining 23 years, would require 26 monthly repayments of £939.92 followed by 276 monthly repayments of £1,271.67. The total amount repayable would be £374,900.50 made up of the loan amount, plus interest (£122,875.50) and fees of £1,499. The overall cost for comparison is 3.47% APRC representative.

The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illusration.

Call Trinity Financial on 020 7016 0790 to secure a low mortgage rate.

Accord Mortgages - part of the Yorkshire Building Society - offering five times salary mortgages if you earn £70,000

Accord Mortgages has amended its maximum income multiple to five times salary for single and joint applicants earning at least £70,000 each year.

Accord is the broker lending arm of the Yorkshire Building Society, and it will potentially provide five times income mortgages up to £500,000 to borrowers with a five per cent deposit. Applicants will need a 15% deposit to access £500,000+ mortgages at five times salary.

If you and your partner earn £50,000 each, the building society could lend you up to £500,000 providing you have a five percent deposit. For joint applicants earning £30,000 each, the maximum loan size reduces to 4.5 times salary and a mortgage of just under £270,000. These figures are based on a 25-year term, no dependents and minimal credit commitments. 

Aaron Strutt, product director at Trinity Financial, says: “Accord offers a range of competitively priced rates and a selection of offset mortgages available to first-time buyers. Some of the other lenders are offering larger income multiples for mortgages over £500,000, although not many of them are as generous as Accord.

“Affordability is a big issue when it comes to calculating the maximum loan size and Accord will not deduct pension contributions, season ticket loans, share save schemes or debts to be repaid. The society will lower the maximum loan for childcare and school fees, ground rents and service charges, debts to remain, student loans and overdrafts.”

Accord previously offered over five-times salary mortgages, although the loan size was limited to £500,000. 

For help to secure a five times salary mortgage, call Trinity Financial on 020 7016 0790.