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Banks and building societies have been raising mortgage rates over the last month increasing the cost of borrowing.

Halifax has just raised its first-time buyer, home mover and remortgage rates by 0.2% and Barclays has pushed up its rates twice in seven days. HSBC raised some mortgage rates by 0.24% and TSB has increased many of its products by up to 0.35%.

Aaron Strutt, product director at Trinity Financial, says: “Many borrowers are taking two-year fixes because they think rates will get cheaper over the near term. Lots of borrowers are also opting for five-year fixes because they tend to be more competitively priced, but lenders also regularly issue larger loans with longer-term fixes. Two-year fixed rates start from 4.6% and five-year fixes from 4.25%.”

While rates have gone up there are still some decent ones to choose from. Click here to view our latest large mortgage loans best buy table.

Will mortgage rates come down soon?

The Bank of England is still sending mixed messages about exactly when the base rate will be lowered from 5.25%, and without a reduction, mortgages may not reduce in price.

A member of the Federal Bank has reiterated that US inflation is coming down very slowly, and they are not in a hurry to cut interest rates. European Central Bank policymakers have also stated that a June interest rate cut may not necessarily be followed by a series of rate cuts.

Call Trinity Financial on 0808 1642174 to secure a mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

Banks and building societies are working harder to attract wealthier borrowers looking for £1 million+ mortgages.

Over the last few weeks, three players in the large mortgage loan space have made changes to attract more high-net-worth borrowers. 

Here is a summary of the changes:

10% deposit for £1.125 million mortgages with Metro Bank

Metro Bank for Intermediaries has increased the maximum loan size applicants can borrow if they have a 10% deposit from £675,000 to £1.125 million. For borrowers with 15% deposits, the maximum loan size has gone up significantly from £1m to £2m.

Many lenders limit the mortgage loan size for borrowers raising over £1m with smaller deposits, although Metro Bank has changed its rules to target this market. 

Santander's £1m+ mortgage changes

Santander has made some big improvements to its large mortgage loan proposition.  

• The maximum loan size on residential fixed products was increased from £1.5m to £3m for borrowers, providing they have a 25% deposit. 
• Santander increased the maximum loan size from £1m to £2m on residential fixed products providing borrowers have a 15% deposit.
• The bank has launched new 40% deposit two and five-year fixed rates with a £1,999 arrangement fee for mortgages between £3m and £5m.

Coutts Private Bank: New 25% deposit mortgage for Super Prime Properties 

Coutts has lowered the size of the deposit borrowers need to secure mortgages to buy in London's Prime postcodes.

The private bank, owned by NatWest, now requires borrowers to have a 25% deposit, rather than a 35% deposit, to buy in certain London Prime postcodes.

The mortgages are only for properties over £10m, excluding new builds and properties valued over £30m.  

Aaron Strutt, product director at Trinity Financial, says: "If you are seeking a large loan, it is well worth checking NatWest's mortgages, as they generally are not capped when borrowers have larger deposits.

"The price difference between lenders offering large and bespoke mortgages can be pretty substantial. It makes sense to ensure you are getting the most competitively priced rates.

"Prime mortgages can be complex, so you may want to discuss them with us. We’re happy to answer your questions."

Call Trinity Financial on 0808 1642174 to secure a larger mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

The Bank of Mum and Dad has been very busy in recent years as property prices have increased and mortgage affordability calculations have been tight for many first-time buyers. 

More than half of parents with adult children have either helped or expect to help their children with financial support to buy a home. One in four parents also feels guilty about not being able to provide financial support. This is according to data from the HomeOwners Alliance.

There are schemes available to help parents get their adult kids on the property ladder without providing funds towards the deposit. Joint Borrower Sole Proprietor is one of the most popular ones as it allows parents to go on the mortgage application but not the title deeds. This helps them avoid paying the enhanced stamp duty for technically owing a second property.  

There are Family Assist Mortgages, that offer low or no-deposit mortgages, although a charge is lodged against a family home to secure the mortgage. 

Aaron Strutt, product director at Trinity Financial, says: "First-time buyers typically need a minimum deposit of five per cent to secure a mortgage, although a ten—or fifteen-per cent deposit is advisable. Skipton is still offering its 100% mortgage, which targets people renting a property."

Call Trinity Financial on 0808 1642174 to secure a mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

Mortgage lenders have been busy making rate changes over the last few weeks. This means brokers have to stay on top of the market to ensure their clients get the most suitable and cost-effective rates.

In our latest blog, we ask Trinity Financial's broker, Luisa Ciccarelli, about her views on the property market and her mortgage tips for buyers.

1) How are you finding the mortgage market at the moment?

The first few months of the year were really busy, especially as the lenders were lowering their rates. There was a lot of positivity. At the moment, lenders have been pushing up costs, so some buyers are holding off until rates come down.

I am still busy running affordability checks and helping buyers work out how much they can borrow. Buyers are still getting offers accepted, and people are remortgaging; it's just not as busy as at the start of the year.

2) Are you speaking to many first-time buyers or people looking to remortgage?

Yes, there will always be people out there looking to buy property and lots of people need to remortgage. I help a lot of first-time buyers purchase flats and houses.

3) Do you find people can borrow the amount they need?

Yes, most of the people I speak to can borrow what they need. There are various products with different lenders designed to help and boost affordability.

I have been using Nationwide’s Helping Hand product for some of my first-time buyers because they can borrow up to 5.5 times their salary. Some lenders are more generous than others, especially if you take a five-year fix. Accord, Halifax, and Santander have some of the most generous affordability calculations.

4) Is it a good idea for first-time buyers to build up a credit rating?

It does make sense to get some form of credit, like a credit card, to boost your credit rating and, ideally, clear the balance each month. Although, this depends on whether you trust yourself to manage the debt.

5) Do you advise borrowers to get a decision in principle before they go property hunting?

Yes, because it gives them a good idea of how much they can borrow and a purchase price to aim for. It is also a requirement when buyers offer on a property.

It is worth remembering a decision in principle just gives an indication of what you can borrow. A full mortgage application will generally need to be submitted to secure a rate.

6) Are your clients taking two or five-year fixes?

My clients are taking a mixture. Many are taking two-year deals because they expect rates to come down and want to take advantage of that. However, many clients are still taking five-year fixes for the security. Some borrowers have to take five-year fixes to borrow enough money.

7) Where are most of your clients based?

I have clients based throughout the UK although most of them are buying in London and the south east. Some of them are buying more unusal properties. I recently had a client buying a house with 15 acres near Birmingham and I helped someone else get funding to convert three flats back into a house near Bath.

8) How long does it take a get a mortgage offer agreed?

This does depend on lenders time scales. It is normally between two weeks and a month although some lenders are much quicker.

9) What advice would you give to buyers?

Get a good broker. Even if we secure you a good deal, I check the market every few weeks to see if there is a cheaper deal. This is really important in these uncertain times.

Don’t let the rates put you off. If you find a nice property, the mortgage is affordable, and you think it’s a good investment, then go for it. For homeowners due to remortgage, secure a new deal six months before it finishes. It is important to have security as we have seen rates change quickly before.

10) How do you think the property and mortgage markets will go for the rest of this year?

I expect the Bank of England to lower the base rate in the summer, which could bring down rates. Lower inflation figures should also help. I am positive about the market particularly as the estate agents I deal with are busy, and people still want to get on the property ladder or move.

Call Luisa Ciccarelli on 020 7016 6152 to secure a mortgage or send her an email. 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

Some of the UK's largest banks and building societies are issuing £1 million+ mortgages to help wealthier buyers purchase stunning homes in the UK's prime property postcodes.

The most expensive street in Britain is Buckingham Gate in Westminster, a stone’s throw from some of central London’s world-famous landmarks, including Buckingham Palace. The average property price is over £9.6 million, according to data from Rightmove.co.uk.

Vicarage Gate in Holland Park takes second place, with an average asking price of just over £6.3 million. Park Road in St John’s Wood, with an average cost of a home of around £5.8 million, comes in third place. This is again according to data from Rightmove.co.uk.

CLICK HERE TO VIEW OUT £1 MILLION+ BEST BUY TABLE.

If you are considering buying an expensive home and need a larger mortgage, there are many options for higher earners depending on the size of their deposit. Ideally, borrowers need a 10% deposit, a clear credit history, and an aim to borrow between four and five times their single or joint salary.

Lenders can provide finance to foreign nationals, those with multiple sources of income in different currencies, company directors and potentially to trusts.  

Aaron Strutt, product director at Trinity Financial, says: "Our brokers have access to a range of banks, building societies and private banks keen to issue £1 million+ mortgages to high net worth clients.

"Some banks like NatWest for Intermediaries do not really have a maximum loan size on their standard fixed rates, while others cap their loan sizes around £1.5 million. Private banks want to issue larger loans and ideally get borrowers to transfer banking or their investments in the future.

"It is surprising how many lenders offering the most competitively priced rates are keen to issue larger mortgages. There is competition between mortgage providers, although the prices of fixes and trackers rate, plus setup fees, vary quite substantially between the lenders. It pays to check you are getting a good deal."

The graph above: Most expensive streets in London.

Outside London, the graph above shows that the five most expensive streets are primarily found in the southern counties, with Old Avenue in Weybridge, Surrey, taking the top spot.

Source: Rightmove.co.uk

Call Trinity Financial on 0808 1642174 to secure a £1 million+ mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

Home improvements can be expensive, particularly when structural work is planned. Rather than using money from savings or borrowing funds from family, many homeowners remortgage or take additional borrowing with their lender to pay for the work.

Over the years, Trinity Financial's brokers have helped borrowers refinance to raise the funds needed to make significant changes to properties, such as extensions and basement digs. We have also helped our clients secure funding to build home gyms and swimming pools and landscape their gardens. 

Banks and building societies are usually pretty happy to fund home improvements as they improve the property, potentially raising its value and decreasing their credit risk. However, some lenders will cap the amount they will lend existing borrowers regarding the loan-to-value and mortgage amount. This means borrowers remortgage to other lenders and assess their finances again. Either way, any additional capital raising will be subject to strict mortgage affordability calculations, which assess applicants' overall financial situation.

Many homeowners take additional borrowing with their lender or remortgage to raise funds for:

• Purchase of Land
• Loft conversions
• Extensions
• New kitchen or bathroom
• Conservatory
• New garage for classic cars
• Landscaping
• Swimming pool or home gyms
• Double glazing
• New roof

Aaron Strutt, product director at Trinity Financial, says: "If you are thinking about remortgaging to raise funding for home improvements, first check if you have early repayment changes on your existing mortgage and if your lender provides additional borrowing.

"Sometimes, the lenders offer additional borrowing rates that are much more expensive than your current deal. For many homeowners, waiting for the mortgage rate to finish and then applying for a remortgage makes sense. This means they do not have two separate rates."

What to consider before remortgaging to fund home improvements

Even though the price of materials and labour has increased in recent years, many people find making home improvements more cost-effective than buying a new property. However, seeing what properties are available in your local area makes sense just to ensure spending money on refurbishing makes sense. 

Many people remortgage to generate the finances needed for significant changes, such as an extension, basement dig, open-plan living extension, home gym, or swimming pool. Stamp duty is a significant barrier for many people who want to move.

The pros and cons of remortgaging for home improvements

There are upsides and downsides of remortgaging that you need to consider.

Pros:

• When you remortgage to another lender, you can typically fix your monthly repayments for two, three, five or ten years. However, the fixed-rate options may be restricted if you stick with your current lender and apply for additional borrowing.
• Early repayment charge-free products are available if you are considering selling your home although not through all banks and building societies. 
• There is plenty of choice or rates through banks and building societies.

Cons:

• By spreading the cost of home improvements over your mortgage term, you could pay back significantly more interest than with other finance options.
• Current mortgage affordability rules will apply. This means if the lender's calculations have changed or your income and expenses are higher, the additional borrowing or remortgage may not be affordable.
• You may be charged a mortgage-arrangement fee, valuation and legal fees.
• The application process can be longer if you need to get a schedule of work.
• If you want to remortgage before your current deal expires, you could be charged an expensive early repayment charge.

Lenders may ask for the schedule of works as evidence 

If you apply to borrow a relatively small amount to pay for a kitchen or bathroom, the lenders may not ask for evidence of costs. However, if you are planning to borrow a lot of money to make structural improvements, lenders may want to see builders' quotes detailing the costs and changes to the property. 

Some lenders reserve the right to request further details, including estimates and plans, and even hold back funds until the improvement work is completed if the amount being raised appears excessive or if the property may be vacated while the works are being completed. 

Call Trinity Financial on 0808 1642174 to secure a remortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage