UK Mortgage Serviceability Changes - Nova

UK Mortgage Serviceability Changes

 

Nova Financial Ltd featured in Property Question Time on the Property Sky Channel 198

Our Managing Director Paul Mahoney on the Expert Panel:

Bryony Bilsen: So Paul, we’re going to go straight to you with your golden nugget.

Paul Mahoney: I mentioned earlier about some changes with regards to mortgage serviceability. That’s getting a lot of people concerned around whether they’re actually going to be able to borrow as much as they owe, especially in areas like London and the South East where the yields are lower than other areas. When you apply the usual calculations, in a lot of cases you wouldn’t be able to. Or not necessarily that, but also you wouldn’t be able to keep remortgaging and keep investing as you have been able to in the past. One way of overcoming that is by going for five-year fixed rate products, which essentially circumvent the change. It means that lenders are able to use the actual product rate for the benchmark rate and therefore are enabling you to borrow more.

I suppose one reason to seek advice when it comes to getting mortgages, I know some people don’t like paying fees and things but often the fees a very small amount being compared to what you can save and the value that it can add. So at the very least, speaking with an advisor on what you can do and how you can best structure your finance to help you sort of build and achieve the goals you’re working toward.

T: 0203 8000 600 W: Nova.Financial E: info@nova.financial

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