Introduction To Plus Mortgages Ahead Of The Midlands New Home Show
Posted 20 February 2023 by
Lizzie LeighJoanne and Nikki from Plus Mortgages tell us about the latest deals are for buyers in the new home mortgage market.
Joanne and Nikki, please tell us a little bit about your roles at Plus Mortgages?
Jo: I founded the business with my husband, I am business owner and specialist Mortgage Advisor, dealing with not only residential but commercial mortgages, too.
Nikki: I am the senior mortgage advisor offering clients expert advice and support through their house buying journey.
Your website promises your business is ‘dedicated to making mortgage advice positive’. Is that getting harder with these recent interest rate rises?
It just means we have to work a bit harder to turn anything negative into a positive. We just have to accept that the rates today are the norm and they are still pretty decent. We avoid posting anything negative on our social media because what is the point, there is enough negativity in the news. Even in the past where we have had to tell clients they cannot have a mortgage, we stick with them and guide them until they are in a position to get a mortgage.
Do you sense nervousness among new buyers looking to secure a mortgage, or is appetite still strong?
The market went quiet in November last year, when it normally goes quiet in December, so it did seem buyers were becoming nervous, but all of a sudden it has gone crazy again. I would say if anything, there aren’t enough properties on the market, so yes, the appetite is still going strong. I think people were holding off to see how the market was going to react to the base rate changes, but the good news is, it’s not as bad as experts predicted.
In the current climate, would you recommend a tracker or a fixed rate mortgage?
It does depend on individual circumstances, but let’s give you a scenario. Tracker mortgages would be good in times when the rates were high (quite recently, actually) but we had an inkling they would soon settle. Tracker mortgages without redemption penalties would work in this scenario because once we start seeing the market settle we were then in a place to secure a fixed. We have been quite successful in this area over the last few months and have avoided securing clients on the rates when they were so high.
However, for some people they prefer the certainty of knowing exactly what the repayments will be to allow them to budget sufficiently, therefore a fixed rate is a more desirable choice.
Speaking to a broker will give you a bespoke option based on your preferences and personal situation.
Do lenders tend to look more favourably on providing mortgages for new homes rather than second hand, older properties?
They never used to but we are starting to see ‘Green Mortgages’ which all new build homes would really fit the criteria for (you would hope), due to their energy efficiency ratings. Lenders are open to utilising builder incentives also for clients, they are also move flexible on how long the mortgage offer lasts for before having to re-apply.
Do you think lenders are doing enough to support clients with their increasing mortgage payments at the moment?
I think the lenders are doing what they can; they have to be careful not to get us back to 2008 when the market crashed, so they don’t have an easy job. Where possible they can adjust some terms of the mortgage to take the pressure off, for example, increasing the overall term (years) of the mortgage, or payment holidays. They could probably do more, I think we all can and this is where having a mortgage broker is, as Martin Lewis keeps saying, “worth their weight in gold”. A good broker will be there to support you throughout your whole life.
What's the top tip you'd give to a first-time buyer looking to secure a mortgage this year?
Jo: if you are just starting to save, set up a Lifetime ISA - LISA, also look at ring-fencing your savings by taking out an Income Protection Policy.
Nikki: if you can afford it, do it! Don’t wait, as the housing market goes in cycles.
Are you aware of any new schemes or incentives that are due to be rolled out in the mortgage market soon?
We’ve heard of a scheme called Propertunity, which ultimately means you can get a loan to support your deposit, up to 25% of the property value. The loan is accepted as a credit commitment and ultimately increases your potential purchase price. It’s a private scheme, similar to Help to Buy.
You're going to be exhibiting at the Midlands New Home Show at the NEC on Saturday 4 March – what can visitors expect when they visit your stand?
We’re going to be an all-women team on the day, because our Plus men are enjoying themselves on a ski-trip (poor planning!). We’ll be there offering our advisor expertise, along with our support team colleagues, a few freebies and a selfie-station. It’s your opportunity to ask questions, so come and visit us at Stand 64.
Show Ambassador Laura Hamilton talks about The Midlands New Home Show here: