In a stunning location, in Europe’s most southerly fjord, Kotor, Montenegro is a perfectly preserved Venetian gem.

The post Gulf of Kotor, Montenegro appeared first on The Travel Magazine.

If you’re looking to apply for a mortgage, you might consider using a mortgage broker. But what is a mortgage broker and do you really need one?

In a nutshell, a mortgage broker is an adviser that helps you get a mortgage. They will search the mortgage market to help you find the right product from thousands of deals.

Using a broker gives you a mortgage expert on your side. Brokers need to pass professional qualifications to give advice and they’re regulated by the Financial Conduct Authority.

They’ll also give you a realistic idea of how much you can borrow and therefore your purchasing power. And they’ll help get your finances ‘mortgage ready’ to give you the best chance of getting your application approved before finding you the best mortgage rates.

Will using a mortgage broker get me a better deal?

A broker will find you the best and cheapest mortgage that meets your needs.

It’s important to remember there isn’t one best mortgage. The lowest rate might not be accessible to you or come with high fees you don’t want to pay.

‘Using a broker who knows the market and is used to helping hundreds of people with their mortgages every day significantly increases the chances of you securing a mortgage at a good rate because of their expertise, experience and in-depth knowledge of the market,’ explains David Beard, founder of Lendingexpert.co.uk.

‘Brokers can also speed up the process for you, and they’ll know which lenders are more likely to accept your application, taking a lot of the stress out of applying.’

Image credit: Future PLC/ Alun Callender

What’s the difference between a mortgage broker and direct lender?

A direct lender, such as a bank or building society, offers their own mortgages.

They can give you advice on their products, but they won’t tell you if a competitor’s mortgage could suit you better.

A broker works for you. They’ll do a detailed ‘fact find’ to get all the information they need. Then they’ll shop around, searching the mortgage market on your behalf.

Most importantly, they have inside knowledge of how lenders work. They know which are super smooth on service or running slow, and they stay up to date with constantly changing lending criteria.

They’ll find the best mortgage that you’re actually eligible for, so you don’t waste time on applications that get rejected and send you back to square one. Find out how much you could borrow with our mortgage calculator.

Are mortgage brokers independent or will they only offer mortgages from certain lenders?

Some are independent and can arrange a mortgage from any UK mortgage lender. This type of broker is called ‘whole-of-market’.

Others have access to a panel of lenders that represents the mortgage market, without including every single lender.

They are all bound by regulations so you can trust their advice and go to the Financial Ombudsman Service if you’re not happy.

Be sure to check whether your broker is whole-of-market or how many lenders they have access to before proceeding.

How much does a mortgage broker cost?

Advice from a broker ranges from completely free to thousands of pounds. How you’re charged will depend on the broker.

All mortgage brokers make money by earning a commission from the lender for introducing business to them.

However, some brokers won’t charge the customer any extra, so you’ll get the advice for free, while others will charge you a fee. This will be either a fixed fee or a percentage of the amount you borrow – for example, 0.5% on a £200,000 mortgage would be £1,000.

‘When arranging an appointment with a broker, you can ask what the broker fee is and at what stage it is payable,’ says Karen Noye, mortgage expert at Quilter.

‘A typical charge would be in the region of £495 but this could be different depending upon the advice required or complexity of a case. You wouldn’t normally expect to pay anything for the initial consultation.’

Image credit: Future PLC/ Colin Poole

How do I find a good mortgage broker? What should I look out for?

Word of mouth recommendations are a great start, so speak to friends and family first. Then check out online reviews.

Your estate agent might work closely with a broker and recommend them, but you’re not obliged to use their preferred partner.

When comparing brokers, as well as finding out whether they are whole-of-market and what their fee will be, it’s worth asking the following key questions:

• What is included in the service you offer? For example, will you apply for the mortgage on my behalf, deal with the admin and chase lenders?
• How quickly does your average mortgage application take?
• What do I need to get ready in advance (eg. documentation) to speed up the process?
• How do you prefer to communicate – email, text, phone call, in person?

‘If you find a broker who only communicates via email, but you’d prefer to meet in person, you might want to consider a different one,’ says Beard. ‘Understanding how your broker will communicate with you will help keep the process efficient and stress-free depending on your communication style.’

Some brokers have specialisms, such as helping the self-employed or those with credit blips, which could be invaluable if you have specific needs.

Pros and cons of using a mortgage broker

Pros

• You could access better deals than going direct to a lender
• Using a mortgage broker could save you time and stress
• A mortgage broker will help you find deals you’re eligible for

Cons

• There may be a fee for the service
• Not all brokers search the whole market

Do I need a mortgage broker?

You don’t need a mortgage broker, but they’re a great idea unless you’re confident about choosing the right product from the thousands on offer.

With a mortgage broker, you get a mortgage market expert on your side, helping you find the best deal, filling in the forms, chasing the lender and solicitor on your behalf, and holding your hand through the whole homebuying process.

This can be particularly useful for first-time buyers, self employed mortgage applicants and those with credit issues.

With thanks to Rachel Wait for her contributions to this article.

The post What is a mortgage broker and should you use one? appeared first on Ideal Home.

Do you dream of turning a rundown or derelict property into a home? You may need to take out a specialist renovation mortgage to fund such a project, unless you have a large lump sum to pay for the work.

You may have found an empty property in an amazing location with panoramic views that you want to restore. Or you might come across an uninhabitable property that you want to breathe life into. Whatever your property renovation project, you may need a specialist mortgage to meet the cost.

What is a renovation mortgage?

Image credit: Future PLC/Bridget Peirson

Most high street lenders only offer mortgages on properties that are considered habitable. So, if you’re buying a property not currently fit to live in, you’ll need to find a renovation mortgage from a specialist lender. The loan will finance the purchase of a property that’s derelict, in need of conversion, or uninhabitable because it’s without a working kitchen or bathroom.

Standard repayment or interest-only mortgages aren’t suitable for extensive renovations.

Chris Sykes, of the mortgage broker Private Finance, says: ‘If it is a large renovation then normal mortgages are not suitable as lenders are taking on risk they are not pricing for in this case, and you could run out of money and leave a property in a worst state than it was when bought, affecting the lender’s security and the property’s saleability.’

The important feature of a renovation mortgage is that it enables you to borrow the money you need for the work. You’ll receive the money in tranches rather than all upfront.

How does a renovation mortgage work?

Image credit: Future PLC/Simon Whitmore

With a renovation mortgage, you may be able to borrow up to 90% of the property’s value as it stands, depending on your income and circumstances. You should fund the remainder of the purchase from savings, other assets, or borrowing. The lender usually withholds a chunk of the money, and releases it in stages as the property is renovated. This is similar to a self build mortgage.

On completion of specific stages, and inspection by the lender’s surveyor, you could receive more money. Adrian Anderson, director of property finance specialists Anderson Harris, says: ‘The bank will want an element of control over when and how the money is released to pay for the works to ensure the money is used correctly. The money is usually released against the architect’s certificates/confirmation that different stages of the development have been completed or when the next stages are about to start.’

Bear in mind that the cost of restoring a building will rapidly add up. You need some savings, or other forms of finance such as personal loans, to pay for work between ‘stage payments’.

When taking on a project of this nature, you should also take out a specialist renovation insurance policy to protect your investment.

Will it cost more than a standard repayment mortgage?

Yes. A renovation mortgage rate will typically be one or two percentage points higher than a standard mortgage. This is because the risk to lenders is greater. There’s no guarantee that the work will be finished. The lender could be forced to repossess the property to recoup their debt.

It also depends on how much you borrow. Anderson says: ‘Due to the works going on at the property there will be development risks associated and therefore the banks factor this in with their upfront fees and the rate charged during the development period. These types of mortgages usually take the bank more time to administer at time of application as it has to carry out due diligence on the works taking place. These include checking planning permission is in place, checking the costings/timescales look realistic and carrying out due diligence on the contractor.’

What kind of properties qualify for a renovation mortgage?

Image credit: Future PLC/Tom Meadows

You can get a renovation mortgage on a vast range of “fixer-upper” properties. This covers properties from a listed building that’s fallen into disrepair to a timber shell without a roof. However, the range of mortgages you have to choose from will be far greater if the property to be renovated is habitable. That means it comes with a working kitchen and bathroom.

Where can I get this type of mortgage?

There is a limited number of lenders offering finance for complete renovations. Try lenders offering self build mortgages as a starting point. For example Ecology Building Society specialises in lending on energy efficient properties. Smaller building societies are often a good place to try.

Speak to a mortgage broker to find out about your options. This is a specialist area of the mortgage market and the solution may need to be imaginative. Working with someone independent who knows the market well is a good move.

Can a first-time buyer get a renovation mortgage?

Yes, in theory first-time buyers can get a renovation mortgage, and doing up a rundown property may appeal as a way to get onto the property ladder. However, they’ll need a deposit of around 20-25% of the purchase price, which could be a struggle to stump up unless they have enough saved.

What happens when the renovation is complete?

Once the renovation is complete, you ideally take out a mainstream mortgage on the property.

‘Usually at this stage of the process you can refinance based on the open market value of a property and take a more normal mortgage, and hopefully at a low LTV as this is when the gains you have made are realised,’ says Sykes.

The post Renovation mortgages: how do they work? appeared first on Ideal Home.

Featuring one of the standout prints of the year, the gingham cushion from John Lewis & Partners’ ANYDAY range, sold out in record time when it launched earlier in the year. And with a price tag of just £15 it’s easy to see why.

Now back in stock and ready to be snapped up in a jiffy, the cushion sporting one of the biggest home decor trends is available in three pared-back shades. The plaster pink colourway is giving us all the summer feels, while the blue option has a certain ‘Je ne sais quoi’ about it. The third colourway is a beautiful natural shade, perfect for those who prefer a more neutral feel in their homes.

John Lewis gingham cushion

Image credit: John Lewis & Partners

But it’s not just its inexpensive price that has made the gingham cushion from John Lewis & Partners’ ANYDAY range such a hit with a plethora of social media influencers and homeowners across the country. Featuring a pretty gingham print, as well as frilled edging too, it ticks off not just one, but two huge trends for this summer.

However big trends don’t usually come cheap.

Image credit: Projektityyny

At £68, this Wes gingham frill cushion from Projektityyny, has a more delicate frill to it and a slightly smaller print. Made from 100% linen it might be a more luxury offering, but costing over £50 more than the John Lewis dupe, it’s more of an investment piece than a payday pick-me-up.

John Lewis’s ANYDAY range has been a huge hit since it launched last year, bringing ‘quality you’d expect at prices you wouldn’t’. And offering such an on-trend homeware piece for such a low price, is a great example of how small changes, can have a big impact in your home.

Image credit: John Lewis & Partners

Layered up on a bed, or scattered as sofa cushions, the gingham goddess will elevate your home decor all year round, offering both bedroom ideas and living room ideas. Machine washable, any spills or stains from a box-set binge, or water-marks from an afternoon nap, can easily be removed.

Image credit: John Lewis & Partners

But don’t leave it too late to grab yours, as sales are already said to be soaring and it won’t be long until this bestselling is sold out once again!

The post This bestselling designer-dupe cushion from John Lewis will save you over £50 appeared first on Ideal Home.