Boris Johnson is expected to set out plans to extend the right-to-buy scheme to include housing association tenants, and enable people to use housing benefits to pay towards mortgages to boost homeownership in the UK.
The new measures where confirmed in a major speech in Lancashire today. Boris Johnson said ‘Just as no generation should be locked out of home ownership because of when they were born, so nobody should be barred from that same dream simply because of where they live now.’ The speech restated the government’s commitment to extending the right-to-buy scheme to housing association tenants. It also included suggestions that housing benefit could count towards mortgage payments.
Levelling Up Secretary Michael Gove said: ‘By extending Right to Buy and bringing forward the most comprehensive review of the mortgage market in decades, we are backing first-time buyers, breaking down barriers to homeownership and delivering on the people’s priorities.’
PM plans to extend right to buy scheme
The right to buy scheme was introduced under Margaret Thatcher’s government in October 1980 and allows anybody who lives in council housing for a certain number of years to purchase it for a discount of up to 70 percent. The new proposal plans to extend this to people living in properties owned by housing associations – not-for-profit bodies that rent low cost homes. There is currently a scheme in place for housing associations, but the maximum discount is limited to £16,000, while the right to buy scheme discount is currently capped at £87,000 (or £116,200 in London).
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According to The Times the Prime Minister will argue that the £30 billion in housing benefit that currently goes towards rent could help people secure and pay for mortgages. Housing benefits are available to help low-income or unemployed people pay their rent. A person is not usually eligible for housing benefit if they have a mortgage.
The Times report expanded that the plans are likely to be limited to a series of pilots for now, without additional government funding. So stark changes shouldn’t be expected soon.
The proposal has already been met with criticism from Labour leader Sir Kier Starmer in an interview said the plan is evidence the government is ‘completely out of idea.’ A version of the proposal was trialled in 2015 under David Cameron. Kier Starmer called it a ‘reheated’ idea.
‘For people who want to buy a house, affordable housing, this is not the answer. They know it’s not the answer – I don’t think this is actually going to happen,’ he said.
However, some industry experts are optimistic that an extension to the scheme could help aid first-time buyers. However, they warn that there are still plenty of hurdles, including the cost-of-living crisis, to housing becoming more affordable in the UK.
‘The government’s introduction of the Right to Buy scheme is welcomed,’ says David Hannah, Group Chairman of Cornerstone Tax. ‘It is a great initiative that will aid buyers (especially first-time buyers and those on low incomes) in purchasing a property. However, I think rising interest rates, inflation and the cost-of-living crisis remain serious hurdles in preventing housing from becoming affordable for all Brits.’
Bring texture, warmth, playfulness, and the outdoors in with these seven ways to decorate your home with rattan.
Enter: rattan. Yes, rattan is a trend, but it is a trend with staying power. Rattan falls into the macro trend of biophilic design, and decor that connects interior spaces to the natural world rarely goes out of style. Plus, rattan is lightweight, durable, sustainably produced, bio-degradable, and more affordable than other types of furniture, so it is a material that we can really get behind for the home.
Where did rattan come from?
Let’s start off with what rattan is exactly. Rattan is a type of naturally-renewable palm, which is most commonly found in the tropical jungles of Southeast Asia. Rattan is known for its hardy nature; it grows fast and tall and is a strong type of wood, in spite of being incredibly lightweight.
Rattan became popularized for furniture and household items in 17th and 18th centuries. At that time, it was touted for its ability to withstand hot climates and resistance to pests. In the 19th century, rattan flourished in the British Empire, and by the 20th century, rattan furniture began to show up in the United States as a result of inter-continental trade and travel.
More recently, rattan was trendy in the 1970s and 2019, and today, the versatile material is having a major moment once again.
1.Take the season into account
The look and tone of rattan—which ranges from beige to yellow to golden-brown—lends itself naturally to warm weather and beachy interior design. That said, you can pretty easily style rattan for any season, to mesh with a certain design style, or to create a desired ambience. For example, putting plaid cushions and a wool throw on a rattan chair will immediately take the piece from beachy to rustic.
If you live in a colder climate, you can pretty easily go the rustic route using patterns like plaid, Ikat, buffalo check, and patchwork, and materials like wool, stone, brick, and other unprocessed forms of wood. You can also pair rattan alongside Scandinavian design. Think a rattan chair paired with a sheepskin throw, linen textiles, glass, and plenty of muted neutrals and pale woods, such as ash and beech.
TIP Like wood, rattan stands up well to stains and paints. If you’re finding it tough to merge the golden look of rattan with your personal design style, a fresh coat of brush paint, spray paint, or stain can give your rattan a custom and contemporary—albeit non-traditional—look.
2. Use it in small-ish doses
In interior design, rattan shines best as a statement piece—not just because it is indeed a trend that probably will cycle out of popularity at some point, but because too much rattan can make your space look dated.
To get rattan right, make sure to mix in plenty of contrasting aesthetics. A good rule of thumb is a 90/10 proportion; 10 percent rattan, alongside 90 percent other materials, patterns, colors, and even houseplants. Using just a little bit of rattan in your space will have a subtly uplifting effect, without overwhelming the room.
If you have to pick just one or two rattan pieces, go with rattan dining chairs, bar stools, or a single statement chair. If you’re working with a larger room or an indoor-outdoor room and feel like the space can afford a little bit more rattan, rattan baskets or rattan pendant light fixtures are a great way to add rattan in a subtle way.
3. Pair it with other biophilic elements
Because rattan has such a natural, neutral colorway, it pairs beautifully with greenery, botanicals, nature-inspired prints and patterns, and other natural textures and textiles, such as linen, jute, and wool. These sorts of biophilic elements can be used to compliment rattan and tie it into the rest of the room.
Rattan also looks best when doused in sunlight. So, when you’re laying out your rooms and deciding where to incorporate a rattan furniture piece, you can feel free to be heavy-handed with rattan in spaces that get plenty of natural light and/or indoor-outdoor spaces.
4. Use rattan to in outdoor and indoor-outdoor spaces
Rattan is really well-suited to outdoor spaces. (Think patio furniture.) As such, it’s also really well-suited to indoor-outdoor spaces, which are especially trendy right now. Just as you would when styling rattan inside of your home, make sure to mix in plenty of opposing textures, such as stone, iron, cement, and wood when using rattan in an outdoor space.
If you are using rattan in an outdoor format, there are a few things you should keep in mind. In general, rattan is best used in warm and dry places. If your rattan is exposed to water—even a little bit of water while cleaning up a spill, for instance—dry it out in the sun or with a hair dryer on low heat. This will prevent warping. You should also be cautious of exposing rattan to direct sunlight. Exposure to direct sunlight can cause the fibers to become brittle and weak.
5. Lend playfulness to a formal room
If you’re looking for a non-traditional, unexpected way to incorporate rattan in your home, look no further than formal spaces, such as the dining room or home office, which are areas that tend to be a little lower in visual energy compared to the rest of the home.
Although you would necessarily think of rattan for a formal dining room, it can work. For instance, you can pair sculptural rattan dining chairs (which are more comfortable than you average dining chairs, on top of being vibrant and beautiful), alongside an angular dining table in a darker wood. You could also go with a sleeker material for your dining room, such as glass or marble, if you’re a fan of juxtaposition.
In a home office, rattan can be used in an accenting way to bring some warmth and texture to the room. Think rattan storage baskets, a rattan lighting fixture, or even a rattan garbage bin.
6. Use cane or wicker, which are derivatives of rattan
If you like the color and texture of rattan furniture, you might also like cane furniture. Cane is produced from the outer shell of the rattan stock. The cane material is then woven into a variety of patterns and is used to create furniture. Cane furniture is eco-friendly, lightweight, and easy to clean.
Wicker can also be woven from rattan. If you like the woven look of wicker, consider using it in your outdoor space or indoor-outdoor space. Keep in mind that wicker tends to make a big statement, so if you’re going to use it in your home, use it as a one-off decorative accent—such as a wicker basket to store throws and remotes—or as a singular statement piece. One large wicker piece is more than enough for an interior space.
7. Consider tried-and-true color and material combinations
Because rattan is relatively neutral in appearance, there are countless color combinations that will look striking and natural alongside rattan. If you’re not sure where to start, you can draw inspiration from these five tried-and-tried color and material combinations.
Costal. Colors: white, oatmeal, and light blue. Materials: linen, cotton, bleached wood, white-washed shiplap, and white-washed brick.
Nautical-ish. Colors: blue monochrome and white. Materials: velvet and gold metallics.
Glamorous. Colors: charcoal, muted gray, and gold. Materials: glass, crystal, and gold metallics.
Bohemian. Colors: white, peach, pink, and mustard. Materials: mid-tone wood, ceramics, and macramé.
Masculine. Colors: white, black, and neutrals. Materials: dark wood, exposed brick, iron, and leather.
Earthy. Colors: Ochre, beige, and brown. Materials: warm wood, dark wood, and gold metallics.
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.
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.
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’.
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.
