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Month: August 2017

Essex Countywide Business Awards 2017
August 31, 2017

CLS Money shortlisted for two local business awards

Awards / News Release

CLS Money, an award winning, whole of market UK mortgage broker, is delighted to announce that it has been nominated for two prestigious awards at the Essex Countywide Business Awards 2017.

Harley Kimber, Client Relationship Executive, CLS Money, is a Finalist in the ‘Apprentice of the Year’ award, having just completed his apprenticeship, and the company is also up for the ‘Growing Business of the Year’ award, following its record-breaking year.

Clayton Shipton, Managing Director, CLS said: “As a responsible business with a vested interest in the local community, the Countywide Business Awards are a great way to recognise the success and achievements of local organisations in Essex, and we are extremely proud to be selected as Finalists.”

A black tie presentation dinner dance event will be held at The Cliffs Pavilion in Southend-on-Sea on Friday 6th October, where this year’s winners will be announced – wish us luck!

National Mortgage Adviser Awards - Best Adviser East
August 23, 2017

CLS Money nominated for National Mortgage Adviser Award

Awards / News Release

CLS Money, an award winning, whole of market UK mortgage broker, is thrilled to announce that it has been selected as a finalist at the 2017 National Mortgage Adviser Awards in the ‘Best Adviser East’ award category.

The NMAs aims to champion the UK advisory community, as opposed to lenders, intermediary firms and providers, by recognising the best and most dedicated mortgage and protection advice firms amongst it.

Clayton Shipton, Managing Director, CLS said: ‘’The past 12 months have been the most successful in the company’s six year history. Being chosen as a finalist for this award is testament to what we have been able to achieve to date, and I couldn’t be more proud.”

Raising a mortgage deposit
August 8, 2017

Getting on the property ladder

First Time Buyers / Mortgage

Help with getting onto the property ladder

With increasing numbers of people struggling with raising a mortgage deposit to purchase their own homes, many are having to turn to their parents, relatives or close friends, to help get them onto the property ladder. If you are thinking of accepting financial help from a family member or close friend to help fund your home purchase, there are a number of ways in which they can help, which we have handily compiled for you below.

Receiving monetary gifts

You can receive a sum of money to form all or part of your mortgage deposit. However, to improve your chances of being accepted, mortgage lenders prefer it to be an outright gift from a family member, with no requirement for future repayment – but watch out for inheritance tax!

An individual can give away £3,000 per year tax free, and carry over any of their leftover annual exemption from one tax year to the next, up to the value of £6,000. However, if you are due to be married, you can also give receive an additional; £5,000 if you are the giver’s child, £2,500 if you are their grandchild or great-grandchild, and £1,000 for anything else.

Borrowing money

If your family member or close friend has a few pounds tucked away, there are a number of ways in which they can help you and benefit at the same time!

  • Family Springboard Mortgage: A popular option with families, enabling a relative to provide 10% of the purchase price as security. But, if you keep up your mortgage repayments, they will receive their money back with interest!
  • Joint Mortgage: Your family member or close friend legally own a share of the property and are jointly liable for the mortgage repayments.

Getting a guarantor

To help improve your chance of being accepted for a mortgage, a relative or close friend can either guarantee a proportion of / or your entire mortgage debt. In order to do so, they will need to:

  • Be able to cover any of your missed mortgage repayments
  • Pay their own mortgage
  • Have a number of years left in employment

However, if they are already a homeowner, acting as guarantor for your mortgage could result in you having to pay an additional 3% in Stamp Duty Land Tax!

Buying from family or friends

If you want to buy a property belonging to a relative or close friend, they can sell it to you at a discounted rate from the market value. This is known as a concessionary purchase, and many mortgage lenders will accept this and either base the value of the property on the agreed purchase price, or accept the discount as the buyer’s deposit.

Need help?

As expert mortgage advisors, we can help talk you through all of your available options and ensure that you get the right mortgage deal for your mortgage deposit type. We will also complete all the necessary paperwork for you, and liaise with your lender, estate agent and solicitors to ensure that your application is a complete success!

Bridging loans for homes
August 5, 2017

Bridging loans for homes

Bad Credit / Bridging Loans / Buy to Let / Moving Home

Bridging finance

Bridging finance provides a speedy, short-term solution for individuals looking to quickly complete the purchase of a property. Bridging loans are unsurprisingly popular with landlords and property developers looking to either fund a property investment, buy to let or development. But, they are also becoming increasing popular with homebuyers wanting to unblock property chains and secure their dream homes.

What are the advantages to bridging loans?

There are a number of potential benefits to using bridging finance for your short-term finance needs including:

  • No credit checks
  • Quick turnaround time (often arranged within 24 hours)
  • Daily interest rate
  • No early repayment charges (on some schemes)

Lenders will however require:

  • A completed application form
  • Proof of address and identification
  • A copy of your buildings insurance policy schedule – We can of course arrange all of this for you!

Is there an alternative to bridging finance?

If you decide that a bridging loan isn’t the right choice for you, then there are other alternatives:

  • High LTV Mortgage: A High loan to Value Mortgage with no early redemption charges, should enable you to make a large repayment without incurring a penalty.
  • Let to Buy Mortgage: If you have found your dream home but can’t wait to sell your current property, or are struggling to get the price you want for it, a Let to Buy Mortgage will allow you to buy your new home, whilst you’re waiting to sell your existing one.

Where can I get a bridging loan?

If you are considering a bridging loan, make sure you have a clear repayment strategy in place first, which might include; getting a residential or buy to let mortgage or selling the property altogether.

As expert mortgage brokers we can help advise you whether a bridging loan is the right solution for your individual needs and circumstances, or if an alternative finance option would be more suitable.

Some of these products are not regulated by the Financial Conduct Authority