Premier Accounts

Better Business in Manchester

Time to take advantage of record low property finance rates?

With rates as low as they have ever been, lenders are competing to offer ever better deals, resulting in opportunities for well-informed borrowers keen to secure mortgages on the best possible terms.

Property and the future

Owning property is a quintessential part of business. It is difficult to avoid making property finance decisions. Some are inevitably commercial. But others concern personal investments.

Through our partners we are able to offer comprehensive borrowing advice with confidential, professional responses for individual circumstances.

One area where many business people see substantial opportunities is the buy-to-let sector. This has shown impressive growth in the last few years. In parallel, there has been an ever increasing choice of mortgage product providers.

Professional partner

Premier Accounts works closely with Professional Mortgage Services (PMS) to offer our clients access to a service designed to match the most relevant products to their specific circumstances and requirements, at a time when lenders' criteria and rates vary considerably.

Formed in 1999, PMS is one of the UK's leading mortgage brokers. They often have access to exclusive products and due to the quality and quantity of business placed with lenders, their 'buying power' often enables them to get cases agreed outside of normal criteria. All of their initial advice is produced in the form of a report, which is produced free and without obligation.

PMS can advise on both residential and 'buy to let' lending. For the latter the company offers a Portfolio Management Service.

Taking advantage of low rates

Current low interest rates make the present time ideal for many borrowers, explains PMS' Richard Levell.

"You would be forgiven for thinking that mortgage pricing cannot get any lower, with products currently starting at around 1.00% for residential lending and around 1.40% for buy to let products. However, we are seeing lenders cutting down their rates even further to fight for market share" he says.

Interest rate trends and expectations

"It is always worth looking closely at likely interest rate trends before committing to a new mortgage product," he adds.
"Whilst inflation is still well in excess of its 2% target, the failure of wage growth to keep up with rising costs has helped contribute to reduced growth forecasts. Consequently, there remains pressure on the Bank of England to maintain Base Rate at its record low level, particularly with the uncertainty surrounding 'Brexit' likely to remain in the background for some time."

'Top-slicing' for buy-to-lets

"The new 'buy to let' lending regulations introduced at the start of this year have seen lenders tightening their criteria, with many borrowers now finding that they are unable to secure the same level of funding which they might previously have been able to access. At PMS, we can look to maximise a client's borrowing capacity as we work with a number of lenders who will allow 'top-slicing.' This means taking into account the client's personal income, as opposed to calculating the maximum loan based solely on the rental return provided by the property itself."

"For maximum advantage, we work closely with Chris and the Premier Accounts team who can optimise the client's tax position," he explains.

Large Loans

Although the mortgage market as a whole remains dynamic and very competitive, some high net worth clients are finding their options for loans in excess of £1,000,000 are restricted, with many lenders in this area typically demanding greater deposits and offering higher rates, with greater set-up costs. Richard was keen to emphasise that this is another area in which PMS can provide expert advice and often secure more favourable terms:

"Besides working with the more widely known 'high street lenders,' PMS have close relationships with a number of investment banks and specialist mortgage lenders who will often provide a bespoke approach to underwriting larger cases, taking into account the borrower's assets, investment income and so on."

From start to finish...

Richard continues, "Our goal is to provide the best and most well-informed mortgage advice, not only in terms of the arranging of the initial loan, but throughout the lifetime of the mortgage."

"That is why we provide an Ongoing Mortgage Management service, whereby we will review each client's mortgage arrangements on an annual basis and five months prior to the expiry of their current product. This is designed to ensure that each client will benefit from the best terms available, throughout the entire term of the mortgage."

Remortgage evaluation

"If your current mortgage product is reaching the end of its fixed or discounted rate period, our remortgage evaluation will help to determine the most cost-effective remortgage option, benchmarking the best offer from your existing lender against the most competitive alternatives from the wider market. All costs and benefits are set out clearly in a free, no obligation report."

He adds, "If you would like to discuss your requirements, regardless of your situation or circumstances, please feel free to contact me directly, or get in touch with Chris Williams and the Premier Accounts team."

Richard Levell, Professional Mortgage Services Limited

Premier Accounts