In June 2017, The Grenfell fire tragedy shook the country, 72 people died, and hundreds affected. Suddenly, fire safety issues impacting thousands of blocks of flats were exposed. Building controls have been slack for decades and light was shed upon the construction sector who have a history of building cheaply and quickly for maximum profit margins.

The building was covered in flammable cladding causing the fire to spread quickly and easily. Since Grenfell Mortgage Lenders have proceeded with caution when considering lending on flats in tower blocks, especially when the block has cladding. Their concerns directly led to the introduction of the EWS1 (External Wall Survey) in December 2019. The EWS1 was initially recommended for residential blocks of seven stories and above and was meant to assess whether a block has been built using combustible materials for insulation or cladding. Once the survey has been completed an EWS1 form may be issued assuming the building is safe.

EWS1 – Problems

In short, the EWS1 sounds like a great idea. It does however come with it’s own set of issues and stumbling blocks. Mortgage lenders are generally refusing to lend without seeing the EWS1 Form. Leaseholders who want to move or re-mortgage are finding it incredibly difficult to get the freeholders to pay for the inspection to happen. The inspections themselves can be very costly and often are unaffordable for the freeholder to carry out. Even when a freeholder has been in a position to carry out the inspection, they often take a long time to arrange and leave leaseholders in an effective state of limbo.

There is also a significant lack of surveyors qualified to carry out an EWS1 inspection, with only a reported 291 fire engineers qualified to inspect a building. Peabody Housing Association has even told leaseholders it could be 10 years before all it’s blocks have been surveyed. 

Since January 2020 safety advice was tightened by the Government causing lenders to ask for evidence of safety for almost every modern flat applied for. Even if there is a hint of cladding such as weatherboarding in a small area evidence is asked for.

Most leaseholders are still not aware of what work if any the building their flats are in need work, or how much this would cost them. The EWS1 situation is really one with no reasonable solution or end in sight. Without the EWS1 Form a property has essentially become un-mortgageable and un-saleable.
The human cost of these cladding issues are not to be forgotten either. Those leaseholders who are trying to sell their properties but are not able to due to the cladding and EWS1 are reporting more mental health issues as you would expect. Plans such as marriage, children and many other situations are basically on hold until further notice.

We work with sportsmen and women throughout the entirety of their careers. Whatever sport you play professionally, whether you are a footballer, athlete, Rugby player or professional coach, getting a mortgage can be a little more complicated than you might expect. 

Our mortgage team can help you find the best mortgages for sport professionals and get you the property loan you require. Specialising in sports professionals’ mortgages means knowing how sports players income is made up, from short term contracts to appearance bonuses and win bonuses as well as subsidiary income from advertising and TV work. 

We work with players receiving theorist professional contract through to clients nearing sports retirement age that may be moving into other sports related occupations such as paid TV or coaching work. 

Mortgages for sports professionals include homes for you and your family to live in, second homes you will stay in occasionally or property investment mortgages (Buy to Let) for property you will rent out. As your career develops there may be additional sources of income that can be used when applying for a loan as well as future plans that you may wish to consider. 

Professional athletes, despite their potential high net worth, are often viewed as a lending risk. This is often because of the short-term fixed contracts most clubs will offer. Depending on the nature of their sport, some professionals can be highly susceptible to injury that may cut their sporting career short or impact the amount or nature of remuneration they receive.

Sporting careers tend to have a shorter shelf life than others. Many sport professionals retire in their 30’s or 40’s, or even earlier in some cases. Some mortgage lenders may be willing to lend to sport professionals based on their age at the time of applying for the mortgage and their predicted retirement age. 
Many sportspeople also receive additional sporadic income from factors such as bonuses, sponsorship and appearance fees. This can also prove difficult for a standard mortgage lender to assess.

When you are looking for a mortgage as a sports professional, lenders are likely to consider the following points:

How long you have been playing professionally? 
Many lenders will want to see that you have been a sport professional in your chosen field for at least two years. This allows them to assess income over time. However, some lenders many offer you a mortgage deal based on anticipated income if you have just been signed by a new club or sponsor.
​
Portability 
Many sportspeople travel regularly as part of their role, moving around nationally or internationally. Therefore, the portability of a potential mortgage deal is something that could be important, flexibility is key if you may need to relocate.

Residential Status
If you are an overseas citizen and have moved to the UK to play professional sport, you could initially face difficulty getting as UK mortgage deal as you may not have any UK credit history. 

If you or a family member is a professional sports person, it really is imperative you take advice from an experienced Mortgage Broker. We have built up a wealth of experience across the UK within a wide variety of Sports and stages of career. Whatever Sport you are involved with please do not hesitate to get in touch to see how we can help you. ​

Tomorrow, we will have been operating for three weeks. In this time I can say that I have experienced mixed emotions. There’s been doubt and frustration as well as joy and satisfaction but overall I can genuinely say that the process so far has been extremely rewarding in more ways than one. 

Leaving the security of a large company with a set salary and well paid commission as well as all the additional perks like the company car and private health care was scary enough but leaving it behind to set up a new business with all the financial commitment and personal risk involved could of been nothing short of terrifying. 

On the day I left I received comments like “You’re brave” and “Is now really the right time to be doing this?”. For a second I maybe questioned what I was actually doing but it was literally a second.

I knew that the effort that both myself and Frances had put in to creating our brand, the website, the software the marketing campaign would pay off and sure enough on the first day before we had even put up our first “Now Open” board the phone rang with a homeowner asking us to visit their property that had been on the market with another agent for 3 months with no offers. That property is now under offer through Mockford & Hunt to a buyer who is also under offer through Mockford & Hunt!
​ 
Sellers and buyers just want helpful, proactive service and if you take the time to listen to people it makes the job far easier. It’s not about estate agency, its simply about the best parts human nature, listening, understanding and actually caring about their move.

Mortgage interest rates are on the rise. It is imperative to act now to make sure you are not paying more interest than necessary. Understanding the impact increased rates will have on monthly mortgage payments and your budget is very important and should not be ignored.

The last four months have seen mortgage rates increase month on month. The average Two Year fixed rate for borrowers at 85% now sits at over 3% (3.12% according to the latest data from Moneyfacts UK). 
This is an increase of 1.01% since July 2020 (when the average was 2.11%) The 5 Year Fixed rate deals have also been impacted with rate rises and are sitting at an average of 3.25% up from 2.34% in July 2020.

The situation for buyers with a 10% deposit has also seen increases to the interest rates as well as a significantly reduced pool of lenders offering 90% products. If you have a 10% deposit you are now looking at an average interest rate of 3.76% for a 2 Year Fixed Rate and 3.98% average for a 5 Year Fixed Rate.

There is no sign that the rates have reached their peak. As we have not seen the conclusion of the external factors assisting the property market. Once we move into 2021 we will know more about how the housing market will react and therefore will either see lenders be open to lending at higher loan to values or not as well as where the interest rate levels will be.

There are many factors contributing to these rate rises but in essence Mortgage Lenders are concerned about the level of risk they are undertaking at higher LTV (Loan to Value) mortgages. Ultimately the lenders are protecting themselves and their customers from fluctuations in the market and mitigating risk against a situation when a customer could find themselves in negative equity. No lender wants to repossess properties from their clients who have found themselves in circumstances meaning they are unable to pay their mortgage.

Concerns over unemployment is one of the main points lenders are worried about. Most lenders will not include furlough income in affordability calculations already. There will undoubtedly be an increase in job loses when the furlough scheme comes to an end and the lenders need to lend responsibly and make sure they are not putting their customers in bad financial situations.

The current Stamp Duty holiday (due to end in March 2021) could also have an impact on property prices and be propping up the high prices we are still seeing across the UK. Lenders will be worried that when this comes to an end housing prices may be affected negatively and therefore houses selling for less.
​
If you are planning on getting onto the property ladder then now is a great time, before we see rates go up any higher. Take advice, discuss what your options are and take advice to find out what is best for you. 

​Starting a new venture should always be a challenge.

​Whether it be business or lifestyle, trying something new should create some level of anxiety but this feeling should, at the same time be outweighed by the immense feelings of excitement. 
 
Having been an estate agent since my early twenties I can confidently say that I love the job. The level of satisfaction felt when you know that your input has directly helped someone on their journey is almost indescribable. 
 
Sadly, when working for large companies, the pressures of targets and generating income can sometimes mean that you lose sight of why you should be actually doing the job in the first place and contrary to popular belief, estate agency has very little to do with houses! This was really highlighted to me recently when conducting job interviews for new staff. One young man expressed his interest in houses as opposed to the second applicant who spoke about their  passion for helping people...

To say that this year has been strange is an understatement. The Covid pandemic has had a profound effect on almost every aspect of everyday life and the housing market is no different. It was partly during lockdown that I started to have thoughts of branching out and going alone. Clients, buyers and sellers really appreciated the time that I was able to spend in having conversations. By really getting to know people I was able to be even more genuine and credible in my actions to get things moving.

Having discussed and talked it through with family friends, I decided to start the ball rolling. I confided in a trusted colleague who I thought may have been feeling the same and together the dream started to become a reality...

As we move into September many people will be finding their payment holidays coming to an end, be it overdrafts, credit cards or mortgages. With the current economic climate looking turbulent to say the least and unemployment highly likely to rise throughout the rest of 2020 as the government’s furlough scheme finishes at the end of October.

Borrowers looking to get ahead of the curve and avoid any unnecessary interest could save themselves some money by switching to a new product with a lower interest rate. The mortgage is extremely likely to be the largest monthly outgoing for a homeowner and therefore making sure you have the best deal available is imperative when looking into cost savings. With mortgage rates remaining at incredibly low levels there has never been a better opportunity to make savings.

We would carry out a free mortgage health check to see if a client would benefit from switching mortgage products, as there are a number of factors to consider when working out what the cheapest options is going forward.
 
The mortgage market continues to be a difficult arena to navigate with lenders criteria changing regularly. Those that have taken a mortgage payment holiday or been on furlough may find it more difficult to remortgage than they have previously. Some lenders have started to not accept furlough as income for a mortgage application for example. Borrowers who are able to resume full repayments are encouraged to do this as quickly as they are able, while consumers taking payment holidays or reduced payments should keep in mind that interest continues to be accumulated during this period.

As part of our mortgage health check process we will be able to advise on what options are available and whether or not this would be beneficial in the long run for the client.

And for those that now need to take a mortgage payment holiday these remain open for applications until 31 October 2020. Consumers who are struggling to meet mortgage repayments should contact their lender immediately to discuss their options. Those who are struggling with debt can also get information and support from Citizen Advice or a free debt charity.

 
The Devil is in the detail
 
The larger higher-end estate agents which are online won’t benefit from the local knowledge and equally local agents that charge higher fees may deter those people from selling their property this is where a local online agent with local knowledge has a massive benefit.
 
This brings me onto business processes and e-commerce it is vital that this agent has an effective online website and also effective business processes to deal with all the aspects of buying and selling a property.
 
For example, anti-money laundering checks which are a requirement by law can all be done digitally and easily through third-party website customers details can be securely stored and checked and the customers can be verified before the properties go to market.
 
Added Value
 
There was also a great opportunity for ancillary revenue when selling property things like EPC is energy performance certificates can be booked online again using a third-party. 
 
Extra value things like 3-D floorplans or premium listings or featured properties can also be sold along with things like viewing packs. 
 
Solicitors referrals also a great way of generating ancillary revenue and also add the benefits of having solicitors that you know and trust dealing with the purchase and sale respectively.
 
A Customers Journey
 
Let me talk you through a customer’s journey and the key steps of selling their property number one customer will contact us by the website or phone call and they would want to book a valuation. 
 
Number to the agent will make contact with the customer and arrange an appropriate time to visit them at the property during this visit they will appraise the property and give the owner an idea of the valuation and also highlight the key benefits our business can bring into selling their property.
 
It’s very important the agent emphasises our track record of customer service and demonstrates our philosophy when dealing with them. We can get the property sold for a reasonable price and still deliver great service.
 
You would think the commission price would be paramount in closing lease deals it really isn’t yes the customer wants to get reasonable value but more importantly they want to trust the person involved in being able to sell the house effectively with the minimal hassle that’s the key part gaining the customers' trust without gaining the customers trust you will never be able to list and sell the property.
 
Therefore, don’t slate the competition or say how poor other people are. We simply focus on how good we are what we provide and we let ourselves shine amongst the competition other agents that resort to these types of tactics often look desperate and very poor themselves.
 
The customer has to sign a contract we digitally produce these contracts using third-party software. This lays out the terms and conditions and it also saves time and money because its digital. Once signed, the property can be listed what’s important here is to choose the right weather conditions sunlight I’m on portly use excellent photographic equipment.
 
You would be surprised the number of listings that I see on Rightmove that have been taken using poor photographic equipment with the wrong type of lens, for example, someone has used a smartphone to take photographs of the property this is a very unprofessional and poor practice we use proper photographic equipment with the correct type of wide-angle lens to do the property justice and to make sure prospective customers can get a feel for the place without having visitors.
 
Having a decent floor plan for the property is essential as is having an accurate description which highlights the key benefits of the property and encourages someone to want to view them, therefore, writing this description is imperative.
 
We believe the customer is always right and that’s why the customer is always the person to authorise the advert we should have a draft preview of the advert and make sure they are happy with the contents before it goes live, after all, it’s their property and we want to make sure they are comfortable with how it’s been marketed and sold.
 
Once the property is live, we will relay any interest for viewings to that customer and arrange for viewings to take place. 
 
Once the viewings have taken place, we make sure both positive and negative feedback is given back to the customer so they are aware of what people think of the property and to help guide realistic price expectations. 
 
We try to interact with our customers every week and provide an interactive marketing report to say how many people have looked at the property online and what interest it’s getting.
 
All of this information feeds back into a loop to see if the property should be marketed differently. Should the price be adjusted? Could anything be changed to attract more people? 
 
The Price Is Right
 
I think the property should be priced correctly from day one I think adjusting the price afterward can have an adverse effect. 
 
It is more effective to use a lower-end guide price, to begin with that certainly would be my preference for marketing or selling any property that I own.
 
When a property has its price changed frequently and has relisted on multiple agents it smells of desperation and sends out confusing messages. This intern will encourage people to put in low offers and they won’t take the sellers seriously.
 
 even if a property has had very little interest if you can make the buyer feel they are lucky to be viewing the property and it has had a lot of interest and sensibly priced this will help achieve sensible offers for the property.
 
Conversely, a property that has been grossly overpriced i.e. sold for offers of 500,000 when it’s only worth 400,000 not only will the property not get much interest but those viewing it will probably actually end up offering even lower amounts and when you show that type of discrepancy in the price it makes the buyer wonder why the property has been priced so poorly in the first place.
 
In this case, it will be much more sense sensible for the buyer to put the property on a Guide price of two 425,000 this will encourage people with a budget of 400,000 to look at the property and maybe those with a higher budget also to look at the property and make offers.
 
Conclusion
 
Hopefully, this article is giving you some insight into the type of things that we need to do in running an estate agent on a day-to-day basis and the type of philosophies that must be employed to ensure you have great customer service.
 
Also, you can see the work that goes into the listing, marketing, selling, and completing on a property. 
 
To build a successful estate agent, you need to gain a customer’s trust. Make sure your business is both efficient and friendly. Deliver the service and grow your reputation.

Lenders are reported to have struggled to deal with a flood of applications from first-time buyers. If buyers are unable to climb on to the housing ladder, or even move up with their next purchase, this could reduce demand and exacerbate any fall in prices.

Most banks have stopped deals with a 10% deposit, the industry fears a sharp fall in house prices and now HSBC is the only high street bank offering mortgages with a loan-to-value ratio above 90%. These deals are limited in number each day, and certainly from our experience are incredibly difficult to acquire. It may be recommended that the client attempts to go direct to HSBC to try themselves.

Why are Banks increasing the deposits buyers need?

Banks are withdrawing lower deposits due to fears they will lose money on mortgages if prices plummet and repossessions do not cover the money lent. They are basically asking customers to put more ‘skin in the game’ to mitigate their exposure to loss.

What is availability of products?

Banks are now squeezing out borrowers who can stump up only a 15% deposit for a home, data shows. The number of mortgage deals available to borrowers with a 15% deposit has almost halved from 664 to 357 since March, according to analyst Moneyfacts. 

Even deals requiring a deposit of 20% have fallen from 714 to 571. The crunch comes amid fears of a house price crash, which could limit the money banks can recoup if they need to repossess homes.

TSB has become the first big lender to axe their deals on all home purchase, remortgage and shared ownership products with a loan-to-value ratio of 85%. 

What about House Prices?

Nationwide Building Society has predicted house prices could fall by 14% in 2020. Currently we have not seen a big drop in prices due to the limited supply of properties which seems to be propping up the prices at the moment.

​Two-year average mortgage rates have fallen to new lows, as choice at higher loan to values (LTV) remains limited. Rates now stand at 1.97% on a typical two-year fix, analysis by Moneyfacts. It is the lowest level in a year and compares to 2.49% in June 2019. The fall in rates is largely because the number of higher Loan to Value (LTV) products has fallen dramatically since the UK went into lockdown.
 
The higher LTV rates are usually higher, so without them the average has naturally decreased. Lenders that have been offering higher LTV mortgages in recent weeks have found they have been overwhelmed with demand. They have even limited availability to customers and brokers alike to makes sure they are not overwhelmed.
 
Hopefully more lenders will be able to re-enter the higher LTV area making more options available to borrowers. However, this will mean the average rate will begin to increase again. If you are in a position to look at your mortgage options, now would be a great time.
 
The number of additional mortgage products coming to the more market in June has flat lined. Product availability plunged by 2,656 between March and May as the UK and property market was in lockdown, according to Moneyfacts.co.uk. Between May and the beginning of June lenders started to widen choice by adding 244 deals to the market. However, this trend has not continued during the rest of June. Lenders have been particularly cautious around reintroducing higher LTV mortgages.
 
This is particularly disappointing to first time buyers who are already suffering from low savings rates and now extremely limited higher LTV mortgage products. There is huge demand for these type of mortgages, although lenders have an appetite to lend, keeping the mortgage market moving, the demand has been too much for them and caused most to take a step back to take stock of what the future may look like.
 
Many households have suffered over the last few months with reduced income, lack of job security and general upheaval. Soon we will see the first batch of mortgage holidays come to an end and potentially an injection of customers wanting to assess to current mortgage world.

One of the most obvious changes we have seen from mortgage lenders is the restrictions on applicants’ income and affordability.

Many employees rely on elements of income other than their basic salary, such as commissions and overtime. Lenders will use varying % amounts of additional income an employee receives from 100% to 0%, this can have a major impact on an applicants’ total loan available.

Since the Coronavirus outbreak we have seen lenders significantly adjust their criteria around affordability in general. The most significant challenge is proving to be when an applicant has been ‘Furloughed’, if you are furloughed by your employer, it means you're being sent home, but will still receive 80% of your salary by the Government, up to a maximum of £2,500 a month. Most major banks will still lend to workers on furlough, but many are assessing lending on a case-by-case basis. Many lenders will now only accept an employees’ furlough pay rather than their normal salary amount. Some lenders have now started asking new customers on furlough to provide letters from their employers confirming they will indeed be brought back to work.

Case by Case Basis
 
The term ‘Case-by-Case Basis’ is one that is becoming synonymous with mortgage applications. It means that the lender will review each individual application on it’s own merits. This is particularly important when an applicant has income made up from commissions and overtime as well as basic salary. Basically, lenders are looking at the industry you work in and deciding how your industry will be affected by the impacts of coronavirus.
 
An example would be a car salesman whos’ commission makes up 70% of earned income. One lender will not take the commissions earned at all, another will take 65% of the commission amount and another will not take any of the commission if the applicant has been furloughed. It is safe to say that there is no one size fits all.
 
Further pain is dealt out to those applying, as the time taken for the lenders to assess cases has increased significantly, making the applicants sweat before a decision is made.
 
This will leave a huge number of employees (who have been furloughed or not) in a state of flux. Knowing what the right thing to do is difficult to say the least, and will often require us to discuss a case with a number of lenders before we are able to recommend the best solution before going forward.