Considering a Mortgage Payment Holiday – Please Think Carefully

Following Boris Johnson’s announcement regarding three-month mortgage payment holidays, lenders have been inundated with enquiries from concerned borrowers.

Mortgage Payment Holiday

But is a mortgage payment holiday the best solution during the current crisis?

On the face of it, a mortgage payment holiday might sound like a great idea… three months to forget about your biggest monthly outgoing – what’s not to like.  But it simply isn’t as straightforward as this.  There are several misconceptions and potentially serious repercussions that need to be given thorough consideration before going ahead.

Misconception – I’ll save money

The first important point to be aware of is that a payment holiday is a deferment of 3 months, and therefore not a saving.

You will be liable to catch up on the arrears, along with any interest charged.  Furthermore, the mortgage lenders haven’t yet provided a firm policy on the length of time they will give you to make good on your arrears.  You may find yourself having to catch-up on arrears over a short period of time – which could put you under significant financial stress.

Misconception – If I’m struggling with repayments, I can transfer (switch) to a cheaper product with my existing provider

Mortgage lenders have already confirmed that if an individual is in arrears, even when on an agreed mortgage holiday, they may be prevented from completing a product transfer.  If remortgages become difficult to obtain and you’re behind on your mortgage payments, you could become trapped on your existing lender’s standard variable rate (SVR – usually range from 2-5% above the base rate) – further exasperating the situation.

Consideration – True income

Thankfully the Government stepped in very quickly to guarantee 80% of an employee’s income, so if you’re employed, this will have a significant impact on protecting your finances. 

To put this into perspective, even if you were to lose 20% of your monthly gross income, after allowing for tax, NI and pension contributions, at the maximum covered salary of £2500 per month, your monthly earnings would theoretically be reduced by £310.  But, just think how much you will be saving by not going out for dinner, taking you morning coffee, travel etc.  On balance, most of us won’t be significantly worse off if we’re otherwise sensible with our finances, and therefore, should be able to meet our mortgage payments, without sacrificing the essentials.

Consideration – Payday Loans – Avoid at All Costs!

Having considered potential income, we cannot stress the importance enough of avoiding short-term lending solutions i.e. payday loans, at all costs. 

Such borrowing may be tempting to cover your short-term needs, but the long-term damage that can be done to your credit file is enormous.  A payday loan will prevent you from obtaining finance for at least 12 months – it is absolutely not easy money!

Consideration – Burning your bridges with your mortgage lender prematurely

The Covid-19 crisis has and is evolving rapidly – we’re in truly unprecedented times.  Despite numerous predictions from experts, nobody knows what will happen over the coming months and even years.  So, wherever possible, please avoid exhausting the goodwill of your lender straightway.  Only ask for a payment holiday if you absolutely need it.  If the situation persists beyond the Summer, you may need the option later.

Consideration – Things are really tight and I need to reduce my outgoings quickly

As we’ve already mentioned, payday loans are not the answer.  There are other options available that won’t have such detrimental ramifications on your ability to obtain future credit.  Two such options are a remortgage or product transfer (provided you haven’t taken a mortgage holiday).  If you urgently need funds to tide you over, debt consolidation using a second charge mortgage or equity release may provide a suitable option.

Consideration – Protecting yourself and your family in the future

The Covid-19 pandemic has made all of us consider our own mortality and financial stability, more so than ever before.  Thankfully the Government has stepped in to help us, but what if this wasn’t the case, or what if the unthinkable happened again, would you be able to survive off just £94 Statutory Sick Pay (SPP) each week? 

Misconception – life insurance and critical illness cover are out of my budget

A future pandemic could change how many countries and workplaces operate.  We are fortunate to have an unbelievable level of Government support this time, but we don’t know what the future will hold, especially if people decide not to insure themselves against unknown risks.  Protecting your health and finances doesn’t isn’t as expensive as you might think.  For example, a 30-year-old non-smoker, could get £250,000 life cover over 25 years for under £10pm (based on standard terms).

Understandably, all the mortgage lenders are receiving an unprecedented number of calls, so it’s proving very difficult for clients to contact them directly.  During this difficult time, we can help you. Please don’t hesitate to contact us on 07551418599 or email:

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Buy to Let

A Guide to Buy-to-Let Mortgages

What is a buy-to-let mortgage?

Buy-to-let mortgages are for landlords who want to buy property to rent it out. The amount you can borrow on a buy to let mortgage is mainly based on the monthly rental you are getting or are likely to get.

Buy-to-let is a property which is purchased to let out in order to produce a rental return and income stream. It can also grow in value, producing capital gain when you sell.

What is different about a buy-to-let mortgage?

If you plan to rent out your home, you need a buy-to-let mortgage. There are some key differences between buy-to-let and ordinary mortgages that could potentially make it more difficult to buy a property for rental purposes.

Mortgage providers see buy-to-let mortgages as higher risk than residential mortgages. This is because landlords often face problems with rent collection, and it is unlikely that your property will constantly be occupied.

Buy-to-let mortgages often have slightly higher fees and interest rates associated with them compared to residential mortgages to reflect the higher risk for a lender. The minimum deposit for a buy-to-let mortgages also tends to be higher compared to normal residential mortgages.


Buy-to-let mortgages typically require a minimum deposit of 20-25%. The larger your deposit, the greater the range of mortgage products you can choose from and usually the cheaper the rate lenders charge.

Rental income

Lenders will typically need the rental income to be at least 125% of the monthly mortgage payments (on an interest only basis), or even up to 145%, depending on a lender’s criteria.

In order to secure a buy-to-let mortgage, you’ll typically need to receive a monthly rental income of 25-45% more than your monthly mortgage repayments.

Buy-to-let mortgages for first-time buyers

If you’re struggling to get on to the property ladder in your area, you might be considering buying an investment property elsewhere and letting it out.

The good news is that it is possible to get a buy-to-let mortgage as a first-time buyer – but it’s not necessarily easy.
As you might need a bigger deposit than other investors to get a good deal and the number of mortgages available to you may be significantly smaller.

Accidental landlords

Accidental landlords are those who didn’t buy a property with the intention of letting it out, but who have since ended up doing so due to circumstance rather than choice. Not everyone who becomes a landlord necessarily sets out to do so. For example, you might have inherited a property, or relocating at short notice and choosing to let out your home.

Regardless of how you’ve become a landlord, it’s important that you tell your mortgage lender if you’re going to let out a home that has a residential mortgage. Some lenders will grant you a ‘consent to let’ on your current deal, while others may insist on you switching to a buy-to-let mortgage.

Whether you are investing in buy-to-let properties for the rental income or for the potential capital appreciation, choosing the right mortgage is essential. Applying for a buy to let mortgage is a fairly similar process to a residential mortgage application.

SN Mortgage Solutions are independent mortgage brokers working with a wide range of lenders who can advice on the entire process and provide quality advice.

Kindly contact us on 07551418599 or email us at to book your free mortgage review.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

First Time Home Buyer

Buying your first home can be a daunting time, but don’t make it more stressful than it needs to be.

If you’re considering buying your first home, you’ll probably need a mortgage, which is a loan that uses a property as security for the lender.

Read our First Time Buyer guide to see how we could help.

How much can you afford to borrow?

A good step when you are thinking of buying your first home is to look at the costs that you would need to pay. The size of your mortgage is also determined by your deposit, the bigger the deposit, the better mortgage deal you will be able to get and therefore the lower your monthly repayments would be.

Get a lending decision

Before you start viewing properties, it’s a good idea to get a lending decision (DIP) from a lender which will give you an idea of how much you can borrow and it will prove to estate agents you are serious about buying.

DIP is normally valid between 30 and 90 days and this is only an estimate and isn’t a guaranteed mortgage offer.

Looking for a home

As you start looking for your new home ask yourself what you really need. Do you want somewhere in town? Or more rural? What about local schools? Where’s the nearest shop? How many rooms do you need?  Do you want off-street parking?

Make your offer to the estate agent, based on the mortgage you can afford and the deposit you have available.

Applying for a mortgage

Having your key documents to hand when you’re applying will make the process smoother:

  • Proof of ID
  • Proof of address
  • Proof of income
  • Bank statements
  • Proof of deposit

The legal requirements

You’ll need to appoint a conveyancer or solicitor to take care of all legal work. It’s important that you do this after you’ve received a mortgage recommendation from your broker or lender, as they need to be specifically approved on the chosen mortgage lender’s panel.

Mortgage offer, exchange and completion

Mortgage offer – This is a formal document which tells you that your mortgage has been agreed.

Your solicitor/conveyancer will carry out all the required checks, such as Land Registry searches, on the property.

Exchange – When the legal work is finished and contracts are signed, your conveyancer/solicitor will exchange them with the seller’s solicitor, pay your deposit and agree the completion date.

When you exchange contracts, you’ll need your home insurance to start. Buildings insurance is a requirement of your mortgage and is essential to protect you against damage caused by things like fire and flooding.

Completion – The completion date is the date of the legal transfer of the new property into your name and also when the balance of the purchase price is paid to the seller.

Normally you’d collect the keys from the estate agent dealing with the sale of the property. Once you’ve picked them up, you can start moving in.

we believe taking your first step on the property ladder should be an exciting and joyous time.

SN Mortgage Solutions are independent mortgage brokers working with a wide range of lenders who can advice on the entire process and provide quality advice.

Kindly contact us on 07551418599 or email us at to book your free initial consultation.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.


Here are some of the more common types of mortgages:

Fixed Rate Mortgage

A fixed-rate mortgage means that the interest rate will stay the same for a set of time usually between two to five years

This can offer peace of mind because, unlike a variable-rate mortgage, you’ll know exactly how much you’ll need to repay each month during this period.

When the fixed rate period ends, your rate will change to the lenders standard variable rate (SVR).

Standard Variable Rate Mortgage

A standard variable rate is a type of variable-rate mortgage, meaning the total amount that you pay could change each month. This means that some months you may find that you end up paying more than you expect and some months you end up paying less.

Standard variable rate mortgage rates don’t have a lock-in period or some of the other restrictions you might get with a fixed-term mortgage.

When on an SVR mortgage, you won’t normally have to pay an early repayment charge if you want to pay off your mortgage sooner or remortgage to a new deal.

Tracker Mortgage

A tracker mortgage is a type of variable mortgage. Your monthly repayments could vary depending on the base rate.

Tracker mortgage follow the Bank of England base rate during a specified period, if the Base Rate rises, your payments will rise accordingly. However, if they fall, so will your mortgage repayments.

If you have a tracker mortgage, the amount of interest you pay on your mortgage might be the base rate plus or minus a certain percentage.

Discount Mortgage

A discount mortgage has an interest rate that is set a certain amount below the lender’s standard variable rate (SVR). It goes up and down when the SVR moves.

A discount mortgage is a type of variable-rate mortgage, meaning the amount you pay could change from month to month.

Discounted variable rate mortgage deals usually last between two to five years or it could even be for the entire term of the mortgage. Once the deal ends, you’ll be moved to the mortgage provider’s standard variable rate.

Offset Mortgage

Offset mortgage links your savings accounts with your mortgage, helping you to reduce the mortgage term or your monthly mortgage payment.

The Offset savings account is linked to the Offset mortgage to reduce the amount of mortgage interest you are charged.

Your savings are not used to pay off your mortgage. Instead they sit in a separate savings account that pays no interest.

Lenders deduct this amount from your mortgage balance and only charge you interest on the remaining amount.

SN Mortgage Solutions are independent mortgage brokers working with a wide range of lenders who can advice on the entire process and provide quality advice.

Kindly contact us on 07551418599 or email us at to book your free initial consultation.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Boost your credit rating with these useful tips.

Would you like to enhance your chances of getting a mortgage?

1. Use a mortgage broker
Chances are, if you’ve had previous credit issues, you’ll fall outside of the typical high street mortgage criteria, but specialist lenders could help. Specialist lenders typically tend to operate through brokers so it’s a good idea to seek independent mortgage advice. Mortgage brokers will give you access to specialist lenders and help you find the best deal for your circumstances.

2. Don’t use a payday lender
Regularly resorting to payday lenders is a red flag that you’re not coping with your existing debts and may be unable to take on more borrowing in the form of a mortgage.

3. Get your documentation ready
Lenders need to see proof of everything you declare to them, so be sure to gather all the relevant documentation you need to make the application process as smooth as possible.

4. Check your credit report
Your credit report shows you what lenders see when they do a credit check and is available for you to read whenever you want. By checking your credit report preceding your mortgage application, you can spot any mistakes or issues to your adviser and work at resolving them ahead of time.

5. Start to budget
In the time preceding your mortgage application, it’s important to start living within a budget as lenders will look through at least the last three months of your bank’s statements. Budgeting effectively and living within your means proves you’re responsible with money. Not only will it strengthen your mortgage application, but it will also free up funds to allow you to repay any outstanding debts.

6. Set up direct debits
Missing a payment on a credit card, loan, utility bills or other form of credit will show up on your credit report as a default. By setting up direct debits, it means you won’t miss a payment.

7. Don’t leave an unpaid bill
Though you might think that the damage to your credit report is already done, it’s still important to repay any debts as soon as you can. Lenders will treat resolved late payments differently to unpaid bills that have simply been left.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Reasons To Use Independent Mortgage Broker

If you’re looking to secure a mortgage, then it can be well worth using an independent mortgage broker.

The advantages of using an independent mortgage broker are:

They make it easy for you

The mortgage application process can be complex and it is easy to make an error. By using a broker, you will be receiving financial advice and support with the application process.

They know the industry

Mortgage broker deals with lenders on a day-to-day basis and knows the background criteria that each lender has and can bring this experience when advising you and processing your application.

They give you Peace of mind

Because brokers know the mortgage process inside out and hold relationships at banks and building societies, the application process will tend to be smoother and go without as many hitches compared to an application that you might place yourself. This removes significant stress from the process

They can save you time

Seeking out the best mortgages for your needs is a time-consuming, difficult job in such a big market. An independent mortgage broker, can do the hard work for you.

They can save you money

By understanding your circumstances and the way that the mortgage market works, a broker can help to find you a deal that will best meet your needs and ultimately save you money.

They have access to special deals

Some mortgage lenders will reserve certain special deals for brokers only. This means that you may not see them at all if you go direct.

In summary, using an independent mortgage broker can save you time, stress and money when searching for the right mortgage product.

SN Mortgage Solutions are independent mortgage brokers working with a wide range of lenders who can advice on the entire process and provide quality advice.

Kindly contact us on 07551418599 or email us at to book your free mortgage review.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.