22 June 2020
We were recently asked to take part in Fiona Wright’s #lockdownlessons – a series of videos from experts across a range of industries to ‘help you survive and thrive’. Two members of our team, Beth Stevenson and Laura O'Donnelly took part in this series, offering advice on both mortgages and protection respectively.
If you want to find out more about either of these topics, we highly recommend you watch these videos. The interviews will also be released as podcasts on the East Dunbartonshire Radio player.
Today we’re looking at the interview Fiona did with Beth Stevenson, where she talks about all things mortgage-related. Beth is one of the founder Directors of The Glasgow Mortgage Company. She spoke about mortgages, helping to shed clarity on some of the most common questions that are asked.
First up was the topic of mortgage holidays. Beth wanted to make it clear that this was just a temporary measure and should only be used if absolutely necessary – and when you need it most. Mortgage holidays are just that, a holiday, and are not ‘free’, although the good news is that they won’t affect your credit rating. When you take a holiday, payments missed will be added onto the existing mortgage term – this means you will have slightly higher payments over the remainder of the term, not that the term itself will be extended. If you’re now considering taking a mortgage holiday, you should do so by directly contacting your lender (either online or via phone) or you can contact us for advice.
Beth also told Fiona that with interest rates currently being so low, now could be the time to take advantage of this and grab yourself a bargain! However, what goes down must go up, and so we advise that if you’re thinking about taking out a new mortgage product, now is the time to take action. Here at The Glasgow Mortgage Company we can help you with a wide range of mortgages including those for first-time buyers, buy to lets, help to buy schemes and re-mortgaging too (to name a few). It’s always recommended to speak to a professional in the field before committing to taking out a new product to make sure you make the right choice for you.
One other topic up for discussion was that of taking out a mortgage under the present conditions – in other words, your affordability when it comes to borrowing money for a mortgage. The situation will differ depending on whether you’re classed as self-employed or employed. The amount to be borrowed will be calculated from the previous year’s accounts for those that are self-employed, so any changes to their income due to the pandemic may not be an issue. Conversely, a mortgage taken out by someone who is self-employed will be calculated based on their existing wage…even if their current circumstances mean they are furloughed and not earning 100% of wages.
Beth finished by telling Fiona that if anyone was worried about their existing mortgage or taking out a new/replacement mortgage that they should feel free to get in touch.
This is a message we want to reiterate to anyone reading this – although we’re working from home, we’re still very much open and available to help. Catch us on over email, on our social media platforms and over the phone too.