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Can I Get a Mortgage in Birmingham with an IVA?

What is an IVA?

An IVA, or an individual voluntary agreement, is a legally contracted agreement between the person who owes the debt and the creditor (individual/organisation that has loaned the money). This agreement will outline a way for the debt to be prepared over a set period. In most cases, if the amount that you owe exceeds £500, you could be enrolled on an IVA.

The idea is to create a repayment plan to pay off the debt. Usually, the plan will run over 5 years. An IVA will be set up by an insolvency practitioner, who will have specialist knowledge of debt repayment. They will liaise with the creditor on your behalf and make sure that you are meeting your payments on time.

At the end of the day, IVAs are put in place to help the debtor repay what they owe. They were introduced to help people repay their debt, not make them financially worse off. Our Specialist Mortgage Advisors in Birmingham can help answer your mortgage questions surrounding IVAs.

Does an IVA Affect my Credit Score?

Whilst an IVA can reflect negatively on your credit rating, it is not impossible to get a mortgage with one in your name, there are a few different ways to improve your Credit Score in Birmingham, which you may find beneficial. Having an IVA shows the mortgage lender that you have previously failed to pay off a credit agreement. A mortgage is a huge credit commitment and lenders cannot afford for you to miss your repayments.

If you are looking at taking out a mortgage with an IVA, you will also need written approval from the creditors you originally borrowed money from. They may not agree to these terms and your application may be unsuccessful. If you were to receive a lump sum or gain an extra source of income, the creditor may want you to put it towards paying off your IVA.

Your insolvency practitioner will be able to speak with your creditors and try to come to an arrangement. You may need to pay a certain amount back or be enrolled for over a certain amount of time etc. before you are able to submit a mortgage application.

Is an IVA right for me?

Some people may not receive an IVA, and this is purely down to affordability. If someone cannot afford to maintain their credit agreements, they may not be able to maintain their IVA repayments.

Before taking out an IVA, the insolvency practitioner checks that you have enough disposable income to cover your costs of living.

How does an IVA affect my mortgage application?

Although having a negative impact on your credit score, may not stop you from getting declined for a mortgage in Birmingham. An IVA offers an alternative to missing future payments or getting further into debt with the creditor. The more payments you miss, the more harm you are doing to your credit score. Also, the lower your credit score the more deposit you may have to put down.

When assessing a mortgage application, lenders look at your affordability and other credit agreements, therefore, they will be able to see the IVA on your file. Like defaults, they may even be able to why you have been put on an IVA and how much you owe the creditor. Depending on various factors, they may decline your application.

As a Mortgage Broker in Birmingham, we would recommend not applying for a mortgage if you’ve only just been put on an IVA. Your lender will not know whether you’re reliable yet or not either.

Can I get a mortgage after an IVA?

Once an IVA has paid off, because you have cleared the debt, you may be more likely to get accepted for a mortgage. This is not a guarantee though.

Your credit score will still likely be lower, which can impact the sort of deals that will be available. In Birmingham, we would advise that you seek Specialist Mortgage Advice in Birmingham before applying for any of these products. We are very experienced in this field and have advisors that may be able to help.

If you already have a mortgage, you’ll benefit from discussing Remortgage Advice in Birmingham with us, from there we’ll explore your remortgage options. Remember, credit can be built up over time and most of the time it’s best to pay off your IVA.

Reviews

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The Costs of Buying a Home in Birmingham

Buying a property can be the most expensive commitment of your life, therefore, it’s important that you know exactly what you’re paying for. All of the different costs can blend into one if you’re not careful, and you may be paying more for some parts of the process than you originally thought.

Let’s take a look at how much it costs to buy a home and the costs involved with property investment.

First Time Buyer Mortgage Advice in Birmingham

If you’re a First Time Buyer in Birmingham, you’ll find this article particularly useful as it will break down each cost for you and show what each one means.

On the contrary, if you’re Moving Home in Birmingham, it’s still useful to remind yourself of the costs involved so that you can prepare accordingly.

Valuation Fees

Once you’ve had an offer accepted, your lender will carry out a valuation on the property to make sure that your offer matches the true value of the property. Factors that could affect your valuation include structural damage, property age, the local market, etc.

Prices will vary for the valuation will vary from free of charge to several hundred pounds. Sometimes, you will be offered one for free as the price is incorporated into another cost or it could be a bonus for taking out a certain product.

They are also different types of valuations, and you will pay more depending on which one you need. For example, if you need a full building survey as you’re purchasing an older property, you may have to pay a lot more than someone who’s bought a new build.

Mortgage Arrangement Fees

Some lenders may charge you for taking out a mortgage with them. This type of fee usually comes with the products with the cheapest rates. It’s worth mentioning that not every mortgage will come with an arrangement fee, however, when they do, you may be expected to pay a large fee, such as £999, depending on the product and lender.

You may be asked to pay this fee upfront or have the option to add these to your mortgage balance. If you choose to add them to your mortgage, you may incur further interest charges. As a Specialist Mortgage Broker in Birmingham, we can compare 1000s of mortgage products on your behalf, trying to find a suitable one for your situation with minimal additional costs.

Solicitor’s Fees

You’ll need a solicitor to arrange the legal side of the mortgage process. The fees quoted by various firms may differ enormously. An estimated amount for a low-value property would be £600. You will provide the solicitor with the new property’s address, whether it’s leasehold or freehold. You’ll also need to provide the purchase price to obtain quotations.

You need to make sure that:

  • The firm includes VAT
  • The cost of any “disbursements are included.” These are fees such as Land Registry Fees and Local Authority Search Fees
  • Is your solicitor on your mortgage lenders panel?

Estate Agency Fees

You’ll only face estate agency fees when you are selling a home in Birmingham. Estate agency fees are rising alongside property prices; you can expect to pay between 1-2% of the property price. The minimum amount is usually £500 to sell your home. Prices may also rise when you look for a more personalised service.

Stamp Duty

Stamp duty is a tax that the solicitor will collect upon the competition of the property purchase, in addition to your solicitor’s fees and disbursements.

More stamp duty details can be found here: https://www.gov.uk/stamp-duty-land-tax.

Broker Fees

A Mortgage Broker in Birmingham will usually charge a fee for their service. These fees will be disclosed upfront so that you know what you’re paying for and how much it’s going to cost. 

We recommend trying to use a trusted company that charges upon completion only. Avoid any application fees where your money will be at risk.

Removal Fees

The cost of moving all of your household items to another property can vary, it mainly depends on what service you want, how far you’re moving and how much stuff you have!

If you are happy to hire a van and transport your belongings to your new house by yourself, the service may cost significantly less. It can cost less than £500 in some situations. However, some people will prefer to pay for the full service and get someone to pick up their belongings and help them move. This service can be £1,000 plus.

If you want to speak to a Moving Home Mortgage Advisor in Birmingham, feel free to get in touch and book your free appointment online today.

Moving Home Mortgage Advice in Birmingham

Shared Ownership Mortgages in Birmingham | Shared Ownership Advice

Shared Ownership is a scheme that helps first time buyers and home movers purchase a percentage of a home. Partial homeownership is a great way to get onto the property ladder if you cannot afford a 100% mortgage.

Shared Ownership Mortgage Advice in Birmingham

What is shared ownership?

Shared Ownership let’s take out a mortgage on/purchase a percentage of a property and then pay the remainder through rent. Depending on the building society, the percentage that you can own will change. Some will allow you to own as little as 10%, whereas others will need you to own 25%-75%.

Since you’re taking out a mortgage based on a percentage of a property, the initial deposit that you have to put down should be less. This can make it easier to get onto the property ladder.

https://www.youtube.com/watch?v=n1Q-Ejl9eWs

How does the scheme work?

First of all, you need to put down a deposit on the property. The minimum deposit that you have to put down can vary on different factors. It can change with the percentage that you’re buying, your credit score, and your personal and financial situation.

You’ll still be taking out a mortgage through this scheme, but only on the percentage that you’re buying. For example, if you’re buying 50% of a property that is worth £250,000, you’ll only need to take out a £125,000 mortgage. Furthermore, rather than providing a deposit that is based on the full house price, you’ll only have to put down a deposit based on the mortgage that you’ve taken out. So, in this example, a 5% deposit would be £6,250.

Once you’ve had your offer accepted and have moved into the property, you’ll start paying off your mortgage. As mentioned before, you will have to also pay rent on the remaining share of the property. Despite having two sets of payments, your overall monthly costs shouldn’t be as expensive as if you had taken out a 100% mortgage.

Costs and fees

When taking out any type of mortgage, there are going to be lots of different costs that you’ll need to consider. Shared Ownership mortgages will likely come with set-up/arrangement charges, booking and solicitor fees. You may receive stamp duty tax too, so make sure that you’re aware of these costs.

Costs can increase depending on the property that you’re buying. Deposit size, monthly payments, arrangement fees can differ from property to property.

How can I apply?

You’ll have to meet the requirements for the Shared Ownership scheme before you can access it:

  • You have to be at least 18 years of age.
  • If you live out of London, your total household annual income must be less than £80,000. If you live in London, this is changed to less than £90,000.
  • You can’t own another property during your Shared Ownership application. You must be a first time buyer in Birmingham or in the process of selling your current property.
  • If you can afford to purchase a property on the open market, you will not be able to access this scheme. It was designed to help struggling applicants.
  • You must prove that you are not in any kind of arrears, this includes mortgages and rent.
  • You must provide evidence that supports a good, clean credit history. This means that you will struggle if you have a CCJ (county court judgement) associated to your name or have had previous credit problems.

Although this may appear like a lot, it’s only the same as most Help to Buy schemes. Each schemes’ requirements will differ, as they are targeting different applicants.

If you have credit problems, you may need to look at other ways to get a mortgage. There are lots of different government mortgage schemes out there that could help you get a mortgage.

Speak to a Shared Ownership Mortgage Advisor in Birmingham

Our mortgage advisors in Birmingham have helped many buyers secure a mortgage through the Shared Ownership scheme. We have been helping applicants for over 20 years now!

If you are looking for Help to Buy mortgage advice in Birmingham, we are here to help you too. We can check whether you match the requirements for any of the schemes.

Take advantage of our free mortgage consultation by booking your own appointment today.

The Importance of Having Your Mortgage Reviewed in Birmingham

Mortgage review advice in Birmingham

Taking out a mortgage is one of the biggest financial commitments that you’ll make in your life. This is because it is going last around 20-30 years. Furthermore, this is why you need to be prepared and know exactly what you are signing up for.

Quite a lot of people get a mortgage with the mindset that they’ll take one out and not need to think about it again, they just need to pay it off. This is not the case…

Taking out a mortgage

In Birmingham, when you take out your mortgage, it’s likely that you’re fixing yourself into a short fixed-term rather than a 10+ term. This is because lenders usually offer shorter 2-3 year mortgage products over longer deals.

Once you get to the end of your term, your will lapse straight onto your lender’s standard variable rate of interest (SVR). This rate, when compared to your current rate, will likely be higher and increase your mortgage payments. Moreover, if you were to have a mortgage review before your fixed term ends, you could end up saving money.

As it’s coming up to the end of your mortgage term, you should start thinking about remortgaging in Birmingham. Getting a mortgage review booked in with a remortgage advisor in Birmingham could help you access a better, competitive product.

What is a mortgage review?

A mortgage review is simply a review of your mortgage (we probably didn’t need to tell you that).

Mortgage reviews will allow you to find out whether you can access a better mortgage product at the end of your term or not. For you to get one, you’ll have to book an appointment with your mortgage broker in Birmingham, lender or building society and make them aware that you want to review your mortgage options through a remortgage.

You may be able to access a better rate by taking a mortgage review!

How does a mortgage review work?

The mortgage review process is just like any other mortgage process. You will be asked to supply evidential documents that support your affordability, you are who you say that you are, etc. Once your mortgage advisor in Birmingham has all your information, they can begin searching through products.

If you managed to maintain your mortgage payments, your credit score will have had a boost during the period of your mortgage term. You will have proven to your lender that you are a reliable applicant. The higher your credit score, the better chance you have of being able to access competitive products.

Unfortunately, sometimes you won’t be able to access a product with a ‘better’ rate. In this situation, you can speak with your lender and see whether you can simply renew your deal for a further couple of years. When it comes to the end of your next term, you may have the chance to access better deals then.

Birminghammoneyman offers a free mortgage review to every applicant, so book online today and speak with an advisor.

Why is a mortgage review important?

Mortgage reviews are very important. It’s vital that you keep on top of your remortgage situation so that you know exactly where you are and where you stand. This will be worth your while if you access a competitive deal from taking a review.

You could end up saving a lot of money in the long term. It would also prevent you from slipping onto your lender’s SVR, which could be expensive.

Standard variable rate (SVR)

Every lender’s SVR is different, but it’s all worked out the same way. They track the Bank of England base percentage and then add their own on top. This is why their SVR can be so expensive. If you are happy with paying their payments, it’s completely up to you.

Even if you don’t get around to taking a mortgage review and end up on your lender’s SVR, you can still remortgage any time after. You aren’t locked into a specific deal or term on your lender’s SVR, so you can contact your advisor when you want to.

It is possible to switch products whilst still tied into a deal, although, it will cost you. If you find a product that you like and want to remortgage in Birmingham before your term ends, you will have to pay an ERC (early repayment charge).

Remember that you are not required to stay with the same lender through a product transfer, you can remortgage if you believe that there are better deals elsewhere.

Equity Mortgage Advice in Birmingham

Lots of equity in your home

With the constant increase in housing prices, you may have got lucky and there will be lots of equity within your home. If this is the case, you may be able to access more competitive products.

Mortgage interest rates are based on loan to value ratios. By rule of thumb, the more equity you have, the lower the interest rates you will be able to access.  

Capital raising is also an option that is available to you, so if you are interested in this, please speak with an expert mortgage broker in Birmingham like us.

Little equity in your home

If you haven’t owned your home for long or your home hasn’t increased in value yet, there may still be money-saving options with your current mortgage lender. 

Keeping up to date with your mortgage payments is key, if you manage to, you may find that you’ll be able to access some product transfer deals.

The true cost of a mortgage deal

Sometimes, the products offering the lowest rates may not be the best deals. These types of deals are known to come with high set-up/arrangement fees.

As a mortgage broker in Birmingham, we consider every cost that comes with taking a mortgage. We will also take these costs into account when trying to find your mortgage products. We want to save you as much money as we can.

When looking for a mortgage product, we will try and find one that matches your personal and financial situation. Get in touch for Remortgage Advice in Birmingham today.

The Importance of Updating Your Address in Birmingham

Mortgage Advice in Birmingham

During your mortgage application, you will have to be certain that all of your information is up-to-date and correct. One of the most important things that need to be right is your address and that it matches where you are currently living and not a previous address. You will need to check this across all of your account’s.

Why do I need to update my address?

When applying for a mortgage, a lender will look at a variety of different things. They will look at your credit score, credit file and will require supporting evidence to back up your application. This will include documents such as payslips, bank statements, proof of ID and proof of address.

You may encounter some mortgage hurdles along the way; it could be something listed above, or it could be something completely different. One of the most common mortgage hurdles that we see is a low credit score. Your credit score can be impacted by a lot of things, in this case, if your addresses are keyed in wrong, your credit score could potentially be harmed.

For example, if you haven’t changed your address and you receive a fine that gets sent to your old address, you wouldn’t know about it and it could just build up. This could impact your credit score as the debt is in your name and not getting paid off. 

Fewer address the better?

As a Mortgage Broker in Birmingham, we have seen many home movers that had deliberately chosen not to change their address because they thought that it would impact their credit score negatively. Yes, if you have too many addresses on your account, your lender may ask you why, however, it’s unlikely that you’ll be declined just for having lots of addresses on your credit record.

First Time Buyers moving out often leave their address on their account linked to their parents/previous home. In this case, it’s not too detrimental as your parents can inform you of anything that is sent/billed there. In another situation where you are moving out of your first home into your second, and your details are linked to your previous address, things can start to get complicated.

Ideally, when you are Moving Home in Birmingham, you want to change all of your addresses to your new home. This will prevent anything from potentially affecting your credit score.

Check before you apply

There is no harm in double-checking that your addresses are all up-to-date before applying for any sort of credit. Are all of your credit card accounts linked to your current address? Is your car and insurance address correct? 
 
Another thing to check for before you apply is that the date that you moved in and out of your home is correct. 

Living in two places at once

If you don’t get the dates right for when you moved in and out of your home, it can appear as if you were living at two places at once. Not only will this reflect badly on your credit file/score, but lenders will also question why your addresses are wrong. 
 
This is why you should always double-check your addresses. You need to make sure that everything has been entered correctly so that it doesn’t look like you live in two different places at once. 
 
If you need any help in changing out your addresses or checking whether they are correct or not, one of our Mortgage Advisors in Birmingham would love to help. During the mortgage application process, they will run through this with you to make sure that you’ve keyed in all of your information correctly. 

Keeping information up-to-date

Keeping on top of your information and ensuring that it is up to date will help with your mortgage application. This benefits the Lender as they don’t have to spend a lengthy amount of time assessing documents and questioning incorrect information that flags up. It also benefits you, as it speeds up your mortgage process.

Speak to a Mortgage Advisor in Birmingham

For expert Mortgage Advice in Birmingham and help submitting your mortgage application with all of the correct information, make sure to get in touch with our great team. As a Mortgage Broker in Birmingham, in the past, we’ve helped thousands of applicants secure a mortgage. 
 
We work 7 days a week, so if you need help with your mortgage application and checking your information, get in touch today for a free consultation. We can’t wait to try and help you! 

Struggling to get a Mortgage through your Lender in Birmingham?

Specialist Mortgage Advice in Birmingham

As a Mortgage Broker in Birmingham, it’s not unusual for us to receive enquiries from applicants who’ve been turned away from their bank. This is because going directly to a bank/building society can be more complicated than it seems.

Sometimes we’ve described it as being a ‘mortgage maze’, where every lender seems to be a dead-end and you can’t quite find the one that will get you out the exit.

This is where our job as a Mortgage Broker in Birmingham comes in.

We’ve been in this maze before and we know the difficulties that come with trying to find the right lender. Our team will help you find the right lender for you that has a product tailored to your specific personal and financial circumstances.

Here we are going to cover why you could be struggling to get accepted for a mortgage and how a Mortgage Broker in Birmingham like ourselves may be able to help.

Struggling To Get A Mortgage Through Your Lender In Birmingham?

Going directly to a lender

Credit scoring criteria

To get accepted by a lender, you will first have to pass their credit score criteria. Each lender will always have their own unique credit scoring method, some will be more complicated and harder to pass than others. Some lenders have even built their own niche audience so for example they may only offer specialist deals targeted at applicants with lower credit.

Lenders with the lowest rates of interest will likely have the toughest lending criteria, and usually vice versa. A lender will offer a better product to someone with a high credit score and carries a trustworthy credit history behind them over an applicant with a low credit score who has a CCJ(s) or Default(s), etc.

If you go directly to a lender without doing your research, you may be far off their lending criteria and you could end up being declined. This can have a negative effect on your credit file as when you apply again through another lender, they will be able to see that you were declined. This is why we always advise that you don’t keep applying to lots of different lenders, as the more you are rejected, the higher the negative impact you are putting on your credit file.

Your Mortgage Broker in Birmingham is here to help

Before submitting your mortgage application to a lender, we will first check that you match the lender’s criteria and are likely to pass their credit scoring. We aim to get it right first time!

Our job is to find you a deal that we know you will love and match perfectly. This applies to everyone regardless of your individual situation. Bad credit or good credit, we will try our hardest to pair you with a great mortgage deal through a lender that will accept your mortgage application.

Economy’s effect on the mortgage market

We’ve seen applicants struggle to get accepted for a mortgage due to the economy and how it’s affecting the mortgage market. For example, during the credit crunch in 2008, it was extremely hard to obtain a mortgage no matter your credit history, lenders lost all of their confidence in the market. This goes to show if the economy is suffering your chances of struggling to get a mortgage are likely to increase.

If you are struggling to get a mortgage because of the economy and the mortgage market, you may have to hold back your mortgage application at the moment. Sometimes, it may be better to keep building up your deposit so that when the market eventually bounces back, you have even more funds to aid your mortgage deposit. Furthermore, this may even increase your chances of being accepted too.

During times of economical crisis, in the UK we’ve seen deposit requirements go as high as 25% of the property’s value. On the contrary, if you were looking to Remortgage in Birmingham in the middle of this period, you will have been able to access better rates and products. Whether you’re remortgaging or carrying out a product transfer, you won’t need to provide a deposit as you are simply switching products and will still have the equity from your original deposit. You are likely to have more equity if you have been on a repayment mortgage.

Improving your credit score in Birmingham

If you are being declined for a mortgage due to your credit score, you need to start looking at ways that you can improve it. There are lots of methods you can do to try and improve your credit score, here are some of the ones that we recommend:

– Check whether you’re registered for the voter’s/electroral roll; if you aren’t, get registered! It’s nice and easy to do and can boost your credit score.

– Avoid unnecessary credit searches as they can show up on your credit file and sometimes reduce your score.

– Don’t run too close to your maximum limits. Running into overdrafts and not paying off credit cards each month can reflect badly on your credit score.

– Validate that your address is up-to-date across all of your accounts. This includes credit cards and store cards.

– Close unused credit accounts. This can also reduce your chances of falling victim to fraud.

– Remove financial links to others. If you unknowingly have a financial link with someone else’s name, it could be doing more harm than good.

Here is just to mention practices, there are more ways than you realise. If you have a low credit score and need credit score Mortgage Advice in Birmingham, make sure you get in touch with our responsive team and we will see how we can help.

Get help from a Mortgage Broker in Birmingham

If you are struggling to get accepted for a mortgage in Birmingham, it may be time to get in touch with a Mortgage Broker in Birmingham like us for help.

Being an expert Mortgage Broker in Birmingham has allowed us to gain valuable experience and deep insights into what lenders are looking for in mortgage applicants. We know all about lender’s credit scoring systems and their lending criteria, allowing us to search for a deal that we know will suit you and you’re likely to match with.

Once you get in touch with us, we will pass you onto a Mortgage Advisor in Birmingham, who’ll you’ll undergo your free mortgage consultation with. At this stage, your advsior will learn a little more about your personal and financial mortgage situation so that they can begin searching through mortgage deals for you.

To learn more about our service, get in touch with us today. Birminghammoneyman is your new home for Specialist Mortgage Advice in Birmingham; we have been helping struggling applicants over the last two decades, you could be next!

Mortgage Advice in Birmingham

Remortgaging Advice in Birmingham for a Home Extension

Remortgage Advice in Birmingham

There are many different reasons why someone may want to remortgage. it may be to improve your home e.g. through a home office, new kitchen, loft conversion, etc, to raise capital, or to release equity for another property.

Whatever your reason for wanting to remortgage, you will still have to go through a similar process as when you took out your initial mortgage. If you are looking to remortgage, then it may be worth approaching a Remortgage Advisor in Birmingham like us, we can help search 1000s of remortgage deals to find you a product that suits your financial situation.

Today we are going to focus on remortgaging for home improvements and even more specifically, for a home extension.

Remortgage for a home extension in Birmingham

https://www.youtube.com/watch?v=_O5IBmMaCAU&feature=youtu.be
Remortgage For a Home Extension | MoneymanTV

If your home is feeling a little cramped or like it needs something else you may want to consider remortgaging for a home extension in Birmingham. Rather than going through the expenses and stress of purchasing another property, you could just extend your current home to allow more living space. Now is a perfect time to think about this remortgage option.

Why should I remortgage for a home extension?

As a Mortgage Broker in Birmingham, who’s dealt with lots of applicants remortgaging for a home extension, we have learned that people mostly do it for one of two reasons:

More living space
Customers commonly say “I’m moving to a bigger house for more room” when they haven’t thought about remortgaging first. If you are only looking to move home just for a house with an extension/loft conversion, you should look at your remortgage options first, as it may be cheaper for you plus you avoid the costs of buying a home in Birmingham.

If you want more living space because you are going to start a family/have a family, it may be simpler to extend your house through a remortgage rather than move home. You also may have already found your “forever home,” and you can afford to remortgage; there is nothing wrong with borrowing for this purpose at all.

Raise property price
Home improvements can often put extra value on your home. People sometimes remortgage for a home extension with plans to sell their property, and there’s nothing wrong with this too. Whether you plan to move out within the next couple of years or much further down the line, either way, you should see the price of your property rise due to the new extension.

When should I remortgage?

As of now (19/04/2021), we can still safely say that remortgage products are still competitive and are holding at a steady rate. So, now is still a great time to remortgage for home improvements. This is especially because of the constant rising of property prices, now could be the perfect time to invest in your home.

You should know that if you apply for a remortgage for home improvements and the amount you need to borrow is significant, the lender will reserve the right to ask you for estimates for the works you intend to have carried out. You do not necessarily have to use the Contractor that provided the quote to do the actual jobs.

Costs of remortgaging

Depending on the work that you are planning to have on your home, you may find that remortgaging for a home extension in Birmingham barely affects your monthly mortgage payments.

Approximately, spending as little as £100 – £200 a month, could allow you to borrow £25,000 – £50,000 depending on the specifications. Lots of different things will be factored in when it comes to deciding how much you’ll be able to borrow when remortgaging for home improvements.

Home extensions to add to your home

There are plenty of different extensions and improvements you can choose to add to your property. Whether it’s an extension or a conversion, it doesn’t matter, both can be added to your home during a remortgage for home improvements:

  • More storage – If you’ve run out of space to store your belongings, it may be time to remortgage for a home extension to create more storage room.
  • New bathroom – If you feel like you need a nice, new, modern bathroom, then it’s perfectly okay to remortgage to do so.
  • Conservatory – Conservatories are a great addition to any home. Particularly for garden lovers and people looking for more living space.
  • Loft extension/conversion – A loft extension/conversion creates an extra room in the house; it also allows you to extend your living space without affecting your current garden. Whether it’s used as a bedroom, office, storage space, etc, we are finding these more and more popular each year, especially amongst customers with growing families.
  • Extra bedroom – If you are growing your family or just want a bigger room for someone living inside of the house, you should look at remortgaging for a home extension in Birmingham to create an extra bedroom.
  • Outdoor extension – This could be a garden extension, a new garage, or something else… the possibilities are endless!
  • Off-street parking – If you always struggle to get parked on the street, it may be time to remortgage in Birmingham for off-street parking. This way you won’t have to look for spaces every day!

Adding a home extension can be time-consuming, but it can make a huge impact in the long run and your lifestyle. We have spoken to many customers who have taken our Remortgage Advice in Birmingham and have been happy with their results.

How can our Mortgage Advisors in Birmingham help?

Our Remortgage Advisors in Birmingham are here to help you through the whole remortgage process. If you want to remortgage for other means, no worries, we can still try and help!

Our Mortgage Advisors in Birmingham have been working with remortgage applicants for over two decades now and know exactly what they’re doing during the whole application process. Along with excellent Remortgage Advice in Birmingham, you could find yourself walking away with an excellent deal that saves you money in the long run.

When you remortgage for a home extension, you may find that your payments barely even change, and you get a brand-new extension with it too!

Contact us today and receive a free remortgage consultation in Birmingham. Our Remortgage Advisors in Birmingham will be more than happy to answer any remortgage questions that you have.

Remortgage Advice in Birmingham

Government Schemes To Help You Onto The Property Ladder

Help to Buy Mortgage Advice in Birmingham

Over the years, the government have launched various schemes to make it easier for home buyers and home movers to get onto the property ladder. Some of these schemes have had the “Help to Buy” label associated with them, whereas others have been put into their own category with their own unique criteria.

Over time, some of these schemes became more and more popular, leading to the government introducing more further down the line. For example, in March 2021, we have just been given the go-ahead on the “Mortgage Guarantee Scheme”.

Help to Buy Equity Loan Scheme

One of the most popular and well-known Help to Buy schemes available is the Help to Buy Equity Loan scheme. The scheme gives you a great chance to get yourself onto the property ladder. You should know that you must be a First Time Buyer and be purchasing a new-build to access this scheme. The scheme has a property price cap, here is an updated list (April 2021 – March 2023):

Region Maximum Property Price
North East £186,100
North West £224,400
Yorkshire & the Humber £228,100
East Midlands £261,900
West Midlands £255,600
East of England £407,400
London £600,000
South West £437,600
South East £349,000

If you want to hear from the mortgage pro himself – Malcolm “the moneyman”, here is a video summarising the Help to Buy Equity Loan Scheme how you can access it:

https://youtu.be/nLMOqExq9U4
Help to Buy Equity Loan Mortgage Advice in Birmingham | MoneymanTV

The way that this scheme works is that you put down a deposit between 5%-20% on a property and then the government will top-up your initial deposit to make up a total of a 25% deposit. For example, if you put down a 5% deposit, the government will loan you an extra 20% of the property’s value to make a 25% total.

When the government loan you extra to make up a total of a 25% deposit, you must know that this is a loan and not a gift – this is the “Equity loan”. This equity loan will have to be paid back at some point. This means that you will have a 75% mortgage and an equity loan to pay off.

Help to Buy Equity Loan Mortgage Advice in Birmingham

The equity loan will be interest-free within the first 5 years of you taking out the mortgage, however, after these 5 years have passed, the loan will start gaining interest beginning at 1.75%. If you haven’t even started paying off your equity loan, you may need to weigh up your options and even consider Remortgaging to consolidate this loan.

As a Mortgage Broker in Birmingham that offers Help to Buy in Birmingham, we strongly suggest looking further into the scheme if it sounds like something that could help your mortgage situation. If you want to see whether you qualify or not, feel free to get in touch with our Help to Buy Mortgage Advisors in Birmingham today, they will be more than happy to help!

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Help to Buy Armed Forces Scheme

The Help to Buy Armed Forces scheme was introduced to help regular armed forces personnel get onto the property ladder. It was brought into the mortgage market after it was found that there was a large number of servicemen and servicewomen who were struggling to obtain a mortgage.

It was originally a pilot scheme, however, due to its popularity and helpfulness, the government decided to extend the Help to Buy Armed Forces scheme to 31st December 2022. Here is another helpful video from our MoneymanTV YouTube channel. Take a look for an in-depth look at the Armed Forces Help to Buy scheme:

https://www.youtube.com/watch?v=Vbqt5zq1oV4
Help to Buy Armed Forces Mortgage Advice in Birmingham | MoneymanTV

The scheme is very helpful if you can qualify for it; it can allow you to borrow up to 50% of your annual salary, with the total being capped at £25,000. This amount that you have borrowed can be used for your deposit or other fees that come with buying a home, such as solicitor’s and estate agent’s fees.

You can access the scheme if:

  • You have completed the pre-requisite length of service.
  • Have more than 6 months left to serve at the time that you apply.
  • Meet the right medical categories.

If you meet the scheme’s criteria, you can apply for it through the Joint Personnel Administration System or seek Mortgage Advice in Birmingham on how to apply for it. Our Mortgage Broker in Birmingham can help explain this scheme for you in full, and tell you whether or not you’ll be able to access this scheme. They will sort everything out for you, making your mortgage experience stress-free and simple.

When applying for the Armed Forces Help to Buy scheme, you should know that you will still have to prepare documents to aid your application. Our team of Mortgage Advisors in Birmingham can help you get prepared for this so that you are mortgage ready!

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Shared Ownership Scheme

Shared ownership is the scheme that often gets applicants confused. The scheme allows buyers to purchase a share in a home. This means that you are sharing ownership of the property with a housing association. Here’s a helpful summary video on “What is Shared Ownership”:

https://youtu.be/RUfHRuKor7M
Shared Ownership Mortgage Advice in Birmingham | MoneymanTV

With Shared Ownership, you will pay a mortgage on the share that you own, then pay rent on the remaining share. You will pay rent to the housing association linked with the property. The percentage of the property that you buy usually has to be between 25%-75% of the property, though this can be different. The lower your percentage share is, the lower your mortgage and your deposit is likely to be.

Further down the line, if you have the funds, you can opt to buy the remainder of the property if the housing association let you. People usually do this once they are settled in, have a higher income or even once their share has been paid off.

To access the shared ownership scheme, you have to meet its criteria:

  • You have to be at least 18 years of age.
  • If you are applying for the scheme in London, your annual household income has to be less than £80,000.
  • You cannot own another property in the meantime, you must sell your current home or property if you want to access this scheme. This is likely to not apply to you as a First Time Buyer in Birmingham.
  • You should not be able to afford a house on the open market that is suitable for your housing needs.
  • You can’t be in mortgage or rent arrears.
  • Your credit history need to be good (no large debts or CCJ’s).
  • You’ll have to demonstrate that you can afford regular payments and all of the costs of buying a home.

For further Shared Ownership Mortgage Advice in Birmingham, make sure to get in touch with our experienced Mortgage Advisors in Birmingham, we will be more than happy to explain the scheme for you and see whether you qualify for it or not.

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Lifetime ISA

The Lifetime ISA scheme is not at the forefront of the mortgage market despite its great ability to help get First Time Buyers onto the property ladder. The scheme is often confused with an expired government-led scheme called the “Help to Buy ISA”, and that’s partially why we believe that not many people take advantage of the scheme.

https://www.youtube.com/watch?v=Zv9bTA0HI2s
Lifetime ISA Mortgage Advice in Birmingham | MoneymanTV

The Lifetime ISA (Individual Savings Account) can be used for one of two things: to buy your first property or to save for later life. You must be between the age of 18-40 to access this scheme.

The Lifetime ISA lets you put money into an interest-free savings account, the maximum amount of money that you can add to ISA each year is £4,000. Every year, the government will top up your savings with a bonus of 25% of whatever you’ve saved.

lifetime-isa-graphic

Focusing on using the Lifetime ISA towards the purchase of your first home, you must know that in order to take money out of the ISA, you must have had the ISA account for at least 12 months. Here is the criteria for when you want to use your Lifetime ISA savings to buy your first property as First Time Buyer in Birmingham:

  • The property that you are planning to buy must be £450,000 or less.
  • You must be over 12 months into your Lifetime ISA scheme.
  • You must use a conveyancer or solicitor to act for you in the purchase.
  • You must be purchasing with a mortgage.

If you withdraw funds from your Lifetime ISA for an unauthorised reason, you will be charged a withdrawal charge. This charge is usually around 20-25% of the savings.

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Mortgage Guarantee Scheme

Following the March 2021 Budget, we learnt that 95% mortgages were going to making their way back into the mortgage market. This time, it was going to be through a new government scheme, called the “mortgage guarantee scheme”. Feel free to watch our March 2021 Budget summary video to find out more about the scheme:

https://www.youtube.com/watch?v=xeR8CoTVjfA
95% Mortgage Advice in Birmingham | MoneymanTV

The name of the scheme is a bit misleading, no one will ever be guaranteed a mortgage. Lenders will still take your credit score and affordability for a mortgage into account before accepting you for anything.

The scheme is simple, the government have stated that if you can make up a 5% deposit and can pass lenders criteria, you will be able to get a 95% mortgage. The great thing about this scheme is that it can be accessed by both First Time Buyers and Home Movers. The only limitation to the scheme is that the property that you are purchasing must be under £600,000.

If you need any help whatsoever with any of these government-led schemes, make sure to get in touch with our Mortgage Broker in Birmingham. We are highly experienced in dealing with all of these schemes, so if you want a simple run over of what each one does or you want further detail on one specific scheme, don’t hesitate to get in touch. We are always more than happy to help with your mortgage queries and questions.

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Mortgage Advice in Birmingham

What is a 95% Mortgage?

A 95% mortgage is exactly what you’d expect it to be; you are borrowing against 95% of a property’s price, making up the 5% remainder with your own deposit. Here is an example with a property valued at £150,000:

95 Mortgage Advice Hull

If a property is valued at £150,000 and you manage to receive 95% mortgage offer on the property, you will need to put down your 5% deposit of £7,500 and borrow the remaining £142,500.

95% Mortgage Advice in Birmingham

Following the March 2021 Budget, a new Government Help to Buy scheme was introduced to try and push confidence back into the property market. The scheme is called the “Mortgage Guarantee Scheme for Lenders” and is due to start in April 2021. The scheme allows any home-buyer, whether that be a First Time Buyer or Home Mover, to purchase a property with a 95% mortgage.

Chancellor Rishi Sunak also confirmed that many credible lenders are already backing the scheme which is great news for the mortgage market! The scheme is going to run until December 2022, so you have plenty of time to take advantage of it.

The scheme has certain criteria that you’ll need to match to qualify for it, your Mortgage Advisor in Birmingham will check to see if you meet the requirements of the scheme.

Our Mortgage Broker in Birmingham offers all of our customers a free, no-obligation mortgage consultation. During this process, we will be able to recommend the best mortgage deal based on your individual circumstances.

Can I get a 95% mortgage?

Whether you are a First Time Buyer in Birmingham or planning on Moving Home in Birmingham, you should be able to access a 95% mortgage (depending on your financial and personal situation). Before being accepted for a 95% mortgage, you’ll need a sufficient credit score and be required to prove that you’ll be able to meet your monthly mortgage payments.

95 percent mortgage advice birmingham

Improving your credit score

Having a good credit score will always benefit your mortgage application and chances of being accepted for your 95% mortgage. Ways to improve your credit score consist of paying off any outstanding debts that you owe, closing unused credit accounts, registering on the electoral roll and removing your financial links to others just to name a few.

There are many different ways to improve your credit score, so if you need further credit score Mortgage Advice in Birmingham, don’t hesitate to get in touch with our team. Alternatively, you can take a look at how to improve your credit score article, whichever you feel most comfortable with.

Affordability 

You will never be accepted for a mortgage when you cannot afford one, and that’s why lenders need to measure your affordability for a mortgage before accepting you. They will factor in all of the costs of buying a home in Birmingham and assess whether you’ll be able to meet your monthly mortgage payments. This is why you need to provide details of your income and monthly outgoings (usually through bank statements) so that your affordability for a mortgage is backed up.

Can my family help me get a 95% mortgage?

With the rising popularity of gifted deposits, as a Mortgage Broker in Birmingham, it’s not unusual for them to be used for mortgage deposits. A gifted deposit is a sum of money given to an applicant to aid their mortgage application, either by covering the whole of their mortgage deposit or a portion of it. It’s usually parents who give their children a gifted deposit.

Gifted deposits can boost an applicant’s mortgage application. If the applicant already has a portion of their deposit saved up, this extra cash boost could push them above the 5% mark and they may have even more of a chance of being accepted for a mortgage.

You should know that a gifted deposit is strictly a gift and not a loan, lenders won’t accept it otherwise.

How do I choose the right 95% mortgage?

There are lots of different types of mortgages available, so when you are choosing a 95% mortgage, you will want to make sure that you select the best option for your financial and personal situation.

For example, if you choose a 95% Fixed Rate Mortgage, your interest rate will remain the same through your mortgage term, whereas if you choose a 95% Tracker Mortgage, your interest rate will follow the Bank of England base rate.

Alternatively, you could pick a 95% Interest-Only or a 95% Repayment Mortgage. An Interest-Only mortgage will allow you to pay cheaper mortgage payments each month until you need to pay a lump sum at the end of your mortgage term (usually taken out for Buy to Lets). A Repayment Mortgage will combine interest and capital each month into one payment.

It’s important to get yourself a product that is best suited to you. For more information on different types of mortgages, check out our different types of mortgages YouTube playlist.

How can a bigger deposit help with my mortgage? 

Usually, the bigger deposit that you can provide and evidence for your mortgage application, the better. It’s better to save up and prepare for your mortgage journey, as lots of costs can come with it! Things that might crop up include higher interest rates, remortgaging difficulties due to less equity and then negative equity. 

Having a larger deposit, for example, a deposit of 10-15%, would not only lower your interest rate significantly but would also put more equity in the property and reduce the risk of negative equity as you would be borrowing less against the property in question. 

There is good news though, some of these costs can be avoided if you are well prepared. If you are saving for a property, sometimes it may be better to save up just a little more to boost your total deposit.

If you decide to use a Mortgage Broker in Birmingham, we will make sure that you are in the best position possible in order to get accepted for a mortgage. You may not need a larger deposit as other factors in your application may be perfect! You won’t know until you get in touch with our Mortgage Advisors in Birmingham today.

Birminghammoneyman.com & Birminghammoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
Should you have cause to complain and you are not satisfied with our response to your complaint, you may be able to refer it
to the Financial Ombudsman Service, which can be contacted as follows

The Financial Ombudsman Service, Exchange Tower, London, E14 9SR
www.financial-ombudsman.org.uk

© 2022 Birminghammoneyman

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