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…
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.
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!
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.
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.
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.
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.
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.
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.
So, you’ve had your offer accepted on a property, however, is the house actually worth what you’ve said you’ll pay for it?
A property survey will be carried out to find out the true value and the overall condition of a property. They will also highlight any issues with the property, such as major/minor damages.
There are three main types of property surveys: Mortgage Valuations, Homebuyer’s Report and Full Structural Survey. Sometimes, a property survey can be carried out free of charge, it depends on the lender that you use.
Depending on the survey that you choose, the outcome of your survey report will vary. Some will provide more detail, whereas others will only touch upon certain aspects. You’ll find that the more in-depth a survey is, the more costly it will be.
If you discover something on your survey about your property that you weren’t told about, by law you are allowed to approach the seller and work out an alternative price if necessary.
Mortgage Valuations are the simplest type of property survey. These are carried out just to work out how much a property is actually worth. Your lender will need to ensure that the property price matches how much you are set to borrow from them. For example, if you put in an offer above the property’s actual value, the seller will likely accept your offer, however, your lender won’t. Unless you have the funds to make up the difference the lender will pull out of the deal. This is called a down valuation.
Unfortunately, this type of survey will not point out unobvious repairs and damages. However, it can inform you of clear structural defects that will require a further look at. For further property investigation, you will be required to pay more to upgrade your survey. In the long run, this may be worth it.
A Homebuyer’s Report focuses on safety. How safe is the property? Is it suitable for living in? These things need to be checked as there could be a mould problem, damp issues or something that does not pass the current building laws.
The report will be carried out by a property expert. They will examine the property from top to bottom, making sure that it’s safe for you to live in.
As a Mortgage Broker in Birmingham, if you’ve made an offer on an older building, we would strongly advise that you take up a Full Structural Survey.
This is the most expensive property survey because the whole property is surveyed. It will also provide the biggest insight to the property out of the three main surveys, highlighting what condition the property is in and what changes need to be made if the property purchase goes through.
A Full Structural Survey can take as long as a whole day depending on the size of the property.
New build properties work slightly differently. There is a property survey specialised for them called a Snagging Survey. This survey will point out both minor and major issues, it could be anywhere from a missing hinge on a door to cracks in the ceiling.
If the new build has already been built and it’s ready for you to move into, ideally, you want to get a snagging survey carried out on it prior to moving in. This way, you have the power to negotiate pricing if there is anything wrong with the property.
If you need help to choose the right property survey for you, feel free to get in touch with our mortgage team. We’ve helped thousands of First Time Buyers in Birmingham and Home Movers in Birmingham choose property surveys in the past – you could be next!
You can obtain the services of a surveyor to carry out a Homebuyers report or building survey through the Royal Institution of Chartered Surveyors.
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.
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.
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.
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.
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 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.
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!
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.
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.
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.
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.
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.
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!
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.
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.
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.
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.
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.
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:
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.
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.
If you’ve been on the same mortgage rate ever since you’ve bought your property, it may be time to spring clean your finances and get a mortgage review. Doing so may even allow you to access a better mortgage deal!
To put it simply, getting a mortgage review is a look-over of your current mortgage product to check if you can get a better deal or not.
When applying for a mortgage review, your Mortgage Advisor in Birmingham will want to know all about your current deal so that they can compare products. They will look at your current rate of interest, monthly payments, etc. as well as factoring in your current financial and personal situation. If your dedicated Mortgage Advisor in Birmingham can’t find a better deal for you, they’ll be honest with you and recommend that you stick with your current deal.
Spring cleaning your finances by getting a mortgage review could help you secure a competitive mortgage product. If you’ve been managing to keep up-to-date with your mortgage payments and have kept your credit score in the green, you may be able to get a better mortgage deal.
Having a mortgage review and then switching products to a new lender is called a remortgage, whereas having a mortgage review and then switching to a new deal with the same lender is called a product transfer. Depending on the deals available to you, it may be better to choose one over the other, or none at all, and stay on your current deal.
You must know that you are never guaranteed a better deal when you go for a mortgage review. It’s always worth the look though since you can receive a free mortgage review with one of our expert Remortgage Advisors in Birmingham.
As a Mortgage Broker in Birmingham, we would recommend that you take up our offer on a free mortgage review. When you choose Birminghammoneyman for a mortgage review, we will search through 1000’s mortgage deals on your behalf, trying to find the perfect one for you. Our Mortgage Advisors in Birmingham will always try and match you with a deal that is best suited to your personal and financial situation. If we manage to find you a deal that we think will benefit your situation and you are happy to proceed, we will continue to the documentation process and submit your mortgage application.
If you prefer to do things on your own, there are price comparison websites out there that may help you find different types of mortgage deals. Although some products may appear to look good, you should know that not every deal will have accounted for other costs that come with getting a mortgage. In the past, we have seen customers who have switched online because they had seen a competitive rate, but have had to fork out extra money to compensate for additional costs that they weren’t aware of. These extra charges may include product set-up fees, early repayment charges, etc. Furthermore, if you choose a Mortgage Broker in Birmingham, you will benefit from consumer protection.
If you want to, you can also go directly to your mortgage lender. If you want a mortgage review and want Remortgage Advice in Birmingham, this option may not always benefit your situation. This is because lenders can only offer you their own in-house products, they cannot access deals from anywhere else. More often than not, lenders can also have long waiting lists, which is no good when your fixed-term is coming to an end and you want to switch products. A responsive Mortgage Broker in Birmingham like us will be able to get you booked in for a free remortgage consultation/review within 24 hours of your initial inquiry.
If you are tied into a mortgage deal and want to remortgage, you may have to pay a fee to switch deals. This fee is called an early repayment charge or an ERC. You’ll have to pay this when you pay off a loan too early or switch mortgage products mid-way through your fixed mortgage period.
In Birmingham, our Mortgage Advisors will take any ERC’s into account when assessing the financial benefit of applying for a remortgage.
Once you complete your fixed mortgage term, it’s likely that you’ll end up falling straight onto your lenders standard variable rate of interest (SVR). When you are on this rate, it’s unlikely that you’ll have to pay an ERC when switching deals. You should also know that the SVR for your lender is probably higher than your current fixed rate of interest. Lenders SVR tracks the Bank of England’s base rate plus their own percentage and that’s why it can be expensive to remain on this rate.
We have lots of experience in the remortgage game, we have been helping our customers remortgage for over 20 years now. Our Remortgage Advisors in Birmingham are just a call away from helping you through your remortgage application. Now is a great time to spring clean your mortgage!
Get in touch today for your free mortgage review with a Mortgage Advisor in Birmingham. We are more than happy to help and can’t wait to hear from you.
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”.
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|
|Yorkshire & the Humber||£228,100|
|East of England||£407,400|
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:
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.
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!
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:
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:
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!
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”:
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:
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.
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.
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.
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:
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.
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:
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.
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:
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.
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.
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.
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.
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.
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.
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.
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.
As a result of the 3rd March 2021 Budget, we now know the Government’s plan to try and kickstart the UK’s economy. COVID-19 hit us quite hard, however, it now looks like things could be on their way to improve after the announcement during the latest Budget.
Regarding the mortgage market, Chancellor Rishi Sunak provided us with some great information on how he’s going to get the market back up and onto its feet. This is the news that we’ve been waiting for; it’s what we need to get us rolling again!
During the backend of last year, when 90% mortgages made their back onto the market, there was still uncertainty amongst applicants and lenders and there seemed to be no sign of 95% mortgages coming back. This was until the briefing were Sunak announced that they would make a return through a new scheme.
This new scheme is called the “mortgage guarantee scheme”. Don’t let it’s title mislead you though as it doesn’t guaranteed you a mortgage in every scenario. You will still need to match lenders criteria and pass their credit scoring systems to qualify for the scheme. Lenders will not lend to someone who cannot afford mortgage payments and carries the risk of getting their home being repossessed. Of course, this is the last resort, however, you must be aware that not everyone will qualify for the scheme.
Sunak stated that this new scheme will apply to both First Time Buyers and Home Movers. The scheme can also be used on any type of property, not just new builds.
The scheme will be start from April 2021 and will carry on until December 2022. The Chancellor says that many credible and huge lenders are backing the scheme.
As a Mortgage Broker in Birmingham, we are excietd about this news and cannot wait to see what the market has to offer within the coming months.
As well as 95% mortgages making their back to the forefront of the market, we have been given excellent news that the stamp duty holiday has been extended up to the 31st June 2021.
When the stamp duty was introduced last year, we thought that purchases would carry on as normal and people would see this government gesture as their way of saying the market is running smoothly. However, some people still eased off purchasing despite the great opportunity to do so. Now that the stamp duty holiday has been extended and along with a combination of 95% mortgages, we are expecting that more lenders and applicants will invest in the market.
At the moment, we are seeing that some solicitors are struggling to keep up with the workload. If lots of chains had collapsed then it would have partially defeated the objective of trying to push people to carry on progressing their Moving Home journey.
To keep the confidence contained in the market, the government have chosen to extend the stamp duty holiday so that property purchases up to £500,000 will remain tax-free until 30th June 2021. And properties up to £250,000 will remain tax-free until September 30th 2021.
Now that the future is looking brighter and more and more people are returning to the mortgage market, we are hoping that things are on their way to somewhat “normal”. Nothing will ever be “normal” but hopefully, things will get better.
We saw March’s Budget as a sign that the government is completely backing the sector and has big plans to get it back up and running as soon as it can. We know that the government want to turn everyone’s mindset to buying over renting, they may think that the new scheme will do this.
Your Mortgage Broker in Birmingham is still open as usual. Our hardworking team are available every day from 8am – 10pm, so don’t hesitate to get in touch with our friendly advisors. Whether it’s something to do with the market or a different mortgage question, our advisors will always be happy to help you!
If you’ve found a property that has caught your eye and you think that it could be the one for you, the next step is to make an offer on it. When making an offer on a property, you have to make sure that the seller or estate agent knows the whole of your personal and financial situation.
Giving them the whole picture of your situation puts yourself in a great position and can benefit your application. They will refer back to your circumstances and consider them before accepting your application. You are always covered if something pops up in the future as you’ve already told them right from the start.
If there is a cash buyer making an offer on a property, 99% of the time you won’t be able to beat them. However, to improve your chances of competing against other buyers, you should get an agreement in principle in place nice and early.
A mortgage agreement in principle is written confirmation that a lender is willing to let you borrow a certain amount from them for a mortgage. If there are other people interested in buying the same property as you without an agreement in principle, you should automatically be a step in front of them if you have one.
When you approach a Mortgage Broker in Birmingham like ourselves, we will arrange an agreement in principle for you within 24-hours of your application. It can even be within a couple of hours if your mortgage situation is straight forward.
If you are prepared for your mortgage and have everything else ready to go, you may be in a better position than other buyers who are still preparing last minute bits. Make sure that you have everything ready, especially if you have your heart set on a property; you wouldn’t want to lose it!
Sometimes, the seller may want a quick purchase, so if you want to quickly secure the property and are settled on a final price, you may be Moving Home in Birmingham faster than you thought.
If a property has just been listed on the market, the seller may stick to their asking price, especially if it’s gaining interest. When a property has been on the market for a while, the seller may be more lenient with the selling price and you may be able to ask for a little less.
A top tip for making an offer on a property is to research similar housing sold prices in the same area to get a feel of how much you should offer the seller. If they aren’t willing to negotiate a deal, you may have to increase your offer or walk away if you don’t want to meet their asking price.
As a Mortgage Broker in Birmingham, we also recommend that you never take someone’s first offer, as a buyer or seller. There will be a reason why the property is listed at a certain price, so make sure that you do your research first.
A property chain is where more than one buyer is linked to a transaction. For example, you are Moving Home in Birmingham and you want to make an offer on a property but you can only move in once the people buying your current home can move in after they’ve sold their home. It often keeps going and going, that’s why it’s called a property chain.
It can be very hard to avoid being tied into a property chain. Almost every home mover’s purchase will require another purchase to be made before they can move into another property. Therefore, if you aren’t linked to another property and that chain isn’t there, you actually could put yourself in front of lots of other people.
If you are a First Time Buyer in Birmingham, this won’t affect you as you are most likely renting or still living with your parents.
If you are interested in a property in Birmingham and want further advice on how to make an offer, feel free to get in touch with our amazing team of advisors. Our Mortgage Advisors in Birmingham will not only be there to give you advice on this stage of the moving home process, they will also provide you with support and guidance through the rest of it.
We know that Moving Home can be a stressful and difficult process, and that’s why we want to offer our specialist help. Get in touch today for a free moving home mortgage consultation in Birmingham