Can I Remortgage and Extend The Term in Birmingham? 

There are many different reasons why a homeowner may look to remortgage in Birmingham. You can find a lot of information about this on our website by navigating to the remortgage guide’s section.

There are plenty of options out there for homeowners, whether you are looking to remortgage to release equity or remortgage for home improvements. A particular option that does not get bought up much into a conversation is you can remortgage in Birmingham to extend the length of your mortgage term.

Why would I remortgage in Birmingham to extend my term? 

Your term is how long you must pay back your mortgage, based on the contract you signed with a mortgage lender. Popular choices are usually about 25-30 years, which is a long time to be financially responsible for something, although it also provides long-term security.

There might come a time when maintaining your payments might be difficult. For example, if your bills have risen, taking out a remortgage to extend your term can help spread the cost of your mortgage over a longer term. Reducing your monthly mortgage repayments.

This, in turn, can release much more disposable income than you can use per month. However, the downside is that your interest will also be spread over this extended mortgage term.

Meaning that whilst giving you that extra disposable monthly income will be cheaper in the short term, by the time your term has finished. you will have spent more on your mortgage.

Can I remortgage in Birmingham to extend my term if I’m borrowing more money?

Yes, you may be able to extend your term if you want to borrow additional funds or remortgage to release some equity in your home. You can usually extend your term with any remortgage product. The popular options for homeowners are remortgage for home improvements or a debt consolidation remortgage in Birmingham.

Again, whilst you will extend your term over a longer period so you can lower your monthly mortgage repayments, you will pay more interest overall by the time your term has finished.

You should think carefully before securing other debts against your home. By adding your unsecured debt to your mortgage, which is secured on your home, you may endanger your home if you cannot make the necessary repayments.

Although the total monthly cost of servicing your debt may have decreased, the total repayment cost may still have increased because the duration of your mortgage is longer than it may have taken to repay the original debts.

When wouldn’t I be able to remortgage in Birmingham and extend my term?

Although there are many mortgage lenders on the panel, there are many factors that could limit your ability to remortgage in Birmingham and extend your term. These include, but are not limited to, your age, the type of mortgage, and any mortgage debt.

Just bear in mind that there may still be options to help you reduce your monthly mortgage payments. Your dedicated mortgage advisor in Birmingham will review your case and look for the most suitable outcome to help you.

Can I remortgage in Birmingham to extend the term of my interest-only mortgage?

This can be a bit complex, as few mortgage lenders will give you the opportunity to extend the duration of your interest-only mortgage. Some may not have an issue with this, though you will still owe the lump sum of interest once your term concludes and they may want to avoid payment delays.

We tend to find that most residential properties will be on some variation of a repayment mortgage, as a residential interest-only is much less frequently taken place in modern times. Instead, it is more common to find an interest-only attached to a buy to let property.

Not only will you have the same lump sum repayment problems, but a mortgage lender may not allow you to extend your term if the property still has a tenant living inside.

In any situation, your best way may be to consider taking out a remortgage on your property so you can replace your mortgage only with a mortgage repayment. This would allow you to continue by paying both the capital and interest.

We always recommend talking to an expert remortgage advisor in Birmingham so you can better understand the options you may have before making decisions.

What if I want to reduce my term instead?

If you are wanting to reduce your term instead, which can also apply to almost every mortgage situation again. In this circumstance, quite the opposite of extending your term, you would repay much less overall, although monthly payments would increase.

Alternatives to Extending Your Term

Rather than taking out a remortgage so that you can extend your term, you may have other options available to you if you want to save money per month. We have already looked at remortgaging, but what about downsizing?

Downsizing is where you sell your current home and instead move into a smaller house. We tend to find a smaller home could cost less, reducing the need for a big mortgage, which could have lower monthly mortgage repayments if taken over the same term.

A further option, for homeowners over the age of 55, with a property that is worth at least £70,000, is equity release in Birmingham. This could allow you to release tax-free funds from your home, either as a lump sum or in occasional payments, through a lifetime mortgage.

Even then, equity release in Birmingham might not be the most appropriate path for you to take. There are also options for homeowners over the age of 50, such as retirement interest-only mortgages and term interest-only mortgages, known as RIO’s and TIO’s.

As it would work when taking out an equity release plan, with a RIO or TIO, your loan will only be repaid when you are dead or have moved into long-term care, with your home being sold at either stage.

At Birminghammoneyman, we have in house trusted and dedicated later life mortgage advisor in Birmingham. Who will be happy to review your feasible options and alternatives as a later life homeowner, advising on the most suitable path to take, based on what you wish to achieve, and your future plans.

Ask for a personalized illustration to understand the characteristics and risks of equity release and lifetime mortgages.

A lifetime mortgage can affect the value of your estate and it could affect your right to current and future means tested benefit. The loan plus accrued interest will repayable upon death or moving into long term care. 
 

Why Should I Use a Mortgage Broker in Birmingham? 

The Benefits of Using a Mortgage Broker in Birmingham

Here at Birminghammoneyman, we believe that there are many positives to using the services of a Mortgage Broker in Birmingham, instead of going direct. That is just our opinion though, of course, we would say that!

There are loads of positives going elsewhere, so it is worth exploring your mortgage options. Thankfully for us, most people will opt to speak with a Mortgage Broker in Birmingham. In this article, we will look at the pros and cons of both routes.

Mortgage Broker in Birmingham vs Going Direct in Birmingham

The first benefit of going to a Mortgage Broker in Birmingham is that whilst most high street banks can be approached directly, not all mortgage lenders can be.

This means that to get the best deal across all lenders on our panel, you will benefit from speaking with a Mortgage Broker in Birmingham, though a mortgage lender may still have some deals you cannot get going to a mortgage broker.

An experienced Mortgage Broker in Birmingham will typically require a fee, whereas this may not be the case when going direct. That said, we can help to recommend other services that you may need for much cheaper than they might be with a lender.

In previous arguments some would say that “the bank manager knows my finances inside out,” but this was no longer the case once credit scoring was introduced.

If you know what you are doing and what you are looking for, going direct can be a quick and straightforward process. On the other hand, if you do not know what you are doing, you could harm your chances of ever obtaining a mortgage, as you will not match all lender’s criteria.

A trusted Mortgage Broker in Birmingham will be able to go over the different lenders’ mortgage criteria and will be able to match you up with the most suitable mortgage deal. We always aim to get this recommendation right first time.

Mortgage Advice Past vs Present 

Back in the day, mortgage advisors from high street banks would approve you for a mortgage, regardless of circumstances. You would not benefit from correct Mortgage Advice in Birmingham or any consumer protection.

In 2014, the government banned this type of practice. Now, only experienced Mortgage Advisors in Birmingham could go about providing expert Mortgage Advice in Birmingham to customers and making recommendations for products.

The only downside is speaking with specific individuals at a bank, which means you could be waiting months, just to speak with someone.

Because of this, the usage of a Mortgage Broker in Birmingham became more popular. As a company ourselves, we offer various time slots seven days a week, allowing you to pick a time that is convenient to you, and not months in advance!

Quite often, if you book your free initial mortgage appointment early, you may be able to speak with one of our Mortgage Advisors in Birmingham on the same day.

Modern Day Challenges 

Nowadays, the most difficult part of the mortgage process is matching up against the right mortgage lenders’ criteria. It is also essential to remember that deals with the lowest rates often have higher arrangement fees.

You may have come across a really good deal, only to find that you need to pass affordability checks and be eligible for that deal in the first place. With the help of a Mortgage Broker in Birmingham, we will be able to find the most suitable deals that are suitable for you.

Newer Regulations 

Thanks in part to the regulations that followed after the credit crunch back in 2008, mortgage applications perhaps are not as straightforward as they used to be.

This is not necessarily a terrible thing, however, as it makes lenders have less of a chance of anyone falling into arrears, which both customers and mortgage lenders do not want to occur.

There are still a lot of situations that could cause some issues for applicants, some of which a Mortgage Broker in Birmingham may be able to help with. 

• You have a poor credit history. 
• You are receiving a self-employed income. 
• There is a mixed deposit source, i.e. Gifted & Savings. 
• Opting for Let to Buy. Renting your current home to buy another. 
• Being a contractor or working under a zero-hours contract. 
• You perhaps can’t quite meet affordability requirements.

Lending Criteria 

As an expert Mortgage Broker in Birmingham, we have seen mortgage lenders demonstrating their competitive prowess, trying to offer better interest rates than their fellow mortgage lenders.

Because of the changes to regulations, the other difference between these lenders is their mortgage lending criteria and whether the customer can match up with them.

Examples of how these can differ, is that some mortgage lenders may have more products for self employed applicants than others, whereas others may not but will be more lenient to something like bad credit mortgages. If you are looking at getting a mortgage as a self-employed applicant, check out our article all about getting a mortgage as a self-employed applicant in Birmingham.

Still, need more convincing?

Our trusted mortgage advisors in Birmingham will always keep you in the loop, with availability from early until late, every day of the week, responding as soon as they can.

With our services as a Mortgage Broker in Birmingham, is that nowadays people are so busy. It is often easier to use a professional service, to take the stress off your shoulders.

This is especially beneficial for professional applicants who are dealing with customers of their own, not having the time to run through their process themselves. 

The Benefit of a Mortgage Broker in Birmingham

From your first initial touch we will discuss your case, and will use our knowledge to help. We like to go above and beyond with customers that need our help.

During your process, one of our Mortgage Advisors in Birmingham will be able to discuss the maxium amount you can borrow and supply you with an agreement in principle, which can help when making an offer on a property. As well as recommend additional services like solicitors and property surveys.

We can also reccomend any potential insurance options with you, helping prepare you and your family for the future, in the event of anything unfortunate that affects your financial state.

Book Your Free Mortgage Appointment 

If you would like to go direct, that that’s fine, but wether a customer is a First Time Buyer in Birmingham, Self Employed in Birmingham, or looking to Remortgage in Birmingham, they prefer to enlist the services of an expert Mortgage Broker in Birmingham. 

Book your free mortgage appointment today with our Mortgage Broker in Birmingham and our Mortgage Advisors in Birmingham will see how we can help you along your mortgage journey.

How to Improve Your Credit Score in Birmingham

Credit Score Mortgage Advice in Birmingham

A credit score is a three-digit number that use to help decide whether you get accepted for a mortgage.

Utilising the information displayed, lenders will look at your credit report, application form as well as any other information they hold on you (if you are an existing customer). With this data, the lender can calculate your credit score representing your credit history mathematically.

By calculating this, the lender can see what kind of borrower you are and how likely it is to manage your repayments. Your score is not a specific number. Different lenders will look at other factors in potential customers, therefore, it might be best that you approach another lender as you may not be ideal for one lender.

Knowing Your Credit Criteria

• 300-580 – Lenders will classify this as a poor score which can lower your chance of getting your mortgage application accepted.
• 580-670 – This is known as a fair credit score, and some lenders may be more lenient with accepting your mortgage application.
• 670-740 – Being scored at this level will be helpful in increasing your chances of having your mortgage applicated accepted. This is a common category many customers fit into.
• 740-800 – This a brilliant score! Having this at a higher level will increase your chance of having your mortgage application accepted.
• 800+ – Having a score that’s 800+ is exceptional; the chance of having mortgage application accepted is above average; congrats!

Typically, the higher your score, the better your chance of being accepted for your circumstance ‘best’ deal.

Reasons Why Your Credit Score Dropped?

It can be common for customers to get in contact with our team asking if they Can Get a Mortgage With a CCJ, after being declined for having a ‘low’ credit score. Sorting out these types of cases is something we deal with daily as a Mortgage Broker in Birmingham. We also encounter many applicants who are the subject of a county court judgment (also known as a CCJ).

If you fail to repay a loan/borrowed money, you will likely get a CCJ. Having a CCJ can leave a severe mark on your credit for 6+ years. It would be wise to pay off your debt before applying for credit. The CCJ will show up on your file, making the lender ask questions. Even the little things can sometimes cause damage, such as:

• Failing to stick to credit agreements.
• Failing to keep up with your mobile phone contract payments.
• Dipping into your overdraft every month.
• Using multiple price comparison sites.

The above are only several examples that could have a negative impact; there might be other reasons you could have bad credit. Whatever situation it is, our team is here to help you improve your score to increase your chance of your mortgage application passing the Lenders criteria!

There are numerous ways to improve your score to try and get you up into that next bracket, and the good news is it may still be possible to secure a mortgage in some cases!

Look at Ways to Improve Your Credit Score

It can be a time-consuming task to try, however, this handy guide may help you go up another bracket. An important point you need to know is that each lender has its lending criteria, so your score may impact what deals you can access. Even if you have an excellent score, it doesn’t always that you will match every lender’s criteria. Sometimes, it’s down to your circumstances and up to your lender’s criteria.

1. Avoid Unnecessary Credit Searches

When you go directly to a lender and their in-house mortgage advisor puts you through for a deal, they will perform a soft or hard credit search on you. This search will be shown on your credit file. In the case where your application is declined, the credit search performed could harm your credit score.

Carrying out numerous searches may lower your chances of getting accepted for a mortgage in the future. Having a responsive Mortgage Broker in Birmingham will be helpful. We always aim to get it right the first time by looking at your credit score and only approach lenders that hold criteria we know you will pass.

2. Avoid Credit Applications

One thing that can sometimes backfire on you is applying for credit, especially if you don’t have a reason for doing so. Paying back the credit that you’ve borrowed may look good on your application. On the other hand, your credit score could end up in trouble if you fail to meet the credit payment deadline.

Amid your mortgage application, we strongly recommend that you hold off applying for credit. You might be able to get away with it, however, lenders may believe that you are struggling for money in other scenarios. Lenders could be under the impression that you are putting it towards your deposit or using it to aid your mortgage payments.

3. Are You Registered on The Voter’s Roll?

One beneficial and easy way to improve your credit score is to make sure you are registered on the voter’s/electoral roll. By being registered on the roll, you are proving who you are. It’s simple, you just go to the government’s electoral roll: and it’s easy to register from there.

When registering on the voter’s/electoral roll, you must provide accurate information. You need to make sure everything is filled out correctly and you will need to use your current living address, not your previous address.

4. The Importance of Updating Your Address

Our team recommends that you make sure that all of your accounts and details are linked with your current address during the mortgage application process. If you are a First Time Buyer in Birmingham, this won’t impact you as much because this is your application.

On the other hand, if you Moving Home in Birmingham from rented accommodation and you still have your parent’s address linked with any of your accounts, your Lender will identify this straight away. Because of this, you need to change your addresses and make sure they’re up-to-date before applying. Your credit score could be affected if you are linked to the wrong address.

In the circumstance where you decide to approach a broker, our expert Mortgage Advisor in Birmingham will support you with this. Your dedicated advisor will check that everything is updated with you to make sure that you are in the best position for being accepted for a mortgage.

5. Don’t Run Too Close to Your Maximum Limit

Running too close to your maximum limit on your card(s) each month will massively affect your credit score. Lenders like to see that you can pay off your credit card balance each month as it shows that you can manage your finances.

If you are exceeding credit card limits and constantly dipping into your overdraft, the lender will see you as an applicant who isn’t taking their finances seriously.

6. Remove Financial Links to Others

In the circumstance where you are still financially linked to an ex-partner or family member, you might be unaware of your credit score being potentially harmed. You won’t be able to remove your links if the account is still active and live. Make a request with the credit reference agencies to clear your connection.

7. Is it all About Your Credit Score?

In some cases, the lender may be lenient, however, this depends on the lender and how strict their lending criteria are. If there are some personal reasons involved, your lender may be considerate and factor them into your application. As mentioned, it all depends on the lender.

As a Specialist Mortgage Broker in Birmingham, we will always be open and honest with you as well as factor in every bit of detail. Regardless of whether you have a score on the lower end of the spectrum or not, our knowledgeable team of Mortgage Advisors in Birmingham will work hard in finding you a deal that will be suitable for you. With access to a large panel of lenders, some of who offer specialist mortgage products, we will work hard in finding you the one that will achieve your mortgage goals.

Can you get a Mortgage with a Default in Birmingham

A default is a notice that you will receive if you are in breach of a credit agreement.

When taking out credit, you will have to confirm that you will be able to pay the funds back. If you cannot do this, you are breaching the agreement between yourself and the creditor. The default will appear on your credit file; once it does, your overall credit rating and score will be severely impacted.

When issued a default, you will get the opportunity to “satisfy” the default, or in other words, pay it off. A satisfied default will still have a negative effect on your credit rating.

Can I get a mortgage in Birmingham with a default?

During your mortgage application, one of the main things that your lender/mortgage broker in Birmingham will look at is your credit history. You should know that the better your credit history, the easier it should be to obtain a mortgage.

A mortgage is a huge financial commitment that can last over 25 years. Your credit history will show that you have received default and have breached a credit agreement; they will even be able to see why you have received a default.

It’s all about risk. Lenders need to know that you are a reliable applicant before lending to you. This is why they will also consider how long ago the default was issued. If the default has recently been issued, your chances of getting a mortgage are very low. Lenders will be more likely to accept your application if your default was issued a long time ago. On the other hand, this is not guaranteed, it depends on your circumstances and the mortgage lender.

What impact does a default have on my mortgage application?

A default in your name immediately impacts the lenders you can and cannot access. You will have to limit yourself to specialist lenders and those accepting applicants with bad credit in Birmingham.

As a Specialist Mortgage Broker in Birmingham, we have a large panel of specialist lenders, each with their own unique mortgage deals. Some of these products may be able to help you get a mortgage with a default.

Generally, these products come with high rates of interest early on. When it comes to the time, there are many reasons to consider a remortgage, you may be able to find a new product with a competitive rate of interest. Your default may be cleared from your file by this point too.

Does the type of default make a difference?

Remember that lenders can see the reason why you have been issued with a default. This could make a difference in your ability to get accepted for a mortgage.

Some lenders may be more lenient with you if you have received a default due to missing a mobile phone payment over a mortgage payment. The more serious the default, the less likely a lender is going to accept you.

Usually, most lenders treat defaults equally. At the end of the day, you have received a default for failing to meet a credit agreement. Most lenders will not want to take the risk in case this happens with your mortgage payments.

What if I’ve not satisfied my default?

If you have not satisfied your default, your mortgage options in Birmingham may be even more limited. You may need to opt for a bad credit mortgage in Birmingham. Contact us for First Time Buyer Mortgage Advice in Birmingham in this case, we can also look into helping applicants who are Self Employed in Birmingham too.

Lenders mainly focus on the date that the default was issued over whether or not it has been satisfied. You may have more chance of being accepted if your default was years ago rather than if you received it last week. If you do satisfy your default, your lender will be able to see “satisfied” next to it on your credit file.

How long will a default remain on my credit file?

Typically, a default will remain on your credit file for 6 years. Even if you have satisfied this default, it will still remain on your file.

This does not mean that you will be unable to get a mortgage during this period. There are sometimes alternate mortgage options available through specialist lenders. At the end of the day, you have a default on your file, you may have to be patient.

How soon after a default will I be able to get a mortgage?

There is no exact length of time, you will just have to find the right lender. We can try and help with this. As a Mortgage Broker in Birmingham, we have many different specialist lenders on panel that we can access for you.

As time passes, if you do not manage to get a mortgage with a default in your name, you can spend time rebuilding your credit score. This will show lenders that you are improving how you manage your finances and it could allow you to access better rates.

Tips for Improving Your Credit Score

Upon receiving a default, your credit score will massively dip. It may stay like this for a long time too. This is why we suggest trying methods to Improve Your Credit Score in Birmingham within the 6 years of the default being associated with your name. A good way to start is to satisfy it straight away.

You may need to wait for the 6 years to pass until you see a difference. If this is the case, you should make sure that you are registered for the electoral roll and that your addresses are the same across your credit and store accounts.

You could even take out the lowest limit credit card available to you at your bank, and only use it for essentials such as shopping and paying it back in full each month. It may take some time, but you should see your credit score improve.

Have a default? Book a Free Mortgage Appointment in Birmingham

If you have a default in your name and want to see whether you are able to get a mortgage, feel free to get in touch with our team or alternatively, book a free mortgage appointment online to speak with one of our Specialist Mortgage Advisors in Birmingham today. We are available 7 days a week, so choose a date and time that suits you and your personal situation.

10 Factors to Help You Decide Where to Live in Birmingham

Factors To Consider When Moving Home in Birmingham

If you are a First Time Buyer in Birmingham whos looking to begin a chapter in your life in a new property? You may be looking at Moving Home in Birmingham. In this article, we have collated the top ten factors to consider where you should live next.

1. Hustle and Bustle of the City or Relaxing Countryside

Firstly, you need to think about what you are looking for when finding the perfect place to live. You may be into the hustle and bustle of the city and may work in the city centre of Birmingham. On the other hand, you may be looking for a more rural landscape that is peaceful. Either way, there are both positives and negatives to each lifestyle.

2. Transport Links

Transport links usually are a massive factor when people are looking for a location to move to. With this in mind, it can be helpful to link at the transport links available whether it’s train, bus or even motorway links.

3. Schools & Education

For those looking to start a family or are looking to further down the line, finding a property that is located in a catchment area of a secondary school or a range of schools can be an important point in the decision process. If you are looking at living within an area of a reputable school, there are local authority websites available that can give you insight into how certain schools perform e.g Ofstead reports.

4. Facilities

You may want to live in an area where a lot of the facilities you need are a short walk or drive away from your home. The important factor is whether the facilities available are essential to you which can help you when comparing different areas. These desired facilities could include a local park for your children or a gym that is located close to home or on your route from work. You may even like a bank close to you to make financial management easy and convenient.

5. Friends and Family

Being close to your family and friends could be the factor that determines whether a location is perfect for you. Especially if you want to be close to them to help them out or you may need to some help. You may need support with things like childcare which may include them coming around regularly.

6. Value for money

What you consider value for money may differ from another person. The main deciding factor you may have could be a property that you get the most out of your money meaning somewhere a little cheaper and better value for money. In some cases, you may need to compromise on some other factors if you are looking for somewhere that is better value for money.

7. Community

The community in an area could be a factor that determines whether you have a positive or negative experience. One of your desired factors may be living in a small neighbourhood with a strong community spirit. Many communities have a dedicated website or Facebook group that has a lot of local people. On the flip side, you may find community is not a determining factor but you are looking to find somewhere quiet. Either way, it can be a good idea to research the area and speak to the local estate agents.

8. Jobs

A new work venture can be one of the most common reasons as to why people move home. Having a short commute to work would be ideal for many people as it can be a lot more cost-effective. When you are job hunting after the move, it can be good to research the area before moving. You can find out if there are any business parks close by or big companies that may have some vacancies.

9. Property Type

These days, there is a large range of different types of property on the market for people to choose from. You might be looking for an end terrace with a lovely garden, or a modern, urban apartment. Either way, it can be good to look at different options available and find the one that is fitting for what you are looking for and can live comfortably for a good length of time.

Futher in the process once you’ve had an offer accepted, but sure it’s actually worth what you’ve paid for. Tp establish the true value as well as the overall condition, a property survey in Birmingham will be carried out. We do have a handy guide on what is a property survey and how a member of our team will be more than happy to reccomend the right survey for you.

10. Investment

Your new property may be your forever home which means it can be wise to look into whether there is any proposed investment in the area. If you find there are some proposed investments in the area, you need to think about whether this will you benefit you and the lifestyle you are looking for. You may find these changes could impact your perspective further down the line. For example, you may have found a quiet area that you like but there are plans for more housing development on the next street which could impact the overall environment.

Once you start to reach the end of your fixed mortgage term, if you’re not looking to sell up and find a new property, then it’s time to enquire about starting your Remortgage application!

Working from home has now become a popular option in the workplace. This might have been something that people never thought they would do and have preferred it when it’s been the only option for working. This has resulted in converting their kitchen, living room, or even remortgaging for a home office in Birmingham.

Where to Live Mortgage Advice in Birmingham

Once you’ve accumulated a large amount of savings for a deposit on your first property and are ready to take that first step on the property ladder. It’s now time to get you prepared for a mortgage in Birmingham!

Why has my Mortgage Application Been Declined in Birmingham?

Been Declined? Mortgage Advice in Birmingham

Why have I been refused a mortgage?

We tend to find some First Time Buyers in Birmingham struggle to secure a mortgage because they have poor credit. You see, one lenders’ credit score can vary, some are more difficult to pass than others. Some lender can sometimes be quite reluctant in terms of informing you as to why you failed their lending criteria. This may be down to a mixture of reasons. Sometimes the lender themselves can’t precisely say why your application was unsuccessful because ‘it is not knowledge in their hands’.

We recommend you speak with one of our Mortgage Advisors in Birmingham. During your free initial mortgage appointment, we can obtain a up-to-date copy of your credit file. Next, we can search 1000’s of deals and find you a product with a lender. Finding you a lender to match your circumstances may help you have a better chance of succeeding with a mortgage.

For most lenders the larger your deposit, the more likely you will be accepted for a mortgage. A larger deposit can help pay off a larger chunk of the property value. This means that you’ll most likely borrow less and the lower the loan-to-value.

Declined Due to Having ‘Poor’ Credit Score

There are different ways to help Improve Your Credit Score in Birmingham like having a credit card that you should use regularly and making sure you pay off the full balance each month. Other ways include making sure you are on the voter’s roll and closing any old bank accounts, credit, and store cards that you are no longer using.

Your Mortgage Broker in Birmingham is here to help

Here at Birminghammoneyman, our team will check that you match the lender’s criteria to make increase the chances of you passing their credit scoring before you submit your mortgage application to a lender. We aim to get this right first time!

We are here to help you find a deal that will match your financial circumstances, regardless of their situation, we try our best with all applicants, but cannot always guarantee success. Whether you have bad credit or good credit, we will strive in finding you a great mortgage deal through a lender that will accept your mortgage application.

Lenders criteria

Lenders have criteria that are individual to their products. This is why some lenders are more than others for your situation. Each lender usually has a niche for themselves in order to attract good quality mortgage borrowers who might not match the criteria of their competitors, so they can get ahead in the market. Below are some examples of why your application is getting declined for being outside of policy:

• Adverse credit history – If you take out adverse credit Mortgage Advice in Birmingham as early as possible this can give your application the best possible chance of success.
• A married applicant looking for a mortgage in a sole name – Lender do prefer two salaries, but oue team are able to look into Sole Name Mortgage Advice in Birmingham for married applicants on your behalf.
• Not enough deposit.
• Non-standard property construction.
• Minimum/maximum age or mortgage term.
• Minimum/maximum loan amount.
• Length of time in employment or being an applicants whos Self Employed in Birmingham.

Through utilising our 20 plus years of experience as a reputable Mortgage Broker in Birmingham and access to a large panel of lenders and criteria, we can recommend the most appropriate mortgage tailored to your financial situation. Book your free mortgage appointment today, to speak with one of our Specialist Mortgage Advisors in Birmingham today, to see how they can help.

Agreement in Principle: Frequently Asked Questions

A Brief Overview of an Agreement in Principle

Customers looking to obtain a mortgage will need to get an Agreement in Principle first from a mortgage lender. As the name suggests, an Agreement in Principle is a simple way to find out the maximum amount you can borrow to buy or Remortgage in Birmingham.

You will receive an Agreement in Principle before the final checks, and whilst you won’t be guaranteed to be accepted for a mortgage. It means you are on the right path. First Time Buyers in Birmingham will find these benefits because it gives them a better idea of which properties you can afford and makes it easier to make offers.

Despite what others may say, a Mortgage in Principle can be known as a Decision in Principle (DIP), Agreement in Principle (AIP). They are all just different abbreviations depending on where you are located.

Armed with an Agreement in Principle, you have opened yourself up to negotiating on any offers. As you have shown the seller that you are a ‘serious’ buyer who owns that property, you have the funds to proceed.

Frequently Asked Questions Regarding Agreement in Principle:

Does obtaining an agreement in principle affect my credit score? 

Nowadays, more lenders choose soft credit searches as they leave your credit score unaffected instead of a hard credit search which can leave a severe imprint, especially if you don’t pass each time.

Weren’t not saying that a soft search will not affect you either, but it is not something that tends to happen often as soft searches don’t go quite as in-depth. However, your lender will have reasons for choosing one of the two. 

Should I avoid hard credit checks? 

If you do not have hard searches done regularly, then having one done shouldn’t make too much difference. What starts becoming a problem is when you start having a lot of different hard searches taken out on you within a short time.

If you are already aware of how good your credit rating is, don’t be put off by the idea of having a soft or hard credit search done, especially if the lender suggests doing so is the most suitable option for you.

Does having an Agreement in Principle guarantee a mortgage?

Unfortunately not, even armed with an Agreement in Principle, we cannot guarantee you’ll be successful with a mortgage as your lender will still need to see all documentation to make a final decision. 

We have spoken to a handful of customers after their application declined, as they have to miss the small print that requires them to obtain an Agreement in Principle beforehand.

To demonstrate to your lender that you can handle your money responsibly and someone who looks like a good candidate to start your mortgage process, you will provide them with proof of ID, the last three months payslips and bank statements. 

Please remember that Self Employed Birmingham mortgage applicants looking to obtain a mortgage have slightly different lending criteria to meet.

Can I make an offer without an Agreement in Principle? 

Most estate agents will ask you for one of these as they will need to know you can proceed with your mortgage application. It’s worth trying, but we believe you would be far better off having on in hand.

How long does it take to get an Agreement in Principle? 

As a fast and friendly Mortgage Broker in Birmingham, one of our mortgage advisors has a track record of obtaining you an Agreement in Principle within 24 hours from the start of your initial appointment.

How long does an Agreement in Principle last?

Take your time and care when looking for that ‘dream’ property. There is plenty of time not to jump at the first house you see as an Agreement in Principle sometimes expires after the 30-90 days mark.

Need a little bit longer, no problem, our team of Mortgage Advisors in Birmingham can quickly turn around a new one once you find a property that looks right for you and is ready to put down an offer.

To counteract the feeling of disappointment if your lender comes back and declines you, we recommend getting an Agreement in Principle as early as possible to ensure you are mortgage ready for the process.

Spring Clean Your Mortgage In Birmingham

Mortgage Review Advice in Birmingham

Have you been on the same mortgage rate ever since you’ve bought your property? If so, it may be time to spring clean your finances and get a mortgage review. Doing so may even allow you to access a more suitable mortgage deal!

What is a Mortgage Review?

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 Remortgage in Birmingham, 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.

Why should I get a Mortgage Review?

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 improving your credit score to make sure it stays 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.

How can I get a mortgage review 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 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.

Remortgaging and early repayment charges

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 lender’s 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.

Remortgage Advice in Birmingham

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!

Book your free mortgage appointment online with a Mortgage Advisor in Birmingham today. We are more than happy to help and can’t wait to hear from you.

Difficulties Getting a Mortgage in Birmingham

Specialist Mortgage Advice in Birmingham

We often find that there are a lot of questions within the mortgage industry that crop up regularly with our Mortgage Advisors in Birmingham. So, we have compiled a list of some of the more popular subjects to ease customers worries:

The Impact of Childcare costs

Usually, there is no risk of getting turned down for a mortgage if you have childcare costs involved, as most people who Remortgage in Birmingham would tend to have had children after Moving Home for a bigger space.

When you submit a mortgage application, you will need to provide evidence of your income, as well as details of all your outgoings, such as your childcare costs and utility bills.

If your childcare costs are enormous, then this is likely to have an impact on the maximum amount you’ll be able to borrow.

When it comes to childcare costs, lenders affordability assessment varies. Meaning that your maximum borrowing capacity will differ from lender to lender, this is where a Mortgage Broker in Birmingham can help you.

Some lenders will also consider child benefits and other state benefits, sometimes squeezing up the maximum mortgage allowable.

Choosing us to help you in your mortgage journey, our Mortgage Advisors in Birmingham can search thousands of deals and find you the most suitable lender who is likely to take a more flexible approach to your circumstances.

Mortgage Advice following Divorce/Separation

Nobody takes out a mortgage with their partner only to end up separating further down the line, and the process can be pretty upsetting. Unfortunately, not everything works out, and you end up in this situation. You will need to sort out many things, mainly sorting out your financial situation.

Being linked with one another, you will need to remove that link and prove you can be financially independent, and this isn’t as easy as it sounds; removing your financial relations from others can be complicated.

As a Mortgage Broker in Birmingham, we’ve seen many different situations where a divorce or separation has impacted a mortgage. You need to prove to the lender that you are financially stable and can keep up all the repayments by yourself.

When people come to us for Specialist Mortgage Advice in Birmingham, here are usually the questions we receive regarding this topic:

• How do I remove my ex-husband/wife from my mortgage?
• How do I remove my name from my ex-partner’s mortgage?
• Can I have two mortgages?

Just bear in mind that it’s all about the risk as far as lenders are concerned. They ideally look to avoid repossession situations at all costs.

We recommend you get in touch for Specialist Mortgage Advice in Birmingham. Please book your free mortgage appointment to speak with one of our fantastic mortgage team today.

Starting a New Job – Can I get a Mortgage?

Some lenders require you to have been at work continuously for a particular time, whereas others are more lenient with this.

If you are at the stage of starting a new job shortly, you may still be eligible to obtain a mortgage if you have a signed contract and job offer letter. Although it’s essential to remember that gaps in employment may be a problem with lenders – probationary periods are usually okay.

Proving your deposit

These days, Anti-Money Laundering precautions are pretty stringent. To abide by these precautions, all lenders will need you to evidence your deposit and where the money originated. Your lender, solicitor and the estate agent you are buying from may ask you for this too.

Cash is not acceptable. The bank will question any significant cash deposit, which could lead to a rejection of your application.

All of your deposit coming from a gift can be a regular occurrence and is possible. There needs to be written evidence from the person gifting you the money that it is a gift, not a loan.

Open and Honest Mortgage Advisors in Birmingham

As an experienced Mortgage Broker in Birmingham, we have lots of valuable experience, and we know what lenders are looking for in mortgage applicants.

They are constantly relying on different way to improve your credit score, which most high street lenders now do to save them time and money and produce consistent decisions.

If you find it challenging to match with lenders criteria, it could be the perfect time to speak to a Mortgage Broker in Birmingham, like us. We can talk you through some simple steps you can take to improve your chances of your mortgage application being successful.

Speaking to a Mortgage Advisor in Birmingham could get you a couple of steps closer to securing a mortgage deal. These steps can be straightforward to do. We will help you all of the ways through the mortgage process. Get in touch to speak to an expert Mortgage Advisor in Birmingham today.

Fixed-Rate Mortgage Advice

Some people prefer to know how much their monthly mortgage payments will be. If this applies to you, then a fixed-rate mortgage would be better suited for your circumstances.

What is a fixed-rate mortgage?

A fixed-rate mortgage is when your monthly mortgage payments will be a set amount every month. You need to be aware that the longer you fix for, the higher the rate becomes. But this will not change the duration of your term, which can vary anywhere from 1-10 years.

Which is the cheapest fixed-rate mortgage?

If you are are a first time buyer in Birmingham looking for a cheaper fixed-rate mortgage, make sure to avoid taking out a longer rate. Otherwise, you could face much higher interest rates if you take one out any longer than 2 years.

If you take out a mortgage for ten years at a certain percentage, interest rates might have risen during your term, leaving the lender out of pocket whilst you’re sitting comfortably on a lower percentage.

That presents a higher risk to the lender, so longer terms tend to come with higher rates. In sticking to a shorter-term fixed-rate mortgage, you will find yourself with a better rate, but only for that two years.

Those two years will eventually come sooner rather than later, implying that you will have to start searching again for more deals at the end of the mortgage.

If the interest rates have risen during the duration of those two years, then you could be faced with higher payments than you were used to at the start of renewal.

Should I fix my mortgage for five years?

If you prefer to limit searching for new deals every two years, then maybe you would better suit a 5-year rate. By fixing it for five years, you would have a stable recurring payment for a much longer time.

As previously discussed, being on a fixed-rate mortgage for 5 years will mean that you will be paying more per month than you necessarily would on a two-year rate.

Should I take out a long term fixed-rate mortgage?

When people consider taking out a long-term, they usually range anywhere from 7-10 years. Long term fixed-rate mortgages were never a popular choice to choose, and they aren’t something we would recommend. But, like most mortgages, there are both pros and cons to taking out a long term fixed-rate mortgage, there are many other different types of mortgages in Birmingham.

Anything could happen within a decade, so committing to a fixed payment for as long as 7-10 years may create problems with lenders. If the rate suddenly drops below your current rate, instead of rising. You may end up paying well over what you otherwise would’ve been, and once you are in the deal, you cannot get out of it.

Early Repayment Charge (ERC)

A Repayment Charge (ERC) is where something happens that affects your financial situation. This leaves you having to repay your mortgage earlier than you had initially expected and, your lender may present you with a charge.

How they calculate the charge is they calculate a percentage of the remaining that you owe. An example would be if you manage to pay off your £100,000 mortgage early and your ERC is 4%. You would be charged a £4,000 penalty as you have broken the fixed-rate contract.

Nobody can get away with not fullying paying off their fixed rate and will still be charged with an ERC. For example, if someone is aware that their fixed rate is due to end soon. But start looking up deals for their next fixed-rate mortgage.

If they find a great deal and think that the rate may increase, they may look to pay off the rest of their fixed-rate payments to switch to this new deal, even though this, of course, comes with additional charges.

We advise that you avoid chasing “headline” deals advertised. Chances are, your circumstances may have changed, and you’re not guaranteed to get it at the rate you were hoping to achieve.

If you are a first time buyer in Birmingham or moving house in Birmingham and would like more information or some help with a fixed-rate mortgage, our experienced team of mortgage advisors will be on hand to provide any assistance they can.

Remember that the lowest rates come with the highest setup fees, which some customers are keen to avoid. Get in touch today for more fixed-rate mortgage advice in Birmingham. Alternately we do feature an article on the benefits of using a Mortgage Broker in Birmingham, we can get your application on the right track and find you a suitable deal.