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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 a property 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!

spring clean mortgage in Birmingham

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 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.

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 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.

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 credit scoring, 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.

How Much Deposit Do I Need to Purchase a House in Birmingham?

How Much Deposit Do I Need to Purchase a House | MoneymanTV

First Time Buyer Mortgage Advice in Birmingham

What you are trying to achieve and how your financial situation looks determines how much deposit you need to put down to purchase a property in Birmingham. Here your open and honest Mortgage Broker in Birmingham will break down how much you might need given your situation.

The times of 100% and 125% mortgages are now firmly in the past. Now that the Credit Crunch is a thing of the past, lenders seem more confident about offering customers the ability to take out a 95% mortgage. Before being eligible to take out your mortgage, it is necessary that you prove to the lender that you can keep up your monthly repayments responsibly and on time. 

Proving to do so will assure the lender that they can trust you and that you are not a risk to them in the future. The last thing a lender will want to deal with is for a borrower to be reckless with their income and fall into arrears, which would mean the lender has to repossess the home.

Saving for a deposit is often viewed as the most challenging part of the process for many First Time Buyers in Birmingham and one of the biggest hurdles in the property market. Along with this, various factors could make it seem even more intimidating to someone without experience in this field.

There are often many questions about deposits, so here at our Mortgage Broker in Birmingham, we try and answer as many as we can for our customers in need.

Why do I need a deposit?

Pre-2007, before the market crashed and we entered the Credit Crunch, 100% mortgages were readily available for First-Time Buyers in Birmingham. In some cases, mortgage lenders were even offering 125% loan-to-value mortgages. What this means is, if you were buying a property valued at £125,000, they would lend you up to £150,000.

To reduce their lending risk, lenders will need you to put down a deposit. If they lend you 100% of the purchase price and, unfortunately, fall into arrears, they would need to repossess the property. It would only take a slight fluctuation in that area’s house prices, which would be a loss on their end.

Also, if you haven’t invested some money, whether it be from your income or a relative’s, into your home, then suddenly encountered any hurdles during your term, it would be too easy for you to “walk away”. Not to mention that if you cannot save up a deposit of at least 5% of the property purchase price, you may not be financially ready for such a significant commitment just yet.

What about putting down more than a 5% Deposit for a Mortgage?

If you happen to put down a larger deposit than the usual standard, then more often than not, you’ll find that your lender may offer you a lower interest rate. Again, this all comes down to risk because they will lend you less, making you less of a risk. It is essential to know that products are offered in different bands of 5%, with 95% of Mortgages being the most costly of the lot.

Can I take out a Personal Loan for the deposit?

You might find that this is indeed a possibility in some cases, though it is not very common. Your mortgage lender will consider it as a monthly payment and therefore put it down as an additional credit commitment on your part. As this is the case, you will likely be granted a smaller mortgage rather than the one you originally would have qualified for if you had not borrowed the deposit from a credit provider.

Mortgage lenders widely dislike this because although part of the payment will be going to another party, you are essentially borrowing 100% of the purchase price, plus interest on both the mortgage and the loan individually.

Do lenders accept a Gifted Deposit for a Mortgage?

The majority of mortgage lenders will accept a gifted deposit, and these can come from a variety of people. Generally speaking, this is from friends and family. There are specific rules that the ‘donor’ will have to adhere to, such as confirming that it is purely a gift and not a loan that is needed to be paid back at any point in time. They must also provide ID and proof of funds to help the lenders out with anti-money laundering regulations.

We can safely say that if it weren’t for the ‘Bank of Mum and Dad’, the property market would look completely different.

Evidencing the deposit

As mentioned earlier, various specific forms of ID and documents are needed to evidence where your funds came from, as lenders like to see how your income has been built up and how you have saved up.

If it is showing in your account that you have had any large deposits moved into your bank account recently, then you will need to provide the lender with documents to evidence exactly where it came from. 

For example, if you have recently sold something expensive like a car or something highly valued that you’ve been holding onto, you will need to provide the receipt and how much you sold the asset for, which should match the amount shown in your bank account.

Large cash deposits usually present themselves as a significant problem, especially when it comes to audit trials. Unfortunately, this can sometimes be one of the trickiest parts of the application. The longer the funds have been in your account, the easier life will be for you and the lender.

If you are selling your home or a property in your portfolio, then the Memorandum of Sale provided by the Estate Agent will be sufficient proof.

Help to Buy Equity Loan & New Build Mortgages

If you qualify for the Government’s Help to Buy Scheme, the minimum deposit required will still be 5%. You can top this up to 25% via the equity loan, which will allow you to obtain a lower rate mortgage. A vital factor to bear in mind is that if you consider this option, then the 20% deposit provided by the Government is to be seen as a loan. Whereas a Gifted Deposit is a gift, the Government Loan will need to be paid back.

Buying as a Sitting Tenant/Buying from a Family Member – Is a deposit still needed?

You may not always necessarily need a deposit for a property. If the house is worth £100,000, and you have been offered it at some form of discount, for example, £90,000, then some Lenders will accept this as your deposit. This works well if you have the Right to Buy Scheme from your Local Authority or other social landlords, as you may be offered a discount here too.

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.

What is a Fixed-Rate Mortgage | MoneymanTV

Which is the cheapest fixed-rate mortgage?

If you are 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.

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 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.

How Much Deposit Are First Time Buyers in Birmingham Putting Down?

Mortgage advice in Birmingham for first time buyers

For some, buying a house and taking out a mortgage is a daunting experience and arguably one of the most significant financial commitments of your life.

In your case, it would be best to prepare and save for a large deposit before proceeding with a mortgage in Birmingham.

After all, deposit amounts, purchase prices and loan-to-value percentages for first time buyers vary based on the individual and their circumstances. We recently carried out a study on first time buyers in Birmingham compared to Coventry to see the averages for these variables. Here is a closer look at the data:


How Much Deposit Are First Time Buyers in Birmingham Putting Down?

Average deposit amount

We find that higher house prices require a higher deposit to receive better rates for the borrowing amount.

When looking at house prices in the West Midlands, the average deposit is the same across the board. The study showed that the average first time buyer deposit amount in Birmingham is around the £32,000 mark, whereas in Coventry, the average was around £35,200.

Many first time buyers can save up a portion of their deposit for themselves; others received a gifted deposit from a family member or a friend.

Having this gifted deposit provides extra support if the first time buyer struggles to make up the remaining funds. A gifted deposit can lead to more competitive products and lower interest rates.

Average purchase price

House prices in the West Midlands are relatively balanced out. Birmingham average purchase price is £181,000, only a 12% increase from the rest of the neighbouring areas like Coventry which stands at £205.750.

Average loan-to-value (ltv)

Your loan-to-value percentage is calculated by dividing the mortgage amount by the property price and multiplying by 100.

The lower the loan-to-value, the more favourable rates you are likely to be offered. Reflecting on the data gathered, the average LTV in Birmingham comes in at around 82%, which is 1% less than Coventry.

LTV Infographic for First Time Buyers in Birmingham

Are you first time buyer in Birmingham?

With a vibrant economy, some very affordable living and a friendly atmosphere, Birmingham and its surrounding areas are a prime destination for people to live.

With gifted deposit popularity on the increase and lower interest rates, Birmingham could be ideal for first time buyers to invest in their first home.

As a mortgage broker in Birmingham, we would advise that you speak to your mortgage advisor and get an agreement in principle turned around as quick as possible so you can start your first time buyer mortgage journey in Birmingham right away.

Right To Buy Scheme Mortgage Advice in Birmingham

Right to Buy Scheme in Birmingham 

The right to buy scheme in Birmingham allows individuals living in council properties the opportunity to purchase the property they’re living in if they have lived there for a prolonged period of time.  

You will be offered the opportunity to purchase at a discounted price. This proposed discount will be used as your deposit meaning you are able to organised your remaining savings to help with the rest of the process. 

What is the Right to Buy scheme? 

The right to buy scheme in Birmingham was deemed helpful around the time of the ’80s when it allowed a lot of individuals to become homeowners for the first time. On the other hand, it was deemed controversial.  

The main reason for this is due to the dilemma of the scheme turning the homes into privately owned therefore taking them off the public sector, this can be a disadvantage when there is already a housing shortage. As a result of this, the dynamics of council estates have changed.

If you’re interested In the right to buy scheme, the first step is to see if you’re eligible to purchase the property; this is done by completing an RTB1.

Following this, a person will arrange to value your property and inform you how much the property amounts up to. From this, you’ll find out the percentage discount you’re entitled allowing you to gain more of a level idea of future figures involved with the mortgage.

You will then be able to move forward after filling out forms included in a pack that will be sent to you by your local authority allowing you to move onwards.

The way that Lenders will calculate how much you’re able to borrow is done in the same way as any other mortgage: based on your income and expenditure.

This means that it’s still important for you to look ahead and be sensible with your finances, along with checking your credit score. 

What fees are included? 

There are fees involved just as there is with other mortgages so you can prepare and be ready. These can include: 

  • Lender’s valuation fee (some Lenders do this for free, proving helpful to save on finances) 
  • Lender arrangement fee (Sometimes this isn’t necessary) 
  • Mortgage Broker’s Fee (An experienced Advisor will be able to support you through the process) 
  • Solicitor’s costs 

The right to buy scheme was set up so that individuals were able to have a wider opportunity to become Homeowners.

To be able to start their journey on the property ladder. If the involved property is sold before a certain amount of time, then you will be issued a penalty.

This will be in the form of repaying a sum of money linked to the original property discount generously presented at the start of the process.

It is certain factors that people are deterred from the right to buy scheme. Such as carrying out their own repairs and maintenance that come with owning a home.

On the other hand, the majority of people who do wish to take the opportunity, do so because if they tried another way, it may prove more difficult. 

Lenders rule Out 33% of All Mortgage Applications

This article was initially published back in 2019, and now this information has become outdated. Everything was 100% accurate at the date that this article was published.

Mortgage application statistics provided by Experian

Experian statistics show that lenders rule out 33% of all mortgage applications due to mismatches in criteria.

The statistics highlight the importance of customer care and 5-star service when using a mortgage broker in Birmingham. It’s all about the value of the customer and helping them pass the lender criteria the first time.

What did the stastistics show?

Experian also found out that only 3.5% of people searching for mortgages were eligible for deals on the market. However, just because you had seen these cheap deals online, it cannot guarantee that you will qualify for it.

As our customer, we will offer you full customer service, trying to find you the perfect deal.

Experian had shown that 22% of applicants started using price comparison websites to find the right mortgage.

We recommend that if you happen to fall inside that demographic, remember that price comparison websites exclude matching a lender’s criteria.

On top of that, the application can take weeks to process, not to mention that the lender can dismiss your case. Ideally, please speak to one of our mortgage advisors in Birmingham. They can search thousands of deals and pick the right ones tailored for you, saving you time and money.

What does this reveal?

The analysis also showed that 27% were eligible for a mortgage but only for a reduced amount to meet the lender’s affordability requirements. Again, we find this happens all the time. A lender says you can borrow one amount but find a reason to reduce the mortgage available down the line.

How our mortgage advisors in Birmingham can help

Our customers are our priority, and as a trusted mortgage broker in Birmingham, whether your Self employed or looking to Remortgage, we’ll recommend the best deal tailored to you and ease the pressure throughout the entire purchase. Our brilliant mortgage advisors and outstanding back office team will do the bulk of the work for you.

How Might Covid-19 Affect Your Mortgage Progress in Birmingham?

This article was initially published back in March 2020, the property market has now resumed, and this information has become outdated. Everything was 100% accurate at the date that this article was published.

Malcolm Davidson on BBC News | How Has COVID-19’s Impact on The Mortgage Market

Covid-19 & your mortgage application in Birmingham

We understand the effect this outbreak will have on the economy, and some of you may be wondering how the COVID-19 with affect your mortgage? But we would like to point out that we can still help you. We are devoted to our clients and provide fast & friendly mortgage advice in Birmingham & the surrounding area.

Mortgage advice in Birmingham during the outbreak

  • Our mortgage advice service over the telephone.
  • Progressing your mortgage application.
  • Bank of England rate reduction and what this means for you.
  • Concerns about not being able to pay for your existing mortgage.
  • Mortgage industry reactions to the coronavirus.

Our mortgage advice service over the telephone

There’s been no change to mortgage advice service, although, we’re finding that more and more customers want to transact over the phone. We still offer a free, no-obligation mortgage consultation, and it’s the same service seven days a week.  Either way, our advisors are available to answer all your mortgage related questions.

Processing your mortgage application in Birmingham

Business as usual, here we will help you throughout processing your mortgage application.

Bank of England rate reduction and what this means for you

Following the recent rate reduction, most lenders have decided to lower their standard variable rates. For new applicants, it’s our job to ensure that we search for the best mortgage deal for you.

Some fixed rates on offer have actually gone up despite the rate cut!

Concerns about an existing mortgage

If you have been affected by the coronavirus economic wave and are concerned about meeting your mortgage payment, then please call your lender right away. Often, they are very understanding and will agree on a mortgage payment holiday period to help. 

Mortgage industry in Birmingham reaction to Coronavirus

Interest rates are historically very low, and lenders show no sign of significantly increasing these. For first time buyers in Birmingham, home movers and homeowners looking to remortgage, this is brilliant news.  There’s never been a better time to get a mortgage!

Lifetime ISA Explained

What was a Lifetime ISA? 

The government’s Lifetime ISA is a government scheme introduced back in 2017. However, the government scrapped this scheme back in 2020 as they decided to push the Help to Buy Equity loan over its predecessor. 

A Lifetime ISA helped first time buyers in Birmingham save up enough savings for their first property. 

Lifetime ISA Explained | MoneymanTV

How did Lifetime ISA’s work? 

For short, the ISA (Independent Savings Account) is a savings account where your money grows tax-free. Although there is no minimum of how much you can save each month, you can only put in £4,000 a year into this account.  

As a bonus, the government top up your total annual savings by an extra 25%, so if you hit the £4,000 mark, you will receive an extra £1,000 tax-freemaking your total yearly savings to £5,000

Worry not if you don’t hit the maximum. Even if you save £720 per year (£60 a month), you will receive an additional £180 tax-free from the government.  

You should know that you cannot withdraw it once the money is inside the savings account without paying a fee. 

We recommend looking at the Lifetime ISA when you need that extra support to afford your deposit or planning to buy your first home within the next couple of years. Having that spare time, you can keep adding more money to strengthen your ISA until you are ready to withdraw the funds for your first property. You can find more information on GOV UK- Lifetime ISA

How were you able to qualify for a Lifetime ISA? 

  • You can only use this scheme on your first home purchase. 
  • The maximum you can put into the account is £4,000 a year
  • The property that you are buying must cost £450,000 or less
  • You have to be under the scheme for at least a year before you can make a purchase. 
  • The age bracket for this scheme is aged 18 – 40. 

If you were lucky enough to open a Lifetime ISA savings account and have saved enough for a housing deposit, feel free to get in touch with your mortgage broker in Birmingham, and let’s begin your mortgage journey. 

Mortgage Advice in Birmingham 

If you have a Lifetime ISA opened or curious about other help to buy schemes in Birmingham that could match your situation. Now could be the perfect time to contact an expert mortgage advisor in Birmingham. 

Our mortgage advisors don’t just specialise in Lifetime ISA’s. They have experience with other mortgage types, and we aim to help customers get onto the property ladder. 

Birminghammoneyman.com & Birminghammoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
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