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Understanding mortgage rates is essential for any prospective home buyer in Birmingham.
In this article, we’ll explore what mortgage rates are, how they’re determined, and the differences between fixed-rate mortgages and tracker mortgages, all while focusing on the Birmingham housing market.
Mortgage rates are the interest rates charged on a mortgage loan. These rates determine the cost of borrowing money to purchase a home and can significantly affect your monthly payments and the overall cost of your mortgage.
In Birmingham, mortgage rates fluctuate based on a variety of economic factors. Keeping an eye on these rates can help you make informed decisions about when to apply for a mortgage or refinance your existing loan.
Mortgage rates in Birmingham, like elsewhere, are influenced by several key factors. Understanding these can help you better navigate the housing market and secure a favourable rate.
1. Economic Indicators: Mortgage rates are closely tied to the broader economic environment. Key indicators such as inflation, employment rates, and economic growth impact interest rates.
When the economy is performing well, with high employment and spending, interest rates tend to rise. Conversely, in a sluggish economy, rates may decrease to stimulate borrowing and investment.
2. The Bank of England’s Base Rate: The Bank of England sets the base rate, which is the interest rate at which banks borrow money. This base rate is a significant determinant of mortgage rates in Birmingham.
When the base rate goes up, mortgage rates typically follow suit. The Bank of England adjusts this rate in response to economic conditions, aiming to control inflation and support economic stability.
3. Lender-Specific Factors: Individual lenders in Birmingham also influence mortgage rates based on their lending policies, risk assessments, and operational costs.
Factors such as the borrower’s credit score, loan amount, and loan-to-value ratio (LTV) also play crucial roles. A higher credit score and a lower LTV can often result in more favourable mortgage rates.
4. Market Competition: The competitive landscape among mortgage lenders in Birmingham can also impact rates. Lenders strive to attract customers by offering competitive rates and terms.
As a result, it’s beneficial to shop around and compare offers from multiple lenders to find the best deal.
5. Global Economic Conditions: Events and trends in the global economy can also affect mortgage rates in Birmingham.
For instance, geopolitical tensions, changes in international trade policies, and economic performance in major economies like the US and China can influence interest rates worldwide.
When considering a mortgage in Birmingham, it’s essential to understand the difference between fixed-rate and tracker mortgages, as each has distinct advantages and potential drawbacks.
A fixed-rate mortgage offers stability and predictability. With this type of mortgage, the interest rate remains constant throughout the loan term, ensuring that your monthly payments remain the same.
This can be particularly advantageous in times of economic uncertainty or when interest rates are expected to rise. For many home buyers, particularly first time buyers in Birmingham, a fixed-rate mortgage provides peace of mind, allowing for precise budgeting and financial planning.
Advantages:
Disadvantages:
A tracker mortgage has an interest rate that follows, or “tracks,” the Bank of England’s base rate plus a set percentage.
This means your payments can vary over time, reflecting changes in the base rate. Tracker mortgages can be attractive when rates are low or expected to decrease.
Advantages:
Disadvantages:
As a home buyer in Birmingham, deciding between a fixed-rate and a tracker mortgage depends on your financial situation, risk tolerance, and expectations about future interest rates.
Speaking with a mortgage broker in Birmingham can provide tailored advice to help you make the best decision for your needs.
By staying informed about mortgage rates and understanding the factors that influence them, you can navigate the Birmingham housing market with confidence and secure a mortgage that aligns with your financial goals.
As a first time buyer in Birmingham or someone looking to move home, the whole mortgage process can often seem daunting. It shouldn’t be like this; your mortgage journey can run smoothly with the correct preparation and help through the process.
Prepare yourself for your mortgage journey by exploring these nine crucial queries every first time buyer or person moving home should ask.
The popularity of the property among potential buyers can serve as an indicator of how quickly you need to finalise your decision.
Be prompt and pre-emptive, especially when it comes to properties that are in high demand, to avoid a heartbreaking last-minute slip-up.
A “Property Chain” situation arises when the current occupant of the property you are considering cannot move out until they secure a new property, and so forth.
A long property chain could potentially delay your property acquisition, particularly when many people are waiting on one individual’s move to kickstart the process.
You’ll be in a stronger negotiating position if you don’t rely on selling your property first for the move. This advantage can be valuable during any negotiation rounds with the seller.
When you purchase used property in Birmingham, unlike a new-build, it’s fairly common for the previous owners to leave behind various appliances or furniture. However, if you do not want any of these things you will need to dispose of them yourself.
With new builds, you can customise your purchase to include extras such as appliances and furniture.
When moving to an unfamiliar locality in Birmingham, it’s wise to enquire about the potential neighbours as they could significantly impact your living experience.
In case of new developments, you and your fellow residents will set the tone for the community.
As every property has different operational costs, you must gather data on the Council Tax and average utility bills.
This research will help you grasp your budgeting necessities before committing to an offer.
If you love being able to enjoy the summer sun in your back garden, the house’s direction could be a crucial deciding factor.
South-facing gardens will provide extra sun throughout the day, however their prices may be slightly higher.
This aspect can wear into your financial plans. Hence, it’s essential to know how much work the property is going to need in the future.
Negotiating your property price is recommended during a home purchase, especially if you feel like the house is being listed for more than it’s worth.
Learning how to negotiate an offer on a property in Birmingham can help you through your current and future mortgage processes.
Contact us and speak with a trusted mortgage advisor in Birmingham, to learn of key negotiation skills and seller tactics.
Additionally, a conversation with the seller or their estate agent will shed light on the value range of accepted offers and provide insights into previous offer rejections.
Knowing the move-in date allows you to commence other tasks such as securing a solicitor, packing up your current residence, and organising a moving van.
Creating a checklist of these questions to ask when moving home in Birmingham could take some of the stress out of the buying process. Once you have all of your answers to these questions, you can confidently make an offer on a property.
If you need further mortgage advice in Birmingham, feel free to reach out to our team. Even if you have had an offer accepted, there is still time to get everything checked over by one of our mortgage advisors in Birmingham.
Buying your first property in Birmingham is both an exhilarating and daunting experience. As a novice homebuyer, getting information about the home buying and mortgage application process is essential.
This article aims to simplify the stages involved in becoming a property owner in Birmingham and how using a mortgage broker in Birmingham can help you along the way.
As a first time buyer in Birmingham, your first step will involve conducting a thorough examination of the local housing market and assessing your current financial capacity. Birmingham comprises a diverse array of locales, each with its distinct appeal and real estate values.
Make it a priority to look at various neighbourhoods, considering elements such as access to local amenities, transportation routes and educational establishments.
Building up funds for a deposit is the first step to your first time buyer mortgage journey in Birmingham. The more substantial your deposit, the wider your choices in terms of mortgage products and interest rates.
As a mortgage broker in Birmingham, we can give you advice on strategies for building your deposit, improving your credit score and utilising government schemes that help to buy a property in Birmingham.
Getting your mortgage application approved marks a formidable stage in the buying a property process. As a mortgage broker in Birmingham, we’re here to help you find that perfect mortgage for your specific circumstances. Our proficient mortgage advisors in Birmingham will assess your financial status and walk you through available mortgage options.
Once you have got your mortgage agreement in principle (AIP), you can begin your hunt for your dream home in Birmingham. Online property platforms and local real estate agents are valuable assets for finding available properties within your desired area.
Utilise viewings to get an authentic feel of the property, envision your life within the space, and consider local amenities and transport links.
Once you find a property that you’re interested in buying, you can make an offer to the homeowner. The seller will either accept your offer, counter it or reject it. Don’t worry if your offer is rejected, you may need to increase your offer a little more.
If your offer is accepted, it is time to move onto the conveyancing process. As a mortgage broker in Birmingham, we can recommend trusted solicitors or conveyancers who undertake these legal procedures, providing you with tranquillity throughout the process.
Conducting a survey and valuation on the property that you are looking to buy is of utmost importance. A certified surveyor will examine the property’s condition and reveal potential damages needing attention.
This report may highlight potential damages or problems with the property, which otherwise you would be aware of. A valuation will also verify that the property’s price is equal to its market value.
Following the completion of the survey and valuation, the mortgage application can be finalised. Our team will aid in collating all necessary documents and liaising with the mortgage lender on your behalf.
We’ll simplify the application process by sorting the whole mortgage side of the process for you. Feel free to ask any questions on your mind, we will be more than happy to answer them all!
Upon your mortgage application approval, the remaining steps involve the contract exchange and closing the deal. The buyer and seller commit legally to the transaction during the exchange, and a completion date is decided.
On completion day, the pending funds are transacted, and you officially become a homeowner in Birmingham.
Embarking on the journey of first time buyer in Birmingham can be thrilling but also intimidating. Nonetheless, with a mortgage broker in Birmingham support, you can smoothly sail through the mortgage and home buying process.
Our mortgage advisors in Birmingham are available to assist you at every stage of your mortgage journey as a first time buyer in Birmingham. Reach out to us today and commence your journey towards securing your dream home in Birmingham.
Accumulating a deposit can be one of the most challenging steps to property ownership, particularly for first time buyers in Birmingham.
House prices have been steadily climbing over the last 20 years, making it harder to afford the necessary deposit for a mortgage. So, how much money do you need to secure a mortgage and can it be as low as 5% in Birmingham?
On average, lending firms ask for a minimum deposit equivalent to 5% of the property’s worth. For instance, if you aim to purchase a property valued at £200,000, you’d need a £10,000 deposit.
As a mortgage broker in Birmingham, we’ll evaluate your earnings and financial capacity to determine if you afford a 5% deposit or need to provide a larger sum.
It can be achievable to secure a mortgage with a 5% deposit with adverse credit in Birmingham. However, it largely depends on the duration and extent of your credit issues.
Usually, applicants with poor credit scores are asked to provide a higher deposit, generally in the range of 10%-15% of the property value.
Each with its unique set of benefits. Some of the more popular options include:
Mortgage Guarantee Scheme: This programme can support you as a first time buyer in Birmingham in securing a 95% mortgage, i.e., with a 5% deposit. This scheme may be useful in improving your chances of securing a mortgage with a 5% deposit, depending on your financial situation and credit health.
Shared Ownership Scheme: This scheme offers a practical and affordable route to homeownership, allowing individuals to partly own and partly rent a property. Participants can purchase a share of the property, typically ranging from 25% to 75%, while paying rent on the remaining quota. Over time, they have the option of increasing their share, on a step-by-step basis, eventually leading to full ownership.
Lifetime ISA: It’s an incentive, not a scheme per se, designed to assist first time buyers in saving up for their deposit. It offers a tax-saving opportunity for those aged between 18 and 40 planning to buy their first property. Contributions can reach up to £4,000 per year, with the government providing a 25% bonus (£1,000 maximum) to support property purchases.
For a comprehensive list of such schemes, visit OwnYourHome.gov.uk. Alternatively, reach out to our mortgage advisors in Birmingham for a discussion regarding your mortgage options.
You might discover that with your financial capability, a 5% deposit mortgage may already be within your reach, even without resorting to an aid scheme.
If you are a first time buyer in Birmingham, schedule your cost-free mortgage consultation and initiate your journey online today.
During your university years, you will gain independence, freedom but also get the realisation that the experience costs a lot of money! Not only will you have course fees and accommodation to pay for, you will also want to use your money to go out and enjoy yourself.
Do you miss the days when university was free?
Living as a student tenant can go one of two ways, you can either get a great landlord that looks after you and your housemates and sorts your repairs on time etc., or you will get a landlord that never replies to your emails and texts and leaves you with a broken washing machine for over 2 weeks! Unfortunately, more often than not, it is example B that most people are faced with!
This can be frustrating when you are paying so much for your monthly rent and getting nothing back from it. Where does this leave you then? You could accept the fact that this is student life and how you will be treated by landlords, or you could become your own landlord…
Yes, this can be made possible by taking out a student mortgage on your property. It will not only save you money in the short term but also years and years further down the line!
If you take out a student mortgage, you will save money on your accommodation costs and you will also be getting your foot on the property ladder. As you can imagine, you are required to make a huge investment in order to take out a student mortgage. Usually, it is those studying their third year at university looking to stay on board for their masters/PhD who take out a student mortgage. This is because they are going to be living in student accommodation for another 2-3 years, and rather them paying a landlord, they decided to take out a mortgage and get paid themself.
The bonus of taking out a student mortgage is that after you have finished your course, you will still own the property. Whether you choose to remain living inside of the property or you choose to let it out to other students, it is your choice!
After years of living within the property, it is more than likely that you have built up quite a bit of equity in the property. You could withdraw some of this equity to fund a deposit for a new home. If you are happy living inside of the property, you could still withdraw equity and treat yourself to a holiday, a new car… it’s up to you! Remember, this could benefit you both short-term and long-term.
To qualify for a student mortgage, you will have to meet strict requirements. The process is not as straightforward as the regular mortgage process.
As a mortgage broker in Birmingham, when we come across a customer looking to take out a student mortgage, we will often find that they have already been saving for a deposit. This is because, if you don’t have a deposit at the ready, it is unlikely that you’ll be able to progress much further in the process.
You will not be able to start your mortgage process if you approach a mortgage broker in Birmingham with a loan as your deposit; you would be accountable for 3 loans: your new loan that covered the deposit, your mortgage, and course costs.
When we refer to ‘deposit in place’, we are talking about savings, a lifetime ISA or even gifted deposits. Some older applicants may have always had plans to take out a student mortgage so that they don’t have to deal with landlords and renting.
The most important thing about student mortgages is that you will need to have a source of income. Most lenders will require you to have a full-time job alongside your studies in order to accept your application. Depending on your income, you may be able to take one out with a part-time job. Borrowers with a stable full-time position will appear much more reliable to a lender.
Reliability is the key to getting a mortgage. Lenders need to know that you are going to meet your mortgage payments each month.
There are many different ways to show your reliability as a student looking to take out a mortgage:
Larger deposit – Increasing your initial deposit reduces the total amount that you need to borrow, which will also decrease monthly mortgage payments.
Utilising a scheme – Taking advantage of a home buying scheme such as the ‘Own Your Home’ scheme could allow you to access a larger deposit. For example, the Shared Ownership scheme lets you purchase a share in a property. Take a look at the government Own Your Home website to learn more about the schemes available.
Have an agreement in principle ready – Having an AIP in place could potentially give your mortgage application a boost as it proves that a lender has already said that they’re willing to let you borrow from them. This does however rely on you providing evidence of your income and credit history.
Here are just a few pointers, and some may not benefit you as much as others. If you are wanting further advice on student mortgages, you should get in touch with one of our mortgage advisors in Birmingham – they would be more than happy to try and help you through your process and answer your questions.
Like other mortgages, your options are limited when it comes to what type of property you can take your student mortgage out on. Your property will have to match these terms and conditions:
With these points in mind, you will have to find other tenants to move into the property with you. Once you have your tenants, you will move quickly through the mortgage process as your lender will know that you will have a regular source of income.
Your lender will always look at the risks involved with lending to a student and that is why they need to be 100% sure that you can afford their payments. This is why they need a backup in case something goes wrong.
When taking out a student mortgage, they will ask for a guarantor. A guarantor is someone who will step in and be responsible for your mortgage payments if you cannot afford them. You will have to provide their details during your application. There are some rules when it comes to choosing your guarantor:
Think of it like the lender has to always view it from the worst possible scenario. It’s just a precaution in case things go wrong.
If you need a hand kickstarting your student mortgage application and want first time buyer mortgage advice in Birmingham, get in touch with a mortgage broker in Birmingham like us today. We will check whether you match the requirements or not.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Typically, the higher your score, the better your chance of being accepted for your circumstance ‘best’ deal.
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:
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!
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Whether you are a first time buyer in Birmingham or are looking to move home in Birmingham, you will not only be finding your dream home but also the perfect location!
The atmosphere and general landscape of a location can play a big part in where you want to live. You may find you thrive better in the hustle and bustle of the city of Birmingham or you like to switch off and live in a more rural, peaceful landscape. Each option both have their own positives and negatives.
Checking what transport links are about is important if you are limited to public transport to get from A to B and if you are looking to live in areas near main roads like motorways. Therefore, take a look at areas where there is plenty of bus or train links if this is important to you or if you are close by to a main road for those who are driving.
If you are looking to start a family or have plans to in the future, finding a property that is within a catchment area of a variety of schools can be helpful towards making a decision. You can find this information through local authority websites which will show how certain schools perform e.g Ofstead reports.
It can be convenient to have amenities within a short distance of where you live. You may have a list of facilities you would like close by, however, one area has some that will benefit you more than others. This is where it’s best to break these into what you need and what you would like. These desired facilities are things like a local park for your children or a gym near home or on the route from work. In some cases, living near a bank can help make financial management easy and convenient.
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.
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.
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.
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.
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.
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.
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!
Through our years of giving our customers expert Mortgage Advice in Birmingham, our specialist mortgage advisors in Birmingham have found that enquiries from renters interested in becoming first time buyers in Birmingham are always on the rise. They can achieve this by purchasing their rental property from their landlord.
In the landlord’s eyes, selling a property to its existing tenant can be more manageable and straightforward. Because of this, some landlords may give the option for the tenant to buy the property off them before it goes on the open market.
If you are living in a rental property and would like to purchase it from your buy to let landlord, it is recommended that you seek, buy to let mortgage advice in Birmingham to discuss the offer with them directly on a priority basis.
In the current climate, many landlords are now required to pay more tax than they would have done before due to government tax relief clamps. This can result in many landlords finishing their housing ventures and seeking another investment in a different market.
Those who are investors and are looking at remaining in their role as a landlord which in turn keeps the property market going usually work around these legislative changes. In terms of buy to let landlords, they see their property as a long-term investment. However, amateur landlords are normally aiming to make a quick investment so will sell things if circumstances don’t benefit them.
Not only do landlords sometimes benefit from this option, but many sitting tenants also find it beneficial to buy from landlords. Some of these advantages include:
In the case where you both decide on the price and it is below the property’s value, a lender may choose to put the property’s equity towards your deposit. If there is enough equity, you may not require a deposit at all.
However, If a deposit is needed, you may be wondering how much deposit do I need? Here your open and honest Mortgage Broker in Birmingham will break down how much you might need given your situation.
Once you have gotten the hard part out of the way, that being saving up for your deposit (or if the equity has been utilised for a housing deposit), then the next step is to get yourself organised for a mortgage in Birmingham.
It’s better to prepare yourself in advance, making a collection of everything a mortgage lender might wish to see. Being organised can save you time and frustration further along the process, especially if it’s something that could’ve easily been arranged at the start.
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UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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Birminghammoneyman.com & Birminghammoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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