Guides Archives - Birminghammoneyman

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. 
 

Can a Student Get a Mortgage in Birmingham?

Student mortgage advice in Birmingham

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!

Why should I get a student mortgage in Birmingham?

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.

How can a student get a mortgage?

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.

How to make yourself reliable

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 government scheme – Taking advantage of a government-led scheme such as the ‘Own Your Home’ scheme could allow you to access a larger deposit. For example, the Help to Buy scheme can allow you to increase your overall deposit to 25% and 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.

What type of property can I buy with a student mortgage in Birmingham?

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:

  • The property has to be located within a 10-mile radius of your university.
  • You have to take the student mortgage out on a 3-or-4-bedroom house.

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.

What happens if I can’t afford my payments?

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:

  • They cannot be 65+ at the point of application
  • The guarantor must own a property of their own within the United Kingdom
  • They must live in the UK

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.

A Guide to Remortgaging in Birmingham

Remortgage Advice feat Mortgage Advisor Wayne | MoneymanTV

Check out how Remortgage Advice in Birmingham can help you

Your journey into the world of mortgages can be a worthwhile experience. Towards the end of your process, you will likely end up with one of the following applying to you:

  • Your dream home to settle in and raise a family.
  • A property that will serve as a means to continue up the property ladder.
  • An investment purchase aimed at providing some extra income.

Whichever of these was the desired route, there will ultimately come a moment when your mortgage term is coming to an end. At this stage, there are several choices to choose.

  • Sell your house and either upsize or downsize into a better property.
  • Take a look at selling your portfolio to one of your tenants or to another buyer, in search of a completely different investment route.
  • Most popular ones that we find people go with though, is to choose to remortgage their home.

What is a remortgage?  

A remortgage is where you can use the proceeds borrowed from a new mortgage, to repay a mortgage that you already have. There’s a large amount of various options when taking out a Remortgage in Birmingham, which range from smaller to larger choices.

Remortgage for Better Interest Rates

In general, the initial mortgage deal you are on will last for about 2-5 years, featuring lower fixed rates or perhaps even rates at a discount. In some instances you will find yourself placed on a tracker mortgage that will follow on with the Bank of England’s base rate.

The vast majority of customers will fall onto their lender’s Standard Variable Rate by the end of their term (you may see this referred to through the web as SVR).

Very briefly to explain this, an SVR is a mortgage that has an interest rate defined by what the lender wants to charge and may change. This also will not follow the Bank of England’s base rate such as a tracker mortgage would.

Because of their arbitrary nature of them, these are generally the most expensive mortgage routes to take, leaving many people to look at their choices for remortgaging to get better rates, which we hope will save you a good amount of money on your monthly mortgage repayments.

Remortgage for Home Improvements

Several years into your living in your home, you might decide that something was missing. Perhaps you need an extra room or a larger living area for your kids or possessions, a new kitchen, a new office, or a converted loft.

Instead of moving to a larger house, some look to release equity by taking out a Remortgage for Home Improvements at the end of their term, to cover the costs of such plans.

Project planning and managing can seem a bit daunting, especially when you have to factor in obtaining a building permit. Others would maybe say that it’s a lot less stressful and more satisfying than the process of looking for a new home, selling your current one, and having to move everything that you own.

Further down the line, this may prove to be even more of a beneficial plan, as creating more space may likely increase how much your property is worth, which is useful for if you ever do decide to sell your home or rent it out.

Remortgage for Changes to Your Term   

Sometimes we find when speaking to customers that people may also wish to remortgage in Birmingham for a better mortgage term, by reducing the length of the term they are on or switching to a product that is a bit more flexible for their needs.

When you reduce how long your mortgage term is for, it means you won’t be paying back your mortgage for as long, though it also means that your monthly repayments will be a lot higher. The longer that you take out your term for, the lower your monthly mortgage payments will be.

Some customers may choose for a more flexible mortgage term. In doing so you may gain the ability to overpay your mortgage, which results in your mortgage being paid quicker. It can also give you the option to carry the same mortgage and rates over to another property, if you ever need to in the future.

Though a flexible mortgage sounds like the ideal mortgage type, they usually come in the form of a tracker mortgage, which as mentioned earlier will follow on from the Bank of England base rate. This will mean that one month your payments could fluctuate based on interest, making them a little inconsistent & unreliable.  

Remortgage to Release Equity

Everyone that owns a home will have some level of equity in their property. This can be worked out by looking at the difference between what’s left to pay on the mortgage and the current value of the property.

As discussed briefly earlier, remortgaging can be used to fund any potential home improvements. Still, there are more options out there than just that. Some homeowners will use it to cover long-term care costs, boost their income, have a well-deserved holiday, pay off an interest-only mortgage, or free up some spending money.  

Sometimes when speaking to customers, we’ll also find that some landlords with a Buy to Let in Birmingham will use a remortgage to release equity as a means of covering the necessary deposit to purchase an additional property for their existing property portfolio.

If you are over the age of 55 and have a property that is worth at least £70,000, it may be worth looking into your options for Equity Release in Birmingham. Speak to a qualified later life mortgage advisor to learn more about this.

Remortgage to Consolidate Debt  

Whilst we’re mentioning the topic of equity release, we should probably mention another big one people use their equity for, that being to pay off any unsecured debts that may have built up over time.  

Though it may seem easy to the untrained eye, debt consolidation bases not only takes into account the amount on how much owe on your debts, but also the value of the property and the state of your credit rating. Because of this, you may be limited in the amount you are allowed to borrow for a mortgage.

On top of this, to pay off your previous mortgage and your debts, you will need to borrow an amount that is higher than your outstanding mortgage amount. This will mean that your monthly repayments will probably be higher. Granted none of this is ideal, but you can worry less knowing that you have some options out there if things don’t go to plan.

If you find that you do have a particularly damaged credit rating, you still have options out there. You must bear in mind though that these will not be easy and require very Specialist Remortgage Advice in Birmingham first.

Even with a specialist on hand, there is no guarantee you will definitely obtain a mortgage. You should always seek mortgage advice prior to consolidating and securing any debts against your home.  

Experienced Mortgage Advisors in Birmingham – Get in Touch

If you are a homeowner nearing the end of your mortgage term, wondering what your options may be for remortgaging, we definitely recommend that you get in touch with a knowledgeable and reputable mortgage broker in Birmingham today.  

A dedicated and trusted mortgage advisor in Birmingham will help discuss your circumstances, creating a game plan for the next step of your mortgage journey. It’s always our aim to ensure the second time around is quicker and smoother than your previous mortgage experience.

Why Should I Use a Mortgage Broker in Birmingham? 

The Benefits of Using a Mortgage Broker in Birmingham

Why use a Mortgage Broker? | MoneymanTV 

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 BirminghamSelf 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!

Credit Score Mortgage Advice Birmingham | MoneymanTV

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!

Buying as a Sitting Tenant in Birmingham

Sitting Tenants Mortgage Advice 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.

Mortgage Advice in Birmingham for Exisitng landlords

What reasons may a landlord be selling?

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.

The benefits of selling to a tenant

  • It saves them from the costs of estate agent commission.
  • Rent will continue to come in until the purchase finalised.
  • They could save money on the costs of refurbishment.

Mortgage Advice in Birmingham for a tenant

The benefits of buying from a landlord

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:

  • Because you already live in the property, you know what the property is like.
  • There isn’t a waiting game for the current tenant to find a new place, making the process quicker.
  • Because the landlord has not put a lot of money aside to sell the home, you may find that you can get the property at a discounted price.

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.

Getting Organised for a Mortgage

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.

Right To Buy Scheme Mortgage Advice in Birmingham

Right to Buy Scheme Explained in Birmingham 

If you are an individual who lives in a council property, you may have the opportunity to purchase your property through the Right to Buy Scheme in Birmingham. Regarding that you have lived there for a long period of time.

The Right to Buy scheme was introduced by the Government and provides the option to purchase your council property at a discounted price. Your deposit will be the proposed discount which gives you the chance to organise your savings left over to support you through the full process.

What is the Right to Buy scheme? 

In the 80s, the Right to Buy scheme became a helpful option to many First Time Buyers in Birmingham because they were able to put their foot on the property ladder and become homeowners. However, not everyone agreed with the scheme which made it a controversial subject.

Many people saw the scheme as a way for the government to turn any home into privately owned properties meaning they will be taking off the public sector which wasn’t ideal when there was already not enough supply of housing. This resulted in a change among many council estates.

The process begins by seeing if the individual is eligible to purchase their property which is done by completing an RTB1 form.

Then you will need to see how much your property amounts to which will be done by your local council. By doing this, you will know the percentage discount you’re entitled to which can provide to with more of an idea of the figures involved with the mortgage.

You will then be required to fill out the appropriate forms included in a pack that you will get from your local authority. By doing this, you will be able to proceed. The lender will calculate the amount you’re able to borrow in the same way as any other mortgage: based on your income and expenditure.

Because lenders will be looking at these two financial factors, it’s important that you are sensible with your finances as well as checking your credit score. A credit score is a three-digit number that use to help decide whether you get accepted or declined for a mortgage. If your credit score is needs a boost, here are the different ways how to improve your credit score in Birmingham.

What fees are included? 

Like with many mortgage, there are fees involved as you go through the mortgage process. Below is just a few to consider:

  • 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 Mortgage Advisor in Birmingham will be able to support you through the process).
  • Solicitor’s costs. 

The costs of buying a home can be expensive, which is why you need to understand this when it comes to property investment. If you want to speak to a Moving Home Mortgage Advisor in Birmingham, feel free to get in touch and book your free appointment online today.

The reason why the Right to Buy Scheme was introduced was to allow people to become homeowners. In the case where you withdraw your application further into your process, you may be issued a penalty fee because of withdrawing your application.

The fee will need to be actioned by repaying a sum of money linked to the original property discount that was provided to you at the start of the process. On the flip side, many people do take this opportunity to utilise the scheme as you are in charge of what you want to do with the home and don’t have to wait for additional services to carry out any repairs.

Speak with Right to Buy Mortgage Advisor in Birmingham Today

Here at Birminghammoneyman, we have a reputation for providing expert Right to Buy Mortgage Advice in Birmingham and helping you throughout your mortgage journey. Our Mortgage Advisors in Birmingham work hard to support customers achieve their mortgage goals, Right to Buy customers included.

What are the 7 Best Places to Live in Birmingham?

The Best Areas to Live in Birmingham

Whether you are a First Time Buyer in Birmingham looking to buy your first home and deciding on the location or a looking at Moving Home in Birmingham in an area that is new to you, we are here to help!

Check out our helpful guide below where we have collated a list of the best places to live in Birmingham.

1 – Bournville

The name Bournville is infamous throughout the U.K as being known as the popular dark chocolate known as Bournville chocolate. Many people don’t know, however, that Bournville is a historic town that was home to the Cadbury family. In the town stands the Cadbury family’s famous business ‘Cadbury World’ which still stands in the area to this day.

Bournville is a ‘model’ village founded by Cadbury and was initially a place where the employees of Cadbury World would live. Today, it’s an area full of students attending the University of Birmingham that is within close proximity. The area is full of employment opportunities, perfect for young people looking for new opportunities in Bournville.

If you are a First Time Buyer in Birmingham or are looking to move into your dream home in the infamous village of Bournville, speak to a Mortgage Advisor in Birmingham today to see how they can help you towards your mortgage goals.

2 – Stirchley 

If you go southwest of Birmingham, not too far away from Bournville stands Stirchley. This area has a rich history with its earliest known settlement dating back to 1658.

According to Condé Nast, Stirchley was known as of the “Coolest Neighbourhoods in the UK”. The area has picturesque scenery showing off its Victorian terracing across properties as well as its River Rea which runs through the area. With a quiet rural atmosphere and a plethora of Victorian-style properties, Stirchley could be the perfect place for you.

3 – Erdington 

Erdington is a suburb that borders the Royal Town of Sutton Coldfield which is north east of Central Birmingham. Similar to many of the areas mentioned in this list and the surrounding areas of Birmingham overall, Erdington shows off its history through its beautiful Victorian-style properties

Spaghetti Junction is located within Erdington and a part of the M6 Motorway which is located in the southern areas. This area is also the starting pointing point of Britain’s longest bridge, Bromford Viaduct. If you are looking at living in an area full of amenities, Erdington is the home of The Fort Shopping Park which is full of well known retail establishments.

If you are a home buyer looking at buying a property in Birmingham but would like to live in a more rural area outside the busy city landscape, Erdington could be your perfect match. An expert Mortgage Broker in Birmingham will be available to go through your mortgage options.

4 – Mosely 

If you are a JJR Tolkein fan, it’s likely that you are familiar with Moseley, famous for being the inspiration behind the ‘old forest’ in his books The Hobbit and The Lord of The Rings.

As well as this, Moseley is full of popular shops, pubs and cultural scenes. The village community has been recognised for a lot of factors like schools, crime rates, house prices and transport links.

Moseley is known to be a popular and desirable area to live in due to its abundance of facilities like independent bars and restaurants. Along with this, there are a handful of boutiques and specialist retailers.

5 – Digbeth 

For fans of tea and custard (but not together), Digbeth could be the place for you! The area was known as the industrial hub due to its proximity to both the Grand Union Canal and Digbeth Branch Canal. Now, the area is the place for the creative industry, due to the area being home to Fazeley Studios and The Custard Factory hosting a wide variety of digital and cultural businesses.

Showing off Birmingham’s past and future, Digbeth is full of modern apartments built into the area’s former warehouses and culture and is known as one of Birmingham’s most adapted places to live.

6 – Edgbaston 

Edgbaston is a leafy suburban area in Birmingham and is known for its picturesque green spaces and Botanical Gardens.

If you are a sports fan thinking of moving into the area, this could be the perfect place for you. Edgbaston is home to Edgbaston Cricket Ground and the Edgbaston Archery as well as the Lawn Tennis Society which is one of the oldest lawn tennis clubs in the world.

As well as its sporting reputation, Edgbaston has many other attractions. The University of Birmingham includes a stunning Victorian campus as well as a plethora of Michelin-starred restaurants. The area has a range of different types of properties at reasonable prices making it a brilliant place to take that first step on the property ladder.

7 – Sutton Coldfield 

Situated 11 miles northeast of Birmingham, Sutton Coldfield has a variety of both upscale and most sought living areas. Whatever homeowner you are, Sutton Coldfield could be the place for you. If you have a family or looking to start one, there are local schools available. Looking for things to do in the area? Sutton Coldfield is full of shops, bars, and restaurants. as well as brilliant transport links into the city of Birmingham being a good option for commuters.

Sutton Coldfield is also full of green space for your daily exercise! This includes the Sutton National Park which has a heathland of over 2,000 acres of woodlands, seven lakes, wetlands, and marshes. Each area has its own large selection of plants and wildfire, some rarely seen in the region – you may even see cattle and wild ponies that live on the land. This is just another reason why Sutton Coldfiels is the best place for First Time Buyers in Birmingham.

Expert Mortgage Advice in Birmingham

So, if you are looking at buying your first home or thinking of moving home in Birmingham and are in need of Mortgage Advice, Birminghammoneyman is here to help!

With over twenty years of experience in the mortgage world, we have had the opportunity of accessing some brilliant mortgage products. These deals have resulted in us helping thousands of customers with varying circumstances find a product that is fitting for their situation. Our goal as an expert Mortgage Broker in Birmingham is to take the stress away and provide support on your mortgage journey.

Whether you are a First Time Buyer or a looking at Moving Home in Birmingham, get in touch with our team today who can connect you with one of our hard working and friendly Mortgage Advisor in Birmingham. Here at Birminghammoneyman, we strive in providing you with a tailored service and work hard in relieving any stress you may find in the mortgage process.

Tips to sell Your Property in Birmingham

If you are definitely up for taking a further step on the property ladder and moving to one of the following surrounding areas, you will need to think about how to sell your property and fast. There is always that ‘magic number’ and a seller will always have a minimum asking price for their property, but a big factor that plays in all this is how the property is marketed and presented.

The Important of Updating Your Address

When Moving Home to Birmingham or a surrounding area, you will have to make sure that all of your information is up-to-date and correct. You will need to check that all your accounts have the right address and not somewhere previous, we cannot highlight enough the importance of updating your address in Birmingham as this will help with your mortgage application. 

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