Why Should I Use a Mortgage Broker in Birmingham? 

The Benefits of Using a Mortgage Broker in Birmingham

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

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

Mortgage Broker in Birmingham vs Going Direct in Birmingham

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

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

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

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

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

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

Mortgage Advice Past vs Present 

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

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

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

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

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

Modern Day Challenges 

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

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

Newer Regulations 

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

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

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

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

Lending Criteria 

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

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

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

Still, need more convincing?

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

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

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

The Benefit of a Mortgage Broker in Birmingham

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

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

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

Book Your Free Mortgage Appointment 

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

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

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 is a Property Survey Should I Choose in Birmingham?

Property Survey Mortgage Advice in Birmingham

If you are a First Time Buyer in Birmingham, and recently have had an offer accepted on a property but, is the house actually worth what you’ve said you’ll pay for it? In order to establish the true value of a property as well as the overall condition, a property survey will be carried out. This survey will highlight any issues with the property like major/minor damages.

Buying a property can be the most expensive commitment of your life, therefore, it’s important that you know exactly The Costs of Buying a Home in Birmingham. If you’re not careful, you may be paying more for some parts of the process than you originally thought.

Different Types of Property Survey Avaliable in Birmingham

The different types of property surveys include Mortgage Valuations, Homebuyer’s Report and Full Structural Survey. In some cases, a property survey can be carried out free of charge depending on the lender that you use.

The type of survey differentiates depending on the outcomes of the survey report. You might want one that is more in-depth, whereas others will only briefly speak about certain aspects. The survey will be more pricey depending on how in-depth the survey is. In the event that you find something on your survey about your property that you weren’t informed about, by law, you are allowed to approach the seller and work out an alternative price, if necessary.

Mortgage Valuation

The simplest type of survey is Mortgage Valuations. This is carried out to determine how much a property is actually worth. It’s helpful for the lender as they need to be sure that the property price matches how much you are set to borrow from them. For instance, if you put in an offer above the property’s actual value, it’s likely the seller will accept your offer, but your lender won’t. Unless you have the funds to make up the difference the lender will put out of the deal. This is called a down valuation.

The one drawback with this type of survey is that it will only point out obvious repairs and damages so will lack depth. On the other hand, it does highlight any clear structural defects that will require a further look at. If you are wanting a more in-depth property assessment, you will need to pay more to upgrade your survey. It may be more expensive but, it may benefit you in the long run.

Homebuyer’s Report

This type of report focuses on safety. A Homebuyer’s Report answers the questions of whether the property is safe and if it’s suitable to live in. The surveyor will look at any mould problems, damp issues or something that does not pass the current building laws. A property expert will carry this out. It’s their job to examine the property thoroughly to make sure it’s safe to live in.

Full Structural Survey

When it comes to making an offer on an older building, as a Mortgage Broker in Birmingham, we strongly advise you to take up a Full Structural Survey.

Because the whole property is surveyed, this is the most pricey of property surveys. A Full Structural Survey will also provide an in-depth insight into the property compared to the three main surveys. The survey will highlight what condition the property is in and what changes need to be made if the property purchase goes through. It can take as long as a full day to carry out a Full Structural Survey, however, this does depend on the size of the property.

Do I need to get a survey on a new build?

If you have accepted an offer on a new build, the survey will work slightly differently. There is a type of survey especially for new builds called a Snagging Survey. It points out both minor and major issues, like a missing hinge on a door to cracks in the ceiling.

When the new has already been built and it’s ready for you to move into, it’s wise for you to get a snagging survey carried out on it before moving in. By doing this, you are giving yourself the option to negotiate to price if there are any issues with the property.

Get in Touch With a Mortgage Broker in Birmingham

Feel free to contact our mortgage team if you are unsure about what property survey is the right one for you. Our experience has given us the opportunity to help many first time buyers and Home Mover in Birmingham get onto the property ladder, we’ll help you recommend and choose the right property survey for you!

If you are looking for a surveyor to carry out a Homebuyer report or building survey, you can obtain these services through the Royal Institution of Charted Surveyors.

Cost of Buying a Home in Birmingham

Whether you are First Time Buyer in Birmingham beginning the mortgage journey or you have gone through this before and are looking to to move home, our fast and friendly service could help you. We’ll provide a tailored service that can help you Get Prepared for a Mortgage in Birmingham.

The Costs of Buying a Home in Birmingham

What costs are involved when buying a home in Birmingham?

Buying a property can be the most expensive commitment of your life, therefore, it’s important that you know exactly what you’re paying for. All of the different costs can blend into one if you’re not careful, and you may be paying more for some parts of the process than you originally thought.

Let’s take a look at how much it costs to buy a home and the costs involved with property investment.

Different Costs Mortgage Advice in Birmingham

If you’re a First Time Buyer in Birmingham, you’ll find this article particularly useful as it will break down each cost for you and show what each one means.

On the contrary, if you’re Moving Home in Birmingham, it’s still useful to remind yourself of the costs involved so that you can prepare accordingly.

Valuation Fees

Once you’ve put down an an offer on the property in Birmingham and it’s been accepted, your lender will carry out a valuation on the property to make sure that your offer matches the true value of the property. Factors that could affect your valuation include structural damage, property age, the local market, etc.

Prices will vary for the valuation will vary from free of charge to several hundred pounds. Sometimes, you will be offered one for free as the price is incorporated into another cost or it could be a bonus for taking out a certain product.

They are also different types of valuations, and you will pay more depending on which one you need. For example, if you need a full building survey as you’re purchasing an older property, you may have to pay a lot more than someone who’s bought a new build.

Mortgage Arrangement Fees

Some lenders may charge you for taking out a mortgage with them. This type of fee usually comes with the products with the cheapest rates. It’s worth mentioning that not every mortgage will come with an arrangement fee, however, when they do, you may be expected to pay a large fee, such as £999, depending on the product and lender.

You may be asked to pay this fee upfront or have the option to add these to your mortgage balance. If you choose to add them to your mortgage, you may incur further interest charges. As a Specialist Mortgage Broker in Birmingham, we can compare 1000s of mortgage products on your behalf, trying to find a suitable one for your situation with minimal additional costs.

Solicitor’s Fees

You’ll need a solicitor to arrange the legal side of the mortgage process. The fees quoted by various firms may differ enormously. An estimated amount for a low-value property would be £600. You will provide the solicitor with the new property’s address, whether it’s leasehold or freehold. You’ll also need to provide the purchase price to obtain quotations.

You need to make sure that:

• The firm includes VAT
• The cost of any “disbursements are included.” These are fees such as Land Registry Fees and Local Authority Search Fees
• Is your solicitor on your mortgage lenders panel?

Estate Agency Fees

You’ll only face estate agency fees when you are selling a home in Birmingham. Estate agency fees are rising alongside property prices; you can expect to pay between 1-2% of the property price. The minimum amount is usually £500 to sell your home. Prices may also rise when you look for a more personalised service.

Stamp Duty

Stamp duty is a tax that the solicitor will collect upon the competition of the property purchase, in addition to your solicitor’s fees and disbursements.

More stamp duty details can be found here: https://www.gov.uk/stamp-duty-land-tax.

Broker Fees

A Mortgage Broker in Birmingham will usually charge a fee for their service. These fees will be disclosed upfront so that you know what you’re paying for and how much it’s going to cost. 

We recommend trying to use a trusted company that charges upon completion only. Avoid any application fees where your money will be at risk.

Removal Fees

The cost of moving all of your household items to another property can vary, it mainly depends on what service you want, how far you’re moving and how much stuff you have!

If you are happy to hire a van and transport your belongings to your new house by yourself, the service may cost significantly less. It can cost less than £500 in some situations. However, some people will prefer to pay for the full service and get someone to pick up their belongings and help them move. This service can be £1,000 plus.

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.

Getting Organised for a Mortgage in Birmingham

First Time Buyer Mortgage Advice in Birmingham

Once you have gotten the hard part out of the way, that being saving up for your deposit (or if you’ve utilised a gifted deposit) and have decided you are ready to buy your first property as a first-time buyer in Birmingham.

The next step is to get yourself prepared for the mortgage process that is about to follow.

Know Where You Stand

In our experience as a mortgage advisor in Birmingham, we have found that customers benefit the most by getting in touch with a mortgage broker as early on in your process as you can.

Your dedicated advisor will help you to work out an outline of the amount you could be looking to borrow for a mortgage and how much your monthly mortgage costs could be.

Before anything else, your top priority should be to obtain an up-to-date credit report. You ideally don’t want any credit issues such as a missed phone contract payment, to hold you back from a mortgage. A credit report will be able to show you potentially harmful factors.

Following these steps will give you a realistic overview of the likelihood that you’ll succeed with a mortgage and what your budget could be. This will help you to organise your accounts, such as any existing credit cards or phone contracts.

Getting Organised For a Mortgage

Our hard working and dedicated mortgage advisors in Birmingham are able to obtain a fully credit-checked agreement in principle for you, within 24 hours of your primary mortgage appointment.

There’s a lot of important paperwork for you to gather for your process, so it’s a good idea for First Time Buyers in Birmingham to start organising what you will be required to have ahead of looking for your mortgage. In doing this, you possibly enable yourself to go through the process quicker.

Proof of ID

We need to be able to prove your identity. With this, you’ll need to provide us with some photo ID such as a driving license or passport, so that we can prove who you are.

Proof of Address

On top of this, you’ll need to prove where you are living. To achieve this, you need to send us a utility bill or original bank statement that has been dated within the last 3 months of your current home address.

Last 3 Months’ Bank Statements

One of the most important factors when seeing if you qualify for a mortgage, is analysing your income and spending habits. This can can be a big difference maker in whether or not you obtain a mortgage. Your bank statements should show your income and what you having regularly going out.

Lenders will not be too thrilled to see gambling transactions on your account. They also won’t be too happy if you go over an agreed overdraft limit or if your direct debits regularly bounce.

It’s best to plan ahead regarding your bank statements. The more organised they appear to be, the more likely you are to be accepted by a mortgage lender.

Proof of Deposit

You will have to prove you have the financial capability to pay for the deposit and also evidence where this came from for the purpose of anti-money laundering.

Try not to move money around your accounts too often as it will make auditing where everything came from a little complex. Lenders like to see you build up your savings, so you’ll need to provide individual proof for any large financial deposits into your bank account.

We regularly see that money for deposits has been given as a gift by a member of your family. The gifted deposit also need to be evidenced, with the “donor” needing to sign a letter to confirm it is a gift and not to be paid back as a loan.

Proof of Income

Regarding being able to afford a mortgage, the most important thing is to be able to prove your that you are financially capable to keep up monthly mortgage repayments.

If you are a regular employee, the proof you will be required to provide is the last 3 months’ payslips and most recent P60. Lenders can take into account frequent overtime, commission, shift allowance and any potential bonuses.

If instead you are an applicant who is self-employed in Birmingham, then you’ll need to enlist the help of your accountant. They will help you request your last 2 or 3 years’ tax overviews and tax calculations documents from HMRC, which you can use for proof of income.

A list of Your Expected Outgoings

When taking out a mortgage in Birmingham, it really is a good idea to prepare yourself ahead of the process starting. Make note of what you expect your outgoings to be after you move and work out what you are able to afford.

Factor in costs like council tax and utility bills, food, drink and leisure activities. This will demonstrate how much money you actually have free to put towards monthly mortgage repayments.

It may seem like a difficult process, but without taking the steps we mentioned above, it is not possible to proceed with any lender or broker. Once you have taken the necessary steps, you’ll be just that little bit closer to your home owning dreams.

It’s better to prepare yourself in advance, making a collection of everything a mortgage lender might wish to see. This saves both your time and frustration further along the process, especially if it’s something that could’ve easily been arranged at the start.

Self-Employed Mortgage Advice in Birmingham

Wanting a Mortgage Agreement In Principle in Birmingham?

Agreement in Principle Mortgage Advice in Birmingham

A mortgage agreement in principle is basically an obtainable document or certificate of confirmation that proves to the estate agent or seller of the property that ‘in principle’, the bank is willing to lend you a certain amount for a mortgage. You may also see this called a decision in principle.

This is something that we will always look to obtain for of our customers if they don’t have one already, and something we can usually get within 24 hours of your initial appointment.

In order to obtain an agreement in principle, you will have to pass the lenders credit score. This works out well because in almost all cases, this is a very good sign to the lender that you are creditworthy and could be trusted with a mortgage.

If you are in the market for buying a new home as a first time buyer in Birmingham, then an estate agent will often want to check again and again in order to make 100% sure that you are ‘mortgage ready’ when it comes to making any offers on a property.

In having this certificate on hand, you will prove to the seller that you are able to obtain a mortgage for the amount you will need to purchase the property and are ready to proceed with the sale.

A mortgage agreement in principle will not be a definitive guarantee of being able to obtain a mortgage, as the rest of your full application will require further background checks (such as evidencing your income) and having a property valuation undertaken on the property you’re looking to buy.

As an experienced mortgage broker in Birmingham, we highly suggest that all customers try to obtain an agreement in principle at the earliest opportunity. This is because of the following reasons:

1.   Negotiating Power.
2.  Avoid Disappointment.
3.  Knowing Your Limits.

Negotiating Power

Once you reach the point of being able to make an offer on a new home, the majority of estate agents will undertake the necessary steps to ensure that you can go forward with a mortgage on the property.

Generally speaking, they will require you to provide them with evidence that you are able to afford the purchase of the property, prior to listing the property as sold and taking it off the market.

If you have already managed to have a mortgage agreed prior to making an offer on the property, you’ll come off as more appealing to the seller.

This will also prove to the seller that you’ve put a lot of careful thought about your mortgage journey and not just decided to purchase out of the blue, with no preparation.

This might persuade a seller to accept any offers that you make that are lower than the initial asking price. Make sure not to make offers too low though, as you don’t want to insult the seller.

Avoid Disappointment

When it comes to making a purchase on a property, we often find that customers can go full steam into the process, making an offer on a property without making sure that they can afford to actually buy the property in the first place.

This could lead to customers facing potential disappointment if the mortgage application happens to fail, as by that point they may have already had their heart set on that property.

By getting in touch with a mortgage advisor in Birmingham early on, the potential disappointment that you otherwise would’ve faced could potentially be avoided.

Often, there are various factors that are causing a mortgage to decline that can be overcome with a little time and the guidance of a trusted mortgage broker.

Knowing your limits

If you are a First Time Buyer in Birmingham and know you have a good credit score because you’ve never been turned down for credit, have paid everything on time and are registered on the voters roll etc, it is still worth getting in touch with us for mortgage advice in Birmingham.

You might find that you could approach various different lenders and each time get a different max mortgage amount back from them. These lenders all calculate affordability in their own unique way, with their own individual criteria.

If you are self employed in Birmingham, though the mortgage process is not completely impossible to navigate, it can be very complex for self employed applicants, without the assistance of a mortgage broker in Birmingham by your side.

Some lenders will take your net profit, others are known to use your salary and dividends. Some use your latest year, whereas some others will use an average over three years.

Think it’s simple?

Being aware of your borrowing limits is very important when it comes to applying for a mortgage, as then you have a realistic idea of what your price range on a property is going to be.

Our team of mortgage advisors in Birmingham will be able to give you a guide of the potential maximum mortgage available to you and help you to work out an estimate of the amount you’ll possibly be paying back per month for your mortgage.

Specialist Mortgage Advice in Birmingham

Agreement in Principle and Soft Credit Searches in Birmingham

Agreement in Principle explained

First Time Buyers in Birmingham, and other consumers are awareness of credit scoring appears to be higher than ever before, and a large majority of people who get in touch with our team appear to have already reviewed their credit reports online.

There are lots of different credit reference agencies to choose from, with the two most commonly heard of companies being either Experian or Equifax. We personally would recommend that new clients use Check My File for a 30-day free trial. If you do not cancel, this will change to £14.99 a month, though you can cancel this at any point in time. This report offers our clients a collaborative look at the information produced in an easy to understand the color-coded credit report.

Often our customers will ask if our Mortgage Advisors in Birmingham will be doing a credit search of their own, because they are aware that too many searches can cause problems for their credit score. The lender always runs credit checks, but our Mortgage Advisors in Birmingham will ask the client for their permission beforehand.

What is a Hard Credit search?

A hard credit search will provide a much more in-depth look at your credit report. Any financial institution that looks to carry one of these out should seek your permission before doing so. The advantage of a “hard” search would be that you have a much higher chance of succeeding with your mortgage if you pass the credit search, as they will have already gone quite deep into your details.

The only thing that can go wrong from then on is if, for some reason, you cannot provide satisfactory documentation to back up the information you have disclosed, or it turns out you have provided false details.

Another benefit to the hard search is that it leaves a ‘footprint’ on your credit file, meaning that anyone who looks at your report can see that it you’ve already been under the microscope so to speak. This isn’t inherently a bad thing but if for example, you have multiple searches included in your credit file in a short period, then it could be perceived as you are applying for lots of credit at once, which the lender may feel is suspicious activity.

The footprint does not state whether your application was successful or not but if you have several searches over a few weeks then lenders’ systems could wrongly assume you are being declined on the basis that “Why else would you go to Lender number two unless Lender number one had said no?”.

The odd hard footprint on your record is no big deal so this doesn’t give reason to worry a whole lot about it. The main lesson to take away here, is take precaution in having too many hard searches, as this could negatively affect your process.

What is a Soft Credit search?

On the other side of the coin, we have a soft credit search. This is a much ‘lighter’ search which looks at your financial situation and would be the type of search that would be carried out on price comparison websites to let you know what may be available to you. It may also be used from time to time, in order to verify your identity. Many mortgage lenders carry out soft searches, and we’re always seeing more lenders switching to this type of search.

While less information is offered to who is carrying out a soft search, as opposed to what they would receive if it were a hard search, you can still get a good idea as to whether or not you’ll find mortgage success by obtaining an Agreement in Principle. If you get this, you’re theoretically in with a good shot anyway.

One of the most beneficial things about soft searches is that while you will be able to see soft searches that have been carried out on you, if you check your credit file (people are usually surprised by how many have been carried out on them) these searches are not visible to other financial institutions like banks, building societies or other mortgage lenders. This means you can freely apply for an Agreement in Principle and it is unlikely to damage your credit score, whether it is successful or not.

How our Mortgage Advisors in Birmingham can help

If you are in the market for making an offer on a property as a First-Time Buyer in Birmingham or are maybe Moving Home in Birmingham, our trusted Mortgage Advisors in Birmingham would highly recommend that you have a Mortgage Agreement in Principle in place before getting in touch with the seller.

You want to be able to give yourself the best possible chance of securing the property you want at the lowest possible price, so if you can demonstrate that you have your finances in a good place, you are effectively giving yourself the upper hand. Having an Agreement in Principle could also mean that any estate agent may be put off trying to ‘cross-sell’ their other in-house mortgage services to you.

Different Types of Mortgages Available in Birmingham

Mortgage Advice in Birmingham

In the beginning of your mortgage process, you will quickly become aware that there are lots of different options available to you. Ranging from mortgages for First-Time Buyers in Birmingham to Home Movers in Birmingham, or Remortgages in Birmingham, there is a large variety to choose from.

In this article, you will see a selection of free information with accompanying videos, of the most popular types of mortgages available on the market. If you have any further questions regarding any of the below mortgage options, then please do not hesitate to Get in Touch.

The different types of mortgages in Birmingham:

What is a Fixed Rate Mortgage?

A Fixed-Rate Mortgage means that your mortgage payments are going to remain consistent for a set period. You are in control of the length you wish to fix your payments for. Popular choices tend to be two, three, or five years, sometimes longer.

No matter what happens to inflation, interest rates or the economy you know that your mortgage payment, often your biggest financial outgoing, will not unexpectedly change.

What is a Tracker Mortgage?

A Tracker mortgage means that your interest rate will follow the Bank of England’s base rate, and is not set by either yourself or the mortgage lender.

You will be paying a percentage above the Bank of England base rate. For example, if the base rate is 1% and you are tracking at 1% above base rate, that means you will be paying a rate of 2%.

What is a Repayment Mortgage?

When you take out a repayment mortgage, this means each month you are paying a combination capital and interest. This means that if you keep your payments going for the full length of the mortgage term, you are guaranteed to pay off your deal in full by the end of your term.

This mortgage type is the most risk-free way to pay the lender back your capital. In the beginning of your mortgage term, it is mainly the interest that you are paying and your balance will go down at a slow rate, especially if you have taken out a term over 25, 30 or 35 years.

Things pick up in the last ten years or so of your mortgage, where your payments are paying off more capital than interest and you will be able to pay off your balance quicker.

What is an Interest-Only Mortgage?

While many mortgages connected to Buy-to-Let in Birmingham can still be set-up on an interest-only basis, it is much more difficult to get that kind of mortgage on a residential. It is much less likely for lenders to offer an interest-only product nowadays, though there are certain circumstances where this can still be viable.

Reasons this may work, include downsizing when you are older or have other investments that you will use to pay the capital back. Lenders are very strict when it comes to offering these products now, and the loan to values is a lot lower than it used to be in days gone past.

What is an Offset Mortgage?

With an Offset Mortgage, the lender will organise a savings account to go alongside your mortgage account. Let’s say you have a mortgage balance of £80,000 and £20,000 remains deposited into your savings account, you only pay interest on the difference, which in this case would be £60,000. It can be a very efficient way of managing your money, especially if you are a higher rate taxpayer.

Trusted Mortgage Advisor in Birmingham

How to Make an Offer on a Property in Birmingham?

How much should I offer in Birmingham?

If you’ve found a property that has caught your eye and you think that it could be the one for you, the next step is to make an offer on it. When making an offer on a property, you have to make sure that the seller or estate agent knows the whole of your personal and financial situation.

Giving them the whole picture of your situation puts yourself in a great position and can benefit your application. They will refer back to your circumstances and consider them before accepting your application. You are always covered if something pops up in the future as you’ve already told them right from the start.

Making an offer checklist

Mortgage agreement in principle

If there is a cash buyer making an offer on a property, 99% of the time you won’t be able to beat them. However, to improve your chances of competing against other buyers, you should get an agreement in principle in place nice and early.

A mortgage agreement in principle is written confirmation that a lender is willing to let you borrow a certain amount from them for a mortgage. If there are other people interested in buying the same property as you without an agreement in principle, you should automatically be a step in front of them if you have one.

When you approach a Mortgage Broker in Birmingham like ourselves, we will arrange an agreement in principle for you within 24-hours of your application. It can even be within a couple of hours if your mortgage situation is straight forward.

Ready for a fast purchase

If you are prepared for your mortgage and have everything else ready to go, you may be in a better position than other buyers who are still preparing last minute bits. Make sure that you have everything ready, especially if you have your heart set on a property; you wouldn’t want to lose it!

Sometimes, the seller may want a quick purchase, so if you want to quickly secure the property and are settled on a final price, you may be Moving Home in Birmingham faster than you thought.

Negotiating

If a property has just been listed on the market, the seller may stick to their asking price, especially if it’s gaining interest. When a property has been on the market for a while, the seller may be more lenient with the selling price and you may be able to ask for a little less.

A top tip for making an offer on a property is to research similar housing sold prices in the same area to get a feel of how much you should offer the seller. If they aren’t willing to negotiate a deal, you may have to increase your offer or walk away if you don’t want to meet their asking price.

As a Mortgage Broker in Birmingham, we also recommend that you never take someone’s first offer, as a buyer or seller. There will be a reason why the property is listed at a certain price, so make sure that you do your research first.

Property chains may go against you

A property chain is where more than one buyer is linked to a transaction. For example, you are Moving Home in Birmingham and you want to make an offer on a property but you can only move in once the people buying your current home can move in after they’ve sold their home. It often keeps going and going, that’s why it’s called a property chain.

It can be very hard to avoid being tied into a property chain. Almost every home mover’s purchase will require another purchase to be made before they can move into another property. Therefore, if you aren’t linked to another property and that chain isn’t there, you actually could put yourself in front of lots of other people.

If you are a First Time Buyer in Birmingham, this won’t affect you as you are most likely renting or still living with your parents.

Need further Mortgage Advice in Birmingham?

If you are interested in a property in Birmingham and want further advice on how to make an offer, feel free to get in touch with our amazing team of advisors. Our Mortgage Advisors in Birmingham will not only be there to give you advice on this stage of the moving home process, they will also provide you with support and guidance through the rest of it.

We know that Moving Home can be a stressful and difficult process, and that’s why we want to offer our specialist help. Get in touch today for a free moving home mortgage consultation in Birmingham

Coronavirus & the Mortgage Market in Birmingham

Coronavirus impact on the mortgage market in Birmingham

This article was originally published on 30th March 2020 and as of the 20th May 2020 the property market has now resumed and this information has become outdated. Everything was 100% accurate at the date that this article was published.

During last week, the mortgage market has suffered thanks to the coronavirus. Everything has come on a bit fast, and we recommend it’s best to catch you up to speed.

We aren’t trying to scare you, and we want to explain what is happening to the mortgage market and do our best to help you through the problems you may face during these rough times.

Mortgage Surveyors

The central dilemma for the mortgage market is that surveyors and mortgage valuers can’t go out and visit properties because the whole property market is on hold. Lenders need to know what they are lending against, so require some sort of valuation before accepting your application.

Some lenders rely on AVM’s (Automated Valuation Model) for valuations on a property. The reason being it’s a way for lenders to receive a valuation without actually going out to the property.

However, when they don’t need to send someone out to look at the property physically, these types of mortgages get restricted and to lower loan-to-values only.

During the last couple of days, as of March 28th, some lenders have been restricting their maximum loan-to-value down to 60%. So, they are continuing to process these types of applications but not necessarily ones at higher loan-to-values.

A lender’s viewpoint

Each lender is taking a different approach. So far, no mortgage offers got withdrawn, and we think that it is just a waiting game at the moment, lenders are just putting everything on hold before rushing into accepting more mortgages.

We have whiteness that some lenders have decided to extend the periods of their mortgage offers from six months up to nine to allow the economy and the mortgage market to get back up and running again.

Mortgage Payment Holidays

Following our recent article about Mortgage Payment Holidays, we want to remind you that you should only take one if you need to. Do your research, talk to a Remortgage Advisor in Birmingham, evaluate your options, and see whether it is the right thing for you.

It is more than likely that they will extend the period of your mortgage anyway, so it could be better just to hold off. You should contact your lender if you are questioning your ability to meet your monthly mortgage payments.

If you decide that this is your best option, lenders are asking for you to get in touch online due to the sheer volume of calls they are receiving.

If you are going to request a payment holiday, check that it won’t affect your credit rating or mark any arrears against your account. Also, don’t just cancel your direct debit and remember that you will need to seek permission from your lender to take a payment holiday.

Speak to a Mortgage Advisor in Birmingham today

The main thing is not to panic. We are here to help you with all of your mortgage problems and get you and your mortgage through these next couple of months. At some point in the coming weeks or months, someone is going to press play again.

We will all be back to normal in the given time. You can still get in touch with a Mortgage Advisor in Birmingham 7 days a week. Business is as usual. We can’t wait for you to get in touch and help you with all of your mortgage needs.