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.
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.
Once you’ve had an offer 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.
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.
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:
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 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.
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.
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.
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.
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.
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 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.
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.
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.
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.
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 funds 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.
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.
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.
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.
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.
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.
If you know you have a good credit rating 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.
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.
The right to buy scheme in Birmingham allows individuals living in council properties the opportunity to purchase the property they’re living in if they have lived there for a prolonged period of time.
You will be offered the opportunity to purchase at a discounted price. This proposed discount will be used as your deposit meaning you are able to organised your remaining savings to help with the rest of the process.
The right to buy scheme in Birmingham was deemed helpful around the time of the ’80s when it allowed a lot of individuals to become homeowners for the first time. On the other hand, it was deemed controversial.
The main reason for this is due to the dilemma of the scheme turning the homes into privately owned therefore taking them off the public sector, this can be a disadvantage when there is already a housing shortage. As a result of this, the dynamics of council estates have changed.
If you’re interested In the right to buy scheme, the first step is to see if you’re eligible to purchase the property; this is done by completing an RTB1.
Following this, a person will arrange to value your property and inform you how much the property amounts up to. From this, you’ll find out the percentage discount you’re entitled allowing you to gain more of a level idea of future figures involved with the mortgage.
You will then be able to move forward after filling out forms included in a pack that will be sent to you by your local authority allowing you to move onwards.
The way that Lenders will calculate how much you’re able to borrow is done in the same way as any other mortgage: based on your income and expenditure.
This means that it’s still important for you to look ahead and be sensible with your finances, along with checking your credit score.
There are fees involved just as there is with other mortgages so you can prepare and be ready. These can include:
The right to buy scheme was set up so that individuals were able to have a wider opportunity to become Homeowners.
To be able to start their journey on the property ladder. If the involved property is sold before a certain amount of time, then you will be issued a penalty.
This will be in the form of repaying a sum of money linked to the original property discount generously presented at the start of the process.
It is certain factors that people are deterred from the right to buy scheme. Such as carrying out their own repairs and maintenance that come with owning a home.
On the other hand, the majority of people who do wish to take the opportunity, do so because if they tried another way, it may prove more difficult.
Consumer 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.
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.
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.
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.
So, you’ve had your offer accepted on a property, however, is the house actually worth what you’ve said you’ll pay for it?
A property survey will be carried out to find out the true value and the overall condition of a property. They will also highlight any issues with the property, such as major/minor damages.
There are three main types of property surveys: Mortgage Valuations, Homebuyer’s Report and Full Structural Survey. Sometimes, a property survey can be carried out free of charge, it depends on the lender that you use.
Depending on the survey that you choose, the outcome of your survey report will vary. Some will provide more detail, whereas others will only touch upon certain aspects. You’ll find that the more in-depth a survey is, the more costly it will be.
If you discover something on your survey about your property that you weren’t told about, by law you are allowed to approach the seller and work out an alternative price if necessary.
Mortgage Valuations are the simplest type of property survey. These are carried out just to work out how much a property is actually worth. Your lender will need to ensure that the property price matches how much you are set to borrow from them. For example, if you put in an offer above the property’s actual value, the seller will likely accept your offer, however, your lender won’t. Unless you have the funds to make up the difference the lender will pull out of the deal. This is called a down valuation.
Unfortunately, this type of survey will not point out unobvious repairs and damages. However, it can inform you of clear structural defects that will require a further look at. For further property investigation, you will be required to pay more to upgrade your survey. In the long run, this may be worth it.
A Homebuyer’s Report focuses on safety. How safe is the property? Is it suitable for living in? These things need to be checked as there could be a mould problem, damp issues or something that does not pass the current building laws.
The report will be carried out by a property expert. They will examine the property from top to bottom, making sure that it’s safe for you to live in.
As a Mortgage Broker in Birmingham, if you’ve made an offer on an older building, we would strongly advise that you take up a Full Structural Survey.
This is the most expensive property survey because the whole property is surveyed. It will also provide the biggest insight to the property out of the three main surveys, highlighting what condition the property is in and what changes need to be made if the property purchase goes through.
A Full Structural Survey can take as long as a whole day depending on the size of the property.
New build properties work slightly differently. There is a property survey specialised for them called a Snagging Survey. This survey will point out both minor and major issues, it could be anywhere from a missing hinge on a door to cracks in the ceiling.
If the new build has already been built and it’s ready for you to move into, ideally, you want to get a snagging survey carried out on it prior to moving in. This way, you have the power to negotiate pricing if there is anything wrong with the property.
If you need help to choose the right property survey for you, feel free to get in touch with our mortgage team. We’ve helped thousands of First Time Buyers in Birmingham and Home Movers in Birmingham choose property surveys in the past – you could be next!
You can obtain the services of a surveyor to carry out a Homebuyers report or building survey through the Royal Institution of Chartered Surveyors.
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.
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.
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%.
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.
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.
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.
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.
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.
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.
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.
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.
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
Today we live in an uncertain economic environment and yet in a world full of opportunities, therefore we like to be prepared and when it comes to our finances, there is one thing we all like: being well informed. If you looking for mortgage advice in Birmingham, we believe, as a group of experts, that there are some really good reasons to use a mortgage broker in Birmingham, so here we will talk about the pros and cons of both methods so that you can make the best well-informed decision.
That being said, we know that there are many options when it comes to mortgages, for example, you can still go directly to the lender, whether it’s via a branch or online. However, we discovered that most people still use a mortgage broker, due to the advantages it brings. So let’s review some of the cases.
As a first-time buyer in Birmingham, you may not have much experience, but one thing is for sure: We all like to save some money. So, when we think of mortgage advice, one of the options that first comes to mind is to go directly to a Bank or Building Society, so that you won’t have to pay a broker fee. However, that option became unattractive when credit scores came in a few years ago and people started looking for other alternatives.
Another of the mortgage products on the market are those offered by lenders that are only available directly. This is a strategy that is often implemented as a means of attracting a good business distribution from consumers and brokers alike. By being exclusive, they are able to turn on and off these products when they deem it necessary, this method often causes confusion in the market and in consumers.
However, from 2014 onwards, lenders were no longer allowed to sell mortgages without professional advice. It should be noted that up to that point, many consumers felt that non-advisors had been trying to push actual advice on them, and they weren’t able to benefit from some of the consumer protection. A benefit that does accompany sales conducted by professionally trained mortgage advisors, reason why most people still use this service.
Because of this, in late 2014 the lenders reached an agreement. This system was threatened and it was not unusual to have to wait more than a month just for an appointment and it still happens today. Of course, this is not the best scenario when you’ve just had your offer accepted on a house. So, many began to make their applications through mortgage agents, who assure you professionalism and a mortgage service the same day, like ourselves.
Another important point when applying for a mortgage is affordability, no matter how good the deal is if it is not enough money. That is why we believe that a broker is a really good option. With our mortgage advice in Birmingham, we can assure you of the best deal and our service when you need it, in a professional and personalized way. When you call us, we try and put you through with a qualified mortgage advisor either immediately or at the very least, within the same day (unless requested otherwise).
Applying for a mortgage can sometimes be difficult. Each case is unique and there are many reasons that can complicate an application. Some examples are:
• Poor credit history.
• Self-employed income.
• Mixed source of deposit (savings/gift).
• Let to Buy (keep your current home and buy another).
• Contract workers / zero-hour contracts.
In previous years, lenders were able to stand out from the competition simply by offering a deal that was similar to but better than another lender. In modern times this is very different, with lending criteria being what separates one lender from another. However, as we mentioned before, when we talk about our well-being and finances, we do like to be well informed, and therefore consult with experts on the subject. Your situation is unique, and what you need is not a better loan than someone else’s, but a better one for you and one that suits your situation.
That’s why we think that seeking professional mortgage advice in Birmingham is the best alternative. When you explain your position to an experienced mortgage broker in Birmingham, there is a chance they have come across something a little similar in the past, allowing them to personalize their service and help you through. With a little luck, professionalism, and a lot of work, your mortgage advisor will be able to recommend the most suitable mortgage for you at the lowest possible rate.
More than that though, it’s not just about getting the mortgage. Even if the application itself is straightforward, our clients trust our experience and knowledge for more than that. For example, we will discuss how much they are going to offer for the property they are buying, and our team of mortgage brokers in Birmingham can recommend other professional services such as solicitors, as well as explain the different types of surveys and protection available to them.
Another major advantage of using a mortgage broker is that they tend to be much more responsive than lenders might be. It’s not been unheard of for our team to work late at night, out of hours, working hard on client cases at full speed to ensure service is prompt, but also efficient. Our team is committed to offering our service when you need it and how you need it.
Also, another point that is often overlooked when looking at why clients may prefer a broker is that everyone is very busy these days. It is possible that you are a self-employed in Birmingham, a full-time worker, a working mom and you need a mortgage but do not have time to do it, that is where your advisor can take the burden off for you. Professional applicants especially see the benefits of these as they have clients of their own to charge for their services and appreciate the benefits of having an expert on board.
Technology is taking over, and the future of the mortgage market is no different. Perhaps in the future, we will see lenders who want to compete with the broker’s business. If this happens, they are unlikely to staff-up their branch networks.
Technology is great, and it is a service special for customers who are happy to do business that way, especially for the cases that are straightforward. For most people, however, there is an element of “reality,” a “human touch,” that you can’t get anywhere other than talking to a mortgage counselor yourself. The mortgage broker becomes your ally and can provide you with a satisfying experience, a complete service with all the benefits that the client requires and attention that technology cannot provide.
Having said all this, the reasons for hiring a mortgage broker in Birmingham are vast and if you want to ask any questions related to mortgages, seek or obtain this service from the hand of a professional team adapted to your needs, get in touch and we’ll put you through with a mortgage advisor in Birmingham as soon as possible.
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.
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.
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.
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.
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.