Your journey into the world of mortgages can be a rewarding endeavour. By the end of your process, you will likely end up with one of the following applying to you;
No matter which of these was your desired route, there will eventually come a time when your mortgage term is nearing its end. At this point you will have several options;
A remortgage is where you will use the proceeds borrowed from a new mortgage, in order to pay off a mortgage that you already have. There are a large amount of different options when taking out a remortgage, ranging from smaller options, to much larger options.
Generally speaking, the initial mortgage deal you’re on will last around 2-5 years, featuring lower fixed rates or possibly even rates at a discount. In some cases you’ll find yourself placed on a tracker mortgage which will follow on with the Bank of England’s base rate.
Most customers will fall onto their lenders Standard Variable Rate at the end of their term (you may see this mentioned across the web only as SVR).
To briefly explain this, an SVR is a mortgage that has an interest rate determined by what the lender wishes to charge and it can change. This also won’t follow the Bank of England’s base rate like a tracker mortgage would.
Because of the nature of them, these are usually the most expensive mortgage routes to take, leaving many to look at their options for remortgaging to get better rates, which will hopefully save you a good amount of money on your monthly mortgage repayments.
A few years into your living in your home, you may decide that something is missing. Maybe you need an extra room or larger living space for your kids or belongings, a new kitchen, a new office, or converted loft.
Rather than move to a larger house, many looking to release equity by taking out a remortgage at the end of their term, so that they can cover the costs of these plans.
Project planning and managing can seem a little daunting, especially when you have to factor in getting planning permission. That being said, others would maybe say that it’s a lot less stressful and more rewarding than the process of finding a new home, selling your current one and having to move everything you own.
Further down the line, this may prove to be even more of a beneficial plan, as creating more space and having good quality craftsmanship will 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.
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.
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 buy-to-let landlords in Birmingham will use equity release as a means of covering the necessary deposit to purchase an additional property for their existing property portfolio.
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.
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.
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.
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.
If you have been reading up on mortgages or more specifically have been having a look at what your options may be for taking out a Remortgage in Birmingham, you may well have seen the term Capital Raising before.
When seeing this term, you may be confused and wonder what exactly is Capital Raising? Capital Raising is simply the act of raising money for a purpose, with money in this case referred to as the Capital. There are a few different ways this can be achieved and it is used for a variety of different reasons.
Generally we find that it is quite common for customers to take out a Remortgage as a means of releasing the equity that is in their property. If you are unsure of what Equity is; Equity is the difference between what you have left to pay on your mortgage and how much the property has been valued at.
If the value of your property happens increases in value over the duration of your mortgage, rather than Remortgaging to Release Equity, you may have the option to take out a Further Advance. This mortgage type allows you to take out an additional mortgage on your property to borrow an additional amount, as a means of releasing the equity in your property.
This mortgage will generally be taken out over a longer term and have interest rates at a lower rate than a standard personal loan would be, although this is something you will pay back alongside your existing mortgage.
This can be a really solid option for homeowners who are not looking to Remortgage, or maybe tied into their existing deal. It’s important to remember though that there are risks, such as a higher risk of repossession if you cannot keep up the much larger number of monthly repayments.
A Second Charge Mortgage works in a similar way to a Further Advance, as with this mortgage type you will be taking out an additional mortgage alongside the one you already have, as a means of releasing the equity in your home for future home improvements or anything else you wish to spend your newly acquired income boost on.
The difference between a Second Charge and a Further Advance is that with a Second Charge you will often be with another lender and on a slightly different interest rate. In the unfortunate event of a repossession, your initial mortgage lender will be paid back from the sale of the property in question, with any remaining funds used to pay off the Second Charge with the second lender.
There are lots of reasons why you may find yourself needing to Capital Raise and release equity via a Remortgage. The options for this that we often hear include to fund any Home Improvements, Modifications or Alterations, such as a new home office, a possible home extension or even a conversion to a loft or garage. Sometimes, we also see customers using these to consolidate any debts that you have gathered over time.
Other circumstances wherein a homeowner may use this include; to gift a deposit to your kids, to purchase a second home (usually an option with Buy to Let Landlords in Birmingham), and to pay for larger purchases such as a car, wedding or holiday.
If you have any equity in your property and are in the market for a capital raising mortgage, then a Remortgage in Birmingham could be beneficial to you. As a general rule, mortgage lenders will let you borrow up to 90% of the value of your property.
Please do Get in Touch and we will advise you of the most appropriate course of action to take for your circumstances. If remortgaging isn’t quite the option for you, taking out unsecured credit might be a more suitable option. A standard Remortgage can take an estimate of around 4 to 6 weeks to fully go through.
With Debt Consolidation there are some risks to bear in mind. That is why we always recommend you speak with a qualified Mortgage Advisor in Birmingham, before you look at consolidating any unsecured debts against your property.
Birminghammoneyman is an experienced Mortgage Broker in Birmingham, here to help you find the best capital raising mortgage deal for your financial, as well as personal circumstances. All of our customers will benefit from a free Remortgage consultation with a qualified advisor. During this consultation your dedicated mortgage advisor in Birmingham will make a full recommendation.
If you happen to be over the age of 55, you may find yourself better suited for the option of Equity Release in Birmingham.
A credit score is a series of numbers that lenders use to help decide whether you get accepted for a mortgage.
Using the information displayed, lenders will look at your credit report, application form, plus any additional information they hold on you (if you are an existing customer). All this data gets used to calculate your credit score representing your credit history mathematically.
It can help Lenders indicate what kind of borrower you are and how likely it is to manage your repayments. There’s no specific number when it comes to your score. Different Lenders will be looking for other things in potential customers, so you may be better off with another while you may be not ideal for one lender.
🏠 300-580 – If your credit score is at this standard, lenders will classify it as a poor score; having a score like this will lessen your chances of a lender accepting your mortgage application.
🏠 580-670 – Having a credit score like this is considered fair, and some lender may be more lenient with accepting your mortgage application.
🏠 670-740 – This is a much better score and helps increases your chances of having your mortgage application accepted. We tend to find that most customers tend to fit into this category.
🏠 740-800 – This is very good! A score as good as this will increase your chances of having your mortgage application accepted.
🏠 800+ – Having a score that’s 800+ is exceptional; you have increased your chances of having your mortgage application accepted above average; congrats!
Generally, the higher your score, the better your chances of being accepted for your circumstances ‘best’ deal.
Don’t think you are the first; often, countless customers come to us after being declined for having a ‘low’ credit score. As a Mortgage Broker in Birmingham, we have to deal with these sorts of cases daily. We come across that the applicants 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. A CCJ can leave a severe dint on your credit file for 6+ years. The best course of action is to pay off your debt before applying for credit. The CCJ will undoubtedly pop up on your file, and the Lender will start asking questions. Sometimes the little things can cause damage too, for example:
🏠 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.
Here we’re just a few things that could negatively impact your credit rating; there are many other reasons you could have bad credit. In any situation, it’s our job to help you improve your score, so you get the chance to have your mortgage application pass the Lenders criteria! There are various 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!
Trying to improve your credit score can be a time-consuming task, but with the help of this handy guide, you may be able to go up another bracket. We must warn you that each Lender has their individual lending criteria, so your score may impact what deals you can access. Just because you have an excellent score doesn’t mean that you will tick every Lenders boxes. It’s sometimes down to personal circumstances and up to your Lenders criteria.
Every time 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, and this search will leave an imprint on your credit file. If your application is declined for any reason, the credit search performed could harm your credit score.
Multiple searches may lower your chances of getting accepted for a mortgage in the future. With the help of a Responsive Mortgage Broker in Birmingham will come in handy we aim to get it right the first time. We will look at your credit score and only approach lenders that hold criteria we know you will pass.
Applying for credit can sometimes backfire on you, especially if you don’t have a reason for doing so. If you can pay back the credit that you’ve borrowed, it may look good on your application. However, flip the situation on its head, and your credit score could end up in trouble if you fail to meet the credit payment deadline.
During your mortgage application, we strongly advise that you hold off applying for credit. In some cases, you may be able to get away with it, but lenders may believe that you are struggling for money in other scenarios. They could think that you are putting it towards your deposit or using it to aid your mortgage payments.
Here’s a beneficial and easy way to improve your credit score; make sure that you are registered on the voter’s/electoral roll. Being registered on the roll shows that you are whom you say you are. All you need to do is go to the government’s electoral roll: it’s easy to register from there.
You must provide accurate information when registering on the voter’s/electoral roll, ensuring that everything gets filled out correctly. You will need to use your current living address, not your previous address.
We always recommend that you check that all of your accounts and details are linked with your current address during the mortgage application process. This won’t affect you as much if you are a First Time Buyer in Birmingham, and this is your first application.
However, if you are Moving Home in Birmingham from rented accommodation and you still have your parents address linked with any of your accounts, your Lender will pick up on it straight away. This is why it’s essential to change your addresses and make sure they’re up-to-date before applying. Being linked to the wrong address could impact your credit score.
If you go down the broker route, our Dedicated Mortgage Advisor in Birmingham will help you out with this step. Your designated advisor will make sure that everything is updated with you to ensure that you have the best chance possible of being accepted for a mortgage.
Maxing out your credit card(s) each month will heavily impact your credit score. Your Lender will like it if you can pay off your credit card balance each month as it shows that you can manage your money.
If a lender can see that you are exceeding credit card limits and constantly dipping into your overdraft, you may think you don’t take your finances seriously.
If you are still financially linked to an ex-partner or family member, your credit score could be getting harmed without you even knowing. If the account is still active and live, you won’t be able to remove your links. The only way to clear your connection is to get in touch with the credit reference agencies and make a request.
Depending on the Lender and how strict their lending criteria is, they may be lenient and allow some wiggle room. If there are some personal reasons involved, your Lender may be considerate and factor them into your application; it’s entirely up to them what they do.
A Mortgage Broker in Birmingham like us will always be transparent with you and factor in every bit of detail. Even if you have a score on the lower end of the spectrum, our incredible team of Mortgage Advisors in Birmingham is still determined to secure you a deal that will suit you. We have access to specialist mortgage deals through our vast panel of lenders; we are sure that we will find one that matches your mortgage needs.
We often hear from customers who get in touch that they are looking for Specialist Mortgage Advice in Birmingham. A large portion of these is currently renting from a landlord who wants to sell them their property.
From the perspective of a landlord, selling a property to their current tenant can be more manageable. They may give the tenant the possibility to buy the property before it goes on the open market.
Because of government tax relief clamps, many current landlords are now paying more tax than they would have done in years gone past, leading some to call it quits on their housing ventures and seek another investment in another market.
Investors who are serious about their job as a landlord and keeping the property market going tend to keep going through these legislative changes. When it comes to being a buy-to-let landlord, their mindset is that their property is a long-term investment. On the flip side, amateur landlords are more likely in it for a “quick buck” and will sell if things don’t quite go their way.
🏠 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.
It’s not just landlords, though – There are also advantages to the sitting tenant who is considering buying from the landlord:
🏠 You have already lived on the property, so you know what it is like!
🏠 There is no waiting for the previous owner to find a place to live, as you already live there.
🏠 Due to the landlord not having to put as much money aside to sell the home, they can often discount it to you for a lower price!
If the price you both agree on is below the property’s value, a lender may accept putting the properties equity towards your deposit. If there is enough equity in there, you may not require a deposit at all!
If you’ve been on the same mortgage rate ever since you’ve bought your property, it may be time to spring clean your finances and get a mortgage review. Doing so may even allow you to access a better mortgage deal!
To put it simply, getting a mortgage review is a look-over of your current mortgage product to check if you can get a better deal or not.
When applying for a mortgage review, your Mortgage Advisor in Birmingham will want to know all about your current deal so that they can compare products. They will look at your current rate of interest, monthly payments, etc. as well as factoring in your current financial and personal situation. If your dedicated Mortgage Advisor in Birmingham can’t find a better deal for you, they’ll be honest with you and recommend that you stick with your current deal.
Spring cleaning your finances by getting a mortgage review could help you secure a competitive mortgage product. If you’ve been managing to keep up-to-date with your mortgage payments and have kept your credit score in the green, you may be able to get a better mortgage deal.
Having a mortgage review and then switching products to a new lender is called a remortgage, whereas having a mortgage review and then switching to a new deal with the same lender is called a product transfer. Depending on the deals available to you, it may be better to choose one over the other, or none at all, and stay on your current deal.
You must know that you are never guaranteed a better deal when you go for a mortgage review. It’s always worth the look though since you can receive a free mortgage review with one of our expert Remortgage Advisors in Birmingham.
As a Mortgage Broker in Birmingham, we would recommend that you take up our offer on a free mortgage review. When you choose Birminghammoneyman for a mortgage review, we will search through 1000’s mortgage deals on your behalf, trying to find the perfect one for you. Our Mortgage Advisors in Birmingham will always try and match you with a deal that is best suited to your personal and financial situation. If we manage to find you a deal that we think will benefit your situation and you are happy to proceed, we will continue to the documentation process and submit your mortgage application.
If you prefer to do things on your own, there are price comparison websites out there that may help you find different types of mortgage deals. Although some products may appear to look good, you should know that not every deal will have accounted for other costs that come with getting a mortgage. In the past, we have seen customers who have switched online because they had seen a competitive rate, but have had to fork out extra money to compensate for additional costs that they weren’t aware of. These extra charges may include product set-up fees, early repayment charges, etc. Furthermore, if you choose a Mortgage Broker in Birmingham, you will benefit from consumer protection.
If you want to, you can also go directly to your mortgage lender. If you want a mortgage review and want Remortgage Advice in Birmingham, this option may not always benefit your situation. This is because lenders can only offer you their own in-house products, they cannot access deals from anywhere else. More often than not, lenders can also have long waiting lists, which is no good when your fixed-term is coming to an end and you want to switch products. A responsive Mortgage Broker in Birmingham like us will be able to get you booked in for a free remortgage consultation/review within 24 hours of your initial inquiry.
If you are tied into a mortgage deal and want to remortgage, you may have to pay a fee to switch deals. This fee is called an early repayment charge or an ERC. You’ll have to pay this when you pay off a loan too early or switch mortgage products mid-way through your fixed mortgage period.
In Birmingham, our Mortgage Advisors will take any ERC’s into account when assessing the financial benefit of applying for a remortgage.
Once you complete your fixed mortgage term, it’s likely that you’ll end up falling straight onto your lenders standard variable rate of interest (SVR). When you are on this rate, it’s unlikely that you’ll have to pay an ERC when switching deals. You should also know that the SVR for your lender is probably higher than your current fixed rate of interest. Lenders SVR tracks the Bank of England’s base rate plus their own percentage and that’s why it can be expensive to remain on this rate.
We have lots of experience in the remortgage game, we have been helping our customers remortgage for over 20 years now. Our Remortgage Advisors in Birmingham are just a call away from helping you through your remortgage application. Now is a great time to spring clean your mortgage!
Get in touch today for your free mortgage review with a Mortgage Advisor in Birmingham. We are more than happy to help and can’t wait to hear from you.
There’s always going to be a chance that you will come across some problem(s) that’s stopping you from getting a mortgage. A mortgage can sometimes be complicated, especially if you are in a complex situation!
As a Mortgage Broker in Birmingham, we encounter all different kinds of mortgage hurdles. Having had over two decades of experience, we have faced most of these complex situations before and know precisely how to deal with them. However, if we haven’t come across a situation before, we will still do everything within our power to help you along your mortgage journey. You may be unaware of the majority of these hurdles if you are a First Time Buyer in Birmingham. We hope to help!
Since there are many hurdles that people have encountered, it would be an endless list if we covered them all. Here is a breakdown of the top five mortgage hurdles that you may face during your mortgage application.
It’s uncommon for your mortgage application to be turned away due to you having children. However, your offer is likely to be a little lower than if you didn’t have children.
Lenders have to be 100% certain that you can afford all of your mortgage payments on top of your current expenditures. Childcare costs play a part in your expenses each month. They have to compensate for these costs as they can sometimes run into hundreds of pounds per month. Childcare costs don’t go down. They only really go up! They treat this financial commitment the same way they would treat a car loan or hire purchase.
Even if you don’t have nursery fees to pay, in some cases you may still get offered less than buyers who don’t have children. The good news is, though, if you do have children and are in receipt of tax credits, some lenders will take these into account as well as child benefit.
It’s unfortunate when it happens, but if you and your partner decide it’s best to split, you may have come across some financially related problems, particularly if you have a joint mortgage.
Lenders may struggle to accept your application if you are still financially linked with someone else. They don’t want you to have two different sets of mortgage payments to meet each month; it could be too much for you to maintain.
When people need guidance with their mortgage in this situation, and they come to us for Specialist Mortgage Advice in Birmingham, we often get asked the same sort of questions:
🏠 How can I remove my ex’s name from my mortgage?
🏠 How do I remove my name from my ex’s mortgage?
🏠 Can I have two mortgages?
When facing mortgage hurdles like these, it can get very complicated, very quickly. More often than not, there is a solution to these scenarios, and we may be able to help around them. With an expert Mortgage Broker in Birmingham by your side, we will take as much stress away as possible during these challenging times.
Lenders will have different viewpoints on benefit income; Benefits such as: child tax credit, working tax credits and disability allowances could be taken as income with some lenders.
If you need further advice about mortgages and benefit income, feel free to get in touch with our team. We will look over your situation for you and try to match you with a lender that will consider your benefit income, and we aim to get it right the first time!
Usually, a new job comes to a bigger salary, and this extra income goes towards something like a new mortgage. Naturally, you would expect that this means that you are more likely to get a mortgage. However, this is sometimes not the case.
Usually, when you start a new job, you’ll have a probationary period. Probationary periods are generally okay. However, there will no doubt be some uncertainty there. Some lenders may only accept you once you have job security. It’s just down to the lender and mortgage costs.
Lenders will also look at your previous places of employment to determine your work patterns. They need to be sure that you aren’t just dipping in and out of work. Gaps in employment can harm your application.
Some lenders will work from a newly signed employment contract even in your first month.
All mortgage lenders and mortgage brokers legally have to evidence the source of the borrowers’ deposit funds for any purchase. They use this to battle money-laundering and prove that the applicant has raised funds legally. Your solicitor and estate agent may ask for evidence of your deposit also.
Whether your deposit is from savings, premium bonds, the sale of another property, gifted from a family member or friend, from family overseas, or a personal loan, you are required to have the paper audit trail for the accumulation of funds.