Can a Student Get a Mortgage in Birmingham?

Student mortgage advice in Birmingham

During your university years, you will gain independence, freedom but also get the realisation that the experience costs a lot of money! Not only will you have course fees and accommodation to pay for, you will also want to use your money to go out and enjoy yourself.

Do you miss the days when university was free?

Living as a student tenant can go one of two ways, you can either get a great landlord that looks after you and your housemates and sorts your repairs on time etc., or you will get a landlord that never replies to your emails and texts and leaves you with a broken washing machine for over 2 weeks! Unfortunately, more often than not, it is example B that most people are faced with!

This can be frustrating when you are paying so much for your monthly rent and getting nothing back from it. Where does this leave you then? You could accept the fact that this is student life and how you will be treated by landlords, or you could become your own landlord…

Yes, this can be made possible by taking out a student mortgage on your property. It will not only save you money in the short term but also years and years further down the line!

Why should I get a student mortgage in Birmingham?

If you take out a student mortgage, you will save money on your accommodation costs and you will also be getting your foot on the property ladder. As you can imagine, you are required to make a huge investment in order to take out a student mortgage. Usually, it is those studying their third year at university looking to stay on board for their masters/PhD who take out a student mortgage. This is because they are going to be living in student accommodation for another 2-3 years, and rather them paying a landlord, they decided to take out a mortgage and get paid themself.

The bonus of taking out a student mortgage is that after you have finished your course, you will still own the property. Whether you choose to remain living inside of the property or you choose to let it out to other students, it is your choice!

After years of living within the property, it is more than likely that you have built up quite a bit of equity in the property. You could withdraw some of this equity to fund a deposit for a new home. If you are happy living inside of the property, you could still withdraw equity and treat yourself to a holiday, a new car… it’s up to you! Remember, this could benefit you both short-term and long-term.

How can a student get a mortgage?

To qualify for a student mortgage, you will have to meet strict requirements. The process is not as straightforward as the regular mortgage process.

As a mortgage broker in Birmingham, when we come across a customer looking to take out a student mortgage, we will often find that they have already been saving for a deposit. This is because, if you don’t have a deposit at the ready, it is unlikely that you’ll be able to progress much further in the process.

You will not be able to start your mortgage process if you approach a mortgage broker in Birmingham with a loan as your deposit; you would be accountable for 3 loans: your new loan that covered the deposit, your mortgage, and course costs.

When we refer to ‘deposit in place’, we are talking about savings, a lifetime ISA or even gifted deposits. Some older applicants may have always had plans to take out a student mortgage so that they don’t have to deal with landlords and renting.

The most important thing about student mortgages is that you will need to have a source of income. Most lenders will require you to have a full-time job alongside your studies in order to accept your application. Depending on your income, you may be able to take one out with a part-time job. Borrowers with a stable full-time position will appear much more reliable to a lender.

How to make yourself reliable

Reliability is the key to getting a mortgage. Lenders need to know that you are going to meet your mortgage payments each month.

There are many different ways to show your reliability as a student looking to take out a mortgage:

Larger deposit – Increasing your initial deposit reduces the total amount that you need to borrow, which will also decrease monthly mortgage payments.

Utilising a government scheme – Taking advantage of a government-led scheme such as the ‘Own Your Home’ scheme could allow you to access a larger deposit. For example, the Help to Buy scheme can allow you to increase your overall deposit to 25% and the Shared Ownership scheme lets you purchase a share in a property. Take a look at the government Own Your Home website to learn more about the schemes available.

Have an agreement in principle ready – Having an AIP in place could potentially give your mortgage application a boost as it proves that a lender has already said that they’re willing to let you borrow from them. This does however rely on you providing evidence of your income and credit history.

Here are just a few pointers, and some may not benefit you as much as others. If you are wanting further advice on student mortgages, you should get in touch with one of our mortgage advisors in Birmingham – they would be more than happy to try and help you through your process and answer your questions.

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

Like other mortgages, your options are limited when it comes to what type of property you can take your student mortgage out on. Your property will have to match these terms and conditions:

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

With these points in mind, you will have to find other tenants to move into the property with you. Once you have your tenants, you will move quickly through the mortgage process as your lender will know that you will have a regular source of income.

What happens if I can’t afford my payments?

Your lender will always look at the risks involved with lending to a student and that is why they need to be 100% sure that you can afford their payments. This is why they need a backup in case something goes wrong.

When taking out a student mortgage, they will ask for a guarantor. A guarantor is someone who will step in and be responsible for your mortgage payments if you cannot afford them. You will have to provide their details during your application. There are some rules when it comes to choosing your guarantor:

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

Think of it like the lender has to always view it from the worst possible scenario. It’s just a precaution in case things go wrong.

If you need a hand kickstarting your student mortgage application and want first time buyer mortgage advice in Birmingham, get in touch with a mortgage broker in Birmingham like us today. We will check whether you match the requirements or not.

A Guide to Remortgaging in Birmingham

Check out how Remortgage Advice in Birmingham can help you

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

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

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

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

What is a remortgage?  

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

Remortgage for Better Interest Rates

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

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

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

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

Remortgage for Home Improvements

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

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

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

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

Remortgage for Changes to Your Term   

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

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

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

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

Remortgage to Release Equity

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

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

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

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

Remortgage to Consolidate Debt  

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

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

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

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

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

Experienced Mortgage Advisors in Birmingham – Get in Touch

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

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

Why Should I Use a Mortgage Broker in Birmingham? 

The Benefits of Using a Mortgage Broker in Birmingham

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.

How to Improve Your Credit Score in Birmingham

Credit Score Mortgage Advice in Birmingham

A credit score is a three-digit number that use to help decide whether you get accepted for a mortgage.

Utilising the information displayed, lenders will look at your credit report, application form as well as any other information they hold on you (if you are an existing customer). With this data, the lender can calculate your credit score representing your credit history mathematically.

By calculating this, the lender can see what kind of borrower you are and how likely it is to manage your repayments. Your score is not a specific number. Different lenders will look at other factors in potential customers, therefore, it might be best that you approach another lender as you may not be ideal for one lender.

Knowing Your Credit Criteria

• 300-580 – Lenders will classify this as a poor score which can lower your chance of getting your mortgage application accepted.
• 580-670 – This is known as a fair credit score, and some lenders may be more lenient with accepting your mortgage application.
• 670-740 – Being scored at this level will be helpful in increasing your chances of having your mortgage applicated accepted. This is a common category many customers fit into.
• 740-800 – This a brilliant score! Having this at a higher level will increase your chance of having your mortgage application accepted.
• 800+ – Having a score that’s 800+ is exceptional; the chance of having mortgage application accepted is above average; congrats!

Typically, the higher your score, the better your chance of being accepted for your circumstance ‘best’ deal.

Reasons Why Your Credit Score Dropped?

It can be common for customers to get in contact with our team asking if they Can Get a Mortgage With a CCJ, after being declined for having a ‘low’ credit score. Sorting out these types of cases is something we deal with daily as a Mortgage Broker in Birmingham. We also encounter many applicants who are the subject of a county court judgment (also known as a CCJ).

If you fail to repay a loan/borrowed money, you will likely get a CCJ. Having a CCJ can leave a severe mark on your credit for 6+ years. It would be wise to pay off your debt before applying for credit. The CCJ will show up on your file, making the lender ask questions. Even the little things can sometimes cause damage, such as:

• Failing to stick to credit agreements.
• Failing to keep up with your mobile phone contract payments.
• Dipping into your overdraft every month.
• Using multiple price comparison sites.

The above are only several examples that could have a negative impact; there might be other reasons you could have bad credit. Whatever situation it is, our team is here to help you improve your score to increase your chance of your mortgage application passing the Lenders criteria!

There are numerous ways to improve your score to try and get you up into that next bracket, and the good news is it may still be possible to secure a mortgage in some cases!

Look at Ways to Improve Your Credit Score

It can be a time-consuming task to try, however, this handy guide may help you go up another bracket. An important point you need to know is that each lender has its lending criteria, so your score may impact what deals you can access. Even if you have an excellent score, it doesn’t always that you will match every lender’s criteria. Sometimes, it’s down to your circumstances and up to your lender’s criteria.

1. Avoid Unnecessary Credit Searches

When you go directly to a lender and their in-house mortgage advisor puts you through for a deal, they will perform a soft or hard credit search on you. This search will be shown on your credit file. In the case where your application is declined, the credit search performed could harm your credit score.

Carrying out numerous searches may lower your chances of getting accepted for a mortgage in the future. Having a responsive Mortgage Broker in Birmingham will be helpful. We always aim to get it right the first time by looking at your credit score and only approach lenders that hold criteria we know you will pass.

2. Avoid Credit Applications

One thing that can sometimes backfire on you is applying for credit, especially if you don’t have a reason for doing so. Paying back the credit that you’ve borrowed may look good on your application. On the other hand, your credit score could end up in trouble if you fail to meet the credit payment deadline.

Amid your mortgage application, we strongly recommend that you hold off applying for credit. You might be able to get away with it, however, lenders may believe that you are struggling for money in other scenarios. Lenders could be under the impression that you are putting it towards your deposit or using it to aid your mortgage payments.

3. Are You Registered on The Voter’s Roll?

One beneficial and easy way to improve your credit score is to make sure you are registered on the voter’s/electoral roll. By being registered on the roll, you are proving who you are. It’s simple, you just go to the government’s electoral roll: and it’s easy to register from there.

When registering on the voter’s/electoral roll, you must provide accurate information. You need to make sure everything is filled out correctly and you will need to use your current living address, not your previous address.

4. The Importance of Updating Your Address

Our team recommends that you make sure that all of your accounts and details are linked with your current address during the mortgage application process. If you are a First Time Buyer in Birmingham, this won’t impact you as much because this is your application.

On the other hand, if you Moving Home in Birmingham from rented accommodation and you still have your parent’s address linked with any of your accounts, your Lender will identify this straight away. Because of this, you need to change your addresses and make sure they’re up-to-date before applying. Your credit score could be affected if you are linked to the wrong address.

In the circumstance where you decide to approach a broker, our expert Mortgage Advisor in Birmingham will support you with this. Your dedicated advisor will check that everything is updated with you to make sure that you are in the best position for being accepted for a mortgage.

5. Don’t Run Too Close to Your Maximum Limit

Running too close to your maximum limit on your card(s) each month will massively affect your credit score. Lenders like to see that you can pay off your credit card balance each month as it shows that you can manage your finances.

If you are exceeding credit card limits and constantly dipping into your overdraft, the lender will see you as an applicant who isn’t taking their finances seriously.

6. Remove Financial Links to Others

In the circumstance where you are still financially linked to an ex-partner or family member, you might be unaware of your credit score being potentially harmed. You won’t be able to remove your links if the account is still active and live. Make a request with the credit reference agencies to clear your connection.

7. Is it all About Your Credit Score?

In some cases, the lender may be lenient, however, this depends on the lender and how strict their lending criteria are. If there are some personal reasons involved, your lender may be considerate and factor them into your application. As mentioned, it all depends on the lender.

As a Specialist Mortgage Broker in Birmingham, we will always be open and honest with you as well as factor in every bit of detail. Regardless of whether you have a score on the lower end of the spectrum or not, our knowledgeable team of Mortgage Advisors in Birmingham will work hard in finding you a deal that will be suitable for you. With access to a large panel of lenders, some of who offer specialist mortgage products, we will work hard in finding you the one that will achieve your mortgage goals.

Can you get a Mortgage with a Default in Birmingham

A default is a notice that you will receive if you are in breach of a credit agreement.

When taking out credit, you will have to confirm that you will be able to pay the funds back. If you cannot do this, you are breaching the agreement between yourself and the creditor. The default will appear on your credit file; once it does, your overall credit rating and score will be severely impacted.

When issued a default, you will get the opportunity to “satisfy” the default, or in other words, pay it off. A satisfied default will still have a negative effect on your credit rating.

Can I get a mortgage in Birmingham with a default?

During your mortgage application, one of the main things that your lender/mortgage broker in Birmingham will look at is your credit history. You should know that the better your credit history, the easier it should be to obtain a mortgage.

A mortgage is a huge financial commitment that can last over 25 years. Your credit history will show that you have received default and have breached a credit agreement; they will even be able to see why you have received a default.

It’s all about risk. Lenders need to know that you are a reliable applicant before lending to you. This is why they will also consider how long ago the default was issued. If the default has recently been issued, your chances of getting a mortgage are very low. Lenders will be more likely to accept your application if your default was issued a long time ago. On the other hand, this is not guaranteed, it depends on your circumstances and the mortgage lender.

What impact does a default have on my mortgage application?

A default in your name immediately impacts the lenders you can and cannot access. You will have to limit yourself to specialist lenders and those accepting applicants with bad credit in Birmingham.

As a Specialist Mortgage Broker in Birmingham, we have a large panel of specialist lenders, each with their own unique mortgage deals. Some of these products may be able to help you get a mortgage with a default.

Generally, these products come with high rates of interest early on. When it comes to the time, there are many reasons to consider a remortgage, you may be able to find a new product with a competitive rate of interest. Your default may be cleared from your file by this point too.

Does the type of default make a difference?

Remember that lenders can see the reason why you have been issued with a default. This could make a difference in your ability to get accepted for a mortgage.

Some lenders may be more lenient with you if you have received a default due to missing a mobile phone payment over a mortgage payment. The more serious the default, the less likely a lender is going to accept you.

Usually, most lenders treat defaults equally. At the end of the day, you have received a default for failing to meet a credit agreement. Most lenders will not want to take the risk in case this happens with your mortgage payments.

What if I’ve not satisfied my default?

If you have not satisfied your default, your mortgage options in Birmingham may be even more limited. You may need to opt for a bad credit mortgage in Birmingham. Contact us for First Time Buyer Mortgage Advice in Birmingham in this case, we can also look into helping applicants who are Self Employed in Birmingham too.

Lenders mainly focus on the date that the default was issued over whether or not it has been satisfied. You may have more chance of being accepted if your default was years ago rather than if you received it last week. If you do satisfy your default, your lender will be able to see “satisfied” next to it on your credit file.

How long will a default remain on my credit file?

Typically, a default will remain on your credit file for 6 years. Even if you have satisfied this default, it will still remain on your file.

This does not mean that you will be unable to get a mortgage during this period. There are sometimes alternate mortgage options available through specialist lenders. At the end of the day, you have a default on your file, you may have to be patient.

How soon after a default will I be able to get a mortgage?

There is no exact length of time, you will just have to find the right lender. We can try and help with this. As a Mortgage Broker in Birmingham, we have many different specialist lenders on panel that we can access for you.

As time passes, if you do not manage to get a mortgage with a default in your name, you can spend time rebuilding your credit score. This will show lenders that you are improving how you manage your finances and it could allow you to access better rates.

Tips for Improving Your Credit Score

Upon receiving a default, your credit score will massively dip. It may stay like this for a long time too. This is why we suggest trying methods to Improve Your Credit Score in Birmingham within the 6 years of the default being associated with your name. A good way to start is to satisfy it straight away.

You may need to wait for the 6 years to pass until you see a difference. If this is the case, you should make sure that you are registered for the electoral roll and that your addresses are the same across your credit and store accounts.

You could even take out the lowest limit credit card available to you at your bank, and only use it for essentials such as shopping and paying it back in full each month. It may take some time, but you should see your credit score improve.

Have a default? Book a Free Mortgage Appointment in Birmingham

If you have a default in your name and want to see whether you are able to get a mortgage, feel free to get in touch with our team or alternatively, book a free mortgage appointment online to speak with one of our Specialist Mortgage Advisors in Birmingham today. We are available 7 days a week, so choose a date and time that suits you and your personal situation.

Buying as a Sitting Tenant in Birmingham

Sitting Tenants Mortgage Advice in Birmingham

Through our years of giving our customers expert Mortgage Advice in Birmingham, our Specialist Mortgage Advisors in Birmingham have found that enquiries from renters interested in becoming First Time Buyers in Birmingham are always on the rise. They can achieve this by purchasing their rental property from their landlord.

In the landlord’s eyes, selling a property to its existing tenant can be more manageable and straightforward. Because of this, some landlords may give the option for the tenant to buy the property off them before it goes on the open market.

If you are living in a rental property and would like to purchase it from your buy to let landlord, it is recommended that you seek, Buy to Let Mortgage Advice in Birmingham to discuss the offer with them directly on a priority basis.

Mortgage Advice in Birmingham for Exisitng landlords

What reasons may a landlord be selling?

In the current climate, many landlords are now required to pay more tax than they would have done before due to government tax relief clamps. This can result in many landlords finishing their housing ventures and seeking another investment in a different market.

Those who are investors and are looking at remaining in their role as a landlord which in turn keeps the property market going usually work around these legislative changes. In terms of buy to let landlords, they see their property as a long-term investment. However, amateur landlords are normally aiming to make a quick investment so will sell things if circumstances don’t benefit them.

The benefits of selling to a tenant

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

Mortgage Advice in Birmingham for a tenant

The benefits of buying from a landlord

Not only do landlords sometimes benefit from this option, but many sitting tenants also find it beneficial to buy from landlords. Some of these advantages include:

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

In the case where you both decide on the price and it is below the property’s value, a lender may choose to put the property’s equity towards your deposit. If there is enough equity, you may not require a deposit at all.

However, If a deposit is needed, you may be wondering how much deposit do I need? Here your open and honest Mortgage Broker in Birmingham will break down how much you might need given your situation.

Getting Organised for a Mortgage

Once you have gotten the hard part out of the way, that being saving up for your deposit (or if the equity has been utilised for a housing deposit), then the next step is to get yourself organised for a mortgage in Birmingham.

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

Can I Get a Mortgage in Birmingham with an IVA?

What is an IVA?

An IVA, or an individual voluntary agreement, is a legally contracted agreement between the person who owes the debt and the creditor (individual/organisation that has loaned the money). This agreement will outline a way for the debt to be prepared over a set period. In most cases, if the amount that you owe exceeds £500, you could be enrolled on an IVA.

The idea is to create a repayment plan to pay off the debt. Usually, the plan will run over 5 years. An IVA will be set up by an insolvency practitioner, who will have specialist knowledge of debt repayment. They will liaise with the creditor on your behalf and make sure that you are meeting your payments on time.

At the end of the day, IVAs are put in place to help the debtor repay what they owe. They were introduced to help people repay their debt, not make them financially worse off. Our Specialist Mortgage Advisors in Birmingham can help answer your mortgage questions surrounding IVAs.

Does an IVA Affect my Credit Score?

Whilst an IVA can reflect negatively on your credit rating, it is not impossible to get a mortgage with one in your name, there are a few different ways to improve your Credit Score in Birmingham, which you may find beneficial. Having an IVA shows the mortgage lender that you have previously failed to pay off a credit agreement. A mortgage is a huge credit commitment and lenders cannot afford for you to miss your repayments.

If you are looking at taking out a mortgage with an IVA, you will also need written approval from the creditors you originally borrowed money from. They may not agree to these terms and your application may be unsuccessful. If you were to receive a lump sum or gain an extra source of income, the creditor may want you to put it towards paying off your IVA.

Your insolvency practitioner will be able to speak with your creditors and try to come to an arrangement. You may need to pay a certain amount back or be enrolled for over a certain amount of time etc. before you are able to submit a mortgage application.

Is an IVA right for me?

Some people may not receive an IVA, and this is purely down to affordability. If someone cannot afford to maintain their credit agreements, they may not be able to maintain their IVA repayments.

Before taking out an IVA, the insolvency practitioner checks that you have enough disposable income to cover your costs of living.

How does an IVA affect my mortgage application?

Although having a negative impact on your credit score, may not stop you from getting declined for a mortgage in Birmingham. An IVA offers an alternative to missing future payments or getting further into debt with the creditor. The more payments you miss, the more harm you are doing to your credit score. Also, the lower your credit score the more deposit you may have to put down.

When assessing a mortgage application, lenders look at your affordability and other credit agreements, therefore, they will be able to see the IVA on your file. Like defaults, they may even be able to why you have been put on an IVA and how much you owe the creditor. Depending on various factors, they may decline your application.

As a Mortgage Broker in Birmingham, we would recommend not applying for a mortgage if you’ve only just been put on an IVA. Your lender will not know whether you’re reliable yet or not either.

Can I get a mortgage after an IVA?

Once an IVA has paid off, because you have cleared the debt, you may be more likely to get accepted for a mortgage. This is not a guarantee though.

Your credit score will still likely be lower, which can impact the sort of deals that will be available. In Birmingham, we would advise that you seek Specialist Mortgage Advice in Birmingham before applying for any of these products. We are very experienced in this field and have advisors that may be able to help.

If you already have a mortgage, you’ll benefit from discussing Remortgage Advice in Birmingham with us, from there we’ll explore your remortgage options. Remember, credit can be built up over time and most of the time it’s best to pay off your IVA.

Top 5 Mortgage Hurdles You May Come Across in Birmingham

When it comes to the mortgage journey, it can be common for people to encounter some issues that can stall them and getting Declined for a Mortgage in Birmingham. It can sometimes become a challenge to overcome these obstacles, especially if you are in a complicated situation.

Hurdles We’ve Seen As a Mortgage Advisor in Birmingham

Here at Birminghammoneyman, our team has come across a variety of mortgage hurdles, especially with First Time Buyer or Home Movers in Birmingham with complex cases. Through our 20 plus years of experience in the industry, we have encountered a lot of challenging situations and know the ways to deal with them.

On the rare occasion that we face a situation we haven’t seen before, our team will work hard in overcoming this towards mortgage success. If you are a First Time Buyer in Birmingham, you might have little to no knowledge about these hurdles which is where we can help!

With an endless list of hurdles that people have encountered before out there, below are just a few that are more common and are hurdles that many applicants face in the midst of the mortgage process.

Common Home Buying Hurdles in Birmingham

Childcare costs

If you do have children, it is uncommon for you to be turned down for this. On the other hand, it may put you at a slight disadvantage when it comes to your offer as it may be a little lower because you have children.

From a lenders point of view, they want to ensure that you can afford all your mortgage payments along with your current expenses. These costs outgoing do include childcare costs. Lenders have to factor these in as childcare can usually be hundreds of pounds each month. Childcare costs rarely do down, they mostly increase! Therefore, lenders would see this in the same as they would with a loan or hire purchase.

You might have no nursery fees to pay, however, you may find that you still get offered less than buyers with no children. One factor that is good to know if you have children is that some lenders may take into account child benefits if you are in receipt of tax credits.

Divorce/separation

In the unfortunate event that you and your partner decide to go your separate ways, it’s likely that you will encounter some financially related issues, especially if you have a joint mortgage.

If you are financially linked with someone else, it may be difficult for lenders to accept you. This is because lenders don’t want you to have different sets of mortgage payments to meet each month, it could be a lot to keep up with.

Our team find we get asked the same questions when people approach us for Specialist Mortgage Advice in Birmingham when they are in need of help with their mortgage.

• – 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?

These types of mortgage hurdles can get it pretty complex, very quickly. Generally, there is a solution to these situations, and our team may be able to help overcome them. Having an expert Mortgage Broker in Birmingham by your side, we aim to take a lot of stress away as possible through these difficult times.

Benefit income

Benefit income can have mixed views with lenders. Child tax credits, working tax credits and disability allowances could be factored in as income with certain lenders. Get in touch with our team if you are looking for more information about mortgage and benefit income. Our Mortgage Advisors in Birmingham will review your situation and find you a lender who will consider your benefit income to match you. We aim to get it right the first time!

New job

In most cases, applicants go into a new job with a larger salary. With this extra income, many put this towards a new mortgage. You may automatically think that this would mean you are more likely to get a mortgage but, this isn’t always the case.

Normally, starting a new job will come with a probationary period. These are usually fine, however, there will be a bit of uncertainty there. Many lenders might only accept you as soon as you have job security. This all depends on the lender and mortgage costs.

In order to determine your work patterns, lenders will also look at your employment history. This will show them if you are dipping in and out of work or not. Having gaps in your employment can harm your application. Many lenders will work from a newly signed employment contract even in your first month.

Evidencing a deposit for a mortgage in Birmingham

Every single mortgage lender and mortgage broker legally has to evidence where the borrowers’ deposit funds for any purchase have come from. This is to combat money laundering and show that the applicant has raised funds legally. You might find your solicitor and the estate agent will ask for evidence of your deposit also.

Regardless of where your deposit is from if it is 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 a paper audit trail for the accumulation of funds.

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.

Why has my Mortgage Application Been Declined in Birmingham?

Been Declined? Mortgage Advice in Birmingham

Why have I been refused a mortgage?

We tend to find some First Time Buyers in Birmingham struggle to secure a mortgage because they have poor credit. You see, one lenders’ credit score can vary, some are more difficult to pass than others. Some lender can sometimes be quite reluctant in terms of informing you as to why you failed their lending criteria. This may be down to a mixture of reasons. Sometimes the lender themselves can’t precisely say why your application was unsuccessful because ‘it is not knowledge in their hands’.

We recommend you speak with one of our Mortgage Advisors in Birmingham. During your free initial mortgage appointment, we can obtain a up-to-date copy of your credit file. Next, we can search 1000’s of deals and find you a product with a lender. Finding you a lender to match your circumstances may help you have a better chance of succeeding with a mortgage.

For most lenders the larger your deposit, the more likely you will be accepted for a mortgage. A larger deposit can help pay off a larger chunk of the property value. This means that you’ll most likely borrow less and the lower the loan-to-value.

Declined Due to Having ‘Poor’ Credit Score

There are different ways to help Improve Your Credit Score in Birmingham like having a credit card that you should use regularly and making sure you pay off the full balance each month. Other ways include making sure you are on the voter’s roll and closing any old bank accounts, credit, and store cards that you are no longer using.

Your Mortgage Broker in Birmingham is here to help

Here at Birminghammoneyman, our team will check that you match the lender’s criteria to make increase the chances of you passing their credit scoring before you submit your mortgage application to a lender. We aim to get this right first time!

We are here to help you find a deal that will match your financial circumstances, regardless of their situation, we try our best with all applicants, but cannot always guarantee success. Whether you have bad credit or good credit, we will strive in finding you a great mortgage deal through a lender that will accept your mortgage application.

Lenders criteria

Lenders have criteria that are individual to their products. This is why some lenders are more than others for your situation. Each lender usually has a niche for themselves in order to attract good quality mortgage borrowers who might not match the criteria of their competitors, so they can get ahead in the market. Below are some examples of why your application is getting declined for being outside of policy:

• Adverse credit history – If you take out adverse credit Mortgage Advice in Birmingham as early as possible this can give your application the best possible chance of success.
• A married applicant looking for a mortgage in a sole name – Lender do prefer two salaries, but oue team are able to look into Sole Name Mortgage Advice in Birmingham for married applicants on your behalf.
• Not enough deposit.
• Non-standard property construction.
• Minimum/maximum age or mortgage term.
• Minimum/maximum loan amount.
• Length of time in employment or being an applicants whos Self Employed in Birmingham.

Through utilising our 20 plus years of experience as a reputable Mortgage Broker in Birmingham and access to a large panel of lenders and criteria, we can recommend the most appropriate mortgage tailored to your financial situation. Book your free mortgage appointment today, to speak with one of our Specialist Mortgage Advisors in Birmingham today, to see how they can help.