How to Make an Offer When Buying a House in Nottingham

Making an Offer on a House in Nottingham

If you are a First Time Buyer in Nottingham, and just found the right property for you, you’ll be needing to negotiate the asking price and put down an offer fast to avoid any other potential buyers sweeping up your desired property, at the same time you want to put down that ‘magic number’ to secure the property but, would prefer not to overpay for it. As a First Time Buyer in Nottingham, you may not be familiar with negotiating a property price. Below are the steps you may need to take to put you in a much better position when you make an offer.

What You Need to do Before Making an Offer

Agreement in Principle

Remember that there are other potential buyers. Therefore, it is vital to get your portfolio looking as good as possible to get yourself ahead. This will give you an advantage in getting your offer accepted. Another good tip is to work out how much mortgage you can afford, add your deposit, and set money aside for the costs of buying a property too.

We also recommend sending over a copy of your Mortgage Agreement in Principle, also known as a Mortgage in Principle and Decision in Principle. It gives you a better idea as to which properties you can afford and makes it easier whem making an offer. A Mortgage Broker in Nottingham like ourselves can help you with this, our team can usually turn around an Agreement in Principle within 24 hours after your initial contact with us.

What are the best ways to go about offers?

Getting a mortgage is about negotiating. It will most likely turn out that your initial offer will be rejected but rest assured, this is expected. If this happens, you will be given an option by your Estate Agent to increase the offer. It is best to be sensible and go for the amount which seems the most reasonable price to which you can afford.

If your second offer is also not accepted, the possible reason for this could be down to willingness towards the payment of the asking price. Therefore, if the property is new to the market and the asking price seems too high, sometimes the best option is to be prepared to find another property.

“Sold” prices on Property websites such as Zoopla and Rightmove can be a great insight to giving you a right estimate on correct asking prices depending on the area. A lot of this data is compiled from the Land Registry, meaning it should be reliable.

Certain properties may stand out because they may seem much lower in price compared to the other houses that surround them, there will be an underlying reason for this. The most common reasons include:

• The house has been repossessed.
• The landlord has sold it for a discounted price.
• It was sold between family members.

In our service we will guide you with your offering strategy. It may seem nerve-wracking but it is also a very exciting part of the process.

How to make an offer on a property?

Making a good offer is an integral part of getting the property you liked but there are certain things you need to consider when you are making an offer on any property that you wish to purchase. It is not enough just to be giving asking price to be a good buyer and stand out from other buyers but there are other things the seller considers while making the decision on choosing the buyer.

Make an offer on a property – submitting an offer:

While you can get submit a verbal offer either in person or on phone, most of the agents now ask for you to send your offer via email these days, for records for both parties. This offer is then taken to the seller who chooses to accept or reject your offer. An agent is liable to pass any offer he received to the seller for their consideration.

How to stand out:

The all-set buyer

The seller will take you more seriously if you come across as a well-prepared buyer who can show evidence that they can afford the property with a ‘mortgage agreement in principle’. You should also have a solicitor in place so you can advance their details when the offer on the property is accepted.

Chain-free buyers

Any buyer without baggage of previous mortgages, first time buyers in Nottingham or buyers with pre-organised mortgages will have a benefit of preference from the seller.

Swift and easy processing

Your transactions and agreements will process more swiftly if you are a chain free and organised house buyer.

Tip: If the seller is in hurry to sell or has been trying to sell the property for some time, they might accept a lower offer than the asking price as well, especially if your purchase will pass through quickly.

Property value

Some sellers are not constricted by time or other factors and hence will wait for the buyers who can offer a higher price to maximise the value of the property.

Confidence

No matter what price you are offering for the property, do it with assertiveness and confidence. Most negotiations include several rounds of offers and counter-offers.

Things to remember when making an offer:

While you might be attracted to a certain property, you should always have a budget ceiling in mind. This will help you decide the maximum you can offer for a property and if the investment is worth for you in long term. An agent is required to be transparent and will let you know if other parties are interested in the properties to help you make your case.

Once the offer is made:

Ensure that it is clear to all parties that the offer is:

Subject to Contract (STC) – the final sale is made when lawyers have exchanged and signed contracts.

Subject to Survey – allows any cost for faults and issues to be taken in account.

Once the offer is accepted:

Ensure that the agent has taken the property off the market otherwise, you risk a chance of being gazumped.

Sole Name Mortgage Advice for a Married Applicant in Nottingham

Specialist Mortgage Advice in Nottingham

Through our experience as a mortgage broker in Nottingham, we find that customers looking at applying for a mortgage look at making a joint mortgage application as they generally look when in a relationship. This is an alternative option to apply for a mortgage under the only name of a sole named applicant.

With inflation exceeding the increase in wages along with property prices constantly rising. A couple of first time buyers in Nottingham earning an income will generally be able to get a substantial mortgage the amount which covers what the buyers are looking to achieve.

In some cases, one applicant may be able to apply for a mortgage, but this depends on the situation of the individual. One of the reasons for this may be that one of the applicants does not want their name to be linked to the mortgage in question.

Other issues could be due to someone having a previous credit problem. For instance, a bankruptcy or a County Court Judgement is stopping them from getting a mortgage now. When something like this happens, given that the spouse or partner has no financial connection to this issue, they can apply for the mortgage on their sole behalf.

If you’re in this situation, you should be careful not to build a financial link with your partner so you can protect your credit score from harm.

Mortgage Application Borrowing Capacity

Another situation we have encountered through our time providing clear and transparent mortgage advice in Nottingham is when one of the partners is currently unemployed by choice or something else. The consensus is that the maximum borrowing capacity for a couple with only one applicant is much lower than if the working applicant applied for a mortgage in their sole name.

This arrangement is something we regularly come across working in the mortgage industry. Age can impact the calculation, for example, an applicant who might be older, say in their 50s or so.

The way this applies to your mortgage is that an applicant who is buying with a younger partner who is also in a good paying job could have access to a higher mortgage.

Implications on Tax 

Another reason why an applicant will look into the option of applying for the mortgage in their sole name could be due to stamp duty or other tax implications.

Dedicated Mortgage Advisor in Nottingham 

With married applicants, we do find that lenders will usually have quite strict criteria because it will be taken our with two interconnected applicants. 
 
You may disagree with this statement due to two applicants providing security, in the event that lenders need to chase for payments, it can open the door to complications if circumstances change like a divorce. 
 
The good news is that not all lenders will provide this biased view. With this in mind, we have a brilliant specialist mortgage advice in Nottingham team who will be available from until late, every day of the week. 
 
Here at Nottinghammoneyman, we have an expert team who have a fantastic reputation in helping thousands of home buyers and homeowners with varying situations to get towards mortgage success. Get in touch with our team today who will be more than happy to help you through our mortgage journey.

Having Mortgage Problem in Nottingham?

Specialist Mortgage Advice in Nottingham

When we face a client with a complex mortgage situation, we continuously try our best to get by it, aiming to secure our client a tailored mortgage deal.

As a mortgage broker in Nottingham, we would always recommend seeking professional advice from qualified mortgage advisors like us. As we can apply our knowledge to help overcome most mortgage hurdles for our customers, there is rarely a situation that we haven’t come across before.

Whether you’re a first time buyer in Nottingham, a home mover in Nottingham or a buy-to-let landlord in Nottingham, we think that you would find our mortgage advice service extremely beneficial.

Reasons why you might struggle to get a mortgage in Nottingham

Passing lenders credit score

One of the hurdles that come with getting a mortgage is passing a lenders credit score. Every lender has unique lending criteria that you need to match to get accepted by them for a mortgage. Every lender is likely to have very different standards from one another.

We often find that people don’t realise that lenders have these individual criteria. The more lenders you approach that carry out a credit search, the more likely it is that you will get declined. That’s why we always recommend not to rush anything and always know what you are applying before you go ahead.

Improving your credit score

To pass a lender’s strict lending criteria, you often require a high credit score; otherwise, it may not match what the lenders want. Having a low credit score could be down to numerous things, and sometimes the only way to continue up the property ladder is to try and improve your credit score. In some cases, it’s relatively easy to improve, just time-consuming.

Your credit score is critical, so if you are worried about your score, you should consider checking your credit file. We hope this can help! Take a look at Check My File for more details and a free 30-day trial.

When you apply for a mortgage, your lender will either perform a soft or hard credit search. Soft credit searches will give the lender basic information and will have little impact on your credit score. On the other hand, if they perform a hard credit search, they will get a more in-depth view of your file, leaving a more significant imprint on it.

Remortgaging

If you struggle to find a better remortgage deal or don’t want to shop around, you can always try a mortgage broker in Nottingham like us. We will sort out everything for you and search through 1000’s of remortgage deals to try and find you the best mortgage deal, saving you time and money; for a more tailored answer, get in touch and speak with one of our advisors for a free remortgage consultation today.

Are you struggling yourself?

If you are struggling to get a mortgage and want some help from an expert Mortgage Advisor in Nottingham, we are always here to offer a friendly helping hand. We know that it can be a complex and often stressful process, and that’s why we want to help you.

Want To Buy A Property? 9 Question To Ask Yourself First

First time buyer mortgage advice in Nottingham

We often find that first time buyers in Nottingham like yourself can sometimes see the entire homebuyer experience stressful. It doesn’t have to be that way. To help you get prepared. This article will feature a shortlist of top questions to ask when considering enquiring about a property.

9 Questions to ask yourself before buying your first home

1. How much interest has there been in the property/development?

It’s always worth finding out how many people have viewed or enquired about the exact property you are after. Giving you a more accurate measure of how much time you have before making a definitive decision. After all, this will be one of, if not the most significant financial commitments in your life.

2. Is there a property chain?

If there is no onward chain, you will likely be able to move quickly, especially if you are not part of a chain yourself. In addition, if there is no need to sell your property first, you will have more advantages as a buyer as you will not hold up the home buying process.

3. What comes with the sale?

New build properties often come with extras to incentivise you to buy the house. In addition, they sometimes come with optional extras you can purchase brand new and ready for you on your moving day.

If you are not buying a new build property, some previous homeowners like to leave items behind to save on costs, which could work in your favour. These can include and not limited to a washing machine, fridge, freezer, or typically a shed if the property has a garden shed.

4. Are the neighbours friendly?

Try to gain insight into your new neighbours. as a good or bad neighbour, the experience can frequently make or break your experience of living in the property.

5. How much does it cost to run?

Running costs can depend on the property location. It’s always best to find out how much the Council Tax and the average spend on utilities by asking the seller or researching online.

6. Which way does the house face?

Suppose you like relaxing in the garden in late summer evenings or reading books in the conservatory —the direction the house faces can make such an important difference.

7. After moving in, how much work will be needed?

When you move into your new home, you will often want to decorate your tastes and what other work needs to be done around the property. We tend to find older properties; you may have some ‘fixes’ or repairs to make. Or make improvements to energy efficiency, insulation and garden work.

8. Are you open to offers?

Negotiating on a property price is a pretty standard part of the house-buying process. Therefore, it’s essential to be as prepared as possible to make an offer on a property that you like. You can learn more about improving negotiating on a property price and being one step ahead here.

9. When can we move in?

By setting a date in your diary, you can plan your other jobs, such as instructing a conveyancing solicitor, packing your belongings and arranging a removal van to bring your belongings to the new property.

How to Improve Your Credit Score in Nottingham

Credit Score Mortgage Advice in Nottingham

A credit score is a number that represents a person’s creditworthiness. Your credit score will be used to calculate your affordability for a mortgage, loan, credit card, etc. Your score will be listed on your credit file, so anyone that does a credit search on you will be able to see your score.

Credit score criteria

• 300-580 – This is a ‘poor‘ credit score. Having a credit score within this range could lower your chances of being accepted by a lender.
• 580-670 – Having a score like this would slightly increase your chances of being accepted. This is considered to be a ‘fair‘ credit score.
• 670-740 – If you have a score that’s within this credit score criteria, you have a ‘good‘ credit score. On average, this is the most common credit score range.
• 740-800 – This credit score is ‘very good‘. If you have a score in the category, your chances of getting accepted will be high.
• 800+ – This is the ‘best‘ credit score category; having a credit score greater than 800 is ‘excellent‘. Your chances of being accepted by a lender are well above the average.

If your credit score is above 670, a lender will likely see no problem lending to you. On the flip side, if your score is less than 670, you may find it a little harder to get a mortgage and access the competitive deals that high credit scoring applicants are being offered.

If you want to access these types of rates, you may need to start thinking about trying to improve your credit score in Nottingham.

Reasons why your credit score may be lower

As a Mortgage Broker in Nottingham, we come across applicants in all different kinds of credit situations, some more specialist than others. There are lots of different reasons why your credit score may be low, some reasons are more common than you would realise.

We’ve seen a lot of customers suffering from a county court judgement (CCJ), a CCJ can severely impact your credit rating. If you fail to pay back a loan/lent money, you’ll be issued with a CCJ that won’t disappear from your credit file for 6 years or more.

This is why we always recommend that you pay off your debt before applying for credit; your lender will be able to see your ongoing finances and balances left to pay off. If a CCJ pops up during a credit search on your file, you will undoubtedly start getting asked questions.

Little things can cause damage too. For example, if you fail to keep up with your mobile phone contract payments and you end up with frequent bounced direct debits, your score will get harmed. Any sort of missed payments and bounced direct debits will appear badly on your credit file.

Even maximising into your overdraft every month could cause long term damage to your credit, without you even knowing. Your lender needs to know that you can manage your finances and not overspend. A lender will never accept an applicant who never has any money remaining at the end of the month, they need to know you have enough for your monthly payments.

This is just mentioning a few things that could negatively impact your credit rating, there are lots of other reasons why your credit score may be lower; some factors will cause more damage than others too. If you have a bad credit score and need some tips on how to improve it, feel free to get in touch with our team for Specialist Mortgage Advice in Nottingham. Whether you are a First Time Buyer in Nottingham, Home Mover or Self Employed, we are sure that you’ll benefit from our mortgage services.

Improving your credit score in Nottingham

Trying to improve your credit score can be hard, but hopefully, with the help of this handy guide, you can be nudged in the right direction towards improvement. You should know that every lender has different lending criteria, so you’ll never qualify for every mortgage deal, no matter how high your score is.

This means that you may still be able to access some specialist deals, even if you have a low score. Every lender and their criteria are different, so look out for their requirements before submitting your application. If you need help in finding a competitive mortgage product, speak to your Mortgage Broker in Nottingham today and we can recommend the best deal for you based on your personal and financial situation.

Ways to improve your credit score in Nottingham

Keep credit searches to a reasonable amount

Multiple credit searches can have adverse effects on your credit score. Be careful when using price comparison websites that are known to be major culprits of credit searching on individuals. If you are applying for a mortgage soon it may be wise to apply for additional credit afterwards.  Whilst having some credit and paying it back is a good thing for your score in the long run. Lenders prefer to see you leverage your borrowings right before setting up a mortgage application.

Check you are on the Voter’s Roll

Making sure you’re enlisted on the electoral roll really increases your credit score. It indicates stability which lenders like. Ensure your name is spelt correctly and that it’s your current address which is registered online. If you aren’t registered, it’s straightforward and easy enough to do this online.

Know your maximum limit

If you max out your card each month, your score will be reduced. Using a credit card to keep on top of your payments each month is a preferred method. This will be a good indicator to your lender that you are good at managing your money. The main red flag in a lender’s eyes is if you exceed an agreed card limit or overdraft. The reason lenders watch over this is because they want to know you’re able to take your finances responsibly.

Check your address history is keyed correctly

Sometimes it can be perceived on your credit report that you are living in two places at the same time if providers have yet to be told that you have moved houses. It is pivotal that the addresses which you’re updating are spelt correctly; If you have been residing in a flat this can be a bit more complex as the address can be formatted in different ways.

Keep up to date with credit accounts

If you no longer use certain store/credit cards you should get into contact with the providers to close the account for extra security. In the short term, this could be seen as having a brief impact on your score as the lender can’t tell who’s closing the account e.g. you or the provider but this will be for the better and an advantage to you in the long run. This is a good thing to do to reduce your chance of becoming a victim of fraud if you don’t notice you have a lost a card that you may use regularly.

Look out for financial links to others

Having family members or ex-partners connected to you financially could mean that they’re affecting your credit score unknowingly. Although you won’t be able to get the financial association removed if the account is still active though. To remove the links between you and another individual you should contact the reference agencies and make a request. The sooner you do this, the more beneficial it will be.

Many consumers feel that credit scoring is an unfair way of applications being assessed though lenders themselves are indifferent to this idea as it makes their overall job easier. It is more cost-effective for them to operate this way and computers give more consistent outcomes. On the other hand, some lenders do still do it the old-fashioned way but still apply the same rules about the number of defaults and CCJ’s they will allow.

When setting up your application, be sure your report is up to date to increase your chances of being accepted the first time. The more in-depth information which your Specialist Mortgage Advisor in Nottingham has at hand, the better.

Our 10 Step Mortgage & Home Buying Guide for First Time Buyers

To get first time buyers in Nottingham prepared for their upcoming mortgage journey, we compiled a 10 step guide on what gets involved during the mortgage process. 

The 10 steps to the process of home buying and obtaining a mortgage are as follows; 

• Your Initial Enquiry
• Free Mortgage Consultation
• Agreement in Principle (AIP)
• Find a Solicitor 
• Make an Offer
• Submit Your Documents
• Formal Mortgage Application 
• Valuation/Survey 
• Mortgage Offer 
• Completion

Step One: Get in Touch for Your Free Mortgage Consultation

Here’s the scenario you have no experience in this field but took that important financial decision to purchase a place to call home. Now, you need to take out a mortgage.

It’s at this point you contact a trusted mortgage broker in Nottingham. We can step in and advise you along the process. We aim to take the stress away from you and work hard to make the right decision to ensure you come out the other side with a mortgage and your first home, smiling and with an affordable deal.

When you get in touch with us, we’ll book you in for a free mortgage consultation with one of our expert mortgage advisor in Nottingham. Here we’ll take some initial details and get a brief overview of your situation and what you’re trying to acheive.

Step Two: Free Mortgage Consultation

During your initial free mortgage consultation, your dedicated Mortgage Advisor in Nottingham will run a Mortgage Affordability Assessment to get a bigger picture of your current financial circumstance. During this assessment, your mortgage advisor in Nottingham will look over your income and expenditures to calculate how much you can borrow for a mortgage.

Once you have completed your free mortgage consultation, we can begin searching through 1000’s of mortgage products to find you the most suitable deal for your personal and financial situation.

Step Three: Obtaining a Mortgage Agreement in Principle

Once we’ve found you a suitable mortgage deal and you’re happy to proceed, we will then go away and obtain your Agreement in Principle (AIP). An AIP is a written document that a lender provides which indicates they have agreed in principle for you to borrow the loan amount requested from them. An AIP is not a guarantee; when processing through to a full application, the lender will look at your income and credit history in more detail. They will usually ask for evidential documentation to back up your application.

Having an AIP in place also shows that you are well-prepared and serious, which could possibly allow room for price negotiations. Typically, an AIP lasts around 30-90 days. If your AIP expires, it can easily be renewed; get in touch with our fantastic mortgage team in Nottingham and we will try and get you one arranged within 24-hours of your enquiry.

Step Four: Finding the Right Solicitor 

After you have an Agreement in Principle, it’s now time to find yourself a conveyancing solicitor/conveyancer. Their job is to help you with the legal proceedings of the homebuying process. The term conveyancing is simply used to describe the transfer of legal ownership of a property between parties, no matter if you’re the buyer or seller.

Conveyancing solicitors will handle the contracts, give you legal advice when you need it, conduct local council/authority searches, deal with Land Registry and transfer the funds you have acquired in order to pay for your property. You must choose carefully when it comes to solicitors, as they will play a vital role in your home buying process.

As a mortgage broker in Nottingham, we cannot offer you these services in-house, however, we have a large variety of trusted companies that your dedicated Mortgage Advisor in Nottingham will be able to refer you to.

Step Five: Making an Offer on a Property 

Now you’re halfway there, well done! You’ve spoken to your Mortgage Broker in Nottingham, passed the Mortgage Affordability Assessment, secured an AIP and found yourself a Conveyancing Solicitor. Step five is to make an offer on a property.

Having an AIP ready at this point may allow you to negotiate on price as it shows the seller that you’re in a position to proceed if they were to accept your offer. Buying a property is a negotiation process; if your initial offer is declined, you will be asked whether you want to increase it or not. For more information please see our how to make an offer on a property guide.

Step Six: Submit Your Documents 

Now it’s time to contact your Mortgage Advisor in Nottingham and return to the mortgage process.

The next step is to submit your documents to your advisor, they will tell you exactly what they need, however, there’s nothing wrong with being prepared.

You will need to provide certain documents to prove that you are the person that you say you are, your income, where you live and how you manage your finances. If you’re obtaining a joint mortgage, they will require this documentation from both parties involved.

The types of documentation that you’ll need to evidence include:

• Photographic Identification (Driving license, Passport, etc.).
• Proof of Address (Utility bills, tax bills, credit card statements, etc.).
• Latest 3 months’ payslips & Latest P60 (employed applicants)
• Latest 2 years’ tax calculations and corresponding overviews (self-employed applicants)
• 3 months’ bank statement showing the build-up of the deposit funds together with an explanation for any large credits.

Step Seven: We’ll Progress Your Mortgage Application 

Once we have all of your documents to hand, we are now ready to submit your full mortgage application. Your mortgage advisor in Nottingham will double check your documentation and make sure that it evidences what we are submitting to the lender.

Once everything has been sent off, our Mortgage Administration team will always keep in close contact with yourself and the lender to make sure that your application progresses smoothly.

Step Eight: Property Valuation / Survey 

Whilst your mortgage application is with the lender, you will be required to get a property survey carried out on your property. Usually, they are carried out by accredited companies, typically ones that the lender trusts.

A property survey is carried out so that your lender can get a true value of the property, versus what you’ve agreed to pay for it. If you’re paying above its actual market value, the lender may be less willing to accept your mortgage offer. This is because, in the event of arrears, it’s likely that they’ll be out of pocket and unable to pay back the full borrowed amount. This is more formally known as a ‘Down Valuation’.

There are different types of property surveys available. Some will want to know the property’s actual worth, whereas some may look at structural concerns and possible repairs that need to be looked at in the near future. It’s your dedicated advisor’s job to help you choose the best property survey. This is something that we can help you with; another reason why you should use Nottinghammoneyman for transparent mortgage advice in Nottingham.

Step Nine: Receiving Your Mortgage Offer 

Here’s the moment that we’ve all been waiting for. If everything has been done correctly and your mortgage application looks good, the lender will present you with a mortgage offer.

At this point in the process, our team of Mortgage Admin’s and Mortgage Advisors in Nottingham will just double-check that everything is good to go. We will see if things have been done correctly and that you can advance to the last stage. Once your mortgage offer has been received, it’s then down to your Conveyancing Solicitor to take your purchase through to completion.

Step Ten: Completing The Process 

Well done! You’ve now moved from being a first time buyer in Nottingham to a First Time Home Owner in Nottingham. We really hope that you’ve found the process smooth and easy-going, despite everything that’s going on behind the scenes. We also hope that you love your new home and your fresh start!

All that you need to do now is go get your keys and move in!

We hope that you loved working with our team and received a fast & friendly Mortgage Advice service in Nottingham along the way. By any chance, if you’ve chosen a fixed-rate mortgage, at the end of your term, we’ll be in touch to help out once again with your Remortgage!

Nottinghammoneyman Christmas Message During Covid-19

Have a safe Xmas – from your Mortgage Broker in Nottingham

We here at Nottinghammoneyman would like to wish everyone out there a very Merry Christmas, and we hope for a prosperous and healthy 2021 for all.

The values of properties in the UK have surprisingly held themselves up high during the pandemic. Due to stock shortage, undiminished consumer demand and the Stamp Duty Holiday (which is due to end in March of 2021).

Suppose we have learnt anything about the property market in 2020. In that case, it’s that you’ll never stop a dedicated and hard-working potential First Time Buyer in Nottingham from pushing through and doing whatever it takes to be a homeowner!

Purchase & remortgage predictions

We predict that as we advance into 2021, despite unemployment levels going on the rise, we here at Nottinghammoneyman fully expect the consumer demand for buying property to continue to be on the rise.

With people spending more and more time at home, it’s only natural that people will inevitably start looking for something bigger, better or with a lovelier garden.

Also, around this time of year, we will see lots of remortgage activity from customers who are happy with their current home but would like to invest in their homes by expanding for some home improvements.

Things are looking up

Interest rates are still relatively low, and off the back of Brexit, the Government will want the property sector to thrive, especially considering that it is one of the “wide multipliers”, e.g. it will uphold lots of jobs.

Once the vaccine is fully out there, and life starts to feel a little normal again. We believe there will be many people who adopt a “life’s too short” approach to their lives, something that should be good for the economy, especially those with involvement in the property market.

If you need Mortgage Advice in Nottingham or life insurance advice in 2021, please feel free to get in touch. Our dedicated mortgage advisors are available from early until late, seven days a week, from morning until late evening, to answer your questions. Contact us to book your free mortgage consultation!

Christmas Mortgage Advice in Nottingham

What are my options if my Interest-Only Mortgage is ending soon?

Interest-Only Mortgage Advice in Nottingham

Year after year, back to back, we see thousands of Interest-Only Mortgages in Nottingham reaching the end of their terms and customers unable to pay off their mortgage fully.

Here we will explain what they are, the situations people face and what to do if you have an Interest-Only Mortgage.

What is an Interest-Only Mortgage?

Residential Interest-Only Mortgages were the in thing back in the 1980s and 1990s. The concept was that you pay interest on the capital owed, then when you reach the end of the term, you pay a lump sum. Borrowers would get advised to set up an “Investment Vehicle” alongside their Interest-Only Mortgage.

These were low-cost assets offered by investment companies, to raise enough money to eventually pay off the lump sum at the end of the term. In some cases, these investments may even provide additional funds on top of paying off the mortgage. Investment Vehicles also acted as a means of providing life cover, should the customer ever unfortunately die.

When taking out their Interest-Only mortgages, many customers did not get informed about the risks involved. There was no guarantee that their investment would grow enough to pay off the mortgage, with some customers not even investing at all. There were many complaints, with thousands receiving compensation if they got mis-sold on their mortgage.

Why do people still have these?

These days we find that Interest-Only Mortgages are mostly used in conjunction with Buy to Let Mortgages. In any case, this is because some landlords like to maximise their monthly profits as much as possible.

Endowment Mortgages haven’t been popular in some time. There may be people still using one of these and have not managed to get them switched into a Repayment Mortgage yet. If this is you, you may be understandably concerned about losing your property.

You can still get an Interest-Only Mortgage, but with stricter rules now in place, it is less likely to be seen or cause any trouble for customers. Not all lenders will offer interest-only and those that do have stringent criteria, such as an approved repayment vehicle in place and a bigger deposit.

If I have an Interest-Only Mortgage, what can I do?

At times some lenders have surprised the borrower by requesting full repayment of the balance. Though this would typically only occur if the lender had been a poor communicator. Lenders regularly write to the borrowers, to ensure they know they need to make their repayment plans.

If you realise you are unable to repay the capital when required, please communicate and be open with the lender. However, this will not be the first time they have encountered this situation. So make sure you keep them updated on your circumstances.

Lenders do not like repossessing properties from people who cannot payback. However, they need to make their money back somehow, so will do this if they have no alternative.

Here are some of the things you could be doing to resolve the issue:

• If it is affordable, see if the lender can transfer you to a repayment mortgage.
• Consider selling your home and downsizing if you can.
• Use any savings you have or get help from family members. Usually, parents will be more than happy to push forward any early inheritance.
• Speak to a Mortgage Advisor in Nottingham and see if Remortgaging to a new lender in Nottingham.
• Consider Equity Release/Lifetime Mortgage option through a specialist Advice broker.

There are now a lot more Retirement Mortgage options available to borrowers directly than ever before. If you happen to qualify for one of these options. You may continue to pay interest as a means of protecting the equity currently present in the property.

On the flip side, if you are not worried about leaving an inheritance to your children. You can allow interest to roll up and flat out stop making any mortgage payments.

A significant problem with Equity Release Mortgages is usually the Loan to Value. To qualify for one of these, especially if you are in your 60’s. You need to have a decent amount of equity in your home.

The Importance of Changing Your Address in Nottingham

Mortgage Advice in Nottingham

When you look at applying for your mortgage in Nottingham, it is important that you are wary of your credit score. The higher that your credit score is, the higher the likelihood of being accepted for a mortgage by a mortgage lender.

There is a lot for you to keep your eye on, from maintaining monthly payments, to limiting gambling transactions, to name just a few. One factor that is often overlooked but is an important factor, is ensuring that all of your addresses are up to date.

For many, it is seen as a negative to have too many addresses on your record. This is true to a degree, however, many have gone about their savvy practices on this in a way that actually could cause their credit score more harm than good.

We frequently see mortgage applicants, especially younger first time buyers in Nottingham, who have moved out of their parents home and into their own rented accommodation. When doing so, many of them look to leave much of their post being delivered to their family address instead.

This includes things like bank statements, credit cards and electoral roll information, to name but a few. Sometimes this is accidental, other times intentional, but it isn’t as good as you may think. This is because, without fail, there will always be a record of your address somewhere.

You have to think, if you’re setting up new contracts or getting post delivered from Amazon or eBay, it will show up in your credit file as a new address. When a mortgage lender performs their credit checks on you, they will see that this address exists, and it can look like you’re living in two places at once!

Check Before You Apply!

Before you look at applying for a mortgage where you will be credit searched, you have to be absolutely certain that, to the best of your knowledge, nothing will be left unchecked that could impact your credit score and harm your chance of getting a mortgage.

This means logging into all of your accounts, such as credit cards, current accounts, shipping details, water and electric bills, and importantly, the electoral roll (this has a big impact!) and seeing that they are all up to date with your new residential address.

Of course, this will only apply to those who have moved out and are living in their own place first, as if you are still living with your parents, you can’t change your details to a new address you don’t yet have. So if you’re a first time buyer in Nottingham, in this situation, don’t worry!

In any case, you need to absolutely double, triple, quadruple check all of these things ahead of applying for your mortgage. The electoral roll information is often the one we find that people forget to update the most before they go into their mortgage journey. It makes a difference!

Make sure that the dates of these are correct too, that you know the exact dates you moved into your rented property and the day that you left it.

It’s important that you get the dates right too, knowing the exact date you moved into your rented property and the day that you left it. If you do make a mistake with this and there are periods that overlap, a mortgage lender may feel like you are living in two places at once.

Impress Your Mortgage Lender

By ensuring that you have updated every single bit of information you have on your accounts, you are showing a mortgage lender that you are serious about your mortgage process and know what you are doing. You are also making sure that you only have one consistent address at any given time.

Doing this is a much more open and honest way to conduct yourself ahead of your mortgage application process. You always want to try and impress your mortgage lender as best you can, present yourself in the best light, and doing this is a good way of going about that.

If you still require a little more assistance regarding your mortgage advice process, feel free to book online for a free mortgage appointment and speak with a dedicated mortgage advisor in Nottingham today.

We completely understand that being a first time buyer in Nottingham with no mortgage experience of your own can be quite difficult, and that is why we are here to lend a helping hand.

By booking in for a free mortgage appointment in Nottingham, you will benefit from having a trusted a dedicated mortgage advisor in Nottingham by your side, every step of your mortgage journey.

Stamp Duty Holiday Introduced

Stamp Duty Mortgage Advice in Nottingham

To help get the property market back on its feet in post-lockdown, the Government has put into action a stamp duty holiday which will stay in place up until the 31^st March 2021.

Stamp Duty often acts as a barrier to most people who choose to buy a home, so with this new Government implementation, it should allow the Property Market to be more accessible to a wider range of the general public during the current times.

This holds hope from the Government that the temporary move will allow 9 out of 10 people who buy a home to be exempt from paying Stamp Duty.

Here’s how these changes may affect you:

First Time Buyers

Stamp Duty normally doesn’t affect First Time Buyers in Nottingham as they are already exempt up to £300,000. The holiday will only apply to properties up to the amount of £500,000, so if you are a First Time Buyer buying at that maximum figure then you would save £10,000 in Stamp Duty.

Home Movers

The ones who will mostly benefit from this will be the ones moving home. If you are moving home in Nottingham and the purchase is completed before March 31^st 2020 then you will not pay Stamp Duty at all as along as the purchase price is <£500,000. The predicted average that the Governments think the Stamp Duty will fall by is £4,500 but for prices around £500,000, the savings will be £15,000.

But To Let Investors/Additional Homes

The Stamp Duty surcharge still applies in this scenario. This was brought in so that more first-time Buyers in Nottingham gained more opportunity to step onto the Property Ladder but Buy to Let Investors in Nottingham will still be better off than before.

Under the old system, if you bought an investment property for £250,000, you’d have paid 3% on the first £125,000 and 5% on the second £125,000, resulting in a stamp duty bill of £10,000. During the holiday you will only pay 3% stamp duty on the whole purchase price, meaning a bill of £7,500.