It's Free to Speak to an Advisor, 7 days, 8am - 10pm
It's Free to Speak to an Advisor, 7 days, 8am - 10pm
So you have your eyes set on a property and you want to make your first offer. Do you have your agreement in principle at the ready? Do you have a mortgage deal lined up and waiting? If not, these need arranging as soon as possible.
You have two options in this situation, you can either go through the mortgage process on your own or gain the expert help from a Mortgage Advisor in Nottingham. It’s entirely up to you, however, just know that there is a big difference between the two options.
If you are opting to take things into your own hands, which is perfectly normal, just know that you could potentially be missing out on countless competitive mortgage deals. When you approach a bank/lender for an offer, you are limited to their products and their products only. They may have an offer that suits your personal and financial situation just right but they also may not.
If you are declined by your bank/lender, you may need to go down the specialist mortgage advice in Nottingham path and see if they can find any specialist deals that will match your specific situation.
If you decide to start your mortgage journey with a Mortgage Broker in Nottingham, you will be taken care of by a professional mortgage expert right from the get-go.
Firstly, you will receive a free initial mortgage consultation. During this step, you will speak to one of our friendly team members who will talk to you about the process and get some basic information from you. Once we have your details, we can move forward and pass you over to a Mortgage Advisor in Nottingham who will continue your mortgage process wit you.
It’s your advisor’s job to find you the most appropriate mortgage deal for your circumstances. They will search through thousands of mortgage deals until they find the best one for you; whether you are looking for a buy to let mortgage in Nottingham, a remortgage in Nottingham or even a Right to Buy Mortgage, we are sure that our excellent advisors will match you with a great deal.
It’s often the case that our customers are first time buyers in Nottingham or people who have been declined by their bank due to strict lending criteria. If this isn’t your situation, it doesn’t mean that we can’t help you as we also deal with lots of other mortgage situations as you know.
Different situations also fit into these categories, for example, you could be wanting to look at remortgaging for Home Improvements, the different schemes or it could be something specialist. Whatever your situation, we are sure that we’ll be able to help answer some of your questions.
Our Mortgage Broker in Nottingham is here to guide you through the mortgage process with a fast & friendly service. We know that the home buying process can be stressful and that’s why we always recommend getting a helping hand from an expert. Here is an insight into our Mortgage Broker service:
To see find out even more information about our great mortgage advice service, feel free to take a look at our service page.
At Nottinghammoneyman, our services are available from 8am – 10pm, 7 days a week. You now don’t have an excuse to get in touch with your Mortgage Broker in Nottingham. We can’t wait to hear from you, claim your free mortgage consultation in Nottingham today.
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.
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.
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.
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.
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.
In contemporary settings, the general public are now paying more attention to their credit rating than ever before which makes them reconsider their financial decisions. Consumer awareness of credit scoring appears to be higher than ever before and the majority of people who get in touch with our team appear to have already reviewed their credit report online to get further ahead in the mortgage process.
There are multiple credit reference agencies that are available for a person to utilise. The most common are companies such as Experian or Equifax but we recommend new clients towards Check My File for a 30-day free trial, following this it comes to £14.99 a month but can be cancelled any time. This report offers our clients a collation of information produced in an understandable colour-coded report.
Try it FREE for 30 days, then £14.99 a month – cancel online anytime.
Clients usually ask if our first time buyer mortgage advisors in Nottingham will be doing a credit search on them because they are aware that too many searches can have a downward effect on their credit score. Lenders always run credit checks but we make sure our Mortgage Advisors seek out a client’s permission before doing these.
Credit searches from banks come in two forms; hard searches and soft ones.
A hard credit search is one where it will offer a more in-depth look into your credit report, if any financial institution carrying out these should prioritise seeking your permission to do this before anything else. The benefit of a ‘hard’ search is that because the lender is looking into your situation closely, if you pass the credit score than your chances of your application being successful will improve drastically. The only thing at that stage that can go wrong is, if, for any reason, you cannot provide evidentiary support of satisfactory documentation to back up the information in which you have disclosed or it turns out that you have provided false details.
The flipside of the benefits is that the hard search leaves a ‘footprint’ on your credit file so that anyone who takes a look at your report can see that it has been carried out. This isn’t necessarily a bad thing but if for example, you have multiple searches included in your credit file in a short period of time then it could be perceived as you are applying for a vast amount of credit at the same time. The search will not state as to whether your application was successful or not but Lenders will sometimes wrongfully assume that you are being declined with the mind frame of “Why else would you go to Lender number 2 unless Lender number 1 had said no?”.
The odd hard footprint on your record is no big deal so this doesn’t give reason to worry too much about it; just take precaution in having too many.
The other form – a soft credit search – is a ‘lighter’ search which looks at your financial situation and would be the type of search that would be carried out on price comparison websites to let you know what may be available to you, or it could be used to verify your identity. Some Mortgage Lenders carry out soft searches and nowadays, even more lenders seem to be changing to this type of search. Whilst less information is offered to who is carrying out a soft search on you as opposed to what they would receive if it was a Hard search, if you obtain an Agreement in Principle from one of these Lenders, it’s usually still an extremely strong indication that your full application will be accepted.
One of the most beneficial things about soft searches is that whilst you will be able to see soft searches that have been carried out on you if you check your credit file (people are usually surprised by how many have been carried out on them) these searches are not visible to other Financial institutions like Banks. This means you can apply for an Agreement in Principle for a mortgage without it damaging your credit score irrespective of whether it is successful or not.
If you are going through the thought process of putting forward an offer on a property, our first time buye mortgage advice in Nottingham would recommend having a mortgage agreement in principle in place prior to contacting the Estate Agent and whilst gaining this, you will also have the option to obtain specialist mortgage advice in Nottingham. You want to be able to give yourself the best possible chance of securing the property you want at the lowest possible price so if you present yourselves as having your finances in a good place then you are definitely giving yourself the upper hand in the situation. Being in possession of an Agreement in Principle could also mean that the Agent is put off trying to ‘cross-sell’ their own in-house mortgage services to you.
In times of financial uncertainty or unexpected life events, homeowners may find themselves facing difficulties in meeting their mortgage payments. This is where the concept of Mortgage Payment Holidays becomes crucial. Here we’ll explore the ins and outs of Mortgage Payment Holidays, addressing common questions and concerns that homeowners may have.
A Mortgage Payment Holiday is a temporary break from making mortgage payments, providing financial relief for homeowners facing short-term financial challenges. It’s essential to understand that a payment holiday does not eliminate the amount owed but allows borrowers to defer payments for an agreed-upon period.
The application process for a Mortgage Payment Holiday varies among lenders. Typically, borrowers need to contact their mortgage provider directly to discuss their situation. It’s advisable to prepare a detailed overview of your financial circumstances and be ready to provide any necessary documentation to support your request.
Taking a Mortgage Payment Holiday does not directly impact your credit score. However, lenders may consider the fact that you have utilized this option when assessing your creditworthiness in the future. It’s crucial to communicate openly with your lender to explore mutually beneficial solutions and mitigate potential impacts on your credit score.
Most lenders are accommodating when it comes to offering solutions for borrowers who have taken a Mortgage Payment Holiday. However, it’s essential to discuss your plans with your lender in advance. Some lenders may have specific guidelines regarding remortgaging or product transfers for individuals who have recently utilized a payment holiday.
If you have exchanged contracts and are in the process of completing your property purchase, taking a Mortgage Payment Holiday may have implications. It’s crucial to inform your conveyancer, mortgage advisor, and the seller about your situation as soon as possible. Together, you can explore viable solutions to ensure a smooth completion process.
Deciding whether to pull out of a property purchase is a significant decision. Factors such as the reason for financial strain, the property market conditions, and your long-term goals should be carefully considered. Consult with your mortgage advisor, solicitor, and any other relevant professionals to make an informed decision based on your unique circumstances.
Aside from Mortgage Payment Holidays, there are various options for homeowners facing financial difficulties. These may include negotiating a temporary reduced payment plan, exploring government support schemes, or seeking specialist mortgage advice in Nottingham to help create a sustainable budget. Each situation is unique, so it’s crucial to assess all available options with the guidance of financial professionals.
Over the years, we’ve encountered numerous first time buyers in Nottingham aiming to step onto the property ladder by purchasing the home they currently rent privately from their landlord. This process is sometimes known as buying as a sitting tenant.
As a private tenant, there’s a possibility that your landlord may offer you “first refusal” – meaning they give you the opportunity to purchase the property directly from them before it goes on the open market.
If you haven’t been offered first refusal or are unsure about the possibility, we advise reaching out to your landlord to inquire further.
The popularity of buying from landlords has grown significantly due to changes in government policies. Previously, landlords enjoyed tax relief benefits on buy to let mortgages in Nottingham, but this option is no longer available. As a result, many landlords now face higher tax bills.
Despite the loss of tax advantages, buy to let investments can still be a lucrative long-term option, yielding substantial profits over time. The expenses associated with these investments can become significant, leading some landlords to sell their buy to let properties and pursue other opportunities.
In such situations, you, as the tenant, might be given the opportunity to purchase the property directly from the landlord. There are numerous advantages to this approach, as it allows for a more straightforward and private transaction, compared to selling through estate agents in the open market.
Opting to sell to the tenant directly can result in significant cost savings for the landlord. Instead of paying hefty estate agency fees, the landlord can avoid these expenses altogether through a more straightforward transaction with the tenant.
Listing the home on the open market would require potential buyers to schedule viewings, which could be challenging if the property is still occupied by a tenant. Selling directly to the tenant eliminates this inconvenience, making the process smoother and more efficient for both parties involved.
When selling directly to the tenant, there is no need for additional work on the property. This means no expenses for cleaning, repairs, or repainting, as the tenant is already familiar with and fond of the property’s current condition.
Unlike potential buyers who haven’t seen the place before, the tenant has personalised and adapted it to their preferences, making it a hassle-free and attractive option for them to buy.
When putting the home on the open market and asking the tenant to leave or if the tenant voluntarily decides to move out, the landlord faces the risk of losing a steady rental income.
Finding a buyer might not happen immediately, leading to potential months without rental payments. By selling to the tenant, they can continue paying rent until the sale is completed, ensuring a continuous income stream for the landlord throughout the process.
Living in your home gives you a unique advantage – you have grown to love it, becoming familiar with every aspect of it, both its strengths and weaknesses. This eliminates any surprises, as you are already aware of all the positive features and any potential flaws.
Purchasing the home you are already living in gives you the freedom to make the changes you’ve always wanted.
Whether it’s removing a feature and installing a new one or getting creative with paint, you have the autonomy to personalise your home without needing to consult a landlord. It becomes truly yours to customise as you please!
As there is a possibility of saving your landlord money by purchasing the property, it often leads to them offering you a more discounted price compared to what you might find on the open market.
Based on our experience, this scenario is quite common, presenting an excellent opportunity for you to secure the property at a more favourable price.
A property chain can be a frustrating experience for both home buyers and home movers in Nottingham. It involves a sequence of buyers and sellers waiting for each other to complete their transactions. This waiting game can lead to stressful situations and delays in property sales.
Sitting tenant purchases offer a significant advantage – they eliminate the burden of a property chain. Since you already live in the property you wish to buy, you can avoid the complexities of coordinating multiple transactions.
Your main focus will be on meeting mortgage lender criteria, making the process smoother and less stressful.
Mortgage Protection Insurance is a term used to encompass various types of cover designed to protect borrowers from events which could severely impact their ability to maintain mortgage payments.
There are different variations but when connected to a mortgage they are all there to provide peace of mind and usually fall into the following categories:
As a rule, if the policyholder dies within the term, then the sum assured should be enough to pay off the outstanding mortgage balance and ensure the borrower’s dependents aren’t left with a debt they might not otherwise be able to manage.
Our Mortgage Advisors in Nottingham can run through all the different types of life cover and recommend the most suitable plan for you.
Critical Illness Insurance works in a similar way to Life Insurance, in that it is usually taken for a specific term of years and can have different options such as level/increasing etc. It is designed to pay out a lump sum and, like Life cover, for borrowers, it is typically taken on a decreasing term basis in line with the reduction of your mortgage balance.
The key is that the benefit is paid if you fall victim to one of a number of specified critical illnesses and pays out whatever the long-term prognosis of that illness. The type of illnesses covered vary from company to company, that’s why this type of insurance cannot be solely price-driven and advice is recommended.
In practice many companies will offer Life and Critical Illness Critical cover as a combined policy and would usually payout on the “first event” i.e. whatever happens first – either death or a serious illness – the pay-out is made. They can also be written on a single or joint life basis
Whereas Life and Critical Illness cover pay out a lump sum, Income Protection pays out a monthly sum designed to replace your wages in the event of you being unfit to work. Unlike Critical Illness cover, there are no restrictions on the illnesses or injuries covered, the only factor being whether they make you unfit to work. There are however restrictions on how much you can cover and how quickly benefits would start to be paid.
Like Life and Critical Illness cover, these policies are underwritten based on your health and lifestyle at the time you apply. All income protection policies are written on a single life basis.
Probably the least common of the mortgage protection type policies but can often be valuable – particularly for those with young families. These plans can be taken to cover Life and/or Critical Illness and are underwritten on application in the same way as mentioned above.
However, unlike the traditional forms of policy, rather than pay out a lump sum, the cover would pay an annual or monthly income for the remainder of the term of the plan. Thus, it can replace the income of the main breadwinner for a number of years, dependent upon a particular client’s circumstances and, because of this would usually be written on a level or basis, or an index-linked basis designed to keep up with inflation.
There’s an adage that says you can never have too much insurance. Certainly, many people have one or more of the different types of policy and it would be wrong to think of Mortgage Protection Insurance as just an “either/or” choice. However, in the real world, affordability plays a massive part, so whilst it would be fantastic to cover yourself for every potential opportunity, a good advisor will sit down with you and tailor the type of cover to be the most suitable combination to your family’s priority and budget.
Please give us a call or fill out our enquiry form to speak with one of our Dedicated Protection Specialists.
Read our 325 Reviews
Nottinghammoneyman.com & Nottinghammoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Nottingham, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
Contact
Follow Us
Nottinghammoneyman.com & Nottinghammoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Nottingham, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
Speak to an Advisor – It’s Free!
7 Days a Week, 8am – 10pm