What is a Cashback Mortgage?

Cashback Mortgage Advice in Nottingham

With a plethora of mortgage types available to home buyers, a First Time Buyer in Nottingham may feel a little overwhelmed when it comes to choosing the right one for them.

Each mortgage types have its own unique purpose each with its own advantages and disadvantages. This is where an experienced Mortgage Advisor in Nottingham can help you with finding the perfect match.

This article will take a look at how Cashback Mortgages work along with the benefits it can have to borrowers and how they compare to other options.

You can also watch our Moneyman TV YouTube video about this topic. This channel features answers to popular mortgage questions, up-to-date news about the mortgage market as well as different cases Malcolm has encountered first-hand.

If you want to keep up with all things mortgage, give us a like and subscribe for more! Feel free to comment with any questions you may have as Malcolm will happily answer these and possibly post a video on this.

Cashback mortgages explained

What is a cashback mortgage?

Cashback mortgages are an option in which you will usually get some cash back at the end of your mortgage term. This sum is usually based on a percentage of what you borrowed and is around 1 or 2%.

When it comes to a cashback mortgage, your lender might specify a fixed price within the mortgage contract. Therefore, whether you are taking a mortgage over a long period of time, the amount will not change or increase over time.

Will a cashback mortgage benefit me?

Below are just some benefits to home buyers:

• Cashbach mortgages will come with additional benefits, like a free property valuation. Whatever the perks are, this could be very helpful with saving mone that you didn’t think of saving.
  
• Through our experience as a Mortgage Broker in Nottingham, cashback mortgage could be very popular amongst customers looking to have a lower end mortgage. You get your money back and the benefits, all while paying for a low-end mortgage.

As an open and honest Mortgage Broker in Nottingham, we would suggest that if the lenders offers you a reasonable percentage on your cashback mortgage, you may wish to consider taking this up because of how beneficial it would be in the future. Sometimes, people decide not to choose a cashback mortgage because the interest rates are usually a little higher.

Different types of mortgage in Nottingham

As mentioned, there are many mortgage options available, with cashback mortgages not being as popular compared to others. Regardless of this, our team do receive enquiries about them, as well as being a good backup choice if your first mortgage deal doesn’t quite work out.

For more information regarding the different mortgage types and your options may be, it could be helpful to contact an expert Specialist Mortgage Advisor in Nottingham. Whatever your circumstances, we will work hard to help you achieve your mortgage goals. We are always up for a challenge!

How Do I Remove a Person From a Mortgage in Nottingham?

Specialist Mortgage Advice Nottingham

Removing a name from a mortgage

Removing a name from a mortgage is not as easy as it sounds. Common circumstances for this include break-up, marital or otherwise, leaving joint ownership. Occasionally, you may find that you would rather have the mortgage in just one name. Either way, the process is complex.

Here at Nottinghammoneyman, we have expert Mortgage Advisors in Nottingham who are here to help you out. Through their years of experience within the mortgage world, they have helped many people through a financial separation.

Why would you want to remove a name from a mortgage?

Divorce & Separation

As mentioned, the most common reason as to why someone would want to remove a name from a mortgage would be if they are separating from someone who is on the mortgage. Usually, a breakup can create many emotions making things like finances less of a priority. However, we do suggest you put financial commitments at the forefront of your mind.

We do stress this to many customers in this situation because leaving it until late could build up a large amount of unnecessary stress that could have been avoided. Put yourself in the perspective of the companies you are financially tied to, they will need time to process everything on their end which is why providing them enough time and being patient is key.

In terms of your mortgage lender, they want to ensure that both parties have the ability to afford a comfortable life with a single income to draw from. Therefore, having only one person on the property does mean they will need to keep up with your monthly mortgage repayments as one individual.

Each party in the mortgage will need to come to an agreement to take off a name from the mortgage. With this in mind, if one party disagrees, you will need to pursue court proceedings. This can be a costly process that takes some time and create unnecessary negativity.

Seeking Specialist Mortgage Advice in Nottingham is beneficial for those experiencing a difficult divorce or separation as they can manage the mortgage side of your situation.

Transferring to a Family Member or Friend

Different to the process of removing a name from a mortgage, transferring to a family or friend is a lot more simple than you would expect. In particular, with a Mortgage Broker in Nottingham. If you are interested in the benefit of this, check out our article on ‘buying a property with a partner or friend‘.

The process will involve the homeowner transferring equity to whomever they wish, whether it’s a family member or a friend. Simply, the mortgage will get transferred with the equity inside of the home. Like with many mortgage situations, the new owner of the home will need to pass the lender’s eligibility and affordability checks.

A Party is Not Paying Their Share

In the event that a member of the party isn’t keeping up with their end of the deal, this can effect you financially too. This a situation we have seen many times when providing open and honest Mortgage Advice in Nottingham. Normally, this happens when some of the parties have fallen out.

You may be affected is one person misses their bills. This is why it’s important that you have full trust in the other party sharing the mortgage with you so that they can keep up their payments. Your credit score can be negatively affected on your credit score as well.

In the unusual case where this happens to you, it’s important that you contact your lender. Another option which can be helpful is having a conversation with a Mortgage Advisor in Nottingham who can help you with a solution before the problem becomes a bigger issue.

How easy is it to remove a name from a mortgage?

Look at your situation from the lender’s point of view. As much as you can afford to keep up your monthly payments and have a good financial reputation, the lender still needs to have their full trust in your one income instead of two (or more if it’s a joint mortgage) that they had originally.

A mortgage lender would prefer both on the mortgage if it is possible in order to improve the security of their finances. By doing this, they have a financial net if mortgage arrears or repossession occurs because they would be able to chase two parties for payments. Along with this, their chances of being paid are reduced if there is only one party.

Affordability plays a big role in affordability. Whether you are wanting the home to be in your name, without your ex-partner or housemate, you will need to go undergo all the criteria checks that you would have initially to show you are capable of affording the monthly repayments on your own.

You might that it’s not possible for your circumstance as it all comes down to the lender. This is where Mortgage Advice in Nottingham can be helpful to you.

After speaking to an advisor, you may come to the conclusion that it is more appropriate to switch mortgage lenders for a better deal in your sole name, which can potentially help with any ongoing problems.

We provide a tailored service that includes Specialist Mortgage Advice in Nottingham with the aim to take off some stress from the process. Our team are available 7 days a week to help you with any of your mortgage needs.

Trusted Mortgage Advice in Nottingham

Agreement in Principle FAQs

What is an agreement in principle?

In order for customers to qualify for a mortgage, they will need to obtain an Agreement in Principle from the mortgage lender. The point of this is much as the name suggests; the lender will agree, in principle, to let you take out a mortgage with them.

This is done prior to the final checks and whilst it is not a guarantee that you will definitely get a mortgage, it is a good indicator that you are on the right track.

You may see this being called a Mortgage in Principle, a Decision in Principle, as well as the abbreviations AIP and DIP. Though it may seem confusing at first with all those names, they are all the same thing.

Once you have obtained your Agreement in Principle, you will be raring and ready to go, fully prepared to support any offers you make on a property as a First Time Buyer in Nottingham.

In having this to hand, you may also even open yourself up to the possibility of negotiating with the seller on a lower price. The reason for this, is because it demonstrates to the seller of the property you are looking to buy, that you are a serious buyer and do in fact have the funds to proceed.

Frequently Asked Agreement in Principle Questions:

Will obtaining an agreement in principle affect credit score? 

We regularly find that more and more lenders are choosing to go with soft searches over hard searches. Generally speaking, a soft search will leave your credit score unaffected, as they tend not to leave a footprint.

Hard searches do leave a footprint, so having too many done can cause more harm than good, especially if you don’t pass each time. That’s not to say a soft search will never affect you, but it is not something that tends to happen often.

Soft searches don’t go quite as in-depth as hard searches, though you can rest assured that no matter which one the lender chooses to go with, they have their reasons and will choose the right one either way.

Should I avoid hard credit checks? 

If you are not having hard searches done on a regular basis, then having one done shouldn’t really make too much difference. When it starts to become a problem is if you start having a lot of different hard searches taken out on you within a short amount of time.

It’s important to keep in mind though that if you are well aware that you do have a good credit rating, you should not feel put off by the idea of getting one done, especially if a hard search with that mortgage lender is going to be the best option for you.

Is an Agreement in Principle a guarantee that I will get the mortgage? 

Though we would like to say yes and fill you with hope, unfortunately even with an Agreement in Principle to hand, we cannot guarantee mortgage success.

The mortgage lender still needs to see all your documents and only after they have done that will an underwriter be able to make their final decision.

We tend to find that customers contact us after being declined at the point of application, as they have missed a lot of the small print that is mentioned in their Agreement in Principle.

You will need to provide your mortgage lender with proof of ID, the last 3 months payslips and bank statements to show how you handle your money, all before a lender will offer your case.

The required documentation is slightly different for Self-Employed Mortgage applicants.

Can I make an offer without an Agreement in Principle? 

Technically yes, you can make an offer without an Agreement in Principle to hand, though we personally believe you would be much better off having one with you.

Any credible estate agent will ask you for one of these before they do business with you, as they will want to know that you can go ahead with the mortgage process.

How long does it take to get an Agreement in Principle? 

One of our dedicated mortgage advisors in Nottingham can typically obtain an Agreement in Principle within 24 hours of your initial appointment.

How long does an Agreement in Principle last for?

An Agreement in Principle will usually expire after somewhere between the 30-90 days mark. That being said, please be aware that you don’t just have to jump at the first house you see. Take time and take care when looking for a home.

If your Agreement in Principle expires, there are no worries. We can quite easily get you a new one once you are ready to make an offer on a property that is right for you.

Finding your dream home only to be declined by a lender can be both frustrating and disappointing. To counteract this feeling, we recommend getting an Agreement in Principle as early as possible, to ensure you are readily prepared for the process.

Agreement in Principle Mortgage Advice in Nottingham

To learn more about what an Agreement in Principle is and how they can help, take a look at our YouTube video below.

8 Factors to Help you Decide Where to Live in Nottingham

First Time Buyer Mortgage Advice in Nottingham

There are a lot of different things that potential home buyers in Nottingham must take into consideration, whether their journey will be as a first time buyer in Nottingham or you’re moving home in Nottingham.

The sort of things you’ll have to bear in mind will include your personal finances, any mortgage arrangements and the finding the best deal you possibly can for your personal and financial situation (this is something we can help with).

Before all that though, before even deciding on the house you wish to buy, you have to know where it is you want to live. What do you want nearby, what’s important, do you like thriving scenes or quiet settings?

Below we have collated a list of the various factors you’ll need to consider when you start looking for your new home.

Things to Consider When Moving Home in Nottingham

1. Where to Live: City Centre or a Rural Location

First of all you need to decide what type of setting you wish to call home.

Maybe you prefer the hustle and bustle of the big city and are looking to live closer to the centre? Maybe you prefer the quiet life and wish to live on the outskirts, perhaps near some countryside?

You will need to carefully consider your choice here, as determining this will have an impact on any potential commutes to work, the choice of local amenities, shops and schools.

2. Transport

Although we see more and more people in the UK working from home, for a vast majority of homeowners, you’re going to have to factor in the way you will be getting to work.

It’s not just work of course, you’ll also have to factor in local convenience accessibility, such as how easy it will be to get to the local shops or any other businesses/services you require the use of.

Will you be able to walk where you need to go, or do you need to drive? If you do, will you need to access any motorways to get there?

Beyond that, what if you don’t drive? Are there are buses, coaches, taxi companies or train stations nearby? Depending on location, these options may be limited greatly, especially if you’re looking to buy in the middle of nowhere.

3. Education

If you happen to have children, it is generally considered important to factor in what schools are in the area and the quality of those schools.

By taking a look at school league tables online, you will be able to judge for yourself what the best options for your children may be and plan accordingly.

There are some great schools across Nottingham for kids to get a good education, as well as options for further education beyond that.

Check the catchment areas too, as the area you’ve been looking at may not fall into the catchment area for a particular school that you may have wanted for your children.

4. Local Amenities

Depending on the type of lifestyle you lead, the sorts of things you will be looking for in an area may differ. Some people may have the preference of having nearby shops to visit.

Others may not be so fussed about that (especially now that home deliveries of your weekly food shop exist!) but may want to be close to a gym or a local pub.

Some that have children or pets may prefer to live close to parks or open spaces. We highly suggest that you make a shortlist of the things you need and what you would like to prioritise nearby.

When you find a house you are interested in, you can then take a look at your compiled list and see how much of it you are able to tick off.

5. Family & Friends

This is a personal choice and will be dependant on your circumstances. Some people will rely on family support, often when it comes to children. You may need family nearby for childcare or school runs.

Having a social life is also usually a crucial part of people’s lives. Do you want your friends to be as close as possible? Would you prefer to have some distance between them so you can visit sporadically?

6. Value For Money

Your choice of home location will also determine how far your money is going to go. Depending on location, you may have a different option of houses to choose from.

For example, some areas may allow you to find a 4 bedroom house for the price of a 2 bedroom flat in another area.

You may have to compromise on some of the things you previously listed as wanting nearby, in order to find an affordable property near the area you were set on.

7. Where to Live – Local Community

Some of us would prefer to be a part of and contribute to a local community.

With this in mind, you may possibly wish to surround yourself in a local area that is involved in arts, crafts, book fares and local events at the community hall or town/village green.

Take the time to look and see what activities occur in the local area. For best results see if there are any local or even town websites.

Maybe even visit the area beforehand and get to know some of the locals. They will likely be able to inform you on current events and what is available nearby.

8. House Prices – Long Term

The chances are your new home is a long term investment and you’ll be wanting to see house prices increase, in the event you ever do decide you want to look at moving home in Nottingham.

In order to be more informed about this you could look to see if the local area has any investment plans, new road links, planned development projects, shops, sports facilities or if there are any companies looking to call it home base.

All of these can have an affect on the future of your new homes value, so if this is something that is important to you, you should definitely make sure that you do plenty of research ahead of time.

Can I Port my Mortgage to a new Property in Nottingham?

Porting Mortgage Advice in Nottingham

You will find that a large portion of high street mortgages that are on the market are portable. To put it simply, a portable mortgage is where you can move from one property to another without the need to pay a penalty fee. If you are looking to move to a new house and are currently in the middle of a fixed rate deal, a portable mortgage could be beneficial as you potentially could be able to avoid an early repayment charge.

Are all mortgages portable?

Not all mortgages are portable and being with a specialist lender might not provide you with the option to port your mortgage to another property. To determine whether or not this is a possible option for you, get in contact with your lender and ask them.

Should I port my mortgage?

Some people may not proceed with the option of porting their mortgage even if they have had the option to. The reasoning behind why customers might not want to port can be down to a number of factors. Sometimes, customers don’t port because lenders aren’t lending additional funds that a person needs to move or that the additional funds will be at a different rate to the one you have on your existing deal. Overlooking the repayment charge and swapping to a different lender altogether might be something you decide to do if it fits well with the new deal you are offered. 

What is a sub-account?

This is an account that will be created onto your mortgage when you decide to port it and the additional funds will end up being on a deal that is different from the original one. This means there will be two different rates of interest that are applied even though you have one mortgage and one direct debit.

One factor that may become a nuisance for you in the future with your sub accounts is that different products could overlap. This means you may need to get them aligned back at some point which will involve one of the sub accounts having to go onto the lenders’ variable rate for a period of time.

Buy to Let Mortgage Advice in Nottingham

Get in touch with a buy to let and moving home mortgage advisor in Nottingham like ourselves if you are looking for an expert opinion. With our experience of dealing with thousands of applicants in this situation, we may have a good idea of how to help customers with their mortgage needs.

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.

Can I Buy a Home in Nottingham With a Small Deposit?

So, you’ve got a 5% deposit and are in the position to start making property offers, however, as you progress further through the process, you are finding that you may need a bigger deposit.

There could be lots of different reasons why you’re being asked for more deposit, it could be down to anything, e.g., sellers’ preference, buyer competition or your credit history/file.

Here we look at how you can use government schemes to help you make an offer with a small deposit as well as looking at simple things that you can do too.

Utilising government schemes

There are many government schemes readily available on the market. These schemes come under an umbrella named ‘Own Your Home’ and can be utilised to help you move home in Nottingham.

These schemes could give you the extra boost that you need to get yourself onto the property ladder.

Help to Buy Equity Loan

This scheme helps you increase your total deposit size, making up a total of 25%. This can heavily increase your chances of your offer being accepted.

When you take out a Help to Buy mortgage, you’ll have to supply a minimum of a 5% deposit, and your deposit will be topped up by the government to make a total of 25%. This ‘extra deposit’ that they give you is the ‘Equity Loan’. The Equity Loan is a loan and not a gift, therefore it will need paying back eventually.

The loan will be interest-free for the first five years, then afterwards, if there’s still a balance due, the remaining will start gaining interest starting at 1.75%.

You should know that this scheme can only be used on new-build properties and can only be accessed by first time buyers. Therefore, if you’re a first time buyer in Nottingham, we would recommend looking into the Help to Buy Equity Loan as it could give you that extra helping hand that you need!

Shared Ownership

The Shared Ownership scheme allows you to take out a mortgage based on a percentage share of a property (usually anywhere between 25%-75%) and then pay the rest back through rent.

As you are only taking out a mortgage on part of the property, your overall deposit required should be lower. Once you are settled in or perhaps in a better financial situation, you could even increase your share further if you want to. This is why this scheme can be such as good way to get you onto the property ladder.

The Shared Ownership scheme can get a little complicated in some places. This is why we’d recommend consulting with a mortgage advisor in Nottingham like us before getting started on your own.

Lifetime ISA

A Lifetime independent savings account should be an ‘early on in the process’ thought. You should set one up once you’re thinking of moving or buying your first home in Nottingham.

The longer a Lifetime ISA has been set up, the more beneficial it will be; this is because it’s just a savings account. Your money will grow year on year; however, this is not due to interest, the government will top up whatever you save by an extra 25%. You can deposit as much as you’d like each month, as long as it doesn’t go over a total of more than £4,000 over the year. You can only save a maximum of £4,000 each year.

So after every year, you will gain 25% extra. If you manage to reach the maximum, you will have an extra £1,000 deposited into your independent savings account. The money that you’ve saved can be used for one of two things: to buy your first home or for savings for later in life.

If you set up a Lifetime ISA as soon as you starting thinking about moving home in Nottingham, you may only be required to put down a small deposit as the lifetime ISA will end up covering the majority of it!

Right to Buy

Do you currently live inside a council house and are planning to make an offer on the property? If this is your situation, then you may only need to put down a smaller deposit, or in some cases not one at all.

You’ll discover that quite a lot of lenders will offer a right to buy discount. This discount is worked out by the government, they use factors such as how long you’ve been living within the property.

95% mortgage guarantee scheme

The 95% mortgage guarantee scheme was brought in off the back of the coronavirus pandemic during 2021. It gives struggling buyers the chance to purchase a property with just a 5% deposit.

Getting a mortgage application accepted is never guaranteed, however, through the use of this scheme, your chances could be significantly increased. Remember, during the whole process, you’ll still be required to pass credit checks, affordability assessments etc.

Alternative to using government schemes

Besides using government schemes, there are over ways to get a mortgage with a small deposit.

Have an agreement in principle at the ready

To show your readiness to proceed through the mortgage process right away, you should get an agreement in principle (AIP) (also known as a decision in principle (DIP)). An AIP could be the thing that you need to boost your chances of getting a mortgage with a smaller deposit.

Having an AIP in place indicates that a lender is willing to lend you. Remember, this is only in principle of you being able to provide sufficient documentation to prove your mortgage affordability. When making an offer on a property with an AIP in place, you are potentially putting yourself in front of other’s who don’t have one.

You could say that in this scenario, it doesn’t really matter about the deposit, however, if you have a minimum of a small 5% deposit, having an AIP could give you that extra chance that you need. Having an AIP in place could be the difference between the seller choosing you over someone else. Choosing an applicant with an AIP over one who hasn’t got one can only speed up their process too!

Keep saving!

An alternative would be to continue saving. Perhaps, you could postpone your home buying journey for just a little longer; this could maybe push up your total mortgage deposit.

Your ‘small’ deposit could become a much bigger deposit if you put your moving home in Nottingham journey on hold. Also, it could allow better rates and products to make their way onto the market.

We’ve even seen customers that are struggling to find a home that they’re interested in enough to make an offer on, but by waiting a little longer, they ended up finding their dream home!

Remember that the minimum 5% deposit will change depending on the property’s price. If you’re thinking of buying a larger home, you’ll likely need a bigger deposit anyway.

Taking out a loan to cover your deposit

This situation is extremely specialist and not all lenders will not allow it. As a mortgage broker in Nottingham, we rarely see it happen, but when we do it’s always on strict terms.

In some situations, you can take out a loan to cover your deposit. This will likely affect your ability to get accepted as you are essentially borrowing 100% of a mortgage.

This means that you’ll have to pay two sets of monthly payments; your loan and your mortgage. You’ll be questioned on your affordability from the off front as they can’t risk lending to someone who has the potential to fall into arrears.

Remember that this is a specialist topic. As a mortgage broker in Nottingham, we would recommend that you speak to a mortgage advisor in Nottingham and contact us first. In all cases, taking out any sort of loan during the months leading up to your mortgage application is not recommend unless you’re certain that you can pay it off.

How a Mortgage Broker in Nottingham can take away the stress of Moving Home

There’s an expectation amongst home movers that the moving home process is going to be stressful and hard to get through. This shouldn’t be the case as it’s quite the opposite!

As a mortgage broker in Nottingham, we will make moving home stress-free. We’ll take care of the mortgage side of the process, helping you find an excellent product whilst you search for your dream home.

No matter which stage of the process that you’re up to; it could be that you’re thinking of moving home in Nottingham, still taking up property viewings or are ready to make an offer; we are able to help you.

Why a Mortgage Broker in Nottingham?

Making the moving home process stress-free is what we do best, it’s our job. Here’s what we do best:

Taking care of the ‘stressful’ parts of the process

We’ll search through 1000s of mortgage deals on your behalf. You won’t have to do the shopping around through countless products trying to find one that matches your financial situation and property… that’s our job now!

To progress through the process, we’ll need some evidential documents to support your application, e.g. payslips, identification, etc., Once we have them, we can begin searching for the perfect product for you. If we find one that matches your personal and financial situation which you want to continue with, the next step is to submit your mortgage application.

Fast and friendly process

Having worked in the mortgage industry for over 20 years, we have come across almost every mortgage scenario. We know exactly what we are doing. If you’re at the stage of the process where you’re ready to make an offer, if you need a speedy mortgage process, get in touch with our team.

Your mortgage advisor in Nottingham will try to obtain a quick but competitive mortgage product. Once you get in touch, we’ll book you in for your free mortgage consultation with your dedicated mortgage advisor in Nottingham.

Part of our process involves obtaining an agreement in principle (AIP) for you within 24-hours of your application. We do this so that you can a potential advantage over other home buyers who don’t have one in place. An AIP shows the seller that a lender is willing to lend to you, hence increasing your reliability.

Or an easy-going process

If you’re first time buyer in Nottingham or moving home in Nottingham, you may want to slow down your mortgage journey, and there is nothing wrong with that.

Your mortgage advisor can slow things down for you. Don’t hesitate to ask lots of questions and take your time during your moving home journey. Our team will be open and honest with you during every step of the process; you’ll know what’s going on at all times.

Speak when it suits you

We operate during out of office hours so that you contact us at when the time suits you.

Workaround your working schedule. Whether you’re calling in the morning or late at night, our team will be available. These hours don’t just apply to our customer care team, your mortgage advisor in Nottingham will be able to book an appointment during the same times.

Little things like this can still help take away the stress from the moving home process. If you can contact a mortgage advisor in Nottingham at a time that is best for you, it will mean that you can talk at a time best for you.

Mortgage Advice in Nottingham

For a stress-free moving home process, get in touch with our amazing mortgage team in Nottingham. We will take care of you from start to finish and handle all of the stressful parts that come with moving home!

Remember, as a mortgage broker in Nottingham, we aim to take the stress away from moving home. We do this through numerous ways to ensure that you feel at ease and relaxed from enquiry to getting your keys.

Take advantage of our free moving home mortgage consultation today.

Can I Have Two Mortgages in Nottingham?

Second Mortgage Advice in Nottingham

There are a lot of reasons as to why a property owner may look to take out a second or even a third mortgage. Some examples of these include using an additional mortgage to expand your property portfolio or to help one of your family members to move into a home.

You may find it more difficult to obtain a second mortgage, compared to when you took out your first one, as you will now have two lots of mortgage payments to factor in. If you cannot afford the costs of both, you will likely not be accepted for a second mortgage.

Why would I want a second mortgage?

As a mortgage broker in Nottingham, we’ve seen people apply for a second mortgage for lots of reasons:

• Raise money.
• Purchase a new home to rent it out (Buy to Let).
• Rent out your existing home to purchase a new one (Let to Buy).
• Purchase a home for your children/family member.
• Named on an existing mortgage and want to purchase a new home?

Second Mortgage to Raise Money

If you are a good couple of years into your mortgage term, you have most likely built up a portion of equity within your home. Rather than a remortgage, some may look to take out a second smaller mortgage of sorts, to release some of that equity.

This type of mortgage process is known as a further advance. A further advance gives a homeowner the option to borrow more from their current mortgage lender, as a means of funding potential home improvements or the deposit for another property purchase.

It is similar in the way it functions, to a remortgage to release equity. A remortgage to release equity will allow you to switch to a better product with a new mortgage lender, releasing a portion of your equity.

A further advance is with the same mortgage lender, has its own interest rates and stands separately to your current mortgage balance. Whilst it means you will be paying two mortgage balances to the same mortgage lender, it can often be cheaper than the fees involved in a remortgage.

In order to get a further advance, you’ll have to pass an affordability check by your mortgage lender, to make sure that you are able to take out this additional mortgage. The amount you are able to borrow will depend on the equity in your property, though you likely won’t be taking it all out.

Our mortgage advisors in Nottingham will take a look at your case and help you to decide whether a remortgage to release equity or a further advance is a more suitable mortgage option for you.

Rent Out a New Property (Buy to Let)

Whether you are a landlord with a lot of experience already, with current buy to let properties to your name or an aspiring property buyer who is thinking of taking that initial leap into the buy to let industry, you’re going to need more than just one mortgage.

Buy to let landlords that have a large property portfolio will no doubt be used to the process of getting more than one mortgage by now, but if you are just starting off or own a couple, it will still most likely be beneficial for you to speak with a mortgage expert.

Having multiple mortgages on buy to let properties is still a similar process to your current mortgage(s).

You will still need to meet the criteria for the mortgage in question, put down a substantial deposit (typically at least 25% of the purchase price) and show that you are able to afford the monthly payments.

Of course, your mortgage payments will generally be covered once you find tenants to live inside the property, however, you may not find some straight away so you need to be able to manage the payments beforehand.

For expert mortgage advice in Nottingham for a buy to let mortgage in Nottingham, feel free to book yourself in for a free mortgage appointment today and we will see how we can help.

Rent Out Existing Home to Purchase a New One (Let to Buy)

Otherwise known as a let to buy mortgage, a variation of buy to let, this is an option that can allow homeowners to get a second mortgage on a newly purchased home, whilst renting out their current property, becoming landlords in the process.

With this type of process, you are planning on finding a tenant to move into your current property, so that you are able to move out. This is often a popular choice for landlords who would like to move into a bigger home, but keep a property in their portfolio.

It also happens to be commonly occurred with “accidental landlords”, people who perhaps never initially planned to become a landlord, with that plan changing as time has gone on.

Our expert buy to let mortgage advisors in Nottingham also specialise in helping customers with let to buy mortgages, so book online today and we will see how we can help with your let to buy process.

Second Mortgage to Purchase a Home For Your Children/Family Members

If your children or family members are struggling to find their footing on the property ladder, you may be able to take out a second mortgage in your name, allowing them to move into the property.

Another popular choice for some, that doesn’t require a second mortgage, is to gift a deposit. Gifted deposits can be a great way to help you to get your family onto the property ladder when they are struggling.

Named on your existing mortgage and want to buy a new home?

In various instances, whilst you may have intended to take out a second mortgage, you may also find that you are listed on two mortgages purely by circumstance.

As an open & honest mortgage broker in Nottingham, the most common reason we see for people being listed on two mortgages is because they have become divorced or separated.

Unfortunately, it can be quite difficult to remove either your own or your ex-partner’s name from a mortgage, as not only do you both have to mutually agree on who gets removed, but you also have to prove the remaining party can afford to keep up payments by themselves.

If you happen to still be listed on a mortgage with an ex-partner, it is important to try and get your name removed as quick as you can. This ensures you are less likely to be affected by the financial links to your ex, as if they miss any payments, it could bring your credit score down.

Whilst this is the recommended route, if for some reason you are unable to get your name removed from a mortgage, there may still be mortgage options available to you. Some mortgage lenders will take your personal circumstances into account.

Types of Mortgages Available in Nottingham Explained

Specialist Mortgage Advice in Nottingham

At the start of your mortgage journey, you will come to realise there are a range of different types of mortgages. From first time buyers in Nottingham to people moving house in Nottingham, this allows you find the best option that fits within your needs when living in Nottingham. In this article, we will be talking about the type of mortgages that many people go for when looking into options on their mortgage journey.

If you are looking into mortgages and wanting any more information regarding these types, our knowledgeable mortgage advisors in Nottingham are on hand 7 days a week, so please feel free to get in touch.

Mortgage types

Feel free to use the points below and jump to a different mortgages type;

• Fixed-Rate Mortgage
• Tracker Mortgage
• Repayment Mortgage
• Interest-Only
• Offset Mortgage
• Capped Rate Mortgage
• Flexible Mortgage

Fixed-Rate Mortgage

A fixed rate mortgage is when your interest rates are on a fixed agreement that is between you and the lender. This fixed payment can span over the course of a few years with many usually being over 2 to 5 years long or longer for many home buyers and owners. 
 
Many people choose this option as their mortgage payment will stay the same throughout this period, even through any economic changes such as interest and inflation, so you can be rest assured that you will have no changes with your payment. 

Tracker Mortgage

Different to a fixed rate mortgage, a tracker mortgage doesn’t have a set rate that is between you and your lender. Instead, the interest rate will change depending on the Bank of England’s base rate, so interest rates can fluctuate at any time.

For example, when repaying your mortgage, if the Bank of England base rate is 1%, and you are tracking a 1% above base rate, this means the overall rate you will pay back is 2%.

Repayment Mortgage

A repayment mortgage is seen as the most common of mortgage options. This involves you paying a combination of capital and interest each month. The property will eventually become yours as long as you have kept your payments going for the mortgage term and can pay off your mortgage balance at the end of the payment period.

This method is recognised as being the most risk free way to pay back your capital to the mortgage lender. On the start of your mortgage journey, it is interest that becomes your main payment. If you have taken out a much larger term like 25, 30 years then your balance will reduce to a slower rate.

Later on in your mortgage term, your payment methods will change to paying off more capital than interest and your balance will lower at a quicker rate.

Interest-Only Mortgage

Seen as one of the cheaper options in terms of monthly payments, an interest only mortgage is a payment method that involves you only paying the interest per month. Whilst that sounds ideal this means that the borrowed amount has to be paid back in its entirety by the end of the term.

Many buy to let mortgages are seen to be on an interest only basis, however, trying to get a residential property on an interest only basis is near unheard of these days, due to the complicated criteria that needs to be met.

There are circumstances where this may still apply, with reasons including; downsizing your property when you’re older or paying back capital through other investments.

Lenders can be very strict when offering these products and the loan to values are a lot lower they were in previous years.

Offset Mortgage

A popular mortgage option in Australia, an offset mortgage is a blend of a conventional mortgage account with a savings account that runs alongside it. This mortgage type can allow you to be flexible by paying regularly in your offset account or withdrawing funds if needed. 

This is seen as the more appealing type of mortgage as it allows you to have a savings account opened alongside your main account. An example of this is if someone took out a £100,000 mortgage but in your savings you have £25,000. You can put this into your new savings account and pay the interest on the remaining amount which would be £75,000. 
 
There is the potential option to pay off your mortgage earlier if you keep your payments up as normal. 

Capped Rate Mortgage

Similar to fixed rate mortgages, a capped rate mortgage involves the customer making repayments each month with a maximum interest rate. However, this type has a percentage that is capped which means you won’t be paying any higher than the agreed percentage, For example if you’re capped at 5%, your rate will never go above 5%. 
 
This type can be beneficial if interest rates reduce, as your mortgage rate will follow this reduction. This should reflect in lower monthly mortgage payments.   

Flexible Mortgage

This type of mortgage allows you to be flexible with your payments with having the choice to either underpay or overpay any amount. You can only underpay if you have overpaid the first time and have come to an agreement to do this with your lender.

With the potential to pay off your mortgage early, overpayments can be helpful if you want to pay your mortgage off early and pay less with interest.