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Agreement in Principle: Frequently Asked Questions

A Brief Summary of 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.

What is an Agreement in Principle? | MoneymanTV

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

When it comes to looking at applying for a mortgage, we find that it is common for most applicants in relationships to look at making a joint mortgage application rather than making a single application for a mortgage under their sole name.

With property prices ever-increasing over the years, as well as inflation outstripping the increases in wages, we find that in most instances, a couple of first time buyers in Nottingham with two salaries are usually required in order to obtain a large enough mortgage that covers what the buyers are looking to achieve.

That being said, sometimes there are circumstances that arise which may allow for a sole name to apply for a mortgage. Sometimes this may be down to one of the applicants not wanting to have their name tied to the mortgage in question.

It may possibly be that they have had a previous credit problem, say for example a bankruptcy or a County Court Judgement, which is stopping them from getting a mortgage at the moment.

When something like this arises, so long as the spouse or partner has no financial connection to that issue, they could apply for the mortgage in their sole name.

That person should also be careful to try and avoid creating a financial association with their partner, in order to protect their credit score from any future harm.

Mortgage Application Borrowing Capacity

Another example we see from customers is where one of the partners is currently out of work, be that by choice or something else. Generally the rule of thumb is that the maximum borrowing capacity for a couple with only one employed applicant, is lower than if the working applicant applied for a mortgage in their sole name.

This is quite a common occurance amongst the mortgage world. Age can also be factored into the calculation, if you have an applicant who is maybe older, say in their 50s or so.

As an example of how this applies to your mortgage, if you are buying with a younger partner who also has a well paying job, it is entirely possible that they could have access to a higher mortgage.

Implications on Tax

There may also potentially be stamp duty or other tax implications that could lead to an applicant potentially looking to apply for the mortgage in their sole name as well.

Speak to a Dedicated Mortgage Advisor in Nottingham

There are lenders that tend to have pretty strict criteria when it comes to married mortgage applications, as it will be taken out with two interconnected applicants.

Whilst it provides them with security, should they need to chase for payments, it also brings complications if something were to go wrong, such as a divorce.

Thankfully, not all lenders will share this rather prejudicial view. Bearing all we have touched upon in mind, our experienced specialist mortgage advice team in Nottingham will be here to help you from early until late, all throughout the 7 days of the week.

We’re proud of the service we have provided thousands of home buyers and homeowners alike, so would love to help you get started with your 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 many reasons why someone may want a second or even third mortgage. For example, another mortgage could be used to expand your property portfolio or to help one of your family members to move into a property.

It may be harder to get a second mortgage compared to your first one as you now have two sets of mortgage payments to account for. You will never get your second mortgage application accepted if you cannot afford the costs that will come with a second mortgage.

Can I Have Multiple Mortgage? | MoneymanTV

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:

Second Mortgage to raise money

If you’re more than five years into your mortgage term, it’s likely that you’ve built up some equity in your home. If you have equity in your home, you can withdraw some of it and turn it into cash. This can be done in the form of a second mortgage.

It’s up to you what you do with the money that you’ve raised through the equity in your home. Whether you want to use it for another mortgage deposit or for something else it’s completely up to you.

Releasing equity within your home can be quite a difficult process. We would recommend speaking with a specialist mortgage advisor in Nottingham like us. Our advisors can access competitive second mortgage deals and options through our large panel of lenders.

Second Mortgage to rent out a new property (Buy to Let)

Whether you’re an experienced landlord with current buy to let properties or an aspiring buyer who’s thinking of delving into the depths of the buy to let industry, you’re going to need more than one mortgage. Buy to let landlords with large portfolios will be used to the process of getting more than one mortgage, but if you are just starting off or own a couple, sometimes it can still be best to get buy to let help.

Second mortgages in the form of buy to let work similarly to your current mortgage. You still have to qualify for the mortgage, put down a deposit (usually 15%-25% of the property) and show that you can afford two sets of mortgage payments.

Of course, your mortgage payments should 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 buy to let mortgage advice in Nottingham, feel free to get in touch with our buy to let advisors today.

Second Mortgage to rent out existing home to purchase a new one (Let to Buy)

Otherwise known as a let to buy mortgage, there’s an option to get a second mortgage on a newly purchased home so that you can rent out your current one and live in your new property.

This works in a similar way to buy to let, it’s just the other way around. You’re planning on finding a tenant for your current property so that you can move out. Usually, landlords will build their portfolio this way when they want to move into a bigger home themselves.

Our buy to let mortgage advisors in Nottingham also specialise with let to buy mortgages, so get in touch if you need help with your let to buy second mortgage application.

Second Mortgage to purchase a home for your children/family members

If your children/family members are struggling to get themselves onto the property ladder, you can take out a second mortgage in your name and let them move into the property. If you want to go down this route, it’s likely that you end up with a guarantor mortgage.

Another popular option is to gift a deposit. Gifted deposits can be a great way to help get your close ones onto the property ladder when they are struggling.

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

In some situations, you can be listed on two mortgages. Sometimes it’s unintended, sometimes it was planned.

However, as a mortgage broker in Nottingham, the most common reason we see for people being listed on two mortgages is because of a recent divorce and separation. Unfortunately, it can be hard to remove your own or your ex-partner’s name from a mortgage because both parties have to agree that it’s okay to do so and prove that they will be financially able to afford a mortgage on their own.

If you are trying to get a second mortgage because of the same or similar situation, it may be slightly harder but not impossible. Some lenders will consider your current personal situation and give you a bit of leeway.

If you’re named on an existing mortgage in a home that you’re not living in, it may be best to try and get yourself removed if you can. Being financially linked to someone can sometimes bring your overall credit score down, especially if the other party has bad credit.

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

What Is A Fixed-Rate Mortgage? | MoneymanTV

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

What Is A Tracker Mortgage? | MoneymanTV

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

What Is A Repayment Mortgage? | MoneymanTV

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

What Is A Interest Only Mortgage? | MoneymanTV

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

What Is An Offset Mortgage? | MoneymanTV

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

What Is A Capped Rate Mortgage? | MoneymanTV

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

What Is A Flexible Mortgage? | MoneymanTV

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.

What are the 7 best places to live in Nottingham?

The best areas to live in Nottingham

When you are a First Time Buyer in Nottingham and have no idea where you want to live, the process can become very stressful and it can be hard to get the ball rolling.

If you are struggling to decide where you want to live in Nottingham, here’s a list of our top 7 best places to live in Nottingham.

1 – Arnold

Arnold is a historic and community-driven town and one of the largest towns in the county of Nottinghamshire. You may be familiar with some of the history surrounding Arnold, with it being the birthplace of the Home Brewery Company Ltd, as well as the 1811 Luddite Riots. Generally considered to quite a safe and friendly place to live, it has also been the home base of Nottinghamshire Police for over 40 years. 

Arnold has a town market ran by locals, a leisure centre that contains a swimming pool and a theatre, as well as a now refurbished library, great for shopping, spending time with the family and exploring literature. Other notable attractions include St. Mary’s Church, Arnot Hill Park and Bestwood Country Park. 

For a quiet, safe area with lots to do and fantastic history, you might find Arnold to have the home you’ve been looking for.

2 – Beeston

Beeston is a large town located southwest of the Nottingham City Centre. Due to the volume of housing available, it’s become hugely popular amongst First Time Buyers in Nottingham. The average price for a home in Beeston ranges from low to high, however, in most cases, you’ll find most prices affordable. 

Beeston is the closest town to the University of Nottingham, so as you can guess, lots of students live in the area. This has made Beeston become a bit of a hotspot for restaurants, bars and pubs – perfect for a social life. The lively atmosphere that surrounds Beeston is perfect for any families or social outgoers. 

Beeston is great; in fact, it has been named one of the best places to live in Nottingham. Even if you are feeling adventurous and fancy exploring, you’ll find woodland walks, parks and lake views in each and every corner of this wonderful town. 

There is something for everyone in Beeston!

3 – Mapperley

If you love an area that has places to go shopping, a variety of pubs and cafés to meet friends for lunch, you’ll love Mapperley. There’s a lot to this residential area in the north-east of Nottingham, only a 15-minute walk from the city centre itself. 

With private and state education opportunities for children, nearby medical facilities and popular day-out destinations only a short drive away, such as Sherwood Forest, Rufford Abbey Park and Clumber Park, Mapperley could be a great place to raise a family. 

Mapperley is considered a conservation area, meaning the nature around the area will be relatively undisturbed. This provides an opportunity for a potential home surrounded by trees and greenery, giving it a parkland feel. Property prices vary, though tend to fall within the realm of affordability for the average home buyer. 

If this sounds appealing to you, definitely get looking at Mapperley properties sooner rather than later, as this location is sure to have people chomping at the bit to find a place around there to call home. 

4 – The Park

The Park is a private residential estate in Nottingham and the estate is home to large, expensive properties. In some cases, you’ll find some ranging even higher up to £800,000! 

Best known for its Victorian architecture, The Park has a peaceful, British feel. Many of the houses in the area have been around for centuries, some ageing back to the 1840s. If you have the money, The Park could be the ideal area for you. 

You are even a 15-minute walk away from the Nottingham City Centre, allowing you to get a feel of the city life. Furthermore, you are also within 5-minute walking distance of Nottingham Castle; this will surely give you a taste of Nottingham’s history. 

For information on The Park and to see if we can help you start your Moving Home journey there, get in touch with our brilliant team today. 

5 – Ruddington

Situated only 4 miles from Nottingham itself, Ruddington is a small village in the borough of Rushcliffe, twinned with Grenay in France. 

Like a lot of the areas in Nottinghamshire, it’s community feel cannot be understated. Residents have banded together on various occasions to keep the identity of the village they love dearly, from being subsumed into the surrounding areas. 

In Ruddington, you’ll find a variety of local amenities only furthering this community feel, with many different shops, schools, pubs, community centres, a village hall and a few churches. There are even weekly parkrun’s and fun runs to take part in, encouraging fitness, local spirit and raising money for charity! 

The history of the area dates back to ca. 1500 BC and its name translates from Old English to “The Estate of the People of Rudda”. It has a notable association with the knitting industry, with an 1851 census showing that almost half of the areas households having someone from Ruddington in that line of work. Today you can find the Ruddington Framework Knitters Museum in the very place where many knitters and their families lived. 

For a nice and quiet location, with countryside walks or runs (we recommend Rushcliffe Country Park!), a strong community feel and only a short distance to travel to Nottingham from, Ruddington could give you exactly what you need from a home. 

6 – West Bridgford

West Bridgford has so much to offer its residents with an ideal central location, a vast array of shops, bars and restaurants on Central Avenue. It’s also home to some of the region’s sports clubs: Nottingham Forest, who play at the City Ground Stadium and Nottinghamshire County Cricket Club who call the iconic Trent Bridge home. 

Many families choose to move to the area for the great selection of reputable schools. There are numerous schools within the area that teach from nursery stage up to comprehensive/sixth form level – both West Bridgford School and Rushcliffe School stand out as popular choices with parents.  

There is a vast selection of natural areas to explore, one of these being West Bridgford Park, which holds many annual events. You can take in the sights and sounds of the canal or, in a short car journey, visit Wollaton Park or Holme Pierrepont. 

West Bridgford is closer to the City Centre and Nottingham Train Station than you think. Jump in the car, take an Uber, a taxi or even hop on the bus and you will be over the Trent and in Nottingham in less than 10 minutes. If you’re interested in hearing more about properties available in West Bridgford, please give Nottinghammoneyman a call and speak with one of our dedicated Mortgage Advisors in Nottingham today. 

7 – Woodborough

Woodborough is a long and winding village in the county of Nottinghamshire. This small and niche village is ideal for those who prefer a quiet lifestyle.  

The building is a mixed blend with the old such as the two new estates and residences grounds with the modern era. The twentieth century does not seem to have changed the face of Woodborough over time. Throughout this area, you’ll find a Post Office and Newsagents, with some classy barn conversions and farmlands dotted around. 

We know that being surrounded by city noise is not always everyone’s cup of tea, so if you like your quiet locations, Woodborough could be for you.

First Time Buyer Mortgage Advice in Nottingham

We hope that this list has helped you a little when it comes to making the decision of where you are going to live in Nottingham. It can be tough Moving Home, especially when you have no experience in doing so.

For help with your Moving Home journey or First Time Buyer Mortgage Advice in Nottingham, make sure to get in touch with us. We are a Mortgage Broker in Nottingham and can help you through the whole Moving Home process.

We have helped thousands of home movers achieve their keys to their dream home, you could be next!


How to Improve Your Credit Score in Nottingham

Credit Score Mortgage Advice in Nottingham

What is a credit score? A credit score is a number that ranges between 300-800 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, it’s likely that a lender will 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 dipping 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.

Way to improve your credit score | moneymanTV

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 lenders 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.

Mortgage Advice in Nottingham

Nottinghammoneyman.com & Nottinghammoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
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© 2021 Nottinghammoneyman

Nottinghammoneyman, Gothic House, Barker Gate, Lace Market, Nottingham, NG1 1JU.

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