Can I Remortgage in Nottingham to Pay Off Debt?

Specialist Remortgage Advice in Nottingham

When you start to approach the end of your mortgage term, you will have a range of choices to consider. The most popular option would be to remortgage; this is where you take out a new mortgage to replace your existing one, often with better terms.

Not everyone will be able to gain a better mortgage deal when remortgaging in Nottingham, however, this deal will still likely be better than your lender’s standard variable rate of interest. At the point of remortgage, some homeowners will try and release equity from their homes. This is known as remortgaging to release equity.

This equity is essentially a lump sum of cash, which can be used to fund home improvements, make repairs on their property or fund additional purchases. It is your money so you can do what you would like with it, and in some cases, you may be able to pay off your debt with this money.

Some people may also want to remortgage and incorporate some of their debt into their mortgage. This is done through debt consolidation, which is where you merge unsecured debts, such as credit cards and loans, into a single, more manageable monthly mortgage payment, thereby reducing overall outgoings.

Considering these two ways of paying off debt via your remortgage in Nottingham, it is important to know that these options may not be right for your individual situation. You should be careful of the approach that you take and consult with a professional mortgage advisor in Nottingham before making a final decision. In this article, we look at how you can remortgage to pay off your debt and the pros and cons of doing so.

How can I pay my debts by remortgaging in Nottingham?

If you have spoken to a mortgage advisor in Nottingham and have decided that a remortgage to pay off your debt is your best option, you must make sure that the route you take is the most beneficial to you.

Remortgaging to Release Equity in Nottingham

If you want to choose the option of releasing money from your home to pay off your debt, you must know that you need to have a certain amount of equity built up in your home to be able to release it. For example, you may need to have been paying off your mortgage for a set amount of time before you can take equity from your home.

The downside to releasing equity just to pay off debt is that you are extending your mortgage term and increasing the total amount that you owe. This option is only advised in certain scenarios, therefore, we would recommend speaking with an expert to see whether or not it is right for you.

Remortgaging to Consolidate Debt in Nottingham

Consolidating debt into your mortgage in Nottingham may not necessarily increase your mortgage term, however, it will increase your monthly repayments. Depending on the amount that you owe, your repayments may only increase by a little each month.

Before you are able to consolidate debt into your mortgage in Nottingham, your mortgage lender will conduct a deep analysis of the debt and where it has come from. Remember that you are trying to incorporate unsecured debt against a secured asset (your property), therefore, mortgage lenders need to be sure of where this debt has come from.

Once again, we strongly recommend getting specialist mortgage advice in Nottingham to discuss whether debt consolidation is the right way for you to go.

Pros and cons of Remortgaging in Nottingham to Pay off Debts

There are both pros and cons to remortgaging and paying off debt, let’s take a look at some of these reasons:

Pros

• Your debt becomes more manageable because you are repaying it with the money that you have built up within your property or through monthly mortgage repayments.
  
• Your unsecured debt is now registered against a secured asset.
  
• The money that you owe is not receiving an interest rate.
  
• Mortgage lenders will see that the debt has been paid off or that it is slowly being repaid.

Cons

• Your mortgage payments increase or your term extends, sometimes both!
  
• Mortgage lenders will be able to see that you struggled to pay off the debt that you owed and had to use another solution to repay it.
  
• The length of time that you have been in debt and the amount that you owe/owed will appear on your credit file.

Should remortgage to pay off my debts in Nottingham?

As your mortgage broker in Nottingham, all that we can do is recommend and give you remortgage advice in Nottingham. Whether or not you want to take our advice is up to you. It is sometimes risky to incorporate debt, despite the fact that it can make your payments more manageable.

Everyone’s situation is different and that is why we would advise that you reach out to our team of specialist mortgage advisors in Nottingham, to get an idea of your mortgage options. In some cases, the solution you need may be as simple as a debt management plan (DMP), where you make an agreement to pay a set amount each month. If this is more suitable for you, our transparent mortgage advisors in Nottingham will recommend this for you.

You can give us a call, or book a free mortgage appointment online to speak with our experts. We have availability 7 days a week and would love to have a talk with you regarding your remortgage options.

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You should think carefully before securing other debts against your home. By adding your unsecured debts to your mortgage, which is secured on your home, you are potentially putting your home at risk if you cannot make the required repayments.

Although the total monthly cost of servicing your debt may have reduced, the total cost of repayment may still have risen as the term of your mortgage is longer than it may have taken to repay the debts originally.

Can I Remortgage and Extend The Term in Nottingham?

There are many different reasons as to why a homeowner may look to take out a remortgage in Nottingham. You can find lots of information about this on both our website and across the internet, whilst you are researching this option.

From remortgaging to release equity, to taking out a remortgage for home improvements, there are plenty of options out there for homeowners. One that people maybe don’t talk about enough though, is that you can actually remortgage in Nottingham to extend your term.

Yes, that’s correct, you may be able to remortgage in Nottingham and extend the length of your mortgage term!

Why would I remortgage in Nottingham to extend my term?

Your term is how long you have to pay back your mortgage, based on the contract you signed with a mortgage lender. Popular choices are usually around 25-30 years, which is a long time to be financially liable for something, though also provides long-term security.

Once you get through part of your process, maintaining your payments might be difficult, perhaps your bills have risen. In taking out a remortgage to extend your term, you spread the cost of your mortgage over a longer term, lowering your monthly mortgage payments.

This in turn can then free up much more disposable income that you can use per month. It’s not sunshine and rainbows, however, as the downside is that your interest will be spread across that extended mortgage term as well.

What this means, is that whilst it will be cheaper in the short term, giving you that extra disposable income per month, you will actually be spending more on your mortgage overall by the time your term has finished.

Can I remortgage in Nottingham to extend my term if I’m borrowing more money?

Yes, you may be able to look at extending your term if you would like to borrow additional funds or remortgage to release some equity that is in your home.

Truthfully, you can probably extend your term on any remortgage path you’re looking to take, with popular options for homeowners being to remortgage home improvements or to take out a debt consolidation remortgage in Nottingham.

It is again important to remember though, whilst you will be extending your term over a longer period of time so you can lower your monthly mortgage repayments, you will be paying more interest overall by the time your term has finished.

You should think carefully before securing other debts against your home. By adding your unsecured debts to your mortgage, which is secured on your home, you are potentially putting your home at risk if you cannot make the required repayments.

Although the total monthly cost of servicing your debt may have reduced, the total cost of repayment may still have risen as the term of your mortgage is longer than it may have taken to repay the debts originally.

When wouldn’t I be able to remortgage in Nottingham and extend my term?

Though there may be variances from mortgage lender to mortgage lender, there are lots of factors that could potentially limit your ability to remortgage in Nottingham and extend your term. These include, but are not limited to, your age, mortgage type and any mortgage debts.

If this doesn’t work for you, please remember that there may still be options to help you lower your monthly mortgage payments. Your dedicated mortgage advisor in Nottingham will review your case, and look for the most appropriate outcome to help you.

Can I remortgage in Nottingham to extend the term of my interest-only mortgage?

This can be a little complex, as not many mortgage lenders will give you the option of extending the term of your interest-only mortgage. Some may not have an issue with this, though you will still owe the lump sum of interest once your term concludes and they may want to avoid payment delays.

Additionally, the majority of residential properties will be on some variation of a repayment mortgage, as a residential interest-only is much less frequently occurred in modern times. Instead, it is much more common to find an interest-only attached to a buy to let property.

This in itself with have its own challenges, as not only will you have the same problems of paying back the lump-sum, but a mortgage lender might not allow you to extend your term if the property still has a tenant living inside of it.

In any situation, your best route may be to look at taking out a remortgage on your property, so that you can replace your interest-only mortgage with a repayment mortgage. This would allow you to continue by paying back both the capital and interest combined.

We would absolutely recommend speaking to an expert member of our remortgage advice team, so that you can better understand the options that may be available to you, prior to making any decisions.

What if I want to reduce my term instead?

Perhaps you actually wish to reduce your term instead, which once again can also apply to pretty much every mortgage situation. In this circumstance, quite the opposite to extending your term, you would pay back much less overall, though would likely have much higher monthly payments.

Alternatives to extending your term

Rather than taking out a remortgage so that you can extend your term, you may actually have other options out there available to you, if you would like to go the route of saving money per month. In this article, we have already looked at remortgaging, but what about downsizing?

Downsizing means that you sell your current home, and move into a smaller home instead. As a general rule, a smaller home could cost less, reducing the need for a big mortgage, which in turn could have lower monthly mortgage repayments if taken over the same term.

Another option, for homeowners over the age of 55, with a property that is worth at least £70,000, is equity release in Nottingham. This could allow you to release funds tax-free from your home, either as a lump-sum or in occasional payments, through a lifetime mortgage.

Even then, equity release in Nottingham might not be the most suitable path for you to take. There are also options for homeowners over the age of 50, such as retirement interest-only mortgages and term interest-only mortgages, known as RIO’s and TIO’s.

Similar to how it would work when taking out an equity release plan, with a RIO or TIO, your loan will only be repaid when you are dead or have moved into long-term care, with your home being sold at either stage.

A professional, trusted and dedicated later life mortgage advisor in Nottingham will be able to review your possible options and alternatives as a later life homeowner, advising on the most appropriate path to take, based on what you wish to achieve, as well as your future plans.

To understand the features and risks of equity release and lifetime mortgages, ask for a personalised illustration.

A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means tested benefits. The loan plus accrued interest will repayable upon death or moving into long term care.

Can I Remortgage Early in Nottingham?

Remortgage Advice in Nottingham

If you are closing towards the end of your fixed term, you are probably thinking about your remortgage. Most homeowners will start their remortgage process three months before their deal is coming to its end, however, what happens if a deal crops up and you want to start the process earlier to capture this deal?

In most cases, you will be able to remortgage early, however, this can sometimes differ between lenders. If you are able to remortgage early, you should carefully think about the implications of doing so before rushing into it!

Type of remortgage

Typically, when you are taking out a mortgage, you will be presented with three different mortgage options: fixed-rate, tracker and discount rate. You will also find more niche options to choose from such as interest-only deals etc., however, you will most commonly find these three on the market.

Fixed-rate mortgages

Fixed-rate mortgages are exactly what they say on the tin. Your interest rate will remain the same for a fixed period of time, meaning that your monthly mortgage payments will be the same until your fixed mortgage term ends.

When you come to the end of your fixed term, you will automatically switch onto your lender’s standard variable rate of interest (SVR). Their SVR will undoubtedly be higher than your current rate because lenders track the Bank of England’s rate and add their own percentage on top. Your monthly repayments will likely increase if you end up on their SVR. This is why it is a necessity to remortgage in Nottingham before your deal comes to an end.

Tracker mortgages

Tracker mortgages use your interest rate plus the Bank of England’s base rate to determine your monthly mortgage payments. Since the Bank of England’s base rate can go up and down, your payments may change monthly. This could save you money but also cost you more each month.

For example, if your tracker mortgage product has a 1.5% base rate and the Bank of England’s base rate is 0.5%, you will receive 2% overall interest on your mortgage. In six months’ time, if the Bank of England’s base rate has increased, you would expect to pay slightly more on your payments going forward until it goes down (if it does).

Discount rate mortgages

Discount rate mortgages track a rate set by your lender, however, this rate can increase or decrease at any time, it’s completely up to your lender. People often compare these mortgages to variable rate mortgages as your rate and payments can change each month.

Why would I remortgage in Nottingham early?

As a mortgage broker in Nottingham, we see many different reasons why people choose to remortgage. Some reasons are more common than others too; usually, they won’t find a better deal, fund home improvements or consolidate debt.

When we say that you can remortgage early, usually, this is within 6-3 months prior to your current mortgage term ending.

Avoiding lender’s SVR

The most common remortgage scenario could be considered a regular remortgage. If you are coming towards the end of your mortgage term, you may want to remortgage to avoid falling onto your lender’s SVR.

If you are looking for a new mortgage product and need remortgage advice in Nottingham, get in touch and we will try and help you find the perfect remortgage product for your personal and financial situation.

Finding a better deal

You may be searching the market for a better deal and come across one that you like the look of, however, your term hasn’t ended yet! If you are worried about missing out on this product you may want to remortgage early to get a hold of it before it goes. If you remortgage too early, you may face an early repayment charge to do so.

Funding home improvements

People sometimes remortgage early to fund their home improvements. They may want to get the work on their home started sooner rather than later, wanting to combine the costs of the improvements with their mortgage.

To Protect Against Interest Rate Rises

When it comes to remortgaging early, this is one of the most popular reasons for doing so. It can often be the smartest thing to do, despite the fact that you could likely face an early repayment charge.

If you are midway or over halfway through your mortgage term, and you can see that the interest rates are rising dramatically, you may want to remortgage in order to avoid these rates. If you manage to secure a fixed-rate deal prior to the rates rising, you may be able to keep your payments down for a lengthy amount of time.

Debt consolidation

If you are in debt, you can possibly incorporate some of your debt into your mortgage to make the payments more manageable. If you are unable to do this, you may need to consider a debt management plan.

In turn, just like home improvements, your monthly mortgage payments will rise, however, your debt will be a lot more manageable.

You should think carefully before securing other debts against your home. By adding your unsecured debts to your mortgage, which is secured on your home, you are potentially putting your home at risk if you cannot make the required repayments.

Although the total monthly cost of servicing your debt may have reduced, the total cost of repayment may still have risen as the term of your mortgage is longer than it may have taken to repay the debts originally.

Early repayment charges (ERCs)

Early repayment charges may put off those looking to remortgage early. ERC costs can rise depending on how early into your term you are. For example, if you are halfway through your term, you can expect to pay a lot more than someone who has less than six months of their term left.

These costs can get very expensive, however, you have to consider that switching mortgage products could also end up saving you hundreds further down the line, particularly if you are remortgaging to avoid interest rate rises etc.

It is always worth speaking to your mortgage lender or mortgage broker in Nottingham prior to this. They will be able to tell you roughly how much the ERC will be and help you decide whether this is the best solution for you.

Should I remortgage early?

At the end of the day, it is completely up to you whether you choose to remortgage early or not. If you feel like it will benefit you in the long run, it could be well worth starting your process sooner rather than later, so that you don’t miss out on the rates available.

Before you do, make sure to speak to a remortgage advisor in Nottingham to ensure that you are taking the best option for you.

How to remortgage early in Nottingham

You can remortgage early by starting your process with a free remortgage review with Nottinghammoneyman. Our mortgage advisors in Nottingham are here to help you find the most appropriate remortgage deal for your personal and financial situation.

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

Having Mortgage Problem in Nottingham?

Specialist Mortgage Advice in Nottingham

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

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

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

Reasons why you might struggle to get a mortgage in Nottingham

Passing lenders credit score

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

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

Improving your credit score

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

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

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

Remortgaging

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

Are you struggling yourself?

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

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.

Why Should I use a Mortgage Broker in Nottingham?

You decide: Mortgage Broker in Nottingham or Direct?

It’s completely your choice to go to a lender directly; some are a little more adept and can manage the process themselves. When it comes to this you can either go and visit a branch or do it online.

Whilst this sounds like the steps are easy enough, there are still many reasons as to why a person should use a mortgage broker in Nottingham. Our mortgage advisors in Nottingham have taken time out to put together a few pros and cons to help you decide between the two choices you’re faced with.

Advantages for Your Options

Some of the benefits of homeowners and home buyers going direct to their bank or building society means that you’ll be able to save some finances. In the past, you may have found that the bank manager knew your finances incredibly well, but that all changed when credit scoring came into place.

Other potential advantages are that you’ll find some lenders may offer exclusive products for your mortgage, ones that are only be able to be obtained from straight to the lender themselves. They do this so that it appeals to both customers and brokers alike, but these exclusive offers can be subject to change and can sometimes when they stop being available with the lender, can still be obtained by going to a mortgage broker in Nottingham instead.

From 2014 onwards, mortgage lenders were no longer allowed to sell mortgages on a non-advised basis, on a whim with any customer interaction. Up until that point, some applicants were under the impression that they were receiving advice when in fact they weren’t speaking with a qualified advisor. This meant that they had opted out unintentionally from consumer protection that they would’ve received by speaking with the right person.

Due to these changes, lenders had to change the way they ran their business, meaning that it could take up to a month to speak with an advisor. If you have had your offer accepted on a house, this is of course not a good thing, as obviously you really want it. Because of this, mortgage brokers became a more popular option. As a part of our mortgage advice service, we aim to give you same-day mortgage service. When you Get in Touch, we try and connect you with a dedicated mortgage advisor in Nottingham at a time that best suits you.

Back in the ’90s, it was a lot more challenging to compare mortgage deals. Through the advancement of technology, finding a competitive mortgage is now a lot easier, as everything is basically online now. The issue people are faced with, is not knowing whether you meet mortgage criteria and it’s hard to find products that are tailored to your individual circumstances. Wherever you’re searching, it is important to bear in mind that the deals with the lowest tend to carry high arrangement fees.

Affordability

Another key factor that could determine where you go, is affordability. It doesn’t matter how good a deal might look to be, if you aren’t able to borrow the amount of money you need. Because of this and because of how serious of a financial commitment this type of process is, many prefer a mortgage broker to help them along the way.

As it can be seen with many lenders nowadays, there are various different factors that can make a mortgage application so much more complicated. For example, these may be:

• Poor credit history
• Self Employed Income
• Mixed source of deposit (savings/gift)
• Let to Buy (keeping your current house and buying another)
• Contract workers/zero-hours contracts
• Affordability

As the years have passed, lenders have attempted to differentiate themselves from their competition by ways such as offering better deals than others. The main way they do this is through their differences in lending criteria. For example, some lend more towards those who are Self-Employed in Nottingham, whereas some might take a more relaxed to blips on your credit report.

Our mortgage advisors in Nottingham understand that your situation will be unique to you. Through our experience as an open & honest mortgage broker in Nottingham, we have seen various unique and complex scenarios in the past. It’s our hope that we will be able to draw from that experience in order to recommend a more suitable mortgage for you at the lowest rate possible.

However, it’s not just about the mortgage. Even if the application itself is straightforward, we’ve noticed our clients rely on us for much more, we strive further than just sorting your mortgage deal. Our mortgage advisors in Nottingham will be able to recommend other professional services such as Solicitors and the array of different surveys and protection available to you as a home buyer.

Broker v Direct

It has already been covered previously, but mortgage brokers in Nottingham tend to be far more responsive than high street mortgage lenders. It is not uncommon for our dedicated and hard working advisors to provide out of hours (beyond the standard 9-5 shift) and weekend appointments. They are also able to respond to clients’ emails during this time to offer a more responsive service as opposed to restricted working hours.

One factor which is often overlooked by many as to why a mortgage broker in Nottingham is a highly preferred option to a lot of home buyers and homeowners alike, is that a person may simply prefer to let someone else handle the full transaction and take the stress out of the situation. Professional applicants, such as those who run a Buy-to-Let in Nottingham, have seen this to be very beneficial as they have their own customers to handle, so find it to be much easier having a helping hand do the work for them.

If you are in need of expert mortgage advice in Nottingham, whether you’re a first-time homebuyer, moving house, looking to remortgage, are a buy-to-let landlord or even something else that hasn’t been touched upon, please do Get in Touch. Our team of mortgage advisors will do their very best to bring you one step closer to mortgage success, keeping the process as clear and simple as they possibly can.

Mortgage Advice in Nottingham

Can I Get a Mortgage in Nottingham With a CCJ?

A County Court Judgment (CCJ) is a form of court order that can be registered against people in the United Kingdom, if they have failed to keep up any payments they owe and fall behind on arrears. Having this means that you must pay back the debt, at the rate the court decides.

Having a CCJ to your name can have a negative impact on your ability to obtain any kind of mortgage in Nottingham. That being said, the good news is that by enquiring for the help of a specialist mortgage broker in Nottingham, you may still be in with a chance.

Your mortgage advisor in Nottingham will want to discuss your situation, to get a complete view of you and your financial history, to recommend the best possible course of action to take, as you undertake the mortgage application process.

Of the mortgage lenders who are willing to possibly lend to someone with a CCJ, they will want to see how many CCJ’s you have registered against you, how much the CCJ was for, whether it has been settled or unsettled, how much deposit you have and how far away the registration date for the CCJ was.

What is a County Court Judgement (CCJ)?

A County Court Judgement is a legal decision that is put against you by the County Court, for failing to pay any outstanding owed money. Your judgement is entered onto the statutory Register of Judgements, Orders & Fines and will be checked by credit reference agencies, to determine your creditworthiness.

Of course, this is not just checked by credit reference agencies, as mortgage lenders will also be performing credit checks of their on you to ensure you are indeed credit worthy for such a large financial commitment. As such, having a CCJ can make getting a mortgage incredibly difficult.

Even an unsettled CCJ will eventually disappear from your credit file, but only after six years has passed. Whilst it may seem like a long time, you may still be able to get a mortgage before this time has passed, with the help of an expert in the field.

Can I still get a mortgage if I have a CCJ?

This is a question we find ourselves being asked quite regularly and the answer really does depend. If you were fortunate enough and you paid your debt within 30 days, the CCJ may possibly not even appear on your credit file at all.

For most people, however, the reason they got the CCJ in the first place, was because they couldn’t keep up financially, meaning they might not be able to pay off a CCJ so quickly. Whilst it can be a challenge, there might actually still be options for budding home buyers in Nottingham.

If the CCJ was recent and for a lot of money, this could lessen your chance of being accepted by a mortgage lender for a mortgage. Having a CCJ often gives the impression of bad financial habits.

Were there any issues with the creditor, was the CCJ because of missed mortgage payments, if you’re already a homeowner, how did it affect your ability to maintain mortgage payments, were you issued a CCJ for poor finances over a long period?

There are various ways you could improve your chances of being accepted by a mortgage lender. These include having a regular income, having a sufficient deposit, making sure your credit history is clear and well maintained after the CCJ, having the CCJ settled or at least starting to pay it off.

More and more mortgage lenders these days will cater to applicants who have CCJ’s in their name, but the biggest factor we find is how far away the CCJ was. Someone with only a year or two to go, may find their process easier than someone who was only issued the CCJ yesterday, for example.

Speaking to a mortgage broker in Nottingham can be key for your process, as they will find a mortgage lender that may be willing to accept you, CCJ and all, whilst also looking for the best mortgage deal, within reason, that is available for you.

Can I dispute a CCJ?

Sometimes you may wish to dispute the CCJ that has been issued against you, reopening the case and having it set aside. You should make sure you can supply enough evidence to make your claim in the first place, as it will likely cost you money to apply for this.

You can dispute your CCJ by submitting a form called an N244, which will go through to the court for review. If they do indeed agree that you should not have been issued the CCJ, it will be removed off the register and no longer affect your credit or be accessible by credit reference agencies.

Does the date of my CCJ make much of a difference?

If your CCJ is older than 6 years, it will be removed. The further away you are from the date that the CCJ was issued, the higher your chances are of passing a mortgage lenders criteria. For example, those who are perhaps more than 4 years from that date, will have a better chance than those only 1 year away.

Each mortgage lender will review CCJ’s differently. One may look at the date of which the CCJ was issued, whereas others may ignore this and only look at either when it was settled or if it was even settled at all. It entirely depends on the mortgage lender.

Can the CCJ be removed from my credit file?

You will need to prove that you paid the CCJ within 30 days of it being issued, if this is indeed how you proceeded, before it will be removed. If it has been over 6 years since you were issued the CCJ or you successfully disputed it, it will also be removed from your credit file.

If you were given a CCJ by mistake, perhaps you weren’t notified by the court and it has appeared on your credit file, you will need to let them know and get in touch with different credit reference agencies, so that a notice of correction can be added to your credit report.

How do I rebuild my credit score after receiving a CCJ?

After having something like a CCJ, you will no doubt want to rebuild your credit score somehow. This means you will need to be more careful with your finances, keeping up the CCJ payments and any other credit agreements you might have.

If you believe you could possibly be on course for missing a payment, you need to get in touch with the credit provider as soon as possible, to inform them of this and work on a plan together. Creditors are usually understanding and cooperative, so will want to work with you to keep both sides happy.

You will also want to make sure you aren’t making new applications for any credit all the time, as this can be a bad look if a hard search has been taken out on you. Furthermore, you want to make sure all of your details are up-to-date where appropriate, such as the electoral roll.

Check out our handy How to Improve Your Credit Score in Nottingham guide for further information that could be beneficial for anyone from a first time buyer in Nottingham, to someone looking to remortgage in Nottingham and more.

A Guide to Remortgages in Nottingham: Top Reasons to Consider

Remortgage Broker in Nottingham

The mortgage journey has its fair share of both ups and downs, but at the end of it all, you will end up with one of the following: either a potential future family home, a property that will be able to propel you further up the ladder or an investment purchase that can be used as an extra source of income.

Regardless of the path you took, there will eventually come a time when you are reaching the end point of your mortgage term. You could now sell your home and upsize/downsize into a new property.

Maybe you are looking at selling your existing portfolio to the tenant or another buyer, with a view to invest in other areas? These aside though, there is one option that remains the most popular, and that option is a Remortgage.

What is a remortgage?

First of all, let’s look at what exactly this means. A Remortgage is where you utilise the loan from a new mortgage to pay off your current ongoing mortgage. There are a large variety of different options when taking out a Remortgage, varying in scale of importance from minor to major.

By using the 20 years or so knowledge of our resident “Moneyman” Malcolm Davidson (host of our YouTube channel MoneymanTV), we worked hard to put together a quick guide regarding all the options you could have when it comes to taking out a Remortgage at the end of your term.

Remortgage for Better Interest Rates

Generally speaking, your initial mortgage deal will normally last somewhere within the realms of 2-5 years, featuring low fixed rates or possibly discounted rates. Depending on your circumstances, you may even be placed on a tracker mortgage, a mortgage type that follows the Bank of England’s base rate.

When your term has come to its end, it is likely that you will be moved along to the lenders Standard Variable Rate (often referred to online just as SVR). To simplify, an SVR is a mortgage with an interest rate that can fluctuate both up & down, depending simply on what the lender wishes to charge.

This does not work the same as a tracker mortgage as it does not follow the base rate of the Bank of England.

Because of this, these types of mortgages are usually the most expensive paths to take, leaving many with a preference in looking at Remortgaging for better rates, an act which will hopefully save you money on your monthly repayments down the line.

Remortgage for Home Improvements

when you’re around 2-5 years into occupying your home, you may decide that it doesn’t quite feel like you’d hoped. You may be in need of an extra room or larger living space for your kids or personal belongings, a new kitchen, a new office, or a loft conversion of some kind.

Rather than move into a larger house, many choose to take the route of releasing their equity with a Remortgage in order to cover the costs of these improvements.

Though the idea of having to obtain planning permission and fund/manage your own project may seem scary at first, some would argue it’s a lot less stressful and more rewarding than the process of selling your home, and finding and moving to a new one.

In the future this may prove to be quite a beneficial situation, as creating more space and having good quality craftsmanship will likely increase the value of your property. This is of course very useful for if you’d like to sell the property later down the line.

Remortgage for Changes to Your Term

In many cases, people may simply just choose to Remortgage in Nottingham for a better mortgage term, either by reducing the length of their current term or switching to a product that is more flexible.

Reducing the length means that you won’t be paying back your mortgage for as long, so aren’t completely tied down, but this will mean that your monthly mortgage repayments will be a lot higher. The longer your term, the lower the payments will be over the course of said term.

Some prefer to go with a more flexible mortgage term when they Remortgage. The positives that come with this option can prove endearing to some homeowners.

You may end up with a chance to overpay, resulting in being able to pay your mortgage off a lot quicker, as well as being able to carry the same mortgage and rates over to another property, should you ever decide that you’d rather move at some point in the future.

Though a flexible mortgage sounds like it’s the most ideal situation to be in as a homeowner, they usually come in the form of a tracker mortgage. As mentioned previously, this follows the Bank of England base rate, meaning one month your payments could change both positively and negatively, based on interest. Some homeowners feel this is too unreliable for their liking.

Remortgage to Release Equity

Every homeowner has some level of equity in their property. The way this is worked out is by calculating the difference between what is still owed on the mortgage and the current value of the property.

Further onto a previously mentioned point, this can be used for home improvements, however there are still an array of mortgage options available for you.

Some use the equity in their home to cover long-term care costs, to supplement their income, to have themselves a well deserved holiday, to pay off an interest-only mortgage or to have a surplus of extra cash to do whatever they’d like with.

We often find that Buy-to-Let landlords will use a remortgage to release equity as a means of covering their deposit for buying any properties in the future to add to their existing portfolio.

If you are aged 55+ and living in a property with a minimum value of £70,000, then it may be worth your time looking at your options for Equity Release in Nottingham. To find out if you qualify for later life lending, book a free mortgage appointment with a later life mortgage advisor.

Remortgage to Consolidate Debt

Another topic relating to the aforementioned topic of remortgaging to release equity, is utilising the existing equity in the property to pay off any unsecured debts you may have accrued over time.

Though it may seem like an easy enough task, Debt Consolidation not only bases the amount on how much you’re owed and the value of the property, but also how good or bad your credit rating currently is. This could mean you are only able to borrow a limited amount.

Furthermore, to pay off your previous mortgage and your debts, you will need to borrow a higher amount than your outstanding mortgage amount. This means your monthly repayments will probably be higher than you’d have initially liked. Though not an ideal situation, at least you can rest assured that should you find yourself struggling, a mortgage broker may be able to help you get back on track.

Should you find yourself with a particularly damaged credit rating, there are still some options to choose from, though these will be no easy feat and require very Specialist Remortgage Advice in Nottingham before proceeding with your process. Even then, there is no guarantee things will go the way you’d like them to.

You should always look to gain mortgage advice before choosing to consolidate and secure any debts against your own property.

Experienced Mortgage Advisors in Nottingham – Get in Touch

If you are reaching the end point of your current mortgage term and are wondering what your option may be for Remortgaging, please feel free to Get in Touch with an fast and friendly mortgage broker in Nottingham.

A dedicated and experienced advisor will be able to discuss your circumstances and future goals, helping you create a plan of action for your next step of your home owning and mortgage journey. We always aim to ensure this time around is a quicker and smoother process than your first mortgage.

The Importance of Getting your Mortgage Reviewed in Nottingham

Mortgage review advice in Nottingham

A mortgage will be one of the biggest financial commitments of your life and that’s why it’s always important to check-up on it. When we say “check-up” on your mortgage, we mean that you should re-evaluate your deal to see if you can obtain anything better. If you never have a look over your mortgage, it’s possible that you may be overpaying. Most of the time, homeowners are actually overpaying their mortgage and they could be on a better rate.

What is a mortgage review?

A mortgage review is exactly what it sounds like. When you want a mortgage review, you should approach your lender, building society or Mortgage Broker in Hull and tell them that you want to take a look over your mortgage and see if you can get a better deal. This process will work in a similar way to how their mortgage application process works.

They will want to get a full financial overview of your current situation. This will include your income (and your partner’s if you live together), monthly bank statements and your credit score. Also, they will look at whether you’ve kept up-to-date with your mortgage payments throughout your term or not. They will take a lot of different factors into consideration before giving you an answer.

Your credit score will play a big factor in any financial situation. For example, you may have been meeting your mortgage payments but have not been meeting overpayments; if this is the case, your credit score may be lowered which could show partial unreliability.

Once they have evaluated your financial circumstances, they will give you some feedback and let you know if you can access another deal through a product transfer or Remortgage. If you can’t switch products, you may need a couple of years to prove that you are reliable. This will particularly apply to people who have suffered from bad credit in the past, lenders may just need to see a little more before they offer you a better rate.

Why is a mortgage review important?

As a Mortgage Broker in Nottingham, we always recommend that you carry out a mortgage review at least two years into your mortgage term or when your financial situation changes. You may be overpaying your mortgage without even knowing.

If you end up securing a better deal, you could potentially save yourself thousands of pounds down the line. Also, if you’ve not realised that your term has ended and you’ve ended up dropping onto your lender’s standard variable rate (SVR), you could be losing out on money. A lender’s SVR is usually high, perhaps much higher than your previous rate!

Standard variable rate (SVR)

If you end up losing track of your mortgage and the length of its term, you may end up slipping onto your lender’s SVR. This error is commonly made by First Time Buyers in Nottingham. A fixed-rate product is usually much better than a lender’s SVR. In Nottingham, we’ve sometimes seen that a lender’s SVR is their highest rate.

If you are on a fixed-rate product, you won’t be able to shop around for deals and switch over that easily. It’s much easier to switch deals whilst you are on your lender’s SVR; this is the only real positive to being on their SVR.

You are under no obligation to stick with your current lender and can go elsewhere if you want to. As a Mortgage Broker in Nottingham, we always advise that you get advice before making any big decisions. If you can access a better rate, look around for deals or approach a Mortgage Broker in Nottingham for help.

We have access to thousands of competitive mortgage deals – some exclusive to our broker! We can give you further insights into your current mortgage situation and let you know what sort of deals that we can match you with. If you choose to stick with us after we’ve found you a deal, that’s up to you to decide.

Equity Mortgage Advice in Nottingham

Lots of equity in your home

Ever since the credit crunch in 2008, we have seen a significant increase in housing prices in Nottingham. The increase in housing prices also increased the amount of equity within a home. This means that if you live in a house with lots of equity in it, you could be able to access better mortgage rates.

Mortgage rates are based on loan-to-value ratios, therefore, the greater amount of equity in your home, the lower your interest rate will be.

There is also another route you can take, you could raise money for capital if that’s something that you’re interested in.

Little equity in your home

If you are a First Time Buyer in Nottingham, a relatively new homeowner or your property has yet to increase in value, there may not be a great amount of equity in your home. Don’t worry though, there may still be other ways to save money on your mortgage payments. A Mortgage Broker in Nottingham will tell you exactly how to do so.

If you’ve been keeping up-to-date with all of your mortgage payments, you will always give a good indication to your lender that you are reliable.

The true cost of a mortgage deal

The deal with the lowest rate isn’t always the best deal; low-interest-rate deals often come with extortionate arrangement fees. This is why it’s always better to do your research before rushing into a deal just because it has a low rate.

You speak to a Mortgage Advisor in Nottingham before making any decisions. Our team of advisors are here to offer all the advice that you need when looking at getting your mortgage reviewed. You’d be turning down a free mortgage consultation if you didn’t get in touch with Nottinghammoneyman.