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.
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.
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.
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.
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.
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.
Feel free to use the points below and jump to a different mortgages type;
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.
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%.
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.
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.
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.
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.
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.
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.
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.
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:
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.
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.
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.
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.
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.
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.
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.
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 Equity Release as a means of covering their deposit for buying any properties in the future to add to their existing portfolio.
Another topic relating to the aforementioned topic of Equity Release, 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.
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.
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.
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.
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!
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.
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.
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 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.
Moving Home can be a very stressful time, though remortgaging can also be equally as stressful. Fortunately, these situations do not have to be and with our help, you may find yourself being more successful in these areas. Within the current situation of COVID-19 a lot of people are maybe coming to a realisation that the place they’re in may not suitable for them and their family now that they are spending more time in their home.
With some lenders undecided on applications they are progressing, it can be unclear to the customers what the do’s and don’ts are in the current climate when it comes to moving home or remortgaging. Often the reasons people choose to do this is due to their house being too small for their growing family, or they want more suitable living quarters for such things as home offices, conservatory extension or a room conversion.
Remortgages are still able to go ahead and therefore customers who are hoping to remortgage for an extension may be allowed to do so given that their application is approved. Our dedicated and trusted mortgage advisors in Nottingham are happy to help with your remortgage needs.
There are many options when you remortgage that you are able to choose from. To remortgage, you will need to review the different remortgage deals that are available to you. If you stick with your current lender you will be limited to only the products that they offer. By looking elsewhere you broaden your options of better deals and find that a much better deal that is available will save you a great deal of money.
Currently in the mortgage market rates are at the lowest they’ve been in a while, especially when it comes to fixed-rate mortgages, so there has never been a better time if you’re planning on carrying out a remortgage for home improvements. By having our trusted Mortgage Advisors in Nottingham alongside you throughout the process, you will also gain access to thousands of lenders with deals that you might not have had available to you by going solo.
The costs in relation to remortgaging for an extension are not a set amount. There are multiple factors that could have an affect on the amount you have to pay back each month and the overall amount you can borrow, such as the size of the extensions and the type of the home improvement you’re looking to go forward with.
You will also need to consider that in order to remortgage, you will have to go through another affordability assessment, even if you switch deals through the same lender you were on for the last mortgage.
When choosing to Remortgage in Nottingham, we always recommend that you get in touch with an experienced Mortgage Advisor in Nottingham ahead of time to make the most of the mortgage advice we provide. We will be sure to search through thousands of remortgage deals that we have available to choose from and pick out the perfect one for you.
We understand that life is hard right now, so having a friendly Mortgage Advisor in Nottingham by your side could make the process much more quicker and smoother.
The unpredictable and cruel nature of COVID-19 means that a lot more people have now been working from home and are realising this is an option they would much rather stick with, as opposed to going back to work in an office or other place of work. This type of work can often come with many benefits. Some of these benefits can include:
In the past people have often uprooted their entire life and moved home for a better living arrangement and to be closer to work. However, now that many people realise that they can start to work from home means they will look to shape their home to fit in a new workspace such as a home office. Therefore encouraging people to ‘improve, not move’ when it comes to making plans for their homes.
The price of converting an existing room can be a lower cost than you might initially think, depending on what work you have done. We’ve seen conversions ranging between £5 – £15,000. Interest rates have been dropping for a while now and have stayed at a constant low which could mean that the monthly mortgage payments would only increase by an affordable amount.
Assuming an interest rate of 2% is possible over 25 years it might cost you:
In order to raise additional funds to Remortgage for a home office, you will need to Remortgage your property. These funds will contribute to converting whichever room you choose to convert into said office. The most common choice for this type of conversion is a spare room or garage.
The first step will be to find a good remortgage deal. If you choose the option of going on your own and going directly to your bank, you’ll face restrictions as they can only offer their own products. On the flip side, by going further than your bank and shopping around, you will be opening yourself up to more than thousands of available deals that could leave you better off each month financially.
Our dedicated Mortgage Advisors in Nottingham will be on hand to look through thousands of remortgage deals to find you the most appropriate deal for you. As a company that prides itself on providing good quality Remortgage Advice in Nottingham, we will always aim to keep your best interests at heart.
You will need to work out a rough idea of how much the work which will be carried out will cost. Such things as room size and how much work is needed on the room to get it in shape will be taken into consideration.
Right now are some of the lowest rates that have been present in the Mortgage Market for quite some time. The amount of money you can save by converting will extend further than your remortgage. You may also find yourself saving money on transport costs.
If you’re thinking about setting up a Remortgage to fund home improvements such as a home office, we have experience spanning from over numerous years. By coming to our Mortgage Broker in Nottingham, we’ll help you along with the process and hopefully open you up to better, more favourable Remortgage deals.
When lenders ask for your bank statements, they will be looking for many different things. However, their main objective is to assess whether or not you are able to manage your money responsibly and is likely to keep up to date with their mortgage payments. In recent months, one question is being asked by applicants quite a lot: “do gambling transactions look bad on my bank statements”.
Regardless of whether you use casino and bingo sites online or take a stab at The Grand National every year, there is nothing illegal about properly licensed gambling. Many of the “bookies” as they’re affectionately known, advertise on mainstream TV and radio. To many, gambling is simply a hobby or pastime similar.
However, it shouldn’t be forgotten that even the gambling advertisers urge customers to “please gamble responsibly” and it is something highly important to remember when applying for a mortgage. Whilst it’s not up to the lender to tell you how to live your life, how to spend your money or indeed to moralise on the ethical rights and wrongs of gambling, they do have a duty (underscored by mortgage regulation) to lend responsibly to their customers.
If lenders need to prove to the regulators that they are being careful with their lending decisions, it isn’t entirely unreasonable of them to expect the people they lend to, to also be careful when it comes to their personal finances. Give it some thought; If you were lending your own money, would you lend it to the applicant who gambles recklessly or someone who is sensible?
Having the odd gambling transaction on your bank statements doesn’t automatically mean you will be declined for a mortgage. That being said, the lender will consider whether these transactions are reasonable and also responsible. They will especially look at the frequency of these transactions, the size of the transactions in relation to the person’s income and the impact it has had on your account balance.
If these transactions don’t happen to often, are not large amounts of money and make no significant impact on a regular credit bank balance, then they are not likely to be regarded as important. However, if you bet money frequently or you are constantly overdrawn, the lender is more than likely going to see that as being irresponsible and decline your mortgage application.
As discussed, lenders are looking at your bank statements to show how you manage your money and to help them determine whether or not you are financially stable or the evidence that you are not.
Remember, lenders are financial institutions that, either directly or as part of a wider group, tend to sell current accounts, overdraft facilities credit cards and personal loans. You must understand that these things can all play an important role in financial planning. The key for a mortgage applicant is how these facilities are all managed.
For example, having an overdraft facility and occasionally using it, is not necessarily a bad thing, whereas regularly exceeding the overdraft limit is not so good. With this in mind, lenders will look for excess overdraft fees or returned direct debits because these would normally show that the account is not being handled the best way by the customer.
Other things to look out for include credit transactions from payday loan companies; “undisclosed” loan repayments (i.e. if you said on the application that you have no other loans but there appear to be regular loan payments, this could be a problem); they would look out for any obvious missed payments; finally, they might also consider how much of a typical month is spent overdrawn – i.e. if you only just go into credit on payday and for the rest of the month are overdrawn, how sustainable is this mortgage?
The smart answer is, if possible, plan ahead. Generally speaking, a bank would ask for up to three months of your most recent bank statements. These will show your salary credits and all your regular bill payments. If you feel like you want to apply for a mortgage in the near future, try to make sure that you avoid anything that could harm your chances. Take a break from gambling for a short while and work on presenting your bank account in the best way you can.
As someone who provides expert mortgage advice in Nottingham, our team may be able to help you, as there are some lenders who may ask for fewer bank statements than others. Some may not even ask for them at all. However even these lenders would reserve the right to request bank statements in certain circumstances, so your best port of call is to be as smart as you can be ahead of making any mortgage application. Remember, if you do gamble, please gamble responsibly!
If you are a First Time Buyer in Nottingham who doesn’t know a lot about mortgages, you should definitely get some Specialist Mortgage Advice in Nottingham from a trusted Mortgage Advisor. They will guide you through the whole mortgage process and help you with your application and get you on track with your finances.
Year after year, back to back, we see thousands of Interest-Only Mortgages in Nottingham reaching the end of their terms and customers unable to pay off their mortgage fully.
Here we will explain what they are, the situations people face and what to do if you have an Interest-Only Mortgage.
Residential Interest-Only Mortgages were the in thing back in the 1980s and 1990s. The concept was that you pay interest on the capital owed, then when you reach the end of the term, you pay a lump sum. Borrowers would get advised to set up an “Investment Vehicle” alongside their Interest-Only Mortgage.
These were low-cost assets offered by investment companies, to raise enough money to eventually pay off the lump sum at the end of the term. In some cases, these investments may even provide additional funds on top of paying off the mortgage. Investment Vehicles also acted as a means of providing life cover, should the customer ever unfortunately die.
When taking out their Interest-Only mortgages, many customers did not get informed about the risks involved. There was no guarantee that their investment would grow enough to pay off the mortgage, with some customers not even investing at all. There were many complaints, with thousands receiving compensation if they got mis-sold on their mortgage.
These days we find that Interest-Only Mortgages are mostly used in conjunction with Buy to Let Mortgages. In any case, this is because some landlords like to maximise their monthly profits as much as possible.
Endowment Mortgages haven’t been popular in some time. There may be people still using one of these and have not managed to get them switched into a Repayment Mortgage yet. If this is you, you may be understandably concerned about losing your property.
You can still get an Interest-Only Mortgage, but with stricter rules now in place, it is less likely to be seen or cause any trouble for customers. Not all lenders will offer interest-only and those that do have stringent criteria, such as an approved repayment vehicle in place and a bigger deposit.
At times some lenders have surprised the borrower by requesting full repayment of the balance. Though this would typically only occur if the lender had been a poor communicator. Lenders regularly write to the borrowers, to ensure they know they need to make their repayment plans.
If you realise you are unable to repay the capital when required, please communicate and be open with the lender. However, this will not be the first time they have encountered this situation. So make sure you keep them updated on your circumstances.
Lenders do not like repossessing properties from people who cannot payback. However, they need to make their money back somehow, so will do this if they have no alternative.
There are now a lot more Retirement Mortgage options available to borrowers directly than ever before. If you happen to qualify for one of these options. You may continue to pay interest as a means of protecting the equity currently present in the property.
On the flip side, if you are not worried about leaving an inheritance to your children. You can allow interest to roll up and flat out stop making any mortgage payments.
A significant problem with Equity Release Mortgages is usually the Loan to Value. To qualify for one of these, especially if you are in your 60’s. You need to have a decent amount of equity in your home.
Most homeowners who look to purchasing a new family home will need to progress onto selling their current property in Nottingham before they actually start Moving House in Nottingham. The equity that you receive will be used as your deposit for whatever property you are planning to move into.
There’s always a safe minimum number in which the seller is willing to accept in order to agree to a sale. However, there are factors that can present big differences in the time it takes for the house to be purchased, for example how it is marketed and presented on the market.
Though make sure you don’t aim too high or too low just to guarantee an offer. The offer should tie in with the odds for the area so you shouldn’t just go with the Estate Agent who suggests the highest potential sale price. The way you enter into the market is a pivotal moment to how many viewings you receive. If it seems that you get no initial interest, then there may be a good chance that your property has been over-valued.
Some potential sellers tend to delay from putting their houses onto the market until they have seen one that they are aiming to buy. If you find that this is you and you’re after a quick sale, some tips are provided to increase your chances of selling more quickly.
The first tip would be to view your house as if you’re viewing it for the first time as a potential buyer then if something doesn’t look right to you, it won’t look right to another. An advantage for most houses is if they have a good ‘kerbside appeal’ as it creates a first good impression this includes attention to keeping your fences intact and tidying up any outdoor items such as barbecues. A garden full of well-placed flowers does wonders as it can add colour to the outside of the property and can create a more pleasant scent.
If it appears that you look after your home then the potential buyer will be under the influence of thinking that the inside will look just as nice inside as it does outside. Something simple will do the job such as a freshly jet-washed drive or neatly cut lawn to provide the ‘feel-good factor’.
The same goes for your front door, make sure to clear any clutter that may be in or around the garden such as children’s bikes and toys, etc. It is important to make sure your front door feels welcome, perhaps it is a good decision to treat yourself to a new doormat whilst you’re revamping.
Once you’ve got the front out of the way – you can now go room to room. You should focus extra attention to the kitchen and bathrooms. Your bathroom is a factor most people overlook. Present this room as spotless as you’re able to with items stored out of sight which aren’t in daily use and co-ordination between towels and flannels is a nice added touch.
The idea of ‘space’ is always a way to entice. Anything that is being stored outside of cupboards should be moved to a place out of sight or if it’s not needed… thrown away. As handy as the shed is to store things in for the meantime, sometimes the viewer may want to look inside your shed so make sure not to overfill it with junk – the same goes for your garage if your buyer drives, they’re going to want a decent space for parking.
Interiors are best to look well-kept. Freshly painted doors and polished brass fixtures means that it worn down features of the house become more up to date and will hold a more refreshed appearance. It is also best to tighten up loose screws around the house and make sure that doors and locks move smoothly and efficiently.
A relaxed atmosphere will make your buyer feel more at home so it’s best to avoid having pets or young children around whilst the viewings take place. On the other hand, if it’s a family home which you are selling it can be nice to project that image to the buyer with family pictures. It is also important to remember to offer them space whilst they’re viewing and not to crowd them. If appropriate, let them walk around on their own to provide them with opportunities to talk between themselves.
Well-lit rooms offer a clearer appearance and show that nothing is being hidden, especially in the darker rooms. All curtains and blinds should be open and all lightbulbs should be working. If you have any interior plants, it’s advisable to trim them down to an appropriate size.
Overall your house should be immaculately clean. All aspects should be checked over such as repairs and all fabrics should be washed and presented in a well-presented manner including:
Plain painted walls create the idea of a place that the buyer is able to personalise – wallpaper should be avoided. A seller should not only appeal to the eye but also a fresh scent or good airing and clutter-free spaces create a more open atmosphere for potential purchasers. If something appears to have a funky smell about it that you notice, it’s best to remove it as this can deter potential offers.
People buy from people, so it’s always more appealing if you do the viewings yourself as the seller. You will know the property more than anyone and the best features to show off alongside any small issues that they may need to be aware of to provide a more balanced view. Estate Agents do want to earn their commission but will have limited knowledge about the property you own.
The projection you offer about your own experience is the main factor when it comes to selling your home and Moving Home in Nottingham. It helps to accentuate this factor to show how you’ve developed an emotional connection to your home and created great memories meaning so will the future buyer, especially if they’re looking for a family home.