What is a Cashback Mortgage?

Cashback Mortgage Advice in Nottingham

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

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

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

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

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

Cashback mortgages explained

What is a cashback mortgage?

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

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

Will a cashback mortgage benefit me?

Below are just some benefits to home buyers:

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

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

Different types of mortgage in Nottingham

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

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

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

Specialist Mortgage Advice Nottingham

Removing a name from a mortgage

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

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

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

Divorce & Separation

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

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

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

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

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

Transferring to a Family Member or Friend

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

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

A Party is Not Paying Their Share

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

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

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

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

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

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

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

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

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

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

Trusted Mortgage Advice in Nottingham

Agreement in Principle FAQs

What is an agreement in principle?

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

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

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

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

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

Frequently Asked Agreement in Principle Questions:

Will obtaining an agreement in principle affect credit score? 

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

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

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

Should I avoid hard credit checks? 

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

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

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

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

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

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

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

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

Can I make an offer without an Agreement in Principle? 

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

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

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

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

How long does an Agreement in Principle last for?

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

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

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

Agreement in Principle Mortgage Advice in Nottingham

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

Obtaining a Mortgage as a Newly Qualified Teacher in Nottingham (NQT)

Newly Qualified Teacher Mortgage Advice in Nottingham

Congratulations are in order! The hard work has paid off and you have recently passed your exams, becoming a newly qualified teacher.

From here you have found yourself a teaching position and are understandably very excited to get started in the classroom. The catch here, is that this start to your career also requires you to move to Nottingham.

Times are now equal parts exciting and stressful for you, as you now begin struggling to balance owning your own home s well as starting your brand new job role. Worry not, you are definitely not the only one to have been in this situation.

Mortgages for NQTs

Finding a lender that is actually willing to offer a mortgage to someone who has become a newly qualified teacher can be a bit tricky. This comes down to a lack of work history or having temporary contracts, to name a few reasons.

Even still, it’s important to remember that with some care from a mortgage advisor in Nottingham searching for the right lender, you may still be able to obtain a mortgage.

There are indeed lenders out there who will lend to someone who is newly qualified, with some even potentially offering reasonable deals to those working within the education sector.

The tricky part is trying to navigate around the various mortgage lenders and finding one that you match up with the criteria of.

This is the benefit of working with a trusted team of mortgage advisors in Nottingham who will be able to search over thousands of deals on your behalf. It’s our hope that in doing so, we’ll open you up to better deals and rates.

What mortgages for NQT teachers are there?

The different types of mortgage available for NQTs can include:

• Shared Ownership
• Variable-Rate Mortgages
• Help to Buy Schemes
• Fixed-Rate Mortgages

The benefits of speaking with a fast and friendly mortgage broker in Nottingham.

Here are some of the critical factors that can be taken into consideration:

• No previous employment history required.
• A 12-month first post-contract can get treated the same as a permanent role
• Mortgages available up to one month before the start of the first contract (so you can apply in the August for example)
• Up to 95% loan to value

How a Mortgage Advisor in Nottingham Can Help

Our experienced mortgage advisors in Nottingham are extremely familiar with the workings of various lending criteria, utilising their many years of experience to help our customers with their mortgage circumstances.

Get in touch with us today to see what options you have available to you. Our dedicated team will take some details from you, using this information to work hard and see if we can get a mortgage suitable to your individual circumstances.

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

Porting Mortgage Advice in Nottingham

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

Are all mortgages portable?

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

Should I port my mortgage?

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

What is a sub-account?

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

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

Buy to Let Mortgage Advice in Nottingham

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

Sole Name Mortgage Advice for a Married Applicant in Nottingham

Specialist Mortgage Advice in Nottingham

Through our experience as a mortgage broker in Nottingham, we find that customers looking at applying for a mortgage look at making a joint mortgage application as they generally look when in a relationship. This is an alternative option to apply for a mortgage under the only name of a sole named applicant.

With inflation exceeding the increase in wages along with property prices constantly rising. A couple of first time buyers in Nottingham earning an income will generally be able to get a substantial mortgage the amount which covers what the buyers are looking to achieve.

In some cases, one applicant may be able to apply for a mortgage, but this depends on the situation of the individual. One of the reasons for this may be that one of the applicants does not want their name to be linked to the mortgage in question.

Other issues could be due to someone having a previous credit problem. For instance, a bankruptcy or a County Court Judgement is stopping them from getting a mortgage now. When something like this happens, given that the spouse or partner has no financial connection to this issue, they can apply for the mortgage on their sole behalf.

If you’re in this situation, you should be careful not to build a financial link with your partner so you can protect your credit score from harm.

Mortgage Application Borrowing Capacity

Another situation we have encountered through our time providing clear and transparent mortgage advice in Nottingham is when one of the partners is currently unemployed by choice or something else. The consensus is that the maximum borrowing capacity for a couple with only one applicant is much lower than if the working applicant applied for a mortgage in their sole name.

This arrangement is something we regularly come across working in the mortgage industry. Age can impact the calculation, for example, an applicant who might be older, say in their 50s or so.

The way this applies to your mortgage is that an applicant who is buying with a younger partner who is also in a good paying job could have access to a higher mortgage.

Implications on Tax 

Another reason why an applicant will look into the option of applying for the mortgage in their sole name could be due to stamp duty or other tax implications.

Dedicated Mortgage Advisor in Nottingham 

With married applicants, we do find that lenders will usually have quite strict criteria because it will be taken our with two interconnected applicants. 
 
You may disagree with this statement due to two applicants providing security, in the event that lenders need to chase for payments, it can open the door to complications if circumstances change like a divorce. 
 
The good news is that not all lenders will provide this biased view. With this in mind, we have a brilliant specialist mortgage advice in Nottingham team who will be available from until late, every day of the week. 
 
Here at Nottinghammoneyman, we have an expert team who have a fantastic reputation in helping thousands of home buyers and homeowners with varying situations to get towards mortgage success. Get in touch with our team today who will be more than happy to help you through our mortgage journey.

Can I Have Two Mortgages in Nottingham?

Second Mortgage Advice in Nottingham

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

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

Why would I want a second mortgage?

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

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

Second Mortgage to Raise Money

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

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

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

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

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

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

Rent Out a New Property (Buy to Let)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

How to Improve Your Credit Score in Nottingham

Credit Score Mortgage Advice in Nottingham

A credit score is a number that represents a person’s creditworthiness. Your credit score will be used to calculate your affordability for a mortgage, loan, credit card, etc. Your score will be listed on your credit file, so anyone that does a credit search on you will be able to see your score.

Credit score criteria

• 300-580 – This is a ‘poor‘ credit score. Having a credit score within this range could lower your chances of being accepted by a lender.
• 580-670 – Having a score like this would slightly increase your chances of being accepted. This is considered to be a ‘fair‘ credit score.
• 670-740 – If you have a score that’s within this credit score criteria, you have a ‘good‘ credit score. On average, this is the most common credit score range.
• 740-800 – This credit score is ‘very good‘. If you have a score in the category, your chances of getting accepted will be high.
• 800+ – This is the ‘best‘ credit score category; having a credit score greater than 800 is ‘excellent‘. Your chances of being accepted by a lender are well above the average.

If your credit score is above 670, a lender will likely see no problem lending to you. On the flip side, if your score is less than 670, you may find it a little harder to get a mortgage and access the competitive deals that high credit scoring applicants are being offered.

If you want to access these types of rates, you may need to start thinking about trying to improve your credit score in Nottingham.

Reasons why your credit score may be lower

As a Mortgage Broker in Nottingham, we come across applicants in all different kinds of credit situations, some more specialist than others. There are lots of different reasons why your credit score may be low, some reasons are more common than you would realise.

We’ve seen a lot of customers suffering from a county court judgement (CCJ), a CCJ can severely impact your credit rating. If you fail to pay back a loan/lent money, you’ll be issued with a CCJ that won’t disappear from your credit file for 6 years or more.

This is why we always recommend that you pay off your debt before applying for credit; your lender will be able to see your ongoing finances and balances left to pay off. If a CCJ pops up during a credit search on your file, you will undoubtedly start getting asked questions.

Little things can cause damage too. For example, if you fail to keep up with your mobile phone contract payments and you end up with frequent bounced direct debits, your score will get harmed. Any sort of missed payments and bounced direct debits will appear badly on your credit file.

Even maximising into your overdraft every month could cause long term damage to your credit, without you even knowing. Your lender needs to know that you can manage your finances and not overspend. A lender will never accept an applicant who never has any money remaining at the end of the month, they need to know you have enough for your monthly payments.

This is just mentioning a few things that could negatively impact your credit rating, there are lots of other reasons why your credit score may be lower; some factors will cause more damage than others too. If you have a bad credit score and need some tips on how to improve it, feel free to get in touch with our team for Specialist Mortgage Advice in Nottingham. Whether you are a First Time Buyer in Nottingham, Home Mover or Self Employed, we are sure that you’ll benefit from our mortgage services.

Improving your credit score in Nottingham

Trying to improve your credit score can be hard, but hopefully, with the help of this handy guide, you can be nudged in the right direction towards improvement. You should know that every lender has different lending criteria, so you’ll never qualify for every mortgage deal, no matter how high your score is.

This means that you may still be able to access some specialist deals, even if you have a low score. Every lender and their criteria are different, so look out for their requirements before submitting your application. If you need help in finding a competitive mortgage product, speak to your Mortgage Broker in Nottingham today and we can recommend the best deal for you based on your personal and financial situation.

Ways to improve your credit score in Nottingham

Keep credit searches to a reasonable amount

Multiple credit searches can have adverse effects on your credit score. Be careful when using price comparison websites that are known to be major culprits of credit searching on individuals. If you are applying for a mortgage soon it may be wise to apply for additional credit afterwards.  Whilst having some credit and paying it back is a good thing for your score in the long run. Lenders prefer to see you leverage your borrowings right before setting up a mortgage application.

Check you are on the Voter’s Roll

Making sure you’re enlisted on the electoral roll really increases your credit score. It indicates stability which lenders like. Ensure your name is spelt correctly and that it’s your current address which is registered online. If you aren’t registered, it’s straightforward and easy enough to do this online.

Know your maximum limit

If you max out your card each month, your score will be reduced. Using a credit card to keep on top of your payments each month is a preferred method. This will be a good indicator to your lender that you are good at managing your money. The main red flag in a lender’s eyes is if you exceed an agreed card limit or overdraft. The reason lenders watch over this is because they want to know you’re able to take your finances responsibly.

Check your address history is keyed correctly

Sometimes it can be perceived on your credit report that you are living in two places at the same time if providers have yet to be told that you have moved houses. It is pivotal that the addresses which you’re updating are spelt correctly; If you have been residing in a flat this can be a bit more complex as the address can be formatted in different ways.

Keep up to date with credit accounts

If you no longer use certain store/credit cards you should get into contact with the providers to close the account for extra security. In the short term, this could be seen as having a brief impact on your score as the lender can’t tell who’s closing the account e.g. you or the provider but this will be for the better and an advantage to you in the long run. This is a good thing to do to reduce your chance of becoming a victim of fraud if you don’t notice you have a lost a card that you may use regularly.

Look out for financial links to others

Having family members or ex-partners connected to you financially could mean that they’re affecting your credit score unknowingly. Although you won’t be able to get the financial association removed if the account is still active though. To remove the links between you and another individual you should contact the reference agencies and make a request. The sooner you do this, the more beneficial it will be.

Many consumers feel that credit scoring is an unfair way of applications being assessed though lenders themselves are indifferent to this idea as it makes their overall job easier. It is more cost-effective for them to operate this way and computers give more consistent outcomes. On the other hand, some lenders do still do it the old-fashioned way but still apply the same rules about the number of defaults and CCJ’s they will allow.

When setting up your application, be sure your report is up to date to increase your chances of being accepted the first time. The more in-depth information which your Specialist Mortgage Advisor in Nottingham has at hand, the better.

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.