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.
We often find that first time buyers in Nottingham like yourself can sometimes see the entire homebuyer experience stressful. It doesn’t have to be that way. To help you get prepared. This article will feature a shortlist of top questions to ask when considering enquiring about a property.
It’s always worth finding out how many people have viewed or enquired about the exact property you are after. Giving you a more accurate measure of how much time you have before making a definitive decision. After all, this will be one of, if not the most significant financial commitments in your life.
If there is no onward chain, you will likely be able to move quickly, especially if you are not part of a chain yourself. In addition, if there is no need to sell your property first, you will have more advantages as a buyer as you will not hold up the home buying process.
New build properties often come with extras to incentivise you to buy the house. In addition, they sometimes come with optional extras you can purchase brand new and ready for you on your moving day.
If you are not buying a new build property, some previous homeowners like to leave items behind to save on costs, which could work in your favour. These can include and not limited to a washing machine, fridge, freezer, or typically a shed if the property has a garden shed.
Try to gain insight into your new neighbours. as a good or bad neighbour, the experience can frequently make or break your experience of living in the property.
Running costs can depend on the property location. It’s always best to find out how much the Council Tax and the average spend on utilities by asking the seller or researching online.
Suppose you like relaxing in the garden in late summer evenings or reading books in the conservatory —the direction the house faces can make such an important difference.
When you move into your new home, you will often want to decorate your tastes and what other work needs to be done around the property. We tend to find older properties; you may have some ‘fixes’ or repairs to make. Or make improvements to energy efficiency, insulation and garden work.
Negotiating on a property price is a pretty standard part of the house-buying process. Therefore, it’s essential to be as prepared as possible to make an offer on a property that you like. You can learn more about improving negotiating on a property price and being one step ahead here.
By setting a date in your diary, you can plan your other jobs, such as instructing a conveyancing solicitor, packing your belongings and arranging a removal van to bring your belongings to the new property.
A County Court Judgment (CCJ) is a court order in the UK that might get registered against you should you fail to repay the money that you owe. CCJ’s can negatively affect your ability to get a mortgage. However, good news, with the help of a Specialist Mortgage Broker in Nottingham we may be able to help you.
Your Mortgage Advisor will discuss the following with you in order to recommend the best mortgage for you with you’re CCJ:
🏠 The number of CCJ’s registered.
🏠 Amount of the CCJ.
🏠 Settled or unsettled.
🏠 Deposit size.
🏠 Date registered.
A County Court Judgement is issued if you fail to pay any outstanding money that you owe. A CCJ can have severe effects on your odds of getting a mortgage.
An unsettled CCJ will eventually disappear from your credit file after six years, however, it may be possible, with enough deposit, to get a mortgage within this time. Here we will explain how a CCJ affects your mortgage chances and how to get on the property ladder if you have Bad Credit in Nottingham.
Unless the claim got proved to be false or you paid the debt within 30 days, it might not appear on your credit history. However, if you failed to pay within 30 days, things become more arduous, but you are open to some options.
If the CCJ was recent and expensive, this could lower the chance of lenders willing to give you a mortgage. A CCJ often accompanies other credit problems stopping you from getting a mortgage.
🏠 Any issues involving money owed to a mortgage provider?
🏠 Did it affect the property?
🏠 Was the CCJ brought because you poorly managed your finances over an extended period?
This could help improve your chances: having a regular income, a clear credit history since the CCJ, getting CCJ settled or paying off a CCJ.
A growing number of lenders cater to applicants with CCJs, but the essential factor is how long ago the CCJ was. Going to an expert Mortgage Broker in Nottingham will be crucial. They can try and match you with the right deal if you suffer from a CCJ.
If you want to dispute a CCJ and want to re-open the case against you, you will need to make sure that you can supply enough evidence as to why you shouldn’t have been issued a CCJ in the first place. You can appeal to the CCJ by completing an N244 form. The fee will be pretty significant for them to re-open your case, however, if the court agrees that you shouldn’t have been issued the CCJ, it will be removed from the Register altogether.
Any CCJ longer than six years ago would have gotten removed. It would help increase your chances of passing a lenders criteria if your CCJ was more than four years old than one within the past year or two.
Each lender looks at CCJs differently. One lender might look at only when the CCJ was issued. Others will focus on when it got settled or if it got settled at all.
You need to prove it got paid within 30 days of being issued if it’s been over six years since you received the CCJ and successfully disputed it, or another party was proven responsible for it.
If you never received the CCJ initially and appeared on your file, you need to contact the court where the CCJ got made. You need to contact each of the credit reference agencies and get a ‘notice of correction’ added to your credit report.
You need to make sure you keep up to date payments on your CCJ and other credit agreements. If you think you might miss a payment, you need to contact the lender as quickly as possible and discuss your options.
Minimise applications for new credit, check your credit report and make sure all details are up-to-date. Check out our handy How to Improve Your Credit Score in Nottingham guide for further information.
We here at Nottinghammoneyman would like to wish everyone out there a very Merry Christmas, and we hope for a prosperous and healthy 2021 for all.
The values of properties in the UK have surprisingly held themselves up high during the pandemic. Due to stock shortage, undiminished consumer demand and the Stamp Duty Holiday (which is due to end in March of 2021).
Suppose we have learnt anything about the property market in 2020. In that case, it’s that you’ll never stop a dedicated and hard-working potential First Time Buyer in Nottingham from pushing through and doing whatever it takes to be a homeowner!
We predict that as we advance into 2021, despite unemployment levels going on the rise, we here at Nottinghammoneyman fully expect the consumer demand for buying property to continue to be on the rise.
With people spending more and more time at home, it’s only natural that people will inevitably start looking for something bigger, better or with a lovelier garden.
Also, around this time of year, we will see lots of remortgage activity from customers who are happy with their current home but would like to invest in their homes by expanding for some home improvements.
Interest rates are still relatively low, and off the back of Brexit, the Government will want the property sector to thrive, especially considering that it is one of the “wide multipliers”, e.g. it will uphold lots of jobs.
Once the vaccine is fully out there, and life starts to feel a little normal again. We believe there will be many people who adopt a “life’s too short” approach to their lives, something that should be good for the economy, especially those with involvement in the property market.
If you need Mortgage Advice in Nottingham or life insurance advice in 2021, please feel free to get in touch. Our dedicated mortgage advisors are available from early until late, seven days a week, 8 am – 10 pm to answer your questions. Contact us to book your free mortgage consultation!
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.
Property inflation has outstripped wage increases over the years. In contemporary settings, to be able to afford a property, especially as a First Time Buyer in Nottingham that they wish to purchase, a person may have to buy with someone else.
The reason for this is affordability and lenders will be calculating two incomes to figure out the maximum mortgage amount. Of course, the mortgage will be more affordable between two people because there is someone to share the costs.
Some lenders allow up to four people jointly co-own a property. With regards to one borrower stopping their contributions to mortgage payments, any joint owners still hold a legal right to stay within their home unless a court rules otherwise. Therefore, you need to be very selective about whom you buy.
If a person wishes to increase the mortgage in the future, then all borrowers need to consent. So it’s best to plan for down the line just for in case someone wants to opt for a different route or situations change.
It is familiar with couples who are married, or in civil partnerships, to go for the option of Joint Tenancy. In the occasion of one passing away, then the property will have the other owner on the mortgage. If you have taken out Mortgage Life Insurance, the mortgage would be repaid at that point also. Though, you will need the consent of the other applicant if you want to sell or remortgage the property in the future.
Tenants in common get chosen by relatives or friends that choose to buy together. You will still jointly own the property, but you cannot get forced to do so in equal shares. In any case, this works out best if one party is making an immense financial input than the other. Additionally, you can act by yourself if you are a tenant in common. From this, you’re able to perform individually and can freely sell or give away your share of the property to someone else.
All mortgage borrowers are jointly and severally liable for the upkeep of the mortgage payments. If one of the party stops paying, then all have to make up for the shortfall to prevent possible mortgage arrears.
It’s essential to eradicate this dilemma as early as possible as falling into arrears could stop you from getting another mortgage in the future. The best way to view your mortgage situation is to view it as you don’t own 50% of a property, you own 100% of it jointly.
Removing someone from a mortgage can be very challenging as Lenders need to be thorough and confident that a person can afford the mortgage payments on their own before allowing this. No-one who applies for a mortgage with another person. Does so with the intention of things not working out, but unfortunately, it does sometimes happen.
Therefore it is essential to remember how big of a financial commitment getting a mortgage is and how challenging it is to make changes further down the line. You will have to decide whether you are going to be moving house in Nottingham or whether your ex-partner is.
Even if you can show that you have been upkeeping payments since your ex has moved out. It doesn’t guarantee that a Lender will agree to your request to have the mortgage put into a sole name. Lenders prefer the idea of there being two people to pursue in the event of arrears occurring. If a Lender had to remove someone from a Mortgage it would mean that they would have to carry out a brand new affordability assessment. The same process they would have to do at the original point of purchase.
If the event rises that a Lender declines your request for a Sole Name Mortgage, then a Mortgage Advisor in Nottingham will be able to help. Helping you see if there are any other Lenders available to agree to your request and transfer the mortgage into your name.
An alternative option for this would be to ask close relatives to see if they can help out. Ways in which they can do this would find methods such as replacing an ex-partner on your mortgage or by gifting you a lump sum to reduce the amount owed.
If by chance, you and your partner do split up and leave the property you remain responsible for mortgage payments. Even if it’s in an agreement between you and your ex that they will make all the payments.
If you are sending your partner money each month, you should keep an eye on your credit report. To help ensure that they are paying the mortgage because if they default it will impact your score.
Are you still connected to an old mortgage? Then the payments for that will be taken into account if you are looking towards buying a new home and ultimately.
Lenders might not Lend as much as you might like. Buying a home with anyone is a risk to it’s best that you plan for as many outcomes as possible. Unquestionably it’ll be impossible to prepare for all scenarios as there are too many factors and variables.
However, if you do fall into hardships. Then a Mortgage Advisor in Nottingham is always on hand to help and offer Mortgage Advice in Nottingham.
Being a First Time Buyer in Nottingham or Home Mover in Nottingham when it comes to applying for a mortgage and your credit score, the fewer addresses you have on your record, the better, and it seems that people are becoming more savvy and aware of this.
Our Mortgage Advisors in Nottingham are now seeing more and more applicants who have moved out of their parent’s addresses into rented accommodation. Still, they think that it is a good idea to leave their bank statements, credit card, and Electoral Roll information registered at their previous address.
There are good reasons why people do this. However, this is now a flawed strategy. We tell our customers that if you have moved to a new address, there will be some record of this on your credit report. In any case, this could be from a delivery address when you have ordered something online or a car/home insurance search and many more.
By far, a better strategy for if you are thinking about taking out a mortgage is to get all of your accounts (credit cards / current accounts) and electoral roll changed over to your new address. When updating your address on your credit file and electoral roll ensure you double-check the date in and date out. If you do make a mistake with these dates, it may appear on your records that you are living in two places at the same time.
Bear in mind this will show a more open and honest way of trying to apply for a mortgage which will benefit you greatly in your Mortgage application and when it comes to approaching a Mortgage Advisor in Nottingham.
To help get the property market back on its feet in post-lockdown, the Government has put into action a stamp duty holiday which will stay in place up until the 31st March 2021.
Stamp Duty often acts as a barrier to most people who choose to buy a home, so with this new Government implementation, it should allow the Property Market to be more accessible to a wider range of the general public during the current times.
This holds hope from the Government that the temporary move will allow 9 out of 10 people who buy a home to be exempt from paying Stamp Duty.
Here’s how these changes may affect you:
Stamp Duty normally doesn’t affect First Time Buyers in Nottingham as they are already exempt up to £300,000. The holiday will only apply to properties up to the amount of £500,000, so if you are a First Time Buyer buying at that maximum figure then you would save £10,000 in Stamp Duty.
The ones who will mostly benefit from this will be the ones moving home. If you are moving home in Nottingham and the purchase is completed before March 31st 2020 then you will not pay Stamp Duty at all as along as the purchase price is <£500,000. The predicted average that the Governments think the Stamp Duty will fall by is £4,500 but for prices around £500,000, the savings will be £15,000.
The Stamp Duty surcharge still applies in this scenario. This was brought in so that more first-time Buyers in Nottingham gained more opportunity to step onto the Property Ladder but Buy to Let Investors in Nottingham will still be better off than before.
Under the old system, if you bought an investment property for £250,000, you’d have paid 3% on the first £125,000 and 5% on the second £125,000, resulting in a stamp duty bill of £10,000. During the holiday you will only pay 3% stamp duty on the whole purchase price, meaning a bill of £7,500.