There are a lot of different things that potential home buyers in Nottingham must take into consideration, whether their journey will be as a first time buyer in Nottingham or you’re moving home in Nottingham.
The sort of things you’ll have to bear in mind will include your personal finances, any mortgage arrangements and the finding the best deal you possibly can for your personal and financial situation (this is something we can help with).
Before all that though, before even deciding on the house you wish to buy, you have to know where it is you want to live. What do you want nearby, what’s important, do you like thriving scenes or quiet settings?
Below we have collated a list of the various factors you’ll need to consider when you start looking for your new home.
First of all you need to decide what type of setting you wish to call home.
Maybe you prefer the hustle and bustle of the big city and are looking to live closer to the centre? Maybe you prefer the quiet life and wish to live on the outskirts, perhaps near some countryside?
You will need to carefully consider your choice here, as determining this will have an impact on any potential commutes to work, the choice of local amenities, shops and schools.
Although we see more and more people in the UK working from home, for a vast majority of homeowners, you’re going to have to factor in the way you will be getting to work.
It’s not just work of course, you’ll also have to factor in local convenience accessibility, such as how easy it will be to get to the local shops or any other businesses/services you require the use of.
Will you be able to walk where you need to go, or do you need to drive? If you do, will you need to access any motorways to get there?
Beyond that, what if you don’t drive? Are there are buses, coaches, taxi companies or train stations nearby? Depending on location, these options may be limited greatly, especially if you’re looking to buy in the middle of nowhere.
If you happen to have children, it is generally considered important to factor in what schools are in the area and the quality of those schools.
By taking a look at school league tables online, you will be able to judge for yourself what the best options for your children may be and plan accordingly.
There are some great schools across Nottingham for kids to get a good education, as well as options for further education beyond that.
Check the catchment areas too, as the area you’ve been looking at may not fall into the catchment area for a particular school that you may have wanted for your children.
Depending on the type of lifestyle you lead, the sorts of things you will be looking for in an area may differ. Some people may have the preference of having nearby shops to visit.
Others may not be so fussed about that (especially now that home deliveries of your weekly food shop exist!) but may want to be close to a gym or a local pub.
Some that have children or pets may prefer to live close to parks or open spaces. We highly suggest that you make a shortlist of the things you need and what you would like to prioritise nearby.
When you find a house you are interested in, you can then take a look at your compiled list and see how much of it you are able to tick off.
This is a personal choice and will be dependant on your circumstances. Some people will rely on family support, often when it comes to children. You may need family nearby for childcare or school runs.
Having a social life is also usually a crucial part of people’s lives. Do you want your friends to be as close as possible? Would you prefer to have some distance between them so you can visit sporadically?
Your choice of home location will also determine how far your money is going to go. Depending on location, you may have a different option of houses to choose from.
For example, some areas may allow you to find a 4 bedroom house for the price of a 2 bedroom flat in another area.
You may have to compromise on some of the things you previously listed as wanting nearby, in order to find an affordable property near the area you were set on.
Some of us would prefer to be a part of and contribute to a local community.
With this in mind, you may possibly wish to surround yourself in a local area that is involved in arts, crafts, book fares and local events at the community hall or town/village green.
Take the time to look and see what activities occur in the local area. For best results see if there are any local or even town websites.
Maybe even visit the area beforehand and get to know some of the locals. They will likely be able to inform you on current events and what is available nearby.
The chances are your new home is a long term investment and you’ll be wanting to see house prices increase, in the event you ever do decide you want to look at moving home in Nottingham.
In order to be more informed about this you could look to see if the local area has any investment plans, new road links, planned development projects, shops, sports facilities or if there are any companies looking to call it home base.
All of these can have an affect on the future of your new homes value, so if this is something that is important to you, you should definitely make sure that you do plenty of research ahead of time.
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.
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.
The different types of mortgage available for NQTs can include:
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:
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.
When it comes to looking at applying for a mortgage, we find that it is common for most applicants in relationships to look at making a joint mortgage application rather than making a single application for a mortgage under their sole name.
With property prices ever-increasing over the years, as well as inflation outstripping the increases in wages, we find that in most instances, a couple of first time buyers in Nottingham with two salaries are usually required in order to obtain a large enough mortgage that covers what the buyers are looking to achieve.
That being said, sometimes there are circumstances that arise which may allow for a sole name to apply for a mortgage. Sometimes this may be down to one of the applicants not wanting to have their name tied to the mortgage in question.
It may possibly be that they have had a previous credit problem, say for example a bankruptcy or a County Court Judgement, which is stopping them from getting a mortgage at the moment.
When something like this arises, so long as the spouse or partner has no financial connection to that issue, they could apply for the mortgage in their sole name.
That person should also be careful to try and avoid creating a financial association with their partner, in order to protect their credit score from any future harm.
Another example we see from customers is where one of the partners is currently out of work, be that by choice or something else. Generally the rule of thumb is that the maximum borrowing capacity for a couple with only one employed applicant, is lower than if the working applicant applied for a mortgage in their sole name.
This is quite a common occurance amongst the mortgage world. Age can also be factored into the calculation, if you have an applicant who is maybe older, say in their 50s or so.
As an example of how this applies to your mortgage, if you are buying with a younger partner who also has a well paying job, it is entirely possible that they could have access to a higher mortgage.
There may also potentially be stamp duty or other tax implications that could lead to an applicant potentially looking to apply for the mortgage in their sole name as well.
There are lenders that tend to have pretty strict criteria when it comes to married mortgage applications, as it will be taken out with two interconnected applicants.
Whilst it provides them with security, should they need to chase for payments, it also brings complications if something were to go wrong, such as a divorce.
Thankfully, not all lenders will share this rather prejudicial view. Bearing all we have touched upon in mind, our experienced specialist mortgage advice team in Nottingham will be here to help you from early until late, all throughout the 7 days of the week.
We’re proud of the service we have provided thousands of home buyers and homeowners alike, so would love to help you get started with your mortgage journey!
The amount of deposit you will be required to have in order to purchase a property is something that will be entirely dependant on your personal and financial circumstances, as well as looking at what you are trying to do. In this article we will take a look at how much deposit you may need.
The previous era of 100% and 125% mortgages are long gone, as is the infamous credit crunch. The Coronavirus did see certain deals pulled back, but nowadays we are seeing more and more lenders feeling confident about offering 95% mortgages to homebuyers.
Based on the history of mortgages and what went wrong, having to prove to a mortgage lender that you are a responsible borrower and have the means to maintain your monthly payments. Lenders need to have a confidence that they have invested correctly. This factors in with your deposit, as it also show that you have something to lose too.
The initial saving for a deposit can often be the difficult part for many, especially first-time buyers in Nottingham who have only been renting up until this point.
It can also be seen as one of the biggest obstacles in the property market and there are certain factors involved which could make the whole process seem even more daunting to someone who hasn’t experienced it before.
As an open & honest mortgage broker in Nottingham, we are always hearing questions from customers regarding deposit. In fact, we can safely say that it’s one of the most commonly discussed topics from first-time buyers. As such, we have compiled a list of the usual suspects and the answers to these.
In years gone by, 100% mortgages were on hand to most customers. There were even a selection of companies who were offering 125% loan to value mortgages. In hindsight, this sounds crazy, as it means if you were buying a property valued at £100,000, the mortgage lender would be willing to lend you up to £125,000.
Lenders require their customers to put down a deposit to reduce their risk of lending such a large amount of money. If they lend you 100% of the purchase price and for one reason or another you happen to fall into arrears, the lender would need to repossess the property in question and attempt to sell it.
If property prices dip even by a small amount, they have now not only made any profit, but have in fact lost money on this venture.
Also, there tends to be a school of thought that if you haven’t invested some money into a property, whether it be from your own savings or a gifted deposit, you might lack attachment and find it easy to “walk away” if you happened to struggle with your monthly repayments.
There is also the argument that if you are not in a position to save up at the very least, a minimum of 5% of the purchase price of a house for a deposit, then you likely aren’t ready for such a commitment at this current moment in time.
Putting down more deposit is generally a great thing to do!
If you are putting down a higher amount than the average home buyer, the lender may actually be willing to offer you a deal with lower interest rates than usual, as you will be borrowing less and therefore less of a risk.
For example; if you are looking to buy a £100,000 home and have only saved 5% deposit, you’re only able to access 95% mortgages and would be borrowing £95,000. However, if you were able to save a 20% deposit on that same property, you would be open to 80% deals and therefore only borrowing £80,000, which a lender would much prefer if an option.
It is important to know that products are offered in bands of 5% with 95% of Mortgages being the most expensive.
In some cases, very specific ones, using a personal loan for a deposit may be acceptable, though this depends on the lender.
It’s not widely accepted, because a mortgage lender will consider it as a monthly mortgage payment and therefore treat it is technically is, as an additional credit commitment. Because of this, you would be granted a smaller mortgage as opposed to the types of mortgage deals available to those who outright saved for the deposits themselves.
The reason why mortgage lenders don’t like to get involved with these circumstances, is because you are essentially borrowing 100% of the purchase price, which if we go back to mortgage history, is what caused problems in the first place.
The majority of mortgage lenders will accept gifted deposits as a source of your deposit towards a property.
Gifted deposits can pretty much come from anyone, though it is generally family and depending on criteria, friends too. There are certain obligations that the ‘donor’ will have to comply with, such as being willing to confirm it is a gift and not something you’re required to pay back.
They must also provide ID and proof of funds to keep in line with the lenders’ to anti-money laundering regulations.
As it pertains to modern society, if it weren’t for ever-rising popularity of gifted deposits, known by many as the ‘Bank Of Mum and Dad’, we believe that the property market landscape would look completely different to how we’ve come to know it.
Much like when using a gifted deposit, using your own savings to fund a deposit will require certain forms of ID and various documents in order to evidence how these funds came to be over time.
Lenders like to see how you have been saving over time. If it looks to the lender like you have had any large deposits moved into your bank account recently, then you will need to provide documentary evidence to show where it came from.
For example, if you have recently sold a car then you will need to provide the receipt and the amount you sold the asset for. The number present on this receipt should match that of the amount in your account.
Large cash deposits can sometimes prove to be problematic, especially when it comes to audit trails. When it comes to your application, audit trails can often be one of the hardest parts. The longer the funds have been in your account then the easier everything should be.
If you are selling a property, then the Memorandum of Sale provided by the Estate Agent will be sufficient proof.
If you happen to qualify for the government’s Help to Buy Scheme, then the minimum deposit required will still be 5%. The government will then loan you an amount of around 20%, which will be put towards your deposit, totalling 25% overall.
You must always remember though, that unlike when dealing with a gifted deposit, the government Help to Buy Equity Loan Scheme is just that, a loan. Eventually, that 20% needs to be paid back.
Not always. If it is a genuine discounted purchase, let’s say that the house is worth £100,000 and you have been offered it for £90,000, then some mortgage lenders will accept this discount as your deposit. This also can apply if you have access to the Right to Buy Scheme when purchasing from the local authority, such as council or housing association.
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.
95% mortgages are exactly what you might imagine, where you are borrowing against 95% of the property price, and then the remaining 5% is paid with your deposit. To demonstrate an example of this, let’s say you wanted to buy a property that was worth £150,000 with a 95% mortgage. For this, your minimum deposit would be £7,500 and you would borrow the remaining £142,500.
As we learned from the March 2021 Budget, Prime Minister Boris Johnson announced a Mortgage Guarantee Scheme for mortgage lenders, introduced with the hope of making 95% mortgages more readily available from the high street banks.
This really is great for First-Time Buyers and Home Movers, as this scheme will stick around until December 2022. Specific terms and conditions will apply. If you Get in Touch with a Mortgage Advisor in Nottingham, they will be able to look at with you, to see if you qualify.
All our clients who wish to work with us for Mortgage Advice in Nottingham, will receive a free, no-obligation mortgage consultation. During this consultation, a member of our dedicated mortgage advice team will be able to make a recommendation on the most appropriate path for you to take.
You may find that 95% mortgages tend to be more for First-Time Buyers in Nottingham & those who are Moving Home in Nottingham. Saving for a 5% deposit sounds like a pretty simple plan, but you’ll still need to have a really good credit score and be able to prove to the lender that you are able to afford your monthly mortgage repayments, before they will consider you for a 95% mortgage.
You’ll need to show the lender that you have a good credit score before you’ll be accepted for a mortgage, especially when you’re looking at getting a 95% mortgage. To improve this, we would recommend things like paying any current credit commitments on time, ensuring your addresses are updated and making sure that you’re on the voters roll. For a more detailed look at our credit score tips and tricks, please see our How to Improve Your Credit Score guide.
Affordability is something else you should also consider. Providing the lender with enough details of your income and monthly outgoings (things like your bank statements will be necessary for this) and any pre-existing credit commitments will allow them to get a general overview of whether or not you are able to afford a 95% mortgage.
It’s not uncommon these days to see lots of family members helping each other find their footing on the property ladder, with this especially being the case with parents and their desire to see their children succeed. This normally happens by a family member gifting the deposit required to proceed with a mortgage. Known by many as the “Bank of Mum & Dad, Gifted Deposits should be solely a gift, and not a loan to be paid back at any time. The lender will need this to be agreed and proven, before they will accept using it towards your mortgage.
It’s always to make sure you have the right type of mortgage, especially with something like a 95% mortgage. Each type works differently, with that choice allowing you to find one that is most appropriate for your personal circumstances.
Some homeowners and buyers tend to prefer a Fixed Rate or Tracker Mortgage, mortgage types which mean you either keep interest rates at a set amount or your interest rates will instead be tracking the Bank of England base rates.
On the other hand, you might be more comfortable with the way Interest-Only or a Repayment Mortgages work. Interest-Only allows you to benefit from cheaper payments until you need to pay a lump sum once it reaches its end (only really now used for Buy-to-Lets), whereas a Repayment mortgage (your average normal mortgage) means you’ll be paying a combination of both interest and capital every month.
You can read more about each of these different types in our Different Types of Mortgages article.
A mortgage is incredibly important financial outgoing, and as such you need to be ready for it. If you aren’t ready ahead of time, you might find yourself more likely to be affected by things like higher interest rates, remortgaging difficulties due to less equity and then negative equity.
Do not worry though, as these problems can be avoided if you’re savvy with your process to begin with. The more deposit you put down, the less risk the lender will see you as.
Putting down a larger deposit would not only reduce the interest rates by a good amount, but would also give the property more equity and reduce the risk of negative equity, which will be because you are borrowing less against your potential new home.
So, whilst the risks may provide initial uncertainty, planning ahead and saving for a larger deposit to access something like a 90% or even an 85% mortgage will be very helpful in your mortgage process and something you’ll be able to reap the rewards from down the line.
Many people argue that unsecured credit is too easy to come by and it’s not uncommon for clients to approach us for Specialist Mortgage Advice in Nottingham when they have a missed payments or have a low credit score.
Once you have missed payments, especially when it comes to mobile phone providers, you may end up with a default attached to your credit report. This has quite a bad effect on your future ability to obtain a mortgage because it can indicate that you represent a higher risk.
Just because you have missed payments or have a default it doesn’t necessarily mean you can’t get a mortgage but it’s likely that you’ll need some specialist help because it is fairly likely you will be turned down for a mortgage by a High Street Bank who may be risk-averse, especially if you only have a smaller deposit for example.
Specialist Lenders will want to know the date the default was registered against you and the longer ago it was, the more likely it is that we’ll be able to help you, particularly if it was down to a lifetime event such as separation, ill health or redundancy. People do make mistakes when they are young sometimes and it can feel that these financial mistakes come back to haunt you.
We may also be able to help if you have had historic mortgage arrears or a County Court Judgement.
Below are some helpful answers to frequently asked questions regarding Bad Credit mortgages in Nottingham & Surrounding Areas.
Whatever the credit problem you have had in the past we are going to need to see an up-to-date copy of your credit report which you can usually obtain for free online.
It’s important that you obtain your credit report prior to applying for a mortgage if you have any doubts about your credit history because multiple credit searches can further damage your credit rating.
The answer to this is very dependant on circumstances. Some customers find themselves a little confused by their credit. It may look bad, they may have had issues, but they have a solid income & enough deposit to reduce a rate and get a good mortgage. So why won’t the lender allow them to borrow the amount they’d like or anything at all? Well, that’s all down to risk.
The lender needs to be confident that you can pay back your mortgage payments without a likelihood of any arrears occuring. In the event of these arrears, the lender may need to repossess the home, which is something they absolutely want to avoid. Though it might sound complex, there are still options for people looking to get a mortgage with bad credit, albeit with slightly higher rates. Getting in touch with a Specialist mortgage advisor in Nottingham will be a beneficial next step to you finding a potential mortgage.
Sometimes, for reasons completely out of your control, you may find yourself in trouble financially and unable to keep up the mortgage payments you previously had the ability to pay with ease. These circumstances are unfortunate and whilst it could be a momentary blip that you are able to pay back not too long after, the damage is done and it will be on your record as a missed payment.
There may be other credit issues too that you’ve encountered during this time, and when it comes to getting a Remortgage, or a new mortgage after Moving Home in Nottingham, you may find yourself struggling. As mentioned above, this always comes down to risk. Can the lender trust you? Will you do this again?
Luckily, as providers of Specialist Mortgage Advice in Nottingham, we have had lots of experience in helping customers who previously had a mortgage and have since ended up with Bad Credit. If this explains your situation, then speaking with a dedicated mortgage broker in Nottingham will be crucial to finding future mortgage success.
Customers may find themselves with an array of different adverse problems regarding their credit, all of which can negatively affect the mortgage process. These issues vary from, but are not limited to;
Whilst these are all awful situations to find yourself in, it’s not the end of the world. The process may be longer, it may be harder and you may end up on a higher rate, but there are bespoke lenders out there, some of which we have on panel, who will accept you depending on the circumstances.
To increase your chances of success and open yourself up to better rates, you should really focus on improving your credit score. We have a handy guide we’ve written on How to Improve Your Credit Score, which will hopefully put you in a better place for obtaining a mortgage in the future.
If you are in need of some expert mortgage advice in Nottingham regarding a Bad or Adverse Credit situation, then Get in Touch with our responsive and experienced team of mortgage advisors here at Nottinghammoneyman. We’ll use our accrued twenty plus years worth of knowledge to our advantage, working extra hard to try and ensure we have a clear and concise plan of action for your credit score and hopefully, if all goes right, an eventual mortgage for you.
As we found out after the 3rd March 2021 Budget, the property market has quite the buzz about it with plenty of positive news floating around. We also found out how the British economy is going to recover after the effects of the past year.
Chancellor Rishi Sunak gave us all a look at how he plans to revitalise the mortgage market. People in the industry and homeowners alike are both very happy to hear the news announced. For now, the end almost seems in sight for this pandemic era.
In October 2020, 90% mortgages finally made their way back into the market. During the surrounding months in that period, it felt like it would be a while until 95% LTV mortgages would come back.
After Rishi Sunak’s 2021 Budget, we were very pleased to find out that 95% are finally making a comeback to the mortgage market. An important thing to remember however, is that the name of the scheme is rather misleading to prospective homebuyers and home movers. Whilst this is hugely positive news, not everyone that applies for a house under the scheme is going to be guaranteed a mortgage.
Lenders will still be assessing your credit score as they have been, making sure that you are financially capable of affording a mortgage alongside all of the other financial commitments that might be under your name. A mortgage lender will always try to avoid repossession if they can, only ever doing so if they truly have no choice. Another positive announcement though is if that happens, then the new government scheme would cover any shortfall.
For a while now, homeowners and lenders alike have been worried about the potential for current home values dropping. This measure that has been introduced should help calm their minds. Of course, the chances of negative equity occurring will naturally reduce should we see property prices on the up again, thanks to these announcements.
The Chancellor announced that both First-Time Buyers in Nottingham and Home Movers in Nottingham will be able to access and utilise the 95% Mortgages scheme. This is not just a scheme for New Builds and can be used by anyone on any property.
The new government 95% Mortgage scheme will be available from April 2021 and continue to run until December 2022. According to Chancellor Rishi Sunak, many credible and huge lenders have already shown their support for the new scheme.
As a Mortgage Broker in Nottingham with many years of experience in the industry, we are incredibly happy to hear this news and are excited to see where the market goes next.
Well, 95% mortgages making their way back into the market was just the beginning it seems, as it was announced that the Stamp duty holiday has been extended until 31st June 2021.
Back in 2020 when the Stamp Duty Holiday was first introduced to us, we all probably thought COVID would pass and life would carry on as it always had. Unfortunately, things didn’t quite work out like that. Solicitors are struggling to keep up with work pressures and if lots of chains had closed down, then it would have partly defeated the objective of trying to encourage people to undertake Moving Home journeys.
To keep the property market ticking over, and to carry on home purchases, the Government have opted to extend the current Stamp Duty Holiday. Property purchases up to £500,000 will continue to stay tax-free until 30th June 2021 and property purchases up to £250,000 will also stay tax-free until September 30th 2021.
Now that the market is on the up again and 95% mortgages are going to be making their grand return, we’re hoping that this is the sign that we needed that normality is on the horizon. Of course, it will still be a while before things are completely normal again, but this is a good place to start for the property market. The Government certainly sees the importance of the property sector, one that can surely play a huge part in the recovery of our economy.
The government are really pushing for people to transition back into buying over renting, as can be seen by the introduction of the new “mortgage guarantee” scheme. Seeing this news as a dedicated Mortgage Broker in Nottingham brings a level of optimism back to ourselves and others involved in the sector.
We are still open and here to help with all your mortgage & protection needs. Our fast & friendly team of mortgage advisors in Nottingham are available from 8am – 10pm, 7 days a week, so Get in Touch and we’ll get the ball rolling on your process.
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.
Completing a credit score for a mortgage is not a difficult task, however, sometimes the applicants are unable to meet the lender’s criteria. This is due to the fact that certain mortgage lenders have a high set of requirements that must be met by the applicant. There are instances where you may be unable to meet the credit score for the mortgage and the lender is not able to communicate properly about the reasons why you failed. We know this can be frustrating.
If you want to know why your application for a mortgage was possibly turned down, using a mortgage broker is the best path for you. Approaching experts and professionals in the field of mortgages is going to be the best choice you make to get a desired result. Once your file is fully studied by the dedicated Mortgage Advisors in Nottingham, they will be able to recommend the most appropriate lender to go with.
In order to improve your credit score, you have to meet certain parameters. If you are paying off a balance on a credit card, you should try to pay the monthly balance in full. Another big help in improving your credit score comes if you are present on the voters roll in your local area. To make things even better, get rid of any bank account, store cards, and credit cards that are no longer used. A cleaner record really helps.
Remember, if your application is rejected by one lender, you may still have a chance of being accepted by another lender. For this, you need to have the least amount of credit footprints registered in your name. Your name in the systems should be as clean as possible and should not have any pending balance so that the lender can trust you and your credit score easily.
If you are looking for Specialist Mortgage Advice in Nottingham, you should keep in mind that every mortgage lender uses different methods to calculate the amount that you can borrow. As a matter of fact, you might find 10 different approaches from 10 different lenders for the same mortgage application.
You might find one lender being more lenient if you are self-employed, with your overtime and bonuses counting towards 100% of your income. While some lenders might not consider bonuses as income, others might be generous enough to accept the tax credits, maintenance, and even child benefit.
The benefits of looking for Specialist Mortgage Advice in Nottingham are pretty helpful. A trusted mortgage broker will have knowledge of how to approach the lender and discuss the chances of your application getting through. Consulting us for an expert opinion will help you find out if you meet the lender’s requirements. You can then get to work on meeting those requirements in order to move forward with your potential mortgage.
It’s highly recommended that you get Specialist Mortgage Advice in Nottingham before filing an application. Consulting the relevant mortgage experts will highly pay off as they will be able to guide you on the right path to organise yourself and avoid being disappointed by approaching the wrong lender.
Remember, that all lenders work according to their rules and emphasise borrowers meeting their lending criteria. Some of the requirements in the criteria are tougher to meet than the others and this is what causes many applications to be declined. Here are some of the reasons why an application may be turned down as it does not reside inside the lending policy;
The experience of a specialist mortgage broker in Nottingham can come in handy when selecting the best mortgage plan for you. If you find yourself in any of the above-mentioned situations, its best recommended that you get in touch with a dedicated mortgage advisor to receive support along the process.