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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.

Can I Have Two Mortgages in Nottingham?

Second Mortgage Advice in Nottingham

There are many reasons why someone may want a second or even third mortgage. For example, another mortgage could be used to expand your property portfolio or to help one of your family members to move into a property.

It may be harder to get a second mortgage compared to your first one as you now have two sets of mortgage payments to account for. You will never get your second mortgage application accepted if you cannot afford the costs that will come with a second mortgage.

Can I Have Multiple Mortgage? | MoneymanTV

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:

Second Mortgage to raise money

If you’re more than five years into your mortgage term, it’s likely that you’ve built up some equity in your home. If you have equity in your home, you can withdraw some of it and turn it into cash. This can be done in the form of a second mortgage.

It’s up to you what you do with the money that you’ve raised through the equity in your home. Whether you want to use it for another mortgage deposit or for something else it’s completely up to you.

Releasing equity within your home can be quite a difficult process. We would recommend speaking with a specialist mortgage advisor in Nottingham like us. Our advisors can access competitive second mortgage deals and options through our large panel of lenders.

Second Mortgage to rent out a new property (Buy to Let)

Whether you’re an experienced landlord with current buy to let properties or an aspiring buyer who’s thinking of delving into the depths of the buy to let industry, you’re going to need more than one mortgage. Buy to let landlords with large portfolios will be used to the process of getting more than one mortgage, but if you are just starting off or own a couple, sometimes it can still be best to get buy to let help.

Second mortgages in the form of buy to let work similarly to your current mortgage. You still have to qualify for the mortgage, put down a deposit (usually 15%-25% of the property) and show that you can afford two sets of mortgage payments.

Of course, your mortgage payments should 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 buy to let mortgage advice in Nottingham, feel free to get in touch with our buy to let advisors today.

Second Mortgage to rent out existing home to purchase a new one (Let to Buy)

Otherwise known as a let to buy mortgage, there’s an option to get a second mortgage on a newly purchased home so that you can rent out your current one and live in your new property.

This works in a similar way to buy to let, it’s just the other way around. You’re planning on finding a tenant for your current property so that you can move out. Usually, landlords will build their portfolio this way when they want to move into a bigger home themselves.

Our buy to let mortgage advisors in Nottingham also specialise with let to buy mortgages, so get in touch if you need help with your let to buy second mortgage application.

Second Mortgage to purchase a home for your children/family members

If your children/family members are struggling to get themselves onto the property ladder, you can take out a second mortgage in your name and let them move into the property. If you want to go down this route, it’s likely that you end up with a guarantor mortgage.

Another popular option is to gift a deposit. Gifted deposits can be a great way to help get your close ones onto the property ladder when they are struggling.

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

In some situations, you can be listed on two mortgages. Sometimes it’s unintended, sometimes it was planned.

However, as a mortgage broker in Nottingham, the most common reason we see for people being listed on two mortgages is because of a recent divorce and separation. Unfortunately, it can be hard to remove your own or your ex-partner’s name from a mortgage because both parties have to agree that it’s okay to do so and prove that they will be financially able to afford a mortgage on their own.

If you are trying to get a second mortgage because of the same or similar situation, it may be slightly harder but not impossible. Some lenders will consider your current personal situation and give you a bit of leeway.

If you’re named on an existing mortgage in a home that you’re not living in, it may be best to try and get yourself removed if you can. Being financially linked to someone can sometimes bring your overall credit score down, especially if the other party has bad credit.

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

Renting & Buying Mortgage Advice in Nottingham

First Time Buyer Mortgage Advice in Nottingham

Rent or Buy? | MoneymanTV

So you’ve been living with your parents your whole life and you now think that it’s time to move on and move out. It may sound like a simple answer, but do you rent or do you buy? If you are a First Time Buyer in Nottingham, you need to weigh up the pros and cons of buying or renting and then choose the option that is best for you.

As a Mortgage Broker in Nottingham, we always recommend that you take your time and make a decision that will benefit both your personal and financial situation. If you need help with this, our Mortgage Advisors in Nottingham will happily lend you a hand, we have worked with thousands of First Time Buyers in Nottingham before.

Buying a property in Nottingham

Parents often encourage their children to buy before renting; and depending on your situation, they may be right and it may be the best thing to do. However, there are always both sides to an argument, so it’s always best to do your research before rushing into a purchase deal.

Mortgage payments

When comparing a homeowner’s monthly mortgage payments to a tenant’s monthly rent payments, the homeowners are likely to have less going out each month.

Depending on the mortgage deal that you’ve taken out, your payments may fluctuate from month to month. For example, if you’ve taken out a tracker mortgage, your interest rate will be taken from the Bank of England’s base rate of interest. This rate is likely to change from time to time, which means that your mortgage payments will too.

There are other mortgage products available that won’t change your interest rate, such as a fixed-rate mortgage. If you are on a fixed mortgage rate, your rate stays the same throughout your fixed-term mortgage period.

If you choose to rent over buying, it’s possible that your monthly payments won’t stay the same. You have to remember that your lender has a mortgage too and their interest rate is also likely to increase from time to time. If their mortgage rate increases permanently, you shouldn’t be surprised if they also up your payments. With rising maintenance costs and increasing Buy to Let mortgage rates, it may prove worse off to rent over buying.

Also, you should know that landlords will rarely decrease your rent, the costs only ever seem to go up!

Security

Assuming that you can keep up-to-date with your mortgage payments, you will always have that sense of security when owning a home. No one can force you to move out of your home as you own the property.

As a tenant, you have a little less security in situations where the landlord wants their property back for themselves. At the end of the day, you don’t own the property, so you can’t really argue against their decision. Of course, you won’t be kicked out instantly, you’ll always get a notice period. If your lender is lenient, they may extend the length of your notice period if you have a difficult personal situation. This worry won’t come with owning a home as you own all rights over the property.

Uncertainty

The property market has a tendency to reshuffle things every so often, it’s always a surprise when it happens too. For example, in March 2020, as soon as the lockdown was announced the market went crazy. You really never know when a crash or a boom is around the corner. With this in mind, it’s likely that property prices are going to fluctuate during your time of owning a home. Sometimes they go up, sometimes they go down.

When owning a property during a period of time where property prices go up, this is good when you are selling your home but bad if you are trying to buy one – it works both ways. If you opt for renting over buying, then property prices rise, you may struggle to afford a deposit. This is another reason why buying over renting could end up being the best option for you.

However, you should know that if you are forced to sell your home at the wrong time, it may result in you losing money. You may have to sell your home quickly because of a relationship breakdown, a reduction of income or another personal situation.

Don’t rush into a purchase, get Mortgage Advice in Nottingham

As a Mortgage Broker in Nottingham, we always recommend that you never rush into a property purchase, especially if you are unsure on how the process works and what sort of mortgage that you’ll need. A mortgage is a huge financial commitment and you should only proceed with one if you are completely ready to do so.

If you are unsure on the mortgage process and need an extra helping hand, our Mortgage Advisors in Nottingham will be more than happy to help you. If the question of “Should I rent or buy?” is still on your mind, feel free to have a chat with our team and they will be able to lay out the pros and cons to each side for you.

Mortgage Advice in Nottingham for tenants

Now that you’ve gained further insight into some of the factors that come with buying a home, let’s touch upon what it’s like to rent. Renting could be your best option, it’s down to your personal and financial situation.

Flexibility

Renting is your safest option if you want flexibility. If you look at your long terms plans and can see yourself moving within the next 5-10 years, renting is probably most suited for you. When renting, you are under no obligation to live in the property for a certain amount of time, you can leave whenever you want. For example, you may want to rent so that you have a place to live whilst you save for a deposit for a mortgage. Once you have saved, you can move out whenever you want, you just have to give your landlord your notice.

If you don’t see yourself living in a particular area for very long then it’s worth considering renting as an option. You can be as flexible as you like to when it comes to how long you live in the property for.

Repairs

When you are renting, your landlord should be responsible for any major repairs on the property. There will always be better landlords than others, for example, some may take their time in getting back to you, some may be responsive and very quick at replying. As a Mortgage Broker in Nottingham that has a long history of working with local landlords, we would suggest that you take a look at their reviews before going ahead with one.

You may have to contribute to minor repairs though, for example repairing broken lights. Your landlord will expect you to take care of smaller repairs so that they can focus on the major repairs. In Nottingham, if you choose to buy a home you will have to take care of all of the repairs and damages inside of the property.

Moving Home in Nottingham with a friend(s) / family member?

If you are planning to buy or rent with a friend(s) / family member, as a Mortgage Broker in Nottingham, we would advise that you look at renting first. If you want to avoid getting tangled in a mortgage deal with lots of different people, renting will be best for you.

Getting tied into a mortgage deal with multiple names on it could potentially cause problems for you further down the line if you want to move out of the property. It can sometimes be hard to get your name removed from a mortgage in all situations.

You may need Specialist Mortgage Advice in Nottingham to get the ball rolling with any application with multiple names on it, so you should get in touch with a Mortgage Broker in Nottingham like us. We would love to help you out, so if you are in this situation and you don’t know whether to rent or buy, please get in touch.

Summary – Buying vs Renting

Now that you are aware of some of the different things to consider when choosing whether to rent or buy in Nottingham, you should weigh up your options. Which one will benefit you most? Do you plan on living in the property for a long time?

We even suggest making a pros and cons list, we know that it’s cliché, but it definitely helps!

When it comes down to the numbers, most people choose to buy over rent, they see it as an early opportunity to get themselves onto the property ladder. People would also rather the money go towards their own benefit rather than someone else’s.

If you need more renting vs buying Mortgage Advice in Nottingham, feel free to get in touch with our friendly team today and claim your free mortgage consultation.

A Guide to Remortgages in Nottingham: Top Reasons to Consider

Remortgage Broker in Nottingham

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

Regardless of the path you took, there will eventually come a time when you are reaching the end point of your mortgage term. You could now sell your home and upsize/downsize into a new property. Maybe you are looking at selling your existing portfolio to the tenant or another buyer, with a view to invest in other areas? These aside though, there is one option that remains the most popular, and that option is a Remortgage.

What is a Remortgage?

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

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

Remortgage For Better Interest Rates

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

When your term has come to its end, it is likely that you will be moved along to the lenders Standard Variable Rate (often referred to online just as SVR). To simplify, an SVR is a mortgage with an interest rate that can fluctuate both up & down, depending simply on what the lender wishes to charge. This does not work the same as a tracker mortgage as it does not follow the base rate of the Bank of England.

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

Remortgage For Home Improvements

when you’re around 2-5 years into occupying your home, you may decide that it doesn’t quite feel like you’d hoped. You may be in need of an extra room or larger living space for your kids or personal belongings, a new kitchen, a new office, or a loft conversion of some kind. Rather than move into a larger house, many choose to take the route of releasing their equity with a Remortgage in order to cover the costs of these improvements.

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

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

Remortgage for Changes to Your Term

In many cases, people may simply just choose to Remortgage in Nottingham for a better mortgage term, either by reducing the length of their current term or switching to a product that is more flexible. Reducing the length means that you won’t be paying back your mortgage for as long, so aren’t completely tied down, but this will mean that your monthly mortgage repayments will be a lot higher. The longer your term, the lower the payments will be over the course of said term.

Some prefer to go with a more flexible mortgage term when they Remortgage. The positives that come with this option can prove endearing to some homeowners. You may end up with a chance to overpay, resulting in being able to pay your mortgage off a lot quicker, as well as being able to carry the same mortgage and rates over to another property, should you ever decide that you’d rather move at some point in the future.

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

Equity Release

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.

Remortgage to Consolidate Debt

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.

Experienced Mortgage Advisors in Nottingham – Get in Touch

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

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

What are my options if my Interest-Only Mortgage is ending soon?

Interest-Only Mortgage Advice in Nottingham

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.

What is 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.

Why do people still have these?

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.

If I have an Interest-Only Mortgage, what can I do?

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.

Here are some of the things you could be doing to resolve the issue:

  • If it is affordable, see if the lender can transfer you to a repayment mortgage.
  • Consider selling your home and downsizing if you can.
  • Use any savings you have or get help from family members. Usually, parents will be more than happy to push forward any early inheritance.
  • Speak to a Mortgage Advisor in Nottingham and see if Remortgaging to a new lender in Nottingham.
  • Consider Equity Release/Lifetime Mortgage option through a specialist Advice broker.

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.

Agreement in Principle and Soft Credit Searches

Mortgage Advice in Nottingham

Agreement in Principle and Soft Credit Searches | MoneymanTV

In contemporary settings, the general public are now paying more attention to their credit rating than ever before which makes them reconsider their financial decisions. Consumer awareness of credit scoring appears to be higher than ever before and the majority of people who get in touch with our team appear to have already reviewed their credit report online to get further ahead in the mortgage process.

There are multiple credit reference agencies that are available for a person to utilise. The most common are companies such as Experian or Equifax but we recommend new clients towards Check My File for a 30-day free trial, following this it comes to £14.99 a month but can be cancelled any time. This report offers our clients a collation of information produced in an understandable colour-coded report.

Clients usually ask if our First-Time Buyer Mortgage Advisors in Nottingham will be doing a credit search on them because they are aware that too many searches can have a downward effect on their credit score. Lenders always run credit checks but we make sure our Mortgage Advisors seek out a client’s permission before doing these.

Credit searches from banks come in two forms; hard searches and soft ones.

Credit search Mortgage Advice in Nottingham

What is a hard credit search?

A hard credit search is one where it will offer a more in-depth look into your credit report, if any financial institution carrying out these should prioritise seeking your permission to do this before anything else. The benefit of a ‘hard’ search is that because the lender is looking into your situation closely, if you pass the credit score than your chances of your application being successful will improve drastically. The only thing at that stage that can go wrong is, if, for any reason, you cannot provide evidentiary support of satisfactory documentation to back up the information in which you have disclosed or it turns out that you have provided false details.

The flipside of the benefits is that the hard search leaves a ‘footprint’ on your credit file so that anyone who takes a look at your report can see that it has been carried out. This isn’t necessarily a bad thing but if for example, you have multiple searches included in your credit file in a short period of time then it could be perceived as you are applying for a vast amount of credit at the same time. The search will not state as to whether your application was successful or not but Lenders will sometimes wrongfully assume that you are being declined with the mind frame of “Why else would you go to Lender number 2 unless Lender number 1 had said no?”.

The odd hard footprint on your record is no big deal so this doesn’t give reason to worry too much about it; just take precaution in having too many.

What is a soft credit search?

The other form – a soft credit search – is a ‘lighter’ search which looks at your financial situation and would be the type of search that would be carried out on price comparison websites to let you know what may be available to you, or it could be used to verify your identity. Some Mortgage Lenders carry out soft searches and nowadays, even more lenders seem to be changing to this type of search. Whilst less information is offered to who is carrying out a soft search on you as opposed to what they would receive if it was a Hard search, if you obtain an Agreement in Principle from one of these Lenders, it’s usually still an extremely strong indication that your full application will be accepted.  

One of the most beneficial things about soft searches is that whilst you will be able to see soft searches that have been carried out on you if you check your credit file (people are usually surprised by how many have been carried out on them) these searches are not visible to other Financial institutions like Banks. This means you can apply for an Agreement in Principle for a mortgage without it damaging your credit score irrespective of whether it is successful or not.

If you are going through the thought process of putting forward an offer on a property, our First Time Buyer Mortgage Advisors in Nottingham would recommend having a mortgage agreement in principle in place prior to contacting the Estate Agent and whilst gaining this, you will also have the option to obtain Specialist Mortgage Advice in Nottingham. You want to be able to give yourself the best possible chance of securing the property you want at the lowest possible price so if you present yourselves as having your finances in a good place then you are definitely giving yourself the upper hand in the situation. Being in possession of an Agreement in Principle could also mean that the Agent is put off trying to ‘cross-sell’ their own in-house mortgage services to you.

Mortgage Payment Holidays

Mortgage Advice in Nottingham for Mortgage Payment Holidays

At the start of the Coronavirus pandemic in March 2020, the Government promised that all borrowers would be able to access a three-month mortgage payment holiday if they needed it. Most lenders followed the Government’s guidelines and did their best to help their borrowers during these hard few months.

We have thought carefully about the possibilities of what could happen to your mortgage over the next few months and are working very closely with all of our lenders to ensure that if anything changes, we can inform you right away and recommend the best option for you to take so that you still feel secure and happy with your mortgage.

What is a Mortgage Payment Holiday?

A Mortgage Payment Holiday is an agreement settled between you and your bank, building society, or mortgage lender to put off your monthly mortgage payments for a certain period, in this case, 3-months.

However, the break-in your mortgage payments does not mean you never have to pay the amount back. The interest you defer is re-added onto the loan amount whilst your capital balance will not decrease. Simply put, the mortgage amount will increase a slight amount, and you will continue to attract interest in the overall amount.

When it comes to being ready and able to pay your mortgage payments again, your monthly payments could then get recalculated at a slightly higher level or your mortgage term increased. Most lenders would prefer the first option as with some borrowers, and it could take them over retirement age.

Depending on the conditions included in your mortgage deal, you may be able to pay off a lump sum at some point down the line to help you get back to speed with where your mortgage originally would have been.

Mortgage Payment Holidays are available both for those with residential or Buy to Let in Nottingham mortgages, which means landlords also have assistance if rental payments are affected.

What is the Government Proposal?

  • Mortgage lenders will offer an automatic 3-month mortgage payment holiday for customers who are affected, whether it be directly or indirectly, by COVID-19.
  • The mortgage payment holiday will apply to customers who are up to date on their payments, not in arrears, and wanting to self-certify that COVID-19 impacts them
  • In any case, this means that there will be no need for lenders to complete or reassess an income and expenditure assessment or an assessment of alternate payment options as ordinarily required under MCOB.
  • This proposal will allow lenders to be more responsive to customer needs and offer relief in a simple way to customers which is quick and effective if Covid-19 has impacted them.
  • Lenders will make it apparent to customers that interest will accrue in the holiday period, and this will need to be made up.
  • Customers who wish to undertake a full assessment of their ability to pay or financial difficulty may still do so if they feel the need.

Mortgage Payment Holidays: How do I apply?

When reviewing your Mortgage Payment Holiday, we would recommend speaking to a Mortgage Advisor in Nottingham in the first instance rather than instantly looking to undergo a mortgage payment holiday.

Suppose there is not a pressing need to do so as Lenders will be prioritising the most urgent cases first. By approaching our Mortgage Broker in Nottingham, we will be able to talk through your circumstances and look at all options available for your situation.

For a customer, up to date with payments, not in arrears and impacted by COVID-19:

  • the customer would have to contact the lender and inform them of their situation, e.g. that COVID-19 affects them
  • the lender would accept these details from the customer and offer the automatic 3-month mortgage payment holiday that is applicable.
  • No evidence will have to get retrieved from the customer.
  • The lender highlights that interest will accrue and the customer will be contacted at the end of the three months to complete an assessment of the customer’s circumstances.
  • The lender will know that if the customer wished to complete a full assessment now, there might be other forbearance options more suitable to the customer.

At the end of three months, an arrangement to pay will get agreed with the customer. According to their circumstances to recover any shortfall that has possibly occurred. At the same time, ensuring that the mortgage remains affordable and sustainable for the customer.

Mortgage Payment Holidays – What does this mean for my credit score?

When mortgage payment holidays get carried out, they show on your credit score as a negative impact, but most lenders have now stated that any cases linked to the virus will mean that this does not apply in the current scenario.

When looking into the matter, it is an important reminder that you ask the question directly to your lender and makes a note of the response. Keeping a record of the name of the person you are speaking to and the date of the enquiry. In any case, this will avoid any possible confusion down the line as different lenders are carrying out other things.

Will I still be able to remortgage or take a product transfer with my lender?

The matter of remortgaging and product transfer have come to be quite controversial elements at this moment in time. There has been apparent evidence suggesting that lenders are asking borrowers not to make any unnecessary changes to their mortgages whilst within the current situation.

However, Lenders are not allowing these to happen during this time. However, borrowers who are near the end of their existing product might have to move on to the higher lenders variable rate.

In any case, this could perhaps mean to many borrowers acting too early will find themselves on a mortgage payment holiday that gathers interest on an even more expensive variable rate which could get avoided.

Our Mortgage Broker in Nottingham team highly recommend speaking to a Mortgage Advisor in Nottingham before you take any further action to see what the safest option would be, and the most sensible way forward.

I have exchanged contracts – can I complete my purchase?

Whilst the Government has advised people not to move to a new house unless necessary. So, if contracts have already gotten exchanged and the process is at the end with all in agreement, then going ahead and completing the purchase will be fine.

Should I pull out of my purchase?

It would help if you did not pull out of your purchase unless, for example, you are worried about losing your job because of Coronavirus. Our Mortgage Advisors in Nottingham are advising everyone to proceed as usual for now and “wait and see” – you are not committed to completing your purchase until contracts get exchanged.

What “other options” are available?

There are other options available, where some lenders are willing to offer ‘interest-only’, which will help reduce monthly payments drastically but not to add any increase to the loan amount by still servicing the interest payments each month.

It may not get deemed necessary to convert all your mortgage to interest-only and even putting part of the mortgage on this basis could help relieve some tension in your mortgage payments.

To borrowers who hold savings may find that remortgaging onto an offset basis may give them some more structured support as this will reduce monthly payments whilst their savings remain untouched.

An example of this for individual borrowers who may not understand offset mortgages would be as followed:

– Someone with a £400,000 loan and £100,000 in savings would only pay interest on £300,000 reducing their payments accordingly.

For others, a straight Remortgage in Nottingham to another lender could offer some relief. By calculating the cost of any Early Repayment Charges that may get incurred. It may well be enough to ease the burden or simply extending the term of your mortgage, which could be seen as helpful if you are struggling with your mortgage term or monthly payments.

Suppose you would like to discuss any of these options with a Mortgage Broker in Nottingham or to have a helpful chat about your current situation. Please get in touch with a Mortgage Advisor in Nottingham.

Specialist Mortgage Advice in Nottingham

Buying as a Sitting Tenant in Nottingham

Sitting tenant Mortgage Advice in Nottingham

Tenants often phone us regarding Specialist Mortgage Advice in Nottingham because their landlords are selling their investment property. This is where we are able to offer security because we know it is easier for a Landlord to reach out to a tenant and put forward the option to buy rather than to go straight to the open market.

Why is my landlord selling their investment property?

A while back the Government clamped down on some tax reliefs which helped Landlord expenses. This means that more tax is now being paid out leading to landlords thinking ahead and turning over their investments.

Although, whether the property is sold depends entirely on the landlords. Some amateur landlords will choose the viable option to sell straight away, but more serious landlords will see it as a long-term arrangement and will roll with the legislative changes put in place because it is seen as an investment.

Is it beneficial for landlords to sell to sitting tenants?

There are various beneficial reasons as to why a Landlord might prefer to sell to a current tenant.

  1. Money is saved by your landlord because of no third-party involvement such as Estate Agents.
  2. A property may take some time to sell, during which time your landlord could have had the possibility of still gaining money if they still had a tenant in. If you’re still residing in the property, they’re still gaining an income.
  3. If you move out then the Landlord will have to refurbish and make the property ready for sale to attract new potential buyers.

As well as there being positive reasons for the Landlord, there are also positive reasons for the tenant to considering buying:

  1. You know the property, so you already have it to fit your taste.
  2.  You will have extra security by already being in the property and the whole process can be finalised more quickly.

All the advantages above are also reasons which would go towards the possibility of the landlord offering you a reasonable discounted price – this is known as a ‘Sale Under Value’.

Some Lenders will allow any discount the Landlord is offering to you as part/all of your deposit. If the agreed price is well below the open market value it may even lead to a tenant saving on putting down a deposit at all meaning the tenant is even better off. For more information get in touch for Specialist Mortgage Advice in Nottingham.

Specialist Mortgage Advice in Nottingham

Stamp Duty Holiday Introduced

Stamp Duty Mortgage Advice in Nottingham

What’s Happening With 90% Mortgages? | MoneymanTV

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:

First Time Buyers

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.

Home Movers

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.

But To Let Investors/Additional Homes

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.

Nottinghammoneyman.com & Nottinghammoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
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