When we face a client with a complex mortgage situation, we continuously try our best to get by it, aiming to secure our client a tailored mortgage deal.
As a mortgage broker in Nottingham, we would always recommend seeking professional advice from qualified mortgage advisors like us. As we can apply our knowledge to help overcome most mortgage hurdles for our customers, there is rarely a situation that we haven’t come across before.
Whether you’re a first time buyer in Nottingham, a home mover in Nottingham or a buy-to-let landlord in Nottingham, we think that you would find our mortgage advice service extremely beneficial.
One of the hurdles that come with getting a mortgage is passing a lenders credit score. Every lender has unique lending criteria that you need to match to get accepted by them for a mortgage. Every lender is likely to have very different standards from one another.
We often find that people don’t realise that lenders have these individual criteria. The more lenders you approach that carry out a credit search, the more likely it is that you will get declined. That’s why we always recommend not to rush anything and always know what you are applying before you go ahead.
To pass a lender’s strict lending criteria, you often require a high credit score; otherwise, it may not match what the lenders want. Having a low credit score could be down to numerous things, and sometimes the only way to continue up the property ladder is to try and improve your credit score. In some cases, it’s relatively easy to improve, just time-consuming.
Your credit score is critical, so if you are worried about your score, you should consider checking your credit file. We hope this can help! Take a look at Check My File for more details and a free 30-day trial.
When you apply for a mortgage, your lender will either perform a soft or hard credit search. Soft credit searches will give the lender basic information and will have little impact on your credit score. On the other hand, if they perform a hard credit search, they will get a more in-depth view of your file, leaving a more significant imprint on it.
If you struggle to find a better remortgage deal or don’t want to shop around, you can always try a mortgage broker in Nottingham like us. We will sort out everything for you and search through 1000’s of remortgage deals to try and find you the best mortgage deal, saving you time and money; for a more tailored answer, get in touch and speak with one of our advisors for a free remortgage consultation today.
If you are struggling to get a mortgage and want some help from an expert Mortgage Advisor in Nottingham, we are always here to offer a friendly helping hand. We know that it can be a complex and often stressful process, and that’s why we want to help you.
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.
What is a credit score? A credit score is a number that ranges between 300-800 that represents a person’s creditworthiness.
Your credit score will be used to calculate your affordability for a mortgage, loan, credit card, etc. Your score will be listed on your credit file, so anyone that does a credit search on you will be able to see your score.
As a Mortgage Broker in Nottingham, we come across applicants in all different kinds of credit situations, some more specialist than others. There are lots of different reasons why your credit score may be low, some reasons are more common than you would realise.
We’ve seen a lot of customers suffering from a county court judgement (CCJ), a CCJ can severely impact your credit rating. If you fail to pay back a loan/lent money, you’ll be issued with a CCJ that won’t disappear from your credit file for 6 years or more. This is why we always recommend that you pay off your debt before applying for credit; your lender will be able to see your ongoing finances and balances left to pay off. If a CCJ pops up during a credit search on your file, you will undoubtedly start getting asked questions.
Little things can cause damage too. For example, if you fail to keep up with your mobile phone contract payments and you end up with frequent bounced direct debits, your score will get harmed. Any sort of missed payments and bounced direct debits will appear badly on your credit file.
Even dipping into your overdraft every month could cause long term damage to your credit, without you even knowing. Your lender needs to know that you can manage your finances and not overspend. A lender will never accept an applicant who never has any money remaining at the end of the month, they need to know you have enough for your monthly payments.
This is just mentioning a few things that could negatively impact your credit rating, there are lots of other reasons why your credit score may be lower; some factors will cause more damage than others too. If you have a bad credit score and need some tips on how to improve it, feel free to get in touch with our team for Specialist Mortgage Advice in Nottingham. Whether you are a First Time Buyer in Nottingham, Home Mover or Self Employed, we are sure that you’ll benefit from our mortgage services.
Trying to improve your credit score can be hard, but hopefully, with the help of this handy guide, you can be nudged in the right direction towards improvement. You should know that every lender has different lending criteria, so you’ll never qualify for every mortgage deal, no matter how high your score is.
This means that you may still be able to access some specialist deals, even if you have a low score. Every lender and their criteria are different, so look out for their requirements before submitting your application. If you need help in finding a competitive mortgage product, speak to your Mortgage Broker in Nottingham today and we can recommend the best deal for you based on your personal and financial situation.
Multiple credit searches can have adverse effects on your credit score. Be careful when using price comparison websites that are known to be major culprits of credit searching on individuals. If you are applying for a mortgage soon it may be wise to apply for additional credit afterwards. Whilst having some credit and paying it back is a good thing for your score in the long run. Lenders prefer to see you leverage your borrowings right before setting up a mortgage application.
Making sure you’re enlisted on the electoral roll really increases your credit score. It indicates stability which lenders like. Ensure your name is spelt correctly and that it’s your current address which is registered online. If you aren’t registered, it’s straightforward and easy enough to do this online.
If you max out your card each month, your score will be reduced. Using a credit card to keep on top of your payments each month is a preferred method. This will be a good indicator to your lender that you are good at managing your money. The main red flag in a lenders eyes is if you exceed an agreed card limit or overdraft. The reason lenders watch over this is because they want to know you’re able to take your finances responsibly.
Sometimes it can be perceived on your credit report that you are living in two places at the same time if providers have yet to be told that you have moved houses. It is pivotal that the addresses which you’re updating are spelt correctly; If you have been residing in a flat this can be a bit more complex as the address can be formatted in different ways.
If you no longer use certain store/credit cards you should get into contact with the providers to close the account for extra security. In the short term, this could be seen as having a brief impact on your score as the lender can’t tell who’s closing the account e.g. you or the provider but this will be for the better and an advantage to you in the long run. This is a good thing to do to reduce your chance of becoming a victim of fraud if you don’t notice you have a lost a card that you may use regularly.
Having family members or ex-partners connected to you financially could mean that they’re affecting your credit score unknowingly. Although you won’t be able to get the financial association removed if the account is still active though. To remove the links between you and another individual you should contact the reference agencies and make a request. The sooner you do this, the more beneficial it will be.
Many consumers feel that credit scoring is an unfair way of applications being assessed though lenders themselves are indifferent to this idea as it makes their overall job easier. It is more cost-effective for them to operate this way and computers give more consistent outcomes. On the other hand, some lenders do still do it the old-fashioned way but still apply the same rules about the number of defaults and CCJ’s they will allow.
When setting up your application, be sure your report is up to date to increase your chances of being accepted the first time. The more in-depth information which your Specialist Mortgage Advisor in Nottingham has at hand, the better.
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.
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.
When lenders ask for your bank statements, they will be looking for many different things. However, their main objective is to assess whether or not you are able to manage your money responsibly and is likely to keep up to date with their mortgage payments. In recent months, one question is being asked by applicants quite a lot: “do gambling transactions look bad on my bank statements”.
Regardless of whether you use casino and bingo sites online or take a stab at The Grand National every year, there is nothing illegal about properly licensed gambling. Many of the “bookies” as they’re affectionately known, advertise on mainstream TV and radio. To many, gambling is simply a hobby or pastime similar.
However, it shouldn’t be forgotten that even the gambling advertisers urge customers to “please gamble responsibly” and it is something highly important to remember when applying for a mortgage. Whilst it’s not up to the lender to tell you how to live your life, how to spend your money or indeed to moralise on the ethical rights and wrongs of gambling, they do have a duty (underscored by mortgage regulation) to lend responsibly to their customers.
If lenders need to prove to the regulators that they are being careful with their lending decisions, it isn’t entirely unreasonable of them to expect the people they lend to, to also be careful when it comes to their personal finances. Give it some thought; If you were lending your own money, would you lend it to the applicant who gambles recklessly or someone who is sensible?
Having the odd gambling transaction on your bank statements doesn’t automatically mean you will be declined for a mortgage. That being said, the lender will consider whether these transactions are reasonable and also responsible. They will especially look at the frequency of these transactions, the size of the transactions in relation to the person’s income and the impact it has had on your account balance.
If these transactions don’t happen to often, are not large amounts of money and make no significant impact on a regular credit bank balance, then they are not likely to be regarded as important. However, if you bet money frequently or you are constantly overdrawn, the lender is more than likely going to see that as being irresponsible and decline your mortgage application.
As discussed, lenders are looking at your bank statements to show how you manage your money and to help them determine whether or not you are financially stable or the evidence that you are not.
Remember, lenders are financial institutions that, either directly or as part of a wider group, tend to sell current accounts, overdraft facilities credit cards and personal loans. You must understand that these things can all play an important role in financial planning. The key for a mortgage applicant is how these facilities are all managed.
For example, having an overdraft facility and occasionally using it, is not necessarily a bad thing, whereas regularly exceeding the overdraft limit is not so good. With this in mind, lenders will look for excess overdraft fees or returned direct debits because these would normally show that the account is not being handled the best way by the customer.
Other things to look out for include credit transactions from payday loan companies; “undisclosed” loan repayments (i.e. if you said on the application that you have no other loans but there appear to be regular loan payments, this could be a problem); they would look out for any obvious missed payments; finally, they might also consider how much of a typical month is spent overdrawn – i.e. if you only just go into credit on payday and for the rest of the month are overdrawn, how sustainable is this mortgage?
The smart answer is, if possible, plan ahead. Generally speaking, a bank would ask for up to three months of your most recent bank statements. These will show your salary credits and all your regular bill payments. If you feel like you want to apply for a mortgage in the near future, try to make sure that you avoid anything that could harm your chances. Take a break from gambling for a short while and work on presenting your bank account in the best way you can.
As someone who provides expert mortgage advice in Nottingham, our team may be able to help you, as there are some lenders who may ask for fewer bank statements than others. Some may not even ask for them at all. However even these lenders would reserve the right to request bank statements in certain circumstances, so your best port of call is to be as smart as you can be ahead of making any mortgage application. Remember, if you do gamble, please gamble responsibly!
If you are a First Time Buyer in Nottingham who doesn’t know a lot about mortgages, you should definitely get some Specialist Mortgage Advice in Nottingham from a trusted Mortgage Advisor. They will guide you through the whole mortgage process and help you with your application and get you on track with your finances.
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.
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.
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.
Property inflation has outstripped wage increases over the years. In contemporary settings, to be able to afford a property, especially as a First Time Buyer in Nottingham that they wish to purchase, a person may have to buy with someone else.
The reason for this is affordability and lenders will be calculating two incomes to figure out the maximum mortgage amount. Of course, the mortgage will be more affordable between two people because there is someone to share the costs.
Some lenders allow up to four people jointly co-own a property. With regards to one borrower stopping their contributions to mortgage payments, any joint owners still hold a legal right to stay within their home unless a court rules otherwise. Therefore, you need to be very selective about whom you buy.
If a person wishes to increase the mortgage in the future, then all borrowers need to consent. So it’s best to plan for down the line just for in case someone wants to opt for a different route or situations change.
It is familiar with couples who are married, or in civil partnerships, to go for the option of Joint Tenancy. In the occasion of one passing away, then the property will have the other owner on the mortgage. If you have taken out Mortgage Life Insurance, the mortgage would be repaid at that point also. Though, you will need the consent of the other applicant if you want to sell or remortgage the property in the future.
Tenants in common get chosen by relatives or friends that choose to buy together. You will still jointly own the property, but you cannot get forced to do so in equal shares. In any case, this works out best if one party is making an immense financial input than the other. Additionally, you can act by yourself if you are a tenant in common. From this, you’re able to perform individually and can freely sell or give away your share of the property to someone else.
All mortgage borrowers are jointly and severally liable for the upkeep of the mortgage payments. If one of the party stops paying, then all have to make up for the shortfall to prevent possible mortgage arrears.
It’s essential to eradicate this dilemma as early as possible as falling into arrears could stop you from getting another mortgage in the future. The best way to view your mortgage situation is to view it as you don’t own 50% of a property, you own 100% of it jointly.
Removing someone from a mortgage can be very challenging as Lenders need to be thorough and confident that a person can afford the mortgage payments on their own before allowing this. No-one who applies for a mortgage with another person. Does so with the intention of things not working out, but unfortunately, it does sometimes happen.
Therefore it is essential to remember how big of a financial commitment getting a mortgage is and how challenging it is to make changes further down the line. You will have to decide whether you are going to be moving house in Nottingham or whether your ex-partner is.
Even if you can show that you have been upkeeping payments since your ex has moved out. It doesn’t guarantee that a Lender will agree to your request to have the mortgage put into a sole name. Lenders prefer the idea of there being two people to pursue in the event of arrears occurring. If a Lender had to remove someone from a Mortgage it would mean that they would have to carry out a brand new affordability assessment. The same process they would have to do at the original point of purchase.
If the event rises that a Lender declines your request for a Sole Name Mortgage, then a Mortgage Advisor in Nottingham will be able to help. Helping you see if there are any other Lenders available to agree to your request and transfer the mortgage into your name.
An alternative option for this would be to ask close relatives to see if they can help out. Ways in which they can do this would find methods such as replacing an ex-partner on your mortgage or by gifting you a lump sum to reduce the amount owed.
If by chance, you and your partner do split up and leave the property you remain responsible for mortgage payments. Even if it’s in an agreement between you and your ex that they will make all the payments.
If you are sending your partner money each month, you should keep an eye on your credit report. To help ensure that they are paying the mortgage because if they default it will impact your score.
Are you still connected to an old mortgage? Then the payments for that will be taken into account if you are looking towards buying a new home and ultimately.
Lenders might not Lend as much as you might like. Buying a home with anyone is a risk to it’s best that you plan for as many outcomes as possible. Unquestionably it’ll be impossible to prepare for all scenarios as there are too many factors and variables.
However, if you do fall into hardships. Then a Mortgage Advisor in Nottingham is always on hand to help and offer Mortgage Advice in Nottingham.
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.
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.
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:
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.
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.
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.
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.
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.
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.