Congratulations are in order! The hard work has paid off and you have recently passed your exams, becoming a newly qualified teacher.
From here you have found yourself a teaching position and are understandably very excited to get started in the classroom. The catch here, is that this start to your career also requires you to move to Nottingham.
Times are now equal parts exciting and stressful for you, as you now begin struggling to balance owning your own home s well as starting your brand new job role. Worry not, you are definitely not the only one to have been in this situation.
Finding a lender that is actually willing to offer a mortgage to someone who has become a newly qualified teacher can be a bit tricky. This comes down to a lack of work history or having temporary contracts, to name a few reasons.
Even still, it’s important to remember that with some care from a mortgage advisor in Nottingham searching for the right lender, you may still be able to obtain a mortgage.
There are indeed lenders out there who will lend to someone who is newly qualified, with some even potentially offering reasonable deals to those working within the education sector.
The tricky part is trying to navigate around the various mortgage lenders and finding one that you match up with the criteria of.
This is the benefit of working with a trusted team of mortgage advisors in Nottingham who will be able to search over thousands of deals on your behalf. It’s our hope that in doing so, we’ll open you up to better deals and rates.
The different types of mortgage available for NQTs can include:
The benefits of speaking with a fast and friendly mortgage broker in Nottingham.
Here are some of the critical factors that can be taken into consideration:
Our experienced mortgage advisors in Nottingham are extremely familiar with the workings of various lending criteria, utilising their many years of experience to help our customers with their mortgage circumstances.
Get in touch with us today to see what options you have available to you. Our dedicated team will take some details from you, using this information to work hard and see if we can get a mortgage suitable to your individual circumstances.
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.
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.
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.
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.
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.
When it comes to looking at applying for a mortgage, we find that it is common for most applicants in relationships to look at making a joint mortgage application rather than making a single application for a mortgage under their sole name.
With property prices ever-increasing over the years, as well as inflation outstripping the increases in wages, we find that in most instances, a couple of first time buyers in Nottingham with two salaries are usually required in order to obtain a large enough mortgage that covers what the buyers are looking to achieve.
That being said, sometimes there are circumstances that arise which may allow for a sole name to apply for a mortgage. Sometimes this may be down to one of the applicants not wanting to have their name tied to the mortgage in question.
It may possibly be that they have had a previous credit problem, say for example a bankruptcy or a County Court Judgement, which is stopping them from getting a mortgage at the moment.
When something like this arises, so long as the spouse or partner has no financial connection to that issue, they could apply for the mortgage in their sole name.
That person should also be careful to try and avoid creating a financial association with their partner, in order to protect their credit score from any future harm.
Another example we see from customers is where one of the partners is currently out of work, be that by choice or something else. Generally the rule of thumb is that the maximum borrowing capacity for a couple with only one employed applicant, is lower than if the working applicant applied for a mortgage in their sole name.
This is quite a common occurance amongst the mortgage world. Age can also be factored into the calculation, if you have an applicant who is maybe older, say in their 50s or so.
As an example of how this applies to your mortgage, if you are buying with a younger partner who also has a well paying job, it is entirely possible that they could have access to a higher mortgage.
There may also potentially be stamp duty or other tax implications that could lead to an applicant potentially looking to apply for the mortgage in their sole name as well.
There are lenders that tend to have pretty strict criteria when it comes to married mortgage applications, as it will be taken out with two interconnected applicants.
Whilst it provides them with security, should they need to chase for payments, it also brings complications if something were to go wrong, such as a divorce.
Thankfully, not all lenders will share this rather prejudicial view. Bearing all we have touched upon in mind, our experienced specialist mortgage advice team in Nottingham will be here to help you from early until late, all throughout the 7 days of the week.
We’re proud of the service we have provided thousands of home buyers and homeowners alike, so would love to help you get started with your mortgage journey!
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.
As a mortgage broker in Nottingham, we’ve seen people apply for a second mortgage for lots of reasons:
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.
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.
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.
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.
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.
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.
A County Court Judgment (CCJ) is a court order in the UK that might get registered against you should you fail to repay the money that you owe. CCJ’s can negatively affect your ability to get a mortgage. However, good news, with the help of a Specialist Mortgage Broker in Nottingham we may be able to help you.
Your Mortgage Advisor will discuss the following with you in order to recommend the best mortgage for you with you’re CCJ:
🏠 The number of CCJ’s registered.
🏠 Amount of the CCJ.
🏠 Settled or unsettled.
🏠 Deposit size.
🏠 Date registered.
A County Court Judgement is issued if you fail to pay any outstanding money that you owe. A CCJ can have severe effects on your odds of getting a mortgage.
An unsettled CCJ will eventually disappear from your credit file after six years, however, it may be possible, with enough deposit, to get a mortgage within this time. Here we will explain how a CCJ affects your mortgage chances and how to get on the property ladder if you have Bad Credit in Nottingham.
Unless the claim got proved to be false or you paid the debt within 30 days, it might not appear on your credit history. However, if you failed to pay within 30 days, things become more arduous, but you are open to some options.
If the CCJ was recent and expensive, this could lower the chance of lenders willing to give you a mortgage. A CCJ often accompanies other credit problems stopping you from getting a mortgage.
🏠 Any issues involving money owed to a mortgage provider?
🏠 Did it affect the property?
🏠 Was the CCJ brought because you poorly managed your finances over an extended period?
This could help improve your chances: having a regular income, a clear credit history since the CCJ, getting CCJ settled or paying off a CCJ.
A growing number of lenders cater to applicants with CCJs, but the essential factor is how long ago the CCJ was. Going to an expert Mortgage Broker in Nottingham will be crucial. They can try and match you with the right deal if you suffer from a CCJ.
If you want to dispute a CCJ and want to re-open the case against you, you will need to make sure that you can supply enough evidence as to why you shouldn’t have been issued a CCJ in the first place. You can appeal to the CCJ by completing an N244 form. The fee will be pretty significant for them to re-open your case, however, if the court agrees that you shouldn’t have been issued the CCJ, it will be removed from the Register altogether.
Any CCJ longer than six years ago would have gotten removed. It would help increase your chances of passing a lenders criteria if your CCJ was more than four years old than one within the past year or two.
Each lender looks at CCJs differently. One lender might look at only when the CCJ was issued. Others will focus on when it got settled or if it got settled at all.
You need to prove it got paid within 30 days of being issued if it’s been over six years since you received the CCJ and successfully disputed it, or another party was proven responsible for it.
If you never received the CCJ initially and appeared on your file, you need to contact the court where the CCJ got made. You need to contact each of the credit reference agencies and get a ‘notice of correction’ added to your credit report.
You need to make sure you keep up to date payments on your CCJ and other credit agreements. If you think you might miss a payment, you need to contact the lender as quickly as possible and discuss your options.
Minimise applications for new credit, check your credit report and make sure all details are up-to-date. Check out our handy How to Improve Your Credit Score in Nottingham guide for further information.
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.
The mortgage journey has its fair share of both ups and downs, but at the end of it all, you will end up with one of the following: either a potential future family home, a property that will be able to propel you further up the ladder or an investment purchase that can be used as an extra source of income.
Regardless of the path you took, there will eventually come a time when you are reaching the end point of your mortgage term. You could now sell your home and upsize/downsize into a new property. Maybe you are looking at selling your existing portfolio to the tenant or another buyer, with a view to invest in other areas? These aside though, there is one option that remains the most popular, and that option is a Remortgage.
First of all, let’s look at what exactly this means. A Remortgage is where you utilise the loan from a new mortgage to pay off your current ongoing mortgage. There are a large variety of different options when taking out a Remortgage, varying in scale of importance from minor to major.
By using the 20 years or so knowledge of our resident “Moneyman” Malcolm Davidson (host of our YouTube channel MoneymanTV), we worked hard to put together a quick guide regarding all the options you could have when it comes to taking out a Remortgage at the end of your term.
Generally speaking, your initial mortgage deal will normally last somewhere within the realms of 2-5 years, featuring low fixed rates or possibly discounted rates. Depending on your circumstances, you may even be placed on a tracker mortgage, a mortgage type that follows the Bank of England’s base rate.
When your term has come to its end, it is likely that you will be moved along to the lenders Standard Variable Rate (often referred to online just as SVR). To simplify, an SVR is a mortgage with an interest rate that can fluctuate both up & down, depending simply on what the lender wishes to charge. This does not work the same as a tracker mortgage as it does not follow the base rate of the Bank of England.
Because of this, these types of mortgages are usually the most expensive paths to take, leaving many with a preference in looking at Remortgaging for better rates, an act which will hopefully save you money on your monthly repayments down the line.
when you’re around 2-5 years into occupying your home, you may decide that it doesn’t quite feel like you’d hoped. You may be in need of an extra room or larger living space for your kids or personal belongings, a new kitchen, a new office, or a loft conversion of some kind. Rather than move into a larger house, many choose to take the route of releasing their equity with a Remortgage in order to cover the costs of these improvements.
Though the idea of having to obtain planning permission and fund/manage your own project may seem scary at first, some would argue it’s a lot less stressful and more rewarding than the process of selling your home, and finding and moving to a new one.
In the future this may prove to be quite a beneficial situation, as creating more space and having good quality craftsmanship will likely increase the value of your property. This is of course very useful for if you’d like to sell the property later down the line.
In many cases, people may simply just choose to Remortgage in Nottingham for a better mortgage term, either by reducing the length of their current term or switching to a product that is more flexible. Reducing the length means that you won’t be paying back your mortgage for as long, so aren’t completely tied down, but this will mean that your monthly mortgage repayments will be a lot higher. The longer your term, the lower the payments will be over the course of said term.
Some prefer to go with a more flexible mortgage term when they Remortgage. The positives that come with this option can prove endearing to some homeowners. You may end up with a chance to overpay, resulting in being able to pay your mortgage off a lot quicker, as well as being able to carry the same mortgage and rates over to another property, should you ever decide that you’d rather move at some point in the future.
Though a flexible mortgage sounds like it’s the most ideal situation to be in as a homeowner, they usually come in the form of a tracker mortgage. As mentioned previously, this follows the Bank of England base rate, meaning one month your payments could change both positively and negatively, based on interest. Some homeowners feel this is too unreliable for their liking.
Every homeowner has some level of equity in their property. The way this is worked out is by calculating the difference between what is still owed on the mortgage and the current value of the property. Further onto a previously mentioned point, this can be used for home improvements, however there are still an array of mortgage options available for you.
Some use the equity in their home to cover long-term care costs, to supplement their income, to have themselves a well deserved holiday, to pay off an interest-only mortgage or to have a surplus of extra cash to do whatever they’d like with.
We often find that Buy-to-Let landlords will use Equity Release as a means of covering their deposit for buying any properties in the future to add to their existing portfolio.
Another topic relating to the aforementioned topic of Equity Release, is utilising the existing equity in the property to pay off any unsecured debts you may have accrued over time.
Though it may seem like an easy enough task, Debt Consolidation not only bases the amount on how much you’re owed and the value of the property, but also how good or bad your credit rating currently is. This could mean you are only able to borrow a limited amount.
Furthermore, to pay off your previous mortgage and your debts, you will need to borrow a higher amount than your outstanding mortgage amount. This means your monthly repayments will probably be higher than you’d have initially liked. Though not an ideal situation, at least you can rest assured that should you find yourself struggling, a mortgage broker may be able to help you get back on track.
Should you find yourself with a particularly damaged credit rating, there are still some options to choose from, though these will be no easy feat and require very Specialist Remortgage Advice in Nottingham before proceeding with your process. Even then, there is no guarantee things will go the way you’d like them to.
You should always look to gain mortgage advice before choosing to consolidate and secure any debts against your own property.
If you are reaching the end point of your current mortgage term and are wondering what your option may be for Remortgaging, please feel free to Get in Touch with an fast and friendly mortgage broker in Nottingham.
A dedicated and experienced advisor will be able to discuss your circumstances and future goals, helping you create a plan of action for your next step of your home owning and mortgage journey. We always aim to ensure this time around is a quicker and smoother process than your first mortgage.
This helpful scheme was first introduced in 2014, not long after the success of the Help to Buy Equity Loan scheme. Before deciding whether the scheme would stick around or not, it undertook a 3 year pilot. This pilot went extremely well so the Government chose to keep the scheme up and running until December 2022 where it will receive a review. Hopefully this great scheme sticks around for the foreseeable future.
The scheme’s aim is to assist regular armed forces personnel get themselves onto the property ladder. If you are struggling to get the ball rolling with your mortgage application, this scheme could be for you.
The Forces Help to Buy scheme allows servicemen and servicewomen to borrow up to 50% of their salary, interest-free, to buy their first home or move to another property on assignment or as their family need a change. There is a low rate of homeownership amongst the armed forces, this scheme was brought forward to try and help this rate rise.
Please click here to the Government site for more information.
Here are the requirements for accessing the Help to Buy scheme:
As an experienced Mortgage Broker in Nottingham, we have come across scenarios where the applicant hasn’t met the required categories yet has still accessed the scheme. This does sometimes happen and medical factors or personal circumstances may come into play.
You can borrow up to 50% of your annual salary, however, this total is capped at £25,000. As a Mortgage Broker in Nottingham, we usually see that this amount will be put towards the deposit. You can use this sum for other things though, we’ve seen applicants use it to cover estate agency and solicitor fees.
In order to apply for the Armed Forces Help to Buy scheme, you’ll need to use the Joint Personnel Administration system. Once you have found your way there you can seek advice on your application through your Chain of Command and personnel agency.
If you are looking to purchase a home through a different method, you can always take a look at other Help to Buy Mortgage schemes available or you could take the traditional mortgage route, it’s completely up to you!
If you are unsure about what you are after and what is available, you should take advantage of our free mortgage consultation. Get in touch with your Help to Buy Mortgage Advisor in Nottingham.