Embarking on a mortgage journey can feel overwhelming, especially for first time buyers in Beverley or those looking to move or invest in property. With numerous options available, it’s crucial to make informed decisions from the start to save time and costs down the line.
At our company, we offer a personalised and friendly service, catering to your specific mortgage needs. We understand the complexities of the process and have the expertise to guide you through it. Our team is dedicated to providing expert mortgage advice in Beverley, assisting both new and existing customers.
In this article, we’ve compiled a comprehensive overview of the advantages and disadvantages of working with a mortgage broker in Beverley. Discover why many people trust us for their mortgage advice needs in Beverley and benefit from our knowledge and guidance.
While some believe that finding a mortgage deal on their own will save them money, the reality is more nuanced, especially when it comes to a mortgage broker in Beverley. While brokers may charge a fee, the actual cost depends on individual circumstances and the chosen company.
If you have extensive knowledge and a straightforward case, going direct might be easier and more cost-effective. For more complex situations or if you lack knowledge in the mortgage market, seeking the assistance of a mortgage broker in Beverley can prove invaluable.
Without proper knowledge, you run the risk of choosing the wrong deal or facing a rejected mortgage application. Both scenarios can lead to increased expenses or negatively impact your credit score, affecting future mortgage prospects.
With a dedicated mortgage advisor in Beverley, their primary goal is to help you achieve your mortgage goals. They strive to provide the right recommendation the first time, at the best price. While there may be a service fee involved, the potential savings in the long run can outweigh the costs.
In the past, many customers preferred approaching their banks directly out of loyalty and familiarity with the traditional way of conducting the mortgage process.
Back then, customers would visit their local branch and often interact with the same bank manager, benefiting from their expertise and personal knowledge of their financial situation.
Previously, having the bank manager personally review and approve your mortgage application was seen as advantageous, as they possessed a deep understanding of your finances.
With the advent of technology and online banking, the mortgage process has undergone significant changes, particularly with the introduction of digital credit scoring.
Nowadays, the bank manager does not manually assess each case. Instead, a sophisticated online system evaluates your eligibility for a mortgage. This process is standardised and applies uniformly across banks, ensuring fairness regardless of the institution you choose.
The focus has shifted from personal interactions to digital assessments based on objective criteria.
While it’s true that going directly to a lender can offer access to exclusive deals, it’s important to note that these options may be limited to that particular company. Banks typically provide their best deals, but they may not consider other lenders’ offerings.
It’s worth considering that mortgage lenders extend beyond banks, and there are numerous alternative options available. The deal a bank recommends may not necessarily be the most competitive one among all available lenders.
Seeking specialist mortgage advice in Beverley can provide you with a significant advantage. Our expert mortgage advisors in Beverley will thoroughly review your case and leverage our extensive panel of lenders to find the best deal tailored to your specific needs.
Another benefit of consulting a mortgage broker in Beverley is access to exclusive deals that are not available elsewhere.
Whether you’re a first time buyer, moving home, or looking to remortgage in Beverley, we can present you with a wide range of options to choose from, ensuring you find the most suitable mortgage solution.
In the aftermath of the 2007-08 credit crunch, significant improvements were made in the mortgage market. One of these changes came in the form of the 2014 Mortgage Market Review, which required lenders to provide mortgages only with extensive expert advice.
Gone are the days when anyone at a bank could grant a mortgage without proper checks or qualifications. The new regulations ensure that customers receive appropriate advice tailored to their circumstances.
These changes also introduced consumer protection measures that were previously lacking. If you believe you have been misadvised, you now have the option to file a complaint with the Financial Ombudsman or seek compensation through the Financial Services Compensation Scheme.
This increased consumer protection provides reassurance to customers, ensuring they receive reliable advice and guidance throughout their mortgage journey. This applies not only to mortgage brokers in Beverley but also to mortgage lenders, as both are subject to these regulatory requirements.
Choosing to approach a bank instead of a mortgage broker in Beverley can come with a drawback in terms of timing. Getting in touch with someone at a bank can often take months, and once the process begins, you may not receive frequent updates throughout your mortgage journey.
At Beverleymoneyman, we prioritise responsiveness and convenience for our customers. Our dedicated team of mortgage advisors in Beverley will reach out to you at a time that suits your schedule.
We’re available from early morning to late evening, seven days a week, including weekends and even some bank holidays.
We understand that every customer has a unique lifestyle, which is why our advisors are available throughout the day. You can easily book an appointment beyond traditional 9-5 hours or on weekends through our simple online booking system.
Our commitment to responsiveness doesn’t end there. Whether you’re at the beginning or nearing the completion of your mortgage, our friendly team will keep you informed every step of the way. If there are any changes, your dedicated mortgage advisor in Beverley will promptly get in touch with you.
It’s this emphasis on high-quality service that has made local mortgage brokers in Beverley like us a preferred choice for many. Instead of national banks, more and more people are opting to approach knowledgeable local experts who provide personalised support and guidance.
With our extensive industry experience, we have encountered various scenarios that can present slightly more challenges than the usual mortgage cases.
One such scenario is a mixed deposit, where two different sources of funds, such as a gifted deposit and personal savings, need to be audited and accounted for. Additionally, individuals on zero hour contracts pose considerations regarding the consistency of their income.
For those looking to make a second property purchase, assessing their affordability and financial capability becomes crucial. Self employed individuals in Beverley without a fixed income also face challenges in securing a mortgage.
A poor credit history can also impact an applicant’s eligibility, as lenders may view it unfavourably. Ultimately, affordability is a key factor, determining if applicants can comfortably manage the mortgage.
In the past, mortgage lenders competed primarily by offering better deals, but the focus has now shifted to meeting specific criteria. It’s important to note that while you may find a cheaper deal, it may not align with your unique circumstances and requirements.
Applying for a mortgage involves a hard search, which leaves a footprint on your credit file. Declining a deal in principle can negatively impact your credit file without clear reasons provided, adding to the frustration.
At Beverleymoneyman, we understand the intricacies of these situations and have the expertise to guide you through them. Our mortgage advisors in Beverley will leverage their knowledge and experience to help you find suitable mortgage options, even in challenging circumstances.
We are committed to providing personalised advice and support throughout the application process, ensuring you have the best chance of securing the right mortgage for your needs.
Mortgage brokers in Beverley play a vital role in helping you navigate the mortgage application process and increase your chances of approval. With their extensive network of lenders, they have access to a wide range of options and can find the most suitable deal that aligns with your specific criteria.
Once they have assessed your case, they can initiate the process of securing an agreement in principle for you. At Beverleymoneyman, we prioritise efficiency and aim to provide you with an agreement in principle within 24 hours of your free mortgage appointment.
It’s important to note that an agreement in principle does not guarantee or automatically commit you to a mortgage. It offers the advantage of having an expert review your credit file in advance, which can help protect your credit score.
Our team of dedicated mortgage advisors in Beverley is committed to getting our recommendation right the first time, ensuring that you have the best chance of a successful mortgage application.
When it comes to finding the right mortgage solution, there are advantages and disadvantages to both approaching a mortgage broker in Beverley and going directly to lenders. The choice ultimately depends on the speed and level of security you desire.
At Beverleymoneyman, we are a dedicated mortgage broker in Beverley with extensive experience assisting clients at various stages of their mortgage journey.
Whether you’re a first time buyer in Beverley taking your initial steps into the mortgage world, nearing the end of your fixed period, or looking to remortgage in Beverley, our team is here to provide expert guidance.
You can easily book a free mortgage appointment or remortgage review to speak with our knowledgeable mortgage advisors in Beverley. We understand the importance of flexibility and strive to accommodate your availability, subject to our schedule.
To gain further insight into our services, we encourage you to explore the exceptional customer reviews we have received.
These testimonials reflect the high level of service we consistently provide to our satisfied clients. Additionally, you can find valuable mortgage-related content on our YouTube channel, MoneymanTV.
When it comes to your mortgage goals, our team is dedicated to helping you find the right solution. Contact us today to discover how we can help you on your mortgage journey.
In this article, we will explore the advantages and considerations of equity release plans, which are commonly recommended for individuals aged 55 and above.
Equity release in Beverley allows homeowners to unlock tax-free funds from their primary residence. One of the key features of equity release in Beverley is that you retain full ownership of your property.
We will delve into the benefits and potential drawbacks of equity release, providing you with a comprehensive understanding of this financial option. By examining both the pros and cons, you can make an informed decision about whether equity release in Beverley is the right choice for you.
At Beverleymoneyman, we pride ourselves on being among the select few mortgage advisors in the UK who can assess the entire range of later life mortgage products.
In considering the available options, we prioritise regular mortgages, which, in certain cases, can extend until the age of 85. We also explore the diverse array of specialist retirement interest-only mortgage products (RIOs) and lifetime mortgages, including equity release plans.
Our dedicated later life team will carefully evaluate your unique circumstances and recommend the most suitable product or combination of products. It is essential to remember that equity release in Beverley is not the sole solution, and there may be another option that better aligns with your specific needs.
Please note that equity release in Beverley plans allow you to release equity solely from your primary residence and not from a second home or buy to let property. In such situations, regular mortgage options may be more appropriate.
Our clients have various motivations for considering equity release in Beverley, with common reasons including home improvements, managing financial changes due to late-life divorce, paying off an existing mortgage, providing financial support to family members, and supplementing retirement income.
Equity release plans offer flexibility, allowing you to access funds either as a lump sum or in smaller increments whenever needed. Our knowledgeable equity release advice team in Beverley will carefully assess your circumstances and guide you towards the most suitable approach.
To get started, simply book your free, no-obligation consultation with our dedicated later life team in Beverley. You have the convenience of booking either by phone or online.
During this consultation, we will address any queries you may have and provide you with an overview of the available products, associated fees, and the amount you can potentially release.
Once you’ve had your initial meeting and decide to proceed with us, your mortgage advisor in Beverley will arrange a more in-depth follow-up session. This meeting will delve into the details, ensuring you are fully prepared for the application process.
Rest assured, we are committed to making the journey as stress-free as possible for you. We’ll assist you with every step, including arranging solicitors and navigating any valuation or legal requirements that may arise.
When it comes to equity release in Beverley, we highly recommend involving your family members right from the start. Their support and input can be invaluable during the application process, and they often bring up important questions and considerations.
Having your family members involved will provide you with reassurance that you have chosen the right company and will enhance the overall understanding of the benefits and potential drawbacks of the plan.
We welcome and encourage your family members to participate in the discussions, and we are more than happy to address any questions or concerns they may have.
With our video software, it’s convenient to include multiple family members in the calls and discussions, ensuring everyone is well-informed and involved in the decision-making process.
If you’re ready to move forward, we are here to assist you every step of the way. You can easily reach out to us by phone or book an appointment online to book a free consultation focused on later life mortgage options.
During the consultation, we will address any inquiries you may have and provide personalised recommendations tailored to your circumstances. Rest assured, we only require your ages and address for the call, ensuring a hassle-free experience.
To accommodate your busy schedule, we offer evening calls that can be adjusted to work around your work commitments or childcare responsibilities. We are committed to making the process as convenient as possible for you.
To understand the features and risks, ask for a personalised illustration. Equity Release in Beverley may come in the form of a lifetime mortgage or home reversion plan.
A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means tested benefits. The loan plus accrued interest will repayable upon death or moving into long term care.
A home reversion plan involves selling all or part of your home to a plan provider in exchange for a tax-free lump sum.
Anyone that is already the owner of a property, whether they own a family home or a buy to let in Beverley, will likely see it as an investment. It’s more than just giving yourself a home, it’s the largest asset in your name, something you can perhaps later sell or pass to your children and beyond.
The property market is always going through changes and moving up and down. There will be times where you may see property prices at major highs.
During these sorts of peaks, it can be worthwhile taking a look at the remortgage options available to you, as you may find that you are actually able to access more favourable loan to values, and in turn much better rates of interest as well.
The Loan to Value (LTV) ratio represents the proportion of a mortgage loan compared to the market value of the property, expressed as a percentage. For instance, if you buy a property worth £100,000 with a deposit of £10,000 (10%), you will require a 90% LTV mortgage.
LTV ratios are usually divided into tiers by mortgage lenders. The tiers usually range from 60% to 95%, but this can vary depending on the mortgage lender.
A lower LTV ratio can result in access to mortgage deals with more favorable interest rates. For example, let’s say that after a few years, the value of your property increases to £110,000 and the mortgage balance decreases to £80,000.
This results in a new LTV ratio of 73%. If you were to remortgage in Beverley, you would be looking for a 75% LTV mortgage, which should have a more favorable interest rate. However, other market conditions can also impact the interest rate at the time of remortgaging.
Mortgage lenders offer more competitive interest rates for lower LTV mortgages because they pose a lower risk.
To get better interest rates or favorable terms, you need to determine the worth of your property in comparison to what you paid for it. This requires a property valuation.
When you remortgage in Beverley, you switch to a new mortgage lender, as opposed to a product transfer, where you obtain a new mortgage with the same mortgage lender.
Since you are working with a new mortgage lender, they will want to know the value of the property being used as collateral. Typically, there are two types of property valuations: Automated Valuation Model (AVM) and physical valuation.
An AVM, also known as a desktop valuation, is an automated process that cross-references similar properties in the same area to determine the value, without a physical inspection of your property.
On the other hand, a physical valuation involves a professional visiting your home to inspect both the interior and exterior, to determine the true value of the property.
This is particularly useful if you have made any home improvements or extensions that other properties in the area might not have, which an AVM might overlook. If you prefer a physical valuation, you can discuss this with your mortgage advisor in Beverley during your free appointment.
While you can leverage the equity in your home for better deals, you might also choose to remortgage in Beverley to release that equity. People do this for various reasons, such as for funding home improvements.
When it comes to a remortgage in Beverley for releasing equity, it’s important to be cautious. Essentially, you are taking out a new mortgage to replace the old one, but this time, at a higher loan to value. Because of this, your monthly mortgage payments may increase.
The goal for many is that by investing in home improvements, they can increase the value of their property, resulting in a lower loan to value when they remortgage again.
It’s crucial to consider market conditions and have a well-planned strategy when dealing with such a significant financial investment as your home. A mortgage advisor in Beverley can provide the best advice for your specific situation.
In some situations, you may consider remortgaging in Beverley prior to the end of your fixed term. Although remortgaging early is usually ahead of the end of your fixed term, you may have the opportunity to remortgage even earlier, a year before, for instance.
That said, be aware that you may have to pay an early repayment charge (ERC) if you choose to break your contractual terms. Predicting house prices is uncertain, and it may not be financially feasible for you to remortgage early.
Early remortgaging is typically only considered if there is a compelling reason to do so. It is strongly recommended to seek the advice of a mortgage broker in Beverley if you are considering this option.
One example could be during the COVID-19 pandemic when the Bank of England base rate dropped to an all-time low. As a result, people who were set to remortgage in Beverley at the end of their fixed-rate mortgage period had the opportunity to secure these low interest rates.
If you were a year away from this scenario, you might not be able to take advantage of this unless you remortgaged early and locked in a longer term. While this is a specific example from a unique time, it highlights how early remortgaging can lead to financial benefits.
If your home value has increased, it may also be a good time to remortgage early to access lower loan-to-value rates, even though you may have to pay the early repayment charge.
In addition to this, however, you will likely have to pay arrangement, valuation, and solicitor fees for your new mortgage, in addition to the early repayment charge (which may be waived by your current mortgage lender if you opt for a product transfer).
Before making a decision, it’s important to speak with a mortgage broker in Beverley to understand your options and determine whether your savings will outweigh the costs.
At the end of your mortgage journey, you will have fully fulfilled your mortgage goals whether that be living in your dream home for you and your family, occupying a property that was perfect for you to get onto the property ladder but you are now wanting to leave in the future or a buy to let investment property.
Whatever path you took initially, you will eventually find that your fixed period is ending. You might be thinking of looking at the option of moving into a property that is either bigger or smaller. In some cases, a landlord may look to sell up their portfolio.
Through our experience as a Mortgage Broker in Beverley, we usually find that many people will look at taking out a remortgage.
Firstly, let’s look at the definition of a Remortgage in Beverley. In summary, a remortgage is when you use funds you have raised from taking out a new mortgage in order to pay off an existing mortgage in your name. There are many different options to do this and many benefits for each.
With over 20 years of experience in the mortgage industry the ‘Moneyman’ Malcolm Davidson (host of MoneymanTV, our YouTube channel), has collated a helpful guide to all the remortgage options that are fitting for homeowners.
When it comes to your fixed period, this will usually be around 2-5 years. You may find that the fixed rates or potential discounted rates are usually lower. In some cases, homeowners might find themselves in a situation where they are placed onto a tracker mortgage, which will follow the inconsistent Bank of England’s base rate.
At the end of your fixed period, it’s likely that you will be placed onto the lenders Standard Variable Rate (also known as SVR). In short, an SVR is a mortgage with an interest rate and can completely change to whatever the lender wants to charge.
Even though this mortgage type does not fluctuate with the Bank of England’s base rate, a tracker mortgage would. Usually, the changes can happen when the base rate or the market changes. For instance, if the base rate increases, your lender may choose to increase their rate too.
Due to this, Standard Variable Rates are usually seen as a costly option to stay with, which can be one of the reasons why many homeowners generally go for a remortgage on their property for better rates. They do this in the hopes of having money down the line.
If you have lived in your home for a couple of years, you may be looking at giving your home a makeover. Instead of finding a new place to live that covers your house preferences, you could have the option to remortgage in order to release equity. By doing this, you could use these funds to upgrade your current home.
Through our time as a Mortgage Broker in Beverley, we have customers do a range of things in their homes. One of the most common things is to get more space in their properties. Some are interested in giving their kitchen a revamp and one that has become popular is converting the loft into another room or something else.
For many homeowners, taking on a large project that involves lots of planning and managing and will include getting permission can seem like a nerve-wracking task. We have found that many customers find this option a lot less stressful and more rewarding than moving into a new house.
Making changes and developments to your home could be really beneficial down the line because you are creating more space and modernising a well-built home which, in turn, can increase the property’s worth. Therefore, if you do decide to move home, this could help you out.
In some cases, homeowners do go down the route of taking out a remortgage in Beverley as a way to access better rates. This can be done by reducing the duration of your mortgage term or by switching to a more flexible product.
If you decide to reduce your mortgage term, you won’t be paying back, nor will you be restricted for as long. Therefore, you may find that the mortgage payments are higher for you. You would be paying less per month, the longer you have your mortgage term.
In many cases, customers decide to go for a more flexible mortgage term around remortgage time. You could have the option to overpay beyond the average amount (this usually comes with a cap), so you could pay off your mortgage quicker. If you decide to move, you could be able to pass the mortgage onto a new property.
This may be the best option, but these will usually come in the form of tracker mortgages. As seen before, this will correlate with the Bank of England’s base rate. This could result in your monthly payments being a bit unreliable, as they may change.
In the potential event of another momentous market crash, each homeowner will have a particular amount of equity existing within their home. This is usually calculated with the difference between what you will owe on the mortgage and the value of the property.
As previously stated, the common reason why people look at taking out a remortgage to release equity is so they can fund home improvements, however, you may have another reason to use the equity.
Other popular reasons include using the equity to cover long-term costs, as a way to provide an income boost, fund towards a large holiday, pay off an interest-only mortgage or to just to have extra disposable income.
Our team do work with Buy-to-Let landlords who will look at remortgaging to release equity from one of the properties in their portfolio and a way to cover the deposit for a future purchase.
We have found that some homeowners look to remortgage to release equity in order to pay off any built-up, unsecured debts.
These may seem like a simple solution to debts, but it all depends on the amount you can borrow for a debt consolidation remortgage which does depend on the amount you owe a creditor, the value of your home and the current state of your credit rating. Because of these factors, you could be limited in the amount you are able to borrow.
On top of this, to pay your previous mortgage off entirely, along with the debts you have built up, you will need to borrow more than you actually require for a mortgage. Therefore, this will most likely mean higher monthly payments.
This is not the best situation, however, you will rest assured in knowing that if you are struggling, there are options out there that you can take.
For those who have a damaged credit rating, there are some routes for you to take. This would be a complex case though which is why you will need to seek Specialist Remortgage Advice in Beverley prior to proceeding with it. Be aware, that this doesn’t guarantee you a mortgage.
We do recommend that you obtain the advice of a Specialist Mortgage Advisor in Beverley before they consolidate any debts against their home.
Towards the end of your initial fixed period, you may be looking into the options and routes you could take. This is where a Remortgage in Beverley can help.
To connect with an expert Mortgage Advisor in Beverley, book your free remortgage review today. We provide a helpful, tailored service with availability 7 days a week from early in the morning until late at night. This means you can book your appointment around your schedule.
Your designated Mortgage Advisor in Beverley will be able to go through your case and get to know your mortgage goals to build a suitable option for your mortgage journey. Our team work hard in making the process as fast as it was your last process.
More and more people these days pay much closer attention to their credit rating, especially First Time Buyers as they tend to worry about being accepted. Consumer awareness of credit scoring is higher now than ever before. We’d say at least half of the people who contact us for the first time, have already looked at their credit report online.
There are many different credit reference agencies out there. Most people will have heard of Experian or Equifax, but we recommend potential new clients to use Check My File for a 30-day free trial, which is £14.99 a month thereafter and can be cancelled at any time.
This is because of this report “sweeps” several of those reference agencies and collates the information into an easily understandable colour-coded report.
Try it FREE for 30 days, then £14.99 a month – cancel online anytime.
Often, clients ask if we will be doing a credit search on them, because they are aware that too many searches can have an adverse effect on their credit score. Lenders always run credit checks but we always seek a client’s permission before doing so. There are 2 different types of credit searches that Banks can run on a customer: hard searches or soft ones.
A hard credit search is an in-depth look at your credit report. Any financial institution carrying out one of these should seek your permission to do so. The advantage of a “hard” search is the lender is looking into your situation quite closely. If you pass the credit score then it’s fairly likely that your application will ultimately be successful. The only thing that can really go wrong from then on, is if for some reason you cannot provide satisfactory documentation to back up the information you have disclosed. Either that, or it turns out you have provided false details.
The bad news about a hard search though is that it leaves a “footprint” on your credit file. This means anyone who looks at your report in the future can see you have had a search carried out. This isn’t necessarily a bad thing, but if you have several footprints registered in a short period of time then it could look like you applying for lots of credit at the same time.
The footprint does not state whether your application was successful or not. However, if you have several searches over a few weeks, then lenders’ systems could wrongly assume you are being declined on the basis of; “Why else would you go to lender number 2 unless lender number 1 had said no?”.
The odd hard footprint on your record from time to time is no big deal. There’s no need to worry too much about this, just be careful not to have too many.
A soft credit search is a “lighter touch” look at your financial situation. This is the kind of search that would routinely be carried out on price comparison websites. This would give you an indication of what products might be available to you. It can also be useful if someone wants to verify your identity.
Some mortgage lenders do soft searches in the first instance. More and more lenders seem to be changing to doing this type of search. Whilst the financial institution doing a soft search obtains less information about you than if they had done a hard search, an agreement in principle from one of these lenders is usually still an extremely strong signal that your full application will be accepted.
You will be able to see that someone has carried out a soft search on you if you check your credit file. The good news though, is that these searches are not visible to other financial institutions like banks. This means that you can apply for an agreement in principle for a mortgage, without it damaging your credit score. This is irrespective of whether it is successful or not.
If you are wanting to make an offer on a property, we always think it is an excellent idea to have your mortgage agreement in principle in place prior to contacting the estate agent. You want to give yourselves the best possible chance of securing the property you want at the lowest price so if you can present yourselves as having your finances in place then you are definitely putting yourself in a stronger position. Having the agreement in principle also sometimes puts the agent off trying to “cross-sell” their own in-house mortgage services to you.
When your introductory mortgage deal comes to an end your mortgage lender may offer you a new deal to stay with them, this is known as a product transfer.
Unfortunately, lenders do not always reward your loyalty and the offer they make you may not be competitive with deals you could get elsewhere. Even more annoyingly, these product transfer rates are not as good as the deal they offer new customers either!
Whilst swapping to a new deal with your current lender may well be fairly easy online, it is always in your interest to see what other deals you may be eligible for. Lenders will also tempt you to effect a new deal online without taking advice.
This can be really dangerous because if you do this without advice you are waving goodbye to all the valuable consumer protection you would otherwise have benefitted from.
We have seen numerous examples of customers affecting these “follow-on” deals and locking themselves into an inappropriate deal. Because of this, they have basically opted out of advice, waving a lot of their rights in terms of making a complaint.
We once had a case where a customer who was pregnant did this and was declined for a small further advance to fund some necessary home improvements a few months later. She then had to pay a hefty early repayment charge to swap to a new lender who would grant her the additional funds.
If we think a product transfer is the most suitable deal for you we will recommend that as a course of action for you and if we arrange the mortgage for you as a mortgage broker then all the regulation and consumer protection will apply.
In short, even if your requirement seems straightforward we recommend you always take advice – a second opinion costs nothing and making a mistake when taking a new product can be costly.
The Remortgage market is highly competitive and savings can generally be made by searching the market for a new deal.
The Financial Conduct Authority does not regulate some types of buy to let or commercial mortgages.
Thousands of interest only mortgages are maturing every year and lots of mortgage-holders are not prepared to repay the capital sum owed. Here we examine how this situation has occurred and what can be done.
Interest only mortgages remain popular amongst buy to let applicants who buy up properties for extra income, but in the 80’s and 90’s most residential mortgages were set up this way. The idea was that you would only pay back the interest on the money you owed and you would pay back the capital lump sum at the end of the term.
When you took out an interest-only mortgage you may also have been advised to set up a repayment vehicle such as a low-cost endowment policy. The policy would then mature and was designed to repay the capital balance in full whilst also providing life cover through the term.
Unfortunately, many people weren’t made aware of the risks attached to these products, in particular, that there was no guarantee the policy would mature for a sufficient amount to repay the mortgage debt and this led to many applicants being compensated for being mis sold to.
It’s unlikely that you will have taken out an interest-only residential mortgage in the last few years as they are fairly difficult to get unless you can prove a robust strategy for paying back the capital. If you took out an interest-only mortgage in the late ’80s or ’90s and have not switched it to a capital repayment then it could be maturing soon and action needs to be taken.
If you have found yourself in this position it is highly likely that your mortgage lender will have been writing to you asking how you intend to repay the capital. It’s vital that you keep the line of communication fully open with them, they will not want to take your property into possession and will only do so as a last resort.
Here are some of the options you can consider:
The retirement mortgage market has become seemingly popular, largely due to the number of interest only mortgage reaching cessation with no repayment plan in place.
There are far more retirement products available these days and some providers let you service the interest element by way of regular monthly payments.
This means that when you die the capital balance is repaid from the house sale and the surplus passes to your family.
Interest only mortgage still have their place, for example, you may have a portfolio of properties or other investments in place to repay the money you have borrowed. Lenders will now want to examine your strategy for repaying the loan much more deeply than they did in the past to ensure they are not left with a mortgage on their books which could default.
They will want a big deposit to go down, possibly as much as 50%. They will also want to “sense-check” your plans, for example, will you have enough equity in your home to be able to down-size to a reasonable property at a later date.
Whilst it is widely accepted that there is a national housing shortage, the government has launched several schemes over the years. These have been under the “Help to Buy” banner, designed to get people onto the property ladder.
Unfortunately calling all the schemes Help to Buy has caused confusion amongst consumers! Here’s a look at what’s out there right now.
If you’re in the armed forces, you can borrow up to 50% of your salary, up to a maximum of £25,000 interest-free towards a new home.
If you’re Self Employed in Beverley, there are still a lot of options available to you. It’s a good idea to get hold of your Accountant and speak to a mortgage broker in Beverley for mortgage advice.
It varies. The Forces Help to Buy can be a new or old property.
There may be options available to you even if you have a poor credit score. Mortgage lenders are becoming increasingly competitive on criteria and many challenger banks are entering the market. Again, please seek mortgage advice from a reliable mortgage expert!
A minimum of 5% as a rule.
Yes, family members and sometimes friends can gift (not a loan). This is a popular way for First Time Buyers to get on the property ladder. It’s also popular for home movers moving to a bigger home. In a recent Government Survey, 27% of such buyers relied on family and friends to help with a deposit.
Yes, with the Help to Buy Equity Scheme the government loan is interest-free for 5 years. After this, you’ll pay fees. Hopefully, the property will have increased in value and you can potentially remortgage the property at any time. This likely would be to raise funds to increase your share. Remember, the government will also receive their share of any profit made.
The first stage would be to have a free mortgage consultation. This is to work out your maximum borrowing and also to get a mortgage agreement in principle certificate. This puts you in a strong position to make an offer. Once you have this in place you’ll be a “Qualified Buyer”, the next step is to go and view houses!
For more information and further terms and conditions about any of the above schemes please refer to the https://www.ownyourhome.gov.uk/ website.