As one of the most popular mortgage types, it’s important that you know what a fixed mortgage is and how they work. When it comes to your remortgage, you may want to explore your options, therefore, finding out about the different types of mortgages could help you make your decision.
Your interest rate on a fixed-rate mortgage will remain the same throughout your fixed term. Whether this is a longer term or a shorter term, either way, your interest rate will not change.
Typically, the longer that you fix in your mortgage for the higher the interest rate will be. Therefore, if you are looking for a lower rate mortgage, you may need to look at taking one out over a shorter term. The only real downside to short term mortgages is that your renewal will be due more often. Short term fixed deals usually last 2-5 years.
During your Remortgage in Leeds, it may be worth looking at fixed-rate products so that you know exactly what you’ll be paying over your fixed-term.
If you are happy with tracking a slightly higher interest rate over a longer period of time so that you don’t have to remortgage and pay the extra fees that are involved with taking out a new product, a medium to a long-term fixed mortgage may be more suited to your needs. 5-7-year fixed-rate mortgage products tend to be the most popular amongst people in this kind of situation.
Despite the high interest rates, if you still want to take out a product over a long term, you could look into the possibility of taking out a 10-year fixed-term rate. Although, 10-year terms are a little harder to find and you may need to approach a specialist lender to take out one. They also come with high costs as you’re locking in for a decade, a lender needs to be able to trust your affordability throughout the term.
In comparison, both medium and long term fixed-rate products have their advantages and disadvantages, however, it mainly comes down to your personal situation and what type of product you are looking for.
Upon remortgage, you will face booking and arrangement fees. You will need to consider these costs before taking out another product. Sometimes, you will be asked to pay these fees upfront just in case your purchase falls through. Your Mortgage Advisor in Leeds should go through these costs with you before you take out a new product with them.
If you are taking out a long-term mortgage product, you may be able to avoid these fees.
If your financial situation changes unpredictably and you pay back your mortgage earlier than you originally planned, you may face an ERC. An ERC or an Early Repayment Charge is a fee that you’ll receive for paying off your mortgage term too early.
An ERC is calculated through a percentage of the amount that is still left on your mortgage. For example, if you have £200,000 left on your mortgage and you paid off your term early, with a 2% fine, you may face an ERC of £4,000.
Some people will deliberately pay off their mortgage term and face an ERC. This could be because they’ve acquired a large sum of money for some reason and want to pay off a part of their mortgage, they’ve seen a new mortgage deal after a long term and they want to access it early or simply that they are at the end of their whole term and just want to pay it off.
Make sure that a fixed-rate mortgage is right for you before taking one out. It could turn out that another product is more suited for you.
There are many different types of mortgages available on the market, therefore, it’s wise to shop around first! We would always recommend speaking with a Mortgage Advisor in Leeds to get some helpful information and tips.
You can easily find out more information and get Remortgage Advice in Leeds by contacting our team. We offer a free Remortgage Review for every customer – all you have to do is book your appointment online.
As you are approaching the end of your fixed mortgage term, you will need to start thinking about taking out a new product. Ideally, you need to start searching around 6 months early.
When you take out a new mortgage product, it is either called a product transfer or a remortgage. A product transfer is when you take out a new mortgage product with your existing lender, whereas, a remortgage is when you take out a new mortgage product with a different mortgage lender.
You are under no obligation to stay with the same lender; in fact, you may be able to access better products if you search elsewhere.
Lenders rarely reward you for being loyal. This is why we always recommend looking around for more deals and seeing what is on offer. You could always search through your current lender for another product, however, it’s just as easy to switch products through a different lender.
For convenience, you could argue that staying with your current lender is the right idea. On the other hand, you could say that if there is a competitive deal out there that involves a little more paperwork, it may be worth it. As your Mortgage Broker in Leeds, we will search around for products for you, and arrange all of the paperwork! This will take all of the stress away from the process.
We have many different lenders on our panel, each holding different lending criteria. Some of which, have competitive deals available that may be the perfect match for you and your individual situation.
Nowadays, it’s way too easy to perform a mortgage switch online; sometimes this is not a good thing!
You should take your time if you’re tempted by an online switch. Taking out the wrong mortgage product could make you lose a lot of money further down the line, so you need to make sure that you do this right. Your current lender may not offer any, but if you’re looking for Remortgage Advice in Leeds, feel free to contact our mortgage team.
As a recommendation, before switching online through your lender, take a moment to look for deals elsewhere and get some advice if you need to. More often than not, people are unsure of how the process works and what product they are taking out; when this is your situation, it’s important to get an expert’s opinion.
When you switch online, you are also missing out on the consumer protection you would’ve got had you spoken to a Mortgage Advisor in Leeds. If you take out a wrong product, you have no say as you took it out yourself with no advice.
Once you lock into a new deal, you’re stuck on that rate until your fixed term finishes unless your want to pay an ERC (early repayment charge). An ERC is calculated by the mortgage that you took out and how long is left on your term, therefore, if you take out the wrong deal and want to switch right away, this could be costly.
Unfortunately, lenders love it when this happens as they receive a big pa yout. This is why they rarely offer advice during a product transfer or remortgage. We have encountered multiple different scenarios in the past where this has happened.
One notable case of ours was when a customer who was pregnant, chose not to take mortgage advice and then was declined for a small further advance to fund the planned home improvements she needed to create a room for her child.
Because of the choice that the customer made, she had to pay a very large early repayment charge, in order to allow her to swap to a new lender that would be willing to grant her the necessary funds.
It’s heartbreaking when we see this happen as we wish we could’ve helped in some way. This is why it can benefit you to speak with an expert and get Remortgage Advice in Leeds.
Remortgaging and transferring products is a process that almost every property owner will go through. During your first remortgage, it may be best to get Remortgage Advice in Leeds so that you can get through the process stress-free and right the first time.
You can book your free remortgage review with Mortgage Advisor in Leeds online. This will definitely help you get an idea of what sort of deals you can access and what will be your beneficial option.
It costs nothing to get a second opinion, that’s why our free remortgage review is so brilliant! The remortgage market is a very competitive one and searching the market for a new deal can often help you to save you a lot of money.
You may find that going into the mortgage journey will prove to be rather fruitful. It can have both its ups and it’s downs, though regardless, you will end up with one potential outcome once your term ends.
You’ll either have a home that you have been able to settle down in, an initial property that you can use to propel yourself up to a better property, or a property that you can invest in to boost your income.
No matter which route you went down, you’ll eventually reach the point where your term comes to a close and you’ll need to look at your options. Some people look to sell their home and upsize/downsize into a new property.
Others may sell their portfolio to the tenant or another buyer, with a view to look alternative ventures. However, we mostly find that people choose instead to Remortgage their home.
First of all, let’s take a look at what a Remortgage actually is. A Remortgage is basically where you take out a new mortgage to pay off a mortgage that you already have. There are a wide variety of different options when taking out a Remortgage, some of which are minor, others of which are major.
By using over two decades of mortgage industry knowledge from the “Moneyman” himself, Malcolm Davidson (host of our YouTube channel MoneymanTV), we put together a useful Remortgage guide for those looking at what they can do next, when their term nears its end.
The mortgage deal that you start on will typically last around 2-5 years and feature low fixed rates, with the rates potentially discounted. Sometimes though you may find that you’ve been placed onto a tracker mortgage, which will follow along with the Bank of England’s base rate.
Once your term comes to an end, it’s likely that you will be put onto the lenders Standard Variable Rate (this may be shortened to SVR). To explain what this is, an SVR is a mortgage that has an interest rate that may change depending on the amount that your lender wants to charge for it.
The Standard Variable Rate will not follow the Bank of England’s base rate like you would see with a tracker mortgage.
Because of this, SVR’s are generally perceived to be the most expensive paths that customers could take, leaving many to instead take a look at Remortgaging to open themselves up to better rates, something which may hopefully save you money on future monthly mortgage repayments.
Once you’ve gotten about 2-5 years into being a homeowner, you may feel like something needs to changed. Some people might want an extra room or much more living space, possibly a new kitchen, a new office to work from home in, or even a new loft conversion.
Rather than find a bigger home to move into, a lot of homeowners instead look at releasing their equity with a Remortgage, so that they can cover the costs of home improvements.
Obtaining planning permission and both funding and managing your own project can seem quite stressful. Some other homeowners would say that it is less stressful and a lot more rewarding than it would be trying to get a new home, selling your current home and moving everything between properties.
In the long run, you may be able to reap even more benefits, as opening up lots of space within the property and having a top level of craftsmanship will very likely increase how much the property is worth, which is useful if you ever decide you want to sell your property or make it a rental.
Sometimes you’ll find that people are looking to Remortgage in Leeds so that they can gain access to a better mortgage term, whether this be achieved by reducing the length of the term or switching to a more flexible mortgage product.
By reducing your terms length you’ll be cutting short how long you pay back your mortgage for, so aren’t tied down, though it does mean that your monthly repayments will be higher. The longer you set your term for, the lower your payments will be.
Some homeowners may choose to take out a more flexible mortgage term when they look to remortgage. They may do this due to the amount of benefits they may have for doing so.
In having this mortgage, you may be able to overpay, meaning you could pay your mortgage off a lot quicker, as well as being able to take the same mortgage and rates with you across to another property, if you ever do decide to move.
You might feel like a flexible mortgage sounds near perfect, though they tend to be tracker mortgages, which as we said before will follow the Bank of England base rate. This means your payments could differ depending on interest, which some may think is unreliable.
Everyone will have some amount of equity existing within their property. The amount can be worked out by looking at the difference between what is left on the mortgage and how much the property is currently worth.
As talked about before, the equity can be used for home improvements, though you can use it for more than that too. Some use their equity to cover long-term care costs, to boost their income, to go on holiday, to pay off an interest-only mortgage or to just give them some spare money to spend.
Occasionally, we see Buy-to-Let landlords using Equity Release as a way to cover their deposit for buying any future property portfolio additions.
Whilst speaking of Equity Release, we also find that there are a lot of people who will pay off any unsecured debts that you may have gained over time.
Though it may seem like a really straightforward process, Debt Consolidation not only factors in the amount that you owe for your debts and how much the property is worth, but also the state of your credit rating. This means the amount you could borrow is limited.
On top of this, in order to pay off your previous mortgage and your debts, you need to borrow a much higher amount than your mortgage, making your monthly repayments much higher. Though it isn’t great, at least you know there are some options should these problems arise.
If you have a damaged credit rating, there are still options out there for you, though these aren’t easy and require very Specialist Remortgage Advice in Leeds before you go ahead with these. Even with those options, you’re not guaranteed to get a mortgage.
It is always recommended that you get mortgage advice before you look to consolidate and secure any debts against your home.
If your mortgage term is coming to an end and you would like to learn more about your Remortgage options, we definitely recommend getting in touch with an experienced Mortgage Broker in Leeds and booking your free mortgage appointment.
A dedicated mortgage advisor will take a look at your situation and look at your future goals, in order to help you to determine the next step of your mortgage journey. We aim to ensure that your mortgage process this time around is a lot smoother and quicker than it was before.
As a mortgage broker in Leeds, we see many Interest-Only Mortgages come to the end of their term. In quite a few of these situations, people have struggled to pay their mortgage off in full.
Our job is to help you through these kinds of situations and give you advice on what you can do if you are faced with these problems.
Here is everything about interest-only mortgages and what you can do if you’re struggling to pay off your mortgage.
We’ll rarely find someone that has taken out an Interest-Only Mortgage on a property that they’re living in. Usually, it’s only landlords that take out Interest-Only Mortgages these days. Landlords do this so that they can maximise their profits, Interest-Only Mortgages can help them do this.
During the 1980s and ’90s, these mortgages were very popular, even amongst buyers that wanted to live inside the property that they’re buying. Their idea was that they would pay interest on the capital owed then pay the lump sum back at the end of the term.
At the time of these borrowers taking out an Interest Only Mortgage, it’s likely that they also set up an investment vehicle, this is usually a low-cost Endowment policy. This policy provided life cover to pay off the mortgage should the borrower die.
Sometimes, people were advised wrongly and wasn’t made aware of the risks involved with an Interest-Only Mortgage. There was no guarantee that the investment would mature for a big enough sum to repay the mortgage. Leading to a surge of complaints, and thousands of people received compensation if they got mis-sold.
Endowment Mortgages are more of a thing of the past. It’s been a very long time since they were popular. You’ll still find people with them though. It may be that they just haven’t got around to switching to a repayment mortgage. If you end up in this position, it can be a very worrying time because you might be worried about losing your home.
You can still take out Interest-Only Mortgages, however, you will have to pass a lot more requirements to get one. Lenders are much stricter nowadays and matching their criteria may be tricky.
If you take one out now, you may encounter problems in the future.
A borrower could be taken by surprise by their lender requesting full repayment of the balance. This may happen if there’s been a lack of communication between the applicant and the lender. Lenders should be regularly writing to their Interest-Only customers to ensure that they know they must make plans to repay the capital.
If you have no means to repay the capital, our advice is to keep the lines of communication fully open with your lender. They will be very experienced in dealing with these situations, and you just need to let them know where you stand. Lenders never want to repossess your property, although, they will do this as a last resort.
Here are some of the things you could be doing to resolve the situation:
Following on from our last points, there are far more retirement mortgage options open to borrowers now than there has ever been. If you manage to qualify for one of these, you can continue to pay interest to protect the equity you have in the property. Alternatively, if you are not worried about leaving an inheritance to your children, you can let the interest roll-up and cease making payments altogether.
One major problem in getting a mortgage through Equity Release tends to be the loan to value. You must have a decent amount of equity in your home to qualify for one of these products.
The majority of home buyers will decide within seconds of arriving at the property they are viewing, whether or not they want to proceed with the purchase. This is especially the case if your viewer is an existing homeowner and needs to decide quickly, so they can move forward with the sale of their own property.
Your equity is the amount at which you sell for, minus your current mortgage balance. This will be used to contribute towards a security deposit for the next purchase that you make if you are moving home in Leeds. By utilising savings or a gifted deposit, you are able to top this up.
There is always a very specific minimum amount that the seller of a property is willing to accept for a sale to be agreed. Even still, when you list your home for sale, it is important to market and present your home in the best light possible. This can make a large difference in how quickly you’re able to sell it.
Your asking price should always reflect the standard of those in the local area. Be reasonable with the amount you’re looking to sell for, as some estate agents may just suggest the highest possible price without any credibility behind the suggestion.
Nowadays everyone has the ability to advertise on Zoopla and Rightmove, so we would definitely recommend that you make the dive into the market and get as many viewings as you possibly, primarily within the first two weeks of it being listed.
If interest in your property seems to below, it’s probably quite like that the property has been overvalued and the price needs to drop.
Before they look to put their current property on the market, many homeowners prefer to research and visit other properties to identify which one they might call home down the line. If you find yourself in that same or a similar position, here are some helpful tips for you to sell your home as quickly as possible.
First of all, this can be quite a strange one and quite difficult to do if you’ve spent a long time in there, but you need to look at your own house as if you were viewing it for the first time yourself. Make sure it looks great from the outside, as that’s the first thing people will see when driving or walking up to it.
Simple actions make a big difference, so ensuring you have a freshly jet-washed drive and neatly cut front lawn indicates that you have put a lot of time and effort into looking after your home. You need to aim for that feel-good factor, as this may help the viewer in their hopes that the inside will be just as good as the outside.
If you have any kids, it is recommended that you tidy away any bikes or loose toys that have been left about in the front garden. Make sure your front door looks clean and well maintained, and that your doorbell (if you have one) works well. Spend a little bit of cash getting a nice new doormat or welcome sign to give it a nice, new home vibe.
Take a look around all of your rooms, paying close attention to rooms like kitchen or bathrooms. You should make sure that they are spotless and have a high level of hygiene. Cupboards and wardrobes should be tidied up, arranged neatly and free from unnecessary clutter.
You should absolutely ensure your home is pristine and clean; this is a very important step to remember! Wash your curtains & blinds, wipe down your walls and clean all your floors and windows. Any repairs that need work should be up-to-date and fixed, and you should put clean bedding out on the beds.
Clean all of your windows, making sure they’re nice and sparkling clean both inside and out. New carpets in smaller rooms can be a reasonably low-cost way of creating a welcoming impression, showing that the home has been well cared for.
If you are a smoker it’s always air the rooms out before the potential buyer arrives to view it. Ensure there are no bad smells lingering, as any pet smells or cigarette smells can put off a viewer from wanting to buy your property.
You will ideally want your viewer to feel as relaxed as possible whilst they look around your property, so try and avoid having pets or young children getting under their feet as they try to take it all in.
That being said, if you are selling a family home, leaving up a selection of nice family pictures and paintings can help as it will give them an image of what it may be like to raise a family in that home.
You will find that home buyers, especially those who are first-time buyers in Leeds, will prefer to walk around the property on their own. If it’s a couple walking around, allow them some breathing space to discuss with each other, but also be on hand to answer their questions.
Always clean your bathroom, removing any items like cosmetics left out. You should coordinate your towels and flannels, maybe consider putting a small amount of money into making it look nice and appealing. Also make the floor space is spotless.
A well-lit house is always going to be more appealing to prospective buyers. This can be achieved through making sure lights are turned on to brighten up rooms if it’s darker outside or keeping all curtains and blinds open to let in natural daylight.
Plants can often block out light so place these strategically around your house.
White walls look clean and fresh, and also come with the added benefit for the buyer of being extremely to paint over when the time comes to decorate. It gives the viewer a blank canvas to work with. It will also help to avoid scraping previous wallpaper off the walls.
Give a fresh coat of paint to all interior doors. Polish the brass fixtures and ensure all doors are able to open and close nicely, with no broken locks or strike plates. Buyers will want to look at making the most of space, so it’s recommended that you store objects into cupboards and have clean and tidy worktops in the kitchen.
In terms of your garden the viewer may ask you if they can take a look inside your shed (if you have one), so it’s recommended that you don’t just throw everything in there. Once again, a running theme here, keep it neat and tidy.
Pay attention to your fences, make sure all the slats are in place, and that they are nicely painted or creosoted. Tidy up any visible items such as outdoor barbecues, removing any utensils left around.
People do still like to see a colourful garden so ensure its beautifully turned out. Flowering plants are lovely to see if the season is conducive. It is also recommended that you make your garage space more efficient, therefore providing more space for a vehicle.
People buy from people, so it is recommended that you always take conduct the viewings yourself if you can. You will be able to accurately convey the emotions you feel about your home and can show it off in the best way you can, whilst still also pointing out any small issues that have cropped up and how you managed to fix them. Transparency goes a long way!
Estate Agents will always be wanting to earn their commission, but compared to you, who has potentially lived there for years, maybe even raised a family there, they will not know as much about the property. Your knowledge and experience of living in that property will lend well to a property viewing.
Last of all, always remember the emotions attached to buying a home. If you have a family, it really helps to put an emphasis on how much of a happy family home this has been for you. This will almost certainly rub off on the viewers if they are thinking of raising a family in that same home.
Has your current mortgage deal come to an end, and do you need to borrow some additional money? If so, then it could be the right time for you to consider remortgaging.
We have witnessed far too many customers who leave searching for a new deal too late and end up falling onto their Lender’s Standard Variable Rate (SVR). We always recommend that all customers keep on top of their mortgage and make sure you know when your term is ending.
A lender’s rate will be a lot higher than your current rate, which will result in your monthly payments increasing. There is nothing wrong with being ahead! Keep on top of your mortgage and speak to a remortgage advisor in Leeds.
Lenders don’t reward loyalty. We have seen some lenders offer better deals to new customers than existing customers who have been with them for several years! That’s why we recommend you look around before committing to the same lender. There could be better offers with lower rates out there.
We understand that some choose to do it by themselves online and switch over there and then. That’s what’s called an ‘execution-only mortgage’. It might be easy to do, but you don’t benefit from any consumer protection. Again this highlights the importance of getting mortgage advice in Leeds before making any rash decisions.
Is your home due for some upgrades? Were you aware that you can remortgage for home improvements? It can be a good investment as some improvements, such as loft conversions, extensions, can potentially increase the property value.
People who are not looking to increase their property value and have found their “dream home” will also borrow for home improvements, there is nothing wrong with this, they just want to make give their home a bit of a makeover. You can increase your mortgage to pay for cosmetic alterations as well as structural work.
You have the decision to use whichever contractor you choose. But, if you need to borrow a significant amount of money, your lender will need to know the estimates for the works you intend to have carried out.
It is possible to raise capital on your property when you remortgage for almost any reason. Some popular scenarios include wanting to raise money for:
Keep in mind that you will be paying interest on a remortgage for a while. Ensure that you are borrowing for the right reasons and keep up to date on your repayments during the entire mortgage term.
Just adding unsecured debt to your mortgage might result in you needing to pay back more interest. A mortgage term can be much longer than a personal loan, but it isn’t always the case.
Make sure to consider that you are taking unsecured debt and securing your home, which will not sit easily. If you cannot afford your mortgage payments down the line, you have put everyone at risk of repossession.
You will need to consider that you are taking unsecured debt and securing your home. Which will not sit easily with everyone as you are under the risk of repossession if you cannot afford your mortgage payments down the line.
You will need to know that if you have 0% credit cards, the interest rates that apply to the debts that you are considering rolling onto your mortgage will start attracting interest too.
It would help if you considered all of your options before deciding to consolidate debts. We think that the best way to make a decision is to seek remortgage advice in Leeds from a remortgage advisor.
A remortgage advisor can evaluate all of your options and then recommend the best route to go down. Your advisor might even suggest that you don’t need to go down the path of debt consolidation remortgage.
Consolidating debts into your mortgage leads to a reduction in your monthly outgoings. We have seen some customers end up reducing their payments by several hundreds of pounds.
If you feel that remortgaging is the right option for you, get in touch to speak to a remortgage advisor in Leeds today. We will help and assist you with all your mortgage-related needs.
For many first time buyers in Leeds, and sometimes for home movers, getting a mortgage can be a struggle. Whether it’s to do with credit score, deposit size or affordability, you may encounter a problem or so along your mortgage application journey.
As a mortgage broker in Leeds, we’ve seen many different reasons why someone has been declined for a mortgage. In this article, we are going to take a look at the most common situations that we come across:
When it comes to matching lender’s credit scores, some will be easy to match than others. Each lender will be targeting their own type of customer, therefore it’s very unlikely that you’ll pass every lender’s criteria, no matter how good your credit score is.
You’ll find that lenders with the lowest rates will have the tightest lending criteria. To pass their criteria, it’s likely that you’ll also need a high credit score and a clean credit history, etc.
Lenders will only take on reliable customers. They will not take on someone who carries a risk of falling into areas over the course of their mortgage term. If you have a bad credit history or currently have bad credit, you may need to approach a specialist mortgage lender.
As a specialist mortgage broker in Leeds, we can access specialist lenders and can check whether you’ll match their criteria. It’s our job to offer help to customers who are struggling with their mortgage journey.
There is always uncertainty as to how much deposit you actually need for a mortgage. Is it 5%, 10%, 15%?
It is all down to your credit score to how much deposit you will be required to put down. Typically, the lower your credit score, the higher your deposit will have to be. Obviously, your deposit total also depends on the property that you’re buying, as property price goes up, so will your deposit.
If you don’t have a deposit in place for a mortgage, it’s very unlikely that you’ll be able to get one. However, you may not need a deposit if you’re taking out a right to buy mortgage in Leeds.
Utilising government-led schemes could possibly help you get a mortgage with a small deposit. There are lots of schemes out there to help struggling customers get onto the property. You could take a look at the Help to Buy Equity Loan, Shared Ownership and the Mortgage Guarantee scheme. There are lots of different options available.
Find out more here: ownyourhome.gov.uk
Sometimes you may not find out the reason why you can’t didn’t qualify for a mortgage. The lender just declined your application.
In this situation, it could be anything from that you’ve applied for the wrong product to that you simply didn’t match the lender’s criteria. As a mortgage broker in Leeds, we like to call this the “computer says no”.
Leedsmoneyman will never put you forward for a mortgage product that we know you will not get accepted for.
Our job, as a mortgage broker in Leeds, is to try and find you a suitable mortgage deal that matches both your personal and financial situation. We will thoroughly measure your affordability and perform a credit check on you; this way, we can start searching for a product that’s perfect for you.
Our team will make getting a mortgage seem easy once you pass the affordability stage. Having a mortgage advisor in Leeds by your side could prove extremely beneficial and will allow you to progress through the mortgage application stress-free.
Now, instead of asking “why can’t it be easier to get a mortgage?”, use a mortgage broker in Leeds!
Our team are available 7 days a week. Book your mortgage appointment online today.
Firstly, what is a credit score? A credit score is a numerical value that lenders use to calculate your affordability for a mortgage loan/any form of credit, etc. Although different lenders have their own unique credit scoring models, the credit score that you’ll have listed on your score will likely range from 300-800+.
A credit score below the ‘good’ range may mean that you’ll only be able to access specialist products, whereas, if you have a score that’s greater than ‘good’, it’s likely that you’ll be able to access more competitive products.
As an experienced mortgage broker in Leeds, we handle specialist cases every day. More than often we find that our customers have come to us after being declined by their bank/building society due to a low credit score or something similar. It’s our job to pick up where they left off on their mortgage journey and try to secure them a great mortgage deal.
There are many different reasons why you could have a low credit score. A common reason that we come across is that there is a county court judgement (also known as a CCJ) associated with the applicant’s name. You may receive a CCJ when you’ve taken a loan/borrowed money and have failed to pay off the amount owed. CCJ’s can put a harmful imprint on your credit file for 6 years or more, and that’s why it’s so important that you try and get the CCJ removed from your file prior to applying for a mortgage or make sure that you pay off all owed payments before you receive a CCJ. A CCJ will undoubtedly reflect negatively on your mortgage application and your lender will start asking questions.
Following on from CCJ’s, failing to stick to credit agreements can also harm your credit score. Even failing to keep up with your mobile phone contract payments can eventually cause damage to your credit file. You can’t forget about the little things either, as they can cause damage too. For example, dipping into your overdraft every month could cause a long term negative effect.
These are just a few examples of things that can negatively affect your credit score. Of course, there are lots of other reasons why you may have bad credit and some more obvious than others. It’s our job to try and help you improve your score and give you expert tips to try and get your credit file looking up to shape.
Improving your credit score, especially when it’s low, can sometimes be difficult. When it comes to helping you improve your credit score, we want to give you the best advice possible to help you do so.
You should know that each lender has their own unique passing criteria, so your score may affect what sort of deals you can access from each one. Also, you may not match every single mortgage product, so rather than applying for lots of different products, you could try shopping around for mortgage deals that will definitely match your situation and credit score.
You’ll have a soft or hard credit search performed on you every time that you go directly to a lender and their in-house mortgage advisor puts you through for a deal. This search will leave an imprint on your credit file and other lenders will be able to see the search. If your application is declined, the credit search on your file may have a negative impact on your credit file. This is why we recommend keeping the number of searches performed to a minimum.
This is where we can help! As an expert mortgage broker in Leeds, we aim to get it right the first time, which means that we will take a look at your credit score and only look for products with criteria that we know you’ll pass.
Applying for credit, particularly during your mortgage application, can sometimes backfire on you. If you take out a loan or apply for extra credit if you fail to pay it off before your application, your credit score may dip and it could reflect badly on your credit file.
In some cases, as long as you pay it off, borrowing credit can actually help improve your credit score. This is because you are showing that you are a reliable applicant that meets their payment deadlines.
An easy way to help improve your credit score is to get yourself registered onto the voter’s roll (if you aren’t already). Being on the voter’s roll shows that you are who you say you are and you live where you say that you live. It’s a simple registration process; head over to the official government’s electoral roll page to find out more.
Make sure that you fill out accurate information when registering for the roll. You will need to provide your current living address, so make sure that there isn’t an old one on their system.
During the mortgage application process, you should make sure that all of your information is filled out correctly, double-check that you’ve not got an old address listed anywhere!
Maxing out your credit card(s) each month can heavily impact your credit score, in a negative way. Of course, paying off your credit cards each month will help and may give your credit score a small boost.
If you are exceeding credit card limits and always dipping in and out of your overdraft, they may feel as if you don’t take your finances seriously and are an unreliable applicant.
Your credit score could be getting harmed without you even knowing if you are still financially linked to someone who has bad credit. Whether it’s an ex-partner or a family member, if they are harming your credit score, you should try and get your financial links removed from them. The only way to do this is to get in touch with your credit reference agencies and make a request.
At the end of the day, it’s up to your lender to decide whether they feel like you are the type of person that they want to be lending to. Some may be more lenient than others, whereas some may be strict and won’t give you some leeway.
Sometimes it’s best to get help from professionals like us. Using a mortgage broker in Leeds could allow you to access new, competitive mortgage products. Whether you’ve got bad credit or good credit, it’s our job to try and find you a product that you perfectly match. We have a huge panel of both high street and specialist lenders, each with 1000’s of mortgage deals for you to try and access.
For further credit score mortgage advice for first time buyers in Leeds and home movers in Leeds, feel free to get in touch today.
Remortgaging is where you switch to a new mortgage product. Some tend to confuse remortgaging with product transfer; the difference between the two is that when you remortgage in Leeds, you change products and lenders, whereas when you achieve a product transfer, you switch mortgage products but stick with the same lender.
Everyone remortgage scenarios can be different. It all depends on what the homeowner wants. They may want to look for a better rate of interest, consolidate their debts, or raise capital for things such as home improvements.
This article is going to be centring more on remortgaging/transferring products for home improvements.
We always recommended breaking down the estimated costs for the home improvements before you remortgage. From extensions to conversions, depending on what you want to improve in the property, the prices will differ.
Once you have worked out your estimated costs, the additional funds will be added to your mortgage. This will slightly increase your overall monthly payments as you are now paying off your mortgage as well as your home improvements. In some cases, your costs may barely increase. Again, this all depends on the home improvements carried out. As a Mortgage Broker in Leeds, we’ve seen some customers go up by an extra £50, to an additional £200.
Estimated costs include:
We would also advise that you have some extra savings aside from the remortgage, as if things go wrong or the costs don’t quite add up, you may have to cover them.
The most common reason for people remortgaging for home improvements is to make more space. Whether it’s because they’re starting a family or want a bit of extra room within their home, the whole process can be a good alternative instead of moving home in Leeds.
Rather than going through the whole moving process, if you already love the home you live in, why move? It often works out that it’s much cheaper to remain inside your current home too!
You can remortgage for various types of home improvements; some include:
Whether you need the extra space or just because you want to refurbish your home, there is always an enticing reason to remortgage. Feel free to contact our team to book you in for a free remortgage consultation, and let’s make a start on your application.
Our efficient team works 7 days a week, so make sure to get in touch to have a chat about your remortgage options. There are other remortgage scenarios to consider, so if you’re going to go down a different route, we would be more than happy to help with that too.
First time buyers in Leeds like yourselves actively seek out your first home or a Home Mover in Leeds with your house on the property market. However, you may have noticed that some of the more notable estate agents and builders would favor that you use their in-house mortgage advisor and conveyancing services.
As a responsive mortgage broker in Leeds, we have no ties with banks, building societies or estate agents, and we work solely for the customers. In the past, we do often find ourselves speaking with customers whom some estate agents have urged to use their in-house financial services. Some of the scenarios include;
Some estate agents have previous track records of refusing to put an offer forward if you decide to use a different mortgage advisor instead of their own. At times they have also declined to put offers forward to the vendor because someone who has used their in-house mortgage advice service has also made an offer that they’d instead show favouritism.
Another sales tactic we see often is the estate agents quoting immensely overpriced conveyancing fees. In the past, we have had clients who have unfortunately had this happen to them; one customer mentioned they got quoted more than £1,500 for a regular purchase.
With our knowledgeable mortgage advisors in Leeds helping out, we got this cost down. Following this, we suggested that the client use another conveyancer in the nearby area and get this down to £750. That’s precisely half of the quoted price.
Once you have made an offer, you might receive a phone call detailing whether you got accepted. However, the estate agent will call up and demand to know which conveyancer you have used in some cases. It seems like the next logical step.
What follows is that the estate agent declined to take the property off the market unless you agree that you will use their in-house service.
As you might imagine, their quotations will be extortionately overpriced and utterly unfair to the customers, but they will put you on the spot and make you feel like you have no choice to take enlist their services.
The good news is that this is something a mortgage broker in Leeds can help you get prepared. The questions that need answering then are as followed:
No, you have the freedom to go wherever you wish when it comes to your mortgage process. You can use any broker, any conveyancing or any other financial service. It’s all down to what you would personally prefer.
You are under no obligation to use the services on offer from the estate agent, as their job is to foresee the sale between yourself and the vendor.
“Keeping everything under one roof is easier with one point of contact.”
“If you use our services, it will give the vendor peace of mind that everything will go through smoothly.”
“We will do all of the chasings of the solicitors for you, and they’ll be more responsive to us due to the amount of work we send them.”
“You need to come in and see our mortgage advisor for your offer to be qualified.”
“Everything is likely to go through quicker if you use us.”
“Free carpet/washing machine if you use our (extortionately priced) recommended conveyancing service.”
“Choose us and your offer is more likely to be accepted if you use our mortgage advisor.”
“Our service gets better deals than most brokers.”
Always remember, when negotiating a purchase price, is it really within your best interests for the person selling the property you’re interested in buying to know your financial situation and potentially know how much you’re able to borrow to pay for that property? Something which they can then use against you to convince you to use their financial services?
Stay vigilant and make sure that they know this and do not guilt you into a trap if you do not want to use it. It’s your mortgage, your offer, your potential home. Getting in touch with a dedicated mortgage advisor in Leeds will help you be as prepared as possible in advance of encountering these tactics.