We firmly believe that there are many positives to taking on the services of an expert mortgage broker in Leeds, more than there would be to going direct. That’s just our opinion though, of course we’d say that!
In reality, there are positives to going elsewhere, so it definitely is worth exploring your mortgage options. Thankfully for us, the majority of people will opt to speak with a mortgage broker in Leeds. That being said, we will take a look at the pros and cons of both routes.
The first tick in the column of Team Mortgage Broker is that whilst most high street banks can be approached directly, not all mortgage lenders can be.
This means that to get the best deal across all lenders, you’ll benefit from speaking with a mortgage broker in Leeds, though a mortgage lender may still have some deals you cannot get going to a mortgage broker.
An experienced mortgage broker in Leeds will typically require a fee, whereas this likely won’t be the case when going direct. That being said, we can help to recommend other services that you’ll need for much cheaper than they might be with a lender.
Previous arguments could be made saying that “the bank manager knows my finances inside out,” but this was a nullified argument once credit scoring was introduced.
If you know what you are doing and what you are looking for, going direct can be a quick and easy process. On the other hand, if you do not know what you are doing, you could harm your chances of ever obtaining a mortgage, as you won’t match all lenders criteria.
A trusted mortgage broker in Leeds will be able to review the different lenders mortgage criteria and will be able to match you up with the most suitable mortgage deal. We always aim to get this recommendation right first time, which more often than not, we do.
In days gone by, mortgage advisors from high street banks would approve you for a mortgage, whether they were adequately qualified or not. You would not benefit from correct mortgage advice or consumer protection.
As 2014 arrived, this type of practice was banned by the government. Only experienced mortgage advisors could go about providing mortgage advice to customers, making recommendations for products.
The downside to having to now having to only speak with specific individuals at a bank, meant you could be waiting months, just to speak with someone. That’s not good if you’re keen to get it done quickly!
Because of this, usage of a mortgage broker in Leeds rose, becoming a much more popular option. As a company ourselves, we offer various time slots throughout the week, allowing you to pick a time that is convenient to you, and not months in advance!
Quite often, if you’re lucky when booking your free initial mortgage appointment, you’ll be able to speak with someone the same day.
Nowadays, the hardest part of the mortgage process is matching up against the right mortgage lenders criteria. It’s also important to remember that deals with the lowest rates often have higher arrangement fees.
At the end of the day, a deal may be really good, but you’ll need to pass affordability checks and be eligible for that deal in the first place. With the help of a mortgage broker in Leeds, you’ll be able to find deals that are suitable for you.
Thanks in part to the regulations that followed after the credit crunch back in 2008, mortgage applications perhaps are not as straightforward as they used to be.
This isn’t necessarily a bad thing, however, as it makes for fairer lending and less chance of anyone falling into arrears, which both customers and mortgage lenders alike would much rather do without.
That being said, there are still a handful of situations that could cause some issues for applicants, of which a mortgage broker in Leeds may be able to help with.
Over our time as an expert mortgage broker in Leeds, we have seen mortgage lenders demonstrating their competitive prowess, trying to offer better interest rates than their fellow mortgage lenders.
Once again because of the changes to regulations, the other difference between these lenders, is their mortgage lending criteria and whether or not the customer can match up with it.
Examples of how these may differ, is that some mortgage lenders may have more products for self employed applicants than others, whereas others may not but will be more lenient to something like bad credit mortgages.
Whatever your situation may be, it is unique to you. When you get in touch with a mortgage broker in Leeds and discuss your case, we may have encountered something similar before and will use that knowledge to help.
As a part of our service, we aim to go above and beyond for every customer who gets in touch with us. Customers rely on our help, so even if it seems relatively straightforward as far as cases go, we will still give it our absolute all.
During your process, one of our mortgage advisors in Leeds will be able to discuss what your budget is for making an offer on a property and recommend additional services such as trusted solicitors and the right property survey to undertake.
They can also run through any potential insurance options with you, helping prepare you and your family for the future, in the event of anything unfortunate occuring that could hinder your families financial state.
A further aspect of our service that is worth shouting about as a mortgage broker in Leeds, is how responsive we are to our customers. Oftentimes going direct can leave you unsure of what is going on and not always being able to make contact.
Our trusted mortgage advisors in Leeds will always keep you in the loop, with availability from early until late, every day of the week, responding as soon as they possibly can, no matter what you need them for.
Additionally, an overlooked factor as to why people may prefer the services of a mortgage broker in Leeds, is that nowadays people just seem to be so busy. It’s often easier to use a professional service, to take the stress off your shoulders.
This is especially beneficial for professional applicants who are dealing with customers of their own, perhaps not having the time to run through their process themselves.
If you would like to go direct, that is great! Generally though, whether a customer is a First-Time Buyer in Leeds, Self-Employed in Leeds, or looking to Remortgage in Leeds, they prefer to enlist the services of an expert mortgage broker in Leeds.
Book your free mortgage appointment today with a fast & friendly mortgage broker in Leeds and we will see how we can help you along your mortgage journey.
So, you have had your offer accepted on a property but, is the house actually worth what you said you would pay for it?
If you are wanting to know what the actual value is and the property’s overall condition, a property survey can help with this.
This survey will mention any significant repairs or alterations needed, like repairing the roof.
There are a plethora of survey options available, however, the most common types include mortgage valuations, homebuyer’s report and a full structural survey. You might find the survey is free of charge, however, this depends on the lender. For more information on the different types of surveys, check out the content below.
The surveys differ depending on the outcomes on the report. For example, you may receive a report that is more detailed and thorough, whereas you might get one that only mentions certain aspects. The more in-depth a survey is, the more it will cost.
Navigating your way through the process can be daunting and you might want to choose the cheaper option. As much as this will save you money at the time, it may not be worth it in the future and become far more expensive.
In the event that you find something on your survey about your property that you weren’t notified about, by law, you can approach the seller and negotiate a fairer price.
The most basic property survey is Mortgage Valuations. You usually have this carried out on when you are working out how much a property is worth. This is helpful to the lender as they need to be sure that the property price matches the amount you are set to borrow from them.
For instance, if you put an offer above the property’s actual value, the seller will likely accept your offer but, your lender won’t. Unless you have the funds to make up the difference, the lender will pull out of the deal which is known as down valuation.
The one drawback with this survey is that it doesn’t highlight any apparent repairs and damages. On the other hand, it can let you know of any obvious structural defects that will require a further look at. If you are looking for a more in-depth property investigation, you will need to pay extra to upgrade your survey. This could be worth it in the long run.
A Homebuyers Report looks at safety. It checks out how safe the property is and if it is suitable to live in. Surveyors will want to know of any mould problems, damp issues or something that does not pass the current building laws.
The report will be carried out by a property expert. They will examine the property from to bottom to see if it’s safe for you to move into.
You might have made an offer on an older building. As a Mortgage Broker in Leeds, we would strongly advise that you undergo a Full Structural Survey.
With the whole property being surveyed, this does make this survey type the most expensive one. This property survey will provide a lot more detail compared to the three primary surveys with showing what condition the property is in and the changes that will need to made if the property price goes through.
A Full Structural Survey can take as long as a whole day, depending on the property size.
It can take a surveyor as long as a whole day to carry out a Full Structural Survey, however, this does depend on the property size.
When it comes to new build properties, surveys work a bit differently. There is a property survey designed for new builds called a Snagging Survey. This will inform you of any minor and significant issues. The issues could range from a crack in the ceiling to a missing hinge on the door.
The new build might be built and ready for you to move into which, in this case, means you would want to look at getting a snagging survey carried out prior to moving in. By doing this, you are able to negotiate the price if there is anything wrong with the property.
If you are wondering which survey is the best one for you, please don’t hesitate to get in contact with our team. We have extensive experience helping many First Time Buyers in Leeds and people looking to Move Home in Leeds find the most appropriate property surveys.
You can receive the services of a surveyor to carry out a Homebuyers report or building survey through the Royal Institution of Chartered Surveyors.
It can be a very difficult time when you have to close the door to a relationship. Moving on, trying to arrange finances and finding where you’re going to live can be very stressful. Your financial commitments to one another must be attended to first. This may not go as smoothly as you would hope and you may encounter some bumps along the way.
Our job is to help you through the financial hardship that you and your ex-partner are facing, in particular, the mortgage side of things. We have a history of helping applicants in this situation and experience helping customers in other specialist situations such as debt consolidation, equity release and buy to let investments.
As a Mortgage Broker in Leeds, we are often able to help applicants going through a divorce or separation. Here are the most common questions asked by customers when it comes to Divorce & Separation Mortgage Advice in Leeds:
If there are children involved in this situation, it is usually the mother who stays inside of the property; this isn’t always the case though. Regardless of gender, it will be the same process for you if you want to remove your ex’s name from the mortgage.
Once you have decided that you are going to be the applicant to remain living inside the property, you will need to try and remove your ex-partner’s name from the mortgage. This is where you and your ex-partner will need to prove that they’re financially stable with their sole income alone. This can be demonstrated in different ways; measuring affordability, costs of living, and eligibility.
If you manage to remove their name from the mortgage and you have demonstrated that you are able to meet your repayments without your ex’s contribution, if by any chance you fail to meet a payment, they can chase your ex for the money. This is because, at the time of taking out the mortgage, you were registered as a second applicant so they can legally still ask for the money from you.
If you cannot demonstrate that you are able to afford your mortgage repayments on your own, then you may need to ask a family member to help out, or in some cases, an applicant will already have another person ready to move in.
It also makes no difference if you and your ex-partner create a verbal agreement that one party will not contribute towards any payments. Until you have successfully removed the name from the mortgage, that party will still remain liable for any payments, should the balance fall into arrears.
The process works exactly the same, however, you are trying to move out of the property and take your name off the mortgage. A recurring problem here is that the applicant remaining inside of the property could refuse to have your name taken from the mortgage. This could mean that you are still liable for any outstanding repayments that are not met by your ex-partner.
We deal with customers in both scenarios in Leeds, and most of the time it can be a complex and difficult situation, as it’s not that easy to remove a name from a mortgage. It also means trying to get a mortgage of your own as a sole name applicant or trying to get a mortgage still linked to another one. Even though you may not be paying anything towards the repayments, it doesn’t mean that you are not responsible.
If your name is still on your ex-partner’s mortgage, you may be asking the question “can I get two mortgages”. The simple answer is yes, however, it is down to your current financial and personal situation.
If you are still financially linked with your partner, your Mortgage Broker in Leeds or lender will assess this situation and be able to determine whether you can afford to be linked with two sets of repayments. Lenders always check ongoing financial commitments, which can include the mortgage payment you currently hold with your ex and any additional commitments you have, such as car payments, phone bills and more.
Our Mortgage Advisors in Leeds will try their best to help you in your situation. We know that not every scenario is the same, therefore, we will make sure that we are fully aware of the full picture before continuing.
Don’t be ashamed of getting Specialist Mortgage Advice in Leeds, we can work out how much you are able to borrow by checking your affordability and then take a look at some potential deals that could be perfect for you. If we work out your budget, you will be able to get an idea of where you stand.
Moving on from previous joint financial commitments can be difficult, and that is why we want to take the stress away and offer a helping hand. Remember that as far as lenders are concerned, it’s all about the risk. They would prefer to avoid repossession situations at all costs.
Over the past three years, more and more people have been investing in home offices and extensions. This is due to job roles altering, people wanting a fresh change and growing families. Rather than Moving Home in Leeds, it may be more financially beneficial to Remortgage for Home Improvements instead.
Home Improvements range from home offices to conservatories to home Gyms. Anything that you can think of adding to your home could be considered a ‘Home Improvement’.
You would think that incorporating home improvements into a remortgage could be costly, however, in the long run, it can work out cheaper. The way that this works is that you incorporate the costs of the home improvements into your mortgage and you pay it off with your mortgage.
If you were to pay for a home office upfront, you would have to pay the full amount there and then, whereas, when you combine the costs into your mortgage, you are spanning the payments out until your mortgage term ends.
Remortgaging for a home office should be less costly than remortgaging for a gym or kitchen renovation. To get the true cost for your home improvements, you will need to get a quote from the renovator or tradesman that you are using. This will then allow you to work out how much you need to incorporate into your remaining mortgage amount.
For example, if your estimated costs are £5,000 for your new home office, you may only have to pay an extra £21 per month on top of your usual mortgage repayments. This is assuming an interest rate of 2% is possible over a 25-year term. If your term is shorter, you may have to pay slightly more per month.
Many factors will affect how much you will have to pay back per month and how much you can borrow overall. It is down to the specification of the home improvement, such as the size of the extension and the amount of work that needs doing in the room. You will also need to consider that with a remortgage, you will also have to undergo another affordability assessment, even if you switch deals through the same lender.
If you consider how much it is going to cost to move home and the stress involved with buying and selling a property at the same time, remortgaging could be the best option. Remortgaging in Leeds for a home office could help you pace your repayments and you won’t need to pay for the full cost all at once.
Now is a better time than ever to remortgage, there are many different deals out there that can help you fund your home improvements. There are also lots of positives to converting a room into a home office in your new property:
If remortgaging for a home office sounds like something that you are interested in, then make sure to get in touch with our team to discuss your options. You can book a free remortgage appointment through our ‘Book Online’ system, it’s simple and easy to follow.
We can access 1000s of remortgage products and deals. Your remortgage advisor in Leeds will search for the perfect one for your personal and financial situation. They will also perform an affordability assessment to make sure that you will pass the lending criteria.
We are looking forward to helping you with your remortgage in Leeds.
Lenders use a credit score to help determine whether you qualify for a mortgage loan or any form of credit. Using your credit report and any other details you provided during your application, lenders use a mathematical model to establish a numerical score representing your credit history.
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+. Your credit score represents what kind of borrower you are and how likely you will manage your repayments.
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 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. We often 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. To speak with a mortgage advisor, book your free mortgage appointment online or give us a call
There are many different reasons you could have a low credit score. For example, 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 six years or more, and that’s why it’s so vital that you try and get the CCJ removed from your file before 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 CCJ’s, failing to stick to credit agreements can 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 adverse effect.
These are just a few examples of things that can negatively affect your credit score. Of course, there are many other reasons you may have bad credit, and some are 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, exceptionally when low, can sometimes be challenging. 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 its 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 many different products, you could try shopping around for mortgage deals that will fit your situation and credit score.
You’ll have a soft or hard credit search performed on you whenever you go directly to a lender, and their in-house mortgage advisor puts you through for a deal. This search will imprint your credit file, and other lenders will be able to see the search.
If your application gets declined, the credit search on your file may harm your credit file, which is why we recommend keeping the number of searches performed to a minimum.
As an expert mortgage broker in Leeds, we can help. Our team of experts will 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 poorly on your credit file.
In some cases, as long as you pay it off, borrowing credit can help improve your credit score, as this shows that you are a reliable applicant who 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).
If you aren’t registered, 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 address listed on the system.
During the mortgage application process, you should ensure that all of your information gets filled out correctly and 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 negatively. Of course, paying off your credit cards each month will help and may give your credit score a slight boost.
If you are exceeding credit card limits and constantly 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, you should try and get your financial links removed from them if they are harming your credit score.
The only way to do this is to contact your credit reference agencies and request.
It’s up to your lender to decide whether they feel like you are the type of person they want to be lending. 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 vast panel of 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 and Home Movers in Leeds, feel free to get in touch today.
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.