A question that we regularly get from customers, is how much will their process actually cost? Generally speaking, First Time Buyers in Derby are the ones who reach out to ask this question the most.
Because of this, we have put together a handy list of the different fees you can expect to pay throughout your mortgage journey, and the different points at which they become payable.
Estate agent fees will generally only be payable if you are selling a home. With general interest in online estate agents on the rise constantly, you can sell your home with much lower fees on a basic Rightmove listing.
On the other hand, if you are looking for a more localised and personal service provided by a dedicated sales negotiator in a local branch, you will be looking at a fee somewhere around 1-2%.
Your mortgage lender will require that you have a valuation carried out on your new home. This is to determine the value of said property, to confirm that it is worth the amount you’re looking to borrow.
The costs of a valuation can vary from nothing at all (for a basic valuation with some lenders), all the way up to well over £100 for a much more detailed Home Buyers’ Report. A full Building Survey can potentially cost more than that.
Really, being able to choose which report you would like is the key here. The valuation you decide will vary based on the age and type of the property you’re looking to buy, as well as any concerns you have.
If it’s a newer property, you may want a basic valuation. If you are buying a period property, you’ll probably want a more in-depth report.
Some of the mortgage products that you will find, will have cheaper rates. Occasionally though, the arrangement fee can outweigh how cheap it is.
This isn’t always the case, as there are products that won’t have a fee, meaning they cost nothing. That being said though, some might have a fee and they could be quite costly, depending on your lender or product.
You may have the choice to either add these to your mortgage balance or pay these upfront. If you add these to your mortgage, you may incur additional interest charges.
You will need to hire the services of a solicitor, and the fees for these can be very different depending on who you speak to. With a local company and a straightforward property purchase, you may find it’ll be around the mid hundreds.
When dealing with a solicitor, you will need to give them your property address. This will apply whether leasehold or freehold. In order to obtain a quotation, they’ll also need to know the purchase price.
The key points to cover when asking for a quote are:
You may need to pay an extra tax on your home, which your solicitor will collect on the completion of your purchase of the property. Further details about who this applies to can be found here: https://www.gov.uk/stamp-duty-land-tax.
A trusted and experienced Mortgage Broker in Derby will typically charge their own service fee. The fee amount will vary depending on the case and the mortgage advisor.
The cost of removing your furniture from your home can vary depending on who you use and the service you are looking for. Hiring a van to do it yourself may be a cheaper option than hiring a removal service, though they will be more efficient.
Book a Free Mortgage Appointment
To learn more about your mortgage options or to get started on your mortgage process, book your free mortgage appointment with one of our mortgage advisors in Derby today. We have frequent appointment availability, at times that are convenient to you.
If you have any amount of equity currently in your property and are looking at your options for potentially Capital Raising, then a Remortgage in Derby could be something you can feel the benefit of.
We often see that mortgage lenders, for the most part, will allow customers to borrow up to 90% of the value of the property.
Below are a handful of examples of how a Capital Raising mortgage can be used by people currently owning a home in Derby:
Taking out a Capital Raising mortgage may be a way for you to potentially ward off any financial issues sooner rather than later.
Whilst having lower interest rates and increasing the amount you borrow for your mortgage may mean paying more monthly, this sort of route may prove more financially viable than taking out any unsecured loans.
Again though, this likely means more being added to your monthly mortgage repayments, for much longer than you originally signed up for, and you may also have to pay an Early Repayment Charge (ERC) as you’ll technically be changing your mortgage.
As a Mortgage Broker in Derby with a wealth of knowledge and experience under our belt, we have a rich history of helping all kinds of customers with their mortgage needs, especially those who are reaching the end of their term and are looking to Remortgage in Derby.
A member of our dedicated team will give you expert mortgage advice on the right path for you to take. If Capital Raising is right for you, your advisor will move forward with that plan.
If they believe that it isn’t right for you, they will advise otherwise and discuss how else you can achieve your goals.
If you are in need of any help to find you the best capital raising mortgage deal for your current personal and financial situation, please feel free to contact us and get yourself booked in for a free mortgage appointment.
You’ll get roughly 45 minutes with a mortgage advisor in Derby who will discuss your requirements and look at how best to proceed.
For any homeowners who are maybe past the age of 55, it may be more appropriate for you to look at Equity Release in Derby.
Your experience within the world of mortgages can be full of rewards. By the end of your process, one of the following options will apply to you;
Regardless of which of these was the desired route, eventually you will reach the end of your mortgage term and need to think about what comes next. At this point you will have a few different options;
A remortgage is where you will utilise funds that have been borrowed from a new mortgage, to pay off your existing mortgage.
Those looking to remortgage in Derby will have a variety of different options to choose from, with both minor and much larger options available depending on the circumstances.
Predominantly you’ll find that the initial mortgage deal you’re on will last for somewhere around 2-5 years, featuring lower fixed rates or even some rates that have been discounted.
Sometimes customers may even be placed onto a tracker mortgage which follows alongside the Bank of England’s base rate.
Most likely, the majority of customers will end up on their lenders Standard Variable Rate once their term has ended. This may be shortened to SVR online.
To give a brief summary, an SVR is a mortgage with an interest rate that is decided depending on what the lender wishes to charge, with the number subject to change.
This does not follow the Bank of England’s base rate like you would find on a tracker mortgage.
Because of how they work, Standard Variable Rates are typically the most expensive mortgage paths a customer can take, which is why many instead look at if they can remortgage for better rate.
In the long term this will hopefully save you some money on your mortgage repayments per calendar month.
A couple of years into your home residence, you may feel like you need something new, something more.
Perhaps you require an extra room or additional living space for your children or furniture, a remodelled kitchen, a new home office, or maybe even a loft conversion.
Rather than just moving into a larger house, a lot of homeowners release equity that exists in their home by taking out a remortgage once their term ends. Doing so can allow them to fund the costs of any home improvements they wish to see undertaken.
Project planning and managing these undertakings can be a little nerve-racking, especially when you also have to obtain planning permission to do any of these projects.
It’s worth noting though that many other homeowners would likely say that it’s a lot less stressful and more rewarding to modify the existing home you know and love, than go through the process of moving home.
At some point in the future, your plans could benefit you even more. This is because creating more space and having good quality craftsmanship has a good chance of increasing your properties value, something that is useful for if you ever do decide to sell up or rent out.
We often find that the customers who contact us are also looking at their options to remortgage in Derby for a better mortgage term.
This can be achieved by reducing the length of the term they are on or switching to a more suitable and flexible mortgage product.
Reducing the length of your mortgage term means that you won’t be paying your mortgage back for as long as you otherwise would’ve, though it increases your monthly mortgage repayments.
The longer that your mortgage term lasts, the lower you’ll make your monthly repayments.
In some cases, customers may prefer to go for a more flexible mortgage term. Doing this may result in you having the option to overpay at a later date, which pays it off even quicker.
Flexible mortgages may also allow a homeowner to carry the same mortgage and rates over to another property, should it ever be necessary in the future.
The concept of a flexible mortgage sounds like it would be perfect for most customers, though they usually be taken out as a tracker mortgage, which as touched upon previously runs alongside the Bank of England base rate.
What this means is that your monthly mortgage payments could differ depending on the interest rate, making them a bit unreliable and inconsistent.
As property prices have risen since the 2007 market crash, most homeowners should have an amount of equity sitting in their property.
The amount of this can be worked out by looking at the difference between the remaining mortgage balance and the current property value.
As mentioned before, many homeowners will use a remortgage as a means to fund any home alterations they’re looking to make. There are still options out there beyond that though.
Some homeowners instead look to use it so that they can cover long-term care costs, provide a boost to their income, take a dream holiday, pay off an existing interest-only mortgage, or simply give them some extra cash to spend.
Every so often when customers get in touch, we’ll also find that some buy-to-let landlords in Derby will use equity release as a means of covering the deposit that they require to purchase further properties for their portfolio.
Following on from the topic of equity release, it’s also important to talk about customers who use their equity to pay off any unsecured debts that they may have potentially accrued over time.
Though on the surface it may seem like a relatively simple concept, debt consolidation will not only take into account the amount of debt owed, but also the properties value and how your credit rating looks at that time.
The factors they look into may actually result in you being limited on how much you can borrow for a remortgage, depending on your personal and financial circumstances.
Further to this, if you are serious about using this to pay off your previous mortgage and your debts, you will need to borrow a greater amount than your outstanding mortgage. Chances are, this will increase your monthly mortgage payments.
None of this situation is particularly ideal, though at least you have the piece of mind that should you absolutely need the help, you have some options to choose from.
If credit rating is in quite a damaged state, there are still routes that you could take in order to find mortgage success. Please remember that these will not be easy and will require very specialist remortgage advice in Derby before you go ahead with them.
Even with a specialist mortgage advisor in Derby to help you out, there are no guarantees that obtaining a mortgage will be 100% possible.
Please always enquire with an experienced mortgage broker in Derby prior to consolidating and securing any debts against your main asset, that being your home.
If you are a homeowner with a mortgage term that is reaching its end and are curious of what your options may be for remortgaging, we would absolutely suggest that you speak with an experienced and reputable mortgage broker in Derby like Derbymoneyman.
Your dedicated mortgage advisor in Derby will have a chat with you about your circumstances, creating a solid plan of action for the next step of your home owning journey.
We always our aim to ensure that the second journey through the mortgage process goes quicker and smoother than your first. Customer satisfaction is at the heart of what we do.
The idea of having one mortgage can stress people out, never mind two! That said, some people weren’t aware that it was possible to have two or more mortgages.
Many various costs come with a second mortgage, and there are many different reasons why someone might want more than one mortgage.
If you have a large amount of equity built up in your home and are looking to release some to fund for a second mortgage to purchase a new home, home improvements or on another property for your portfolio.
Then this is something an experienced mortgage advice team in Derby, like ourselves, can look into for you.
You’ll often find towards the back end of your mortgage that you will be heading onto or potentially already are on a lender’s Standard Variable Rate (SVR).
Our team of advisors may be able to shop around to find you a more competitive deal. Another potential option could be an advance with your current lender.
If you are looking into the possibility of moving house but securing full ownership of your current property to let it out, this is another case where having a second mortgage would be suitable.
Your second mortgage will be a new residential one, taken out on a property after raising funds from renting out the previous home. This particular process is known as a let to buy mortgage.
Some homeowners may look to release the equity sitting in their property, using that income to buy an additional property to add to their portfolio.
We are now seeing more situations where a homeowner may wish to take out a remortgage to release equity to gift their child a substantial deposit.
Gifted deposits are a widely popular option for many first time buyers in Derby who otherwise wouldn’t have gotten on the property ladder any other way.
A second mortgage may apply to other circumstances, such as financial complications present with a divorce or separation.
You may not always be able to get out of your joint mortgage straight away, if at all, but may wish to take out a mortgage on a home of your own once you’ve moved out.
If you have any questions regarding second mortgages, please do not hesitate to get in touch.
You can now book yourself in for a free mortgage appointment to speak with a dedicated mortgage advisor in Derby at a time that suits you and your lifestyle.
Thanks in part to COVID 19, there are a lot of people who are now working from home. It has become a way of working that some people prefer and is something that many people are sticking with permanently.
Technology has allowed people to easily communicate to their colleagues from their homes through video calls and allowed people to have access to everything they need. Having access to a computer, at least, can allow you to be flexible with your work environments like home or office, regardless of what job you have.
If you are looking to renovate your property for a home office, and need to raise additional funds to carry out the work, our mortgage advisors in Derby can help look at your capital raising remortgage options. In many cases, we find people remodel their spare room or a garage as their chosen office space.
Finding a suitable remortgage deal is the next thing to do. This could be done either on your own or with the support of a mortgage broker in Derby. It’s entirely up to you. Another option is to go to the bank directly, but they will only provide deals that are offered in-house.
There are thousands of deals out there so, shopping around can be a good option and this is something you can do with the assistance of a mortgage advisor. You will probably find that the deals the bank offers aren’t as good compared to the ones you may find when you shop around.
Getting a helping hand from one of our knowledgeable mortgage advisors in Derby can be beneficial. We can search through thousands of remortgage deals for you to find the one tailored to your circumstance and future plans.
To kick off the process, start with estimating how much you think the costs for the works are going to be. The costs might range between £5,000 to £15,000. The room size and the amount of work that is needed to transform the room into a fully-fledged office will be factored in the amount you might have to pay.
Remortgaging seems to be in its prime time due to the interest rates being the lowest we have seen in a while. For example, if you manage to get a 2% interest rate on a typical 25-year mortgage term, to borrow an additional £5,000 you may only pay back £21 per month and £65 a month might allow you to borrow an additional £15,000.
The change in working from home could potentially save you money in travel every week. It will also have a big benefit on the environment by reducing your carbon footprint and will allow you to work flexibly around daily errands such as the school run.
Get in touch with a knowledgeable remortgage advisor in Derby if you are looking at converting a spare room or garage into an office. We have a great deal of experience in finding the best mortgage that is tailored to our customer’s needs. Our team knows how to find you that 1/1000 deal!
Here at Derbymoneyman, we offer a free remortgage consultation as well as carefully considering every single remortgage situation. Get in touch today and we will see how we can help with finding the right match for your remortgage needs.
When homeowners are looking to buy a new home for their family, they will likely need to sell the previous house. Equity that is released will be used as the deposit for a home move and can be topped up by savings or gifted deposits if necessary.
Regarding the purchase of a property, there is always a minimum that the seller is willing to accept. Something that could work in favour of the home buyer, on selling your home, the key thing that helps homes get sold is how you market it and present it to potential new buyers.
Sellers should never put forward an asking price over the average for the area. When working with an estate agent, they will likely push for a higher selling price.
Posting on sites like Zoopla and Rightmove is vital for home movers to sell their property, as it generates quick and easy viewings, with the potential of a sale coming around sooner rather than later. If you are getting no interest on your property, there is a chance it has got overvalued.
The best way to prepare for selling a home would be to get yourself in the mindset of a first-time buyer in Derby viewing a newly built property. What would appeal to them? What could entice them to make an offer? First impressions count, and you need to take advantage of this.
Washing your drive and mowing the lawn will show that the house is well looked after and be a possible indication that the inside is just as appealing. The same goes for any messy outdoor environments in either the front or back of the property, tidying up and even putting down a new doormat.
An important note to remember is that buyers may also be interested in viewing the garage and shed, so these are also places you must keep tidy. A simple reorganisation of items can make a space look big and appeal to someone who maybe needs somewhere for storage.
Also, make sure you have a maintained garden with brightly coloured flowers too. It will resonate with most viewers on their journey.
After you have tidied the outside, the next smart move would be to go around the house room by room, being meticulous with the removal of clutter and smell. Here are some other things to check:
– Cupboards and wardrobes should get seen to have lots of space.
– Kitchens and Bathrooms should show a lot of floor space.
– Rooms should be aired, with windows opened, good lighting and matching items such as bedding, towels.
When allowing home viewers to look around, it is essential to make sure they are relaxed, feel at home and have the freedom to look around. It will enable them to get a feel for the place.
With this in mind, it is probably best to have young children or pets away, though if it’s a family home, they are wanting and having kids around could show what their future end up.
You also want to make sure that any viewers do not feel overcrowded, as they may feel pressured and could restrict talking amongst themselves if it’s a couple or family. It helps enhance the sense of space within your home, as with the freedom to walk around, and rooms will feel larger.
Good lighting helps dark rooms shine, so you should move all light blocking plants, open curtains and blinds should be left empty. Additionally, this also helps balance out the heat, ensuring it’s warm but not too warm that it’s uncomfortable. Despite the claim that ‘baking bread’ can help entice people, lingering smells should not be present.
The ultimate factor and selling point is how clean the property is, and it can help improved in a lot of ways, such as;
– Washing curtains.
– Cleaning all floors
– Wiping down walls and windows
Home maintenance also helps out, giving fresh coats of paint to walls and doors, making sure those doors open and close correctly, and fixtures like door and window handles are all wiped down and polished.
Lastly, remember that emotions are attached to buying a home. People buy from people, and if a buyer can relate to your experiences in the house, it will resonate with them and help them picture a future in the property, for example, if it’s a family home.
They are moving home in Derby to start a family. The seller needs to be the one to conduct the viewings, as it shows the viewer they are genuinely passionate about it.
It’s no secret that we think going with a mortgage broker would be your best option, however that isn’t the only path you can take. Sometimes it is worth exploring your options. Generally speaking though, we find that most people opt to side with a Mortgage Broker in Derby. Let’s take a look though at the positives and negatives of both, allowing you to decide for yourself.
As a general rule of thumb, a mortgage broker (like Derbymoneyman) will charge a broker fee on top of the costs you are already needing to pay for. On the flip side, the majority of mortgage lenders won’t require this, leaving you with money still in your pocket.
On top of this, going to a mortgage lender directly will open you up to exclusive deals you can only get through going to them. This attracts business from both those looking to get a mortgage and even mortgage brokers. These are also only allowed to be offered by the broker itself and not just anyone in a branch without proper mortgage advice training or consumer protection knowledge.
Luckily in 2014 this was banned nationwide, only allowing for experienced and fully qualified mortgage advisors in Derby to provide any kind of mortgage advice and product recommendation. This took a while for people to get used to however, and some customers were left waiting for a month, sometimes even more.
Even today, this can still happen to some customers. This isn’t the best when you have already had an offer accepted on a property you like. It’s reasons like this that mortgage applications via mortgage brokers went on the rise. A part of our charm is offering a same day service, hoping to put you through with a qualified mortgage advisor in Derby as soon as possible, often within the same day unless the customer requests otherwise.
In the days before the 2010s, it was a lot harder to look as possible mortgage deal comparisons, whereas nowadays everything is now at your fingertips and easy to find out. The hardest part now is not comparing, but rather finding criteria that you match up with and features that can be tweaked to match your individual situation. It is still advised that you be wary though, as deals with the lowest fees often come with the highest arrangement fees.
Something else to look out for is affordability. You could find the greatest deal in the world with a lender, but if you can’t afford it, you won’t get it. This in turn ends up being a large factor as to why people opt to use a mortgage broker in Derby. Using our knowledge of lender criteria, we will do our best to find you an appropriate and affordable deal for your circumstances.
With regulations these days being a lot tighter (a lot of that being thanks to the Credit Crunch), mortgage applications are not as easy as they once were. For the inexperienced home buyer, it can be an overwhelming experience to go alone. Here are some possible hurdles that customers may find along the way:
Over the years, Mortgage Lenders had gotten rather competitive with each other, trying to offer better deals than their fellow lenders. Due to legislation changes post-Credit Crunch, most of these changes are now in regard to the lending criteria.
Some of these examples include how much they are willing to the self-employed versus the employed, as well as leniency when checking previous credit report issues.
Your circumstances are completely unique to you. Whatever the situation, it is unique to you. When speaking to an experienced Mortgage Broker in Derby about your situation, it will be likely that they have encountered something similar in the past. Hopefully with their experience in play, you’ll end up with the most appropriate deal for you, along with lower interest rates.
Our service is more than just mortgage focused. Even if the application is simple and straightforward, customers will often still rely on a mortgage advisor in Derby for more. Customers are welcome to discuss with us how much they are planning to offer on a property, and we can recommend services such as solicitors and property surveys. One of our most important services is running through any available protection with our customers.
Something else we pride ourselves on is the ability to be a responsive mortgage broker in Derby, offering out of hours and weekend appointments to all our customers. Our dedicated team of mortgage advisors in Derby are available 7 days a week!
A factor that gets overlooked regularly, is that most applicants seem to be busy and need the assistance of a mortgage broker to handle the mortgage proceedings and eliminate possible stress. Professional applicants can reap the benefits of this as well, as they have their own clients that they are able to charge their services to.
In the future, we could see lenders wanting to bring back more customers from mortgage brokers. In this case, it’s unlikely that they will invest in more staff, instead opting for a more technological route.
For anyone looking for a quick and easy process, who is comfortable doing things that way, it’s great. Mostly we find though, whether they are First Time Buyers in Derby, Self Employed in Derby, or looking to Remortgage in Derby, people prefer people and would much rather have human interaction and input in their mortgage case.
Offset mortgages are not as popular as they were in the past. The demand for these types of mortgages has reduced drastically because people aren’t as good at saving as they used to be. However, these mortgages are a fantastic option for customers who are able to put some money aside each month or if some money is inherited or used as a gifted deposit.
When you take out an offset mortgage, the lender opens a Savings Account at the same time which is linked to your mortgage. Whilst the Savings Account won’t gain any interest, the money ‘offsets’ against the mortgage balance, e.g. if you owe £100,000 on your mortgage and you have £18,000 in your Savings Account then you only pay interest on £82,000.
This means Offset mortgages are extremely flexible, and money can be put in until the mortgage is completely offset. Any money that is put in the account is instantly accessible so it’s an ideal place for your ‘rainy day’ emergency fund. The Savings Account saves interest on your mortgage and doesn’t attract tax on anything that’s put in there which is particularly attractive to higher rate taxpayers.
If there is a reason that a lump sum will soon be acquired such as a possible future inheritance then an Offset Saver can be a good place to deposit the money until what is decided to use it on. The same applies to any bonuses that are received through work.
Consequently, there are some negative factors because of the availability to these flexible features. Offset mortgages tend to hold slightly higher mortgages rates and fees than other mortgages. Therefore, if the flexible features aren’t been put to use then it’s best to go with a standard mortgage.
Customers who like Offset Mortgages tend to stick with them and are less likely to remortgage as opposed to other customers. These types of mortgages can sometimes be tricky to understand but are worth looking into with a Mortgage Advisor in Derby. Many people often plan to overpay their mortgages when they first take them out but don’t seem to get round to it, this is often due to being uncertain about paying too much off their mortgage so that little is left for future capital requirements.
So if this sounds familiar then it may be best getting in touch with a Mortgage Advisor in Derby to make sure that the right mortgage is obtained and fitting to the situation that is being sought after.
When the mortgage deal that you initially obtained as a new customer comes to an end, your mortgage lender may offer you a new deal to help persuade you to stay with them for longer, this is known as a product transfer.
Lenders do not loyalty as a means of giving people rewards. The offer they make for you may not be competitive with deals you could get elsewhere regardless of your situation. Even more annoyingly, these product transfer rates are not as good as the deal they are offering to their new First Time Buyer customers.
Whilst swapping to a new deal with your current lender may well be fairly easy online, it is always in your interest to see what other deals you may be eligible for. Lenders will also tempt you to effect a new deal online without taking advice.
This can be really dangerous because if you do this without advice you are waving goodbye to all the valuable consumer protection you would otherwise have benefitted from.
We have seen numerous examples of customers affecting these “follow-on” deals and locking themselves into an inappropriate deal. Because they opted out of advice then they have waived a lot of their rights in terms of making a complaint.
We have had a case where a customer who was pregnant did this and was declined for a small further advance to fund some necessary home improvements a few months later. She then had to pay a hefty early repayment charge to swap to a new lender who would grant her the additional funds.
If we think a product transfer is the most suitable deal for you we will recommend that as a course of action for you and if we arrange the mortgage for you as a Mortgage Broker in Derby then all the regulation and consumer protection will apply.
In short, even if your requirement seems straightforward we recommend you always take advice – a second opinion costs nothing and making a mistake when taking a new product can be costly.
The Remortgage market in Derby is highly competitive and savings can generally be made by searching the market for a new deal.
The majority of high street mortgages which are on the market are portable. A portable mortgage is simply a mortgage that you are able to move from one property to another without paying a penalty. This works out well if you are considering Moving Home in Derby and are currently in the middle of a fixed rate deal because you can potentially avoid an early repayment charge.
It’s important to remember that not all mortgages are portable. If you are with a specialist lender then you may not have the opportunity to port your mortgage. The best way to find this out is to drop a quick call to your lender to confirm whether or not this is allowable.
Even with the availability of porting being available, not all customers choose to do so. Some reasons as to why customers don’t port could be due to factors including lenders not lending the extra money that a person needs to move or that the additional funds will be on a different rate to the one you have on your current deal. Depending on what new deal you are offered you might decide to overlook the repayment charge and swap to a different lender.
A sub-account will be created onto your mortgage when you port your mortgage and the additional monies end up being on a different deal to the original one. This means that although you only have one mortgage and one direct debit, two different rates of interest apply.
Down the line having sub accounts will lead to the different products overlapping which could get annoying. To get them back aligned at some point will mean one of the sub-accounts having to go onto the lenders’ standard variable rate for a period of time.