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.
Straight away, the answer is yes, you can get a mortgage over 40 years old. This does, however, depend on your situation.
In some circumstances, where your mortgage term extends past your intended retirement age, you may be required to provide an estimation of your pension income to your lender.
Over the years we have seen lots of declined mortgage applications from first-time buyers in their 40s. We often find that when dealing with customers aged between 45-54 with declined applications during the last two years, the reason for being declined was due to their age.
In the past, when you visited a building society to seek a mortgage, you’d likely have an appointment with a Branch Manager or Mortgage Advisor. This was before computerised credit scoring and regulations that we know today. The decision process of whether to approve your application would be them looking at personal circumstances such as how well you’ve managed your current account. If they decided to accept your application, then you would be advised of how much you could borrow. This would typically be a multiple of your gross salary.
These income multiples don’t account for age so, you could borrow the same amount if you were 30 or 50 years old. Even though this seems fair, suppose both applicants were due to retire at 65 years old, it would have different effects on both individuals. Let’s explore this example of using a £70,000 (capital and interest) mortgage using a notional interest rate of 5%.
This example shows two identical earners with the same mortgage debt, but the second applicant has a higher monthly payment. Therefore, the risk of repossession and arrears due to the mortgage rates shooting up is likely. This reason is why modern mortgage calculators consider the maximum term of the mortgage (i.e. your age) along with income and expenditure.
Despite being constantly reminded that we will be working until an older age due to State Pensions, banks don’t seem to consider this when granting a mortgage.
One of the requirements when it comes to lenders granting a mortgage to someone beyond retirement age is that you would need to demonstrate that you can afford the payments after retiring. To prove this, it’s best to obtain a letter from your pension provider that showcases your future income. The problem is that the majority of people reading this will likely take a reduction in income at retirement. Therefore, it’s expected that you can still afford your mortgage from that reduced income. In reality, this can hardly be a success unless you require only a very small mortgage so you wouldn’t probably need to stretch the mortgage past your retirement age anyway.
In 2011, the default retirement age was scrapped, and your employer can no longer force you to retire. Therefore, fewer lenders are using the State Retirement age as the age you must have your mortgage paid off by, and the majority are letting people decide the age they intend to retire.
When you’re over 40 and seeking a mortgage, you are questioned on how you would afford your mortgage in the later years. It’s key to remember that these regulations are there to protect consumers and sensible lending. In some circumstances where your mortgage term runs past your normal state retirement age, you will need to demonstrate that you can keep your payments sustained and provide this proof if requested.
Please note that the above information is for reference purposes only and is not to be viewed as personal financial or mortgage advice.
A CCJ, short for County Court Judgement, is a court order issued in the UK to residents who fail to pay back any owed payments.
Having one of these court orders associated with your name can actually have quite an adverse effect on your credit file, reducing your ability to take out any form of loan in the near future. Included in this, is a mortgage, possibly the biggest loan anyone will ever take out. If you have a CCJ preventing you from obtaining a mortgage, you will benefit from speaking to a specialist mortgage advisor in Derby.
Our hard working team have lots of experience within this area, dealing with CCJ mortgages on an almost regular basis. Feel free to speak with our dedicated team, who will be more than happy to lend their expertise to your case.
When applying for a mortgage with a CCJ tied to your name, your mortgage advisor in Derby will need to look at a few things with you. These include:
???? How many CCJ’s are currently registered to your name.
???? Are the CCJ’s settled or unsettled.
???? How much your deposit is.
???? The value of the CCJ.
???? The date that the CCJ(‘s) was/were registered.
If you fail to keep up and ultimately miss any form of payment that is owed, you may find yourself with a County Court Judgement. This could occur from regularly missing a small loan payment such as a phone contract, to consecutively missing your mortgage payments. A CCJ can seriously harm your credit score.
When you are issued a CCJ, you will be given 30-days to pay off your debt. This is known as a satisfied CCJ. If you are able to meet this deadline and pay it off in time, the CCJ may be stripped from your credit file. That being said, if you fail to meet this payment, it will remain present on your credit record for a total of 6 years, known as an unsatisfied CCJ.
Concerns and complications aside, this can still happen! By having a reputable mortgage broker in Derby like ourselves working alongside you, it is not outside the realm of possibility to get a mortgage with a CCJ.
Providing you kept on top of your finances are were able to meet the 30-day deadline, the CCJ can be withdrawn from your records, which in turn would increase your chances of obtaining a mortgage. Failing to meet these payments within the given time frame will leave the CCJ linked to your name for 6 years.
If we’re dealing with a recently issued CCJ, getting accepted for a mortgage may be a little more difficult. This will often depend on how much of the payment that is owed has been paid off, and how much is still remaining. Also, the further away you are from the initial issue date, the more likely you are to be accepted for a mortgage.
We have a variety of unique specialist mortgage lenders on panel, each with their own specific lending criteria relating to CCJ’s and how much deposit you will need. It’s our job to know all of their lending criteria well, in order to recommend the most appropriate mortgage for your personal situation.
When you have a CCJ linked with your credit file, lenders will require more information from you regarding the CCJ. They will look for any underlying issues, like if you already owe money to another mortgage lender, as well as the effect your financial state could have on the property and how you well you can manage your overall finances.
It may be harder to get accepted for a mortgage with a CCJ, though with the help of a mortgage broker in Derby and a different approach, such as trying to improve your credit score, this may be possible.
Though it may be difficult, by providing enough evidence, it may be possible to remove your CCJ from your records.
On the chance that you feel like something isn’t quite right and you have been given a CCJ by mistake, you can ask for the court to re-open the case against you. You will need to fill out an N244 form and send it to the court in order to appeal against your CCJ and save your credit file from further duress.
If the court agrees that the CCJ was wrongly issued, they will remove it from the register clearing it from your name. For this you will be given a certificate of cancellation, though you will have to pay for this yourself. Any costs involved are arguably worth it though, for the benefits reaped from undertaking such an action.
If a CCJ is left unsatisfied, it will still be removed from your credit file after the 6 year mark. As mentioned before, the further away you are from the CCJ issue date, the more likely it is that you’ll be accepted by a lender for a mortgage.
It is important to note though that if the debt has not been settled within the 6 years of you being issued the CCJ, your chances of being accepted are still slim. This means you can’t just wait out the 6 years and hope it will all work out.
The lenders confidence in you will increase the quicker that you pay off your debt. Remember though, that each lender is different and will look at a CCJ differently to another lender. In some cases, you may find that a lender will not even work with you at all. It’s reasons like this why it’s incredibly beneficial for you to approach a specialist mortgage lender in order to see what your options are.
In order for you to get your credit score back on track, you will definitely benefit from taking bad credit mortgage advice in Derby. You must keep up-to-date with your mortgage payments, current financial commitments and your CCJ over the course of this 6 years. Even if you’ve paid it off within the 30-day window, you should still be wary of your finances and be certain to make sure this absolutely never happens again. This is because having multiple CCJ’s to your name can hurt your credit score even further.
If you want more free mortgage guides, tips and tricks on how to improve your credit score in Derby, feel free to check out our guides or contact us now and speak with our amazing team of specialist mortgage advisors in Derby today.
The inflation of property prices has vastly outstripped the increases in standard wages over the years. Nowadays a home buyer may have to purchase a property with a friend or partner in order to be able to afford a property.
This all boils down to measuring affordability. With two parties to look at, lenders will be calculating two incomes rather than one, potentially increasing the maximum mortgage amount. Of course, the mortgage will be more affordable between two people as there will be someone to split the costs with.
In some cases you’ll find that there are mortgage lenders that will allow up to four people co-own a property together. Because there are multiple parties involved, this can cause some debate with changes in circumstances. For example, if one borrower decided to stop their contributions to the group mortgage payments, the lender will still chase the rest of your group for payment.
Further from that one, all the joint owners still hold a legal right to stay within their home unless a court rules otherwise, which means that the person withholding their contribution doesn’t have to leave as they’re still part owner of the property. It’s with this in mind that you need to be very selective about who you buy with.
If one of the parties wishes to increase the mortgage at some point in the future, then all borrowers need to provide their consent. It is best practice to plan ahead for down the line, just for in case someone ends up with a different plan in mind or some circumstances change.
It is common with couples who are married, in civil partnerships or simply cohabiting, to opt for joint tenancy on a mortgage. Tenants in common are often chosen by relatives or friends who are looking to buy a house together. You will need the consent of the other applicant if you are wanting to sell or remortgage the property in the future.
For a tenancy in common will still jointly own the property, but there is no legal requirement to do so in equal shares. This works out best if one party is earning significantly more per month than the other. In addition to this, you can act individually if you are a tenant in common. This means that you can freely sell or give away your share of the property to someone else, if you wish to remove yourself from that setting.
In these cases, if one of you were to unfortunately pass away, the property will be in possession of the other owner on the mortgage. It is recommended to take out life insurance to protect yourself for this down the line. If this were to happen, the mortgage would be repaid at that point.
All mortgage borrowers are jointly and severally liable for the upkeep of the mortgage payments. If one of the party stops paying then all of the parties involved have to make up for the shortfall to prevent possible mortgage arrears.
It’s important to try and get on top of this as early as possible. The reason for this is because falling into arrears could possibly stop you from getting another mortgage further down the line. The best way to view your mortgage situation is to interpret it as you don’t own 50% of a property, you own 100% of it jointly.
If things don’t particularly go how you’d intended them to, whether it be a disagreement with your co-owners or the breakdown of a marriage/relationship, you may look to either remove others from your mortgage, or remove yourself from their mortgage.
When this happens, it is worth speaking to a trusted specialist mortgage advisor in Derby to see what your options might be. For more information on divorce and mortgages, please see our article “divorce & separation mortgage advice.”
It is very sad when you and your partner decide to call it a day. When you have made joint financial commitments unwinding that side of things does not always run as smoothly as you’d hope.
Here are three main questions that we get asked on divorce and mortgage advice on a regular basis:
Obviously, when you buy a home together you don’t do so with the intention of splitting up in the future but it is a massive financial commitment and making changes to your mortgage further on down the line is not always easy.
When there are children involved, quite often it’s the mum that stays in the property but regardless of gender, there may come a time that whoever is residing in the property wants to take over the mortgage in their own right.
The fact that you may be able to demonstrate you have been paying the mortgage without any help from your ex, does not change the fact that at the point of application you bought the property jointly or, in other words, in the event of mortgage arrears there are 2 people the lender is allowed to pursue.
Before removing a party from a mortgage the lender has to be sure that the remaining applicant has the means to be able to afford the mortgage on their own going forward and this means a full assessment of income regardless of whether you have kept up mortgage payments in the past or not.
Quite often in these situations, there is someone who can step in to replace the ex-partner such as a family member or indeed your new partner.
Of course, there are lots of mortgage lenders out there all with slightly different ways of assessing your ability to afford a mortgage so don’t give up hope if your existing lender says no, we still may be able to help you. Coming to us and receiving Specialist Mortgage Advice in Derby, could give you that little boost that you need to get the ball rolling.
If by chance, you and your partner do split up and leave the property in question then you remain responsible for mortgage payments. Even if it’s an agreement between you and your ex that they will make all the payments.
If you are sending your partner money each month, you should keep an eye on your own credit report to ensure that they are paying the mortgage because if they default it will impact your own score.
If you are still connected to an old mortgage then the payments for that will be taken into account if you are looking towards buying a new home and ultimately lenders might not lend as much as you might like.
Buying a home with anyone is a risk to it’s best that you plan ahead for as many outcomes as possible, unquestionably it’ll be impossible to plan for all scenarios as there are too many factors and variables but if you do fall into hardships then getting Specialist Mortgage Advice in Derby could prove extremely beneficial.
The answer to this one is usually yes. Lenders and their credit scoring systems take many factors into account before they offer you a mortgage. On-going financial commitments are just one of these. The mortgage payment you hold with your ex will need to be inputted, alongside any other credit commitments you may have.
Once we’ve keyed all this in for you our system will confirm the maximum amount you are able to borrow. So you know your budget at outset and how much deposit you will need to put down.
It can be difficult to move on from your previous joint financial commitments. Just remember it’s all about risk as far as lenders are concerned. They want to avoid repossession situations at all costs.
Several reasons can warrant why someone would apply for a mortgage as a sole name mortgage while married. Sometimes a sole name mortgage can be more suitable than a joint mortgage for one of these reasons below:
???? One applicant has a low income.
???? One applicant is not working.
???? Your partner has poor credit.
???? Your partner already has a residential mortgage.
???? You are using a deposit from your servings.
???? You want to retain certain stamp duty benefits.
These are just some of the reasons to take out a sole mortgage when you are married. In any case, you must prepare your application to improve your odds of approval. Our Mortgage Advisors in Derby are here to guide you through your mortgage application.
You’ll need to take a tactful approach if you want to apply for a mortgage as a sole applicant. It’s all about getting a great deal to match your circumstances.
Your reason for getting a mortgage in one name is an essential factor for our mortgage advisors in Derby to understand. For instance, if you don’t wish to apply for a joint mortgage because your partner has bad credit, you may find that you’re able to get a joint mortgage even if one applicant has bad credit. If your partner earns little or no income, there may be lenders willing to place you both on the mortgage.
On the other hand, if you want to purchase in your sole name for personal reasons, some lenders might be likely to approve of you. Most lenders are not comfortable with this arrangement because you are purchasing a marital home for you and your partner. As permanent residents, lenders prefer both partners to be on the mortgage. To help avoid potential conflicts in the future regarding who can and cannot live in the property.
If you are separating from your partner or going through a divorce, it makes perfect sense to look for a mortgage in one name while still married. One possibility is to buy your partner’s share of the property from them and in doing so, removing them entirely from the mortgage.
There are several mortgage options under these circumstances. Furthermore, there can be many different scenarios regarding divorce and separation. You may be moving out and buying an entirely new home, or you may be staying put and buying your partner out. Nevertheless, both situations would warrant a new mortgage.
Divorce and separation can be straightforward if both parties are amicable. If the relationship has turned sour, it can make things a lot more complicated. As there are so many different options and variables here, consult our advisors who can provide you with a more tailored answer regarding your circumstances. Lenders may ask for evidence of separation, so do have all your paperwork to hand before applying with a lender. Our mortgage advisors in Derby will also check this before the application stage.
Getting the right advice before applying for a mortgage is very important, especially if you’re married but want to get a mortgage in one name.
Being married and applying for a mortgage as a sole applicant will need specialist mortgage advice in Derby. As a result, our mortgage advisors’ expertise in derby might be able to help. Make an enquiry to get started today.
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.
When you start out looking for a mortgage you will soon realise that there are lots of different options available. Below you will see a list of the most popular types of mortgages available on the market and hopefully. If you have any questions regarding any of the below mortgage options, then please do not hesitate to contact us.
A fixed-rate mortgage means that your mortgage payments are going to stay the same for a set period of time. You can set the length of which you want to fix your payments for, typically this being 2, 3 or 5 years or longer. No matter what happens to inflation, interest rates or the economy you know that your mortgage payment, usually your biggest outgoing, will not change.
A tracker mortgage means that your interest rate will track the Bank of England’s base rate. So in other words, the lender that you are with does not actually set the rate themselves. You will be paying a percentage above the Bank of England base rate. In an example, if the base rate is 1% and you are tracking at 1% above base rate, that means you will be paying a rate of 2%.
When you take out a repayment mortgage this means that each month you are paying capital and interest combined. So as long as you keep your payments going for the full length of the mortgage term, the mortgage balance is guaranteed to be paid off at the end and the property becomes yours.
This is the most risk-free way to pay your capital back to the lender, in the early years it is mainly the interest that you are paying and your balance will reduce very slowly especially if you have taken out a 25, 30 or 35-year term. This situation switches in the last ten years or so of your mortgage, where your payments are paying off more capital than interest and the balance will come down much faster.
Whilst many Buy to Let in Derby mortgages are set up on an interest-only basis, it is much more difficult to get a residential property on an interest-only basis.
It is much less likely for lenders to offer an interest-only product now. However, there are certain circumstances where this can be an option. These include downsizing when you are older or have other investments what you will use to pay the capital back. Lenders are very strict when it comes to offering these products now and the loan to values are a lot lower than back in the day.
With an offset mortgage, the lender will set you up a savings account to go alongside your mortgage account. How this works is that let’s say you have a mortgage balance of £100,000 and £20,000 is deposited into your savings account, you only pay interest on the difference, so in this case £80,000. This can be a very efficient way of managing your money, especially if you are a higher rate taxpayer.