Over the years, there has been massive inflation in property prices which has outstripped the cost of living. Sometimes, this results in a home buyer purchasing a property with a friend or partner in Derby so they can be able to afford a property.
It’s all about measuring affordability. Because there are two parties, lenders will be looking at two incomes rather than one which in turn could increase the maximum mortgage amount. By contrast, the mortgage will be more affordable for two people rather than one because there will be someone to split the costs with.
You may find that some mortgage lenders will allow up to four people to co-own property together. With multiple parties involved, this can result in some debate with changes in circumstances. A situation of this could be that one borrower stops their contributions to the group mortgage which would result in the lender chasing the rest of the group for payment.
All joint owners still hold a legal right to stay within their home unless a court rules otherwise. This means that the individual who is withholding their contribution doesn’t have to leave because they are still part-owner of the property. The point that has been mentioned are just some of the reason why it’s important to be careful about who you buy with.
In the case where one of the parties is interested in increasing the mortgage further down the line, it’s important that all borrowers agree to this. Planning ahead for down the line is wise and can cover you in case there is a change in circumstances.
A joint tenancy on a mortgage is a popular option amongst couples who are married, in civil partnerships or simply cohabiting. When it comes to tenants in common, these are usually beneficial for relatives or friends who are looking to buy a house together. For those looking to sell or remortgage the property in the future, you will need the consent of the other applicant.
Even though a tenancy in common involves you jointly owning the property, it doesn’t mean you have to when doing it equally in shares. As well as this, a tenant in common does mean you can act individually. Furthermore, acting individually means you sell or give away your share of the property freely if you decide to move away from the situation.
In the unfortunate event that one of you passes away, the property will be in possession of the other owner on the mortgage. This is where life insurance in Derby can serve as a benefit as the mortgage would be repaid at that point. Here at Derbymoneyman, we can help explore your life insurance option and find you a product that is perfect for your situation.
When it comes to the upkeep of the mortgage payments, all mortgage borrowers are jointly and severally liable. In the case where one of the parties stops paying then all of the parties involved are required to make up for the shortfall to prevent possible mortgage arrears.
This is why it’s important to try to keep up with this as early as possible. Falling into areas could affect you negatively when it comes to getting another mortgage in the future. A good way to look at your mortgage situation is to see it as you don’t own 50% of a property, you own 100% of it jointly.
In the case where things don’t go the way you intended them to, like a disagreement with your co-owners, or a separation of a marriage/relationship, this could result in you removing others from your mortgage, or removing yourself from their mortgage.
If you are in this situation, it can be helpful to speak to an expert specialist Mortgage Advisor in Derby who can explore your option for you. For further information regarding divorce and mortgage, take a look at our “divorce & separation mortgage advice” article.
When you are going through the mortgage journey, you may find that you encounter some obstacles along the way. In some cases, this can get complicated!
Through our experience as a Mortage Broker in Derby, we have dealt with a range of mortgage hurdles. With over 20 years in the industry under our belt, we have encountered many complex situations both common and unique and can provide you with the solutions. In the rare case that we are confronted with a situation, we haven’t seen before, our team will work hard in overcoming it and provide support through the process. These hurdles may not be familiar to you, in particular as a First Time Buyer in Derby, we hope that we can help!
Having your mortgage application turned away because of having children is unusual, but not having children can increase your chance of an offer acceptance.
From a lenders point of view, they want to make sure an applicant can manage all of your mortgage payments along with current expenditures. With this in mind, childcare costs are classed as expenditures each month. They have to take these costs into account as these costs can run into the hundreds per month. It is known for childcare costs to go down, they always increase! It’s always seen as a financial commitment and is treated the same way as a car loan or hire purchase agent.
Regardless of if you don’t have to pay nursery fees to pay, having children could mean you are offered less than other buyers who don’t have children. The one positive of this is that families can often be in receipt of tax credits and many lenders will take these into account and child benefit.
It’s unfortunate when divorce or separation occurs, however, if you decide to end things with your partner, financially related issues can happen. In particular, mortgages.
It can be challenging for lenders to accept your application when you are financially linked to someone else. This is because they would prefer that applicants not to have two different sets of mortgage payments to meet each month, it could be difficult to manage.
In this situation, many people have approached us looking for Specialist Mortgage Advice in Derby and have sometimes asked these questions:
We find that mortgage hurdles like these can get difficult, very quickly. Most of the time, there is a way around these scenarios, it’s just knowing how. Having a Mortgage in Derby by your side, like Derbymoneyman, can help relieve any stress you may have during these difficult times.
When it comes to benefit income, lenders have varying opinions on this, including the assessing aspect of it. The good news is that benefit income like a child tax credit, working tax credit, disability benefit and pension can all be included one way or another.
Please don’t hesitate to get in contact with us if you want additional information regarding mortgages and benefit income. Here at Derbymoneyman, our team will look at your situation and find you a lender that will consider your benefit income.
When you get a new job, normally you will be getting a larger salary which in turn can be used towards something like a new mortgage. Because of this, you may assume that you are more likely to get a mortgage but, this is not always the case.
At the beginning of your new job, you will normally have a probationary period. These are normally fine but there is still some uncertainty there. Therefore, lenders may only accept you when you have job security, this all depends on the lender and the mortgage costs.
In order for the lender to know your work patterns, they will look into your employment history. This is so lenders can see if you are the type to dip in and out of work. Having gaps in employment can have a negative effect on your application.
Some lenders will work from a newly signed employment contract even in month one or if you are about to start your new job.
With any purchase, all mortgage lenders and mortgage broker are legally required to evidence the source of the borrowers’ deposit funds. Evidence of the deposit may be required from your estate agent and your solicitor.
As an expert Mortgage Broker in Derby, we feel this is the most challenging part of applying for a mortgage and could cause issues if not done correctly. You are required to have the part audit trail for the funds if your deposit was from savings, premium bonds, the sale of another property, gifted from a family member or friend, from family overseas or from a personal loan.
It can be a daunting experience taking that first step into the mortgage world, or starting the mortgage process for the second or third time around.
With many options for homeowners and homebuyers to take for themselves, it is best to get it right the first time, especially with a lot of money involved.
Whatever your mortgage goals and situation is, the tailored and friendly service we provide as a Mortgage Broker in Derby will help you through your mortgage journey, especially for first time buyers in Derby.
As much as we know and are confident in our ability to help our customers through the mortgage process, we understand the process can be complicated and may wonder how obtaining Mortgage Advice in Derby can help with this.
In this article, we have collated an overview of why approaching a Mortgage Broker in Derby may help you in some cases, and why many people prefer to go direct to the mortgage lender instead.
Many believe that you are more likely to save money by doing direct and finding your own mortgage deal. This isn’t entirely the case, as a Mortgage Broker in Derby may charge a fee, however, this does base on circumstances.
It might be easier and more cost-effective if you have a lot of knowledge and have a straightforward case, however, it can be more complex depending on your situation so approaching a Mortgage Broker would be beneficial.
It can be risky choosing this option as not having a lot of knowledge could result in your ending up on the wrong deal or being unsuccessful on your mortgage deal. Either of these circumstances could end up you spending more money than you have to or harming your credit score which can impact your chances of applying for a mortgage in the future.
With a dedicated Mortgage Advisor by your side, they will be able to help you through the journey towards achieving your mortgage goals. Their aim is to get their recommendation right the first time, at the best possible price. As much as this will come with a service fee, it could mean you are saving a lot more money in the long run.
Loyalty can be one of the reasons why many customers decide to approach the bank directly, and how the mortgage process was previously run. This was the way to go before the rise of technology and online banking in which loyal customer would approach their local branch on a daily basis, usually speaking with the same person.
In terms of the mortgage process, you would get help and guidance from the bank manager themselves, who is an expert and has a thorough knowledge of your finances so would be the best person to approve a mortgage for you. Now, the process is a lot different with the credit scoring being digital.
Because of this, the bank manager won’t physically go through the case themselves, it will go through a complex online system in order to see whether or not you are eligible for a mortgage. Everything is fair regardless of which bank you are with.
Many do believe that by going direct, you are open to better, exclusive deals. Again, this is true to an extent, however, it’s it can be limited. This is because they are only offering the best deals from their company.
Not all mortgage lenders are banks and there are many more mortgage options available to choose from. Therefore, the deal that the bank feels is suitable for you, might not be the best deal beyond the bank that you could’ve gone with.
Getting expert Mortgage Advice in Derby can be the best way to get a competitive deal that is suitable for you. One of our expert Mortgage Advisors in Derby will be able to go through your case and find you the best deal from our large panel of lenders. This is another advantage of approaching a mortgage broker instead of just a bank.
Following on from the topic of deals, you may find approaching a Mortgage Broker in Derby can provide you with exclusive deals that you can’t find anywhere else. There will be a large range of options when you with a mortgage broker regardless of if you are a first time buyer, moving house or looking to Remortgage in Derby.
In the wake of the 2007-08 credit crunch, a massive improvement in the mortgage market needed to happen. One of these changes was stated in the 2014 Mortgage Market Review, which instructed lenders to no longer sell mortgages to their customers without extensive, expert advice.
Because of this, people could not just approach a bank to tell them they wanted a mortgage and be instantly granted with no checks. Not every staff member in the bank could grant you a mortgage which was something that happened regularly regardless of if they were qualified to do so or not.
As well as this, these changes also bough about consumer protection, which a bank wouldn’t have given you. Now, you are able to place a complaint with the Financial Ombudsman in the event you feel misadvised. Another way to make a claim is through the Financial Services Compensation Scheme.
Having this in place means reassuring a customer that they will be safe and advised accordingly regardless of what mortgage journey they take. This applies to both mortgage brokers and mortgage lenders.
Another drawback you get approaching a bank instead of a mortgage broker is the timing. If you approach a bank, it can take months to try and talk with someone at a bank. Furthermore, when you do begin the process, you’re not updated as much through the mortgage journey.
Here at Derbymoneyman, our responsive team will get in touch with you at a time that is best for you and your day to day life. From early until late, 7 days a week, including weekends, our Mortgage Advisors in Derby will be available to answer any of your questions and keep you updated. You might find us being contactable on some bank holidays.
In some cases, you may find yourself attending your appointment on the same day, however, this doesn’t have to be the case. You can speak to someone any time that you are ready and available.
We understand every customer’s lifestyle is different. This is why our advisors have availability throughout the day which means you can book an appointment out of your 9-5 or even on a weekend! Booking is simple with our online booking system where you can find an available slot to speak on an advisor.
Responsiveness is a core value within our company. Regardless of if you are at the very start of the process or towards mortgage completion, our friendly team will always keep you up to date. In the event that any changes arise, your advisor will contact you as soon as possible.
Providing this high-quality service is why many Mortgage Broker in Derby, like us, are favoured in the public eye. With this popularity, many people favour approaching local experts instead of national banks.
Through our extensive experience in the industry, we have found some cases are more tricky than others. Below are just some scenarios that are a bit more difficult than the usual case:
Previously, mortgage lenders could easily compete with one another by providing deals that were better than the other. Now, the main change in which deal you go with is if you match the criteria or not.
You might find a cheaper deal but it may not match your criteria. In order to see if you are able to have a mortgage, the mortgage lender either carries out a hard search (resulting in a footprint on your credit file).
In the circumstance where you apply for the mortgage with a lender and are declining an agreement in principle, this could harm your credit file. The most frustrating about it all is that it’s very unlikely you will be given a reason as to why you were declined.
A Mortgage Broker in Derby will be able to go through your case and advise you on ways to increase your chances .of being accepted.
With access to a large panel of lenders, they will be able to find you a suitable deal that perfectly matches you up with its criteria and then begins to get an agreement in principle sorted for you. If you obtain an agreement in principle through Derbymoneyman, this will usually be sorted for you within 24 hours of your free mortgage appointment.
Remember, this doesn’t automatically mean you are agreed or guarantees you a mortgage at the end. It does, however, make your credit file much safer by having an expert go through it beforehand. Our team of Mortgage Advisors in Derby will always aim at getting our recommendation right the first time.
At the end of the day, it’s entirely up to you! There are advantages and disadvantages of approaching a Mortgage Broker in Derby. On the hand, there are lots of pros and cons to going direct as well. The difference is how quickly you want your service to be, as well as how secure you want to be.
As a dedicated Mortage Broker in Derby, we have extensive experience in dealing with a wide range of customers who go through the mortgage journey. Whether you are a first time buyer in Derby taking that first step into the mortgage world, coming towards the end of their fixed period, or looking to remortgage in Derby, our team are more than happy to help!
Book yourself in for a free mortgage appointment or remortgage review to speak with an expert, FCA regulated Mortgage Advisor in Derby. Our team are here to help with your mortgage goals, with availability that suits you, subject to eligibility.
For more information about our service, check out our brilliant customer reviews. These show the high level of service we give to our happy customers, on a daily basis. We also have a YouTube channel MoneymanTV if you are looking for additional insight into the mortgage world.
There are many reasons why an individual would apply for a mortgage as a sole name mortgage while married. In some cases, a sole name mortgage might be more appropriate than a joint for a number of the 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.
Above are just a selection of reasons to take out a sole mortgage when you are married. Whatever situation you are in, it’s important to prepare your application to improve your odds of approval. Our Mortgage Advisors in Derby are here to provide a helping hand through the mortgage journey.
If you want to apply for a mortgage as a sole applicant, it’s key to have a strategic approach. The aim is to get you the best deal that is perfect for your circumstances.
When you get in touch with Derbymoneyman, our Mortgage Advisors in Derby will need to know why you are wanting to get a mortgage in one name. This is so they can look into other potential opportunities, for example, you may not want to apply for a joint mortgage because your partner has bad credit. However, you may find that there is a chance you can get a joint mortgage even if one applicant has bad credit.
For applicants who are looking to purchase in their sole name due to personal reasons, this might be something lenders will allow. It can be common for lenders to not be comfortable with this arrangement because you are purchasing a marital home for you and your partner. Being permanent residents, lenders do like for both partners to be on the mortgage. This is to prevent any potential conflicts in the future about who can and can not live in the property.
In the unfortunate case where you decide separate from your partner or are going through a divorce, this is where getting a mortgage in one name could be utilised. You may have the option to buy your partner’s share of the property from them meaning you would remove them fully from the mortgage.
If you are in this situation, there are a number of mortgage options to choose from. This is because there are many scenarios when you are going through a divorce or separation. These include you moving out and buying a new home or you might decide to stay put in the current property and buy your partner out. Either way, both would mean you would need to obtain a new mortgage.
As long as both parties are cordial when going through a divorce or separation, the process can be pretty straightforward. A relationship that is causing conflicts can make things challenging. With a large variety of options and variables available, our Mortgage Advisors in Derby can provide you with a more tailored answer about your situation.
You may find that lender will require some evidence of separation so it’s key you have all your paperwork prepared prior to applying with a lender. Our team can look over this before the application stage.
If you are married but want to get a mortgage in one name, it can be important to obtain suitable advice prior to applying for a mortgage.
As a married individual applying for a mortgage as a sole applicant will require to obtain specialist Mortgage Advice in Derby. Get in touch with our team today.
When we deal with a customer who is looking to remove a name from a mortgage as a Mortgage Broker in Derby, we commonly find that the reason is divorce or separation. In this situation, the homeowner may decide to remove their name or their ex’s name from the mortgage.
During a divorce or separation, financial commitments should be at the forefront of your mind as they are deemed an important factor to sort out. Despite this, they do seem to be left until last. This is can be a challenging process as it can be stressful and time-consuming, therefore, sorting that out first can make the process a lot easier.
First, you will need to see if you are able to be on the mortgage as a sole applicant. This will be determined by your lender, building society or Mortgage Broker in Derby who can assess whether or not you will be able to live comfortably with just one income. As well as this, the individual remaining on the property must also be able to keep up with the mortgage payments on their own.
Before proceeding with removing a name from a mortgage, it’s important that both parties must agree. In the case where one party doesn’t agree, the situation would need to be taken to court before they can proceed. As a result, this can become time-consuming and costly.
If you are going through a divorce or separation, it can be beneficial to seek specialist Mortgage Advice in Derby. This is where you can speak to an expert which can be helpful further down the line.
In the circumstance where you are looking to remove a name from a mortgage, it may be beneficial to seek support and help with the process which can be done through obtaining specialist Mortgage Advice in Derby.
Here at Derbymoneyman, we can connect you with an expert Mortgage Advisor in Derby who can get an idea of your situation. As mentioned, the person that you want to remove off the mortgage will need to be agreed to be off the mortgage. If they are adamant that they don’t ant to be removed, this can be a challenge.
Our team are available 7 days a week to answer any questions and support you on your mortgage journey. Get in touch today and book yourself in for a free mortgage appointment.
Lenders vary in the way they work by using different ways of deciding who gets accepted for a mortgage and who unfortunately doesn’t. Because of this, some lenders are stricter than others. Therefore, the goal is to match you up against a particular lender’s criteria and how good your credit score is.
Our team have encountered situations where a customer’s mortgage application has been declined due to the applicant failing to meet the lender’s criteria on a specific deal. This is why it can be beneficial to seek the help and support of an expert Mortgage Broker in Derby. Here at Derbymoneyman, we have a team of friendly and knowledgeable advisors who have experience in this and can help you find the most suitable lender for your situation.
One way you can avoid this is to look at your credit file before you apply to check if it is of a high standard. In the case where your it doesn’t look as good, it’s best to look at way to improve your credit score. As well as this, you can get in contact with a Mortgage Broker in Derby where you can get information on which factors are most important for improving your score.
It’s good to remember that very few people indeed are realistically eligible for every deal that is on offer to them. For the most part, homebuyers and home movers are just searching the wrong mortgage deals. You might have found a deal that is cheap, however, it doesn’t mean that you will pass the lender’s criteria and quality for that specific deal.
As an open and honest Mortgage Broker in Derby, we would always suggest that you research the different types of mortgages available in detail or contact us to get a free mortgage appointment with one of our advisors.
A common route we have seen many customers using price comparison websites is a mortgage in Derby. Even though there is no problem with doing this, you need to keep in mind that the price comparison websites are only to analyse the different costs of mortgage deals, as opposed to matching you to all the different nuances of a lenders criteria.
By doing this, you may end up wasting a lot of time because the mortgage lender could potentially decline your case in the future. If you were to be in this situation, you may end up losing the property you were hoping for and potentially break a property chain you were a part of. Another issue is that you may have been declined for the mortgage you picked which could result in your credit score being damaged due to a failed application.
In many cases, a customer may be eligible for a wide range of mortgage products, however when it comes to matching the criteria for those deals, the lenders may end up only offering you a reduced deal. This is something that occurs on a daily basis, with lenders initially having a tendency to say that you can borrow a set amount, only to change their mind further down the line to reduce the previously available mortgage.
As mentioned before, each lender has their own unique way of handling the mortgage process. Often, there is a significant difference between mortgage lenders and it’s very unlikely that you are going to match up against all these lenders varying criterium. Therefore, it’s wise to narrow down your options and work out the option that is suitable for you.
Whether you are a First Time Buyer in Derby or looking at Moving Home in Derby, we highly suggest that you get in contact for some expert Mortgage Advice in Derby that will help you on your mortgage journey. Here at Derbymoneyman, we have a team who are available 7 days a week to assist you throughout the process and will work hard to find you the most suitable mortgage product for your situation.
Throughout the years in the industry, we have worked with thousands of customers, assisting with specialist mortgage cases to hopefully mortgage success. We also strive to make the process as smooth and stress-free as possible.
If you get in contact with a Mortgage Broker in Derby, you can get an idea of ways to improve your credit score in the event of any unfortunate financial circumstances.
Get in touch today with a Mortgage Broker in Derby for your free mortgage appointment if you are in a specialist mortgage situation.
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.
Being involved in the mortgage world can come with its rewards. When you come to the end of the process you will be left with the following;
Whatever route you decided to take, you will have ultimately come to the end of your mortgage term and be wondering what the next step is. Here are just a few;
Remortgaging occurs when you move your mortgage on your current property from one to another.
When it comes to a Remortgage in Derby, you will have a range of options to choose from, with both minor or a lot larger options available depending on your situation.
Normally, the initial mortgage deal you’re on will last around 2-5 years with lower fixed rates or even some rates that have been discounted.
In some cases, you may find that you will be placed onto a tracker mortgage which follows alongside the Bank of England’s base rate.
It’s likely for many customers will result in their lenders Standard Variable Rate when their term has ended. This is also known as an SVR.
In short, an SVR happens when a mortgage with an interest rate that is decided based non what the lender wishes to charge, with the number subject to change.
Unlike a tracker mortgage, this does not follow the Bank of England’s base rate.
Due to the way Standard Variable Rates work, they are usually the most expensive mortgage option a customer can go for. This is why some people explore the route of remortgaging for a better rate.
Further down the line, you may find that you have saved some money on your mortgage repayments each calendar month.
When you get a couple of years into your home residence, you may be feeling a change and looking at giving your home a makeover.
This could be an extra room or more living space for your children or furniture, a new kitchen, a home office, or maybe even a loft conversion.
Some homeowners go for this option instead of moving into a larger house. You may find that you can release equity that exists in their home via taking out a remortgage when their term ends. By doing this, you can use the funds to cover the costs of any home improvements.
Taking out a large project like a home renovation can be a little overwhelming. It will also require you to get planning permission to do any of these projects.
On the other hand, many homeowners who have experienced this would likely say that it’s not as stressful and more rewarding to take on a home project to modify your home further instead of going through the process of moving home.
Further down the line, your plans could benefit you even more. Creating more space and having good quality craftsmanship could lead to a property value increase which can benefit you if you decide to sell up or rent out.
Through our experience, we find that a plethora of customers who get in touch with our team are looking at the option to Remortgage in Derby for a better mortgage term.
This can be done by reducing the length of the term they are currently on or switching to a more suitable and flexible mortgage product.
By 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, however, it does increase your monthly mortgage repayments.
You will be paying a lot less each month if you have a longer mortgage term.
Sometimes, customers would opt for a more flexible mortgage term. The benefit is that this could result in you having the option to overpay at a later date meaning it pays off much quicker.
When it comes to flexible mortgages, you may also allow a homeowner to carry the same mortgage and rates over to a different property, if it’s ever needed in the future.
The purpose of a flexible mortgage sounds like the perfect option for many customers, however, they are usually taken out as a tracker mortgage, which was mentioned previously and follow the Bank of England base rate.
This does mean that your monthly mortgage payments could vary depending on the interest rate, this does make them not as reliable and consistent.
Since the 2007 market crash, property prices have risen since then. The majority of homeowners should have some equity sitting on their property.
You can work this amount out by looking at the difference between the remaining mortgage balance and the current property value.
Again, many homeowners will go for a remortgage as a way to fund any home improvements they’re planning to make. Along with this, there are many other options out there.
Additional options we find some customers use this equity for include covering long-term costs, providing a boost to their income, going on their dream holiday, paying off an interest-only mortgage, or to even just having some extra cash to spend.
In certain cases, we will also find that a number of buy-to-let landlords in Derby will choose to remortgage to release equity as a way to cover the deposit that they need to purchase additional properties to build their portfolio.
An Equity Release in Derby is aimed to those who are aged 55+ with a property that is worth at least £70,000. If eligible, this could be an option for you! For further information regarding this option, it’s important that you speak to an expert later life mortgage advisor.
Keeping on the subject of equity release, it’s also key to mention customers who use their equity to pay off any unsecured debts that may have accrued over time.
This may sound like a pretty simple concept, debt consolidation will not only factor in the amount of debt owed, but the property’s value along with the performance of your credit rating at that time.
The certain aspects they into may, unfortunately, result in you being limited on the amount you can borrow for a remortgage, depending on your personal and financial situation.
Furthermore, for those who are serious about using this to pay off your previous mortgage and your debts, you will be required to borrow a greater amount than your outstanding mortgage. You may find that your monthly mortgage payments increase.
This isn’t the best situation to be in, however, it will provide you with reassurance that should you need the help, you have some options to choose from.
In the circumstance where your credit rating is not in the best state, there are other options available that could provide you with mortgage success. Keep in mind that these will be straightforward and will need very specialist Remortgage Advice in Derby prior to going ahead with them.
Unfortunately, getting some help and support from a Specialist Mortgage Advisor in Derby may not guarantee your mortgage success.
It’s still important, however, to enquire with an experienced Mortgage Broker in Derby before consolidating and securing any debts against your asset which is your home.
For homeowners with a mortgage term that is coming to its end and are offering what their option may be for remortgaging, we would always recommend that you get in touch with a reputable Mortgage Broker in Derby like ourselves.
By having a Mortgage Advisor in Derby helping you through the process, you will be able to talk about your situation which will then determine what your next step is on your home owning journey.
We work hard in ensuring your mortgage journey is smoother the second time around, hopefully as smooth as your first. Here at Derbymoneyman, we strive to provide a tailored service that fulfils customer satisfaction.
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.