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Dealing with unsecured credit issues demands careful navigation. At our firm, we often engage with clients seeking specialised mortgage advice in Derby, particularly those grappling with missed payments, a low credit score, CCJs, and defaults, among other challenges.
Even seemingly minor mishaps, such as missed payments on a mobile phone contract, can lead to defaults on your credit file, potentially complicating future mortgage applications by indicating a lack of financial reliability.
Fortunately, having missed payments or defaults doesn’t signify the end of the road. While securing a mortgage with bad credit in Derby may require specialised guidance, viable options do exist.
For instance, a significant deposit could bolster your prospects, demonstrating your commitment despite past credit setbacks.
Lenders specialised in bad credit mortgages will carefully scrutinise the timing and reasons behind any defaults, with applications further back in the past often viewed more favourably. Transparently explaining the circumstances contributing to the default may elicit a more sympathetic consideration from lenders.
Our comprehensive list of frequently asked questions and corresponding answers regarding bad credit mortgages in Derby serves as a valuable knowledge base.
Should your query or situation not be covered, don’t hesitate to reach out. Our seasoned mortgage advice team, adept at navigating complex scenarios, stands ready to explore tailored solutions.
Regardless of past credit hurdles, your mortgage advisor in Derby will need an updated copy of your credit report.
This report, easily accessible online and often free of charge, plays a vital role before embarking on a mortgage application, particularly if there are uncertainties about your credit history. Multiple failed credit searches can adversely affect your credit score, potentially impeding your mortgage prospects.
The impact of your credit score on mortgage eligibility varies based on individual circumstances, often leaving clients bewildered. While some may possess less-than-ideal credit scores, a sizable deposit and steady income could offer promise.
However, due to inherent risk, lenders may proceed cautiously, prioritising certainty in meeting mortgage obligations to avert the risk of repossession.
Despite hurdles, bad credit mortgages in Derby remain attainable, albeit typically accompanied by higher interest rates. The prudent approach is to schedule a consultation with an experienced mortgage broker in Derby.
Financial hardships beyond one’s control may lead to difficulties in meeting mortgage commitments, potentially resulting in adverse credit entries.
Whether during remortgaging in Derby, first-time home purchases, or moving home in Derby, challenges arise from lenders’ risk assessments and trust in your ability to prevent recurrences.
As providers of transparent and expert mortgage advice in Derby, we’ve successfully helped clients with past mortgage ties and subsequent credit struggles. If you find yourself in a similar situation, consulting a prompt and supportive mortgage broker is important for future mortgage success.
Throughout the mortgage process, clients encounter various bad credit challenges, each presenting its unique obstacles. These may include missed mortgage payments, defaults on loans or credit cards, County Court Judgements (CCJs), or even bankruptcy.
While less than ideal, such circumstances needn’t signify the end of your homeownership aspirations. Specialist mortgage lenders may extend assistance, albeit with a more stringent process and potentially higher rates. Focusing on credit score improvement can enhance your prospects.
For expert advice on bad credit mortgages in Derby, book your free mortgage appointment online today.
Our seasoned mortgage advisors in Derby, boasting over 20 years of expertise, are committed to devising a clear strategy for addressing your credit challenges ahead of the mortgage journey. Our ultimate aim is to guide you towards securing your dream home.
Regardless of whether you’re a first time buyer in Derby, a home mover in Derby, or considering remortgaging in Derby, your mortgage lender will inevitably request copies of your bank statements along with other evidence to assess your mortgage affordability.
Bank statements serve as a window into your financial habits, allowing lenders to gauge your reliability and financial management skills. Therefore, it’s crucial to carefully consider your financial decisions in the months leading up to your mortgage application.
Particularly noteworthy to lenders are large gambling transactions. While gambling itself is not illegal, frequent and substantial gambling activities may raise concerns for lenders during the mortgage application process.
While lenders cannot dictate how you lead your life, they are obligated to lend responsibly. Excessive gambling transactions could potentially jeopardise your mortgage application as lenders assess your financial responsibility.
Lenders need assurance that they are extending credit to individuals capable of managing their finances prudently. Therefore, they scrutinise bank statements to ensure responsible financial conduct.
Occasional gambling transactions may not necessarily hinder your mortgage prospects. However, lenders will assess the frequency and size of these transactions, as well as their impact on your overall financial stability.
Consistently dipping into overdrafts or borrowing money for gambling activities may raise red flags for lenders, indicating potential financial irresponsibility.
Beyond gambling transactions, lenders examine various aspects of your bank statements, including loan repayments, overdraft usage, credit card activities, and recurring payments. These factors collectively contribute to lenders’ evaluation of your financial suitability for a mortgage.
While occasional overdraft usage may not significantly impact your application, chronic reliance on overdrafts and financial struggles may negatively affect your mortgage prospects.
Demonstrating reliability and financial prudence is paramount to lenders. Planning ahead and presenting a responsible financial image can enhance your chances of mortgage approval.
During the months preceding your mortgage application, ensure responsible financial management, including prudent spending habits and timely bill payments. Taking proactive steps, such as temporarily refraining from gambling or setting betting limits, can further strengthen your mortgage application.
As your mortgage broker in Derby, our role is to guide you through every stage of the mortgage process, offering support and expertise.
From reviewing your evidential documents to providing ongoing assistance, our mortgage advisors in Derby are committed to helping you navigate the mortgage journey seamlessly. With flexible availability 7 days a week, we’re here to help you at every step of the way.
When you are nearing the end of your fixed-rate mortgage, if you are like the majority of homeowners, you will be looking at a remortgage in Derby. The good news for you, is that you are able to remortgage as many times as you like, yet this doesn’t necessarily mean that you should.
Chatting with an expert mortgage advisor in Derby about your remortgage options could save you hundreds of pounds down the line. In addition to this, some people remortgage to release equity, which depending on your reasons for doing so, can be a financial helping hand.
Some may use that equity to remortgage for home improvements. Others may remortgage in Derby to free up enough equity to put down a deposit on an additional home, so long as you are able to maintain your monthly mortgage payments on two properties.
Whilst you generally won’t have any restrictions, if you do actually choose to remortgage in Derby before your fixed rate period is set to conclude, you may end up having to pay an early repayment charge (ERC).
If you took out a five year fixed-rate mortgage, then we would suggest that you remortgage in Derby once your deal has ended. Failing to do so could see you land on your lender’s standard variable rate (SVR), which can often be much higher interest rate than the initial mortgage deal.
It will usually depend on the reason you are looking to remortgage early in Derby. There are many homeowners who will choose to release equity in their property, in order to take out any necessary home improvements or to save themselves some money.
Make sure that you look at your agreement with your mortgage lender, as you will generally have to pay a early repayment charge, which is typically charged at a percentage of the remaining mortgage amount. Additionally, there may also be an exit fee to cover the companies admin costs.
Another benefit is having the option to lock into a new deal, once your current deal ends. That way, if rates do go up at any point, you’ll be safe in the knowledge that your new mortgage will remain unaffected.
As long as you are able to show that you can keep up all your repayments, then it may still be possible to remortgage with bad credit in Derby. The longer ago your credit issues are, the better your chances. Some mortgage lenders might ignore ‘minor’ issues, such as missed mobile contract payments.
As is the case with any remortgage in Derby, the interest rate that is payable will entirely depend on your credit score and also the amount of equity in your home. With bad credit, it’s often quite high. You can also look at capital raising when you get in touch for remortgage advice in Derby.
We would usually recommend that you start looking into your remortgage options around 6 months before your fixed mortgage period is set to end.
This will hopefully give you enough time for you to take out remortgage advice in Derby from an expert in the industry, as well as make sure your new mortgage is set up and ready to start just as your last deal is about to finish.
On the other hand, you may want to raise capital because your home is now worth much more money since you initially bought it. In this situation, it might be worth taking out a remortgage early to make an investment in a buy to let property or use the raised capital to make home improvements.
There is generally no limit on how many times you can remortgage your property, though most people will do so once their fixed-rate mortgage period is about to end.
Whether you end up remortgaging in Derby early or once your fixed-rate mortgage deal has ended, we would highly suggest enquiring for remortgage advice in Derby so that you can make sure your mortgage payments do not fall onto your mortgage lender’s SVR (standard variable rate).
Book a free remortgage review today and speak to a trusted mortgage advisor in Derby about your remortgage options.
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, looking to remortgage or are moving home 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 bought 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 guaranteed 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.
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.
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.
For more information regarding the different types of property surveys, check out our article here.
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.
To learn more about your mortgage options or to get started on your mortgage process, book your free mortgage appointment to speak with one of our mortgage advisors in Derby today. We usually have a great selection of appointments available, at times that are convenient for 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.
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.
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Derbymoneyman.com & Derbymoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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Derbymoneyman.com & Derbymoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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