As a whole, the mortgage process can be very surprising and have its fair share of both ups and downs. Some applicants may receive a fast and simple process whereas others may find it more difficult to find the road to mortgage completion.
Either way, once you secure your first property, you will come to a point where you can choose one of two routes to take. Your first option will be to continue climbing the property ladder and move into a new home; your other option, if you feel like you’ve already found your dream home, is to remortgage for home improvements such as an extension or conversion. In this article, we are going to focus on remortgaging and the different reasons why people choose to remortgage.
A remortgage is simply taking out a new mortgage to pay off a pre-existing mortgage. There are lots of different things that you can do at the point of remortgage, it’s completely up to you what you choose.
Generally speaking, you will remortgage every time you come to the end of your fixed mortgage term. If you choose not to remortgage, it’s likely that you’ll fall straight onto your lender’s standard variable rate of interest, which will probably be more costly than your current rate.
Your initial mortgage deal will likely last you around 2-5 years. As mentioned above, if you don’t remortgage you will end up on your lender’s SVR. Sometimes, their rate can be higher than tracker mortgages (track the Bank of England’s base rate), so this could end up costing you a lot more than your usual mortgage payments.
If your mortgage term ends, you can also fall onto a tracker mortgage. A tracker mortgage interest rate will fluctuate depending on how the economy is performing. For example, during the coronavirus pandemic, in March 2020 the Bank of England’s interest rate was significantly lower than usual as the economy wasn’t performing the best. Slowly, as the economy started to recover, the interest rate rose as the months passed.
This is why people often remortgage to find a better rate. Homeowners want to find a better interest rate so that they don’t have to pay as much for their mortgage payments every month yet they are still paying off their mortgage.
Rather than Moving Home in Cambridge, you could always freshen up your existing home to create more space through an extension or conversion. You can also remortgage to fund home improvements such as a new kitchen or living room, it’s completely up to you.
This works like so; when you take out a new mortgage product, the costs for home improvements will be incorporated into your mortgage. This means that your monthly payments will increase and so can your mortgage term.
If you already love the house that you live in, it could save you a lot of money if you were to remortgage over move home. It may be much easier and more beneficial for you in the long run to remortgage for home improvements rather than move home.
As a Mortgage Broker in Cambridge, we’ve seen many applicants that have realised further down the line that they want a different product, however, they are mid-way through their term. They may just want a more flexible product that allows them to reduce their term. Although this could mean that their payments increase, their mortgage term will decrease.
A flexible mortgage could allow you overpay your mortgage payments to pay it off quicker. Usually, people choose to remortgage for this reason if they’ve perhaps had a pay increase or been given a large lump sum of money (e.g. through a redundancy).
Some people may even want to keep their monthly payments the same and remain on their current base rate. When this is the case, you are sometimes able to remortgage to extend your term.
As a homeowner, you are bound to have some equity built up inside of your home. This equity can be turned into cash, and that’s why people sometimes remortgage to release equity.
The amount of equity that’s within your home can be calculated by taking away how much is left on the mortgage from the property’s value. The amount that is remaining can be taken out and turned into cash. You can choose what you spend this money on. It could be for home improvements, a deposit for another property (buy to let landlords) or even a holiday/ to pay off a car loan – you choose!
You can also release equity in the form of a lifetime mortgage. This is often targeted at older homeowners who want extra funding for their living circumstances.
Firstly, debt consolidation is a specialist subject, so we would recommend that you speak with a Mortgage Advisor in Cambridge before rushing into anything.
Consolidating debts consists of incorporating unsecured debt into your mortgage. Doing so will increase your mortgage payments and sometimes your mortgage term too.
All lenders have a different viewpoint on consolidating debts into a mortgage, some may allow it and some may not. Lenders often disallow it as you are putting unsecured debt into a secured asset. This means that if for any reason you fall into arrears after failing to meet your mortgage payments and your property is repossessed, they will lose out on money as there is all of your debt now secured within the property.
It’s a very complex subject that you should get specialist help for. For debt consolidation and Remortgage Advice in Cambridge, you should get in touch with our excellent mortgage team at Cambridgemoneyman.
Having now read about the reasons that people remortgage and how they work, do you think that you could benefit from remortgaging? Whether it’s to access a better rate, for home improvements, for term flexibility, to release equity, to consolidate your debts into your mortgage or for something completely different, there is usually always a situation where a homeowner will remortgage.
If you want to speak with a Remortgage Advisor in Cambridge about remortgaging, feel free to get in touch with our team. We will be more than happy to try and help you accomplish your remortgage wishes.
During the mortgage application process, you are bound to stumble across a hurdle or two. Whether this is a simple mistake or a factor that could risk your application getting declined, there is usually something that trips up mortgage applicants.
Here we focus on the types of hurdles to look out for when progressing through with your mortgage application and how a Mortgage Broker in Cambridge like ourselves can try and help you get by each one of them.
There are lots of different surprises that could pop up throughout your mortgage journey; here is a list of some of the most common mortgage hurdles that we come across as a Mortgage Broker in Cambridge.
It’s extremely unlikely that you’ll be turned down for a mortgage just for having children. Although, it’s likely that you’ll receive a higher offer than if you didn’t have children.
Lenders will always have to factor in childcare costs. Before lending to a borrower, they have to be 100% certain that the applicant can afford their mortgage payments on top of their monthly expenditures – which includes childcare costs. Depending on how many children the applicant has, childcare costs could run into the hundreds each month, which could impact a persons ability to meet their mortgage payments. Childcare costs only ever seem to go up and never down, they will treat this financial commitment the exact same way that they would treat a car loan or hire purchase agent.
Even if your children are older and you don’t have nursery fees to pay for, you still may be offered less than other buyers who don’t have children. If you receive child benefit, this could benefit you as lenders often count it as a contribution towards your disposable income each month.
Unfortunately, a divorce/separation could get in the way of your mortgage and financial situation, especially if you share a joint mortgage. When applicants in this situation get in touch in desperate need of help, we are always willing to offer a helping hand so that we can get them over this tough mortgage hurdle.
Usually, if you’re financially linked to someone via a joint mortgage, you may find it harder to get your application accepted as you still withhold responsibilities for another set of mortgage payments. Lenders have to be sure that you can afford a mortgage before accepting your application.
When applying for a mortgage whilst going through a divorce/separation, getting Specialist Mortgage Advice in Cambridge may be your best option. As an expert Mortgage Broker in Cambridge, we’ve worked with applicants trying to remove their own name from a mortgage; wanting to remove their ex-partner’s name from a mortgage; wanting to obtain a second mortgage despite still being linked to another one.
If you need a hand getting over these mortgage hurdles, we will be more than happy to help. Mortgages after divorce/separation can often get complicated very quickly, so make sure that you have someone by your side every step of the way.
Different lenders have different opinions on benefit income. Some lenders may take everything into account e.g. child tax credit, working tax credit, disability benefits and pension; whereas some lenders may not even factor in one, it really depends on the lender.
In Cambridge, we have access to lots of specialist mortgage lenders, each with their individual, unique mortgage products. Once you get in touch with our team, we will see whether you’ll be able to qualify for any of these specialist mortgage products.
You would usually find that a new job comes with a bigger salary, and this extra income is often used on something new, such as a mortgage. So you’d also expect your chances of getting a mortgage to increase due to this extra bit of cash? Unfortunately, this is not always the case.
Lenders normally want you to have job security; you will need to have an income every month to get a mortgage. If you’ve just started a job, you’re likely to have a probationary period. Even though probationary periods are usually okay with lenders, there will always be a little bit of uncertainty there.
Lenders will look at your previous places of employment to determine your working patterns. They will want to make sure that you aren’t just dipping in and out of employment. Employment gaps can have a negative impact on your mortgage application and may make lenders think that you are an untrustworthy applicant.
As a Mortgage Broker in Cambridge, we work with some specialist lenders who work from a newly signed employment contract. This could even be in month one or if your new job is about to start.
Legally, all mortgage lenders and mortgage brokers have to evidence the source or the borrowers’ deposit funds. This is for anti-money laundering purposes and must be done for all kinds of purchases. In some cases, your estate agent and solicitor may ask to see these evidential documents too.
Proving exactly how you built up your savings for a mortgage can often prove tricky. As a Mortgage Broker in Cambridge, we know that this is one of the most important parts of the mortgage application process, despite sometimes the hardest.
You will always need to show how you’ve saved money for a mortgage. You may have done it through savings, premium bonds, the sale of another property, gifted from a family member or friend, from family overseas, or from a personal loan, you are required to have the paper audit trail for the accumulation of funds.
A credit score is a numerical value that lenders use to determine your affordability for a mortgage, loan, credit card, etc. Although different lenders have different credit scoring models, the credit score that will be listed on your file will usually range from 300-800+.
If you have a credit score above 670, it’s likely that a lender will see no problem lending to you. On the other hand, if your score is less than 670, you may struggle to get the competitive deals that other applicant’s with a higher score are accessing.
As a Mortgage Broker in Cambridge, we deal with specialist cases all of the time. It’s often the case that mortgage applicants come to us after being declined by their bank due to a low credit score or something similar. Our job is to step in and help these struggling customers and their application back on its feet.
There are lots of different reasons why you could have a low credit score. The most common reason that we come across is that the applicant is the subject of a county court judgement (also known as a CCJ). If you fail to repay a loan/borrowed money, it’s likely that you will get a CCJ. A CCJ can leave a harmful dint on your credit file for 6 years or more, so we strongly advise that you make sure that you pay off your debt before applying for credit. It will undoubtedly pop up on your file and the lender will start asking questions.
Failing to stick to credit agreements can be bad too. Failing to keep up with your mobile phone contract payments will even cause damage to your file. Sometimes the little things can cause damage too, for example, dipping into your overdraft every month could cause a long term negative effect. Even using price comparison websites can sometimes impact your score.
These are just a few things that could negatively impact your credit rating, there are lots of other reasons to why you could have bad credit, however, our job is to help you improve your score so you get the chance to move into your dream home! There are multiple ways to improve your score to try and get you up into that next bracket that lenders will be looking for. Don’t give up just because you have a low score, it’s still possible to secure a mortgage in some cases!
Trying to improve your credit score can be a difficult task, but with the help of this handy guide, you may just be able to level it up a notch. We must warn you that every lender has their own lending criteria so your score may impact what deals you can access. This also means that just because you have a great score doesn’t mean that you’ll match every deal, it’s sometimes down to personal circumstances. At the end of the day, it’s all up to your lender and their criteria.
Every time that you go directly to a lender and their in-house mortgage advisor puts you through for a deal, they will perform a soft or hard credit search on you, and this search will leave an imprint on your credit file. If for any reason, your application is declined, the credit search performed could have a negative impact on your credit score. Multiple searches may lower your chances of getting accepted for a mortgage in the future.
This is where a Mortgage Broker in Cambridge will come in handy. Here at Cambridgemoneyman, we aim to get it right the first time, which means that we will take a look at your credit score and only approach lenders that hold criteria we know that you will pass.
Applying for credit can sometimes backfire on you, especially if you don’t have a reason for doing so. If you can pay back the credit that you’ve borrowed, it may look good on your application, however, flip the situation on its head, and your credit score could end up in trouble if you fail to meet the credit payment deadline.
During your mortgage application, we strongly advise that you hold off applying for credit. In some cases, you may be able to get away with it, but in other scenarios, lenders may believe that you are struggling for money. They could think that you are putting it towards your deposit or using it to aid your mortgage payments.
Here’s a nice and easy way to improve your credit score; make sure that you are registered on the voter’s/electoral roll. Being registered on the roll shows that you are who you say you are. All you need to do is go to the government’s electoral roll page, it’s easy to get registered from there. This could be a great way to boost your score!
You must provide accurate information when registering on the voter’s/electoral roll, so make sure that everything is filled out correctly. You will need to use your current living address, not your previous address.
During the mortgage application process, we always recommend that you check that all of your accounts and details are linked with your current address. This won’t affect you as much if you are a First Time Buyer in Cambridge and this is your first application. However, if you are Moving Home in Cambridge from rented accommodation and you still have your parents address linked with any of your accounts, your lender will pick up on it straight away. This is why it’s important to change your addresses and make sure that they’re up-to-date before applying. Being linked to a wrong address could impact your credit score.
If you go down the broker route, your Mortgage Advisor in Cambridge will help you out with this step. They will make sure that everything is updated with you to ensure that you have the best chance possible of being accepted for a mortgage.
Maxing out your credit card(s) each month will heavily impact your credit score. Your lender will like it if you can pay off your credit card balance each month as it shows that you can manage your money.
If a lender can see that you are exceeding credit card limits and always dipping into your overdraft, they may think that you don’t take your finances seriously. This could threaten your ability to get accepted by them.
If you are still financially linked to an ex-partner or family member, your credit score could be getting harmed without you even knowing. If the account is still active and live, you won’t be able to remove your links. The only way to remove your link is if you get in touch with the credit reference agencies and make a request.
Depending on the lender and how strict their lending criteria is, they may be lenient and allow some wiggle room. If there are some personal reasons involved, your lender may be considerate and factor them into your application, it’s entirely up to them what they do.
A Mortgage Broker in Cambridge like us will always be transparent with you and factor in every bit of detail. Even if you have a score that is on the lower end of the spectrum, our hardworking team of Mortgage Advisors in Cambridge are still determined to try and secure you a deal that will suit you. We have access to specialist mortgage deals through our huge panel of lenders; we are sure that we will find one that matches your mortgage needs.
If you need further assistance or Credit Score Mortgage Advice in Cambridge, feel free to get in touch with our team.
Owning a home that is filled with happiness, love and warmth is every First Time Buyers dream when starting their mortgage process. There is truly something special about your home, no matter wherever you go or whatever you do, you will always feel most comfortable in your own house.
Undoubtedly, buying a home is one of the biggest investments of one’s life, so it’s best to get things right the first time around. Right now, if you are struggling to secure your dream home, just know that your Mortgage Broker in Cambridge has got your back.
Once you have your home, you will have the pride of ownership and the freedom for innovative change. That’s why getting the right First Time Buyer Mortgage Advice in Cambridge is essential; do you want to put yourself into the position of getting a competitive deal so that you can settle down whilst being comfortable with your finances?
Here is everything you need to know about the costs of buying a home in Cambridge and what sort of things you’ll need to look out for. This helpful guide should give you a clear view of the charges that you’ll receive so that you can manage and plan your finances a little easier.
Estate agency fees are sometimes negotiable and their starting fee will vary from agent to agent or company to company. More importantly, the most affordable agents are the field experts who work online. The main reason behind their low prices is that they don’t have to bear the huge expenses associated with maintaining an office. Although, doing everything online could be risky as you could put yourself onto the wrong deal which would be costly down the line.
If you are not as conscious about fees and face-to-face meetings over video call, it may be best to get professional Mortgage Advice in Cambridge. The fees are negotiable in the “seller’s world” as there is fierce competition in the market and lesser property available.
Before you take out a mortgage, your lender will need to assure that the property is worth what you are paying for it. For this, the lender needs to conduct a professional survey, which may cost you some extra charges in the form of a survey fee. Nonetheless, some lenders may provide this free of cost, although they don’t provide you with the report.
But if your lender does not offer the free valuation survey, you need to request an on-payment survey, which could cost you a few hundred pounds. Of course, if you want an in-depth Home Buyer’s Report for documentation, the service fee almost doubles. Much to your surprise, there is a premium package option that will cost you aa four-figure sum.
Your Mortgage Advisor in Cambridge will explain the differences between each survey to help you make a better decision. For First Time Buyers in Cambridge, the quick tip is to go with the premium survey if the property is old or in somewhat worse condition. Though you may consider an in-depth survey an expensive option, it may save you from repairs and maintenance expenditures over the years.
As a functioning method, the mortgages that have the lowest interest rates tend to have higher service charges. Set up fees for the mortgage can be as low as zero to as much as a few thousand pounds. Your Mortgage Advisor in Cambridge will help you sort out your finances, especially when it comes to your mortgage arrangement fees.
The interest rates tend to decrease with the amount that you are borrowing. However, if you borrow a small amount, then the lender may complement the deal with no additional fees. In some cases, the lender arrangement fees can also be added to your mortgage.
Involving a Solicitor is a crucial part of the mortgage process as they deal with the legal dimensions of the purchase. For instance, they may check if the seller person is actually the property’s real owner, who maintains and adjoins the property or whether there are any future plans associated with the property. These are some of the important things to account if the owner needs to re-sell the house in the future.
More importantly, when you view your Solicitor’s fee, check if their quote includes VAT and local searches. Though a typical Solicitor’s fee is a few thousand pounds, the legal verification is worth the price. Moreover, you need to be very careful when choosing the right solicitor as not all of them can access all lenders. Getting First Time Buyer Mortgage Advice in Cambridge can help you find out which is the best Solicitor for you.
Some properties or purchases may be subject to Stamp duty – a paid tax to the Government. You can check the Official Government website to get the latest updates and more information about Stamp duty. The rules concerning this tax change from time to time, so it’s best to get the latest updates.
In particular, if the stamp duty is payable and due, your Mortgage Advisor in Cambridge or Solicitor will assist you in this regard.
Before talking to a Mortgage Broker in Cambridge, make sure that you do your research first so that you are going to the right one for you. Your Mortgage Broker in Cambridge will charge a small fee which will entirely depend upon the amount of your mortgage. Most brokers, like us, will only charge a fee if a successful mortgage offer comes through.
It’s no big surprise that many people hire a van to move into their home. However, we always recommend hiring removal companies to make the most of their services. These companies have skilled workers who carefully manoeuvre your furniture around. These experts earn every single pound that you pay them and turn a hectic moving process into a breeze.
Divorce can wreak havoc on your emotions, finance, and of course, the home you embellish with love. But instructively speaking, it should not be taken as a stressful event, instead of a process that needs considerate handling. At times, it may be confusing and even daunting when legal implications get in the way. In the line of reasoning, the most important being managing your finance and mortgage. That’s why getting Specialist Mortgage Advice saves the day. So, let’s dive in and learn everything you need to know about divorce and separation when having a Mortgage Advice in Cambridge.
At Cambridgemoneyman, we believe in sharing our first-hand knowledge with our clients that helps them tackle their mortgage-related legal matters. This guide contains practical information about most of the queries that our clients are anxious to ask. Our Specialist Mortgage Broker in Cambridge has answered the 3 most important and commonly asked questions. We understand your hesitation and hope that the detailed answers will make it easier for you to take the first step towards settlement.
So, let’s get these questions answered one by one…
Joint investment in a home is a huge commitment on a financial basis and needs to be dealt with carefully. Similarly, removing a name from the mortgage or any other changes can be strenuous unless you come to the end of your mortgage term.
When you are a family and have children involved, things can get a bit more complicated. In most cases, the mother gets hold of the property. Whoever agrees to reside in the house is the most likely to take full responsibility for the mortgage.
If you want to remove your ex-partner’s name from the mortgage, you need to provide solid proof that you can afford your own mortgage payments by yourself. Lenders will keenly study your salary, expenses, disposable income and then decide if you can hold your own mortgage or not. Moreover, they will also check your ex-partner’s credentials to decide whether he/she will be able to go forward with their mortgage or not.
Finally, they will perform an assessment on your credit file before coming to a decision. More importantly, since the mortgage was in partnership, the lender can follow you both in the mortgage arrears list.
The same process follows if you want to remove your name from the mortgage. However, the scenario is a bit different and tough for those who prefer to vacate the house. Removing your name from the mortgage requires duly signed consent from you and your ex-partner. Again, the lender needs to carry out a detailed affordability assessment to confirm whether your partner can manage the installments on their own or not.
If your partner agrees to remove your name from the mortgage and can afford the payments, you are clean to look for your own place. When you move into a new place, your lender will consider your former mortgage payments. But the fact is not all lenders are the same as some are more strict than others and rarely consider your state of affairs.
Hence, you need to try and find the right lender for you, and that’s exactly where we come in. Cambridgemoneyman not only provides you with divorce and separation Mortgage Advice in Cambridge but also will help you find that perfect lender for your own circumstances.
Yes, you can have multiple mortgages and properties as long as you can afford to pay for them. Once you apply for a new mortgage, your lender has the power of decision. They will take an affordability test that includes checking your credit profile before acceptance. When checking your file, your lenders have full access to check all the mortgages that your name is under.
They will try to figure out how much you contribute to these mortgage payments. Finally, they will decide whether you can manage the new mortgage expenses or not. They make the final decision by even following the other financial commitments to your credit.
Furthermore, the lenders will also account for the likelihood and the risk factors for your house’s repossession. If they find you high risk, they won’t take the chance and you may be declined. On the other hand, as a Specialist Mortgage Broker in Cambridge, we have the solution to all your problems.
You can get an affordability check at our Mortgage Broker in Cambridge before connecting with a mortgage lender. At Cambridgemoneyman, we analyse your affordability first so that you can make a final decision.
We have Specialist Mortgage Advisors in Cambridge with years of experience with both class and professionalism. Reach us out for any divorce and separation Mortgage Advice and assistance. Our amazing team of dedicated field specialists will be more than happy to help.
You may not know this, but there are lots of different types of mortgages, not just one. Some are more common to come across than others, however, it’s mostly it’s down to an applicant’s personal and financial situation to which option will suit them best.
Finding the right mortgage option for you can sometimes prove difficult, as they all work very differently. In this article, we are going to focus on the tracker mortgage. We will look at how it works and whether or not it will benefit you.
If you would rather watch our “What is a Tracker Mortgage” YouTube video, feel free to do so. You can find lots more helpful mortgage guides over on our YouTube channel – MoneymanTV.
When you have a tracker mortgage, your interest rate is tracked from the Bank of England’s base rate, then usually another percentage is added on top of that from your lender. Your lender cannot choose the percentage rate that goes on top of your tracked interest rate, it’s normally from an external rate that they have to follow.
Here’s an example, the Bank of England’s base rate could be at 1.2% and the external base could be at 1%. This means that you will always be another percentage above your base rate, no matter what the Bank of England’s base rate changes to.
When the Bank of England’s interest rate is low, a Tracker Mortgage is great to have. We have seen it drop as low as 0.1% before, which means that your total would be 1.1.% after adding your lender’s extra percentage. During the credit crunch in 2008, interest rates shot up, this included the Bank of England’s. This meant that people were getting a 5-6% interest rate! This was not a great time to have a Tracker Mortgage.
Surprisingly, in March 2020, during the outbreak of COVID-19, the market received a similar scare but this time the interest rates went down. We saw rates as low as 0.1%; so, having a Tracker Mortgage then would’ve saved you a lot of money. Obviously, you couldn’t get a hold of a Tracker Mortgage at the time of the outbreak as the rates were extremely low and lenders won’t want you to be paying them less than they could get out of you. 8 months later (as of November 2020), it’s still difficult to get a tracker mortgage.
There are both advantages and disadvantages to Tracker Mortgages; you can’t tell when they are going to be good and you can’t tell when they’re going to be bad. No one can predict what’s around the corner; no one predicted the outbreak of Covid-19.
It all depends on the economy. A bad economy means that your Tracker Mortgage could produce some high interest rates whereas a good economy could provide you with some of the best rates available.
There are many different mortgage types out there some could be more suited to more than others. For example, a Tracker Mortgage might be better for a Buy to Let Landlord over a First Time Buyer in Cambridge. It’s also down to your personal and financial situation.
A transparent Mortgage Advisor in Cambridge here at Cambridgemoneyman, will assess your circumstances and refer you to a mortgage option that will benefit you most. Whether this is the Tracker Mortgage or another type of mortgage, we are sure that we will manage to find the perfect one for you!
As a Mortgage Broker in Cambridge that works for you, we offer a free mortgage consultation to every customer, no matter the situation. Find out what mortgage option is best for you today and get in touch.
Have you ever considered starting your mortgage journey over the Christmas period? Christmastime is becoming the best time of year to begin surfing properties; and this is all down to the new year rush.
As a Mortgage Broker in Cambridge, we see an influx of mortgage applications every single January.
So, what we advise is to get prepared and start the race ahead of everyone else, it may put you in front of other competitors trying to snatch up the same home as you.
The property market is always at its busiest during January, as everyone wants that “new year, new home” feeling. This means that in December, there are a lot more mortgage opportunities about for you to take advantage of. There are less people in the market as they are more focused on Christmas and are saving their mortgage application until January.
As a friendly and professional Mortgage Broker in Cambridge, we are very understanding, and we know that Christmas can be a stressful time of year… this is where we come in!
Cambridgemoneyman is a Mortgage Broker in Cambridge that will sort out your application for you and get everything in place so that the process is stress-free! Getting in touch and claiming your free mortgage consultation could potentially put you in front of thousands of other applicants in Cambridge.
You should consider that if you were planning to start your First Time Buyer mortgage journey in January, if you were to start in December instead, the process will still span into next year, it just gets you ahead of the game.
If you approach a Mortgage Broker like us for Mortgage Advice in Cambridge, our team will look after you from start to finish and provide full support and guidance during every step you take.
The process may also be a lot faster than it you were to start it in January; having a Mortgage Advisor in Cambridge by your side nice and early on could prove extremely beneficial.
If you are planning on Moving Home in Cambridge, we would still recommend sorting out the arrangements of selling your home in December.
This would lead to you having everything organised so that in January you will have your home photos finalised, your preferred estate agent chosen and a signed agency agreement – which are all key components to selling your home. We will help you with all of this by the way!
Now that all these things are sorted, you can now begin searching for a home between Christmas and new year straight away.
If you are lucky enough to receive a gifted deposit from a family member or friend for Christmas, you should get on with your application as soon as possible. From Christmas to the new year. You still have a week to get your application started and get ahead of the game.
As a Mortgage Broker in Cambridge seeing an increase in gifted deposit mortgages. We would expect that this Christmas they are going to be more popular than ever!
With house prices rising, there are also more hardships involved for people who are currently searching the property market whereas gifted deposits can help ease the stress of financial worries, specifically the deposit.
Therefore, people tend to get help from their family so they can take that first step onto the property ladder.
Now that you know that Christmastime could be the best time to start your mortgage application. You will receive full help and guidance from an expert Mortgage Advisor in Cambridge.
Are you considering approaching a Mortgage Broker in Cambridge? In Cambridge, we offer a free mortgage consultation to every single customer, no matter their mortgage situation.
So, don’t hesitate to get in touch with your expert Mortgage Broker in Cambridge this Christmas. We cannot wait to hear from you!
On Saturday 31st October, the British Prime Minister Boris Johnson announced that the nation would enter another lockdown from Thursday 5th November to Wednesday 2nd December. Lockdown 2.0 has been introduced to try and reduce the spread of the coronavirus. However, when compared to the first lockdown, this one isn’t quite as strict which has allowed more industries and educational settings to remain open. When this lockdown was announced, our immediate thought was how will this affect the property market. Now that we are in the depths of lockdown 2.0 we can safely say that everything should stay the same and the property market should continue as it was with no change.
Of course, there have been some small changes to the home buying process, most of them being social measures. The property market is still standing strong, here is what you can still do over the lockdown period:
Here are some of the most common questions that we have been asked by Home Movers and First Time Buyers in Cambridge about the lockdown and how it affects the property market:
As a Mortgage Broker in Cambridge, we have been getting asked lots of questions about the lockdown and whether it will affect the property market, particularly from First Time Buyers and Home Movers. Here are your questions answered about lockdown 2.0 and the property market:
During the first lockdown, restrictions were a little tighter and it was hard to get the Moving Home process started. This isn’t the case in this lockdown, you easily get your home moving journey started. Whether this is on your own or through a Mortgage Broker in Cambridge, everything that you need to get the process started is at your fingertips. This includes home removal services, van hire, etc.
As mentioned before, the home moving process will have to be completed under the social distancing guidelines. These rules must be followed at all times and they are particularly important to you if you are frequently taking house viewings.
The answer is yes, the government have said that you are still able to visit your local estate agents. However, some estate agents have chosen to close their branches and have their employee’s work from home, so you may have to check whether they are open or not first.
Especially in this day and age, some people prefer to transact over the phone, and there is nothing wrong with this, you can still get the process started over the phone and even online. We advise that you take your time if you are doing everything online, and make sure that you clearly understand everything that is being communicated.
This last year has proven that it could be safer to transact over the phone rather than in person. Naturally, more and more business’ are choosing to go down this route. This actually doesn’t change a thing, you can still do everything you’d be doing in their office over the phone/online.
If your estate agent is operating over the phone/online, we advise that you take your time and make sure that you understand everything that is going on. There is nothing wrong with asking questions.
Yes, you can still continue with house viewings, however, if it’s possible to, we recommend that you give your estate agents virtual house viewing a try. We are seeing that most home buyers are shifting towards this new approach to house viewings; as a Mortgage Broker in Cambridge, we also expect that the number of virtual viewings will increase over lockdown.
Even though a virtual viewing is your safest option, we do understand that buying a home is a huge life decision, so if you want to go out and view the property in person, there is nothing wrong with that.
Your estate agents will also check with the property owners that a socially distanced property viewing is okay. If everything is okay, then you can arrange a date and time with your estate agent and the homeowner. Depending on the time of day and the homeowner’s situation, they may go out somewhere so that there as few people in the household as possible.
In the first lockdown, the property market was put a long pause, but this time around, the market is still standing strong and you can sell your home as normal. You will need to consider everything that comes with selling a property, this includes choosing an estate agent and a property valuation, getting pictures of the property taken etc.
Currently, with all of the guidelines in place, there is a small holdup in the property market and some things during the process may take a little longer than they usually do. Estate agents are very busy at the moment due to an influx in enquiries and all of the different measures that have been put in place.
Yes, conveyancing solicitors will remain open during the lockdown. They will be available to support your property sale. Again, most solicitors are working from home and we advise that you be patient as due to the demand in the property market, things may come slower than usual.
As a Mortgage Advisor in Cambridge, this question has become more and more common the further that we get into lockdown.
In this lockdown, even though it’s much shorter, you can take a mortgage payment holiday if you really need to. We are understanding that there are a lot of people that need help meeting their monthly mortgage payments, so if this is your situation then taking one out could be your best option.
If you took out a mortgage payment holiday in the last lockdown and are still on the scheme, you can extend your holiday so that it comes to a total of six months holiday. Although, if you have already had a six month payment holiday, you have already reached the six month limit and therefore unlikely that you will be able to access this scheme again.
After being brought to a halt, the property market is slowly catching up to speed. Thankfully, you can still continue trading throughout this lockdown. If you are wanting to begin your mortgage/home buying process and want to get an insight from a professional, it could be time to get Mortgage Advice in Cambridge.
With all of the new guidelines and measures in place, approaching a Mortgage Broker in Cambridge could speed up your process. For example, Cambridgemoneyman has been in this business for a very long time now and we know exactly what we are doing. We want to deliver you with a fast and friendly mortgage advice service that will help you secure a great mortgage deal. We want the whole process to run as smoothly as you do; don’t hesitate to get in touch today. We can’t wait to hear from you!
Believe it or not, your bank statements are some of the most important documents that you will need to provide for your mortgage application. They can be the deciding factor to whether or not you’ll be accepted for a mortgage.
When you give your lender your bank statements, you can expect them to look for a variety of things. However, their primary objective is to assess whether you are the sort of person who manages their money responsibly and is likely to keep up with their mortgage payments.
As a Mortgage Broker in Cambridge, we get a lot of different questions from applicants regarding their bank statements and what lenders will look for. Although, one question stands out the most: “Do gambling transactions look bad on my bank statements?”. Here are some of the most common questions we get asked about bank statements:
Whether you have an annual flutter on the grand national or regularly use internet betting sites, clearly there is nothing illegal about property licensed gambling. We are aware that a lot of people gamble as a hobby or pastime and there is nothing wrong with it. However, you still need to be careful with how much you gamble and that’s why the gambling agencies urge customers to “gamble responsibly”.
This is something to keep in mind when applying for a mortgage. A lender may be put off if they see that you are frequently gambling and risking losing your money. Of course, you shouldn’t let a lender tell you how to live your life and spend your money, but they do have a right to turn you away based on this factor. They also have a duty to lend responsibly.
If lenders need to prove to the regulators that they are making prudent lending decisions, it isn’t entirely unreasonable of them to expect the people they lend to adopt a similar approach when it comes to their personal finances. If you think that this is unfair, just think about it… If you were lending your own money would you lend it to the applicant who gambles or the one who doesn’t?
Like we mentioned above, it’s not illegal to gamble, so it’s very unlikely that the occasional gambling transaction on your bank statements will impact your mortgage application. Your lender will determine whether these transactions are reasonable and responsible. They are going to look at how often you gamble, the size of the gambling transactions in relation to your income and the impact that gambling has upon your account balance. If you are dipping into overdrafts from gambling, lenders will not be too happy.
If you gamble infrequently, these transactions will make no significant difference to whether or not your lender will accept you for a mortgage. They are likely to be disregarded by your lender. On the other hand, if you are constantly betting and going into your overdraft, it’s likely that a lender will see you as irresponsible and decline your application.
As a Mortgage Broker in Cambridge, we know exactly what lenders look for on bank statements and we know that you need to earn their trust. They are lending you their money after all. We never advise that you change how you spend your money, we just tell people to be responsible.
Your lender will examine everything on your bank statements, but what are they mainly looking for?
Remember, lenders are financial institutions that, either directly or as part of a wider group, often sell current accounts, overdraft facilities credit cards and personal loans, so understand that these things can all play a part in prudent financial planning. The key for a mortgage applicant is how these facilities are managed. For example, occasionally dipping into your overdraft, as long as you don’t overuse it, is not inherently a bad thing. However, regularly exceeding the overdraft limit is not so good. Thus, lenders will look for excess overdraft fees or returned direct debits because these would normally show that the account is not being well conducted.
Lenders will also look for large credit transactions from things such as loan agencies. Having “undisclosed” loan repayments on your record could be a problem, lenders will want to dig deep and try and find out how much you owe and how much will be going out each month. You will need to consider all of your other credit commitments before committing to another one.
Another important thing that lenders will look for is bounced direct debits. This is where a company tries to take money out of your account but you have insufficient funds so they can’t charge you. This usually happens when applicants forget about subscription services or memberships. So make sure that you avoid bounced direct debits in the months leading up to your mortgage application.
The most simple answer is to be sensible and, if possible, plan ahead. Most lenders ask for three months’ bank statements, so if you are applying for a mortgage in the near future, be wary of this.
These bank statements are going to show your salary credits and regular bill payments. So, you could even consider taking a break from gambling for a short time to make your bank statements stand out to lenders.
As a Mortgage Broker in Cambridge, it’s our job to help you through the mortgage process and view your application and bank statements before submitting them to a lender. If you go directly to a lender, they may decline you straight away and that’s why we recommend that you get a second pair of eyes on your application. We might spot something that you missed; a lender wouldn’t help you out with that!
If you are a First Time Buyer in Cambridge who doesn’t know a lot about the mortgage process and want to us to double-check your documents, you should get in touch and claim your free mortgage consultation. A Mortgage Advisor in Cambridge will be more than happy to try and steer you and your mortgage application in the right direction.
Are you approaching the end of your deal? Do you need to borrow some extra money for capital or home improvements? If so, then now could be the best time to remortgage.
As a Mortgage Broker in Cambridge, it’s not unusual for us to see customers forgetting to renew their mortgage deal. When this happens, people end up slipping onto their lenders’ variable rate which is usually higher than their current rate. This is why we always advise that you keep on top of your mortgage and make sure that you know when your deal is coming towards its end, especially if you have a short-term deal.
If you know that you’re coming towards the end of your mortgage term, it’s time to take the next step. Remortgaging can be a complicated process, so don’t hesitate to contact your Remortgage Advisor in Cambridge.
Over our 20 years of working within the mortgage industry, we have learnt that the best way to find a better remortgage deal is to shop around first. Before committing to the same lender, take a look at the other deals out there as there are hundreds if not thousands. Although not every deal may match your criteria, some certainly will and that’s why it’s important to shop around first before rushing into accepting the first deal that is offered to you.
We say this with your best interests at heart; more often than not, your lender will not reward you for your loyalty and are probably offering better deals to First Time Buyers.
If you are wanting to find a competitive rate and are interested in switching products, it could be your best option to approach a Mortgage Broker in Cambridge. They will work by your side and help secure you a deal that matches your personal and financial situation. For example, here at Cambridgemoneyman, we will always aim for a deal that is better than your current one.
Speaking to a Mortgage Advisor in Cambridge should be your first option when you don’t know where to look for competitive deals. Another benefit to using a Mortgage Broker in Cambridge is that they can have their own panel of lenders, some of which you can’t access by yourself.
Looking to upgrade your home? Thinking of finally treating yourself to a fancy new kitchen or a spacious home office? Well, did you know that this can all be done through remortgaging?
Whether you want to invest in your property or add more living space to make more memories in your dream home, remortgaging for home improvements could be the right option for you; there is nothing wrong with giving your home a makeover. You can increase your mortgage to pay for cosmetic alterations as well as structural work.
As a Mortgage Broker in Cambridge, we usually see that homeowners want to remortgage for home improvements because they have plans to start/already have started a family. However, if this isn’t your situation, we can still offer a helping hand and try and secure a great remortgage deal to switch onto. Whatever your situation is, we are still more than happy to help.
If you need to borrow a significant amount of money, your lender will reserve the right to ask you for estimates for the works you intend to have carried out. You don’t necessarily have to use the contractor that provided the estimate to do the actual works.
You can also raise capital on your property when you remortgage for almost any legal reason. For example, this could be for large consumer purchases, gifts to help family members, to purchase a Buy to Let property or for debt consolidation.
It is important that you know that you will still be paying interest on a remortgage for a long time after you take one out so you need to make sure that you are borrowing for the right reasons and that you will be able to meet monthly payments during the whole mortgage term.
Adding unsecured debt to your mortgage may result in you paying back more interest overall. This is down to a mortgage term usually being much longer than the length or a personal loan. However, this isn’t the case all of the time.
You must consider that you are taking unsecured debt and securing on your home. This won’t sit easily with everyone as you are under the risk of repossession if you cannot afford your mortgage payments down the line.
If you have 0% credit cards, you will need to know that the interest rates that apply to the debts that you are considering rolling onto your mortgage will start attracting interest too.
Often, consolidating debts into your mortgage leads to a reduction in your monthly outgoings. Some customers end up reducing their payments by hundreds of pounds.
To summarise, we highly recommend that you take all of your options into consideration before deciding on anything. Whether you are thinking of switching deals for a better deal, home improvements, capital raising or debt consolidation, you should know that your expert Mortgage Broker in Cambridge is here to help. We have over 20 years of remortgage experience and often know exactly how to help; there is rarely a situation that we haven’t come across before.
To speak to a professional Remortgage Advisor in Cambridge and find out which option could be the best for you, feel free to get in touch. We can’t wait to help you get the ball rolling with your remortgage journey.