Why is Mortgage Protection Insurance Essential in Cambridge?

Importance of Having The Right Insurance in Cambridge

Mortgage Protection Insurance is a term that is used to surround different kinds of cover. The purpose of this cover is to limit financial stress on you and your loved ones from any unforeseen circumstances that may occur.

Below, Malcolm has put together a video highlighting the significance of having the correct insurance in place for your situation. Due to the past events of the coronavirus pandemic, the importance of health and getting insurance is more prominent than ever.

When it comes to protecting you and your family, there is a range of insurances to choose from. Cambridgemoneyman can compare lots of providers and tailor the appropriate policy to your circumstances. Here are the insurance policies that we can offer to you:

One of our experienced Mortgage and Protection Advisors in Cambridge is always at the other end of the phone or email. If you need more information, book your free insurance review today.

Life Insurance Cover

Life insurance is there to protect your loved ones financially in the circumstance that you or another joint policy holder pass away. Here at Cambridgemoneyman, we can talk you through all the different types of life cover accessible to you and advise the most suitable plan for you.

Critical Illness Insurance

This type of policy covers serious illnesses detailed within a policy. Usually, this includes stroke, heart attack, certain types and stages of cancer, and more.

You will find some illnesses will not be covered, this will be detailed within your policy. Furthermore, if you have pre-existing health issues you knew you had before taking out the insurance, it’s unlikely they will be covered. In the policy, the specific illnesses covered and not covered will be stated.

If you fall victim to one of the several specified critical illnesses, the benefit gets paid and pays you whatever the long-term prognosis of that illness. Seeking specialist mortgage advice in Cambridge is key because the type of conditions covered vary from company to company, and this is why this type of insurance cannot be solely price-driven.

Usually, many businesses will offer Life and Critical Illness cover as a combined policy, and the order of pay-out would be dependent on which event happens first, either death or severe illness, the pay-out is made. They could also get written on a single or joint life basis.

Income Protection

Unlike Life and Critical Illness, where the cover pays out a lump sum, Income Protection pays out a monthly sum that acts as a replacement of your wages in the event of you being unfit to work. Furthermore, there are no limitations on the illnesses or injuries covered, except whether they make you unfit to work.

One restriction, however, is the amount you can cover and how quickly the benefit would start to get paid. The policies are underwritten on your health and lifestyle when you applied, just like Life and Critical Illness Cover. When it comes to Income protection, the policies are written on a single life basis.

A menu plan is when you combine your Life Insurance, Critical Insurance, and Income Protection. A discount is added by the providers each time you add a benefit which can make it cost-effective.

Furthermore, a menu plan provides you with a range of cover and benefits that you can mix and match. This allows you to tailor a plan that is appropriate for your needs. Covering yourself and your family is something we strongly advise should the worst happen. Our mortgage advisors in Cambridge can help you with providing more information if you are unsure.

Family Income Benefit

Family Income Benefit is the least common, but can often be useful. In particular, for households with young people. These plans can get taken to Life and/or Critical Illness Cover, and get underwritten in the same way.

Unlike the traditional forms of policy, rather than pay out a lump sum, the cover would pay an annual or monthly income for the remainder of the term of the plan. Therefore, it can replace the payment of the primary worker for several years, dependent upon a particular client’s situation and, because of this, would usually be written on a level or basis, or an index-linked basis designed to keep up with inflation. 

Get in Touch with a Mortgage Advisor in Cambridge Today

You will find that many people have more than one different type of policy, and it wouldn’t be right to think of Mortgage Protection Insurance is something that is not needed because you are thinking the unexpected won’t happen.

Our Mortgage Advisors in Cambridge are here to discuss with you and tailor the type of cover to be the most suitable combination to your family’s priority and budget. To find out more, give us a call or fill out our enquiry form to speak with one of our Dedicated Protection Specialists Advisors in Cambridge today.

What is a 95% Mortgage?

A 95% mortgage is as simple as the name would suggest; you are borrowing against 95% of the price of a property, and then you are covering the remaining 5% with your deposit. An example of this is if you looked at buying a property that was worth £150,000 with a 95% mortgage, you would be putting down £7,500 as your deposit and borrow the remaining £142,500 from the lender.

95% Mortgage Advice in Cambridge

Off the back of the March 2021 Budget, Boris Johnson announced a Mortgage Guarantee Scheme for mortgage lenders, making 95% mortgages more readily available from the bigger high street banks.   

This is fantastic news for First-Time Buyers and Home Movers alike, as this scheme will continue running until December 2022. Certain terms and conditions will apply though, which is something your Mortgage Advisor in Cambridge will be able to look at, to see if you qualify.    

All our customers who opt to get in touch will receive a free, no-obligation mortgage consultation where one of our dedicated mortgage advisors will be able to make a recommendation on the best possible route for you to take.

Can I get a 95% mortgage?

95% mortgages are usually accessible by both first time buyers in Cambridge & those who are moving home in Cambridge. Whilst saving for a 5% deposit sounds like a pretty straightforward concept, you’ll still need to have an acceptable credit score and prove that you are able to afford your monthly mortgage repayments, in order to access a 95% mortgage.

Improving Your Credit Score

A good credit score is essential in the process of obtaining any mortgage, especially a 95% mortgage. Things like paying any current credit commitments on time, ensuring your addresses are updated and checking that you’re on the voters roll, can all help with your credit score.

Affordability

Affordability is another one that is important to take note of. By giving the lender details of your income and monthly outgoings (things like your bank statements will be necessary for this) and any pre-existing credit commitments, your lender will be able to get a general overview of whether or not you are able to afford this type of mortgage.

Can my family help me get a 95% mortgage?

Nowadays we see lots of family members helping each other get onto the property ladder, especially parents looking to further their children’s lives. The way this usually happens is by gifting the person looking to find their home, the deposit required.

Known through the industry as the “Bank of Mum & Dad, Gifted Deposits are only intended to be a gift, and not as a loan. The lender will need proof that this has been agreed, before it can be used towards your mortgage. 

How do I choose the right 95% mortgage?

When looking for a 95% mortgage, you want to make sure you have the right type of mortgage. Each mortgage type works differently, with that choice allowing you to find one that is most appropriate for your personal and financial situation. 

Some homeowners and home buyers prefer Fixed Rate or Tracker Mortgages, mortgage types which mean you either keep interest rates at a set amount for the term given or have your interest rates tracking the Bank of England base rates.

Alternatively, you might find that Interest-Only or a Repayment Mortgages are more your style. Interest-Only allows cheaper payments until you need to pay a lump sum at the end (mostly now used for Buy-to-Lets), whereas a Repayment mortgage (a normal mortgage if you’d like) means you’ll be paying interest and capital combined per month.

How can a bigger deposit help with my mortgage?

Seeing as a mortgage is such a large financial outgoing, you need to be prepared and need to be aware. You might find things like higher interest rates, remortgaging difficulties due to less equity and then negative equity all cropping up if you’re not. 

There is no need to worry though, as all these can be avoided if you’re savvy enough with your process to begin with. The more deposit you put down for a property, the less risk the lender will see you as. 

A larger deposit, of say 10-15%, would not only reduce the rates of interest by a noticeable amount, but would also give the property more equity and reduce the risk of negative equity, thanks in part to you borrowing less against the property. 

So, whilst the risks may seem intimidating, planning ahead and saving for a bigger deposit to access something like a 90% or even an 85% mortgage will be a massive help in your mortgage journey and something you’ll be able to reap the rewards from in the future. 

Different Types of Mortgages Explained in Cambridge

If you are a first time buyer in Cambridge or are looking at moving home in Cambridge, you will know that several forms of mortgages are available. Some of them are more common than others, and some may even be difficult to find. We have assembled a list of some of the most common forms of mortgages. You will also find one of our MoneymanTV episodes useful for learning more about these.

What is a Fixed-Rate Mortgage?

A fixed-rate mortgage means that for a specified time, the mortgage rates will remain the same. You should decide your period, usually 2, 3, or 5 years or more, for your payments. You know your mortgage balance will typically be the largest outstanding one, regardless of inflation, interest rates, or the economy.

What is a Tracker Mortgage?

Your interest-rate shall track the base rate of the Bank of England by using a tracker mortgage. In other words, the lender does not fix the rate itself. You pay a sum above the base rate of the Bank of England. An example of this is where the basic rate is 1%, and you are tracking at 1% more than the basic rate, you pay 2%.

What is a Repayment Mortgage?

If you carry out a repayment mortgage, you pay capital and interest together every month. So long as you carry the full term of the interest loan, you will pay the mortgage debt at the end, and the property shall be yours. This is the risk-free way of paying the lender back the money.

The interest you are paying in the early years, and particularly with a period of 25, 30, or 35 years, your balance would decrease very slowly. In the last 10 years or so, this scenario changes, where your payments pay more capital than interest and your balance falls even faster.

What is an Interest-Only Mortgage?

While some transactions allow mortgages on an interest-only basis, residential property is even more difficult to obtain on an interest-only basis. Lenders are also less likely to sell a product that is interest-only. However, it may be an alternative under some conditions.

This involves reducing the amount of money you pay out as you’re older or have other savings. When it comes to offering these items, lenders are very strict now, and the valuation loan is much smaller than before.

What is an Offset Mortgage?

You can build a savings account alongside your mortgage account for an offset mortgage. How this works, is you pay interest on the difference, for example, you pay £80,000 for the balance of £100,000, and £20,000 is deposited in your bank account. This can be a very successful way to manage your capital.

Help to Buy Armed Forces Scheme in Cambridge

Armed Forces Mortgage Advice in Cambridge

The £200 million scheme was introduced in 2014 to offer a boost to anyone from the armed forces who needed help buying a home. Originally intended to end in December 2019, the government made this an enduring policy, as a thank you for their commitment to their service and dedication to the country.

How does this help to buy work?

This works by accessing a borrowed deposit that is summed up to half of your annual salary (a maximum of £25,000), without any interest involved, then the deposit can be used to purchase a first home or to move into a new home.

A benefit of the scheme is that you don’t need any current savings to get yourself on the property ladder. The money raised from the loan can partly be used to be put towards your deposit or other costs.

Another advantage that benefits forces personnel is that the majority of lenders will accept the loan towards the deposit for a new home. More relaxed than some other schemes, the Forces Help to Buy loan can be paid back over a period of 10 years, so you don’t have to feel as rushed.

Even if you were unsure that you would have a chance, if you are able to match the criteria (length served, service term left and medical categories), you are eligible to purchase your home using the Armed Forces Help to Buy Scheme.

Navigate through for futher details from the Government site.

How a Mortgage Advisor in Cambridge may be Able to Help

From the minute you call up until the completion and beyond, our knowledgeable mortgage advice team in Cambridge has your back. They will make sure you are taken care of and are determined to find you the best option for your circumstances.

For your fast and friendly customer experience, get in touch today and see how we might be able help you with seeking your dream home.

Please note, the Forces Help to Buy is not the same as the standard UK Help to Buy Mortgages in Cambridge.

Do I Have To Use My Estate Agents Mortgage Advisor in Cambridge?

Whether you are looking at your options as an inexperienced first-time buyer in Cambridge searching the market for your first home or are looking to move home, it’s likely you will have discovered that some of the larger estate agents and builders would prefer it if you used their in-house mortgage advisor and conveyancing services.

Sales Tactics Estate Agents use:

As a standalone mortgage broker in Cambridge, we have spent many years working hard to help out our customers. We’ll hear from a large amount of customers who have felt themselves being pressured by an estate agent to opt into that companies personal financial services. Here are just some of the instances we’ve heard from people who get in touch;

The Agent Refusing to put Forward Your Offer

A lot of estate agents across the industry have a reputation for refusing to put an offer forward if you pass up on their in-house mortgage advisor and go with an external mortgage broker instead.

As if this act wasn’t bad enough, some have even gone as far as to refuse putting an offer through because another client who actually said yes to their in-house service has also made an offer on the same property.

Quoting Extortionate Service Prices

Something else we hear all too often is the ridiculous quotations they have been known to give for their services. Unfortunately there have been customers we’ve spoken to who weren’t aware these were overpriced and went forward with them. One notable customer was charged £1,500 for a simple purchase with a particular estate agent.

A member of our dedicated mortgage advice team got right onto this and we were able to get this cost down. Off of this incident, we recommended that the customer use another conveyancer in the area near the property and we were able to drop the cost of the service to a significantly less £750; the estate agent was charging double this amount

Demanding Information & Pushing Other Services Heavily

Once you’ve made an offer on a property, the common train of thought would be that pretty soon you’ll get a phone call detailing whether or not your offer has been accepted. What often happens with estate agents instead, is they will call up and demand to know the conveyancer you have chosen.

Their questionable methods don’t end there, as following this they have a habit of refusing to take the property off the open market until you agree to use their in-house mortgage services.

As touched upon earlier, though these will be far overpriced, many crumble under the pressure and simply agree to please the agent and avoid losing their home (even though that shouldn’t happen). This is common with first time buyers in Cambridge who want their first mortgage experience to go smoothly.

As you’ve seen here, estate agents are notorious for making the process difficult and bordering on near harassment. A dedicated mortgage broker in Cambridge can help you with these situations and in some cases, bring the costs of other services down to a level that is fair. Now to answer a question you may be thinking at this point.

Absolutely not. These are highly illegal ways to conduct business. As a customer, you have the right to use whichever companies you would like during your home buying process. You have full freedom to use any mortgage broker or conveyancing solicitor that you wish to, it’s your personal process and personal choice.

Unless you explicitly sign a contract in the beginning to say you will only use their services (which you won’t be offered anyway), you have zero obligation to use their services for anything other than the sale process between yourself and the seller of the property.

Recurring Comments We’ve Heard From Customers:

Be Vigilant & Don’t let Them Push you Around

Please always remember, when negotiating on the purchase price of a property; Should the people selling the property you’re looking to buy really know your personal financial circumstances, as well as the amount a lender is willing to let you borrow? This is a fact they will use to their advantage when pushing their in-house services.

Be wary and if you definitely don’t want to use their service, put your foot down and do not succumb to the pressure. Your future family home and financial situation all depends on how well your mortgage process goes.

We will always have your best interests at heart, keeping you informed throughout and jumping through those hoops on your behalf, so you can stay relaxed and happy. The information provided here is based on a genuine history of tactics used, that we wouldn’t wish others to go through if they can avoid it.

For all your mortgage needs, please do get in touch and we’ll do our very best to help you out, hopefully securing a great deal and your future family home in the process.

How to Remove a Person from a Mortgage in Cambridge

Would you like to remove a person from a mortgage in Cambridge?

Our team of mortgage advisors in Cambridge are happy to help if any significant changes in your life have lead to removing a person from a mortgage. We have experience in helping people progress through what’s known as “financial separation”.

We have dealt with a plethora of different mortgage situations, ranging from straightforward to incredibly difficult. Therefore, it is very rare that we haven’t encountered a situation at least once before. If you are seeking any specialist mortgage advice in Cambridge, we are here from early until late to be your helping hand through any difficult times you’ve found yourself in.

Removing a person from a mortgage in Cambridge isn’t easy, but not impossible

Gaining perspective from the mortgage lender’s point of view can be key in a situation like this. Lenders will have two people contracted in to give them security on the property. This method allows lenders to have multiple routes to go down when it comes to chasing payment if a circumstance like arrears and/or repossession occurs. 

Security can be an issue when it comes to letting someone go from the property because you only have one option for payment. Preferably, they want to make sure that the person wanting to keep the property can afford it in their own right based on income and affordability. It may be best to switch lenders and take out a mortgage in your sole name. 

In some cases, like financial separation, a lump sum may also be raised against the property. This allows you to ‘pay off’ the other person tied into the deal with you. Issues can occur, however, with one being that a person may not be able to afford the whole mortgage in their sole name.

There are still various routes such as family guarantors to go down and a mortgage broker in Cambridge may be able to help you with that. If you are looking to put life insurance policies and any home insurance policies in sole names, our dedicated mortgage team is also able to help you with that.

Gifted Deposit FAQs in Cambridge

What is a Gifted Deposit?

Circumstances where you are gifted money to contribute towards part of or all of your deposit are called a Gifted Deposit. This sum of money can be given to you by a friend or family member, on the condition that they don’t need to repay the money.

How can gifted deposits help?

The benefits of gifted deposits are that they can help you in the circumstance where you can afford monthly payments but not the initial deposit. Furthermore, having a gifted deposit can mean that you are offered a better rate if the gifted amount is a lot.

In the instance where you can’t afford the initial deposit due to being on a low salary but you can afford to pay the monthly repayments, this can help you.

Who can gift the deposit?

It’s common that your gifted deposit is from your parents, be this birth or adopted. When this happens, the method is referred to as ‘The Bank of Mum and Dad’.

Family members besides your parents can gift you a deposit, however, this does depend on the individual lender. You need to be careful when trying to find the right lender who can do this for you.

Gifting a deposit can be done through an equity release in Cambridge. This can only happen if the person who is gifting you the deposit is over the age of 55.

Do your parents know you need help?

As a mortgage broker in Cambridge, we find that many clients aren’t aware that there is an option available where their parents can help with their mortgage, or sometimes clients feel like they can’t ask their parents for help.

In many cases, parents are happy to support their children’s property dreams by lending a helping hand.

Taking out a mortgage compared to renting can be believed to be more beneficial. This might be due to the fact that you would potentially pay less per month.

It can be common for a gifted deposit to be from an inheritance, but parents may gift it earlier in life. Sometimes, the deposit may be from parents saving up enough or releasing a particular amount of equity from their property.

Gifted Deposit VS Loans

Paying a deposit by using a loan isn’t an ideal option and is something lenders don’t always feel comfortable with people doing. There is the risk that you won’t have enough for not only the mortgage but the loan at the same time which is why lenders don’t always feel comfortable with this option.

Is there a maximum or minimum gifted amount?

The choice is yours when it comes to the maximum amount of deposit you want to gift. Sometimes, you need 5% of the deposit to be from your own pocket, however, this can depend on the lender.

Who can benefit from a gifted deposit?

If you are a first time buyer in Cambridge or a home mover in Cambridge, you can benefit from a gifted deposit. The Help to Buy Scheme can be good to have with a gifted deposit but, this depends on the lender. This is due to the fact that the scheme requires a 5% deposit, therefore paying that using the gifted deposit could be a choice.

What proof is required?

Obtain a gifted deposit form to provide to the lender is required. In some cases, you might need to show some other proof and ID (donor ID/bank statement and so on) again, this depends on the lender.

Can I Get a Mortgage With Bad/Adverse Credit in Cambridge?

Bad Credit Mortgage Advice in Cambridge

Some clients come to us for specialist mortgage advice in Cambridge when their credit score is lower than the acceptable amount or they have missed payments. Adverse credit is a frequent occurrence and this is something that our mortgage advisors in Cambridge might be able to help with.

A potential factor that could effect you when obtaining a mortgage is if you have either missed a monthly mortgage payment or any smaller payments such as your mobile phone contract. This can happen through an attachment on your credit score that states your missed payments. From this, the lender could see that you are a risk.

However, missing monthly payments doesn’t always mean you can’t get a mortgage, but there is the potential risk that the high street bank may turn you down. This is especially the case if you only have a small deposit for the property you are looking at, as it may not be enough to convince a lender to lend to you. To prevent this from happening, you may need specialist help.

The lenders will want to know when the default was registered against you. The likelihood of receiving the necessary help depends on how far away you are from that specific date. In certain circumstances, like ill health, separation or redundancy, the advisor may be able to help even if it is a recent occurrence.

Bad Credit Mortgage FAQs

We have provided further information below that answer any common mortgage scenarios regarding bad credit mortgages in Cambridge.

What will my mortgage advisor in Cambridge need to see?

Your mortgage advisor in Cambridge will want you to provide an up-to-date copy of your credit report and you can obtain one of these usually free of charge (check with the providers T&Cs). It is advised you have your credit report before applying for a mortgage and even more so if you have had any doubts about your credit history, as it gives your advisor an exact snapshot of your financial situation.

I have a good income but bad credit, can I still get a mortgage?

This depends on your circumstances. When it comes to the impact of bad credit, some customers may become a little confused. Despite having bad credit, with a sufficient income & enough deposit, it may be possible to obtain a mortgage.

Reassuring the lender that you can pay back your mortgages without the possibility of any late payments happening is key, as the lender needs to proceed with confidence. If the worst happens, your home may get repossessed, which the lender would want to avoid.

There are many routes to take when people who have bad credit are looking to get a mortgage, even if these routes may have higher rates of interest. The most appropriate next step when seeking a potential mortgage is to get in touch with a mortgage advisor in Cambridge (like ourselves) to help.

I’ve had mortgage problems before, will that stop me from getting a mortgage?

In some cases, you may find yourself struggling financially and are unable to keep up with mortgage payments you didn’t have trouble paying in the past. This isn’t an ideal place to be and even if this was a momentary lapse, it would still be on record as a missed payment.

Credit issues may occur during this period and this could become an issue for when it comes to getting a remortgage at the end of your term or a new mortgage after moving home in Cambridge. As mentioned before, this is based on risk. Can the lender trust you not to find yourself in that situation again?

Our mortgage advisors in Cambridge have a lot of experience when it comes to customers having bad credit, particularly when they have previously had or currently have a mortgage. 

What other types of adverse problems are customers faced?

Other adverse problems customer could potentially run into regarding their credit are;

Even though these situations aren’t the best circumstances to find yourself in, it’s not the end of the road. The process may involve many challenges which involve you paying a higher rate of interest. There are many specialist lenders out there who may accept you depending on the nature of your circumstance.

We highly recommend that you work on improving your credit score. Our how to improve your credit score in Cambridge article is a helpful, in-depth mortgage guide that will hopefully put you on the right path to obtain a mortgage. 

A Guide to Remortgage in Cambridge: Top Reasons to Consider

Remortgage Advice in Cambridge

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.

What is a 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.

Remortgage for Better Interest Rates

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.

Remortgage for Home Improvements

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.

Remortgage to Make Changes to Your Term

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.

Remortgage to Release Equity

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!

If you are over the age of 55 and have a property that is valued around at least £70,000, you may want to consider your options for equity release in Cambridge. Speak to an experienced later life mortgage advisor to learn more.

Remortgage to consolidate debt

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.

Remortgage Advice in Cambridge

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.

What is a Mortgage Agreement in principle (AIP) in Cambridge?

Need a Mortgage Agreement in Principle in Cambridge?

Here you’ll find out the basics that you need to know about agreements in principle, including the pros and cons of getting one. For more information, get in touch and speak with one of our expert Mortgage Advisors in Cambridge today. An Agreement in Principle (also known as an AIP or Decision in Principle) is where you pass a Lender credit score to qualify for a mortgage.

By obtaining an Agreement in Principle, you prove that you are ready to support any offers you make as a first time buyer in Cambridge. It may also help negotiate a lower price if you have one of these, as it shows the seller you are serious and have the means to continue with the process.

Will obtaining an agreement in principle affect Credit Score?

The more commonly seen methods of credit scoring are via soft searches rather than a hard search. These may still affect your credit score, though a hard search will usually be more likely to do this than a soft search.

Reasons come down to a hard credit search that can leave a credit footprint, whereas a soft search does not. Regardless, you can rest assured that whichever is used by the Lender is done with the best intentions.

Should I avoid hard credit checks?

Having your credit checked via a hard search every so often should not make too much difference. It becomes an issue if you take too many of these within a small amount of time. On the flip side, if you know you have a good credit score and the best path to take with a lender, this should not be a problem.

Is an agreement in principle a guarantee that I will get the mortgage? 

Whilst the prospect of this would be excellent, there are no guarantees that having an Agreement in Principle will allow you to get a mortgage. The Lender will still require seeing all your documents, and only then will an Underwriter make the very final decision.

Often we find that customers contact us after they got declined at the application stage due to missing some small print in their Agreement in Principle. You will need to provide ID to prove that your identity, payslips to prove your income and bank statements to prove you are smart with money before a lender offers your case.

Can I make an offer without an agreement in principle?

Though you can make an offer without an Agreement in Principle, we would not advise doing so. Any credible Estate Agent will want you to prove you can progress onward.

How long does it take to get an agreement in principle?

It is possible to obtain an Agreement in Principle within 24 hours of getting in touch with an experienced mortgage advisor in Cambridge. 

How long does an agreement in principle last?

Typically, an Agreement in Principle will expire after 30-90 days. The good news is that this doesn’t mean you should apply for the first house you find. If your Agreement in Principle expires, it’s not difficult to obtain another ahead of making an offer.

Finding a mortgage only to be declined a mortgage can cause understandable disappointment. With this in mind, we recommend getting an Agreement in Principle as early as possible.

Cambridgemoneyman.com & Cambridgemoneyman 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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