Specialist Archives | Cambridgemoneyman

What is a Lifetime Mortgage in Cambridge?

A lifetime mortgage is a form of later life loan that is secured on your home. It allows eligible homeowners to achieve equity release in Cambridge. Your loan will not need to be repaid until you have either died or moved into long-term care, where the property would be sold to do so.

By taking out a lifetime mortgage, you are making use of the equity that has currently been sitting within your home over your time as a homeowner in Cambridge. Many use this for things like home improvements, inheritance, to pay off debts, to fund their own lavish retirement, care costs, and more.

How does a lifetime mortgage in Cambridge work?

Firstly, you must be eligible for a lifetime mortgage. This means that you must be at least 55 years old and own a property that is worth at a minimum, £70,000. You are not required to be a mortgage holder to do this, only a property owner and with this being your main residence.

In order for you to make a start on the lifetime mortgage process, you will need to book in and chat with a qualified and trusted later life mortgage advisor. They will take a look at your situation to see if equity release in Cambridge or an alternative, is appropriate for you.

Lifetime mortgages are generally found in two main varieties. The first type you will come across is a lump sum lifetime mortgage, with the second one being a drawdown lifetime mortgage.

A lump sum lifetime mortgage works in the same way that the name would suggest, as an all-in-one release of equity in a lump sum payment. This allows you to access the amount you need, as soon as you need it, but will leave you with a much larger loan.

A drawdown allows you to access your equity and draw from it whenever is necessary. This means you aren’t releasing all your equity at once and are only using it when you need to. You will also only be paying interest on what you release, which means you will owe less.

With all types of lifetime mortgage, you have the option of letting your interest to roll-up, though this will likely also impact the amount of inheritance that will be left behind once the sale of your home has been completed and the loan has been repaid.

Thankfully, not only can one of our later life mortgage advisors help you to ring-fence an amount of equity ahead of time, for covering any inheritance you’d like to leave, but due to our membership in the Equity Release Council, you will also reap the benefits of the “no negative equity guarantee”.

This guarantee is a lifeline for many, as it means that your estate will never owe more than what the property is worth. You can rest easy in the knowledge that your family won’t be struggling financially either after you have died or have moved into long-term care.

Pros and Cons of a Lifetime Mortgage in Cambridge

As is typically the case with any mortgage type, there are both positives and negatives to taking out a lifetime mortgage. The importance of these vary depending on who it is that is taking out a lifetime mortgage in Cambridge, as well as their plans for the future.

Of course one of the bigger plus sides to look at, is how flexible you can be with releasing equity from your home, in using both the drawdown and lump sum varieties of lifetime mortgage. You are also able to be flexible in your monthly payments.

You have the option of letting your interest simply roll-up, which gives you more cash to play with as you won’t be making any payments monthly. The cons of this, is that letting interest roll-up will leave you with less funds for inheritance or care when you either die or move into long-term care.

The area of inheritance can be a big deal for many as well, as a vast majority of homeowners look to take out equity release in Cambridge to achieve this. Thankfully, you are able to ring-fence some of your equity to do so, as your later life mortgage advisor will help you plan in advance.

The good news is that, if you are able to maintain these payments, you will have a higher amount to leave behind for your family when you have passed on. Additionally, as discussed, your family will benefit from a no negative equity guarantee, meaning they will never owe more than the home is worth.

Furthermore, there are new safeguards that have been put in place for homeowners in more recent memory, thanks to the standards set by the Equity Release Council.

Is a lifetime mortgage in Cambridge right for me?

Ultimately, this will always depend on what it is you are hoping to achieve, as well as your own personal situation. There are a variety of different mortgage types available to homeowners in later life, with lifetime mortgages and equity release in Cambridge only being one of those.

It is the role of a dedicated and trusted later life mortgage advisor in Cambridge to take a look at your case and figure out whether equity release in Cambridge, or something else, is better for you to take out.

In a lot of cases, an alternative will likely be much better for you. Your later life mortgage advisor will be able to check this with you, prior to making a start on the process of equity release in Cambridge and a lifetime mortgage.

Oftentimes, more suitable routes can include taking out a personal loan, a conventional mortgages or a remortgage, retirement interest only, term interest only or something else. If a lifetime mortgage is right for you, your later life mortgage advisor will ensure that all of your needs are met.

This will include laying out a plan for what it is that you hope to achieve in the future, how you predict your circumstances might change, and any inheritance you are looking to leave behind. To learn more about how we can help with a lifetime mortgage, speak to our later life mortgage advice team today.

To understand the features and risks of equity release in Cambridge, ask for a personalised illustration.

A lifetime mortgage in Cambridge may impact the value of your estate and it could affect your entitlement to current and future means-tested benefits. The loan plus accrued interest will be repayable upon death or moving into long-term care.

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.

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 so you go with their mortgage advice:

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…

Are their tactics legal?

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 that their estate agent has said:

  • “If you use our service, we’ll thrown in a free carpet or appliance if you use our service for this (extortionate) price.”
  • “It’s much easier to keep everything under one roof, so you only have to deal with one company.”
  • “Using our services gives the seller the peace of mind that the process will be smooth and problem free.”
  • “Use our services, we’ll get you through the process quicker.” (this is often far from the truth)
  • “Your offer won’t be qualified until you come in and speak with one of our own mortgage advisors.”
  • “By using our mortgage advisor, you’re more likely to be successful.”
  • “We’re always sending work to the solicitor, so we can chase them and get back to you much quicker.”
  • “We have much better deals on offer than external mortgage brokerages”

Be vigilant and 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.

Why use a Mortgage Broker | MoneymanTV

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

Can I Get a Mortgage With Bad Credit? | MoneymanTV

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.

Credit Score Mortgage Advice

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; 

  • Missed Mortgage Payments. 
  • Credit Card or Loan Defaults. 
  • County Court Judgements (CCJ’s). 
  • Bankruptcy. 

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 article is a helpful, in-depth mortgage guide that will hopefully put you on the right path to obtain a mortgage. 

Top 5 Mortgage Application Hurdles You May Come Across

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.

Mortgage Hurdles – Mortgage Advice in Cambridge

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.

Childcare fees

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.

Divorce/separation

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.

Benefit income

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.

New job

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.

Evidencing a deposit for a mortgage in Cambridge

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.

What is a Mortgage Agreement in principle (AIP)?

Need a Mortgage Agreement in Principle in Cambridge?

What is an Agreement in Principle | MoneymanTV

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.

How to Improve your Credit Score in Cambridge

Credit Score Mortgage Advice in Cambridge

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+.

Credit score criteria

  • 300-580 – This is a poor credit score and having a credit score like this may decrease your chances of being accepted by a lender.
  • 580-670 – A score like this is considered fair and your lender may be more lenient with you when you have a score like this.
  • 670-740 – This is a good score and your chances of being accepted will be high if you have this score on your file. This is usually the average credit score range.
  • 740-800 – This score is very good. A score as good as this will put your chances even higher of being accepted.
  • 800+ – If you have a score that’s 800+, it’s classed as an excellent credit score. Your chances of being accepted are well above average, well done!

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.

Reasons why your credit score may be lower

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!

Credit Score Mortgage Advice Cambridge | MoneymanTV

Improving your credit score in Cambridge

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.

Avoid unnecessary credit searches

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.

Avoid credit applications

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.

Are you registered on the voter’s roll?

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.

The importance of updating your 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.

Don’t run too close to your maximum limit

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.

Remove financial links to others

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.

Is it all about your credit score?

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.

Divorce & Separation Mortgage Advice in Cambridge

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.

  1. What’s the procedure to remove my ex-husband/wife or partner’s name from my mortgage?
  2. How to remove my name from my partner’s mortgage?
  3. Can I have two mortgages at a time?

So, let’s get these questions answered one by one…

Removing an ex-partner’s name

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.

Removing your name from the mortgage

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.

Can I have two mortgages at once?

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.

Divorce and Separation Mortgage Advice in Cambridge

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.

Different Types of Mortgages Explained

If you are a First-Time Buyer in Cambridge or are looking at Moving Home, 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.

Christmas is the Perfect Time to Property Hunt in Cambridge

Mortgage Advice in Cambridge 

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. 

Beat New year Rush | Cambridgemoneyman

Why start the mortgage process at Christmastime? 

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. 

January Mortgage Advice in Cambridge 

First Time Buyers 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. 
 

Home Movers in Cambridge 

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. 

Gifted deposits 

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. 

Mortgage Broker in Cambridge 

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! 

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

The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
Should you have cause to complain and you are not satisfied with our response to your complaint, you may be able to refer it
to the Financial Ombudsman Service, which can be contacted as follows

The Financial Ombudsman Service, Exchange Tower, London, E14 9SR
www.financial-ombudsman.org.uk

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