Whether you are a first time buyer in Doncaster looking to buy a property, moving house, or are ready to remortgage, you’ll soon begin to realise there are many options out there for you when it comes to taking out your mortgage.
This article will feature a comprehensive list of the most popular mortgages available to customers currently on the mortgage market.
If you have any questions regarding any of the mortgage options below, please do not hesitate to get in touch. You can now book yourself in for a free mortgage appointment to speak with a dedicated mortgage advisor in Doncaster, at a time that suits you and your lifestyle.
A fixed-rate mortgage will mean that your monthly mortgage payments will stay the same for the duration of your mortgage term.
The length you want to fix your payments is your choice, with typical options being around 2, 3 or 5 years or longer.
No matter what happens to inflation, interest rates or the nationwide economy, you know that your mortgage payment, which is usually your single biggest outgoing, will not change.
A tracker mortgage will provide you with an interest rate that mimics the Bank of England’s base rate.
That means neither you nor the mortgage lender will set the rate and change as and when the base rate does.
You will be paying back at a percentage that is above the Bank of England base rate. If we use this in an example, the base rate is 1%, and you are tracking at 1% above the base rate, which means you will be paying back your interest rate of 2%.
Even though these deals aren’t as popular anymore, consider that your mortgage payments will increase if the base rate increases. If it goes down, yours will go down too. Of course, this will benefit you.
When you take out a repayment mortgage, you will be paying back a combination of both the interest and capital each month.
Going off the basis that you can keep your payments going for the mortgage term duration, you will be guaranteed to have paid it off in full and own the home of your dreams by the end of it.
That said, this is generally considered the most risk-free way to pay your capital back to the mortgage lender across the industry. Early in your term, the amount you’ll be paying will be mostly the interest, with your balance reducing at a slower rate, especially if your period is 25, 30 or 35-years.
The process quickens up within the last ten years or so of your mortgage, where you will be paying back more capital than interest, with the balance reducing at a far quicker rate.
While we do still regularly encounter many buy to let mortgages being set up on an interest-only basis (this is an option that works out much better for many landlords), it is increasingly difficult to get a residential property on an interest-only basis mortgage.
The reason for this is because once you reach the end of your term, you will still have the entire mortgage amount to pay off all in one go, with no additional income to fund the amount you’re required to pay.
There are various unique circumstances where this can be a suitable option for customers, including downsizing when you are older or if you happen to have other investments you can use to pay back the capital.
Lenders are often stringent when offering these products now, and the loan to values tend to be much lower than they were in previous years.
The way an offset mortgage works is that your mortgage lender will set you up with a savings account that will work in tandem with your mortgage account.
For example, let’s say that you have a mortgage balance of £100,000 and you deposit £20,000 into your savings account, you will only be paying interest on the difference between those figures, which would work out at £80,000.
This can be a very efficient way of managing your finances, especially if you want to be paying higher rates of tax.
Like fixed-rate mortgages, capped rates have a maximum amount that a customer will pay each month with a maximum interest rate. With that in mind, if you’re capped at, say, 5%, you’ll never go higher than 5%.
These can be more beneficial if interest rates start to drop, so, for example, if the rates drop to 4%, 3% or 2%, then your mortgage will do the same.
Flexible mortgages allow you to underpay and overpay by unlimited amounts. Underpayments are only allowed if you’ve overpaid first and have agreed with a lender to do so.
Overpayments can be reasonably beneficial, though, as you could end up paying off the mortgage early and with significantly less interest. Mortgage flexibility is usually a feature of offset mortgages.
If you have done your research prior to getting in touch with an open and honest mortgage broker in Doncaster, you may have come to realise there are a lot of different mortgage types available to first-time buyers, all varying on the circumstances they are appropriate for and who is eligible.
Throughout this article, we are going to take a more in-depth look at the tracker mortgage, how it could benefit you and your mortgage situation, as well as why it is a popular choice amongst homebuyers.
First of all, please remember that a mortgage deal is only as good as the circumstances it matches up with, so though it may seem good on the surface, it may be the wrong path to take entirely.
To give out an example of what we mean here; Initially you could take out a tracker mortgage, only for you to later decide that fixed payments would’ve been your preferred option (via a fixed-rate mortgage). Once you’re at this point, you have already locked yourself into a contracted agreement and making changes wouldn’t be an option.
As a reputable, experienced and hardworking mortgage broker in Doncaster, we will always recommend that you get yourself prepared and making sure you are well researched prior to your mortgage journey getting underway.
We feel like home buyers would truly benefit greatly from taking up expert first time buyer mortgage advice in Doncaster.
As an alternative to our article, we also have a YouTube video on the same topic readily available for people to watch. Feel free to head on over to our moneymanTV channel to view more helpful video guides, presented for free by the ‘Moneyman’ himself, Malcolm Davidson.
Well, now let’s get down to business. I’m sure the first thing you want to know is; What is a tracker mortgage?
So if you were to find yourself on a tracker mortgage, your interest rate would move along with the Bank of England’s base rate and typically with an additional percentage added on top by your mortgage lender.
Your lender cannot choose the rate, as this is usually an externally set rate and will have to be followed strictly.
An example of this would be if the Bank of England’s base rate was running at 1%, your lender would have to add on another set amount, let’s say 1%.
This means that regardless of what the Bank of England’s rate percentage is, your interest rate will always remain just above that figure.
A tracker mortgage can be incredibly useful if the Bank of England’s rate is running at a slightly lower rate. It will generally sit around 0-1%, though as the year goes on it will naturally go up a little bit.
Previously, during the credit crunch in 2007-2008, the market plummeted and interest rates went sky high. At it’s highest, it was sitting around 5%.
Of course when adding on the percentage that your lender would add on top of this figure, you could’ve ended up with a rather sizable 6% interest on your monthly mortgage repayments.
On the other side of the coin, looking back to March 2020 (around the start of the coronavirus), the mortgage market had a similar scare when the Bank of England’s rate dropped significantly, dropping a down to an incredibly low 0.1%.
If you were on a tracker mortgage during this period of history, the chances are that you would’ve also dropped down to an interest rate of somewhere around 1.1%.
Naturally because of this, a lot of lenders simply stopped offering this mortgage type to their customers, as really it would’ve been too good to be true. A mortgage lender is still a business at the end of the day and need to turn a profit.
Nowadays the market seems to be almost back in full swing and customers do have better chances now of obtaining a tracker mortgage than they would’ve before, especially one that will be well suited to your financial circumstances.
A tracker mortgage does have both it’s ups and downs, as it will rely pretty massively on the economy. If anything happens to the market and the Bank of England’s rate goes high once again, a tracker mortgage is definitely not the sort of mortgage to go for.
On the flip side of that argument, if the situation is that the economy is doing extraordinarily well with a low Bank of England base rate, a tracker mortgage is one we could definitely look at for you, as you may benefit well from it. Again though, this also depends on what you’re looking to do.
There are a wide variety of mortgages types available out there for prospective first time buyers in Doncaster and existing homeowners alike, it’s just finding the one that is right for your personal and financial needs.
Before taking the big leap into any mortgage deals, we would definitely suggest that you speak to a trusted mortgage advisor in Doncaster about what paths are open for you to walk. They will try and find you the best deal they can.
If you are a first time buyer in Doncaster, we believe you’ll benefit immensely from our dedicated mortgage advice service. We have over two decades of experience in the mortgage world and have expert knowledge on various mortgage lender criteria.
We are also available to speak with and provide assistance to any customers looking to remortgage or move home in Doncaster. We hope you will find our mortgage advice service invaluable.
As your hardworking and responsive mortgage advisors in Doncaster, we will work alongside you from beginning until end, offering you mortgage guidance and support all throughout your journey.
There seems to be a rise in awareness of credit scoring from first time buyers and other consumers. This is from the increasing attention credit rating is getting from the general public. Our team has also found that when people get in touch with us, the majority have already viewed their credit reports online.
Experian or Equifax seems to be the two most common credit reference agencies but there are more out there. Check My File is something we do recommend to new clients. When they sign up, they get a 30 day free trial and after the 30 days will then be £14.99 a month, however, this can be canceled anytime. The color-coded report provides an easy-to-follow document that collates a range of information.
We find that clients have become more aware of the fact that too many credit searches can negatively impact their credit score. Therefore, our clients often ask if our mortgage advisors in Doncaster will do a credit search on them. Even though lenders always carry out credit checks, your dedicated advisor will require the client’s permission before doing any checks.
Banks provide two types of credit searches; hard search or soft search.
A hard credit search is when they take an in-depth look at your credit report and any financial institution carrying it out soon as you permit the financial institution to do so. The advantage of a hard credit search would be that the lender is looking into your situation quite carefully and if you pass the credit score, you increase your mortgage application’s chance of success.
As long as you have provided satisfactory documentation to back up the information you have disclosed and you haven’t provided false details, the search can be a success.
The footprint doesn’t state if your application was successful or not, however, if you have carried out a number of searches over a few weeks, this could cause the lenders’ system to decline.
Another benefit is that your credit file will have a record kept stating that you have carried out a hard credit search which is good when someone needs to look at your report. However, a credit file that states that there have been multiple searches carried out in a short period of time isn’t great because it could looks like you have applied for a vast amount of credit at the same time.
Having the odd hard footprint on your record isn’t bad. That’s why you shouldn’t worry too much about it, it’s just best to be cautious in having too much.
Unlike hard searches, a soft credit search provides a ‘lighter’ look at your financial situation. This type of search would normally be used on price comparison websites to provide which options you have or it could be used as a source to verify your identity. You may find some mortgage lenders carry out soft searches and it seems that more lenders are changing to this type of search.
With soft searches, you don’t get offered as much information as you would if someone carried out a hard search. A soft search wouldn’t leave any impact on your credit file if you fail. A lender will obtain less information compared to if they carried out a hard credit search. If you come out with an agreement in principle, the difference between the two doesn’t matter.
One factor that is helpful is that even though you would be able to see soft searches that got carried out on you, these searches are not visible to other financial institutions like banks. Therefore, you can apply for an agreement in principle without damaging your credit score regardless of if it is successful or not.
In the case where you are wanting to make an offer on a property, our mortgage advisors would suggest having an agreement in principle in place prior to you contact the estate agent. You should give yourself the chance to get the property you want at the lowest possible price.
A big advantage you can have on your part is if you have demonstrated that you have finances in the right place. Having an agreement in principle can also deter the agent from attempting to ‘cross sell’ their in-house mortgage services to you.
When it comes to choosing which mortgage product to take out, it can become a bit of a minefield as there are so many choices available. If you’re a First Time Buyer in Doncaster, all of these different options can get a little bit confusing. Each type will work very differently from another too, therefore, it’s best to know how each one works.
In this article, we are going to focus on the Cashback mortgage and look at how they work. Also touching on how it can benefit you and your mortgage situation.
Before we dive into the article, if you’d prefer to watch Malcolm’s video on cashback mortgages, that option is available. Take a look at the moneymanTV YouTube video just below:
They’re as simple as they sound. Taking out a Cashback mortgage would allow you to get some cash back at the end of your whole mortgage term. They’re usually taken out over long-medium mortgage terms.
The amount that you’ll get back at the end of your term is usually calculated from a percentage of what you have borrowed. Typically, the percentage will be something like 1 or 2%.
In other cases, lenders may state a fixed price in your contract that you signed when you originally took out the mortgage. The amount stated on your contract will not increase over time, this is a fixed price.
Like all mortgage options, the Cashback mortgage comes with both positives and negatives. Sometimes, it can be down to the lender that you’ve chosen to take out the mortgage with. For example, some lenders may offer a free mortgage valuation or some sort of fringe benefits with your product.
Cashback mortgages tend to appeal to customers that are borrowing lower mortgages. You will get money back at the end of your term and possibly some benefits on the side. If you manage to get offered a competitive percentage on a Cashback mortgage in Doncaster, it may be worth considering as it will be worth the investment in the long term.
There is only really one downside to these types of mortgages, and that’s that they tend to come with high interest rates.
When compared to other mortgage options, the Cashback mortgage isn’t at the forefront of the market; it’s not the most popular amongst homeowners. This doesn’t mean that it’s not an option worth considering.
As a mortgage broker in Doncaster, we do occasionally see Cashback mortgages being taken out, therefore if you are interested in them, they’re still available!
If you don’t quite qualify for your first mortgage option, they make a great backup option. If you want to find out more about the Cashback mortgage and the other types of mortgages that are available, you should get Specialist Mortgage Advice in Doncaster from our advisors. We will be more than happy to go through all of your mortgage options with you.
Get in touch by booking your free mortgage appointment online today.
It’s unfortunate when you’re in a situation where you and your partner decide to part ways which means you need specialist advice. Getting specialist advice is important because you have joint financial commitments, and unwinding that side of things isn’t very straightforward.
Below are the top three questions we get asked on Divorce and Mortgage Advice regularly:
Getting a mortgage is a big financial commitment and making changes to your mortgage in the future isn’t always easy. Because of this, a lot of people aim to buy a house with their partner as a means of splitting the financial burden between two parties.
In circumstances that involve children, the partner who spends more time raising the children like a ‘stay at home’ parent will often stay in the property. It may be the case that the individual occupying the original home would prefer to take over the mortgage in their own right. This is not always easy!
You may be able to pay the mortgage and have the ability to demonstrate that you can independently. It does not, however, change the fact that you bought the property jointly. In other words, in the event of mortgage arrears, there are 2 people the lender is allowed to pursue.
The remaining applicant needs evidence that they can afford the mortgage before removing a party from a mortgage. This will give confidence that the remaining applicant can keep up the mortgage in the future. As well as this, the lender will need to assess your income even if you have kept up your mortgage payments in the past.
It’s common in these situations that someone will step in to replace the ex-partner like the family member or potentially your new partner.
When it comes to assessing the applicant’s affordability of the mortgage, many lenders have slightly different ways of doing this. Therefore, don’t lose heart if your current lender declines, we still may be able to help you.
Firstly, you need to understand that you are still responsible for any joint financial commitments you took out with your ex-partner, even if you are not a current occupant in the family home.
This rule is still in place even if you have come to an agreement with your ex that they will make all the payments.
If you are looking to buy a new property in the future, the mortgage payment for your old property will still be taken into consideration. Due to this, it’s important that you take mortgage advice before making an offer.
When it comes to how much you could be given by the lender, some are more generous than others. We will, however, take this into consideration when recommending the most suitable lender to apply for a mortgage agreement in principle with.
You can have 2 mortgages. Before lenders offer you a mortgage, they would use their own credit scoring systems and take many factors into account and ongoing financial commitments is just one of these.
As well as any other loans and credit commitments you may have, the monthly payments of the mortgage you will hold with your ex will need to be inputted.
After we have sorted all this for you, the maximum amount you are able to borrow will be confirmed to you by the various lenders’ systems. This will allow you to know your budget at the beginning and how much deposit you will need to put down.
Despite it being difficult to move on from your previous joint financial commitments, it’s good to remember that it’s all about risk from the lender’s point of view and their main intention for doing this is to avoid repossessions situations at all costs.
No matter your mortgage situation, it’s essential to seek mortgage advice in Doncaster at the start of your mortgage journey, whether you are a first time buyer or looking to remortgage in Doncaster.
Getting expert mortgage advice can be the difference between an application getting accepted and being rejected. Taking matters into your own hands can work against you as you aren’t as experienced in looking for certain things.
Our team can search through thousands of mortgage deals for you, which will hopefully save both your time and money during your mortgage process.
It’s the job of your dedicated Mortgage Advisor in Doncaster to find you the mortgage deal that is the most appropriate for your circumstances. Some say that there’s no significant difference between an advisor and a broker, which is partially true and untrue.
Mortgage advisors are trained professionals working either for a mortgage broker, independently or for more prominent banks or building societies. The difference comes into play when looking at the companies those advisors work for, compared to Doncastermoneyman.
However, here at Doncastermoneyman, we can tell you our team of specialist mortgage advisors in Doncaster are authorised and regulated by the Financial Conduct Authority and have access to a large panel of various mortgage lenders pick and choose a deal depending on how appropriate it is.
Many of those advisors working directly for the lender will only offer their products, along with biased advice.
Our mortgage advisors in Doncaster have in-depth knowledge of lending criteria and experience providing expert advice to customers with all types of individual situations.
For first time buyers looking to take that first step onto the property ladder, the process can be confusing.
It’s here where our dedicated mortgage advisors can take the reigns and walk you through every step, supporting you through the most stressful moments, leading up to when you get your keys and, if necessary, beyond.
It may be that you need mortgage advice in Doncaster because you are looking to remortgage for home improvements/release equity or purchasing your next property to move into or add to your portfolio.
Our team of specialist mortgage advisors in Doncaster in Doncaster can help find suitable mortgages for a landlord looking at buy Let mortgages.
One of the many benefits of using a mortgage broker in Doncaster is that the process will likely go a lot smoother than it would’ve been if you had opted to go alone. Buying a home can be a very stressful experience, and our customers like to know they have got someone on their side to answer all their questions and queries. Here are some other ways we are also able to help:
Our mortgage advisors in Doncaster job is to ensure you have the highest chance of being accepted the first time possible. Nothing is ever guaranteed, but with our help, you’ll hopefully be one step closer.
We are proud to have the quality of service we provide to our customers seven days a week.
We put our people at the heart of our business and always aim to exceed their expectations. Get in touch with your mortgage broker in Doncaster today and benefit from a free mortgage consultation with a member of
At the beginning of the Coronavirus pandemic, the Government made a promise that all borrowers would be allowed a three-month mortgage payment holiday if deemed necessary. Most lenders followed along with the Government’s guidelines and did what they could to help their borrowers during what was a difficult few months.
We felt it appropriate to write a summary of what mortgage payment holidays are, what lenders are doing and who will be able to provide help and guidance through these next few months.
We feel that it is best to summarise what mortgage payment holidays are, what lenders are doing, and who can provide you with help and guidance through these next few months.
Mortgage payment holidays are an agreement entered into with your bank, building society or mortgage lender to defer your monthly mortgage payments for a set period. In this case, 3-months.
It does not mean you never have to pay the amount back, but the interest you defer is added back onto the loan amount, while your capital balance will not decrease. In other words, your mortgage amount will increase slightly, and you will continue to attract interest on the whole amount.
When you are ready to continue the payments, this could mean that either your monthly payments are recalculated at a slightly higher level, or your mortgage term is increased somewhat. Most lenders will probably prefer not to extend your mortgage term as this could take you past their standard retirement ages, but the detail on this will follow in due course.
Dependent on your mortgage deal, you may be able to pay off a lump sum later in the year to bring your mortgage back to where it would have been.
Mortgage Payment Holidays are available both for those with residential or buy-to-let mortgages, which means landlords also have assistance if rental payments are affected.
The full proposal is in detail below:
• Mortgage lenders will offer an automatic 3-month mortgage payment holiday for customers impacted, directly or indirectly, by COVID-19.
• The mortgage payment holiday will apply to customers who are up to date on their payments, not in arrears, and wanting to self-certify that COVID-19 impacts them.
• This means that lenders will not complete an income and expenditure assessment, or evaluation of alternate payment options as ordinarily required under MCOB.
• This proposal will allow lenders to be more responsive to customer needs and offer forbearance in a simple way to customers in an environment where COVID-19 also impacts the operation of collections teams made.
• Customers will be made aware that interest will accrue in the holiday period and they will need to make up deferred payments in the future.
• Customers who wish to undertake a full assessment of their ability to pay or financial difficulty may still do so.
We would recommend speaking to your Mortgage Advisor in Doncaster. They will asses your financial situation first before looking to defer your payments as your situation may not yet be pressing.
Approaching a Mortgage Broker in Doncaster like us will allow you to explore all of your current mortgage options and could make things feel a lot less stressful.
For a customer, up to date with payments, not in arrears and impacted by COVID-19:
• The customer would contact the lender and inform them that they are affected by COVID-19.
• The lender would accept these details from the customer and offer an automatic 3-month mortgage payment holiday.
• no evidence will be sought from the customer.
• The lender makes the customer aware that interest will accrue and will be contacted at the end of the three months to complete an assessment of the customer’s circumstances.
• At the end of three months, an arrangement to pay will be agreed with the customer according to their circumstances to recover any shortfall, while ensuring that the mortgage remains affordable and sustainable.
• The lender notifies the customer that if they wished to complete a full assessment now, there might be other forbearance options more suitable to the customer.
In some cases, a mortgage payment holiday can have a negative impact on your credit score, but most lenders have now said that for cases linked to the virus, they will ensure that this is not the case.
You must ask this question to your lender directly and record the response, including the date and the name of the person you are speaking to avoid confusion later. Different lenders are doing different things.
At first, everything seemed like it would remain exactly the same and you would still be able to make changes to your mortgages as normal. This has changed in the last couple of days and lenders have been asking borrowers to avoid making changes whilst you are within a mortgage holiday period. So, at the moment they are not allowing mortgages and product transfers.
Borrowers nearing the end of their existing product may be forced to move on to the higher lenders variable rate. This could mean that borrowers who act too early could find themselves on a mortgage payment holiday that accrues interest on a costly variable rate.
We would highly recommend speaking to your Mortgage Advisor in Doncaster they will determine the best course of action based on your personal and financial situation. If possible, arranging your mortgage transfer first then asking for the holiday would seem to be the most sensible way forward.
At the moment, no Lenders have withdrawn mortgage offers; in fact, some are extending offers past the standard six-month expiration date.
You should not pull out of your purchase unless, for example, you are worried about losing your job as a result of Coronavirus. We are advising everyone to proceed as usual for now and “wait and see” – you are not committed to completing your purchase until contracts get exchanged.
In some cases, lenders can offer you a temporary switch to interest-only in order to reduce your monthly payments but not to add any further to the loan amount by still servicing the interest payments each month.
It may not be necessary to convert all your mortgage to interest only, and it may be that putting part of the mortgage on this basis could give you the breathing space you need.
People with savings may find that remortgaging onto an offset basis could give them a helping boost they were looking for, they will be cutting down on their monthly payments whilst keeping hold of their savings.
For example, someone with a £400,000 loan and £100,000 in savings would only pay interest on £300,000. This will massively reduce their monthly mortgage payments.
For others, a straight remortgage to another lender, calculating the cost of any early repayment charges, may well be enough to ease the burden or simply extending the term of your mortgage.
If you still have any other questions on mortgage payment holidays or just want general Mortgage Advice in Doncaster, give us a call today. We want to help you and your mortgage journey through these tough few months ahead. Speak to an experienced Mortgage Advisor in Doncaster today.
Looking for specialist mortgage advice in Doncaster to boost your credit score? The higher your credit score, the more chance you have of your mortgage application will be accepted. No one is guaranteed to get taken though, and Lenders have their internal scoring systems.
Each Lender has developed its system of scoring over the years. Don’t worry if you fail with one Lender. Other mortgage lenders may be more forgiving. It is your Mortgage Advisor in Doncaster’s job to match you to the right Lender, hopefully, first time, but this is not an exact science. Both you and your Mortgage Advisor in Doncaster want the same thing, which is that you end up with the best deal available to you.
There are several different credit reference agencies in the UK, including Experian and Equifax. It is a good idea to check as many of these agencies as possible to get a rounded picture of your credit score. Also, one of the agencies may be holding incorrect data. Checking with several agencies will help you identify any such discrepancies.
There are some excellent practices listed below regarding things you can be doing
Multiple credit searches can harm your score. Be careful when using price comparison websites which are significant culprits of credit searching on individuals. If you know you want to apply for a mortgage soon, it is wise to avoid using for any other credit. While having some credit and paying it back is a good thing for your score, in the long run, Lenders do not like to see you increasing your borrowings just before making a mortgage application.
Being on the electoral roll adds many points onto your score. It indicates stability and Lenders like that. Ensure your names spelt correctly and that it’s your current address registered at, not an old one. If you are not logged, it’s easy to do so online.
If you max out your card each month that will reduce your score. Using a credit card and paying off the balance in full each month is preferable. In any case, this indicates that you are good at managing your money. Worst of all would be exceeding an agreed card limit or overdraft. Lenders want to know that you take your finances seriously.
Quite often it can appear that you are living in two places at the same time on your credit report. In any case, this occurs because you may have forgotten to tell one of your credit providers that you have moved to a new house. Check all addresses are spelt correctly. If you have lived in a flat, this can be tricky as the flat/apartment number can be formatted in different ways.
You should contact the providers of store/credit cards you no longer use and get the account closed. In the short term, this can harm your score briefly as the credit reference can’t tell if it’s you closing the account down or the provider. Don’t worry, though, and it’s one step back to take two forward. This is also a good thing to do to reduce your chance of falling victim for fraud should you not notice you have lost a card you don’t use regularly.
If you have a family member or ex-partner connected to you, then this could be affecting your score. You won’t be able to get the financial association removed if the account is still live though. To remove one of these links, you should contact the credit reference agencies and make a request.
Many consumers feel that credit scoring is an unfair way of Lenders assessing applications. Lenders feel differently. It is much cheaper for them to operate this way and computers give more consistent outcomes.
Send an up to date copy of your credit report to your Mortgage Advisor in Doncaster upfront, and you will increase your chances of being accepted the first time. The more your Advisor knows about your finances, the better. Also, there are still some smaller Lenders out there that do not credit score. These Lenders do it the old-fashioned manual way, although they will even have specific rules about the number of defaults and CCJ’s they will allow.
Equity Release mortgages can help people in a number of ways. Many people have heard of them, but are unsure as to whether they would be eligible and what benefits they may obtain, so in this article, we’re going to look at:
Firstly, your “equity” can be summarised as the value of your stake vested in the bricks and mortar of the property. So, if you already own your home, then your “equity” is the open market value of your house less the balance of any mortgage outstanding on it. If you’re a buyer, your “equity” is the amount of cash deposit you are putting into the transaction.
Secondly, Equity release Mortgages are aimed at older borrowers. Thus, you’d need to be at least 55 years old to be considered for an Equity Release plan and for some types that increase to age 60.
In general, it’s fair to say that the older you are, the better terms you’re likely to be offered from a lender. Other factors that would be considered in a traditional mortgage application, however – for example, earned income, pension income, number of dependents etc. – do not come into it. It is purely based on the value of your property.
The answer to this question is not entirely straightforward. Put simply, the amount you can borrow on this type of deal will be dictated by a combination of how old you are and how much equity you have?
Most providers have their own calculators and these can vary, but it’s fair to say the older you are, the more equity can be released. Your Equity Release Advisor will be able to accurately calculate this figure for you when you meet up.
The uses of Equity Release are many and varied, here are just a few examples:
In short, most legal reasons can be accommodated. Don’t forget, Equity Release mortgages are not necessarily suitable for everyone and in some of these instances there may be other, more suitable courses of action, but your Advisor will help you with this.
At Doncastermoneyman.com, we have a history of providing you with bespoke, detailed, mortgage advice as to what may be the most suitable way forward in your particular circumstances.
To add to this local service, we’ve now teamed up with Equity Release Specialist and between us, we’d be happy to come to meet you in the comfort of your own home to discuss any questions you may have on anything mentioned above.
When your introductory mortgage deal comes to an end your mortgage lender may offer you a new deal to stay with them, this is known as a product transfer.
Unfortunately, lenders do not always reward your loyalty and the offer they make you may not be competitive with deals you could get elsewhere. Even more annoyingly, these product transfer rates are not as good as the deal they offer new customers either!
Whilst swapping to a new deal with your current Lender may well be fairly easy online, it is always in your interest to see what other deals you may be eligible for. Lenders will also tempt you to effect a new deal online without taking advice.
This can be really dangerous because if you do this without advice you are waving goodbye to all the valuable consumer protection you would otherwise have benefitted from.
We have seen numerous examples of customers affecting these “follow-on” deals and locking themselves into an inappropriate deal. Because they opted out of advice then they have waived a lot of their rights in terms of making a complaint.
We did have a recent case where a customer who was pregnant did this and was declined for a small further advance to fund some necessary home improvements a few months later. She then had to pay a hefty early repayment charge to swap to a new Lender who would grant her the additional funds.
If we think a product transfer is the most suitable deal for you we will recommend that as a course of action for you and if we arrange the mortgage for you as a mortgage broker then all the regulation and consumer protection will apply.
In short, even if your requirement seems straightforward we recommend you always take advice – a second opinion costs nothing and making a mistake when taking a new product can be costly.
The remortgage market is highly competitive and savings can generally be made by searching the market for a new deal.