An important thing to understand is that when you receive mortgage advice, your mortgage broker has a duty of care.
We have to recommend a suitable mortgage and be able to justify why the particular mortgage we have chosen is right for you whether its a fixed, discounted, Repayment mortgage, the length of mortgage, set up fees…
Mortgage brokers are with you from start to finish. One of the main benefits of using a mortgage broker is that if any problems occur during the application, the adviser will know the best course of action.
Mortgage criteria have tightened massively over the past few years especially with the Mortgage Market Review (MMR), and arguably widest-ranging, development. MMR has been designed to ensure mortgage borrowers can prove affordability, even in the event of a rate rise, and those extra checks have understandably increased application times. Mortgage brokers know lender turnaround times and which are the speediest.
That’s why it’s so important to stay in the loop – and to have a mortgage broker on your side who understands it all. A broker deals with lenders on a day-to-day basis, so they’ll know what the application process is like for each one and can tell you which lender can process your application with minimal delays.
Knowing what to do
Then there’s the fact that, because a mortgage broker put lots of business to lenders in a year, they can exert influence and chase things in a way you just can’t do by yourself – and that can be invaluable should things get held up. We know immediately who to contact.
A mortgage broker won’t just advise you about your mortgage. They will also look at life insurance, critical illness, payment protection and even buildings and contents insurance you have.
• Critical illness (such as cancer, heart attack or stroke)
Mortgages are a lot more difficult than they first appear. Knowing what rate, what term, what lender, what features, what insurance are all time-consuming and complex matters.
We can see clients within 24-48 hours and discuss all your mortgage and insurance options and having access to the whole market.
We help people with all circumstances, whether you have good credit score or poor. This blog is to give you a guideline if you currently have a poor score.
First, seek whole of market mortgage advice. You may feel that having adverse credit in the past makes it impossible in getting a mortgage. It may not be. It all depends on the severity of adverse and the date it is registered. Mortgage lenders are lenient with historic adverse. Contact us, it’s important to choose the right lender based on your circumstances.
Second, you will need to check your credit file immediately with Experian or Equifax. Most mortgage lenders use Experian or Equifax as their credit reference agency. Tackle the problem and don’t be frightened in knowing what you have registered on your file.
Third, have an action plan in improving your score. This is where we help. We have been in contact with clients from a year ago trying to build credit files and now they are applying for mortgage. If you leave your credit file on a low score, you will struggle to apply for a mortgage with adverse credit. The simple answer is that if you have a good credit score, this could outweigh your historic adverse, providing you opt the right mortgage lender.
Note: Mortgage lenders have their own internal credit scoring systems and don’t always use credit scores from Experian or Equifax. Nevertheless make sure you are in the best position to apply, and give yourself every opportunity to pass the score.
Tip: Reduce the number of credit searches as it leaves hard footprints on your credit file.
Tip two: Do not miss mortgage payments or rent payments
Tip three: Do not take out Payday loans to improve score.
Benefits: Potentially better monthly payments and lower set up fees.
With the election over, will there be a house price boom? Labour’s proposed mansion tax on properties worth more than £2 million has drifted. Estate agents and economist are predicted a renewed interest in the top end of London. What about for the rest of the country? Lucian Cook, head of residential research at Savills predicts prices of prime properties situated outside the capital to surge by 23.9% in the next five years.
We believe properties in South Manchester will continue to rise especially in areas such as Hale, Wimslow and Alderley Edge. Our clients searching in South Manchester are offering over the asking price to secure the property. Certainly lack of supply alongside huge demand. If your in a ‘Last and final offer’ scenario, please call us…
In and around Manchester sales are predicted to pick up generally, with estate agents saying they expect a busy summer ahead as buyers and sellers who had been holding back are entering the market.
As for mortgage rates, we still expect rates to remain low. The bigger the deposit the better the mortgage rate. Best speaking to one of our advisers based in Manchester city centre to go through your options.
Taking all of the above into consideration, you must get your offer right or you will LOSE the property very quickly. The days of offering way below the asking price have gone as demand as picked up. Obviously all depends on location and how long the property has been on the market. We speak to estate agents on your behalf and act as the middle person which will help you. In addition, we may have had previous dealing with the estate agent putting you in a better position.
TIP: Be constructive and fish for as much information as possible. Do your research. Call us for any further advice…
Does the average first time buyer need a £41,000 salary?
As the Telegraph reported today, it all depends on location, but most joint salaries do exceed £41,000.
The table below shows that applicants on a single income may not be able to get up to the amount they require.
If you would like to know how much you can borrow, please contact us 0161 242 6878 or send details via website.
If you want to move house and you’re struggling to sell or you wish to keep hold of your property as an investment, what are your options?
A ‘Let to Buy’ is worth considering. A Let to Buy mortgage could allow you move into a new home without selling your property and potentially making a loss. A ‘Let to buy’ means your letting your existing residential property to buy another. Some lenders class this as a buy to let mortgage, can get confusing, just depends on which lender you go with.
Normally for a Let to Buy mortgage, you will need equity in the property, approx. 20-25%. Your projected rental income will affect your application; generally you will need 125% of the interest element. Most mortgage lenders also require a minimum income, approx. 20-25k per annum. Watch out for the arrangement fees, survey and legals fees…
You may get the option to rent your existing property with the same lender on a ‘consent to let’ basis. Generally this is temporary and may have an interest rate loading. Consent to let is normally granted on an exceptional circumstances, as your original application was on a ‘residential’ basis. Most mortgage lenders are lenient; some will not show any flexibility. It will depend on your lenders criteria towards renting.
TIP: If your an inexperienced landlord and your renting your property for the first time, go through an a reputable letting agent whom will do all the necessary checks beforehand. Find the right tenants as oppose to the maximum rent. Factor in students, DSS, students, kids… Take out landlords insurance.
Your best speaking to us beforehand and we’ll go through your options.
We Know Mortgages