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What is a Property Survey in Manchester?

Property Survey Mortgage Advice in Manchester

If you are a First-Time Buyer in Manchester or a Home Mover in Manchester and have put in your offer for a property, you may be wondering what the next step in your mortgage process is.

That next step will be to take out a property survey, as a means of establishing what the condition of the property is, so you can figure out if it is worth the amount that you are paying for it.

If the surveyor happens to find something and reports it on the survey, then the buyer will be in a position by law to approach the seller and further negotiate a price that will cover the costs of any required work that may need doing to the property.

Different types of property survey

There are 3 main types of property survey available to home buyers.

  1. Mortgage Valuation
  2. Homebuyers’ Report
  3. Full Structural Survey

Mortgage Valuation

A Mortgage Valuation survey will consist of basic, straightforward valuation. This kind of valuation will be required to be paid for by the person taking out the mortgage, in order to secure a mortgage offer.

It should not be confused this with a full survey. The mortgage valuation confirms to the lender that the property you are looking to borrow money to purchase, is worth exactly what you’re willing to pay for it.

This type of home valuation will not highlight any repairs that are needed, though it may still point out any obvious defects that they would recommend you further look into and use your own judgement on.

Homebuyers’ Report

This type of survey will cover structural safety and highlights any apparent problems that will require your immediate attention, including things like any damp that exists in the property, as well as anything that doesn’t meet current building regulations.

This report will offer an independent report of your property by an expert in the field. To ensure that two surveys aren’t being paid for, it is recommended to ask the mortgage companies surveyor to carry out this report on your behalf, though be wary that it may take a couple of hours to complete.

Full Structural Survey

A full structural survey is better suited for properties that are older and those of a non-standard construction.

Depending on various factors such as property size and type, a full structural survey will possibly take longer than a Homebuyers’ Report, sometimes taking as long as a day to complete.

A full structural survey will provide a detailed insight on the condition of the property and highlights issues that should be investigated further before continuing with making a full purchase, to provide the buyer with a more settled peace of mind.

You can find a surveyor to carry out a Homebuyers’ report or building survey through the Royal Institution of Chartered Surveyors.

Mortgage Advice in Manchester

Don’t Pretend to live Somewhere else in Manchester

Address Scenarios Mortgage Advice in Manchester

As a general rule of thumb, the fewer addresses tied to your name and accounts the better, when it comes to your credit score and applying for mortgages. Many First-Time Buyers in Manchester and Home Movers in Manchester feel like they are becoming savvier and utilising their previous and current addresses to their advantage.

We see it as a fairly common practice for applicants, where they may have moved out of their parents address into rented accommodation and happen to think it is a great idea to leave their bank statements, credit card and Electoral Roll information registered at one of the addresses that they previously lived at.

Whilst this sounds like an ideal situation for some people, the truth is that it is now a flawed strategy. Almost every single time, if you have moved to a new address, there will be some record of this, somewhere on your credit report.

This could be from a delivery address when you have ordered something online or a car and, or home insurance search, amongst various other things that may be tied to an address.

We would say that by a country mile, the best strategy for you, if you are thinking about taking out a mortgage, is to get all of your accounts, cards, accounts and electoral roll changed over to your new address. Keep everything consistent and accurate to one another.

When you update your address on your credit file and electoral roll, ensure you double-check the date in and date out. If you do happen to make a mistake with either of these dates, it may look like you are living in two places simultaneously. Correcting your addresses and dates is a more open and honest way of trying to apply for a mortgage with a lender.

Mortgage Advisor in Manchester

What are the 7 best places to live in Manchester?

The best areas to live in Manchester

If you have ever thought about Moving Home in Manchester, you have likely found yourself wondering which areas are the best places to live in Manchester. To help you make an informed decision, we have put together a list of the best areas to live in and around the Manchester area.

1. Altrincham

Altrincham is a large market town situated in Trafford, Greater Manchester. Having been through generations of cultural and industrial change, the town has become quite the location for First Time Buyers in Manchester and Home Movers. In fact, it has even been described as one of the best places to live in the northwest!

You may have to pay a higher amount to live in Altrincham, however, with the types of housing that is available, it’s definitely worth it. Altrincham is also a great place to bring up a family; the local area of Timperley is a good place to look if this is why you are wanting to buy a home in Altrincham.

Home to halls, gardens, canals, indoor markets and music venues, Altrincham is an amazing place to live. If you choose to live in Altrincham, we are sure that you’ll enjoy your stay and hopefully find your dream home! 


Mortgage Advice in Altrincham

2. Chorlton

Chorlton is a small suburban area located 3 miles South West of the Manchester City Centre. Chorlton is a great place to live, the average housing price stands at £335,000 (May 2021). This is the perfect location for someone wanting access to the city life as well as the quieter, local suburban lifestyle.

Speaking of city life, from Chorlton, the Manchester City Centre is only a 15-minute tram ride away. You’ll find lots of transports links in Chorlton, there is no need to worry about the ease of getting to your place of work, getting from A to B and dropping your children off at school.

Even if you don’t wish to take regular trips into the city, there are still plenty of different things to do in Chorlton. You can find plenty of restaurants, cafes and pubs dotted around the area; each having their own unique but local feel.

If Chorlton sounds like the kind of place where you could see yourself living in the near or far future, make sure to get in touch and we will see how we can help you get your Moving Home process started! 

3. Deansgate

The longest road in Manchester City Centre at over a mile in length, Deansgate is a location rich in history and is in fact one of Manchester’s most historic areas, with information on it dating back even as far as the 17th century.

The local high street is filled with various designer shopping opportunities, allowing for an enjoyable experience. If you wish to travel between the different areas in Manchester, you’ll find it has easy access to various popular locales and many different transport options to choose from, ranging from trams, to trains and even a shuttle bus.

If you like history filled locations that have a great high street and double as a transport hub for various nearby areas, Deansgate could be the perfect location for you. 

4. Didsbury

As one of the most vibrant places to live in Manchester, Didsbury has something for everyone. With elegant greenery, noble properties, and a famous nightlife scene, it’s no wonder that this gem has been popular with First-Time Buyers in Manchester over the last few years.

Split into three areas: East Didsbury is famous for its excellent schools, West Didsbury has a selection of fantastic restaurants and Didsbury Village is home to a lively community, popular restaurants, hotels and a range of shops. Favored amongst families, Didsbury offers a quiet escape from the busy center of Manchester.

Easily accessible from Manchester City Centre, Didsbury has an excellent public transport system. You can choose from the train, bus or even the Metrolink.

As one of Manchester’s most popular area’s Didsbury is just one of the reasons that make Manchester such a wonderful place, and that’s why we recommend Didsbury for families as there are plenty of housing choices available. 

5. Rusholme

If you are familiar with Rusholme, you know it’s nicknamed the “the Curry Mile” for a reason. Thanks to many curry houses, Rusholme is an area in Manchester with its own distinct culture and Asian influence.

High-performing schools make Rusholme an appealing area for families, while excellent transport links to Manchester City Centre make getting around a breeze. Suppose you’re looking for somewhere with plenty the conveniences and great food. Rusholme should be on your list of places to live in Manchester.

If you’re looking to live close to the city centre but avoid the premiums that part of city life throws up, Rusholme is the place for you. It’s an excellent area for First-Time Buyers in Manchester; from terraced to semi-detached housing, we are sure that you will find something that is for you.  

6. Sale

5.2 miles south west of Manchester, just down the road from Stretford and Altrincham, is the large Trafford town of Sale. Popular with families, Sale has great local options for children’s education, with some regularly well-performing primary schools in and around the area. It doesn’t just stop there however, as there are plenty of secondary school options too, some of which are considered high in-demand.

There’s a great community feel in Sale, with a mixed variety of different people and even a volunteer run festival for people to take part in. If this hasn’t sold you on the area already, then let’s talk property prices. No matter the era of property you’re looking to buy, you’ll find the property prices to be a lot lower than expected, appealing to people from all walks of life.

Like much of the Manchester area, Sale too is rich in history, with potential findings suggesting even prehistoric life in this general location. For an affordable, historic and community driven area with great opportunities for your children to grow, a place in Sale could be just the home you’re looking for. 

7. Salford

Salford is an ideal location for any media enthusiast as this city is a media hub surrounded by green belt land. Salford is a perfect place to live in, from its vibrant community to its thriving modern hub, putting it firmly on the home-buying map for First Time Buyers or Home Movers in Manchester.

Thanks to MediaCityUK and the investment in the area, Salford now homes more shops, restaurants and bars, but if this isn’t enough, the attractions of Manchester City Centre are always nearby. But this modern city development hasn’t destroyed its green spaces. Salford remains one of the UK’s greenest cities so that residents can enjoy waterfront, urban and rural living.

Supported by excellent housing prices, Salford is a great place to live in Manchester. Make sure that you don’t sweep this option under the rug. 

First-Time Buyer Mortgage Advice in Manchester

We hope that our list has proved to be a little helpful in your decision making. Of course, you should still do your own research and visit the areas yourself, but we at least summarised the highlights of some of the best areas in and around Manchester, to really give you a feel for what they may be like.

If you are looking at Moving Home in Manchester and would like some help with getting the process started, please do Get in Touch. A trusted and dedicated Mortgage Broker in Manchester like ourselves will work hard to try and guide you through the whole process.

Costs of Buying a Home in Manchester

First Time Buyer Mortgage Advice in Manchester

Buying a home, whether you’re a First-Time Buyer in Manchester or have experience already in the property market, can be a rather stressful and an expensive process. The cost of all this only goes up even more when you are looking to buy and sell at the same time. Here is a helpful breakdown of some of the expenditures you will have to consider when buying a home in Manchester.

The break down of costs

Estate agency fees

You should know that you only need to deal with estate agent fees when it comes to selling a property. The prices of their services can vary between companies, so make sure you try to find the best price and leading service before diving into anything concrete. The cheapest agents tend to be online ones who don’t have to worry about the costs of maintaining offices.

If you aren’t too sensitive to how much something is going to cost and you would prefer a more personalised service, you may have to pay an extra 1-2% of your properties selling price.

The fees usually have room for negotiations, especially in a “seller’s market”. A seller’s market is where agents are fighting to get your instruction, because of lack of houses on the market.

Property survey fees

If you are thinking of taking out a mortgage, then a lender will need to be certain of whether the property is worth what you’re actually going to be paying for it. If you are lucky, your lender may offer you this service for free, although they may not send you a copy of the report in return.

From time to time, we have seen that lenders may not offer a free valuation. When this is the case case, you may need to pay a few hundred pounds for one to be undertaken. You can expect to pay roughly double that price if you would like to upgrade to a more in-depth Homebuyers Report.

Whether you wish to elect for a more detailed report or not, is entirely up to your choice. Your decision will likely depend upon the age and type of property you are purchasing. This will be along with any fears/concerns you have about the property in question.

Mortgage arrangement fees

Some mortgage products offer comparatively cheap rates. Although this benefit can be outweighed by an arrangement fee made payable to the lender. Not every product will have one, so the cost, for example, could either be nothing at all, or as much as £999, possibly even more than that, depending upon the lender or product you have gone with.

Sometimes these are to be paid as upfront costs or, as some choose to do, you can opt for these to be added to the balance of your mortgage. Although because of this, you would then incur further interest charges. As an experienced and hard working Mortgage Broker in Manchester, we are able to compare mortgage deals factoring in these costs, to give you a more general overview of what your costs may be.

Solicitor Fees

You’ll need to take up the services of a solicitor, wherein the fees quoted by various firms can differ by huge amounts. A very rough estimation for a straightforward purchase with a company, is probably around £600 for a low-value property. You will need to give the property address, as well as give the purchase price to obtain quotations on what you’ll have to pay. This is the case whether freehold or leasehold.

The key points to cover when asking for a quote are:

  • Ensure the firm includes VAT
  • Ensure the firm includes the cost of any “disbursements.” These are fees such as Land Registry Fees and Authority Search Fees
  • Is your Solicitor on your mortgage lenders panel?

Stamp duty

The solicitor collects on completion of the property purchase, in addition to your Solicitor’s fees and disbursements. You will be required to pay this fee. Full details can be found here: https://www.gov.uk/stamp-duty-land-tax. An example would be if a residential purchase was £180,000, the Stamp Duty would be £1,100.

Broker fees

Your Mortgage Broker in Manchester will usually charge a fee for their dedicated mortgage advice service. Please try to use a company that charges on mortgage offer only, and doesn’t request any payment upfront, as this means if things happen to fall through, you walk away without a payable fee. Avoid any application fees where your money will be at risk too.

Removal fees

The cost of moving your furniture can vary by large amounts, depending on the service undertaken. It will depend on the level of service you are looking for.  If you are quite happy to hire a van and roll your sleeves up, or even hire the services of a local man with a van, this can cost less than £200. On the other hand, if you are looking for a company that provides the full service this can be well over £1,000.

If you would like to discuss the costs involved in obtaining a mortgage in more detail then please don’t hesitate to Get in Touch and speak with a Mortgage Advisor in Manchester today.

Moving Home Mortgage Advice in Manchester

Fixed-Rate Mortgages | Mortgage Advice in Manchester

Fixed-rate Mortgage Advice in Manchester

What is a fixed-rate mortgage

The general rule of thumb in the mortgage world, is that the longer you fix your mortgage for, the higher the interest rate is going to be. Therefore, if you are looking for the lowest rate possible, you should really look for a short term fixed rates mortgage. The downside to a short-fixed term, is that your mortgage will be up for renewal quicker, meaning that when you come to Remortgage in Manchester, your monthly mortgage payments might be a lot more than they were previously.

What is a Fixed-Rate Mortgage? | MoneymanTV

Medium & long term fixed mortgages

If you don’t like the idea of searching for new fixed-rate deals every two years, but would rather not reach the point where interest rates go too high, then a medium-term fixed rate could be the best option for you and your circumstances.

Five-year fixed rates are popular choices, as they add the security of constant monthly payments for the foreseeable future. The downside here is that if interest rates drop whilst you’re locked in, you will end up paying more than you might have had to, if you had instead opted for a shorter period.

There are a limited number of 7 to 10-year fixed rates on the property market. These have always been the least popular choice for customers, due to the sheer length of the deal, as people tend to feel a decade is too long to be fixed in for a mortgage. These are also the most expensive fixed mortgage products available to customers.

Fees

In addition to the interest rates, you also need to take into consideration the booking and arrangement fees. A booking fee is payable upfront, whereas an arrangement fee is payable on completion. You might know people who have added fees to their mortgage amounts, but this increases the total amount repayable at the end.

Sometimes your financial circumstances suddenly change and you might have to repay your mortgage a lot earlier than you had initially planned for. This is called an ERC or an Early Repayment Charge. The ERC is calculated as a percentage of the amount that is still owed on the mortgage. So if say for example, mortgage amount you have left to pay is £200,000 and you are able to pay that off early, with a percentage that is 2%, you would have to pay back £4,000 to cover the broken fixed contract.

Many homeowners think that they can pay off their fixed mortgage early, without knowing about the Early Repayment Charge. You are tied into that deal and you can’t just jump out of it and pay it off early, unless you are okay with having a repayment charge added onto it. People who know about the charge may still choose to pay their mortgage off early to get a better deal that is currently on the market, especially if it is one that may not be available in a couple of months.

We would recommend that you avoid chasing after “headline” deals. You need to remember that the lowest rates come with the highest setup fees. Please Get in Touch today for more fixed-rate Mortgage Advice in Manchester. If you are still uncertain on them and need more help, our service could be truly beneficial to you.

Mortgage Advice in Manchester

Plan Ahead to get a Mortgage in Manchester

Fast & Friendly Mortgage Broker in Manchester

If you are looking at buying a house, choosing to do so is not something that should be decided in a day. It requires careful planning and preparation over a long stretch of time. Even with that in mind however, you’d be surprised at the amount of people we deal with on a regular basis, who are more instinctive in their buying behaviour and have therefore neglected planning for a mortgage ahead of time.

There are many different reasons why a First-Time Buyer in Manchester may choose to jump into such a large financial commitment on a whim, with some of the most common including; buying from a family member who is now moving home, a landlord deciding to sell their property but offering first refusal, or buyers see a ‘For Sale’ sign outside a house they’re interested in buying, despite never having the intention of buying in the past.

The issues with not planning for a mortgage

By not planning in advance for a mortgage, buyers are leaving themselves open to various potential issues with their mortgage. Some of the mortgage hurdles we find customers regularly come across are:

  • Not having enough for a deposit due to not enough free time to save money.
  • Having a poor credit score due to never seeing it as important in the past.
  • In poor control of your bank account.
  • Being self-employed and your latest accounts do not look the best.

Deposits

Saving up your deposit for a mortgage can be quite difficult, especially if you are renting at the moment from a local council or private landlord. This is because whilst you have a constant income, you also have large outgoings and essential purchases each month, limiting what you can save in-between.

The good news is that family members are able to help via the use of a Gifted Deposit. We find that this is a regular occurence with First-Time Buyers in Manchester, as family members will tend to try and help whenever they can. If a family member is looking to help, it’s best to give them as much notice as possible, so that they can get their own finances in order!

Credit Rating

Getting an up to date credit report is not an incredibly difficult task. You may have seen TV adverts for various different credit reference agencies, but we personally would recommend Check My File, as they are able to collate the data from these sources into one, for you to compare.

Once you have downloaded your credit report, you can send it across to a mortgage advisor in Manchester, who will take a look at this for you. We see these reports every day and we know what sort of things the lenders like to see, as well as what they do not want to see.

Bank Accounts

When it comes to looking at your bank account, lenders would rather not see lots of unnecessary bank charges or gambling transactions on your bank statements. You will need to provide the lender with a good explanation as to what has been happening on your account and how you plan to resolve this going forward if any issues to happen to arise.

Self Employed

For the self-employed, we understand that Accountants try to minimise the tax liability for their customers. Having said that, if your year-end has come around, then there is nothing to stop you submitting another set of accounts earlier than you might normally do, especially if you think your business has grown in the last 12 months. There are some lenders that consider ignoring previous years’ figures if the latest ones are more favourable.

No matter your circumstances, if you are still facing one of the problems above, it’s possible that we may be able to help. Our team of mortgage advisors in Manchester love a challenge so do feel free to Get in Touch!

How Much Deposit Do I Need to buy a House in Manchester?

100-125% mortgages are truly a thing of the past now. Following on from the infamous Credit Crunch, the country seems to be in a more stable, secure financial state and the property market is performing far better than it did before. With more rules and regulations in place (see Credit Crunch for more information on this), mortgage lenders now seem a lot more confident in offering 95% mortgages to their customers.

Of course, it doesn’t just have to be 95%, it can be as low as you might want this to be. The more savings you have free to put down as a deposit, the less you have to pay back overall, and you open yourself to the possibility of better interest rates.

Deposits essentially work as safety nets for the mortgage lenders. What this all boils down to, is that the lender needs to be confident you can make your monthly repayments. If you don’t do this, they’re at a financial loss and need to repossess and sell your property. By putting down a larger deposit, you are less risk to the lender because you are not borrowing as much from them. This also means that if the property market fluctuates and prices dip, they can afford to drop the price a little and still stay somewhat profitable.

We know that for many people, the process of saving up for a deposit to put towards a mortgage can be quite difficult, putting a roadblock in the way of trying to jump from renting to becoming a First-Time Buyer in Manchester. If you are already renting or have a family this can be even more so of an issue, as money you would like to put aside for saving often has to go on other essential needs.

Our dedicated and trusted mortgage advisors in Manchester regularly find themselves faced with many different questions about their deposits. Here we are going to look at these as best we can, with a hope of providing you with answers and a greater understanding of what it is you need to be successful, with a chance of also elevating you to a better deal with a lender.

Is it better to put down more than 5% Deposit for a Mortgage?

Without a doubt, yes we definitely recommend this! The more you can put down for a deposit, the lower your rate of interest will be overall. One of the more attractive benefits of this is that it allows for potentially lower mortgage repayments per month, as you will also be borrowing less for the property you wish to buy over the course of your term.

Once again, putting down a higher deposit also means you are at a lower risk to the lender should things go wrong, so it really does work in your favour. Products are offered in bands of 5%, the most expensive of these being 95% mortgages.

Can I take out a Personal Loan for the deposit?

It is not unheard of for this to be possible, though it does not happen often and is definitely not recommended. The use of a personal loan is considered as an additional credit commitment. Because of this, the lender will grant you a smaller mortgage than the one you might have previously found yourself with, had the deposit not been borrowed. The reason that the majority of lenders would rather this not be the case, is because at this point you would essentially be paying back 100% of the purchase price, with whatever deposit you had to cover the mortgage being paid back anyway.

Do Lenders Accept Gifted Deposits for a Mortgage?

Yes, almost all lenders are completely fine with Gifted Deposits from members of your family and sometimes, depending on the lender and the circumstance, from friends too. The one who is gifting must also be ready, willing and able to confirm that it is purely a gift and not to be paid back at any point. For anti-money laundering purposes, they may also need to provide proof of ID, as well as proof of their own funds.

Dubbed the “Bank of Mum & Dad” by many, gifted deposits are seen by many as a saving grace for those struggling to get onto the property ladder and the market would be a very different place without it.

Evidencing the Deposit

For the sake of Anti-Money Laundering regulations, all applicants will need to evidence where exactly they got their funds, an audit trail if you will, by providing bank statements. Lenders like to take a look at how exactly any potential savings have been built up too. Recent large cash deposits in your account can be a big hurdle for lenders.

If you have done something like sell your car, you will need a receipt and proof that the amount it sold for matches the deposit of money made in your account. The longer you let these funds sit in your account, the easier this process gets as it’s not just a sudden and recent increase. Providing an audit trail for your deposit source can often be one of, if not the most difficult part of the application.

If you are selling a property you own to put money towards your deposit, then your proof of deposit in that case will be the Memorandum of Sale provided to you by the estate agent. These are documents that record and detail the buyers’ interest in your property and the terms of sale you have agreed on in order to hand over ownership.

Help to Buy Equity Loan and New Build Mortgages

If you happen to qualify for the government Help-to-Buy scheme (which is really useful for First-Time Buyers), you are still only required to have a minimum of a 5% deposit. With an additional boost of 20% from the government equity loan, this will bump your deposit up to 25%, allowing you to access a lower rate mortgage. It is very important that you remember to pay this back though. It is a loan, not a gift!

Buying as a Sitting Tenant/Buying from a Family Member – Do I need a Deposit?

Depending on the situation you are in, no you don’t always need one. If the house has been discounted by the owner, then some lenders will accept the discount (which is basically the equity in the property) as deposit. For example, if the property is worth £100,000 and you have been offered it for £90,000, they will take the £10,000 discount off the property value as a deposit. This goes hand in hand with the Right-to-Buy Scheme from the local authority or private landlord.

Please be advised that the above information is for reference purposes only and is not to be viewed as personal financial or mortgage advice.

How Much Can I Borrow for A Mortgage in Manchester? Then Versus Now

Mortgage Advice in Manchester

How Much Can I Borrow For A Mortgage | MoneymanTV

If you are looking for an estimation of how much you can borrow for a mortgage based on your household income, it may be worth your time trying our free Mortgage Calculator. If you would prefer a more accurate mortgage affordability figure, please Get in Touch and we’ll book you in for a free mortgage consultation with one of our Mortgage Advisors in Manchester.

The two most common questions First-Time Buyers in Manchester and Home Movers in Manchester ask us are, “Can I get a mortgage in my situation?” and “How much can I borrow?”. In this article, we will jump into the latter, which has looking at what’s changed over the years, as well as today’s approach and how it may apply to your situation.

Historic Rules

If we look back to the ’80s and ’90s, the majority of mortgage applications were underwritten manually. What this means is there was quite a lot of “human intervention” in the process of approving these mortgage applications. You’d make an appointment with your Building Society Manager, and he or she would interview you to discuss your case.

This would inevitably turn into a sales pitch, where they would encourage you to save with them for a while until you prove yourself to be creditworthy. The manager would then grant you the equivalent of today’s Agreement in Principle. Following on from this, the customer would then receive some advice on how much they could potentially borrow.

Whilst this sounds very much like a highly personalised process with a common-sense approach, it would often lead to inconsistent decision-making. The manager had the discretion to interpret the lending manual as they saw fit. In other words, it was entirely possible to approach the same Building Society in a different town or city and leave, having obtained a completely different outcome.

To stop this from happening and more importantly, to cut unnecessary costs, lenders moved to automated affordability calculations. “Caps” were applied so they were able to lend you more than 3 or 4 times your household income.

As we went further into the 2000s , lenders became more and more, maybe even too generous in how much they would lend their customers. Some Lenders would offer self-certified mortgages, wherein no background checks would take place and the customer could declare how much they were earning, even if it was a blatant lie.

The market was a shambles and as you may have heard, completely crashed, leading to the infamous Credit Crunch of 2008. The years between then and 2010 were challenging years indeed, especially if you were trying to get on the property ladder. The lenders battened down the hatches and created a very cautious (over-corrected) lending environment.

Nowadays Approach

Through very hard work and patience, the market recovered. In 2014 the regulator launched the Mortgage Market Review (MMR), a new set of guidelines for lenders to follow in order to prevent what happened before, from happening again. Gone were the old-style income multipliers, which took little account of household expenditure.

It may be shocking, but before 2014, whether their credit histories were good or bad, two applicants earning the same income could borrow roughly the same as each other. This was also not factoring in how much they spent each month. From here came new affordability models, taking a much more forensic view of how mortgage applicants managed their money on a monthly basis.

On top of the cap that was put in place, we have seen that the majority of mortgage lenders will not go past 4.75 times your annual income, and they prefer to analyse your spending habits. Depending on your personal situation, you may have high childcare costs, a large amount of credit commitments, and a student loan. In these cases, they will likely offer you less than your work-colleague who doesn’t have any of those regular outgoings.

We are always surprised by the large differences between lenders in how much, or little they will lend to some customers. From time to time, some lenders have been known to penalise low-earners. It could just be that they are not looking for that type of applicant. Some take pension contributions as a fixed outgoing so may lend, for example, a public sector worker with a significant pension deduction, less than a private sector worker.

Different lenders each have their own criteria, and each customer has their own situation unique to them. If you need to maximise your borrowing capacity to obtain the home you need to buy, then you’ll greatly benefit from the advice of a dedicated Mortgage Broker in Manchester. We’ll be able to search the market on your behalf to see if anyone will lend you the amount you need.

If you’re wondering “How Much Can I borrow?” and looking to take out a mortgage, you should speak to one of our Mortgage Advisors in Manchester today, so we can work out your finances together to ensure that the repayments feel comfortable to you.

Fast & Friendly Mortgage Broker in Manchester

Should I Pay Off my Mortgage Early or Invest?

Should I overpay my mortgage?

Should I pay off my Mortgage Early or Invest? | MoneymanTV

Whether a First Time Buyer in Manchester who’s looking to put their foot onto the property ladder, thinking of moving to Manchester or looking to Remortgage for Home Improvements, overpaying, even by a small amount, can make a big difference in the amount on the interest you pay back over your mortgage term. The earlier you start overpaying, the better the effects of your extra payments.

Is overpaying on your mortgage worth it?

Some homeowners choose not to down this route, and some cannot afford these additional payments. Sometimes it can come down to life gets in the way. In any case, overpaying is the ideal thing to do when you take out a mortgage, but in reality, there’s always something new and flashy we’d instead invest our money on rather make an extra payment on the mortgage.

The issue seems more likely just to be remembering to overpay your mortgage. It’s not something we imagine comes into your mind too often either, especially when your mortgage term is almost up.

Some people hope to overpay to retire early. If you feel like making additional payments, our recommendation is to set up a payable standing order to your lender each month. Set it up to go out on the same day as your regular mortgage payments.

An example of overpaying a mortgage

Suppose your monthly mortgage payment is £450 per month and goes out on the 2nd of each month. You can afford an extra £85 per month and want to put that towards your mortgage payments. Set up a standing order of £85 to go out to your lender on the 2nd of each month too.

One of the perks of this is your mortgage payments will then total at £535, and because it’s going out as a regular payment, this will feel and later become the norm for you. Another perk is that whereas the receiver controls a direct debit, standing orders, the payer is in total control.

The good news is if you have a financial emergency and don’t want it to go out this month? Simple, all you need to do is log into your online banking and cancel the payment.

Whilst it would be a shame to have to stop making additional payments, at least you’ll receive those benefits thus far; depending on the lender, you may even be allowed to arrange reduced monthly costs or take a ‘mortgage payment holiday’ if you’ve been overpaying for some time. It’s essential to check with lenders, though, if you’re looking to do this; otherwise, it could negatively affect your credit report.

Overpaying is a great habit to have, but it’s not obligatory. If you don’t feel the need to, you don’t have to. That said, shaving off a year or two off your mortgage term will be something you’ll benefit from significantly.

 

Product Transfer V Remortgage

What is product transfer?

When your initial mortgage deal reaches the end of it’s term, your mortgage lender may offer you a newer, revised deal to stay on their books. In the mortgage market, this is what is known as a Product Transfer.

It’s important to remember, however, that you are under no obligation to agree to this deal. If you wish to leave that lender and look at your options elsewhere, you are well within your right to do so. It is highly likely that you will find much better deals out there through another lender, one that is more beneficial for your personal and financial circumstances. It’s just the case of finding that works well for you and what you’re looking to do going forward, an area of which your Mortgage Broker in Manchester may be able to help.

Are you rewarded for being loyal?

Whilst the concept sounds ideal on paper, lenders will unfortunately not reward you for your loyalty towards them. Whether you have been a customer for 5 years, 10 years or 50 years, the reality will stay the same. Lenders have even been known for offering new First-Time Buyers in Manchester customers better rates than they tend to offer customers who are already undertaking a mortgage with them.

This is one of the many reasons why it is recommended that you shop around and looking for more competitive deals. Though this can be achieved off your own back, you may find yourself benefitting from utilising the help of an expert Mortgage Advisor in Manchester. As a trusted and experienced Remortgage broker in Manchester, we are able to work with a large variety of different lenders on panel that we have access to, allowing us to find you the most appropriate and favourable mortgage deal for your circumstances.

We often find that usually, our customers can get better rates and they are missing out those opportunities because it’s more ‘convenient’ to stay with the lender you already know and are currently using.

Tempted by an online switch?

Whilst the process of swapping from an existing deal over to a new deal with your current lender may seem straightforward online, we always believe it is incredibly beneficial to see what other deals you may be eligible for. Lenders will also try to tempt customers to go with a new deal online, without that customer actually taking any professional mortgage advice, leaving some customers aware they could have ended up with a better deal.

The lender not providing advice to online switches is rather dangerous, as without professional advice, you are essentially saying goodbye to all the valuable consumer protection you would have benefitted from had you been given that option initially. Rushing into something like this headfirst is absolutely not recommended. Please take a step back and analyse all of your options prior to making a final decision on what to go with going forward.

All customers who contact us for mortgage advice in Manchester will benefit from a Free Mortgage Consultation. Once we have your information keyed in, we will pass you onto a Mortgage Advisor in Manchester who will talk you through all of your mortgage options and work with you to try and ensure you end up with the most appropriate deal available to you, based on your personal and financial circumstances.

You’ll be opting out of advice

We have seen various different examples of customers over the years, being affected these “follow-on” deals and ending up being locked into an inappropriate deal. Lenders like it when you choose not to go with advice, as it invalidates any future complaints due to you taking your own path and neglecting to take any advice. In their minds, this way you only have yourself to blame for any displeasure with your deal.

We have seen this happen in the past with our customers. In one particular case, we saw someone declined for a small further advance, which was intended to fund some necessary home improvements down the line. This customer then had to pay a rather large early repayment charge to change over to a new lender who would grant her the additional required funds.

Always get mortgage advice

You may expect that we would recommend using a mortgage broker in Manchester, but we only do so with the intent of making sure you are fully equipped for the mortgage process. If handled without a mortgage advisor in Manchester to back you up, you could find yourself in a rather troubling situation. We only ever have your best interests at heart!

Even though this is the case, it doesn’t necessarily mean that we will tell you to switch. If we feel that your best option is to go with a Product Transfer, we will recommend that you take action and take up the deal whilst you still have that option available to you.

Regardless of these paths, even if your requirements seem straightforward, we always recommend you take mortgage advice in Manchester. A second opinion costs nothing and making a mistake when taking a new product can cost you a lot of time and money.

The Remortgage market is a very competitive part of the mortgage market. Savings can often be made by searching the market for a new deal with the assistance of a mortgage advisor in Manchester. Getting help from an experienced Mortgage Broker in Manchester could be the most beneficial option, especially if your financial or personal circumstances have changed since your initial mortgage process was underway.

If you require any further Product Transfer advice or Remortgage Advice in Manchester, feel free Get in Touch with your Mortgage Broker in Manchester.

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