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If you’re considering buying additional properties, you might wonder how many mortgages you’re able to take out.
The answer depends on several factors, including whether you’re looking for residential or buy-to-let mortgages in Manchester.
This guide will explore the differences between these types of mortgages, explain what lenders typically look for, and address common questions people have when thinking about multiple properties.
Most people begin their property journey by taking out a residential mortgage to buy a home that they intend to live in.
When it comes to residential mortgages, lenders focus on your ability to afford the monthly payments on your primary residence.
Taking out a second residential mortgage, perhaps to buy a holiday home or a property closer to work, adds a layer of complexity.
Lenders are open to financing multiple residential properties but will carefully assess your financial situation.
You’ll need to prove that you can comfortably afford the payments on both properties without stretching your finances too thin.
Lenders closely examine your income to ensure it supports the new mortgage alongside any existing commitments.
They stress-test your finances, often considering potential interest rate rises to make sure you can still manage the payments.
Having a solid credit score is also essential, as it reassures lenders that you are a responsible borrower.
For most people, it is possible to take on a second residential mortgage in Manchester, though success depends on these factors.
Typically, lenders allow up to two residential mortgages, but they may question your motives for purchasing additional properties beyond that.
If you plan to buy properties as investments, you’ll need a buy-to-let mortgage in Manchester rather than a residential one.
Buy-to-let mortgages in Manchester are designed for landlords and investors who rent out properties, and the rules for how many you can have differ from residential mortgages.
Many lenders are willing to offer multiple buy-to-let mortgages in Manchester, often without a fixed limit, provided you meet their criteria. In buy-to-let mortgages, rental income is the primary factor.
Lenders want to be certain that the rent generated will cover the mortgage payments. Often, they expect the rental income to exceed the mortgage payment by a comfortable margin.
Another important element is the deposit, which tends to be higher than for residential mortgages in Manchester. The typical deposit required is around 25%, though this can vary depending on your financial situation.
Lenders also test your ability to cope with fluctuating circumstances, such as interest rate increases or periods when the property might not be generating rent.
For investors who are confident in managing rentals, buy-to-let mortgages in Manchester can offer a pathway to growing a property portfolio.
Some lenders will cap the number of buy-to-let mortgages in Manchester you can hold, usually between three and ten.
In contrast, others cater to portfolio landlords, those who own four or more properties, by offering tailored deals that accommodate larger portfolios.
Many people wonder whether there is a limit to the number of residential mortgages they can hold.
Although there is no legal restriction on the number of mortgages you can have, most lenders are cautious about approving more than two residential mortgages in Manchester.
They want to see clear evidence that you can manage all payments. It is possible to have both a residential and a buy-to-let mortgage in Manchester simultaneously.
This is common for those who live in one property and invest in others. The main point to remember is that you’ll need to meet the affordability criteria for both loans.
Lenders will look carefully at your income, credit history, and the potential rental income from the buy-to-let property.
When it comes to buy-to-let mortgages in Manchester, lenders each have their own rules.
Some may limit you to three to five properties, while others specialise in working with portfolio landlords and are more flexible about the number of mortgages in Manchester you can hold.
These decisions are based on factors such as rental income, property values, and your overall financial stability.
If you’re planning to expand your property portfolio, particularly through buy-to-let properties, it could be beneficial to work with a specialist mortgage broker in Manchester.
Brokers can help navigate the complexities of securing multiple mortgages, especially if you plan to own four or more properties.
They may also be able to connect you with portfolio mortgage products that streamline the process of managing multiple properties.
Homeowners often use the equity built up in their primary residence to purchase additional properties.
This can be done through remortgaging in Manchester, which releases funds to be used as a deposit for another property.
It’s important to carefully consider whether you can afford the higher repayments associated with releasing equity in Manchester, as this will increase the total amount you owe.
A second-charge mortgage is another option if you need additional funds but don’t want to remortgage your current property.
This mortgage acts as a separate loan secured against your home. It can provide a way to raise capital for another purchase, but the interest rates are typically higher than standard mortgages.
There are also financing options for uninhabitable properties at the time of purchase. In such cases, a traditional mortgage may not be available, so buyers might explore alternatives like bridging loans in Manchester.
These short-term loans are often used to secure a property quickly, to renovate it before arranging a standard mortgage in Manchester.
It’s essential to understand the costs and risks associated with these loans, as they usually carry higher interest rates and fees.
The Financial Conduct Authority does not regulate some types of buy to let or commercial mortgages.
Depending on various factors, including your personal situation and your mortgage lender, a change to a buy to let mortgage might be feasible.
This can happen if you decide to change your living conditions, for example, by moving in with a friend or a partner who owns a property, opting for a rental accommodation, or purchasing a new dwelling for yourself.
At the same time, you might choose to retain your current home, converting it from a residential to a buy to let property, and thus becoming a landlord – a decision often providing a supplemental income for many.
The process of changing your mortgage to a buy to let involves talking to your lender, as initial approval from them is crucial. Following that, consulting with a reliable mortgage broker will be beneficial as you would essentially be remortgaging your property to change the type of mortgage. Whether you continue with your existing lender or move to a new one, a proficient mortgage advisor in Manchester can guide you to a suitable deal.
Remortgaging becomes essential as the terms of your original agreement undergo a change. The approval for a buy to let mortgage entails more than just the lender’s acceptance; you will need to meet their stringent criteria.
The conditions to be satisfied for changing your mortgage to a buy to let involve staying on your residential mortgage for a minimum of six months, post the change. Multiple factors are then taken into consideration such as the affordability entirely built upon rental prospects of your property, equity availability in your home amounting to at least 20-25%, a clean credit history, and the type of property you own. You must also have prior landlord experience as some lenders may not consider first time landlords, although there are alternative solutions available.
Living in your own buy to let property can lead to a violation of your mortgage terms and serious repercussions. If you plan to rent out your present property to buy a new dwelling, this is termed as a let to buy mortgage in Manchester, which might be a plausible choice for individuals seeking an income boost while moving to a different location.
The number of buy to let mortgages an individual can hold is not distinctly limited but will be determined based on the lender’s evaluated risk. To understand better, consider consulting a dedicated mortgage advisor.
An option of ‘consent to let’ might be open to some homeowners, generally used for short-term purposes, where your property is temporarily classified as a buy to let in Manchester. However, restrictions are applied by the lender.
To gain more insights on converting your residential property into a buy to let, feel free to book a free consultation with our qualified specialists. They can assess your situation, provide advice, and detail the accessible deals for you.
The world of homebuying presents a multitude of mortgage options. Each option carries its unique attributes, pros, and cons. This piece will shed light on the tracker mortgage, exploring its functionalities, popularity among homebuyers, and other essential considerations.
Selecting a mortgage deal isn’t a one-size-fits-all scenario. The utility of a mortgage relies heavily on the situations it’s applied to. For instance, acquiring a tracker mortgage initially may seem like a good idea, until you discover that fixed payments (fixed-rate mortgage) would have been more suitable down the line. Unfortunately, with a contractual agreement in place, it’s often too late to make changes.
That’s why we strongly advocate for upfront planning, research, and professional advice, especially for first time Buyers and home movers in Manchester. As a trusted mortgage broker in Manchester boasting wealth of experience, we can provide invaluable mortgage advice tailored to your unique needs.
Essentially, a tracker mortgage reflects the Bank of England’s base interest rate plus an additional percentage determined by your lender. Your lender has to adhere to this external rate, which invariably affects your interest rate.
For example, if the Bank of England’s base rate is 1%, and the lender adds an extra 1%, your interest rates ultimately resonates with the bank’s percentage.
A tracker mortgage is intimately linked to the health of the economy. If the Bank of England’s rate is high due to a struggling market, it may not be the best mortgage option. Conversely, if the base rate is low due to favourable economic conditions, a tracker mortgage might be an appealing choice.
Manchester offers a diverse selection of mortgages suitable for first time buyers in Manchester. To ensure you make an informed decision, consider seeking advice from a reputable mortgage advisor in Manchester on plausible options.
Having been in the mortgage industry for over two decades, we offer trustworthy advice to first-time buyers. Based on our exceptional understanding of the different types of mortgages, we can match your specific needs to the best possible mortgage type.
Our services also extend to existing homeowners looking to remortgage or move homes in Manchester. As an endearing and skilled mortgage broker in Manchester, we are committed to guiding you through the entire mortgage process, ensuring a smooth and satisfactory experience.
A Debt Management Plan (DMP) represents a formal commitment between you and your lenders to gradually repay your outstanding amounts. This process begins with a clear disclosure of your debt level, which allows your creditors to look into the severity of your financial obligations. They will then delve into your earnings and regular expenditures in order to map out your spending patterns and identify potential areas for scaling back.
Upon collating these details, a bespoke DMP will be devised for you, ultimately enabling debt repayment via affordable monthly instalments. What follows is looking into how a DMP could provide benefits for you and your mortgage situation in Manchester.
Interestingly, your credit score can benefit from a DMP. If you initially have a below-average credit score, consistent monthly payments and gradual debt elimination potentially boosts your rating. Essentially, as you score is down due to the debt linked to your name, it stands to reason that your credit score should increase over time, should things improve.
A stronger credit rating improves your chances of accessing more favourable mortgage rates. However, keep in mind that a heftier deposit is often required given your ongoing indebtedness.
Through a DMP, you can stave off a default designation —provided none has been previously declared. Once assigned, a default cannot be excised from your record for six years, even if the associated debt has been fully repaid. As your mortgage broker in Manchester, we would strongly advise against letting defaults blemish your record whenever possible.
Consulting specialist mortgage advice in Manchester could fast-track composing a DMP to help you avert a default. Lenders are bound to ask numerous queries when scrutinising a default, thereby making it a situation best avoided. If you have already been tagged with a default, it could potentially be enveloped into your DMP amount. Regrettably, its continued presence on your credit report would render loan approval more challenging.
A DMP can be a tremendous aid in decluttering your financial landscape and restoring fiscal stability. Particularly while considering a mortgage or remortgage application, a thorough financial reassessment — factoring in your DMP payments and habitual expenses — often proves indispensable.
For instance, laying off gambling prior to your mortgage bid not only displays serious financial stewardship but also discourages lenders from viewing such habits as irresponsible, especially when you’re simultaneously managing a DMP.
In certain scenarios, you might opt out of a DMP and instead choose to amalgamate your existing debt with your mortgage. Although this raises the net mortgage value, it does securely attach your debt to an owned asset.
Consultation with a Manchester Mortgage Advisor is indispensable when manoeuvring through complex debt consolidation processes. We strongly discourage consolidating debts into your mortgage without professional guidance.
You can book a free mortgage appointment with an expert online. Follow our Get Started process to choose a date and time best suited to you.
The Financial Conduct Authority does not regulate some types of buy to let or commercial mortgages.
Buy to let mortgages in Manchester have emerged as a key financial investment endeavour for many who seek to capitalise from property letting in Manchester. Here, we delve into the core features of these unique mortgages, exploring how they compare to traditional home loans, and what you should consider before signing up for one. This guide caters to both seasoned buy to let property owners and those considering entering this investment field for the first time in Manchester.
A buy to let mortgage can be seen as a catalyst for income generation via tenant rentals, typically employed to cover mortgage costs and possibly more. As an owner, you are obligated to keep the property mortgaged with the intention of letting it out. Strong correlations do exist between previously rented properties and buy to let mortgages.
These mortgages are structured to facilitate individuals desirous of acquiring properties for tenant rentals. Lenders usually impose higher deposit requirements compared to ordinary home loans, and their approval is often hinged on the would-be rental income and the personal financial standing of the applicant. A lender generally expects rental income to surpass the mortgage payment by a certain margin, often around 125%. Buy to let mortgages may be interest-only (matured interest repaid monthly) or repayment based (capital and interest repaid monthly). The full outstanding balance must be settled at the end of the term. Despite the slightly different eligibility criteria and related fees of a buy to let mortgage, it is beneficial to link up with a mortgage broker in Manchester, who can guide you through the application process to help find a suitable solution.
The lending institution you approach for a buy to let mortgage will evaluate your potential rental income during your application. Often, as long as your anticipated rental income is reasonably proportionate to your mortgage request, there are typically no borrowing restrictions imposed. Specific lenders may however require a rental income that exceeds the monthly payment by a certain percentage.
Eligibility for a buy to let mortgage in Manchester primarily entails residing in the UK and being over 18 years old. A clean credit history coupled with dependable income to meet monthly mortgage payments is commonly expected. Your capacity to maintain the mortgage, considering not just your projected income but also your potential rental earnings, will be gauged by the lender. Many lenders stipulate a minimum 25% deposit of the property value, however, lesser deposits can be entertained based on individual circumstances. Always engage with a certified mortgage broker in Manchester for expert mortgage advice on buy to let mortgages to find a deal that suits your needs.
Applying for a buy to let mortgage in Manchester means you will need to furnish evidence of income, deposit, address, ID, bonuses, commission and P60. Self employed applicants must also provide their SA302 tax return. Established landlords must supply proof of rental income, usually through an ARLA certified report and mortgage statement for any currently owned properties. Having these documents at the ready could streamline the application process.
Most buy to let investors opt for an interest-only mortgage to minimize their monthly expenses. This option requires that you pay only the interest each month, and the outstanding capital balance is settled by selling the property or remortgaging onto a repayment mortgage at term-end. Alternatively, you may establish a repayment vehicle to offset the cost. While interest-only mortgages are commonly chosen and perceived as more tax-efficient, you can still consider repayment mortgages for buy to let properties, which enables you to pay both capital and interest monthly. While this might mean higher monthly payments, it aids in accruing equity in the property, and gives you full ownership of the property at the end of the term, sans any large capital payments.
A let to buy mortgage allows a landlord to let out the property for income generation. The distinction is that this type of mortgage is generally used by unexpected landlords, who did not originally intend to let their property, but eventually decided to. As an alternative to the process of selling their home and purchasing a buy to let property, homeowners may opt for letting out their current property and utilize the income to offset their new residential mortgage. This provision allows them to earn additional income without needing to buy a new property just to lease it out.
If you own property, you may consider the possibility of temporarily leasing out your property sans the need to convert it into a permanent buy to let property via a provision termed as ‘consent to let’. Not all mortgage lenders offer this option, and those that do may limit the number of days per annum you can lease out your property, typically between 30-90 days depending on the lender. Should you anticipate having to employ this provision, consult your lender to see if they offer it. Bear in mind that this is a temporary stop-gap; long-term rentals sans official conversion to a buy to let may not be allowed and could attract sanctions.
Should you be considering a buy to let mortgage, you must deliberate upon matters like whether the property serves a short-term or long-term investment, the size of the deposit, type of interest rates and associated fees including arrangement and valuation ones. Your final mortgage choice must align with your financial status and future strategy. Consult with a mortgage advisor in Manchester if you are unsure.
Buy to let mortgages present the possibility of owning numerous properties either as an individual or through a limited company. There’s usually no legal limit on the number of buy to let mortgages one could have, but this could vary across lenders. With every application, the lender will reassess whether you are capable of repaying the additional debt. Many buy to let lenders mandate proof of rental income and might use this to evaluate your ability to repay, alongside your personal income and financial commitments.
Typically, buy to let landlords do not dwell in the properties they rent out; such could be seen as breach of contract and could attract penalties or legal action. However, should you find your buy to let property untenanted you might consider converting it to a primary residence, likely requiring refinancing. For more information, consult with a specialist in buy to let remortgages.
Switching from a residential to a buy to let mortgage might necessitate discussions with your lender to understand feasible options. Some lenders might approve a seamless switch whereas others might necessitate a new mortgage approval. Should you choose to switch, the lender might demand a minimum income or certain level of equity in your property and will likely evaluate the potential rental income. It’s advisable to engage financial professional or tax advisor to comprehend how such a switch might impact your financial situation.
Investing in property and leveraging holiday let mortgages in Manchester can be a profitable venture for some investors, offering landlords opportunities to enhance their earnings from their property portfolio.
Beyond the standard buy to let mortgage, there are many other forms of this mortgage at your disposal. A form closely resembling the buy to let mortgage is the let to buy mortgage. Properties with multiple tenants, known as HMOs, and holiday let mortgages are other variations.
In this article, we are going to focus on the holiday let mortgages in Manchester.
A holiday let is a variation of a buy to let concept, wherein landlords temporarily lease out their property to tourists or visitors in the city. These agreements are typically short-term, and the property may be rented out multiple times throughout the year.
Given the ebb and flow of the tourist season, there are likely periods where the property remains unoccupied, which might lead to inconsistent income. Consequently, lenders enforce stricter lending criteria on these types of mortgages.
Much like any mortgage, it is important to ensure that you align with the lending criteria for a holiday let mortgage in Manchester in order to be approved.
These criteria may vary among lenders, but general requirements include a minimum deposit of 25%, a certain level of annual income besides the rental income, a rental income that is sufficient to cover your monthly mortgage payments, and holiday home insurance.
The insurance provides a safety net against potential booking cancellations or periods of low income. Given the inherent risk associated with holiday homes and their inconsistent revenue generation, it is common for lenders to charge higher interest rates.
These mortgages can bolster your income supplementation, particularly during high-demand periods such as school holidays. The possibilities of tax breaks and expense deductions particularly for fully furnished holiday homes also exist, although they are subject to specific criteria. Due to the high appeal of tourist hotspots, property prices are inflated, presenting a challenge to potential buyers.
However, these locations also tend to bring in higher rental profits. One notable downside is the higher interest rates, and if you possess multiple properties, you may also be subject to higher stamp duty. Combined with everyday running and maintenance costs, the expenses can pile up quickly.
Nonetheless, the amount of rent you charge, particularly during peak seasons, and the location of your property can offset these costs. Periods of no income need to be factored into your financial planning but do offer a silver lining—you can use your property as a personal retreat when it’s not on rent.
A traditional buy to let mortgage in Manchester is usually for properties rented out on long-term leases. The minimum tenancy duration typically tends to be 6-12 months with the rent amount determining the borrowing limit as opposed to the landlord’s income.
Conversely, holiday let mortgages are geared towards short-term tenancies, around a month. This leads to varied income due to off-peak seasons when securing tenants may be hard. Lenders determine the borrowing amount based on a deep analysis of potential rental income, taking into consideration seasonal trends, and by reviewing your personal income.
Exploring the landscape of buy to let mortgages and property investments can open a realm of opportunities for landlords seeking to boost their profits.
Beyond the typical buy to let mortgages in Manchester, there exist other options, depending what your looking to achieve. Notably, the let to buy mortgage, HMOs, houses of multiple occupation, and holiday let mortgages. Here, we’ll delve into the subject of holiday let mortgages.
The holiday let scheme is a form of buy to let mortgage that enables landlords to temporarily rent out their properties to tourists or visitors staying in the area. Renting periods are usually short, boosting the chances of an increased number of tenancies throughout the year. These properties experience fluctuations in income as tourism seasons alternate throughout the year, typically leading to ‘stricter’ mortgage lending criteria.
Your eligibility for a holiday let mortgage hinges on your ability to meet the strict mortgage lending criteria. Although such criteria might vary among lenders, some standard requirements include having at least a 25% deposit, a minimum annual income (excluding the rental income), a rental income sufficient to cater for your monthly mortgage payments (with some room to cater for additional expenses) as well as a holiday home insurance.
The insurance covers any possible loss of income or booking cancellations. Given that there will be periods where little to no income will be generated from the holiday home, these are regarded as higher-risk investments, generally attracting higher interest rates.
The answer to this is quite subjective and is reliant on how you balance the benefits against the drawbacks. Such investments can provide extra income, especially during school holidays or peak seasons when demand is high. There might also be the advantage of writing off expenses on fully furnished holiday homes, but this varies. Certain tax perks might also be available, albeit under specific conditions. Consulting with a certified tax advisor on this subject would be beneficial.
However, initial challenges might include high purchase prices for properties in tourist hotspots. High-interest rates, potential stamp duty tax (if you own more than one property), and maintenance costs might make this venture expensive. Despite these costs, high demand during peak seasons might help mitigate the impact. Still, you need to have a plan to float your investment during low-season periods.
Interestingly, one of the appealing features of a holiday let mortgage is the option to enjoy staying in your property during unbooked periods, an advantage not available with conventional buy to let mortgages. Ultimately, the balance between cost and potential profit, coupled with occasional personal use, could make this an attractive investment.
A conventional buy to let mortgage in Manchester typically targets long-term tenants and the loan amount you qualify for is often dictated by the potential rental income. Tenancy periods usually span 6-12 months with specific terms set by the landlord.
On the other hand, holiday let mortgages are tailored for short-term tenants, typically for around a month. Seasonal fluctuations could affect your income and securing tenancy during off-peak seasons could be a bit challenging. Lenders evaluating your loan capacity for holiday let mortgages will likely consider potential rental income (taking into account various letting seasons) and personal income.
The Financial Conduct Authority does not regulate some types of commercial or buy to let mortgages in Manchester.
Within the realm of mortgages, various paths await property purchasers, ranging from first-time homebuyers stepping onto the property ladder to homeowners exploring remortgaging, holiday lets, and HMOs.
The potential achievements on your mortgage journey depend on your unique situation. One specific area we frequently encounter when engaging with new or seasoned landlords is the buy-to-let mortgage in Manchester.
A buy to let property in Manchester is classified as an investment property, strictly intended for profit and not for personal residence. If you’ve previously lived in a privately rented property, it likely had a buy to let mortgage attached.
To qualify as a buy to let property in Manchester, it must be intentionally mortgaged with the landlord clearly indicating plans to rent it out. Monthly rent from tenants should cover the mortgage costs and provide additional income.
Eligibility for a buy to let mortgage in Manchester involves considering factors like the type of property, your age, and whether you’re an experienced or first time buyer or landlord. Mortgage lenders primarily assess your affordability, minimum deposit requirements, and current credit score status.
To demonstrate eligibility, you must prove your affordability to the mortgage lender, often based on projected rental income.
This income is the amount expected to cover monthly mortgage payments and additional funds. Some lenders also set a minimum income requirement, usually around £25,000, although this varies.
At Manchestermoneyman, our experienced mortgage advisors in Manchester assist in finding the most suitable mortgage lender and deal for your buy to let plans.
A standard practice for buy to let mortgages in Manchester involves placing a deposit, typically 20-25% of the property value. A higher deposit reduces the risk for the lender, potentially offering access to better interest rates. High-risk purchases, like those with bad credit, might require an even higher deposit.
Even with a low credit score or a history of bad loans, you might still be eligible for a buy to let mortgage in Manchester, albeit with limited lender options. Some lenders consider factors like the severity and reasons behind your bad credit, possibly requiring a larger deposit.
Before applying for a buy to let mortgage in Manchester, find a suitable property, then schedule a free mortgage appointment with an expert buy to let mortgage advisor. They confirm eligibility, identify the best deal, and provide an agreement in principle, allowing you to make an offer on the chosen property.
Most buy to let mortgages in Manchester are interest-only, meaning you pay only interest monthly, reducing your monthly outgoings. The capital balance is typically settled by selling the property, remortgaging to a repayment mortgage, or setting up a repayment vehicle.
While interest-only mortgages are tax-efficient and popular for buy to let properties, you can also opt for repayment mortgages, paying both capital and interest monthly, leading to growing equity in your property.
Mortgage lenders stress-test your projected rental income, ensuring it exceeds your monthly payments by a certain amount. This safeguards against potential financial strains and is a crucial aspect of the buy to let mortgage process.
When applying for a buy to let mortgage in Manchester, provide necessary documents, including proof of income, deposit, ID, address, bonuses, commissions, and P60. Self-employed applicants might need to provide SA302 tax returns, and existing landlords may need proof of rental income.
Buy to let mortgages involve various costs, including a deposit, mortgage arrangement fees, application and broker fees, monthly mortgage payments, valuation, product, and mortgage exit fees. Other potential costs include solicitors’ fees, stamp duty, and landlord insurance.
Manchestermoneyman can offer accurate advice on potential stamp duty rates. Early repayment fees (ERC) may apply if you decide to exit your buy to let mortgage early.
Remortgaging a buy to let property in Manchester is common among landlords looking to release equity for further property purchases. Equity works differently for interest-only mortgages, with the balance and interest decreasing separately.
To pay the capital balance, remortgaging to a repayment mortgage is an option, increasing monthly payments but allowing simultaneous payment of capital and interest.
While options may be limited, it’s possible for first time buyers in Manchester to get a buy to let mortgage. However, a higher deposit is usually required, and benefits like stamp duty exemptions for first time buyers may not apply.
Keep in mind that becoming a landlord can boost income before securing a residential mortgage for personal residence. Mortgage lenders will consider your second purchase, potentially affecting future affordability or borrowing limits.
Whether you’re new to the world of mortgages or you currently own a property and have some past mortgage experience, you will have either heard of a “mortgage broker” or will have no clue what they are or what they do.
Using a mortgage broker in Manchester when moving home can not only make your job easier but can take all of the stress out of the process.
Here we will discuss the main differences between using a mortgage broker and your bank.
If you opt for your bank when looking for a mortgage, you will not have to pay a broker fee, which will save you money.
However, banks can only access their in-house mortgage products, whereas, a mortgage broker can search through various different types of lenders in order to find the best product for you. For example, as a mortgage broker in Manchester, we have access to a variety of different lenders that hold both high street and specialist deals. We can search through these lenders to try and find you a competitive mortgage product.
During your free mortgage appointment with us, we will perform a free affordability assessment on you to work out what sort of deals will be accessible to you.
Most high street banks are renowned for making you wait weeks to get an appointment with a mortgage advisor. This can be extremely inconvenient if you have just had an offer accepted on a property.
A mortgage broker in Manchester, like ourselves, offers flexible availability and allows you to book a mortgage appointment at a time that suits you. Sometimes, we even have same-day availability!
If you approach a high street bank and your mortgage application is declined, the chances are that most other high street banks will do the same.
There are many different reasons why a bank could decline your mortgage application, sometimes you are never told why. If it has something to do with your credit, if you apply to another bank and are declined, you could put more harm on your credit.
As mentioned earlier, mortgage brokers can access a large variety of mortgage lenders, including those from specialist lenders. If you have been declined by your bank, the best thing to do is to approach a mortgage broker in Manchester like us and we can explore options that are better suited to your personal and financial situation.
If your credit is the issue and you need help improving your credit score and getting your finances back on track, our mortgage advisors in Manchester can run through this with you.
Banks and brokers have a pretty similar turnaround time when it comes to getting you an agreement in principle (AIP). Our mortgage advisors in Manchester can usually secure you an AIP within 24 hours of your free mortgage appointment.
If your AIP expires, simply get back in touch with our team and we can renew it straight away for you.
Similar to their mortgage appointment availability, banks will never be available there and then for you to ask a quick question or give you an update on the progress of your mortgage application. Drop your mortgage advisor in Manchester a message whenever you want to speak to them and they will be back in touch right away. We know that the mortgage process is a stressful time, and we want to put you at ease.
As a mortgage broker in Manchester, our job is to help you through the entirety of your mortgage journey. No matter your situation, whether you’re a first time buyer in Manchester or a buy to let landlord in Manchester, we are here to offer our help.
Our responsive service is at the heart of our business. You can book your free mortgage appointment or arrange a call back online! This allows you to be in control of your mortgage appointment and schedule it around your busy working and personal schedule.
If you would prefer to, give our team at Manchestermoneyman a call and we can put you in touch with one of our expert mortgage advisors in Manchester.
Buying a property will likely be the biggest financial commitment of your life, therefore, it’s understandable that you have lots of questions regarding the mortgage process. As a mortgage broker in Manchester, we’ve had the pleasure of helping many different types of buyers; no matter what the applicant’s situation is, we are always asked “how long does mortgage approval take?”.
If you are a first time buyer in Manchester, and you have questions like this, you must get the necessary mortgage advice and speak with an expert. Not every question will have a straightforward answer, however. Most of the time, especially with questions like these, it will depend on the individual’s personal and financial situation.
If you have no problems with your credit you could find that it takes 2-3 weeks to receive mortgage approval. This timeframe is just an example, it could take longer or less time than this.
Mortgage approvals can take time if you have current or past issues with credit. The mortgage lender will need to search thoroughly through your credit file to determine whether or not you are a reliable applicant who can afford to take out a mortgage. If you have bad credit or past credit issues, the mortgage approval process can take months.
You need to know that there is no set timeframe for when a mortgage is or is not approved, it depends on the mortgage lender and your personal and financial situation.
Getting approved for a mortgage is not as simple as it used to be! You will never see mortgages being handed out like they were in pre-credit crunch days.
The process is timely and intricate to gain a complete insight into an applicant’s personal and financial situation. Mortgage lenders need to establish the type of applicant that you are. They look at your credit, income (including occupation), your outgoings (via bank statements) to get an idea of who you are and whether you are going to be able to afford a mortgage.
They need to know who they are lending to and whether they can afford a mortgage on the property in Manchester that they are looking at purchasing. This all takes time. Remember that there are also thousands of applicants, not just you!
As a mortgage broker in Manchester, our mortgage process involves stages that build you up to your mortgage application. This process is designed to make your mortgage journey stress-free and easy-going; we’ll take care of the mortgage side of things, and you can focus on finding your dream property in Manchester.
To get your mortgage process started, book your free mortgage appointment with one of our mortgage advisors in Manchester. You can do this by selecting a date and time online or giving our team a call. We have 7 days a week availability, allowing you to book an appointment around a time that suits you.
During your free mortgage appointment, your mortgage advisor in Manchester will take some information from you to get an understanding of what you are looking to achieve along your mortgage journey. This will roughly take 30-45 minutes.
Once you have completed your mortgage appointment, your mortgage advisor in Manchester will send you a mortgage agreement in principle (AIP). This document is a “must-have” when it comes to making an offer on a property. You will need one in order to prove to the estate agency that you have been pre-approved by a mortgage lender. At this point in the process, you should begin searching for a property you want to buy, if you have already found your dream property, we can move on to the next step right away!
Once you have had an offer accepted on the property, we will be able to pair this with the perfect mortgage deal. We have a large variety of mortgage lenders on panel, allowing us to access high street and specialist products. The product that your mortgage advisor in Manchester finds will be presented in a mortgage illustration document, outlining everything about the deal that you need to know.
If you are happy to proceed with our service and the mortgage product we have found you, it is time to prepare your mortgage application.
When preparing your mortgage application, you will need to attach several documents to evidence your affordability for a mortgage. We will help you gather all of these documents and make sure that your application has everything it needs. Once you are ready, we can send off your mortgage application to the mortgage lender.
As soon as we send off your mortgage application, everything is now in the mortgage lender’s hands. Just so you know, we will never put you forward for a mortgage product that you will be declined for!
They will look at the documents that you have attached to your mortgage application to verify your mortgage affordability. They will also check your ID and current registered address to make sure that you are who you say that you are, as well as looking at where your deposit has been sourced from.
If you received a gifted deposit they will need to see the last 3 months’ bank statements from the donor and have a gifted deposit form signed.
Not to be confused with a house survey, a mortgage valuation survey is where the lender sends out a property surveyor to determine the true value of the property that you are looking at purchasing. There are different types of property surveys in Manchester, with each one suited to different types of properties. Your mortgage advisor in Manchester will advise accordingly on which type of survey is recommended.
The reason the mortgage lender will want a survey taken out on a property is to determine the true value of the property. If your offer to the seller was above the actual value of the property, you may find that a mortgage lender will not allow you to borrow the amount you are asking for.
Essentially, they aim to ensure that, in case of repossession, they will be able to make their money back by selling your home. Rest assured, as long as you consistently meet your monthly repayments, there’s no need to worry about losing your home.
After the mortgage lender has carried out their checks, if all has gone well, you should receive your formal mortgage approval back. Your mortgage advisor in Manchester will be in touch straight away to give you the good news!
From here, we will hand you over to the solicitors for you to exchange contracts and complete the rest of the legalities. Once this is done, you’re ready to go and collect your keys!
Whether you are a first time buyer in Manchester, looking at moving home, remortgaging or wanting to invest in a buy to let property, it is important that you are aware of the mortgage process and what is expected and needed throughout.
As a mortgage broker in Manchester, we would always recommend starting your mortgage process up to 6 months in advance. This way, you can get your agreement in principle arranged and begin looking for properties within your budget nice and early. For example, if you were looking at moving home in January, starting your process in the Summer would benefit you more and tie in with your plans.
If you have had an offer accepted or are looking at buying a property in Manchester, now is the time to start your mortgage journey – act now! Book your free mortgage appointment online or by giving our team a call today.
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Manchestermoneyman.com & Manchestermoneyman 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, Manchester, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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Manchestermoneyman.com & Manchestermoneyman 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, Manchester, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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