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Can I Have Two Mortgages in Manchester?

Mortgage Advice in Manchester

Depending on the situation, a second mortgage is a possible option for you to take up. Here Malcolm has compiled a video to talk to you about the significance of taking out a second mortgage in Manchester.

Can I Have a Second Mortgage? | MoneymanTV

Why would you take out a second mortgage in Manchester?

There are many situations that require a person to have more than one mortgage. We created a list based on a few popular situations our mortgage advisors in Manchester have encountered, as to why two mortgages may be important:

1) Do you want a second mortgage to raise money for your existing home
2) Are you looking to rent out your existing home and purchase a new one
3) Your name on an existing mortgage and you are looking to buy a new property?
4) Are you looking to help your children out with a second mortgage?
5) Do you require a second mortgage to purchase a buy to let property

We have in-depth knowledge of Buy to Let mortgage criteria and worked with many lenders including some specialist ones, all with various lending criteria, for more information check out our Buy to Let Mortgage Advice in Manchester page.

Second Mortgage to Raise Money

If you have equity in your home and are looking for a second mortgage to release some of this to fund a purchase or anything else, then our team of expert mortgage advisors in Manchester can help.  A second mortgage for this purpose is also referred to as a secured loan.

Quite often if you are on a lenders standard variable rate, we are able to shop around and find a more competitive deal at the same time as releasing capital. A further advance with your current Lender is also an option.

Second mortgage to rent out existing home to purchase a new one

Whether you are looking to move to a new house but keep hold of your existing property with the view to let it out we will be able to help. Your second mortgage will be a new residential one. This kind of move is known as a let to buy and has become increasingly popular in recent years.

Second mortgage to purchase a home for your children

If you are exploring the options that are available to you, for helping your children or grandchildren with getting on the property ladder there are now many products that our mortgage advisors in Manchester can run through to help you get a step nearer to accomplish this.

Second mortgage for a Buy to Let in Manchester

If you are looking to purchase a buy to let our team are able to utilise our experience and knowledge to recommend the most suitable Buy to Let mortgage product based on your individual situation. You will be asked to produce a higher deposit for this than a residential mortgage.

Named on an existing mortgage and want to buy a new home

Are you currently named on another mortgage and would like to purchase a new property to live in? This is a situation that our team comes across on a regular basis especially due to divorce or separation and can often help.

Whatever your situation is to get a second mortgage, being an experienced Mortgage Broker in Manchester our Advisors are able to search thousands of mortgage deals on your behalf and recommend the most suitable product for you based on your individual situation.

For more information contact us to book your free mortgage consultation, and speak with one of our expert mortgage advisors in Manchester today.

Specialist Mortgage Advisor in Manchester

Do I need a Mortgage Advisor in Manchester?

No matter, if you are a First Time Buyer in Manchester or looking to Remortgage in Manchester. Getting mortgage advice in Manchester can help you. Taking mortgage advice can make up the difference between an application getting accepted.

Whereas going independent could lead to your application getting rejected. We’ll search through thousands of mortgage deals for you. Saving you time and your money to ensure you get the best deal.  

What do a mortgage advisor and mortgage broker do?

It’s a mortgage advisors job to find you the most suitable mortgage deal tailored for your circumstances. Some say that there’s no significant difference between an advisor and a broker.

However, here at Manchestermoneyman. We can tell you our team of specialist mortgage advisors in Manchester is authorised and regulated by the Financial Conduct Authority.

This means we have experience and in-depth knowledge of lending criteria. Offering expert advice to clients with all types of individual situations.

Why do people get mortgage advice?

Maybe you are first-time buyers who want to get there foot onto the property ladder, and the process can be confusing.

However that’s where we come in our teams of mortgage advisors can walk you through every step, from initial mortgage enquiries. Right until you get the keys.

Perhaps you need mortgage advice because you are looking to remortgage for home improvements, purchasing your next property. Especially if you want to borrow additional money.

Finally, our team of specialist mortgage advisors in Manchester. Can help find suitable mortgages for a landlord looking at Buy to Let in Manchester.

Benefits of using a mortgage broker in Manchester

The advantages of using a Mortgage Broker in Manchester. Is to help the entire process of buying a home go as efficiently as possible. Buying a home can be an extremely stressful experience.

Our customers like to know they have got someone on their side. On hand to respond to all their questions and queries, we will also help you with:

  • Provide detailed information about the various mortgages available and the different types of deals.
  • Give you expert mortgage advice on how much you could afford to borrow.
  • Have access to special mortgage deals that are not available on the open market.
  • Help you get ready for your application to increase your chances of success.
  • Try and save you money by searching for a mortgage with lower interest rates and fees.

Our mortgage advisors in Manchester job is to help try to maximise your chance of being accepted the first time.

Opening times

Open & honest Mortgage Advice in Manchester by Manchestermoneyman, 8am – 10 pm, seven days a week. As an experienced Mortgage Advisor in Manchester.

We are proud to have the quality of service we provide to our customers. We put our people at the heart of our business and always aim to exceed their expectations. Get in touch with your Mortgage Broker in Manchester today and receive a free mortgage consultation.

How Will Lockdown 2.0 Affect the Property Market?

Mortgage Advice in Manchester

On Saturday 31st October, the UK Prime Minister Boris Johnson announced that England would enter a second lockdown from Thursday 5th November, through until Wednesday 2nd December. This was done with the intention to decrease the spread of the coronavirus across the country, with additional restrictions in place.

Luckily for some, this lockdown is a little more relaxed than the first lockdown we experienced, allowing more industries and educational settings to remain open. The thing that initially concerned us the most, was what would happen to the property market. Thankfully, now that Lockdown 2.0 is underway, we can say that everything looks promising and the property market will remains open as normal.

Of course, there has been some minor changes to areas of the home buying process, most of them relating to social distancing. The property market is still standing strong though! Here is a look at some of the things you can still do:

  • View a property to buy or rent
  • Visit estate agents, letting agents, sales offices and show homes
  • Prepare a home to move into
  • Prepare a home for sale or rent
  • Move home

Lately we have received lots of mortgage questions from First Time Buyers and Home Movers in Manchester about the current national lockdown and how it affects the property market:

Can I move home in lockdown?

Unlike the start of the last lockdown when the rules were stricter, in this lockdown you are still able to move home if you need to. Home removal services, van hire, everything needed to move home will still be available for people to use.

As mentioned at the start, the process of moving home will have to be completed under the social distancing guidelines. This will be vital to follow if you are either viewing other people’s properties or taking house viewings on a regular basis.

Can I visit my estate agents?

Yes, the government are allowing you to visit your estate agent’s office. However, this is dependent on individual branches, as some estate agents have chosen to work form home and have closed their public office. You may have to check online to see whether they are open or not.

Nowadays a lot of people prefer to transact over the phone, so even if you can’t visit in person, you can rest assured that the staff are fully equipped to get the process started over the phone and even online.

We advise that you take your time if you are going through the process online, and make sure that you fully understand everything that is being communicated.

Can I continue with house viewings?

You can still continue with your house viewings, however, if your estate agent is offering a virtual house viewing, it is probably more recommended to try that. Most home buyers are shifting towards this new way of doing house viewings; as a Mortgage Broker in Manchester, we also expect that the number of virtual viewings will increase over the course of national lockdown.

Even though virtual viewings may be your safest option, we also understand that choosing your dream home is a really big decision for your life going, so if you want to view the property in person, this is understandable. Just remember to be careful!

Your estate agents will also check with the property owners that a property viewing is okay, so long as it is socially distanced property viewing. If they agree, then you can arrange a date and time. Depending on the time of day and the homeowner’s personal situation, they may go out somewhere so that there as few people in the household at one time as possible.

Can I put my property on the market?

The property market hasn’t been put on pause like it was earlier in 2020, so you are still able to go through the home selling process as normal. You will need to consider everything that comes with selling a property, including choosing an estate agent and a property valuation, getting pictures of the property taken and making it presentable for any viewers.

With the guidelines and restrictions in place, there may be some delay in certain areas of the process, though that should not put you off. Estate agents are very busy right now with enquiries and with all of the different measures in place, things that are normally easy to complete are taking a little longer than they would like.

Can I still use conveyancers?

Yes, conveyancing solicitors will remain open as normal. They will still be available to support the sale of your property. Much like estate agents, most solicitors are working from home and we advise that you be patient as due to the demand in the property market, things may not go as quickly as you’d normally hope for.

Can I take out a mortgage payment holiday during this lockdown?

As a dedicated Mortgage Broker in Manchester, this is a question that we have been asked quite a lot during the course of the pandemic. It was particularly asked by lots of homeowners during the first UK lockdown.

In this lockdown, even though it’s much shorter, you can take a mortgage payment holiday if it is really deemed necessary. We understand that there are many homeowners out there that need help meeting their mortgage payments. If this is your situation then taking one out could be a real lifeline for you and your home.

To find out more helpful information about mortgage payment holidays and whether you should take one out, check out our article on mortgage payment holidays.

If you took out a mortgage payment holiday during the first lockdown and are currently still on the scheme, you can extend your holiday further so that it comes to a total of six months holiday. However, if you have already had a six month payment holiday and you have already reached the six month limit and therefore unlikely that you will be able to utilise the scheme again going forward.

Catching up to speed

The property market is slowly catching up to speed and thankfully can continue marching on through this second lockdown. If you are wanting to start the mortgage/home buying process and would like help from someone with experience, it may be within your best interests to get professional Mortgage Advice in Manchester.

With all of the social distancing measures in place and the demand in the market, this could also make things a lot quicker for you. As an experienced Mortgage Broker in Manchester, we have a wealth of knowledge in helping customers achieve their mortgage dreams. We want the whole process to run as smoothly as your do; don’t hesitate to get in touch today and we will get you booked in with a mortgage advisor!

A Guide to Remortgages in Manchester: Top Reasons to Consider

The mortgage journey is truly an adventure to behold. Though you will face your fair share of both highs and lows, in the end you will end up with one of the following: either the property of your dreams to settle down in and maybe start a family, a stepping stone property to help you find your footing on the property ladder or an investment purchase to provide some additional income.

No matter the path you ventured down, there will eventually come a time when your mortgage term is reaching its end. You have the option to sell up and upsize/downsize into a new property. Maybe you are in the market for selling your portfolio to the tenant(s) or another buyer and look at other financial opportunities? The most popular option however, over all of the above, is a Remortgage.

What is a Remortgage?

First, let’s look at the definition. A Remortgage is a process of using the funding from a new mortgage to pay off a pre-existing mortgage. There are lots of different options when taking out a Remortgage, ranging from minor to major.

By taking advantage of the 20 years or so knowledge of our resident “Moneyman” Malcolm Davidson (host of our YouTube channel MoneymanTV), we thought it would be beneficial to everyone, if we put together a quick guide to all the options at your disposal when it comes to taking out a Remortgage.

Remortgage For Better Interest Rates

Your initial mortgage deal will normally last somewhere between 2-5 years and feature low fixed rates or possibly discounted rates. In some cases, your lender may even place you on a tracker mortgage, which follows the Bank of England’s base rate.

When your mortgage term comes to an end you will likely be placed on the lenders Standard Variable Rate (you may see this referred to simply as SVR). The purpose of an SVR, is that it is a mortgage with an interest rate that can possibly move up or down, depending on what the lender wishes to charge you. This does not follow the Bank of England’s base rate like a tracker mortgage and as such can be a little more risky, as the lender is not legally obligated to charge the recommended amount.

Because of this, SVR’s are usually the most expensive paths to take, leaving many to look at Remortgaging for better rates, which will hopefully save a little bit of money on monthly repayments.

Remortgage For Home Improvements

After your 2-5 year term into occupying your home, you may decide that something doesn’t quite fit. Maybe you need an extra room or larger living space for your kids or belongings, a new kitchen, a new office, or a loft conversion. Instead of just moving into a larger house, many seek to release their equity with a Remortgage in order to cover the costs of any work needed or wanted.

Though the idea of having to obtain planning permission and fund/manage your own project seems scary, some would argue it’s a lot less stressful and more rewarding than the process of property hunting, selling your current home and moving your possessions.

As time passes by, this may prove even more to be a wiser option, as creating more space and having good quality craftsmanship will likely increase the value of your home. This comes in handy for if you ever do decide to sell up or rent out.

Remortgage for Changes to Your Term

In some cases, some homeowners may wish to Remortgage in Manchester for a better mortgage term, whether that be by reducing the length or switching to a more flexible product. Doing this will mean you won’t be paying back your mortgage for as long, so you won’t be tied down for the rest of your life. However, this route will also mean that your monthly repayments will be a lot higher. The longer your term, the lower the payments will be over time.

Some opt for their mortgage term to be a little more flexible when they remortgage. The benefits provided by this option can often sway homeowners in its favour. You may gain the ability to overpay, resulting in being able to pay your mortgage off quickly, as well as being able to carry the same mortgage and rates over to another property of your choosing, should you decide to move later down the line.

Though a flexible mortgage sounds like the ideal situation, they usually come in the form of a tracker mortgage, which as discussed in an earlier point, follows the Bank of England base rate. This means your payments could fluctuate based on interest, making them a little unreliable each month.

Equity Release

Everyone has some variance of equity in their property. This is worked out with the difference between what is still owed on the mortgage and the current value of your property. As touched upon earlier in this article, equity can be used for home improvements, however there are more options available with this.

Some use it to cover long-term care costs, to add to their income, to have a holiday, to pay off an interest-only mortgage or to simply have free money to spend on whatever they would like.

In some cases, we find that Buy-to-Let landlords will use Equity Release as a means of covering their deposit for purchasing further additions to their property portfolio.

Remortgage to Consolidate Debt

Another big one people use Equity Release for, is to pay off any unsecured debts that may have built up over a particular length of time.

Though it may seem easy enough, Debt Consolidation not only bases the amount on how much you’re owed and the value of the property, but it also factors in your credit rating. This could mean you are limited in the amount you can borrow for a property.

Additionally, to pay off your previous mortgage and your debts, you will need to borrow more than the mortgage amount you have left. This means your monthly repayments will most likely be higher than expected. Though not a perfect circumstance to find yourself in, at least you can rest assured that should you find yourself in need of a way out, you do have some options to choose from.

Should you find yourself with a damaged credit rating, you do still have a chance to obtain a mortgage, though these will not be easy and require very Specialist Remortgage Advice in Manchester before even proceeding. Even then, there is no guarantee that it can even happen.

You should always seek mortgage advice before choosing to consolidate and secure any debts against your property.

Experienced Mortgage Advisors in Manchester – Get in Touch

If you are reaching the end of your term and are looking at what your option may be for Remortgaging, it will be beneficial for you to Get in Touch with an experienced and trusted mortgage broker in Manchester.

An advisor will be able to discuss your circumstances and future plans, in order to create the best plan of action for you in the next step of your mortgage adventure. It is our aim to ensure this go around is a quicker and easier process than when you took out your initial mortgage.

How to Improve Your Credit Score

Way to improve your credit score | moneymanTV

The general rule of thumb, whether a first-time buyer, home mover, or budding Buy to Let landlord in Manchester, is the higher your score, the more likely you are to get accepted for a mortgage.

It is worth noting that lenders have an internal credit score that gets built on the information held on your credit report as well as information within your application. Every mortgage provider follows their credit scoring policy, so just because one high street bank declines you, it doesn’t necessarily follow that they will all say no.

When it comes to which credit reference agency to use, or which one will the lender use, unfortunately, they do not always divulge this information.

In any case, sometimes lenders chop and change between Experian, Equifax, and Call Credit. It is good practice when looking to obtain a mortgage to check multiple credit reference agencies. The reason for this is that information on one agency’s file may differ from that on another.

Top Tips to Improve your Credit Rating:

Stop Unnecessary Credit Searches

Until you have registered with one of the credit reference agencies to check your score, the first thing you need to do is stop applying for new items of credit. Be careful, something as simple as comparing car insurance on a price comparison website can register unwanted credit searches.

Are You on The Voters Roll?

Lenders will use the electoral roll to carry out identity checks, so this is a crucial step. Ensure that your names spelled correctly and you get registered at your current address, your credit file will show if you are registered or not, you can also check with your council.

Active Credit

Mortgage Lenders like to see some “active credit” so having a credit card that you use regularly and pay it off in full each month can help over time. However, bear in mind that taking out new credit could have a short-term negative impact. Don’t miss payments!

Don’t Run Close To Your Maximum Limit

Regularly running close to your limit on your credit card or going over the limit will harm your score. Using too much of your available credit will hurt your credit score.

Check Your Address History Gets Keyed Correctly

It is essential that you do not appear to be living in two places at once. In any case, this can happen when you incorrectly enter your dates in and dates out of previous addresses.

It’s worth spending some time double-checking the dates and making sure the formats of the addresses are consistent. However, this is tricky when you have lived in a flat/apartment.

Close Any Unused Credit Accounts

If you have any credit or store cards that you are not using you should cancel these. Please note again that this could have a short-term negative impact on your score.

The systems can’t tell whether it is you or the lender taking this action, but it helps in the long run. Also reduces the chances you’ll fall victim to fraud if they were ever to get stolen.

Check Your Account Addresses Are Correct

Ensure that all of your open accounts get registered at your current address and not a previous one.

Remove Any Previous Financial Links

Your ex-partners could affect yours if you hold joint accounts, a mortgage, or a loan. It is vital to inform the credit reference agencies that you are no longer associated and remove any links.

Love it or hate it credit scoring is here to stay. Also, it will have a significant bearing on whether you will qualify for the mortgage you need. It’s quicker and more consistent for lenders to rely on their systems than their human resources.

Having an up to date copy of your credit report to provide to your mortgage broker will help build up a full picture of your financial situation and help them recommend the most suitable mortgage for your circumstances.

Mortgage Advice in Manchester

How to Buy a Home in Manchester With a 5% Deposit | Mortgage Market Update 02/10/20

https://www.youtube.com/watch?v=3rFiFn9qMDA
Update: How to Purchase a Property with a 5% Deposit! Help to Buy Equity Loan & Shared Ownership | MoneymanTV

The effects of the coronavirus have heavily hit the mortgage market and it’s still recovering. The whole economy has been affected; The impact has impacted everyone differently in some way or another.

At the moment, lenders are only offering 90% mortgages (10% deposit), which can prove quite expensive, particularly to First Time Buyers looking to purchase a property in Manchester.

There are ways, to get onto the property ladder with a 5% deposit. With our help, we thought that it would be within your best interests to explain to you how this can get achieved using the Help to Buy Equity Loan or the Shared Ownership scheme:

Help to Buy Equity Loan

With the Help to Buy Equity Loan, you can put down a deposit of 5% or more, and then the government will top up this percentage so that you have a total of a 25% deposit.

Whatever percentage that they loan you is the Equity Loan, which will also need to get paid off along with your mortgage. During the first 5 years of living in your house, this loan will be interest-free, however, if you don’t manage to pay it off within these five years, you will start receiving interest on it starting at 1.75%.

As you can see, it’s still possible to obtain a mortgage with a 5% deposit through the Help to Buy Equity Loan scheme. To qualify for the Help to Buy Equity Loan scheme, you need to know that:

  • You can only be buying a newly built property.
  • The maximum purchase price is £600,000.
  • You can only own this property.

You have to be buying the property for purely residential use only and not as a Buy to Let.

Do you fit the requirements?

If you think that the Help to Buy Equity Loan scheme is right for you? Then now would be the perfect time for you to start your Help to Buy mortgage journey. You have two options one is doing everything on your own, the other being approaching a Mortgage Broker in Manchester.

Getting Help to Buy Mortgage Advice in Manchester could take all of the stress that comes with mortgages off your back. An Advisor will walk you through the whole process and tell you precisely what is going on every step of the way.

Shared Ownership

The Shared Ownership scheme can also benefit you get onto the property ladder with a 5% deposit. This scheme lets you purchase a percentage of your mortgage and then pay the rest on rent.

Additionally, this percentage usually is anywhere between 25%-75%. As you only own part of the property, you share the property with the government.

Like the Help to Buy Equity Loan scheme, you have to qualify for the Shared Ownership scheme and meet specific requirements. Here we listed the rules that you will need to adhere to qualify:

  • You can’t have a household income of more than £80,000 per year
  • Can only access if you can’t get a mortgage any other way
  • You need a good credit history
  • You can only own this property

If you are struggling to obtain a standard mortgage, the Shared Ownership Scheme could be your best option. If you want Shared Ownership Mortgage Advice in Manchester, you should approach a Mortgage Broker.

They will tell you everything about the scheme and see if you qualify for it. Talking to a Mortgage Broker in Manchester could say to you exactly what you need.

Summary

Even though your options may be limited when trying to get a mortgage with a 5% deposit, these two schemes could be great options to consider. Both methods are still holding their weight in the mortgage market.

Whether it’s the Help to Buy Equity Loan scheme or the Shared Ownership scheme, we can help with both.

Firstly we will check if you qualify for a scheme and whether it will suit your personal and financial circumstances or not. If everything looks good, we can get your mortgage journey started.

Getting Mortgage Advice in Manchester could be within your best interests, especially in this day and age.

The mortgage market is up in the air at the moment, so getting advice will be extremely beneficial, especially if you are a First Time Buyer in Manchester. Feel free to get in touch so we can discuss your mortgage options.

Should I Transfer My Buy-to-Let (BTL) Property to my Limited Company?

Buy to Let Mortgage Advice in Manchester

When Buy to Let customers with an existing property portfolio in Manchester get in touch, we often hear the following question: Am I able to exchange ownership of my property from my own name, into the name of my limited company?

Buying as an SPV

A good starting point is to know how a mortgage lender will approach purchases from Limited Companies. You will be hard pressed to find any lenders that will accept applications from a Limited Company through anything other than an SPV (Special Purpose Vehicle) Company.

An example of this is a company set up with the sole intention of investing in properties like this. When registering your company, your registration will include a SIC (Standard Industrial Classification) Code that shows the types of business in which the company will be involved with. Mortgage lenders normally would not accept applications from general trading companies that can trade in multiple areas.

If, for example, you have a plumbing and heating company (covering both trades), you will need to set up an entirely new company to own the properties in your Buy-to-Let portfolio, rather than buy them through your plumbing company. The SIC codes typically accepted are 68100, 68201, 68209, 68320, though this is varied depending on the lender you go with.

To find out more information about SIC Codes, consult the Government website: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/527619/SIC07_CH_condensed_list_en.csv/preview

Pros and Cons

You will find yourself with both advantages and disadvantages to purchasing a Buy-to-Let in Manchester under a Limited Company. For example, applications from SPV’s may not be considered by all lenders. Instead, they would rather limit their lending to lone applicants or couples who are applying in their own personal name(s) as opposed to a company name. Because of this, applicants using their own personal name will find themselves with a wider range of products than those using SPV’s.

When it comes to the lenders who would lend to an SPV, the mortgage rates are also generally much higher than the rates offered to individual applicants. An upside however, is that the way rental income is taxed has been changed over the past few years, meaning that many people prefer to make use of the advantages generated by SPV ownership (relating to how income is taken and how that income is taxed), as they more than make up for any extra interest charges or lack of choice when it comes to products.

One of the primary things we always suggest our customers look at when evaluating their options of buying your portfolio under an SPV, is that you speak with a specialist tax advisor for professional advice. A tax advisor will be able to assess factors such as external income sources and the rate of personal income tax you pay, seeing how they will affect the overall status of your tax. This will help decide whether or not individual or SPV ownership is an option you should go with.

Should I transfer properties that I already own to an SPV?

As mentioned previously, a main deciding factor in your decision will be the position of your tax. This becomes a little more complicated when you start to weigh in whether or not you want to transfer properties you already own from individual ownership, to company ownership.

The issue is that it isn’t just a simple, straight-forward transfer. This type of transaction is a change of legal ownership. Your Limited Company is in it’s own right, a completely separate corporate identity. As such, the transaction will be counted as a purchase from you as the individual, to the SPV. With this in mind, stamp duty charges, legal costs and new mortgage and valuation charges will all be in play once again.

You must remember that Limited Companies come with running expenses and legal obligation, however, these may be offset by the possibility of tax-deductible costs or long-term tax benefits.

If a buy-to-let landlord is looking to increase their property portfolio, it would probably benefit them more to keep the current property under their individual name and only use the SPV to buy any additional properties. By doing this, you avoid any switching costs and unwanted legal fees for something that is already yours. That being said, each case is different, and you may find that the upside of a switch is far more beneficial than any of the downsides that come with it. It’s all depending on individual circumstance.

As covered, this is very specific territory. If you are thinking of following this path, please get in touch with an experienced and knowledgeable Buy-to-Let Mortgage Broker in Manchester.

Here at Manchestermoneyman, we have many Buy-to-Let experts on hand to provide a high standard of mortgage advice in Manchester, backed up by introductions to appropriately experienced accountants and solicitors as and when necessary.

To speak with a Mortgage Advisor in Manchester, please Get in Touch and we will see what we can do for you.

Why Should I Use a Mortgage Broker in Manchester?

It is a no brainer why we think when going with a Mortgage Broker is beneficial and speaking to one of our Mortgage Advisors in Manchester, then going straight to a Mortgage Lender—saying that it’s still worth exploring your options. We find that most people use a Mortgage Broker in Manchester; however, in this article, we will explain the pros and cons of both paths.

A Mortgage Broker like us will likely charge a broker fee on top of the other costs, whereas the Mortgage Lenders do not require this payment, thus saving you money on that front.

The Lender offers exclusive direct deals. They do this to attract business from both consumers and brokers alike. In any case, these deals are sometimes available only via the Mortgage Broker and not the branch. Before 2014, your Mortgage Lender would be allowed to let any member of staff sway you towards a potential mortgage without any proper mortgage advice or consumer protection.

By 2014 this was thankfully banned, with only experienced Mortgage Advisors in Manchester allowed to provide Mortgage Advice and make recommendations for their products. However, this, of course, took some adjusting and customers could be left waiting for a month or maybe more, just for an initial appointment.

We still see today that sometimes this can always happen, which isn’t great when you’ve just had an offer accepted for a property. Because of issues like this, applications via Mortgage Brokers started to rise. We offer a same day service, aiming to put you through to a qualified Mortgage Advisor in Manchester either immediately or at the most within the same day.

Mortgage Advice in Manchester

Before the 2010s, it was much more challenging to compare possible mortgage deals. Fast forward to the present day and looking for such deals is significantly more comfortable, with everything just a Google search away. The difficulty now lies in finding a lender whose criteria and features can be personalised, based on your circumstances. It would help if you were wary though, that the deals with the lowest rates tend to carry high arrangement fees.

Another point to take note of its affordability. No matter how good a Lenders deal is, you must be able to afford it. Because this is such a big deal, many people choose to go with a Mortgage Broker in Manchester as we’ll compare the criteria and find something that matches you and your circumstances.

These days, thanks to tightened regulations post Credit Crunch, mortgage applications are no longer straightforward. There are a variety of things that could potentially be a hindrance when you are making your application. These can include:

  • I have a poor credit history.
  • I am receiving self-employed income.
  • I am using a mixed deposit source, i.e. Gifted & Savings.
  • Opting for Let to Buy. Renting your current home to buy another.
  • Being a contractor or working under a zero-hours contract.
  • I am struggling on the affordability front.

Lender vs Broker | Mortgage Advisor in Manchester

Over the years, Mortgage Lenders would show their competitive side, often trying to offer better deals than the next Lender. Nowadays, because of tightened margins, their differences come from their lending criteria.

Examples of these include the amount some would lend to the self-employed compared to others, as well as being slightly more lenient to previous adverse recordings on your credit report.

Whatever the situation, it is unique to you. When you explain this to an experienced Mortgage Broker in Manchester, they will likely have encountered something similar before. Hopefully, they’ll use this experience to recommend the most appropriate mortgage for you, at the lowest rate available to you.

Why a Mortgage Broker in Manchester will benefit You

Our service goes beyond just the mortgage too. Customers will rely on Mortgage Advisors in Manchester for more, even if the application is straightforward. They can discuss how much they’re planning to offer on a property, recommend services such as solicitors and property surveys, and go through any available protection.

Another significant aspect of the service a Mortgage Broker in Manchester provides is the ability to be more responsive than the lenders’ direct propositions. Out of hours and weekend, appointments are common-place, as are our Mortgage Advisors in Manchester working late on an evening to respond to customers’ emails.

An often-overlooked factor of why most applicants prefer a mortgage broker is that everyone seems to be busy, and you might need someone to handle the full transaction and take away your stress. Professional applicants will see the benefits of this as they have clients of their own that they’re able to charge their services.

Maybe in the future, lenders will want to take back more clients from brokers. If this happens, it’s relatively unlikely they’ll staff-up their branch networks. They will likely make investments in technology to transact with customers online.

For clients who want to do business that way, with say a straightforward product switch, it’s great. Generally, whether they are First Time Buyers in ManchesterSelf Employed in Manchester, or looking to Remortgage in Manchester, people enjoy having the “human touch” when it comes to the mortgage process.

Mortgage Advice in Manchester | Mortgage Advisor in Manchester

Need a Mortgage Agreement in Principle in Manchester?

What is an Agreement in Principle? | MoneymanTV

An Agreement in Principle (AIP) is where you pass a Lender credit score to qualify for a potential mortgage. Sometimes you may also hear it being called a Decision in Principle.

With an Agreement in Principle in hand, you are ready to support any offers you make as a First-Time Buyer in Manchester. You may be able to negotiate a lower price if you have one of these as it shows the seller you are serious and have the funds to proceed. 

Will obtaining an Agreement in Principle affect Credit Score? 

Nowadays we see more lenders using soft searches than not, however some may still affect your credit score. This can be the case if it is a hard search, but usually a soft search should leave your credit score unaffected.

Soft searches don’t dig as deeply as hard searches, though you can trust that the lender made the correct choice either way.

Should I avoid hard credit checks? 

If it is once every blue moon, then a hard search or two should not make too much difference. The problems arise if you start having multiple hard searches within a small window of time.

That being said, if your credit rating is good and you know it, do not let this put you off, especially if taking a hard search with that lender is the best deal.

Is an Agreement in Principle a guarantee that I will get the Mortgage? 

Though it would be nice, there are no guarantees that having an Agreement in Principle will get you a mortgage. The Lender will still need to see all your documents and only then will an Underwriter make the final decision.

Often we find that customers get in touch having been declined at application stage, due to missing some small print in their Agreement in Principle. You will need to provide ID to prove that you are genuine, payslips to prove you earn the amount you claimed and bank statements to prove you conduct your finances, before a lender will offer your case.

Can I make an offer without an Agreement in Principle? 

Though it is possible to make an offer without an Agreement in Principle, we would not recommend it. An Estate Agent with credibility will want you to prove you can in fact proceed.

How Long Does it take to get an Agreement in Principle? 

It is possible to obtain an Agreement in Principle within 24 hours of speaking with a Mortgage Advisor in Manchester.

How Long Does an Agreement in Principle Last For?

Usually an Agreement in Principle will expire after 30-90 days. You do not need to worry though as this does not mean you should just apply for the first house you find. If your Agreement in Principle expires, you can quite easily have it refreshed when you are ready to make an offer.

Finding a mortgage only to be declined a mortgage can understandably be disappointing. As such, we recommend getting an Agreement in Principle as early as possible.

Stamp Duty Cut – Government’s Summer Statement 2020

Mortgage Advice in Manchester

The government are doing their best to get the property market going again. It’s been a rough few months, however, things are starting to pick up again. This recent government announcement should let things catch back up to speed.

As you may have heard, the government have announced that a stamp duty holiday will run until 31st March 2021. This will hopefully help get the economy back on its feet.

Stamp duty tax tends to be a common barrier that stops peoples from continuing through the home buying process. The government have introduced this move hoping that it will give buyers the confidence that they need. The housing market is a key part of the UK’s economy and it needs to resume back to how it was as fast as it can.

The government says the temporary move will mean 9/10 people buying a home during the exemption period won’t need to pay any stamp duty at all.

The changes have been taken into effect immediately, here how it might affect you:

First Time Buyers

Most First Time Buyers don’t pay stamp duty anyway as they are already exempt up to £300,000. This holiday applies to properties up to £500,000 though, so if you are a First Time Buyer in Manchester buying at that maximum figure then you would save £10,000 in stamp duty.

Home Movers in Manchester

If you are Moving House in Manchester you are likely to be the biggest winner here. If you are moving and your purchase completes before March 31st 2020 then you will not pay Stamp Duty at all as long as the purchase price is <£500,000. The government predicts that the average stamp duty bill will fall by £4,500, but for properties priced at £500,000 the saving will be £15,000.

Buy to Let investors/additional homes

The stamp duty surcharge still applies (this was brought in to curb the number of investors buying homes that traditionally would have been bought up by First Time Buyers), but you will still be better off than before.

Under the old system, if you bought an investment property for £250,000, you’d have paid 3% on the first £125,000 and 5% on the second £125,000, resulting in a stamp duty bill of £10,000. During the holiday you will only pay 3% stamp duty on the whole purchase price, meaning a bill of £7,500.

Malcolm was on BBC Radio on 09/07/2020 to talk about the stamp duty statement and what he thinks of it, here is what he had to say:

Mortgage Broker in Manchester

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