What Does a Mortgage Broker in Manchester Do?

Why use a mortgage broker in Manchester?

If you are looking to try and save both your time and money, reduce your stress levels and worry less about the process, there is a lot of upside to taking on the help of an expert mortgage broker in Manchester.

As professionals with a lot of experience, we have access to thousands of deals, able to pick and choose one that is best suited for your particular situation. Going directly to the bank, on the other hand, see’s you with access to only one lender’s mortgage deals, as opposed to a look at multiple.

Appointments That Work With Your Busy Day-to-Day Life

Our team are available to get you booked in for an appointment, 7 days a week, from early until late, working around your busy schedule.

You are also able to utilise our website’s booking form, to select a video or telephone consultation with a mortgage advisor in Manchester, at a time that is convenient to you.

Before Your Application

In order to progress with a mortgage as a first time buyer in Manchester, you will first need to look at having an appointment to speak with a mortgage advisor in Manchester.

Throughout the duration of this meeting, you will be providing them with additional information that will serve to help them better understand your circumstances and your plans. Following on from this, they will then take a look at a wide variety of mortgage deals in order to find the right one for you.

First time buyers in Manchester and people moving home in Manchester that are happy to proceed with the recommendation of their mortgage advisor, will benefit from receiving an agreement in principle (AIP). We look to get this for our customers, within 24 hours of their initial appointment.

This is a useful document to have, as estate agents will ask for this when you are making an offer on a property. It showcases that you are committed to the purchase and that you are in fact financially able to proceed with your purchase, having a mortgage lender on standby willing to lend.

We are able to support and guide you with your offer process, help with property surveys and also make any insurance recommendations (that are completely optional) that could act as a safety net to protect your family and your home from unforeseen circumstances.

You will also need to provide your mortgage advisor with appropriate documentation to go along with your mortgage application, with these varying depending on what it is you’re trying to do and who you will be working with. This is something we’ll also help you with as a mortgage broker in Manchester.

During Your Application

Once your documents have ben received, as a mortgage broker in Manchester, we will verify those documents and provide you with a mortgage illustration that will outline the deal that you have agreed to, with the mortgage lender we recommended. This is done just before we submit your application.

Your application is then submitted, following your approval of our recommendation, with your mortgage advisor in Manchester sending copies of your documents to the mortgage lender. We will keep in regular contact with you, to ensure you are kept up-to-date with the progression of your application.

We’ll be straight back in touch with you once the mortgage lender has made a decision on your application. If it is successful, this is where you will receive a formal mortgage offer. From here, it’s all up to your solicitor to complete the deal and allow you to move into your new home.

Our Mortgage Advice in Manchester Service

As a mortgage broker in Manchester, we always like to make sure that your best interests are at the hear of everything that we do. If we can save you time, save you money and save you stress, we will do so. We want to help put you in the best financial position you can be in.

Our customer reviews are a genuine look at the long lasting relationships we build with those who get in touch with us, showing the positive impact that owning a home, by way of our mortgage advice service, has had on them as individuals.

What is a Shared Ownership Mortgage in Manchester?

The Shared Ownership Scheme is a government-initiated mortgage program in the UK, aiming to aid individuals in stepping onto the property ladder. It’s accessible to permanent UK residents who fall into the category of either first time buyers or previous homeowners struggling to acquire a new property.

Furthermore, your household income must not exceed £80,000, and the property you intend to purchase will predominantly be on a leasehold basis. Leasehold signifies that you’ll possess the property for a predetermined duration.

Through Shared Ownership in Manchester, you can secure your home through a combination of a mortgage and rental payments. The total of your rental payments will usually be lower than your mortgage payments.

What percentage of the property in Manchester can I borrow?

When Shared Ownership was first introduced, the minimum share that you could own was 25%, whereas now, this has been brought down to 10% for some properties.

There is an option for homeowners to increase the percentage share that they own their home. This is called staircasing. This is usually done at the point of remortgage or when the homeowners have paid off the mortgage on the share that they own.

If you decide that you want to increase your shares, you can now purchase them in 1% instalments. This used to be in 5-10% increments.

Moreover, the charges increasing your extra shares have been lowered. Additionally, your landlord will cover the maintenance and repair expenses for the first decade of ownership.

The rules that apply to you and your Shared Ownership in Manchester may change depending on when you originally took out the mortgage. As a mortgage broker in Manchester, we recommend double-checking what you can and can’t do in relation to the new rules of Shared Ownership. Drop our mortgage advisors in Manchester a message if you are unsure about how your property is affected.

How do I apply for a Shared Ownership mortgage in Manchester?

To access the Shared Ownership scheme in Manchester, you must first qualify for the scheme. The scheme is not for everyone, so it is worth checking that it is right for you before applying for it.

To check whether you are eligible for the Shared Ownership scheme in Manchester, you’ll first need to get in touch with your local Help to Buy agent in the area you are looking to purchase in.

You will need to give them information such as your income, budget, preference of where you would like to live in the area and your credit history. Once you have confirmed your eligibility, the next step is to begin preparing your mortgage application.

Using a mortgage broker in Manchester like us is your best bet from here. Not every mortgage lender will be able to offer their help with Shared Ownership mortgages, yet a mortgage broker has access to thousands of deals through various lenders.

Pros & Cons of Shared Ownership in Manchester

There are pros and cons to Shared Ownership in Manchester, just like every Help to Buy scheme out there.

Pros of Shared Ownership

Saving for a mortgage deposit is often a worry among first time buyers, the Shared Ownership scheme usually only requires you to put down a deposit on the percentage of the property that you own. For example, if you are taking a mortgage out on 20% of a property valued at £200,000 (£40,000 mortgage) and you are required to put down a 10% deposit, you will only need to put down £4,000 deposit.

Numerous mortgage lenders, including those on our panel, provide Shared Ownership mortgage products. The scheme has become more popular over the last few years and first time buyers are opting for this scheme to help them get onto the property ladder. Moreover, Shared Ownership Mortgages can provide enduring stability as you become both an owner and occupant simultaneously.

You may get the chance to purchase your property in the future if that is something you are looking to achieve. If you want to eventually own the property, before taking out a Shared Ownership mortgage in Manchester, you should make sure that this is an option for you in the future because some building societies do not allow this. Whether you can purchase the property in the future or not will be in your contract.

You’ll enjoy secure tenure, unlike the uncertainty of the private market. As long as you can maintain your monthly mortgage payments, you can continue residing in your home for the duration of your lease, usually spanning from 99 to 125 years.

Cons of Shared Ownership

While there are many advantages to Shared Ownership, you also need to be aware of the cons. It’s important to note that you’ll be responsible for 100% of the ground rent and service charges for your property, regardless of the size of your purchased share.

As your home will be co-owned, you must seek approval from the relevant housing provider before making any structural alterations. This requirement might limit the sense of complete ownership freedom you’d typically have.

Can I sell my home if I have a Shared Ownership Mortgage in Manchester?

After a while of living within your Shared Ownership property in Manchester, you may decide that you want to move on and start looking at moving home. With most other mortgage types, this would be simple enough, however, with Shared Ownership, the process works slightly differently.

Whether you can sell your home depends on how much of the property you own. Usually, you are required to own 100% shares in the property before you are able to sell it.

Nevertheless, it’s important to recognise that the housing association usually retains ‘first refusal’ rights for the initial 21 years following your home purchase. Legally, this grants them the opportunity to present a purchase offer for the property before you consider selling it on the open market.

If you do not own 100% of the property, your first step is to try and purchase the remaining shares in the property and then look at selling it.

Is a Shared Ownership Mortgage in Manchester right for me?

Shared Ownership is not for everyone by any means. Most of the time, as a mortgage broker in Manchester, we find that sole applicants and those struggling to save for a deposit most benefit from the scheme.

Taking out a Shared Ownership in Manchester requires you to meet a criteria. To see whether you qualify for the scheme, reach out to our mortgage advisors in Manchester and we can take a look at your circumstances.

To speak with the team, simply give our team a call or book a free mortgage appointment online. We would love to offer a helping hand to make your Shared Ownership process stress-free!

Can You Get a Mortgage With Bad Credit in Manchester?

Bad Credit Mortgage Advice in Manchester

As a mortgage broker in Manchester, we regularly work with customers seeking help with bad credit due to issues like missed payments, low credit scores, CCJs, and defaults, among others.

Repeatedly missing payments, such as on a mobile phone contract, could lead to a default being linked to your credit record. This may pose challenges if you’re considering a future mortgage application, suggesting potential payment unreliability.

Fortunately, having missed payments or defaults doesn’t mean that it is impossible to get a mortgage. To increase your chances, we would always recommend getting specialist mortgage advice in Manchester from a professional.

You should know that you may have to provide a large deposit if you are looking to get a mortgage with bad credit in Manchester. This deposit may stretch to 10%-15% of the property’s value.

Mortgage lenders will want to know exactly why you have bad credit. They will also look at how long you have had bad credit; if you have bad credit because you received a default recently, your chances are significantly reduced, however, if you received the default years ago and haven’t been missing payments for a long period of time now, you may find that your chances are higher.

Mistakes happen, and having bad credit in Manchester should not make you stop pursuing your mortgage process. There are specialist mortgage products out there for bad credit mortgage applicants, these deals could be suitable for you and your personal and financial situation.

Bad Credit Mortgage FAQs in Manchester

In our twenty years of experience, we have come across almost every single type of specialist mortgage situation. No matter the situation, we will always try and help when we can.

Every applicant with bad credit in Manchester will undoubtedly have lots of questions they want answers to – getting a mortgage can be complicated enough! Here we have compiled a list of the most common questions asked by applicants with bad credit in Manchester.

I have been declined by my bank for a mortgage in Manchester, can you help?

As a mortgage broker in Manchester, many of our customers have come straight from their bank after being declined for a mortgage. We advise that you do not keep applying to your bank because the more that you are declined, the more harm you are posing on your credit.

We advise that you get in touch with our mortgage advisors in Manchester to discuss your current mortgage options. We may be able to help, even if you think that your situation is too complicated!

What will my mortgage advisor in Manchester need to see?

Regardless of the nature of your previous credit issues, your mortgage advisor in Manchester will require a current version of your credit report.

Obtaining your credit report before initiating a mortgage application is crucial, particularly if you’re uncertain about your credit history. Our mortgage advisors in Manchester can perform a credit check for you that comes at no cost and will not affect your credit. If you keep performing numerous credit checks it can negatively impact your credit score and potentially hinder your mortgage eligibility.

Can I still get a mortgage in Manchester with a good income but bad credit?

The response to this question depends on your circumstances. For certain individuals, while their credit score might not be considered “good”, they may possess a substantial deposit to secure a lower rate and a steady income. Yet still, due to perceived risk, a mortgage lender could refuse to lend to this applicant.

Mortgage lenders require evidence that you can consistently meet mortgage payments, preventing any likelihood of falling into arrears. Repossessing your home becomes a necessity for them only in dire situations; it’s a scenario they prefer to avoid.

Although it may seem like it’s impossible, pathways for bad credit mortgages do exist. You may just have to settle for a higher interest rate on your mortgage. To discuss your options you should speak with a professional mortgage advisor in Manchester.

I’ve had mortgage problems before. Will that stop me from getting a mortgage in Manchester now?

Unfortunately, some people do miss their mortgage payments and it can have a negative impact on their credit. Even if it was just once and there’s a plan to pay it back as soon as possible, a missed payment can still register on your record.

If this is more than just a one-time occurrence, then you may start to see your actions reflect in your credit. When the time arrives to remortgage in Manchester, purchase a new home, or invest in a buy to let property, challenges may arise. Remember that your mortgage lender is looking for reliability and trustworthiness in your credit history.

What other types of adverse obstacles are customers facing?

Applicants can encounter many different types of bad credit mortgage scenarios. Each are capable of introducing significant hurdles throughout the mortgage application journey. Some of these issues include, yet are not restricted to:

1. Missed Mortgage Payments
   
2. Defaults on Credit Cards or Loans
   
3. County Court Judgements (CCJs)
   
4. Bankruptcy
   

While none of these circumstances are ideal, they do not mean that you cannot get a mortgage. Although you may face a slightly more difficult process, potentially with increased mortgage rates, specialist mortgage lenders exist that can help.

Get in Touch for Bad Credit Mortgage Advice in Manchester

For specialist mortgage advice in Manchester, you should reach out to our team at Manchestermoneyman. We know that having bad credit can make the mortgage process seem daunting, and that’s why we want to offer a helping hand.

We offer a free mortgage appointment to every customer, simply book online or give us a call and arrange a date and time.

Your Essential Mortgage Guide: Answering Your Top Questions in Manchester

Are you seeking valuable mortgage tips and advice to ease your path to homeownership? We fully understand the uncertainties and questions you may have that may arise during this process.

In this article, our primary objective is to address your most pressing questions and offer insightful guidance to empower you in navigating the mortgage landscape with confidence.

Whether you’re a first time buyer in Manchester or exploring remortgage in Manchester, we’ve got you covered. Let’s work together to transform your homeownership dreams into a gratifying reality!

How much can I afford to borrow?

Evaluating your borrowing capacity is a fundamental aspect of the mortgage process. Consider factors such as your income, expenses, and existing debts.

You can start with online mortgage calculators to get a rough estimate, but for a more precise and tailored assessment, it’s advisable to consult with a dedicated mortgage advisor in Manchester.

Their expertise will provide you with accurate insights based on your unique financial situation, empowering you to make well-informed decisions and set yourself on the path to securing your ideal mortgage.

What are the current mortgage interest rates?

Staying well-informed about interest rates is vital for making informed decisions during your mortgage journey.

Keep yourself updated by following financial news, reputable websites, or seeking advice from knowledgeable mortgage advisors in Manchester who can provide real-time updates on interest rates.

Having a clear understanding of the current market trends will give you the power to make the best choices for your mortgage. You can also explore our YouTube channel, MoneymanTV, where we regularly upload monthly market updates related to this topic.

By staying informed about the latest trends and insights, you’ll be better equipped to navigate your mortgage journey with confidence and make well-informed decisions.

What types of mortgages are available?

It’s essential to take the time to explore the various mortgage types available, such as fixed-rate, adjustable-rate, and interest-only mortgages. Each option comes with its unique features, benefits, and considerations.

To make the best decision, conduct thorough research and seek mortgage advice in Manchester from mortgage experts. They can help you identify the most suitable mortgage type that aligns perfectly with your specific needs and financial goals.

By doing so, you’ll be better equipped to choose the mortgage that best fits your circumstances and sets you on the path to successful homeownership.

How can I improve my credit score?

Building a strong credit score is essential for securing favourable mortgage terms. To achieve this, make sure to pay your bills on time, maintain a low credit utilisation ratio, and regularly review your credit report for any errors or discrepancies.

If you come across credit-related challenges, don’t worry. There are various agencies and resources available to offer assistance and guidance in improving your credit situation.

By taking proactive steps to manage your credit, you can enhance your chances of qualifying for a mortgage with better terms and conditions.

What documents are required for a mortgage application?

Typically, standard documentation required for a mortgage application includes proof of income, identification, bank statements, and employment history.

To ensure a personalised and seamless mortgage application process, it’s best to seek advice from mortgage lenders or experienced mortgage advisors in Manchester.

They can help you in preparing a tailored list of necessary documents based on your specific financial situation and individual needs. With their expertise, you can navigate the documentation process with confidence, increasing the likelihood of a successful mortgage application.

Should I use a mortgage broker in Manchester or go directly to a mortgage lender?

Both options present unique advantages. As a mortgage broker in Manchester, we can offer access to multiple lenders, enabling comprehensive comparisons to find the best mortgage offers tailored to your requirements.

On the other hand, approaching a mortgage lender directly establishes a direct relationship. We recommend considering your preferences, conducting thorough research, and seeking recommendations to make an informed decision that aligns with your specific needs and financial goals.

Whether you choose to work with a mortgage broker in Manchester or approach lenders directly, the key is to find a solution that suits you best on your home buying journey.

What are the associated costs and fees?

It’s essential to consider expenses beyond the mortgage amount, such as arrangement fees, valuation fees, legal fees, and potential early repayment charges. Take the time to carefully review fee schedules from different mortgage lenders to gain a full understanding of all the costs involved.

To ensure you are well-informed about these expenses, seek advice from mortgage professionals who can guide you through the details and help you make informed decisions. Being aware of the complete financial picture will enable you to plan effectively and avoid any surprises along the way.

How can I save for a deposit?

Achieving a deposit for your home requires discipline and thoughtful preparation. Begin by creating a budget that helps you track your income and expenses. Look for areas where you can cut unnecessary spending to save more effectively.

Explore government schemes designed to help homebuyers, such as Help to Buy in Manchester or Right to Buy in Manchester, keeping in mind their specific eligibility criteria. These schemes can provide valuable support in your journey towards homeownership.

Consider opening high-interest savings accounts or first time buyer ISAs, which are designed to accelerate your savings with attractive interest rates and potential government contributions.

By implementing these strategies, you can take significant steps towards building your deposit and achieving your dream of owning a home in Manchester.

What is the difference between a mortgage agreement in principle and a formal mortgage offer?

An agreement in principle (AIP) offers an initial estimate of the mortgage amount a lender may be willing to offer, based on fundamental information provided by the borrower.

In contrast, a formal mortgage offer represents a legally binding document, demonstrating the lender’s commitment to providing the loan under specific conditions.

It serves as a significant milestone in the mortgage process, as it outlines the terms and conditions of the mortgage and sets the groundwork for finalising the home purchase.

How long does the mortgage application process take?

The timeline for processing a mortgage application can vary and typically takes several weeks on average. Various factors, such as the property type, credit history, and the efficiency of document submission, can influence the duration.

To ensure a smoother and more efficient process, it’s essential to work closely with your mortgage advisor in Manchester and be well-prepared for any potential delays that may arise.

By staying proactive and organised throughout the application process, you can help expedite the journey to securing your dream home.

Get Mortgage Ready!

Armed with these vital answers to your key mortgage questions, you are now ready to set off on your exciting mortgage journey.

Remember, seeking guidance from trustworthy mortgage advisors in Manchester, conducting thorough research, and staying proactive throughout the process are all crucial elements.

By following these steps, you can confidently pursue your dream of homeownership and take the necessary actions to make it a reality!

Do First Time Buyers in Manchester Pay Stamp Duty?

Please note that the information contained in this article is for general guidance purposes only and should not be considered as legal, financial, or tax advice.

All information regarding Stamp Duty is taken from the government website and is in-line with the September 2022 Mini-Budget. The laws and regulations related to Stamp Duty are subject to change, and the information in this article may not reflect the latest updates or changes in the law.

The amount payable for Stamp Duty will entirely depend on personal circumstances. Please speak with the solicitor acting on your behalf, who will be more appropriate to advise on this.

Information Source: MoneyHelper

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Stamp Duty Land Tax is a tax that applies to residential property owners in England or Northern Ireland, including those with mortgages and those who have bought properties outright.

First time buyers in Manchester can benefit from Stamp Duty relief on properties valued at £425,000 or less, with a reduced rate applied to properties valued between £425,000 and £625,000. Properties valued over £625,000 do not qualify for first time buyer relief, and the standard rates of Stamp Duty apply.

These rules are currently in effect until March 2025, after which the previous thresholds will be reinstated.

Why was Stamp Duty relief introduced for first time buyers in Manchester?

In an effort to increase affordability in the property market, the government implemented changes to Stamp Duty regulations specifically aimed at first time buyers in Manchester.

As you may know, accumulating enough funds for mortgage applications, deposits, and conveyancing fees can already be a daunting task.

Unlike existing property owners who can rely on the equity in their homes, first time buyers in Manchester, often renters, may not have the same level of equity to help cover these expenses.

Are there any exceptions to the rule?

As mentioned earlier, there are exceptions to the Stamp Duty regulations. Properties valued between £425,000 and £625,000 incur a percentage of the amount exceeding £425,000, while properties valued over £625,000 do not qualify for first time buyer relief.

It’s important to note that even if you have inherited a property and have never owned a home before, you are not eligible for first time buyer relief.

The same applies if you are purchasing a property jointly with someone who is not a first time buyer in Manchester themselves or if you are considering a first time buyer buy to let property.

In the latter case, Stamp Duty will be applicable, and the amount will vary based on your specific circumstances, so it’s advisable to consult with your solicitor for more information.

How do I pay stamp duty?

Typically, your solicitor will take care of filing the Stamp Duty return and handling the payment process on your behalf. However, you have the option to handle it yourself if you prefer.

Regardless, it is your responsibility to ensure that the return is filed within the designated timeframe. Even if you are not required to pay Stamp Duty, you must still submit a return unless you qualify for an exemption.

It’s important to be aware that the rates and regulations for Stamp Duty may differ depending on the property’s location.

To ensure you have a clear understanding of the specific tax rules that apply to your property purchase, it is advisable to consult with your solicitor or conveyancer.

Additional Costs for First Time Buyers in Manchester: What Else to Consider?

In addition to the Stamp Duty expenses, if you’re applying for a first time buyer mortgage in Manchester, it’s important to consider other potential costs involved.

One significant cost is your deposit, which is typically a minimum of 5% of the property’s value. If you have a history of poor credit or aim for better interest rates, a deposit of 10-15% might be more beneficial.

Furthermore, you should anticipate solicitors or conveyancing fees as a definite cost.

Additionally, there may be various fees and expenses that could apply to your specific case, such as a mortgage arrangement fee charged by your mortgage lender, valuation and survey fees, and potentially a fee from a mortgage broker in Manchester if you choose to use one.

Other general expenses to consider include removal costs, potential repairs, furnishing expenses, and home insurance.

It’s worth noting that not all of these costs are mandatory and can vary depending on your circumstances. To gain a more accurate understanding of the potential expenses you might encounter on your path to homeownership, consulting a mortgage advisor in Manchester is highly recommended.

Is there any support available for first time buyers in Manchester?

For first time buyers in Manchester struggling to enter the property market, it’s reassuring to know that assistance is at hand. In addition to Stamp Duty relief, there are several schemes available to facilitate home ownership.

Shared Ownership mortgages, enabling the purchase of a share in a property with rent paid on the remainder, and Forces Help to Buy (FHTB) in Manchester, which offers interest-free loans of up to 50% of their salary, capped at £25,000, are among the most popular options.

Learn more about Forces Help to Buy in Manchester.

If you are a council tenant looking to buy your property, a Right to Buy mortgage in Manchester can provide a discounted purchase price, potentially eliminating the need for a traditional deposit.

Another option to consider is a Lifetime ISA, where you can save up to £4,000 per year towards your deposit, with the government adding a 25% bonus of up to £1,000 per year. These options can greatly assist prospective home buyers in their journey towards homeownership.

For comprehensive information on the schemes mentioned above, as well as other specialised options, you can visit the official government Own Your Home website.

There, you can explore further details about these schemes and discover additional resources to assist you in your journey to homeownership.

If you prefer personalised guidance, reaching out to a reliable mortgage advisor in Manchester can be a valuable step towards starting your mortgage journey.

They can provide you with detailed information and help you in exploring the various options available, helping you take the necessary steps towards securing your own mortgage.

Are Mortgage Rates Going Up in Manchester?

Mortgage Rates & Mortgage Advice in Manchester

Those with a mortgage know the stress of taking one out, and how your process can be severely impacted by the economy.

For example, if mortgage rates fly through the roof where the economy is not performing, unfortunately, you could expect your monthly payments to go up, or in some cases, you may not be able to afford to take out that product now.

Rates have fluctuated massively over the years, and they likely always will. If you are looking to get a mortgage in Manchester, there is neither a best nor worst time to start your process!

It entirely depends on the market, and your application can take a month to prepare, therefore, you should get your process started right away.

Our mortgage advisors in Manchester will try to help you find a mortgage product with a competitive rate of interest; the best that they can at the time of your application.

What are mortgage rates?

Mortgage rates and interest rates are exactly the same. These are the rates that your lender will charge you on your mortgage repayments.

If you manage to seal a low interest rate on your mortgage deal, you could be paying a lot less each month on your mortgage repayments in Manchester.

How are mortgage rates determined?

There are a number of factors that can affect what mortgage rates you are able to access. Most of these factors can be influenced by your personal and financial situation. Examples can include your credit score or your total deposit amount. The lower your lender sees you as a risk, the better rates you may have access to.

At the end of the day though, it is down to the economy. For example, if you are on a tracker mortgage, your interest rate will be determined by the Bank of England’s base rate. The Bank of England’s interest rate is also dependent on the performance of the economy and the position of the mortgage market.

This could mean that the base rate fluctuates, sometimes resulting in higher mortgage repayments. This is something that you cannot control, however, sometimes it can work in your favour if the base rate goes down.

On the other hand, if you were on a fixed-rate mortgage, your interest rate would not change over your fixed term. Your fixed term usually lasts between 3-5 years, although you can take out products over a longer term if you find a deal that allows you to do so.

You may find that when you remortgage in Manchester, your rate may have increased, this will be the best that you are able to get in your personal and financial situation.

Are my mortgage rates in Manchester going to be affected by inflation?

Whilst inflation is on the rise, so will the cost of living. During this incline, you will find that your mortgage rate may slightly rise. Again, this can depend on the type of mortgage product that you are able to take out.

The government try to keep a target for the Bank of England base rate and plans for it to remain at a steady rate, however, when the economy is performing badly, it can slightly rise to balance it out.

When the economy is performing badly and those with a fixed-rate mortgage have a deal that is coming to an end, unfortunately, they could end up on a higher rate. As a mortgage broker in Manchester, we would recommend that you speak with an expert like ourselves during times like these.

We will try to find you the best rate available with a product most suited to your personal and financial situation.

Fixed-Rate Mortgages vs Tracker Mortgages

These two types of mortgages are usually the most popular among homeowners. Both tend to offer favourable interest rates, however, they both work very differently.

As you know, fixed-rate mortgages keep the same interest rate throughout your fixed mortgage term. Whether this is 3, 5, or 10 years, this percentage will remain the same. This means that your monthly repayments will be exactly the same, making it easier to manage your finances.

We can’t give a precise base rate percentage that you would expect a fixed mortgage to have because they are always changing and co-dependent on the economy. Most people look to “fix” in for 3 or 5 years, it is rare that we see people go as high as 10.

Say that you manage to secure a fixed-mortgage product with a 4% rate of interest for 5 years and during the 5 years, the interest rates shoot up to 5% or 6%, you will be happy knowing that your mortgage repayments are going to remain the same as your rate is fixed.

A tracker mortgage uses the Bank of England’s base rate to calculate your interest rate. This could mean that your repayments fluctuate month on month. Although this sounds like you are worse off, this also means that your repayments may reduce for some months.

Your mortgage in Manchester – It’s up to you!

It is all down to your preference and what you are able to access. Remember that lenders will look at your affordability (such as your deposit) and your credit rating to determine what deals you can access. The best advice that we can give is to speak with a mortgage advisor in Manchester.

They will be able to try and find a deal perfect for your personal and financial situation. They will also recommend the best option for you.

Sometimes it may not be plausible for you to access a fixed-rate tracker or a mortgage, and you may need to explore other options such as interest-only or variable rates. There are many different types of mortgage available to you and your property in Manchester, not just these two.

Speaking with a professional mortgage advisor in Manchester

If you want to speak with experts with over 20 years of industry experience, we are here to help! Our remortgage advisors in Manchester would love to help you through your mortgage journey and help you find that perfect mortgage product.

We are knowledgeable and experienced; our team know how to pick out the perfect product for you. The key is to make sure that you find a product for you that is tailored to your personal and financial situation!

You can book a free mortgage appointment online today and speak with a mortgage advisor in Manchester. We have appointments available 7 days a week, during the morning, afternoon or late at night. Choose an appointment that best suits you!

We are looking forward to hearing from you!

What is a Mortgage Illustration in Manchester?

Mortgage Illustration Manchester

A mortgage illustration is a document that you will receive during the mortgage process. You will be given one once your mortgage advisor in Manchester has found you a suitable mortgage product for your circumstances.

A mortgage illustration outlines every detail of a mortgage deal. Your mortgage advisor in Manchester will provide the illustration alongside the recommended mortgage product.

If you’re satisfied with the product and have read over the illustration to make sure that you know all about the mortgage deal, the mortgage application process can start.

At Manchestermoneyman, you will get a mortgage illustration following your free mortgage appointment. You can simply book a free appointment online and speak with a mortgage advisor in Manchester; we are available 7 days a week, so pick a date and time that best suits you.

For more information, watch the MoneymanTV video below or visit the channel for more tips and explanations.

What is included in a mortgage illustration?

The mortgage illustration you receive will cover the main product details, costs of taking out the product, monthly repayments, legal fees and sometimes valuation fees.

Main Details

“Main details” include information such as the length of your fixed contract, who you are taking out the product with and the interest rate.

Costs of Taking Out a Product

Most, if not all mortgage products come with arrangement fees. The cost of the arrangement fee (if applicable) will be stated in your mortgage illustration.

Monthly Repayments

Your monthly mortgage payments are determined by your total mortgage amount, interest rate, and fixed term length. The amount that you will be paying per month will be shown in your mortgage illustration.

Legal Fees

Legal fees include the services of a solicitor. As a mortgage broker in Manchester, we will talk you through these costs before passing you over to them.

Valuation Fees

In most cases, a property survey must be carried out on the property before obtaining a mortgage. If you need a property survey, the costs should be specified in your mortgage illustration. These costs can vary depending on the property value, property type and type of survey.

Do I have to agree to your mortgage recommendation?

The product that is presented to you is only a recommendation, therefore you are under no obligation to take it out. However, you must know that your mortgage advisor in Manchester will have carefully selected this product for you and would have tried to find a deal specifically for your personal and financial situation.

Unfortunately, if you choose not to continue with us, you will lose out on the deal.

Does a mortgage illustration guarantee me a mortgage in Manchester?

We cannot guarantee any applicant a mortgage, unfortunately. A mortgage illustration is provided after your free mortgage appointment, therefore, you have not yet submitted any documentation verifying your income, deposit source, and affordability.

Is a mortgage illustration the same as an agreement in principle?

An agreement in principle (AIP) is not the same as a mortgage illustration. While a mortgage illustration outlines the details of the recommended mortgage prior to application, an AIP confirms that the lender is willing to offer to you in principle that you can provide evidential documents to support your affordability.

An AIP can be used to demonstrate your readiness and commitment to purchase a property from the seller.

Book your free mortgage appointment in Manchester

We have mortgage advisors in Manchester readily available to discuss your mortgage options. Whether you are a first time buyer in Manchester, moving home in Manchester or a landlord looking for a buy to let property, we will be more than happy to help you start your mortgage journey.

How to Save For a Mortgage in Manchester

Saving for anything these days can prove difficult, never mind a mortgage deposit!

As a mortgage broker in Manchester, we often see that first time buyers find the homebuying process daunting, which is understandable as you will need to make sure that your credit score is good enough, you have a big enough deposit for your mortgage, have sufficient evidence to support your affordability.

Within this article, we are going to take a look at saving for your mortgage deposit and what you need to consider before taking out a mortgage.

Work Out How Much You Need to Save For Your Mortgage in Manchester

Before you can start saving for a mortgage deposit, you need to work out your monthly disposable income. Start with working out your average monthly outgoings and expenditures so that you can calculate and estimate how much you can allocate to your deposit savings. This will give you a realistic view of how much you need to save each month.

Usually, the minimum deposit amount that you will need to put down is 5% of the property’s value. We have seen that some first time buyers in Manchester try to save even more for their mortgage deposit, sometimes up to 20%. The larger the deposit that you put down is, the lower your monthly mortgage payments will be. If you have bad credit, you may need to provide around 15%-20%.
 
As mentioned before, if you manage to save a bigger deposit, you could end up paying lower monthly mortgage payments. Essentially, this is because you have a lower loan to value (LTV) mortgage. Lenders are always thinking about risk, remember that a mortgage is borrowed money, the more that you borrow, the more interest you must pay back. If you also demonstrate that can save for your deposit you are also appearing as a more reliable applicant.

You will also need to account for the other costs of taking out a mortgage, such as arrangement, solicitor and property survey fees. If you use a mortgage broker in Manchester, you may also want to consider the costs that come with this too.

Are there any schemes available?

There is a wide variety of government-led schemes available that can help boost your mortgage deposit or help you save for one. It may be worth checking to see whether you are eligible for any of these schemes.

One of the more popular schemes is the Shared Ownership scheme where you are able to take a mortgage out on a percentage of a property, hence reducing your initial deposit. You can take out a mortgage on 10%-75% of the with the help of this scheme and it could help you in starting your first time buyer mortgage journey in Manchester.

There are many more schemes available, such as the Lifetime ISA, first homes scheme and the mortgage guaranteed scheme. If you are interested in any of these schemes or want to learn more, don’t hesitate to contact us or book a free mortgage appointment online with one of our mortgage advisors in Manchester. You can also find out more through the government OwnYourHome website.

Help From Elsewhere 

If you are lucky enough to receive one, gifted deposits can significantly boost your mortgage deposit.

A gifted deposit is a contribution towards your mortgage gifted to you by a family member or friend. Strictly, this is not a loan it is a gift and must not be repaid in the future.

Review Your Outgoings

You should conduct an audit of your current bills and subscriptions that you out every month and see whether is anywhere that you can save money. You also may be able to find cheaper alternatives by looking elsewhere.

We would take a look at memberships too to see whether there are cheaper alternatives anywhere else. The more money that you manage to save each month, is more towards your mortgage deposit.

Have you considered buying a property with a friend or partner?

Buying with a friend or partner is often the way that we see most first time buyers in Manchester go. It is a popular option because your savings double.

You will have to be careful when it comes to creating financial links with other people because if they have bad credit, it could affect you too. If the person has a default, for example, it could negatively affect their ability to get a mortgage.

There are different types of mortgages designed for those looking to buy a property with their friend or partner, these include:

Joint Tenants

This type of mortgage involves both parties owning the whole mortgage and having equal ownership over the property. If one party passes away during the mortgage term, the full ownership of the home will be carried over to the remaining owner.

Lenders will consider you as one unit, so you will both have to come to an agreement if you want to sell or remortgage the property.

Tenants in Common

This type of mortgage involves multiple owners who have particular shares in the property. The shares in the property that are owned do not need to be equal too.

In the future, since the lender sees you as two separate shareholders in the property, you may be able to sell or give away these shares.

Saving For a Deposit if You Have Bad Credit in Manchester

If you have bad credit, you may need to save more for your deposit. Lenders will often ask for a 10%-15% deposit if you have bad credit, therefore, you may need to spend longer saving up, unfortunately.

You could also try and improve your credit score. Look at some of these tips to see how you can improve your credit score.

Register on the Voter’s Roll

Make sure that you are registered on the voter’s roll so that your lender can see that all of your addresses line up. It will also show your lender that you are reliable.

Double-check that everything is spelt correctly and that this is the same address that you use for your banking, store cards, billing addresses etc.

Try to Keep Within Your Maximum Limit

Maxing out your credit card and failing to pay it off each month can reflect badly on your credit score. It can be best to use a credit card and pay off the balance in full each month.

Meet Payment Deadlines

Leading on from credit cards, make sure that you are meeting your deadlines and have enough in your account when payments are due to go out. The more consistent that you are with this, the better the impact these practices will have on your credit rating.

Close Down Any Unused Credit Accounts

If you have a credit account that you do not use and do not intend to use, you should close them down. They may be doing more harm than good to your credit file.

If an old address is linked to one of these accounts, it can cause a negative impact on your credit score. This applies to store accounts too, make sure that they are closed down if you are not using them.

Detach Yourself From Any Financial Links to Others

Being financially connected to someone with bad credit can negatively impact your credit score. Usually, we see that this is more common following a divorce/separation where the ex-couple are still connected and they are both negatively affecting each other.

Our Expert Mortgage Advisors in Manchester

If you are planning on saving for a mortgage, and you need mortgage advice in Manchester, feel free to reach out to our team at Manchestermoneyman.

We know that starting your mortgage journey can be difficult and it all gets a bit too much sometimes – that’s why we want to offer a helping hand. We have over 20 years of experience in the industry and would love to help you begin your process.

Book online or give us a call to arrange your free mortgage consultation with a mortgage advisor in Manchester.

The Pros & Cons of Using a Mortgage Broker in Manchester

It can be daunting taking that first step into the mortgage world for the first, second, or third time. With many options for first time buyers in Manchester, home movers and buy to let landlords’ to take for themselves, it is time and cost effective to get it right the first time.

Regardless of your mortgage goals and situation, we offer a tailored and friendly service to try and help you through your mortgage journey.

We understand the process can be complicated. Therefore, we have great confidence in our ability to help our customers through the mortgage process and provide expert mortgage advice in Manchester to new and existing customers.

In this article, we have collated an overview of the pros and cons of approaching a mortgage broker in Manchester which may help you, and why many people prefer coming to us for mortgage advice in Manchester. 

Why use a mortgage broker in Manchester?

Cost-Effectiveness

Many believe that by doing direct and finding your own mortgage deal, you are more likely to save money. This is not entirely the case, as most mortgage brokers in Manchester may charge a fee, however, this does base on circumstances and company you go towards.

It could be easier and more cost-effective if you have a lot of knowledge and have a simple case, but it can be more complex depending on your situation so approaching a mortgage broker in Manchester would be useful.

Not having much knowledge could result in ending up on the wrong deal or being unsuccessful on your mortgage application. Either of these conditions could end up you spending more money than you must or harming your credit score. Which can impact your chances of applying for a mortgage in the future.

With a dedicated mortgage advisor in Manchester by your side, they will aim to help you achieve your mortgage goals. Their goal is to get their recommendation right for the first time, at the best price. As much as this comes with a service fee, it could mean that you save much more money overall.

Local Bank Branch Relationship 

Loyalty can be one reason many customers approach the bank directly and how the mortgage process was previously run. This was the way before the rise of technology and online banking, in which loyal customers approached their local branch every day, usually talking to the same person.

In terms of the mortgage process, your best bet would have been to get the best person to approve a mortgage for you because you get help and guidance from the bank manager himself, who is an expert and has a thorough knowledge of your finances. Now, the process is significantly different with the credit scoring being digital.

Because of this, the bank manager will not physically go through the case themselves; it will go through a complex online system to see if you are eligible for a mortgage. Everything is fair regardless of which bank you are with.

Exclusive Mortgage Products 

Many believe that you are open to better, exclusive offers by going directly. Again, this is true, though, it can be limited. That is because they only offer their company the best deals.

Not all mortgage lenders are banks, and there are many more options available. Therefore, the deal that the bank considers suitable for you may not be the best deal beyond the bank you could have gone with.

Getting specialist mortgage advice in Manchester can be the best way to get a competitive deal that is suitable for you. One of our expert mortgage advisors in Manchester will be able to go through your case and find you the best deal from our large panel of lenders.

This is another advantage of approaching a mortgage broker in Manchester rather than just a bank.

After the topic of deals, you can find approaching a mortgage broker in Manchester can provide you with exclusive deals that you cannot find anywhere else. There will be a broad range of options when you are with a mortgage broker regardless of if you are a first time buyer, moving house, or looking to remortgage in Manchester.

Changes to Regulation & Consumer Protection  

In the wake of the 2007-08 credit crunch, a huge improvement in the mortgage market had to occur. One of these changes was stated in the 2014 Mortgage Market Review. Which instructed lenders without extensive expert advice to sell mortgages to their customers.

Because of this, people could not just approach a bank to tell them they wanted a mortgage and were promptly granted without checks. Not every employee in the bank could grant you a mortgage. Which was something that happened regularly regardless of whether they were qualified to do so or not.

As well as this, these changes also bought about consumer protection, which a bank would not have given you. Now, you can place a complaint with the Financial Ombudsman if you feel misadvised. Another way to make a claim is through the Financial Services Compensation Scheme.

This means reassuring a customer that they will be safe and advised accordingly regardless of their mortgage journey. This applies to mortgage brokers in Manchester and lenders.

Book an Appointment with a Mortgage Advisor in Manchester 

Another drawback you get approaching a bank instead of a mortgage broker in Manchester is the timing. When you approach a bank, it can take months to talk to someone in a bank. Moreover, when you start the process, you are not updated as much through the mortgage journey.

Here at Manchestermoneyman, our responsive team will contact you at a time that is best for you and your day to day life. From early to late, 7 days a week, including weekends, our mortgage advisors in Manchester will be available to answer any of your questions and keep you up to date. You might find us being contactable on some bank holidays.

In some cases, you may attend your appointment on the same day, but this should not be the case. You can talk to someone whenever you are ready and available.

We understand that the lifestyle of each customer is different. As a result, our advisors in Manchester are available throughout the day, which means you can book an appointment beyond 9-5 or even on weekends! Our online booking system is simple, where you can find a slot to speak to a mortgage advisor in Manchester.

Responsiveness is a fundamental value within our company. Whether you are at the beginning of the process or towards the completion of the mortgage, our friendly team will always keep you up to date. If there are changes, your mortgage advisor in Manchester will contact you as soon as possible.

Providing this high-quality service is why many mortgage brokers in Manchester, like us, are favoured in the public eye. With this popularity, many people prefer to approach local experts rather than national banks.

Handling of Complex Scenarios 

Thanks to our extensive industry experience, we have found that some cases are more difficult than others. Below are just some scenarios that are slightly more difficult than the usual case:

• Mixed Depsoit – This means auditing two different sources like a gifted deposit and money from savings. 
• Zero Hour Contract Workers – Will there be a consistent income? 
• Looking to Make a Second Purchase – Can they afford to make that additional purchase? 
• Self-Employed with No Fixed Income – This can be challenging for anyone who is self employed in Manchester. 
• Poor Credit History – A lender will not look favourably upon an applicant who has mismanaged in the past. 
• Affordability – Can they afford a mortgage full stop? 

Previously, mortgage lenders could easily compete by offering better deals than the others. Now, the main change in which deal you go with is if you match the criteria.

You can find a cheaper deal, but it may not meet your criteria. To see if you can have a mortgage, the mortgage lender carries out a hard search (resulting in a footprint on your credit file).

In the case where you apply for the mortgage with a lender and refuse a deal in principle, this could harm your credit file. The most frustrating thing about all this is that it is very unlikely that you will be given a reason you have been rejected.

Agreement in Principle

Mortgage brokers in Manchester will be able to go through your case and advise you on ways to increase your chances of being accepted. With access to a wide range of lenders, they can find you the most suitable deal that perfectly matches you with its criteria and then start getting an agreement sorted for you in principle.

If you get an agreement in principle through Manchestermoneyman, it will usually be sorted for you within 24 hours of your free mortgage appointment.

Keep in mind that this doesn’t automatically mean you agree or guarantee a mortgage at the end. However, it makes your credit file much safer by having an expert go through it in advance. Our team of Mortgage Advisors in Manchester will always aim at getting our recommendation right the first time.

Should I use a Mortgage Broker in Manchester? 

There are pros and cons of approaching a mortgage broker in Manchester. On the hand, there are many pros and cons to going direct too. The difference is how fast you want your service to be, as well as how safe you want to be.

As a dedicated mortgage broker in Manchester, we have extensive experience in dealing with a wide range of clients who go through the mortgage journey. Whether you are a first time buyer in Manchester taking that first step into the mortgage world. Somebody who is coming towards the end of their fixed period, or looking to remortgage in Manchester, our team are more than happy to help!

Book yourself in for a free mortgage appointment or remortgage review to speak with an expert mortgage advisor in Manchester. Our team is here to help with your mortgage goals, with availability that suits you, subject to availability.

For more information about our service, check out our brilliant customer reviews. These show the high level of service we give our happy customers daily. We also have a YouTube channel MoneymanTV if you are looking for more insight into the mortgage world. 

What Credit Score Do I Need For a Mortgage in Manchester?

When it comes to applying for any sort of finance, you will be asked to provide an up-to-date credit report. A credit report is essentially a summary of your finances and how you manage your money. It will be summarised by a score out of 1000 – your credit score.

As a mortgage broker in Manchester, we see different credit scores every day; some averaging low, some averaging high. Depending on an applicant’s financial situation, credit scores can differ from person to person. In a room of ten people, it would be very unlikely to find two people with the exact same credit score.

Credit scores range from 0-1000. Sites such as Experian, Equifax and TransUnion will give you a general guide as to what is classed as a poor, fair, good, very good and excellent credit score. These are based on averages over a period of time however, therefore, one lender’s impression of a “good” credit score could be completely different to another.

Getting a mortgage with a high credit score in Manchester

Reliability is the key to getting a mortgage, and having a good credit score can massively help in showing that you are reliable and someone who manages their finances sensibly.

Despite appearing as a reliable applicant, you should know that having an excellent credit score will never guarantee you a mortgage. As a mortgage broker in Manchester, we have seen that some lenders offer products that can only be accessed to customers with a credit score greater than 900.

We would recommend speaking with a professional mortgage advisor in Manchester like us before applying for these high-end products. If you do not match the product and you get declined, you could negatively impact your credit score.

Getting a mortgage with a low credit score in Manchester

If you have a low credit score, you still may be able to take out a mortgage. Yes, you could be limited to specialist deals that come with high-interest rates, however, at least you are still may be able to take out a mortgage!

Remember that everyone’s situation is different and that it is also down to people’s personal circumstances too. So one applicant with low credit may get a mortgage whilst another applicant with a similar credit score may not due to their complex personal situation.

Young applicant with low credit score

If you are a younger mortgage applicant with a low credit score, you may still be able to find success in your journey. As a first time buyer in Manchester, you may simply not have built up a sufficient credit score yet. Most of the time, this isn’t a problem, even more so if you are using a government-led scheme such as the Help to Buy Equity Loan or Shared Ownership.

If a first time buyer has low credit, it does not necessarily mean that they are bad with their money they just probably haven’t had the chance to increase it. If there is a record of missed payments and defaults, this will harm the chances of getting a mortgage.

Some lenders may only want buyers with good credit, no matter whether they are a first time buyer or not, it depends on the lender. Before applying to lots of different deals, it can be best to first get mortgage advice in Manchester and get the answer to all of your questions.

Mortgage with a CCJ or Default in Manchester

If you have missed your loan repayments on anything, for a particular length of time, a creditor may issue you a default notice. A default can severely impact your credit score, and even more so if you already have a low score. If your score declines to “poor”, you may be refused a mortgage altogether and may struggle to take out any loans in the near future.

You can pay back a default straight away, but it will still have already impacted your credit score. If you don’t pay it straight away, you will likely be issued with a County Court Judgement. This is the last resort for creditors; first trying to chase the debt and if this doesn’t work then work on an agreement to pay the debt back over time.

Having a CCJ on your credit file is very unappealing. Lenders may be completely put off if they see one in your name. Not to mention that they will also cause damage to your credit score. You could even find it difficult to get a new credit card or open a bank account.

CCJs remain on your credit file for 6 years, even if you settle the amount owed. You can protest a CCJ if you feel that it shouldn’t have been issued, however, you will need to have sufficient evidence to fight your claim.

You can “satisfy” your CCJ by paying it off. It will still appear on your file, although it will say “satisfied” next to the payment. Lenders will be able to see that your debt has been repaid in full. They will also be able to see when the CCJ was originally issued and how long it took you to pay it off.

Typically, the longer a CCJ has been on your file, the more likely you are to get a mortgage. If the CCJ has only been on your record for a year, you’ll be lucky to get your application moving.

This all again depends on the circumstance and the mortgage lender’s criteria. We would always recommend speaking with a mortgage broker in Manchester prior to submitting a mortgage application with a CCJ in your name.

Remortgage with bad credit in Manchester

If you already own property and were looking to remortgage your process should be straightforward enough. But, if you have bad credit and are trying to remortgage, you may slightly struggle depending on your situation.

Even though it is your own home, when you remortgage, you are taking out another mortgage product. When you take out a new product, you still have to undergo affordability assessments and credit score checks, therefore, if you have bad credit, you may struggle to remortgage. You may have to accept the fact that you are going to fall onto your lender’s standard variable rate of interest (SVR).

Speak to a specialist mortgage advisor in Manchester prior to remortgaging with bad credit. An expert can answer all of your remortgage questions and see whether you could qualify for any specialist deals.

How does a low credit score impact interest rates?

If you have a lower credit score, you may find it more difficult to access the lower rates of interest. The lower rate products usually come with a “very good”-“excellent” credit score requirement.

As mentioned earlier, you still may be able to access these better rates of interest if you are a first time buyer. This is because you may not have had the chance to increase your credit score yet.

On the other hand, if you have adverse credit, such as a default or CCJ, you will likely be incurring higher interest rates.

Usually, you are able to put down a higher deposit to gain a better rate of interest, however, if you have bad credit, you may already be asked to put down a higher deposit to show your reliability. In this scenario, you will still likely be on a higher rate.