Are Mortgage Rates Going Up?
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!
Remortgaging in Manchester When Your House Value Has Increased
Remortgage Advice in Manchester
Buying a property is a huge financial investment, in fact, it will likely be the biggest investment of your life. Whether the property is going to be your new home or a buy to let for others to live in, you would hope that over time, the value of it would increase.
A property is not only the largest financial asset you possess, but it also provides a roof over your and your family’s head. This property may also be passed on down through generations to come, or the sale of the property could help family members invest in their own property.
Typically, house prices are always on the rise and match inflation, however, there may be times were they slightly dip due to the economy. If you are a property owner and housing prices soar, it is the perfect time to remortgage, sometimes earlier than you normally would too.
When housing prices rise, usually the best interest rates are available. So, to make sure that you are on the best rate available to you, you should look at your remortgage options and consider taking up a new deal whilst the opportunity is there.
What is a loan to value and why do people remortgage for a better one?
Loan to value, abbreviated to LTV, is the ratio of the mortgage to property value. When searching for mortgage products, LTV will be represented as a percentage. For example, if you are purchasing a property in Manchester worth approximately £250,000 and you have a 10% deposit (£25,000), you will need to take out a 90% LTV mortgage.
Deals within the mortgage market are broken down into tiers/brackets. Usually, the lowest tier is around 60% and the highest is 95%. You will find that not every lender offers 95% LTV mortgages on their panel, for example, specialist lenders may require at least a 10% deposit (90% LTV mortgage). Although your personal and financial situation could affect the type of mortgage that you are able to take out, typically, the lower your LTV mortgage is, the more favourable mortgage deals you should have access to.
In the future, say your £250,000 property has increased in value to £270,000 and your initial £250,000 mortgage balance has come down to £225,000, your new loan to value is 83%. As your LTV decreases, you should be able to access better mortgage rates.
The reason why lower LTV mortgages have a more competitive rate of interest is that you are less of a risk to the lender.
The Different Types of Remortgage in Manchester
Despite most not knowing, there are two different types of remortgage, one being a simple remortgage, and the other being a product transfer.
Beginning with the latter, a product transfer is when you take out a new mortgage product with the same lender and just switch deals. This is ideal if you prefer to use the same lender regardless of the rate included.
If you would rather remortgage in Manchester, you would be taking out a new mortgage product with a different lender. shopping around for different deals with other lenders often opens you to competitive mortgage rates.
As a mortgage broker in Manchester, we will be able to help you through your remortgage and help you find a suitable product to switch to that is tailored to your personal and financial situation.
How do I find out the value of my property in Manchester?
Just like when you originally bought the property, your property will be valuated again during your remortgage. You will not need to take out a property survey such as a homebuyer’s report or full structural survey.
A mortgage valuation will establish the true value of the property. Your lender will have them carried out in one of two ways; using an Automated Valuation Model (AVM) or through a physical inspection. An AVM is also known as a desktop valuation, as somebody is not sent out to inspect the property, they look at their databases to cross-reference similar properties in the area to try and determine the value. AVMs will unfortunately miss these factors. If you would prefer a physical valuation, speak with your mortgage advisor in Manchester so that they can mention your preferred valuation method to your lender. A physical inspection is self-explanatory; someone will come out to the property and valuate it in person.
It is all a game of risk to the lenders. They need to make sure that they are lending against the true value of the property, otherwise, they would be lending more than they need to.
Remortgage in Manchester to Release Equity When Your Home Value Has Increased
Having equity within your property is essentially what lowers your LTV, and as you know, having a lower LTV means that you can potentially access better remortgage rates. Despite this being the case, some property owners may still want to release equity through a remortgage in Manchester to use the funds for another purchase.
Releasing equity from your property does mean that your monthly payments could increase. This is because you are taking out equity from your property which increases your LTV. Depending on your financial situation and how far into your mortgage term you are, you may or may not be able to remortgage in Manchester to release equity.
If you choose to invest your released equity into home improvements, it will likely increase the price of your home. As a mortgage broker in Manchester, we have seen customers invest in garden improvements, loft conversions and kitchen extensions and it increases their property value. Some people will invest in their homes to increase the property’s value, but most will invest in their homes to improve their day-to-day life. For example, if your family is growing and you need more space, you could release equity from your home during your remortgage and invest in a loft conversion.
A property is a huge financial asset, it is important to know the positives and benefits of releasing equity. One of our remortgage advisors in Manchester will be more than happy to help you with your remortgage if you need advice.
Can I remortgage early if the value of my home has increased?
The answer to this question entirely depends on how far into your mortgage term you are. Remortgaging early may result in you having to face an early repayment charge (ERC). This is because you are breaking your initial contract term. We will say that you should only remortgage early if you are certain that it is the best thing to do for your financial situation.
In some cases, remortgaging early when your home value has increased can allow you to access a better rate of interest, and paying the ERC could potentially save you money further down the line. An example of when it was a good time to remortgage early was during the COVID-19 global pandemic. This was because the Bank of England base rate dropped and remortgaging at this time could’ve secured a better rate. Yes, you would’ve received an ERC, however, in the long run, you may end up saving some money on your new rate.
This is a niche example from an odd time, but it does demonstrate that sometimes it can be beneficial to pay the ERC by remortgaging early to save money. We would recommend speaking with one of our expert remortgage advisors in Manchester before remortgaging early, just in case you are on the best deal available. We will be open and honest with you at all times and only recommend the best solution for you and your personal and financial situation.
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.
A Guide to Offset Mortgages in Manchester
Offset Mortgage Advice in Manchester
The general popularity surrounding Offset Mortgages has dipped since their rise during the 1990s, though some of you may be pleased to know that they are still a great option for customers who have the ability to put some money aside every month.
They’re also quite good if you believe that you are due to receive a lump sum in the near future.
How can an Offset Mortgage help?
When you start out with your Offset Mortgage, you will be given a savings account by the mortgage lender that will run alongside your mortgage, for the sole purpose of aiding your mortgage. Rather than racking up interest, the money will offset against the balance of your mortgage.
As an example of how this works, let’s say that your mortgage is worth £100,000 and you have managed to save up £15,000 in savings, then you will only be paying interest on the £85,000 that is left.
Offset Mortgages tend to be rather flexible arrangements. Until you have completely offset your mortgage, you will have the ability to put as much money as you would like into it. You will always have instant access to the money that is in your savings, so if you need to dip in for any emergencies, you know that it is there.
One of the things that is really great about Offset Mortgages, is that it saves interest, as opposed to adding it on, so you won’t have to pay any tax on any savings that you put into your savings. Higher rate taxpayers are definitely big fans of these!
Things You Need to Know
An Offset Mortgage is a great option if you are due a lump sum for any reason, such as possible inheritance, as because it is interest-free, it allows you to store your money until you know what you want to do with it. This also applies to any annual or quarterly bonuses from your job that you have no dependance on.
Because your savings account will be freely accessible at any time, you are able to dip into your additional savings for other means if you need to, whilst leaving some in there for your mortgage. It is important to remember that you need a substantial amount in there though to make your Offset worth taking out!
An Offset Mortgage can work out really well for First-Time Buyers in Manchester who have any plans to overpay on their mortgage. Looking further down the road, once your current term ends, overpaying can potentially reduce your mortgage payments for the next term that you take, reducing interest rates in the process.
With other mortgage types, any money that you put towards your mortgage cannot be withdrawn at any point, with releasing equity being your option once your term has ended. This is a situation that is less than ideal if you have any second thoughts or need a short term boost to your income.
It’s times like this where Offset Mortgages are rather clever. Because you have a savings account, you will have the ability to take out the funds at any time, then put them back in when you are ready to do so.
So, if you’re looking to make any further payments on your mortgage over the term, we’d recommend making use of an Offset Mortgage savings account.
Conclusion
You should consider all of the options that are available to you when you get in touch with a Mortgage Advisor in Manchester.
Some consumers who like using Offset Mortgages tend to keep going with them and are less likely to Remortgage than another homeowner might be inclined to. The may seem a little complex though, so there are customers who may not use this option.
Your dedicated mortgage advisor will be able to show you the impact of how an Offset Mortgage can potentially save you money over the course of the full mortgage term.
If you have any further questions relating to the topic of Offset Mortgages or a Remortgage in Manchester, feel free to book online for your free mortgage appointment and we’ll happily talk you through whatever you need help with.
What do Lenders Look for When Assessing my Bank Statements?
Why does a lender need my bank statements, and how do I obtain them?
A lender will need to see your bank statements to learn more about your spending habits. They will analyse your bank statements to determine whether or not you are the sort of person who can manage your money responsibly and can afford to keep up regular mortgage payments.
After all, a mortgage is likely the most significant financial commitment you will ever make in your life and is not something to be taken lightly.
You have several ways to obtain your bank statements either by post, over the counter at your local bank or print from your online banking platform.
What will lenders be looking for on my bank statement?
As stated above, they need to know you’re responsible with your money. One of the things they’ll be looking at is if there are any overdrafts. Using this often is not necessarily a bad thing; regularly exceeding the overdraft limit is not ideal.
More factors to be careful with are potential returned direct debits, showing a lender you are not consistently reliable, and not disclosing loans at the application stage won’t look good if the lender finds any outgoings on your bank statements that you failed to mention.
Another awareness is if you have missed payments for personal loans and things such as credit cards. What will impress the lender is demonstrating that you handle your money well and meet payment deadlines.
Will gambling affect my chances of getting a mortgage?
If you have a history of gambling, the occasional bit of fun is harmless, but if you are frequently wagering significant amounts of money, whether you’re making it back or not, the lender will consider whether or not these transactions are reasonable and responsible.
For more information, check out our article “Do Gambling Transactions Look Bad on My Bank Statements?”
What can I do to show the lender I am reliable?
The answer is simple – be sensible. Typically, a bank would ask for up to three months of your most recent bank statements. These will show your salary credits and all your regular bill payments.
Ensure that your bank account is conducted in a manner that shows you are reliable and manage your finances well.
The first thing we’d suggest is that if you are a frequent big spender, you take a break for some time. During this break, you will find yourself in a better financial state and could improve your mental health.
If you need to save some extra money, some choose to cook at home instead of takeaways, stop treating yourself to unnecessary large purchases, and limit your subscriptions; this will help free up additional cash to ensure you can pay bills on time.
This boils down to simply being sensible and planning with plenty of time ahead of what you’re looking to do. The further away you find yourself from bouts of debt and financial uncertainty, the better your chances will be with a lender.
Speak to a Dedicated Mortgage Advisor in Manchester
Whether you’re a first time buyer, moving home, or self-employed in Manchester, it’s always essential to keep on top of your finances.
If you have a history of bad credit history and are unsure of what to do next, you can always enquire about specialist mortgage advice in Manchester by getting in touch with us today. We’ll advise as best as we can to help you through your mortgage journey.
Do Gambling Transactions Look Bad on My Bank Statements?
Why does the lender need my bank statements?
Regardless of your mortgage situation, you could be a first time buyer in Manchester, a home mover or looking to remortgage. Your lender will always want a copy of your bank statements.
They will analyse your bank statements to determine whether or not you are the sort of person who can manage your money responsibly and can afford to keep up regular mortgage payments.
It would help if you thought about your statements and what other elements of your banking say about you. One trend that has come into highlight is the question of gambling transactions on bank statements.
What has it got to do with the lender whether l gamble or not?
There is nothing illegal about having an annual flutter on the grand national or regular use on licensed gambling sites. However, even the bookmakers and gambling advertisers urge customers to ‘gamble responsibly’.
This is the same message to bear in mind when it comes to applying for a mortgage. It is not the lenders’ job to tell you how to live your life, how you spend your money or preach on moral rights and wrongs of gambling. They do however have a duty to lend responsibly.
If lenders need to prove to the regulators that they are making careful lending decisions, it isn’t entirely unreasonable to expect the people they lend to be responsible for their finances.
Will gambling affect my chances of getting a mortgage?
As we mentioned above, just because you have the odd gambling transaction on your bank statements doesn’t mean your mortgage application will get declined. The lender will consider whether or not these transactions are reasonable and responsible.
Your lender will mainly look at the frequency of transactions and the overall impact on the account balance. If these gambling transactions are small and infrequent, making no significant impact on your overall regular credit bank balance, then they are likely to be overlooked.
On the contrary, if you bet most weeks and are constantly overdrawn, the lender is likely to view this as irresponsible and could decline your application.
What will lenders be looking for on my bank statement?
Remember, lenders are financial institutions that either directly or as part of a wider group often provide various products, such as current accounts, overdraft facilities, credit cards and personal loans. The way in which you conduct these accounts will impact your ability to obtain a mortgage.
For example, having an overdraft facility and occasionally using it is not inherently wrong; regularly exceeding the overdraft limit is not ideal.
Your lenders will look for excess overdraft fees or returned direct debits because these would generally show that the account is not being well conducted.
Other things to look out for include credit transactions from pay-day loan companies; “undisclosed” loan repayments. They would look out for any missed payments and consider how much of a typical month is spent overdrawn.
What can I do to show the lender I am reliable?
The answer is simple – be sensible and, if possible, plan ahead. Typically, a bank would ask for up to three months of your most recent bank statements. These will show your salary credits and all your regular bill payments. Making sure that your bank account is conducted in a manner that shows you are reliable and manage your finances well.
If you are a regular gambler, maybe think about taking a break or setting limits, there are features on most gambling apps that can help with this. As well as helping your mortgage application, this may also be good for mental health.
Get in touch with a mortgage broker in Manchester
If you are a first-time buyer, home mover or looking to remortgage in Manchester but need some support or guidance, you should get some specialist advice from a mortgage advisor in Manchester.
Our advisors can guide you through the whole mortgage process and help you with your application and get you on track so that lenders will be impressed.
What is a Property Survey in Manchester?
Property Survey Mortgage Advice in Manchester
If you are a First-Time Buyer in Manchester or a Home Mover in Manchester and have put in your offer for a property, you may be wondering what the next step in your mortgage process is.
The next step will be to take out a property survey, as a means of establishing the condition of the property is, so you can figure out if it is worth the amount that you are paying for it.
If the surveyor happens to find something and reports it on the survey, then the buyer will be in a position by law to approach the seller and further negotiate a price that will cover the costs of any required work that may need doing to the property.
Different types of property survey
There are 3 main types of property surveys available to home buyers.
- Mortgage Valuation
- Homebuyers’ Report
- Full Structural Survey
Mortgage Valuation
A Mortgage Valuation survey will consist of a basic, straightforward valuation. This kind of valuation will be required to be paid for by the person taking out the mortgage, in order to secure a mortgage offer.
It should not be confused with a full survey. The mortgage valuation confirms to the lender that the property you are looking to borrow money to purchase, is worth exactly what you’re willing to pay for it.
This type of home valuation will not highlight any repairs that are needed, though it may still point out any obvious defects that they would recommend you further look into and use your own judgement on.
Homebuyers’ Report
This type of survey will cover structural safety and highlights any apparent problems that will require your immediate attention, including things like any damp that exists in the property, as well as anything that doesn’t meet current building regulations.
This report will offer an independent report of your property by an expert in the field. To ensure that two surveys aren’t being paid for, it is recommended to ask the mortgage companies surveyor to carry out this report on your behalf, though be wary that it may take a couple of hours to complete.
Full Structural Survey
A full structural survey is better suited for properties that are older and those of non-standard construction.
Depending on various factors such as property size and type, a full structural survey will possibly take longer than a Homebuyers’ Report, sometimes taking as long as a day to complete.
A full structural survey will provide a detailed insight into the condition of the property and highlight issues that should be investigated further before continuing with making a full purchase, to provide the buyer with a more settled peace of mind.
You can find a surveyor to carry out a Homebuyers’ report or building survey through the Royal Institution of Chartered Surveyors.
Mortgage Advice in Manchester
Remortgaging for a Home Extension
As life goes on, you will undoubtedly want more living and breathing space in your home, it’s only natural. There are always ways to make more space; when it comes to living space, you can either physically move home or extend your current home, the choice is yours. Generally speaking, it can be cheaper to remain inside your current home as you don’t get all of the fees that are attached to moving home. So, if you’ve found a home that you can see yourself living in for years to come, it may be more beneficial to carry on living in the property.
If you choose to extend your home over Moving Home in Manchester you have to think about what you want from extending your home. Do you want a kitchen extension? A conservatory? Maybe a bigger garden? Whichever option you choose, you will still need to decide how you are going to do it.
This article is going to focus on the Remortgage side of things and how you can Remortgage your home and come out with an extension.
Remortgage Advice in Manchester
Remortgaging for home improvements
Improving your home through a Remortgage could be the smartest thing to do, especially if you’re looking for a better mortgage rate anyway.
How does it work?
When you Remortgage / take out a product transfer, you are replacing your current mortgage deal with a new one. A Remortgage is when you swap deals through another lender and not your current one and a product transfer is when you swap products but stay with the same lender.
When Remortgaging for home improvements, you’re taking out another mortgage deal (through either way of remortgaging) to incorporate the costs for the intended home improvements. Your payments might be slightly more per month or your mortgage term may just extend for a few years or more. You may be paying more, but you end up with a lovely, new home extension.
The costs of home improvements
Not only does Remortgaging for home improvements give your property a makeover, but it may also save you money on all of the fees that are associated with Moving Home.
Home improvements will likely increase your property’s value too. When it comes to selling the property further down the line, this can become incredibly useful when you are trying to get more money for your property.
Whilst it can save money, it’s worth noting that home improvements come with some significant costs of their own. These can include:
- Planning permission
- VAT
- Architects plans/services
- Materials
- Builders
- Building regulation inspections
- An Emergency Fund – Just in case things don’t quite go to plan
When to speak with a Mortgage Broker in Manchester
In order to Remortgage for home improvements, you may need to release some equity within your property. You can do this at the point of Remortgaging.
Equity Release can be quite a specialist subject, so we would recommend that you speak with a Mortgage Advisor in Manchester before making any decisions. You may not even need to go down the equity release route so it’s best to find out whether you need to or not first.
You’ll need to speak with a Mortgage Broker in Manchester in order to get the ball rolling on something like this. Remortgages tend to go a lot smoother and quicker than the first time you took out a mortgage, so you’ll hopefully be enjoying a nice and easy process once you’ve been assigned your Remortgage Advisor in Manchester.
Seizing the opportunity
Here at Manchestermoneyman, we have Mortgage Advisors in Manchester working all throughout the day to help with our customer’s needs. If you’re looking to Remortgage your current property for home improvements or would like to further discuss the pros and cons of that versus moving home, get in touch and an advisor will run through all your questions.
Remortgage Advice in Manchester for Home Improvements
Fixed-Rate Mortgages | Mortgage Advice in Manchester
Fixed-rate Mortgage Advice in Manchester
What is a fixed-rate mortgage
The general rule of thumb in the mortgage world, is that the longer you fix your mortgage for, the higher the interest rate is going to be. Therefore, if you are looking for the lowest rate possible, you should really look for a short term fixed rates mortgage. The downside to a short-fixed term, is that your mortgage will be up for renewal quicker, meaning that when you come to Remortgage in Manchester, your monthly mortgage payments might be a lot more than they were previously.
Medium & long term fixed mortgages
If you don’t like the idea of searching for new fixed-rate deals every two years, but would rather not reach the point where interest rates go too high, then a medium-term fixed rate could be the best option for you and your circumstances.
Five-year fixed rates are popular choices, as they add the security of constant monthly payments for the foreseeable future. The downside here is that if interest rates drop whilst you’re locked in, you will end up paying more than you might have had to, if you had instead opted for a shorter period.
There are a limited number of 7 to 10-year fixed rates on the property market. These have always been the least popular choice for customers, due to the sheer length of the deal, as people tend to feel a decade is too long to be fixed in for a mortgage. These are also the most expensive fixed mortgage products available to customers.
Fees
In addition to the interest rates, you also need to take into consideration the booking and arrangement fees. A booking fee is payable upfront, whereas an arrangement fee is payable on completion. You might know people who have added fees to their mortgage amounts, but this increases the total amount repayable at the end.
Sometimes your financial circumstances suddenly change and you might have to repay your mortgage a lot earlier than you had initially planned for. This is called an ERC or an Early Repayment Charge. The ERC is calculated as a percentage of the amount that is still owed on the mortgage. So if say for example, mortgage amount you have left to pay is £200,000 and you are able to pay that off early, with a percentage that is 2%, you would have to pay back £4,000 to cover the broken fixed contract.
Many homeowners think that they can pay off their fixed mortgage early, without knowing about the Early Repayment Charge. You are tied into that deal and you can’t just jump out of it and pay it off early, unless you are okay with having a repayment charge added onto it. People who know about the charge may still choose to pay their mortgage off early to get a better deal that is currently on the market, especially if it is one that may not be available in a couple of months.
We would recommend that you avoid chasing after “headline” deals. You need to remember that the lowest rates come with the highest setup fees. Please Get in Touch today for more fixed-rate Mortgage Advice in Manchester. If you are still uncertain on them and need more help, our service could be truly beneficial to you.
Mortgage Advice in Manchester
Should I Pay Off my Mortgage Early or Invest?
Should I overpay my mortgage?
Whether a First Time Buyer in Manchester who’s looking to put their foot onto the property ladder, thinking of moving to Manchester or looking to Remortgage for Home Improvements, overpaying, even by a small amount, can make a big difference in the amount on the interest you pay back over your mortgage term. The earlier you start overpaying, the better the effects of your extra payments.
Is overpaying on your mortgage worth it?
Some homeowners choose not to down this route, and some cannot afford these additional payments. Sometimes it can come down to life gets in the way. In any case, overpaying is the ideal thing to do when you take out a mortgage, but in reality, there’s always something new and flashy we’d instead invest our money on rather make an extra payment on the mortgage.
The issue seems more likely just to be remembering to overpay your mortgage. It’s not something we imagine comes into your mind too often either, especially when your mortgage term is almost up.
Some people hope to overpay to retire early. If you feel like making additional payments, our recommendation is to set up a payable standing order to your lender each month. Set it up to go out on the same day as your regular mortgage payments.
An example of overpaying a mortgage
Suppose your monthly mortgage payment is £450 per month and goes out on the 2nd of each month. You can afford an extra £85 per month and want to put that towards your mortgage payments. Set up a standing order of £85 to go out to your lender on the 2nd of each month too.
One of the perks of this is your mortgage payments will then total at £535, and because it’s going out as a regular payment, this will feel and later become the norm for you. Another perk is that whereas the receiver controls a direct debit, standing orders, the payer is in total control.
The good news is if you have a financial emergency and don’t want it to go out this month? Simple, all you need to do is log into your online banking and cancel the payment.
Whilst it would be a shame to have to stop making additional payments, at least you’ll receive those benefits thus far; depending on the lender, you may even be allowed to arrange reduced monthly costs or take a ‘mortgage payment holiday’ if you’ve been overpaying for some time. It’s essential to check with lenders, though, if you’re looking to do this; otherwise, it could negatively affect your credit report.
Overpaying is a great habit to have, but it’s not obligatory. If you don’t feel the need to, you don’t have to. That said, shaving off a year or two off your mortgage term will be something you’ll benefit from significantly.
