What Does Remortgage Mean?

Remortgage Advice in Manchester

If you have just bought your first home in Manchester and your current mortgage deal is ongoing, you may not have heard of a remortgage before. On the other hand, if you have been living in your property for a long period of time, you may have a rough idea of what remortgage means and when the point of remortgage is.

Defining a Remortgage in Manchester

Remortgaging, also known as financing, is simply the process of taking out a new mortgage deal with a new lender to replace your current product. Usually, a remortgage takes place when your current deal is coming to an end.

Key Elements of Remortgaging in Manchester

Let’s take a look at the main parts of a remortgage and how the process works.

Changing Mortgage Lenders

When you remortgage in Manchester, you will be taking out a product with a new lender. Taking out a new product with a different lender could help you potentially open yourself up to products with better interest rates. As a mortgage broker in Manchester, we also see that homeowners remortgage in Manchester for better customer service, more favourable mortgage terms and excess specialist products that their current mortgage lender does not offer.

Renegotiating Terms

If you are happy with your current mortgage but want to slightly alter the terms of the product, remortgage is an option. Remortgaging could allow you to extend or shorten your mortgage term or even change products completely, such as a switch from a fixed rate to a variable rate!

Releasing Equity

For those looking to take money out of their home, remortgaging to release equity is a viable option. If your current lender is not letting you take equity out of your home through a remortgage, other mortgage lenders may allow you to do so. There are many specialist lenders out there that offer products that can allow you to do this. Our team at Manchestermoneyman will be more than happy to help you explore equity release in Manchester and look at your options with you.

Reasons to Consider a Remortgage in Manchester

Now that you know what a remortgage means, let’s look at some reasons why people will want to remortgage in Manchester.

Avoid Lender’s Standard Variable Rate (SVR)

When you are approaching the end of your fixed mortgage term, if you do not remortgage, you will fall onto your mortgage lender’s standard variable rate of interest (SVR). It is more than likely that this rate is much higher than the current rate you have been paying. When you remortgage, you are taking out a new product and will avoid falling onto the lender’s SVR.

Lower Interest Rates

Linking with the reason above, searching around for a new remortgage product could allow you to access better rates of interest. In turn, this would reduce your monthly mortgage repayments.

As a mortgage broker in Manchester, it is our job to help you find the perfect remortgage product for your personal and financial situation. We will always try and save you time and money where we can!

Repayment Flexibility

Remortgaging can allow you to modify your mortgage repayment structure. Homeowners do this to make their payments more manageable. This could mean switching the type of mortgage they have on their property or shortening/extending their mortgage term.

Home Improvements

If you feel as if your home could do with some improvements, you may be able to incorporate some of the costs of these improvements into your mortgage. This is done via a remortgage for home improvements. The way that this works is that you would add the costs of the works to your total mortgage amount and then your monthly repayments will go up each month to accommodate the costs of the works. Depending on the work you’ve done, your payments may only rise by an extra £30 or £50.

Debt Consolidation

If you have built up debt, such as credit card balances or personal loans, you may be able to remortgage to consolidate this debt into your mortgage. It could make paying off your debt a little more manageable. We would always recommend speaking with an expert mortgage advisor in Manchester before consolidating debt into your mortgage, there are other options to explore first before doing this.

Accessing Equity

Your property value will likely increase over time. Remortgaging may allow you to access this extra equity in your home. Equity is essentially just how much money you have put into your home/mortgage, and you can withdraw a portion of this equity and use the cash as you like! We see that people use the money for all sorts of things, such as buying a new car or booking a holiday.

Speak to a Mortgage Advisor in Manchester

Remortgaging can be a complex process and getting remortgage advice in Manchester could help you find the perfect remortgage product. We are able to search through 1000s of remortgage products on your behalf to find a deal tailored to your personal and financial situation.

Remember to do your research, don’t rush into any deal and get the remortgage advice in Manchester that you need!

How Soon Can You Remortgage in Manchester Before Fixed Rate Ends?

Timing is key when considering remortgaging in Manchester before the conclusion of your fixed-rate mortgage deal. Our recommendation is to begin this process approximately six months before your current mortgage arrangement expires.

This well-timed strategy ensures a smooth transition to your new mortgage deal, seamlessly taking over just as your old one is about to conclude. This approach minimises any potential financial disruptions and helps maintain your financial stability.

Understanding Fixed-Rate Mortgages in Manchester

Before we delve into the timing considerations of remortgaging in Manchester, let’s take a moment to explain the concept of a fixed-rate mortgage.

A fixed-rate mortgage offers a steady and unchanging interest rate over a predetermined term, typically spanning two to five years. This stability in the interest rate provides borrowers with financial predictability, making it easier to manage their budgets.

Can You Remortgage in Manchester During a Fixed-Rate Term?

Certainly, remortgaging in Manchester while you’re still in the midst of a fixed-rate period is possible, but there are some important factors to keep in mind:

Early Repayment Charges (ERCs)

Fixed-rate mortgage agreements frequently come with Early Repayment Charges (ERCs). These charges are applied when you repay or remortgage your mortgage before the fixed-rate period concludes. ERCs are usually calculated as a percentage of your remaining mortgage balance.

It’s worth noting that this percentage tends to reduce as you approach the end of your fixed-rate term. This can make remortgaging a more financially viable option as you get closer to the term’s conclusion.

Timing Matters

To mitigate Early Repayment Charges (ERCs), many borrowers choose to remortgage in Manchester during the later phases of their fixed-rate period, aligning with the suggested six-month timeframe.

As your fixed term nears its conclusion, ERCs tend to decrease, lessening the financial burden of remortgaging. Nevertheless, it’s advised that you consider the time needed to secure a new mortgage deal and ensure a seamless transition.

Lender Policies

Lenders have diverse policies regarding remortgaging in Manchester within a fixed-rate period.

Certain lenders permit you to initiate the process as early as six months before your fixed rate concludes, while others may have different timeframes. It’s very important to review your lender’s terms and conditions to understand their specific policies and timelines.

Market Conditions

Stay vigilant about the current mortgage market conditions. If interest rates have substantially decreased since you secured your fixed-rate mortgage, it might be beneficial to consider early remortgaging in Manchester, even if it incurs ERCs.

The potential savings from lower interest rates can potentially outweigh the costs associated with ERCs.

Remortgaging Benefits in Manchester

Remortgaging while in the midst of a fixed-rate period can offer several compelling advantages. Firstly, if market interest rates have fallen since you initially secured your fixed-rate mortgage, you may have the opportunity to secure a new mortgage deal with a lower interest rate.

This can translate into tangible savings through reduced monthly payments, making it an attractive option for homeowners. Additionally, remortgaging during a fixed-rate period allows for the renegotiation of mortgage terms.

This means you can tailor your mortgage to better align with your evolving financial goals. Whether it involves transitioning from a fixed-rate to a variable-rate mortgage or adjusting the repayment period, this flexibility can be a valuable financial tool.

Furthermore, as property values tend to appreciate over time, remortgaging provides the means to tap into this accrued equity.

Whether you’re looking to undertake home improvements, consolidate debt, or address other financial needs, the equity in your property can be a valuable resource that remortgaging in Manchester can unlock.

In summary, remortgaging during a fixed-rate period can be a strategic move to capitalise on lower interest rates, improve mortgage terms, and access your property’s equity for various financial purposes.

The Remortgaging Process in Manchester

When considering remortgaging during a fixed-rate period, it’s crucial to start with a thorough assessment of your current mortgage terms.

This includes examining factors like the interest rates on your existing mortgage and the potential Early Repayment Charges (ERCs) you might incur. Simultaneously, it’s essential to have a clear understanding of your broader financial objectives.

Following the assessment, the next step involves conducting comprehensive market research. This entails exploring the various mortgage deals and lenders available in the market. The objective here is to identify a remortgage option that seamlessly aligns with your specific financial goals and preferences.

Once you’ve identified a suitable remortgage deal, it’s time to initiate the application process. During this stage, you’ll be required to submit your application and provide the necessary financial documentation that supports your request.

Subsequent to your application, the lender you’ve selected will arrange for a property valuation. This valuation is instrumental in determining the current market value of your property, which, in turn, plays a pivotal role in establishing the Loan-to-Value (LTV) ratio.

Following approval from your chosen lender, the final phases of the remortgage process come into play. Your existing mortgage will be settled, and the terms of your new mortgage agreement will be put into effect.

This ensures a smooth transition to your selected mortgage terms, potentially offering advantages like lower interest rates or improved financial flexibility.

Seeking Professional Mortgage Advice in Manchester

Remortgaging can indeed be a multifaceted process with significant financial implications, which is why consulting a qualified mortgage advisor is highly advisable.

These experts can provide you with invaluable guidance, thoroughly assess your unique circumstances, and empower you to make well-informed decisions regarding the timing of your remortgage in Manchester.

A strategic approach to remortgaging involves timing it approximately six months before your fixed-rate mortgage deal concludes. This careful timing aims to facilitate a smooth transition to a new mortgage arrangement while allowing you to minimise the impact of early repayment charges (ERCs).

Simultaneously, it offers the potential benefit of securing a new mortgage deal with lower interest rates and more favourable terms. As with any substantial financial decision, seeking remortgage advice in Manchester can prove to be an invaluable step.

Their insights and knowledge can ensure that your remortgaging journey is not only seamless but also financially advantageous.

Do You Need a Deposit to Remortgage in Manchester?

When considering remortgaging in Manchester, it’s not unusual for homeowners to question whether a deposit is a prerequisite. After all, deposits are typically linked to buying a new property, not to the process of refinancing an existing mortgage.

Understanding the Basics: What is a Remortgage in Manchester?

Before we delve into the topic of deposits concerning remortgages, it’s important to gain a comprehensive understanding of what a remortgage in Manchester entails.

In essence, a remortgage involves the process of either transferring your existing mortgage to a new lender or renegotiating the terms of your current mortgage with your existing lender.

Individuals contemplate remortgaging in Manchester for a multitude of reasons, ranging from securing a more favourable interest rate to exploring the potential of releasing equity through the remortgage route or adapting their mortgage type to better suit their changing financial circumstances.

The Role of a Deposit in Remortgaging in Manchester

The reassuring news is that, for the most part, remortgaging in Manchester doesn’t necessitate a deposit. Unlike the process of buying a new home, where a deposit is typically required to secure a mortgage, remortgaging primarily hinges on the equity you’ve accumulated in your existing property.

Leveraging Your Home Equity

When you embark on the journey of remortgaging in Manchester, the equity in your home takes centre stage. Equity signifies the share of your property’s value that you fully own, and it steadily grows as you consistently make mortgage payments.

To illustrate, consider your home’s current valuation at £300,000. If your remaining mortgage balance stands at £200,000, your equity amounts to £100,000. This equity is a valuable asset that can open doors to various remortgaging opportunities.

The Loan-to-Value Ratio (LTV)

Rather than relying on a deposit, remortgages in Manchester are commonly determined by an important metric known as the loan-to-value (LTV) ratio.

The LTV ratio assesses the sum you plan to borrow in relation to your property’s current market value. In Manchester, many homeowners strive for a lower LTV, as it often leads to more attractive remortgage options.

Deposit for Specific Remortgage Situations

While most standard remortgages in Manchester don’t necessitate a deposit, there are specific situations in which it could become relevant:

Adverse Credit History

If you have a history of credit issues, it’s conceivable that some lenders may request a deposit as a precautionary step to mitigate risk. This deposit acts as a security measure, offering assurance to the lender in case of potential payment challenges.

Releasing Equity

If you’re considering a remortgage in Manchester with the aim of releasing a significant amount of equity, it’s important to be aware that some lenders may request a deposit as a means to manage their financial risk.

This additional deposit serves as a mechanism for lenders to limit their exposure when you’re unlocking a substantial portion of your property’s equity.

Additional Considerations

It’s vital to keep in mind that the remortgage process comes with various associated costs, such as arrangement fees, valuation charges, and legal expenses. These expenses should be factored into your decision-making process as you weigh the pros and cons of remortgaging.

Speaking with a Mortgage Advisor in Manchester

When it comes to navigating the intricacies of remortgages in Manchester, the process can often appear complex. Therefore, the most important step to take is to seek guidance from a qualified mortgage advisor in Manchester.

An experienced mortgage advisor in Manchester possesses the expertise needed to meticulously evaluate your unique circumstances. They can help you in identifying the most suitable remortgage solution and provide invaluable guidance throughout the entire process.

In summary, it’s essential to understand that the majority of remortgages in Manchester typically do not require a deposit. Instead, the pivotal factors in this process revolve around your existing equity and the loan-to-value ratio.

To ensure a seamless remortgage experience tailored to your specific needs, it is definitely recommended to seek remortgage advice in Manchester.

They will conduct a comprehensive assessment of your financial situation, explore various options, and work diligently to secure the most advantageous remortgage deal on your behalf.

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.

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!

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.