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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 do lenders look for on bank statements | MoneymanTV

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 do lenders look for on bank statements | MoneymanTV

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.

That next step will be to take out a property survey, as a means of establishing what 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 survey available to home buyers.

  1. Mortgage Valuation
  2. Homebuyers’ Report
  3. Full Structural Survey

Mortgage Valuation

A Mortgage Valuation survey will consist of 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 this 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 a 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 on the condition of the property and highlights 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.

What is a Fixed-Rate Mortgage? | MoneymanTV

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?

Should I pay off my Mortgage Early or Invest? | MoneymanTV

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.

 

Product Transfer V Remortgage

What is product transfer?

When your initial mortgage deal reaches the end of it’s term, your mortgage lender may offer you a newer, revised deal to stay on their books. In the mortgage market, this is what is known as a Product Transfer.

It’s important to remember, however, that you are under no obligation to agree to this deal. If you wish to leave that lender and look at your options elsewhere, you are well within your right to do so. It is highly likely that you will find much better deals out there through another lender, one that is more beneficial for your personal and financial circumstances. It’s just the case of finding that works well for you and what you’re looking to do going forward, an area of which your Mortgage Broker in Manchester may be able to help.

Are you rewarded for being loyal?

Whilst the concept sounds ideal on paper, lenders will unfortunately not reward you for your loyalty towards them. Whether you have been a customer for 5 years, 10 years or 50 years, the reality will stay the same. Lenders have even been known for offering new First-Time Buyers in Manchester customers better rates than they tend to offer customers who are already undertaking a mortgage with them.

This is one of the many reasons why it is recommended that you shop around and looking for more competitive deals. Though this can be achieved off your own back, you may find yourself benefitting from utilising the help of an expert Mortgage Advisor in Manchester. As a trusted and experienced Remortgage broker in Manchester, we are able to work with a large variety of different lenders on panel that we have access to, allowing us to find you the most appropriate and favourable mortgage deal for your circumstances.

We often find that usually, our customers can get better rates and they are missing out those opportunities because it’s more ‘convenient’ to stay with the lender you already know and are currently using.

Tempted by an online switch?

Whilst the process of swapping from an existing deal over to a new deal with your current lender may seem straightforward online, we always believe it is incredibly beneficial to see what other deals you may be eligible for. Lenders will also try to tempt customers to go with a new deal online, without that customer actually taking any professional mortgage advice, leaving some customers aware they could have ended up with a better deal.

The lender not providing advice to online switches is rather dangerous, as without professional advice, you are essentially saying goodbye to all the valuable consumer protection you would have benefitted from had you been given that option initially. Rushing into something like this headfirst is absolutely not recommended. Please take a step back and analyse all of your options prior to making a final decision on what to go with going forward.

All customers who contact us for mortgage advice in Manchester will benefit from a Free Mortgage Consultation. Once we have your information keyed in, we will pass you onto a Mortgage Advisor in Manchester who will talk you through all of your mortgage options and work with you to try and ensure you end up with the most appropriate deal available to you, based on your personal and financial circumstances.

You’ll be opting out of advice

We have seen various different examples of customers over the years, being affected these “follow-on” deals and ending up being locked into an inappropriate deal. Lenders like it when you choose not to go with advice, as it invalidates any future complaints due to you taking your own path and neglecting to take any advice. In their minds, this way you only have yourself to blame for any displeasure with your deal.

We have seen this happen in the past with our customers. In one particular case, we saw someone declined for a small further advance, which was intended to fund some necessary home improvements down the line. This customer then had to pay a rather large early repayment charge to change over to a new lender who would grant her the additional required funds.

Always get mortgage advice

You may expect that we would recommend using a mortgage broker in Manchester, but we only do so with the intent of making sure you are fully equipped for the mortgage process. If handled without a mortgage advisor in Manchester to back you up, you could find yourself in a rather troubling situation. We only ever have your best interests at heart!

Even though this is the case, it doesn’t necessarily mean that we will tell you to switch. If we feel that your best option is to go with a Product Transfer, we will recommend that you take action and take up the deal whilst you still have that option available to you.

Regardless of these paths, even if your requirements seem straightforward, we always recommend you take mortgage advice in Manchester. A second opinion costs nothing and making a mistake when taking a new product can cost you a lot of time and money.

The Remortgage market is a very competitive part of the mortgage market. Savings can often be made by searching the market for a new deal with the assistance of a mortgage advisor in Manchester. Getting help from an experienced Mortgage Broker in Manchester could be the most beneficial option, especially if your financial or personal circumstances have changed since your initial mortgage process was underway.

If you require any further Product Transfer advice or Remortgage Advice in Manchester, feel free Get in Touch with your Mortgage Broker in Manchester.

Divorce & Separation Mortgage Advice in Manchester

Specialist Mortgage Advice in Manchester

The thought of separating from a partner can be quite upsetting. Unfortunately, if things don’t work out and you end up in this situation, there will be lots of things that you will need to sort out, one being your financial situation. If you are financially linked with one another, you may need to try and remove that link so that you are financially independent. This isn’t as easy as it sounds; removing your financial links from others can sometimes be complicated.

An example of a financial link to another person is a joint mortgage. Joint mortgages are mortgages in multiple names, so in this example, the mortgage would be in your’s and your ex-partner’s name. Usually, when people separate, both parties will want to have their name removed from the mortgage. Depending on your situation and your ex-partner’s situation, this can be achieved in different ways.

Divorce & Separation Mortgage Advice UK | MoneymanTV

Divorce & Separation Mortgage Advice in Manchester

If you are going through a divorce or separation in Manchester, it’s never going to be easy. As a Mortgage Broker in Manchester, we’ve seen lots of different situations where a divorce or separation has impacted a mortgage. When people come to us for specialist help, we usually receive the same questions:

  • How do I remove my ex-husband/wife from my mortgage?
  • How do I remove my name from my ex-partner’s mortgage?
  • Can I have two mortgages?

How do I remove my ex-husband/wife from my mortgage in Manchester?

When you are trying to remove your ex-partner’s name from a mortgage, things can get a little tricky. It isn’t just as simple as asking your lender “can you take their name off the mortgage?”, your ex-partner has to agree with it and your lender will have to determine whether both you and your ex-partner will be financially stable after the name is removed.

Firstly, before your ex-partner’s name is removed from the mortgage, you will have to demonstrate your ability to pay the mortgage payments on your own. This also means that you aren’t allowed any help from your ex-partner, whether or not they’ll let you remove another name depends on whether your sole income allows you to meet the mortgage payments. You should also know that at the point of your application, you both were associated with the deal, therefore if you fall into arrears, the lender can pursue either of you.

Typically, if you are trying to remove your ex-partner’s name from a mortgage, you are going to remain living inside of the property. We find that if there are children involved, it’s usually the case that the mother stays inside the family home, however, regardless of gender, it’s entirely up to you to decide who carries on living on within the property.

In the past, we have seen struggling customers have family or friends who were willing to step in and offer a helping hand. If you have this option available and you can get someone to help you with your mortgage payments, the lender may be more likely to accept your application to get your ex-partner removed.

How do I remove my name from my ex-partner’s mortgage?

Depending on your situation, it can sometimes be easier to remove your own name from a mortgage. From our experience, if you’re removing your own name from a mortgage, it’s likely that you are the person planning to move out of the property. If you move out of the property before being removed from the mortgage, you should know that you are still liable for the mortgage payments. This is still the case even if you have made an arrangement with your ex-partner that you will not contribute to any of the payments.

If you are still tied into a mortgage with an ex-partner and you try to get another mortgage, you should know that your chances of being accepted might be lowered. A lender may be put off if they can see that you are linked with another mortgage that you still hold accountability for. If you manage to remove yourself from the mortgage and you can evidence that you’ll be able to meet your mortgage payments, you will stand a higher chance of being accepted by them.

As a Specialist Mortgage Broker in Manchester, we deal with situations like this all of the time. Occasionally, there is someone, perhaps a new partner or family member, willing to offer a helping hand. If you are lucky enough to be in this situation, the lender may be more likely to accept your application for a new mortgage despite you being linked to another one.

Lenders will always consider both sides of the argument. They will look at whether your ex-partner can successfully afford the payments on their own or whether they still need your help. On the other hand, they will also look at your situation, will you be able to manage a mortgage on your own? When they are making this decision they will factor in your current mortgage payments and see if you were handling them okay too.

Some lenders may be more generous when it comes to the amount they’re willing to lend you compared to others. A Mortgage Broker in Manchester like ourselves is specialised in this area, we know what lenders are looking for in applications and which lenders offer these specialist products suited for your situation. We have access to thousands of mortgage deals across our panel of specialist lenders in Manchester.

Can I have two mortgages?

Although it’s entirely possible to obtain two mortgages (or more in some cases), a mortgage lender will only lend you a second mortgage if they are certain that you’ll be able to manage both of them.

When going through a divorce or separation and you are linked to a mortgage with your ex-partner, even if you aren’t contributing towards the mortgage payments, you are still financially tied with it and therefore you may oppose a threat to lenders. If your ex-partner fails to meet their payments, the lender has the complete right to pursue you to get money off you. This is why if you are planning to get a second mortgage, yet are still paired to another deal, your chances may be lowered of being accepted for a mortgage.

We are not saying that it’s impossible to get a second mortgage when you are linked to an ex’s mortgage, it may just be a little harder. It’s more likely to be made possible through the use of specialist lenders and a good credit score. If you decide to get Specialist Mortgage Advice in Manchester, you could get a bigger picture of your situation and all of the options available to you.

Of course, you could go directly to your bank, however, if you think smartly and approach a divorce and separation mortgage specialist, you may get the ball rolling a lot quicker and could be looking at deals in no-time. Our mortgage service includes calculating how much you could borrow, working out a budget for you and how much deposit you’ll need to put down.

Moving on from previous joint financial commitments can be quite difficult. Just bear in mind that as far as lenders are concerned, it’s all about the risk. They ideally look to avoid repossession situations at all costs. For further Specialist Mortgage Advice in Manchester, get in touch with our fantastic mortgage team today.

Mortgage Advisor in Manchester

Looking to get a Secured Loan in Manchester?

Second Charge Mortgage Advice in Manchester

Officially known by the name of a “Second Charge Mortgage”, a Secured Loan is effectively an additional mortgage alongside the one you already have, though with interest rates that are higher than the standard amount. This is common with people who are wanting to borrow more than their current lender is willing to lend them.

The reason that these interest rates tend to be higher, is because in the event of arrears and an eventual repossession, the provider of the Secured Loan, the second lender that you borrowed from, must wait for the original provider, the first lender that you borrowed from, to sell the property before getting their money back.

The second lender knows that there is a much higher risk of things going wrong and them not making money back, hence why they opt to charge higher rates of interest. Whilst this is often known as an expensive “last resort”, they can often be incredibly helpful for certain situations.

What is a Second Charge Mortgage? UK | MoneymanTV

If you need to raise money against your property, there are 3 main options:

  1. Borrowing more money from your existing lender.
  2. Moving to a new lender via the route of a Remortgage.
  3. Taking out a Secured Loan (Second Charge Mortgage).

When taking out a Second Charge Mortgage, your first mortgage stays exactly the same. The new amount is borrowed from a different lender and a separate direct debit. When it comes to paying these amounts back, the first lender will always take priority and the second lender will usually get whatever is left. If the property sells for enough and has enough equity in it to cover both the first and second charge, with some left over, you get to keep some of it.

The length of this new amount varies, as you could take it out over a shorter or longer-term than your main mortgage. If you’re only in need of a small amount, you may benefit from looking at unsecured borrowing instead of a second charge.

Some of the main reasons people take out additional borrowing are:

  • Home improvements.
  • Injecting cash into businesses.
  • Paying for school fees.
  • Cosmetic surgery.
  • Paying for a wedding/honeymoon/special anniversary/holiday.
  • Debt consolidation.
  • Purchasing cars or other vehicles.
  • Paying tax bills.

Reasons why a Second Charge Mortgage may be the most suitable option:

  • Your current mortgage rate is low or interest-free and you’d like to keep it.
  • Due to early repayment charges, you’re looking to stay away from Remortgaging.
  • You need to raise funds very quickly.
  • You are recently self-employed.
  • Your income comes from multiple sources.
  • Since you last took a mortgage your credit rating has dropped.
  • Your current lender disallowed a further advance application.
  • You’re raising funds for an unmortgageable property.
  • You are looking to raise capital against your UK property to purchase foreign property.
  • You’re looking to raise funds and would prefer a different lender.
  • You need capital to pay business tax liabilities.

Secured Loan Mortgage Advice in Manchester

Can I Get a Mortgage With Bad/Adverse Credit in Manchester?

Can I Get a Mortgage With Bad Credit? | MoneymanTV

Bad Credit Mortgage Advice in Manchester

Adverse credit can happen far too often, and it’s not an uncommon approach for clients to come to us for Specialist Mortgage Advice in Manchester when they have a missed payments or have a lower credit score than is acceptable.

If you have missed one of your monthly mortgage repayments or something considered relatively minor, such as a missed payment to a mobile phone provider, you could get faced with a default attached to your credit report, which can harm your ability to obtain a future mortgage, as the lender with seeing it as a strong indication that you are a risk.

The good news is that missing any monthly payments or any amount of defaults will not necessarily mean you can’t get a mortgage, but you may need specialist help. The reason for this is that it is reasonably likely you will get turned down for a mortgage by a High Street Bank who may be risk-averse, especially if you only have a smaller deposit for the property you have your eye set on.

Specialist Lenders will want to know when the default got registered against you, and the further away you are from that specific date, the more likely it is that we’ll be able to provide some form of help if it was down to a life event such as separation, ill health or an untimely redundancy. People make mistakes when they are young, and they can feel that these financial mistakes cause trouble down the line.

We may also be able to help if you have had historic mortgage arrears or a County Court Judgement.

Credit Score Mortgage Advice

Bad Credit Mortgage FAQs

Below, we have gathered some helpful answers to common mortgage scenarios regarding Bad Credit Mortgages in Manchester & surrounding areas.

What will my mortgage advisor in Manchester need to see?

No matter the type of credit problem you have had in the past, your advisor will need to see an up-to-date copy of your credit report, which you can obtain online completely free of charge.

It’s vital that you obtain your credit report before deciding to apply for a mortgage, especially if you have been having any doubts about your credit history. The reasoning for this is that undertaking multiple unnecessary credit searches can further damage your credit rating.

I have a good income but bad credit. Can I still get a mortgage?

The answer to this depends entirely on your circumstances. Some customers may be a little perplexed when it comes to the impact of their credit. It may look bad, they may have had something flag up and cause problems, but they have a sufficient income & enough deposit to reduce a rate and get a favourable mortgage. Why won’t lenders allow them to borrow a specific amount for a property? Ultimately it all comes down to risk.

The lender needs to have the utmost confidence that you can pay back your mortgage payments without the likelihood of any form of arrears occurring. If the unfortunate happens, your home may get repossessed, which they definitely would prefer to avoid. Though it might sound rather complicated, there are still plenty of routes to take for people looking to get a mortgage with bad credit, even if those routes may incur slightly higher rates. Getting in touch with a dedicated Specialist Mortgage Advisor in Manchester like us will be the most appropriate next step to finding your way towards a potential tailored mortgage to your circumstances.

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

Sometimes, you may find yourself financially struggling and unable to keep up the mortgage payments you previously had no trouble paying for reasons you may not exactly have control over. These circumstances are not an ideal place to be. Whilst it could be a momentary lapse for a month, one that you can pay back in no time, your record will show it as a missed payment.

There may be other credit issues too during this period, and when it comes to getting a Remortgage at the end of your term or a new mortgage after Moving Home in Manchester, you may find yourself in a spot of concern. Again, this will always end up coming back to the risk. Can the lender trust you not to find yourself in this situation also?

The good news is, we have had lots of experience helping customers who have found themselves with bad credit, especially when they’ve previously had or currently have a mortgage. If you feel like you are in this situation, then getting in touch with a committed Mortgage Broker in Manchester will be crucial to help you with your mortgage journey.

What other types of adverse problems are customers faced?

Customers may find themselves with all kinds of different adverse problems regarding their credit, all of which can harm their mortgage process. These issues vary from, but are not limited to;

🏠 Missed Mortgage Payments.
🏠 Credit Card or Loan Defaults.
🏠 County Court Judgements (CCJ’s).
🏠 Bankruptcy.

Whilst these are all unfortunate situations to find yourself in, it’s not the end of the road. The process may take longer, there may be more hurdles on your path, and you may end up on a higher rate, but there are specialist lenders out there, some of which we have on the panel, who will accept you depending on what your circumstances are.

To increase your chances of success and open yourself up to better rates, we highly recommend that you take a look at improving your credit score. We have a helpful, in-depth mortgage guide that we’ve written on How to Improve Your Credit Score, which will hopefully put you in a better place for obtaining a mortgage at some point down the line.

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UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
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