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. 

Our 10 Step Mortgage & Home Buying Guide for First-Time Buyers

In this article we have put together a list of the 10 steps involved in the mortgage process for First-Time Buyers in Manchester, so that you can be as prepared as possible ahead of your very own mortgage journey.

There are 10 steps to the process of home buying and obtaining a mortgage. These are as follows;

• Free Mortgage Consultation
• Mortgage Affordability Assessment
• Agreement in Principle 
• Find A Solicitor
• Make an Offer
• Submit Your Documents
• Formal Mortgage Application
• Valuation/Survey
• Mortgage Offer
• Completion

First Step: Get in Touch for Your Free Mortgage Consultation 

You’ve decided to take the big leap and purchase a home, taking out a mortgage as a First-Time Buyer in Manchester. Without a doubt, this is going to be one of the biggest financial decisions you ever make in your life. Upon this realisation it can be a little jarring, especially when you have no experience in this area at all.

Here is where a dedicated mortgage broker in Manchester can jump in and help you along the process. The goal of our team is to take the stress away from you, working hard to ensure you come out the other side with a mortgage and your first home, happy and deal that works in your favour.

Once you Get in Touch with us, we’ll book you in for a free initial mortgage consultation with one of our very experienced and trusted mortgage advisors in Manchester. At this point, we’ll take your details and look at what you’re planning to do, before starting off your mortgage process.  

Second Step: Mortgage Affordability Assessment – How are you doing Financially? 

Something your advisor will be able to run through in your free mortgage consultation, is a Mortgage Affordability Assessment. This is a quick process where your dedicated mortgage advisor will run through your monthly income and regular expenditures (looking at what you spend your money on), to determine whether or not you have the financial means to afford the monthly repayments of the mortgage amount you’re looking to borrow from a lender.

It is very important for us to do this before putting you forward with a lender, as we need to be confident that you can definitely afford your repayments. This helps to avoid the risk of arrears and any future repossessions that could occur, something the lender will really want to try and avoid themselves if it can be helped.

A Mortgage Affordability Assessment will also usually be undertaken by a lender, so the initial checks we undertake will help save the time of the lender, ourselves and more importantly you, from an application that may be declined later down the line if you fail on affordability.

Third Step: Obtaining a Mortgage Agreement in Principle

Following on from this, the next step in your consultation will be to obtain you a document called a Mortgage Agreement in Principle. If you’ve been doing any research on mortgages prior to receiving First-Time Buyer Mortgage Advice in Manchester, you may have seen this under some different names. These usually include the names ‘Decision in Principle’, ‘Mortgage in Principle’, as well as the abbreviations ‘DIP’ & ‘AIP’. The only difference between them is the name. Other than that, they all do the same thing.

The reason you need a Mortgage Agreement in Principle is to provide a record that you have passed a lenders initial credit scoring system, either via a hard credit search (which leaves a footprint on your credit file) or a soft credit search (which does not leave a footprint on your credit file).

There is still no guarantee you will be accepted on a mortgage, but is a step you must take on your way towards your end goal. Another benefit to you having this document, is that it will show the seller of a property that you are very serious, possibly creating room for price negotiations with them when it comes to making an offer.

A typical AIP will usually last anywhere between 30-90 days, and once it has expired, can be easily renewed. Our team can usually get one of these turned around for you within 24 hours of your initial consultation with an advisor.

Fourth Step: Finding the Right Solicitor 

After you have obtained your Agreement in Principle, you will need to find yourself a Conveyancer to help you with the legal proceedings of the homebuying process. The term Conveyancing is given name for the transfer of legal ownership of property between parties, whether you’re the buyer or seller.

Your Conveyancing Solicitor will be able to handle contracts, give any necessary legal advice, conduct local council/authority searches, help sort out Land Registry and lastly transfer the funds you have acquired in order to pay for the property you wish to purchase. As is surely clear from the tasks involved here, this is a vital role in your process, so you must make sure you carefully make your choice.

Another point that should be made here, is that Licensed Conveyancers are property specialists and can’t deal with complicated legal issues, whereas more general Solicitors offer a full range of services so can often seem more costly. Whilst we do not offer these services ourselves in-house, we have a list of trusted companies that we will gladly be able to refer you out to, should you ask for this.

Fifth Step: Making an Offer on a Property 

You’ve now spoken to a fast & friendly Mortgage Broker in Manchester, passed the Mortgage Affordability Assessment, obtained an Agreement in Principle and found yourself a Conveyancing Solicitor to help process the legal side of your home buying journey. This means you’re halfway there! Your next step is to make an offer on a property!

As touched upon previously, with an Agreement in Principle in hand, you will be in a much better place to negotiate with the seller regarding price. Make sure not to “low-ball” the seller with an insulting offer, but don’t be afraid to ask for a lower price. Knowing you have an AIP with you, the seller will be more likely to accept your offer than someone who is willing to pay the asking price but hasn’t even begun to prepare themself.

The worst thing that can happen is if the seller says no, but it’s at that point you can work out a more reasonable offer for both of you or walk away and find yourself another property with a better suited price. Once you’ve had an offer accepted, it’s back to your mortgage advisor and onto the last leg of your mortgage journey.

Sixth Step: Submit Your Documents 

Onto an important step, in submitting the required documents to proceed with your mortgage. As you might have expected when such a large amount of money is involved, a mortgage lender will not just lend to anyone who asks for a mortgage. They’ve done this in the past and things didn’t work out too well.

The mortgage lender will need you to provide various documentation to prove that you are the right person, the amount you earn from your current career, where your current residence is and how well you conduct your finances monthly. If you’re obtaining a joint mortgage, they will require this same documentation from each parties involved.

The types of documents you will need to submit, include; proof of identification, proof of address, the last 3 months’ of your pay slips and latest P60 (employed), the last 3 years’ proof of earnings and Tax Year Overviews (self-employed in Manchester), proof of any income such as state benefits or maintenance, proof of deposit and the last 90 days of your personal bank statements. 

Seventh Step: We’ll Progress Your Mortgage Application 

With your mortgage agreed in principle, and having an offer accepted, we can now proceed to submit your full mortgage application. With everything prepared and checked by your hard working Mortgage Advisor in Manchester & their team of Mortgage Administrators, we are ready to submit an application to the lender in hopes of getting you a mortgage.

Your advisor will send off all the collected evidential documentation for this, and then all that is left is to wait for them to respond with either an accepted application or a declined one. Whilst there is no given time frame, our Mortgage Administration team will be able to chase the lender for an answer on this for you, until it has been made clear.

Eighth Step: Property Valuation / Survey 

In-between your mortgage application and being offered a mortgage, the lender will require that your property have a valuation survey taken out on this. These are usually carried out by accredited companies nominated by the lender (someone whom the lender will trust).

The reason they do this is to understand the true value of the property, versus what you’ve agreed to pay for it with the seller. If you’re paying above its actual market value, the lender may be less willing to accept your offer. This is because they will most likely be out of pocket and unable to make back the full borrowed amount, if you happen to fall into arrears at any point. This is usually referred to as a ‘Down Valuation’.

There are various types available when it comes to surveys, with variances in the prices of each of these. Some will just want to check how much the property is worth, whereas some will also provide information on any structural concerns, as well as possible repairs that you may need to lookout for in the future. Your Mortgage Advisor in Manchester will be able to help you out, choosing the right survey for you.  

Ninth Step: Receiving Your Mortgage Offer 

Now it is time for the moment you’ve been waiting for since Step One. Your lender has checked over your case and performed an assessment of all the evidencing documentation. Once this is done, they will present you with your Mortgage Offer.

Our team of friendly Mortgage Advisors and Administrators in Manchester, that you’ve no doubt become friendly with over the course of your process, will check over the offer on your behalf to ensure everything is correct and right for you. Then after your mortgage offer has been received, it’s down to your Conveyancing Solicitor to take your purchase from that point, through to completion. 

Tenth Step: Completing The Process 

Congratulations, you’ve now officially gone from First-Time Buyer in Manchester to a full fledged First-Time Homeowner in Manchester. With any prior stress and anxieties now firmly behind you, we hope you’re happy and ready to begin your new life, in your new home.

All you need to do is go get your keys and begin the process of moving in! We hope you received a fast & friendly Mortgage Advice service in Manchester and enjoyed speaking to our team along the way. If you have chosen a fixed rate mortgage, at the end of your term, we will Get in Touch again to help out with your Remortgage! 

The Importance of Changing Your Address

Mortgage Advice in Manchester

When it comes to applying for a mortgage, you need to be careful and watch out for your credit score. The higher your credit score, the more likely that it is that you will be accepted by a lender for a mortgage. There are many different things that can have an effect on your credit score.

One of these, is the fewer addresses you have on your record the better. People are starting to go about this the wrong way though.

More and more, we see applicants who have moved out of their parents address into rented accommodation, but are still leaving their bank statements, credit card and electoral roll information registered to their parents address.

For some reason, people think that it is a good idea and it could help their credit score, however, it can actually damage your credit score. Almost without fail, if you have moved to a new address, there will be some record of this on your credit report, whether you change your details or not.

Things as simple as a delivery address when you have ordered something online or a car/home insurance search can appear on your credit report.

Check before you apply

Before you perform a credit search and apply for a mortgage, you have to make sure that, to your knowledge, nothing will affect your credit score. You will need to get all of your accounts (credit cards / current accounts) and electoral roll are all changed over to your current residential address.

This only really applies to you if you have already moved out of your parents home, as when you are moving out to get a mortgage in a new home, you are able to change your details to the new property once you’ve moved in.

Regardless, all these things needs to be double and triple-checked when applying for a mortgage. We always find that people forget to update their address on their credit file and electoral roll. It can make a massive difference to you in your quest for a mortgage!

It’s important that you get the dates right too, knowing the exact date you moved into your rented property and the day that you left it. If you do happen to make a mistake with these dates, lenders may be under the impression you are living in two places at once.

Impress the lender

By making sure that every bit of information on your file is up-to-date, you are proving to the lender that you know what you are doing and you are taking the process seriously. It’s a more open and honest way of trying to apply for a mortgage. You want to impress them in any way you possibly can and this is a good way to start doing so.

If you still need a bit more help or just want some insight from a professional Mortgage Advisor in Manchester, feel free to get in touch for a free mortgage consultation.

We know that being a First Time Buyer in Manchester with no mortgage experience can be hard, which is where we are able to help. Get in touch with your friendly Mortgage Broker in Manchester today.

How Will Lockdown 2.0 Affect the Property Market?

Mortgage Advice in Manchester

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

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

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

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

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

Can I move home in lockdown?

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

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

Can I visit my estate agents?

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

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

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

Can I continue with house viewings?

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

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

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

Can I put my property on the market?

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

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

Can I still use conveyancers?

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

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

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

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

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

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

Catching up to speed

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

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

How to Improve Your Credit Score in Manchester

The general guideline, whether you’re a first time buyer in Manchester, home mover in Manchester, or aspiring to be a landlord of a buy to let in Manchester, is that a higher credit score increases your likelihood of mortgage approval.

It’s important to bear in mind that mortgage lenders establish an internal credit score based on the data in your credit report and your application.

Each mortgage provider follows its own credit scoring policy. Therefore, if one high street bank rejects your application, it doesn’t necessarily mean that all mortgage lenders will do the same.

Regarding which credit reference agency a mortgage lender employs, this information is not always disclosed, although mortgage lenders may alternate between companies such as Experian and Equifax.

It’s smart to use a tool like Check My File as a means of reviewing your own credit score, as this combines data from multiple sources, to give you a better look at your history. People who sign up will receive a free 30 day trial, that can be cancelled at any time.

Top Tips to Improve your Credit Rating:

Stop Unnecessary Credit Searches

Before you’ve registered with a credit reference agency to assess your score, your initial step should be refraining from applying for new credit.

It’s important to exercise caution, as even seemingly innocuous actions like comparing car insurance quotes on a price comparison website can trigger unintended credit searches.

Are you on the voters roll?

Mortgage lenders utilise the electoral roll for identity verification, making it an essential process. It’s vital to ensure your name is accurately spelled and that you’re registered at your present address. Your credit report will indicate whether you are registered, and you can also verify this with your local council.

Active Credit

Mortgage lenders value the presence of “active credit.” Having a credit card that you use regularly and fully pay off each month can be beneficial in the long run. Keep in mind that acquiring new credit might lead to a temporary negative effect. It’s crucial to avoid missing any payments!

Don’t Run Close to Your Maximum Limit

Consistently approaching your credit card limit or surpassing it can negatively impact your score. Excessive utilisation of your available credit can have adverse effects on your credit score.

Check Your Address History Gets Keyed Correctly

It’s important that you avoid any appearance of dual residence. This situation can arise from incorrect entry of start and end dates for past addresses.

Taking the time to carefully review dates and ensure address formats are uniform is advisable. This can be a bit challenging, especially when dealing with flat or apartment living.

Close Any Unused Credit Accounts

Consider cancelling any inactive credit or store cards you may have. Remember that this action might temporarily impact your score.

Although the systems can’t differentiate between your decision and that of the lender, this practice can prove beneficial in the long term. Additionally, it reduces the risk of falling victim to fraud in case the cards are ever stolen.

Check Your Account Addresses Are Correct

Make sure that your current address is linked to all your open accounts, rather than any previous addresses.

Remove Any Previous Financial Links

If you share joint accounts, a mortgage, or a loan with an ex-partner, their financial behaviour could affect your credit. Inform the credit reference agencies of the dissolution of these associations and ensure any links are removed.

Whether you welcome it or not, credit scoring has become an integral part of the lending landscape. It holds considerable sway over your mortgage eligibility. Mortgage lenders find it expedient to rely on their systems for consistency, streamlining the process compared to human-based assessments.

Making sure your mortgage broker in Manchester has an updated copy of your credit report offers a comprehensive view of your financial standing. This enables them to recommend the most suitable mortgage for your unique circumstances.

Why Should I Use a Mortgage Broker in Manchester?

Choosing between a mortgage broker and heading directly to a mortgage lender is a decision that requires careful consideration.

While it’s clear why opting for a mortgage broker, like our mortgage advisors in Manchester, can be advantageous, exploring both avenues is still worth your time. In this article, we will outline the advantages and drawbacks of each approach.

When you partner with a mortgage broker like us, it’s important to note that there might be a broker fee added to the overall costs. On the flip side, going directly to a mortgage lender eliminates this fee, potentially saving you money in this regard.

Mortgage lenders extend direct deals that are exclusively available through them. These deals are designed to attract both customers and brokers. Sometimes, these offers are accessible solely via a mortgage broker and not through the lender’s branch.

It’s worth mentioning that prior to 2014, mortgage lenders could have any staff member guide you towards a mortgage option without providing proper mortgage advice or consumer protection.

In 2014, this practice was fortunately prohibited, ensuring that only seasoned mortgage advisors in Manchester could deliver mortgage advice and recommend suitable products. This transition required some adjustment, leading to potential delays of up to a month or more for an initial appointment.

Unfortunately, such delays can still occur today, which can be particularly frustrating when you’ve just had an offer accepted on a property. This situation prompted an increase in applications through mortgage broker in Manchester.

At our end, we offer a same-day service, aiming to promptly connect you with a qualified mortgage advisor in Manchester, either immediately or at the very least within the same day.

Offering Expert Mortgage Advice in Manchester

In the years preceding the 2010s, the task of comparing potential mortgage deals was fraught with challenges. The contemporary landscape has witnessed a significant shift, with the convenience of finding these deals now just a Google search away.

Yet, the complexity has evolved into identifying a lender who is willing to tailor their criteria and features to suit your specific circumstances. It’s important to exercise caution, given that the seemingly alluring deals boasting the lowest interest rates often come hand in hand with hefty arrangement fees.

Equally crucial is the aspect of affordability. Regardless of how appealing a lender’s offer may appear, it needs to align with your financial capacity. Given the magnitude of this decision, many individuals opt for the assistance of a mortgage broker in Manchester.

This intermediary steps in to diligently compare various criteria and pinpoint options that harmonise with your individual situation. In the present regulatory landscape, which has tightened significantly after the Credit Crunch, mortgage applications have become notably intricate.

A multitude of factors could potentially complicate your application process, encompassing aspects like a less-than-ideal credit history, self-employed income, mixed sources for your deposit (such as a combination of savings and gifted funds), considerations of Let to Buy arrangements, contracting or zero-hours work, and challenges in meeting affordability benchmarks.

The complexity of navigating these facets necessitates a keen eye for detail and specialised knowledge, attributes that a seasoned mortgage broker in Manchester can provide. By leveraging their expertise, you can receive invaluable guidance through the multifaceted mortgage application journey.

Should I go direct to my bank or use a mortgage broker in Manchester?

Over the years, the mortgage lending arena has been marked by fierce competition among lenders, each vying to outshine their counterparts by presenting increasingly appealing deals.

When considering the choice between a mortgage broker in Manchester and a bank, the former emerges as a pivotal player, offering a wealth of benefits for budding home buyers.

While banks, as established financial institutions, provide a direct path to securing a mortgage, the pivotal role of a mortgage broker in Manchester cannot be underestimated.

These industry experts possess a unique ability to provide not only valuable insights but also personalised recommendations that align seamlessly with your financial goals and circumstances.

When entrusting your mortgage journey to a skilled mortgage broker, you gain access to an array of advantages that extend beyond what a bank can offer.

A mortgage broker in Manchester serves as your advocate, leveraging their extensive network and industry knowledge to navigate the intricate landscape of lending criteria.

Unlike banks, which are limited to their own lending guidelines, mortgage brokers possess the agility to connect you with lenders whose criteria are optimally suited to your unique profile. This tailored approach ensures that you are presented with the most suitable mortgage options available in the market.

Moreover, mortgage brokers excel in accessing a comprehensive range of lending solutions, granting you access to a diverse array of choices. This broader spectrum of options empowers you to make informed decisions that align precisely with your financial aspirations.

The expertise of a mortgage broker in Manchester extends to meticulously streamlining the application process. By understanding the intricate requirements of various lenders, they can guide you through the documentation process, eliminating unnecessary hurdles and potential roadblocks.

While banks may tout their direct connection and established relationships with clients, mortgage brokers build their reputation on fostering strong partnerships and advocating for the best interests of their customers.

This advocacy often translates into a faster approval process, as mortgage brokers collaborate closely with lenders to expedite your application and secure your mortgage efficiently.

In conclusion, while both banks and mortgage brokers have their merits, we believe the latter emerges as the superior choice for borrowers seeking comprehensive guidance, tailored solutions, and an advocate dedicated to their financial success.

By entrusting your mortgage journey to a skilled mortgage broker in Manchester, you gain access to specialised expertise, a broader array of lending options, and a partner committed to ensuring your mortgage experience is seamless and rewarding.

What are the pros and cons of using a mortgage broker in Manchester?

Mortgage brokers serve as invaluable partners, offering a range of services beyond the realm of mortgages alone. In Manchester, their role extends to various aspects of the homebuying process, catering to diverse needs even when the application seems straightforward.

They not only help in securing the right mortgage but also provide insights on property valuations, recommend essential services such as legal assistance and property surveys, and guide clients through the maze of protection options available.

A key advantage that sets mortgage brokers in Manchester apart is their unparalleled responsiveness. Unlike the rigid operating hours of many traditional lenders, these brokers are known for their flexibility.

They readily accommodate out-of-hours appointments, including weekends, and are committed to prompt responses even during evenings via email. This commitment to accessibility and prompt communication underscores their dedication to enhancing the client experience.

Beyond mere convenience, another pivotal reason behind the popularity of mortgage brokers is the alleviation of stress.

In today’s fast-paced world where individuals are often juggling various commitments, having a knowledgeable professional who can take charge of the intricate mortgage process becomes a lifeline.

This is particularly pertinent for professionals who, amidst their own busy schedules, understand the value of outsourcing such vital transactions to experts who can handle them seamlessly.

While technological advancements continue to reshape industries, the human element remains irreplaceable, especially in matters as significant as obtaining a mortgage.

Regardless of whether one is a first time buyer in Manchester, someone who is self employed in Manchester, or someone looking to remortgage in Manchester, the presence of a mortgage broker is akin to having a trustworthy guide in navigating the complexities of the mortgage landscape.

This personal touch offers reassurance, clarity, and peace of mind, fostering a more informed and confident decision-making process.

Need a Mortgage Agreement in Principle in Manchester?

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

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

Will obtaining an Agreement in Principle affect Credit Score? 

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

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

Should I avoid hard credit checks? 

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

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

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

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

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

Can I make an offer without an Agreement in Principle? 

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

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

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

How Long Does an Agreement in Principle Last For?

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

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

Mortgage Payment Holidays Advice in Manchester

Mortgage Advice in Manchester

At the beginning of the Coronavirus pandemic in March 2020, the Government promised that all borrowers would be allowed a three-month mortgage payment holiday if they needed it. Most lenders followed the Government’s guidelines and did their best to help their borrowers during these tough few months.

We have thought very carefully about the possibilities of what could happen to your mortgage over the next few months and are working very closely with our panel of lenders to ensure that if anything changes, we can inform you right away and recommend the best option for you to take so that you still feel secure and happy with your mortgage.

What is a Mortgage Payment Holiday?

Mortgage payment holidays are agreements you make with your bank, building society or mortgage lender, allowing you to take a small break from your monthly mortgage payments for a set period. In the case of the current COVID-19 crisis, homeowners are being granted 3-months.

The 3 months will be added on at the end of your term or your payments will be recalculated at a slightly higher level, meaning you will still have to pay those 3 months back at some point.

Your interest, however, carries on as normal, meaning you’ll technically be paying an additional 3 months of interest on top of what you’ve paid already.

Most lenders would likely prefer to not extend your mortgage term, as you may end up going beyond their standard retirement age. There’ll be more information on this over time.

Depending on the mortgage deal you have in place, you may be able to pay off a lump sum later on in the year to bring your mortgage in line with where it would’ve been had you not taken a holiday.

Mortgage Payments Holidays are available for those with residential mortgages and Buy to Let mortgages, meaning landlords will also have help if their payments are affected.

What is the government proposal?

The full proposal is in detail below:

• Mortgage lenders will offer an automatic 3-month mortgage payment holiday for customers impacted, directly or indirectly, by COVID-19.
• The mortgage payment holiday will apply to customers who are up to date on their payments, not in arrears, and wanting to self-certify that they are impacted by COVID-19.
• This means that lenders will not complete an income and expenditure assessment, or an assessment of alternate payment options as ordinarily required under MCOB.
• This proposal will allow lenders to be more responsive to customer needs and offer forbearance in a simple way to customers in an environment where the operation of collections teams made be also impacted by COVID-19.
• Customers will be made aware that interest will accrue in the holiday period and they will need to make up deferred payments in the future.
• Customers who wish to undertake a full assessment of their ability to pay or financial difficulty may still do so.

Mortgage Payment Holidays: How do I apply?

To discuss your options for Mortgage Payment Holidays, we would recommend speaking to a Mortgage Advisor in Manchester to start with and not jumping straight into taking a holiday.

We’ll be able to take a look for you first and see if this option is something worth your time. Lenders will no doubt be facing an influx of calls, needing to be free to speak with the most urgent matters over everyone else.

We’ll look through your personal situation and see if there are any other options for you first before you decided to take a Mortgage Payment Holiday.

For a customer, up to date with payments, not in arrears and impacted by COVID-19:

• The customer would contact the lender and inform them that they are impacted by COVID-19.
• The lender would accept these details from the customer and offer an automatic 3-month mortgage payment holiday.
• No evidence will be sought from the customer.
• The lender makes the customer aware that interest will accrue and will be contacted at the end of the three months to complete an assessment of the customer’s circumstances.
• At the end of three months, an arrangement to pay will be agreed with the customer according to their circumstances to recover any shortfall, while ensuring that the mortgage remains affordable and sustainable.
• The lender notifies the customer that if they wished to complete a full assessment now, there may be other forbearance options more suitable to the customer.

Mortgage Payment Holidays – What does this mean for my credit score?

Generally, these can show up on your credit score as a negative mark, but most lenders have said if your case is linked to the virus, they’ll make sure it doesn’t affect your credit score at all.

It’s important that you speak directly with your lender to ask them this, recording their response. Also take the date and time, as well as the name of who you spoke to, to avoid any confusion later on. Different lenders will handle these things differently than one another.

Will I still be able to remortgage or take a product transfer with my lender?

Controversial for some, but there is now evidence that lenders are asking borrowers to try and not make changes to their mortgage whilst within the holiday period. This means, for the time being, you can’t take out a remortgage or product transfer.

In simpler terms, borrowers reaching the end of their current product may be forced to move to the higher lenders variable rate. This means many borrowers who act too quickly could find themselves on a Mortgage Payment Holiday that gains interest on a more expensive variable rate.

This is another reason why we highly recommend speaking to a Mortgage Advisor in Manchester first, to determine the right path for you to take. If possible, try arranging a transfer prior to asking for a holiday, as that seems like a more sensible option.

What “Other Options” are available?

Some lenders are offering a temporary switch to interest-only, in order to reduce monthly payments by a large amount, while not adding on any further amount to the loan, by still servicing the interest each month.

You may not need to convert the entire mortgage to an interest-only mortgage and it may be that putting only a portion of this mortgage on that basis could give you room to breathe.

Those who have savings may prefer remortgaging onto an offset basis. This would reduce their monthly payments whilst keeping their savings safe and intact.

For example, someone with a £500,000 loan and £100,000 in savings would only pay interest on £400,000 reducing their payments accordingly.

For others, remortgaging onto another lender, calculating the cost of any early repayment charges, maybe all you need to ease the pressure you currently face. You could also simply extend your current term, thus spreading your payments across a longer time frame.

To discuss any of these options, or to just have a helpful chat about your current situation please contact us and we’ll see how we can be of assistance.

Buying a House From a Landlord in Manchester

We often hear from customers who get in touch that they are looking for Specialist Mortgage Advice in Manchester. A large portion of these are currently renting from a landlord that is wanting to sell them their property. From the perspective of a landlord, selling a property to their current tenant can actually be easier. As such they may give the tenant the possibility to buy the property before it goes on the open market.

Mortgage Advice in Manchester for a landlord

Reasons a landlord may be selling

Because of government tax relief clamps, a lot of current landlords are now paying more tax than they would have done in years gone past, leading some to call it quits on their housing ventures and go seek another investment in another market.

Investors that are really serious about their job as a landlord and keeping the property market going, tend to keep on going through these legislative changes. Their mindset when it comes to being a buy-to-let landlord, is that their property is a long-term investment. On the flip side, amateur landlords are more likely in it for a “quick buck” and will sell if things don’t quite go their way.

The benefits of selling to a tenant

1. It saves them from the costs of estate agent commission.
2. Rent will continue to come in until the purchase is finalised.
3. They could save money on the costs of refurbishment.

Mortgage Advice in Manchester for a tenant

The benefits of buying from a landlord

It’s not just landlords though – There are also advantages to the sitting tenant who is considering buying from the landlord:

1. You have already lived in the property, so you know what it is like!
2. There is no waiting for the previous owner to find a place to live, as you already live there.
3. Due to the landlord not having to put as much money aside to sell the home, they can often discount it to you for a lower price!

If price you both agree on is below the value of the property, a lender may accept putting the properties equity towards your deposit. If there is enough equity in there, you may not actually require a deposit at all!