For many first time buyers in Manchester and home movers in Manchester, the credit scoring system might seem like an unjust method employed by mortgage lenders to assess their applications. Conversely, mortgage lenders view credit scoring as a practical and consistent approach to mitigate risk.
If the credit scoring system raises concerns during your mortgage application, fret not. The reassuring news is that there exists a multitude of mortgage lenders, each employing their distinctive scoring systems and criteria.
To allay your concerns and enhance the likelihood of acceptance, obtaining a copy of your credit report when applying for a mortgage is a key step. Providing an up-to-date copy of your credit report to your mortgage advisor in Manchester at the outset offers a clearer snapshot of your financial standing, thereby increasing the chances of a successful application.
Importantly, having a copy of your credit report empowers your mortgage advisor to pinpoint potential issues or areas requiring improvement, enabling you to address them proactively before applying for a mortgage. This proactive approach not only improves your approval prospects but also instils confidence and peace of mind throughout the mortgage process.
It’s essential to remember that every mortgage lender adheres to its own set of criteria, so if one lender rejects your application, don’t be disheartened. Your dedicated mortgage advisor in Manchester will collaborate with you to identify the best fit from the diverse options available in the market.
When examining your credit report for mortgage purposes, various credit reference agencies, such as Experian and Equifax, are at your disposal. We recommend CheckMyFile for its comprehensive overview based on information from multiple credit agencies.
Opting for CheckMyFile provides access to a 30-day free trial, allowing you to review your credit report without incurring any costs during this period. The flexibility to cancel the trial at any time further empowers you to make an informed decision about your creditworthiness, ensuring a robust foundation for your mortgage application.
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Enhancing your credit score is pivotal when seeking a mortgage, and several steps can positively influence your creditworthiness. Exercise caution when using price comparison websites, as they may trigger credit searches that could negatively impact your score.
To mitigate potential red flags for mortgage lenders, refrain from applying for additional credit in the immediate future.
Registering on the electoral roll stands out as a key method to boost your credit score. Accuracy in your name and address details is important to present a positive impression, avoiding any misinterpretation that may arise from inaccurate address information.
Careful management of your credit card usage holds significant sway over your credit score. Responsible usage, coupled with paying the balance in full each month, can contribute positively.
While closing dormant store or credit card accounts may momentarily affect your score, it can prove beneficial in the long run, reducing susceptibility to fraud.
Furthermore, severing financial connections with family members, friends, or ex-partners can positively impact your credit score, particularly if their credit history is less than stellar. If you no longer maintain active financial associations with these individuals, requesting credit reference agencies to remove these links is advisable.
When seeking mortgage advice in Manchester, providing our seasoned and trustworthy mortgage advisors with comprehensive financial information enables them to furnish the best possible guidance and support throughout the mortgage application process.
With their expertise complementing your improved credit score, you are well-positioned to secure the optimal mortgage for your needs and financial situation.
Whether you’re new to the world of mortgages or you currently own a property and have some past mortgage experience, you will have either heard of a “mortgage broker” or will have no clue what they are or what they do.
Using a mortgage broker in Manchester when moving home can not only make your job easier but can take all of the stress out of the process.
Here we will discuss the main differences between using a mortgage broker and your bank.
If you opt for your bank when looking for a mortgage, you will not have to pay a broker fee, which will save you money.
However, banks can only access their in-house mortgage products, whereas, a mortgage broker can search through various different types of lenders in order to find the best product for you. For example, as a mortgage broker in Manchester, we have access to a variety of different lenders that hold both high street and specialist deals. We can search through these lenders to try and find you a competitive mortgage product.
During your free mortgage appointment with us, we will perform a free affordability assessment on you to work out what sort of deals will be accessible to you.
Most high street banks are renowned for making you wait weeks to get an appointment with a mortgage advisor. This can be extremely inconvenient if you have just had an offer accepted on a property.
A mortgage broker in Manchester, like ourselves, offers flexible availability and allows you to book a mortgage appointment at a time that suits you. Sometimes, we even have same-day availability!
If you approach a high street bank and your mortgage application is declined, the chances are that most other high street banks will do the same.
There are many different reasons why a bank could decline your mortgage application, sometimes you are never told why. If it has something to do with your credit, if you apply to another bank and are declined, you could put more harm on your credit.
As mentioned earlier, mortgage brokers can access a large variety of mortgage lenders, including those from specialist lenders. If you have been declined by your bank, the best thing to do is to approach a mortgage broker in Manchester like us and we can explore options that are better suited to your personal and financial situation.
If your credit is the issue and you need help improving your credit score and getting your finances back on track, our mortgage advisors in Manchester can run through this with you.
Banks and brokers have a pretty similar turnaround time when it comes to getting you an agreement in principle (AIP). Our mortgage advisors in Manchester can usually secure you an AIP within 24 hours of your free mortgage appointment.
If your AIP expires, simply get back in touch with our team and we can renew it straight away for you.
Similar to their mortgage appointment availability, banks will never be available there and then for you to ask a quick question or give you an update on the progress of your mortgage application. Drop your mortgage advisor in Manchester a message whenever you want to speak to them and they will be back in touch right away. We know that the mortgage process is a stressful time, and we want to put you at ease.
As a mortgage broker in Manchester, our job is to help you through the entirety of your mortgage journey. No matter your situation, whether you’re a first time buyer in Manchester or a buy to let landlord in Manchester, we are here to offer our help.
Our responsive service is at the heart of our business. You can book your free mortgage appointment or arrange a call back online! This allows you to be in control of your mortgage appointment and schedule it around your busy working and personal schedule.
If you would prefer to, give our team at Manchestermoneyman a call and we can put you in touch with one of our expert mortgage advisors in Manchester.
Buying a property will likely be the biggest financial commitment of your life, therefore, it’s understandable that you have lots of questions regarding the mortgage process. As a mortgage broker in Manchester, we’ve had the pleasure of helping many different types of buyers; no matter what the applicant’s situation is, we are always asked “how long does mortgage approval take?”.
If you are a first time buyer in Manchester, and you have questions like this, you must get the necessary mortgage advice and speak with an expert. Not every question will have a straightforward answer, however. Most of the time, especially with questions like these, it will depend on the individual’s personal and financial situation.
If you have no problems with your credit you could find that it takes 2-3 weeks to receive mortgage approval. This timeframe is just an example, it could take longer or less time than this.
Mortgage approvals can take time if you have current or past issues with credit. The mortgage lender will need to search thoroughly through your credit file to determine whether or not you are a reliable applicant who can afford to take out a mortgage. If you have bad credit or past credit issues, the mortgage approval process can take months.
You need to know that there is no set timeframe for when a mortgage is or is not approved, it depends on the mortgage lender and your personal and financial situation.
Getting approved for a mortgage is not as simple as it used to be! You will never see mortgages being handed out like they were in pre-credit crunch days.
The process is timely and intricate to gain a complete insight into an applicant’s personal and financial situation. Mortgage lenders need to establish the type of applicant that you are. They look at your credit, income (including occupation), your outgoings (via bank statements) to get an idea of who you are and whether you are going to be able to afford a mortgage.
They need to know who they are lending to and whether they can afford a mortgage on the property in Manchester that they are looking at purchasing. This all takes time. Remember that there are also thousands of applicants, not just you!
As a mortgage broker in Manchester, our mortgage process involves stages that build you up to your mortgage application. This process is designed to make your mortgage journey stress-free and easy-going; we’ll take care of the mortgage side of things, and you can focus on finding your dream property in Manchester.
To get your mortgage process started, book your free mortgage appointment with one of our mortgage advisors in Manchester. You can do this by selecting a date and time online or giving our team a call. We have 7 days a week availability, allowing you to book an appointment around a time that suits you.
During your free mortgage appointment, your mortgage advisor in Manchester will take some information from you to get an understanding of what you are looking to achieve along your mortgage journey. This will roughly take 30-45 minutes.
Once you have completed your mortgage appointment, your mortgage advisor in Manchester will send you a mortgage agreement in principle (AIP). This document is a “must-have” when it comes to making an offer on a property. You will need one in order to prove to the estate agency that you have been pre-approved by a mortgage lender. At this point in the process, you should begin searching for a property you want to buy, if you have already found your dream property, we can move on to the next step right away!
Once you have had an offer accepted on the property, we will be able to pair this with the perfect mortgage deal. We have a large variety of mortgage lenders on panel, allowing us to access high street and specialist products. The product that your mortgage advisor in Manchester finds will be presented in a mortgage illustration document, outlining everything about the deal that you need to know.
If you are happy to proceed with our service and the mortgage product we have found you, it is time to prepare your mortgage application.
When preparing your mortgage application, you will need to attach several documents to evidence your affordability for a mortgage. We will help you gather all of these documents and make sure that your application has everything it needs. Once you are ready, we can send off your mortgage application to the mortgage lender.
As soon as we send off your mortgage application, everything is now in the mortgage lender’s hands. Just so you know, we will never put you forward for a mortgage product that you will be declined for!
They will look at the documents that you have attached to your mortgage application to verify your mortgage affordability. They will also check your ID and current registered address to make sure that you are who you say that you are, as well as looking at where your deposit has been sourced from.
If you received a gifted deposit they will need to see the last 3 months’ bank statements from the donor and have a gifted deposit form signed.
Not to be confused with a house survey, a mortgage valuation survey is where the lender sends out a property surveyor to determine the true value of the property that you are looking at purchasing. There are different types of property surveys in Manchester, with each one suited to different types of properties. Your mortgage advisor in Manchester will advise accordingly on which type of survey is recommended.
The reason the mortgage lender will want a survey taken out on a property is to determine the true value of the property. If your offer to the seller was above the actual value of the property, you may find that a mortgage lender will not allow you to borrow the amount you are asking for.
Essentially, they aim to ensure that, in case of repossession, they will be able to make their money back by selling your home. Rest assured, as long as you consistently meet your monthly repayments, there’s no need to worry about losing your home.
After the mortgage lender has carried out their checks, if all has gone well, you should receive your formal mortgage approval back. Your mortgage advisor in Manchester will be in touch straight away to give you the good news!
From here, we will hand you over to the solicitors for you to exchange contracts and complete the rest of the legalities. Once this is done, you’re ready to go and collect your keys!
Whether you are a first time buyer in Manchester, looking at moving home, remortgaging or wanting to invest in a buy to let property, it is important that you are aware of the mortgage process and what is expected and needed throughout.
As a mortgage broker in Manchester, we would always recommend starting your mortgage process up to 6 months in advance. This way, you can get your agreement in principle arranged and begin looking for properties within your budget nice and early. For example, if you were looking at moving home in January, starting your process in the Summer would benefit you more and tie in with your plans.
If you have had an offer accepted or are looking at buying a property in Manchester, now is the time to start your mortgage journey – act now! Book your free mortgage appointment online or by giving our team a call today.
If you are looking to try and save both your time and money, reduce your stress levels and worry less about the process, there is a lot of upside to taking on the help of an expert mortgage broker in Manchester.
As professionals with a lot of experience, we have access to thousands of deals, able to pick and choose one that is best suited for your particular situation. Going directly to the bank, on the other hand, see’s you with access to only one lender’s mortgage deals, as opposed to a look at multiple.
Our team are available to get you booked in for an appointment, 7 days a week, from early until late, working around your busy schedule.
You are also able to utilise our website’s booking form, to select a video or telephone consultation with a mortgage advisor in Manchester, at a time that is convenient to you.
In order to progress with a mortgage as a first time buyer in Manchester, you will first need to look at having an appointment to speak with a mortgage advisor in Manchester.
Throughout the duration of this meeting, you will be providing them with additional information that will serve to help them better understand your circumstances and your plans. Following on from this, they will then take a look at a wide variety of mortgage deals in order to find the right one for you.
First time buyers in Manchester and people moving home in Manchester that are happy to proceed with the recommendation of their mortgage advisor, will benefit from receiving an agreement in principle (AIP). We look to get this for our customers, within 24 hours of their initial appointment.
This is a useful document to have, as estate agents will ask for this when you are making an offer on a property. It showcases that you are committed to the purchase and that you are in fact financially able to proceed with your purchase, having a mortgage lender on standby willing to lend.
We are able to support and guide you with your offer process, help with property surveys and also make any insurance recommendations (that are completely optional) that could act as a safety net to protect your family and your home from unforeseen circumstances.
You will also need to provide your mortgage advisor with appropriate documentation to go along with your mortgage application, with these varying depending on what it is you’re trying to do and who you will be working with. This is something we’ll also help you with as a mortgage broker in Manchester.
Once your documents have ben received, as a mortgage broker in Manchester, we will verify those documents and provide you with a mortgage illustration that will outline the deal that you have agreed to, with the mortgage lender we recommended. This is done just before we submit your application.
Your application is then submitted, following your approval of our recommendation, with your mortgage advisor in Manchester sending copies of your documents to the mortgage lender. We will keep in regular contact with you, to ensure you are kept up-to-date with the progression of your application.
We’ll be straight back in touch with you once the mortgage lender has made a decision on your application. If it is successful, this is where you will receive a formal mortgage offer. From here, it’s all up to your solicitor to complete the deal and allow you to move into your new home.
As a mortgage broker in Manchester, we always like to make sure that your best interests are at the hear of everything that we do. If we can save you time, save you money and save you stress, we will do so. We want to help put you in the best financial position you can be in.
Our customer reviews are a genuine look at the long lasting relationships we build with those who get in touch with us, showing the positive impact that owning a home, by way of our mortgage advice service, has had on them as individuals.
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.
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.
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.
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.
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.
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.
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:
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.
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.
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.
When it comes to applying for any sort of finance, you will be asked to provide an up-to-date credit report. A credit report is essentially a summary of your finances and how you manage your money. It will be summarised by a score out of 1000 – your credit score.
As a mortgage broker in Manchester, we see different credit scores every day; some averaging low, some averaging high. Depending on an applicant’s financial situation, credit scores can differ from person to person. In a room of ten people, it would be very unlikely to find two people with the exact same credit score.
Credit scores range from 0-1000. Sites such as Experian, Equifax and TransUnion will give you a general guide as to what is classed as a poor, fair, good, very good and excellent credit score. These are based on averages over a period of time however, therefore, one lender’s impression of a “good” credit score could be completely different to another.
Reliability is the key to getting a mortgage, and having a good credit score can massively help in showing that you are reliable and someone who manages their finances sensibly.
Despite appearing as a reliable applicant, you should know that having an excellent credit score will never guarantee you a mortgage. As a mortgage broker in Manchester, we have seen that some lenders offer products that can only be accessed to customers with a credit score greater than 900.
We would recommend speaking with a professional mortgage advisor in Manchester like us before applying for these high-end products. If you do not match the product and you get declined, you could negatively impact your credit score.
If you have a low credit score, you still may be able to take out a mortgage. Yes, you could be limited to specialist deals that come with high-interest rates, however, at least you are still may be able to take out a mortgage!
Remember that everyone’s situation is different and that it is also down to people’s personal circumstances too. So one applicant with low credit may get a mortgage whilst another applicant with a similar credit score may not due to their complex personal situation.
If you are a younger mortgage applicant with a low credit score, you may still be able to find success in your journey. As a first time buyer in Manchester, you may simply not have built up a sufficient credit score yet. Most of the time, this isn’t a problem, even more so if you are using a government-led scheme such as the Help to Buy Equity Loan or Shared Ownership.
If a first time buyer has low credit, it does not necessarily mean that they are bad with their money they just probably haven’t had the chance to increase it. If there is a record of missed payments and defaults, this will harm the chances of getting a mortgage.
Some lenders may only want buyers with good credit, no matter whether they are a first time buyer or not, it depends on the lender. Before applying to lots of different deals, it can be best to first get mortgage advice in Manchester and get the answer to all of your questions.
If you have missed your loan repayments on anything, for a particular length of time, a creditor may issue you a default notice. A default can severely impact your credit score, and even more so if you already have a low score. If your score declines to “poor”, you may be refused a mortgage altogether and may struggle to take out any loans in the near future.
You can pay back a default straight away, but it will still have already impacted your credit score. If you don’t pay it straight away, you will likely be issued with a County Court Judgement. This is the last resort for creditors; first trying to chase the debt and if this doesn’t work then work on an agreement to pay the debt back over time.
Having a CCJ on your credit file is very unappealing. Lenders may be completely put off if they see one in your name. Not to mention that they will also cause damage to your credit score. You could even find it difficult to get a new credit card or open a bank account.
CCJs remain on your credit file for 6 years, even if you settle the amount owed. You can protest a CCJ if you feel that it shouldn’t have been issued, however, you will need to have sufficient evidence to fight your claim.
You can “satisfy” your CCJ by paying it off. It will still appear on your file, although it will say “satisfied” next to the payment. Lenders will be able to see that your debt has been repaid in full. They will also be able to see when the CCJ was originally issued and how long it took you to pay it off.
Typically, the longer a CCJ has been on your file, the more likely you are to get a mortgage. If the CCJ has only been on your record for a year, you’ll be lucky to get your application moving.
This all again depends on the circumstance and the mortgage lender’s criteria. We would always recommend speaking with a mortgage broker in Manchester prior to submitting a mortgage application with a CCJ in your name.
If you already own property and were looking to remortgage your process should be straightforward enough. But, if you have bad credit and are trying to remortgage, you may slightly struggle depending on your situation.
Even though it is your own home, when you remortgage, you are taking out another mortgage product. When you take out a new product, you still have to undergo affordability assessments and credit score checks, therefore, if you have bad credit, you may struggle to remortgage. You may have to accept the fact that you are going to fall onto your lender’s standard variable rate of interest (SVR).
Speak to a specialist mortgage advisor in Manchester prior to remortgaging with bad credit. An expert can answer all of your remortgage questions and see whether you could qualify for any specialist deals.
If you have a lower credit score, you may find it more difficult to access the lower rates of interest. The lower rate products usually come with a “very good”-“excellent” credit score requirement.
As mentioned earlier, you still may be able to access these better rates of interest if you are a first time buyer. This is because you may not have had the chance to increase your credit score yet.
On the other hand, if you have adverse credit, such as a default or CCJ, you will likely be incurring higher interest rates.
Usually, you are able to put down a higher deposit to gain a better rate of interest, however, if you have bad credit, you may already be asked to put down a higher deposit to show your reliability. In this scenario, you will still likely be on a higher rate.
The general popularity surrounding Offset Mortgages has dipped since their rise during the 1990s, though some of you may be pleased to know that they are still a great option for customers who have the ability to put some money aside every month.
They’re also quite good if you believe that you are due to receive a lump sum in the near future.
When you start out with your Offset Mortgage, you will be given a savings account by the mortgage lender that will run alongside your mortgage, for the sole purpose of aiding your mortgage. Rather than racking up interest, the money will offset against the balance of your mortgage.
As an example of how this works, let’s say that your mortgage is worth £100,000 and you have managed to save up £15,000 in savings, then you will only be paying interest on the £85,000 that is left.
Offset Mortgages tend to be rather flexible arrangements. Until you have completely offset your mortgage, you will have the ability to put as much money as you would like into it. You will always have instant access to the money that is in your savings, so if you need to dip in for any emergencies, you know that it is there.
One of the things that is really great about Offset Mortgages, is that it saves interest, as opposed to adding it on, so you won’t have to pay any tax on any savings that you put into your savings. Higher rate taxpayers are definitely big fans of these!
An Offset Mortgage is a great option if you are due a lump sum for any reason, such as possible inheritance, as because it is interest-free, it allows you to store your money until you know what you want to do with it. This also applies to any annual or quarterly bonuses from your job that you have no dependance on.
Because your savings account will be freely accessible at any time, you are able to dip into your additional savings for other means if you need to, whilst leaving some in there for your mortgage. It is important to remember that you need a substantial amount in there though to make your Offset worth taking out!
An Offset Mortgage can work out really well for first time buyers in Manchester who have any plans to overpay on their mortgage. Looking further down the road, once your current term ends, overpaying can potentially reduce your mortgage payments for the next term that you take, reducing interest rates in the process.
With other mortgage types, any money that you put towards your mortgage cannot be withdrawn at any point, with releasing equity being your option once your term has ended. This is a situation that is less than ideal if you have any second thoughts or need a short term boost to your income.
It’s times like this where Offset Mortgages are rather clever. Because you have a savings account, you will have the ability to take out the funds at any time, then put them back in when you are ready to do so.
So, if you’re looking to make any further payments on your mortgage over the term, we’d recommend making use of an Offset Mortgage savings account.
You should consider all of the options that are available to you when you get in touch with a Mortgage Advisor in Manchester.
Some consumers who like using Offset Mortgages tend to keep going with them and are less likely to Remortgage than another homeowner might be inclined to. The may seem a little complex though, so there are customers who may not use this option.
Your dedicated mortgage advisor will be able to show you the impact of how an Offset Mortgage can potentially save you money over the course of the full mortgage term.
If you have any further questions relating to the topic of Offset Mortgages or a Remortgage in Manchester, feel free to book online for your free mortgage appointment and we’ll happily talk you through whatever you need help with.
Buying a home isn’t something that you decide in a day, there is planning that comes with it. Nevertheless, you’d be surprised at the number of people we have encountered on a daily basis who are more impulsive in their buying behaviour. By doing this, many people don’t plan for a mortgage ahead of time.
A first time buyer in Manchester might decide to jump into such a big financial commitment like purchasing a property if they are buying from a family member who is now moving home. Another reason might be as simple as finding a property with a ‘For Sale’ sign that has piqued their interest despite having no intention of buying in the past. You might already have your own rented property and your landlord is deciding to sell it and giving you first refusal.
Potential errors can occur because buyers have not planned in advance for a mortgage. Below are just a few hurdles we find customers are regularly faced with:
When it comes to saving up your deposit for a mortgage, we understand that it can be challenging, in particular, if you are renting at the moment from a local council or private landlord. Large outgoings and essential purchases coming out each month can limit what you save, even if you have a constant income.
With the help of Gifted Deposit, family members have the chance to provide financial support. This can be a common option with First Time Buyers in Manchester, with a large number of buyers’ family members trying to help whenever they can. If this is something you are looking to do, it’s best to give the family member who’s gifting the deposit some notice in order for them to get their own finances sorted.
Obtaining an up to date credit report is pretty simple. There is a range of credit reference agencies that you may be aware of, however, we personally would recommend Check My File. This is because they have the ability to collate the data from these sources into one, for you to compare.
When you have a copy of your report, you can send it to a Mortgage Advisor in Manchester to look over. Our team see these reports on a daily basis and have a good understanding of the sort of things lenders like to see, as well as identifying what they do not want to see.
Lenders look at your bank account to identify any unnecessary bank charges or gambling transactions. If you do have any on your statements, you need a good explanation of the goings-on with your account, as well as how you are going to resolve this going forward, should any issues arise again.
When it comes to self-employed applicants, we know that Accountants try to minimise tax liability for their customers. With this in mind, if your year-end has come around, then you can submit another set of accounts earlier than you might usually do. This can be beneficial if you feel your business has grown in the last 12 months. In some cases, lenders might disregard the initial years’ figures if the up to date ones are more favourable.
Regardless of your circumstances, if you feel your situation applies to any of the issues above, we are able to help. Here at Manchestermoneyman, we love a challenge, so don’t hesitate to Get In Touch!
Before you start with anything else, probably the main factor when moving home in or around the Manchester area, whether local or not, is what location do you have in mind.
Generally though you’ll have to think about more than just where you want to live, but what the area is like, what is there and what do you want to prioritise when looking for your dream home.
To help you get a better idea of the sort of place you’d like to live, we have compiled a detailed list of the different types of factors we have heard that home buyers look at when looking to find their new home in Manchester.
It is important to come up with an idea of the type of area you would like to make your residence in, as this is somewhere you are going to be living in for a good while, maybe even making it a family home.
If you’re the sort who feels a lot more comfortable surrounded by a thriving urban scene, the city life is definitely your best choice. If you have a preference for the quiet life, living in the countryside might be more your cup of tea.
You’ll find pros and cons to either choice, so give it a lot of careful thought before you get your heart set on a potential new home that could be based in an area that you might not enjoy.
The transport links to and from your potential new home base are important factors to pay attention to.
Make sure whether it’s to go out and socialise with friends or family, to make your way to work, to go shopping for essentials or anything else you like to do in your spare time, that your home has necessary transport links.
Also do some research as to how much each of these is going to cost you when travelling. If you drive your own vehicle, how long will it take for you to reach different places? How much will fuel be? Are there any nearby fuel stations?
For home buyers who have some children, you should take a look at what schools are nearby. Find out what the local catchment areas are, so you can get a rough idea of what the schools are like. School league tables are handy learning tools.
If you don’t have any children now, whether you are planning for the future or have no plans at all, it may be beneficial to at least look it up, just to future proof yourself.
There may be certain facilities that you would like to have close to you when you are planning on a place to potentially live. We would suggest writing a list and separating those that you want from those that are essential.
An example of this would be if you really want to have a gym nearby but doing so could mean that you have to live in an area without the shops you need within a reachable distance.
You probably need the shops more for your general living, so that might be something to prioritise, whilst leaving the gym as an added bonus if you can make it work.
The distance between where you might be living and where your family and friends currently live can have an influence on where you move to. Many prefer keeping them close by, so they have that support network if they need it.
On the other hand, some prefer to keep to themselves with their loved ones at a distance, prioritising peace and quiet over going out and socialising with people on the regular.
When making purchases, we all would like to know that we’re getting good value for money. Determining this for your home will depend on the area that you’re looking to live in.
It may be a better option for you to look for a cheaper property to start out with, though this might mean compromising various features or nearby facilities that you would’ve preferred to have had.
The local community can impact your home living experience quite a bit.
As established, some prefer the quiet life. This might entail having a few residents nearby who keep to themselves. Others like to have a thriving busy community, generally where everyone is known and communicates regularly.
Have a word with your estate agent and find out what the area is like. Community Facebook pages or locally run websites tend to be quite common these days, so they’re worth looking up to get a rough feel for the local vibe.
Some home buyers may be moving because of a new job or career plan. This is something we’ve heard from customers a lot and is a very big factor. You should review the distance between your new home and workplace.
If you’re going to be working in a home office and only visiting the office sporadically, would you be okay with living a bit further out? What is the space like within the property? Is there even the scope for a home office?
For those who will be job hunting once they have already moved, do some research on the companies in the local area and compile a list of the main employers to potentially apply with.
You will find a lot of different property types available to you across the open property market, with these varying depending on where you’re looking.
Some prefer end-terrace properties with a garden to enjoy, whilst others prefer a modern flat or studio apartment.
Make sure you have a good look at all the options available to you, undertake some property viewings and get a good idea of the type of property you would prefer to live in.
Any proposed local investment would probably be helpful to find information on, especially if you’re looking to build a life within that home and stay there for quite a while.
Online research will be the best port of call when looking to find any future investments. It’s important to consider whether these will be a benefit or a detriment to your lifestyle.
To explain further, those who might have a preference for quiet country life might find their dream scenario turned into a nightmare if a big new housing development is planned within close proximity.
Hopefully through reading our list you’ll now be better equipped for finding a place to call your home.
When the time comes for making offers on property and getting yourself a mortgage, get yourself booked in for a free mortgage appointment. We would be happy to help!
We have a dedicated team of mortgage advisors available from early until late, all throughout the working week and weekend, subject to availability.
No matter if you need some assistance with a first time buyer mortgage in Manchester or are moving home in Manchester, we can’t wait to hear from you and help you kickstart your mortgage journey.
When it comes to buying a property, you can go down one of two routes: you can either buy it upfront or take out a mortgage to pay off the property over time.
Both routes will be costly, but of course, you’d expect that when buying a house! Undoubtedly, paying upfront will cost you a lot more money at the time of purchase, however, getting a mortgage will cost you more money in the long run.
It’s likely that you’re going to have to pay the price that’s on the tag when purchasing with cash, whereas a mortgage will allow you to take out a loan and pay it back over a long period of time.
If you can afford it, buying a property upfront is a great investment. It doesn’t matter whether you’re planning to live in the property or use it as a buy to let in Manchester, getting yourself on the property ladder can put you in a great financial position in years to come.
In the majority of situations, you’ll have the upper hand over someone who’s taking out a mortgage if you’re buying with cash. One of these reasons is down to your reliability.
From the viewpoint of a seller, if a cash buyer approaches you and makes an offer, it’s hard to say no. One reason behind this is that it would be a quick sale. There is no chance of your buyer getting caught up in the property chain as they have the money there and then.
‘Getting stuck in the property chain’ is when a property is being sold and the buyer cannot move in yet as they are waiting for their home to be sold. As you can imagine, this chain can go on and on.
Also, a cash buyer will not have to pass any affordability checks, as they already have everything in place. They can proceed right away!
Moving home in Manchester can already be stressful enough, especially when the process starts to slow down. A cash buyer can only speed up the process, not slow it down. The mortgage process can sometimes bring trip-ups and hurdles along with it, particularly in specialist situations.
Equally, buyers taking out a mortgage can speed up the process too if they’re prepared. This means having an agreement in principle in place, being credit checked and had an affordability assessment carried out and early as possible.
A mortgage broker in Manchester like us can help you with this. In a lot of cases, we see mortgage applicants shoot through the moving home process just as fast as a cash buyer would.
When you take out a mortgage, you are taking out a loan. This loan is a huge financial commitment; it’s likely to last well over 20-25+ years. With a cash offer, you are avoiding owing money back.
You also won’t receive interest on your offer, as you’re paying with cash. If you had a mortgage, the interest would possibly push up your monthly payments.
When you don’t have the funds in place to make a cash offer, your next choice is to take out a mortgage.
Instead of using your life savings on a property purchase, you have the choice to save that money and take out a mortgage. Both options result in the same thing! And, depending on your credit score, obtaining a mortgage may only require 5% of the property’s value as a deposit.
You’ll pay back a mortgage in monthly instalments. This allows you to pay back a bit at a time and in some cases overpay if you want to. Monthly costs will vary depending on your interest rate, mortgage product and the property that you’re purchasing.
If you’re viewing properties and the listing says “cash buyers only”, you should be careful with this property. It’s quite likely that the property has something wrong with it. If it is the case that the property is damaged/need repairs, you probably won’t be able to get a mortgage on the property anyway. You could be dodging a bullet if you are choosing a mortgage over cash here, as a cash buyer may be buying into a bad property.
Despite not having to, we’d always recommend that you get a property survey carried out on the property you’re planning to buy. This applies to both cash buyers and mortgage applicants.
Diving into a purchase blind could put you at a slight disadvantage to someone who has a mortgage advisor in Manchester by their side. Your advisor will make things as simple as possible when helping you through your moving home process.
We aim to deliver a fast and friendly advice service. A mortgage broker in Manchester could be the thing that you need to get you through your moving home process. Get in touch with our team for a free consultation.