Can I Have Two Mortgages in Harrogate?

Can I have two mortgages at once?

Can I Have a Second Mortgage? | MoneymanTV

Though homeowners may not be aware, yes it is possible for you to have two mortgages!

Of course this depends on your eligibility. Providing you have enough income, have a strong credit score and a consistent job status, this may become an option for you.

Why would you take out a second mortgage?

To Purchase a Second Home

There are many reasons why someone might want to purchase a second home. For starters, you may be wanting to rent out the home you already have and purchase a new one. This is called a Let to Buy.

You may be wanting to help out your kids by releasing some equity, purchasing a second property and mortgaging it, so that they have somewhere to live.

It’s a lot more common for parents to release equity as a means of gifting a deposit, though this still crops up from time to time, especially when you factor in property price rises!

Further Advance for Home Improvements

Some may want a second mortgage with their existing lender, on the same home. This is called a further advance and allows you to borrow an additional amount in order to cover various home improvements.

This is a specialist area and would require you to speak with a mortgage advisor in Harrogate.

Second Mortgage for your Buy to Let Portfolio

If you are a landlord, you may require additional mortgages for further portfolio purchases. We find that buy to let mortgages are most commonly on interest only, as this means your monthly payments will be lower, as you’re only paying interest.

You will need to pay back the capital in full at the end of your term though, so that’s something to bear in mind. It’s beneficial to look at speaking with a mortgage advisor in Harrogate ahead of a buy to let mortgage in Harrogate.

We are experts in buy to let mortgage criteria and will work hard to take the weight of your mortgage off your shoulders.

Named on an existing mortgage and want to buy a new home?

Thanks to situations like divorce and separation, this is unfortunately quite a common occurrence for us. We would recommend looking to get your name removed from the mortgage with your ex, as otherwise you will remain liable for the payments, whether you’ve come to a personal agreement or not.

This in turn, will make it difficult to obtain a second mortgage, as they need confidence in your ability to maintain both payments. You also have to think about your ex’s credit history. If they start to miss payments, this can affect your score too.

Speak with a mortgage advisor as soon as possible and get your name removed if you can, as that is definitely your safest bet. If this isn’t an option, then there still be hope for you to get a second mortgage. Book your free mortgage appointment and we’ll be happy to go over this with you.

A Guide to Remortgages in Harrogate: Top Reasons to Consider

A Guide to Remortgaging | MoneymanTV

Beginning your mortgage journey can come with its up and downs, however, the overall process is a rewarding one. You have achieved a life goal of owning your own home and can set you up for any future goals for yourself like having children or starting a family. In particular, as a First Time Buyer in Harrogate, getting the keys to your first home can be a huge financial achievement.

Your reason for owning may be that you are wanting a sense of security and somewhere to call yours. From this, you have found that a mortgage is cheaper than renting. Regardless of the hurdles and challenges, you may have along the way, you will inevitably end up further onto the property ladder or in a position to make an investment purchase to provide some further income.

What is a Remortgage, and how does it work?

A remortgage is when you apply to take out a new mortgage product on a property that you already own to either your current mortgage or borrow additional money against your property. If you are wanting to take out a new mortgage product with your current lender, you can negotiate this which is known as a product transfer.


Regardless of whether you are looking to remortgage or take out a product transfer you will find that a lot of products out there all have their own collection of different deals and rates available. Like with many products, there are always the ones most people go for and this is the case with remortgage products that are accessible to many homeowners, further down the page we have highlighted the most popular ones.

You may be wondering when is the time for a remortgage. It might be as simple as your circumstances changing or it could be that you are looking at securing a better deal, funding home improvements, consolidating debt or releasing equity.

Remortge Advice in Cardiff Reasons to Consider

Remortgage for a Better Rate

Usually, a fixed mortgage term lasts between 2 and 5 years. At the time, you will be paying off some interest and capital and when it comes to your remortgage, 2-5 years down the line, you may be able to qualify for a lower loan to value bracket. By doing this, you are open to better rates.

Alternately, you may find yourself not wanting to remortgage, but this can mean you are risking yourself going onto a lender’s standard variable rate of interest (SVR). This is something you progress onto if you have decided not to remortgage and can be a risk because you could be paying much higher than what you currently are. If you remortgage before this happens and you fit into a better loan to value bracket this could open opportunities for a better rate saving you money each month.

In the case you have been placed on a tracker mortgage, you will find that your monthly payments and interest corresponds with the Bank of England’s base rate. This can fluctuate depending on the economy’s performance. For instance, if the economy has dipped, base rates may lower, and vice versa. It can be common for Lenders to have an additional percentage onto this base rate that you are normally tracking a rate between 2-4%.

Remortgage for Home Improvements

If you have been on the property journey and are settled into your new home, you might look at giving your property some home improvements like a new extension, conversion or redecorating. Remortgage can be an option for you to get this work done through the funding of the remortgage.

Before carrying out any of these home improvements, you will need to have estimated costs and have some idea of how much it will cost you. From this, you can include these costs into your mortgage when taking out a new product. Depending on what your home goals are, your monthly payments may increase.

Whether if you are looking to start having children/starting a family, want to add value to your home or add some home improvements, we would recommend remortgaging instead of going through the process of having to sell and buy a property simultaneously. It can be easier to improve your current home.

Remortgage for Changes to Your Term

You could be looking to Remortgage to extend or shorten your term and switch to a more flexible product which will lead to paying off your mortgage quicker. The negative to this is that you will have higher repayments but extending your term does mean that you will reduce your payments and be paying off your mortgage a lot louder.

You do have the option to extend your term during this process. If you shorten your term, it will lead to overpaying which results in your mortgage being paid off quicker.

A flexible mortgage may sound like a good choice, however, it usually correspond n the form of a tracker mortgage. As mentioned, a tracker mortgage works with the Bank of England’s base interest rate, which fluctuates depending on the economy’s performance.

Equity Release

Equity is a way of releasing money from your home with the amount being the sum still owed on the mortgage and the property’s current value. Equity will likely build up the longer you have owned the property. As time goes on, you will be able to remortgage release some of this equity to turn into a lump sum of cash.

What you do with the cash is up to you, some uses include people putting down another deposit on another home to help a family member.

Through our experience as a Mortgage Broker in Harrogate, we usually see that Buy to Let landlords release equity to put down a deposit onto another property to expand their portfolio.

Sometimes, equity release can also come in the form of a lifetime mortgage. Furthermore, you may find a lifetime mortgage is aimed at older homeowners looking to take a large sum out of their home(s).

Debt consolidation

In some cases where you have built up some unsecured debt, you can incorporate this into your mortgage. Debt consolidation can be seen as a complex topic so, speaking to a Mortgage Advisor in Harrogate can be beneficial for you to understand this subject.

Debt consolidation is based on the amount you owe, your property value and your credit rating. Remember, that you need to consider the large sums that will be included into your mortgage which will result in your total mortgage amount increasing.

Please don’t hesitate to contact us if you have bad credit and are seeking help from a mortgage expert. Here at Harrogatemoneyman, our team can help you with your needs and circumstances.

Expert Remortgage Advisors in Harrogate?

If you are at the remortgage stage in your property journey and are coming to the end of your fixed mortgage term, our team can help get prepared for this and aim to take the stress away by doing it for you.

It’s best to start looking into deals 6 months before your deal ends.

Book yourself in for a free remortgage appointment online with one of our knowledgeable advisors in providing Remortgage Advice in Harrogate. Our team can help you through your process by finding you the most appropriate deal that fits well within your personal and financial circumstances.

What is a 95% Mortgage?

A 95% mortgage is as simple as the name would suggest; you are borrowing against 95% of the price of a property, and then you are covering the remaining 5% with your deposit. An example of this is if you looked at buying a property that was worth £150,000 with a 95% mortgage, you would be putting down £7,500 as your deposit and borrow the remaining £142,500 from the lender. 

95% Mortgage Advice in Harrogate

Off the back of the March 2021 Budget, Boris Johnson announced a Mortgage Guarantee Scheme for mortgage lenders, making 95% mortgages more readily available from the bigger high street banks.   

This is fantastic news for First-Time Buyers and Home Movers alike, as this scheme will continue running until December 2022. Certain terms and conditions will apply though, which is something your Mortgage Advisor in Harrogate will be able to look at, to see if you qualify.    

All our customers who opt to Get in Touch will receive a free, no-obligation mortgage consultation where one of our dedicated mortgage advisors will be able to make a recommendation on the best possible route for you to take.

Can I get a 95% mortgage?

95% mortgages are usually accessible by both First-Time Buyers in Harrogate & those who are Moving Home in Harrogate. Whilst saving for a 5% deposit sounds like a pretty straightforward concept, you’ll still need to have an acceptable credit score and prove that you are able to afford your monthly mortgage repayments, in order to access a 95% mortgage.

Improving your credit score

A good credit score is essential in the process of obtaining any mortgage, especially a 95% mortgage. Things like paying any current credit commitments on time, ensuring your addresses are updated and checking that you’re on the voters roll, can all help with your credit score.

Affordability 

Affordability is another one that is important to take note of. By giving the lender details of your income and monthly outgoings (things like your bank statements will be necessary for this) and any pre-existing credit commitments, your lender will be able to get a general overview of whether or not you are able to afford this type of mortgage.

Can my family help me get a 95% mortgage?

Nowadays we see lots of family members helping each other get onto the property ladder, especially parents looking to further their children’s lives. The way this usually happens is by gifting the person looking to find their home, the deposit required. Known through the industry as the “Bank of Mum & Dad, Gifted Deposits are only intended to be a gift, and not as a loan. The lender will need proof that this has been agreed, before it can be used towards your mortgage. 

How do I choose the right 95% mortgage?

When looking for a 95% mortgage, you want to make sure you have the right type of mortgage. Each mortgage type works differently, with that choice allowing you to find one that is most appropriate for your personal and financial situation. 

Some homeowners and home buyers prefer Fixed Rate or Tracker Mortgages, mortgage types which mean you either keep interest rates at a set amount for the term given or have your interest rates tracking the Bank of England base rates.

Alternatively, you might find that Interest-Only or a Repayment Mortgages are more your style. Interest-Only allows cheaper payments until you need to pay a lump sum at the end (mostly now used for Buy-to-Lets), whereas a Repayment mortgage (a normal mortgage if you’d like) means you’ll be paying interest and capital combined per month.

How can a bigger deposit help with my mortgage? 

Seeing as a mortgage is such a large financial outgoing, you need to be prepared and need to be aware. You might find things like higher interest rates, remortgaging difficulties due to less equity and then negative equity all cropping up if you’re not. 

There is no need to worry though, as all these can be avoided if you’re savvy enough with your process to begin with. The more deposit you put down for a property, the less risk the lender will see you as. 

A larger deposit, of say 10-15%, would not only reduce the rates of interest by a noticeable amount, but would also give the property more equity and reduce the risk of negative equity, thanks in part to you borrowing less against the property. 

So, whilst the risks may seem intimidating, planning ahead and saving for a bigger deposit to access something like a 90% or even an 85% mortgage will be a massive help in your mortgage journey and something you’ll be able to reap the rewards from in the future. 

How to Improve your Credit Score in Harrogate

Mortgage Advice in Harrogate

Ways to improve your credit score | moneymanTV

What is a credit score?

A credit score is a tool that lenders use to measure whether or not an applicant can afford a mortgage or not. The higher your credit score, the more likely it is that you’ll get accepted for a mortgage. Which means that if you have a low credit score, your chances of getting a mortgage are lowered.

Having a high credit score may sound great, however, it doesn’t guarantee you a mortgage in any way. Each lender has their own unique lending criteria and it’s more than likely that you won’t meet all of them. Sometimes it’s down to your circumstances and not just your score.

Matching lender’s criteria

It is more than likely that each lender will have completely different lending criteria. Lenders have almost carved out their own niche market. You could end up matching with lots of lenders or it may only be a couple, but all that matters is that you match with one and get an amazing mortgage deal from it!

Whether you receive help from a Mortgage Broker in Harrogate or go solo and use your bank, it’s their job to help you compare deals and match you with a lender.

As a Mortgage Broker in Harrogate, we would always recommend taking up our free mortgage consultation offer. This way, we can evaluate your situation and compare deals for you straight away. If you go to a bank, you could just be added to a waiting list.

If you are struggling to match a lender’s criteria, it could be down to multiple things or maybe just one. The most common reason why people don’t match their lender’s criteria is that they have a low credit score. If this is your situation, then you need to find some ways to improve your credit score.

Improving your credit score

Avoid unnecessary credit searches

Having unnecessary credit searches on your file could negatively impact your credit score. Lenders don’t particularly like seeing repeated credit checks; they may think that there is a reason behind it and they may even start asking you questions about it. Even using price comparison websites could damage your score.

On another note, if you are applying for a mortgage, it is unwise to apply for any form of extra credit in the meantime of your application.

If you manage to pay back owed money before your application, it will look good on your file, however, if you are borrowing/paying back money during your application, it will have a reverse effect. If you borrow credit, some lenders’ could think that you cannot afford the deposit and are relying on the credit to help you.

How to Improve Credit Score Harrogate, UK

Are you registered on the Voter’s Roll?

A great way to improve your credit score is to register onto the Voter’s Roll. Lenders love seeing applicants that are registered on it as it indicates stability. It’s really easy to get yourself registered and the fact that it can boost your credit score surely means that you have to sign up if you haven’t before!

Even if you are already registered, it’s always a good idea to double-check that you have entered all of your information correctly. If you have an old address on their system, lenders will easily spot this mistake and it could go against your score.

Don’t run too close to your maximum limit

Maxing out your card each month will have a detrimental effect on your credit score. If you are using a credit card, a lender would much rather that you pay off the full balance each month rather than cutting it short. Showing you can meet set payments each month shows reliability and can help your chances of being accepted for a mortgage.

On the other hand, if you are doing the opposite and exceeding your credit limits or overdrafts, your lender will think that you don’t take your finances seriously. This could massively impact your credit score, especially if you get declined by a lender due to this reason.

Check that your address is up to date

Your address should always be up-to-date. People usually get caught out when they move out from their parent’s house and forget to update all of their address’.

If you forget to change your address on things such as credit accounts, it will appear that you are living in two separate places. This can hurt your credit score once lenders see this so make sure that you are keeping on top of what address’ are linked with each of your accounts.

Close down your unused credit accounts

If you have any store/credit cards that are no longer in use, you should contact the provider and get them to fully close down your old account(s). These types of accounts are probably doing more damage than you think.

However, if you manage to close your account(s) it could still have a negative effect on your credit score as the credit reference can’t really tell if it’s you closing the account or the provider.

Don’t worry about this, if they ask, you will have to explain and it could work in your favour as you are proving that you want to improve your chances of being accepted.

Remember that it’s always good to check up on these types of things just in case. For example, you could’ve lost a card and you didn’t realise, then you fall victim for fraud. This could end up having a worse effect on your score.

Remove your financial link to others

People often don’t know that they are still financially tied to a family member or ex-partner. If this is the case, it can have a negative effect on your credit score without you even realising.

If the account that you are still tied to is still active, you must know that you will not be able to remove your link just yet. If you want to remove any of these links, then you should get in touch with the credit reference agencies and make a request.

Summary

As a Mortgage Broker in Harrogate, we know that some applicants see credit scoring as an unfair way of determining whether or not you’ll get accepted for a mortgage. For example, you may have a low credit score due to personal circumstances that couldn’t be prevented.

As a Mortgage Broker in Harrogate, we mostly see that it’s people that are Moving Home or Self Employed struggle with their credit score. However, if this isn’t your mortgage situation and you still need help with improving your credit score, you know to get in touch with.

Sending an up-to-date credit report to your expert Mortgage Broker in Harrogate could prove extremely beneficial to your mortgage journey. A great tool that we always recommend to our customers is checkymyfile.com.

Credit Report Harrogate

The more your advisor knows about your finances the better. There are still some lenders out there that prefer to do things the old-fashioned way and will manually assess your application. They will still have rules that they stick by about the number of defaults and CCJ’s that they will allow.

A Mortgage Broker in Harrogate, like us, likes to do things the new way and will always aim to deliver you the same fast and friendly mortgage advice service that you are all used to. We hope to hear from you soon.

In need of a Mortgage Agreement in Principle in Harrogate?

What is an Agreement in Principle?

The purpose of an Agreement in Principle (AIP) is to determine whether or not you pass a Lender credit score to qualify for a potential mortgage. Sometimes this is also referred to as a Decision in Principle.

By obtaining yourself an Agreement in Principle, you are ready to support any potential offers you make as a First-Time Buyer in Harrogate. Having one of these may also put you in a place to negotiate a lower price as it shows the seller you are serious and have the means to proceed with the purchase.

Will obtaining an Agreement in Principle impact my Credit Score? 

Common practice these days seems to lean more towards soft searches, though even these could still affect your credit score. Usually this would be more likely with a hard search, with soft searches generally leaving your credit score unaffected.

The difference between the two, is that a soft search won’t dig as deeply as a hard search. You can always rest assured though that the lender has chosen either with the best of intentions.

Should I stay away from hard credit checks? 

Now and again a hard search or two should be fine. It becomes slightly more problematic if you start having multiple hard searches over a short amount of time. Soft searches won’t show up on your credit report, but a hard search will. This looks bad, especially if you don’t pass the different criteria.

Don’t let this put you off however, as if you know you know you have a good credit score and taking a hard search with that lender is the best deal, you’ll most likely be fine.

Does my Agreement in Principle a guarantee that I will get the Mortgage? 

We really wish it were the case, but sadly no, there are no guarantees that having an Agreement in Principle will get you a mortgage. You still need to present the lender with your documents and it’s only then, that the underwriter will make the final decision on your case.

A regular occurrence here at Harrogatemoneyman, is customers getting in touch after being declined at application stage. This is often down to missing some of the small print mentioned in their Agreement in Principle. You will need to provide identification for proof of who you are, payslips for proof of income, and bank statements for proof of handle your finances the right way. Without these, your case won’t go to offer.

Can I make an offer without having an Agreement in Principle? 

If we were to get technical, the answer is yes you can. However, it is highly unrecommended and any credible estate agent will not proceed without proof that you can proceed.

How long does is the process of getting an Agreement in Principle? 

Within 24 hours of speaking with a mortgage advisor in Harrogate it is possible to obtain an Agreement in Principle.

How long will an Agreement in Principle last?

Generally speaking, an Agreement in Principle will expire around the 30-90 days mark. The good thing is though, that this doesn’t mean you should just apply for the first house you find. If your Agreement in Principle expires, it is relatively straightforward to have it refreshed when you are ready to make an offer on a property.

Finding a mortgage only to be declined a mortgage can be a major disappointment, we get that. We recommend getting an Agreement in Principle as early as you can to avoid that disappointment.

Why Isn’t it Easier to Get a Mortgage in Harrogate?

Mortgage Advice in Harrogate

During our multiple years of working as a Mortgage Broker in Harrogate, we have come across almost every single mortgage hurdle that you could think of. there are many different reasons to why a mortgage may be hard to obtain, let’s take a look at some of the most common reasons:

Passing lenders credit score

One of the first and many struggles of getting a mortgage is being able to pass a lenders credit score. Every single lender has their own individual requirements and criteria that you need to pass before they will offer you a mortgage. Each criteria is unique and it is more than likely that you won’t match every single one, even if you have a high credit score.

As a Mortgage Broker in Harrogate, we often find that people don’t realise that lenders have these strict criteria and end up applying to a lot of them. This can often have a negative effect as the more that you apply for, the more likely it is that you will get declined by some. If you are declined by a lender it can sometimes end up damaging your credits score.

This is why we always tell borrowers, especially First Time Buyers, not rushing into anything. If you are unsure on how to apply for a mortgage or don’t want to risk getting declined if you have had a bad credit history, it may be within your best options to approach a Specialist Mortgage Broker in Harrogate.

A second opinion from a mortgage expert may be exactly what you need to get the ball rolling. In fact, we have over 38 different lenders on panel that we can access for you, there is most likely a deal waiting for you amongst them!

Improving your credit score

Another mortgage obstacle that applicants commonly face is being declined a mortgage due to having a low credit score. What most people don’t realise is that having a low credit score is quite common and there are ways to boost it back up.

There are many different things that could cause someone to have a lower credit score, but remember, the only way is up! In some cases, it’s fairly easy to improve, however, in other cases it can be quite tricky and you may require a Specialist Mortgage Advisor in Harrogate to help you out.

How To Improve Your Credit Score | moneymanTV

Remortgaging

A First Time Buyer mortgage isn’t the only mortgage scenario out there, there are lots of different situations that we come across as a Mortgage Broker in Harrogate. Occasionally, it can be hard to get a mortgage arranged in all circumstances, however, one other mortgage situation that stands out is remortgaging.

Basically, remortgaging is just renewing your mortgage contract, this can be on the same deal or a completely different one if you are open to switching products. In most cases, people remortgage as their deal is approaching its end, however, it can be done midway through a deal if the homeowner wants to remortgage for home improvements, etc.

Remortgaging can be quite stressful, searching through lots of different deals can catch up on you. We do encourage in doing this though, searching through deals through external lenders could allow you to land an even better rate. We always recommend shopping around before rushing into renewing your deal.

If you are struggling to find a better remortgage deal or just don’t want to shop around, you can always try a Mortgage Broker in Harrogate like Harrogatemoneyman. We will sort out everything for you and search through 1000s of remortgage offers in order to try and find you a competitive deal that will be worth your time. 9/10 times we get it right and we find our customer a great mortgage deal that they thought they could never get.

It’s not always the applicant’s fault…

Sometimes, we find that it’s not always the applicant’s fault. A major factor that could determine the outcome of your mortgage is how the economy is performing during the time of your application.

For example, during the coronavirus pandemic, we saw 90% for several months which eventually eased towards 95% with time.

A suffering economy and getting a mortgage do not go hand in hand. In terms of saving money and making the most of your mortgage journey, it may be best to wait it out.

If you take a look back to the mid-2000s (just before the credit crunch), it was ridiculously easy to get a mortgage, anyone could get accepted. Now times have changed and the credit crunch has made lenders realise that they should be much more careful when accepting applicants for a mortgage.

Struggling yourself?

If you are struggling to get your mortgage application started and need some help from an expert Mortgage Advisor in Harrogate, we are always here to offer a helping hand. We know that the mortgage process can be daunting in sometimes scary, so don’t ever hesitate to call us.

Whether you’re a First Time Buyer, Home Mover, Self Employed, looking at Remortgaging or a Buy to Let landlord, we are here to help. Our amazing team of Mortgage Advisors in Harrogate are available 7 days a week and will be ready to answer all of your mortgage questions. Contact us today for a free mortgage consultation.

Which Property Survey to Choose? Mortgage Advice in Harrogate

What is a Property Survey?

Normally, when an offer is accepted on a property the next step is to arrange a property survey. This will re-enforce or adjust the price of the property in relation to the condition that it is in. If something is found on the survey then the buyer is in a position by law to approach the seller to negotiate a price for the works required.

Property Survey Types

You probably didn’t realise that they were different property survey types and if you are a First Time Buyer, you may have not even heard of them! There are three main types of property survey available to you:

  1. Mortgage Valuation
  2. Homebuyer’s Report
  3. Full Structural Survey

Mortgage Valuation

The basic valuation option which is the cheapest available. It will be a requirement to have one of these before the mortgage offer is received. This is not to be confused with a full survey. The mortgage valuation confirms to the lender that the property is worth at least what they are lending to the buyer. Sometimes the mortgage lender may even offer a free basic valuation as part of your deal.

A mortgage valuation will not highlight any repairs that are needed. However, it may point out obvious defects that is recommended to be investigated further.

Homebuyer’s Report

A Homebuyer’s report will cover the properties structural safety and highlight any problems, including damp, as well as anything that doesn’t meet current building regulations. This kind of report will give you an independent report of the property in question by an expert.

To ensure that two surveys aren’t being paid for, it is advisable to ask the mortgage companies surveyor to carry out this report – on average, it takes about a couple of to complete.

Full Structural Survey

A Full Structural Survey is advisable for older properties that are being considered and those of non-standard construction. Depending on the property size and type – a full structural survey can take as long as a day to complete.

This type of survey provides a detailed report on the condition of the property and highlights all issues that should be investigated further before going ahead with the purchase, providing peace of mind about the condition of the property.

You can find a surveyor to carry out a Homebuyers report or building survey through the Royal Institution of Chartered Surveyors.

Why Should I Use a Mortgage Broker in Harrogate?

There are multiple reasons as to why you should use a Mortgage Broker in Harrogate. However, there is still the chance to go direct to a lender if you wish to, with the added option of doing it either in branch or online. Within this article we will include the pros and cons of both methods.

Pros and cons

When choosing the option of going direct to your bank or building society, you won’t have to pay the Broker fee, so that is an advantage in itself. Years ago, the bank manager would know your finances better than anyone but that is not the case since credit scoring was introduced.  Another advantage of doing this would be the fact that some lenders offer exclusive mortgage products that would only be available by going direct. They also use this technique with Brokers too, so that exclusive offers are only available through them. This is put into place to maintain a good spread of business from both customers and brokers.

From 2014, lenders were banned from selling mortgages on a non-advised basis when customer interaction is involved. Up until this point, some applicants were under the impression that they had received advice when in fact they hadn’t and as a result of this, they weren’t able to benefit from parts of the consumer protection that goes along with proper advised mortgage sales.

This change had meant that lenders had to get used to a different system which meant longer waiting times for an appointment and this can still be the case in contemporary settings. This can be a struggle if you’ve just had an offer accepted on a house. The frustration that came with waiting for an appointment led to a rise in applications being made via Brokers due to the same day mortgage service being available.

Before the days of credit scoring and such it was much more difficult to compare mortgages whereas nowadays it’s a lot easier to find a competitive mortgage online. On the other hand, there is an increased difficulty in finding a lender whose criteria and mortgage product is tailored to your circumstances. It is important to keep in mind that the deals with the lowest rates tend to carry high arrangement fees.

Affordability

Affordability is another key point to take on board. A lenders deal could be amazing for you but if they won’t lend you enough money then it’s useless. Most mortgage applications these days aren’t straightforward, for example, you may have:

· Poor credit history 

· Self Employed Income 

· Mixed source of deposit (savings/gift) 

· Let to Buy (keeping your current house and buying another) 

· Contract workers/zero-hours contracts 

· Affordability

Will lenders be lenient?

Most lenders try to stay relevant in the mortgage market by offering a better deal than their competition. The way they do this is by differentiating themselves on Lending Criteria. For example, some will be more lenient with Self Employed applicants or take a more sympathetic view on faults on a credit report.

Every mortgage situation is unique but if you approach an experienced Mortgage Broker in Harrogate then they will be able to reflect on past cases to see if there is a similar solution to decide the best outcome and hopefully find the lowest rate that’s available. 

But it’s not just about getting the mortgage. Even if an application itself is straightforward, we find that our customers rely on us for many other things. For example, we sit down and discuss how much they are going to offer on the property that they are buying. We often recommend other professional services too such as Solicitors and explain the different types of survey and protection available.

Speak to a Mortgage Advisor in Harrogate

Another key aspect which benefits customers is responsiveness which you are guaranteed with one of our Mortgage Advisors in Harrogate, with our Mortgage Broker in Harrogate we make sure that out of hours and weekend appointments are available along with responding to clients’ emails on an evening outside of office hours.

An overlooked factor of why a Mortgage Broker in Harrogate might be preferable is purely for the fact of time. Everyone is prone to have periods in their life when they’re just too busy and a mortgage application can sometimes be stressful and time-consuming.

Our Mortgage Advisors in Harrogate aim to take this stress away and handle the full transaction for you. Professional applicants see the real extent of the advantages of this as they have customers of their own that they charge out their services to so they see the reasons to have an expert on board.

Lenders are on par with Brokers in some departments but in others they are yet to step up. Perhaps lenders may want to advance ahead of Mortgage Brokers and will most likely avoid staffing up their branch networks and instead make investments in technology to transact with customers online which may be a disadvantage for customers who prefer a more face to face approach that’s available with our Mortgage Advisors in Harrogate.

How to get a Mortgage if You’re Over 40 

Surveys carried out by the Nottingham Building Society revealed that almost half had stated that they had experienced a high majority of turned down Mortgage applications from clients in their 40’s. 

When customers, aged between 45 & 54, were directly asked they had said they thought it was down to their age. There are various factors as to why I people are experiencing this and what positive steps a person can make if an application is made later in life. 

To delve into this deeper, it’s best to look at the days of computerised credit scoring and increased regulation. If a customer went into their local Building Society for a mortgage, then they would speak to a Mortgage Advisor. The Advisor would individually assess personal details which are brought forward and then decide on the outcome of the application.

If an application was approved, then the next step would be overseeing the amount which is allowed to be borrowed. The way this will be worked out would be expressed quite simply as a multiple of your gross salary, e.g if you were earning £20,000 per annum and the lender’s income multiple was 3.5x then the allowed mortgage amount would be £70,000. 

However, this income multiple method didn’t take account of age. Therefore, it didn’t matter if a person was 30 or 50 years of age, the same amount of money is allowed to be borrowed. 

But by looking into this further if two applicants consisting of the ages of 30 and 50 years of age were both due to retire at the age of 65 then the first applicant would be granted a mortgage term of up to 35 years, whereas the second applicant would only hold 15 years to be able to make their monthly payments which would make them much higher. 

Example

Let’s take the above £70,000 mortgage and use that as an example, using a notional interest rate of 5%:

  • Applicant one mortgage payments on £70,000 over 35 years: £252pm approx. 
  • Applicant two mortgage payments of £70,000 over 15 years: £395pm approx. 

So here now there are two identical earners with the same mortgage debt, but applicant two’s monthly payment is considerably higher. If interest rates went up, then the risk of arrears is increasingly higher for applicant two than applicant one. Therefore, modern mortgage calculators now consider the maximum term of the mortgage as well as your income and expenditure.

You’ll have to borrow a lower amount

It’s not so much that older customers are being turned down but that they are being told the amount they are able to borrow is lower than the amount they had in mind. Of course, the general public is constantly being reminded that we are going to have to work until a later age by the Government before qualifying for our State Pension. It is clear that banks don’t seem to be taking this into account when granting mortgages. This can be explored further:

Firstly, some occupations involving manual work won’t be fit for a person to work into their seventies and beyond.

Also, lenders are closely monitored by the Regulator in terms of repossessions and arrears cases which means they want to minimise this risk. The process of taking a property into possession can be very costly and may attract bad press for the lenders reputation. Therefore when after approving mortgages for mature applicants they don’t want to be seen kicking a vulnerable older person because they couldn’t afford their payments. 

The good news is lenders will consider granting mortgages past normal retirement ages if sufficient evidence is showing affordability can be kept up with after retirement. This could include a letter from your Pension provider with a projection of your future income. An issue here is that most people will likely take a reduction in income at retirement. Therefore, you will need to prove that the mortgage monthly payments can still be paid from that reduced income. In practice, this hardly ever works unless a very small mortgage is granted. 

Retirement

The default retirement age was scrapped in 2011 and employers can no longer force an employee to retire. As such whilst lenders use the State Retirement age as the age that the mortgage must be paid off, it has become more normal for them to let the intended retirement age be self-declared.

If you find yourself in this position then you must prepare to be questioned on how you will afford your mortgage in later years. The consumer protections and regulations are in place to protect consumers and encourage prudent lending. If you need the mortgage term to run past your normal state retirement age you will need to demonstrate how you will sustain payments and provide proofs if requested. 

Our Specialist Mortgage Advisors in Harrogate will be able to talk this through with you and find the best way for your mortgage application to go ahead and the best options available to you.

Remortgage For A Home Office in Harrogate

The rise of COVID-19 has meant that a lot of people are now having to change the way they work whilst at the same time, warming up to working from home due to the benefits that it holds. Certain benefits can include:

– Home Workers are often more productive

– No lost travelling time 

– Less travelling is also better for the environment

– Telephone and Video meetings tend to be shorter, again good for increased productivity

– Flexible 

– Better for families

In the past, relocating for work or for a better living environment isn’t an uncommon situation. However, now that the general public are realising that working from home means this doesn’t have to be the case means that they are able to shape their home to fit in a new workspace such as a home office which will help shape their home around this situation. This brings more value to the statement of ‘improve, not move’.

The price of converting an existing room can be somewhat low cost and can range between £5 – 15,000. Recently interest rates have been dropping for a considerable amount of time and remains to be low which could mean that upcoming monthly mortgage payments will increase by an affordable amount.

Assuming an interest rate of 2% is possible over 25 years it might cost you:

– £21pm for £5,000

– £64pm for £15,000

How to remortgage for a home office

You will have to remortgage a property to be able to raise additional funds in order to remortgage for a home office. These funds will let whichever room is chosen to be converted. The most common choice is a spare room or a garage.

The first step of the process will be to find a remortgage deal. If you choose to go on your own and go directly to a bank, you will only be allowed to access deals that are offered by them. By going further than your bank you’ll be opened up to more deals that could potentially mean that you’re better off in the long term.

Our Mortgage Broker in Harrogate is able to be on hand to be able to look through thousands of remortgage deals so that you end up with the one that will suit you the most. We make it so as our Remortgage Advisors in Harrogate only keep your best interests at heart.

The costs of a home office

For the cost of a home office, you will need to find out an estimate of how much the work that will be carried out will cost. Such things as room size and how much work will be needed on the room in order to get it in shape will also be needed to be taken into consideration.

Some of the lowest rates that have been present in the mortgage market are present right now and so the money that you are able to save by converting will extend further than your remortgage.

Are you looking to remortgage for home improvements?

If you’re thinking about setting up a remortgage then our Mortgage Advisors in Harrogate have accumulated experience from numerous years of been in the mortgage field. By approaching our Mortgage Broker in Harrogate, we’ll assist you with the process as you may find the lender might extend the time frame of your remortgage process.

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© 2022 Harrogatemoneyman

Harrogatemoneyman – Workhub Harrogate, C/O Umbrella Property Group, 12 Station Parade, Harrogate, HG1 1UE.

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