Remortgaging in Harrogate When House Value Has Increased

Owning a property, whether it’s your family home or a buy to let in Harrogate, is seen as a valuable asset. It goes beyond providing shelter; it’s a substantial investment that can be sold or passed down to future generations.

The property market is dynamic, with prices fluctuating over time. During periods of price increases, it can be beneficial to explore remortgage options, as you may have the opportunity to access more favourable loan-to-value ratios and better interest rates.

What is loan-to-value (LTV), and why do people consider remortgaging in Harrogate to improve it?

Loan-to-value (LTV) is the ratio of the mortgage amount to the property’s market value, expressed as a percentage. For example, if you buy a property for £100,000 with a £10,000 deposit, you’ll need a 90% LTV mortgage.

Different mortgage lenders offer varying LTV brackets, typically ranging from 60% to 95%. Lower LTV ratios allow access to mortgage deals with more competitive interest rates.

Let’s say your property value has increased to £110,000, and your outstanding mortgage balance is now £80,000. This results in a new LTV of 73%. By remortgaging in Harrogate, you could potentially secure a 75% LTV mortgage with a more competitive interest rate.

Market conditions also influence the interest rate available at the time of remortgaging in Harrogate. Lower LTV mortgages tend to have better interest rates because they present less risk to the mortgage lender.

How can I determine the value of my property?

To access better rates or terms, you need to establish whether your property’s value has increased since you purchased it. To do this, a valuation of your home will be necessary.

When you remortgage in Harrogate, you’ll be switching to a new mortgage lender, unlike a product transfer where you remain with the same mortgage lender.

As a new mortgage lender, they will require a valuation to determine the property’s value against which they are lending. Two types of property valuations will typically be found.

The first is an Automated Valuation Model (AVM), also known as a desktop valuation. It involves cross-referencing similar properties in the area to estimate the value without a physical inspection.

The alternative is a physical valuation, where an expert visits your property to assess its interior and exterior, providing a more accurate value. This method is particularly useful if you have made home improvements or extensions that an AVM might overlook.

You can discuss your preference with your mortgage advisor in Harrogate during your appointment.

Remortgaging in Harrogate to Release Equity When Home Value Has Increased

Sometimes, homeowners choose to remortgage in Harrogate to release equity. This means taking out a new mortgage with a higher loan-to-value ratio. It’s important to be cautious when considering this option. With a higher LTV, your monthly mortgage payments may increase.

The goal is to invest in home improvements, which would hopefully see an increase in the property’s value. This strategy aims to lower the loan-to-value ratio when you remortgage in Harrogate in the future.

It’s essential to devise a well-thought-out plan, especially when dealing with a significant financial investment like your home. A mortgage advisor in Harrogate can guide you in determining the best approach for your situation.

Can I remortgage in Harrogate early if my home’s value has increased?

In some cases, homeowners may think about remortgaging in Harrogate before their fixed-term ends, even as early as a year in advance. It is important to remember that breaking the agreed terms of your mortgage contract usually means paying an early repayment charge (ERC).

Predicting house prices is challenging, and the market’s conditions can be uncertain. While remortgaging in Harrogate early may seem attractive, it might not be financially viable for everyone. People typically consider early exit from their mortgage when there’s a good reason to do so.

In such cases, it’s highly recommended to involve a mortgage broker in Harrogate.

For instance, during the COVID-19 pandemic, when the Bank of England base rate reached record lows, homeowners at the end of their fixed-rate mortgage period had the opportunity to benefit from lower interest rates through remortgaging in Harrogate.

If you were a year away from that point, however, you could only take advantage of this by remortgaging in Harrogate early and fixing the mortgage for a longer period. This is a unique example from an unusual time, as mortgage lenders also limited product availability, reducing options for many borrowers.

Nevertheless, it demonstrates a scenario where early remortgaging could provide financial benefits. If your home’s value has risen, it could be an opportune time to remortgage in Harrogate, as the savings from accessing a lower loan-to-value ratio may outweigh the associated costs.

Please do keep in mind the potential early repayment charge, as well as arrangement, valuation, and solicitor fees for the new mortgage. To fully understand your options, it’s recommended that you speak with a mortgage broker in Harrogate.

10 Factors to Help You Decide Where to Live in Harrogate

Before you make a start on the process of moving home in Harrogate, you first need to come up with a plan of what you want. Many will want to move to a new location and have a fresh start, whilst others may want the same location but a bigger property, to name a few reasons.

You need to give some thought to the area you are in, what your current situation is and whether you expect that to change. In an ideal world, when you move home in Harrogate, you need to consider how things might change in the next 5 or 10 years, maybe more?

To give you a nudge in the right direction and give you plenty to consider ahead of the next step in your home owning journey, we have put together a list of 10 factors that could help you to decide where to move house in Harrogate.

1. Busy town centre or relaxing countryside?

First of all, we would suggest that you take a look at the area that you are looking to buy a house in. Do you want to live in the busy town centre of Harrogate or would you prefer something a little quieter, perhaps in the countryside?

Typically speaking, we find that first time buyers in Harrogate prefer to live closer to towns and cities, whereas people with families, who have perhaps been homeowners for a few years, may move out of the busier areas to settle down for a much quieter life.

There are no doubt pros and cons to both of these options, though at the end of the day, it’s all down to personal preference!

2. Transport Links

Transport links are quite a large factor to think about when you are considering where to live, which is even more so the case when you are working out where it is you want to live.

If you typically go to work via driving and have a job that is situated outside of where you are living, you should consider seeing how easy it is to get onto the motorway or busier roads.

If you are unable to drive and you happen to heavily rely on public transport to commute to and from your place of work, it may be worth your while looking at an area that is closer to where it is you work, to provide you with easier access to public transport.

You should also bear in mind the amount that it will cost to travel if you do, as those costs could run high. Additionally, it could be worth moving as close to your work as you can, maybe considering things like walking or biking as a way to reduce your carbon footprint.

3. Schools & Education

Families will need to take a look at all the nearby schools and education opportunities too, whilst they are property hunting. If your kids are still in school, you might find this a little challenging, as you will have to decide whether or not to keep them where they are or move them to another school.

It will mostly be dependant on how far it is you are planning to move away. If your children are younger, this might be a little easier for you.

If you currently don’t have a family of your own but are thinking about starting one, it will be worth your time looking at this ahead of time. When you eventually do have children and they are ready to start school, it will be much easier to already be aware of your options.

4. Nearby Facilities – What You Need vs What You Want

When moving to a new area, there will be many different things that you want nearby. Although, there is a difference between what you want nearby and what you need nearby.

We would advise separating nearby facilities with ‘what you want vs what you need’. For example, you want to have a gym nearby, however, having shops nearby is more important and something that you need.

Having a gym nearby is what we call ‘an added bonus’ and is not one of the main reasons why someone should live in an area.

5. Friends & Family

If you tend to see your family and friends more often, it may be challenging for you to even consider moving further away. We often find that conversely to this, people actually will often move closer to family and friends, as one of their primary reasons is to see them more.

This is a scenario that tends to be much more popular with young families in Harrogate who move closer to family and friends, as a way of getting help with raising their children. This a perk you lose if you move away, unfortunately!

6. Is the property good value for money?

When you look to buy a property, you first need to make sure that the properties you are looking at are actually worth what it is the seller is asking for it.

We would suggest that you take a look at recently sold house prices for that area on websites like Rightmove or Zoopla, as a way to double-check you aren’t paying over the odds for a property. If you are overpaying, a mortgage lender might down-value the property when they do their valuation.

If you are a first time buyer in Harrogate, you simply be looking to find something cheap and cheerful as your first home, so that you are at least on the property ladder. This still doesn’t mean you shouldn’t check house prices in the area, however, as you still need to make sure it is worth the costs.

7. What is the community like?

The way the local community of an area is like can have an impact on how your living experience will be as well. Some people love to live in busy, vibrant communities with regular events and celebrations. Others will prefer to be quiet and do very little.

As a mortgage broker in Harrogate, we would suggest that when someone looks at moving home in Harrogate, that they should look online to find out what the local area is like. Checking forum threads, Facebook groups and local news can help you to get a good idea of this.

8. Career Changes

A lot of home buyers will be moving home because they have actually decided to take a new job or even take on a new career altogether. This is a very common reason we hear for people moving home!

You will also have to bear in mind the various transport links when moving to a new area and how this could affect your job. Is it viable for you to move closer to work and yet also be within reach of friends and family?

There may very well be places that are easy enough for you to travel to your new place of work and aren’t too far from your new home.

Many home buyers will not be affected by this anymore, as the new modern approach to work is to actually just work from home. This could be a factor too, as you may require space for a home office, whilst factoring in still getting to your workplace, if they ever require you in person.

9. Type of Property

There are a wide variety of different property types that are available to property purchasers on the open market. Depending on the size of the property you are looking for, you may find that you don’t have as many choices for where you want to live.

For example, terraced and semi-detached houses are usually found in and around cities or towns, whilst you can find a larger property usually outside of those areas. If you have a particular property type in mind already, say a detached house, there may not be any near where you were hoping to buy.

It will also be quite dependant on your personal factors, such as how big your family is, how you might expect it to grow, what your future plans are and your financial circumstances. It is worth looking at other properties on the internet to gauge the average housing prices for a set area and property type.

10. Local Developments

If there has been a proposal for a local development, it is handy for you to be aware of this prior to committing to a property purchase, especially if you have high hopes and are looking to build your life around this new home.

An example of a local investment could be something like an entire housing estate that is either proposed or is set to be finished soon. Something like this could change the environment, altering what seems quiet to you at first, making for a much more active community.

Free Mortgage Appointment for Home Movers

When you have gone through all of the factors listed and have made plans for where you wish to live next, the next step for you to take is to get in touch with a mortgage advisor in Harrogate and get the ball rolling on your mortgage process!

We are an experienced and reputable mortgage broker in Harrogate, helping many home buyers in Harrogate over the years. We offer all of our customers a free home movers review or first time buyer mortgage appointment, with a qualified mortgage advisor in Harrogate.

Book online today and we will see how we can help you out with your home buying journey!

The Importance of Changing Your Address in Harrogate

Moving Home Mortgage Advice in Harrogate

When taking out any kind of mortgage, your lender will check your credit score to help them determine what sort of applicant you are. They often base it on trustworthiness so that they can work out whether you are the type of applicant that will be able to meet their mortgage payments month-on-month.

You may think that they just look at your income, and expenditures when assessing your credit file and finances, however, this is not the case, they will look at everything!

What can affect my credit score?

Your credit file is usually based on a score from 1-1000. This score is calculated through an in-depth analysis of your finances. They will look at your current financial situation such as your bank balance (including other accounts like your savings) and whether you are in debt. Usually, they will also factor in your monthly income, expenditures, and current financial agreements using your bank statements.

Amongst other small bits here and there, your recent addresses will also be factored in. It is quite clever actually!

How do my previous addresses affect my credit score?

On your credit file, there will be a list of your previous addresses; unfortunately, the more addresses that are on there, the more likely that your credit score will be affected. The reason for this is that lenders may see that you were unable to stick down a property. This could affect your more if you are a younger applicant too.

Don’t take this the wrong way though! As a mortgage broker in Harrogate, we have seen applicants deliberately leaving off addresses from their files to try and increase their chances of getting accepted for a mortgage; it is important that you do not do this.

For those who choose to leave off an address, it is usually where they have moved out of their parent’s home into rented accommodation. Normally, not changing to their new address on their bank statements, credit card and electoral roll.

So, why does this affect your credit score? If your lender can see on your credit file that half of your accounts are linked with one address and the other half are linked with a different address, where do you actually live? They need to know where you currently live and want everything to line up correctly.

Best practices when updating your address in Harrogate

All of our mortgage advisors in Harrogate would say the same thing – “check everything!”. From your delivery addresses in your Amazon account to your online car/home insurance search, anything where you have to enter an address in, use your current one.

We would also recommend double-checking that all of your credit cards and store accounts are linked to your current address. This way, when you are looking at moving home in Harrogate, everything matches up and your lender can’t pull you up on your addresses not matching.

As a mortgage broker in Harrogate, when going through the mortgage process with you, we will make sure that all of your addresses line up and help you make the correct changes so that you stand the best chance possible of getting the mortgage that you want.

Impress the mortgage lender

Remember that lenders are looking for reliability and someone who has their finances in order. Keeping your addresses up-to-date can sometimes be a painstaking task, however, it always pays off when you come to submitting your mortgage application and you don’t have any trip-ups.

Getting mortgage advice in Harrogate is always an option when it comes to situations like this. Our advisors would love to help you through your mortgage application to overcome any mortgage hurdles you may face along the way.

Moving home mortgages in Harrogate

We have been helping applicants in Harrogate for over 20 years prepare their mortgage applications. Whether you are a first time buyer in Harrogate or looking at moving home, we are here to help!

At Harrogatemoneyman, all situations are considered, and anyone can qualify for a free mortgage appointment with a mortgage advisor in Harrogate. Just give our team a ring or book your free appointment online, it’s up to you how you get in touch.

What is a Cashback Mortgage?

Cashback Mortgage Advice in Harrogate

We regularly receive enquiries from customers regarding a variety of mortgage types. One we come across every now and again is a cashback mortgage.

In this article, it is our goal to answer all the main questions we hear from customers regarding the topic of cashback mortgages. These include whether or not the mortgage type will benefit you in the long or short term, as well as how it may compare to other mortgage options.

What is a Cashback Mortgage?

Cashback mortgages are a rather self-explanatory type of mortgage available to applicants. After you have finally paid off your mortgage or once your mortgage term has come to an end, you will receive some cash back in your pocket.

The amount that you can get back is usually a percentage of what you have borrowed, say around 1 or 2%. Some lenders will prefer to have a fixed price written in the contract, meaning even with a longer term, your amount won’t change.

Will a Cashback Mortgage benefit me?

Cashback mortgages tend to have both advantages and disadvantages. For example, Cashback Mortgages may also bring along with them a free property valuation or some fringe benefits.

Cashback Mortgages are generally quite attractive mortgage types to customers that are borrowing much smaller mortgages. You will make back some money plus be granted some additional benefits on the side.

If your mortgage lender offers you a reasonable percentage on your Cashback Mortgage, it is worth considering, as this could be a benefit to you in the long term.

One of the main disadvantages to a cashback mortgage is that they have also been known to have rather high interest-rates with them as well.

Different Types of Mortgages in Harrogate

Compared to the other types of mortgages that are available, Cashback Mortgages are often not the most popular mortgages to go with, though they are absolutely worth considering.

We still see come across customers at Harrogatemoneyman every so often who are looking for Cashback Mortgages, and they are a great backup option if you perhaps don’t quite meet the criteria for other mortgage types.

If you would like to receive a much more in-depth viewpoint, be sure to book your free mortgage appointment online. Here you will be able to benefit from Specialist Mortgage Advice in Harrogate.

A member of our brilliant team of mortgage advisors in Harrogate will be able to take a look at your case and determine whether or not this is the right option for you, comparing everything else that may be available to you.

Top Tips on How to Sell Your Home Quickly in Harrogate

Make The Most of Selling Your Home in Harrogate

First Impressions Count

It’s common for many home buyers to make a decision within minutes of visiting a property they are interested in viewing, regardless of if they want to proceed with the purchase or not. In some cases, the viewer may be an existing homeowner who will need to decide quickly in order for them to move on with the sale of their own property.

Equity is worked out by the amount at which you sell for, minus your current mortgage balance. From this, the amount will go towards a security deposit for the next purchase that you make if you are Moving Home in Harrogate. Furthermore, savings or a gifted deposit can be able to top this amount up.

Most of the time, there will be a very specific minimum amount that the seller of a property is willing to accept for a sale to be agreed upon. On the other hand, when you list your home for sale, it is key to market and presents your home in the most impressionable way possible. This can have a huge impact on how quickly you’re able to sell it.

Be Reasonable

You need to think whether your asking price reflects the general standard of those in the local area. Be fair with the amount you’re looking to sell for, with some estate agents potentially suggesting the highest possible price without any credibility behind the suggestion.

Advertising on Zoopla and Rightmove is a popular option many sellers go for. Therefore, we would strongly suggest you get your property listed there and make the leap into the market by getting as many properties primarily in the first two weeks.

In the situation where your property seems to be low in interest, it’s likely that the property has been overvalued and the price will need to drop.

Researching is something many homeowners prefer to go before they start to look at putting their current property on the market. This would either be online or by visiting other properties to see which one they might call home down the line.

If you are in the exact situation or something similar, below are some helpful tips for you to sell your home as quickly as possible.

Home Selling Tips for Homeowners

Attention to Detail

To start, you need to step away from your opinion of your home as someone who has lived there and put yourself in the shoes of someone who is seeing your house for the first time. This may be a challenge to do and strange but it can help. Look at how your home looks on the outside, as that’s the first thing people will see when driving or walking up to it.

It’s the little things that can make the biggest impact, therefore, carrying out tasks like jet washing your drive and neatly mowing your lawn shows that you have taken a lot of time and effort in making your home look good. You want the viewers to instantly be impressed by your property so the outside should be equally as presentable as the inside.

Do you have children?

For sellers with families, it is best that you put away any bikes or loose toys that have been left about in the front garden. Clean up your front door to make it look well maintained and that your doorbell (if you have one) is working. As an extra touch, you may want to spend some money on a nice new doormat or ‘welcome’ sign to create an inviting atmosphere.

Upkeep

Have a thorough approach when inspecting each room in your home especially rooms like the kitchen or bathroom. You want them to look sparkly clean and hygienic. Storage spaces lie cupboards and wardrobes need to be tidied up, organising items so they look neat.

It’s paramount for you to make your home as clean and presentable. Be thorough in your cleaning, wash your curtains and blinds, wipe down your walls and clean all your floors and windows. Furthermore, you need to carry out any repairs and make sure to put clean bedding on the beds.

Wipe your windows, making sure they’re smear free and sparkling inside and out. Look at placing new carpets in smaller rooms as this can be a cost-effective way to make your property look fresher and newer. It can also provide a more welcoming impression on the home showing it has been well cared for.

Smokers will need to look at airing their rooms out before the potential buyer arrives to view it. Eliminate any bad smells by opening windows, and adding an air freshener in each room, this also applies to any other smell like pets.

Atmosphere

In an ideal world, you want your viewer to feel as relaxed as possible when they are viewing your property, so it’s best to avoid having pets or young children getting in the way as they are trying to take it all in.

If you are selling a family home, it might be nice to put up a selection of nice family pictures and paintings that can build up a brilliant image of your property being the place to raise a family in.

Many home buyers, in particular First Time Buyers in Harrogate, will like likely want to walk around the property on their own. If it’s a couple walking around, give them some time to discuss with each other their first impressions and thoughts, however, let them know you are available to answer any questions.

Have a thorough cleaning of your bathroom, discarding any items like cosmetics that have been left out. Again, hone in on the little details. Coordinate your towels and flannels, you might want to put some money into this to make it look appealing. Furthermore, make the floor space spotless.

Lighting

Lighting is key to making your home look more appealing to prospective buyers. You could do this by making sure lights are on to brighten up rooms if it’s dark outside or letting in natural light by opening curtains and blinds.

If you do have plants, look at placing them in areas where they don’t block out the light.

Fresh Coat of Paint

For white walls, make sure they are looking clean and fresh which may mean you having to add an extra layer of white paint over. From a viewer’s point of view, they may favour this as they can work from a blank canvas if they are looking to decorate.

Interior doors will need a fresh coat of paint. Polish the brass door knobs and make sure all doors open and close smoothly, with no broken locks or strike plates. A buyer will want to visualise the amount of space they would have to work with, so it’s best to collate clutter to store it into cupboards and have a clean and tidy worktop in the kitchen.

Gardening

When the viewer is looking at your garden, it’s likely the will ask to take a look inside your shed (if you have one), therefore, it’s best that you don’t just throw everything in there. Make sure this is neat and tidy by:

• Keep your lawn well maintained.
• Weed the paths and any walkways.
• Make the garden look lively with more vibrant alternatives to the plants you have.

Check your fences making sure all the slats are intact and that they are neatly painted or creosoted. Again, pick up any visible items like outdoor barbecues, and remove any utensils left around.

A colourful garden can catch a viewer’s eye, so make sure it’s beautifully presented. Flowering plants are brilliant to see if they are in bloom. Your garage space should have some efficient space to provide more room for a vehicle.

Another Perspective

How the seller presents themselves can be important in a viewer’s buying experience. With this in mind, it’s key to be yourself and authentic. Make sure you provide emotive and honest opinions on your home and show it off in the best possible light whilst highlighting any minor issues that have occurred and how you managed to fix them. Be transparent!

One thing that stands you out against estate agents is that they will be working towards earning their commission so will not be providing a first-hand experience of living in that home. You can provide insight and memories of raising a family there if you did and even historical, valuable information could be helpful too.

Finally, always remember the emotions attached to buying a home. As mentioned, having a family really helps emphasise the amount of joy the family home has bought to you all. Having an emotive approach to your experience could impact the viewers positively with them maybe considering raiding a family in that same home.

Moving House Mortgage Advice in Harrogate

Can I Have Two Mortgages in Harrogate?

Can I have two mortgages at once?

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

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.

Remortgage 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.

Remortgage to Release Equity

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.

For homeowners who are over the age of 55 and have a property valued at a minimum of £70,000, it may be worth your time looking at your options for Equity Release in Harrogate. Get in touch with a trusted later life mortgage advisor to learn more about lifetime mortgages.

To understand the features and risks, ask for a personalised illustration.

A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means-tested benefits. The loan plus accrued interest will be repayable upon death or moving into long-term care.

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

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.

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.

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?

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.