As a Mortgage Broker in Coventry, we have customers who get in touch to remove a name from a mortgage due to divorce or separation. In this situation, it’s common for homeowners to remove their own name or ex’s name from the mortgage.
If you are going through a divorce or separation, financial commitments should be at the top of your list to sort out. This is something that does seem to be left until last. It’s key to sort this out earlier in the process as it can come with its challenges and be a time-consuming task to complete.
To start, you need to see if you are eligible to be on the mortgage as a sole applicant. A lender, building society or a Mortgage Broker in Coventry will need to assess this as they need to know if you will be able to manage the finances with just your income. Along with this, the person who is staying on the property will need to be able to keep up with the mortgage payments on their own.
Prior to removing a name from a mortgage, both parties must agree. If one party doesn’t agree, this could result in the case being taken to court before they can proceed. This can result in the process becoming time-consuming and costly.
Therefore, seeking specialist mortgage advice in Coventry can be helpful to those who are going through a divorce or separation. By doing this, you are able to speak to an expert which can be beneficial further down the line.
In the case where you are looking to remove a name from a mortgage, seeking support and help with the process through getting specialist Mortgage Advice in Coventry can be a beneficial option.
Here at Coventrymoneyman, you can speak to a trusted Mortgage Advisor in Coventry who can provide you with a tailored service. Again, the individual that you want to remove off the mortgage will need to agree to be off the mortgage. It can be challenging if they don’t agree to be removed.
We are here 7 days a week to answer any of your mortgage questions and provide a helping hand on your mortgage journey. Contact our team today to book your free mortgage appointment.
As a Mortgage Broker in Coventry, we have had the opportunity to help many first time buyer in Coventry and those looking at moving home. Through this time we have found that the most common question we get asked is ‘How much will this all cost?’.
In this article, we have collated a list of the fees you can expect to pay to help you organise the costs accordingly when buying a new home (and when they become payable).
This cost is one for people who are looking at selling their house. These days, we have found a growing interest in online estate agencies with the price of a basic Rightmove listing being as low as £500. On the other hand, for a more tailored and local service with a dedicated sales negotiator, the fee will be roughly around 1-2% of the property price.
Having a valuation carried out on your chosen property will be something your mortgage lender will want you to do. The reason for those is so they know they are lending against adequate security.
When it comes to the price of a property surveys can differ starting from nil (for a basic valuation with some lenders) up to a few hundred pounds for a more in-depth homebuyers’ report. It could be even more for a Full Building Survey.
The importance of working around the cost is that you always have an element of choice when it comes to the level of detail your survey goes into. This is likely down to the age and the type of property you are looking to buy along with any fears/concerns you have about it.
For more information about property surveys, which survey is best for you and how we can help as a Mortgage Broker in Coventry, check our article on ‘what is a property survey’.
You might find that some mortgage products offer cheaper rates, however, keep in mind that this would come with an arrangement fee which could end up outweighing the benefit. This doesn’t apply to all mortgage lenders, so you may not need to pay anything.
In some cases, you may need to pay these fees upfront or you may be able to add these onto the balance of your mortgage. Keep in mind, that it would mean further interest charges.
Our Mortgage Advisors in Coventry have access to a panel of lenders all offering a range of mortgage products. From this, they will be able to compare mortgage deals with all fees added so we can compare on a like for like basis.
You will need to factor in the services of a solicitor with their fees varying between firms and largely differ. As an estimate, a straightforward purchase with a local company is £600 for a low-value property.
This will involve you to provide the property address if it’s leasehold or freehold and the amount you are purchasing for it to get accurate quotations.
The key points to cover when asking for a quote are:
Along with the costs and disbursements that come with paying your solicitor, depending on your situation, you may need to pay this tax that the solicitor collects on the completion of the property purchase. Full details can be found on the gov.co.uk stamp duty page.
Normally, a mortgage broker in Coventry will charge for their service. The amount you pay varies from company to company. Here at Coventrymoneyman where we provide open and honest Mortgage Advice in Coventry, your dedicated advisor will explain these in more detail within our free initial mortgage appointment.
We would suggest you approach a local company like ourselves instead of a big organisation. Usually, they will charge only on completion instead of any application fees and further costs that could be incurred.
If you are moving home in Coventry, the cost of moving your furniture can differ significantly and still can be pretty costly. A cheaper alternative is to hire a van and carry out the work yourself. Finding a local man with a van could be slightly more in price than hiring your own van. On the flip side, a professional van service could cost you high hundreds, early thousands.
Lenders will look out for a variety of things when it comes to assessing your bank statements. They do this in order to see what your spending behaviours are like to determine whether or not you will keep up with your mortgage payments or not. A common question first time buyers in Coventry crops up when speaking to customers is: “do gambling transactions look bad on my bank statements”.
You might enjoy putting down an annual bet on the grand national or regularly use internet betting sites, as you can tell, there is nothing illegal about properly licensed gambling. It is known to be a popular hobby or pastime with many bookmakers advertising it on mainstream TV and radio.
If you have seen these adverts, you have probably noticed that they always urge customers to ‘please gamble responsibly’ and this is an important point you should think about when applying for a mortgage. It’s not the lender’s job to dictate your spending habits or moralise the ethical pros and cons of gambling, however, they do have a duty (underscored by mortgage regulation) to lend responsibly.
Think about it this way, if lenders need to prove to the regulators that they are making well-judged lending decisions, it’s fair for them to expect a similar approach when it comes to their personal finances. If you were lending your own money would lend it to the applicant who gambles or the one who doesn’t?
As stated previously, it is not illegal to gamble. With this in mind, you will not be declined by a mortgage if you have the odd gambling transaction on your bank statements. The lender will decide whether these transactions are reasonable and responsible. They will look in detail of how frequent these transactions are, the size of the transactions in connection with the person’s income and the impact upon the account balance.
Having infrequent small gambling transactions that make little difference on a regular credit bank balance will not likely be seen as important. On the flip side, placing bets most weeks or being constantly overdrawn, the lender will view your spending behaviours as irresponsible and decline your application.
As you know, lenders will look at your bank statements to basically see how you manage your money and to help them determine whether they are confident in you managing payments or not.
Lender are financial institutions that either directly or as part of a wider group, usually sell current accounts, overdraft facilities credit cards and personal loans, therefore, you need to know that these factors all go towards wise financial planning. It’s good for a mortgage applicant to know how these facilities are managed. You might have an overdraft facility and occasionally use it, which is not essentially a bad thing, however, exceeding the overdraft limit regularly which is not so good. If you have excess overdraft fees or returned direct debits, these would be things lenders will look for and will show them that your account is not being managed well.
As well as this, lenders will also look for credit transactions from pay-day loan companies; “undisclosed” loan repayments (i.e. if you said on the application that you have no other loans but there is regular loan payments appearing, this could be an issue). They would also look out for any missed payments and they see how much of a typical month is spent in overdraft – i.e. you might go into credit on payday and for the rest of the month you are overdrawn, you need to wonder how you would manage with a mortgage.
You can be sensible and plan ahead if you can. Usually, a bank still request up to three months of your most recent bank statements. These documents will show your salary credits and all your regular bill payments. Because of this, it’s best that you avoid any of the situations above, especially if you are looking to apply for a mortgage in the near future. You could avoid gambling for short period and work on presenting your bank account in the best way.
Seeking help and support from mortgage broker in Coventry can be helpful because there are some lenders who may ask for fewer bank statements than others or may not request them at all. Despite this, lenders do still have the right to reserve the right to request bank statements in particular circumstances so it’s best that you be as prudent as possible when you are in the midst of any mortgage application. Remember, if you do gamble, please gamble responsibly!
In the circumstance where you are a first time buyer in Coventry who doesn’t have a lot of knowledge about mortgages, it’s you get some specialist advice from an expert mortgage advisor in Coventry. Throughout the process, your dedicated advisor will provide a helping hand with your application and work hard in getting you up to date so that lenders will be impressed.
Going through the mortgage journey will prove to be beneficial. The process can come with its ups and downs, however, you will finish the process with one potential outcome when your term ends.
Getting a mortgage is a major financial commitment, for example, you’ll need to keep on top of your payments and know when your fixed-term is ending.
When it comes to the length of fixed-term mortgage, this varies depending on the product you take out. Generally, mortgages will come in 2-year, 3-year or 5-year fixed terms. You may find that you take out an even longer fixed term like 7 or 10 years, however, this is down to your circumstance.
If you are coming to the end of your fixed term, it will be time for you to take out a new product because your current one has ended. This is when a remortgage occurs.
In some instances, you may be able to remortgage early, however, this could result in you having to pay a bigger fee ( early repayment charge) because you are switching early.
Let’s begin with looking at what a Remortgage actually is. A Remortgage involves you taking out a new mortgage to pay off a mortgage that you already have. You may have a variety of options when taking out a Remortgage, some options being bigger than others.
When you take out another mortgage product to replace your current one, this is called a remortgage. You may know this is a product transfer, however, the big difference is that a remortgage is when you take out a product with a different lender and a product transfer involves you taking out a new product with your current lender.
This sounds pretty straightforward when you put it that way, however, it’s finding the right product that makes it challenging. There are a plethora of varying deals and rates on offer, which means you may need to do a lot of looking around so that you can find the most suitable deal for you.
There are a number of reasons why people choose to remortgage, you might want to find a better rate, improve your home or consolidate debts or something else.
Usually, an average fixed mortgage term lasts between 2 and 5 years. Within this time, you will be paying off capital as well as interest. Therefore, 2-5 years later, you may find yourself in a lower loan-to-value bracket which allows you to access better rates.
With this in mind, this is why people choose to remortgage, as they risk falling onto their lender’s standard variable rate of interest (SVR). Tracker mortgages “follow” the Bank of England’s base rate. If interest rates fall, you’ll make lower payments to your lender.
If interest rates rise, your payments will increase. Along with this, lenders will put an additional percentage onto this base rate so you’re usually a rate between 2-4%. Tracker mortgage will work similarly to your lender’s SVR mortgages.
You might feel that your current home could do with some improvements like a new extension or conversions. This might be an option if you decide to remortgage.
When you start the process, you will get an estimation of the costs of the improvements. As soon as you have an estimate of how much the work would cost, you might be able to incorporate these costs into your mortgage when you take out a new product. This could make your monthly payments increase it, however, you will be able to fund that extension or loft conversion.
This can be an easier option compared to going through the process of moving home in Coventry as this can be a stressful experience. Therefore, if you are looking to grow your family, want to add value to your home or just want to revamp your home, remortgage for home improvements might be the option for you.
You might find that you want to extend or shorten your whole term in order to switch to a more flexible product.
In the event that you want to shorten your term, you will be able to pay off your mortgage a lot quicker. On the other hand, a shorter term can also result in higher repayments. If you decide to lengthen your term, this can lower your payments but does mean you will be paying off your mortgage for longer.
You usually decide if you want to extend your term or not when it comes to remortgage time. Choosing to shorten your term may also give you the option to overpay, which can help you pay off your mortgage quicker.
A flexible mortgage deal may sound appealing to you but, they do usually come in the form of a tracker mortgage. This type of mortgage is tracks the Bank of England’s base rate of interest, with this rate potentially fluctuating depending on the overall economic performance. Because of this, your payments may change each month. When the interest rates change, so do your payments.
If you have owned a property for a lengthy amount of time, it’s very likely there is a lot of equity within it. Equity is the difference between what is still owed on the mortgage and the current value of the property. You might find that you can remortgage and release some of the equity to turn it into a lump sum of cash.
This cash can be used for anything you want. This cash could go towards a deposit on another home, buy a new car or even pay for a wedding with it – it’s your choice!
Through our experience as a Mortgage Broker in Coventry, we find that Buy to Let landlords release equity in order to put forward a deposit onto another property which then expands their portfolio.
If you are aged 55+ and have a property valued around at least £70,000, it may be worth looking at your options for Equity Release in Coventry. Speak to an open & honest later life mortgage advisor to learn more about this.
In the circumstance where you have built up some unsecured debt and are looking to incorporate this in to your mortgage, in some cases, this can be possible. We always advise you to speak with an expert Mortgage Advisor in Coventry because of the complexity that comes with debt consolidation.
The reason this option can be challenging is that it is not only based on how much you owe and your property value, your credit rating is also factored in. You need to regard the fact that you’re trying to incorporate large sums into your mortgage which means your total mortgage amount will increase.
Please don’t hesitate to contact us, if you are in need of a mortgage expert because you have bad credit. Here at Coventrymoneyman, we have debt consolidation experts that will be happy to help with your needs.
When you are coming towards the end of your fixed mortgage term, you might want to start looking at your remortgage options. It’s best to begin looking around 6 months before your deal ends, it may be time to begin looking around for deals. Our team can help take as much stress away by helping you through the process.
Book a free remortgage appointment online today. Within this appointment, you can speak to one of our knowledgable advisors who are here 7 days a week to provide open and honest Remortgage Advice in Coventry. Our goal is to provide help and support throughout the process and find you a suitable deal for your personal and financial circumstances.
Beginning the journey of finding a property and obtaining a mortgage can be daunting for many homebuyers, particularly if they are going through the process on their own.
As a Mortgage Broker in Coventry, we have spoken to a number of First Time Buyers in Coventry who have decided to buy a property with a friend or partner if they are able to.
A part of the process will involve the advisor carrying out an affordability assessment in which they will ask you about your financial situation. This will give us an idea of the maximum mortgage amount. In the case where there is two applicants, lenders will factor in both of the applicants’ income. Due to two sources of income being on the mortgage, it can increase your chance of getting a mortgage offer.
In the event that you were to default, your co-borrower could also be responsible for the full mortgage, and vice versa.
Below is a list of helpful tips we advise you consider when moving into a property with a friend or partner.
This all goes down to which lender you are with, however, you will usually be able to co-borrow with up to four people jointly.
As much as having more people involved can work well with getting accepted, it’s best to keep in mind that this does increase your chance of someone pulling out before the term ends. Therefore, you need to be mindful of the people are choosing to buy a property with.
There is the option to increase your mortgage later if you want to, however, all parties need to agree to this. Keeping this in mind, it’s best to plan ahead for your future and your plans for the property.
Joint tenancy is an option that is more popular with civil partnerships or married couples. In the eyes of the law, joint tenants are two halves of one whole, one borrower. Therefore, in a tragic event where one half of the party passes away, the property would automatically be given to the other half.
In the circumstance, where you are looking to remortgage or sell the property, both of you would have agreed prior to proceeding with the mortgage.
A ‘Tenancy in Common’ can be an option if you and your co-borrower are friends or family. This means that you both own your part of the property.
You don’t need to split your shares equally either. Therefore, if you find that one of you is on a higher income, for example, one of you will own more of the property than the other.
One benefit of being a ‘Tenant in Common’ is that you can have the freedom to act independently so it’s your choice if you want to sell or give away your share.
A mortgage lender will stress that all borrowers are jointly and severally liable. Due to this, you will be responsible to keep up the payments if one person decides not to pay their part of the mortgage.
If you are looking to buy a home with your other, you never really expect that you’re going to split up before the term ends. It is a big financial commitment to make, let alone with someone else, and can be a difficult process if you want to make changes.
This can be even more challenging if children are involved because it is likely that one parent will stay with them whilst you are the one who will move out and possibly find your own mortgage. Regardless of whether you are staying or going, both parties will need the help of a Mortgage Advisor in Coventry.
Even if the person has been paying the mortgage with the input of their ex or not, this doesn’t change the fact that it was applied for in a joint name. This means that in the event of arrears, they will still chase both parties.
Prior to removing your ex-partner from a mortgage, the lender will need to be sure that you will be able to maintain mortgage payments by reassessing your income before they proceed.
It can be common for people to apply jointly for the second time with a friend, family member or new partner if they are will struggle to afford a mortgage on their own. In this circumstance, it can be beneficial to obtain Mortgage Advice in Coventry.
As mentioned, in the circumstance where you may end up divorcing or separating from your partner while on a mortgage, you are both still responsible for the property and its mortgage payments.
Firstly, you would need to get in touch with your lender if you were the one who wanted your name removed from your mortgage. You can’t just make an agreement between the two of you.
In the situation where you are looking to get a mortgage of your own, the lender would take into consideration the property you are currently tied to. Therefore, it’s important to make sure that you are removed from the previous mortgage.
Circumstances like these will require you to look at getting Mortgage Advice in Coventry.
You will find that some lenders will be more generous than other when it comes to how much they will be willing to lend you. This is something your allocated Mortgage Advisor in Coventry will factor this in when recommending the best mortgage lender for you to approach.
The general consensus there is around moving home is that it can be quite stressful for homeowners with the process taking a lot of time and money. Many, it can be a beneficial option.
For example, many people look to move home for circumstances like looking for a bigger property, a new scenery and many more! Check out these below:
If you are looking to move home in Coventry, you may looking for a property that is bigger than the one you are currently in. This is especially the case if you are a first time buyer in Coventry and have initially settled with a smaller property but now are in need of some more space.
You may be looking for a property that lines up with your future plans including starting a family or wanting more rooms for facilities like a new office or home gym which would be restricting in a smaller home.
Even though moving home in Coventry is the best option here, we do recommend that you explore the potential options of raising capital by remortgaging to fund desirable home improvements like an extension on the property, a loft conversion or a home office.
Remortgaging to fund home improvements is a common option, especially with growing families and can help you towards developing extra space whilst allowing you to keep the home you’ve built over time.
The reason why it is a popular option is because these development can raise the property’s value which is beneficial if you are looking to sell the property and want to make a nice profit from the sale.
This is especailly the case if you are looking for a more quiet area that is more rural to settle down in but you are in the heart of a bustling city centre, you may look to move home to live in a desirable scenary.
Again, this is the case for those who are first time buyer as they have limited to their options because of their budget which may have resulted in them living in a low-end property.
As well as this, you may find that you are on a much higher income than you were intially one when you first applied for a mortgage and are now in a better position to look larger property that are more to your liking.
Often, we find that the many customers are looking to move home in order to be closer to their friends and family as they may currently live too far to regaulrly visit them. This is especially the case for those looking to start a family.
In the circumstance where both parents are in regular employement which would mean they will probably need to look into childcare facilties. You may find that many private nurseries are quite expensive which means a lot parents will reach out to their family for support.
You will need to consider all the costs that come with the process if you are looking at moving home in Coventry.
We offer all our customers a free home movers review to speak with a moving home mortgage advisor in Coventry. Within this review, they will look at your how much you may be able to borrow along with estimating the cost of your monthly repayements.
For those who have found that moving home isn’t what they are looking to do and would like to look into a remortgage, get in touch to book yourself in with an expert remortgage advisor in Coventry.
Usually, you will get asked what your credit is when you apply for a mortgage. A large range of factors can affect your credit score. One of them being the fewer addresses you have on your record, the better your credit score.
As mentioned, fewer addresses on your file can benefit your mortgage application but don’t go about this in the wrong way.
We do find applicants, especially first time buyer in Coventry, keep their previous addresses on their records. Regardless of this being accidental or a way to keep their credit score lowering, either way, it needs updating.
Other things you will need to update could be anything from; bank statements, credit cards and electoral roll information. Many believe that ignoring this information on their won’t negatively impact their credit score, when in fact, it can cause a lot of damage.
For example, you could get an unpaid ticket sent through your old address. Therefore, unless you notify the post office. Therefore, unless you let the post office know so they can forward all your mail, the longer it gets unnoticed, it can result to a CCJ.
If you have a CCJ on your credit file, this could result in losing points on your credit file which in turn will ruin your credit history making it difficult for you to get your mortgage application accepted.
Prior to submitting your application, you need to have a thorough check of your application. Begin with your address by checking that the address on all of your accounts (credit cards / current accounts) and electoral roll are all registered to your current address.
More importantly, this applies to applicants currently living in rented accommodation hasn’t changed their address from their previous property.
To check that you haven’t missed anything, it’s always a good idea to double-check everything when applying for a mortgage. Check that you have the correct address as well as updated information which will all help towards your mortgage application.
Furthermore, you need to know the exact date when you moved into your rented apartment / new home and when you moved out. If you do not know these dates, you can be at risk of having a cross over meaning it could show that you were living in two different addresses at once.
This will result in confusing the lender which could cause damage to your credit file or mortgage application.
It can be a huge benefit to have a mortgage broker in Coventry by your side. They will support you throughout the process and make sure your application is in the best position for mortgage success. Our team will make sure everything is updated correctly and will be there to answer any of your questions.
You need to show the lender that you are in a serious position to take on this big financial commitment. This can be achieved by evidencing your deposit and showing you have saved it up and been precise in updating all your information including your address, these r both brilliant ways to impress them.
In the circumstance where you have an outdated address linked to one of your accounts, your lender will see if any of your addresses needed updating. This could show a lender that you haven’t taken things seriously.
To conclude, we do strongly recommend that you check up on your file to make sure that your application is in a position to be accepted as well as show your lender you are in a serious position to proceed. If you are wanting an expert to look at your application so it’s ready to go, book in a free mortgage appointment in Coventry, and contact our team.
Here at Coventrymoneyman, we have a team of mortgage advisors in Coventry who are available 7 days a week. Whether you are going through the mortgage process for the first time or looking at moving home in Coventry.
The general consensus when it comes to moving home in Coventry is that a homeowner will need to sell their current home initially. By selling your home, you will release the equity within it ( the amount at which you will sell it for minus your current mortgage balance), then use this amount as a deposit towards your next purchase.
In spite of this, lots of homeowners will not look to sell their property until they have found the new one they would like to buy. As soon as you have found that property, it’s very likely you’ll be selling your home in no time.
It’s all about how you want to market and present your home when it is listed for sale. This can have a significant effect on how quickly your home sells. Below are some key points that can help quicken up the sale process when you are moving home in Coventry.
Even though many sellers do know that selling your home over the price can become problematic, we do still find people go for the Estate Agents recommendation. They will usually suggest the highest potential sale price.
With websites like Zoopla and Rightmove increasingly at the forefront of the property market, buyers can easily view newly listed properties at attractive prices. Keep in mind that if you have no interest at the start, there’s a high chance that your home has been overvalued.
In terms of your property viewings, it’s best that you have a look around your own home from the perspective of someone who is looking at your home for the first time. Your property needs to have that “kerbside appeal”. This is when the first impression a viewer has on your home, needs to be a positive one.
Little details go a long way so consider freshly jet-washing your drive and cutting any hedges and grass in the front garden. Obviously, these won’t be the main factors that will sell the property, however, it shows a buyer that you have taken great care of your home.
Furthermore, this will help build an attractive approach to your home and will mean the buyer will generally expect the inside to be just as nice. While you are washing the drive and cutting the garden, it’s a good time to have a good tidy up and clean up too. If there is anything left in the front of the property like bikes or toys, make sure you put these away.
When you have sorted out the exterior of your home to make it tidy, then you need to begin looking at the inside of your home. Make sure you have a thorough inspection of each room, in particular, your kitchen and bathroom.
Below are some key points to consider:
The overall atmosphere in your home should be welcoming and relaxing for your buyer, therefore, maybe look at arranging for any pets or young children to be out of the house when the viewing happens. This can also minimise any distractions.
If you do have a family and live in a property that is perfect for someone to grow a family, look at adding these touches to your property. Placing family pictures around the home can be a brilliant way for a buyer to build a picture of what it may be like to bring up a family in the home.
Visuals are key throughout property viewing. Build up an appealing aesthetic throughout your home by adding little details like colour-coordinated towels and other bits of home decor. To push this further, remove any clothes or items you don’t use daily to make the rooms look spotless and clean.
It’s very likely that the back garden will be the final place buyers will look, therefore, it’s important you live an excellent lasting impression. It’s likely that the viewer would want to look at the inside of your garage or shed, therefore, don’t just put everything in there, make sure you give it a good tidy.
As mentioned for the front of the garden, it’s good to cut the grass in the back garden and trimming any overgrown hedges to make it look tidy. Something else to keep in mind is looking at weeding along the paths and walkways to make it even neater.
If you have it, maybe look at the current state of your fences. Try and make them tidier by covering any holes and adding a fresh coat of paint.
Many viewers like to hear a first-hand experience of what it’s like living in the property they are interested in. With this in mind, it’s best to carry out viewings in person. You can sell it in the most personal way possible and will be likely more passionate about your home.
By doing this, you will be able to provide an honest experience by highlighting any small issues you have found over the years. It’s best to balance out the good and the bad of the home to the buyer so this will definitely help achieve this.
If you are showing the buyer around yourself, it’s important to give them space. Give them time to walk around on their own when appropriate so they can feel comfortable talking amongst themselves about their opinions of the place.
The final point to keep in mind is the emotions attached to buying a home. You may find that your viewers have experienced owning a home before so could be looking at moving home in Coventry themselves.
For an emotional touch to their viewing experience, it’s good to mention how living in the home has been an important part of your life whether it’s where you have raised a family or it was your first home. This can impact viewers on the emotional impact the home has had and adds a personal touch to the property overall.
Nowadays, people focus a lot more on their credit rating. We have seen an increase in consumers becoming aware of credit scoring and this has been evident here at Coventrymoney with many people who get in touch and have looked at their credit report online.
There are a variety of credit reference agencies out there. Experian and Equifax is the most popular ones that people use. As a Mortgage Broker in Coventry, we recommend potential new clients to use Check My File for a 30-day free trial. It will then be £14.99 a month after your free trial but you can cancel this at any time. This report pulls together the information into an easily understandable colour-coded report.
When customers contact our team, we usually receive questions about whether we will be doing a credit search on them. As mentioned, many people are aware of credit scoring and will also know that too any searches can have a negative impact on their credit score. Lenders always run credit checks, however, we do ask for the client’s permission before its carried out. Hard credit searches and soft credit searches are the two different types of credit searches that banks can run on a customer.
For a detailed analysis of your credit report, a hard credit search would be carried out. This type means any financial institution will need your permission for this to happen. The lender will be looking in depth into your situation with a hard search. Passing the credit means there is a high chance that your application is also successful which is a huge advantage.
One drawback that can happen is if for some reason an applicant cannot provide satisfactory documentation to support the information you have provided or they find that you have put forwarded false details.
Furthermore, a hard search will leave a ‘footprint’ on your credit file which means any who views your report in the future will be notified that a search has been carried out. Keep in mind that this isn’t a bad thing immediately, however, it can be if you have multiple footprints registered in a short period of time this could look like you have applied for lots of credit at once.
Even though the footprint left doesn’t determine whether your application was successful or not, lenders’ systems may automatically assume that you are being declined. From their perspective, they would think why you would go to a second lender, unless the first lender had said no.
Having a hard footprint on your every now and again is not a big issue which you don’t need to worry about but you need to be careful that you don’t have too many within a short period of time.
The analysing aspect of a soft credit search is a lot more straightforward. You will find soft searches on price comparison websites which can give you an idea of what products might be on offer to you or if someone wants to verify your identity.
Many mortgage lenders carry out soft searches initially, with most lenders switching to this type of search. The financial institution carrying out a soft search does mean they obtain less information compared to a hard search, however, if you are granted an agreement in principle from one of these lenders, it still increases the chances of your full application being accepted.
You may find that soft searches are more discreet because you can see that someone has carried out a soft search if you check your credit file, however, this won’t be shown to other financial institutions like banks.
With this, you will be able to apply for an agreement in principle for a mortgage because it’s pretty unlikely that this would harm your credit score, regardless if it’s successful or not.
For those that are looking to make an offer on a property, we strongly advise that you have your mortgage agreement in principle in place before contacting the estate agent.
It’s key that you put yourself in the best possible position of securing the property you want at the lowest price by having your finances in place which will result in you being in a better position going forward.
With an agreement in principle in place, it will prevent the agent to “cross-sell” their own in-house mortgage services to you.
If you feel that your situation may be too complex for a Mortgage Broker in Coventry, like ourselves, to sort out, please don’t hesitate to get in touch. Here at Coventrymoneyman, we have extensive experience and rich knowledge under our belt that has allowed us to work with customers that are from a variety of circumstances. Therefore, it’s very likely we have come across a situation like yours before and our team can provide specialist mortgage advice in Coventry to help with this.
The general rule around your credit score is that the higher it is, the higher the chance you have of your mortgage application being successful. In light of this, you may be wondering what you need to do in order to improve your credit score.
First of all, not everyone is guaranteed to be accepted for a mortgage. This is due to the fact that every lender has built their own credit scoring system which results in an applicant needing to demonstrate various things to a range of providers. Therefore, if your application gets declined by one lender, don’t panic, as there are lots of other mortgage lenders who may be lenient with their criteria.
This is where an expert mortgage advisor can help. They can look at your situation and financial background in order to match you to the most appropriate lender. Here at Coventrymoneyman, we always aim to pair you with the right lender the first time around and work hard in overcoming any obstacles that may occur in your situation.
There are a variety of different credit reference agencies in the UK, such as Experian and Equifax. It would be best if you check as many of these agencies as possible in order to have a good idea of your credit score. As well as this, you may find that one of the agencies could be holding incorrect data which means you can see if there is anything incorrect information and will be able to get it rectified.
Below are some helpful ways when it comes to improve your credit rating.
Running a large number of credit searches can have a negative impact on your score. From a lender’s point of view, they will see this as you’re looking to borrow more money from other places which is something that will not work out in your favour.
Be conscientious when it comes to price comparison websites as they do have a reputation for carrying out discreet credit searches on people. If you are looking to apply for a mortgage in the near future, it would be best to avoid applying for any further credit until your mortgage is underway.
One way to gain lots of points on your credit score is being on the electoral roll as it shows stability which is something a lender favours. It’s important to check all your information like your name is all correct and you’re registered at your current address, not a previous one. You can easily register to be on the electoral roll online.
Going over your maximum limit on a credit card each month can harm your credit score. Therefore, using a credit card and paying off the balance in full each month will demonstrate to a lender that you are good at managing your finances. Keep in mind that maxing out your limit or even worse, exceeding an agreed card limit, will not look good from a lender’s perspective.
A credit score can make it look like you’re living in two places at once, which can be down to a number of things. You may have forgotten to tell one of your credit providers that you have moved to a new house or you may have not spelt your address correctly. This can be an issue if you have lived in a flat as the flat-apartment number can be formatted in many different ways.
Having too many credit cards can also have a negative impact on your score. Therefore, you need to go through the cards and see which ones you don’t use anymore. From this, you will need to get your account closed which can be done by getting in touch with the providers. Initially, this can be a disadvantage, because the credit scorers won’t be able to differentiate whether you close the account or the credit provider. Despite this, it’s a temporary issue that will reap its benefits in the future.
By doing this, you are reducing the risk of falling victim to fraud as you might not be aware that you have lost a card you don’t use often.
In the case where you are financially linked to a family member or ex-partner, their credit actions could also have an impact on your credit score, in particular, if they aren’t the best at handling their money.
The unfortunate case is that you won’t be able to get this financial link removed if the account is still live. In order to detach yourself from this link, you will need to make a request with one of the credit reference agencies. Seeking specialist mortgage advice in Coventry from a mortgage broker can be really beneficial as it can be a challenge removing a family member or an ex-partner, therefore, having an expert by your side to guide you could be the best option.
There is a general argument from consumers that credit scoring is an unfair way for lenders to assess applications. The counter-argument from lenders is that it is much cheaper for them to work this way and computers give more consistent outcomes. Regardless of this, it is the most common method in the industry which is why it’s best that you look at utilising these tips to help you with improving your credit score.
One way to increase your chance of your mortgage application being accepted the first time, send an up to date copy of your credit report to your dedicated mortgage advisor in Coventry beforehand. Your advisor wants to know the ins and outs of your finances and this will help towards making the process more straightforward. Furthermore, there are still some smaller lenders in the industry who do not use credit scores, as opposed to going for the older, manual way, but they will have set rules in terms of the amount of defaults and CCJs they will allow.