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Shared Ownership – What is it? How does it work?

The Shared Ownership scheme was introduced following the credit crunch in 2012, the scheme gives first time buyers and home movers the chance to buy a share of a property and then rent the remaining part of it.

Shared Ownership Mortgage Advice in Coventry

What is shared ownership?

Shared Ownership will let you take out a mortgage/purchase a share of a property. This is a percentage-based share; usually, you will have to own a share of at least 25%-75%. However, in recent times, some properties are letting you have a share as low as 10%.

You will also have to pay rent back on the remaining share of the property. Your mortgage bills should be lower as you’ve taken out a mortgage on a lower share, so you should be able to compensate for the rent payments.

Furthermore, since you’re taking out a lower share in the property, your initial mortgage deposit should be lower.

Maybe partial homeownership is the route that will help you get onto the property ladder.

How does the scheme work?

Although it can differ based on your credit history, since it’s likely that you’re only purchasing between 25%-75% of the property, the minimum deposit required should be lower.

Here’s an example of how Shared Ownership would work. If you take out a 50% share of a property that’s valued at £250,000, you’ll only need to borrow £125,000 for your mortgage. In addition to this, say that you’re required to put down a 5% deposit, you’ll only have to supply £6,250 rather than the whole £12,500 if you were to take out a 100% mortgage on the same property.

Once your Shared Ownership papers have gone through and you’ve put down your deposit, just like any other mortgage type, you’ll start paying back your mortgage each month. You’ll also be paying rent to the housing association that is linked to the property.

In theory, your combined mortgage and rent payments shouldn’t be as much as if you were to have taken out a 100% mortgage. Your mortgage advisor in Coventry can go through the costs with you.

Costs and fees

With any type of mortgage, you’ll be faced with a few different costs and fees; the same costs should apply to Shared Ownership.

You’ll have to consider obvious set-up/mortgage arrangement fees and possibly booking fees. There may also be a stamp duty charge on your property, it depends on the property price and how much you’re buying it for. You can speak to your mortgage advisor in Coventry about stamp duty to find out which threshold your property is in. Don’t forget about solicitor and legal fees too.

Costs may vary depending on the property that you’re buying. Deposit size, monthly payments, arrangement fees will differ from property to property.

How can I apply?

You’ll have to match the Shared Ownership criteria before you can move forward with your application:

  • You must be at least 18 years old.
  • If you live outside of London, your household annual income must less than or equal to £80,000. If you live in London, this is upped to less than or equal to £90,000.
  • You can’t have ownership over another property during your Shared Ownership mortgage application. You must be a first time buyer in Coventry or in the process of selling your current property.
  • If you can afford a house on the open market, you will not be able to take out a Shared Ownership mortgage. It was introduced to help struggling homebuyers.
  • You must prove that you are not in any kind of arrears, this includes both mortgages and rent.
  • You’ll need to show evidence of a good, clean credit history. This means that you may struggle if you have a CCJ (county court judgement) in your name or have had past credit issues.

Although this may seem like a long list of requirements, you must remember that most of the other home buying schemes are the same or have an even longer list!

At the end of the day, the scheme was made for a specific target audience, so if you don’t match it, it probably isn’t for you.

Speak to a Shared Ownership Mortgage Advisor in Coventry

Our team has been working as a mortgage broker in Coventry for over 20 years now. Along the way, we have helped many applicants secure Shared Ownership mortgage products – it’s one of our many specialities.

Shared Ownership fits within the government-led ‘Own Your Home’ project. There are many different schemes available through this project; you can find out more information here: www.ownyourhome.gov.uk

We offer a free Shared Ownership mortgage appointment to every customer. Book online today and speak with a mortgage advisor in Coventry at a time that suits you.

The Importance of Changing Your Address

Credit Score Mortgage Advice in Coventry

When you apply for a mortgage, you may get asked what your credit score is. A lot of different things can affect your credit score. For example, the fewer addresses you have on your record, the better your credit score. 

Again, fewer addresses on your file can help your mortgage application but don’t go about this in the wrong way.

Applicants, particularly first time buyers in Coventry, keep their previous address on their records. Whether it was accidental or done to try and keep their credit score from lowering, either way, it needs updating.

What information needs correcting?

Things to remember to update could be anything from; bank statements, credit cards and electoral roll information. Some may think that ignoring this information on their file won’t harm their credit score, when in fact, it can cause quite a vast amount of damage.

You could get an unpaid ticket sent through to your old. So unless you notify the post office to make sure all mail gets forwarded, the longer it goes unnoticed, it can lead to a CCJ.

To receive a CCJ on your credit file, you could lose many points on your credit file, which will ruin your credit history and make things more challenging for you to get your mortgage application accepted.

Check before you apply

Before you submit your application, always thoroughly check your application from start to finish. Start with your address; ensure that the address on all of your accounts (credit cards / current accounts) and electoral roll are all registered to your current address.

It primarily applies to applicants currently living in rented accommodation and hasn’t changed their address from their previous property.

Just in case you missed anything, it’s always a great idea to double-check everything when applying for a mortgage. Make sure to keep on top of your address. Having everything up-to-date can make a difference to your mortgage application.

You need to know the exact date when you moved into your rented apartment / new home and when you moved out. Not knowing the day may lead to a cross over and show that you were living in two different addresses at once.

This will lead to not only confusing the lender and may cause damage to your credit file or mortgage application.

Having a mortgage broker in Coventry by your side will be beneficial. That is a great perk of using a mortgage broker in Coventry. They won’t submit your application until it’s the best that it can be! They will make sure that everything is updated correctly to have the best possible chance of being accepted.

Impress the lender

Let the lender know that you have tried your best to get your application accepted. Whether you have evidenced your deposit and shown how you have saved it up or demonstrated that you’d made an effort to keep your address up-to-date, both ways will heavily benefit your application and impress them.

If you have an outdated address linked to one of your accounts, your lender will know that you didn’t check to see if any of your addresses needed updating. Some lenders may think that you haven’t taken things seriously.

Mortgage advice in Coventry

Now that you know the importance of changing your address and what lenders look for on your mortgage application, we hope you check up on your file to ensure that your application looks up to shape. Furthermore, for a second look at your application through a free mortgage consultation in Coventry, get in touch with us.

We have moving home mortgage advisors in Coventry ready to talk to you about your application a7 days a week. We would love to help you secure a great mortgage deal and to get your application looking perfect.

Buying a Property with Cash – Better than a Mortgage?

Once you decide that you are ready to move and buy a new home, there are two different routes you can take. You can pay the house off upfront or take out a mortgage on the property and pay the rest off over a fixed term.

Both options will come with high costs, however, obviously buying a house with cash is the most expensive option. Paying with cash will mean that you pay the exact price of the property, whereas, if you take out a mortgage, you’ll be paying off the property over a long period of time.

Why should I buy with cash if I can?

If you can afford it, buying with cash is an excellent investment. Whether you’re planning to live inside the property yourself or you want to use it as a buy to let in Coventry, buying with cash can sometimes speed up your moving home process and potentially put you in front of others who are want to take out a mortgage.

Reliability

If you’re approaching a property with a cash offer, it’s likely that you’ll have an advantage over applicants who are planning to take out a mortgage. One of the reasons why this is the case is due to reliability.

When a seller looking for a quick sale, they will usually choose a cash buyer over anyone. Having a cash offer often eliminates the chance of getting trapped in a property chain. A property chain occurs when a property is being sold to a buyer, however, they can’t move in yet as they’re still trying to sell their current home and sort out their mortgage. This process can repeat, resulting in homeowner after homeowner struggling to move out as they’re waiting for their buyer to move out.

Not being caught up in a property chain shows your reliability, you can progress straight through the affordability part of the process. As a mortgage broker in Coventry, we would still advise having a property survey carried out on your property. You won’t need a mortgage valuation though.

Easy and fast process

A quick and easy process of moving home in Coventry is what everyone wants. Making a cash offer often means that you’ll get through the process a lot quicker than had you taken out a mortgage.

You will not need a mortgage if you are paying via cash. However, as a mortgage broker in Coventry, we can safely say that on some occasions the mortgage process can be just as quick as paying by cash. It’s our job to provide a fast and friendly service in Coventry.

You don’t owe anthing

When you take out a mortgage, you’re essentially taking out a loan. You’re tieing yourself into a deal with 25+ years of potential mortgage payments. When you choose to purchase through cash, you won’t be making this commitment.

Also, you will not receive any interest. If you don’t have fixed mortgage payments, it’s likely that they’re going to increase slightly over time due to the internet on your mortgage. If you’re a cash buyer, this can never happen as you’ve already paid it all off.

Why should I get a mortgage and save my cash?

If you don’t have the funds available to pay by cash, you’ll have to take the mortgage route.

Cheaper in the short term

If you would rather save your life savings than use it on an upfront property purchase, you could save money short term by taking out a mortgage instead. Depending on your credit score/file, getting a mortgage will usually require a minimum of a 5% deposit (5% of the property’s value).

Getting a mortgage will let you pay off your home in monthly instalments. Paying monthly will allow you to pay back a small amount at a time rather than the whole chunk at once.

Something wrong with house

If a property listing reads “cash buyers only”, we’d advise that you take caution with the property. This won’t affect you if you’re taking out a mortgage, you’re probably dodging a bullet anyway!

It’s likely that the property has been listed as this as it needs lots of repairs doing on it. Lenders won’t want to lend you money for a mortgage on a property that is in very bad condition.

Despite the fact that it’s not required, we always advise that you get a property survey carried out on any property, no matter which type of buyer you are.

A mortgage advisor in Coventry by your side

Going into a cash purchase without help from an advisor may put you at a slight disadvantage to someone who has one by their side. Our mortgage advisors in Coventry will make the process as simple and as easy-going as possible.

It’s our job, as a mortgage broker in Coventry, to deliver you with fast and friendly mortgage advice service. Contact our mortgage team and we can assist you through the whole moving home process in Coventry.

Did you know that we can also help you make an offer on a property, arrange an AIP within 24-hours and perform a free affordability assessment on you?

Get in touch today for a free consultation in Coventry.

Fixed-Rate Mortgages | Mortgage Advice in Coventry

Fixed-rate Mortgage Advice in Coventry

What is a fixed-rate mortgage?

Typically, you’ll find that the highest interest rates come with long-term fixed-rate mortgages. This is why it sometimes may be best to fix your mortgage in short term.

Even though a short term fix could potentially save you money further down the line, you’ll have to frequently review and renew your mortgage because of it. When you’re remortgaging in Coventry, depending on how the economy is and what deals are available on the market, you may be able to access a good rate during every point of remortgaging.

At the point of remortgage, you may end up finding a better deal than your previous, or you could end up being on one that’s a little more expensive, you’ll never know until you start looking!

What is a Fixed-Rate Mortgage | MoneymanTV

Medium & long term fixed mortgages

If you’re looking to fix your rate for longer than 2 years, you may be better at looking for products with a fixed term between 3 and 5 years.

As a mortgage broker in Coventry, we’ve found that the most popular fixed-rate products are in 5-year terms. These deals are neither too short nor too long. A 5-year term will also add the security of constant monthly payments for the foreseeable future.

There’s really only one negative to fixing into a 5-year term. Overall, your payments may work out more expensive than if you had taken out a 2-year product and then a 3-year product, but not by much.

If you wanted to take out a fixed-rate mortgage for even longer, for example, a 7 to 10-year fixed-rate product, you may need to try and approach specialist lenders as there are a limited number of these deals on the market. By choice, these deals aren’t the most popular of choices amongst home buyers and owners. This is down to the length of the term. Also, you won’t get much flexibility whilst being fixed into a mortgage with a long term; they may also come with expensive setup fees and rates.

Fees to consider

You also need also consider the additional fees that come with remortgaging. Be aware of costs such as booking and arrangement fees. Usually, a booking fee will be charged upfront, whereas an arrangement fee will be charged upon completion. You may get the option to incorporate these fees into your mortgage payments, this will not only increase your payments each month but also increase the total amount paid for the fees as their costs will increase due to the interest.

Did you know that if you have the funds in place to so do, you can pay off some of your mortgage early? If you want to remortgage now rather than waiting till the end of your term, you can pay off your fixed-term total and remortgage early.

However, if you choose to do this, it’s likely that you’ll be charged with an ERC (early repayment charge). This is because you are tied into a deal for a set period of time, so paying it off early and remortgaging will cost you. You should continue if you are okay with paying the ERC.

Your ERC total is taken from a percentage of the amount that you still owe on your mortgage, not your term. For example, if you have £200,000 left on your mortgage, you may get something like a 2% ERC which is £4,000. If a current deal is available on the market that is better than your current one, it may be more beneficial for you to take the ERC and remortgage early as the product may go.

Remortgage Advice in Coventry

As a mortgage broker in Coventry, we always advise not to chase ‘headline’ deals. You should know that more often than not, the deals with the lowest rates come with the highest arrangement and setup fees.

For further fixed-rate and remortgage advice in Coventry, please get in touch today. We have helped 1000s of customers secure competitive fixed-rate products in the past, and we want you to be next!

Contact us for a free mortgage review in Coventry.

Divorce & Separation Mortgage Advice in Coventry

Specialist Mortgage Advice in Coventry

Divorce & Separation Mortgage Advice in Coventry | MoneymanTV

No one wants a divorce, but these things happen, for better or for worse. Divorces and separations are devastating and can easily spiral out of control when legal and financial matters get involved. As these things aren’t planned, there’s a lot of things to resolve before you go your separate ways and a lot of things that could go wrong along the way. In order to keep the divorce or separation as smooth as possible, it’s always best to know what lies ahead so you can prepare accordingly.

Here at your Specialist Mortgage Broker in Coventry, we know just the kind of mortgage issues you face during a separation or divorce. This is why we have compiled this list of the most common questions that we get from customers going through a divorce or separation and just how to deal with them. Rest assured, you’re not the only one going through these problems so we have extensive knowledge on the situation and know just how to help.

  1. How can I remove my ex-husband/wife or partner from my mortgage?
  2. How can I remove my name from my ex-husband’s/wife’s or partner’s mortgage?
  3. Can I have two mortgages?

Removing an ex-partner’s name

Agreeing to buy a home together is a huge financial commitment and is usually intended to be lifelong. This makes getting your name removed from a mortgage a lot harder as a matter of fact; making any changes to your mortgage is always a tedious task regardless of the situation. The only exception is at the end of your mortgage term when changing the agreement is easier.

When there are children involved, the property usually remains with the mother as she needs a place to raise the young ones, however, in some cases, it’s the other way around but either way, it may come down to whoever is “in situ” to take up the responsibility of the mortgage.

Removing an ex-partner’s name from a mortgage requires you to provide solid evidence that you will be able to meet your mortgage payments on your own. Every lender will look at your salary and your disposable income and then work out whether or not it’s realistic that you’ll be able to hold the mortgage payment fort on your own.

The lenders will also take a look at your ex-partner’s affordability and check whether or not they will be able to afford a mortgage on their own after the split. A full affordability assignment is carried out for both you and your ex-partner regardless of whether you have kept up-to-date with your mortgage payments in the past or not.

Keep in mind that since the property was bought jointly with an ex-partner, your lender can pursue either of you in the event of mortgage arrears.

Removing your name

Taking your name off the mortgage is quite similar to how you remove your ex-partner’s name. Although, in this situation, you are the one that is trying to vacate the property and move on which can sometimes create some unique difficulties.

Removing your name usually creates difficulties as you will need consent off your ex-partner that you can take your name off the mortgage. There’s also the issue of your lenders having to approve of you taking your name off. They decide this after a full affordability check on your ex-partner to check whether they’ll be able to afford their mortgage payments or not.

If your ex-partner gives consent for you to take off your name from the mortgage and are also capable of making the mortgage payments on their own, you will inevitably have to start looking for a place of your own. When you eventually find a place, your lender will consider your mortgage payments from your old property into consideration. There are a number of lenders that will have strict lending criteria while others may be even stricter. This why getting a suitable lender for yourself can prove to be quite difficult. Luckily, Coventrymoneyman takes your situation into consideration squarely which is why you should approach us when going through a divorce or separation.

Getting help

In a lot of recorded cases, a third party may come in to offer a helping hand with the mortgage payments. This third party is usually a family member that may decide to help out or in other cases, there may be a new partner that is willing to step in.

This isn’t always the situation as you might want to make all of the mortgage payments by yourself. There’s no problem with this choice, but don’t be ashamed of reaching out and getting Specialist Mortgage Advice in Coventry from an expert! Our Mortgage Advisors in Coventry are experienced in this specialist field. Getting help with your finances or with removing your/ex-partner’s name off a mortgage could take a heap of the stress off your back. We want the best for you at the end of the day.

Can I have two mortgages?

This is another common question and the answer is yes, in fact, you can own multiple mortgages, however, before getting accepted for another mortgage, your lender will have to take a closer look at many different factors. When they are checking your file, they will be able to see that you are still linked to another mortgage (or have been recently).

They will examine just how much you are contributing to these mortgage payments and check whether or not you’ll be able to manage additional mortgage payments on top of them. Lenders also expertly factor in any other credit commitments that you have.

Lenders will also account the risk factor, for example, how likely is it that your home is repossessed because you couldn’t afford your mortgage payments. They won’t take any risks either.

Mortgage Broker in Coventry for advice on Divorce & Separation

If you’d rather get an affordability check before you directly approach a mortgage lender, you can approach a Mortgage Broker in Coventry like us. We will perform our own credit check and affordability measures to find out whether it’s realistic that you’ll be able to afford another mortgage.

We have Mortgage Advisors in Coventry that specialise in this field, so don’t hesitate to get in touch with us. We are more than happy to help.

Should I Get Mortgage Advice in Coventry?

Mortgage Broker in Coventry

Should you get Mortgage Advice in Coventry? It really depends on your personal & financial situation, however, sometimes it’s always best to get a second opinion from an expert.

As a Mortgage Broker in Coventry, our job is to try and help you save both time and money. Whether this is saving money on your current deal when it’s time to Remortgage in Coventry or finding you a great deal for your new property, most of the time we are able to help. We have over 20 years of experience within the mortgage world, so we know exactly where to look for the best deals.

Why do people come to us for Mortgage Advice in Coventry?

There are lots of different reasons to why people may want to come to a Mortgage Broker in Coventry like us for mortgage advice. Quite a few of our customers come to us after being declined by their bank and need an expert’s opinion on their mortgage situation. Also, we get a lot of First Time Buyers in Coventry that need help getting the ball rolling.

Remember, no matter your mortgage situation, we are still here to help. Whether you are Moving Home in Coventry, Self Employed and struggling to get a mortgage, remortgaging or even interested in Buy to Lets, we may be able to help! All you need to do is get in touch and claim your free initial mortgage consultation in Coventry. We specialise in lots of different areas, once we know your situation, we will pass you onto a Mortgage Advisor in Coventry, and before you know it, your mortgage journey will be on the move.

After your free mortgage consultation…

Once we have taken some details off you during your free mortgage consultation, you will be passed onto one of our expert Mortgage Advisors in Coventry. They will help you through the process and even help you get an agreement in principle arranged if you need help with that. All you have to do is find a property that you want to make an offer on and then the rest will fall into place.

After you make your offer, we will compare mortgage deals for you. Your Mortgage Advisor in Coventry will look at your personal and financial circumstances and then try and find deals that will benefit you most. Throughout the whole process, we will right by your side to provide our full help and guidance whenever you need it.

Our mortgage advice service in Coventry

As a reliable Mortgage Broker in Coventry, we always aim to provide an excellent level of customer service. Through a fast and friendly service, to being responsive at all times, we always go above and beyond for our customers, no matter their mortgage situation. When someone approaches us for Mortgage Advice in Coventry, we always consider every situation that we are faced with; no one gets turned away.

If you want to see more of our amazing customer reviews, feel free to check out our reviews page. We take pride in our customer service, it’s what keeps us moving forward as a business.

Availability

Your Mortgage Broker in Coventry is available from 8am – 10pm, 7 days a week! So, don’t ever hesitate to get in touch; our advisors will be waiting by the phone for your call.

Customer service is at the heart of our company, we work solely for you. For a free mortgage consultation, fill out our form on the contact us page or give us a call. We can’t wait to hear from you!

How Much Deposit Are First Time Buyers in Coventry Putting Down?

First Time Buyer Mortgage Advice in Coventry

As a Mortgage Broker in Coventry, we often see that First Time Buyers struggle to get onto the property ladder. Sometimes it’s down to personal circumstances, however, we commonly see that first time applicants don’t actually know how much to put down for their deposit and how much they should save for. If you apply for a mortgage and get turned away due to not having enough deposit, you could potentially damage your credit score.

As a First Time Buyer mortgage applicant, it can be hard to wrap your head around all of the different things that you need to prepare for a mortgage. To give you an insight into some of the costs that come with a mortgage, we have collected some data based on First Time Buyer mortgage applications in Coventry. We chose to cover the average deposit amount, purchase price and loan-to-value percentage (LTV%).

First Time Buyers in Coventry Averages

Average deposit amount

When looking at the data that we collected, Coventry and Birmingham are very similar. For example, the average deposit for First Time Buyers in Coventry is £35,200. In Birmingham, the average is £32,200. There is no significant difference between the two average deposits.

This is around a 17% deposit average, which is quite a lot when compared to other areas around the UK. You have to remember though that this is an average and doesn’t represent every single house in Coventry.

More often than not, First Time Buyers receive help from family members or friends through a gifted deposit. So, even if you feel that £35,200 is a big deposit, you may get a part of that through the aid of a gifted deposit. If you are lucky enough to receive a gifted deposit, you now have your portion of your deposit plus whatever you have been gifted.

This can often push the applicant’s deposit above the minimum that the lender wants, boosting your chances of being accepted greatly. In turn, this may then allow the applicant to access a lower-to-value panel where they will be more competitive deals and lower interest rates.

Average purchase price

Despite the average deposit amount for First Time Buyers in Coventry being very similar to Birmingham, it isn’t the same for the average purchase. Coventry’s average purchase price for First Time Buyers is £205,720 and Birmingham’s is £181,000, with the county average being £193,000. This shows that it is more expensive to live in Coventry than in Birmingham.

When comparing this to somewhere in the north of England, for example in Yorkshire the average is £157,000. So, according to our data, it’s more expensive to live in the West Midlands over Yorkshire.

Average loan-to-value (LTV)

Once you have your deposit amount and your purchase price, you can work out your loan-to-value percentage. A lower loan-to-value percentage normally comes with more competitive rates.

In Coventry, the average loan-to-value percentage sits at 83%. Birmingham has a slightly better loan-to-value, but then again, they are very close which doesn’t make that much difference.

This infographic below shows you how to work out your loan-to-value percentage:

Loan-to-value calculator in Coventry

Are you a First Time Buyer in Coventry?

Coventry is a big city with a large variety of housing choices available. As a First Time Buyer in Coventry, you should have no problem with finding a property that is right for you. Coventry could be the perfect location for you to start your mortgage journey.

If you are wanting to take that first step onto the property ladder but are wanting some help and guidance, it may be within your best interests to approach a Mortgage Broker in Coventry, like us.

What is a Cashback Mortgage?

Mortgage Advice in Coventry

Many mortgage applicants, particularly First Time Buyers in Coventry, don’t realise that there are lots of different types of mortgages available. There are both advantages and disadvantages to each mortgage type, however, you will always go for the one that is best suited to your individual circumstances. This is where we come in, as your Mortgage Broker in Coventry we will find the perfect deal for you; we know the ins and outs of mortgages so we will know exactly where to start once you send us your details.

In this article, we are going to look at cashback mortgages and how they work. We will also look at how a cashback mortgage benefits borrowers and how it compares to other mortgage options.

If you would rather watch our video, feel free to watch “What is a Cashback Mortgage?” below. MoneymanTV is our new virtual hub for everything mortgage, so make sure to check our channel on Youtube for weekly mortgage tips and tricks. We also have made a dedicated playlist for videos like this, it’s called “Mortgages Explained”, find it here.

What is a Cashback Mortgage? | moneymanTV

What is a Cashback Mortgage

If you haven’t already guessed it by now, a cashback mortgage works as a normal mortgage, but once you pay off / finish your mortgage term you will get some money back.

The amount that you get is usually based off a percentage of what you have borrowed, this is normally about 1 or 2%. In some cases, a fixed price may be stated in your contract. This amount cannot be increased over time, it will always be that amount.

How will a Cashback Mortgage benefit me?

Cashback mortgages have pros and con, but again, it really depends on your individual circumstances. Most cashback mortgages come with free property valuations or some sort of fringe benefits on the side. This is good as you could be saving money in areas that you didn’t think you could.

Cashback mortgages will best suit applicants who are looking at borrowing lower end mortgages. The obvious benefit is that you get some money back, which could really benefit you in the long run. As a Mortgage Advisor in Coventry, we would advise that if you get offered a cashback mortgage, you should take it into consideration as taking it up could benefit you more than you realise.

The only negative with cashback mortgages is that they usually come with higher interest rates than other mortgages.

Different types of mortgages

The cashback mortgage tends to get shed from the limelight when compared to other mortgages. Despite the fact that this mortgage option is not the most popular, we still get enquiries about them and will always recommend them to an applicant if we think that it will benefit them most. They are still worth considering and are a great back up option if your primary option doesn’t go ahead.

We have been working within the mortgage broker industry for over 20 years now, so we will do our best to recommend you with the most appropriate outcome, based off your personal and financial situation. If your situation is a little more complicated and you are looking for Specialist Mortgage Advice in Coventry, don’t hesitate to call us. We have dealt with almost every mortgage scenario possible, it’s more than likely that we come across a similar or if not the same situation before.

Feel free to get in touch to have a chat with a Mortgage Advisor in Coventry about your mortgage options.

Buying a New House in Coventry | 9 Questions to Ask

Moving Home Mortgage Advice in Coventry

As a Mortgage Broker in Coventry, we know that the home buying process can sometimes be complicated and stressful. Just like you, we want everything to go as smooth as possible.

To help you get the most out of your next house viewing, we’ve put together a list of nine questions to ask before you buy a house in Coventry:

1. How much interest has there been in the property/development?

Usually, there is a popular demand for newly built homes, so if you are interested in a newly built property, you may need to act fast to make sure that you secure it before anyone else does. Newly built homes are popular because you can take out a Help to Buy mortgage with them, which often gives the buyer that extra boost that they needed.

Also, by finding out how many people have viewed or enquired about the house, you’ll get be able to work out how much ‘thinking’ time you have left.

As a rule, new properties tend to be snapped up quickly. But this doesn’t mean older properties can’t go quickly. We advise that you are ready to act quickly – especially if the property is receiving a lot of interest.

2. Is there a chain?

Finding this out can have a significant impact on a few aspects of your buying experience.

If there’s no onward chain, it’s likely you’ll be able to move quickly, especially if you’re not part of a chain yourself.

If you’re not needing to sell your own property first, then you’ll have much more leverage as a buyer. Why? Because you won’t hold up the buying process and this is attractive to sellers who are looking to move into a new home. If you find yourself in this situation, make sure you use this to your advantage during negotiations.

3. What’s included in the sale?

If you’re not buying a new build property, then you might find the previous owner is leaving some items behind. It’s not unusual for white goods or sheds to be available as part of the deal. This can be great news for buyers, but if you don’t want or need these items, you will have to factor in disposing of them.

If you are buying a new build property, there might be optional extras you can buy which will be ready for you on the day you move in.

4. What are the neighbours like?

When moving to a new area, it’s worth finding out about the neighbours.  This is sometimes a factor people underestimate, but it can really make a place feel special if you get it right.

If you opt to move to a new development, you and your neighbours will be the ones creating the community which can also be a risk.

5. How much does it cost to run?

Running costs can vary wildly from house to house, so it pays to do your research and ask the right questions. Find out how much the Council Tax is along with the average spend on utilities by asking the seller or researching online. Finding out this information can help you budget for each property accordingly.

6. Which way does the house face?

If you enjoy basking in natural light, the direction the house faces can make a big difference. You’ll often pay a premium for a south-facing garden as they receive the most sun throughout the day.

7. How much work will be required after moving in?

Again, this can have a significant impact on your budget. Key things to find out about are:

  • Improving energy efficiency
  • Addressing damp problems
  • Changing the décor

8. Are you open to offers?

This part may be difficult for First Time Buyers in Coventry with no mortgage experience, which means that Home Movers may have a slight advantage.

Negotiation is a common part of the house-buying process. Therefore, find out how to make an offer if you’re interested in the property so that you can act quickly once you decide.

Also, think about chatting with the seller or estate agent to determine what may be deemed too low or too high as well as finding out if any other offers have been made and rejected.

9. When can we move in?

If you’re set on the property, the next thing you need to know is when you can start making the place your home. You may have gained an inclination by asking some of the earlier questions, but by setting a date in your diary, you can plan your other jobs, such as instructing a conveyancing solicitor, packing your belongings and arranging a removal van.

We hope this handy list of questions to ask when buying a house can help you out during the buying process.

Types of Mortgages Explained in Coventry

Mortgage Advice in Coventry

Whether you are looking at Moving Home in Coventry or are a First Time Buyer in Coventry trying to get onto the property ladder, you will realise that there are lots of different types of mortgages out there. Some are more popular than others and not every lender will offer every different mortgage type.

We have made a list of the most common mortgage types that you will come across. We will also find a YouTube video for each mortgage type. These videos are from our YouTube channel MoneymanTV which you can go straight to here or you could watch our Mortgages Explained YouTube playlist here instead.

Different types of mortgages

Fixed-rate mortgage

A fixed-rate mortgage means that your mortgage payments are going to stay the same for a set period of time. You can set the length of which you want to fix your payments for, typically this being 2, 3 or 5 years or longer. No matter what happens to inflation, interest rates or the economy you know that your mortgage payment, usually your biggest outgoing, will not change.

Tracker mortgage

A tracker mortgage means that your interest rate will track the Bank of England’s base rate. So in other words, the lender that you are with does not actually set the rate themselves. You will be paying a percentage above the Bank of England base rate. In an example, if the base rate is 1% and you are tracking at 1% above base rate, that means you will be paying a rate of 2%.

Repayment mortgage

When you take out a repayment mortgage this means that each month you are paying capital and interest combined. So as long as you keep your payments going for the full length of the mortgage term, the mortgage balance is guaranteed to be paid off at the end and the property becomes yours.

This is the most risk-free way to pay your capital back to the lender, in the early years it is mainly the interest that you are paying and your balance will reduce very slowly especially if you have taken out a 25, 30 or 35-year term. This situation switches in the last ten years or so of your mortgage, where your payments are paying off more capital than interest and the balance will come down much faster.

What is a Repayment Mortgage? | MoneymanTV

Interest-only mortgage

Whilst many Buy to Let mortgages are set up on an interest-only basis, it is much more difficult to get a residential property on an interest-only basis.

It is much less likely for lenders to offer an interest-only product now.  However, there are certain circumstances where this can be an option. These include downsizing when you are older or have other investments what you will use to pay the capital back. Lenders are very strict when it comes to offering these products now and the loan to values are a lot lower than back in the day.

Offset mortgage

With an offset mortgage, the lender will set you up a savings account to go alongside your mortgage account. How this works is that let’s say you have a mortgage balance of £100,000 and £20,000 is deposited into your savings account, you only pay interest on the difference, so in this case, £80,000. This can be a very efficient way of managing your money, especially if you are a higher rate taxpayer.

Coventrymoneyman.com & Coventrymoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
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© 2021 Coventrymoneyman

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