Can You Remortgage in Coventry During a Fixed Term?

Remortgaging in Coventry can be a fantastic way to save money on your mortgage payments or access funds that are currently locked up in your home through an equity release remortgage in Coventry.

Many homeowners in Coventry typically begin their remortgage process about 3-6 months before their current mortgage deal is set to expire. Some homeowners, however, are uncertain whether they can remortgage during a fixed term, before it is due to end.

A fixed term mortgage is a type of mortgage where the interest rate remains fixed for a set period, usually between two and five years. During this time, you are legally obligated to maintain your mortgage payments.

In this article, we will take a look at whether remortgaging during a fixed term is viable for you and whether it is something you should consider doing.

When should you look into a remortgage in Coventry?

In Coventry, it is typical for homeowners to consider a remortgage on their property about 3-6 months prior to their current deal expiring.

This allows enough time for a dedicated mortgage broker in Coventry to carry out their work and ensures that you have a smooth transition, as your new deal will be ready to begin when your old one ends.

By doing this, you can avoid possibly lapsing onto your mortgage lender’s standard variable rate of interest (SVR), which is usually at a much higher rate of interest than the Bank of England base rate and is subject to change solely at the discretion of the mortgage lender.

These deals are generally more costly, and it is unlikely that they will be your best option.

Instead, your mortgage advisor in Coventry will utilise this time before your current deal ends to search for suitable deals that meet your mortgage needs, such as if you are considering a remortgage in Coventry for home improvements.

Can you remortgage in Coventry during a fixed term?

Remortgaging in Coventry before the general 3-6 months prior to the end of your fixed term is considered early remortgaging.

Although technically possible, you should bear in mind that your mortgage lender may present you with early repayment charges, as you are breaking the contract you signed at the start of your deal.

Should I remortgage in Coventry early?

The answer to this question depends on your specific goals. Our recommendation is always to seek remortgage advice in Coventry before making any decisions.

Typically, people don’t consider remortgaging in Coventry unless they have a very good reason to do so. Therefore, it’s important to make sure that you have a good reason for taking this step.

Some popular reasons for remortgaging include finding a better deal, protecting against possible interest rate hikes, and changes to inflation. Ultimately, you must determine whether remortgaging is financially beneficial to you in the long run.

Keep in mind that early repayment charges can be quite expensive, so it’s important to weigh the potential benefits and drawbacks of remortgaging.

Why don’t people usually remortgage in Coventry early?

Once more, it is advisable to stay clear of early remortgaging, as it may come with quite a costly early repayment charge. The costs can be particularly high if you are looking to do this very early on in your fixed term.

On the other hand, if it makes sense for you financially and the savings outweigh the charges, then it may be worth considering. We strongly advise that you speak with a trusted mortgage broker in Coventry, in order to make sure that it is definitely right for you.

Can I remortgage early in Coventry with the same lender?

Although a remortgage in Coventry typically involves taking out a new mortgage with a different lender, it’s important to note that you may also have the option to take out a new mortgage with your current lender, which is known as a Product Transfer.

The truth of the matter is, a Product Transfer is often just as, if not more popular than a remortgage in Coventry.

Your mortgage lender may even inform you when your current deal is set to expire, similar to how a mortgage advisor in Coventry would. While it’s still possible to initiate an early Product Transfer, you should keep in mind that there may be early repayment charges involved.

That being said, however, choosing to stay with your current mortgage lender may result in fewer fees, as you won’t have to pay the legal costs that come with switching to a new lender through a remortgage in Coventry.

Fees to Consider with an Early Remortgage in Coventry

When you decide to remortgage in Coventry, you should expect to be paying various fees, similar to any mortgage.

If you choose to remortgage early in Coventry, you may have to pay an early repayment charge in addition to the regular fees.

Early Repayment Charge

An early repayment charge is typically required when you want to leave your mortgage before the end of the contracted period, especially during the fixed term. The earlier you leave, the higher the charge is likely to be.

This charge is given to you, because you agreed to repay your credit over a specific period when you signed the contract with your mortgage lender. While remortgaging early in Coventry can benefit you financially, it also breaks your contract, resulting in a charge.

Exit Fees

Most mortgage types will have exit fees, which are typically required to be paid once you have fully paid off your mortgage. These fees may apply at the end of your full mortgage term or if you choose to remortgage in Coventry and switch to a new deal.

Valuation Fees

Valuation fees are typically associated with remortgaging in Coventry. If you opt for a Product Transfer, your current mortgage lender is already aware of your property’s value, so this may not apply.

On the other hand, if you switch to a new mortgage lender, they may want to assess the property’s worth before granting you a mortgage.

Some mortgage lenders might offer this valuation service at no additional cost, while others may charge a fee. Your mortgage advisor in Coventry will be able to provide you with more information on this during your free mortgage appointment.

Arrangement Fees

Product fees, also known as arrangement fees, are typically linked to specific mortgage deals. You may have the option to include these fees in your mortgage balance and pay them off in installments, or you could choose to pay them upfront.

Your mortgage advisor in Coventry can help you understand the specifics of these fees during your mortgage appointment.

How to Remortgage in Coventry Before Your Fixed Rate Ends

In most cases, you will need to show your commitment to a mortgage deal for at least 6 months before you can consider remortgaging in Coventry. Attempting to do so earlier may result in higher fees.

It’s important to reach out to your mortgage lender to inquire about the fees involved in remortgaging early, and to seek mortgage advice in Coventry of a qualified mortgage advisor in Coventry.

A free remortgage review can help you make an informed decision on whether to proceed with your plans or wait for your fixed-rate mortgage to come to an end.

During the review, our remortgage advice team will discuss the reasons for your desire to remortgage early in Coventry, and suggest the best course of action based on your individual circumstances.

Can I Port My Mortgage to a New Property in Coventry?

When it comes to porting mortgages, you will find that pretty much all high street mortgages are portable. By doing this, you will be able to move it from one property to another without incurring any penalty.

What advantages are there to porting a mortgage?

A porting a mortgage can be helpful if you are looking to move into a new home and are currently involved in a contract with a fixed rate. Furthermore, you potentially avoid any early repayments charges that could have occurred.

Are all mortgages portable?

Generally, most mortgages that are available to customers are portable, however, it doesn’t mean all are. Some specialist lenders will not allow this to happen. To find out if this is an option for you, speak to a mortgage lender who can confirm this for you.

Should I port my mortgage?

As much as this is likely to be an option that is available to many homeowners, some may decide not to. This may be due to the lender not willing to lend them the required additional funds that are needed to move home.

Keep in mind that the additional funds will be at a different rate compared to the rate that your current mortgage deal is on at the time.

It may be helpful to take on those early repayments charges instead of staying where you are, however, this does come down to what your lender offers you.

What is a Sub Account?

When you decide to port your mortgage, a sub-account is created. This is where the additional funds are placed onto a different deal than the one you have on your current mortgage.

Even though you have a single mortgage and a single direct debit in your name, the different interest rates will apply to each.

When it comes to a sub-account, you may find you will be in some difficulty with it in the future. This is because different products will overlap one another over time.

In order to get your accounts aligned once again could result in one of the sub-accounts falling onto the lender’s standard variable rate for a certain amount of time. For further information regarding this, speak to an expert mortgage advisor in Coventry.

Whether you’re Moving House in Coventry, looking into getting a buy to let mortgage in Coventry, or need assistance with your self employed mortgage in Coventry, book yourself in for a free mortgage appointment to discuss your options with a mortgage advisor in Coventry further.

Why Use a Mortgage Broker in Coventry?

Why use a mortgage broker in Coventry? | MoneymanTV

We Aim to Take Your Stress Away

Buying a home can be a stressful experience, which is why home movers and first time buyers in Coventry use a mortgage broker to help make sure their home buying process go as smoothly as possible. It’s comforting for our customers to know they have someone on their side, on hand to answer any enquiries they have.

A mortgage advisor in Coventry will ensure you obtain the cheapest mortgage to suit your needs. We take full responsibility for recommending the most suitable mortgage for you and package your application to the Lender in such a way to give it the best chance of success.

The same applies when you come to remortgage too, we like to know our customers are on the cheapest deal for the entire mortgage term.

When Should I Get Mortgage Advice in Coventry?

If you’re looking at taking out mortgage advice when buying a home, we recommend talking to a mortgage advisor in Coventry. Your committed member of the Moneyman team will be able to help you work out how much your payments will be, as well as how much you may be able to borrow.

That said, different lenders have their own strict lending criteria, so it does help to speak to an expert. If you know what you can afford well in advance of making an application, it may help you avoid any potential future disappointment. 

We aim to ensure all customers are informed about their mortgage application progress so you are fully aware of what is going on. If you have any questions, we are available seven days a week, ready to help you out in any way we can.

Free From Estate Agents, Banks or Building Societies

Mortgage Brokers work for the customer, not the Lender. This is something that is important to remember throughout your process. Our team are firmly in your corner, sometimes having to argue how strong an application may be, in order to ensure it goes through.

Our company process of requesting and checking your proof of income and bank statements ahead of time allows us to try and avoid any hurdles that may arise, hopefully before they can become a factor. 

We also can help you choose the right type of survey for your property, as well as instruct a Solicitor on your behalf to carry out the legal aspects of your transaction. 

Building Customer Relationships

We love to build up customer relationships and assist with future mortgage enquiries, whether as a buy to let landlord in Coventry with your portfolio or remortgage when your term ends. This often starts with an affordability assessment and agreement in principle prior to even finding a house. 

Once your purchase is complete, a member of our team will keep in regular contact, and we will get in touch once more to discuss your remortgage options. We can then compare the market on your behalf as we did before to help you obtain the best remortgage deal available for your circumstances.

Buying as a Sitting Tenant in Coventry

Sitting Tenant Mortgage Advice in Coventry

Now and again, we receive calls from tenants when the landlord has notified them and is considering selling their properties. 

That said, it is much easier for landlords to sell to existing tenants than the open market. Tenants sometimes have the opportunity of deciding whether to accept or reject it before the landlord offers it to others.

Why is my landlord selling up?

The Government has re-evaluated tax reliefs previously afforded to landlords, leading many landlords to pay more tax than before, hence selling their properties. A prevailing situation for landlords. 

On the other hand, more severe investors often keep their properties as they view it as a long-term arrangement and a sound investment despite legislative changes.

Why is it better for landlords to sell to sitting tenants?

There are various reasons why a landlord might choose to sell their property to you. These include and are not limited to:

  1. They avoid paying commission with estate agents.
  2. It avoids ‘loss of rent’ due to not having tenants in the residence until the sale goes through.
  3. No refurb costs: If a tenant moves out, the property will have to be prepared for sale. With potential expenses needed to redecoration, e.g. new flooring.

Advantages For You

Not only are there advantages to landlords, but there are potential advantages to sitting tenants who are considering buying the property as a first time buyer in Coventry:

  1. You know the property inside out. No nasty surprises for you! If there are any faults, you’ll already be aware of them.
  2. You won’t be caught up in a chain. You aren’t waiting for the property owner you’re after to finish their process, meaning you can do a deal faster.
  3. Discounted price when purchasing. Given all the advantages listed above, it’s normal for a landlord to sell to a sitting tenant at a discounted price. More commonly known as a ‘sale undervalue’.

Some lenders will allow any discount the landlord offers you as part/all of your deposit if the agreed price is well below the open market value. It may even be possible for a tenant not to have to put down any deposit at all.

The Popularity of Gifted Deposits

The Benefits of Receiving a Gifted Deposit

We tend to find nowadays that more parents are gifting a deposit than ever before. Realistically, the “Bank of Mum & Dad” is now within the UK’s top 10 biggest lenders.

It’s no surprise how many younger people struggle to save enough for a deposit and lean on their parents or friends to help gift part of the entire housing deposit. Some parents or other family members, such as grandparents, are now gifting amounts upwards of £24,000.

Extra Assistance to get a Mortgage

Hundreds have become reliant on a family member every year, hoping to help them onto the property ladder. When speaking to some customers, we found that they felt a sense of personal responsibility.

It’s no surprise why many need that extra support, an increase of property prices, that has gone way over the average wage, leaving many unable to save for the deposit on their first home while coving the expenses of rent and utility bills. That said, it’s become more apparent if there is only one income supporting the household or being a sole applicant.

Escaping the rental cycle & getting a mortgage in Coventry

While renting may seem helpful in the short term, it can harm any chance people have to save for a mortgage deposit in the long run. Some decide to move back in with their parents to help save up the necessary costs for a larger deposit. Surveying 1600 parents who had helped their children out, many went on record as saying they had used their savings to do so. 

Another concern is that some said they had withdrawn from their pension schemes or equity to gift a deposit. Essentially, this is them putting forward any inheritance their child would receive.

To read about what could be available to you, read our help to buy mortgage in Coventry service page, or check out our first time buyer in Coventry service page. If you like to arrange to speak with a mortgage advisor in Coventry, please feel free to get in touch with us today. 

Plan Ahead to Get a Mortgage in Coventry

Plan Ahead to buy Your First Property in Coventry

If you are looking at buying a property in Coventry, choosing to do so is not something you should decide in a day. It requires careful planning and preparation over time. 

You’d be surprised at the number of people we deal with regularly, who are more spontaneous in their buying habits and have therefore neglected to prepare for a mortgage.

First time buyers in Coventry have their reasons as to why they decide to jump into such a significant financial commitment, this includes:

The Drawbacks With not Planning for a Mortgage

By not preparing for a mortgage, you are leaving yourself open to potential issues with your mortgage application. Some of the standard mortgage hurdles we find customers face include:

Having a Low Deposit

Saving up your deposit for a mortgage can be a challenge, especially if you are renting at the moment from the council or private landlord. 

As you have significant outgoings and essential purchases each month, limiting what you can save in-between.

Have you ever considered seeing if anyone can give you a hand with a gifted deposit? We find that this is a regular occurrence with first time buyers in Coventry, as family members or friends will try and help whenever they can. 

That said, most lenders do prefer gifted deposits from family members rather than friends. If a family member or friend is looking to help, it’s best to give them as much notice as possible to get their finances in order! Just remember, a gifted deposit is a gift, not a loan.

Credit Rating

Getting an up to date credit report is not an incredibly difficult task. We recommend Check My File, as they can collate the data from different sources into one for you to compare.

Once you have downloaded a copy of your credit report, you can send it to a mortgage advisor in Coventry, who will look at it for you. 

They will know precisely what sort of things the lenders will like to see and what they do not want to see.

Bank Accounts

When lenders look at your bank statements, make sure there are not many unnecessary bank charges or gambling transactions. You will need to provide the lender with a reasonable explanation of what happened on your account and how you plan to resolve this going forward if any issues crop up.

Self Employed

We realise that Accountants try to minimise the tax liability for their customers. That said, there is nothing to stop you from submitting another set of accounts earlier than you might typically do.

Especially if your business has developed in the last 12 months, some lenders consider overlooking previous years’ figures if the latest ones are more beneficial to a lender.

If anything is covered related to you, we may be able to help. Our team of mortgage advisors in Coventry love a challenge, so do feel free to get in touch!

How a Mortgage Broker in Coventry can Take Away the Stress of Moving Home

Some homeowners agree that moving home is one of the most stressful and intimidating experiences. However, it does not have to be this way!

Once we have assessed your situation, our job is to take care of all the legwork of the process. For instance, with the advice of a mortgage broker in Coventry, we can deal with the aspects of your mortgage so you can focus more on the move itself. Making your journey stress-free. We can use our wide range of lenders to make sure you find the most appropriate moving home mortgage.

If you were thinking of moving home in Coventry, enjoying property viewing, or ready to make an offer on the house. 

If you want trustworthy mortgage advice in Coventry, please feel free to get in touch with us. We can help you get your mortgage process started.

How we can help you through your moving home journey?

Taking care of the ‘stressful’ parts of the process

You won’t have to shop around. It’s our job to search through mortgage deals on your behalf to find one that matches your financial situation.

We will need some documentation like ID, proof of income etc. These will help back up who you are and if you can afford your mortgage payments.

We can get ready to submit your mortgage application for you. If we find one that matches your personal and financial situation that comes with a competitive rate and you want to continue with it.

Fast and Friendly Process

Once you’re in contact with our team, we’ll pass your straight onto your dedicated mortgage advisor so that they can arrange your free mortgage consultation and get some information from you.

If you’re a first time buyer in Coventry who already found a property and are ready to put an offer, we can quickly help you find a competitive mortgage product to match your situation, allowing you to continue with your purchase.

We can also arrange an agreement in principle for you within 24-hours of your application. Not only can it help boost your application. But most importantly, it shows you’ll have a clear idea of your budget, and you’re a serious buyer.

Happy to Answer all Questions

Don’t be nervous about asking lots of questions. Your mortgage advisor in Coventry is here to be completely open and honest with you at all times. If you have any questions, your advisor will be sure to answer them and keep you posted on what’s going during every step of the process.

Speak When it Suits you

We want you to be able to communicate with us when you feel most comfortable. We’ll be available seven days a week and book you in for an appointment when there’s availability. You’ll be speaking to a mortgage advisor in Coventry in no time.

Mortgage Advice in Coventry

Our mortgage advice team are here to help you through the whole moving home process – from start to finish, seven days a week.

We offer a free mortgage consultation to new/existing customers, no matter their mortgage situation. Please feel free to get in touch with us. We can help you get your mortgage process started. & Coventrymoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.

UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.

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