The Financial Conduct Authority does not regulate some types of commercial or buy to let mortgages in Coventry.
In the mortgage world, there are a wide variety of routes that someone buying a property in Coventry can go down. From first time buyer mortgages in Coventry, to remortgages in Coventry, holiday lets and even HMO properties, there’s a lot you could do!
One of the options that we come across most, that is incredibly popular for property buyers, is a buy to let mortgage in Coventry.
A buy to let in Coventry is a property purchased as an investment, it’s not a property you can live in, the sole purpose is to generate income. If you have been a private renter at some point in the past, it is incredibly likely that you have a buy to let mortgage in Coventry.
For a property to have the classification of a buy to let in Coventry, it has to be mortgaged as that type of property, with the landlord expressing their intent to rent. The tenant will be paying a monthly rental fee, that in theory should cover the monthly mortgage costs that the landlord has, plus extra.
There are many different factors to take a look into, before you are able to determine your eligibility for taking out a buy to let mortgage in Coventry.
Some of these factors will include the type of property you’re looking to purchase, how old you are (you need to be at least aged 21 and not all mortgage lenders will let you borrow past aged 75), as well as any prior experience you have of being a buy to let landlord.
The biggest factors to look at are affordability, the minimum required deposit for a buy to let mortgage in Coventry and lastly, your credit score.
For you to be able to prove that you are eligible for a buy to let mortgage in Coventry, you will need to prove to your mortgage lender that you can afford it. Most mortgage lenders base their criteria on what the projected rental income will be.
Projected rental income is the figure that your mortgage lender believes you should charge as rent, in order to cover the costs of your monthly mortgage payments, plus some more. There will be a set requirement for this, which is calculated based on the property value.
Further to this, there are some mortgage lenders that work with buy to let mortgages in Coventry, that will also have a minimum income requirement. This typically sits around £25,000, though this will entirely depend on your mortgage lender.
An expert mortgage broker in Coventry with experience in working with buy to let mortgages in Coventry, such as Coventrymoneyman, will look to find the most suitable mortgage lender for your plans, as well as with the best deal for your buy to let investment purchase.
As tends to be the case with most purchases, there will be a need for you to put down a deposit. For a buy to let mortgage in Coventry, you are typically looking at a 20-25% deposit on the property, though can be more or less, depending on your mortgage lender.
The reason that they require this deposit, is to reduce your risk to the mortgage lender, as a higher deposit means you borrow less against the property. You’d be giving yourself a 75-80% loan to value as well, which gives you much better interest rates.
If say you had bad credit when applying for a buy to let mortgage in Coventry, you would be seen as a higher risk to the mortgage lender than the standard applicant, perhaps warranting the need for an even bigger deposit.
It may be entirely possible to get a buy to let mortgage in Coventry even with a poor credit score or with a history of having bad credit, though your mortgage lender options may be much more limited. There may even be some who won’t lend to someone with bad credit at all, depending on severity.
Fortunately, there are mortgage lenders who are willing to consider buy to let bad credit mortgages in Coventry. Of those mortgage lenders, they will want to again look at how bad it is, possibly requiring a higher deposit than you otherwise might have saved up for.
In order to make an application for a buy to let mortgage in Coventry, you’ll first need to find a property that you would like to buy.
From that point, the next step is to get in touch with an open & honest buy to let mortgage advisor in Coventry, in order to confirm your eligibility. They will also check the market for the absolute best deals for you and arrange your mortgage agreement in principle.
Once you have this document, you will be able to make an offer on the property you wish to buy, which will lead on to your full mortgage application process, providing that offer is accepted.
Typically speaking, the majority of buy to let mortgage investors will take out an interest only mortgage on their property, as this means only paying interest per month, lowering your monthly outgoings.
Once the term comes to an end, you will owe the remaining capital balance. This is either covered by remortgaging it onto a repayment mortgage or by selling the property. You may be required to set up a repayment vehicle, to cover the costs.
Whilst this is mortgage type we come across the most with buy to let in Coventry (and is perhaps more tax-efficient for some), repayment mortgages are still valid options for buy to let landlords. This means your mortgage, much like a standard residential, would be interest and capital combined per month.
Even though this will likely increase your monthly mortgage payments, equity can grow quicker in your property. Furthermore, when your term ends, you will own your property outright, negating the need to pay back any large capital owed.
As discussed, a mortgage lender will want to stress-test your projected rental income, as a means to see how much you would have to earn in order for your monthly mortgage payments to be safely covered.
In terms of the amount that you are able to borrow, providing that your projected income can cover the amount you wish to borrow, you typically won’t have many limits. A mortgage lender may still want to see though that your projected rental income exceeds how much you owe per month, by a set amount.
You will need to provide your mortgage lender with a series of documents, before you are able to proceed with your buy to let mortgage process. This can include things like proof of income, deposit, your ID, address, any bonus or commission you earn and your current/most recent P60.
If you are a self employed mortgage applicant, you also typically need to provide your SA302 tax returns. Existing landlords may also be required to provide proof of rental income, which usually is found in the form of an ARLA-regulated report, as well as a mortgage statement for your other properties.
Having as much of this with you as you can, prior to starting your buy to let mortgage process, will allow you to move through your mortgage application much quicker, so we would absolutely recommend being as prepared as you can be.
Of course any mortgage will have a series of costs involved and a buy to let in Coventry is no different. There will be your deposit, you could have mortgage arrangement fees, application fees and even broker fees, plus your monthly payments, all things you may be expecting.
Further to this though, there may be additional fees such as solicitors fees, disbursement fees, stamp duty land tax, valuation fees, product fees and mortgage exit fees.
Your mortgage advisor in Coventry will be able to give you a more accurate look at the potential stamp duty rates. If you ever decide you wish to leave your buy to let mortgage in Coventry early, there may also be an early repayment charge (ERC), which are often very expensive.
Lastly, you’ll have to consider the different costs that exist beyond just a mortgage and mortgage process, such as landlords insurance, letting agent fees, income tax and then of course the standard property maintenance costs.
Over time you are likely going to have tenants that need something to be looked at or fixed. Depending on the works that will need to be carried out, as well as the contractors you are working with, this can vary from cheap to quite costly.
All of the various costs that are involved with a buy to let mortgage in Coventry will depend on both your mortgage lender and personal/financial situation. Not every cost will apply, though your mortgage advisor in Coventry will make sure you are aware of all these costs.
As a general rule, yes you will be able to remortgage a buy to let in Coventry. Common reasons we hear for landlords looking to remortgage a buy to let in Coventry, include releasing equity as a means of funding the deposit for a further property purchase.
The equity that is sitting within your buy to let in Coventry works a little differently than a standard residential property, if you happen to be on an interest only mortgage. Typically, your balance and interest would come down together, creating a much bigger gap between the balance and value.
With an interest only buy to let in Coventry, you would only see the interest come down. That means your equity depends on your deposit and if your property is now worth more than it was. Those who have an interest only mortgage may also decide they wish to pay their capital after all.
This is something that could be achieved, by remortgaging your buy to let in Coventry from an interest only mortgage onto a repayment mortgage. Whilst your mortgage payments would be higher, you would be able to pay both interest and capital together.
Though you may have limited options, you may actually be able to get a buy to let mortgage in Coventry, as a first time buyer in Coventry. With buy to let mortgages in Coventry as a first time buyer, you will most likely need to put down a bigger deposit, so you can access the amount you would like to borrow.
In addition to this, it is important to remember that you would be losing benefits that first time buyers get, such as stamp duty. This is because you will not be living there and buy to let landlords will have at least some level of stamp duty that they owe on their properties.
For some first time buyers in Coventry, you might find that being a landlord is actually a good way to create a boost to your income, prior to going on to find a property of your own with a mortgage.
Please bear in mind that when this happens, a mortgage lender will be assessing you on that second purchase with the knowledge that you already have taken out a mortgage in your name before. This could affect your affordability or lower the amount that you are able to borrow.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
There are various reasons why a landlord might choose to sell their property to you. These include and are not limited to:
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:
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.
No matter if you are a first time buyer in Coventry, looking to take that initial step onto the property ladder, thinking of moving home in Coventry, or looking to Remortgage for any potential Home Improvements, the concept of overpaying, even by a minor amount, can make a huge difference in the amount on the interest you pay back over the course of your mortgage term. The earlier you look at overpaying, the better the effects of your extra mortgage payments.
Whether or not this is done, depends on the homeowner. Some may choose not to down this route, whilst some struggle to afford these additional payments. A lot of the time though, it comes down to life getting in the way.Even still, if you can, overpaying is the ideal thing to do when you take out a mortgage. Let’s be honest though, there’s always something new and flashy we’d rather buy, as opposed to making an extra payment on the mortgage.
Part of the problem here is remembering to overpay. It’s not something that’s particularly likely to cross your mind too often. Possibly when your mortgage only has a few years left, but the impact at that point isn’t as great as it could have been if you’d done it earlier.
An easy way to make overpaying part of your routine is to set up a standing order paying your lender each month. Even better, organise it so that it goes out the same day as your mortgage payments. This way, it just feels like one amount and you will become used to this.
By using a standing order, you’re in control. Unlike a direct debit which the receiver controls, you can easily cancel a standing order if your financial situation changes. Whilst it would be a shame to stop overpaying, at least you would benefit from the overpayments made up until that point.
Overpaying your mortgage is a great habit to get into. You don’t need to pay huge amounts unless you feel you can. But you’ll be grateful toward the end when you realise you’ve been able to shave a year or two off your repayments.
If you overpay, some mortgage providers will even let you make reduced payments or take a payment holiday if you have been overpaying for a while. Before taking a payment break though, it’s important to check with your lender that you are eligible to do so as you could face a negative mark on your credit report if you’re not.
If you need any extra specialist mortgage advice in Coventry, make sure to get in touch and we will see what we can do to help!
If you are taking on the mortgage process, you may be wondering whether or not you should take out mortgage advice in Coventry. At the end of the day, it’s all down to personal preference, as well as your finances. In many cases, however, it can be beneficial to get a second opinion.
It should be the job of a mortgage broker in Coventry to save you both time and money, making your process as stress-less as they can. This is something we pride ourselves on as a company. Whether you’re buying a new home or remortgaging an existing one, a lot of the time, we are able to help.
We have been working within the mortgage industry for a long time, with over two decades of experience. This means we know a variety of mortgage situations inside and out, with knowledge on exactly where to find the best mortgage deals for you.
There are all kinds of different reasons as to why people may get in touch with an expert mortgage broker in Coventry for mortgage advice in Coventry.
We sometimes see customers getting in touch with us after they have already spoken to their banks mortgage advisors in Coventry and been declined. As such, they may find themselves in need of an expert, unbiased opinion regarding their mortgage situation.
Another area we regularly help with, is first time buyers mortgages in Coventry. We love being able to help people find their footing on the property ladder with their first ever home purchase! It can be a stressful process and we try to make it as simple as possible.
No matter the mortgage situation you are in, whether self employed and struggling to evidence income, moving home and stuck in a property chain, looking to increase your portfolio of buy to let mortgages in Coventry or even something else, a mortgage broker in Coventry is here to help.
When you get in touch with us, you reap the benefits of a free mortgage appointment with an expert mortgage advisor in Coventry. They will sit and chat with you about your plans for your property owning future and gather initial information from you, to help with your process.
It’s the job of a dedicated mortgage advisor in Coventry to help you through every single step of your mortgage process. This includes obtaining an agreement in principle for you, if you need us too, which can typically be done within 24 hours of your initial mortgage appointment.
From there it’s on to the next stage of your journey, whether that be making offers on a property you would like to buy or looking at better deals with a mortgage advisor, if you are instead looking to remortgage in Coventry on your home.
Once you have progressed through this next step of your process, your trusted mortgage advisor in Coventry will be able to compare mortgage deals for you, on your behalf. They will look at both your financial and personal situation, finding the deal that is likely to benefit you the most.
No matter what, your mortgage broker in Coventry is here to help, staying by your side throughout every leg of the journey. No question is a silly question and we will answer all of your queries and concerns as promptly and clearly as we can, to keep you at ease during your experience.
As an open & honest mortgage broker in Coventry, it is always the aim of our employees to deliver a high level of customer service. Through providing a fast and friendly service and being extremely responsive, we go the extra mile for our customers, no matter their circumstances.
When a customer gets in touch with us for mortgage advice in Coventry, we always consider every situation that is presented to us. Whilst we may not be able to help everyone, we will do everything in our power to ensure it can go in your favour.
Please feel free to take a look at our amazing customer reviews, as a way to see the levels of customer service we are able to provide. How we deliver our customer service is something that is at the heart of what we do, it motivates us everyday.
Your trusted and dedicated mortgage broker in Coventry is available 7 days a week, from morning until late, including weekends and some bank holidays, subject to appointment availability.
Do not ever hesitate to get in touch, give us a call or use our online booking form and we will see how we can help!
If you are looking at moving home in Coventry, or are new to the mortgage world as a first time buyer in Coventry, you will find that there is a large range of types of mortgages out there. You may be aware of the more popular ones and find that some are not offered by every lender.
Below is a list of the most common mortgage types that you will encounter. As well as this, you will find a YouTube video for each mortgage type. You can find these videos from our YouTube channel MoneymanTV which are there to watch under our Mortgages Explain YouTube playlist here.
A fixed rate mortgage locks in the mortgage payments making them consistent from a set period of time and results in customers’ monthly payments staying the same every month.
The amount of time you want to fix in your payments for is entirely up to you, however, the most common ones are 2,3 or 5 year fixed rates but you can have even longer ones.
Whatever changes may arise in the economy whether it be inflation or interest rates, you can rest assured that your mortgage, being a large financial expenditure, will remain the same for your fixed period.
A mortgage with an interest rate that follows the Bank of England’s base rate is known as a tracker mortgage.
To break it down, the mortgage lender that you would be with will not be choosing your interest rate, and you won’t be deciding that either.
Rather, the interest rate on your mortgage will be set at a percentage above the Bank of England base rate. For instance, if the base rate is 1% and your mortgage is tracking at 1% above the base rate, meaning you will be paying a rate of 2%.
Known as the standard type of mortgage, a repayment mortgage is when you pay back both a combination of interest and capital each month.
Considering that you continue paying your mortgage per month, for the full length of your mortgage term, you will end up paying off your mortgage balance fully by the end of your term, owning your property.
This is known to be the most risk-free option to pay back the capital on your mortgage balance. At the beginning of your mortgage term, the main thing you will be paying back is the interest, with your balance slowly decreasing, which is especially the case with a 25-30 year term.
In the last 10 years of your term, your mortgage will change slightly because you will be paying off much more capital from your balance compared to the interest, meaning your balance will decrease faster.
You may find that a lot of modern buy to let mortgages in Coventry are set up as interest-only mortgage. It is more of a challenge to get a residential interest-only mortgage.
Despite this, it is still a possibility, but it is quite difficult to come across a mortgage lender that will offer these to customers.
It’s more about the situation you are in for example if you are potentially downsizing when you are on your own, or if you have external investments you can use to pay back the capital on the mortgage.
When it comes to taking out an offset mortgage, your mortgage lender will set up a savings account for you which will go alongside your mortgage term.
An example of this is if you were to have a mortgage balance of £1000,000 and £30,000 is deposited into your savings account, you will be required to pay interest on the difference between the two amounts meaning it could be £80,000.
This is often seen as a very efficient way of managing your money, in particular, if you are paying higher rates of tax.
Managing one mortgage can come with its challenges so imagine having to juggle two.
Regardless of this, there are a large variety of reasons why an individual may look at managing another mortgage. Through our experience as a Mortgage Broker in Coventry, we find that the most common reason why someone may look at this option is that they are a landlord looking to take out another Buy to Let Mortgage in Coventry.
If you are in this situation or something similar, we have a team of Mortgage Advisors in Coventry who will work hard to achieve your goal of obtaining a second mortgage.
The process works by the lender getting an insight into your current mortgage affordability, income and expenditure so they can get a more financial picture of who you are before they potentially accept your offer for a second mortgage. Just like with your initial mortgage, they need to know that you can afford another mortgage.
Furthermore, you may need to put down a larger deposit on this mortgage, somewhere between 15-40%.
As mentioned there are plenty of reasons why people will look at taking out a second mortgage with some being more common than others. Below are a few of the more popular reasons we have come across through the years providing fast & friendly mortgage advice in Coventry.
A Buy to Let is a property that you rent out and do not live in. This is an option suitable for current or aspiring landlords.
When it comes to Buy to Lets, it’s very likely that you will need to put down a higher deposit amount. With any Buy to Let, you are required to put down an amount that is between 25-40% loan to value rate.
Buy to Let mortgage repayments and your current mortgage work the exact same. It will involve monthly bills and interest rates will apply.
In the case where you are taking out a second mortgage for a buy to let property, seeking a knowledgeable Buy to Let expert can be very helpful. Here at Coventrymoneyman, we have built close relationships with many landlords in the area for many years and have provided a helping hand with them when it comes to remortgages on their property.
Let to Buy goes through the same process as a Buy to Let. When it comes to moving home in Coventry to a property that you’re purchasing and renting out your current one. The deposits and payments will stay the same as a Buy to Let because you’re still taking out two mortgages.
As well as Buy to Let, our expert mortgage advisors in Coventry have many years in working with Let to Buys. Book your free mortgage appointment with one of our advisors to see whether you are eligible or not.
This situation is increasingly more popular, especially in recent years. We have found many parents being aware of the challenge of getting onto the property ladder and the costs of a mortgage.
Because of the ever-growing rise of inflation and property prices, first time buyers in Coventry are needing help and support to move home. In some cases, many people require a bit more than a gifted deposit.
We generally find that applicants get the help they need from grandparents and parents. This is due to the fact that it’s likely they have already paid off their mortgage and are able to afford it to help. If you do get help from a family member, they will also need to pass the lender’s affordability checks so they can afford to keep up payments for their child’s and grandchild’s mortgage.
If you are looking to take equity out of your home to raise funds, people normally use the money for home improvements, debt consolidation, pursuing a big purchase like a car or funding a wedding. Furthermore, some people look to release equity and take out another mortgage.
This circumstance is also known as a further advance. This is when you borrow more from your current lender to fund something like home improvements or a second mortgage.
You may be wondering how much can borrow, however, this all comes down to the amount of equity in your property and you will still need to show that you can afford the additional mortgage amount as well as your existing one.
We do find that removing a name from a mortgage can be a challenge to many which result in many people leaving their name on the mortgage. Your name may still be on the mortgage, there is a possibility that you can take an additional mortgage in your own name.
It’s likely you choose this option if you are going through a recent divorce or separation. Sadly, financial commitments should be at the forefront of your mind if you are in a situation like this.
If you are looking to take out a second mortgage in your sole name, you may find some difficult to get accepted. Your lender will be aware that you are a sole applicant and are still linked to another mortgage. Regardless of whether you’ve made agreements with your ex-partner that you will still contribute to their mortgage payments, they will view this as a potential liability.
This is where it can be very complex and stressful, however, speaking to a specialist mortgage advisor in Coventry could help with this. We have experienced advisors who can provide the appropriate divorce and separation mortgage advice in Coventry. If you are looking for further information regarding this, book your free mortgage appointment to speak to an advisor today.
Many homeowners make the mistake of forgetting to search for a new mortgage deal as their current term comes to an end. Instead, they unknowingly roll onto their lender’s standard variable rate (SVR), resulting in higher interest rates and increased monthly payments.
To prevent this from happening, it’s crucial to stay on top of your mortgage and be aware of when your term is ending. By planning ahead and proactively seeking a remortgage in Coventry, you can secure a better deal and avoid the SVR trap.
Don’t let your lender’s higher rate catch you off guard; take control of your financial future by consulting with a remortgage advisor in Coventry. Planning ahead is the key to saving money and ensuring that your mortgage remains affordable and manageable.
We highly recommend that every customer takes the time to “shop” around and explore various lenders before committing to one. There’s a high chance that you’ll find much better deals with lower interest rates if you look beyond your current lender.
Don’t stick with the same lender just because it seems easier; loyalty to a lender rarely comes with rewards, and they may offer better deals to new customers rather than long-term ones.
While some people prefer to handle their remortgage independently and switch online, known as an execution-only mortgage, it’s important to understand that this approach doesn’t provide the same level of consumer protection as seeking advice from a mortgage broker in Coventry.
Although it might seem easy to do it online, applicants can make mistakes that lead to selecting the wrong mortgage product. This oversight could result in a higher interest rate than they would have obtained with proper mortgage advice in Coventry.
With a wide variety of mortgage options available, some are naturally more popular than others. Understanding the different types and seeking expert advice can help you make the best decision that aligns with your financial goals and circumstances.
Don’t hesitate to consult with a professional mortgage broker in Coventry to ensure you choose the most suitable mortgage option for your needs.
Are you considering upgrading your home? Did you know that remortgaging in Coventry can be an excellent option for financing home improvements? It’s a wise investment, especially for improvements like extensions or loft conversions, as they can significantly increase your property’s value.
Even if you’ve found your “dream home” and aren’t specifically looking to boost its value, borrowing for home improvements is perfectly acceptable; many homeowners simply want to give their home a refreshing makeover.
Remortgaging in Coventry can cover both cosmetic alterations and structural work, allowing you to enhance your living space to suit your needs. For larger borrowing amounts, your lender might request estimates for the planned works.
It’s essential to note that you’re not obligated to use the contractor who provided the estimate; you have the flexibility to choose the best contractor for the job when the time comes.
If you’re considering creating a home office, remortgaging can make it an achievable and cost-effective option. With more people embracing flexible working arrangements, having a dedicated workspace within your home is becoming increasingly important.
Remortgaging can provide the funds you need to create a productive and comfortable home office environment tailored to your preferences.
Whatever your home improvement plans, consulting with a mortgage advisor in Coventry can help you navigate the remortgaging process and secure the best deal that suits your specific needs and financial circumstances.
Whether you’re looking to add value to your property or personalise your living space, remortgaging for home improvements can be a smart choice to enhance your home and quality of life.
Remortgaging in Coventry gives you the opportunity to release capital from your property for various legal purposes.
Whether you need funds for significant consumer purchases, helping family members with gifts, venturing into the buy to let market in Coventry, or consolidating your debts, remortgaging in Coventry can provide the financial flexibility you need.
It’s crucial to exercise prudence when considering a remortgage in Coventry. Taking on a new mortgage means committing to paying interest over an extended period.
Therefore, it’s essential to carefully assess your reasons for borrowing and ensure that you can comfortably manage your monthly mortgage payments throughout the entire mortgage term.
Careful planning and considering your long-term financial stability will help you make the right decision and avoid potential difficulties in the future.
A mortgage advisor in Coventry can guide you through the process, helping you understand the implications and ensuring that you make a well-informed choice that aligns with your financial goals.
Consolidating unsecured debt into your mortgage may lead to a higher overall interest rate. The reason behind this is that mortgage terms are typically much longer than those of personal loans (although there can be exceptions).
It’s essential to recognise that by converting unsecured debt into secured debt, you’re using your home as collateral. This aspect may not be suitable for everyone, as it poses the risk of potential repossession if you face difficulties in meeting your mortgage payments in the future.
Additionally, it’s crucial to be aware that if you have 0% interest credit cards, transferring those debts onto your mortgage may subject them to accruing interest as well.
Therefore, careful consideration of the implications and a thorough analysis of your financial situation are necessary before making such a decision.
Before proceeding with consolidating your debts into your mortgage, it’s highly advisable to seek guidance from a mortgage advisor in Coventry or financial expert.
They can help you assess the potential costs, risks, and benefits to ensure that you make an informed and financially sound choice that aligns with your specific circumstances and goals.
More than a million people in the UK work in the “gig economy”. These people work on short term contracts and as such are not entitled to some of the benefits permanent employees might receive. For example, they are typically not paid for sickness. Contractor mortgages and ones for those working within the gig economy can be much harder to come by as they treat you as self-employed.
If you’re a contractor, or work within the gig economy, through our experiences of the mortgage industry, we understand the challenges you might face. Therefore, we have pulled together some useful information which could help you when applying for contractor mortgages.
Obviously, you need to give yourself the best chance of having your mortgage application accepted. To do this, you need to build up a track record of employment. Lenders will tend to look for at least one year’s history unless your current contract has a very long time to run.
Depending on how a lender looks to classify your work, it can have an impact on what you’ll need to show.
If a lender decides to treat you as a sole trader, you will need to produce evidence of your net profit. That is the amount you have earned minus your expenses. Sometimes, people who are self employed in Coventry use an Accountant to help them, but make sure to explain your goals to them. Otherwise, they might try and reduce your tax liability which can make it look like you have earned less.
If you’re set up as a limited company, then most lenders will be looking at the salary you pay yourself, plus any dividends declared.
Even if you’re on a zero-hours contract, it is still possible to get a mortgage. Again, lenders will be looking at your 12-month earnings and will take an average from this.
Lenders are now starting to be more flexible in how they assess contract workers. This is most likely because more and more people are turning to this type of employment and lenders can’t afford to ignore that.
As a result, if you have been operating within the gig economy for a while and have a current contract in place with an employer, then it is possible some lenders will assess your income based on your “day rate”. This is then converted into an annual wage by multiplying by 5 (days) and by 46 (weeks). They only use 46 weeks because they are aware that a Contractor is unlikely to work 52 weeks a year.
If you are self employed in Coventry, it’s also good practice to be organised with your finances so that you have everything in place when applying to a lender.
Of course, no one likes paying more tax than they must but remember, if you are wanting to apply for a mortgage, lenders will want to see healthy levels of sustainable earnings. So, although you might end up paying more tax, higher levels of income can be beneficial to you as a mortgage applicant.
If you’re confused or worried about attaining contractor mortgages as a member of the gig economy, make sure to speak to a mortgage advisor in Coventry. If you can, building up a relationship well in advance can be beneficial as they will better understand your individual needs. As a result, the quality of their advice will be higher.