Remortgaging When House Value Has Increased in Coventry

If you are already the owner of a property, whether it’s a family home of your own or a buy to let in your name, you will no doubt see it as an investment. It goes beyond putting a roof over your head, it will be your largest asset and you’ll either want to sell it at some point or pass it on through the generations.

The property market is always going through changes and fluctuations, with there being times that you will see property prices in Coventry soar high.

During peaks times such as these, it may be a good idea for you to take a look at your options for a remortgage in Coventry, as doing so may see you be able to access a much more favourable loan to value, which in turn can mean better rates of interest.

What is a loan to value and why do people remortgage in Coventry for a better one?

Loan to value (LTV) is the ratio of your mortgage to the value on the property market, expressed as a percentage. As an example of this, if you were to purchase a property for £100,000 with a 10% (£10,000) deposit, you will require a 90% loan to value mortgage on it.

Mortgage loan to values will be broken down into tiers and brackets. Typically speaking, the lowest bracket will be 60%, then increasing to the highest ratio of 95%. The brackets and tiers offered will vary across the different mortgage lenders.

If you are able to get a lower loan to value, you will have access to a wide range of mortgage deals with much more competitive rates of interest.

Taking the above-mentioned example and fast forwarding many years ahead, you may find that your property in Coventry has now grown in value to £110,000, with your initial £90,000 mortgage balance reducing to £80,000. This means that you will have a new loan to value of 73%.

From here, if you were able to take out a remortgage in Coventry, you would likely have access to a 75% loan to value mortgage, which should be able to offer you a more competitive rate of interest.

Of course there are other factors to bear in mind, such as the condition of the market, that impact interest rates when you look at a remortgage in Coventry.

Lower loan to value mortgages in Coventry will typically have that lower rate of interest, because it shows that you are much less of a risk to the mortgage lender.

How do I find out the value of my property in Coventry?

Of course, in order for you to be able to access the better rates or to set better terms, you also need to see if your property is worth more than you initially paid for it and if so, what is the value of it now. In order for you to be able to do this, you need to have a valuation taken out.

When you take out your remortgage in Coventry, you will be going through the process of moving onto a new mortgage, with a brand new mortgage lender. If you were to take out a product transfer in Coventry, you would be taking out a new mortgage with the same mortgage lender.

Again, referring back to the risk for a mortgage lender, because you are with a new mortgage lender, they will need to know exactly what your property is worth, before the lend to you. There are typically two types of property valuation that you will come across.

The first of these is an Automated Valuation Model (AVM), which may also be called a desktop valuation. In taking out one of those, you won’t have a physical visit to your property, with instead it being a database that will look at similar properties in the area, before it determines the value.

The alternative to having one of these taken out is a physical valuation, in which someone makes a physical visit to your property, inspecting both the inside and outside, in order for them to determine the true value of the property themselves.

This is something that will be especially useful if you have made any home improvements or extensions, that other properties in that location maybe haven’t had. This is something you are welcome to bring up with a mortgage advisor in Coventry, if you would prefer that to be taken into account.

Remortgage in Coventry to Release Equity When Home Value Has Increased

Whilst you may be able to use the equity within your home to access better mortgage deals, there may be times in which you wish to remortgage in Coventry and release that equity. This is something many homeowners do, with the most popular choice being to remortgage for home improvements.

When you take out a remortgage to release equity, you will need to be careful about what you are doing. In virtually every circumstance, you will take out a new mortgage to replace the previous mortgage (as is the case with a remortgage in Coventry), but you will be going up to a higher loan to value.

Because you have yourself a higher loan to value, you will also see your monthly mortgage payments increasing as well.

Many homeowners will be hoping that making an investment in your home and having all the different home improvements you wish to have done, your home will have gone up in value, meaning that when you next remortgage in Coventry, you’ll find yourself on a lower loan to value again.

It’s all about making market predictions and having a well-thought out plan, especially when you are handling what is no doubt your largest financial investment, in your home. A trusted mortgage advisor in Coventry will be able to best advise on the approach to take in your particular situation.

Can I remortgage in Coventry early if the value of my home has increased?

From time to time, you may actually wish to remortgage in Coventry earlier than you otherwise would. Whilst remortgaging is normally done “early”, before your fixed-term is due to end, you may be able to do this even earlier, sometimes even a year earlier.

The downside to remortgaging in Coventry early, is that you will most likely have to pay an early repayment charge (ERC), as you will be exiting a contractually agreed term with your mortgage lender, breaking your agreement with them.

It can be difficult to predict how house prices are going to be, so you never quite know what the property market is going to look like at any given time. What could seem like a good idea for you at the time, could actually not be financially viable for you.

People will only generally leave their mortgage in Coventry early, if they absolutely must, if their reason is good enough. It would always be recommended that you get the opinion of an expert mortgage broker in Coventry, before looking to do something like this.

An example of this could be the COVID-19 pandemic, where the Bank of England base rate plummeted to record lows. Because this happened, people who were set to remortgage in Coventry once their fixed-rate period ended were able to benefit from this and inherit lower interest rates.

Homeowners who perhaps had a year or so to go still likely would not have benefitted from these drops, unless they chose to remortgage in Coventry early, then fixing in for a longer period to keep it low. Mortgage lenders did pull a lot of products during this time, so it is a niche example.

Even with that in mind, it demonstrates an example of where taking out a remortgage in Coventry early, could be financially beneficial. If you have seen your home go up in value, you may also see the benefit in remortgaging in Coventry early, as doing so can see you access a lower loan to value.

This may outweigh the possible costs of an early repayment charge, though remember that this will still be a factor, unless you are doing a product transfer, in which case a mortgage lender may waive that fee. In addition to this, you may also have arrangement, valuation and solicitors fees to pay.

If you are able to showcase that what you are saving are able to outweigh the possible costs, it could be worth looking at. That said, it should only be looked at if absolutely necessary, so speak to a mortgage broker in Coventry before looking at this.

How Do Buy to Let Mortgages in Coventry Work?

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.

What is a buy to let purchase and 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.

Am I eligible for a buy to let mortgage in Coventry?

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.

Affordability

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.

Minimum Required Deposit

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.

Credit Score

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.

How do I apply for a buy to let mortgage in Coventry?

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.

What type of buy to let mortgage in Coventry could I apply for?

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.

How much can I borrow for a buy to let mortgage in Coventry?

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.

What documents are needed for a buy to let mortgage in Coventry?

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.

Are there any additional costs included with a buy to let in Coventry?

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.

Can I remortgage a buy to let in Coventry?

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.

If I am a first time buyer, can I get a buy to let mortgage in Coventry?

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.

Forces Help to Buy Scheme (FHTB) Explained

Originally brought forward in 2014, following the successful launch of the Help to Buy Equity Loan Scheme, the government introduced a scheme that by design had the purpose of reducing the low rate of forces home ownership across the country.

The Forces Help to Buy Scheme in Coventry is available to Tri-Service members, the Royal Navy, Royal Marines, Army and Royal Air Force, so long as they can meet the criteria.

Further to this, the Ministry of Defence’s Defence Accommodation Strategy also comes into play with this, aiming to make sure everyone has equal access to a good standard of accommodation.

Outlined in the MoD’s strategy, is the positive impact that homeownership can potentially have on people with inherently mobile careers, with these including partner employability, stable education for their kids and also continuity, as members of the services move out of being in active service.

Though it was supposed to end back in 2019, we have seen a few extensions for the Forces Help to Buy Scheme in Coventry, with the government eventually turning this into an enduring policy, which will allow it to remain available to all service members, both now and in the years to come.

How does the Forces Help to Buy Scheme in Coventry work?  

The way that the FHTB Scheme will work, is that service personnel have the ability to borrow up to 50% of their annual salary, which will have a cap at £25,000, free from interest. They are able to use this, either as a means to buy their first home or if they are an existing homeowner, move home.

It is currently available to all regular personnel who have completed the required length of service, are not listed as a reservist or member of the Military Provost Guard Service, have more than 6 months of time left to serve at the time of application and that meet all of the correct medical categories.

That being said, there may still be exceptions to the criteria, especially when you are factoring in special medical and personal circumstances. To learn more about this and other information regarding a Forces Help to Buy in Coventry, please take a look at the government guidance website.

Possibly one of the best aspects of FHTB, is that you are not required to have any current savings of your own before you can use it to get onto the property ladder. You have the freedom to use this towards costs such as a deposit, solicitors fees, estate agents fees and even stamp duty land tax.

The handy news regarding deposit too, is that the vast majority of mortgage lenders will accept the funds from FHTB for doing so. It tends to be a much more relaxed scheme than other home buying schemes, with the loan from Forces Help to Buy in Coventry only requiring you to pay back over a period of 10 years.

How a Mortgage Advisor in Coventry May Be Able To Help

As an open & honest mortgage broker in Coventry, that has a deep love and respect for our service members across the United Kingdom and in Coventry, we’re here to support and help you on your home buying journey in any way that we are able to do so.

From your initial point of contact, all the way through until you achieve mortgage completion and even beyond, your dedicated mortgage advisor in Coventry will work hard to make sure that you are taken care of and end up with the best result for what it is you wish to achieve.

To learn more, you are welcome to book yourself in for a free mortgage appointment and we will see how we are able to help you throughout your home buying experience.

Note; The Forces Help to Buy in Coventry is not the same as a standard UK Help to Buy in Coventry or Shared Ownership in Coventry.

If you are both a current service member and homeowner that is looking to use Forces Help to Buy in Coventry for moving home, and are aged 55+, it may be worth looking at your options for equity release or retirement interest-only mortgages (RIO Mortgages), as forces pensions may prove to be beneficial in this regard.

To understand the features and risks of equity release in Coventry and lifetime mortgages in Coventry, ask for a personalised illustration.

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

How to Remove a Person from a Mortgage in Coventry

Would you like to remove a person from a mortgage in Coventry?

As a Mortgage Broker in Coventry, we have customers who get in touch to remove a name from a mortgage due to divorce or separation. In this situation, it’s common for homeowners to remove their own name or ex’s name from the mortgage.

If you are going through a divorce or separation, financial commitments should be at the top of your list to sort out. This is something that does seem to be left until last. It’s key to sort this out earlier in the process as it can come with its challenges and be a time-consuming task to complete.

To start, you need to see if you are eligible to be on the mortgage as a sole applicant. A lender, building society or a Mortgage Broker in Coventry will need to assess this as they need to know if you will be able to manage the finances with just your income. Along with this, the person who is staying on the property will need to be able to keep up with the mortgage payments on their own.

Prior to removing a name from a mortgage, both parties must agree. If one party doesn’t agree, this could result in the case being taken to court before they can proceed. This can result in the process becoming time-consuming and costly.

Therefore, seeking specialist Mortgage Advice in Coventry can be helpful to those who are going through a divorce or separation. By doing this, you are able to speak to an expert which can be beneficial further down the line.

Need help removing a name?

In the case where you are looking to remove a name from a mortgage, seeking support and help with the process through getting specialist Mortgage Advice in Coventry can be a beneficial option.

Here at Coventrymoneyman, you can speak to a trusted Mortgage Advisor in Coventry who can provide you with a tailored service. Again, the individual that you want to remove off the mortgage will need to agree to be off the mortgage. It can be challenging if they don’t agree to be removed.

We are here 7 days a week to answer any of your mortgage questions and provide a helping hand on your mortgage journey. Contact our team today to book your free mortgage appointment.

The Costs of Buying a Home in Coventry

Moving Home Mortgage Advice in Coventry

As a Mortgage Broker in Coventry, we have had the opportunity to help many First Time Buyer in Coventry and those looking at moving home. Through this time we have found that the most common question we get asked is “How much will this all cost?”.

In this article, we have collated a list of the fees you can expect to pay to help you organise the costs accordingly when buying a new home (and when they become payable).

Estate agency fees

This cost is one for people who are looking at selling their house. These days, we have found a growing interest in online estate agencies with the price of a basic Rightmove listing being as low as £500. On the other hand, for a more tailored and local service with a dedicated sales negotiator, the fee will be roughly around 1-2% of the property price.

Valuation fees

Having a valuation carried out on your chosen property will be something your mortgage lender will want you to do. The reason for those is so they know they are lending against adequate security.

When it comes to the price of a property surveys can differ starting from nil (for a basic valuation with some lenders) up to a few hundred pounds for a more in-depth homebuyers’ report. It could be even more for a Full Building Survey.

The importance of working around the cost is that you always have an element of choice when it comes to the level of detail your survey goes into. This is likely down to the age and the type of property you are looking to buy along with any fears/concerns you have about it.

For more information about property surveys, which survey is best for you and how we can help as a Mortgage Broker in Coventry, check our article on ‘what is a property survey’.

Mortgage arrangement fees

You might find that some mortgage products offer cheaper rates, however, keep in mind that this would come with an arrangement fee which could end up outweighing the benefit. This doesn’t apply to all mortgage lenders, so you may not need to pay anything.

In some cases, you may need to pay these fees upfront or you may be able to add these onto the balance of your mortgage. Keep in mind, that it would mean further interest charges.

Our Mortgage Advisors in Coventry have access to a panel of lenders all offering a range of mortgage products. From this, they will be able to compare mortgage deals with all fees added so we can compare on a like for like basis.

Solicitor’s fees

You will need to factor in the services of a solicitor with their fees varying between firms and largely differ. As an estimate, a straightforward purchase with a local company is £600 for a low-value property.

This will involve you to provide the property address if it’s leasehold or freehold and the amount you are purchasing for it to get accurate quotations.

The key points to cover when asking for a quote are:

• Ensure the firm includes VAT
• Ensure the firm includes the cost of any “disbursements.” These are fees such as Land Registry Fees and Local Authority Search Fees
• Is your Solicitor on your mortgage lenders panel?
  

Stamp duty

Along with the costs and disbursements that come with paying your solicitor, depending on your situation, you may need to pay this tax that the solicitor collects on the completion of the property purchase. Full details can be found here:
https://www.gov.uk/stamp-duty-land-tax

Broker fees

Normally, a Mortgage Broker in Coventry will charge for their service. The amount you pay varies from company to company.

Here at Coventrymoneyman where we provide open and honest Mortgage Advice in Coventry, your dedicated advisor will explain these in more detail within our free initial mortgage appointment.

We would suggest you approach a local company like ourselves instead of a big organisation. Usually, they will charge only on completion instead of any application fees and further costs that could be incurred.

Removal fees

If you are Moving Home in Coventry, the cost of moving your furniture can differ significantly and still can be pretty costly. A cheaper alternative is to hire a van and carry out the work yourself. Finding a local man with a van could be slightly more in price than hiring your own van. On the flip side, a professional van service could cost you high hundreds, early thousands.

Mortgage Advice in Coventry

Do Gambling Transactions Look Bad on My Bank Statements?

Lenders will look out for a variety of things when it comes to assessing your bank statements. They do this in order to see what your spending behaviours are like to determine whether or not you will keep up with your mortgage payments or not. A common question we find crops up when speaking to customers is: “do gambling transactions look bad on my bank statements”.

Mortgage Questions to Consider

What has it got to do with the lender whether I gamble or not?

You might enjoy putting down an annual bet on the grand national or regularly use internet betting sites, as you can tell, there is nothing illegal about properly licensed gambling. It is known to be a popular hobby or pastime with many bookmakers advertising it on mainstream TV and radio.

If you have seen these adverts, you have probably noticed that they always urge customers to ‘please gamble responsibly’ and this is an important point you should think about when applying for a mortgage. It’s not the lender’s job to dictate your spending habits or moralise the ethical pros and cons of gambling, however, they do have a duty (underscored by mortgage regulation) to lend responsibly.

Think about it this way, if lenders need to prove to the regulators that they are making well-judged lending decisions, it’s fair for them to expect a similar approach when it comes to their personal finances. If you were lending your own money would lend it to the applicant who gambles or the one who doesn’t?

Is it still possible to get a mortgage if I’ve got gambling transactions on my recent bank statements?

As stated previously, it is not illegal to gamble. With this in mind, you will not be declined by a mortgage if you have the odd gambling transaction on your bank statements. The lender will decide whether these transactions are reasonable and responsible. They will look in detail of how frequent these transactions are, the size of the transactions in connection with the person’s income and the impact upon the account balance.

Having infrequent small gambling transactions that make little difference on a regular credit bank balance will not likely be seen as important. On the flip side, placing bets most weeks or being constantly overdrawn, the lender will view your spending behaviours as irresponsible and decline your application.

Is there anything else lenders wouldn’t want to see on my bank statements?

As you know, lenders will look at your bank statements to basically see how you manage your money and to help them determine whether they are confident in you managing payments or not.

Lender are financial institutions that either directly or as part of a wider group, usually sell current accounts, overdraft facilities credit cards and personal loans, therefore, you need to know that these factors all go towards wise financial planning. It’s good for a mortgage applicant to know how these facilities are managed. You might have an overdraft facility and occasionally use it, which is not essentially a bad thing, however, exceeding the overdraft limit regularly which is not so good. If you have excess overdraft fees or returned direct debits, these would be things lenders will look for and will show them that your account is not being managed well.

As well as this, lenders will also look for credit transactions from pay-day loan companies; “undisclosed” loan repayments (i.e. if you said on the application that you have no other loans but there is regular loan payments appearing, this could be an issue). They would also look out for any missed payments and they see how much of a typical month is spent in overdraft – i.e. you might go into credit on payday and for the rest of the month you are overdrawn, you need to wonder how you would manage with a mortgage.

What can I do to improve things?

You can be sensible and plan ahead if you can. Usually, a bank still request up to three months of your most recent bank statements. These documents will show your salary credits and all your regular bill payments. Because of this, it’s best that you avoid any of the situations above, especially if you are looking to apply for a mortgage in the near future. You could avoid gambling for short period and work on presenting your bank account in the best way.

Seeking help and support from Mortgage Broker in Coventry can be helpful because there are some lenders who may ask for fewer bank statements than others or may not request them at all. Despite this, lenders do still have the right to reserve the right to request bank statements in particular circumstances so it’s best that you be as prudent as possible when you are in the midst of any mortgage application. Remember, if you do gamble, please gamble responsibly!

Get in Touch With a Mortgage Broker in Coventry

In the circumstance where you are a First Time Buyer in Coventry who doesn’t have a lot of knowledge about mortgages, it’s you get some specialist advice from an expert Mortgage Advisor in Coventry. Throughout the process, your dedicated advisor will provide a helping hand with your application and work hard in getting you up to date so that lenders will be impressed.

A Guide to Remortgages in Coventry: Top Reasons to Consider

Going through the mortgage journey will prove to be beneficial. The process can come with its ups and downs, however, you will finish the process with one potential outcome when your term ends.

Getting a mortgage is a major financial commitment, for example, you’ll need to keep on top of your payments and know when your fixed-term is ending.  

When it comes to the length of fixed-term mortgage, this varies depending on the product you take out. Generally, mortgages will come in 2-year, 3-year or 5-year fixed terms. You may find that you take out an even longer fixed term like 7 or 10 years, however, this is down to your circumstance.

If you are coming to the end of your fixed term, it will be time for you to take out a new product because your current one has ended. This is when a remortgage occurs.

In some instances, you may be able to remortgage early, however, this could result in you having to pay a bigger fee ( early repayment charge) because you are switching early.  

What is a Remortgage?

Let’s begin with looking at what a Remortgage actually is. A Remortgage involves you taking out a new mortgage to pay off a mortgage that you already have. You may have a variety of options when taking out a Remortgage, some options being bigger than others.

When you take out another mortgage product to replace your current one, this is called a remortgage. You may know this is a product transfer, however, the big difference is that a remortgage is when you take out a product with a different lender and a product transfer involves you taking out a new product with your current lender.

This sounds pretty straightforward when you put it that way, however, it’s finding the right product that makes it challenging. There are a plethora of varying deals and rates on offer, which means you may need to do a lot of looking around so that you can find the most suitable deal for you. 

There are a number of reasons why people choose to remortgage, you might want to find a better rate, improve your home or consolidate debts or something else. 

Remortgage For Better Interest Rates

Usually, an average fixed mortgage term lasts between 2 and 5 years. Within this time, you will be paying off capital as well as interest. Therefore, 2-5 years later, you may find yourself in a lower loan-to-value bracket which allows you to access better rates.

With this in mind, this is why people choose to remortgage, as they risk falling onto their lender’s standard variable rate of interest (SVR). Tracker mortgages “follow” the Bank of England’s base rate. If interest rates fall, you’ll make lower payments to your lender.

If interest rates rise, your payments will increase. Along with this, lenders will put an additional percentage onto this base rate so you’re usually a rate between 2-4%. Tracker mortgage will work similarly to your lender’s SVR mortgages.

Remortgage For Home Improvements

You might feel that your current home could do with some improvements like a new extension or conversions. This might be an option if you decide to remortgage.  

When you start the process, you will get an estimation of the costs of the improvements. As soon as you have an estimate of how much the work would cost, you might be able to incorporate these costs into your mortgage when you take out a new product. This could make your monthly payments increase it, however, you will be able to fund that extension or loft conversion. 

This can be an easier option compared to going through the process of Moving Home in Coventry as this can be a stressful experience. Therefore, if you are looking to grow your family, want to add value to your home or just want to revamp your home, remortgage for home improvements might be the option for you.  

Remortgage for Changes to Your Term

You might find that you want to extend or shorten your whole term in order to switch to a more flexible product.  

In the event that you want to shorten your term, you will be able to pay off your mortgage a lot quicker. On the other hand, a shorter term can also result in higher repayments. If you decide to lengthen your term, this can lower your payments but does mean you will be paying off your mortgage for longer. 

You usually decide if you want to extend your term or not when it comes to remortgage time. Choosing to shorten your term may also give you the option to overpay, which can help you pay off your mortgage quicker.  

A flexible mortgage deal may sound appealing to you but, they do usually come in the form of a tracker mortgage. This type of mortgage is tracks the Bank of England’s base rate of interest, with this rate potentially fluctuating depending on the overall economic performance. Because of this, your payments may change each month. When the interest rates change, so do your payments.  

Remortgage to Release Equity

If you have owned a property for a lengthy amount of time, it’s very likely there is a lot of equity within it. Equity is the difference between what is still owed on the mortgage and the current value of the property. You might find that you can remortgage and release some of the equity to turn it into a lump sum of cash.  

This cash can be used for anything you want. This cash could go towards a deposit on another home, buy a new car or even pay for a wedding with it – it’s your choice! 

Through our experience as a Mortgage Broker in Coventry, we find that Buy to Let landlords release equity in order to put forward a deposit onto another property which then expands their portfolio. 

If you are aged 55+ and have a property valued around at least £70,000, it may be worth looking at your options for Equity Release in Coventry. Speak to an open & honest later life mortgage advisor to learn more about this.

Remortgage to Consolidate Debt

In the circumstance where you have built up some unsecured debt and are looking to incorporate this in to your mortgage, in some cases, this can be possible. We always advise you to speak with an expert Mortgage Advisor in Coventry because of the complexity that comes with debt consolidation. 

The reason this option can be challenging is that it is not only based on how much you owe and your property value, your credit rating is also factored in. You need to regard the fact that you’re trying to incorporate large sums into your mortgage which means your total mortgage amount will increase. 

Please don’t hesitate to contact us, if you are in need of a mortgage expert because you have bad credit. Here at Coventrymoneyman, we have debt consolidation experts that will be happy to help with your needs. 

Experienced Mortgage Advisors in Coventry – Get in Touch

When you are coming towards the end of your fixed mortgage term, you might want to start looking at your remortgage options. It’s best to begin looking around 6 months before your deal ends, it may be time to begin looking around for deals. Our team can help take as much stress away by helping you through the process. 

Book a free remortgage appointment online today. Within this appointment, you can speak to one of our knowledgable advisors who are here 7 days a week to provide open and honest Remortgage Advice in Coventry. Our goal is to provide help and support throughout the process and find you a suitable deal for your personal and financial circumstances. 

Buying a Property With a Partner or Friend in Coventry?

Buying a Property with Other in Coventry

Beginning the journey of finding a property and obtaining a mortgage can be daunting for many homebuyers, particularly if they are going through the process on their own.

As a Mortgage Broker in Coventry, we have spoken to a number of First Time Buyers in Coventry who have decided to buy a property with a friend or partner if they are able to.

A part of the process will involve the advisor carrying out an affordability assessment in which they will ask you about your financial situation. This will give us an idea of the maximum mortgage amount. In the case where there is two applicants, lenders will factor in both of the applicants’ income. Due to two sources of income being on the mortgage, it can increase your chance of getting a mortgage offer.

In the event that you were to default, your co-borrower could also be responsible for the full mortgage, and vice versa.

Below is a list of helpful tips we advise you consider when moving into a property with a friend or partner.

How many people can jointly own a property?

This all goes down to which lender you are with, however, you will usually be able to co-borrow with up to four people jointly.

As much as having more people involved can work well with getting accepted, it’s best to keep in mind that this does increase your chance of someone pulling out before the term ends. Therefore, you need to be mindful of the people are choosing to buy a property with.

There is the option to increase your mortgage later if you want to, however, all parties need to agree to this. Keeping this in mind, it’s best to plan ahead for your future and your plans for the property.

Joint tenancy or tenancy in common – what’s the difference?

Joint tenancy is an option that is more popular with civil partnerships or married couples. In the eyes of the law, joint tenants are two halves of one whole, one borrower. Therefore, in a tragic event where one half of the party passes away, the property would automatically be given to the other half.

In the circumstance, where you are looking to remortgage or sell the property, both of you would have agreed prior to proceeding with the mortgage.

A ‘Tenancy in Common’ can be an option if you and your co-borrower are friends or family. This means that you both own your part of the property.

You don’t need to split your shares equally either. Therefore, if you find that one of you is on a higher income, for example, one of you will own more of the property than the other.

One benefit of being a ‘Tenant in Common’ is that you can have the freedom to act independently so it’s your choice if you want to sell or give away your share.

Joint mortgage & removing names

What happens if you jointly own a mortgage, but your co-borrower(s) stop meeting the mortgage payments?

A mortgage lender will stress that all borrowers are jointly and severally liable. Due to this, you will be responsible to keep up the payments if one person decides not to pay their part of the mortgage.

How do I remove my ex-husband/wife from my mortgage?

If you are looking to buy a home with your other, you never really expect that you’re going to split up before the term ends. It is a big financial commitment to make, let alone with someone else, and can be a difficult process if you want to make changes.

This can be even more challenging if children are involved because it is likely that one parent will stay with them whilst you are the one who will move out and possibly find your own mortgage. Regardless of whether you are staying or going, both parties will need the help of a Mortgage Advisor in Coventry.

Even if the person has been paying the mortgage with the input of their ex or not, this doesn’t change the fact that it was applied for in a joint name. This means that in the event of arrears, they will still chase both parties.

Prior to removing your ex-partner from a mortgage, the lender will need to be sure that you will be able to maintain mortgage payments by reassessing your income before they proceed.

It can be common for people to apply jointly for the second time with a friend, family member or new partner if they are will struggle to afford a mortgage on their own. In this circumstance, it can be beneficial to obtain Mortgage Advice in Coventry.

How do I remove my name from my ex-partner’s mortgage?

As mentioned, in the circumstance where you may end up divorcing or separating from your partner while on a mortgage, you are both still responsible for the property and its mortgage payments.

Firstly, you would need to get in touch with your lender if you were the one who wanted your name removed from your mortgage. You can’t just make an agreement between the two of you.

In the situation where you are looking to get a mortgage of your own, the lender would take into consideration the property you are currently tied to. Therefore, it’s important to make sure that you are removed from the previous mortgage.

Circumstances like these will require you to look at getting Mortgage Advice in Coventry.

You will find that some lenders will be more generous than other when it comes to how much they will be willing to lend you. This is something your allocated Mortgage Advisor in Coventry will factor this in when recommending the best mortgage lender for you to approach.

First Time Buyer Mortgage Advice in Coventry

Do I Have To Use My Estate Agent’s In-House Mortgage Advisor in Coventry?

Whether you are a First Time Buyer in Coventry who are viewing properties on the market you may have come across estate agents who are keen for you to use their in-branch Mortgage Advisors and recommended conveyancers. We tend to receive a lot of feedback as to what sales tactics can be used. Examples of this are:

Stories about in-house Mortgage Advisors

We’ve heard of cases where the agent has tried to insinuate that you could lose the property if you go with someone else. That is not the case. Some estate agents might even state that the seller would prefer you to arrange an in-house mortgage, but this is unlikely to be true either. The seller only cares that you are in a financial position to proceed.

Why do they push their in-house Mortgage Advisor?

Obviously, the estate agents earn extra commission from you when you use their additional services. So, there is an incentive for them to try and persuade you. If you don’t like being sold to, here are some of the tactics to look out for:

• A financial incentive for you if you use both their in-house mortgage and conveyancing services.
• The estate agent saying they are not putting your offer forward to the vendor if you have not taken in-house Mortgage Advice. This is an illegal practice!
• Quoting extortionate solicitor’s fees for a straightforward purchase.
  

There are several other ways you can arrange a mortgage without using the in-house mortgage advisor at your estate agent. In this article, we will try and help you decide who to use for your mortgage and how to make sure you are receiving value for money.

Do it yourself online

Some people are confident using price comparison websites to get an idea of the rates available. And this is totally understandable from a cost-saving point-of-view. However, please remember that it’s important to take advice at some point in the process. This is because buying a house is a very big deal, especially as a First Time Buyer in Coventry, and it’s important you get it right.

Here are some things to look out for if you want to have a go at applying online:

• The rates advertised are ‘best buy’ rates – you might not qualify for this rate or meet the lender’s specific lending criteria
• Some websites only display deals where they have a commercial arrangement with those lenders. Deals from other lenders not visible may be more suitable for you.
• It can be expensive if you get this wrong. Check what fees are payable and when. If your application is declined can you get your money back?
• You will solely be responsible for progressing your application. If you apply without taking advice, you will not benefit from any consumer protection such as FOS.
  

Go to your own bank

You could arrange a mortgage directly with your bank. Lots of people used to do this but not so much anymore. People’s trust in the advice they receive from banks is much less than it used to be.

What do you need to be aware of?

• Banks can only offer you their own products.
• If your application is declined Banks can be reluctant to tell you why.
• Appointments, especially ones out-of-hours, can be difficult to arrange.
  
  

Find your own Mortgage Broker in Coventry

Some buyers are reluctant to hand over their financial details to an Estate Agent. They are worried that the vendor might find out what financial position they are in.

If you use a Mortgage Broker in Coventry not connected to the estate agent, you can seek an agreement in principle. You can then provide this document to the estate agent to prove you are in a position to proceed. The agent will then most likely ask that you evidence your deposit too, along with ID.

A good Mortgage Broker in Coventry will guide you through the full process of buying a home and give you open and honest advice. Here at Coventrymoneyman, we can access 1000s of deals from across the market and aren’t tied to any particular lenders. Therefore, we can get the best deal most suited to you and your personal circumstances.

If you decide to find your own Mortgage Broker in Coventry, make sure to take up any offer of a free mortgage consultation. Taking the time to find an advisor you like and trust can have immeasurable benefits in the long run.

Mortgage Advice in Coventry

The Reasons People Move House

Moving Home Mortgage Advice in Coventry

Moving home can often be quite stressful for homeowners, as well as a process that takes a lot of time and money. It can beg the question of why so many people actually choose to do it?

From having little space to grow in, to wanting new scenery to look at, this article will look at some of the main reasons why some people instead look at moving home in Coventry.

Bigger Living Space

We regularly find that our customers, especially those who are first time buyers in Coventry, will typically choose to live in a smaller property at first. Plans may change down the line though, leaving the homeowner in need of a bigger space to live in.

To give an example of this, you may decide in the future that you want to start a new family, something which may be difficult in your current smaller sized property. This isn’t always the case though, as some just simply want a bigger home to live in.

Although moving home in Coventry is a viable option here, it’s worth noting that some homeowners instead choose to raise capital by remortgaging to fund some necessary home improvements, perhaps an extension on the property, a loft conversion or a home office. 

Remortgaging to fund home improvements is a very popular option these days, especially with growing families and could help to provide the desired extra space, whilst allowing you to keep the home you’ve built over time.

People may also take on these sorts of projects in order to raise the property’s value, just in case they ever decide to sell the property and want to make a nice profit from the sale.

Change of Scenery

Another one that we also regularly hear about in these situations, is that the homeowners had grown tired of the same sights and very much needed a change of scenery, choosing to seek out a possible new location altogether to live in.

This is again quite a common occurrence with a section of borrowers who are maybe first time buyers, as they may have been limited with where they could live due to budget and were stuck with a lower-end property until they could afford something better.

Chances are that these borrowers will have a much higher income than they did when they first applied for a mortgage and now they want to live in a much better area in a potentially bigger property that is more to their liking.

Family & Friends

We also quite often hear from customers that one of the main reasons they were looking to move home, was so that they could be closer to their family and friends, who they maybe previously lived further away from. This is even more common with people who want to start a family.

If both parents are in regular employment, this would mean that they will probably need to enquire about childcare services. Unfortunately, many Private nurseries nowadays cost quite a lot of money, which results in a lot of parents reaching out to family for support.

Speak to a Mortgage Advisor in Coventry

If you are considering the prospect of moving home in Coventry, you will need to make sure that you are aware of all the costs involved with this sort of process.

Book a free mortgage appointment to speak with a mortgage advisor in Coventry. They will sit and work out what your maximum borrowing capacity might be, as well as an estimated cost of your monthly repayments.

If moving home doesn’t sound right and instead you would like to remortgage, get in touch today and book a free review with an expert remortgage advisor in Coventry.