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Why Use a Mortgage Broker in Coventry?

Why Use A Mortgage Broker UK? | MoneymanTV

We Aim to Take Your Stress Away

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

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

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

When Should I Get Mortgage Advice in Coventry?

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

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

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

Free From Estate Agents, Banks or Building Societies

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

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

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

Building Customer Relationships

We love to build up customer relationships and assist with future mortgage enquiries, whether as a Buy-to-Let landlord 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. 

What is a mortgage agreement in principle and how can it help with my mortgage?

Agreement in Principle Mortgage Advice in Coventry

What is an Agreement in Principle?

First things first; What is a mortgage agreement in principle?

If you are a first time buyer in Coventry, you may not aware of what a mortgage agreement in principle is. A mortgage agreement in principle (sometimes shortened to AIP or DIP – decision in principle) is a document that demonstrates the lender believes, so far, you are a good candidate for a mortgage and are ready to go.

This shows both the estate agent and the person selling their home, that you are creditworthy as you have passed the lenders initial credit score. It’s important to remember though that this is not a guaranteed mortgage, as going for a full application will require even more in-depth background checks.

However, it is a good idea to get one done at the earliest opportunity for the following reasons:

  1. Negotiating Power
  2. Avoiding Disappointment
  3. Knowing Your Limits

Negotiating Power with a Mortgage Agreement in Principle

When you are at the point where you would like to make an offer on a new home, you’ll find that the majority of estate agents will undertake due diligence and ask you to provide them with proof that you do in fact have the means to proceed with the property purchase.

Your proof will usually come in the form of bank statements, but can also be done using an agreement in principle. This is something that we can provide for you, usually within 24 hours of your initial appointment.

Once you have provided them with all this documentation, the estate agent will generally cease marketing the property and put a “sold” or “sale agreed” board up outside of it.

If you already have a mortgage agreed prior to making an offer on a property, this will definitely appeal to the seller, as this proves you are not making an offer on the fly and have actually put a lot of thought into how you’re going to fund the purchase.

This might persuade a seller to accept an offers you make that could possibly be under their asking price.

Avoid Disappointment with a Mortgage Agreement in Principle

When it comes to purchasing a new or additional home, some customers like to try and run before they can even walk. They charge ahead all guns blazing, making an offer on a property without actually making sure they can proceed in the first place.

If the application then goes ahead and fails, this can result in disappointment that could’ve been avoided. The last thing you want to be doing is having your heart set on a new family home and then feeling down when it doesn’t work out the way you had hoped.

This can all be prevented by getting in touch with us at an earlier stage. Sometimes there are factors that may cause an application to fail, that given time and care with the help of a mortgage broker in Coventry, can be solved over time.

An example of this is, let’s say you have a disputed mobile phone bill that keeps cropping up. This is something that can be sorted with the appropriate action. Some think they’re on the voters roll when they are not. Give it a few weeks and that can be sorted too.

In some cases you might not be able to get a mortgage at all. If that does happen to be the case, it’s better that you are made aware of that now rather than mess people about. One of our dedicated mortgage advisors will be able to tell you what you need to do to improve your credit-worthiness for the future.

Knowing Your Limits with a Mortgage Agreement in Principle

Let’s say in theory, you know that you have got a good credit rating and have never been turned down for credit, you’re registered on the voters’ roll and you’ve always keep up your monthly credit payments. What could possibly go wrong?

Well the truth is, you could approach 10 different lenders these days and get 10 different results from each of them! They all have their own lending criteria and calculate affordability in their own unique ways.

If you are Self Employed in Coventry it can be complicated further, as some lenders may take your net profit, whilst others are known to use your salary and divided. In some cases, you’ll find that lenders may even use your latest year, whilst others prefer an average over 3 years.

Expert Mortgage Advice in Coventry

Being mindful of your borrowing limits is important as this will help you determine what your ideal price range will be. Ou dedicated mortgage advice team will be able to advise you of the maximum mortgage available to you. Also, more importantly, together we’ll work out how much you can afford to pay back on a monthly basis.

A Guide to Remortgages in Coventry: Top Reasons to Consider

The mortgage journey is one that can be quite rewarding in the long run. Though you will face your fair share of both positives and negatives throughout your process, in the end you will end up with one of the following: either the property of your dreams to call home and maybe start a family, a stepping stone property to help you find your place on the property ladder or an investment property to provide you with an income boost.

No matter which mortgage path you went down, eventually you will find yourself reaching the end of your mortgage term and in need of a different path to venture down. You may find yourself with the option to sell up and upsize/downsize into a new property.

You may possibly even be in the market for selling your portfolio to the tenant(s) or another buyer and look at other fortuitous financial experiences. The most popular option we hear though, over everything else, is a Remortgage.

What is a Remortgage?

First of all, let’s look at the definition of what a Remortgage is. A Remortgage is the process of using the funding from a new mortgage to pay off a mortgage that already exists. There are various options you may have when taking out a Remortgage, ranging from small ones to slightly bigger ones.

By utilising the 20 years or so knowledge of Coventrymoneyman’s resident “Moneyman” Malcolm Davidson (host of our YouTube channel MoneymanTV), we thought it would be of great use to everyone, if we put together a handy guide to all the options at your disposal when it comes to starting the Remortgage process.

Remortgage For Better Interest Rates

The mortgage deal you initially start with will normally last somewhere within the realm of 2-5 years, featuring lower fixed rates or possibly discounted rates. In some cases, your lender may even put you on something like a tracker mortgage, a mortgage type which follows the Bank of England’s base rate.

When reach the end part of your mortgage term, you will likely be placed on the lenders Standard Variable Rate (you may see this simply called SVR). The purpose of an SVR, is that this mortgages interest rate can possibly increase or decrease, depending on what the lender determines correct to charge you.

This type of mortgage does not follow the Bank of England’s base rate like a tracker mortgage would do, and as such can be a little more of a risk, as the lender is not legally obligated to charge the amount that might typically be recommended.

Because of this, Standard Variable Rates, generally speaking, are more expensive paths to take, leaving many to look at their options of Remortgaging for better rates. This would hopefully save the homeowner a little bit of money on their monthly repayments.

Remortgage For Home Improvements

Once you’ve gotten through the majority of your initial term, you may feel like something isn’t quite right, like something needs to change. It could be that you need some space for an extra room or larger living space for your kids or belongings.

We also see people doing this for a new kitchen, a new office, or even a loft conversion (which seem to be quite popular these days). Instead of just moving into a newer, much larger house, many seek to release the equity in their home with a Remortgage, in order to cover the costs of any potential improvements, alterations or modifications.

Though the idea of obtaining planning permission from a local authority, and both funding and managing your own project seems a scary task, some would argue it’s a lot less stressful and more rewarding than the process that simply house hunting, selling your home and moving out.

As time passes by, this may prove even more to be a smart investment choice, as creating more space and having good quality craftsmanship will likely increase how much your home is worth. This is very useful for if you ever do decide to sell up or rent your home out to someone else.

Remortgage for Changes to Your Term

In some cases, some homeowners may wish to Remortgage in Coventry in order to find themselves a better mortgage term, whether that be by reducing the length of the term in question or by switching to a product that is more flexible.

Doing this will mean you will be paying back your mortgage over a shorter amount of time, so you won’t be tied down for a large portion of your life. However, this route will also mean that your monthly repayments will be higher than they otherwise would’ve been. The general rule of thumb is that the longer your term, the lower the payments will be over time.

A lot of homeowners choose for their mortgage term to be a little more flexible when they take out a remortgage. It’s the benefits provided by this option that tend to sway homeowners more in its favour. Through this, you may gain the ability to overpay your mortgage.

This means you have the ability to pay your mortgage off quicker, as well as being able to carry the same mortgage and rates over to another property of your choosing, just in case you ever decide to find a new property at any point in the future.

Though a flexible mortgage sounds like it would be ideal for you, they will usually come in the form of a tracker mortgage. As discussed earlier on, these mortgage types follow the Bank of England base rate. This means your payments could fluctuate based on interest, potentially making them a little unreliable when your monthly payments come around.

Equity Release

Every homeowner has some amount of equity in their home. How much exactly, depends on factors. It can be worked out by calculating the difference between what is still owed on the mortgage and the current amount your property is valued at.

As mentioned slightly earlier in this article, equity can be used for home improvements, though that’s not all you’re limited to when it comes to using your equity. Some use their released equity to cover long-term care costs, to supplement their income, to have a holiday, to pay off an interest-only mortgage or to simply have extra money to spend freely and treat themselves.

In the occasional case, we find that Buy-to-Let landlords will use Equity Release as a means of covering their deposit for additional property portfolio purchases.

Remortgage to Consolidate Debt

Another big one that works in conjunction with Equity Release, is releasing funds to pay off any unsecured debts that may have built up over time.

Though it may seem like a fairly straightforward task, Debt Consolidation not only bases the amount on how much you’re owed and the value of the property, but it also factors in where your credit rating is currently at.

This could mean that whilst you may be able to use some money to cover these costs, you’re limited from the offset in terms of how much they’ll even let you borrow.

In addition to this, to pay off your previous mortgage and your debts, you will need to borrow more than the mortgage amount that is remaining on your balance. This will almost certainly mean that your monthly repayments will be higher than they were previously. Though not an ideal situation to find yourself in, you can at least rest assured that should you find yourself in need of a back-up plan, you do have some mortgage options to choose from.

If you happen to have a damaged credit rating, you may also still have a chance to obtain a mortgage, though this process will not be easy and requires very Specialist Remortgage Advice in Coventry before you can even proceed. Even with a professional by your side, there is still no guarantee that this will even be something you can do.

We recommend that you always seek mortgage advice before choosing to consolidate and secure any debts against your home.

Experienced Mortgage Advisors in Coventry – Get in Touch

If you are reaching the end of your term and are looking at your home owning and remortgage options may be, please do Get in Touch with an experienced and trusted mortgage broker in Coventry today and we’ll see how we could help.

An dedicated mortgage advisor in Coventry will be able to discuss your circumstances and future plans, in order to create the best path to take on the next leg of your mortgage journey. It is our aim as a mortgage broker to ensure this time around is a quicker and easier process than when you took out your mortgage the first time.

Should I Get Mortgage Advice in Coventry?

Mortgage Broker in Coventry

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

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

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

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

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

After your free mortgage consultation…

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

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

Our mortgage advice service in Coventry

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

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

Availability

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

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

Agreement in Principle & Soft Credit Searches

Credit Search Mortgage Advice in Coventry

These days, people pay much closer attention to what their credit rating is. Consumer awareness of credit scoring is much higher than it used to be and we can confidently say that at least half of people who contact us for the first time have already looked at their credit report online.

There are many different credit reference agencies out there. The majority of people looking to use these services will have heard of Experian or Equifax, but we recommend potential new clients to use Check My File for a 30-day free trial. After your trial ends, it will be £14.99 a month and can be cancelled at any time. This report “sweeps” several of those reference agencies and brings together the information into an easily understandable colour-coded report.

Often when customers get in touch, we receive questions about if we will be doing a credit search on them. This is because they are aware that too many searches can have negative effect on their credit score. Lenders always run credit checks but we always seek a client’s permission before proceeding with one. There are 2 different types of credit searches that banks can run on a customer: hard credit searches or soft credit searches.

What is a Soft Credit Search for Mortgage Applications | MoneymanTV

Credit searches

What is a hard credit search?

A hard credit search is a detailed analysis of your credit report. Any financial institution carrying out one of these needs to be granted your permission to do so. Because the lender is looking into your situation quite closely with a hard search, if you pass the credit score then it’s fairly likely that your application will also be successful. This of course, is a big advantage.

The only thing that can really go wrong from that point going forward, is if for some reason you cannot provide satisfactory documentation to backup the information you have given them or it turns out you have provided false details.

The part that really stings about a hard search though is that it leaves a “footprint” on your credit file. This means that anyone who looks at your report in the future can see you have had a search carried out. This isn’t a bad thing immediately, but if you have several footprints registered in a short period of time then it could look like you applying for lots of credit at once.

The footprint left behind does not state whether your application was successful or not, though lenders’ systems could wrongly assume you are being declined on a regular basis. In their minds they would think “Why else would you go to lender number 2 unless lender number 1 had said no?”.

Leaving a hard footprint on your record every now and again is no big deal so there’s no need to worry too much about this, just be careful not to have too many within a short space of time.

What is a soft credit search?

A soft credit search is a much simpler approach towards analysing your financial situation. Soft searches are usually carried out on price comparison websites to give you an indication of what products might be available to you, or if someone wants to verify your identity.

Some mortgage lenders do soft searches in the first instance, with more lenders switching to this type of search. Whilst the financial institution doing a soft search obtains less information about you than if they had done a hard search, being granted an agreement in principle from one of these lenders is still a strong sign that your full application will be accepted.

The benefit of soft searches is that whilst you will be able to see that someone has carried out a soft search on you if you check your credit file, these searches are not visible to other Financial institutions like banks.

This means that you can apply for an agreement in principle for a mortgage with it being very unlikely that this would damage your credit score, no matter if it’s successful or fails.

What is a mortgage agreement in principle

If you are looking to make an offer on a property, we always recommend that you have your mortgage agreement in principle in place prior to contacting the estate agent.

You want to give yourselves the best possible chance of securing the property you want at the lowest price so if you can present yourselves as having your finances in place then you are definitely putting yourself in a better position going forward.

Having the agreement in principle also sometimes puts the agent off trying to “cross-sell” their own in-house mortgage services to you.

Specialist Mortgage Advice in Coventry by Coventrymoneyman.

Mortgage Advisor in Coventry

How to Improve Your Credit Score in Coventry

Credit Score Mortgage Advice in Coventry

Way to improve your credit score | moneymanTV

In simple terms, the higher your credit score is, the higher the chance you have of your mortgage application being accepted. But how exactly do you improve your credit score?

It’s worth remembering that no one is guaranteed to be accepted for a mortgage. This is because each lender has developed their own credit scoring system over the years, meaning you need to showcase a variety of different things to different providers. With this in mind, don’t worry too much if you fail with one lender as there are other mortgage lenders who may be more forgiving with their criteria.

It is the job of your dedicated Mortgage Advisor to match you to the right lender. The hope is always to get this done first time, though this can vary between the case and sometimes it requires a little more work than expected. Both you and your Mortgage Advisor in Coventry want the same thing which is for you to end up with the most appropriate and favourable deal for what you’re looking to do.

There are various different credit reference agencies in the UK, including Experian and Equifax. It would be a smart plan for you to check as many of these agencies as possible to get a better idea of your credit score. Also, there could be a chance that one of the agencies may be holding incorrect data. Checking with several agencies will help you identify anything that is wrong and allow them to be rectified.

There are some good practices listed below regarding things you can work on to improve your credit rating.

Improving your credit score in Coventry

Avoid unnecessary credit searches

Having too many credit searches can have an negative effect on your score. This is because it shows lenders that you’re looking to borrow more money from other places, something they’re not fond of seeing.

Be especially careful when using price comparison websites, because they are major culprits of performing discreet credit searches on people. If you know you want to apply for a mortgage soon, it would be smart to avoid applying for any further credit until your mortgage is underway.

Check you are on the voter’s roll

Being on the electoral roll adds a lot of points onto your score as it is a sign of stability, something the lender likes to see. Please make sure that your name is spelt correctly and that it’s your current address you are registered at, not a previous address. If you are not registered, doing so online is very easy.

Don’t run close to your maximum limit

If you max out your limit on a credit card each month, that will reduce your credit score. Using a credit card and paying off the balance in full each month will indicate to a lender that you are good at managing money, which works in your favour. Remember though, that maxing out your limit or even worse, exceeding an agreed card limit, does not look good to a lender at all.

Check your address history is keyed correctly

Sometimes your credit score can make it seem like you’re living in two places at once. This happens if you have forgotten to tell one of your credit providers that you have moved to a new house. Make sure that all addresses are spelt correctly. If you have lived in a flat this can be tricky as the flat/apartment number can be formatted in a variety of ways.

Close down any unused credit accounts

Owning too many credit cards can also have a negative affect your score. If there are any cards you don’t use, contact the providers and get the account closed. In the short term, this can be a downside, as the credit scorers can’t tell if you closed the account or the credit provider. It’s one step back for two steps forward however, and this has benefits in the long run.

This is also a good practice as it reduces your chance of falling victim to fraud as you might not be aware that you have lost a card you don’t use often.

Remove financial links to others

If you have a family member or ex-partner connected to you, their credit actions could also have an affect on your credit score, especially if they’re bad at handling their money.

Unfortunately, you won’t be able to get the financial association removed if the account is still live. To remove one of these links you need to make a request with one of the credit reference agencies. It may be worth receiving Specialist Mortgage Advice in Coventry from a Mortgage Broker as removing a family member or an ex-partner could be a difficult task without someone available to help you through it.

Credit score

Many consumers feel credit scoring is an unfair way for lenders to assess applications. Lenders see it differently than this, as it is much cheaper for them to operate this way and computers give more consistent outcomes. Either way, this is the most common approach within the industry, so utilising these tips should help put you on the path to improving your credit score.

If you’re looking to increase your chances of your mortgage application being accepted the first time, then send an up to date copy of your credit report to your Mortgage Advisor in Coventry in advance. The more your advisor knows about your finances the better it is for you and the easier the process may be. Also, there are still some smaller lenders out there that do not use credit scores, instead opting to do it the old-fashioned, manual way, though they will still have certain rules about the number of defaults and CCJs they will allow.

Mortgage Advice in Coventry

Mortgage Payment Holidays | Mortgage Advice in Coventry

Mortgage payment holidays

At the start of the Coronavirus pandemic, the Government gave us the promise that all borrowers would be granted a three-month mortgage payment holiday if deemed necessary. Most lenders followed the Government’s guidelines and did everything in their power to help their borrowers during these hard few months.

We have thought carefully about the likely possibilities for your mortgage over the next few months and are working very closely with all of our lenders to ensure that if any changes occur, we are able to inform you right away and recommend the most ideal option for you to take so that you still feel safe and happy with your mortgage.

We feel like now is a good time to talk about mortgage payment holidays as everyone is asking about them and how they work.

What is a mortgage payment holiday?

A mortgage payment holiday is simply a period where you don’t have to pay your monthly mortgage payments. This is agreed between you as the borrower and your mortgage lender, bank or building society. In this current situation, it should be about three months.

You will still have to make all of these payments. The interest that you defer over the set period will be added on top of your loan amount whilst your capital balance will not decrease. So both your total mortgage amount and the interest on it will increase.

When you feel that you are ready to continue with your mortgage payments, either your monthly payments are recalculated at a slightly higher level or your mortgage term is extended. Lenders tend to prefer in recalculating your repayment as extending your mortgage term could put you past their standard retirement ages.

Some lenders may allow you to pay off a lump sum later on in the year to let you get back to what you were paying monthly before the mortgage payment holiday. Mortgage payment holidays are accessible for borrowers with both residential and Buy to Let mortgages in Coventry. This really helps out landlords as they have some assistance if rental payments are affected.

The Government’s proposal

Here is what the Government has said after the COVID-19 outbreak:

  • Mortgage lenders will offer an automatic three-month mortgage payments holiday for borrowers who have been impacted directly or indirectly by COVID-19
  • The mortgage payment holiday will apply to customers who are up to date on their payments, not in arrears, and wanting to self-certify that they are impacted by COVID-19
  • This means that lenders will not complete an income and expenditure assessment, or an assessment of alternate payment options as ordinarily required under MCOB
  • This proposal will allow lenders to be more responsive to customer needs and offer forbearance in a simple way to customers in an environment where the operation of collections teams made be also impacted by COVID-19
  • Customers will be made aware that interest will accrue in the holiday period and they will need to make up deferred payments in the future
  • Customers who wish to undertake a full assessment of their ability to pay or financial difficulty may still do so.

How do I apply for a mortgage payment holiday?

Before you go directly to your lender, we recommend that you talk to your Mortgage Advisor in Coventry first. This is because they can look through everything for you and talk you through the options available for you that will benefit you most financially. As a Mortgage Broker in Coventry, we know all about mortgage payment holidays and the dos and don’ts, so get in touch and receive a free mortgage consultation before anything else.

If you want to go directly to your lender and you are up to date with your mortgage payments, not in arrears and have been directly affected by COVID-19, here are the steps you should take:

  • The customer would contact the lender and inform them that they are being impacted
    by COVID-19
  • The lender would accept these details from the customer and offer an automatic
    three-month mortgage payment holiday
  • No evidence is needed for the lender
  • The lender makes the customer aware that interest will accrue and will be contacted at the end of the three months to complete an assessment of the customer’s circumstances
  • At the end of three months, an arrangement to pay will be agreed with the customer according to their circumstances to recover any shortfall, also ensuring that the mortgage remains affordable and sustainable
  • The lender notifies the customer that if they wished to complete a full assessment now, there may be other forbearance options more suitable to the customer.

    For more information on how COVID-19 may affect your mortgage, click here.

Will a mortgage payment holiday impact my credit score?

Yes, it can produce a negative impact on your credit score, but it shouldn’t in this situation. You are applying for a mortgage payment holiday because of a virus so your lender should make sure that it will not do any damage.

Before rushing into this, you will need confirmation that it will not damage your score. To do this, you need to contact your lender directly and ask this question, making a record of the date and time and the name of the person that you spoke to. This way, if anything changes in the future, you have a reference to what was originally said.

Will I still be able to remortgage or take a product transfer with my lender?

The answer to this question has changed over the last couple of days. Even when the virus wasn’t seen as a threat, you could still remortgage and transfer products as usual. Now, everything has changed and lenders are no longer offering any remortgage deals and product transfers. Things have changed so quickly!

This means that borrowers who are coming up to the end of their existing product could be forced to move onto the higher lender variable rates as there are no other lower deals available. So people who act too early could find themselves on a mortgage payment holiday that accrues a high-interest variable rate.

This is why we recommend speaking to us, your expert Mortgage Broker in Coventry. We are here to provide you with open and honest Mortgage Advice in Coventry through these next few tough months for you and your mortgage. In general, it helps if you can arrange your mortgage transfer first then enquire about your mortgage payment holiday.

What are my other options?

There are other options available for you to take to help you meet your monthly mortgage payments over these next few months. Your lender may be generous and offer you a temporary switch over to an interest-only to help you save some money on your monthly payments. This will not add any further to the loan amount by still servicing the interest each month.

On the other hand, you may not need to switch all of your mortgages to interest-only and it may be that putting your mortgage on this basis could give you that extra bit of breathing space that you need.

If you have savings, remortgaging onto an offset basis is another option. You could end up reducing your monthly payments whilst keeping your savings untouched.

An example would be that if someone had a £200,000 loan and savings account with £50,000 in, they would only pay interest on £150,000. This option could massively reduce your monthly mortgage payments.

Other options include a straight remortgage to another lender, working out costs of any repayment charges or simply extending the term of your mortgage. It’s completely up to you and you should choose whatever you think suits you better. This is where a Mortgage Broker in Coventry will come in handy, as they will talk you through all of your options and help you make a choice. They want the best for you and want to make sure that you feel comfortable and secure at all times during these tough few months.

Get in touch with a Mortgage Advisor in Coventry and discuss all of your mortgage options regarding mortgage payment holidays. We love mortgages and we love helping you! Get through these few hard months of mortgage payments with help from your Mortgage Broker in Coventry, Coventrymoneyman.

Mortgage Broker in Coventry

Coronavirus & the Mortgage Market | Mortgage Advice in Coventry

Coronavirus impact on the mortgage market

As you probably guessed, the coronavirus has hit the mortgage market hard. Everything is changing so quickly and sometimes it’s hard to tell what’s actually going on. That’s why we thought that it would be best to calm things down and catch you up with the latest news on the coronavirus and its impact on the mortgage market. Here is a short video from Malcolm, the moneyman himself:

Coronavirus and the Mortgage Market | MoneymanTV

Mortgage Surveyors

Before a lender accepts a mortgage application, the property that their borrower is looking to buy will need a valuation. However, since surveyors and mortgage valuers can’t go and visit the property, lenders have put a pause on processing applications.

Some lenders rely on AVM’s (Automated Valuation Model) for valuations on properties. This means that lenders don’t have to rely on a surveyor or a mortgage valuer to physically go out and do everything in person. The problem with AVM’s is that they can only be used on restricted mortgages and on lower loan-to-values.

Recently, we have seen that lenders have decided to restrict their maximum loan-to-value down to 60%. This means that they are continuing to process these applications but not necessarily ones at higher loan-to-values.

A lender’s view

We have seen that every lender is taking a different viewpoint. All that matters is that we haven’t seen any lenders withdraw a single mortgage offer yet. We estimate that they are just waiting it out and seeing what happens. A change could happen in the coming days, weeks or even months, it’s really hard to say at this point in time.

Furthermore, lenders have decided to extend the periods of their initial mortgage offers from six months up to nine. They are giving the economy and the mortgage market the opportunity to get back on track.

Mortgage payment holidays

We talked about mortgage payment holidays last week in a recent article but we feel like we need to clarify a few things. Firstly, they are not free money, you should only take a payment holiday if you absolutely need to. You should get in touch with your Mortgage Advisor in Coventry who will go through all of your options and check whether you actually need to take one out before you go to your lender.

Lenders are more than likely to just extend the term of your mortgage anyway so it may be best to just hold off for a bit. If you are certain that you will not meet your monthly payments and you want to take a mortgage holiday, then you should get in touch with your lender as soon as possible. Lenders are asking for their borrowers to get in touch through their website rather than them phone up and this is due to the thousands of calls they are receiving every day. You are more likely to get through online too.

Make sure that you check with your lender that taking out a mortgage payment holiday will not damage your credit score or mark any arrears against your account. You must remember to not cancel your direct debit and that you will need to get permission from your lender to take out a mortgage payment holiday.

Speak to a Mortgage Advisor in Coventry

We know that everything is getting a little too much and becoming very stressful. That’s why your Mortgage Broker in Coventry, Coventrymoneyman is here to help. We want this to all blow over and for the mortgage market to resume as much as you do.

We can’t change anything though, so we got to get through this together. Your Specialist Mortgage Advisor in Coventry is available to answer all of your mortgage questions from 8am- 10pm, 7 days a week. We can check whether you need to take out a mortgage payment holiday or give you advice on anything mortgage that you are concerned about. We hope that we hear from you soon!

This article was originally published on 30/03/2020 and as of the 20/05/2020 the property market has now resumed and this information has become outdated. Everything was 100% accurate at the date that this article was published.

Mortgage Broker in Coventry

Can I Have 2 Mortgages?

Specialist Mortgage Advice in Coventry

Most people don’t even think about the idea of having two mortgages and people always ask “why would you need two?” The idea of having one mortgage stresses people out, never mind two!

Surprisingly, having more than one mortgage is a lot more common than you think, here are some of the reasons why someone may want a second mortgage:

  1.  Do you want a second mortgage to raise money for your existing home?
  2. Are you looking to rent out your existing home and purchase a new one?
  3. Are you looking to help your children out with a second mortgage?
  4. Do you require a second mortgage to purchase a Buy to Let property?
  5. Is your name on an existing mortgage and you are looking to buy a new property?

Second mortgage to raise money

Sometimes, people who have built up equity in their home may start looking for a second mortgage and this is because they want to release some of their equity to fund another purchase or something else.

Quite often at this time if you are currently on a lenders standard variable rate, we are able to shop around and find a more competitive deal at the same time as releasing capital. A further advance with your current Lender is also an option.

Second mortgage to rent out existing home to purchase a new one

People sometimes move out with the desire to keep their existing home and mortgage. They may want to do this so that they can rent it out. Your second mortgage will now be your new residential one. This type of move is known as a Let to Buy.

Can I have 2 Mortgages in Coventry?

Second mortgage to purchase a home for your children

First Time Buyers usually struggle with taking that first step onto the property ladder. Usually, Parents and Grandparents see this and offer a helping hand to give them that little boost that they need. For example, they sometimes may move out and offer their existing home to them or start a second mortgage for them (kind of like a gifted deposit)

A second mortgage for a Buy to Let

Current or budding landlords may be interested in a second mortgage for a Buy to Let. This is one of the most common reasons we see for people wanting a second mortgage.

We have been helping Buy to Let landlords for over 20 years now and know exactly how to help you secure amazing Buy to Let mortgage deal. We want to help you next, get in touch for a free Buy to Let mortgage consultation.

Named on an existing mortgage and want to buy a new home?

Are you currently named on another mortgage and would like to purchase a new property to live in?  This is a situation that we come across on a regular basis especially due to divorce or separation and can often help.

Whatever your situation is to get a second mortgage, being an experienced Mortgage Broker in Coventry and having various unique lenders on panel, we are able to search 1000’s of mortgage deals on your behalf and recommend the most suitable product for you based on your individual situation.

Get in touch with a Mortgage Advisor in Coventry today and receive a free mortgage consultation. We can’t wait to hear from you!

Mortgage Broker in Coventry

How Could The Coronavirus Affect Your Mortgage In Coventry?

Coronavirus and your mortgage in Coventry

Before reading any further, stop panicking! We are here to help if you need any help with anything mortgage-related through this stressful time. Just know that we are still 100% committed to providing you with the exact same fast & friendly mortgage advice service that you are used to.

We are here to provide you with the help and guidance you need to get you through your mortgage problems during his tough time. Here are some things that we are going to go over in this article:

  • Mortgage Advice in Coventry over the phone
  • Progressing with your mortgage application
  • The Bank of England rate reduction and how this affects you
  • Concerns about not being able to pay for your existing mortgage
  • The mortgage industries reaction to the coronavirus
  • Should you pull out of your purchase?
  • What to do if your Remortgage is due

Mortgage Advice in Coventry over the phone

Our mortgage advice service is exactly the same. Nothing has changed from our advisors’ end either, everything is still done over the phone. Our excellent service will remain as it was prior to the coronavirus outbreak.

Remember, if you get in touch, you will receive a free, no-obligation Mortgage Consultation. A Mortgage Advisor in Coventry is available from 8am – 10pm, 7 days a week.

Processing your mortgage application

Again, nothing has changed our team of hardworking advisors are working at the same pace as they always do, aiming to deliver you with fast and friendly Mortgage Advice in Coventry as usual.

Bank of England rate reduction

When the Bank of England dropped its rates, lenders decided to also decrease their standard variable rates. If you are thinking of buying your first home in Coventry then this is a prime opportunity to get the ball rolling. The interest rates are down to the lowest that we have seen in a long time!

Concerned about your existing mortgage?

If you get the coronavirus, you will have to take sick leave, potentially affecting you meeting your recurring payments. Surprisingly, mortgage lenders can be very understanding in hard times like these and could agree on a mortgage repayment holiday to help you out.

Meeting your payments being Self Employed in Coventry could be quite challenging, you can always give us a call and we can talk you through your options.

Mortgage industry reaction to coronavirus

The interest rates have dropped, lenders are not looking likely to raise them back up; there has never been a better time to contact your expert Mortgage Broker in Coventry. If you are a First Time Buyer in Coventry, Self Employed or Moving Home, you should capitalise on these rates as there hasn’t been an opportunity like this in a long time.

Should I pull out of my purchase?

At the moment, we are advising that everyone sticks with their purchase if they are 100% sure that they will be able to afford it. On the other hand, if you are having doubts that you will or you are concerned about losing your job, you may need to consider pulling out of your payment. You are not committed to completing your purchase until the contracts are exchanged so you have time to think about your options or speak to a Mortgage Advisor in Coventry first.

My remortgage is due – should I switch lender or stay with my current one?

At the moment, nothing has changed. Speak with your Mortgage Broker in Coventry and we will advise you on what to do once we have assessed your requirements.

Nothing has changed on our end. We still recommend that you speak with your Mortgage Advisor in Coventry who will advise you accordingly once they have assessed your requirements. We are able to do this for you, get in touch with your Mortgage Broker in Coventry today, we can’t wait to hear from you!

Mortgage Broker in Coventry

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

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