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

We tend to find that the majority of high street mortgages are portable. That said, you will have the capability to move it from one property to another without incurring any penalty.

What advantages are there to porting a mortgage?

Portable mortgages are beneficial if you are looking to move into a new home and are currently involved in a contract with a fixed rate. It may lead you to potentially avoid any early repayment charges that could have occurred.

Are all mortgages portable?

While many mortgages available to customers are indeed portable. It doesn’t apply to all mortgages. For example, some specialist lenders will not allow this to happen. By getting in touch and speaking to your mortgage lender for a quick discussion can give you some confirmation on this.

Should I port my mortgage?

Even though it will be there as an option more often than not, in many cases, homeowners may choose not to. Possibly the lender isn’t willing to lend them the necessary additional funds needed to move home.

It’s important to know that the additional funds will be at a different rate to the rate that your current mortgage deal is currently on. 

Depending on what your lender offers you, it may even be more beneficial to take on those early repayment charges rather than staying where you are.

What is a Sub Account?

A sub-account on your mortgage gets created at the point where you decide to port your mortgage, with the additional funds placed onto a different deal than the one you have on your current mortgage.

In any case, although you have a single mortgage and a single direct debit in your name, different interest rates will apply to each.

Further down the line, having sub-accounts can be known to cause a bit of trouble. The reason for this is because different products will eventually overlap one another. 

Managing to get them aligned once again could mean that one of the sub-accounts has to fall onto the lender’s standard variable rate for a particular amount of time. For more information, don’t hesitate to contact us to speak with a mortgage advisor in Coventry, and we’ll see how we can help you.

No matter if you’re moving house in Coventry, working with a buy to let mortgage or require help with a self employed mortgage. You can book yourself a free appointment around a time/date that suits you to discuss your options with a mortgage advisor further.

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.

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

They say that homeowners rank moving home as one of the most stressful and daunting experiences to come across. But it doesn’t have to be this way!

Once we’ve assessed your situation, our job is to handle all the legwork of the process. For instance, with advice from a mortgage broker in Coventry, your mortgage journey can be made stress-free. We can utilise our extensive panel of lenders to make sure you come out with the most suitable deal.

Suppose you’re thinking about moving house in Covnetry, taking up property viewings or are ready to make an offer on the house. If you want trustworthy mortgage advice in Coventry, please feel free to get in touch with us. We can help you get your mortgage process started.

How we can help you through your moving home journey?

Taking care of the ‘stressful’ parts of the process

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

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

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

Fast and friendly process

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

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

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

Happy to answer all questions

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

Speak when it suits you

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

Mortgage Advice in Coventry

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

We offer a free mortgage consultation to new/existing customers, no matter their mortgage situation. Please feel free to get in touch with us. We can help you get your mortgage process started.

The Importance of Changing Your Address

Credit Score Mortgage Advice in Coventry

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

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

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

What information needs correcting?

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

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

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

Check before you apply

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

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

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

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

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

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

Impress the lender

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

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

Mortgage advice in Coventry

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

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

Buying a Property with Cash – Better than a Mortgage?

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

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

Why should I buy with cash if I can?

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

Reliability

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

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

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

Easy and fast process

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

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

You don’t owe anthing

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

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

Why should I get a mortgage and save my cash?

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

Cheaper in the short term

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

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

Something wrong with house

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

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

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

A mortgage advisor in Coventry by your side

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

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

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

Get in touch today for a free consultation in Coventry.

5 Top Tips on How to Sell Your House in Coventry

Moving home mortgage advice in Coventry

Preparing your home for viewers is essential. After all, the more buyers you can draw in, the greater your chances of selling the property reasonably.

If you’re ready to put your property on the market, you may have reason to want to sell it fast—such as a new job that starts soon in a different area. Whatever your intentions for selling, here are five ways that could help sell a house quickly.

How to sell a house in Coventry: our top tips

1. Realistic asking prices

There’s always a rough number when choosing what price you would like to put your property on the market. Getting the ideal balance between what you want and what a buyer is willing to pay is what you need to try and achieve.

If you need a second option, you can get your property surveyed. Your estate agent will recommend the highest possible sale price. It’s down to you whether you take their advice or not. 

As a mortgage broker in Coventry, we would recommend using sites like Rightmove and Zoopla. Sellers can use these sites to compare houses that are similar to yours or on the same street. 

Once you feel what others are charging, you may better understand how much to charge. You’ll know you made the right choice if you’ll start receiving property viewings.

2. Perception of your home

Think about how your house looks from another person perspective can be challenging, but we recommend that you try it. Ask yourself this do you view your place in the same way that everyone else does? What is the first thing potential buyers will see when they walk up to your home? 

3. Cleaning the house, inside and out

Before you invite people into your home, the first thing that they will see is the front garden along with the exterior of the property. It may be a good idea to make your front garden presentable and tidy to welcome house viewers into the property—some suggestions to choose to spruce up the garden include replanting or adding flowers alongside to using a pressure washer for cleaning the driveway.

When it comes to selling your home, cleaning the inside is a priority. You need to look after the house and have everything kept in shape in your time living there and ensuring that every room is thoroughly clean.

We also recommend that you remove any obstructions that will get in the way. During a house viewing, the last thing you walk during a house viewing is for your guests to be stepping over clutter left on the floor and squeezing through doorways.

4. Ensuring the viewer feels comfortable

Every guest should feel relaxed and welcomed as soon as they enter your home. You want them to get the feeling that this is the right property for them. 

It can be difficult for it not to happen; however, having pets or children around during a house viewing could discourage buyers.

On the other hand, a great way to send out a message that this is a ‘family home’ would be to have children around and pictures up on the wall of your family. Believe it or not, having family pictures up around your home can make the viewer feel welcome and comfortable. This can lead to helping a person view the property as a family home.

Sometimes, it can also be an excellent idea to let your guests view the property themselves. You could let them have a wander around on their own if it’s appropriate. In some cases, we’ve also seen people leave the house or go for a walk so that your guests can have time to explore the place without it being too crowded.

Here are some other simple ways to make your guests feel more comfortable:

  • Make sure that your home is well-lit. Make sure that curtains and blinds are open to allow sunlight into rooms. You can also make sure that darker rooms have their lights turned on.
  • Spraying rooms with air fresheners could make your guest feel more welcome. People associate air freshener with clean houses; doing this in every room will make your guest aware that you take care of your home from top to bottom!
  • Sometimes it can be nice to have empty shelves and plain walls so that the viewer can resonate with their potential future home. They may already be thinking of decorations in their head once they see this.
  • Last but not least, as a mortgage broker in Coventry, we always recommend that you give them as much time as they need. Some may want more than an hour; some may want less. To allow time for you guest, make sure that you don’t rush them and let them know that they can take as much time as they want.

5. Making your back garden presentable

The back garden is usually the last stop of the house viewing. Therefore you want to make it as presentable as you can.

This means replanting flowers, tidying hedges and trees, running the lawnmower over the grass, painting your fences, etc. Anything that makes your garden look relaxing and welcoming could positively boost their overall opinion of your house.

We also advise that you don’t just put clutter and rubbish inside your garage because it’s likely that your house viewers could ask to see inside of it to see what sort of space there is in it. The last thing that they’ll want to see is a garage full of random things that you’ve tried to hide away.

Summary

In summary, make your home feel welcoming, make the person viewing the house comfortable and try to think, “what would I think if I were in their shoes?”. A potential buyer may become a guaranteed buyer if they are pleased with your home!

Minor damages and repairs may need to be carried out on the property. However, we do advise that you get this arranged before putting the house on the market. If you’re moving home in Coventry, you’ll know what to look for in a new home, so apply it yours too.

For moving home advice, speak to a moving home mortgage advisor in Coventry today. Get in touch for a free moving home consultation today.

Why People Aren’t Overpaying Mortgages?

No matter if you are a First Time Buyer in Coventry, looking to take that initial step onto the property ladder, thinking of moving home in Coventry, or looking to Remortgage for any potential Home Improvements, the concept of overpaying, even by a minor amount, can make a huge difference in the amount on the interest you pay back over the course of your mortgage term. The earlier you look at overpaying, the better the effects of your extra mortgage payments.

Overpaying mortgages

Whether or not this is done, depends on the homeowner. Some may choose not to down this route, whilst some struggle to afford these additional payments. A lot of the time though, it comes down to life getting in the way.Even still, if you can, overpaying is the ideal thing to do when you take out a mortgage. Let’s be honest though, there’s always something new and flashy we’d rather buy, as opposed to making an extra payment on the mortgage.

Part of the problem here is remembering to overpay. It’s not something that’s particularly likely to cross your mind too often. Possibly when your mortgage only has a few years left, but the impact at that point isn’t as great as it could have been if you’d done it earlier.

So, if you would like to overpay what should you do?

An easy way to make overpaying part of your routine is to set up a standing order paying your lender each month. Even better, organise it so that it goes out the same day as your mortgage payments. This way, it just feels like one amount and you will become used to this.

By using a standing order, you’re in control. Unlike a direct debit which the receiver controls, you can easily cancel a standing order if your financial situation changes. Whilst it would be a shame to stop overpaying, at least you would benefit from the overpayments made up until that point.

Overpaying your mortgage is a great habit to get into. You don’t need to pay huge amounts unless you feel you can. But you’ll be grateful toward the end when you realise you’ve been able to shave a year or two off your repayments.

If you overpay, some mortgage providers will even let you make reduced payments or take a payment holiday if you have been overpaying for a while. Before taking a payment break though, it’s important to check with your lender that you are eligible to do so as you could face a negative mark on your credit report if you’re not.

If you need any extra Specialist Mortgage Advice in Coventry, make sure to get in touch and we will see what we can do to help!

Mortgage Advice in Coventry

What is a 95% Mortgage?

A 95% mortgage is as simple as the name would suggest; you are borrowing against 95% of the price of a property, and then you are covering the remaining 5% with your deposit. An example of this is if you looked at buying a property that was worth £150,000 with a 95% mortgage, you would be putting down £7,500 as your deposit and borrow the remaining £142,500 from the lender. 

95% Mortgage Advice in Coventry

Off the back of the March 2021 Budget, Boris Johnson announced a Mortgage Guarantee Scheme for mortgage lenders, making 95% mortgages more readily available from the bigger high street banks.   

This is fantastic news for First-Time Buyers and Home Movers alike, as this scheme will continue running until December 2022. Certain terms and conditions will apply though, which is something your Mortgage Advisor in Coventry will be able to look at, to see if you qualify.    

All our customers who opt to Get in Touch will receive a free, no-obligation mortgage consultation where one of our dedicated mortgage advisors will be able to make a recommendation on the best possible route for you to take.

Can I get a 95% mortgage?

95% mortgages are usually accessible by both First-Time Buyers in Coventry & those who are Moving Home in Coventry. Whilst saving for a 5% deposit sounds like a pretty straightforward concept, you’ll still need to have an acceptable credit score and prove that you are able to afford your monthly mortgage repayments, in order to access a 95% mortgage.

Improving your credit score

A good credit score is essential in the process of obtaining any mortgage, especially a 95% mortgage. Things like paying any current credit commitments on time, ensuring your addresses are updated and checking that you’re on the voters roll, can all help with your credit score.

Affordability 

Affordability is another one that is important to take note of. By giving the lender details of your income and monthly outgoings (things like your bank statements will be necessary for this) and any pre-existing credit commitments, your lender will be able to get a general overview of whether or not you are able to afford this type of mortgage.

Can my family help me get a 95% mortgage?

Nowadays we see lots of family members helping each other get onto the property ladder, especially parents looking to further their children’s lives. The way this usually happens is by gifting the person looking to find their home, the deposit required. Known through the industry as the “Bank of Mum & Dad, Gifted Deposits are only intended to be a gift, and not as a loan. The lender will need proof that this has been agreed, before it can be used towards your mortgage. 

How do I choose the right 95% mortgage?

When looking for a 95% mortgage, you want to make sure you have the right type of mortgage. Each mortgage type works differently, with that choice allowing you to find one that is most appropriate for your personal and financial situation. 

Some homeowners and home buyers prefer Fixed Rate or Tracker Mortgages, mortgage types which mean you either keep interest rates at a set amount for the term given or have your interest rates tracking the Bank of England base rates.

Alternatively, you might find that Interest-Only or a Repayment Mortgages are more your style. Interest-Only allows cheaper payments until you need to pay a lump sum at the end (mostly now used for Buy-to-Lets), whereas a Repayment mortgage (a normal mortgage if you’d like) means you’ll be paying interest and capital combined per month.

How can a bigger deposit help with my mortgage? 

Seeing as a mortgage is such a large financial outgoing, you need to be prepared and need to be aware. You might find things like higher interest rates, remortgaging difficulties due to less equity and then negative equity all cropping up if you’re not. 

There is no need to worry though, as all these can be avoided if you’re savvy enough with your process to begin with. The more deposit you put down for a property, the less risk the lender will see you as. 

A larger deposit, of say 10-15%, would not only reduce the rates of interest by a noticeable amount, but would also give the property more equity and reduce the risk of negative equity, thanks in part to you borrowing less against the property. 

So, whilst the risks may seem intimidating, planning ahead and saving for a bigger deposit to access something like a 90% or even an 85% mortgage will be a massive help in your mortgage journey and something you’ll be able to reap the rewards from in the future. 

Buying V Renting Mortgage Advice in Coventry

First Time Buyer Mortgage Advice in Coventry

Times are changing, more and more people are renting, instead of buying a home. However, many people still see renting as a waste of money. If you have parents that are homeowners and you are still young, they might encourage you to buy a house rather than renting it.

But which option is better? Why do some people choose to rent but some people choose to buy? In this article, we will dive into the pros and cons of buying a home vs renting…

Renting vs Buying in Coventry | MoneymanTV

Buying a house in Coventry

Buying a home is always a stressful process, not only financially but also because of other problems that might occur in the future. There are a lot of decisions to make when buying a house.

There are lots of pros and cons to buying a house, however, it’s really down to your personal and financial situation to whether or not you are suited for buying.

You have to keep in mind that this is an investment, this is a home that you will be living in for years. So, the most important thing is to find the most suitable one for you and that should be your motivation. That is why buying can be a tough call; is a property purchase a part of your long terms plans?

Security

It is no secret that owning a home takes out the surprise of your landlord wanting the property back (which they can do at any time whilst renting). If you own a house and can manage to keep up with your mortgage payments, no one can force you to leave the house. However, if you are a tenant, even though the landlord has to give you some kind of notice, if your landlord wants the house back from you, there is not much you can do.  

As a tenant, if your landlord wants the home back, you have to leave. It can be very unfortunate if you have children in a local school or your work is nearby. It can also be bad for your family as a whole. That is why it’s always great to have the security of your own house.

Tied into a deal

Throughout time, the value of a house will always rise but you never know if a house market crash is around the corner, and it might be annoying to buy a house only to watch its value drop.

The worse thing that could happen is that you break up with your partner, or you have to stop working due to an illness or something else and have to sell the house and lose the money that you have put into it. That is why you always have to think about the future before rushing into something and investing.

Renting in Coventry

Generally, mortgages are cheaper than renting. Plus rent payments may change over time with interest rates going up and down, and it’s unlikely for them to decrease. On the other hand, if you haven’t got a fixed-rate mortgage, it may be just like renting, your mortgage payments could change. Before you know it, you are in the same boat.

Usually, rent goes up every year, and it is highly unlikely for your landlord to lower it. Even in the middle of the pandemic, most of the landlords refused to lower it.

Flexibility

One of the main pros of renting is flexibility. For example, if you get a job offer that requires you to move or you want to Move Home in Coventry, you have to think twice as a homeowner. However, as a tenant, giving notice to your landlord is more than enough. Of course, as a homeowner, you can sell your home and buy a new one, but this is time-consuming and very expensive. And you have to make the decision whether it would be best to keep the house and rent it out or sell it. This is another dilemma that won’t cross your mind if you were renting.

All in all, if you believe that there are other places that you might want to live in the future, buying a house might not be the best option for you. Always think of buying a house as a long-term commitment.

Repairs

Repairs are another positive if you are renting because if you are a tenant, your landlord is responsible for every major and sometimes minor repair. However, some landlords may take a lot of time to get around to these repairs, it’s annoying but they’ll sometimes do it on purpose. All you can do is keep trying to get a hold of them. Some may be good and responsive, it’s just down to luck. Some minor repairs may be up to you, but generally speaking, your landlord has to handle it.

When you are a homeowner, everything is up to you. Including the insurance of the property which will be a condition of any mortgage you take out.

Moving Home Mortgage Advice in Coventry

Even though many people say owning a home is easy, it is not for everyone. There are many things you have to consider before actually making an investment like this. There is no harm in renting for a while if you made the decision to move in with your partner or have an unstable job that might require you to move somewhere else in the future.

Even though it’s more common for people to buy a house rather than renting, no matter what decision you make, you will have to pay your monthly payments. You just have to be aware of your current financial position at the point of application.

For further expert First Time Buyer Mortgage Advice in Coventry, make sure to get in touch and we can recommend you whether it may be better to rent or buy based on your financial circumstances.

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.
UK Moneyman Limited registered in England, registered number 6789312 and registered office 10 Consort Court, Hull, HU9 1PU.

© 2021 Coventrymoneyman

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