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.
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.
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.
Why Use a Mortgage Broker in Coventry?
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
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:
- Negotiating Power
- Avoiding Disappointment
- 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.
Fixed-Rate Mortgages | Mortgage Advice in Coventry
Fixed-rate Mortgage Advice in Coventry
What is a fixed-rate mortgage?
Typically, you’ll find that the highest interest rates come with long-term fixed-rate mortgages. This is why it sometimes may be best to fix your mortgage in short term.
Even though a short term fix could potentially save you money further down the line, you’ll have to frequently review and renew your mortgage because of it. When you’re remortgaging in Coventry, depending on how the economy is and what deals are available on the market, you may be able to access a good rate during every point of remortgaging.
At the point of remortgage, you may end up finding a better deal than your previous, or you could end up being on one that’s a little more expensive, you’ll never know until you start looking!
Medium & long term fixed mortgages
If you’re looking to fix your rate for longer than 2 years, you may be better at looking for products with a fixed term between 3 and 5 years.
As a mortgage broker in Coventry, we’ve found that the most popular fixed-rate products are in 5-year terms. These deals are neither too short nor too long. A 5-year term will also add the security of constant monthly payments for the foreseeable future.
There’s really only one negative to fixing into a 5-year term. Overall, your payments may work out more expensive than if you had taken out a 2-year product and then a 3-year product, but not by much.
If you wanted to take out a fixed-rate mortgage for even longer, for example, a 7 to 10-year fixed-rate product, you may need to try and approach specialist lenders as there are a limited number of these deals on the market. By choice, these deals aren’t the most popular of choices amongst home buyers and owners. This is down to the length of the term. Also, you won’t get much flexibility whilst being fixed into a mortgage with a long term; they may also come with expensive setup fees and rates.
Fees to consider
You also need also consider the additional fees that come with remortgaging. Be aware of costs such as booking and arrangement fees. Usually, a booking fee will be charged upfront, whereas an arrangement fee will be charged upon completion. You may get the option to incorporate these fees into your mortgage payments, this will not only increase your payments each month but also increase the total amount paid for the fees as their costs will increase due to the interest.
Did you know that if you have the funds in place to so do, you can pay off some of your mortgage early? If you want to remortgage now rather than waiting till the end of your term, you can pay off your fixed-term total and remortgage early.
However, if you choose to do this, it’s likely that you’ll be charged with an ERC (early repayment charge). This is because you are tied into a deal for a set period of time, so paying it off early and remortgaging will cost you. You should continue if you are okay with paying the ERC.
Your ERC total is taken from a percentage of the amount that you still owe on your mortgage, not your term. For example, if you have £200,000 left on your mortgage, you may get something like a 2% ERC which is £4,000. If a current deal is available on the market that is better than your current one, it may be more beneficial for you to take the ERC and remortgage early as the product may go.
Remortgage Advice in Coventry
As a mortgage broker in Coventry, we always advise not to chase ‘headline’ deals. You should know that more often than not, the deals with the lowest rates come with the highest arrangement and setup fees.
For further fixed-rate and remortgage advice in Coventry, please get in touch today. We have helped 1000s of customers secure competitive fixed-rate products in the past, and we want you to be next!
Contact us for a free mortgage review in Coventry.
Capital Raising Mortgage Advice in Coventry
Specialist Mortgage Advice in Coventry
If you have been looking at getting a mortgage or more specifically have been looking at your options for a Remortgage in Coventry, it’s likely you will have seen the term Capital Raising before.
You may see such a term and be wondering what that means, what exactly is Capital Raising? The answer is simple; Capital Raising is the act of raising money, in this case referred to as Capital. This is done through a few different methods and can be used for various reasons.
Capital Raising Methods
Remortgage to Release Equity
A common way for this to occur is for customers to take out a Remortgage as a means of releasing the equity in their property. Equity is the difference between what you have left to pay on your mortgage and the true value of the property.
Further Advance Mortgage
If your property happens to increase in value over the duration of your mortgage, rather than Remortgaging to Release Equity, you may find yourself looking to do this with a Further Advance. This is where you take out an additional mortgage on your property to borrow even more, as a means of once again releasing equity.
This mortgage will typically be over a longer term and have interest rates that are lower than a standard personal loan, although it will be paid back alongside your existing mortgage.
This can be a great option for those who do not wish to Remortgage, or maybe tied into their existing deal. However, there are risks, such as a higher risk of repossession if you cannot keep up the significantly larger number of monthly repayments.
Second Charge Mortgage
A Second Charge Mortgage works similar to that of a Further Advance, wherein you will be taking out an additional mortgage alongside your existing one, as a means of releasing the equity in your home for future home improvements or anything else you wish to spend your newly acquired funds on.
The difference between a Second Charge and a Further Advance is that a Second Charge will often be with another lender and on a different rate. In the unfortunate event of a repossession, your initial mortgage lender will be paid back from the property’s sale, with any remaining funds used to pay off the Second Charge.
Capital Raising Mortgage Reasons
You may find yourself needing to Capital Raise and release equity via a Remortgage, for all kinds of reasons. Popular choices for this include to fund any Home Improvements, Modifications or Alterations, such as a new home office, a possible home extension or even a loft/garage conversion, as well as to consolidate any debts that have been accrued over time.
Other options may include to gift a deposit to your children, to purchase a second home (usually an option with Buy to Let Landlords in Coventry), to fund large purchases such as a car, wedding or holiday.
Saving your Time, Saving your Money – Mortgage Broker in Coventry
If you have equity in your property and are looking to take out a capital raising mortgage, then a Remortgage in Coventry could be useful to you. Generally speaking, mortgage lenders will let you borrow up to 90% of the value of your property.
Please do Get in Touch and we will advise you of the most appropriate option for your circumstances. If remortgaging isn’t quite for you, taking out unsecured credit might be a more suitable option for you. A standard Remortgage can take roughly around 4 to 6 weeks to go through.
With Debt Consolidation there are some risks to take into account. That is why we always recommend you speak with a qualified Mortgage Advisor in Coventry, before consolidating any unsecured debts against your home.
Coventrymoneyman is an experienced Mortgage Broker in Coventry, here to help you find the best capital raising mortgage deal for both your financial and personal situation. All of our customers will benefit from a free Remortgage consultation. During this consultation we will make a full recommendation.
If you are over the age of 55, you may find yourself better suited for taking up Equity Release in Coventry.
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
Divorce & Separation Mortgage Advice in Coventry
Specialist Mortgage Advice in Coventry
No one wants a divorce, but these things happen, for better or for worse. Divorces and separations are devastating and can easily spiral out of control when legal and financial matters get involved. As these things aren’t planned, there’s a lot of things to resolve before you go your separate ways and a lot of things that could go wrong along the way. In order to keep the divorce or separation as smooth as possible, it’s always best to know what lies ahead so you can prepare accordingly.
Here at your Specialist Mortgage Broker in Coventry, we know just the kind of mortgage issues you face during a separation or divorce. This is why we have compiled this list of the most common questions that we get from customers going through a divorce or separation and just how to deal with them. Rest assured, you’re not the only one going through these problems so we have extensive knowledge on the situation and know just how to help.
- How can I remove my ex-husband/wife or partner from my mortgage?
- How can I remove my name from my ex-husband’s/wife’s or partner’s mortgage?
- Can I have two mortgages?
Removing an ex-partner’s name
Agreeing to buy a home together is a huge financial commitment and is usually intended to be lifelong. This makes getting your name removed from a mortgage a lot harder as a matter of fact; making any changes to your mortgage is always a tedious task regardless of the situation. The only exception is at the end of your mortgage term when changing the agreement is easier.
When there are children involved, the property usually remains with the mother as she needs a place to raise the young ones, however, in some cases, it’s the other way around but either way, it may come down to whoever is “in situ” to take up the responsibility of the mortgage.
Removing an ex-partner’s name from a mortgage requires you to provide solid evidence that you will be able to meet your mortgage payments on your own. Every lender will look at your salary and your disposable income and then work out whether or not it’s realistic that you’ll be able to hold the mortgage payment fort on your own.
The lenders will also take a look at your ex-partner’s affordability and check whether or not they will be able to afford a mortgage on their own after the split. A full affordability assignment is carried out for both you and your ex-partner regardless of whether you have kept up-to-date with your mortgage payments in the past or not.
Keep in mind that since the property was bought jointly with an ex-partner, your lender can pursue either of you in the event of mortgage arrears.
Removing your name
Taking your name off the mortgage is quite similar to how you remove your ex-partner’s name. Although, in this situation, you are the one that is trying to vacate the property and move on which can sometimes create some unique difficulties.
Removing your name usually creates difficulties as you will need consent off your ex-partner that you can take your name off the mortgage. There’s also the issue of your lenders having to approve of you taking your name off. They decide this after a full affordability check on your ex-partner to check whether they’ll be able to afford their mortgage payments or not.
If your ex-partner gives consent for you to take off your name from the mortgage and are also capable of making the mortgage payments on their own, you will inevitably have to start looking for a place of your own. When you eventually find a place, your lender will consider your mortgage payments from your old property into consideration. There are a number of lenders that will have strict lending criteria while others may be even stricter. This why getting a suitable lender for yourself can prove to be quite difficult. Luckily, Coventrymoneyman takes your situation into consideration squarely which is why you should approach us when going through a divorce or separation.
Getting help
In a lot of recorded cases, a third party may come in to offer a helping hand with the mortgage payments. This third party is usually a family member that may decide to help out or in other cases, there may be a new partner that is willing to step in.
This isn’t always the situation as you might want to make all of the mortgage payments by yourself. There’s no problem with this choice, but don’t be ashamed of reaching out and getting Specialist Mortgage Advice in Coventry from an expert! Our Mortgage Advisors in Coventry are experienced in this specialist field. Getting help with your finances or with removing your/ex-partner’s name off a mortgage could take a heap of the stress off your back. We want the best for you at the end of the day.
Can I have two mortgages?
This is another common question and the answer is yes, in fact, you can own multiple mortgages, however, before getting accepted for another mortgage, your lender will have to take a closer look at many different factors. When they are checking your file, they will be able to see that you are still linked to another mortgage (or have been recently).
They will examine just how much you are contributing to these mortgage payments and check whether or not you’ll be able to manage additional mortgage payments on top of them. Lenders also expertly factor in any other credit commitments that you have.
Lenders will also account the risk factor, for example, how likely is it that your home is repossessed because you couldn’t afford your mortgage payments. They won’t take any risks either.
Mortgage Broker in Coventry for advice on Divorce & Separation
If you’d rather get an affordability check before you directly approach a mortgage lender, you can approach a Mortgage Broker in Coventry like us. We will perform our own credit check and affordability measures to find out whether it’s realistic that you’ll be able to afford another mortgage.
We have Mortgage Advisors in Coventry that specialise in this field, so don’t hesitate to get in touch with us. We are more than happy to help.
Should I Get Mortgage Advice in Coventry?
If you are taking on the mortgage process, you may be wondering whether or not you should take out mortgage advice in Coventry. At the end of the day, it’s all down to personal preference, as well as your finances. In many cases, however, it can be beneficial to get a second opinion.
It should be the job of a mortgage broker in Coventry to save you both time and money, making your process as stress-less as they can. This is something we pride ourselves on as a company. Whether you’re buying a new home or remortgaging an existing one, a lot of the time, we are able to help.
We have been working within the mortgage industry for a long time, with over two decades of experience. This means we know a variety of mortgage situations inside and out, with knowledge on exactly where to find the best mortgage deals for you.
Why do people get mortgage advice in Coventry?
There are all kinds of different reasons as to why people may get in touch with an expert mortgage broker in Coventry for mortgage advice in Coventry.
We sometimes see customers getting in touch with us after they have already spoken to their banks mortgage advisors in Coventry and been declined. As such, they may find themselves in need of an expert, unbiased opinion regarding their mortgage situation.
Another area we regularly help with, is first time buyers mortgages in Coventry. We love being able to help people find their footing on the property ladder with their first ever home purchase! It can be a stressful process and we try to make it as simple as possible.
No matter the mortgage situation you are in, whether self employed and struggling to evidence income, moving home and stuck in a property chain, looking to increase your portfolio of buy to let mortgages in Coventry or even something else, a mortgage broker in Coventry is here to help.
After Your Free Mortgage Appointment
When you get in touch with us, you reap the benefits of a free mortgage appointment with an expert mortgage advisor in Coventry. They will sit and chat with you about your plans for your property owning future and gather initial information from you, to help with your process.
It’s the job of a dedicated mortgage advisor in Coventry to help you through every single step of your mortgage process. This includes obtaining an agreement in principle for you, if you need us too, which can typically be done within 24 hours of your initial mortgage appointment.
From there it’s on to the next stage of your journey, whether that be making offers on a property you would like to buy or looking at better deals with a mortgage advisor, if you are instead looking to remortgage in Coventry on your home.
Once you have progressed through this next step of your process, your trusted mortgage advisor in Coventry will be able to compare mortgage deals for you, on your behalf. They will look at both your financial and personal situation, finding the deal that is likely to benefit you the most.
No matter what, your mortgage broker in Coventry is here to help, staying by your side throughout every leg of the journey. No question is a silly question and we will answer all of your queries and concerns as promptly and clearly as we can, to keep you at ease during your experience.
Our Mortgage Advice Service in Coventry
As an open & honest mortgage broker in Coventry, it is always the aim of our employees to deliver a high level of customer service. Through providing a fast and friendly service and being extremely responsive, we go the extra mile for our customers, no matter their circumstances.
When a customer gets in touch with us for mortgage advice in Coventry, we always consider every situation that is presented to us. Whilst we may not be able to help everyone, we will do everything in our power to ensure it can go in your favour.
Please feel free to take a look at our amazing customer reviews, as a way to see the levels of customer service we are able to provide. How we deliver our customer service is something that is at the heart of what we do, it motivates us everyday.
Mortgage Advisor Availability
Your trusted and dedicated mortgage broker in Coventry is available 7 days a week, from morning until late, including weekends and some bank holidays, subject to appointment availability.
Do not ever hesitate to get in touch, give us a call or use our online booking form and we will see how we can help!
