Remortgaging in Coventry can be a fantastic way to save money on your mortgage payments or access funds that are currently locked up in your home through an equity release remortgage in Coventry.
Many homeowners in Coventry typically begin their remortgage process about 3-6 months before their current mortgage deal is set to expire. Some homeowners, however, are uncertain whether they can remortgage during a fixed term, before it is due to end.
A fixed term mortgage is a type of mortgage where the interest rate remains fixed for a set period, usually between two and five years. During this time, you are legally obligated to maintain your mortgage payments.
In this article, we will take a look at whether remortgaging during a fixed term is viable for you and whether it is something you should consider doing.
In Coventry, it is typical for homeowners to consider a remortgage on their property about 3-6 months prior to their current deal expiring.
This allows enough time for a dedicated mortgage broker in Coventry to carry out their work and ensures that you have a smooth transition, as your new deal will be ready to begin when your old one ends.
By doing this, you can avoid possibly lapsing onto your mortgage lender’s standard variable rate of interest (SVR), which is usually at a much higher rate of interest than the Bank of England base rate and is subject to change solely at the discretion of the mortgage lender.
These deals are generally more costly, and it is unlikely that they will be your best option.
Instead, your mortgage advisor in Coventry will utilise this time before your current deal ends to search for suitable deals that meet your mortgage needs, such as if you are considering a remortgage in Coventry for home improvements.
Remortgaging in Coventry before the general 3-6 months prior to the end of your fixed term is considered early remortgaging.
Although technically possible, you should bear in mind that your mortgage lender may present you with early repayment charges, as you are breaking the contract you signed at the start of your deal.
The answer to this question depends on your specific goals. Our recommendation is always to seek remortgage advice in Coventry before making any decisions.
Typically, people don’t consider remortgaging in Coventry unless they have a very good reason to do so. Therefore, it’s important to make sure that you have a good reason for taking this step.
Some popular reasons for remortgaging include finding a better deal, protecting against possible interest rate hikes, and changes to inflation. Ultimately, you must determine whether remortgaging is financially beneficial to you in the long run.
Keep in mind that early repayment charges can be quite expensive, so it’s important to weigh the potential benefits and drawbacks of remortgaging.
Once more, it is advisable to stay clear of early remortgaging, as it may come with quite a costly early repayment charge. The costs can be particularly high if you are looking to do this very early on in your fixed term.
On the other hand, if it makes sense for you financially and the savings outweigh the charges, then it may be worth considering. We strongly advise that you speak with a trusted mortgage broker in Coventry, in order to make sure that it is definitely right for you.
Although a remortgage in Coventry typically involves taking out a new mortgage with a different lender, it’s important to note that you may also have the option to take out a new mortgage with your current lender, which is known as a Product Transfer.
The truth of the matter is, a Product Transfer is often just as, if not more popular than a remortgage in Coventry.
Your mortgage lender may even inform you when your current deal is set to expire, similar to how a mortgage advisor in Coventry would. While it’s still possible to initiate an early Product Transfer, you should keep in mind that there may be early repayment charges involved.
That being said, however, choosing to stay with your current mortgage lender may result in fewer fees, as you won’t have to pay the legal costs that come with switching to a new lender through a remortgage in Coventry.
When you decide to remortgage in Coventry, you should expect to be paying various fees, similar to any mortgage.
If you choose to remortgage early in Coventry, you may have to pay an early repayment charge in addition to the regular fees.
An early repayment charge is typically required when you want to leave your mortgage before the end of the contracted period, especially during the fixed term. The earlier you leave, the higher the charge is likely to be.
This charge is given to you, because you agreed to repay your credit over a specific period when you signed the contract with your mortgage lender. While remortgaging early in Coventry can benefit you financially, it also breaks your contract, resulting in a charge.
Most mortgage types will have exit fees, which are typically required to be paid once you have fully paid off your mortgage. These fees may apply at the end of your full mortgage term or if you choose to remortgage in Coventry and switch to a new deal.
Valuation fees are typically associated with remortgaging in Coventry. If you opt for a Product Transfer, your current mortgage lender is already aware of your property’s value, so this may not apply.
On the other hand, if you switch to a new mortgage lender, they may want to assess the property’s worth before granting you a mortgage.
Some mortgage lenders might offer this valuation service at no additional cost, while others may charge a fee. Your mortgage advisor in Coventry will be able to provide you with more information on this during your free mortgage appointment.
Product fees, also known as arrangement fees, are typically linked to specific mortgage deals. You may have the option to include these fees in your mortgage balance and pay them off in installments, or you could choose to pay them upfront.
Your mortgage advisor in Coventry can help you understand the specifics of these fees during your mortgage appointment.
In most cases, you will need to show your commitment to a mortgage deal for at least 6 months before you can consider remortgaging in Coventry. Attempting to do so earlier may result in higher fees.
It’s important to reach out to your mortgage lender to inquire about the fees involved in remortgaging early, and to seek mortgage advice in Coventry of a qualified mortgage advisor in Coventry.
A free remortgage review can help you make an informed decision on whether to proceed with your plans or wait for your fixed-rate mortgage to come to an end.
During the review, our remortgage advice team will discuss the reasons for your desire to remortgage early in Coventry, and suggest the best course of action based on your individual circumstances.
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.
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.
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.
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.
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.
As a Mortgage Broker in Coventry, we have customers who get in touch to remove a name from a mortgage due to divorce or separation. In this situation, it’s common for homeowners to remove their own name or ex’s name from the mortgage.
If you are going through a divorce or separation, financial commitments should be at the top of your list to sort out. This is something that does seem to be left until last. It’s key to sort this out earlier in the process as it can come with its challenges and be a time-consuming task to complete.
To start, you need to see if you are eligible to be on the mortgage as a sole applicant. A lender, building society or a Mortgage Broker in Coventry will need to assess this as they need to know if you will be able to manage the finances with just your income. Along with this, the person who is staying on the property will need to be able to keep up with the mortgage payments on their own.
Prior to removing a name from a mortgage, both parties must agree. If one party doesn’t agree, this could result in the case being taken to court before they can proceed. This can result in the process becoming time-consuming and costly.
Therefore, seeking specialist mortgage advice in Coventry can be helpful to those who are going through a divorce or separation. By doing this, you are able to speak to an expert which can be beneficial further down the line.
In the case where you are looking to remove a name from a mortgage, seeking support and help with the process through getting specialist Mortgage Advice in Coventry can be a beneficial option.
Here at Coventrymoneyman, you can speak to a trusted Mortgage Advisor in Coventry who can provide you with a tailored service. Again, the individual that you want to remove off the mortgage will need to agree to be off the mortgage. It can be challenging if they don’t agree to be removed.
We are here 7 days a week to answer any of your mortgage questions and provide a helping hand on your mortgage journey. Contact our team today to book your free mortgage appointment.
As a Mortgage Broker in Coventry, we have had the opportunity to help many first time buyer in Coventry and those looking at moving home. Through this time we have found that the most common question we get asked is ‘How much will this all cost?’.
In this article, we have collated a list of the fees you can expect to pay to help you organise the costs accordingly when buying a new home (and when they become payable).
This cost is one for people who are looking at selling their house. These days, we have found a growing interest in online estate agencies with the price of a basic Rightmove listing being as low as £500. On the other hand, for a more tailored and local service with a dedicated sales negotiator, the fee will be roughly around 1-2% of the property price.
Having a valuation carried out on your chosen property will be something your mortgage lender will want you to do. The reason for those is so they know they are lending against adequate security.
When it comes to the price of a property surveys can differ starting from nil (for a basic valuation with some lenders) up to a few hundred pounds for a more in-depth homebuyers’ report. It could be even more for a Full Building Survey.
The importance of working around the cost is that you always have an element of choice when it comes to the level of detail your survey goes into. This is likely down to the age and the type of property you are looking to buy along with any fears/concerns you have about it.
For more information about property surveys, which survey is best for you and how we can help as a Mortgage Broker in Coventry, check our article on ‘what is a property survey’.
You might find that some mortgage products offer cheaper rates, however, keep in mind that this would come with an arrangement fee which could end up outweighing the benefit. This doesn’t apply to all mortgage lenders, so you may not need to pay anything.
In some cases, you may need to pay these fees upfront or you may be able to add these onto the balance of your mortgage. Keep in mind, that it would mean further interest charges.
Our Mortgage Advisors in Coventry have access to a panel of lenders all offering a range of mortgage products. From this, they will be able to compare mortgage deals with all fees added so we can compare on a like for like basis.
You will need to factor in the services of a solicitor with their fees varying between firms and largely differ. As an estimate, a straightforward purchase with a local company is £600 for a low-value property.
This will involve you to provide the property address if it’s leasehold or freehold and the amount you are purchasing for it to get accurate quotations.
The key points to cover when asking for a quote are:
Along with the costs and disbursements that come with paying your solicitor, depending on your situation, you may need to pay this tax that the solicitor collects on the completion of the property purchase. Full details can be found on the gov.co.uk stamp duty page.
Normally, a mortgage broker in Coventry will charge for their service. The amount you pay varies from company to company. Here at Coventrymoneyman where we provide open and honest Mortgage Advice in Coventry, your dedicated advisor will explain these in more detail within our free initial mortgage appointment.
We would suggest you approach a local company like ourselves instead of a big organisation. Usually, they will charge only on completion instead of any application fees and further costs that could be incurred.
If you are moving home in Coventry, the cost of moving your furniture can differ significantly and still can be pretty costly. A cheaper alternative is to hire a van and carry out the work yourself. Finding a local man with a van could be slightly more in price than hiring your own van. On the flip side, a professional van service could cost you high hundreds, early thousands.
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.
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.
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.
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.
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.
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.
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.
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 general consensus there is around moving home is that it can be quite stressful for homeowners with the process taking a lot of time and money. Many, it can be a beneficial option.
For example, many people look to move home for circumstances like looking for a bigger property, a new scenery and many more! Check out these below:
If you are looking to move home in Coventry, you may looking for a property that is bigger than the one you are currently in. This is especially the case if you are a first time buyer in Coventry and have initially settled with a smaller property but now are in need of some more space.
You may be looking for a property that lines up with your future plans including starting a family or wanting more rooms for facilities like a new office or home gym which would be restricting in a smaller home.
Even though moving home in Coventry is the best option here, we do recommend that you explore the potential options of raising capital by remortgaging to fund desirable home improvements like an extension on the property, a loft conversion or a home office.
Remortgaging to fund home improvements is a common option, especially with growing families and can help you towards developing extra space whilst allowing you to keep the home you’ve built over time.
The reason why it is a popular option is because these development can raise the property’s value which is beneficial if you are looking to sell the property and want to make a nice profit from the sale.
This is especailly the case if you are looking for a more quiet area that is more rural to settle down in but you are in the heart of a bustling city centre, you may look to move home to live in a desirable scenary.
Again, this is the case for those who are first time buyer as they have limited to their options because of their budget which may have resulted in them living in a low-end property.
As well as this, you may find that you are on a much higher income than you were intially one when you first applied for a mortgage and are now in a better position to look larger property that are more to your liking.
Often, we find that the many customers are looking to move home in order to be closer to their friends and family as they may currently live too far to regaulrly visit them. This is especially the case for those looking to start a family.
In the circumstance where both parents are in regular employement which would mean they will probably need to look into childcare facilties. You may find that many private nurseries are quite expensive which means a lot parents will reach out to their family for support.
You will need to consider all the costs that come with the process if you are looking at moving home in Coventry.
We offer all our customers a free home movers review to speak with a moving home mortgage advisor in Coventry. Within this review, they will look at your how much you may be able to borrow along with estimating the cost of your monthly repayements.
For those who have found that moving home isn’t what they are looking to do and would like to look into a remortgage, get in touch to book yourself in with an expert remortgage advisor in Coventry.
When it comes to porting mortgages, you will find that pretty much all high street mortgages are portable. By doing this, you will be able to move it from one property to another without incurring any penalty.
A porting a mortgage can be helpful if you are looking to move into a new home and are currently involved in a contract with a fixed rate. Furthermore, you potentially avoid any early repayments charges that could have occurred.
Generally, most mortgages that are available to customers are portable, however, it doesn’t mean all are. Some specialist lenders will not allow this to happen. To find out if this is an option for you, speak to a mortgage lender who can confirm this for you.
As much as this is likely to be an option that is available to many homeowners, some may decide not to. This may be due to the lender not willing to lend them the required additional funds that are needed to move home.
Keep in mind that the additional funds will be at a different rate compared to the rate that your current mortgage deal is on at the time.
It may be helpful to take on those early repayments charges instead of staying where you are, however, this does come down to what your lender offers you.
When you decide to port your mortgage, a sub-account is created. This is where the additional funds are placed onto a different deal than the one you have on your current mortgage.
Even though you have a single mortgage and a single direct debit in your name, the different interest rates will apply to each.
When it comes to a sub-account, you may find you will be in some difficulty with it in the future. This is because different products will overlap one another over time.
In order to get your accounts aligned once again could result in one of the sub-accounts falling onto the lender’s standard variable rate for a certain amount of time. For further information regarding this, speak to an expert mortgage advisor in Coventry.
Whether you’re Moving House in Coventry, looking into getting a buy to let mortgage in Coventry, or need assistance with your self employed mortgage in Coventry, book yourself in for a free mortgage appointment to discuss your options with a mortgage advisor in Coventry further.
Buying a home can be a stressful experience, which is why home movers and first time buyers in Coventry use a mortgage broker to help make sure their home buying process go as smoothly as possible. It’s comforting for our customers to know they have someone on their side, on hand to answer any enquiries they have.
A mortgage advisor in Coventry will ensure you obtain the cheapest mortgage to suit your needs. We take full responsibility for recommending the most suitable mortgage for you and package your application to the Lender in such a way to give it the best chance of success.
The same applies when you come to remortgage too, we like to know our customers are on the cheapest deal for the entire mortgage term.
If you’re looking at taking out mortgage advice when buying a home, we recommend talking to a mortgage advisor in Coventry. Your committed member of the Moneyman team will be able to help you work out how much your payments will be, as well as how much you may be able to borrow.
That said, different lenders have their own strict lending criteria, so it does help to speak to an expert. If you know what you can afford well in advance of making an application, it may help you avoid any potential future disappointment.
We aim to ensure all customers are informed about their mortgage application progress so you are fully aware of what is going on. If you have any questions, we are available seven days a week, ready to help you out in any way we can.
Mortgage Brokers work for the customer, not the Lender. This is something that is important to remember throughout your process. Our team are firmly in your corner, sometimes having to argue how strong an application may be, in order to ensure it goes through.
Our company process of requesting and checking your proof of income and bank statements ahead of time allows us to try and avoid any hurdles that may arise, hopefully before they can become a factor.
We also can help you choose the right type of survey for your property, as well as instruct a Solicitor on your behalf to carry out the legal aspects of your transaction.
We love to build up customer relationships and assist with future mortgage enquiries, whether as a buy to let landlord in Coventry with your portfolio or remortgage when your term ends. This often starts with an affordability assessment and agreement in principle prior to even finding a house.
Once your purchase is complete, a member of our team will keep in regular contact, and we will get in touch once more to discuss your remortgage options. We can then compare the market on your behalf as we did before to help you obtain the best remortgage deal available for your circumstances.
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!
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.
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.
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!
Even if you are not married and aren’t looking to settle down and have kids at any point in the near future, it is likely that you will still benefit from taking out life insurance in Coventry. No matter your personal circumstances and life choices, if you are a single homeowner, there are still plenty of justifiable reasons to take out life insurance.
Having a life policy in place can be a big support to your family in dealing with any apparent debts after your passing, such as any remaining mortgage payments that need to be made.
Typically, the purpose of taking out life cover is to cover the costs of any mortgage payment debts. The policy will usually be set up to automatically pay out a lump sum, equivalent to the mortgage cost, in the event that the policy holder (the person with the life cover) passes away whilst still having outstanding monthly mortgage payments.
If you are living with a partner or you have children, the insurance might even be extended into an income boost provided to your dependants, in order to cover any living costs.
The reasoning for that particular extra protection may not be necessary for single cover applicants, but taking out some insurance to cover your mortgage is still worth doing to ensure your payments are securely paid off when you’re gone.
If a single homeowner passed away before their mortgage balance has been paid off, their bank or building society can look to pay off that balance from their late customer’s estate, i.e., their collective belongings (accumulated assets is a term people use for this). This will be something of worth they can sell, like a car.
Quite often when these cases arise, we find that the property will get sold at auction in order to pay off the remaining balance. If the home happens to fall into negative equity, the lender has every right to demand that the difference must be made up by the estate.
As an alternative to this, the lender can demand that the property be sold with any surviving family members not being able to make up any shortfall on the balance. As if this wasn’t bad enough, if the probate process is drawn out (the probate is the period of time where the individual’s estate is handled), the lender can actually continue to add interest charges, increasing the total amount of the balance that needs to be paid. Morally questionable, but unfortunately not illegal.
Taking out life insurance will help protect your family and/or estate from these problems from occurring.
If you are looking at the options you have for taking out life cover in the future, please get in touch and book yourself in for a free consultation with one of our dedicated protection advisors in Coventry.
No matter if you have plans of becoming a first time buyer in Coventry or are already a homeowner, we feel this is something better sorted now than left too late.
A life insurance policy can also mean that if you have any children or grandchildren, they can be left some form of inheritance, regardless of if there is equity in the home.