When considering remortgaging in Essex, homeowners can sometimes be uncertain about whether a deposit is required, as the concept of a deposit is often linked to buying a new property rather than the process of refinancing an existing mortgage.
Before we delve into the deposit aspect, let’s take a moment to define what a remortgage in Essex involves. A remortgage is the process of either transferring your current mortgage to a new lender or renegotiating the terms of your existing mortgage with your current lender.
Homeowners often contemplate remortgaging in Essex for various reasons, including the desire to secure a more favourable interest rate, exploring the option of releasing equity through a remortgage, or adapting their mortgage type to better align with their changing financial circumstances.
Fortunately, in the majority of instances, there’s no requirement for a deposit when undertaking a remortgage in Essex.
In contrast to the home purchase process, where a deposit is commonly needed to secure a mortgage, remortgaging primarily hinges on the equity you’ve accumulated in your existing property.
When engaging in a remortgage process in Essex, the equity in your home takes centre stage. Equity represents the share of your property’s value that you fully own, and it accumulates as you diligently make mortgage payments.
To illustrate, let’s say your property is currently valued at £300,000, and your outstanding mortgage balance stands at £200,000. In this scenario, you possess £100,000 in equity. This accrued equity serves as a valuable asset that can open doors to various remortgaging opportunities.
Rather than relying on a deposit, the dynamics of remortgages often hinge on something called the loan-to-value (LTV) ratio. This important ratio evaluates the sum you wish to borrow in relation to your property’s current market value.
For many homeowners, aiming for a lower LTV is a strategic move, as it can pave the way for more attractive remortgage options.
While the majority of conventional remortgages in Essex do not necessitate a deposit, there are specific situations where it might become relevant:
If you have a history of credit issues, it’s possible that lenders may request a deposit as a precautionary measure to mitigate their risk.
If you’re considering a remortgage in Essex with the intention of releasing a substantial amount of equity, it’s worth noting that certain lenders may ask for a deposit to mitigate their financial risk.
This additional deposit acts as a way for lenders to limit their exposure when you’re unlocking a significant portion of your property’s equity.
It’s important to bear in mind that the process of remortgaging comes with a range of associated costs, such as arrangement fees, valuation charges, and legal expenses. These expenses are an important consideration as you weigh the pros and cons of remortgaging.
Navigating the complexities of remortgages in Essex can be quite intricate, and the wisest step to take is to seek guidance from a qualified mortgage advisor in Essex.
These professionals can meticulously evaluate your unique circumstances, help you in pinpointing the most appropriate remortgage solution, and provide guidance throughout the entire process.
In summary, the majority of remortgages in Essex do not necessitate a deposit. Instead, the key factors in the process are your existing equity and the loan-to-value ratio.
Nevertheless, it’s of paramount importance to engage the services of adept mortgage advisors in Essex who can offer expert remortgage advice in Essex tailored to your specific requirements.
They will conduct a thorough assessment of your financial situation, explore various options, and endeavour to secure the most advantageous remortgage deal for you.
Regardless of the specific mortgage path you choose, whether you’re a first time buyer in Essex, moving home, or seeking to remortgage, your mortgage lender will invariably require a copy of your bank statements. In actuality, they will solicit various forms of documentation to establish your financial capability for obtaining a mortgage.
Lenders analyse bank statements for a multitude of purposes. These encompass assessing your mortgage affordability, evaluating your financial stability, and gauging your responsible management of monetary matters.
The preparatory phase of your mortgage journey holds the utmost significance. As a mortgage intermediary situated in Essex, we strongly recommend that you deliberate on your bank statements and contemplate the information you wish to portray within them during the months preceding your mortgage application.
Moreover, in terms of the elements that capture a lender’s attention on your bank statements, substantial emphasis is placed on transactions related to gambling activities.
While gambling itself is not illegal, it’s evident that lenders tend to view mortgage applications less favourably if they see significant gambling transactions on your bank statements.
There’s a notable distinction between gambling during events like the Grand National and consistently wagering substantial sums every weekend. This underlines the importance of practising responsible gambling, particularly in the lead-up to your mortgage application and throughout the process.
As a mortgage broker in Essex, like us, and also for lenders, our role isn’t to dictate how you live your life, but we do emphasise the need for caution. Lenders have an obligation to ensure responsible lending practices.
Lenders are obligated to demonstrate to regulatory bodies that they’re lending to applicants with financial responsibility. Consequently, they will not lend to individuals who display an inability to manage their financial affairs. Would you lend a large amount of money to an individual who consistently engages in gambling compared to an applicant with minimal gambling activity?
Infrequent gambling transactions should not significantly impact your eligibility for a mortgage in Essex. Moreover, lenders scrutinise how these activities influence your overall account balance. Do they lead to overdraft usage? Are you borrowing funds to gamble, or wagering money you don’t own?
If your financial behaviour in the period leading up to your mortgage application reflects irresponsibility, lenders will be put off by your mortgage application and may turn you away.
Lenders in Essex consider more than just gambling transactions; they will also look at various aspects of your bank statements:
Their aim is to ensure that you align with the type of applicant they seek to lend to. By observing your account activity and posing inquiries about your transactions, lenders aim to establish a level of trust in your financial reliability.
However, occasional use of your overdraft should not significantly hinder your mortgage application. The real concern arises when constant overdraft reliance becomes apparent, indicating financial difficulties.
Demonstrating reliability and being sensible with gambling is precisely what lenders seek. Take proactive steps, demonstrating your commitment to the mortgage process and your intention to present yourself in the best possible light.
Typically, lenders request your most recent three months’ worth of bank statements. Keeping this timeframe in mind, ensure that you manage your finances responsibly and sensibly during this period.
If you engage in regular gambling, it might be worth considering a temporary hiatus. Many betting apps offer features for setting betting limits, which could be a valuable option. Not only could this positively impact your mortgage application, but it could also have benefits for your mental well-being.
As a mortgage broker in Essex, our role is to guide you through the entirety of your mortgage journey, right from the very first steps. We’ll carefully review your supporting documents alongside you, ensuring that you present yourself optimally given your circumstances.
Our team of mortgage advisors in Essex will provide continuous assistance throughout your application process. We have availability seven days a week, please don’t hesitate to reach out for specialist mortgage advice in Essex at a time that suits you best.
The approaching end of the interest only period can create uncertainty for many homeowners. As your term concludes, your lender will require you to repay the loan amount in a lump sum, which can be challenging if you don’t have the necessary funds readily available.
It’s important to note that there are multiple options available to navigate this situation. This article aims to offer guidance and reassurance, providing you with a clear understanding of the alternatives at your disposal.
By seeking excellent mortgage advice in Essex, specifically from our team, we can facilitate a seamless transition into the next phase of your mortgage or retirement. We will work closely with you to explore the best solutions that align with your financial goals and ensure a smooth and secure path forward.
We will thoroughly explore the possibility of transitioning your mortgage in Essex to a regular repayment product. This involves obtaining a new mortgage with a typical duration of 10 to 20 years, allowing you to repay both the outstanding capital to your current mortgage lender and the accrued interest.
The feasibility of moving to a repayment mortgage in Essex will depend on various factors, such as the amount you owe, the value of your property, your age, and your income.
It’s worth noting that older borrowers aged 50 and above may encounter challenges in this regard, and alternative options may be more suitable in their specific circumstances.
If you have a significant amount of equity in your property, you may want to explore the option of selling your current property and either moving in with a family member or downsizing to a smaller property.
By selling your property, you can use the proceeds to purchase a smaller property outright, without the need for a mortgage in Essex.
Once the sale of your property is finalised, you will have the means to pay off your existing interest only mortgage in Essex and achieve a mortgage-free status, providing you with financial freedom and peace of mind.
As a result of the increasing number of interest only mortgage deals reaching their maturity in recent years and positive regulatory changes, mortgage lenders have taken proactive measures to introduce new products specifically tailored to help older clients aged 50+ in maintaining homeownership.
These innovative mortgage products are designed to support clients as they transition into retirement and provide long-term stability. Some of the key features of these products include:
A TIO (Term Interest Only) mortgage is a specialised mortgage product in Essex specifically designed to cater to clients over the age of 50.
This unique product offers clients the opportunity to secure a new interest only mortgage in Essex with a term of 5 years or more, tailored to align with their individual needs and circumstances.
A RIO (Retirement Interest Only) mortgage is an innovative mortgage product designed specifically for clients aged 55 and above. Similar to a conventional mortgage, a RIO mortgage is secured against your home, and you will make monthly interest payments.
With a RIO mortgage, as long as you meet all the interest payments, the principal loan amount will remain unchanged.
Your new mortgage lender will use the funds from the RIO mortgage in Essex to repay your existing interest only mortgage in Essex, providing you with a flexible and sustainable solution for your retirement years.
An equity release mortgage in Essex is a viable option for homeowners aged 55 or above, allowing them to unlock tax-free funds from their homes.
If we determine that this option is suitable for your specific situation, the released funds will be used to fully repay your existing interest only mortgage in Essex.
There are two primary types of equity release plans available. The first is a lifetime mortgage in Essex, which grants you full ownership of your property and is recommended in approximately 99% of cases. With a lifetime mortgage, you retain the right to live in your home for the rest of your life.
The second option is a home reversion scheme, where you choose to sell a portion of your property while retaining the right to reside in it until your passing or until you enter long-term care. This scheme is suitable for a very small number of clients with specific individual circumstances.
In order to provide the most cost-effective and suitable solution for our clients, we understand that a single product may not always be the optimal choice.
Instead, we take a comprehensive approach, considering the entire spectrum of mortgage options that align with your current lifestyle and cater to your short-term and long-term needs, ensuring financial stability from age 50 to retirement and beyond.
We often encounter clients who have sought advice from restricted and limited mortgage advisors in Essex who lack independence and access to a diverse range of products.
It’s important to note that equity release in Essex should be considered as a last resort, exploring alternative options before making such a decision.
If you’re eager to progress and explore your options further, we are here to help you. You can get in touch with us by phone or book an appointment online for a complimentary and obligation-free consultation, during which we can delve into your mortgage choices.
During the consultation, we will address all your inquiries and provide recommendations tailored to your circumstances.
Rest assured, the call will only require your ages and address; no additional information is needed. Involving your family members in these discussions is always encouraged as their input can be valuable.
To accommodate your busy schedule, we offer evening calls to ensure flexibility around your work or children’s commitments.
As your mortgage term approaches its conclusion, you can expect regular correspondence from your current interest only mortgage lender, reminding you to repay the capital.
To ensure a seamless transition, we advise allowing a window of approximately 6 to 12 months before your current product expires to arrange a new one.
We are excited to discuss your options with you in the near future. Rest assured, our consultation is free of charge and carries no obligation. We look forward to assisting you in finding the best solution for your needs.
To understand the features and risks, ask for a personalised illustration. Equity Release may come in the form of a lifetime mortgage or home reversion plan.
A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means tested benefits. The loan plus accrued interest will repayable upon death or moving into long term care.
A home reversion plan involves selling all or part of your home to a plan provider in exchange for a tax-free lump sum.
When your fixed-rate mortgage heads towards it’s end stages, the vast majority of homeowners will be thinking about taking out a remortgage in Essex. The good news here is that you are able to remortgage in Essex as many times as you want to, though this isn’t always necessarily appropriate.
Having a conversation with an expert mortgage advisor in Essex about your remortgage options, could possibly save you hundreds of pounds in the future, especially if we can find you a better deal!
One option we come across regularly, is a remortgage to release equity, which can be used for things like making home improvements or debt consolidation. Whilst this will mean your owed balance is likely to increase, these can be great choices for homeowners.
Though you will find there are likely to be no restrictions, if you choose to take out a remortgage in Essex before your fixed rate period is due to conclude, you may find yourself with quite a hefty early repayment charge (ERC) that you owe the mortgage lender.
In some instances, remortgaging early may be appropriate, though it is important to discuss this with a mortgage advisor in Essex ahead of time, as the positives of doing so might outweigh the early repayment charges you could be faced with.
If you have a fixed-rate mortgage, then we recommend you remortgage in Essex once your deal is set to end, as otherwise, you’ll find yourself moving onto your lender’s standard variable rate (SVR) of interest, which is likely to be a much more costly option for you.
This will ultimately come down to the reason that you want to remortgage in Essex early, as some do it to save money, whilst others will look to release equity for something like making necessary home repairs or improvements.
Your mortgage lender may very well have set an early repayment charge that you would have to pay if you were to exit your contract. You can get in touch with them to gain more clarity on this. It will likely be at a percentage of the remaining mortgage amount. Additionally, there may be exit fees.
We find that people may look to do this ahead of possible changes to the cost of living, as you can lock in to the current interest rates with a fixed rate, which could see you riding the wave of fluctuating interest rates with a consistent deal and lower payments, though this is very much a case by case basis.
As long as you are able to showcase a mortgage lender that you are able to maintain your monthly mortgage payments, it could be possible to remortgage in Essex with bad credit.
Smaller issues such as mobile phone disputes could even be ignored by some mortgage lenders. Having something like a CCJ or default could prove more challenging, however. The further away your credit issues were, the better your chances of achieving remortgage success.
As is the case with any remortgage in Essex, the interest rate payable will be dependant on your credit score, as well as the amount of equity you have in your home.
We would definitely suggest that you make a start on evaluating the remortgage options you might have available to you, around the 6 month mark prior to your fixed or introductory period coming to its end.
This will give you more than enough time for you to enquire for remortgage advice in Essex with an expert in the field, who will look to finalise and ready your new deal to take over as the previous mortgage deal you had comes to its end.
Generally speaking, there will be no limit on the number of times you can are able to take out a remortgage in Essex on your home, though most people will look to achieve this when their fixed-rate mortgage period is set to end.
No matter what your situation is, we would always recommend seeking remortgage advice in Essex as soon as you can, to make sure that your mortgage payments do not end up moving onto your mortgage lender’s standard variable rate of interest.
To have a discussion with a trusted mortgage advisor in Essex about your potential remortgage options, book a free remortgage review today and talk with an open & honest member of our expert remortgage advice team.
By its own definition, a broker is a business that can arrange or negotiate for something in particular, on behalf of their client. A mortgage broker in Essex is a business that functions in that same way, for a homeowner, home buyer or landlord who is looking to take out a mortgage on their property.
A mortgage is a loan that you have secured against your property, which as a property owner, you will pay back over a particular length in time, through monthly mortgage payments.
Although a homeowner, home buyer or landlord are able to search for and apply for their own mortgage, you much more frequently find that they will look to utilise the services of a mortgage broker in Essex, because of the different services they can offer their customers.
Probably one of the most important jobs a mortgage broker in Essex can do, is that they are able to cross-reference your information against 1000s of unique products, across many different mortgage lenders. If you went directly to a bank, you will only be limited to deals from that company.
This isn’t completely a negative, as the best deal with that mortgage lender could still be the best one for you, but this can’t always be guaranteed. A mortgage broker in Essex is able to compare on your behalf, usually coming along with exclusive deals only available with that mortgage broker.
The job of a mortgage broker in Essex is more than this though, as there are lots of jobs that a mortgage broker in Essex can do, before and during your mortgage application and after your mortgage offer. They will also vary between companies; Not every mortgage broker works the same way!
For example, an area that we stand out in, is we are able to recommend suitable insurance options for our customers. Whilst it is an additional, optional cost (you don’t have to do it!), our mortgage and protection advisors have a duty of care to make sure you don’t lose your property, no matter the situation.
When your mortgage process begins, you will most likely be speaking with the appointment booking team of a mortgage broker in Essex. Their role will be to take some general information from you & help you to find a suitable time slot for you to speak with a mortgage advisor in Essex.
As an alternative to this, you are usually able these days, to bypass the need to call up first, as many mortgage brokers in Essex (much like ourselves) have a user-friendly and simplified appointment booking system online, where you can typically choose what type of appointment you would like.
Once you have gotten booked in, the next step will be to attend your mortgage appointment with your mortgage advisor in Essex. Generally you will provide them with some further information to help them better understand what you are looking to do, so that they can help you progress.
From that point, they’ll start looking at a variety of mortgage deals, to help you find the most suitable one for what it is you wish to do. Some mortgage brokers in Essex offer their customers a limited supply of obscure mortgage lenders, others offer more, with some offering a whole of market service.
Whilst we can’t say we are a whole of market company, we can confidently say that we have a greatly sized panel of mortgage lenders, with mortgage products that range from standard mortgage enquiries, to specialist, and everything else you’ll find in-between.
Your mortgage advisor in Essex will provide you with a recommendation on the deal they believe is right for you. If you like that deal, they will look to obtain an agreement in principle (AIP) for you. Our mortgage advisors in Essex are usually able to get this within 24 hours of your appointment.
Estate agents will want you to provide them with this when you make an offer on a property and it will also show the person that is selling the property that you are committed to the offer you have made and are in a position to go forward with the sale.
Also, when you are at this point, you will need to go ahead and submit your documents to the mortgage broker in Essex you are working alongside. The documents that are required can usually vary between each mortgage lender and what you wish to achieve in your mortgage process.
Standard document requests will include proof of ID, proof of your income and deposit, last 3 months’ bank statements and payslips, as well as proof of VISA or right to work in the UK, if you happen to be a foreign national (this is usually done with a share code if you have migrated from the EU).
Documents that are typically requested in more niche situations, include a P60 (not all mortgage lenders will need this), business bank statements and tax calculations/year overviews if you are a self-employed applicant, and possibly also an employment contract depending on what your job is.
After you have achieved all of the latter steps, a mortgage broker in Essex will then work to verify your documents and provide you with their mortgage illustration, which will detail the agreed deal before they move on to submission.
Following on with this, they will progress on to your mortgage application submission, to the mortgage lender. From there, it’s a bit of a waiting game until they get back in touch with your mortgage broker in Essex to confirm if you have been approved or not.
The work won’t be stopping there, as mortgage advisors in Essex still have further steps to complete. They will send copies of your documents to your mortgage lender, as well as liaise with solicitors. During this time, our mortgage advice team can recommend property surveys to you.
You will generally come across 3 different types of property survey. Basic valuation, which will work out the value and resale value of the property, home buyers valuation, which will goes a little more in-depth and a full structural survey, which alerts you to any areas that perhaps you need to look at.
Much as they had done when it came to your mortgage deal in your initial mortgage appointment, your mortgage advisor in Essex will be able to best recommend which property survey is right for you to have taken out.
As you wait for the conclusion of your mortgage application process, you may also have queries or concerns, about what is actually going on. Mortgage advice teams with good reputations will make sure you are informed regularly, often via email, so you are always in the loop with your mortgage progress.
Eventually, the mortgage lender will come back to us with an outcome on your mortgage application, hopefully a positive one! If your mortgage application is successful, you will then receive a formal mortgage offer from the mortgage lender.
From here, the job mostly goes on over to your solicitors to complete your mortgage deal, so that you can eventually be comfortable in your home. There is still more that a mortgage broker in Essex can do for you though.
Here at Essexmoneyman, when you reach about the 6 month mark, before your mortgage deal is due to end, if you had previously took out your mortgage with one of our mortgage advisors, we will be back in touch to offer you remortgage advice in Essex and help you take the next mortgage step.
As is clear, there is much a mortgage broker in Essex can do for you, such as saving you time and money on your mortgage process, whilst they work to reduce your stress levels and bring you one-step closer to completing your mortgage.
We are proud to say that here at Essexmoneyman, we really do care about our brilliant customers. After all, there is no Essexmoneyman, without you! We always put your best interests first, doing whatever we are able to do, to put you in the best position financially for your property goals.
To give you an example of this, if you wanted to take out a remortgage and got in touch with us for remortgage advice in Essex, but your mortgage advisor in Essex felt like you would benefit from taking out a product transfer, they will say so, as it is always about your best interests.
Furthermore, a mortgage broker in Essex may be able to get a mortgage lender to waive some of your mortgage fees, or maybe even look at incorporating them into your overall mortgage balance.
When you are in an appointment with one of our mortgage advice team, they will take a look through all of the costs and fees involved with your mortgage process, during your free mortgage appointment with a mortgage advisor in Essex.
Really, this is all down to you. If you would like to save time and money, stress and worries, then it may be beneficial to let an expert professional such as a mortgage broker in Essex, take on the bulk of the work for you.
We often find ourselves providing customers with expert mortgage advice in Essex, whether they be looking at first time buyer mortgages in Essex, to those looking for a buy to let mortgage in Essex and even more than that.
Book online today and speak with a member of our mortgage advice team, using our handy online booking feature, to benefit from a free mortgage appointment or remortgage review with a dedicated mortgage advisor in Essex today.
In 2020, the global coronavirus pandemic forced business models to be revamped and in some cases, changed completely. There was also a huge increase of self employed workers.
Due to business changes and constant shifts in rules and regulations, a lot of individuals had to work from home. At the time, no one knew how long this was going to be, therefore the thought of investing in a home office didn’t seem like such a bad idea.
Even now, investing in a home office seems like a great idea. Who knows what could happen in the future!
You don’t need to purchase your home office outright, there are alternative methods such as remortgaging and incorporating the costs into your mortgage. This is what we’re going to look at in this article – Remortgaging for a Home Office.
A remortgage is when renew your current mortgage deal or switch over to another deal to replace your current one.
There are lots of different reasons why someone may want to remortgage. You might want to find a better rate, remortgage for home improvements, consolidate debts or just avoid falling onto your lender’s standard variable rate of interest.
When it’s time to remortgage in Essex, if you need help getting the ball rolling, feel free to get in touch with Essexmoneyman and book your free remortgage appointment.
When remortgaging for this reason, you will be incorporating the costs for the home improvements into your mortgage. Although this means that your payments will go up, you won’t have to pay an upfront fee for your new home office.
Home improvements costs can vary as it depends on what you’re wanting to improve! A remortgage for a home office is on the lower end of the spectrum if you compare it to a whole new kitchen.
If you take an example of a home office costing £5,000 – £10,000, your monthly remortgage payments may only go up by an extra £20 – £60 per month. Depending on what remortgage product that you take out, your term may also increase.
Remortgaging for home improvements could save you money further down the line as it can value your home.
Having an office at home can be beneficial in many ways, here are some reasons that we’ve come up with:
As a mortgage broker in Essex, we can say that the costs of moving home in Essex will be much more expensive than remortgaging for home improvements. If you want to create more living space, for ease and to save costs, remortgaging could be the better option.
If you are thinking of remortgaging to create a home office, you should get in touch with our remortgage advisors in Essex. We can offer you a free remortgage appointment with an advisor, so get in touch and book yours today.
A fixed-rate mortgage is a mortgage that has been fixed for a particular set length of time, with the interest rates remaining the same for the entire duration.
Generally speaking, people within the mortgage world believe that the longer you fix your mortgage for, the higher that interest rate is probably going to be. With that in mind, if you are looking for the lowest rate possible, you should really look at taking out a short term fixed-rate mortgage.
The downside to a short-fixed term, is that you will be reaching the end of your term a lot quicker, meaning you will need to renew a lot sooner than you might have wanted. When the time comes to take out a remortgage in Essex, your monthly mortgage payments might be a lot more than they were before your term finished.
If you would rather not be searching for new fixed-rate deals every two years, but also have a preference to not reach the point where interest rates go too high, you might be better suited for a medium-term fixed rate mortgage.
Five-year fixed rates are some of the more popular choices that we come across when speaking to first time buyers in Essex, as they will provide you with the security of consistent monthly payments for the rest of your term. The downside with this one, is that if interest rates drop whilst you’re locked into that fixed deal, you will end up paying more overall than you otherwise would have had if you had gone with a shorter term.
The flip side to that, is if interest rates go up during your term, you’ll be sat comfortably at that lower rate for the duration. It’s because of this, that lenders may increase the interest rates on shorter terms, to future proof themselves, just in case. Usually, the longer your term, the more expensive it is going to be.
There are only a select number of 7 to 10-year fixed rates available to home buyers on the property market. These have always been the least popular of the choices, due to how long they are overall. Many feel that having a decade-long term is too long to be fixed in for a mortgage.
On top of interest rates, you will also need to consider the booking and arrangement fees that are involved.
A booking fee is payable upfront, whereas an arrangement fee is only payable on completion of the mortgage. You might know people who have added fees to the total of their mortgage amounts, but this of course increases the total amount you’d be paying off at the end.
Sometimes you might also find that your financial circumstances can suddenly change and you might need to repay your mortgage balance a lot earlier than had initially been planned for. When this happens, you will likely end up being charged for it.
This charge is known as an Early Repayment Charge (ERC for short). The ERC is calculated as a percentage of the amount that remains on the mortgage balance. If we say as an example, the mortgage amount you have remaining is £200,000 and you are able to pay that off earlier on into your term, with a percentage that is 2%, you would end up having to pay back £4,000 to cover the broken fixed contract.
Many homeowners aren’t aware of the Early Repayment Charge and think it’s as simple as paying off their fixed mortgage early. You are tied into a contracted deal and you can’t just jump out of it and pay it off early, unless you are quite content having additional large charges added to your account.
People who know about the charge may opt to just pay it off early anyway, in order to get a better deal that is currently on the market, especially if it is a limited offer that may not be available a few months down the line.
As an experienced mortgage broker in Essex, we would highly recommend that you avoid chasing after “headline” deals. Always make sure you remember that the lowest rates tend to come with the highest setup fees. Please get in touch today for any further fixed-rate mortgage advice in Essex.
If you haven’t checked on your mortgage payments and rates in a while, perhaps it’s time for a change. We are regularly approached by customers who are checking to see whether they can access a better mortgage rate or not, and the majority of the time… they can!
In fact, most applicants show that they’ve been able to access a better deal for much longer than expected; this is why you should get your mortgage reviewed, especially when it’s for free.
Firstly, a mortgage review is a simple look over your current mortgage situation and personal and financial circumstances to see whether you can access a better mortgage rate or not.
A mortgage review is carried out by your lender, building society or mortgage broker in Essex. The process will work similarly to the way your original mortgage process did, starting with your enquiry through to completion.
During the process, you will also have to supply evidential documents such as Identification, bank statements, payslips and proof of address. This will allow your mortgage situation to be evaluated effectively as you have documents to back up factors like your income and how you are managing your current mortgage payments.
If you go through the mortgage review process and it turns out that you can’t access a better rate or you’re already on the best rate, you should know that you won’t be charged at this point if you use our services. So, you should take advantage of our free mortgage review, just to get an idea of what your current mortgage situation is.
A mortgage review is always worth it if you end up being on a better rate from it. Even though you’ve already been through the process before, doing it again could save you lots of money, further down the line.
Getting a mortgage review from time to time (usually every time your fixed mortgage term ends), may prevent you from slipping onto your lender’s standard variable rate on interest (SVR). Their SVR can usually be quite high. It’s likely to be higher than your current rate, meaning that you may see your monthly mortgage payments go up by quite a bit.
If your mortgage review concludes that you can access a better rate, it’s now time to remortgage or transfer products. If your remortgage advisor in Essex can see that there are deals out there that you match the criteria to, they will try and pick one out that perfect for you through a remortgage or product transfer.
A remortgage is when you take out a new mortgage product with another lender and a product transfer is when you take out a new mortgage product with your existing lender. Either route will help you obtain a new mortgage deal at a new rate (hopefully more competitive!).
Taking out a new mortgage product and avoiding your lender’s SVR could save you a lot of money further down the line, and that’s why a mortgage review can be so important.
During your mortgage review, you may get the option to take out a new mortgage product and take equity out too. You can release equity from your property for home improvements, to pay off debt or to even go on holiday, it’s completely up to you what you do with the money.
Releasing equity is a specialist subject remember, so if you are looking for a new mortgage deal and wanting to release equity too, we would recommend that you speak to a mortgage broker in Essex, like ourselves.
For a free mortgage review in Essex, get in touch with our team today. We have helped thousands of customers in the past achieve a better mortgage rate, even when they thought that they couldn’t!
For expert mortgage advice in Essex, contact Essexmoneyman today; open 7 days a week.
Firstly, what is a remortgage? Remortgaging is simply switching to a new mortgage product. This can also be known as a product transfer. The difference between a remortgage and a product transfer is that when you remortgage, you change products and lenders, whereas when you complete a product transfer, you change mortgage products but stick with the same lender.
The reasons for people wanting to remortgage can be different, it all depends on what the homeowner wants. They may want to look for a better rate of interest, consolidate their debts, or raise capital for things such as home improvements.
In this article, we are going to focus on remortgaging/transferring products for home improvements.
Before you remortgage, you will have to work out the estimated costs for the home improvements. Home improvements could be anywhere from extensions to conversions, so depending on how you want to improve your home, the costs may increase.
Once you have worked out your estimated costs, they will be incorporated into your mortgage. This will slightly increase your overall monthly payments as you are now paying off your mortgage as well as your home improvements. In some cases, your payments may barely increase. Again, this all depends on the home improvements being carried out. As a Mortgage Broker in Essex, we’ve seen some customers go up by an extra £50, to an extra £200.
Estimated costs include:
We would also advise that you have some spare savings aside from the remortgage, as if things go wrong or the costs don’t quite add up, you may have to cover them.
The most common reason for people remortgaging for home improvements is to make more space. Whether it’s because they’re starting a family or just want a bit of extra room within their home, the whole process is easily done and it also saves you moving home in Essex.
Rather than going through the whole moving process, if you already love the home that you live in… why move? It often works out that it’s much cheaper to remain inside your current home too!
You can remortgage for various different types of home improvements, some include:
If you are thinking of improving your home and want to go down this route, feel free to get in touch with our team for remortgage advice in Essex. Whether it’s because you need more room or just because you want to modernise your home, there is always a good reason to remortgage.
Our team works 7 days a week, so make sure to get in touch whenever you want to have a chat about your remortgage options. There are other reasons to remortgage, so if you want to go down another route, we would be more than happy to help with that too.
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.
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 Essex 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.
95% mortgages are usually accessible by both First Time Buyers in Essex & those who are Moving Home in Essex. 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.
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 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.
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.
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.
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.
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Essexmoneyman.com & Essexmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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Essexmoneyman.com & Essexmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
