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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 to remortgage 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 remortgaging for home improvements in Essex.
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.
Coming to the end of your mortgage deal, you may find yourself considering the option to remortgage your property.
Remortgaging involves switching your current mortgage to a new deal, either with your existing lender or a different one.
Whether you’re looking for better rates, funding for home improvements, or simply changing the terms of your mortgage, remortgaging can be a valuable tool in managing your finances.
Here’s a comprehensive guide to remortgaging in Essex and why you might want to consider it.
The remortgaging process can be complex, especially with the many options available on the market.
This is where a mortgage broker in Essex can be invaluable. With their expertise and direct access to various lenders, they can provide tailored remortgage advice in Essex to suit your needs.
Our team will take the time to understand your financial situation, compare deals across the market, and guide you through the entire process, ensuring you secure a favourable rate.
Whether you’re looking to remortgage for home improvements or release equity, having a specialist by your side can make the journey smoother.
A remortgage means taking out a new mortgage on a property you already own, either to replace your existing one or to borrow additional funds.
Many homeowners choose to remortgage to benefit from lower interest rates, alter their mortgage terms, or access the equity built up in their property.
By remortgaging, you might be able to reduce your monthly payments, shorten your mortgage term, or secure funds for other financial needs.
One of the most common reasons for remortgaging in Essex is to obtain a better interest rate.
If your current mortgage deal is coming to an end, you may automatically be placed on your lender’s standard variable rate (SVR), which could be significantly higher than other rates available on the market.
By switching to a new mortgage deal, you can potentially lower your monthly payments and save money over the long term.
As a trusted mortgage broker in Essex can help you find the most competitive rates tailored to your financial situation.
If you’ve been thinking about upgrading your home, remortgaging can provide the necessary funds to make it happen.
You can release some of the equity built up in your property to finance renovations, such as a new kitchen, an extension, or even a garden makeover.
This not only enhances your living space but can also increase the overall value of your property.
Most lenders are open to the idea of remortgaging for home improvements in Essex, making it a viable option for many homeowners.
As your financial situation changes, you might want to alter the terms of your mortgage. Remortgaging gives you the flexibility to either extend or reduce the length of your mortgage term.
Extending the term can lower your monthly payments, making it easier to manage your finances.
On the other hand, if you can afford to make higher monthly payments, reducing your mortgage term can help you become mortgage-free sooner.
If you take up our offer of a free remortgage review, we can offer remortgage advice in Essex, helping you decide which options goes best with your financial goals.
Over time, as you pay down your mortgage and property values rise, you build up equity in your home.
A remortgage allows you to release some of this equity, giving you access to a lump sum of cash.
This can be used for various purposes, such as investing in a new property, starting a business, or funding a significant life event.
It’s essential to speak with a mortgage advisor to understand how remortgaging to release equity in Essex can impact your future finances and the potential changes to your monthly mortgage payments.
If you have multiple debts, such as credit cards or personal loans, remortgaging can provide a way to consolidate these into a single, manageable monthly payment.
By using the equity in your home to pay off other high-interest debts, you can simplify your finances and potentially reduce your overall interest payments.
It’s important to consider that remortgaging to consolidate debt in Essex means securing the debt against your property, so it’s crucial to carefully assess the risks involved.
Speaking with a mortgage broker in Essex can help you explore your options and find the best solution for your situation.
For homeowners aged over 50 in Essex, remortgaging can open up various financial possibilities.
As you approach retirement, your financial priorities may shift.
Whether you want to release equity, pay off existing debts, or make home improvements, there are specific remortgage options tailored for older homeowners.
Lenders often offer flexible terms, such as retirement interest-only (RIO) mortgages, which allow you to make interest-only payments and repay the capital when you sell the property, move into long-term care, or pass away.
Additionally, lifetime mortgages enable you to access some of the equity in your home without needing to make monthly repayments.
Deciding to remortgage is a significant financial decision that should be carefully considered. If you’re unsure where to start, consider booking a free remortgage review with a specialist mortgage broker in Essex.
During the review, a mortgage advisor will assess your current mortgage situation, discuss your remortgage goals, and provide personalised advice on the best way forward.
This is an excellent opportunity to explore potential savings, understand your options, and get expert guidance tailored to your needs.
Have you ever thought of using a mortgage broker in Essex? Well, you may not realise it initially but the fact is there are some good reasons for it. Although, it is quite possible to proceed by directly contacting the lender, most people prefer dealing with a mortgage broker.
People often consider it a great chance to save money by not hiring a mortgage broker. It seems a cost-effective idea to proceed with everything on your own.
So you may also be one of those who prefer going directly to the Bank or Building Society. Another pro that was previously in the minds of the people was that “the Bank Manager knows my finances inside out”, although this changed when credit scoring was introduced.
It is also true that some lenders have various mortgage products only for the people who directly reach out to them. The main intention behind such ideas is to attract the consumers directly and grab their attention with exclusive offers.
Ultimately, it serves as a great tool to spread the business. The interesting part is that it is equally enticing to speak with a mortgage broker as well. Some offers can be found only through a mortgage broker.
From 2014 onward, it was not possible for the lenders to sell mortgages to anyone on a non-advised basis. At that time, it was a common perception that non-advisors were forcing their advice on the customers and not letting them benefit from consumer protection benefits that should come with speaking to a professional mortgage advisor in Essex.
There’s also the fact that taking an appointment with a bank can sometimes take months to happen. A mortgage broker in Essex can often get you booked in within that week.
Now you can easily understand how these kinds of issues gave rise to the importance of mortgage brokers and diverted the minds of the people towards them. As a result, more and more applicants started relying on the mortgage brokers and were quite willing to pay their fees.
Now they had more trust for the mortgage brokers who are often able to offer their services the same day, like ourselves. We are always ready to help you, so get in touch and we will put you through the qualified mortgage advisors either immediately or within the same day if we can.
You might be wondering: what can be the reasons that make some mortgage applications far more difficult than they should. So let’s have a look at some of the examples:
In the past years, it was much easier for the lenders to get the competitive edge by just presenting more enticing offers than their competitors. But it is not as simple now and the thing that distinguishes one lender from the other is the lending criteria.
To make all this easier, all you need to do is to discuss your situation with an experienced and professional mortgage broker and ask them whether they encountered a similar situation in the past or not. After a lot of research and hard work, a mortgage broker will hopefully be able to help you through and recommend the most suitable mortgage that matches with your budget and does not break the bank.
Here it is worth mentioning that even if the application is simple, we have more experience and knowledge that will surely help you in getting the most appropriate deal. For example, we have a professional team of mortgage advisors in York that will guide you about other professional options and services such as solicitors. When you keep yourself in touch with us, we will also update you about the surveys and protection information available to you.
Our distinguishing feature is that we are far more fast and responsive compared to the other mortgage brokers. The biggest reason why customers often need the mortgage help is that everyone nowadays is very busy and needs someone who can lift off the weight. Our mortgage advisors will do that for you quite smoothly and you will definitely appreciate the benefits of having an expert on board.
Ready to discuss your mortgage plans? Feel free to Get in Touch with your specialist mortgage broker in Essex. We are available 7 days a week, to help you out in finding the right mortgage deal.
We cover Essex and surrounding areas: Mortgage Broker in Chelmsford – Mortgage Broker in Brentwood – Mortgage Broker in Southend-on-Sea
Regardless of whether you are a first time buyer in Essex looking to make that initial jump onto the property ladder, or are going through the process of moving house in Essex, it will soon become apparent that there are multiple different types of mortgage available to customers.
Some options are a little more popular than others and some are quite hard to come across. We put together a list of mortgage types we find that we encounter the most frequently and that you will likely come across in your search for a mortgage. You will also see each section accompanied by one of our MoneymanTV episodes, which we hope you will find very useful ahead of the mortgage process.
We have a collection of Helpful Mortgage Guides on moneymanTV here, as well as our “Mortgages Explained” playlist here.
A fixed-rate mortgage means that your mortgage payments, for a specific period of time, will stay the same, giving some consistency to your process. The length of your fixed payments is completely your choice, with generally homebuyers choosing common lengths of anywhere around 2, 3 or 5 years or longer.
Regardless of any changes to inflation, interest rates or the economy you can rest easy knowing that your mortgage payment, often your single biggest outgoing, will not drastically change, giving you some normality.
A tracker mortgage means that the interest-rate of your mortgage will follow the base rate of the Bank of England. What this means is that the lender that you are with do not choose interest-rate and neither will you. Instead, you will be paying a percentage above the Bank of England base rate, something which can change slightly. A prime example of this, is if the base rate is 1% and you are tracking at 1% above base rate, that means you will be paying a rate of 2% on interest.
When you take out a repayment mortgage you will be paying back capital and interest combined each month of your term. So long as you keep your payments going for the full length of the mortgage term, you will be guaranteed to have your mortgage balance paid off by the end, with the property then becoming yours to own.
In regards to mortgage payments, this is considered to be the most risk-free way to pay your capital back to the mortgage lender. Early on into your mortgage term, you will primarily be paying back the interest portion of the payments, and your balance will start to go down really slowly. This is especially the case if you have taken out a longer term of around 25, 30 or more.
Where this changes for you, is when it comes to the last ten years or so of your mortgage. Your monthly mortgage payments will be more capital than interest, with the balance coming down much faster.
Whilst many modern day buy-to-let mortgages are set up on an interest-only basis, you’ll find it a lot harder trying to get a residential property on the same basis. The likelihood of a mortgage lender offering an interest-only product to customers these days is not very high, though in some cases it is possible.
Situations where this might apply to a customer include downsizing when you are older or have other investments that can be used to pay back the capital. Lenders have strict rules when it comes to offering these products now and the loan to values are a lot lower than they used to be back in the day.
With an offset mortgage, the lender will set you up a savings account that will function alongside your mortgage account. The way that this works is that, for example, let’s say you have a mortgage balance of £100,000 and £20,000 is deposited into your savings account, you only pay interest on the difference between this, which in this case is £80,000. This can be a very efficient way of managing your finances, especially if you pay a higher rate of tax usually.
As a Mortgage Broker in Essex, the question of “How much deposit do I need?” is commonly asked, especially by First Time Buyers. The answer to this question changes depending on your personal and financial situation and your credit history, so there is no real straight answer. Typically, the minimum deposit for a mortgage is 5%, however, this could change depending on your financial circumstances and credit history. Here we explore how much you might need given your own personal situation.
Prior to the credit crunch, 100% mortgages were available all around, in fact, at the time Northern Rock were offering 125% loan to value mortgages. Nowadays, you wouldn’t see these flying about. You can see how the credit crunch came about after lenders were giving away mortgages left right and centre!
This is why you started needing a deposit for a mortgage, lenders needed to be certain that you could afford one before accepting your application. It’s not just the fact that you have met the 5% minimum deposit, it shows that you have saved and managed your finances to get the correct amount, lenders really like seeing this.
If you’re trying to get a mortgage without 5% of the property’s value, you will most likely be turned away. Other buyers may already have the minimum 5%, or sometimes more than that, at the ready and are then more likely to be accepted. You could argue that if you are not reaching that 5% mark, then you’re not quite ready to get onto the property ladder.
Again, this is all down to your financial circumstances and your credit history. Generally speaking, yes, a 5% deposit is accepted by most lenders. Although, If you have had credit problems in the past, some lenders may want a higher percentage which could be anywhere from 10-15%.
If you are in a situation where you have a negative credit history and are struggling to get accepted for a mortgage, you may need to look into how to improve your credit score. This can be done in numerous ways; some are easier than others.
Lenders have to be careful before accepting applicants for a mortgage, especially if they have a bad credit history. They want to reduce all risks in case a repossession occurs.
If you want help from a Specialist Mortgage Advisor in Essex, we are always available, plus we offer a free mortgage consultation to all customers! Feel free to get in touch when the time suits you.
Buy to Let mortgages in Essex require a larger deposit. For example, most lenders operate at the 25% mark.
This is possible but as a Mortgage Advisor in Essex, we do not recommend it. Most lenders will reject your application straight away when they see that you haven’t actually saved for the 5%, it’s just a loan. You are essentially borrowing 100% of your whole mortgage which will also double your monthly outgoings. Lenders will rarely accept applicants trying to do this, they would prefer borrowers to save up.
This is the most common situation amongst First Time Buyers. If you are lucky enough, your parents may gift you the 5% deposit or a portion of it. In some cases, it raises the applicant’s deposit to greater than 5%, which actually increases the chances of you getting accepted.
Family members or friends that gift the money to the applicant, must sign a form to confirm that this is a gift and not a loan. They must also evidence where the money has come from before it can be used on the deposit.
Yes, you can, there are two main scenarios where this can take place:
If you need any further information regarding mortgage deposits and qualifying for different government schemes, get in touch with Essexmoneyman for a free mortgage consultation. We have Specialist Mortgage Advisors available 7 days a week.
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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
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