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Remortgaging in Lincoln, a term that may sound complex, is a significant financial consideration for homeowners.
The essence of this process lies in either shifting your current mortgage to a new lender or re-evaluating the terms of your existing mortgage with your current lender. The motivations behind this decision are diverse and can yield substantial financial benefits when executed correctly.
To make sense of the remortgaging process in Lincoln, let’s break it down into fundamental steps:
The journey begins with a thorough evaluation of your current mortgage and financial circumstances. This entails examining your outstanding mortgage balance, current interest rate, and monthly payments. This initial assessment plays a key role in determining whether remortgaging is a viable option for you.
An important step is conducting extensive research into the various mortgage deals available in the market. Seek out lenders offering competitive interest rates and favourable terms.
It’s highly advisable to consider seeking guidance from a mortgage advisor in Lincoln, who can tailor their advice to your unique situation.
Once you’ve chosen a suitable mortgage deal, the next phase involves completing a mortgage application. The lender will meticulously review your application, taking into account factors such as your credit history, income, and the value of your property.
To establish your property’s current market value, a valuation might be necessary. Typically, the lender arranges for a professional appraiser to assess your home.
Legal processes are a vital part of remortgaging in Lincoln. You might need to enlist the services of a solicitor or conveyancer to handle these aspects, which include property searches and fund transfers.
If your application aligns with the lender’s criteria, you’ll receive a formal mortgage offer. It’s important to carefully review this offer to ensure it aligns with your expectations and financial objectives.
Upon successfully completing all the necessary checks and documentation, your new mortgage deal is officially confirmed. This phase may involve the payment of arrangement fees and other associated costs.
With your new mortgage in place, you begin making monthly payments according to the terms of the new agreement. Consistently adhering to these payments is vital for maintaining a healthy financial profile.
Homeowners consider the prospect of remortgaging in Lincoln for various reasons, with each scenario being distinct. One common motivation is the pursuit of a more favourable interest rate, which can result in substantial savings over the life of your mortgage.
Furthermore, remortgaging can serve as a means to unlock the equity tied up in your property. This equity can be harnessed for various financial goals, including home improvements and debt consolidation.
Changing your mortgage type is another reason, as your financial circumstances may evolve, necessitating a different type of mortgage to better meet your needs.
Lastly, some homeowners opt for remortgaging in Lincoln to consolidate high-interest debts, such as credit card balances or personal loans, into their mortgage. This can lead to reduced monthly payments and simplified financial management.
Remortgaging in Lincoln offers several advantages. It can potentially lead to lower monthly payments, provide access to home equity for financial aspirations, allow the consolidation of high-interest debt, and offer flexibility to tailor your mortgage to better suit your evolving financial needs.
In conclusion, remortgaging in Lincoln is a process that empowers homeowners to either shift their mortgage to a new lender or renegotiate the terms of their existing mortgage agreement.
Individuals embark on this journey for a range of reasons, from securing more attractive interest rates to unlocking property equity. The process involves a series of steps, including assessment, market research, application, property valuation, legal procedures, and finalising the terms of the new mortgage.
When considering remortgaging in Lincoln, it is important to carefully evaluate your options and, when necessary, seek professional remortgage advice in Lincoln to make well-informed decisions about your financial future.
If you’re a first time buyer in Lincoln, entering the realm of mortgages may seem like a daunting task, especially if you have limited prior knowledge of the process. However, there’s no need for it to be overwhelming.
Adequate preparation is key, which is why we’ve compiled a list of nine essential questions to pose while you’re in the midst of your house hunting journey.
When you’ve been surveying various properties and find one that piques your interest, it’s a prudent step to give it careful consideration before committing. Keep in mind that this decision likely represents the most significant financial commitment you’ll make in your life.
The duration of time you have for this deliberation may vary, depending on the level of interest the property has garnered from other potential buyers or inquirers.
Hence, it’s advisable to inquire about the level of interest surrounding the property. A high level of interest suggests that you’ll need to expedite your final decision-making process.
Another factor that can significantly influence various aspects of your mortgage process is whether your property is part of a chain or not.
In cases where the property is brand new or involves situations like bereavement or emigration, there typically won’t be an onward chain. In such scenarios, there’s often the potential for a swift transaction, especially if you’re also part of a property chain.
If you don’t need to sell your existing property before purchasing the new one, you’ll find yourself in a more advantageous position compared to others. This lack of dependency on selling a property first can expedite the home-buying process.
Leveraging this advantage can be particularly useful during negotiations regarding the property’s price.
If you’re not purchasing a new build property, there’s a possibility that the previous owner may have chosen to leave some items behind, which can prove highly beneficial. Typically, these items include appliances like washing machines, fridges, freezers, and even sheds that they’ve left for the next occupant.
This can be a real time and money-saver for buyers, which is great news. However, if you neither want nor need these items, you should account for the cost of disposing of them.
For those buying a new build property, you might have the option to purchase additional extras that will be in the property when you move in.
Having insight into your potential neighbours can be invaluable when moving into an unfamiliar area. For many, the quality of their neighbourly relationships can significantly impact their living experience.
New housing developments offer a fresh start, allowing residents to shape the community. However, this can also be a gamble due to the uncertainty of the neighbourhood’s future dynamics.
When considering running costs, it’s essential to factor in the type of house you’re interested in and its location. Explore various aspects such as Council Tax rates and average utility expenses.
You can gather this information by consulting the seller or conducting online research. Having this data at your fingertips will enable you to budget effectively for each property you’re considering.
For many first time buyers in Lincoln, having a sunny garden for late summer evenings, ideal for reading books in natural light, is a top priority. Consequently, the orientation of the house becomes significant.
If this is an essential feature for you, you might notice that properties with south-facing gardens come with a higher price tag. This premium is often due to the abundance of sunlight they receive throughout the day.
This can greatly influence your budget. To help with your financial planning, here are some key aspects you should investigate:
A typical step in the home-buying journey involves initiating negotiations for a property. It’s important to be well-prepared when you’re ready to make an offer on a property you’re interested in.
Additionally, it’s advisable to engage in a conversation with the seller or their estate agent to gain insight into their expectations regarding a suitable price range for the property. Inquire about any previous offers that may have been made and declined prior to presenting your own offer.
Marking a specific date on your calendar will provide you with a clear timeline to organise various tasks in advance. This includes actions like hiring a conveyancing solicitor, packing your belongings, and arranging for a removal van to transport your possessions to your new home.
When considering remortgaging, homeowners might find themselves puzzled by the concept of a deposit. This confusion often arises because deposits are typically linked with buying a property rather than the process of refinancing an existing mortgage.
Before we delve into the deposit question, let’s take a moment to clarify the essence of a remortgage in Lincoln. In simple terms, remortgaging in Lincoln involves the act of either transferring your current mortgage to a new lender or renegotiating the terms of your existing mortgage with your current lender.
Individuals contemplate remortgaging for various reasons, which may include the pursuit of a more favourable interest rate, accessing equity through a remortgage in Lincoln, or altering their mortgage type to better align with their evolving financial requirements.
The reassuring news is that, in the majority of instances, there’s no requirement to furnish a deposit when embarking on a remortgage for your property.
In contrast to the process of buying a home, where a deposit is commonly necessary to secure a mortgage, remortgaging primarily centres around the equity you’ve accumulated in your existing property.
When you embark on a remortgage in Lincoln, your property’s equity takes on a central role. Equity represents the share of your property’s total value that you possess outright, and it grows as you make payments on your mortgage.
To illustrate, if your property carries a valuation of £300,000 and your outstanding mortgage balance stands at £200,000, you have accrued £100,000 in equity.
Rather than necessitating a deposit, remortgages in Lincoln typically revolve around the concept of the loan-to-value (LTV) ratio. This ratio evaluates the amount you wish to borrow in relation to your property’s current value. To access more advantageous remortgage terms, many homeowners strive for a lower LTV.
While the majority of standard remortgages in Lincoln don’t necessitate a deposit, certain situations may warrant its consideration:
In cases where you have a history of credit issues, lenders might request a deposit as a risk mitigation measure.
When you’re considering a remortgage in Lincoln with the aim of releasing a substantial amount of equity, some lenders may request a deposit to minimise their level of risk.
It’s important to keep in mind that remortgaging comes with various expenses, such as arrangement fees, valuation fees, and legal costs. These financial considerations should be taken into account when making your remortgage decision.
Navigating the complexities of remortgages in Lincoln can be daunting, which is why seeking guidance from a qualified mortgage advisor in Lincoln is a useful step.
They possess the expertise to evaluate your unique circumstances, help in identifying the most suitable remortgage solution, and provide support throughout the entire process.
In summary, for the majority of remortgage situations, there’s no need to furnish a deposit. The primary factors at play are your existing equity and the loan-to-value ratio.
Nevertheless, it remains essential to take out expert remortgage advice in Lincoln with mortgage advisors in Lincoln who will meticulously assess your financial standing and explore a range of options to secure the most advantageous remortgage deal, tailor-made to align with your specific requirements.
Overall the popularity that surrounds taking out an offset mortgages has dipped since the rise of that mortgage type during the 1990s, though thankfully for customers who want this, they can still be a great option for home buyers.
They can especially be useful if you believe that you are due to receive a lump sum at any point in the near future, perhaps from say an inheritance.
When your offset mortgage begins, you will have a savings account opened in your name by the mortgage lender, with the aim of that being to run alongside your mortgage and help to pay it off. Rather than garnering any interest, it will instead offset your savings against the balance of your mortgage.
To provide an example of how this might work, let’s say that you had a mortgage that is worth £100,000 and you have saved up £15,000 with your savings account, then you will only pay interest on the £85,000 that is remaining on your balance.
Offset mortgages are considered to be much more flexible options for home buyers. The reason for this, is that until your mortgage has been completely offset, you are able to take out and put in as much into your savings as you see fit.
This provides you with an emergency backup, as you are able to take out funds at any point if you need to do so, though it’s important to note that withdrawing money will increase your balance, thus increasing your overall cost.
One of the positives around offset mortgages, is that it saves interest, as opposed to adding it on, so you won’t be paying any tax on any amount of funds that you put into your savings. Higher rate taxpayers are a big fan of these types of mortgages!
If you are due a lump sum at any point, such as an inheritance through perhaps a family member’s equity release, an offset mortgage can be a really great option. This is because it allows you to store your funds until you want to do something with it, free from interest.
You may also want to put any annual or quarterly bonuses you receive from your job into your savings, if you have no dependance on them. The more that is sitting in your savings, the better off you will be throughout your mortgage.
Thanks to the flexibility of this mortgage, you can freely dip into savings if you need extra funding, whilst leaving some still in to offset against your mortgage. It’s crucial to remember that you will need a substantial amount of money in there, to make an offset mortgage worth it.
An offset mortgage is a great choice for first time buyers in Lincoln who are planning on overpaying their mortgage throughout their term. Looking ahead to the future, once you have finished your current mortgage period, overpaying could potentially allow for reduce interest rates or monthly payments.
With other mortgages that you could take out, any money that you put towards your mortgage cannot be taken back out once it has been paid. At this point, you may have limited mortgage options. This is certainly not great if you change your mind once you have overpaid or need emergency funds.
Of course an offset mortgage counters this, due to the freedom you have to put in and take out funds. So if you’re looking to overpay on your mortgage, this could also come in really handy.
Before diving into a mortgage, it is important to consider all of the options you have available. Speaking to a qualified mortgage advisor in Lincoln is a great way to make sure you are on the right path when it comes to your mortgage.
We often find that any customers who opt for an offset mortgage, are more likely to continue with said mortgage, as opposed to remortgaging like other homeowners at the end of their fixed period.
As an open & honest mortgage broker in Lincoln, you will be assigned a dedicated mortgage advisor who will show you the impact of offset mortgages and how it could possibly save you money over the duration of your mortgage term.
For further questions regarding offset mortgages, or if you would like to remortgage in Lincoln, feel free to book online today and take advantage of the free mortgage appointment we offer to all customers, no matter their situation.
As a first time buyer in Lincoln taking on your first ever mortgage process, you will probably want to do a bit of research first. During that research, you will quickly realise the variety of options at your disposal.
Below you will see a list of the most popular types of mortgages available on the market and hopefully, our short MoneymanTV videos will give you a better understanding of what each option has to offer.
If you have any questions regarding any of the below mortgage options, then please do not hesitate to get in touch and we will do our best to help.
A fixed-rate mortgage will mean that you will benefit from having consistent mortgage payments for a duration of your choosing. Typically first time buyers in Lincoln will select somewhere between 2 to 5 years.
The reason for this, is if interest rates were to drop below what you’re paying and you’re still tied in for a few more years, you could be paying more than you would need to, without a way to get out early (unless you were to pay a charge).
The good side is that no matter what happens to inflation, interest rates or the economy you know that your mortgage payment, which generally speaking is your biggest outgoing, will stay the same.
A tracker mortgage is a type of mortgage wherein the interest rate will follow alongside the Bank of England’s base rate.
So in other words, the mortgage lender that you are with will not be setting the interest rate themselves. Typically you will instead be paying a percentage above the Bank of England base rate.
For example, if the base rate is 1% and you are tracking at 1% above base rate, that means you will be paying an interest rate of 2% on your mortgage.
These were much more popular back in the mid-2000s, due to the interest rate only being a fraction above the Bank of England base rate.
They aren’t as popular as they used to be, though it is important to remember that it is a variable rate mortgage. This means that if the Bank of England base rate goes up, your mortgage payments will increase.
When you take out a repayment mortgage, you will be paying both capital and interest combined on a monthly basis.
So as long as you maintain your monthly payments for the duration of your mortgage term, the mortgage balance is guaranteed to be paid off at the end, with you retaining full ownership of your property.
This is considered to be the most risk-free way to pay your capital back to the lender.
Early into your mortgage, it is mainly the interest that you are paying and your balance will reduce very slowly especially if you have taken out a 25, 30 or 35-year term.
This situation works differently in the last ten years or so of your mortgage in Lincoln, where your payments are paying off more capital than interest, and the balance will come down much quicker than it otherwise would’ve.
Whilst you will find that a lot of buy to let mortgages are set up on an interest-only basis, it is much more difficult to get a residential property on this type of mortgage in Lincoln.
Back in the ’80s and 90s interest-only mortgages were a lot more prevalent. As the name suggests, you would only be paying back the interest per month, which creates lower monthly repayments.
The idea was that you would take out a separate investment vehicle, such as an endowment policy or pension, in order for you to pay the balance back at the end of the mortgage term.
Whether or not there is going to be enough money to pay the balance of your capital will depend on the performance of your investment vehicle.
During the 00s some of these investments didn’t perform as well as people may have expected them to and some borrowers were left with a shortfall.
It is much less likely for lenders to offer an interest-only product to a residential purchaser nowadays, however, there are certain circumstances where this can be an option.
For example, if you are going to downsize when you are older or have other investments what you will use to pay the capital back, an interest-only mortgage may be viable for you.
Mortgage lenders are very strict when it comes to offering these products now and the loan-to-values are a lot lower than they were in years gone by.
With an offset mortgage, the lender will set you up a savings account that will be left to run alongside your mortgage account.
How this works is that let’s say you have a mortgage balance of £100,000 and you were to deposit £20,000 into that savings account. You would actually only pay interest on the difference, so in this case £80,000.
This could actually end up being quite an efficient way of managing your money, especially if you are a higher rate taxpayer.
It is also very useful if you are looking at reducing your mortgage term, because your mortgage term will shrink as the money sits within your savings account.
Importantly, if you remove any funds from that savings account (which you are allowed to do at any point), your balance will go back up.
What this means, is if you deposited that £20,000, then paid off a further £5,000, bringing it down to £75,000 left to pay, then you drew out £15,000 for something, your balance would go all the way back up to £90,000, no matter what you have paid back.
This mortgage option was popular in the late 90s and early 00s, originally coming from Australia and becoming very popular in the UK when introduced by mortgage lenders.
Currently, however, this is not a very popular mortgage option. This could arguably be down to people not saving up as much money anymore. That being said, in the right circumstances, this could be a great option for you.
Every now and again we encounter hurdles that our customers are faced with, whether they are a first time buyer in Lincoln or looking to remortgage in Lincoln.
Though these potential qualms can lead to some slight disruptions in the process, perhaps halting any further action until they’re ironed out, the process doesn’t necessarily need to end there.
In utilising the experience of a trusted and knowledgeable mortgage broker in Lincoln, you have the best possible chance of overcoming these hurdles, hopefully being able to once again proceed with your mortgage goals.
Below we have put together a list of the 5 most commonly encountered hurdles we have faced, when either helping customers to buy their property or remortgage their home.
When relationships come to an end, it can be awkward enough making arrangements between you, without having to factor in a mortgage as well.
If you made any joint financial commitments during your time together, such as your mortgage, you need to cut these ties as quickly as you can, to avoid running into any trouble.
Customers regularly ask us the following 3 questions when it comes to divorce and separation.
Removing your own name or your ex’s name is imperative, as failing to do so could see your credit score drop if you move out and they handle their finances poorly.
The key to achieving this is to prove affordability, as the mortgage lender will be hesitant to lend to one name, when they previously had the security of two names. If you can afford it on your own and your ex agrees to leave the mortgage, it should theoretically be smooth sailing.
Affordability is also a factor in whether or not you can have 2 mortgages, as you will need to have enough income to live, but also afford two different mortgage payments.
The best way to determine your affordability is to speak with an experienced mortgage advisor in Lincoln. We have spoken to many customers in situations like these, so will do our best to help you overcome this issue.
In our experience as providers of mortgage advice in Lincoln, we find that families are typically not turned down for a mortgage because of childcare costs, though you may be offered a lower mortgage amount.
The reason for this is because with parents often working and forking out for childcare, their outgoings can often be in the hundreds of pounds on a monthly basis.
Many mortgage lenders would consider this type of cost as an outgoing, much as they would for a car loan or hire purchase agreement.
Even taking away the element of nursery fees that a parent may pay, parents are still generally offered less of a mortgage amount than their contemporaries, who perhaps have no children of their own running up costs.
The good news, however, is that if you have any childcare costs regularly going out, you may be in receipt of tax credits. There are mortgage lenders out there who will bear this in mind, along with child benefit too.
There are other mortgage lenders out there with an alternative approach, not treating childcare costs as a specific outgoing and relying more so on Office of National statistics data for typical outgoings and this often leads to a higher maximum mortgage amount.
Usually if someone is starting a new job, they will be in receipt of a bigger salary, being able to put their additional income towards a new or existing mortgage.
That being said, if there have been any gaps in employment, a new job can present itself as more of a problem than a blessing for some mortgage lenders out there.
Luckily there are a selection of mortgage lenders out there who will be able to work with a newly signed employment contract, even if you are only a month into your job or are yet to start. Probationary periods are usually also okay.
Benefit income and how much of it can be assessed will be entirely dependant on the mortgage lender, as many of them take different views towards this type of income.
On a positive note though for customers with this type of income, benefits such as child tax credit, working tax credits, disability benefits, pension income can usually be taken into account by a mortgage lender.
It is in situations like these where speaking to a reputable and experienced mortgage broker in Lincoln will be of benefit to you, as they will be able to take a look at your case, review your circumstances and look to find you a mortgage lender where you are more likely to achieve mortgage success.
For any type of purchase, all mortgage lenders and mortgage brokers alike will be required to evidence the source of all of the borrowers’ (the person buying a house and/or looking to take out a mortgage) deposit funds.
This is done in order to satisfy UK Anti-Money Laundering Legislation, which is incredibly strict and designed to protect against fraud. Additionally, your solicitor and estate agent may ask for evidence of your deposit.
It’s the belief of our team, that this is often one of the most complicated parts of the mortgage application process.
Whether you have put down a deposit from savings, premium bonds, the sale of another property, gifted from a family member or friend, from overseas family, or from taking out a personal loan, you are required to have the paper audit trail to show exactly where these funds came from.
In order to be best prepared for your mortgage in Lincoln and to reduce the risk of potential hurdles, it is recommended that you speak with a mortgage advisor in Lincoln.
They will be able to best advise on how to handle your situation and will search through 1000s of mortgage deals to match you up with the most appropriate one.
Book a free mortgage appointment today and get started on your mortgage journey.
Please note that the above information is for reference purposes only and is not to be viewed as personal financial or mortgage advice.
Buying a home is likely to be the biggest purchase you’ll ever make, and a mortgage will be your largest debt. Nevertheless, your mortgage journey will have its ups and downs, but you will end up with one potential outcome once your term ends.
Either you will have a home to settle down in, a property that you can use as leverage to get a better property, or an investment to help boost your income. You will reach a point where your term is coming to a close, and you need to consider your options.
While some look to sell their home and upsize/downsize into a new property. Others may sell their portfolio to the tenant or another buyer to look for alternative ventures. However, we often find that people decide to Remortgage their property instead.
Remortgaging means switching your current mortgage deal to another mortgage deal. You can choose to remortgage with either your existing lender or a different one. Your new mortgage will then replace your old one.
Utilising over 20 years working in the mortgage industry, the “Moneyman” himself, Malcolm Davidson, put together a helpful Remortgage guide for those looking at what they can do next when their term is ending.
Generally speaking, your mortgage deal will last around 2-5 years and feature low and potentially discounted fixed rates. Although, you may find yourself placed onto a tracker mortgage, which will follow along with the Bank of England’s base rate.
A standard variable rate (SVR) is an interest rate set by your lender. It is the default interest rate that you move onto when their initial deal ends. If you choose not to remortgage, you will automatically move onto your lender’s SVR.
In most cases, the SVR can be considerably higher than the interest rate you were previously paying, so your monthly repayments will rise. Because it is a variable rate, your lender can also change the SVR at any time.
Compared to a tracker mortgage, a Standard Variable Rate will not follow the Bank of England’s base rate.
Having adjusted to being a homeowner for several years, you might feel like something needs changing. Some might want an additional room or more living space, a new kitchen, an office to work from home, or even a loft conversion.
Rather than find a bigger home to move into, many homeowners preferably look at releasing their equity with a Remortgage to cover the costs of home improvements.
Once you have obtained planning permission and funding/managing, it can be a pretty stressful experience. However, most homeowners would agree that it’s a lot more rewarding at the end than it would be trying to get a new property and looking to move elsewhere.
Remortgaging for home improvements has many benefits, as opening up lots of space within the property and having a high-performance home is likely to increase the property’s value. Which can help if you ever decide you want to sell up or turn it into a rental property.
Sometimes some homeowners look to Remortgage in Lincoln to gain access to a better mortgage term, whether this is achievable by decreasing the length of the term or switching to a more manageable mortgage product.
By reducing the length of your term, you are cutting short on how long you pay back your mortgage so you aren’t tied down. However, this means that your monthly repayments will be higher.
The longer you set your term for, the lower your payments will be.
In some cases, homeowners choose to take out a more flexible mortgage term when looking to Remortgage as a means to gain the benefits they may have for doing so.
For example, you may be able to overpay with this mortgage, leading to your mortgage paid off a lot quicker and being able to take the same mortgage and rates with you across to another property if you ever do decide to relocate.
Some felt like a flexible mortgage sounds more suitable, though they tend to be tracker mortgages, which, as we have stated before, will follow the Bank of England base rate.
This means your payments could vary depending on interest.
Everyone will have some amount of equity existing within their property. You can work out the amount by looking at the difference between what’s left on the mortgage and the properties current value.
Most homeowners choose to use the equity to fund home improvements. However, you can use the money for other things. Some choose to use their equity to cover costs, go on holiday, pay off an interest-only mortgage, or give them some additional spending money.
We tend to see Buy to Let landlords using a remortgage to release equity to cover their deposit for buying another property to expand their portfolio.
Equity Release in Lincoln is something that homeowners who are aged 55+, with a home that is valued at least £70,000, may be able to use. Explore your options by getting in touch with an expert later life mortgage advisor who can go into more detail about this.
On the subject of Equity Release, we also find that many people will pay off any unsecured debts they may have gained over time.
Debt Consolidation may look like a straightforward process, but there are many factors in the amount you owe, how much the property is worth and the state of your credit rating, thus limiting the amount you can borrow.
To pay off any previous mortgage and debts, you need to borrow a much higher amount than your mortgage, making your monthly repayments much higher. Though it isn’t great, at least you know there are some options should these problems arise.
If you have a ruined credit rating, there may be options out there for you, and you are best speaking with a Specialist Mortgage Advisor in Lincoln before you go ahead with these. But keep in mind even talking to a Mortgage Advisor, you are still not guaranteed to get a mortgage.
We always recommend to all that you get professional Mortgage Advice before you look to consolidate and secure any debts against your home.
If your mortgage term is coming to an end and you would like to know your Remortgage options, get in touch to speak with one of our Mortgage Advisors in Lincoln and book yourself in for a free mortgage appointment.
We will take a look at your situation and look at your best options to see the next step of your mortgage journey. We aim to ensure that your mortgage process this time around is a lot smoother and quicker than previously.
The majority of people out there maybe only think about their mortgage goals or existing mortgages every few years. Here at Lincolnmoneyman, we think about mortgages every day.
There is never a minute of our working hours where we aren’t engrossed in a case, working hard to try and help someone find a favourable outcome.
Because of the time and effort we put into being so efficient and valuable to the customer, we are well versed in lender criteria, understanding which of those on our panel would be most likely process your mortgage application.
We also like to ensure you are on the best rate available to you, eliminating any stress and long delays as best as we can.
Here are the 3 main advantages of seeking mortgage advice in Lincoln:
Long before you could just Google the answers, comparing mortgages was a long and tedious process. Customers would use up their Saturday mornings going from bank to bank, to building society and so on, looking around to try and find the best deal on offer.
Although most of this can be cut out now, it’s still not completely straightforward, especially for those who are maybe first time buyers in Lincoln. With all the fees and charges and exit penalties from existing deals, it can be very confusing.
We use daily-updated mortgage sourcing software so that your dedicated mortgage advisor can recommend the most suitable mortgage for you, the customer. It’s our goal as a company, as a team, to save both your time and your money.
You may be able to source a good deal, but it’s an entirely different ball game when it comes to actually being accepted for that deal. It’s not as simple as finding and asking for it, as you’ll have to match the lenders criteria for it.
There are lots of different reasons why people get declined for a mortgage nowadays, including low credit score, length of time they have been employed or self-employed (self-employed mortgages in Lincoln are always becoming more popular, so it’s important to do research ahead of time if you are your own boss), and failing the affordability calculator.
There are even more than that, but what is important to take away from this, is it is not something to be taken lightly. If you jump into the unknown, unprepared and ultimately unmatched, this could lead to a damaged credit rating. Every time you apply for a deal, the mortgage lender will carry out a credit search.
Too many applications to deals you don’t qualify for can come across to other lenders like you’re constantly being declined for something, which in turn could lead to the right lender with the right deal declining you as well. Your best bet is to speak with us first, so we can try and match you up with the right lender the first time.
It has been said that other than dealing with the loss of a close family member or going through a divorce, that moving house is the most stressful experience you will face in your lifetime. This is especially the case if you’re selling a property and trying to complete your new purchase at the same time.
It’s our job to reduce your stress levels and work hard to make sure your mortgage application runs as smoothly as it possibly can. The best advice we can give, is to suggest getting in touch and speaking with a mortgage advisor in Lincoln, prior to finding a new home. In doing so, you will know roughly how much you are able to borrow and what your monthly mortgage repayments will be.
There’s a lot to work through with the legal aspects of your property purchase, packing and dealing with estate agents. We regularly hear from customers that they were glad to have a Mortgage Advisor in Lincoln by their side throughout the mortgage process. Get in touch and we’ll see how we are able to help you!
Deciding to buy your first property is a challenging task. Therefore, you must take your time, look around for various options thoroughly and make an informed decision.
As you might anticipate, we believe there are some excellent reasons to use a mortgage broker in Lincoln. Whether the brokerage service is online, you can still pay a visit directly to the lender. Even in technological advancement, we find that most people still refer to a mortgage broker. Hence, we will take you through the pros and cons of both methods.
Firstly, a well-versed mortgage broker will take the time to have an initial conversation with the applicant to help him decipher if you are mortgage ready to make an application. When contacting us and gathering the necessary details, one of our mortgage advisors in Lincoln will make sure to shop around and get the best deals possible.
One of the most notable advantages of going with a mortgage broker is valuable expertise in the home buying or refinancing process. Mortgage brokers have ample industry experience to lean on when offering mortgage solutions to their customers.
Similarly, our mortgage broker in Lincoln also has access to try and find wholesale rates on home loans. These rates can be lower than the retail interest rates, helping borrowers save a substantial amount of money over the life of a home loan.
Most importantly, a Mortgage broker can be your point of contact from the time you first call them right up to when you finally get the keys of your house in your hands, and we will guide you through the entire process.
On the contrary, going to a bank helps save you a broker fee, saving yourself a reasonable amount. In earlier years, another significant advantage of a bank was that the branch manager knows an individual’s finances in and out. However, that all went by the wayside when credit scoring came in and is no longer the factor.
Likewise, some Lenders offer exclusive ‘direct-only’ deals that a broker would not have any access. Lenders do this to attract a wide range of applicants to make a good spread of business from consumers and brokers alike, turning exclusive products on and off when deeming necessary. On the other side, some products may only be available via the broker and not direct with the lender.
From 2014 onwards, lenders got restricted to sell mortgages on a non-advised basis to just anyone. Up until that point, many applicants felt like the non-advisors had been trying to force actual advice on them. They weren’t able to benefit from some consumer protection that goes with mortgage sales conducted by professionally trained mortgage advisors.
Lenders were coming to terms with and hence the issues present in these services led to a significant shift towards more applications getting made via mortgage brokers who are quick enough to offer you same day mortgage service.
You also need to check carefully if a lender is willing to lend you a considerable amount of money. It does not matter how good a lender’s deal might seem, but he should lend a significant amount. For this reason, people opt to go to an apt and professional mortgage broker in Lincoln.
Nowadays, mortgage applications are no more straightforward. Many factors make a case more complicated. A few of the examples are as follows:
– Poor credit history
– Too much debt
– Payday loans
– Self employed in Lincoln Income
– Mixed source of deposit (savings/gift)
– Let to Buy (keeping your current house and buying another)
– Contract workers/zero-hours contracts
– Affordability
In the past years, lenders could stand out from the competition by offering a better deal to the applicants. In the current era, this is different because the lending criteria vary from one lender to another. Some lenders lend more to Self Employed applicants or take a more empathetic view of their credit report’s previous discrepancies.
When you explain your case to an experienced mortgage broker in Lincoln, there is a possible chance that they have encountered the same thing earlier in the past, allowing them to personalize their service and help you through the process. With extensive experience in the field, your mortgage advisor will hopefully be able to recommend the most suitable lender for you at the lowest rate possible.
More than that, it is not just about getting the Mortgage. Even if the application itself is self-explanatory, we offer extensive experience and knowledge to our clients. For example, we will discuss how much we will deliver on the property they are buying. Our team of mortgage advisors in Lincoln can recommend other professional services such as Solicitors and explain the different types of protection and survey available.
Another significant advantage of using a mortgage broker is that the brokers are far more responsive than some lenders. Delivering personalized service is the differentiating factor between the broker and a lender.
Besides, another significant reason for hiring a mortgage broker is that it helps you save time. Most customers prefer a broker because they are too busy nowadays. they might need a mortgage but have no time to get it done so that our advisor will take the weight off for you.
You only need one application with a mortgage broker rather than individually filling out forms for every lender. Your mortgage broker can also provide a comparison of any loans recommended; guiding you to the information that accurately portrays cost differences, with current rates, points, and closing costs for each loan reflected.
Whether you are looking to remortgage in Lincoln or are a first time buyer in Lincoln, when lenders ask for your bank statements you can expect them to look for various different things. However, their one objective that stands above all, is their job to assess whether you are the sort of person who manages money responsibly and therefore likely to maintain regular mortgage payments.
So, with regards to gambling, what questions do we need to answer in particular?
Whether you have an annual flutter on the Grand National or a regularly use internet betting sites, clearly there is nothing illegal about properly licensed gambling.
With many of the bookmakers advertising on mainstream TV and radio, a lot of people see gambling simply as a mainstream hobby or pastime similar to many others.
However, it shouldn’t be forgotten that even the gambling advertisers urge customers to “please gamble responsibly”. This is the key to bear in mind when applying for a mortgage.
Thus, whilst it is not a lender’s job to tell you how to live your life. How to spend your money or indeed to moralise on the ethical rights and wrongs of gambling. They do have a duty (underscored by mortgage regulation) to lend responsibly.
Lenders need to prove to the regulators that they are making prudent lending decisions. So it isn’t entirely unreasonable of them therefore to expect the people to whom they lend to adopt a similar approach when it comes to their personal finances.
As touched upon previously, it is not illegal to gamble. Just because you have the odd gambling transaction on your bank statements, you won’t necessarily immediately be declined for a mortgage.
It is however, up to lenders discretion as to whether or not these transactions are reasonable and responsible. Thus they will particularly look at the frequency of these transactions, the size of the transactions in relation to the person’s income and the impact upon the account balance.
If these transactions are infrequent small amounts that make no significant impact on a regular credit bank balance, then they are not likely to be regarded as important.
As we’ve seen, basically lenders are looking at your bank statements to show how you manage your money. To help them establish whether this gives them either the confidence that you are financially prudent or the evidence that you are not.
Remember, lenders are financial institutions. They, either directly or as part of a wider group, often sell current accounts, overdraft facilities credit cards and personal loans. So they understand that these things can all play a part in prudent financial planning.
The key for a mortgage applicant is how these facilities are managed. For example, having an overdraft facility and occasionally using it, is not inherently a bad thing; regularly exceeding the overdraft limit – not so good.
Thus, lenders will look for excess overdraft fees or returned direct debits. This is because these would normally show that the account is not being well conducted.
The simple answer is – be sensible and, if possible, plan ahead. Typically, a bank would ask for up to three months of your most recent bank statements that show your salary credits and all your regular bill payments.
Thus, if you know you’re likely to want to apply for a mortgage in the not-too-distant future, try to make sure that you avoid any of the above pitfalls.
Take a break from gambling for a short while and work on presenting your bank account in the best possible light. Your mortgage broker can help you as there are some lenders who may ask for fewer bank statements than others or indeed some may not even ask for them at all.
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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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Lincolnmoneyman.com & Lincolnmoneyman 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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