Fixed-Rate Mortgages | Mortgage Advice in Durham

Fixed-rate mortgage advice in Durham

When you enter the mortgage world, you will find that there is not just one mortgage for everyone. They vary depending on different circumstances with some being more complex than others. In this article, we will be looking at just one of the types of mortgage, fixed-rate mortgages. This one has increased in popularity over the years and is seen to be the most common one.

What is a fixed-rate mortgage?

As stated in the name, a fixed-rate mortgage is where you are taking out a fixed-rate mortgage where your interest will be consistent throughout your mortgage term.

The duration of the mortgage term can vary depending on the deal you are on. It also depends on how long you fix your deal.

For example, the lowest-terms usually have the lowest interest rates. Even though this is good, it does mean you will need to renew your mortgage product via a Remortgage in Durham more often.

This is one of the reasons why fixing your mortgage deal over a lengthy period on a fixed-rate mortgage can be more beneficial.

Medium & long term fixed mortgages

It’s all down to whether or you are willing to look for a new fixed-rate deal every two to three years or not. A medium to long-term product is perfect for those who don’t want to frequently search for new deals. Like with many financial commitments, you will need to look at your current and future financial circumstances when deciding the duration you’re going to fix your mortgage for.

One of the popular choices amongst fixed rates is five-year fixed rates with one of the reasons being the security of consistent monthly payments. On the other hand, there are some negatives to this. If the interest rates drop when you are locked in, this will result in paying more than you would’ve been had you taken out a product with a shorter term.

It can be possible for you to fix in your mortgage for an even longer period of time if you feel this is the best option for you. In many cases, the options are limited, but you can find seven to ten-year fixed products. You may find these types of products aren’t usually very popular because you’re committing to a product for a whole decade! Within this time, better rates are usually to come available. Keep in mind that these are usually the most expensive fixed-rate products available to customers.

Fees to consider

Booking and mortgage arrangement fees

Along with interest rates and payments, you will have to factor in mortgage arrangements and booking fees.

It is likely that a booking fee would be charged if you do attend an appointment with a Mortgage Advisor in Durham. Unlike some mortgage brokers, we do not charge a booking fee, we offer all our customers a free mortgage appointment.

You will be charged upon completion, therefore, for those you take out short, fixed-term products, it could result in you accumulating a large number of costs just for sorting your mortgage. Whereas, with a medium fixed-term mortgage, you won’t be required to constantly pay for arrangement fees.

Early repayment charges

Also known as ERC’s, you can receive an Early Repayment Charge when you overpay your mortgage or pay back your mortgage too early.

In some cases, people forget about ERC’s or overpay by accident, while some overpay on purpose. This is just one of the cases where the positives of overpaying can sometimes outweigh the negatives.

When your fixed-mortgage term is coming to an end, you may find that there are much better interest rates already available. This where overpaying and receiving an ERC can be beneficial as you are accessing them better rates. In circumstances where it’s a limited product offer that you have received or a deal that you have found and you want to lock into right away, this is where an ERC can be helpful in the long run.

Normally, ERC’s aren’t too costly. The amount you will be charge is calculated by the remaining amount left on your mortgage. For example, if you have a total of £80,000 left on your mortgage and the ERC is 2%, you’ll receive a £1,600 early repayment fine. Overall, this figure does not seem too bad.

Our advice

Before you fo jump into a deal, as an expert Mortgage Broker in Durham, we do recommend you carry out some research. One thing that is best to avoid doing is going for ‘headline’ deals as these are a way to mislead with their cheap rates but the high arrangement fees!

Seeking Remortgage Advice in Durham can help you secure great fixed-rate mortgage products. As well as this, it can also provide you with further information on ways to save costs on various fees that are a part of getting a mortgage. Contact us to speak to one of our hard-working Mortgage Advisors in Durham.

To learn more about the other mortgage types out there, check out our article on the ‘different types of mortgage in Durham’.

The Pros and Cons of Using a Mortgage Broker in Durham

There are many reasons why you should use a Mortgage Broker in Durham. It can be helpful if you are taking that first step into the mortgage world, or going through the process the second time as you come towards the end of your fixed term as the process can be daunting sometimes.

With many options available for homeowners and home buyers, you ideally want to get it right first time, even with a lot of money involved.

Obviously, we believe that our tailored service as a Mortgage Broker in Durham would be helpful during the mortgage journey, in particular, First Time Buyers in Durham.

Even though we are experts in assisting customers through the process, it’s also understandable that the service is not for everyone and some may still wonder how we can help.

With this in mind, we have created a helpful guide about why approaching a Mortgage Broker in Durham could benefit you in your situation and why some people decide to go direct to the mortgage lender instead.

What are the pros & cons of using a mortgage broker in Durham?

Cost-Effectiveness

Deciding to go direct with the mortgage lender and finding your own mortgage deal can save you more money than approaching a Mortgage Broker in Durham. However, mortgage brokers may charge a fee but can be based on circumstances.

Being experienced in going through the process, having an easy case and lengthy knowledge may mean that it’s best and cheaper to go through the process yourself. This can be an issue if you have a more complicated case and people who don’t understand the lender criteria.

Going through the mortgage process with little to no knowledge could either result in you being on the wrong deal or ending up unsuccessful when applying for a mortgage deal. Either circumstance could mean spending more money than you have to, or damage your credit score which could negatively effect your chances of applying for a mortgage further down the line.

A dedicated Mortgage Advisor in Durham strives in getting your recommendation right the first time by finding you the best and cheapest deal on offer. As much as this service comes with a fee, you could find that you save a lot of money in the end.

Local Bank Branch Relationships

One of the reasons why many older customers decide to approach a bank is due to how the mortgage process was previously run. Prior to the introduction of online banking apps and modern technology, as a loyal customer, you may approach your local branch a lot where you would speak to the same people.

If you were looking to get a mortgage, you would go through the bank manager and speak to them. They had extensive knowledge of your finances and would be the ones to approve a mortgage for you. Now, many things are done digital including credit scoring.

Because of advanced technology within these banks, it means that the bank manager would not personally go through your case. It would be carried out through an online system which will determine if you are eligible for a mortgage or not. Regardless of what bank you are with, everyone is treated fairly.

Exclusive Mortgage Products

Following on from the previous point, there is an assumption amongst people that going direct would mean they are open to the best and exclusive deals. This is true to an extent, however, they will offer the best deal from their own company.

Not every mortgage lender is a bank and there is a large variety of options to choose from. Therefore, the most suitable deal your bank can offer, might not be the best one for you outside that bank.

This is another reason why taking out tailored Mortgage Advice in Durham can be a huge benefit to you. With an expert advisor by your side, they will be able to go through your case and find you the deal amongst our large panel of lenders that is perfect for your circumstance.

On the topic of exclusivity, approaching a Mortgage Broker in Durham can give you access to deals that you can’t find anywhere else. If you are a first time buyer, looking to remortgage in Durham or have a specialist case, there are many options available to you through an expert mortgage broker.

Changes to Regulation & Consumer Protection

After the 2007-08 credit crunch, the mortgage market needed to change. The 2014 Mortgage Market Review, stated that lenders could not sell mortgages to their customers without regulated advice.

This policy meant you couldn’t just approach a bank to tell them you want a mortgage and be accepted without the important checks. Furthermore, it meant that you couldn’t be granted a mortgage by any member of the bank, which was a regular occurrence, regardless of if they were qualified to do so or not.

Along with these new policies, consumer protection was introduced which was initially not provided to you by the bank. This means that you, as the customer, as the right to complain to the Financial Ombudsman if you feel misadvised in any way. The Financial Services Compensation Scheme is also available to you to make a claim.

Having this in place can assure customers who approach both mortgage brokers and mortgage lenders that they are in safe hands and are receiving professional and regulated advice.

Booking an Appointment with a Mortgage Advisor in Durham

One factor which can be a disadvantage to mortgage lenders but is beneficial to mortgage broker is that it can sometimes take months to try and speak to an individual at a bank. Whereas, getting in touch with a Mortgage Broker in Durham, like ourselves, can provide you with a more quick and responsive service that keeps you updated constantly about your mortgage process.

We are proud to offer a tailored service where a member of our team will contact you at a time that is best for you and your lifestyle. From morning, until late, 7 days a week, our expert Mortgage Advisors are here to help. This can sometimes include bank holidays!

Depending on availability, you may be able to book yourself in and have the appointment on the same day! However, it’s up to you if you want to speak to someone today or in a few days time.

As a part of our tailored service, our advisors have flexible availability. This means you can book yourself in around your 9-5 or around any other commitments. Our quick and simple book online system is great if you are on the move and need to book an appointment.

Responsiveness is an important part of Durhammoneyman. Whatever mortgage process you are going through, our friendly team will keep you in the loop. Your advisor will let you know of any changes that could arise.

The public’s views on mortgage brokers has changed due to Mortgage Brokers in Durham, like ourselves, providing an open and honest service to all customers looking to start their mortgage journey.

Handling Complex Scenarios

Through our time providing Mortgage Advice in Durham, we sometimes speak to customers who have a more complex situation than your average case. Below are just a few common situations we have encountered over the years;

• Mixed Deposit (Savings & Gift) – This means auditing two different sources.
• Applicants, who are on zero hour contracts – Will there be a consistent income?
• Making a Second Purchase – Can they afford to make that additional purchase?
• Self-Employed with No Fixed Income – A common challenge for Self-Employed applicants.
• Poor Credit History – A lender will not look favourably upon an applicant who has mismanaged payments in the past.
• Affordability – Can they afford a mortgage full stop?

In previous years, mortgage lenders could easily offer you deal that was better than any other lenders. Now, it’s not all about which deal you go with, it’s if you match the criteria or not.

Even if you find a deal that is reasonable, it doesn’t mean you match the criteria for it. In order to determine this, the lender will perform either a hard search (resulting in a footprint on your credit file? or soft search (leaves less of a footprint on your credit file).

One thing that could damage your credit file is being declined for an agreement in principle when applying for a mortgage. On top of that, if you are declined, it’s very unlikely that you will be given a reason for this which can be frustrating.

If you do speak to a Mortgage Broker in Durham like Durhammoneyman, we will be able to go through your case before, so you are prepared and in a position where you have a better chance of being accepted.

Here at Durhammoneyman, we have a large panel of lenders who offer a range of mortgage products. We will be able to match you up with deals and look to get you an agreement in principle. If you get your agreement in principle through Durhammoneyman, it will usually take no more than 24 hours after your free mortgage appointment.

Remember, having an agreement in principle doesn’t always mean you’re guaranteed to be agreed, nor does it guarantee a mortgage in the end, but it does provide safety for your credit file to have an expert go through your file beforehand. As a Mortgage Advisor in Durham, we always aim to get your recommendation right the first time.

In Conclusion; Should I use a Mortgage Broker in Durham?

At the end of the day, it’s your decision. As mentioned, there many advantages and disadvantages of going with a Mortgage Broker in Durham. On the other hand, there is many pros and cons to going direct as well. It all depends on how quick you want your service to be, and how secure you want to be.

Through our time as a Mortgage Broker in Durham, we have built up a positive reputation and strong relationship with many customers looking to begin their mortgage journey. If you are a first time buyer in Durham, coming to the end of your fixed term, looking to remortgage in Durham, we have done it all!

Here at Durhammoneyman, we offer fast & friendly advice that is FCA regulated. Simply book online or get in touch to book yourself for a free mortgage appointment or remortgage review with one of our brilliant advisors. Our goal is to fulfil your mortgage needs, by providing you with advice, at a time that best suits you, subject to availability.

For more information about our service, check out our fantastic customer reviews. You can have a customer insight on how our service has helped many individuals on their mortgage journey. We also offer free financial education through our YouTube Channel, MoneymanTV.

A Guide to Remortgages in Durham: Top Reasons to Consider

Remortgage Broker in Durham

The mortgage journey can come with its highs and lows, however, the ultimate goal will either involve you settling down in your dream home to start a family perhaps, a step up to get you further up the property ladder or an investment purchase to provide another income source.

Whatever route you may go down, both will eventually come to a point where your mortgage term will end. You might sell up and upsize/downsize into a new property. If you are a landlord, you might want to sell your portfolio to the tenant or another buyer and look at other options. One option that is the most popular is a Remortgage.

What is a Remortgage?

It’s best to start by understanding what a remortgage is. This term is the act of paying off a pre-existing mortgage using a new mortgage. There is a range of options when taking out a Remortgage, some being more major than others.

Below is a quick guide that we compiled that includes all the options you could when it comes to taking out a Remortgage utilising the 20 years plus knowledge of our resident “Moneyman” Malcolm Davidson (host of our YouTube channel MoneymanTV).

Remortgage For Better Interest Rates

So, your initial mortgage deal will usually last 2-5 years and include low fixed rates or possibly discounted rates. There might be a possibility that you will be placed on a tracker mortgage which means the interest rate will go off the Bank of Englands’ base rate.

If you aren’t on a tracker mortgage, you will likely be on the lenders Standard Variable Rate when your term ends. Also known as SVR, this is a mortgage with an interest rate that might change depending on how much the lender wants to charge. Unlike tracker mortgage, this will not follow the Bank of England’s base rate.

These can be seen as more expensive routes to take, which is why a lot of people may look at Remortgaging for better rates in order to potentially save money on their monthly repayments.

Remortgage for Home Improvements

You might find yourself in a position where you are 2-5 years into occupying your home and feel something isn’t right. It might be that you need an extra room or bigger living space for your kids/belongings. It might be some form of renovation such as getting a kitchen, office or loft conversion. In this situation, many look into releasing their equity with a Remortgage to cover the costs instead of to moving into a larger house.

The option to release equity in order to fund/manage your own projects might seem quite intimidating especially when getting planning permissions, however, it can be seen as more rewarding and less stressful in comparison to finding your new home, selling your current one and moving your belongings.

Furthermore, funding towards home projects that could make the house look a lot more impressive and appealing can be beneficial if you will sell it up or rent it out in the future as the property could increase in value.

Remortgage for Changes to Your Term

In some circumstances, many might look at getting a better mortgage term by reducing the length or switching to a more flexible product which is where they could Remortgage in Durham. The longer your term, the lower the payments will be over time. Therefore, reducing the length does mean you won’t be paying back your mortgage for as long so you aren’t exactly tied down forever, however, your monthly repayment will be a lot higher.

An option that provides benefits that can prove endearing to some homeowners is having a more flexible mortgage when they remortgage. This could give you the chance to overpay which could result in paying your mortgage off as quick as you’d like also being able to pass the same mortgage and rates over to another property, if you decide to move at any point in the future.

Although a flexible mortgage might sound perfect, it likely will come in the form of a tracker mortgage. As mentioned before, this mortgage follows the Bank of England base rate. This means that payments could fluctuate on a monthly basis depending on interest, therefore making them a little unreliable.

Remortgage to Release Equity

Equity is something that is in any property. The way the amount is worked out is through the difference between what is still owed on the mortgage and the current property value.

Like we mentioned before, this equity can be used to fund home improvements, however, there are more options for you out there.

You may equity is used to cover long-term care costs, to supplement their income, to have a holiday, to pay off an interest-only mortgage or to have free spending money.

If you are a Buy to Let landlord, you might remortgage to release equity as a way of covering your deposit for buying a future property for an addition to your portfolio.

For customers who are over the age of 55 and have a property that is worth at least £70,000, it may be worth looking at your options for Equity Release in Durham. Speak to a qualified later life mortgage advisor to learn more about Equity Release & Lifetime Mortgages.

Remortgage to Consolidate Debt

Some people use Equity Release for paying off any unsecured debts that they have accrued over time.

Paying off unsecured debts may sound like a simple solution, Debt Consolidation not only bases both on the amount you’re owed and the value of the property but also on your credit rating. Therefore, it could mean you are limited in the amount you can borrow.

On top of this, you will need to borrow more than your outstanding mortgage amount in order to pay off your previous mortgage and your debts. Because of this, your monthly repayments will potentially be higher. This may not be the best situation to be in, you can be assured in knowing that there are some options out there should you find yourself in an unfortunate situation.

In the case where you have damaged credit, there are still options to choose from, however, these may be difficult and require very Specialist Remortgage Advice in Durham before proceeding. Be aware that this might not be guaranteed.

You should always get mortgage advice before choosing to consolidate and secure any debts against your home.

Experienced Mortgage Advisors in Durham – Get in Touch

Getting in touch with an experienced and trusted Mortgage Broker in Durham would be very beneficial if you are reaching the end of your term and are exploring the options when it comes to Remortgaging.

With an advisor by your side, they can provide you with the support you need when looking into your circumstances and future goals so then you have the best route for you ready in the next step of your mortgage journey. We always aim for this process to be smoother and quicker than your first time.

Why isn’t it easier to get a Mortgage in Durham? | Mortgage Advice in Durham

Getting a Mortgage in Durham

Durhammoneyman has had more than 20 years of experience in the mortgage business. In this time, our heaps of experience and knowledge through the years have allowed us to help many different and unique customers get through difficult mortgage obstacles.

Therefore, no matter what personal situation you are in, we have probably encountered a similar one before. A few of our services include first-time buyers, remortgage, and self-employed mortgage advice in Durham.

Getting a mortgage can become complex if you are unsure of what you are doing. The reason for this is that there are thousands of different lenders with their own individual lending criteria, and it can be difficult to find the right one.

You’ll find that by instead opting to speak with a mortgage broker in Derby, you’ll be opened up to a wider variety of mortgage options, with criteria that your dedicated advisor will be able to match you up to.

Going to a lender for a Mortgage in Durham

Sometimes, you will find you can pass a lenders credit scoring system easier than you would from another, it all just depends on the lender. There are parts of the market that different lenders love to focus on, specific niche markets.

It’s common to find that the stricter the lending criteria are, the lower the supply rates are. The criteria can be stricter to match than others. Therefore, don’t feel disheartened if you are struggling to find a lender that will accept you.

It can be hard to qualify with lenders who have strict criteria. When a competitive deal has been offered to you, it will always have a tight margin. This is due to the fact that the lender needs to know the customer will be able to afford the mortgage and lenders want to make a profit off this and not lose money.

Lenders with Low Rates

When it comes to high street lenders offering the cheapest rates, you will find they will always increase their earnings from their borrowers. As soon as a mortgage has been accepted, they will gain more profit by selling you more of their products. Some of the products include bank accounts, unsecured loans, credit cards, and Insurance.

A common occurrence that you may find with mortgages, is the lowest rate of interest often comes with expensive set-up costs. This is why people often stay away from these products. When a lender grants you a mortgage, the main thought they have will be about their profit.

On the contrary, a Mortgage Broker in Durham will always have your best interest. Our knowledgeable and caring team knows all the secrets to save both your time and your money. We will work hard to find the best deal available that fits your circumstances.

Difficulties When Looking to Remortgage in Durham

In some cases, not everyone can just remortgage somewhere else and this is due to many reasons:

• Breakup with a partner
• Your household income may be less than it was at the start of the application
• Since taking out a mortgage, the applicant has had a default or CCJ
• There has been an decrease in value of the home since it was bought

Lending Criteria and the Economy

Matching lenders’ criteria, depending on the current performance of the economy, can affect how easy or hard it is to get accepted a mortgage. If the economy is suffering, lenders will tighten the margins and vice versa when the economy is doing well. Depending on when you are applying, it can sometimes be hard to obtain a mortgage, yet previously, mid-2000’s, it was too easy. This was prior to the credit crunch where lenders were granting ridiculous mortgages to people who couldn’t afford one at all.

As well as matching the lender’s criteria, the current state of the economy is another factor that can affect your chances of being accepted for a mortgage. If the state of the economy isn’t doing well, lenders will tighten the margin and vice versa when the economy is performing well.

There are times when obtaining a mortgage can be difficult. It just depends on when you have applied for it, whereas, in the mid-2000s, it was too easy. Before the credit crunch, lenders were granting ridiculous mortgages to people who couldn’t afford one at all.

Lenders took a completely different view and tightened their criteria after the credit crunch. The requirements included a 25% deposit which meant getting on the property ladder was unattainable. This tempted customers into renting due to the brisk increase in interest rates.

Mortgage Broker in Durham

We have become knowledgeable about what lenders are looking for in mortgage applicants through our valuable experience. Credit scoring is something many high street lenders now do to try and save time and money. Furthermore, this method gives the lender confidence in their ability to lend. 

Speaking to a Mortgage Broker might be the best option if you are struggling to match the lender’s criteria. As a Mortgage Broker in Durham, we can provide you with options that we know will increase your chances of your mortgage application being successful.

With a range of simple ways to achieve this, giving us a call could bring up a step closer to securing a mortgage deal. Get in touch and speak to an experienced Mortgage Advisor in Durham and potentially start your journey on the property ladder. 

Lending Criteria Mortgage Advice in Durham

Mortgage Payment Holidays | Mortgage Advice in Durham

Mortgage Payment Holiday

At the start of the Covid pandemic, the Government promised that all borrowers would be allowed a three-month mortgage payment holiday if they needed it. Most lenders followed the Government’s guidelines and did their best to help their borrowers during these hard few months.

We feel that it is best to create a summary of what mortgage payment holidays are, what lenders are doing and who can provide you with help and guidance through the coming months.

On that note, we feel like this is a good time to talk about what mortgage holiday payments are and how they can help you with your mortgage payments.

What is a Mortgage Payment Holiday?

They are quite simple. A mortgage payment holiday is a set-period, agreed upon between you and your lender, bank or building society, where your mortgage payments are deferred. In this situation, the set period should be around three months.

You will still have to pay back these payments. Over the period, you will receive interest which will be added onto your loan at the end of the payment holiday whilst your capital balance will not decrease. So, your overall mortgage loan will slightly increase. So you save money in the short term but in the long term, it may prove expensive.

Once you feel like you are ready to start paying back your monthly mortgage payments, either your monthly mortgage payments will be recalculated at a higher level or your mortgage term could be increased. Lenders prefer to not increase your mortgage term as it could put you past their standard retirement ages.

You may even be allowed to pay off a lump sum later on in the year to get your monthly mortgage payments back on track to how they were prior to your payment holiday.

Mortgage payment holidays are available for borrowers with both residential or Buy to Let Mortgages in Durham. This really helps out landlords as they now have help if rental payments are affected.

The Government’s Proposal

Here is the Government’s proposal following the COVID-19 outbreak:

• Mortgage lenders will offer an automatic three-month mortgage payments holiday for borrowers who have been impacted directly or indirectly by COVID-19
• The mortgage payment holiday will apply to customers who are up to date on their payments, not in arrears, and wanting to self-certify that they are impacted by COVID-19
• This means that lenders will not complete an income and expenditure assessment, or an assessment of alternate payment options as ordinarily required under MCOB
• This proposal will allow lenders to be more responsive to customer needs and offer forbearance in a simple way to customers in an environment where the operation of collections teams made be also impacted by COVID-19
• Customers will be made aware that interest will accrue in the holiday period and they will need to make up deferred payments in the future
• Customers who wish to undertake a full assessment of their ability to pay or financial difficulty may still do so.

How do I apply for a Mortgage Payment Holiday

Even if you had a mortgage payment holiday before, we always recommend speaking to your Mortgage Advisor in Durham. They will sort out everything out for you and work out whether you actually need to take a mortgage payment holiday. You can also go directly to your mortgage lender and enquire about taking one but this may not benefit you as you may not even need one. The main thing is not to panic and explore all of your options before rushing into anything.

Here are the steps you need to take if you won’t meet/aren’t meeting your monthly mortgage payments and have been directly affected by the COVID-19 outbreak:

• The customer would contact the lender and inform them that they are being impacted
  by COVID-19
• The lender would accept these details from the customer and offer an automatic
  three-month mortgage payment holiday
• No evidence is needed for the lender
• The lender makes the customer aware that interest will accrue and will be contacted at the end of the three months to complete an assessment of the customer’s circumstances
• At the end of three months, an arrangement to pay will be agreed with the customer according to their circumstances to recover any shortfall, also ensuring that the mortgage remains affordable and sustainable
• The lender notifies the customer that if they wished to complete a full assessment now, there may be other forbearance options more suitable to the customer.

For more useful information on how the coronavirus could affect your mortgage click here.

Will a Mortgage Payment Holiday impact my Credit Score?

In most cases yes, they can give a negative effect to your credit score. However, you are taking one because of a virus so lenders shouldn’t let it damage your score.

To ensure that this is the case, before taking out a mortgage payment holiday, you must contact them. You need to record their answer as well as the date, time and the name of the person that you spoke with. This will avoid any confusion down the line if anything changes. It all depends on your lender, there is no guarantee that every lender will say the same thing.

Will I still be able to Remortgage or take a Product Transfer with my lender?

You would’ve thought that everything would continue as normal, however, all lenders are now avoiding all remortgages and product transfers during a mortgage payment holiday.

This will affect borrowers approaching the end of their existing product as they may be forced to move on to a higher lenders variable rate. This could mean that borrowers who act too early and jump into a mortgage payment holiday deal straight away could end up accruing interest on a costly variable rate.

This is another reason why we say don’t rush into anything! Take it slow and evaluate your options with an expert Mortgage Advisor in Durham first, they will make sure that you actually need to take out a payment holiday first before diving in headfirst. There are lots of mortgage options out there so have a look first with your mortgage Broker in Durham.

What are my other options?

Some lenders could offer you a temporary switch over to interest-only in order to reduce your monthly payments but not to add any more to the loan amount by still servicing the interest payments each month.

You don’t need to put all of your mortgages onto interest-only, but doing so could help you out financially.

If you have savings, remortgaging onto an offset basis could really help you out, you will be cutting down on monthly payments massively. For example, if you have a £250,000 loan and £50,000 in your savings, you would only pay interest on £200,000.

This may all may seem a bit stressful and it this may have come around faster than expected, however, you should try to take it slow and calm down. As your Mortgage Broker in Durham, we are still here to help and relieve you of all of that stress. Remember, we are still open as usual operating 7 days a week. Receive a free mortgage consultation with a Mortgage Advisor in Durham today, we hope that we can help you out!

Mortgage Advice in Durham

How to Improve your Credit Score in Durham

Mortgage Advice in Durham

What is a credit score?

A credit score is a tool that lenders use to measure an applicants ability to afford a mortgage. The higher your score, the more likely it is that you’ll be accepted for a mortgage. Which means that if you have a lower score, your chances of being accepted decrease.

Even though having a good credit score may look good on the outside, you must know that each lender has their own individual lending criteria and it’s more than likely that you won’t meet all of them. So sometimes it’s also down to your circumstances and not just your score.

Matching lender’s criteria

Most lenders’ criteria are completely different from one another, lenders have almost developed their own niche market. You could end up matching to a handful of them or maybe only a couple. As long as you end up securing a great mortgage deal that is all that matter though and it’s your advisor’s job to help you do that.

Whether you go with your bank’s in-house advisor or a Mortgage Broker in Durham, your personal and financial situation will be evaluated and then compared with lenders’ and their mortgage products.

We would always recommend approaching a Mortgage Broker in Durham before going straight to your bank’s in-house advisor and this is because your bank can only offer you their own products. If you choose a broker like us, we are able to access thousands of different mortgage deals through our large panel of lender’s. Once we have your details, we will try our hardest to match you to a lenders’ criteria.

If you are struggling to match a lenders’ criteria, it could be down to numerous different things. The most common reason why people don’t meet lenders’ criteria and get declined for a mortgage is because of their low credit score. If this is the case, then you need to try and improve it.

Improving your credit score

Avoid unnecessary credit searches

Having unnecessary credit searches on your file could have a negative effect on your credit score. Lenders’ don’t like seeing that you are repeatedly checking your score, they may think that there is a reason for it and they could even start asking you questions about it during your application process. Even using price comparison websites could damage your score.

On a side note, if you are applying for a mortgage, we strongly recommend that you avoid applying for any form of extra credit in the meantime. Paying back owed credit before your application will look good on your application, however, borrowing/paying back credit during your application will have a reverse effect. If you borrow credit, some lenders’ could think that you cannot afford the deposit and are relying on the credit to help you.

Are you registered on the Voter’s Roll?

A great way to improve your credit score is to register onto the Electoral Roll, it indicates stability and lenders really like that. It’s really easy to get yourself registered and the fact that it can increase your credit score, you’re missing out if you don’t take the opportunity.

If you are already registered, you should check that all of your information is correct as lenders will easily spot misspellings and an incorrect address.

Don’t run too close to your maximum limit

Maxing out your card each month will negatively impact your credit score. If you are using a credit card, a lender would much rather that you pay off the balance in full each month as it shows that you are good at managing your money. If you are exceeding your credit limits or overdrafts, your lender won’t think that you take your finances seriously. This could massively impact your credit score, especially if you get declined by a lender due to this reason.

Check that your address is up to date

When people move home, especially from their parent’s house, people often forget to update all of their address’. When you forget to update your address with a previous credit provider, it can appear that you live in two different properties at the same time. This can hurt your credit score once lenders see this so make sure that you are keeping on top of what address’ are linked with each of your accounts.

Close down your unused credit accounts

Do you have any store/credit cards that are no longer in use? If you do, then you should contact the provider and get them to fully close your account(s). Having these accounts open could be doing your credit score more harm than good. However, this could also still have a negative effect on your credit score as the credit reference can’t really tell if it’s you closing the account or the provider. Don’t worry though, it’s a good thing to check up on as if you have lost a card and didn’t realise then fall victim for fraud, you could end up having a worse effect on your score.

Remove your financial link to others

If you are financially linked to a family member or ex-partner your credit score could be affected without you even knowing. However, if the account is still live, you cannot remove your link just yet. If you want to remove any of these links, then you should get in touch with the credit reference agencies and make a request.

Summary

More often than not, applicants see credit scoring as an unfair way of determining the success of a mortgage application. For example, you may have a low score due to personal circumstances, which applicants think is unfair. As a Mortgage Broker in Durham, we mostly see that it’s people that are Moving Home or Self Employed struggle with their credit score. However, if this isn’t your mortgage situation and you still need help with improving your credit score, you know to get in touch with.

Sending an up-to-date credit report to your expert Mortgage Broker in Durham could prove extremely beneficial to your mortgage journey. A great tool that we always recommend to our customers is checkymyfile.com.

The more your advisor knows about your finances the better. Also, there are still some lenders that prefer to operate the old-fashioned way and will manually assess your application. They will still have rules that they stick by about the number of defaults and CCJ’s that they will allow.

A Mortgage Broker in Durham, like us, likes to do things the new way and will always aim to deliver you the same Fast and Friendly Mortgage Advice service that you are all used to. We hope to hear from you soon.

Product Transfer V Remortgage Advice in Durham

What is a product transfer?

If your current mortgage deal is approaching its end your mortgage lender should offer you a new deal to stay with them, this is known as a product transfer. You are under no obligation to stay with your current lender you can shop around for deals wherever you want.

Are you rewarded for being loyal?

Unfortunately, most lenders don’t reward you for your loyalty. It’s most likely that they’re offering First Time Buyers a better rate than existing borrowers like you.

This is why we always advise that you take things slowly and get Mortgage Advice in Durham before accepting an offer. It can be hard to find a competitive deal with just one lender and that’s why we advise in shopping around first or approaching a Mortgage Broker in Durham.

A Mortgage Broker in Durham, like us, will search through thousands of mortgage deals until they find one that matches both your personal and financial circumstances. Here at Durhammoneyman, we will always have your best interests at heart and will try our absolute best to secure you that 1/1000 mortgage deal.

Tempted by an online switch?

Whilst swapping to a new deal with your current lender online may be easy, it is always in your interest to see what other deals you may be eligible for. Lenders will always try and tempt you to take their online offer over getting Mortgage Advice in Durham. They probably know that you can get a better deal but why would they want you to know that this is why taking Mortgage Advice in Durham can really help!

When you go to your Mortgage Broker in Durham, like us, you are guaranteed consumer protection which you don’t benefit from if you decide to go ahead with an online switch, you don’t receive any of this.

You’ll be opting out of advice

In past, we have seen that some customers just go for the most convenient option. This often leads to them missing out on a great deal that they could’ve accessed had they taken things slower or approached a Mortgage Broker in Durham.

You should always take advice, especially if it’s free! We offer a free mortgage consultation in Durham and can do all of the shopping around for you across our vast panel of different lenders in order to find an amazing mortgage deal.

If you end up on the wrong deal by accident or realise that you could’ve had a better one down the line, you can’t complain as you chose to opt-out on advice and do everything on your own through an online switch. Switching deals in the future will cost you a lot more than had you taken Remortgage Advice in Durham.

Open & Honest Mortgage Advice in Durham

We have been working within the mortgage industry for over 11 years now and know exactly how to find you a perfect mortgage deal. We can arrange everything for you and help get the ball rolling with your product transfer.

Even if your requirement seems straightforward we always recommend that you take Mortgage Advice in Durham. A second opinion costs nothing and making a mistake when taking a new product can be costly.

90% of the time savings can be made and this can be done by simply searching the market for a new deal. Let your Mortgage Broker in Durham help you secure that amazing deal, we can’t wait to hear from you!

Remortgage Advice in Durham

How to Make an Offer on a Property in Durham?

The Basics

When you have come to the end where you are ready to make an offer on your first home, it is key to make sure you have got in touch with a knowledgeable mortgage advisor in Durham where you can talk about your personal and financial situation.

By doing this, you are able to get the best advice you need to progress throughout your mortgage and home buying journey. Along with this, your dedicated mortgage advisor will be able to find the most suitable deal for you as soon as your offer has been made.

A Mortgage Agreement in Principle

Majority of the time you will find that a cash buyer has more of an advantage when it comes to buying a home. The mortgage process involves time and careful handling of paperwork, which can usually be avoided by paying for a property outright.

With this, you will need to have a lot of disposable income, which you may not afford to do. If you’re going for the mortgage route, it is important to obtain a mortgage agreement in principle beyond making an offer.

By having a mortgage agreement in principle to hand you are presenting yourself as being a serious buyer and have been prepared to start the mortgage process ahead of time.

Not having this documentation to hand can show a seller that you aren’t prepared as another potential buyer who may have one. As well as this, any credible estate agent will want to see that you have an agreement in principle.

Situations like these can be the reason why speaking to a mortgage broker in Durham could help you during the home buying process.

As soon as you have found a property that you are interested in making an offer on, our team will be able to sort out your agreement in principle within 24 hours of your initial appointment, in some cases, the same day!

Don’t Give Up On Finding Your Dream Home

The negotiation process is paramount in buying a property. If your first offer is rejected, don’t worry, as this can be common and there may still be lots of other opportunities out there for you like making a revised offer.

In the case where your increased offer is also rejected, you may need to increase it even more or call it a day. As a mortgage broker in Durham, we do find that newly listed properties will come with sellers who aren’t likely to budge in comparison to a long-listed property that isn’t selling.

To get an overall idea of the price you could be paying for a property, it may be best to check property sale websites to get an insight into sold house prices from that area. You may be able to find these prices from Land Registry which means they are reliable for comparison.

On some occasions, you may find that some houses may end up selling for far less than they are actually worth, because of repossessions, being sold to a tenant for a discounted price or something else like an inter-family sale.

Speak to a Mortgage Advisor in Durham today

If you are wanting further information regarding the best ways to make an offer on a property and are looking for some assistance with starting your mortgage journey as a First Time Buyer in Durham, you may benefit from getting in touch with a dedicated mortgage broker in Durham.

Our team are available 7 days a week to answer your questions and we have appointments on offer at times that best suit you. Book your free mortgage appointment today to discuss your options with a mortgage advisor in Durham.

Mortgage Broker in Durham

Latest Government Guidelines on the Property Market

Mortgage Advice in Durham

Coronavirus has put the world on a brief pause, even the mortgage market has been held up forcing everyone’s mortgage applications to come to a temporary halt.

However, things are slowly starting to resume to their normal ways and the market is providing some great mortgage/remortgage deals. In fact, interest rates are at some of the lowest that we have seen them in over 20 years. Whether you are a First Time Buyer who was about to start the mortgage process or a current homeowner halfway through Moving Home, now is a perfect time to get the ball rolling again!

The government have just issued some new guidelines in regards to the property market to get it up and running again as we gradually phase out of lockdown. This is positive news.

Property Market

To summarise this week’s position:

• Surveyors are now permitted to go back to work. This is brilliant news as this has been a real sticking point for the past couple of months
• Viewing properties is now permitted but estate agents are being told to encourage virtual viewings online where possible
• Homeowners are permitted to prepare their properties for sale
• Removals companies can start work again
• Trades people can operate in homes again – good news if you are planning home improvements

All of the above relaxations are subject to additional specific health and safety guidelines and social distancing.

Mortgage Market

In terms of mortgages at the moment:

• Surveyors have an enormous backlog of work to catch up on so things will return to normal very slowly
• Availability of high loan to value mortgages is still limited compared to pre-Lockdown. Some Lenders have increased their maximum loan to values this week though which is a positive Interest rates are very low so many customers who can get a mortgage are locking in on 5 year deals
• Low loan to value mortgages still readily available – lenders are trying to lend where possible
• Rules on lending to furloughed workers have tightened and some Lenders are pulling back on debt consolidation also

Things will take a while to go back to how they used to be but for now, we are heading in the right direction. The property market has already shown signs of improvement, for example, you can now buy a house, carry out property surveys, etc.

If you are currently looking for a mortgage/remortgage deal, you are in a great position as there are thousands of amazing deals on offer.

Mortgage Broker in Durham

Your local Mortgage Broker in Durham is here to offer you a helping hand through these tough times for you and your mortgage. A Mortgage Advisor in Durham will go above and beyond for you in order to try and secure that 1/1000 mortgage deal that will benefit both your personal and financial situation. We have more than 38 lenders on panel that we can access in order to find you an amazing deal.

By popular demand, we just want to talk about remortgaging for home improvements. People are realising that Remortgaging in Durham is not as expensive as they originally thought, in fact, it could save you money down the line. You are basically rolling onto another mortgage deal; your monthly payments will go up, however, this could only be by £100-£200 extra a month, plus you’ll get a lovely extension/conversion out of it. Mostly, this applies to current homeowners who are thinking of starting a family or wat to expand their current one.

Are you approaching the end of your current mortgage deal? Do you need another great deal to roll onto? If so, then now the perfect time to approach a Mortgage Broker in Durham like Durhammoneyman. Once we have all of your details keyed in, we can pass you straight onto a Mortgage Advisor in Durham who will provide their full expert help and support throughout the whole of the mortgage process. Contact us today, we can’t wait to help you!

Mortgage Broker in Durham

Remortgage for a Home Office | Mortgage Advice in Durham

Remortgaging your home

The outbreak of COVID-19 has left most people having to work from home. Surprisingly, a lot of people are warming to this change of scenery and are hoping to continue working from home after lockdown.

Technology has made it so that you can access everything you can from in an office from home. Communication between you and your coworkers is just as easy, you can video call in the click of a button.

How to remortgage for a home office

If you are interested in remortgaging for a home office, you will have to remortgage your property to raise additional funds. These funds will be used to convert your chosen room into an office space. People usually prefer to convert their spare room or their garage.

To get the ball rolling, you are going to need to find a remortgage deal to switch onto. This is so much easier with a mortgage broker by your side as they will search through thousands of mortgage deals on your behalf and sort out everything for you. A Mortgage Advisor in Durham at Durhammoneyman will always have your bests interest at heart and will work around your personal circumstances to help you secure a perfect remortgage deal.

If you approach your bank, you will only have access to their deals and their deals only, however, a Mortgage Broker in Durham like us have access to over 38 different lenders and thousands of different remortgage deals.

The costs of a home office

You will have to get an estimate of how much you think the works for our home office is going to cost. Depending on the size of the room and how much work needs doing on it, the price could range from £5,000-£15,000.

Now is a perfect time to remortgage as the interest rates have never been so low. Assuming you manage to secure a deal with a 2% interest rate for a 25-year mortgage term, if you borrow £5,000 you will probably only be paying back £20 extra a month. If you borrow something like £15,000, you shouldn’t be paying back more than £65 extra a month.

Are you looking to remortgage for a home office?

On top of saving more money by looking for a remortgage deal now, you are also saving money in the long term. You won’t be driving to and from work every day, whether it’s far away or close by, you are still saving money and also doing your bit to reduce your carbon footprint.

Parents may usually rely on an after school club or a childminder to look after their children, however, a home office will allow you to work around the school routine which could save you even more money.

We always recommend that you speak to a Mortgage Advisor in Durham before making any decisions. We do offer a free mortgage consultation, so if you are curious about the costs and how you can go about remortgaging, get in touch and speak with a Mortgage Advisor in Durham today.

Remortgage Advisor in Durham