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.
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).
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.
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.
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.
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 use the Equity Release as a way of covering your deposit for buying a future property for an addition to your portfolio.
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.
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.
There are lots of different types of mortgages, with some being more complicated than others. In this, article, we are going to look at fixed-rate mortgages and how they could be right for you.
A fixed-rate mortgage is exactly what it says on the cover. By taking out a fixed-rate mortgage, your interest rate will remain at the same rate throughout your mortgage term.
The length of a mortgage term can differ from one deal to another. It depends on how long you fix your deal in for.
The lowest fixed-terms often come with the lowest interest rates; although this is positive, on the contrary, it also means that you’ll have to renew your mortgage product through a remortgage in Durham more frequently.
Effectively, this could mean that it’s more beneficial to fix in your mortgage over a longer-term on a fixed-rate mortgage.
You’ll have to decide whether you’re willing to search for a new fixed-rate deal every two to three years or not. If you don’t want to be frequently searching for new deals, a medium to long-term product may be for you. You’ll have to consider your current and future personal and financial circumstances when deciding how long you’re going to fix your mortgage for.
Five-year fixed rates are popular choices; they add the security of consistent monthly payments. These lock in deals also have negatives. For example, if interest rates drop whilst you’re locked in, you will end up paying more than you would’ve been had you taken out a product with a shorter term.
You can fix in your mortgage for an even longer period of time if you feel like that’s the right thing for you. The options are usually limited, however, you can usually find seven to ten year fixed products. These types of products aren’t usually very popular, as you’re committing to a product for a whole decade! During this time, better rates are very likely to come available. You should know that these are usually the most expensive fixed-rate products available to customers.
On top of interest rates and payments, you’ll also have to consider mortgage arrangement and booking fees.
A booking fee may be charged for an appointment with a mortgage advisor in Durham. At Durhammoneyman, we do not charge a booking fee, we offer a free mortgage consultation to every customer.
Mortgage arrangement fees are charged upon completion, therefore, if you take out short, fixed-term products, you may end up accumulating a large number of costs just for arranging your mortgage. This is one of the benefits of taking out a medium fixed-term mortgage, you won’t have to constantly pay for arrangement fees.
Otherwise known as ERC’s, you can receive an ERC when you overpay your mortgage or pay back your mortgage too early.
Sometimes people forget about ERC’s or overpay by accident, whereas others can overpay on purpose. This is where the positives of overpaying can occasionally outweigh the negatives.
In a situation where your fixed-mortgage term is approaching its end and you can see that there are much better interest rates readily available, it may benefit you more to overpay and receive an ERC so that you can access these rates. Perhaps it’s a limited product offer that you’ve received or a deal that you’ve found and you want to lock into right away, sometimes tactically receiving an ERC can benefit you in the long run.
You’ll find that some ERC’s won’t be too costly. They are 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 charge is 2%, you’ll receive a £1,600 early repayment fine. In the grand scheme of things, this figure does not seem too bad.
As a mortgage broker in Durham, we always suggest that do your research jumping into a deal. We would also recommend that you don’t chase ‘headline’ deals; don’t let them mislead you, the cheapest/lowest rates can come with the highest arrangement fees!
For help securing a great fixed-rate mortgage rate and remortgage advice in Durham including how to save costs on various fees that come with getting a mortgage, get in touch with our brilliant mortgage team today.
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.
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.
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.
In some cases, not everyone can just remortgage somewhere else and this is due to many reasons:
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.
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.
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.
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.
Here is the Government’s proposal following the COVID-19 outbreak:
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:
For more useful information on how the coronavirus could affect your mortgage click here.
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.
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.
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!
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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!
Once you are all ready to make your first offer on a property, it is important that the seller or the estate agent knows all about your personal and financial circumstances. Telling them all of your details give you a higher chance of being accepted.
Most of the time you will find that a cash buyer has the advantage. The mortgage process requires time and handling of paperwork, which can be avoided if the home buyer pays the full amount. If you can’t afford to go down this route, to improve your chances of being accepted for a mortgage, you should get a mortgage agreement in principle prepared before you make your offer.
Having a mortgage agreement in principle at the ready shows that you have planned ahead and really want to secure this property. Whereas, if you don’t have one, your lender will know that you weren’t prepared and that you aren’t fully aware of how to apply, which could go against you.
This is why approaching a Mortgage Broker in Durham could really benefit you during the home buying process. Once you find a property that you are interested in making an offer on, Durhammoneyman can quickly get you together with a mortgage agreement in principle. Depending on your situation, we can sometimes offer the same day service.
Buying a property is a negotiation process. If your first offer gets rejected, don’t worry, it’s perfectly normal to not be accepted first time round, you will get another chance to increase your original offer.
If your increased offer is also rejected, you may have to raise your offer again to match the asking price. If the property has just been listed on the property market, it’s unlikely that the seller is going to budge from their asking price. If you aren’t prepared to match their asking price, you may have to walk away and start looking for more properties.
To get a rough idea of what you may have to pay for your property, you should check out Zoopla and Rightmove and take a look “sold” prices of houses that are similar to the one that you are looking at. These prices are pulled from the Land Registry so they are reliable and can be used as a comparison.
You will sometimes see that some houses end up selling for less than their actual worth and this is because they could’ve been repossessed, sold to a tenant at a discounted price or an inter-family sale.
If you are still unsure about how to make an offer on a property and need help getting on the property ladder as a First Time Buyer in Durham, you should get the help off an expert Mortgage Advisor in Durham. They will do all they can in order to try and get that dream home of yours secured.
We are available 7 days a week, so if you ever have any mortgage questions, you know who to call. Receive a free mortgage consultation today with your expert Mortgage Broker 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.
To summarise this week’s position:
All of the above relaxations are subject to additional specific health and safety guidelines and social distancing.
In terms of mortgages at the moment:
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.
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!
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.
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.
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.
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.
Sometimes people find their ‘dream home’ straight away and have no plans in Moving Home to Durham in the future, so they decide to remortgage for an extension. The most common home improvements that we see are kitchen extensions, conservatory extensions and loft conversions.
Nowadays, the most popular extension of the three is a kitchen extension. People are realising that it costs a lot less than what they originally thought, it’s easy to do too!
To get the ball rolling, you will have to remortgage to raise additional funds. To remortgage, you need to find another deal to roll onto. You can either approach your lender and choose a remortgage deal from their limited products or go to a Mortgage Broker in Durham, like us, who will have access to thousands of remortgage deals across 38 different lenders.
A Mortgage Advisor in Durham at Durhammoneyman will support you through the whole of the remortgage process, recommending what you do at every step, as well as trying to find you the perfect remortgage deal to save you both time and money.
In the current climate of the UK and because of the effect of the Coronavirus has had on the mortgage market, the interest rates have dropped dramatically. They are at some of the lowest rates that we have seen over 20 years. So getting a great remortgage deal should be really easy and because of the interest rates, your monthly payments won’t really be affected.
For example, for an extra £100 – £200 a month, you could borrow an additional £25,000 – £50,000. There are lots of different things that will affect how much you will have to pay back per month and the amount that you can borrow overall. You will have to consider that the bigger the room is and the more work that needs doing on it will raise the amount that you can borrow and your monthly payments.
You will also need to note that in order to remortgage, you will have to go through another affordability assessment, even if you switch deals through the same lender.
Now is the best time to remortgage! The interest rates have never been lower, and they will slowly return back to normal. Also, lenders are probably going to extend the time frame of your remortgage application anyway, so the works won’t get started for another 6-9 months anyway.
As a Remortgage Advisor in Durham, we always recommend getting Remortgage Advice before going directly to your lender. A Mortgage Advisor at Durhammoneyman will always have your best interests at heart and work around your personal situation to match you with a perfect remortgage deal. What’s better than having a friendly Mortgage Advisor by your side to provide you with their help and guidance throughout every stage of the remortgage process.
We offer a free mortgage consultation here at Durhammoneyman, so get in touch and we can pass you straight over to a Mortgage Advisor who will talk you through all of your remortgage options in Durham.