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Are you a first time buyer in Durham looking to buy your first home and are undecided on a location? Have your living circumstances changed and you are looking at moving home into a new area in Durham? However, where are you going to move to?
To help sway your decision, we have come up with our top list of places to live in Durham.
The city center is a captivating blend of history and contemporary living. With its cobbled streets, medieval architecture, and the iconic Durham Cathedral, the city center exudes a timeless charm. Residents enjoy easy access to a plethora of shops, restaurants, and cultural attractions. The city’s transport links make it convenient for those working or studying at Durham University, contributing to the vibrant and diverse community.
For those seeking a more tranquil setting while still being close to the city’s amenities, Nevilles Cross is an excellent choice. This residential area boasts tree-lined streets, parks, and excellent schools, making it an ideal location for families. With convenient access to the A167, commuting to neighboring cities is straightforward, and the nearby university facilities add an academic touch to the community.
The Viaduct area offers a picturesque setting along the River Wear, providing residents with stunning waterfront views. The Riverside Walk and Wharton Park are popular spots for outdoor activities, creating a peaceful and relaxing atmosphere. The neighborhood is well-connected by public transport, and the blend of modern housing and natural beauty makes Viaduct a sought-after location for those who appreciate the outdoors.
Framwellgate Moor is known for its affordable housing options and strong sense of community. With local shops, schools, and parks, residents find everything they need within reach. The community atmosphere is further enhanced by regular events and activities organised by local groups. Proximity to the city center, combined with the affordable housing market, makes Framwellgate Moor an attractive option for many.
Situated to the east of Durham, Gilesgate has become a popular choice for students due to its close proximity to the university campuses. The area offers a lively atmosphere with diverse amenities, including pubs, cafes, and recreational facilities. While it has a youthful energy, Gilesgate is also home to families and professionals who appreciate the vibrancy of the neighborhood.
As you embark on the journey to find your dream home, consider these seven outstanding locations, each contributing to the vibrant tapestry of Durham’s diverse and welcoming communities. As your trusted mortgage broker in Durham, we are here to guide first time buyers and home movers in Durham through the process and help you secure the suirable purchase or remortgage deal that fits your needs.
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.
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.
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.
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.
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.
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’.
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.
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.
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.
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.
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.
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.
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;
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.
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.
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 landlord looking for a Buy to Let mortgage in Durham, 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.
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.
*Please note this information is outdated, and revelant during the start of the Covid pandemic*
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 in Durham or Self Employed applicants who 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.
Try it FREE for 30 days, then £14.99 a month – cancel online anytime.
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.
For first time buyers in Durham, in today’s mortgage market, you’ve got lots of options to choose from. But don’t worry, we’re here to help you figure out which one is right for you.
All mortgages work in a similar way, but they can be a bit different when it comes to things like interest rates, how you pay back the money, and any extra fees. So, finding the most suitable deal isn’t just about picking the one with the lowest interest rate. It’s more about finding the mortgage that fits your situation the best.
To make things clearer, we’ve put together this guide to explain the different types of mortgages you can get in Durham. We’ll explain the difference between repayment and interest-only mortgages – these are the two main types you should know about. After that, we’ll move on to tracker and fixed-rate mortgages, which are both ways to pay back your mortgage.
A repayment mortgage is a type of home loan where you make regular monthly payments that cover both the interest on the loan and a portion of mortgage amount. With each payment, you’re gradually paying off the borrowed money along with the interest that the lender charges.
As time goes on, the balance of your loan decreases because you’re steadily repaying both the interest and the mortgage. This means that over the course of the mortgage term, you’ll eventually pay off the entire loan, assuming you keep up with your monthly repayments.
Repayment mortgages are designed to ensure that by the end of the mortgage term, usually 25 to 30 years, you’ll have fully paid off the loan and own the property outright. Because you’re consistently reducing the principal balance, the interest you owe also decreases over time.
Repayment mortgages provide the benefit of a clear and structured path to full homeownership. With each payment, you’re building equity in your property and working towards owning it outright.
An interest-only mortgage is a type of home loan where your monthly payments cover only the interest charges on the loan, and you’re not required to repay the original amount borrowed during the initial phase of the mortgage. This means that while you’re making payments, the amount you owe doesn’t decrease, and the mortgage balance remains the same.
With an interest-only mortgage, your payments are generally lower than those of a repayment mortgage because you’re not paying off the principal. However, it’s important to note that this type of mortgage typically has a specific term during which you’re allowed to make interest-only payments. After this initial period, you’ll need to start repaying both the principal and the interest, often leading to higher monthly payments.
Interest-only mortgages might appeal to landlords who are looking for lower initial payments or who anticipate a significant increase in their income in the future like with a buy to let mortgage in Durham, which would allow them to start repaying the principal later.
Interest-only mortgages can be complex and come with potential financial risks. It’s crucial to thoroughly understand the terms, risks, and potential consequences before considering this type of mortgage and to have a clear plan for how you’ll eventually repay the principal.
A fixed-rate mortgage is a type of mortgage where the interest rate remains constant, or “fixed,” for a predetermined period. This means that the interest rate you start with when you take out the mortgage will stay the same throughout that set timeframe, regardless of any changes in the Bank of England’s base interest rate.
The fixed-rate period can vary, typically lasting for 2, 3, 5, or even 10 years. Once this period ends, the mortgage usually switches to your lenders standard variable rate, unless you decide to remortgage in Durham beforehand.
The main advantage of a fixed-rate mortgage is stability. Since your interest rate remains constant, your monthly payments won’t change, making it easier to budget and plan for your housing expenses.
A tracker mortgage is a type of variable-rate mortgage that is linked to a specific financial index, typically the Bank of England’s base interest rate. The interest rate on a tracker mortgage “tracks” or mirrors the movements of the chosen index, meaning that when the index rate goes up or down, the interest rate on your mortgage will also adjust accordingly.
For example, if you have a tracker mortgage that is set at “Base Rate + 1%,” and the Bank of England’s base interest rate is 0.5%, your mortgage interest rate would be 1.5% (0.5% + 1%). If the base rate increases to 1%, your mortgage rate would then become 2% (1% + 1%).
Tracker mortgages usually come with certain conditions, such as a “tracker period” during which the interest rate follows the index closely. After this period, the mortgage might switch to a different interest rate structure, like the lender’s standard variable rate (SVR).
One advantage of a tracker mortgage is that it provides transparency and predictability since your rate changes are directly tied to a publicly available index. However, just like any variable-rate mortgage, there’s the potential for your payments to increase if the rate goes up.
An offset mortgage is a type of home loan that allows you to link your mortgage account to your savings and/or current accounts. The balances in these linked accounts are “offset” against the outstanding balance of your mortgage. This means that the amount of money you have in your linked accounts is subtracted from the amount you owe on your mortgage, and you only pay interest on the difference.
For example, if you have a mortgage of £200,000 and you have £20,000 in your linked savings account, you would only be charged interest on £180,000 (£200,000 – £20,000). This can lead to potential interest savings over the life of the mortgage.
Offset mortgages often come with slightly higher interest rates compared to standard mortgages, so it’s important to weigh the potential interest savings against the higher interest rate.
They can be particularly advantageous for individuals with substantial savings or those who receive irregular income, like freelancers or business owners. They provide a way to use your savings to offset the cost of your mortgage while keeping your funds accessible. As with any mortgage type, it’s crucial to carefully read and understand the terms and conditions to ensure it aligns with your financial goals and circumstances.
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 in Durham 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!
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.
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!
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.
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.
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.
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Durhammoneyman.com & Durhammoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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Durhammoneyman.com & Durhammoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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