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A Debt Management Plan (DMP) is a formal agreement between you and your creditors, aimed at gradually repaying your outstanding debts. It all begins with a transparent disclosure of your debt level, allowing creditors to assess your financial situation.
They’ll then review your income and regular expenses to understand your spending patterns and identify areas where adjustments can be made.
Once these details are gathered, a tailored DMP is created for you, enabling debt repayment through manageable monthly instalments. Let’s explore how a DMP could benefit you, especially in your mortgage situation in Liverpool.
Surprisingly, a DMP can actually improve your credit score. If your credit rating is currently below average due to existing debts, consistent monthly payments and reducing debt can positively impact your score over time.
As your score reflects the debt associated with your name, improvements in your financial situation should lead to a higher credit rating. This, in turn, enhances your chances of accessing better mortgage rates. However, keep in mind that lenders often require a larger deposit due to your ongoing debt.
Through a DMP, you can avoid a default notice – as long as one hasn’t been issued previously. Once a default is on your record, it stays there for six years, even after the debt is fully repaid. As your mortgage broker in Liverpool, we strongly advise against defaults on your record whenever possible.
Seeking specialist mortgage advice in Liverpool can help you set up a DMP to prevent a default. Lenders ask many questions when they see a default, so it’s best to avoid this situation if you can.
If you already have a default, it might be included in your DMP amount. However, having a default on your credit report makes loan approval more difficult.
A DMP can be a valuable tool in tidying up your finances and regaining financial stability. Especially when applying for a mortgage or remortgage, a thorough financial review that includes your DMP payments and regular expenses is key.
For example, if you’re cutting back on non-essential spending before applying for a mortgage, it shows responsible financial management. This can reassure lenders, especially when you’re managing a DMP at the same time.
In some cases, you might consider consolidating your existing debts into your mortgage. This increases the overall mortgage amount but securely attaches your debt to an owned asset.
However, it’s important to speak with a mortgage advisor in Liverpool before proceeding with debt consolidation into your mortgage. We strongly advise against doing this without professional guidance.
You can easily book a free mortgage appointment with one of our experts online. Simply follow our Get Started process to select a date and time that suits you best.
Navigating the mortgage journey can be tough, especially when economic ups and downs come into play. Suddenly high mortgage rates during tough times can really bump up your monthly payments, making it hard to get the mortgage deal you want.
Mortgage rates have been up and down over the years and it looks like that trend will keep going. Figuring out the best time to start your mortgage journey, especially in Liverpool, can be tricky because of all the market changes.
Just getting ready for your mortgage application can take around a month, so it’s smart to start early. But don’t worry, our team of mortgage advisors in Liverpool are here to help you find a mortgage deal with a good interest rate that fits your situation.
When it comes to mortgages, terms like “mortgage rates” and “interest rates” mean the same thing – they’re the fees you pay to your lender on your monthly mortgage payments.
Getting a lower interest rate for your mortgage can really help lighten your financial load each month, especially for your mortgage payments in Liverpool.
Many factors come into play when determining the mortgage rates you can access, most of which are tied to your personal finances. Things like your credit score and the amount of deposit you can provide can make a big difference, as lower risk profiles often mean better rates.
The overall economic situation also matters. For example, if you choose a tracker mortgage, your interest rate will follow the Bank of England’s base rate, which changes based on how the economy is doing and the state of the mortgage market.
When inflation rises, the cost of living tends to go up, which can sometimes result in slightly higher mortgage rates. The type of mortgage you’re eligible for can impact this.
In times of economic difficulty, fixed-rate mortgages that are ending might switch to higher rates, which is when seeking advice from professionals like mortgage brokers in Liverpool can be helpful.
Fixed-rate mortgages and tracker mortgages offer distinct advantages. Fixed-rate mortgages provide stability with a consistent interest rate over a set term, while tracker mortgages link your rate to the Bank of England’s base rate, leading to potential fluctuations.
Deciding between fixed-rate and tracker mortgages depends on personal preferences and lender evaluations of affordability and creditworthiness. Speaking with a mortgage advisor in Liverpool can simplify this decision, ensuring it aligns with your financial goals.
Our experienced team of mortgage advisors in Liverpool, with over two decades of expertise, are here to guide you through your mortgage journey. We offer tailored mortgage & remortgage advice in Liverpool to find the perfect mortgage product that suits your financial and personal situation.
Book your free online mortgage appointment today to connect with a dedicated mortgage advisor in Liverpool. We’re available 7 days a week to accommodate your schedule.
Remortgaging in Liverpool, often seen as a complex financial decision, is a step that many homeowners contemplate at various points in their homeownership journey.
In essence, remortgaging in Liverpool offers the option to either transfer your existing mortgage to a new lender or reconfigure the terms of your current mortgage agreement with your existing lender.
People choose to remortgage in Liverpool for a variety of reasons, and when done thoughtfully, this process can bring about financial advantages.
To gain a comprehensive understanding of the remortgaging process in Liverpool, it’s beneficial to break it down into a series of key steps:
The journey begins with a thorough evaluation of your current mortgage and financial circumstances. This involves calculating your outstanding mortgage balance, interest rate, and monthly payments. This assessment is crucial in determining the feasibility of pursuing a remortgage in Liverpool.
Conducting thorough research into the array of available mortgage deals in the market is essential. Look for lenders offering competitive interest rates and favourable terms. Seeking guidance from a dedicated mortgage advisor in Liverpool, tailored to your specific situation, can prove invaluable.
Once you’ve chosen a suitable mortgage deal, the next step is to complete a mortgage application. The lender conducts a comprehensive assessment of your application, considering factors such as your credit history, income, and property value.
Determining the current market value of your property may require a professional valuation. Typically, the lender arranges for an experienced appraiser to assess your property.
Legal procedures are a crucial part of the remortgaging process in Liverpool. Enlisting the services of a solicitor or conveyancer may be necessary to oversee legal aspects, including property searches and fund transfers.
If your application meets the lender’s criteria, you will receive a formal mortgage offer. It’s vital to conduct a comprehensive review of this offer to ensure it aligns with your financial objectives and expectations.
Once all the necessary checks and paperwork have been successfully completed, your new mortgage arrangement is finalised. This stage may involve settling arrangement fees and other associated costs.
With your new mortgage in place, you’ll embark on the journey of making monthly payments in accordance with the terms of your new agreement. Consistently meeting these payment obligations is crucial for maintaining a healthy financial standing.
Homeowners consider the prospect of remortgaging in Liverpool for a wide range of individual reasons, each situation presenting its unique circumstances.
A common motivation is the pursuit of a more favourable interest rate. Securing a lower interest rate can result in substantial long-term savings on your mortgage.
Moreover, remortgaging in Liverpool is often used as a means to unlock the equity tied up in your property. This accessible equity can be used for various financial objectives, such as home improvements, debt consolidation, or a variety of other financial goals.
Changing your mortgage type is another valid reason for remortgaging. As your financial circumstances evolve, your existing mortgage type may no longer align with your needs. Transitioning to a different mortgage type can offer increased flexibility or more advantageous terms.
Finally, some homeowners opt for remortgaging as a means to consolidate high-interest debts, including outstanding credit card balances or personal loans, into their mortgage. This results in lower monthly payments and simplifies financial management.
Remortgaging offers several potential benefits, including the opportunity for reduced monthly payments, access to home equity for financial endeavours, the ability to consolidate high-interest debt, and the flexibility to adapt your mortgage to better suit your evolving financial requirements.
In conclusion, remortgaging in Liverpool is a dynamic process that empowers homeowners to transition their mortgage to a new lender or negotiate revised terms with their current mortgage provider.
Individuals embark on this journey for a multitude of reasons, ranging from securing improved interest rates to accessing the wealth tied up in their homes.
The remortgaging process encompasses several essential steps, such as assessment, research, application, valuation, legal procedures, and the finalisation of the new mortgage terms.
When considering the prospect of remortgaging in Liverpool, it is imperative to conduct a thorough evaluation of your options and, when necessary, seek expert remortgage advice in Liverpool to make informed decisions about your financial future.
Homeowners in Liverpool will look to remortgage for all different kinds of reasons. One reason, in particular, is an uncommon choice – remortgaging to extend a mortgage term. In this article, we are going to discuss why people do this and how you can go about doing so.
You can find out more about the different types of remortgage across our website and in our remortgage guides.
So, you want to remortgage in Liverpool to extend your term… But why would you want to do that?
A mortgage term is how long you have to pay off your entire mortgage. This length of time will have been specified in your contract when you took out your mortgage with your lender. Usually, mortgage terms last between 25-30 years. This is a long time to be financially liable for something.
As you progress through your term, you may find that keeping up with your mortgage payments is proving difficult and that you are left with a small amount of disposable income per month. Due to the cost of living and an increase in bill payments, you may find it more beneficial to remortgage and extend your mortgage term to save that little bit of extra money.
So, what happens when you extend your mortgage term? Essentially, you are stretching your mortgage payments across a longer period of time, therefore, your payments per month will decrease. However, since you are borrowing for longer, you should expect the total amount that you have put into your mortgage to have increased.
Yes, there is a possibility that you can extend your term and release equity from your home in the process.
Truthfully, you can probably extend your term on any remortgage path you’re looking to take. More popular options include remortgaging for home improvements or consolidating debt into the mortgage whilst extending the mortgage term. People usually extend their term whilst remortgaging for these reasons to put them in a stronger financial situation.
As we have mentioned above, remember that as your term is increasing, so the overall amount that you spend on your mortgage will increase. You will also end up paying more interest overall by the time your term has come to an end.
You should think carefully before securing other debts against your home. By adding your unsecured debts to your mortgage, which is secured on your home, you are potentially putting your home at risk if you cannot make the required repayments.
Although the total monthly cost of servicing your debt may have reduced, the total cost of repayment may still have risen as the term of your mortgage is longer than it may have taken to repay the debts originally.
There may be some scenarios where you may not be able to extend your mortgage term. A lender, when deciding whether you are able to do this or not, will look at various factors before accepting your remortgage application.
If you are looking to remortgage in Liverpool to extend your term, your lender will look at your age, type of mortgage and any mortgage debts. At the end of the day, it is up to your lender to decide whether or not to allow you to remortgage to extend your term.
If your lender comes to the conclusion that you are not able to do this, there may be other alternatives that could potentially lower your mortgage repayments. Your Remortgage Advisor in Liverpool will discuss these options with you during your free mortgage appointment.
This scenario can become complicated very quickly, therefore, not all mortgage lenders allow you to do this. If you are allowed to do this with your interest-only mortgage product, you will have to know that you will still owe the lump sum of interest once your term concludes. This total could be larger due to the extended mortgage term on your product.
Additionally, the majority of residential properties will be on some variation of a repayment mortgage, as a residential interest-only is much less frequently occurred in modern times. You will find that it is more common to find an interest-only linked with a buy to let property.
This will bring its own challenges. You will have to compensate for the increased lump sum and you will have to try and convince your lender to extend your term with a tenant still living within the property.
A possible option could be to remortgage and replace your interest-only mortgage with a repayment mortgage. This would allow you to pay back the capital and the interest combined.
Before remortgaging and switching products, we would recommend seeking remortgage advice in Liverpool. Switching to the wrong product could put you at risk of losing large sums of money.
If your financial situation has improved since taking out your mortgage, you may consider shortening your mortgage so that you can pay it off quicker. In turn, this will of course increase your monthly payments.
You will also end up paying the bank less back overall due to less interest being built up. Just like when you extend your term, you will need to pass lenders’ affordability checks before you will be able to continue with your remortgage.
There are other ways to save money each month that does not require you to extend your mortgage term.
One example would be downsizing. Downsizing is where you sell your current home and move into a smaller property instead. As a general rule of thumb, smaller homes cost less due to having a lower mortgage.
Another example, for those over the age of 55 and a property worth at least £70,000, would be to release equity in Liverpool. This could allow you to release funds tax-free from your home, either as a lump sum or in occasional payments, through a lifetime mortgage. This may not necessarily mean that this is the best option for you. If you are over 50, you may also want to look into retirement interest-only mortgages and term interest-only mortgages (also known as RIOs and TIOs).
Similarly to equity release plans, with RIOs and TIOs, your loan will only be repaid when you are dead or have moved into long-term care, with your home being sold at either stage.
One of our mortgage advisors in Liverpool will discuss alternatives with you, advising on the most appropriate path to take, based on what you wish to achieve, as well as your future plans.
To understand the features and risks of equity release and lifetime mortgages, ask for a personalised illustration.
A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means tested benefits. The loan plus accrued interest will repayable upon death or moving into long term care.
If you’re heading towards the culmination of your mortgage term and have opted to remain within your current property, as opposed to moving, then you should definitely start looking at your options for a potential remortgage in Liverpool.
For those who are unsure of what remortgages are, this is where you switch to a better rate on your existing deal. As an experienced mortgage advisor in Liverpool, this is something we have worked with a lot and are usually able to help with.
The high street bank or mortgage lenders tend to rely on their customers sticking with what they’re comfortable with and not looking at their options elsewhere. It’s not unheard of for there to be cheaper offers available to you elsewhere, all you have to do is check out a price comparison website or contact a mortgage broker in Liverpool to compare the various deals for you.
If you’ve had your mortgage for a number of years, it’s possible that you could be on a low Bank of England tracker deal. You may even be paying an amount that is less than 1%. If this sounds like your mortgage situation, you might be thinking about leaving that mortgage as it is for now. Bear in mind though, that if the Bank of England base rate rises, your mortgage amount will too.
Subject to the typical affordability checks and assuming that there is existing equity within your property, then the possibility of increasing your mortgage for any plans for home improvements that you have, may be an option available to you.
This can be a very intelligent investment if you are good with your money. We regularly see that customers do this to do something like covering the costs of building an extension or converting their loft into an additional room.
You can borrow extra funds for most legal purposes, examples of this would be:
Remember by increasing your mortgage you will end up paying back more interest, so you need to be certain you are doing this for the right reasons.
It is not recommended that you start adding debt onto your mortgage, as over time you will end up paying back more interest overall, though by extending the length of your term, you will be paying less back per month.
You will also taking that debt and securing it against an asset, your home. Because of your secured loan, you would be at risk of repossession if you fail to meet your monthly repayments.
If you have any debt that you can afford to pay off or have credit cards that are at 0% interest, it is absolutely not recommended that you remortgage for debt consolidation.
That being said, if you need to reduce your monthly outgoings to avoid missing payments, (which could damage your credit rating), then it might be a something at least worth looking into.
We often find that generally your current lender will offer you a new deal to remain with them, calling this a “product transfer” or “retention” product. This isn’t always guaranteed and sometimes you have to get in touch with your lender directly, in order to see if this is available to you.
Some lenders allow you to make a product switch online without taking any of their mortgage advice or being required to submit any further information to them.
Whilst it may seem to be a much easier option in staying with the same provider and switching products, rather than put forward a new application to a lender that is different to the one you are with, it’s entirely possible that you could save a lot of money in doing so.
In the long run, you will likely find your mortgage journey to be a fruitful and rewarding endeavour. Whilst during this process there will inevitably be some positives and negatives, ultimately the final result will see you end up with one of the following; You’ll possibly be living in your dream home, with the potential to start a family.
Alternatively, you could find yourself with stepping stone property, getting your foot on the property ladder. Finally, you might end up with an investment property to provide you with an income boost as a new or continuing landlord.
Regardless of which of those mortgage paths you went down, you’ll eventually reach the end of your mortgage term and need to start looking at a new plan of action for the future. In some cases, people choose to simply sell their home, scouting the market for either a bigger or smaller next home.
If you are a landlord in Liverpool, you could possibly be in the market for selling your portfolio to the tenant(s) or another buyer, with your eye on financial adventures outside of the housing market. Despite these however, we often hear that the most popular option towards the end of a mortgage term is a Remortgage.
A Remortgage is the process of using the money gathered from taking out a new mortgage to pay off an existing mortgage. There are lots of different options that could be at your disposal when taking out a Remortgage, each of these ranging from small ones to slightly bigger ones.
By collaborating with Liverpoolmoneyman’s resident “Moneyman” Malcolm Davidson (host of our YouTube channel MoneymanTV) and utilising his over 20 years of experience in the mortgage industry, we put together a helpful guide for those looking at what to do next, when their mortgage term is about to finish.
At the start of your process, you’ll likely be taking out a mortgage deal that will normally last somewhere within the realm of 2-5 years, featuring lower fixed rates or with rates that are possibly discounted. Depending on the circumstances, your lender may even look at putting you on something like a tracker mortgage, wherein your mortgage would follow the Bank of England’s base rate.
Once your mortgage term is at its end, it is likely that you will be placed on the lenders Standard Variable Rate (you may see this just called an SVR). The purpose of which an SVR serves, is that the mortgages interest rates can either increase or decrease, a process entirely dependent on what the lender wishes to charge you.
Standard Variable Rates do not follow the Bank of England’s base rate like tracker mortgages would. Because of this, they’re seen as a little more risky, due to the fact that the lender is not legally obligated to charge the amount that might typically be recommended for a mortgage.
Generally speaking, SVR’s are more expensive mortgage routes to take, leaving many with a preference of Remortgaging for better rates. By Remortgaging for better rates, this would hopefully save the homeowner a little bit of money on their monthly mortgage repayments.
The majority of your term may be firmly behind you, but you still may feel like something isn’t quite right, like a change needs to be made for it to truly be called home. It could be that you need to create the space for an extra room or would like a larger living space for your kids or belongings.
We’ve also heard of cases, when speaking to Remortgage customers, of people doing this for a new kitchen, a new office, or even a loft conversion (a popular these days). Rather than just moving into a newer, bigger house, many instead look at their options of releasing the equity in their home with a Remortgage.
This type of venture is used to cover the costs of any potential improvements, alterations or modifications made to the property in question.
Whilst obtaining planning permission from a local authority sounds like quite a large and scary task, especially when tied to both funding and managing your own project, many homeowners would argue it’s a lot less stressful and more rewarding than house hunting, selling your home and moving out.
As time goes on, this may prove even more to be a smart investment choice, as creating more space and having good quality craftsmanship can possibly increase the value of your home down the line, which comes in handy if you ever decide to sell up or rent your home out to a potential buyer.
In some cases, some homeowners may prefer simply to Remortgage in Liverpool with a goal of finding themselves a better mortgage term. This could be by reducing the length of the term in question or even by switching to a product that is a lot more flexible.
Doing this will mean you will shorten the length of time that you will be paying back your mortgage over, so you won’t be tied down for a large amount of years. Something of note to remember though, is that this route will also mean that your monthly repayments will be higher than you’ve might’ve expected. The general rule of thumb is that the longer your term, the lower your monthly mortgage repayments will be over the duration.
Many choose for their mortgage term to be a little more flexible when they look to take out a remortgage. This is because of the benefits provided by this mortgage option, which tend to sway homeowners more towards that route. Through taking out a more flexible mortgage, you may gain the ability to overpay your mortgage.
Overpaying gives you the ability to pay your mortgage off quicker, as well as being able to carry the same mortgage and rates over to another property of your choosing, for in the event you want to find a new property at any point down the line.
Though a flexible mortgage might sound like a more than ideal option, they will usually come in the form of a tracker mortgage. As mentioned previously, these types of mortgages will follow the Bank of England base rate, meaning that your monthly mortgage repayments could fluctuate based on interest. This can make them a little unreliable when it comes to managing finances.
Every homeowner will have an amount of equity in their property. The amount that is there entirely depends on certain factors. You can work out the amount by calculating the difference between the remaining mortgage balance and the current amount your property is valued at.
As touched upon earlier in this article, the equity in your home can be used for home improvements, though that’s not all you’re limited to when it comes to what you can use your equity for.
Some use their released equity to cover long-term care costs, to provide an additional boost to their income, to have themselves a nice holiday, to pay off an interest-only mortgage or to give themselves extra money to spend freely on whatever they wish.
Sometimes we find that Buy to Let landlords will use a remortgage to release equity as a means of covering their deposit for additional purchases towards their property portfolio.
Equity Release in Liverpool is something that homeowners who are over the age of 55, with a home that is worth at least £70,000, may be able to use. Take a look at your options by getting in touch with an expert later life mortgage advisor who can help you better understand equity release.
Another option that is widely popular and works in tandem with Equity Release, is the process of releasing funds to pay off any unsecured debts that you may have built up over time.
Though it can seem straightforward, Debt Consolidation not only bases the amount on how much you’re owed and the value of the property, but it also factors in the current position of your credit rating.
What this means is that whilst you may be able to use some money to cover these costs, you’re limited from the offset in terms of the amount that they’ll even let you borrow.
On top of this, to pay off your previous mortgage and your debts, you will need to borrow more than the mortgage amount that you have left on your balance. Because of this, you are almost guaranteed that your monthly repayments will be higher than they were before.
Though not an ideal situation to find yourself in, you at least have the comfort of knowing that should you find yourself in need of a back-up plan, you do have some mortgage options to choose from.
If you happen to have a damaged credit rating, you may still be able to obtain a mortgage, though it is not an easy process and does require Specialist Remortgage Advice in Liverpool before you can even go forward with it.
Even with a professional by your side, you must remember that there are still no guarantees that you will walk away at the end of this with a mortgage.
We recommend that you always seek mortgage advice prior to consolidating and securing any debts against your home.
If you are nearing the end of your term and are looking at your home owning and remortgage options may be, please do Get in Touch with a trusted mortgage broker in Liverpool today and we’ll see what we can do to help you out.
Your dedicated mortgage advisor in Liverpool will discuss your circumstances and plans for the future, in order to determine the course of action to take on the next leg of your mortgage journey. It is our goal as a mortgage broker to ensure your mortgage process is quicker and easier than when you took out your mortgage the first time around.
Every homeowner, whether a First Time Buyer in Liverpool, Home Mover in Liverpool or going for a Remortgage in Liverpool, should know that overpaying your mortgage can make a significant difference in what you have to pay each month. The earlier you start overpaying, the quicker you can take advantage of it’s benefits.
Homeowners may not always be able to afford such an option. Sometimes life gets in the way. In hindsight overpaying is a great thing to start doing, however, we always find something ‘better’ to spend our money on.
A lot of the time it might just be as simple as remembering to overpay your mortgage. After all, it’s not something that immediately comes to mind when buying a home.
So, if you’re in this situation and are looking to overpay, what should you do? We’d recommend setting up a standing order that is payable to your lender each month. Have it go out alongside all your other payments, so it’s easier to manage.
For example, say your monthly mortgage payment is £450 per month and goes out on the 2nd of each month. You are able to afford an extra £85 per month and are keen to put that towards your mortgage payments. Set up a standing order of £85 to go out to your lender on the 2nd of each month too.
A great benefit here, is your mortgage payments will then total at £535 and because it’s going out as a regular payment, this will become a part of your monthly routine.
Another perk is that whereas a direct debit is controlled by the receiver, standing orders are controlled by the payer. Struggling for funds this month and can’t afford to overpay? Just cancel the direct debit.
Whilst it would be a shame to have to stop overpaying, you at least have the benefits you’ve gained so far. Depending on the lender, you may even be allowed to arrange reduced payments or take a “payment holiday” if you’ve been overpaying over a long period of time. It’s important to check with lenders though if you’re looking to do this, otherwise it could have an adverse affect on your credit report.
Overpaying is a great habit to have but it’s not something you have to do. If you don’t feel the need to, you don’t have to. That being said, knocking off a year or two from your mortgage term will be something definitely worth the effort.
When your initial mortgage deal reaches the end of it’s term, your mortgage lender may offer you a new deal to stay with them. This process is known as a product transfer.
Unfortunately, lenders do not always reward customers for their loyalty over the years, and the offer they make may not be as competitive as deals you could have access to if you go elsewhere. They are more likely to reward a first time buyer in Liverpool than they are someone looking to remortgage in Liverpool.
Whilst the concept of swapping to a new deal with your current lender may seem like an easy process online, it is always in your interest to see what other deals you may have access to. Lenders will also try to tempt you towards a new deal without actually taking mortgage advice.
This can be really dangerous because if you undertake this process without professional mortgage advice you are waving goodbye to all the valuable consumer protection you would otherwise have benefitted from by speaking with a mortgage advisor in Liverpool.
We have seen many examples of customers affecting these “follow-on” deals and locking themselves into a deal that doesn’t benefit them and isn’t appropriate to their personal circumstances. Because you opted out of advice, you then give up your right to making a complaint if you don’t like something.
We had a case in the past where a customer who was pregnant did this and was declined for a small further advance to fund some necessary home improvements down the line. She then had to pay a large early repayment charge to swap to a new lender who would grant her further funding.
If we think a product transfer is the most suitable deal for you we will recommend that as a course of action for you and if we arrange the mortgage for you as a mortgage broker in Liverpool then all the regulation and consumer protection will apply.
A second opinion costs nothing, and making a mistake when taking a new product can be costly. We will do our best to ensure you take the right path with your mortgage.
The remortgage market in Liverpool is highly competitive and savings can generally be made by searching the market for a new deal.
When you and your partner decide to end a relationship, it is never easy, especially if you have made a joint financial commitment.
Times like these our mortgage advisors in Liverpool will take the challenge of these specialist mortgages, aiding you whether you’re moving home in Liverpool or looking to take out a remortgage in Liverpool on the property once it’s in your name.
Below here are the three primary mortgage-related questions that our mortgage advisors in Liverpool get frequently asked when it comes to divorce and separation mortgage advice in Liverpool:
Of course, nobody goes into joint name home buying to split up, but these things are known to happen sometimes and to try to make changes to such a substantial financial commitment can prove challenging.
Regardless of gender, there may come a time when whoever is currently in the property will want to take over the mortgage as their own.
You may be able to demonstrate your ability to pay the mortgage on your own, without any help from your ex. However, this doesn’t change the way the lender will see your case. At the point of application, you bought the property jointly, and in the event of arrears, they will be allowed to pursue either of you.
Before going ahead with a sole applicant on the mortgage, the Lender will have to go through all the initial checks from scratch, whether you’ve kept up payments or not. In any case, this is to fully ensure you can afford it as they can’t just take your word for it.
If need be, there is the ability to have a family member or new partner step in to replace your ex-partner on the mortgage. There are different ways of assessing your affordability with various lenders, so if your existing Lender says no we may still be able to help you out.
One thing you must remember when it comes to separation or divorce is even if you leave the family home and live somewhere else. You’re still liable for any joint financial commitments (i.e. your mortgage) that you both took out together.
Agreeing with the ex makes no difference either until you get officially removed from the mortgage. You’re still liable for repayments if the balance falls into arrears.
When it comes to buying a new property, lenders will take the payments towards your old property into consideration. Because of this, it’s essential to speak with a Mortgage Advisor in Liverpool before you go ahead with making an offer.
Some lenders may be more generous when it comes to the amount they’re willing to lend you compared to others. When it comes to our recommendation on whom to apply for a mortgage agreement in principle with, we’ll consider this.
Depending on your circumstances, this is entirely possible. Lenders’ credit scoring systems analyse a significant number of factors before they offer you a mortgage.
One of these, of course, is ongoing financial commitments. In any case, this includes the mortgage payment you currently hold with your ex; alongside any other obligations, you may have.
Once we’ve taken all this information and uploaded it to our system. We’ll be able to provide an outline as to the maximum you may be able to borrow. This gives you a rough idea of your budget at the outset and the amount of deposit you’ll be needing to put down.
Moving on from previous joint financial commitments can be quite tricky. Just bear in mind that as far as lenders are concerned, it’s all about the risk. They ideally look to avoid repossession situations at all costs.
Most people take out a single mortgage, but there are plenty of reasons why you may want to take out a second mortgage. Here in this article, we will cover some common scenarios our mortgage advisors in Liverpool have come across to why you may require another mortgage:
If you currently have equity in your home and are looking for a second mortgage to release some of this equity, then we can help whether you are looking to release equity to fund another purchase, home improvements or something else.
If you are looking for remortgage advice in Liverpool, we can help explore all of your options. In any case, if you are currently on your lenders’ standard variable rate of interest, we can find a more competitive deal along with releasing your capital. A further advance from your current lender could also be an option here.
Suppose you are looking to help your children or grandchildren onto the property ladder in Liverpool. There are many products out there on the market that could help you achieve this. For a free mortgage consultation and to run through your options, please don’t hesitate to get in touch.
If you are looking for an additional mortgage to purchase an investment property, we can help you through the whole process. Whether you are a first time landlord or portfolio investor, we can offer to buy to let mortgage advice in Liverpool.
Firstly, this is a situation that we come across quite often, usually due to divorce or separations. Whatever your situation, if you are currently named on another mortgage and would like to purchase a new property to live in.
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Liverpoolmoneyman.com & Liverpoolmoneyman 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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Liverpoolmoneyman.com & Liverpoolmoneyman 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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