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Divorce & Separation Mortgage Advice in Hull

Divorce & Separation Mortgage Advice | MoneymanTV

When it comes to divorce or separation, it can be a challenging time. Processing the separation along with arranging finances as well as where you are going to live can slowly build up a lot of stress. Financial commitments should be at the top of your list and may come with some hurdles to overcome.

If there are children involved in these situations, the most common arrangement parents go for is where the children would live with the parent who is more of a stay at home parent. This means that the other parent would move out and there may be a point that whoever is ‘in situ’ wants to carry on the mortgage as a sole applicant. Another option is for both parents to leave the mortgage and begin their own.

Any mortgage commitments you made together could be an element that makes the process a challenging one. If you are finding it difficult to sort this out, you may look at the assistance of a Mortgage Broker in Hull who can provide you with the specialist mortgage advice you need.

Through our time as an expert Mortgage Broker in Hull, our deal encounter with specialist cases on a daily basis. Our experience has provided us with the opportunity to help and guide a large range of customers experiencing a divorce or separation. Below is the top three questions we get asked when people get in touch:

  • How do I remove my ex-husband/wife from my mortgage?
  • How do I remove my name from my ex-partner’s mortgage?
  • Can I have 2 mortgages?

How do I remove my ex-husband/wife from my mortgage in Hull?

With your mortgage commitments, it can be difficult if you are looking to change these. This is because both of your names are on your mortgage and it’s not as easy as it seems if you are looking to remove your now ex-partner off the contract.

If you do approach a dedicated Mortgage Broker in Hull for advice about removing a name from a mortgage, they need to be certain that the remaining applicant on the is able to and afford their mortgage completely as a sole applicant.

Both of you are required to have a full affordability assessment carried out on both of you even if you have kept p with mortgage payments or not. Sometimes, an applicant has managed to prove that they have been paying the mortgage payments without any help from their ex. However, this will not change the fact that their name is still linked into the deal and you still need to pass the lender’s check.

Around this time in the process, our team often find that people have already sorted out someone who will step in and replace the ex-partner on your mortgage. Normally, the person who steps in is either a family member, a close friend or a new partner altogether.

The way your affordability is assessed varies between lenders as they have their own unique way of carrying it out. With this in mind, don’t lose hope if you existing lender can’t help you out. You might find there is additional options out there for you as a homeowner so it’s always best to seek the help of a Mortgage Broker in Hull.

How do I remove my name from my ex-partner’s mortgage?

The good news is that the process works just the same, however, you are trying to move out and take your name off the mortgage. As mentioned, both of your names are still linked to your mortgage which means you are still responsible for any mortgage payments even if you choose to leave.

Regardless of if you have a verbal or written agreement between you both that states that your ex will be the one managing payments, it is not legally binding in the eyes of the lender so you will be deemed responsible.

In the event that you want to take out a mortgage on a new property, in your name, the lender will still take into account the mortgage payments for your old property. Therefore, it’s best you consider this if you are thinking of taking out a new mortgage. This is we always advise getting help from a professional Mortgage Advisor in Hull ahead of time.

We have found that people in these types of situations usually get confused and stressed out. This is where Hullmoneyman can provide a helping hand. Our friendly team can connect you to be of our experienced Mortgage Advisors in Hull who will be able to sort everything out for you. They can also advise you on the most appropriate option available to you as an individual looking at Moving Home in Hull.

You may find that a number of lenders are more generous than others when it comes to the amount they will lend to you. One may be strict and the other may be more lenient with them looking into your current mortgage commitments being a large factor in this during these circumstances. This is something we will take into consideration when recommending the most appropriate lender to apply for a mortgage agreement in principle with:

Second Mortgage Advice in Hull | MoneymanTV

Can I have two mortgages?

Depending on a variety of circumstances, many homeowners may have the option to have more than one and even more than two mortgages on different properties. This will involve a lot of things to be assessed from your lender and their credit scoring system if you were looking to apply for a second mortgage.

The overall reason for carrying out these tasks is to determine whether or not you can afford this route. In the circumstance where you are applying for multiple mortgages and are failing, this could negatively impact your credit score.

One of the many benefits of approaching a reputable Mortgage Broker in Hull, like ourselves, is that we are able to carry out a search for you without harming your credit file. As soon as we have keyed in all of your information, we can give you an estimation of the maximum borrowing capacity.

By having this information, you are able to have a rough idea of your budget including the costs of your monthly mortgage payments as well as current financial commitments you may have.

Dedicated Mortgage Advice in Hull

Some individuals find it challenging to move on from their current financial commitment, especially in cases like these. If you are in a similar situation, an expert advisor can provide a helping hand which can provide you with the help you need for the process of removing a name from a mortgage.

The aspect of moving home is already a stressful experience so adding a challenging situation like a divorce or separation can sometimes add some extra weight to the situation. Speak to a Mortgage Advisor in Hull today to see how we can help you.

What is a Tracker Mortgage?

Tracker Mortgage Advice in Hull

You’ll find that there are all kinds of mortgages available, though determining the best one for you, depends on your circumstances and what you’re looking to achieve. Remember, a mortgage deal is only as good as the situation it is paired up with.

As an example of this, you could get a tracker mortgage but then later realise that you want fixed payments (a fixed-rate mortgage), but you are locked into your deal and can’t switch.

As an open & honest Mortgage Broker in Hull, this is why we always highly recommend that you do your research first or get in touch with a trusted Mortgage Advisor in Hull, to make sure you end up on the right deal.

Feel free to watch our YouTube video from our moneymanTV channel on the topic of “What is a Tracker Mortgage?

What is a Tracker Mortgage? | MoneymanTV

What is a Tracker Mortgage?

If you are on a tracker mortgage, the interest rate on your mortgage is tracked from the Bank of England base rate, with another percentage is added on from your lender. Your lender cannot choose this additional rate.

For example, the Bank of England base rate could be around 1% and your lender has to put on another set amount of say 1%. This means that depending on the Bank of England percentage, your interest rate will always be a percentage above that.

Will a Tracker Mortgage in Hull benefit me?

A Tracker Mortgage is great if at the time of enquiry, the Bank of England’s rate is low. It tends to sit around 0-1%, however, it will rise and decline throughout the course of the year.

During the credit crunch in 2008, the market crashed, which meant that the interest rate shot up.

The highest we saw it go to was around 5%. If you also consider the percentage that your lender will add on top, you could’ve had 6% interest on your monthly mortgage payments.

On the flip side, in March 2020 we had a similar scare in the mortgage market, this time because of the Coronavirus. It played out differently this time though, as the Bank of England rate decreased massively, it went down to 0.1%.

If you were on a tracker mortgage during this time, it was likely that you were on a 1.1% interest rate.

Of course, during this period, you couldn’t even get a tracker mortgage. This was because the rates would’ve been too good to be true and at the end of the day, lenders are trying to make money and not lose it.

Whilst these rises and dips do happen, it’s important to remember the history of the Bank of England base rate too. Whilst they may increase, these rates were once upwards of nearly 17% (during the 70’s), so whilst they may seem high compared to recent years, it could be much worse!

A tracker mortgage has positives and negatives. They heavily rely on the economy, so if the market is performing badly and the Bank of England rate is high, a tracker mortgage is not the best mortgage out there.

If you reverse the situation and perhaps look at if the economy is performing well with a low Bank of England base rate, a tracker mortgage will give you one of the best rates you can get.

Different Types of Mortgages in Hull

There are a wide variety of different mortgage types available to home buyers and homeowners alike. Before making any hasty decisions, it may be beneficial for you to speak with a member of our mortgage advice team.

A trusted mortgage advisor in Hull can help you look around for deals, trying to find you the most competitive one for your personal and financial situation.

If you are a First Time Buyer in Hull, you will especially see the benefit of taking mortgage advice. We have been working with mortgages for over 20 years now and know lender criteria front to back, able to match you up with the right deal.

Even if you are looking to Remortgage or Move Home, you will also benefit from Mortgage Advice in Hull. As an experienced Mortgage Broker in Hull, we will work alongside you from the beginning of your process, through until completion and even beyond.

The Pros and Cons of Using a Mortgage Broker in Hull

As could probably be predicted from us, we firmly believe that there are some great reasons for customers to use a mortgage broker in Hull.

As a fair counter argument though, whether it’s via a branch or online, it is still completely viable to go direct to the lender yourself. Luckily we find that most people prefer to make use of a mortgage broker.

Here we will take a look at the pros & cons to both sides.

Pros & Cons of Going Direct

When talking about the option of going directly to a bank or building society, the first thing that immediately springs to mind is that you’ll be free from any broker fees. This of course will save you money.

Whilst that may be a point for, an immediate point against comes to mind too. In previous years, you may have thought “the bank manager will know my finances inside and out”, though when credit scoring was introduced, this no longer became a factor in the process.

One reason why going direct could be preferable, is that some lenders offer exclusive mortgage products that are only available by going direct. This is done so to attract a good spread of business from consumers and brokers alike, switching these exclusive products as they see fit.

On the contrary to this, some products may only be available by going with a mortgage broker. In this case, you’re not only able to see potential exclusive deals from your bank, but other lenders as well. A bank can only offer their own products!

Mortgage Market Changes in 2014

In 2014, the market changed and lenders were no longer allowed to sell mortgages on a non-advised basis to anyone who walked through their door.

Previously, it had been believed that non-advisors were trying to push actual advice on customers. This means they weren’t able to benefit from some of the consumer protection that comes with speaking to a professional mortgage advisor.

The changes meant lenders had to adjust. Heading towards the end of 2014, it was commonplace to be kept waiting over a month just to speak with an advisor. Sometimes today this situation still occurs, which is of course less than ideal when you have had an offer accepted and are ready to go!

Because of the issues that were occuring with these services, applications being made via mortgage brokers went on the rise. This is because many brokers out there, like ourselves, are able to offer customers a more flexible service, at times that best suit them.

When you book your free mortgage appointment with us online, you’ll be able to choose a timeslot that best suits your personal and work life. Oftentimes, your appointment can be booked in for the same day. There is no waiting around for somebody to get back in touch!

Affordability is definitely something that factors into people’s decisions to use a mortgage broker. No matter how good a lender’s deal might seem, you won’t get very far if they won’t lend you enough money!

Buying a house is so important to people, that many customers will opt to go with a trusted and dedicated mortgage broker for professional and personalised mortgage advice in Hull.

Handling More Complex Cases

Nowadays we find that a lot of mortgage applications aren’t as simple as they once were. For one reason or another, there are a lot of contributing factors that can make the mortgage process a lot more challenging now.

Some examples of these are, but are not limited to:

  • Poor Credit History.
  • Self-Employed Income.
  • Mixed Source of Deposit (Savings/Gift).
  • Let-to-Buy (Renting Out Your Property to Buy Another).
  • Contract Workers/Zero Hour Contracts.
  • Affordability.

In the past, it was a lot easier for lenders to stand out from the competition by simply offering a deal that was similar to, but better than another mortgage lender on the market. In modern times this is very different, with lending criteria being the big difference between one option and another.

An example of this is the differences in leniency towards those who are looking to obtain a Self-Employed Mortgage in Hull. Some lenders are willing to be a bit more sympathetic towards previous discrepancies on your credit report. Others, not so much.

A Tailored Process

Your situation is unique to you, it is very unlikely that someone will have the exact same circumstances as you. You could be looking for First-Time Buyer Mortgage Advice in Hull, ready to take the first step towards being a homeowner.

You might be in a tight spot and need some Remortgage Advice in Hull, ahead of consolidating some debts (something that definitely requires an expert opinion). When you explain your position to an experienced mortgage broker, they may have dealt with something that is at least similar in the past.

This allows them to personalise your mortgage advice service and guide you along each step. With a little luck and a lot of hard work, your mortgage advisor in Hull will hopefully be able to recommend the most suitable mortgage, at the lowest rate available to you.

Beyond that though, it’s about more than just getting a mortgage. Even if the application itself is pretty simple to run through, our clients rely on our expertise and industry experience for so much more.

We are able to run through how much the applicant is willing to offer on their potential new home. Our trusted team of mortgage advisors in Hull are able recommend other professional services such as solicitors and property surveys.

Responsive Service

Another reason why using a mortgage broker in Hull could be preferable, is that we tend to be far more responsive than the lenders might be.

Our hard working team quite regularly work late into the evening, outside of normal hours, giving maximum effort on customer cases to ensure the service is prompt but also effective.

Something that is often overlooked when looking at why customers may prefer a broker, is that people’s day-to-day lives are so much busier. A mortgage might be important, but you may have no free time! A mortgage advisor in Hull will take the weight off your shoulders.

Professional applicants especially see the benefits of using a mortgage broker, as they have clients of their own that they charge out their services to and they appreciate having an expert to do the work for them whilst they keep busy.

Mayhap in the future we will see lenders wanting to take business back from the brokers. In the event of this, we may see a more technological approach from them. The world seems to be more focused on that these days.

That’s great news for customers who are fine with speaking to bots or using automated systems. Even more so when the case is straightforward.

For most of us though, there’s an element of “realness” when speaking to a real person. We are getting that “human touch” that only speak to a mortgage advisor in Hull can provide for you.

Book your free mortgage appointment online now using the “Get Started” button. Time slots are available every day, from early until late, at a time that best suits you (subject to availability).

What is an Interest-Only Mortgage?

Interest-Only Mortgage Advice in Hull

What is an Interest-Only Mortgage? | MoneymanTV

There are thousands of interest-only mortgages across the nation that are maturing every year and the homeowners who have one of these may be caught off guard when it comes to having to pay off the capital sum that is owed.

In this article, we take a look at what interest-only mortgages are and what can be done when situations like this occur.

A Summary of Interest-Only Mortgages

Back in the ’80s and ’90s, it was actually really common for residential mortgages to be set up this way. The purpose of these mortgage types, was that you would only pay back (over the course of your term) interest on the amount that you borrowed, with the remaining capital lump sum being paid back once the term ended.

For anyone who had previously taken out an interest-only mortgage, it is likely that you will have been advised to set up a repayment vehicle, perhaps something like a low-cost endowment policy.

The policy would mature over time and was designed with the purpose of helping you to repay the capital balance in full, whilst also giving you sufficient life cover for the duration of your mortgage term. Unfortunately, there are a lot of people who weren’t made aware of the risks attached to this type of product.

One of the risks that cropped up, was that there was no guarantee the policy would actually mature enough to cover the costs of your mortgage debt, which in turn led to many applicants being compensated for them being mis-sold a product.

Nowadays, interest-only mortgages tend to be a popular option for customers who are looking at their options for Buy to Let Mortgages in Hull. These types of people are landlords who buy properties to earn some extra income.

Why do people still have interest-only mortgages?

It is not very common to come across customers who have taken out an interest-only residential mortgage in recent memory, as they are considerably difficult to obtain unless you can prove that you have a very solid strategy for paying back the capital at the end of your term.

For customers who took out an interest-only mortgage at any point in the late ’80s or ’90s and have not switched it to a capital repayment, then you should absolutely look to take action sooner rather than later.

What can I do if my interest-only mortgage is ending?

If you happen to be in this sort of position, the chances that your mortgage lender will send you a letter or give you a call, asking how you plan to pay the capital back will be slim.

It is important to always keep open a line of communication with the mortgage lender, remaining honest and open with them. Contrary to the belief of some, a lender truly does not want to take your property into possession and will only do so if they have no other choice.

Instead of letting things get to that point, here are some other things that you could look to do instead;

  • Ask your lender to convert your interest-only mortgage into a repayment mortgage.
  • Sell your current property and consider downsizing into a more affordable and manageable property.
  • Use savings/other investments to repay whatever you have remaining on the mortgage balance.
  • Remortgage to a new lender, for a better rate.
  • Consider taking out a Retirement Mortgage.

The retirement mortgage market is an area of the world of homeowners that is currently thriving, largely due to the amount of interest-only mortgages that are reaching the end of their terms, without any concrete plans in place to actually pay back the capital.

There are a lot of retirement products available to customers across the country nowadays, and some providers may even possibly let you service the interest element by way of regular monthly repayments.

Creating this sort of agreement means that when you die, the capital balance that is left to pay, is repaid from the house sale and the surplus can be given out to your family.

Is it still possible to obtain an Interest-Only Mortgage?

Interest-only mortgage are still in existence and can be obtain, though there are limitations as to who can obtain one. For example, you may possibly be a landlord with an extensive property portfolio or have some other investments in place, which you can use to help you repay the balance.

Lenders will now take an in-depth look at your strategy for repaying the loan, analysing a lot more deeply than they would’ve done in the past.

They do this in order to ensure that they are only lending for a property that they are confident won’t default. In addition to this, they will also want a much larger deposit to go down, potentially as much as 50%.

They will also want to future proof any of your plans before going ahead. An example of this would be checking that you have enough equity in your home to potentially downsize to a reasonable property down the line.

As always, our team of dedicated mortgage advisors in Hull, here at Hullmoneyman, are always happy to run through the options that are available to you as a home buyer or existing homeowner in Hull. Book your free mortgage appointment online today and we will see how we are able to help you.

Can I Have Two Mortgages in Hull?

Second Mortgage Advice in Hull

Dealing with one mortgage can be difficult enough, never mind two!

There are many different reasons why someone may want more than one mortgage, some are more common than others. As a Mortgage Broker in Hull, we see that the most popular scenario is when a landlord wants to take out another mortgage for a Buy to Let.

Whether you’re in this situation or something similar, our mortgage advisors in Hull are able to help you through your second mortgage journey.

Can I Have a Second Mortgage? | MoneymanTV

Lenders will look at your current mortgage affordability, income and expenditures before accepting your second mortgage offer. They will need to know that you can afford another mortgage.

They may also require you to put down a higher deposit on this mortgage. This will not be around the 5% mark; it could be anywhere between 15-40%.

Why would you take out a second mortgage?

  • Are you looking to purchase a new property to rent out as a Buy to Let?
  • Do you want to buy a property to rent out your current home as a Let to Buy?
  • Are you buying a second home for your children to help them get onto the property ladder?
  • You want to take out a second mortgage to raise additional funds for your current property?
  • Is your name associated to an existing mortgage and you want to buy a property in your own name?

These are the most common mortgage situations that our team come across. During our years of working within the mortgage industry, we’ve come across all of these situations and managed to help many customers through them. Our team of Mortgage Advisors in Hull have in-depth knowledge and experience with Buy to Let mortgage criteria.

Second mortgage for a Buy to Let

A Buy to Let is a property that you rent out and do not live in. They’re usually bought by current or aspiring landlords.

Buy to Lets will likely require you to put down a higher deposit amount. For any Buy to Let, you’re going to have to put down an amount between 25-40% loan to value rate.

Buy to Let mortgage repayments work the exact same way as your current mortgage. You will be issued with monthly bills and interest rates will apply.

If you’re taking out a second mortgage for a Buy to Let property, it may benefit you to speak with a professional Buy to Let expert. Our advisors have been working with local landlords in Hull for many years now, building up strong relationships with them and helping them with their remortgages on their property’s.

Second mortgage for a Let to Buy

Let to Buy works in the same way as a Buy to Let, however, you are moving home into the property that you’re purchasing and renting out your current one. Deposits and payments will remain the same as a Buy to Let as you’re still taking out two mortgages.

Our Buy to Let Mortgage Advisors in Hull are also experienced in working with Let to Buys. Book your free mortgage with one of them and find out whether you can qualify for one.

Second mortgage to purchase a home for your children

This scenario is becoming more and more popular, particularly in recent years. Parents are becoming aware of the struggle to get onto the property and the costs of a mortgage.

With the constant rise of inflation and property prices, First Time Buyers in Hull are needing a helping hand to move home. Sometimes people require just a little bit more than a gifted deposit.

Applicants receiving help from grandparents and parents is not unusual. It’s likely that they’ve already paid off their mortgage and can afford to offer their help. The family member offering the help will have to pass lenders affordability checks to make sure that they can afford to pay for their child’s or grandchild’s mortgage.

Second mortgage to raise funds

When it comes to taking equity out of your home to raise funds, people normally use the money for home improvements, debt consolidation, to buy something such as a car or to fund a wedding etc. Another option that people sometimes choose is to release equity and take out another mortgage.

This situation could also be known as a further advance. A further advance is when you borrow more from your current lender to fund something like home improvements or a second mortgage.

The amount you can borrow would be entirely dependent on the amount of equity in your property and you would still need to prove that you can afford the additional mortgage amount on top of your existing one.

The amount that you can borrow from them will depend on the amount of equity in your property. Also, you will still need to prove that you can afford a second mortgage.

Named on an existing mortgage and want to buy a new home?

Often, it can be difficult to get your name removed from a mortgage, therefore, sometimes people leave their name on. Even though you’re still named on a mortgage, it can be possible to take out another one in your own name.

When this situation comes about, it’s usually because of a recent divorce or separation. Unfortunately, the financial complications must be addressed sooner rather than later in a scenario like this.

When you want to take out a second mortgage in your sole name, it may be a little harder to get accepted. Your lender knows that there’s just one applicant and you’re still linked with another mortgage. Even if you’ve made agreements with your ex-partner that you’re not going to contribute to their mortgage payments, they will still see it as a potential liability.

This situation can get very complicated and stressful, therefore, we recommend that you speak with a Specialist Mortgage Advisor in Hull. Our advisors are very experienced in dealing with divorce and separation Mortgage Advice in Hull. For help and advice, book your free mortgage appointment online and speak with an expert.

When is the Right Time to Remortgage in Hull?

Remortgage Advice in Hull

Remortgaging in Hull could be the next step for you if you have decided to stay in your current property and not move house. It is a way for you to stay in your current property with more favorable interest rates and works by being transferred from your existing deal to a better deal. As an experienced remortgage broker in Hull, this is something our team of mortgage advisors can help with.   

If I can already afford my current mortgage, why should I remortgage?

The banks count on their customers not being as knowledgeable and shopping around for a better deal. Often, you will find there are cheaper offers for you elsewhere. Ways to find them could be speaking with a knowledgeable mortgage advisor in Hull who can assist with comparing deals or you can seek these out yourself through a price comparison site. From this, you will find there is probably a deal appropriate for you. However, price comparison sites mainly look for your best deal on an interest basis.

Providing that you’ve been on your current mortgage deal for some time, there is a possibility that you could be on a low Bank of England tracker deal. You could even be paying less than 1% so, it may be best for you to stay with that mortgage deal. This could become an issue if the base rate eventually rises as well as your payments. 

Can I borrow more money for home improvements?

Yes, there is a chance providing that you pass the affordability checks and assuming there is a good amount of equity in your property. From this, you may be able to increase your mortgage to fund future home improvements.

It can be a very wise option because it gives you an updated home and the chance to increase the value of your property if done carefully and with the right help. We find this can help customers in the process of updating their kitchen, converting a loft, or creating a home office.

Can I borrow more money to fund other means?

As well as home improvements, you can borrow extra funds for most legal purposes, this could include:

  • Debt Consolidation
  • Property Investment (e.g., a Buy to Let)
  • Consumer Purchases
  • Gift to relative

Is adding unsecured debt to my credit a bad thing?

Adding debt to your mortgage might not be the best idea. If this happens, you will end up paying back more interest overall through extending the term of your debts to make the payments lower.

Another risk of this is that you are taking debt, which is not secured and, securing it on your home. It could create the potential risk of having your home repossessed. Something that will likely be a problem would be consolidating debts that you can afford or credit cards that are 0% interest.

It’s important to know that you need to speak to a qualified mortgage advisor prior to securing any debts against your home.

An option you could take is to reduce your monthly outgoings to avoid missed payments. By doing this, you are decreasing the risk of your credit rating being in a bad state.

Will I be offered a remortgage by my current provider?

A “Product Transfer” or “Retention” product, is one option a lender will offer. This method allows the lender to provide you with a new deal to stay with them. You would need to contact your provider directly to see what is available to you, however, this option isn’t guaranteed.

In some cases, lenders will allow you to make a product switch online without providing further information or advice.

Staying with the same provider and switch products might be an easier option, however, putting a new application to a different lender may save you a lot of money.

You will find that many banks would offer favourable rates to new borrowers over existing ones. They will be a time where lenders will take a more ethical approach that could have a positive change on customer loyalty.

Mortgage Advice Service in Hull

Remortgage for Home Improvements in Hull

Remortgage Advice in Hull

First of all, what actually is a remortgage? A remortgage is when you swap out your current mortgage product for a new one. People usually do it to try and get a better rate of interest.

A remortgage can also be known as a product transfer. The difference between a remortgage and a product transfer is that when you remortgage you take out a new mortgage with a different lender, whereas when you transfer products, you take out a new mortgage with your current lender.

There are many different reasons why someone may want to remortgage/transfer products. At the end of the day, it’s all down to what the homeowner wants. Through a remortgage/product transfer you may be able to get a better rate of interest, consolidate your debts into your mortgage, raise capital for things such as home improvements or for something else.

In this mortgage guide, we are going to cover how you can remortgage/transfer products for home improvements.

How does it work?

Before remortgaging, you’ll have to calculate the intended costs for the home improvements being made. Depending on how you want to improve your home, the costs may not be quite as much as you expected them to be. This is because when you remortgage to improve your home, the costs are incorporated into your mortgage. This means that your current monthly payments will include both your mortgage and your costs for home improvements. Your overall payments may only increase by a small amount (e.g. as little as an extra £60 per month), depending on how big the home improvements are.

You must consider all of the costs that come with remortgaging for home improvements. Here are some factors that people miss:

  • Architect’s plans and services
  • Planning permission (Neighbours etc.)
  • Building costs (Materials, Workers etc.)
  • The VAT
  • Building regulation inspections

Why would I want to remortgage for home improvements?

We’ve seen that the most popular reason for people wanting to remortgage for home improvements is to make more living space. This may be because the homeowners are growing/starting a family or just want more space in general.

The process is simple, can be carried out easily and also saves you from moving home in Hull. Rather than wading through the whole moving home process, if you already love your current home, why move? It often works out much cheaper to remortgage than to move home.

Here are various reasons why you may want to remortgage for home improvements:

  • Kitchen conversion – If you want a new, modern kitchen, you can remortgage to incorporate the costs for one into your mortgage.
  • Conservatory – Conservatories are a great place to sit and enjoy the view of your garden without even leaving your home. This is the most popular reason for people remortgaging for home improvements.
  • Loft conversion – Lofts are also very popular amongst homeowners looking to remortgage for home improvements. A loft allows space for storage or for another bedroom.
  • Garage – If you need more storage space or want more room for an extra car, a garage extension could be what you need.
  • Garden extension – Many people don’t realise that it’s possible to extend their garden through remortgaging. If you want a change of scenery in your back garden, this option could be perfect for you!

Remortgage for home improvements summary

If you are thinking of taking the remortgage for home improvements route, feel free to contact us, we would be more than happy to help. Our team are experts and will give you remortgage advice in Hull exactly when you need it!

Our hardworking team are available 7 days a week so that you can get in touch at a time that best suits you. If you also want to remortgage for another reason, we are still able to help you!

Divorce & Separation FAQ’s

Going through a divorce or separation with your partner when you have a joint mortgage together can be difficult. In this guide, we have compiled a list of frequently asked questions that have been answered on this subject. 

Do I Need to Keep Paying my Half of The Mortgage?  

Regardless of if you are going through a divorce, you need to keep paying the mortgage, even if you are living elsewhere in the meantime. 

You and your ex-partner both agreed to take out a joint mortgage and are both held equally liable for the debt until the mortgage gets paid off, regardless of whether it’s just one person living there at the moment. 

Failing not to pay the mortgage on time can harm your credit history as well as your ex-partners, and your home may be repossessed if you do not keep up with repayments on your mortgage or any other debt secured on it.   

When Should I Inform my Lender?  

As soon as you know you will be separating, you need to inform your mortgage lender sooner rather than later, especially if you find it challenging to meet your mortgage payments. 

What are my options? 

1. Sell the Property. 

If you both decide it is best to move out of the property, sell up, and pay off the mortgage. 

Any equity left after the mortgage has been paid off will be split between the two of you. Strictly who gets what from the leftover funds can be open to dispute.  

If you move out and are looking to purchase a new property, our trusted team of mortgage advisors in Hull are available 7 days a week. They are ready to recommend you with the best deal, offering open and honest mortgage advice in Hull. 

2. Continue to Make Those Payments 

If the divorce is on good terms, some decide to stay and continue paying the existing mortgage, and this method can be beneficial, especially if your mortgage is fixed for a couple of years. 

3. Stay in the Property 

If you both conclude that you or your ex-partner will live in the property, the current resident will have to remortgage in their sole name. 

If you decide to become the sole owner of the property, and there is an existing mortgage in joint names, you will need to remortgage. The new mortgage will be taken out in your sole name, therefore your affordability will be reassessed.  

Can I get a Second Mortgage? 

Yes, you can have more than one mortgage. Lenders each have different credit scoring systems and take various factors when applying for a second mortgage. The main one is your current financial commitments. Before applying, you need to make sure you can afford a second mortgage because if you get declined, it could negatively impact your credit file. 

You will be happy to know that here at Hullmoneyman. We can perform a search for you that won’t damage your credit file. Once we have the necessary information gathered, we can then confirm the maximum amount you will borrow.  

This can help you get a good idea of your budget and how much your monthly mortgage payments will be on top of your current financial commitments. 

It can be challenging to move on from your current financial commitments, and this is why having an expert Mortgage Advisor in Hull by your side could prove highly beneficial.  

Moving home can be a stressful experience, and if you add that to a complex situation like a divorce or a separation, it can sometimes all get a bit too much. Speak to a Mortgage Advisor in Hull today, and we will see how we can help you. 

What if I am in Negative Equity? 

If you get divorced while your joint home is in negative equity, it can be challenging to sell the house and pay off the mortgage in full. 

You might have to split the outstanding debt between you or agree with your mortgage provider. 

The Importance Of Having Your Mortgage Reviewed in Hull

Mortgage review advice in Hull

A mortgage is one of, if not the single biggest financial commitment of your life. Even though this is the case, we find that many people spend very little time thinking about their mortgage and just continue paying their monthly payments no matter their rate or fees.

If you’ve been on the same mortgage deal for quite some time, a mortgage review is definitely something worth considering. It could even allow you to access a better rate, you’ll never know if you never look!

What is a mortgage review?

A mortgage review is exactly what you’d expect it to be; you approach your lender, building society or Mortgage Broker in Hull and let them know that you want to evaluate your mortgage situation to see whether you can access a better deal or not. The mortgage review process will work in the same way as the usual mortgage process.

You will need to provide documents to evidence that you are who you say that you are, as well as your current income and your monthly bank statements. They will also evaluate your credit score and your personal and financial situation. This should give them an indication of whether you can access a better deal or not.

If you can’t access a better deal, no worries! As a Mortgage Broker in Hull, we only charge for our services at the point where you move forward with a mortgage deal. It’s up to you if you continue with us or not.

Why is a mortgage review important?

Sometimes, it can be a pain to go through the whole mortgage process again, however, it could massively benefit you financially down the line. So in the long run, it could be worth it if you end up on a much better rate!

Undergoing a mortgage review from time to time could end up saving you lots of money. If you haven’t moved home or reviewed your mortgage in a while, you could’ve possibly dipped onto your lenders’ standard variable rate (SVR). This is likely to have a much higher rate than your previous mortgage deal. 

Standard variable rate (SVR)

You’ll find that lenders’ SVR is much higher than their fixed-rate products. In some cases, their SVR is their highest rate. When on a lenders’ SVR, you aren’t tied into any particular deal, you can change deal whenever you’d like once you find another deal.

If you are on a mortgage term based deal, you will have to wait until the term finishes until you can find another deal (unless you are willing to pay a lot of money to switch). Although, if you forget to look for another deal whilst approaching the end of your mortgage term, this is the point where you will switch onto your lenders’ SVR. This is why you need to be aware of when your term is coming to an end.

Remember, you are under no obligation to stay with the same lender or Remortgage in Hull, if you want to shop around elsewhere to find a better deal, you can do so.

Equity Mortgage Advice in Hull

Lots of equity in your home

Due to the influx in housing prices, if you’re lucky to have lots of equity in your home, you may be able to access more competitive mortgage deals.

Mortgage rates are based on loan to value ratios, as a rule, the more equity you have, the lower your interest rate will be.  

You may also have capital raising options available to you if that’s something that you are interested in.

Little equity in your home

If you are a relatively new homeowner, or your property has yet to increase in value, there may still be money-saving options with your current mortgage lender. 

Usually, if you’ve kept up-to-date with your payments, you may also be able to access product transfer deals.

The true cost of a mortgage deal

In some cases, the mortgage deal with the lowest interest rate isn’t always the best one, this is because low-interest-rate mortgages often come with high arrangement fees.

A transparent Mortgage Broker in Hull like us will consider all of the mortgage costs for you and work out an estimation of how much a mortgage deal switch over will cost you.

We’ll be able to take into account your personal situation, your credit history, the property being mortgaged, valuation fees and any arrangement fees that are payable and recommend the most suitable one for you!

Get in touch for Remortgage Advice in Hull today.

Agreement in Principle and Soft Credit Searches

Agreement in Principle Mortgage Advice in Hull

What is an Agreement in Principle? | MoneymanTV

When you pass the lenders credit score to qualify for a mortgage, you will obtain an agreement in principle – commonly known as an AIP for short. Having an agreement in principle in place allows you to make an offer on a property. It also can be very useful when negotiating on the asking price, as the seller now knows that you are serious and ready to start.

How does your Agreement in Principle affect your credit score?

This depends on the type of credit search the lender decides to undertake. They will either perform a soft credit search or a hard credit search on your file:

Soft credit searches

Nowadays, it’s more common for a lender to carry out a soft credit search over a hard credit search. They usually choose to perform a soft credit search because they require less information out of it and there is a lot less chance of your credit score being affected by this one.

Whilst the financial institution doing a soft search obtains less information about you than if they had done a hard search, an agreement in principle from one of these lenders is usually still a very strong indication that your application could be accepted.

Hard credit searches

Hard credit searches go a lot more in-depth than soft searches. The main difference between hard and soft searches is that hard credit searches can affect your credit score, by leaving a footprint. Anyone who looks at your file in the future will be able to see that lenders have hard searched your credit score.

This won’t really affect you if you have a good credit score. The problems can come if your score is lower and you have had more than one hard search on your file, as it could look like you are trying to apply for lots of credit at the same time. This is likely to put off a lender.

Does an AIP guarantee a mortgage in Hull?

You will never be guaranteed a mortgage, but having an agreement in principle in place ahead of time will certainly work in your favour. Once you provide the lender with all your documents, an Underwriter will review everything and make a final decision. Agreements in principle usually include small print that can easily be missed, which is why speaking to a Mortgage Broker in Hull can be useful.

When customers reach out to us for help about their agreement in principle, we find that in some cases they’ve been turned away at full mortgage application stage.

The documents required include, but are not limited to, things like ID, payslips and bank statements. As your expert Mortgage Broker in Hull, we take pride in helping you be prepared for all this. If you are looking at starting your mortgage process, you may need to look at how to get prepared for a mortgage in Hull.

It’s necessary to have your agreement in principle in place when making an offer. Most credible estate agents will want you to provide evidence that you are able to proceed with the purchase.

How long will my Agreement in Principle last for?

Normally, your agreement in principle needs renewing after around 30-90 days. As an experienced Mortgage Broker in Hull, we still recommend getting one as early as you can, in order to avoid finding your dream home only to be told you aren’t eligible for a mortgage.

You don’t always need to buy the first house you see after you get your agreement in principle. It’s a simple process, so if it does happen to expire, you can just obtain another.

You may be a First Time Buyer in Hull or you might be thinking of Moving Home in Hull and are looking for great Mortgage Advice in Hull. If so, we think that you will benefit from our dedicated mortgage advice services in Hull.

We offer a free initial mortgage consultation with one of our expert Mortgage Advisors, so feel free to get in touch today and we will see how we can help!

Hullmoneyman.com & Hullmoneyman 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

The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
Should you have cause to complain and you are not satisfied with our response to your complaint, you may be able to refer it
to the Financial Ombudsman Service, which can be contacted as follows

The Financial Ombudsman Service, Exchange Tower, London, E14 9SR
www.financial-ombudsman.org.uk

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Hullmoneyman, 410 Wincolmlee, Hull, HU2 0QL.

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