Product Transfer V Remortgaging in Middlesbrough

What is a product transfer?

When your introductory mortgage deal comes to an end your mortgage lender may offer you a new deal to stay with them, this is known as a product transfer.

Are you rewarded for being loyal?

Unfortunately, lenders do not always reward your loyalty and the offer they make you may not be competitive with deals you could get elsewhere. Even more annoyingly, these product transfer rates are not as good as the deal they offer new customers either!

Tempted by an online switch?

Whilst swapping to a new deal with your current Lender may well be fairly easy online, it is always in your interest to see what other deals you may be eligible for. Lenders will also tempt you to effect a new deal online without taking advice.

This can be really dangerous because if you do this without advice you are waving goodbye to all the valuable consumer protection you would otherwise have benefitted from.

You’ll be opting out of Mortgage Advice in Middlesbrough

We have seen numerous examples of customers affecting these “follow-on” deals and locking themselves into an inappropriate deal. Because they opted out of advice then they have waived a lot of their rights in terms of making a complaint.

We did have a recent case where a customer who was pregnant did this and was declined for a small further advance to fund some necessary home improvements a few months later. She then had to pay a hefty early repayment charge to swap to a new Lender who would grant her the additional funds.

Always Get Mortgage Advice in Middlesbrough

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 Middlesbrough then all the regulation and consumer protection will apply.

In short, even if your requirement seems straightforward we recommend you always take mortgage advice in Middlesbrough– a second opinion costs nothing and making a mistake when taking a new product can be costly.

The remortgage market is highly competitive and savings can generally be made by searching the market for a new deal, this is why looking into remortgage advice in Middlesbrough is hightly reccomended.

Buying a Property in Joint Names in Middlesbrough

Looking to purchase a property in Middlesbrough?

Statistics show that in recent years property prices have increased at a faster rate than wages. We have found that many people look to purchase in joint names with a partner or friend in order to be able to afford a suitable home at a more reasonable price.

Purchasing in joint names usually will increase your maximum borrowing capacity, as the lender will look at all parties income and take this into account when running the affordability calculations.

How Many People Can Co-Own a Property?

Surprisingly, we work with some lenders who will accept up to 4 people co-owning a property. If for any reason, one of the co-owners of the property decides to no longer contribute to the mortgage repayments, any joint owners will still have the legal right to reside in the property unless this is ruled otherwise by a court.

If you would like to increase the mortgage at a later date, you must gain consent from all co-owners involved. It’s therefore essential that you make long term plans about what will happen in the future should you end up wanting different things. 

Joint Tenancy or Tenancy in Common?

We find the most popular Tenancy for married couples or those in civil partnerships is ‘Joint Tenancy’. With this type of tenure, if either party were to pass away, the property would be handed over to the co-owner. If you have taken out relevant life insurance, at this point, your mortgage would be repaid.

With ‘Joint Tenancy’, when looking to remortgage or sell the property in the future. It would be required that all names on the tenancy agree to this. 

When purchasing with relatives or friends, we find that ‘Tenants In common’ is the most popular tenure. You will still jointly co-own the property but are have the flexibility to do so not with equal shares. This works well if one party is making a more significant financial contribution than the other.

With ‘Tenants in Common’, another positive aspect, is that you can act independently. For example, you can choose to sell or give away your share of the property to someone else without the need to consult other parties.

Do I have to pay the mortgage if we separate?

All mortgage borrowers are jointly and severally liable for mortgage payments If you find yourself paying all future payments without a co-owner, you will still be liable. Preventing the mortgage from falling into any debt.

As mortgage arrears showing on your credit file could have the potential to stop you from obtaining a mortgage in the future. It is best to think of it like this: You don’t own 50% of a property, you own 100% jointly.

How do I remove my ex-partner from a Joint Mortgage?

Lenders will need to be confident that you can keep up with monthly payments on your own before they can approve of this happening.

When purchasing a home with a partner, it’s a whole new chapter starting in your life and can be a great way to start fresh with another individual. In all the excitement of moving home, it can make you wonder about the justifications if things go sideways.

As seen from above, a mortgage is a big financial commitment and making changes is going to be a challenge.

With physical proof that you can maintain mortgage payments since your old partner moved, the lender may agree to your request to put the mortgage into your single name. However, Lenders like the idea that there are two people to pursue in the event of arrears occurring. To remove someone, they will carry out a brand-new affordability assessment, precisely in the same way as they would at the point of purchase.

Whilst a lender may not accept a request, it’s always beneficial to speak with a mortgage advisor in Middlesbrough beforehand, as there may be other lenders who could agree to your transfer request.

It can also be worth talking to family members to see if they can help you out to make life a little bit easier. They can do so by replacing your ex on your mortgage or by gifting you a lump sum to reduce the amount owed meaning your savings are able to contribute to easing your future mortgage payments.

Can I remove my name from a Joint Mortgage?

If you and your partner split up and you leave the family home, then your responsibility is still shared for mortgage payments. Even if an agreement is settled with your ex that they will make all the payments.

If you are sending your partner money each month, you should keep an eye on your credit report to ensure they are paying the mortgage. If they default, then it will impact your own score.

Is your name still linked with an existing mortgage? Then the payments for that will be considered if you buy a new home of your own. That will mean Lenders might not lend you as much as you would like.

Buying a home with someone is different from renting with them. It’s always better to agree on what would happen to the house should things not plan out as expected.

Whether you are a first time buyer in Middlesbrough or moving home in Middlesbrough and thinking of purchasing in Joint Names. Perhaps you looking to remove a name from a mortgage by looking into a remortgage in Middlesbrough in your sole name? Book your free mortgage appointment to speak with one of our friendly mortgage team, we will be more than happy to answer all of your questions.

How to Sell Your Home Quickly in Middlesbrough

Some Helpful tips From Your Friendly Mortgage Broker in Middlesbrough

Most homeowners who are looking at moving home in Middlesbrough to buy a new family home will need to sell their current property in order to proceed The equity (the amount at which you sell for without your current mortgage balance added on) will contribute towards a security deposit for the next purchase. You can top this up from savings or a family gift if you wish.

There is always a “magic number”, the minimum that a seller (vendor) is willing to accept to agree on a sale. However, when a home is listed for sale, it is important to market and presents it in the right way. It can make a big difference in terms of how quickly it sells.

The asking price should portray that of its surrounding properties. Be reasonable, some estate agents may just suggest the highest possible price for the sake of it. With everyone now able to advertise on Zoopla and Rightmove, it’s a good idea to make the dive into the market and get as many viewings as possible, within the first two weeks.

If interest in your property seems to be low, there’s a chance it was overvalued.

Prior to putting their current property on the market, people often like to research and visit other properties to identify which one might become their new home. If this is you and you need a quick sale, here are some tips to give yourself the best possible chance of selling it.

Attention to Detail

Something simple like a freshly jet-washed drive and neatly cut front lawn indicate that you are the kind of person that looks after their home. You need to aim for that feel-good factor, it’s more than likely that the potential buyer will think the inside is likely to be as nice as the outside.

Got Kids?

If you have any kids, it’s best to put away any bikes or loose toys in the front garden. Make sure your front door looks appealing (clean) and the doorbell works. Spend a little bit of cash getting a nice new doormat or welcome sign.

Upkeep

Go around each room and caution around rooms like kitchen or bathrooms, pay a lot of attention ensuring that they are spotless and have a high hygiene level. Cupboards and wardrobes should be neatly stacked and free of clutter.

One of the critical things is to ensure your home is immaculately clean. Wash your curtains, blinds, wipe down your walls and clean all your floors and windows. All repairs should be up to date too and clean bedding on the beds. Windows should be sparkling clean inside and out. New carpets in smaller rooms can be an inexpensive way of creating the impression that your house is welcoming and has been well cared for.

If you are a smoker it’s a good tip to air the rooms out before the potential buyer arrives. Ensure there are no bad smells lingering, buyers can be put off bad odours from pets or cigarettes.

Atmosphere

You will want your buyer to feel at home and relaxed as they view your property so try and avoid having pets or young children getting in their way as they move around. That said, if it’s a family home you are selling then just a couple of family pictures and paintings can help as it will them envisage bringing up their family there too.

First time buyers in Middlesbrough like to walk on their own, if there are two of them allow them some breathing space to talk amongst themselves but be ready to answer their questions honestly.

Your bathroom should be presented spotless declutter any items like cosmetics and co-ordinate your towels and flannels, maybe consider doing a small investment look at ways you could create a fresh feel with some minor renovations. Make the floor space spotless.

Lighting

A well-lit house is more appealing to potential buyers, this is achieved through making sure lights brighten up rooms and all curtains and blinds are open. Plants often block out light so place these strategically throughout the house.

Fresh Coat of Paint

White walls look fresh and clean, it also has the added benefit for the buyer of being extremely easy to work whenever they redecorate. It helps to buyer avoid scraping previous wallpaper off the walls.

Interior doors should all be freshly painted. Polish the brass fixtures and ensure all doors open and close nicely, no broken locks etc.

Buyers are looking at making the most of space, it’s recommended storing objects into cupboards and have clean and tidy worktops.

Gardening

In terms of your garden the viewer may want to look inside your shed so don’t just throw everything in there, it needs to look neat and tidy.

Pay attention to your fences, make sure all the slats are in place, and it’s nicely painted or creosoted. Tidy up any visible items such as outdoor barbecues. People do still like to see a colourful garden so ensure its beautifully turned out. Flowering plants are lovely to see if the season is conducive.

Make your garage space more efficient therefore providing more space for a vehicle.

Another Perspective

People buy from people, so it’s always better if you do the viewings yourself as the seller. You will no doubt feel very passionate about your home and can show it off in its best light, albeit pointing out any small issues that you have encountered over the years (“We had a leak, we fixed it”) to present a balanced view.

Estate Agents do want to earn their commission, but they will have a certain amount of knowledge on your home compared to you.

Finally, remember the emotions attached to buying a home. If you have a family, it helps to accentuate it has been a happy home for you, and this is sure to rub off on the viewers if they are thinking of raising a family also.

A Guide to Remortgages in Middlesbrough: Top Reasons to Consider

Remortgage Advice in Middlesbrough

If your current mortgage deal is coming to an end or you feel that you need to borrow some extra money then it could be near the time to remortgage in Middlesbrough. It normally happens quite often that customers leave it too late and ultimately end up lapsing on their lenders’ standard variable rate.

If by chance this happens then you may be paying more than you need to on your mortgage payments each month.  

Why Should I Shop Around for a Remortgage?

If you stick to relying on your current Lender offering you a new deal then you could potentially be missing out on lower rates somewhere else. By not shopping around, you make it easier for your lender as they are benefiting by receiving the additional payments that could be going into your savings.

If you choose to switch online and not speak to anyone, you’ll be carrying out an execution-only mortgage. That will lead to you not benefiting from the consumer protection in which you would have had by taking remortgage advice in Middlesbrough.

Again, this benefits the lender. After all, if perhaps you have taken out the wrong product, then you’ll not be able to complain because you had chosen this yourself.

If you find that you’re still on a low rate tracker deal, it is still worth having a look to see what is out there, especially if it looks like there’s a chance interest rates might go up. If this is something you feel might happen in the foreseeable future, you can always take out a fixed rate remortgage.

Remortgage for Home Improvements

If your home would benefit from upgrading then it may be good time for you to remortgage so that you are able to carry out Home Improvements and can often pay off in the long term e.g. selling your house, as some improvements can put value into your home.

If the amount that you are asking to borrow is significant then lenders reserve the right to ask for estimates around the works that you intend to carry out. This doesn’t mean you’ll need the contractor who provided the estimate to carry out the actual works.

Additionally, home improvements don’t have to carried out just for adding value to your home, it can just be for your own pleasure.

Capital Raising Remortgage

You are able to borrow extra funds for most legal purposes, an example being, raising capital when you remortgage for almost any legal reason. But it is important to remember that you will be paying interest off on a remortgage for numerous years on average so it’s really important that you only borrow for the right reasons.

Debt Consolidation Remortgage

By adding unsecured debt to a mortgage, you may end up paying back more interest overall. This is because a mortgage term tends to be much longer when compared to a personal loan.

The other thing that may be important is that you are taking unsecured debt and securing it onto your home and could mean that you’re under the risk of repossession of your home if you cannot afford the mortgage in the future.

You will need to take note of the interest rates that apply to the debts that you are considering rolling into your mortgage. If you have 0% credit cards, then adding these to your mortgage will start attracting interest.

It is advisable to consider all options before deciding to consolidate debts, such as seeking help from family members for assistance if it’s available ad reduce outgoings as much as possible.

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

 

What is an Offset Mortgage in Middlesbrough?

When you take on any mortgage type, you will be paying capital (the balance) and the interest (at a percentage of the remaining balance) at the same time. If you want to reduce the amount of interest you pay per month, it may be beneficial to take out an offset mortgage in Middlesbrough.

How does an offset mortgage in Middlesbrough work?

When applicants like first time buyers in Middlesbrough look to get an offset mortgage in Middlesbrough, their mortgage lender will open them up a savings account, to run alongside their mortgage term length. You will not be paying back the capital balance of your mortgage from this savings account; instead, you will lower your interest.

To use an example of this, you had a £100,000 mortgage to pay off and you chose to put £20,000 into your savings account, there will still be a £100,000 mortgage for you to pay per month. However, you would only be paying interest on £80,000, with the remaining amount free from interest.

The amount of interest you usually pay is calculated as a percentage of your mortgage balance, which increases the total amount you pay. With this in mind, the more interest you offset into your savings account, the less you’ll have to pay overall, which can save you money.

How does the savings account from an offset mortgage in Middlesbrough work? 

As we said, the money you will put into your savings account must be offset by your interest, which will reduce your overall mortgage payments. Unlike for a standard savings account, you do not pay tax on it. This is certainly more beneficial for taxpayers with higher rates.

One possible drawback of this type of mortgage is that your savings will not grow like a standard savings account. No interest will be earned on an offset mortgage savings account.

Even with this, a potential mortgage applicant may still not be deterred, especially since you could save so much by offsetting interest. Another good side is that the account has a lot of flexibility.

Looking back at the previous example of a £100,000 mortgage and savings of £20,000, if you then needed to use some of your savings, in perhaps an emergency situation, you can do this. It’s important to remember though, you would once again be paying interest on a higher amount.

So whilst perhaps you are only paying interest on £80,000 at that time, if you were to draw out £10,000, you would then be paying interest on £90,000 again until you had enough funds to deposit back into your offset mortgage savings account. 

What happens to my monthly mortgage repayments in Middlesbrough? 

You will always be responsible for your monthly mortgage payments, but you will pay much less on your interest overall.

If you ever got to a point where you could offset the entire balance closer to the end of your term, perhaps through some handy work bonuses or inheritance, you would still be responsible for your capital repayments, you would just have much less interest.

This means that while offsetting your entire mortgage balance would effectively reduce your interest rate to nothing, the capital will still be there (your mortgage will consist of capital and interest) and must be repaid.

Do I have the option to overpay my offset mortgage in Middlesbrough? 

Depending on who your mortgage lender is, you can make overpayments of your mortgage by a certain additional amount per year. Typically, it is up to 10% per year, although it is always worth asking your mortgage lender first.

Overpaying by too much per year can lead to you potentially owing an early repayment charge.

While you may have restrictions on how much you can overpay your mortgage balance, you have the freedom to put as much as you want into your savings whenever you want to.

Is an offset mortgage in Middlesbrough right for me?

There are many factors to think about when taking out an offset mortgage in Middlesbrough, as to whether it is the most suitable option for you. This might be a difficult choice to make, especially to first time buyer in Middlesbrough and those who are looking for expert remortgage advice in Middlesbrough.

It is all about the advantages and disadvantages. As we said, higher-rate taxpayers will benefit from it because their savings are tax-free. You can also use the flexibility to withdraw and deposit funds as you wish.

Another positive, especially if you apply for a first time buyer mortgage in Middlesbrough, is that someone else may have the option to offset against your mortgage, meaning a family member or friend could help bring your payments down, though this depends on the mortgage lender.

At the end of the day, you at least need to be making significantly large payments into this savings account to see the benefits and to outweigh the costs that are involved with offset mortgages. 

To speak to a mortgage advisor in Middlesbrough, book a free mortgage appointment today and we’ll look to see if an offset mortgage, or discuss the many different types of mortgages in Middlesbrough, to find you something more suitable. 

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