Remortgage in Prestwich, Manchester

Manchester Mortgages contacted one of our existing clients in Prestwich to review their current arrangements as their fixed rate was due to expire. What were their options? Could they remortgage?

CLIENTS SITUATION

Since the last mortgage review our clients had welcomed twin Girls to their family. Their existing mortgage with NatWest was due to end and Mortgage payments were due to increase.

They already had two children and their current house was not big enough so they were faced with either moving home or extending their exiting property.

remortgage prestwich Manchester Mortgages

THE PROBLEM

The area that our clients currently lived in and where they wished to remain, moving home was not possible due to the price of the houses they would need for their family home.

As the twins were just 4 months old one of our clients was on maternity leave and only in receipt of Statutory Maternity Pay so income was reduced.

THE SOLUTION

It was decided that they would add a two story extension to the property to provide two further bedrooms and more living space at a reduced cost than if they were to move Home. As one of our clients was on maternity leave the new lender would take her back to work income as a doctor in the NHS into account along with her partners income who also worked in the NHS as a Doctor.

All the paperwork was taken care of by Manchester Mortgages on behalf of our clients and a new five year fixed rate with the Halifax was arranged. As the new borrowing was substantially more our clients were able to extend their mortgage term so that it met their affordability now whilst the children were still young and our clients had child care costs.

CONCLUSION

Our clients now have a much bigger family home which they will continue to live in for the foreseeable future. They have the certainty for the next five years what their mortgage payments will be for budgeting purposes whilst they are at their most financially exposed.

As they has two new additions to the family Manchester Mortgages were able to provide additional life assurance to protect the new mortgage balance and provide protection for the family.

Manchester Mortgages ensured that the lender recommended would be able to offer additional funds in the future (if required).

Contact Manchester Mortgages on 0161 706 0242 or email info@manchestermortgages.co.uk to discuss your remortgage / mortgage requirements to see if we can help You.

Glimmer of Hope for First Time Buyers

First Time Buyers were given an indication this week that there may be more options available to them in the housing Market, see this article from The Guardian newspaper: https://www.theguardian.com/money/2020/dec/03/lloyds-reintroduces-10-deposit-mortgages-for-first-time-buyers

Where the focus has been on clients who have a 15% plus deposit available more recognisable names such as Halifax, Nationwide Building Society, Virgin Money, Platform Home Loans (Part of The Co-Operative Bank and Accord Mortgages (Part of the Yorkshire Building Society) have now entered the Market and are offering mortgages to First Time Buyer and Homemovers with a 10% deposit.

The Lenders offering 90% mortgages will look at cases with more scrutiny so seeking the advice of a Mortgage Broker has become more important than before.

Manchester Mortgages has been helping first time buyers for in excess of 20 years so understands the importance of getting the correct advice at the beginning of the house buying process.

We will fully assess your situation and advise what lender is able to offer you the best options for your circumstances.

As the market opens up to more first time buyers estate agents and builders will need to see you are in a position to proceed if you are successful having a offer on a property accepted.

Contact us on 0161 706 0242 and speak with one of our industry experienced advisers who can help you find the right mortgage.

PS We are also able to put you in touch with a solicitor to help you with the legal work involved.

Off the top of your head…

If we asked you the following mortgages related questions would you know the answers?

MORTGAGE –

  • Who is your mortgage with
  • What interest rate you are paying
  • What is the current mortgage amount outstanding
  • How much per month are your mortgage payments
  • Are you in a fixed rate – if so when does it end
  • What rate will your mortgage revert to after any current deals ends
  • What will your new mortgage payments be per month
  • Are you paying your lender’s standard variable rate
  • The current value of your house

Once your current rate ends unless you review your mortgage you will revert to your lender’s Standard Variable Rate ( SVR ) – dependent on lender this could mean a rate of anywhere between 3% and 6% .

If looking to change lender ( re-mortgage ) you need to be reviewing your mortgage 3 months before your current deal ends as with re-mortgage solicitors have to be involved in the process which sometimes can delay matters.

PROTECTING YOUR INCOME –

If employed how much & for how long will your employer pay you if off work

If self employed – do you have any cover in place to protect your income if off work

If your income stopped due to accident or illness how would you be able to pay your monthly mortgage and bills and maintain your ( and if applicable your family ) lifestyle.

LIFE COVER / CRITICAL ILLNESS

If you died how much life cover do you have – would it repay your mortgage

If you had a critical illness such as a Heart Attack or suffered a Cancer have you cover which would pay out for a second opinion and access to treatment by the best doctors in the world.

Do you have any policies which offer cover / treatment for your children in the event of them suffering a critical illness.

Time flies by and peoples circumstances change – it maybe that when you last took out your existing cover you were young, free & single – but now you are married / living with your partner and have children and a bigger mortgage !

Life companies now offer much more by way of benefits and flexibility in their policies – Manchester Mortgages can review your existing policies and advise on the best way to provide the cover you need to suit your present circumstances.

CONCLUSION

If you’re being honest you most probably knew a few of answers straight away such as your mortgage lender and how much your mortgage payments currently are – the rest maybe not.

Who knows best when selling a house?

My wife & I have lived in our bungalow in Manchester for the last 10 years and as our years progress we decided on one last move – more over my wife decided on one last move !

When we bought our bungalow back in 2010 for £132,000 it was in a sorry state as the previous owners had decided that the sunny shores of Crete were much appealing than rainy Manchester and had done a flit leaving the property which eventually was repossessed some 9 months or so later meaning the property had been empty and uncared for during this time.

We were in the lucky position of being able to buy the property without having to sell our existing home

and this meant we could lavish lots of love and attention on it without having to live there and also live through the day to day mess caused by the team of builders who basically ripped it apart and started again.

The end result was a modern two bedroomed detached bungalow with the advantage a large 30 feet by 10 feet kitchen diner with patio doors thanks to the refurbishment of the existing space provided by what was the old garage.

All the above did not come cheap – fifty thousand pounds plus to be precise.

Once all of the above improvements had been completed we moved in.

In 2018 we had a revamp of the property replacing the roof, turning some additional space at the rear of the kitchen into a utility room, sorted out a damp wall problem in the main bedroom, redecorated throughout and changed all the internal doors to nice oak ones, new carpets and extended the front porch slightly which tied in nicely with the new roof and another twenty thousand had been spent.

In 2019 my wife had seen a bungalow come up for sale which was off one of her all time favourite roads in Heald Green and we ended up going to view it – it was very run down but it also had a large rear garden which my wife was looking for as she is a keen gardener and wanted a new challenge for her green fingers !

It took until June 2020 before we eventually got the keys mainly because the owner was elderly and it took him a long time to agree a price, find a property and of course COVID-19 came along and house moves were not allowed for a period of a few months.

Again we were in the fortunate position of not having to sell our existing property before buying this one.

So we now are in the position to sell our existing our existing property and I contacted a few local Estate,

Agents to come and value the bungalow – the prices were all around the same mark of £265,000 which we considered low so we discussed the figures more with the Agent we had decided to use and they said try £275,000.

Even at £275,000 we thought this was still low and left things a couple of weeks until the new property purchase had completed.

When we were ready we advised the Estate Agent we were ready to put the property on the market and wanted to put in on at £295,000 which they did on the basis we could always accept a reduced offer or reduce the purchase price in the future.

Our existing bungalow went on the market on a Tuesday and we got three separate couples viewing – one on the Thursday followed by another viewing on the Friday and the third on the Saturday.

All the people who viewed offered – two at £290,000 and one at £295,000.

We accepted the offer at £295,000 as these people had sold their property and were in the best position to proceed.

So much for the Estate Agents who valued the property at £265.000 to £275,000 – we ended up obtaining the asking price and receiving £30,000 more than the lowest valuation.

The moral of the story – go with your instinct !

RE-MORTGAGE SAVES EXISTING MANCHESTER MORTGAGES CLIENTS £516 PER MONTH

CLIENTS SITUATION

Manchester Mortgages contacted one of their existing mortgage clients to review their mortgage and existing credit commitments.

The clients were both in their late 20’s, married with no children, employed as Teachers with a joint income of £65,000 per year.

Their property was in Didsbury and was worth £205,000 with an existing repayment mortgage with Virgin Money which had £165,000 outstanding with 33 years remaining – their existing fixed rate of 3.94% which Manchester Mortgages had originally arranged was due to expire in a couple of months and they were paying mortgage payments of £710 per month.

They had purchased their property two years ago and had utilised their credit cards to pay for home improvements including a new kitchen & bathroom, up graded the electrics and decoration – their credit card balances now stood at £18,000 which were costing £500 per month in payments.

Including the mortgage the cost for all of the above was £1,210 per month and in total they owed £183,000.

Clients were looking to reduce their outgoings to around £700 per month.

All payments were up to date with no payments missed.

The credit card balances were not reducing as the payments mainly covered interest with very little capital repayment.

THE PROBLEM

Clients were left in a position every month of seeing their monthly salary credited to their bank account only to see it go out as the above payments went out along with daily living expenses.

The credit card balances left the client feeling that they were working just to pay the credit card bills and meant that they could not afford to finish the jobs they wanted to on the house.

A new unsecured personal loan would only be repayable over a maximum 7 year period which meant that any new loan payments was outside clients budget.

Clients wanted to repay all the above debt and consolidate it to one payment so they could then see what was left in their bank account each month and budget accordingly.

Clients wished to keep their mortgage over the remaining term of 33 years.

THE SOLUTION

As Manchester Mortgages are a whole of market / independent broker we were able to research the mortgage market and recommended that clients re-mortgaged to a new lender and increase their mortgage to £183,000 which included repaying existing mortgage and all their existing credit card balances.

After fully discussing clients requirements Manchester Mortgages recommended a 2 year fixed rate at 2.66% with Accord Mortgages over 33 years which reduced the mortgage payments to £694 per month – a whooping reduction of outgoings of £516 per month.

The lender offered a free standard valuation and free legal fees via their nominated solicitor along with no arrangement fees.

Therefore clients now have only one payment per month and do not have to worry about credit card payments and know exactly where they are up to with their finances – Manchester Mortgages also reviewed their clients mortgage protection and income protection and clients took our advice and upgraded their cover which was easily afforded due to the above monthly savings.

THE DISCLAIMER

Clients were made fully aware of the implications of transferring short term loans to long term commitments and although they were reducing their immediate outgoings over the existing mortgage term, in the longer term the total charge for credit was likely to be higher.

In addition by transferring unsecured borrowing ( credit cards ) on to a secured basis they were potentially placing their home at a greater risk in the event of mortgage payments not being maintained for the term of the mortgage.

CONCLUSION

With their mortgage payments reduced clients are seeing the benefit of their £516 per month savings and are now enjoying completing their final odd jobs around the house.

If you have an existing mortgage and outstanding loans or credit card balances or wish to improve your property give MANCHESTER MORTGAGES a call on 0161 706 0242 to see if we can make a difference to your mortgage payments.

Not Every Lender is the Same !

Arranging a Mortgage can be a stressful and time consuming process and in this article I look at the benefits of using an independent mortgage brokering service.

Lenders like Halifax, NatWest, Santander, Nationwide Building Society and Virgin Money although the interest rates may be very similar the way that they assess each application can be very different. However, these companies are not independent mortgage brokers !!

EXAMPLE. Two of the lenders will take 100% of overtime payments into account where the others may only take 50 or 60%.

Two of the lenders will take any pension contributions you may make as a credit commitment therefore reducing the amount they may lend where the three others will not.

One of the lenders will not take into consideration loan payments that have 6 months or less to run where the others will.

Three of the lender will lend even if you have been in a job one day where the others need you to be continually employed for six months.

As somebody trying to arrange a mortgage how are you expected to know this ?

Then it may be that you haven’t got a perfect credit record !

Perhaps had a County Court Judgement, Default on a loan or missed / late payments. Would any of the above lend money ?

One may the others wont.

What if you were self employed with one year accounts ? How would the lenders treat you then ?

So as you can see there are lots of different factors to take into consideration when applying for a mortgage and not all lenders are the same.

One way of finding the right mortgage is to speak with an Independent Mortgage Broker. They will be able to look at your situation and make an assessment of your circumstances and find the lender who will meet your current situation.

Manchester Mortgages has been arranging mortgages throughout Greater Manchester for over 20 years. They are an independent mortgage broker.

So whether you are a First Time Buyer, considering moving home, Remortgaging your property for a better rate or wishing to consolidate existing credit commitments to reduce your monthly outgoings our industry experienced advisers can help.

All it takes is a simple phone call to 0161 706 0242 where one of our friendly advisers can have an informal chat with you to discuss your requirements and the way forward. Manchester Mortgages are independent mortgage brokers and deal with all the lenders on the high street and specialist lenders. We work on your behalf not the lenders.

What mortgage options exist for first time buyers?

With house prices continuing to rise it is becoming more and more difficult for First Time Buyers to get on the property ladder.

A lot of first time buyers are now turning to the Bank of MUM & DAD for help or Grand Parents.

They are normally in a position to provide their Children / Grand Children with a deposit but are asked to confirm that they will not have a financial interest in the property.

first time buyers signSo that money has to be a non repayable gift.

Below is an option potentially available

Example:

The Property is Valued at £150,000. First Time buyers borrow 100% of the purchase price (£150,000)

The Lender applies an interest rate fixed for 3 Years over the mortgage term 25 years (maximum).

The Parents / Grand Parents or other Helper place 10% of the purchase price (£15,000) into a Bank Account for the first three years of the mortgage. This account is an interesting bearing account.

At the end of the three years the money is returned to the Parent(s) / Grand Parent (s) or other Helper(s) with interest as long the mortgage payments have been made on time and in full.

The Mortgage then reverts to a Tracker rate with no penalties meaning that you are free to look at what other options are available to you (This would be dependent upon the Value of the property at that time and your financial circumstances).

The Benefit to the person placing the deposit into the account is that they are not considered to be guarantors and the buyers have full ownership of the property at all times.

This is a alternative option available and but as is the case with all mortgages you will meet the full application criteria which will include details of income, details of any outstanding credit commitments and you have to have a clear credit profile.

So what will the mortgage payments be ?

So based on a Purchase Price of £150,000 and a mortgage loan of £150,000 over 25 years and a current fixed rate of 2.95%

The Monthly Mortgage payment would be £707.42.

At the time of writing this article the Lender will provide you with a FREE mortgage valuation of the property along with no lenders arrangement /booking fee.

It is advisable that all parties take independent legal advice.

Manchester Mortgages have been providing mortgage advice to clients for 18 years and are now arranging mortgages for our original clients children and we are able to provide solutions to most situations.

Sound advice worth heeding

I bought my first house in 1991. It cost me £34,500 and it was located in Winton, Manchester. I remember I always told people that I lived in Monton rather than Winton, as Monton was far more upmarket.

A typical house in Winton.

A little over 10 years later I took at loss of £10,000 on the house and sold it to a developer – no one else would buy it – for £23,500. It was the best £10,000 I ever lost.

Why ? It got me out of the area which was going nowhere. A friend of mine once told me that it’s far better to have a bad house in a decent area than a decent house in a bad area and she’s absolutely right. My advice is, if you can afford it, always go for the better area. You can improve a house all by yourself. It’s far more difficult to change a bad area as it will rely heavily on other people.

I managed to escape to a nice area with the help of a decent mortgage broker. The high street lenders offered me nothing, I found an independent broker who changed my future. You can’t put a price on this.

Stalybridge Mortgage Advice

Stalybridge photoI’ve recently provided some mortgage advice for a couple looking for buy their first house in Stalybridge.

Stalybridge is a town in Tameside, Greater Manchester. One of it’s closest well known landmarks is the Ethihad Stadium, home to Manchester City football club.

I looked at https://www.rightmove.co.uk/property-for-sale/Tameside.html for houses for sale in Tameside and then looked for a mortgage broker. Finding a mortgage broker in Manchester was tricky as I was looking not only for a first time buyer mortgage but I needed advice about remortgaging my existing house too.

Next to Stalybridge in Ashton which also has a masonic hall. Remortgaging the house in Ashton to buy a house in Stalybridge was the only option available. The current mortgage rate is between 1.99% – 2.39% on mortgage amounts over £100,000, below that  the rate will be higher.

Always look at your mortgage offer and consult a mortgage specialist to make sure you get the best prices available.

 

Didsbury, Withington, Wythenshawe Mortgage Broker

Manchester Mortgages, the popular Manchester based mortgage brokering service is about to open new locations in Prestwich, Wythenshawe, Withington, Didsbury and Bury.

Those people wanting a mortgage service in south Manchester will be be pleased to find Manchester Mortgages will now be providing them an excellent advisory service for people wanting new mortgages, remortgages or just any form of adjustment to their mortgages in general.

wythenshawemortgagebrokerSouth Manchester is currently experiencing a mortgage boom with many new mortgage deals being completed every week. According to Alan Dee, one of the partners at Manchester Mortgages, the number of applicants for mortgages in the areas of Disdbury and Withington is growing all the time, and has doubled over the last 5 years. These impressive figures are however dwarfed by mortgage brokering applications in Wythenshawe, which due to the Manchester Airport development over the next 5 years, has become a boom area.

Prestwich and Bury lie on the other side of Manchester and are also very desirable areas to live, boasting good motorway access and high areas of green belt land that is attractive to home buyers.

Link: Get a downloadable map of South Manchester here – ideal for know the areas covered by Manchester Mortgages.