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.

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.

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.

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.

 

Homes in Manchester City Centre

There’s a lot of new building and housing developments underway in Manchester City Centre as anyone who has driven through it or works there will tell you. This is not surprising with house prices in London being ridiculously expensive that most people can no longer afford to live there.

So Manchester therefore looks very attractive, and you only have to go along to Piccadilly Station in the morning to see all the commuters who each day travel to and from London for work. Some would say this is quite a good idea really as you can get a lot of work done in the train.

Manchester city centre mortgage broker

As so many people are wanting to live in Manchester there is a lot on new build housing being built (see http://www.rightmove.co.uk/new-homes-for-sale/Manchester-City-Centre.html). Mortgage brokers in Manchester have been very impressed with the new housing developments around the Manchester City football ground (see my earlier post here).

Prices in the centre of Manchester are more expensive than areas outside, but this is to me expected, getting yourself a decent mortgage advisor is then next crucial step – as I repeatedly say, DON’T use a high street broker – their deals are rubbish, use and independent mortgage advisor and you WILL save yourself thousands of pounds throughout the duration of your mortgage.

Buying a house close to the Etihad Stadium

Manchester City’s ground is located in what is known as the Etihad Campus which contains the stadium, various training facilities and other related amenities. The owners of Manchester City have put a lot of money into both the club and the city in general. The surrounding areas of Miles Platting , Clayton, New Islington and Bradford / Beswick had all benefit from substantial regeneration and many old and run down buildings have been pulled down and new houses built on the land. Buying a house close the Man City ground is a dream for many die hard City fans and there are plenty available.

Manchester City groundA number of new build flats are for sale in the M11 area of Manchester close to the Manchester City ground (see this link) and at reasonable prices too. Homes buyers can also benefit by getting themselves a great mortgage through companies like Manchester Mortgages, whose main broker for the area, Andrew Butterworth is a life long City fan and season ticket holder.

According to Andy, if you’re looking to buy a house close to the ground, or in the areas of Clayton, Miles Platting and Beswick, good advice is to stay away from the high street mortgage lenders. The reason is that they’ll only tell you about the mortgages available from them. Manchester Mortgages will tell you about the different mortgages available from every lender. Over the duration of a mortgage, their advice will often save clients over £10,000.

There are a number of different properties available close to the Etihad, and the area is ideal for first time buyers, remortgages, home movers, or buy to let agents.

Manchester City fans should contact Andrew at Manchester Mortgages on 0161 706 0242.

New build houses in Wythenshawe

The area of Greater Manchester known as Wythenshawe is booming. Affordable housing, with great access to the motorway network and the creation of many new jobs from the likes of Amazon and Manchester airport, mean that Wythenshawe is having a property boom.

Wythenshawe, Greater ManchesterAs an area, Wythenshawe has come a long way. 20 years ago parts of it were “no go areas”, it was run down, dilapidated and crime friendly. Now, many of the old decrepit estates of the 1950’s and 60’s have been pulled down and the whole area regenerated by building smart new houses and developments that will attract inward investment and families. One such development is this one in Newall Green, Wythenshawe.

As every house buyer is aware, the cost of housing is not cheap, and new build housing is no exception. As an added incentive (especially for families and first time buyers) to move to Wythenshawe, specialist mortgages can be arranged that offer a significantly better deal to homeowners than what is offered by the usual mortgage.

Better interest rates on mortgage repayments and fixed interest deals are two ways that people buying in Wythenshawe can take advantage of when buying a house. Interest rates are currently low, but they can’t really go any lower, so the only way is for them to rise. By fixing the interest rate of a mortgage for say 5 years, you are guaranteed to be repaying money at this low rate even when interest rates go up.

It pays to be smart with mortgages and getting the right mortgage will save you thousands of pounds over its course.

Mortgages in Irlam

With the housing market reported as sluggish (http://www.telegraph.co.uk/personal-banking/mortgages/sluggish-housing-market-keeps-mortgage-rates-rock-bottom-even/), now is a great time to get a mortgage and get on the Manchester housing ladder. One of the key areas is Irlam, in south west Manchester.

Near to the Trafford Centre just off the M60 motorway is the town of Irlam. As part of Greater Manchester and close to the ring road and several motorways, Irlam is a place that many homeowners are moving to. With house prices starting at around £150k (see here), many people, including younger first time buyers and those with families are seeking mortgages in Irlam.

irlam and cadishead schoolSo what’s Irlam got that makes it a nice place to live?
Well it’s close to Manchester city centre, even closer to the Trafford Centre, and links to Liverpool, Leeds and Bolton are all within easy reach of an accessible motorway route. There’s also the huge swing bridge which connects Urmston and Stretford with Irlam (see http://www.manchestereveningnews.co.uk/news/greater-manchester-news/could-motorists-pay-drive-over-13845889).

It’s also near some of the more upmarket areas as one heads out towards Cheshire, such as Cadishead, Carrington (where the Manchester football teams practice) and Dunham Massey.

Also, as the whole of Greater Manchester is rather a growth area at the moment there is a high demand for mortgages and property. Regular readers of this blog will note that we recommended several mortgage brokers in Manchester, so all you need to do is read our blog a bit more and choose one of the many mortgage advisors we recommend.