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.


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.


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.


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.


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.

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


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.

Mortgage Brokering in Bolton

Bolton is a city in Greater Manchester in the north west of England. For anyone who knows the area of Bolton, it has rich parts and poor parts. Similarly, houses and house prices vary considerably as do mortgages for various areas of Bolton.

For example, a mortgage broker who specialises in the richer parts of Bolton such as Egerton and Edgeworth is unlikely to be dealing into mortgages for properties in areas such as Breightmet and Failsworth.

map of Bolton

Similarly, depending on the value of the property a person wishes to buy, the interest rate on the money you want to borrow is dependent on the sum. For example, a loan arranged by a mortgage broker in Edgeworth or Egerton area of Bolton will have an interest rate of around 1.99% per annum. A loan for a mortgage for about £80,000 in Failsworth or Breightmet will probably be loaned on an interest rate of about 2.49%. This is a significant point that will make a considerable different to anybody using a mortgage broker to buy a house throughout Bolton.

With the Bank of England looking to raise the base rate shortly, now is a good time to get a mortgage for a property, before the interest rate rises take hold. Many mortgage brokers will be able to secure either a 2 or 5 year deal with a fixed interest rate. This information should be of interest to all mortgage holders who are looking to buy in Bolton.

Lending and zero hours contracts

In line with the office for country wide information, there are over 5.5 million employees either self-employed or on zero-hours contracts alone within the uk, demonstrating the ability length ultra-modern this marketplace.

Lending is through intermediaries and the financial institution has initially agreed an extraordinary distribution partnership with loan advice Bureau (MAB).

MAB individuals now have complete get entry to to comfortable consider financial institution’s specialist mortgage services and all agents will deal immediately with the bank’s crew cutting-edge underwriters.

it will roll out mortgages to other intermediaries after the preliminary release length.

relaxed agree with bank will offer loans cutting-edge up to £2 million according to family imparting two, three and 5-year fixed fee mortgages with a maximum LTV modern 80%.

Esther Morley, coping with director at cozy consider financial institution Mortgages, said: “There are tens of millions modern day human beings trying to get themselves at the property ladder, circulate home or discover a better deal with a new loan provider.

“Our supplying will serve customers who don’t healthy the criteria state-of-the-art conventional creditors. We absolutely recognize the finance troubles our customers face and could work in partnership with loan advice Bureau to make sure we are placing more complicated cases without difficulty.

“we are able to stick out from others within the market by way of offering an exemplary carrier with smart running structures so that it will be best-tuned to reply quicker and make everyone’s lifestyles plenty less complicated. The team will be committed to supplying bespoke services with a non-public contact, and this may circulate us one step contemporary turning into Britain’s first-class bank.”

Paul Lynam, organization chief executive at comfy consider bank, added: “As one of the most strongly capitalised banks in the united kingdom, secure consider financial institution could be very nicely positioned to progress our entry into the mortgages marketplace as cutting-edge our lengthy-term diversification strategy.

Brian Murphy, head brand new lending at loan advice Bureau, commented: “we’re delighted to be partnering with comfy consider financial institution at the outset of their release in the uk loan market.

“secure trust bank’s primary presenting can be targeted on the demographic different high street creditors would term as ‘niche’ and typically pick out to pull away from, but this is a extraordinarily treasured vicinity latest the marketplace which requires pragmatic answers.

“therefore, the access latest relaxed consider bank into this region, at the side of others, provides a lot needed competition and desire for purchasers, and we’re very a great deal searching forward to running with them.”

I Haven’t Got A Perfect Credit Record

Bad credit scoreUnfortunately people may have problems with the credit profile such as defaults on their credit payments, County Court Judgements, Bankruptcy, Individual Voluntary Arrangements or even repossession.

This can mean that it will be more difficult to get credit and in some cases not able to get credit at all.

When looking to obtain a mortgage this will be one of the main aspect of the application that a lender will look at.

It is important for the lender to be able to establish that you are able to demonstrate that you have been able to pay previous credit agreements and maintain your credit accounts satisfactorily.

However, this is not the case for a variety of circumstances, loss of job, ill health, divorce etc and it is at this point that people can fall into arrears with their credit commitments.

So what if I have had credit problems in the past ?

Dependent upon when you have had problems and what those problems were with your credit may determine how lenders will view your situation when applying for a mortgage.

If for example your problems were within the last 2 years the chance of getting credit for a mortgage are very slim. Most high street lender will not be able to offer a mortgage if this is the situation.

There are however lenders who specialise with mortgage products for people who are not able to match the strict criteria of mainstream lenders.

It is fair to say that the interest rates may not be as competitive as High Street lenders but they will generally be able to offer a mortgage dependent upon what your circumstances are and the severity of your past credit problems.

These types of lenders generally will want you to have a more substantial deposit if purchasing a property or if remortgaging a higher percentage of equity in the property.

These types of mortgage are generally not available from the high street and it is at this point you may need to seek the advice of a professional mortgage broker.

Mortgage brokers generally have access to these kind of mortgage products and by consulting with them and explaining your situation they will normally advise what mortgages would be available to you.

This can save you alot of time and effort trying to find the lender who may lend to you on your own.

There are some mortgage brokers who specialise in this area of mortgage advice and seeking their help would be extremely beneficial.

Consolidate Debt By Re-Mortgaging

houses sitting on moneyIf you already own a property with or without a mortgage and you need to raise funds to repay outstanding debts like credit cards, personal loans or second charges this is known as debt consolidation.

Debt consolidation as the name suggests literally puts all your debts under one roof – your house – and is usually a way of reducing your total monthly outgoings.

You must think carefully regarding securing your debts against your property as you are switching unsecured debts such as credit cards and personal loans to being secured debts on your property and also reducing the amount of equity in your property and by taking the debt over a longer period of time the total charge for credit is likely to be higher.

However, if you have credit card balances outstanding and you are only paying the minimum monthly amount the balance in reality is not reducing that much on a monthly basis as the majority is interest to the lender, ie you are not repaying much off the capital to reduce the balance – also the interest rate charged by credit card providers varies and can be expensive.


House Value £ 250,000

Existing mortgage £ 150,000 Payment £ 600 pm

Equity £ 100,000

Total Credit card balances £ 15,000 Minimum Monthly

Payment £ 450 pm

Total monthly outgoings £1,050 pm

Re-mortgage property with new £ 165,000 mortgage to repay existing £ 150,000 mortgage and £ 15,000 credit card balances

House Value £ 250,000

New mortgage £ 165,000 Payment £ 800 pm

Equity £ 85,000

Total Credit card balances £ 0 Minimum Monthly

Payment £ 0 pm

Total monthly outgoings £ 800 pm

In the above example you have reduced your outgoings by £250 per month.

There are other ways of consolidating debt such as FURTHER ADVANCES, SECOND CHARGE LOANS and PERSONAL LOANS – these will be covered at a later date.

Please remember your home may be repossessed if you do not keep up repayments on your mortgage or loan secured on it.