Purchasing a New House? Four Key Questions to Ask Your Essex Mortgage Advisor

Are you looking to purchase a new house? If you plan on borrowing either some or most of the house’s purchase price, you must get prepped for the entire mortgage process. We have outlined four key questions that you must ask your Essex mortgage professional to begin working on your home loan.

What’s The Best Mortgage Option For Me?

It is common knowledge that there are an array of mortgage loan options and programs available today. You may be eligible for several mortgage loans as well as a few government programs or speciality mortgages. For each kind of mortgage loan, your mortgage advisor can assist you in discussing the pros and cons to help you opt for the right option.

What Interest Rate Fits My Budget?

The next step involves determining the loan term and interest rate combination that result in an affordable monthly payment for you. For instance, in a few cases, a lower interest rate may be preferred over a more extended period such as 15 or 20 years, which essentially decreases your monthly payments. Alternatively, you may wish to pay back the loan faster and opt for a shorter term with a slightly higher interest rate.

What Fees And Completion Cost Will I Incur?

When borrowing a mortgage to purchase a house, a few additional costs and fees will be incurred. A few of them are associated with the home itself, including the home inspection or valuation fees. The rest of the fees are associated with the mortgage. They are related to loan origination fees or discount points that you decide to purchase to lower your interest rate. Consult your mortgage advisor to learn more regarding the fees you must pay and those you can avoid.

What Documents And Paperwork Do I Need To Prepare?

Lastly, you will need to supply documents and paperwork. Such as income and credit history and those meant for risk assessment purposes, including past income tax forms, bank statements, or other materials in case you’re self-employed.

When you meet your mortgage advisor, these are a few points you must cover.

To learn more about the mortgage process and how you can get things started, get in touch with us today. Our mortgage partners will be more than happy to answer any queries you might have, call on 01277 564022.

How Delayed Payments Can Impact Your Essex Mortgage

If you have a tough time remembering to pay your bills, take comfort knowing that you are not alone. Many people across the world tend to submit late monthly payments, which significantly impacts their credit. Let us understand the adverse effects of paying your mortgage or other monthly payments later.

Your Credit Score Is At Risk

Practically all banks, credit cards, mortgage companies, and other lenders depend on your credit score to evaluate the risk of lending you money. Suppose you pay any of these late, including your mobile phone bill or a department store credit card. In that case, the result could be negative remarks that land on your credit score. If you are late several times or do not repay the late payment, it will cause your score to drop.

Refinancing Can Be Affected

If you have a mortgage already, a lower credit score could be an issue when you attempt to refinance. Refinancing typically involves taking out a new mortgage. Your lender will reassess your risk with your credit score acting as one of the indicators. In case you have been making late payments, you may be left with the option of settling for a higher interest rate, or a new mortgage may be declined for you.  

Making A Late Payment? Contact Your Lender

If you are left with no choice but to make a late payment, always call your lender immediately. There may be a grace period where you can avoid penalties. In case that short period is enough for you to make the payment, you will be fine. Otherwise, you can inform them regarding your circumstances and understand the various alternatives that you have.

 It is crucial for you to pay your monthly payments on time, although you may make minor sacrifices in other areas. That is because a better credit score will provide you with more opportunities to make positive financial moves in the future.

You can learn more regarding monthly Essex mortgage payments by contacting us today

Buying a New Essex House? Enhance  Your Credit Rating

Are you looking for a new Essex home today? If you want to get one immediately, it is crucial to ensure that your finances are all in order. This article will explore a few tips that can assist you in enhancing your credit score.

Grab A Fresh Copy

Firstly, seek a fresh copy of your credit report from any of the major agencies. Do remember that it is not a good idea to use a search engine to search for “free credit report” or other such terms. That is because several impostor websites hope to obtain your personal financial information. The likes of Clearscore and Experian are reliable and market leaders.

Clean Up Anything Outstanding

With your copy of the credit report, you must go through each line and identify the various current and outstanding accounts in the report. If any balances are owed, they must be in order and demonstrate how much you owe. Moreover, always flag mistakes or older debts that have been paid in full. If your credit report has something that shouldn’t be on it, get in touch with the reporting agency and inform them. When required, they will help you challenge the issue.

Pay Down Those High-Interest Debts

Lastly, prioritise your outstanding debts, which will assist you in paying them off quickly. The essential debt payments include your mandatory minimums, which must be paid if you want to avoid being sent to a collection agency. Try paying off your debts in order of the highest interest rates first. If you pay them off quicker, your interest payments will be lesser over time. Furthermore, you can make use of that extra cash for paying your debts down further.

These are just some of the steps that can be undertaken to start improving your credit score.

Once you are ready to begin discussing a mortgage for your new home, get in touch with us. We will be glad to assist you with a mortgage offer that best aligns with your needs, budget, and credit.

You Ask, We Answer: Essex Remortgage – How Do I Know When It’s a Good Idea?

Do you want to pay less each month on your mortgage? Or maybe you wish to pay off your mortgage as soon as possible. If you are a homeowner with a mortgage, one good alternative is to go for a remortgage. This article will look at the concept of remortgaging and how it can be known whether it is a good idea.

How Does a remortgage Work?

Essentially, a remortgage involves a process wherein you pay off your current mortgage and borrow a new mortgage under a new set of terms. Typically, homeowners will use the funds from the new mortgage to pay off the old one. Based on your new mortgage’s terms, there may or may not be some cash you are left with, which can be used to invest, pay down debts, renovate or for other purposes. 

Refinancing To A Lower Interest Rate

Mortgage interest rates usually fluctuate over time. Thus, it is quite common for people to refinance a mortgage at a lower rate. Suppose you initially borrowed your mortgage with interest rates of 3%. In that case, it may be possible to lock in a new mortgage at a lower rate. Remember that it can be difficult to “time” the mortgage market, and thus, it is best to get in touch with your mortgage professional and learn if the time is right.

Remortgage For Lower Monthly Payments

One more significant use of refinancing involves reducing the monthly payment that is needed on the mortgage. If you have ten more years left on a 20-year mortgage, refinancing for the extension of the payments to 15 years decreases the monthly payment.

Refinancing To Eliminate Other Debts

Lastly, several homeowners choose to refinance their mortgage to use some of the home’s equity to pay off other debts. For instance, a family may have £25,000 in debts with an interest rate higher than their mortgage. If they have developed adequate equity, they can refinance and draw £25,000 from the home’s value. This alters the debt from the higher interest areas into the mortgage, which can be paid off over time. 

There are a host of reasons to refinance your mortgage. If you want to learn more regarding the remortgage process or discuss your alternatives, get in touch with us today, 01277 564022

3 False Myths About Equity Release 

Suppose you are a senior or retired individual aged over 55 and are keen on supplementing your retirement income. In that case, you may find the concept of equity release exciting.

To steer you in the right direction, this blog post aims to expose three common misconceptions regarding equity release as well as the reason why the bubble has to be burst.

Myth #1: Equity Release is Pricey

Firstly, the most common misconception is that equity release is costly and includes excessive fees. This is entirely untrue. Do note that there are transactions costs associated with equity release, similar to a conventional mortgage.

Prices will vary depending on a wide range of factors, including the equity release terms, your specific financial history, where you live, the size of your house, assessed value, and so much more.

The term equity release can be confusing. In the USA, they are called reverse mortgages. In essence, you can borrow money against the equity in your home. If you are interested in an equity release, do not step away from it due to the potential fees or transaction costs. The products have improved dramatically over the last few years.

Myth #2: Kids Inherit The Reverse Mortgage Payments

People are often under the false impression that their children will have to bear the burden of the equity release after their passing. But the fact is that your executor has the option of selling your house and making use of the money to pay off your equity release balance. They could also use the funds to pay off the balance and continue keeping the home.

The point is that a monthly repayment is not something your children will have to deal with.

However, remember that it is crucial to plan for your estate with a proper will, regardless of whether you have equity release. Ensure that the solicitor you get in touch with has adequate skills in estate law.

Myth #3: The Bank Will Take Over Your House

Lastly, people also believe that taking equity release comes with the risk of the bank owning their house, which is again untrue. When you opt for equity release, you essentially borrow money against the equity or value that has been built up in your home. The house will continue to be yours.

However, a lender will place a charge against it for securing the mortgage loan.

These are the most common myths associated with equity release.

If this topic interests you and you wish to learn more about it, get in touch with us at [email protected] or 01277 564022 , and we will be more than happy to assist you with your queries.

How to Run a Quick Financial Health Check Before You Apply for a Mortgage

If you want to use a mortgage for covering the cost of a new home? In such a case, it is important to prepare your finances and understand how to manage your monthly expenses. Let’s look at how you can run a quick financial health check to ensure that you are ready to apply for a mortgage.

Update (Or Start) Your Monthly Budget

To begin with, it is crucial to be ready with the fundamentals. Create a monthly budget to track your income and expenses. After you have a mortgage, you must prioritize your monthly payments to make sure that you don’t end up falling behind.

It is straightforward to start a budget using mobile apps, software, a spreadsheet or basic stationery. Note down various sources of income to ensure that you know the amount of money you are working with. Then, note down each one of your expenses, even though the process can be quite challenging. However, this can be simplified using debit and credit card statements as a reminder from the last several months.

Get A Copy Of Your Credit Report

Next, obtain a copy of your credit report to understand what potential mortgage lenders will look at when evaluating your financial history. This is a free service. Remember that you must use government-approved websites to request your credit report. Be wary of scams.

Do You Have A Deposit?

For each home purchase, you need to place a deposit, so the lender has reduced risk. The bigger the deposit, the better interest and product you will get. Your home’s cost will determine the amount that you must have saved up. Try to save an amount that is about twenty percent of the home’s purchase price.

Ready? Chat With A Professional

As you now understand how to run a quick financial health check, you can meet with a mortgage professional to understand your alternatives.

Get in touch with us today for booking an appointment with our friendly partner experts. We will help you out with financing so you can buy your perfect dream home.