Critical illness cover is an insurance policy that supports you financially if you are diagnosed with a severe illness.
When taking out the policy, it’s important that you mention any underlying medical conditions you have. The conditions you have disclosed may not be covered by the policy. Furthermore, if you have failed to mention the underlying medical condition, this could potentially mean your policy would be voided in the event of a claim.
The financial support will be from a lump sum of money that is a one-off payment to help pay your mortgage, medical, or if needed, modifications to your home.
The insurance will cover you in the event that you are diagnosed with a particular medical condition or injury that is stated within the policy.
It’s important that you read the policy thoroughly to understand which specific conditions are covered. This is due to the fact that the policy will not cover all instances of a certain illness.
It’s common for customers to confuse critical illness cover with life insurance. They are two insurances that can be purchased together, however, what they cover is very different.
The following that might not be covered within the policy could include more severe forms of cancer and other conditions. Health problems you knew you had before you took out the insurance will probably not be covered. Furthermore, this type of insurance doesn’t payout if you pass away.
What will and won’t be covered will be stated in the policy details therefore make sure you understand the policy and check all the documentation protects your needs.
Other types of insurance can provide support should something unfortunate happen to you. Below, are a list of some you might want to look into:
At Cardiffmoneyman, we offer all our customers a free, no-obligation protection review where we will look into any existing policies you have in place and check if they are appropriate for you. It’s important to know that insurance is massively beneficial.
Affordability is key when looking into insurance. That’s why a protection specialist in Cardiff, like ourselves, can provide you with the best cover that is suitable to your circumstances and priorities your budget and family.
For first time buyers in Cardiff 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 party’s income and take this into account when running the affordability calculations.
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.
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.
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. You are 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.
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 Cardiff 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 can contribute to easing your future mortgage payments.
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 was 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.
Mortgage protection insurance is a term used to encompass various types of cover designed to protect borrowers like first time buyers in Cardiff from events that could severely impact their ability to maintain mortgage payments.
There are different variations, but when connected to a mortgage, they are all there to provide peace of mind and usually fall into the following categories:
As a rule, if the policyholder dies within the term, then the sum assured should be enough to pay off the outstanding mortgage balance and ensure the borrower’s dependents aren’t left with a debt they might not otherwise be able to manage.
Our protection specialists in Cardiff can run through all the different types of life cover and recommend the most suitable plan for you.
Critical Illness Insurance works similarly to life insurance in that it is usually taken for a specific term of years and can have different options such as level/increasing.
It pays out a lump sum, and, like life cover, it is taken on a decreasing term basis in line with the reduction of your mortgage balance for borrowers.
The key is that the benefit is paid if you fall victim to one of several specified critical illnesses and pays out whatever the long-term prognosis of that illness. The type of illnesses covered vary from company to company.
That’s why this type of insurance cannot be solely price-driven and always recommended advice.
In practice, many companies will offer life and critical illness cover as a combined policy and would usually payout on the “first event”, i.e. whatever happens first – either death or a severe illness – the payout is made. They can also be written on a single or joint life basis.
Whereas life and Critical Illness cover pay out a lump sum, income protection pays out a monthly sum designed to replace your wages if you are unfit to work.
Unlike critical Illness cover, there are no restrictions on the illnesses or injuries covered, the only factor being whether they make you unfit to work.
However, there are restrictions on how much you can cover and how quickly benefits would start to be paid.
Like life and critical Illness cover, these policies are underwritten based on your health and lifestyle when you apply. All income protection policies are written on a single life basis.
Unlike the traditional forms of policy, the cover would pay an annual or monthly income for the remainder of the plan’s term rather than pay out a lump sum.
Thus, it can replace the primary breadwinner’s income for several years, dependent upon a particular client’s circumstances and, because of this, would usually be written on a level or basis or an index-linked basis designed to keep up with inflation.
There’s an adage that says you can never have too much insurance. Indeed, many people have one or more of the different types of policy, and it would be wrong to think of Mortgage Protection Insurance as just an “either/or” choice.
However, affordability plays a massive part in the real world, so whilst it would be fantastic to cover yourself for every potential opportunity, a good advisor will sit down with you and tailor the type of cover to be the most suitable combination to your family’s priority and budget.
From a lender’s point of view, a bank statement provides an insight into your spending habits and determines if you’re trustworthy with paying on time. The presentation of your bank statements is essential because this evidence can be the difference in how much your lender will let you borrow or will lend you anything at all.
Knowing how much a lender will let you borrow is all down to risk, however, a lender needs to know that you can handle your finances and be responsible. Remember, a mortgage is likely to be the biggest financial commitment you will ever make and is not something to be taken likely.
There are different ways you can obtain your bank statement, such as receiving your bank statement through the post from your bank or going into your local branch and getting it over the counter. It’s common to see these days that people will retrieve a printable version from their bank’s online platform.
Presenting your bank statement in a positive light is important, so the main question is, what are lenders looking for on your bank statement?
Again, the lenders want to know if you’re responsible when it comes to your finances. Therefore, overdrafts will be something they will look into. An overdraft is there for you to use and on occasions using it is not necessarily a bad thing, however, if exceeding your limit becomes a daily occurrence, this is going to affect the lender’s trust in you.
Another factor to be careful with is potential returned Direct Debits because this could show you are not consistently reliable. Furthermore, failure to disclose loans at the application stage will not make you look good to the lender because, as mentioned, this is a process of trust.
Another element that you need to be aware of is missed payments for personal loans and things such as credit cards. It’s more likely that a lender will aim to lend an amount closer to what you would like to borrow if you can meet your monthly payment deadlines.
This is a commonly asked question we hear from customers when they are looking at their bank statements. A history of gambling can be an issue many get themselves into. While the odd bet is harmless, frequent betting with large amounts of money can be an issue. Whether you’re making it back or not, a lender will see this as a disadvantage
To learn more, please see our article on “Do Gambling Transactions Look Bad on My Bank Statements?”
When working with many first time buyers in Cardiff & home movers in Cardiff, we have found that the majority of mortgage lenders will require the applicants to obtain at least three months’ bank statements from an applicant. This can differ for the self-employed
With this in mind, you theoretically have three months to work on your finances. Start to think more about the future and begin working on your finances at this time. We recommend that you take a break for a while if you are a regular customer of the local bookmakers or online gambling scene. This can be a benefit to your financial state as well as your mental health.
Another step we would suggest is to try to save money. Reducing the number of times you eat out, cancelling unneeded subscriptions, and reducing your purchases on unnecessary items can all help. By doing this, you can free up additional cash to pay your bills on time.
This is all down to you being sensible and planning ahead of time to what you’re looking to do. Reducing the risk of bouts of debts and financial uncertainty will put you in a good situation with a lender.
If you’re a first time buyer, moving home, or self-employed, it’s always important to keep your finances on track. Getting in touch for specialist mortgage advice in Cardiff can help you if you’re feeling unsure when it comes to bad credit history. We are here to further your mortgage journey by advising the best we can.
When it comes to your bank statement, lenders will be looking at various factors to see if you can keep up the mortgage payments. Over the years, we have seen an increase in inquiries regarding if gambling transactions look bad on their bank statements.
There is nothing illegal about licensed gambling so an occasional bet on the world cup or regularly using internet betting sites isn’t a problem. However, like a lot of gambling adverts, they do urge customers to gamble responsibly and these principles are the same when applying for a mortgage.
The role of the lender is not to tell you how to live your life or spend your money or even lecture you about the ethical rights and wrongs of gambling, however, they do have a duty (underscored by mortgage regulation) to be responsible when accepting customers for a mortgage.
Lenders may need to prove to the regulators that they are making well-thought decisions. Therefore, it isn’t unreasonable for the lender to have expectations of the people they lend to when it comes to their finances.
Think about it. If you were lending your own money to a ‘friend’, would you lend it to someone who frequently gambles or the one who doesn’t?
Having the odd gambling transactions on your recent bank statement doesn’t automatically mean your mortgage application would get declined. As mentioned before, it is not illegal to gamble.
However, the lender will look into these transactions to see if they are reasonable and responsible. The factors that they will look at are the frequency of the transactions and the size of the transactions. Furthermore, they will take a deeper look into the individual’s account and the impact upon the account balance.
When it comes to these transactions, infrequent small amounts that make no impact on your regular credit bank balance are not likely to be regarded. If you’re in a situation where you bet most weeks or you have constantly overdrawn money, the lender is expected to see you as irresponsible and may decline your application
Providing bank statements to your lender is required as it’s a way to show how you manage your money and helps the lender when deciding if you are financially reasonable or not through your bank statements.
Lenders are financial institutions that, either directly or as part of a wider group, often sell current accounts, overdraft facilities, credit cards, and personal loans. Because of this, they have an understanding that these things can all play a role in financial planning.
You may find yourself using your overdraft, however, if maxing out your overdraft becomes a regular occurrence, this is not ideal. Lenders will look for things that could show your account is not handled well such as overdraft fees or returned direct debit.
Credit transactions from payday loan companies are another thing lenders will want to see (i.e. , if you put on your application that you have no other loans but regular loan payments appear then this could be a problem.)
As well as looking for any missed payments, they might also consider how much of a typical month gets spent overdrawn – i.e., measuring the sustainability of the mortgage by looking at situations such as if you only go into credit on payday and the rest of the monthly earnings get stretched.
The best way to improve things is to be sensible, and if possible, plan ahead. A bank would ask for up to three months of your most recent bank statements. This evidence will show your salary credits and all your regular bill payments.
If you know you’re likely to apply for a mortgage in the near future, it can be good to try to make sure that you avoid any of the above issues. Work on presenting your bank account in the best light and take a break from gambling.
You can find help from your mortgage broker in Cardiff as some lenders may ask for fewer bank statements than others or some may not even ask for them at all.
Being careful in the run-up to any mortgage application is best as lenders reserve the right to request bank statements in certain circumstances. Remember, if you do gamble, please gamble responsibly!
A mortgage advisor in Cardiff can provide specialist advice if you are a first time buyer in Cardiff. They will be there to help you through your mortgage application and guide you through the whole mortgage process as well as getting you on track so that a potential lender may be impressed with your credit history.
We understand that going through a divorce or separation with your partner when you have a joint mortgage together can be difficult. This guide provides you with a list of frequently asked questions that you may want to know when it comes to divorce and separation.
In any case, you still need to keep paying your half of the mortgage even if you are living elsewhere in the meantime.
Regardless if only one of you is living there at the moment, you are both held equally liable for the debt as you and your ex-partner both agreed to take out a joint mortgage. Therefore, you need to keep paying half of your mortgage until it gets paid off.
If you fail to pay your mortgage on time, it can harm both you and your ex-partner’s credit history. Failed mortgage payment could lead to repossession of the house if you do not keep up with repayments on your mortgage or any other debt secured on it.
It’s best to inform your lender sooner rather than later. We recommend you mention this to your lender when you know you are separating.
If you have both agreed it is best to move out, sell up and pay off the mortgage, any equity left after the mortgage has been paid off will be split between you and your partner. In terms of who gets what in the leftover funds is a matter between yourselves.
Our trusted mortgage advisors in Cardiff are here if you decide to move out and look to purchase a new property. They can recommend you with the best deal, offering honest mortgage advice.
In some cases, where the divorce is on good terms, you can decide to stay and pay the existing mortgage. This option can be beneficial if your mortgage is fixed for a couple of years.
In the situation in which you or your ex-partner will live in the property, then the remortgaging of the property would be under the current resident in their sole name.
You will need to remortgage if you decide to become the sole owner of the property because there is an existing mortgage in joint names. From this, you will then need to take out a new mortgage in your sole name, meaning your affordability will be reassessed.
Depending on your circumstance, yes you can get a second mortgage. When applying for a second mortgage, each lender will have different credit scoring systems they use and consider a range of factors. One main factor to look at when applying for a second mortgage is your current financial commitments. From this, you can determine if you can afford the second mortgage as there could be a risk of your application getting declined which could negatively affect your credit file.
The good news is that, here at Cardiffmoneyman, we can perform a search for you that won’t damage your credit file. The maximum amount you will borrow will be confirmed when we have the necessary information gathered.
From this, you can have a good idea of your budget and how much your monthly mortgage will be on top of your current financial commitments.
Moving away from your current financial commitments can be a challenge, however, this is why having an expert Mortgage Advisor in Cardiff by your side could be beneficial.
An experience like moving home can be stressful, especially when a complex situation like divorce or separation is added to the mix. Our caring and knowledgeable Mortgage Advisors in Cardiff will do their best to help you with this process.
Negative equity can happen when the value of your property falls. In the situation where your joint home is in negative equity and you are divorced, it can become a challenge to sell the house and pay off the mortgage in full.
The outstanding debt might have to be split between the two of you or follow and agree with your mortgage provider’s advice.
Whilst moving home may seem straightforward, you also have to remember that you have to sell your home at the same time. Moving and selling at the same time can be stressful, and sometimes it can feel like all you want to do is quickly sell your home.
So how can you do it? How can you quickly get your house on and off the market and sell it for the price that you want to? Here are some tips that could maybe help you sell your home quickly:
There’s always a magic number when it comes to choosing what price you should put your property on the market; it can sometimes be hard to find, but once you do, you’ll know right away. Getting the perfect balance between what you want for it and what a buyer is willing to pay is what you need to try and get to.
To get this number, it’s likely that you’ll need to get your property surveyed. Your estate agent will suggest the highest potential sale price, however, just because it’s a suggestion, doesn’t mean that it’s the right thing to do.
As a mortgage broker in Cardiff, we would recommend using sites like Zoopla and Rightmove. These sites can be used to compare houses that are similar to yours. For example, you could compare their prices to what your estate agent suggested you could list yours at. Once you have a feel of what other people are doing, it may be time to set a price. You’ll know right away whether you’ve set the right price or not, as you’ll start receiving property viewings right away.
If your property receives no initial interest, then it may be time to reevaluate your asking price. Even though you’ve done your research and you want a certain amount, if no one is interested in your property and you want a quick sale, you’ll have to lower your starting price.
Thinking of how your home looks in another person’s shoes can be difficult, but we definitely suggest that you try it.
Think about how your house looks from the outside and the inside. What is the first thing that they will see when they walk up to your house? What’s the first thing they’ll see when they walk into your house? It’s likely that the way that you view your house will be the same way that everyone else does.
Linking to the last point, before you invite people into your home, the first thing that they’ll see is the front garden and the exterior of the property. With this in mind, it may be a good idea to make your front garden presentable and tidy to welcome house viewers into the property. This could be from replanting flowers to jet washing the drive and cleaning your windows – every little helps.
Cleaning the inside of the property is a must when it comes to selling your home. You want to show people that you look after the house and have kept everything in shape in your time living there. Make sure that clean all throughout the property, in particular, the kitchen and the bathroom.
We also recommend that you remove clutter and obstructions that will avoid people walking around the house easily. The last thing you walk during a house viewing is for your guests to be squeezing through doorways and steeping over clutter.
It’s also not a bad idea to make things look coordinated, e.g. towels in order. Little things like this can often catch people’s eye, again referring to the fact that you look after the property.
Every guest should feel relaxed and welcomed as soon as they enter your home. You want them to get the feeling that the property could be their new home. It can be difficult for it not to happen, however, having pets or children around during a house viewing could potentially put off buyers.
On the other hand, a great way to send out a message that this is a ‘family home’ would be to have children around and pictures up on the wall of your family. Believe it or not, having family pictures up around your home can make the viewer feel welcome and comfortable. This will especially help if the person viewing the house has a family or is planning to start one.
Sometimes, it can also be a good idea to let your guests view the property themselves. You could let them have a wander around on their own if it’s appropriate. In some cases, we’ve also seen people leave the house or go for a walk so that your guests can have time to explore the house without it being too crowded.
The back garden is usually the last stop of the house viewing, therefore you want to make it as presentable as you can.
This means replanting flowers, tidying hedges and trees, running the lawnmower over the grass, painting your fences, etc. Anything that makes your garden look relaxing and welcoming could positively boost their overall opinion of your house.
We also advise that you don’t just put clutter and rubbish inside of your garage because it’s likely that your house viewers could ask to see inside of it to see what sort of space there is in it. The last thing that they’ll want to see is a garage full of random things that you’ve tried to hide away.
In summary, make your home feel welcoming, make the person viewing the house comfortable and try to think “what would I think if I were in their shoes?”. A potential buyer may become a guaranteed buyer if they are pleased with your home!
Minor damages and repairs may need to be carried out on the property, however, we do advise that you get this arranged prior to putting the house on the market. If you’re moving home in Cardiff, you’ll know what to look for in a new home, so apply it yours too.
For moving home advice, speak to a moving home mortgage advisor in Cardiff today. Our team are highly experienced when it comes to helping people move home – we’ve been doing it for 20 years!
Get in touch for a free moving home consultation today.
When you’re inexperienced as a first time buyer in Cardiff and have never taken that initial step onto the property ladder, the process can sometimes be a stressful one. Luckily for you, it doesn’t have to be like that. To help put you in the best position for your next house viewing and to get ‘mortgage ready’, we’ve put together a list of nine questions that you should always ask when buying a house as a first-time buyer in Cardiff.
Taking out a mortgage will more than likely be the biggest financial commitment you ever make in your life. As such, you may find yourself wishing to take some time to think about your options and what you really want to do.
In enquiring with the vendor or estate agent about the amount of viewings that have taken place at the house, you’ll be able to more accurately predict how much time you have to properly think this through, before you make a definitive decision. Of course, if the property is receiving lots of interest, you need to be ready to make a final decision as soon as possible, so to avoid losing out to another buyer.
A property being tied up into a property chain can have a huge influence on how your mortgage process will go down the line.
If there’s no onward chain (e.g. new home, bereavement or emigration), you’ll more than likely be able to move fairly quickly, especially if you’re not part of a chain either. If there is no requirement for you to sell your own property in advance, then you’ll have more leverage as a buyer, as you won’t be holding up the home buying process for anyone else.
Be sure to use this to your advantage when entering into property price negotiations.
If you’re not buying a new build property, then the previous homeowner may have left some items behind when they moved out. We often hear about white goods (which can include things like washing machines, fridges, freezers etc.) or even garden sheds being left behind for the next person who moves in.
For home buyers this can be fantastic, as it can not only save you money on buying those same items, but it can also save your time, as you won’t need to spend time finding these items and awaiting delivery.
On the flip side of this, if you don’t want or need these items, you will have to factor in the costs and time of disposing them. If you are buying a new build property, you might find that there are optional extras you can buy which will be ready for you on the day you move into your new home.
When moving into an area that you don’t have any familiarity with, it’s worth doing some research to see what the neighbours are like, as a good or bad neighbour experience can often be the deal breaker in what your experience of living in the property is like.
That being said, if you’ve had the opportunity to move into a new housing site that has been or is being developed, you will be creating an entirely new neighbourhood with people who are more than likely unknown to you. This itself can be a risk, as you cannot prepare for what the locals will be like ahead of time.
The running costs of a property can significantly differ, depending on the house and the location, so it is very important to do your research on these and ask the right questions.
Make sure you find out how much the Council Tax is, along with how much on average you might be spending on utilities, by asking the seller or doing some of your own research online. Obtaining this information can help you budget for each property you have viewed accordingly.
This may seem like a bizarre one, but it can be an incredibly important factor to many people. If you are fond of relaxing in the garden on late summer evenings or reading books with a good source of natural light, you need to find out which way the property is facing.
What’s unfortunate here is that through looking for this, you’ll often pay a sizable, more premium price for a south-facing garden, due to the fact that they receive the most sun during the daytime.
This is again something that can have quite the impact on your budget. You should always look to see if there is any work required in the property for improving energy efficiency, changing any decorations and addressing any problems with damp that exists in the property.
Getting started on negotiation discussions for a property you’d like to buy is a pretty common home buying step. As such, it’s important to make sure you are as prepared as you possibly can be to make an offer on a property that you are interested in. Once you are ready for this, the next step is for you to go and start making offers on a property.
It is also worth initiating a conversation with the seller or estate agent to figure out roughy what the seller of the home you are after may consider to be a lowball amount, as well as find out the maximum amount it is worth. You should also look to find out if any other offers have been made and rejected prior to you making your offer.
By picking a date in your diary that you ideally would like to move at, you are able to plan your other jobs around that date. This will be tasks such as instructing a conveyancing solicitor, packing up what you own ready to move and arranging a removal van to bring your belongings to your new home.
Depending on the situation you happen to be in, a second mortgage may be a possible option for you to look at utilising. There are two different methods this can be achieved.
You may be able to obtain a Second Mortgage for buying an additional home or taking out a Buy to Let, allowing this to run alongside your existing mortgage. Alternatively, you may have the option of a Second Charge, where you take out an additional mortgage amount against the same property, with a different mortgage lender.
Below we’ve put together a guide on where this could be applicable, as well as a helpful video guide where Malcolm talks about the significance of taking out a second mortgage in Cardiff.
There are various different situations where someone might find themselves needing to have more than one mortgage. Through our experience as mortgage advisors in Cardiff we’ve heard of some fairly common recurrences, with these including, but not limited to;
1) Wanting a second mortgage to raise money for your existing home.
2) Looking to rent out your existing home and purchase a new one.
3) In the market to buy a new property with your name on another mortgage already.
4) Looking to help your children out with a second mortgage.
5) In need of a second mortgage to purchase a buy to let property.
Looking at the latter one, we feel it’s important to let you know that we have a vast wealth of knowledge on Buy to Let mortgages in Cardiff, having worked with many lenders including very specialist ones, all with their own unique lending criteria.
We also have a long history of helping Buy to Let Landlords with their properties. For more information on being a Landlord, please check out our Buy to Let Mortgage Advice in Cardiff page.
If you have equity in your home, you could have the option to take out a Second Charge to release this equity and fund the deposit for a potential additional purchase. It can also be just generally used for any purchase, such as a new car, a holiday or something else.
The way a Second Charge works is that if you still have equity sitting in your property, you may be able to take out a mortgage with a second lender, in order to release some of the equity in the property.
Usually, if you are on a lenders Standard Variable Rate, we are able to shop around for you and find a more competitive deal whilst also releasing Capital. A further advance with your existing lender may also be an option available to you.
In some cases, homeowners may be looking to keep hold of their existing property, with the intention of renting it out a taking out a second residential mortgage on a new property. This process is known as a Let-to-Buy Mortgage and has become increasingly popular over the last decade.
Sometimes your Children or even Grandchildren may be struggling to find their footing on the property ladder. As such we regularly see homeowners using either a Second Charge to release some equity to gift their loved one either a portion of, or the full amount of deposit.
We find that there are many landlords looking to purchase additional Buy to Let properties to add to their portfolio, by taking out a second mortgage. Our team are able to use our expert knowledge to recommend the most suitable Buy to Let mortgage product based on your personal circumstances. You will be asked to produce a higher deposit for this mortgage than a typical residential mortgage.
If you are currently named on another mortgage and unable to get your name taken off of it, you may still want to try your luck and apply for a mortgage of your own. This is a situation we come across often and have experience helping many different customers with.
No matter your situation, if you are looking to get a second mortgage, we may be able to help. As a fast & friendly mortgage broker in Cardiff, our Advisors are able to search thousands of mortgage deals on your behalf, following up with a recommendation on the most suitable product for you based on your personal situation.
For more information get in touch to book your free initial mortgage consultation, and speak with a dedicated mortgage advisor in Cardiff.
A 95% mortgage is as simple as the name would suggest; you are borrowing against 95% of the price of a property, and then you are covering the remaining 5% with your deposit. An example of this is if you looked at buying a property that was worth £150,000 with a 95% mortgage, you would be putting down £7,500 as your deposit and borrow the remaining £142,500 from the lender.
Off the back of the March 2021 Budget, Boris Johnson announced a Mortgage Guarantee Scheme for mortgage lenders, making 95% mortgages more readily available from the bigger high street banks.
This is fantastic news for First-Time Buyers and Home Movers alike, as this scheme will continue running until December 2022. Certain terms and conditions will apply though, which is something your Mortgage Advisor in Cardiff will be able to look at, to see if you qualify.
All our customers who opt to get in touch will receive a free, no-obligation mortgage consultation where one of our dedicated mortgage advisors will be able to make a recommendation on the best possible route for you to take.
95% mortgages are usually accessible by both First Time Buyers in Cardiff & those who are Moving Home in Cardiff. Whilst saving for a 5% deposit sounds like a pretty straightforward concept, you’ll still need to have an acceptable credit score and prove that you are able to afford your monthly mortgage repayments, in order to access a 95% mortgage.
A good credit score is essential in the process of obtaining any mortgage, especially a 95% mortgage. Things like paying any current credit commitments on time, ensuring your addresses are updated and checking that you’re on the voters roll, can all help with your credit score.
Affordability is another one that is important to take note of. By giving the lender details of your income and monthly outgoings (things like your bank statements will be necessary for this) and any pre-existing credit commitments, your lender will be able to get a general overview of whether or not you are able to afford this type of mortgage.
Nowadays we see lots of family members helping each other get onto the property ladder, especially parents looking to further their children’s lives. The way this usually happens is by gifting the person looking to find their home, the deposit required. Known through the industry as the “Bank of Mum & Dad, Gifted Deposits are only intended to be a gift, and not as a loan. The lender will need proof that this has been agreed, before it can be used towards your mortgage.
When looking for a 95% mortgage, you want to make sure you have the right type of mortgage. Each mortgage type works differently, with that choice allowing you to find one that is most appropriate for your personal and financial situation.
Some homeowners and home buyers prefer Fixed Rate or Tracker Mortgages, mortgage types which mean you either keep interest rates at a set amount for the term given or have your interest rates tracking the Bank of England base rates.
Alternatively, you might find that Interest-Only or a Repayment Mortgages are more your style. Interest-Only allows cheaper payments until you need to pay a lump sum at the end (mostly now used for Buy-to-Lets), whereas a Repayment mortgage (a normal mortgage if you’d like) means you’ll be paying interest and capital combined per month.
Seeing as a mortgage is such a large financial outgoing, you need to be prepared and need to be aware. You might find things like higher interest rates, remortgaging difficulties due to less equity and then negative equity all cropping up if you’re not.
There is no need to worry though, as all these can be avoided if you’re savvy enough with your process to begin with. The more deposit you put down for a property, the less risk the lender will see you as.
A larger deposit, of say 10-15%, would not only reduce the rates of interest by a noticeable amount, but would also give the property more equity and reduce the risk of negative equity, thanks in part to you borrowing less against the property.
So, whilst the risks may seem intimidating, planning ahead and saving for a bigger deposit to access something like a 90% or even an 85% mortgage will be a massive help in your mortgage journey and something you’ll be able to reap the rewards from in the future.