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Buying a Property in Joint Names in Cardiff

Mortgage Advice in Cardiff 

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. 

How Many People Can Co-Own a Property? 

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.  

Joint Tenancy or Tenancy in Common? 

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. 

Do I have to pay the mortgage if we separate? 

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. 

How do I remove my ex-partner from a Joint Mortgage? 

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. 

Can I remove my name from a Joint Mortgage? 

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. 

Divorce & Separation FAQ’s

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.

Do I need to keep paying my half of the mortgage?  

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.

When should I inform my lender?  

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. 

What are my options? 

1. Sell the property

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.

2. Continue to make those payments 

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.

3. Stay in the property 

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.

Can I get a second mortgage? 

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.

What if I am in negative equity? 

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. 

Product Transfer & Remortgage Advice in Cardiff

What is a Remortgage?

A Remortgage is when a mortgage deal comes to an end and you have to either renew your deal or switch onto another one. If you are approaching the end of your mortgage term and you need a new deal to switch onto, perhaps it’s time to get Remortgage Advice in Cardiff.

If you leave a Remortgage too late, you could find yourself dipping straight onto your lenders’ standard variable rate (SVR). A lenders’ variable rate will always be a higher rate than your current fixed-rated, so make sure that you know when your deal is coming to it’s end and it’s time to remortgage.

Why Should I Remortgage UK | MoneymanTV

What should I do when it’s time to Remortgage?

When it’s time to remortgage, you should consider all of your available options:

  • You could stick with your lenders’ SVR if you don’t want the hassle and are happy with the rate.
  • Maybe you want to renew your current deal and continue at your usual rate
  • You could shop around for different deals to see whether you can access a better rate or not (also known as a product transfer/switch).

Lenders’ Standard Variable Rate

More often than not, your lenders’ standard variable rate will have a greater interest rate than most of their fixed-rate mortgage deals. If you want to save the hassle of searching for another deal or are more than happy to match their payments, this could be an easy option for you. It depends on your lenders’ standard variable rate.

As a Mortgage Broker in Cardiff, we must inform you that in the majority of cases, applicants who are on their lenders’ SVR are able to access much better rates.

The only real positive to being on your lenders’ standard variable rate is that you are not tied into any particular mortgage deal, therefore you can shop around and look elsewhere for other mortgage options whenever you want to. You can’t do this whilst linked with a fixed-rate product. You are essentially overpaying for freedom.

Renew your current deal

If you were happy with your mortgage payments, you may be able to renew your current deal. Your lender will know that you are coming to the end of your deal, however, they may not tell you. It’s your job to know when it’s coming to an end and you must get in touch with them if you want to discuss teh possibility of renewing your deal.

When a deal suits your circumstances, we know that there is rarely a reason to swap products. The only time it really happens is when someone can get the same product from another lender for slightly cheaper.

Shop elsewhere

In our opinion, this is your best option if you are looking at Remortgaging in Cardiff. Most of the time, there’s a better deal out there that’s available for you, it’s just the case of finding it. Remember that you are under no obligation to stay with your current lender, so when we say to “shop around”, you can look anywhere.

Lenders will never reward you for your loyalty, they are more likely to offer better rates to First Time Buyers in Essex. No matter how long your term was, they will never offer you discounted rates or products.

When you are looking for external deals, you have to be careful where you look. For example, if you choose to switch everything over online, you need to make sure that you pick a deal that is right for you. If you end up with the wrong deal, you will have to deal with consequences as you chose not to take Mortgage Advice in Cardiff and did everything yourself. If this results in you paying more than your previous rate, you can’t do anything about it, you will still have to pay.

There are ways to get out of a wrong deal, however, they include high fees and a lot of trouble. If you take Mortgage Advice in Cardiff you will avoid all risks of getting it wrong, as a Mortgage Broker like ourselves aim to get it right the first time!

Remortgage completion

Once you have chosen your Remortgage route and have a new/the same deal in place, you are free to continue as you were prior to remortgaging. You will continue paying your mortgage payments as usual.

Hopefully, you managed to get a competitive rate out of your remortgage and are happy with the product that you now have. Until your term is over, you don’t have to worry about remortgaging for a while now. On the other hand, if your personal or financial circumstances change in Cardiff, you should know that you can remortgage again if you need too. If your situation has changed, your lender will take it into consideration and may be able to work something out for you.

If your situation is complicated, approaching a Specialist Mortgage Advisor in Cardiff could your best option. You can also Remortgage for home improvements and to raise capital, so don’t hesitate to get in touch if you need help with this.

Offset Mortgage Advice in Cardiff

Offset Mortgages Pros & Cons | Mortgage Advice in Cardiff

Offset mortgages are not the ‘go to’ mortgage for most, but they can turn out to be a great option to go on. It provides an opportunity to the customers to reduce the interest to be paid.

Offset mortgages can help pay off your mortgage quicker, as well as coming with tax benifits.

How do Offset Mortgages work?

This is a form of mortgage that connects the outstanding balance with a savings account (normally through the same financial provider).

The balance you have on your bank account reduces your mortgage interest. You should only pay interest on £200,000 on your mortgage, for instance, if your mortgage was £300 000 and you had £100,000 in your associated savings account.

Is an Offset Mortgage a good idea?

An offset mortgage offers flexibility, as you are able to add or remove funds from your offset savings account as and when required, meaning the cash is still available should you need it.

Also, you are able to reduce your interest and monthly payments by adding funds to your offset savings account. I.e. if you know you are going to be paid large bonuses these could then go into your offset account to reduce your payments. An offset could turn out to be the best way for a first time buyer in Cardiff who is looking to overpay on his mortgage.

Offset mortgages appear to be of special benefit to higher taxpayers or additional taxpayers and to persons who do not rely on the increased interest to fund their daily lives.

An offsett mortgage is a specialist subject and is not the right option for most. However, our mortgage advisors in Cardiff have vast knowledge when it comes to offset mortgages and will be able to advise if it is the right option for you.

We’d be Happy to Help you

Take some time to consider all the possible options and outcomes while speaking to Mortgage Advisor in Cardiff. It is necessary to consult an advisor to know more about the impact of Offset and how would you be getting the benefit from it in the long run.

If you need any sort of help or just want the questions to be answered or you have made the decision to remortgage in Cardiff. Then get in touch with our Mortgage Advisors in Cardiff. We will be more than happy to recommend you the most suitable mortgage for your individual financial circumstances.

How to Improve Your Credit Score in Cardiff

The importance of credit score

Ways to improve your credit score | moneymanTV

First Time Buyers or any applicants with high credit scores are more likely to get accepted for a mortgage over applicants with a lower credit score. Lenders study your application carefully in order to ensure that you are able to afford a mortgage with them. You will never be guaranteed a mortgage and this is because every lender has different lending criteria and the chances of you matching every single one of these is unlikely.

Each lender has developed their own way of identifying whether you match their criteria or not. It is your Mortgage Advisors’ job to try and find you a lender who has the most criteria you match up to. They will also try to find the best deal for your personal circumstances. Whether your advisor is from your bank, the mortgage lender or a Mortgage Broker in Cardiff, your advisor will try their best to match your personal circumstances.

By going with a Mortgage Advisor in Cardiff, you will always know what is going on and will always be updated if anything changes or something comes up. We are a dedicated mortgage broker, here to help improve your credit score and help secure that perfect mortgage deal. Whether you are a First Time BuyerMoving Home or Self Employed, we think that you would benefit from fantastic Mortgage Advice in Cardiff.

Credit Score Mortgage Advisor in Cardiff

There are many different credit reference agencies in Cardiff that you can go to, with the most popular are Experian and Equifax. Before you make a decision, research each agency as it is a possibility that some of them could be holding incorrect data and discovering any discrepancies will be very beneficial to you.

Improving your credit score can be difficult but there are ways you can do this effectively in a manner that allows you to reap the rewards down the line.

Avoid unnecessary credit searches:

Making multiple credit searches could actually have a adverse impact on your credit score. Price comparison websites are risky as they can also damage your score, so be extra careful. We also advise you to not apply for credit during the mortgage process as this may signify to the lender that you are struggling financially, even if you are not. It is a good thing in the long term though as it shows that you are reliable in making recurring payments.

Check that you are on the voters roll:

Another simple but useful tip for improving your credit score is by registering for the Electoral Roll. In the eyes of the lender, it shows stability which they will favour. When registering, you must spell your name correctly and set your address to your current one and not a previous one. If you are not registered then you definitely should do this asap, as it’s quick and easy to set up and it could have a really positive impact on your credit score. Make sure everything is correct though to maximise the benefits!

Don’t run close to your maximum limit:

Maxing out your card each month is not recommended and is bound to reduce your credit score. The lender looks at your credit card statements to check whether or not you have paid off balances by the due date. If you are meeting due dates and have never exceeded overdraft limits then a lender will see that you are more than capable of handling your finances well and it could prove beneficial towards your mortgage application.

On the flip side, if you don’t manage your finances carefully then the lender will believe that you don’t take payments seriously, thus reducing your chances of being accepted by them for any amount.

Check your address history is keyed correctly:

We often find that people who have moved house have not told their previous credit provider, which means that on their records you still are shown as living in the other property. Make sure you are on top of this as lenders don’t like to see your address history all mixed up and shown as living in two different places when you are not.

Remove financial links to others:

Some people, without even realising, have a family member or ex-partner connected to their financial commitments. It’s worth checking just to be sure, as you can’t get the financial association removed if the account is still live. If you are trying to remove any of these links then you should contact the credit reference agencies and make a request with them directly.

Applicants see credit scoring as being an unfair approach to accessing whether or not they can obtain a mortgage. Lenders disagree as this method provides a faster, fresher approach to their system of credit scoring. It’s also a lot cheaper for the mortgage lender and it provides always provides a result that they deem trustworthy.

If you want to get ahead of the game, you should send an up-to-date copy of your credit report in advance to your Mortgage Advisor in Cardiff. Starting early will increase your chances of being accepted for a mortgage the first time. The more that your advisor knows about your financial situation the better your chances will be.

Also, there are still some lenders that will want to do the process the old-fashioned way and will prefer a manual approach. They will have certain rules that they stick by about the number of defaults and CCJs that they will allow.

Cardiffmoneyman.com & Cardiffmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited registered in England, registered number 6789312 and registered office 10 Consort Court, Hull, HU9 1PU.

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