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Can You Have Two Mortgages in Sunderland?

Second Mortgage Advice in Sunderland

Can I Have Multiple Mortgage? | MoneymanTV

There are multiple different reasons why someone may look to obtain themselves a second or even at times, a third mortgage. A good example could be used as a means to grow your property portfolio. Alternatively, it can be used to house a family member.

Obtaining a second mortgage can be quite difficult, more so than your first one, as now you’re having to account for two sets of mortgage payments, which could have a knock-on your affordability. If you are unable to afford the costs involved with a second mortgage, the mortgage lender will not accept your application.

Why would I want a second mortgage?

As a trusted and dedicated Mortgage Broker in Sunderland, we’ve seen people apply for a second mortgage for all kinds of different reasons. These include;

Second Mortgage to…

Raise Money

If you happen to be over five years into your mortgage term, the chances are that you’ve built yourself up a suitable amount of equity in your home. You can withdraw some of this equity and turn it into cash, through taking out a second mortgage.

This situation is known as a further advance. A further advance is when you borrow more from your current lender to fund something like home improvements or a second mortgage.

What you do with that money is completely your choice, after all, it’s equity you’ve built up in your own home. Some people use it to fund the deposit of another mortgage, whilst others may use it to take their dream holiday. There are no limitations once you’ve withdrawn that equity.

The amount that you can borrow from them will depend on the amount of equity in your property. It is worth noting though that releasing equity within your home isn’t always an easy process. Speaking with a Specialist Mortgage Advisor in Sunderland will definitely benefit you along the way. Our advisors have access to a unique and vast selection of second mortgage deals.

Rent Out a New Property (Buy to Let)

No matter if you’re a landlord with experience within the market already or someone who is looking into making their first purchase on an investment property, you’re going to need more than one mortgage to achieve your goals.

Buy to let landlords that have amassed themselves a suitably large portfolio will likely be used to the process of getting more than one mortgage. For those starting out as a landlord, sometimes you need help getting everything sorted properly.

Second mortgages in the form of buy to let work in a similar way to the first mortgage you took out. You still have to meet the mortgage criteria and put down a deposit (typically 15%-25% of the property), as well as passing affordability checks.

Affordability in this case isn’t always down to your own income though, as some lenders will look into what the predicted rental income will be expected and stress test this against their own multiples.

No doubt the cost of your mortgage payments should be sufficiently covered once you have found tenants and they have moved in. Initially though this might prove challenging, so you need to be able to cover the costs until the income starts to flow.

For Buy to Let Mortgage Advice in Sunderland, please feel free to speak with our buy to let mortgage experts here at Sunderlandmoneyman.

Rent Out an Existing Home to Purchase a New One (Let to Buy)

This sort of process is what is known as a let to buy mortgage. Some homeowners will have an option to get a second mortgage on a newly purchased home, allowing them to rent out their current home and move into a new home for themselves.

Let to buys are of course very similar to buy to lets, it just works a little bit differently. In this case you need to find a tenant for your current property, in order to move out yourself. Landlords may do this if they want to move themselves into a bigger family home.

Our Buy to Let Mortgage Advisors in Sunderland also have a lot of experience and knowledge in working with let to buy mortgages, so get in touch if you would like an advisor to help you with a let to buy second mortgage.

Purchase a Home For Your Children/Family Members

If you have any children or other family members that are having some difficulty in getting themselves onto the property ladder, you may have the option to take out a mortgage in your name and allow them move into the it as their new home.

Going down this route will likely land you with a guarantor mortgage.

Another popular option that some people go with is to gift the person in need their deposit. Gifted deposits are crucial to the property market and are always a fond option for helping a loved one find their footing on the property ladder.

Are you named on an existing mortgage and want to buy a new home?

As noted in this article, there are various reasons as to why you can be listed on two mortgages. Sometimes it’s something you’ve planned for, but in other cases it can be completely unintentional.

We regularly find through our work as a Mortgage Broker in Sunderland, that one of the most common reasons for someone taking out a second mortgage is divorce or separation.

The difficult part here is that it can be hard to remove your own or your ex-partner’s name from the mortgage you share. This is once again down to affordability, but also down to both parties having to mutually agree.

Though it may come with challenges, it is not entirely impossible to obtain a mortgage post-divorce or separation. If you are in a similar situation, there may be some mortgage lenders out there who will give a bit of leeway considering your current personal situation.

If you’re named on an existing mortgage for a home you no longer live in, you should look to get your name removed as soon as possible. Having financial ties to someone can sometimes bring your overall credit score down, especially if the other person is bad at managing their finances and getting into arrears regularly.

Life Insurance Advice in Sunderland
Life Insurance Advice | MoneymanTV

Life Insurance is a vague term as it covers much ground; there are several different types of Life Insurance, so this mortgage protection guide will explain to you what it is and why life insurance is essential to take out for any homeowner.

If you’re looking to take out Life Insurance, it’s worth speaking with a Mortgage & Protection Specialist expert in Sunderland. We offer Life Insurance Advice in Sunderland, and we would advise that you take the Free Insurance Consultation that we provide to new/existing customers before making any drastic decisions as it may not match your circumstances.

Particularly if you don’t know what you are doing, there are many different types of life insurance. It can get complicated, and you also need to understand which is the best-suited policy that covers you best and how long the policy lasts.

What is Life Insurance?

Life Insurance pays out a lump sum of money in the event of death. The money gets passed down to a family member or friend. In the event of a claim, the person who takes out the cover can choose to either pay out the whole sum insured at once or through regular payments.

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The sum that is paid out changes depending on the type of cover that got taken out. Thankfully with Life Insurance, you can choose how the payout gets distributed. You select your specifics; for example, you may only want the money to get used to cover the remaining debts on the mortgage.

Different Types of Life Insurance Policies

There are lots of various types of Life Insurance policies. It would be wrong to think of Life Insurance as just an “either/or” choice, as many people now have one or more of the different types of cover. Affordability plays a large part, and whilst it would be fantastic to cover yourself for every potential opportunity, that’s not always possible. 

Here we have listed the different type of Life Insurance available. However, to find out more, speak with one of our Dedicated Protection Specialists Advisors in Sunderland today.

Level Term Life Insurance

With Level Term Life Insurance, you will still get a payout. However, you will only get covered for a fixed ‘term’. This policy only pays out if you die within your policies term. They usually run between 5-25 year terms in 5-year increments.

Term Life Insurance is often used to cover a mortgage. People usually take out this policy that’s in line with their mortgage term. Therefore, if you were to die and still have your mortgage to pay off, the policy will pay out the This means that the mortgage payments will not fall to family members or any other name attached to the mortgage.

Decreasing Term Life Insurance

As a Mortgage Broker in Sunderland, we’ve found that this type of Life Insurance policy is the most popular. You may be asking, “why would you want to take out a policy that decreases in value?”. Well, this policy is targeted at homeowners with repayment mortgages – which is the majority of people. This policy is usually taken out to pay off the outstanding mortgage balance should you die.

The policy’s value mirrors the outstanding balance remaining on your mortgage. As the amount owed on your mortgage decreases, so does the sum insured.

Decreasing Life Insurance is typically taken out alongside other Insurance products depending on personal circumstances. This is why we always recommend speaking to a Mortgage & Protection Specialist in Sunderland, and we can help recommend the most suitable insurance for your needs.

Increasing Term Life Insurance

This type of Life Insurance policy will still payout if you die within your fixed term. It works in the opposite way to Decreasing Term Life Policy.

The difference with Increasing Term Life Insurance is that you are covered for increases as your term goes on. It will increase by a fixed amount until your policy term ends.

This type of Life Insurance was introduced to protect the policy’s total value against inflation and is usually in line with the retail price index.

Whole of Life Insurance

As a Mortgage Broker in Sunderland, we’ve learnt that the Whole of Life Insurance policy is not at the forefront of the insurance market. However, it is still helpful, and it may be the policy that suits you most.

The Whole of Life policy is the cover that lasts your whole life. When you die, the policy that you took will payout. The costs of Whole of Life Insurance will be a little more than a Level Term Life Insurance. However, you are covered for your whole life and not just a fixed term. Assuming that you’ve kept up-to-date with your life insurance payments, your cover will apply for your entire life.

This type of insurance is usually used for family protection and part of inheritance tax planning.

joint Life Insurance

If you are in a relationship/married, you could consider taking out a Joint Life Insurance policy that will payout in the event of one of you dying. You could still have two separate Life Insurance policies if you want to. However, having a Joint Life Insurance policy is often cheaper than taking out two different ones.

This policy works because if one person dies, the policy pays out and then ends. This may seem like a downside to the policy, but if you initially took out the policy to pay off your mortgage, you would still be able to do so as the money will be released after the death of one of the policyholders.

Death in Service

This type of Life Insurance cover may be offered to you by your place of employment. Your company is not obligated to provide Death in Service cover. However, some do as part of their employee benefits package.

Death in service is usually a lump sum of cash paid out to an employee’s family or a person of their choice if they die. This sum can be up to 5 times their annual salary. There are no specific limitations on what can be done with the employee’s money.

Taking out Life Insurance as a Single Homeowner

Just because you are a single homeowner doesn’t mean that you should disregard all Life Insurance options.

If you have settled into a new place and are currently living on your own without children or a partner, it’s not unusual for people to forget about life insurance. People also sometimes choose to ignore it, and this is because it doesn’t always apply to single homeowners.

What you should think about, though, is that your circumstances could change in the future, and if they do, then Life Insurance could become an essential thing to have.

Please speak to one of our Mortgage Protection and Insurance Specialist in Sunderland and determine whether taking out Life Insurance as a single homeowner could be beneficial for you.

Our Insurance Advice Service in Sunderland

We want to make sure that you have the right policies in place to allow you to leave your family in the best position possible if you die. Taking Life Insurance will give your family financial certainty and will take a little stress off them in an already difficult time.

As a Mortgage Broker in Sunderland, we know that Life Insurance, no matter the type of cover, is highly beneficial and can put you at ease knowing that your family won’t have to pay for your debt payments.

If you want to find out more about Life Insurance, take up our free Insurance consultation in Sunderland. We will explain the policies available to you and why they could benefit your family’s personal and financial situation in the future. 

But don’t just take our word for it, look what our customers have to say about our staff. Just like our mortgage protection and specialist Mizan:

Mizna Life Insurance Review | Sunderlandmoneyman

We always ask our customers to review us. We do this because our reviews reflect a complete picture of our service from start to finish and highlight how amazing our team is. 

As a Mortgage Broker in Sunderland, we’ve found that Life Insurance is typically taken out in combination with other policies, depending on your situation. The other Insurance options are:

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Different Ways to Improve Your Credit Score in Sunderland
How to improve your credit score? | MoneymanTV

Any applicants like first-time buyers in Sunderland with a “good” credit score are more likely to get accepted a mortgage. Lenders study your application with a fine-tooth comb to ensure that you can afford to keep up your monthly mortgage payments.

Bear in mind; there’s no guarantee that you can obtain a mortgage. You see every lender has their own different lending criteria, and it’s not very confident that you will match every single one of them.

Each lender has devolved their way of deciding whether you match their criteria or not. You could compare the majority of them, but you also may not. It is your Mortgage Advisors’ job to try and find you a lender who has criteria matches.

Again, they will try and find the best deal for your circumstances. Whether your advisor is from your bank, the lender or a Mortgage Broker in Sunderland like us, they will try their best to match your mortgage needs

Going to a Mortgage Broker will allow you to Speak to a Mortgage Advisor in Sunderland who will try and find you the best deal possible based on your situation. You will always know what is going on and will continually be updated if anything changes or something comes up.

We are a devoted mortgage broker who’s here to help improve your credit score and help secure that perfect mortgage deal.

Credit reference agencies in the UK

There are a handful of different credit reference agencies in Sunderland that you can go to; however, 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 it could help you discover any inconsistencies.

Improving your credit score can be challenging, but here are a few more straightforward ways of going about it:

Avoid unnecessary credit searches:

Making multiple credit searches could harm your credit score. Price comparison websites will also damage your score, so be extra careful. We also advise you to not apply for credit during the mortgage process as a lender may look at this and think that you are struggling financially.

It is a good thing in the long term though as it shows that you can pay recurring payments.

Check that you are on the voter’s roll

Another way to improve your credit score is by registering for the Electoral Roll. In the lender’s eyes, it shows stability which they want to see. When enrolling, you must spell your name correctly and set your address to your current one and not an old one.

If you are not registered, then you definitely should as it’s quick and easy to set up and it could help improve your credit score. Make sure everything is correct.

Don’t run close to your maximum limit

Maxing out your card each month is bound to reduce your credit score. The lender looks at your credit card statements to check whether you have paid off balances by the due date or not. If you are meeting due dates and have never exceeded overdraft limits.

Then a lender will see that you can manage your finances quite well and it could prove beneficial towards your application.

However, if you don’t manage your finances carefully, then the lender will believe that you don’t take payments seriously, hence making your chances of being accepted by them low.

Check your address history is keyed correctly:

We sometimes find that people who have moved house have not told their previous credit provider. It means that on their records, you still live in the other property.

So there are two separate addresses/properties linked with your name. Again, make sure you are on top of this as lenders don’t like to see your address history all mixed up.

Remove financial links to others

Do you have a family member or ex-partner connected to your financial commitments?

You might not even know if you do, but it’s worth checking to be sure because you can’t get the economic 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.

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

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

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 specific rules that they stick by about the number of defaults and CCJ’s that they will allow.

Do I have to use my Estate Agents, in-house Mortgage Advisor?

When First Time Buyers in Sunderland is looking at purchasing a property, you do not need to go with the Estate Agency Advisor. The Agent may intimate that you may lose the property if you go with someone else, but that is not the case.

The Estate Agents earn extra commission from you when you use their additional services. People do not like being “sold” to so here are some of the tactics to look out for:

  • A Buyers Financial Incentive if you use both in-house Mortgage and conveyancing services. If it sounds too good to be true, it will be! Please always think to yourself, where is this money comes from.
  • The Estate Agent is saying they are not putting your offer forward to the Vendor if you have not taken in-house Mortgage Advice. In any case, this is an illegal practice.
  • Quoting extortionate Solicitor’s fees – being quoted extortionate £1,500+ for a straight forward purchase

There are several other ways you can arrange a mortgage without using the Estate Agent. In this article, we will try to help you decide whom to use for your Mortgage and also how to make sure you are receiving value for your money!

Do it Yourself Online

Some people are confident using price comparison websites to get an idea of the rates available. Remember it’s essential to take advice at some point in the process, buying a house is a huge deal, and it’s critical you get it right.

Here are some things to look out for if you want to have a go at applying online:

  • The rates advertised are ‘Best Buy’ rates – you might not qualify for this rate. Also, you might not meet that Lender’s specific lending criteria
  • Some websites only display deals where they have a commercial arrangement with those lenders. Deals from other Lenders not visible may be more suitable for you
  • It can be expensive if you get this wrong. Check what fees are payable and when. If your application getting declined, can you get your money back? Sometimes deals at the top of the list come with massive set up fees
  • You will solely be responsible for progressing your application. If you apply without taking advice, you will not benefit from any consumer protection such as FOS

Go to your own Bank

You could arrange a mortgage directly with your Bank. Lots of people used to do this but not so much anymore. People’s trust in the advice they receive from Banks is much less than it used to be.

What else you need to look out for:

  • Banks can only offer you their products. They are not obliged to tell you if there are cheaper deals available elsewhere
  • Computer says no! – If your application getting declined, Banks can be reluctant to tell you why. Also, some Lenders’ credit scores can be difficult to pass
  • Appointments can be hard to arrange as can out-of-hours appointments

Find your Mortgage Broker in Sunderland

Some Homebuyers are reluctant to hand over their financial details to an Estate Agent. They are worried that the Vendor might find out what a strong financial position they are in and end up paying too much for the property.

Some Estate Agents May initiate that their Vendor would prefer you to arrange our Mortgage in-house. In any case, this won’t be true – all the Vendor cares about is that you are in a financial position to proceed.

Go and see a Mortgage Broker not connected to the Estate Agent and ask for an Agreement in Principle. You can then provide this document to the Estate Agent to prove you are in a “proceed able” position. You will also get asked to evidence your deposit and ID.

A good Mortgage Broker in Sunderland like us can guide you through the full process of buying a home and give you Open and Honest Mortgage Advice in Sunderland. Contact Us and Take up and offer of a free mortgage consultation and find an Advisor you like and trust, need some reassurance check Our Reviews Page.

How Long Should I Fix My Mortgage For In Sunderland?
Fixed-Rate Mortgage Explained | MoneymanTV

If you need to know precisely how much your mortgage payment will be, we recommend you should take out a fixed-rate mortgage. The longer you settle for, the higher the rate becomes.

Which is the Cheapest Fixed Rate Mortgage?

If you are looking at finding the cheapest possible fixed-rate mortgage, then a two year fixed rate might be right for you. The payments will be low, but on the downside, two years comes around quickly, and it won’t be long before you have to look for a new deal again.  However, if interest rates go up in the meantime, then you may be faced with higher payments at renewal.

Should I fix my mortgage for five years?

If you don’t like the hassle of applying for new mortgages all the time, then a five year fixed rate would be better. Your payments would then be stable for a much more extended period. Five year fixed rates are more expensive than two or 3-year deals. A potential negative would be if interest rates fell during the fixed-rate period, then you would not benefit from a reduction in monthly payments.

Should I take out a Long Term Fixed Rate Mortgage?

While two years and five year fixed rates are the most popular, and you can settle for longer. Some Lenders offer seven or 10-year fixed-rate mortgages.

These long term fixed-rate mortgages have never been massively popular in the UK. Perhaps we feel that much can change in a decade and we don’t want to get hooked into a deal we can’t get escape.

If your circumstances change then, it can cost you money to repay your mortgage early. In any case, an Early Repayment Charge (ERC). The ERC gets calculated as a percentage of what you owe. For example, if you settle a £100,000 mortgage early and the early repayment charge is 2%, then you would incur a £2,000 penalty for breaking the contract.

It’s usually a mistake for the customer to think about “beating the system” or predicting what will happen to interest rates in the future. When selecting how long to fix your mortgage for, focus on your situation. For example:

  • Are you likely to move house again soon?
  • Will you be looking to pay a lump sum off the mortgage?
  • Are you looking to carry out home improvements that might give you a lower loan to value at the point of remortgage?

We strongly recommend you also avoid chasing “headline” deals. The lowest rates often come with high arrangement fees which some customers are keen to avoid.

Can I Port My Mortgage To A New Property In Sunderland?

If you are a homeowner with a mortgage from a high street lender, you’ll find that you will probably have the option to port your mortgage if necessary. Porting your mortgage occurs when you are looking to move home part way through a fixed rate deal.

Rather than paying the early repayment charge (ERC), the lender may actually be willing to let you pick up what is left of your current mortgage and move it onto a new property. This of course will depend on the value of where you’re looking to move and is subject to the lender’s discretion.

If the property is worth more than what you will be paying back, you may be able to take out a Second Charge mortgage. You can learn more about those on our YouTube channel MoneymanTV with our video: What is a Second Charge Mortgage?

Mortgage Porting FAQs

What advantages are there to porting a mortgage?

Portable mortgages work out really well for homeowners who are only part way into their fixed-rate mortgage term but already want to move home. Normally to leave this mortgage early, you would be penalised with an Early Repayment Charge.

If instead you can find another property of similar value and inquire with your lender, there is a good chance they’ll agree to let you port your mortgage to that property. This will mean you avoid the ERC.

Are all mortgages portable?

You’ll find that there are a lot of mortgages out there that customers are able to port, though it’s important to note that this won’t apply to all of them.

There are some specialist lenders that don’t allow their customers to do this, for example. By contacting your mortgage lender, you’ll be able to determine whether or not this is an option for you.

Should I port my mortgage?

Though it may be a possible option for some homeowners, in a lot of cases we find that they instead choose to not do this. Some may ride out their term and look to remortgage at the end to release equity for making improvements to their home.

In other cases, homeowners may want to do this but are restricted from doing so, due to being unable to afford to borrow an additional amount if required. Any further advance (second charge) will be at a different rate to the current mortgage deal that you have.

Depending on the rates on offer from your lender for this, it may be more financially viable for you to take the Early Repayment Charge and cut your mortgage short, rather than staying put.

What is a Sub-Account?

A sub-account on your mortgage will be created when you look to port your mortgage, with the additional funds being taken out on a different deal than your current mortgage is on.

It’s important to remember that although you have a only one mortgage and one direct debit in your name, each will have different rates applied to them.

As time goes on, having a sub-account can be a little problematic. This is because eventually you will reach a point where these products will overlap one another.

In order to get these aligned once again, one of your sub-accounts may have to fall onto the lender’s standard variable rate for some time.

Speak to a Mortgage Broker in Sunderland

For more information, please feel free to get in touch and speak with a dedicated mortgage advisor in Sunderland. We would love to get started on the next step in your mortgage journey.

Whether you are moving house in Sunderland, need help with a buy to let mortgage or are self-employed and require mortgage advice, we’d love to help you.

We have availability every day of the week, so book yourself a free appointment for when best suits you and we’ll see how we can help.

Top 5 Mortgage Hurdles in Sunderland

Problems Faced When Obtaining a Mortgage in Sunderland 

For First Time Buyers in Sunderland hurdles in mortgage, acquisition is something often faced by lots of customers, and they are not impossible to deal with either. Here is a list of 5 common problems people may encounter when looking to obtain a mortgage in Sunderland. 

Childcare Fees  

Childcare fees are not a reason per se for a mortgage to be turned down, rather they tend to reduce the amount a mortgage can offer.

One thing that needs to be noticed is that when parents or guardians return to work and pay for childcare, they have to monthly dedicate hundreds of pounds. Lenders take them as a liability similar to car loans.

If childcare fees are not to be paid, and still the income is low, the guardian or parents might still not get as much amount as other applicants. However, this benefits by being considered as tax credits.

If you seek mortgage advice in Sunderland, you will come to know that such lenders exist who don’t count childcare fees as outgoing funds, resulting in higher chances of mortgage acquisition. 

Divorce and Separation 

If things don’t work out in a relationship and you decide to go for separation or divorce, things tend to get tough when it comes to your monthly mortgage repayments.

Normally we get these three questions when people seek mortgage advice in Sunderland: 

  • Can I pay my mortgage without my ex’s involvement?
  • Can my ex pay the mortgage without my involvement?
  • Is it possible to have 2 mortgages? 

The answer to all of the above can be yes, but you will need expert Mortgage Advice in Sunderland. If you end up receiving maintenance, this can sometimes get used as part of the assessable income for a mortgage.

Benefit Income

You would be happy to know that almost all types of benefit incomes are considered as incomes and include pension or eligibility for pension, disability benefits, working tax credits, and child tax credit.

To take advantage of such opportunities, all you need is to seek out mortgage advice in Sunderland and you will be good to go. 

Starting a New Job – Can I get a Mortgage?

This one comes up a lot, but it is usually easy enough. Some Lenders need you to have been in work continuously for a certain period, but others don’t. You can even get a mortgage if this is your first job. If you are due to start a new career soon, then you may be able to get a mortgage if you have a signed contract and job offer letter.

Gaps in employment can be a problem with some Lenders. Probationary periods tend to be ok, in any case.

Proving your Deposit

Anit-Money Laundering precautions are pretty strict these days. All Lenders will need you to evidence your deposit, and you will get asked to prove where the money came from. Your Solicitor and the Estate Agent you are buying from may ask you for this too.

Cash is a big no-no. Any significant cash deposits into your Bank will question, and your application may get rejected.

It is possible, in fact, regular, for some or all of the deposit to come from a gift. The person gifting you the money will need to confirm in writing that it is a gift, not a loan.

All the content provided above is for reference purposes only, and does not constitute mortgage advice. 

Mortgage Advice in Sunderland

Debt Consolidation Remortgage Advice in Sunderland

Mortgage Advice in Sunderland

Unsecured credit and consolidation are not things to be taken lightly. We recommend you contact us and speak to one of our experienced Mortgage Advisor in Sunderland and review all possible options before finalising the process.

Is consolidating debt a bad thing?

When looking at the bigger picture, you will usually pay back more by integrating unused credit into your mortgage. Although your monthly payments will most likely be lower, and this is the main aim for most people.

It is essential to realize that you are also taking the risk of securing debt against your home. If payments are not kept up to speed. Then you’re putting yourself in the situation where your home will be repossessed. It is not the same scenario as just missing payments on loans or credit cards.

Why do people run up large credit card bills?

For many years, obtaining credit has sometimes been too easy as it is much faster for people to borrow money than save up. But it is a tough situation because while some people have invested Home Improvements in Sunderland. Which will be raising the value of their property, the debt which they have obtained will be still accumulating interest. Not everyone can qualify for zero percent credit card transfers.

What are the other options?

Before consolidating credit it is wise to do a budget planner to help you see where your money is going each month. There may be some luxuries that can benefit you in the long run. If you put aside for a while, such as takeaways and expensive coffees.

A personal loan could be an answer to consolidate your credit. A loan will at least have a set end date unlike credit cards, and due to a personal loan typically being taken out over a shorter period would mean that you pay back less interest.

Family members would also be worth speaking to as an alternative option. This can be an embarrassing predicament for someone to reach out and ask for help with financial issues but is often one of the more comfortable options.

If these options have already been utilized that a debt consolidation mortgage may be the right way to go. With it being a way for you to reduce your monthly payments if you are struggling to save.

Buying a Property with a Friend or Partner in Sunderland

Mortgage Advice in Sunderland

Property inflation has overtaken wage increases over the years. For most people being able to afford a suitable property. They will need to buy with someone else because there are then two incomes for Lenders to take account of when calculating your maximum mortgage amount. Having someone to share costs with. You need to consider some risks to consider, and here are some situations we have come across in the past.

How many people can jointly own a property?

From our experience, some Lenders allow a maximum of four people jointly to co-own a property. In the event of one borrower stopping their contributions to mortgage payments. Any joint owners have a legal right to stay in their home unless a court rule otherwise.

Therefore, you need to be very choosy about whom you want to purchase a property. If you are going to increase the mortgage at a later date, all borrowers need to consent. It’s crucial that you make long term plans about what might happen down the line should you end up wanting different things.

Joint Tenancy or Tenancy in Common?

Generally, married couples or those in civil partnerships opt for Joint tenancy. If either applicant were to perish, then the property passes to the other owner. If you have taken out Mortgage Life Insurance in Sunderland, then the mortgage would be repaid at that point also. You will need the consent of the other applicant if you want to sell or Remortgage in Sunderland, in the future.

Tenants in common sometimes get chosen by relatives or friends that buy together. You will still jointly own the property, but you don’t have to do so in equal shares. The method works well if one party is making a more significant financial input than the other. If you are a tenant in common, you can choose to act individually. For example, you can sell or give away your share of the property to someone else.

What happens if one party stops making mortgage payments?

All mortgage borrowers are jointly and severally liable for mortgage payments. If one of the parties stops paying, then the other/others will have to make up the shortfall to prevent the mortgage from falling into arrears. Arrears on a mortgage may stop you from getting another mortgage in the future. Think of it like this: you don’t own 50% of a property, you own 100% of it jointly.

How do I remove my ex-partner from my mortgage?

Removing someone from a mortgage can be very difficult. Lenders will need to be confident that you can afford the mortgage payments on your own before they permit this. No one who buys a home with a partner does so with the intention of things not working out. A mortgage is a massive financial commitment, though, and making changes to it later is not always easy.

Even if you can demonstrate that you have been able to maintain mortgage payments since your ex moved out does not guarantee that a Lender will agree to your request to put the mortgage into your sole name. 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 if the Lender declines the request you. You should contact a Mortgage Advisor in Sunderland to see if other Lenders would agree to your request to transfer the mortgage into your name. It can be worth talking to family members to see if they can help you out.

They can do so by replacing your ex on your mortgage or by gifting you a lump sum to reduce the amount owed.

How do I remove my name from my ex-partner’s mortgage?

If you and your partner split up and you leave the family home, then you remain responsible for mortgage payments with them. A typical case even if you agree 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 score. If you get connected to an old mortgage, then the payments for that will be considered if you subsequently want to 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 anyone is a risk, so you need to go into it with your eyes open.

It’s always better to agree on what would happen to the house should things not work while you are all still getting along well! & Sunderlandmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
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