Mortgages
We offer personalised mortgage advice for clients in Coventry and surrounding areas. Our mortgage consultations are tailored to your current financial circumstances, and we explain the process clearly and honestly.
First Time Buyers
Buying your first home should be an exciting and empowering experience. But it can be daunting when you research mortgage lenders and it may leave you confused and frustrated by the jargon used by mortgage lenders. That’s where we come in. We break down the application process, explaining each step clearly in terms you can grasp.
10 Top Tips For First Time Buyers
1. Be Realistic
We strongly advise that you seek a Decision in Principle certificate, so that you know exactly how much you can offer when you finally find the right property.
Make sure you have fully considered the true costing of possible renovations if you choose to purchase an older property, as well furnishings and conversions.
Also, have you calculated additional fees such as stamp duty and conveyance? Talk to us today for advice on budgeting for your new home.
2. Bring An Experienced Home Buyer To View The Property
Bring along an existing home owner who has gone through the process before, to view your desired property. Chances are they have some invaluable advice from their own experience of purchasing a property and they will bring an impartial eye to your home; offering honest advice that may otherwise be missed.
3. Extra Costs
If you have never owned a property before, it is easy to underestimate and appreciate all of the potential hidden costs involved. Do your research, and make sure you can realistically budget for the cost of living on top of a mortgage – as well as any unexpected pitfalls that could pop up in the future.
4. Council Tax
Your estate agent will be able to tell you which tax band your desired property is in, as well as how much the charges levied by the local authority will be.
5. Good Local Schools
Many young families choose to move into the catchment area of their first-choice schools for their children. Apart from the obvious benefits, purchasing a school close to a highly rated school may increase the value of your home in the future, but could also impact the buying price.
6. Security Levels
Car and contents insurance premiums are likely to rise should move a property with secure parking, in a neighbourhood with low crime rates, to one with on-road parking with a statistically higher crime rate. It is definitely worth researching this before you move and possibly adjusting your insurance policies to make sure you do not pay more.
7. Public Transport Availability
Direct train lines and bus links are highly sort after by commuters, and research shows that houses in towns outside of cities by with good public transport links are highly valued. It is worth investigating the cost of using commuting via public transport if you decide to move further away from your place of employment.
8. Local Amenities
It is always worth taking into consideration how far the nearest supermarket will be from your property, as well as restaurants, pubs, or gyms.
9. Internet Availability
Love it or hate it, the internet has become an essential utility in the modern world. Unfortunately, a reliable and fast connection is not a guarantee when you move to a new property. It is worth researching the best providers in your desired area to get the best service possible.
10. Commutability
It is worth weighing up the cost of purchasing a home closer to your place of work against the cost of rising public transport. Commuting can be an expensive business if you decide to live further away from your place of employment.
Re-Mortgaging
Re-mortgaging means that you are switching to another mortgage deal, usually from a new lender.
You may want to re-mortgage your property for a number of different reasons, with the most common reason being to consolidate debt.
Most people re-mortgage their property after an introductory rate from their current lender has expired and they have found a better deal on the market. It is often possible to them switch to a new deal with their existing lender without occurring additional costs or admin fees.
However, you should always consider your financial situation currently and whether it will change in the future – adding short term debt to your home could increase the overall amount payable, and if you can not pay this, your home may be repossessed.
Things to consider When Re-Mortgaging
If you do decide to re-mortgage your property, you may to have to pay an early repayment charge to your existing mortgage lender.
Re-mortgaging may not always be the best option for you. Often, clients run into trouble by chasing tempting low APR deals without considering the following:
They May Charge Fees
It is possible that your new lender may charge you fees for property valuations and solicitor services, even if you have paid for these services with your existing lender. Although, if you shop around, you maybe able to find a lender offering these services for free to entice new customers.
Overall Repayment Period
Be wary that deals that mean you pay less monthly, these usually have a longer repayment period – meaning you will be tied into to a repayment plan for longer than your current mortgage..
Buy To Let
Choosing to become a private landlord can be very rewarding and fulfilling, but it can also be risky. There is a lot to take into consideration before purchasing a property to rent.
Compared to other investment opportunities, buying a property to let is slightly more complicated and time consuming. You are buying into a volatile market and there is never a guarantee of house prices rising after you have purchased one.
However, in the long run, letting out a property to tenants can be very lucrative.
The Financial Conduct Authority does not regulate some forms of buy to let lending.
Three Main Differences in Buy To Let Mortgages
There are 3 main differences in securing buy to let mortgages compared to regular mortgages:
1. Rent Potential
The income generated from renting a property is often factored into your application for a Rent to Buy Mortgage, in addition to your existing income.
2. Interest Rate
Buy to Let Mortgages have slightly higher interest rates than other mortgages.
3. Larger Deposit
Typically, a minimum of 20% or 25% of the property’s value is required for deposit.
Additional Costs to Keep in Mind
Ideally, you should be looking to receive a gross rent of 135% of the rental properties interest-only mortgage repayments. This is to cover your costs in case something goes wrong. These additional costs include:
Property upkeep
Maintenance costs for the property, and if it is an older property, any renovation or conversion needed.
Letting agent’s fees
Usually, this is around 10% of the monthly rent for finding and vetting tenants, with an additional cost of around 5% if you require a full management service.
Ground rent/service charges
Applicable to leasehold properties.
Legal insurance
To cover costs from evicting tenants in the event of non-payment. This is very important, as it can be very expensive and take a long time.
Insurance
Building insurance and contents insurance for the items provided as part of the rental agreement, such as white goods.
Furnishings
Purchasing furniture can be expensive. If the property is to be let furnished, make sure you are covered for this by your home insurance.
Gas/electrical appliances.
Costs of maintaining the appliances and ensuring they comply with any regulations such as safety tests. Make sure these are clearly listed in the property inventory.
Decorating costs
The property may require some decorating and renovating. Anything from painting to a new bathroom suite, may be required before it is suitable for letting.
Call Us And Get Some Advice On Buy To Let Mortgages
Our professional mortgage advisors in Coventry can offer you industry leading advice and support when it comes to searching for the right Buy to Let Mortgage for you. Feel free to book a consultation to go through all of your requirements and get you on track to becoming a landlord.
Moving Home
Moving home can be a stressful experience, and it often seems like there is never an appropriate time to put the rest of your life on hold and uproot. Like with most things in life, it is best to be prepared and have the right answers to the most pressing questions.
When it comes to applying for a mortgage for a new home, our mortgage advisors in Coventry have the right answers, and with years of consulting experience in the housing industry, we can help you every step of the way.
Moving Home Top Tips
Budget Planning
It is not secret that moving home is expensive business. It is important to be aware of all of the additional expenses that are involved, such as estate agent fees, stamp duty, mortgage advice fees, the cost of removal services, new furnishings…
Knowing beforehand, and budgeting for all of this with room for unexpected scenarios, is a great way to tackle any of lifes nasty little surprises.
Internet
Whether you work from home, have a house full of gamers or just want to relax at the end of the day with a movie, chances are you are these days you are streaming, surfing and downloading. The internet has become an essential utility, and it is worth researching the best deals a provider can offer in your desired area.
Schools
A good school is usually top of the list for a young family. Chances are, if you have kids, that you are planning to relocate within your chosen school’s catchment area.
Estate Agent
It is always well worth investigating estate agents in your chosen area, a good estate agent is worth every penny spent, but one that lets you down can lead to much unwanted stress and leave you feeling lost.
Traditional agent versus Online Agent
Both options have advantages and disadvantages, think about what's right for you…
Traditional Estates Agents
Typically charge more for their services, but are more involved in the selling process and have local offices for you and your buyers. Some clients prefer the brick and mortar, friendly face approach.
Online / Hybrid Agents
Online or hybrid agents (a combination of elements both online and traditional), tend to be a cheaper option in terms of fees. However, they generally have far less interaction with you and your buyer during the sales process. You also end up doing a lot of the leg work yourself.
Thinking Of Moving Home and Looking For Advice?
For some people, the paperwork and documentation involved in moving home can feel needlessly confusing. Here at Marc Catry, our mortgage advisors in Coventry offer professional mortgage and relocation advice that is explained clearly, and in terms you can understand. Call us today for a consultation.
Help To Buy
Help to Buy
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