Mortgage Light, Author at Mortgage Light

Can I Remortgage With Credit Card Debt?

June 3, 2024 By Mortgage Light Leave a Comment

It is possible to remortgage with credit card debt, as long as you are generally able to prove that you can afford your monthly repayments. Assuming you are able to do this, you may still face some restrictions on the amount lenders are willing to lend to you. You could also find that any mortgages offered will be subject to a slightly higher interest rate than you might otherwise have been given.

In this article, we’ll look at how credit card debt and other debts can affect the remortgaging process and what to do if you are struggling to find a lender who will accept your remortgage application.

How does credit card debt affect a remortgage?

This all depends on the level of your credit card or other debts. Of course, the larger the debt, the larger the warning signs are likely to be to a lender. Lenders will want to understand the nature of any debts you may have and they may ask questions such as:

How long have your debts been outstanding?
Are you struggling to repay them?
Are your debts properly structured?
Has the overall level of debt been increasing?
Have you met all the repayments on time?
If your debt has occurred recently, what was the reason for this?

The answers to these questions could potentially present some ‘red flags’ to a lender. This might cause them to view your application as being a higher risk and therefore they may decline your remortgage application outright. This could then adversely impact your credit score or it may restrict what they are willing to offer you.

If you are meeting your regular payments on time and managing to reduce the outstanding credit, then a lender may be willing to look upon your application more sympathetically. Remember, all lenders view applications on a case-by-case basis. Some lenders will have very strict policies on personal debt whereas other lenders are more willing to consider lending to applicants with higher levels of credit card borrowing. You might find that, because you have credit card or other debts, that you may be a little more limited in choice. The positive news is, because the mortgage market is vast, there are deals out there for all kinds of borrowers, including bad credit mortgages.

It’s a good idea to enlist the help of a mortgage advisor and broker, such as us here at Mortgage Light. We know which lenders to approach in order to have the best chance of getting approval on the first attempt. We have access to the whole mortgage market, including lenders that only we can access as mortgage professionals.

Find out more – ‘How does bad credit affect a mortgage?’

How much credit card debt is too much?

There is no cut and dry answer to the question of how much credit card debt is too much. It depends on your personal circumstances and your debt to income ratio. For instance, you might have £3,000 of recent credit card debt outstanding. However, maybe you are due a bonus from work or maybe you’re about to sell your car which will raise funds to repay or substantially reduce this. A lender may then accept this and consider you a viable applicant for a remortgage.

One thing to consider is if, on the other hand, you have had this level of outstanding credit card debt for some time and there is no evidence of you being able to reduce it, then this could be a sign of poor financial management and therefore a warning sign to a lender

Some lenders may automatically reject your application in these circumstances, because of the level of your credit card debt. Each lender will have its own assessment criteria. It’s important to understand which lenders are likely to be more sympathetic to your situation, and an experienced mortgage broker will know the right lenders to approach.

I have never missed a credit card payment but I’ve maxed out my available credit

It’s safe to assume that if you have maxed out your credit card/s and you have used up the majority of your available credit, lenders are less likely to look upon your application favourably. But even if you have never missed a credit card payment, high levels of credit card debt can be an indication that you are reliant on credit cards. Even if a lender is willing to accept a remortgage application from you, they will probably have a number of questions for you to try and fully understand the story behind your credit card and general borrowing history.

Find out more – ‘What happens if a mortgage application gets rejected?’

I have missed some credit card payments – will this affect my remortgage?

If you have missed any credit card payments, this is likely to be a red flag to any mortgage lender. They may think carefully before accepting or processing an application from you. If you have a missed payment that has been outstanding for more than one month (therefore meaning you owe more than any current month’s repayment), you will be in arrears. This is considered a more major red flag.

Late payments are generally considered less severe and as long as the payment is caught up within the same month that it is due, most lenders won’t report it as a missed payment to the credit agencies. If not though, reported late and missed payments will inevitably lower your credit score. And a low credit score can make getting a mortgage a little more of a challenge.

There are, however, a number of specialist lenders who are willing to lend to applicants with lower credit scores. The remortgage market needn’t be closed to you if you have been impacted in this way.

Find out more – ‘Can I remortgage with bad credit?’

Can I remortgage to pay off credit card debt?

You may be considering a remortgage as a way to pay off some or all of your credit card or other debts. You could potentially do this by remortgaging. Remortgaging could allow you to release some cash from the equity that has built up in your home since you purchased it. You could use this to pay off your outstanding personal credit.

This would effectively consolidate your personal borrowing with your mortgage into a single loan secured against your house. By doing this, you are transferring unsecured short term debt into secured long term borrowing. This will generally reduce the interest burden on the short term debt and also your monthly repayment costs, spreading the debt over a much longer term.

It’s important to note that the overall cost of this might ultimately be higher in the long run. The reason for this is you will be repaying your borrowing over a much longer period. However, it should provide some relief to your monthly budget. A good financial advisor, such as us here at Mortgage Light, will be able to guide you on all your options if this is something you are considering.

Let’s say for example that you currently own a property worth £300,000. You have a £200,000 mortgage outstanding. You want to release £15,000 of equity from your home in order to pay off your credit card debts (or any other debts). You’d therefore need to take out a new mortgage for £215,000. This will refinance your existing mortgage and provide the additional cash to pay off your credit cards.

This is called debt consolidation. It’s important to note that this simply moves your debt onto your mortgage, rather than actually paying it off. Consolidating your loans doesn’t reduce the amount you owe. It instead restructures it in what might be an efficient way of borrowing.

Find out more – ‘Can you remortgage to pay off debt?’

What should I do if I can’t get a remortgage accepted because of credit card debt?

If you’re struggling to know where to turn when remortgaging with credit card debt? Speak to an experienced mortgage advisor and broker. They should be able to provide guidance and help you to secure the deal you need. At Mortgage Light, we have helped many people just like you achieve what they need from their remortgage – even with credit card debt or adverse credit history.

Our experts know the mortgage market like the back of their hands, including which lenders are more accepting of credit card debt and other financial issues such as low credit scores. We will always do our best to find a suitable lender that will accept your remortgage application.

Let’s start your remortgaging process together. Get in touch with us via our website, email remortgage@mortgagelight.co.uk or call 01908 597655 today.

How to Get a Mortgage Without Payslips

June 3, 2024 By Mortgage Light Leave a Comment

[Read more…]

What Would Happen To My Mortgage If I Were To Lose My Job?

May 30, 2024 By Mortgage Light Leave a Comment

If you are in employment and have a mortgage, it’s probably safe to say that you rely on your monthly wage to meet your mortgage repayments and keep the roof over your head. So, what happens to your mortgage if you lose your job and therefore your income?

Losing your job can be a real shock that can turn your finances upside down. If you do find yourself in this situation and you are worried about how you can continue to pay your mortgage, there are temporary solutions out there to help you get by. [Read more…]

How does Shared Ownership Work?

February 12, 2024 By Mortgage Light Leave a Comment

The Shared Ownership scheme is sometimes referred to as ‘part rent, part buy’ and is a very popular way for those on low incomes or with low deposits to get onto the housing ladder. Shared Ownership is a cross between homeownership and renting – but how does it actually work?

The Shared Ownership scheme explained

The Shared Ownership scheme is an initiative in England that was set up in the 1970s to help people wanting to get on to the property ladder. Shared Ownership allows you to purchase a share of a property, meaning you’ll only need a 5%+ deposit or in some cases, no deposit at all. You have a mortgage for the percentage of the property that you own, and you pay rent to the Housing Association on the rest. You can purchase between 10-50% of a property, with a 10% share being the most affordable option.

Once you have owned your share for a fixed period of time, you can ‘staircase’ out and buy additional shares. The more shares you own, the less you will pay in rent. Eventually, you will be able to staircase to 100% ownership. We’ll explain more on how staircasing works later in this blog.

The Shared Ownership process

If you decide that you would like to make use of the Shared Ownership scheme, the first step is to work out if you are eligible. The main requirement is that you do not currently own a property, but you also must be over the age of 18 with a household income of less than £80,000 (or £90,000 in London). You also need to fit the affordability calculator issued by your local Housing Association.

If you meet the criteria, you can then begin to look for a Shared Ownership property. You can do this by contacting your local Housing Association, or by searching on Share to Buy. Once you have found a property that you like, it’s time to crunch the numbers and work out your budget. That’s something Mortgage Light can help you with.

Let’s say for example that you find a Shared Ownership property for £58,500. The full market value of the property is £195,000. You want to buy 30% of shares of the property, which means that you will need to put down a deposit of £2,925 (5% of £58,500), and you will pay £370 per month in rent. You’ll need a mortgage for your 30% share. You’ll need £2000 to cover your solicitor’s fees and £349 for using Mortgage Light’s services for processing your mortgage application. It’s important to note that not all lenders will fund Shared Ownership properties and that’s where Mortgage Light expert brokers can help. In total, the upfront amount you’ll need to buy shares in the property is £5,274.

How does staircasing work?

Once you’ve lived in your Shared Ownership home for a certain period of time (this depends on the terms of your lease), you can buy further shares and begin to ‘staircase’ out. This allows you to own a greater proportion of your home. The more of the home that you own, the less you will pay in rent. If you staircase to 100% ownership, you will become an outright owner and will no longer need to pay rent.

When you buy further shares, you will need to have your property valued. This is because the price of the shares is based on the value of your property. The cost of the additional share will be more than your first share if the value of your property has gone up, or less than your first share if the value of your property has gone down. Using the previous example, let’s say that your property is valued at £200,000 and so has increased in value from £195,000. If you wanted to buy an additional 25% share, the extra share would cost you 25% of the valuation price (£200,000), so £50,000. It’s also worth noting that when you staircase, there will be a need for some legal work, so you’ll incur some solicitor’s fees. There may also be some mortgage lender fees.

There’s no obligation to staircase out at all, however, remember that the rent you pay on the share of the property that you own does not go towards reducing your mortgage or increasing your share of ownership.

Are there any limitations to Shared Ownership?

As a shared owner you are likely to face a few more restrictions and limitations than you would in traditional homeownership because aswell as being a homeowner, you are also a tenant. This means that you can still be evicted and lose a portion of your home if you fail to keep within your lease terms, for instance, failing to pay rent or displaying nuisance behaviour that affects your neighbours.

You will be able to paint walls and decorate your home exactly how you want to, however you may need to seek permission on any major home improvements, such as changing the property’s structure or footprint. You will also be responsible for 100% of the maintenance costs. This means that even though you don’t own 100% of the property, you will need to cover 100% of the usual costs associated with homeownership, such as service charges, ground rents, and property repairs.

If you decide to sell the property on, your Housing Association has the right to be first in line to find a buyer for your home. This is known as the ‘nomination period’ which usually lasts from 30 days to two months. After this period, you can appoint an estate agent and handle it yourself.

Benefits of the Shared Ownership scheme

The Shared Ownership scheme is designed to make homeownership accessible. If you are on a lower income and struggling to save that 10% deposit, Shared Ownership offers the opportunity of getting on the property ladder with a lower deposit and a smaller mortgage.

If you’re currently renting, you may actually save money per month on the Shared Ownership scheme. Renting can be quite expensive, but paying rent and your mortgage combined in most instances can work out cost-neutral or even cheaper.

You also may be able to purchase a bigger house or live in a more desirable area than you would have been able to afford otherwise. When searching for your Shared Ownership property, you’ll find that many can be found in private developments, as a certain number of Shared Ownership homes will often be required as a part of the planning permission. This means that a large number of Shared Ownership properties are new builds.

If you need any more information about how Shared Ownership works, get in touch with us here at Mortgage Light. Our Shared Ownership specialists are on hand and ready to help you with any questions, and to help you along your Shared Ownership journey.

We have been dealing with Shared Ownership mortgages since we began trading and have helped many people to own 100% of their property. Contact us today using our online enquiry form, on 01908 597655 or by using the live chat in the bottom right-hand corner of your mobile or desktop screen.

If you’re ready to book an appointment with one of our mortgage brokers now, you can choose a date and time that’s convenient for you by using our live booking system.

Celebrating 13 Years of Mortgage Light

February 1, 2024 By Mortgage Light Leave a Comment

13 years of helping clients buy new build properties

2024 marks 13 years since the Mortgage Light vision was realised by founder and director, Siobhan Holbrook.

Since its humble beginnings in 2011, the company has grown significantly from a 1-person business to a company that employs around 25 people. Siobhan’s business began in a small office in a local estate agency, and she quickly realised that her ability to understand the challenges that home-buyers faced, plus her experience from working in sales, enabled her to learn how to overcome objectives and the importance of relationships. She used these skills to cultivate connections with banks and building societies to get mortgage cases approved outside of policy, whilst helping her clients to understand the properties that suited their needs.

More than a decade later and the company has become a regionally recognised mortgage brokerage, whose reputation is trusted by lenders, developers, housing associations and returning customers alike. In fact, Mortgage Light has attracted over 1,153 4.9-star customer reviews, with 80% of clients returning for a remortgage.

Here, Siobhan answers some key questions on how Mortgage Light started and how the company helps people wanting to buy a new build property.

What sparked your interest in this industry and led you to set up Mortgage Light?

“Even in my earlier career as an estate agent, I really enjoyed helping people find their new home, whether being a family or moving out of home for the first time. At the time I thought the idea of home ownership was for the rich – or those really good at Monopoly! But building relationships with people and builders showed me how anybody can find a home. The only bit I needed to learn was mortgages, which I felt offered me more of a career; and this is the reason I took the plunge at 24.

I always presumed mortgages were complicated, however I realised it was just a case of understanding that it was another product tailored to the customer’s needs. In estate agency I enjoyed finding ‘the home’ for my customers. This feeling of satisfaction continued when I started in the mortgage world because I was helping people to actually buy the home. My sister has always said to me that she’s never known someone enjoy their job so much, but for me, working with all parties within the house buying process is an addiction for creating happiness for those looking to move!

I have always been passionate about home ownership and ensuring that everyone understands how to buy a home, no matter what their circumstances. The name Mortgage Light was created to reflect my company’s ethos; that we explain all mortgage terminology clearly and without complicated jargon, ultimately ensuring that the ability to buy a home is accessible for anyone and everyone.”

What would you say sets your company apart from your competitors?

“When I first started my business, I was acutely aware of the challenges small business owners had, compounded with imposter syndrome; I didn’t even know if Mortgage Light was going to be successful. However, I’ve always had a clear vision of the type of service I wanted to offer people. In the two years running up to becoming a mortgage adviser I developed the skills for structuring deals. This meant when clients came to me, not only was I able to look at a vast range of mortgage product offerings, I was also able to use a builder’s incentives to help them get a home which they may not have felt was possible. My experience allowed me to build confidence with my customer in buying off plan, which can be a daunting process. But by walking around plots with my client and understanding the builders’ specification I was able to help them to visualise their home.

Banks and building societies now come to Mortgage Light to ask us what is needed in the marketplace as currently they are changing criteria to make sure their sales targets are met. We’ve been instrumental in providing feedback on the type of mortgage products our clients need. Furthermore, because of our ability to get to know and understand our clients, we have been successful in placing cases outside of policy due to our reputation.”

What are the latest challenges that you hear customers experiencing and how do you think mortgage advisors can tackle them?

“At the moment it is evident clients are struggling with affordability. At Mortgage Light we take time to bespoke individual advice to our client. This could even mean recommending they look for another job if they’ve been in the same one for a while. This may seem a little radical, but in actual fact when we compare them against other people in the same position, we are able to highlight to them that others are getting paid more. We also give our clients confidence in approaching their employer to ask for pay rises – both these things tackle affordability issues and our advice is always appreciated by the client! Other solutions can be found within mortgage products which use family members to assist with affordability or to overcome issues around deposit. We also have a lender that will accept income from someone residing in the applicant’s home and paying ‘keep’.

A good mortgage advisor listens to the client and offers them several solutions and then guides them on the most viable option for them.”

When it comes to buying a new build, what advice can you offer to first time buyers looking for their first mortgage?

“Buying a new build is an extremely exciting process and it’s easy to get carried away! I believe it’s important when purchasing from a builder that you take time to understand the specification that you are getting from the builder. For instance, some back gardens don’t have turf as standard so it’s always best to take a step back and check if you’re not sure about something. In conjunction with this, builders have the ability to offer incentives. By structuring these, it could mean cheaper interest rates and subsequently lower monthly payments. This, coupled with lower running costs, means new build purchases are an extremely attractive proposition for buyers. I advise people to just take their time – not only to understand the home they’re buying, but also the site plan and its surroundings, and always take a moment to consider the deal which best suit your needs.”

How can mortgage advisors ensure that they protect their customers once they have secured a mortgage?

“It’s all about being transparent and giving clear and knowledgeable advice. For instance, once we’ve secured a mortgage offer for a client we will always talk to them about the benefits of protecting their investment, so life insurance, critical illness and income protection. But being a broker isn’t just about offering financial services; we support each home-buyer through the whole process, advising on things like how to keep their credit file in the best possible shape. We build strong bonds and our retention rate is really good – in fact 80% of our clients remortgage with us!”

Why would you recommend that buyers use a mortgage broker as opposed to a bank?

“Mortgage brokers have an understanding not only of the mortgage market but also the house buying process. They often have their finger on the pulse on what’s happening in the housing market and even if there’s an opportunity to negotiate. A competent broker is a valuable asset; they have a vested interest in looking after you properly and they should be there for all your mortgage needs for now and in the future. A mortgage advisor will tailor mortgage advice to suit your current situation and guide you for situations in the future, whereas a bank will treat you like a transaction and tell you about mortgage products from a screen.”

What do you think are the keys to being a successful mortgage broker?

“It’s always been important to me to ensure each and every client gets the best possible mortgage product with minimal stress and delay. I’ve trained all the brokers that work at my firm to overcome the word ‘no’ and help find a solution for customers. A client is never just another number. I feel strongly about getting to know each and every one; their motivations and their insecurities. My team take a genuine interest in getting to know each person and ensure the mortgage advice is tailored to their needs.”

Any final comments/advice to those looking to secure a mortgage to buy a new build property?

“It’s so important when buying a home that you enjoy the journey and don’t rush. When you find the new build house you’d like to buy, the feeling is amazing! A builder is a business and will want to sell to you, therefore the risk of the chain falling apart is small. In conjunction with this, if you have the opportunity of buying early enough, you get to bespoke the house to suit your taste with things like wall tiles and kitchen unit colours. You even get a home demo on how to use your house, which is especially useful for a first-time buyer as you don’t always know where the electric or gas metre is. The purchase price may be slightly more expensive than the second-hand market, however it’s worth considering that there are things that you won’t need to spend money on. For example, you won’t need to decorate and often you can structure a deal where appliances are already installed. The other big advantage of buying new is the running cost which tends to be lower, so that’s always going to be a bonus. Home buying can be a stressful process but when buying new it’s made a little bit easier. Many people find that once they’ve bought a new-build home, they’ll never go back to buying second-hand!”

For free mortgage advice, give our friendly team a call on 01908 597655.

Introducing our New Commercial Division

November 21, 2023 By Mortgage Light Leave a Comment

At Mortgage Light, we’ve been arranging bespoke mortgages and assurance services for our clients for over a decade. We’ve built our reputation on clear and uncomplicated mortgage advice, which is reflected in over one thousand 4.9-star reviews. This month we’re delighted to announce the next step in our company’s expansion by officially launching our Commercial Division.

A Plethora of Finance Options

Our clients will know us for assisting with the purchase of their own home or investment properties, but many won’t be aware that we also help customers with other areas of finance too. Having seen an increase in demand for commercial finance we’re excited to be able to offer a whole plethora of finance options to service a growing commercial property market.

The new division is headed up by Alex Stoyles, Head of Commercial Lending and High Net Worth. Alex has been with us here at Mortgage Light for the best part of a decade. With Alex’s experience in financial services and the property industry, coupled with our established relationship with Lenders, we are well placed to assist clients with all manner of financing options, such as helping businesses to buy new offices or to raise funds through business loans in order to assist with growth.

Since our Director, Siobhan Holbrook, started the business over 12 years ago we’ve become a regionally recognised mortgage brokerage whose reputation is trusted by lenders, developers and home-buyers alike. Mortgage Light is recognised for providing a great service and for offering bespoke products that are not always accessible elsewhere. Our new Commercial Division will sit alongside our established mortgage services for home-buyers.

Whether you need assistance with your buy to let commercial property mortgage or you require a bridging loan, we can help.

Our Commercial Services

We can assist with a vast array of finance services including:

Financing the purchase of a business or property
Bridging Finance
Development Finance
Refurbishment
Invoice Financing
Asset Finance
Complex & Commercial Buy to Lets
2nd Charge Loan
Business Insurance (Business Loan Protection, Relevant Life Insurance, Shareholder Protection

For more information on taking the next steps for your business or property project, contact Alex at Mortgage Light on 01908 597655 or visit the commercial pages on our website.

Did you know there are ways to save money on your mortgage payments?

January 31, 2023 By Mortgage Light Leave a Comment

If you’re worried about how you’re going to afford your mortgage, there are things you can do now to make your repayments more affordable. Take a look at our top 5 tips:

1 Swap your variable rate for a better rate

If your mortgage has now gone on to a variable rate, you may be worried about being able to afford the higher payments. There are things you can do though – and did you know you can swap on to a better rate without producing any other paperwork?

2 Made overpayments? You could have a payment holiday

If you’ve made overpayments, your lender may allow you to have a payment holiday or maybe reduce down the mortgage payments to make them more affordable.

3 Look into extending your mortgage term

You can speak to the bank about your current mortgage term being extended, lowering the monthly mortgage payments. Your lender can go to a 30, 35 or 40 year term depending on the age of the applicant.

4 Shop around to get a better deal

If your mortgage product is due to be renewed you might get a better deal by looking around at different lenders, so that could be another option to save money!

5 See if you can remortgage

If you’ve lived in your house for a period of time, you may be able to get a better deal because the value of your property may have gone up.

Always speak to your lender

Remember, rule number 1: try not to worry and always speak to your existing lender or broker about your options. Other deals may be available to you that could be cheaper than what you’re currently paying. And if you opt for a product transfer, it may surprise you to know that this will probably be done for you free of charge – this is because it’s just a swap of an interest rate, not a new mortgage application.

Give yourself peace of mind by taking control of your mortgage. At Mortgage Light we’re always here to help. Our advice is free so why not give us a call on 01908 597655 to talk through your options?

Why using a mortgage broker & adviser is vital in 2023

December 13, 2022 By Mortgage Light Leave a Comment

The cost of living crisis may make buying, selling or remortgaging your home seem difficult for the foreseeable future – that’s where a mortgage adviser comes in. But how exactly? Let us explain. It’s fair to say that 2022 has been a pretty rocky year in many ways. Whilst we more or less waved goodbye to the pandemic, we were still experiencing the fallout from its impact on the world, alongside the effects of the Ukraine war and the cost of living crisis.

The economy and the mortgage market in particular have been far from stable in 2022. We can expect this to continue into 2023 as interest rates are expected to stay high and house prices begin to drop.

With the mortgage market still being a major talking point and a lot of change still on the horizon, it’s never been more important to work with a mortgage broker and adviser when getting a mortgage or making any changes to your mortgage next year.

The mortgage market is unsettled

At the moment the mortgage market is incredibly unsettled. Over the last few months, lenders have been continuously changing rates as they struggle to deal with the business demands that they are attracting by sourcing at the top of the table. Lenders have also been causing real delays in reviewing documents, leaving buyers with low confidence and deciding to pull out of deals.

However, we do expect to see the mortgage market slow in 2023 due to people’s strained financial situations. People who would have otherwise been looking to get onto the property ladder will choose to observe or maybe postpone this step until the cost of living crisis eases.

We advise anyone in this position to chat with a mortgage adviser ahead of time to work out when the right time to buy could be, and what they can be doing in the meantime to put themselves in the best possible position.

Navigating a lender’s criteria

Arguably the most valuable thing that a mortgage broker and adviser can help with in 2023 is navigating a lender’s criteria and pinpointing the best lenders to approach for the best chance of success with a mortgage application. Our vast knowledge and experience in the market mean that we are able to match you with a lender who is likely to accept your mortgage application, meaning you don’t risk having a rejection on your record.

Let’s say for instance that you are always living in your overdraft. This can make your bank statements a little ‘messy’ which is likely to be a red flag for many lenders – so much so that they may choose not to lend to you. However, we know that some lenders out there don’t look at bank statements so these are the lenders that we would approach in these particular circumstances.

Get the best mortgage rate

In 2023 when finances will be tight for many, securing a good mortgage rate will have never been more important. If you are remortgaging next year, using a mortgage broker and adviser gives you the best possible chance of getting the best rate available to you.

At Mortgage Light, we work with lenders that will allow us to secure rates ahead of time. So for instance, if your remortgage is due in the next 6-9 months, we may secure the best mortgage rate we can find today but then our remortgage team will keep an eye on the rates to see if anything better crops up. If it does, then we will adjust and swap you to the better rate.

Managing payment shock

When people were originally sold their mortgages, lenders had already factored in whether they could still be able to afford their product if interest rates went up. However, moving into 2023 where interest rates have gone up and so has the cost of living, we’re finding that the extra buffer that lenders had factored into affordability actually may have depleted. Additionally, clients may have taken out additional financial commitments since getting their mortgage, such as a new car or sofa.

As a result, people are getting what is known as payment shock when they come to remortgaging. They are not expecting their payments to double and begin panicking about how they will cover this cost. In these instances, a mortgage broker and adviser is there to help assist and navigate these extra costs within the household. We don’t want our clients to ever feel helpless and like they are out of options. No matter what the situation, there may be routes we can go down and different mortgage products that we can explore to make the numbers work.

As advisers, we are striving to be ready for whatever happens next in the mortgage market so that we can help our clients make sensible decisions ahead of time. Without this foresight and the help of a qualified expert, someone in a position to get a mortgage or make changes to their mortgage could get themselves into a tricky situation – and now is not the time to be taking risks or making mistakes. We would always advise turning to a mortgage broker or adviser if you are planning on getting a mortgage or making changes to your mortgage in 2023.

Planning on making a mortgage change or taking out a mortgage in 2023? Get in touch with Mortgage Light today and let us guide you through the process.

Making criteria work

November 1, 2022 By Mortgage Light Leave a Comment

We’re specialists in ensuring our clients have the right mortgage for their circumstances. And even when faced with difficult or unusual circumstances, our friendly, experienced team pull out all the stops to do everything we can to get our clients their dream home.

Here is a selection of case studies which demonstrate where we’ve helped our clients in particularly difficult circumstances

[Read more…]

The most common mortgage questions answered

October 26, 2022 By Mortgage Light Leave a Comment

If you’re thinking of applying for a mortgage, there may be lots of questions you need answering. That’s why we’ve put together some golden nuggets of information which we hope you’ll find useful. You can also search our blogs here on our website or why not give us a call on 01908 597 655 to make an appointment with one of our friendly, experienced mortgage advisers?

Can I get a mortgage on maternity leave?

The answer is yes, you can. We work with lenders that are willing to give you a mortgage even if you’re on maternity leave.

Do I need 3 years’ books if I’m self-employed?

Not necessarily; we have lenders that will accept 1 year’s books. Did you also know that CIS workers are treated as self-employed by lenders?

What salary multiplier do lenders use?

Some of our lenders are now lending up to 5.5 times annual salaries – and in some cases, even 7 times. Give us a call on 01908 597 655 to see what you could borrow on a mortgage.

Can I get shared ownership with no deposit?

Yes – we have access to a lender that will allow you buy a shared ownership with 0% deposit. To find out more about shared ownership please read our blog.

Can I use a loan for my deposit?

You may be surprised to know that yes, you can with Santander. They’ll allow you to use money from a loan as your deposit, as long as it’s affordable for you and the loan itself is not from them.

Can I get a mortgage if I’m starting a new job?

Nationwide will loan against a forthcoming contract, as long as you are starting your new job within three months.

Will a lender look at my UK Visa status?

We have lenders that will loan no matter what your UK Visa status is. This is subject to the lender’s criteria so please give one of our friendly team a call if you’d like to know more.

If you have any mortgage-related questions, remember we’re just a phone call away. Just call 01908 597655 or leave a reply below and one of our friendly team members will be in touch.