Going through a divorce or legal separation can be a very difficult and stressful process, even if the separation is amicable between both parties. Untangling personal finances and separating joint assets fairly can be tricky and is often far from straightforward, particularly if you own significant assets such as the matrimonial home. This can be even more difficult and contentious where there are dependent children involved in the relationship. The decision on how to deal with the family home will, in most cases, have an impact on these children in many ways.

Unfortunately, 42% of marriages end in divorce, however one consequence of this statistic is that mortgage lenders are familiar with these types of situations. There are generally options available to you when it comes to refinancing an existing joint mortgage on the family home or getting a new mortgage facility to buy a new home.

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If you have a standard repayment mortgage, you may be able to reduce your monthly payments by extending your mortgage term. Your mortgage term is the length of time that you have agreed to fully repay your mortgage within. The term will have been agreed with you at the time you originally took your mortgage out, or last remortgaged it.

For a long time, a 25-year mortgage term was the standard go-to option. In recent years, however, as the size of the average mortgage has increased, there has been a move towards longer repayment terms in an attempt to make the higher borrowing needed to buy a property more affordable. In fact, data suggests that the number of first-time buyers opting for a mortgage term of between 35 and 40 years has doubled over the past decade.

So, how does extending your mortgage term affect your payments, and is it something you should consider?

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If you are looking to purchase a property, you may come across the terms ‘mortgage agreement in principle’, ‘mortgage in principle’, or ‘agreement in principle’. These three terms all refer to a statement from a lender saying that they agree ‘in principle’ to provide you with the borrowing you require subject to your information declared being verified, and the property you find being suitable to lend against.

A mortgage in principle is designed to give borrowers a strong indication of how much they may be able to borrow and some reassurance that they meet the lender’s basic lending criteria. As soon as you’ve made up your mind to start home-hunting and have an idea of what you may need to borrow, it’s generally a good idea to apply for a mortgage in principle.

This way you can start to search the property market with the confidence that you should be able to obtain the level of mortgage borrowing that you will eventually need to support a property purchase in the property price range you are looking at.

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When first-time buyers Ryan and Rebecca had their offer accepted on a three-bedroom house in Bedfordshire, they never expected that a bad experience with their first mortgage broker would put their entire purchase in jeopardy. [Read more…]

As a homeowner, it’s generally your mortgage that helps to keep the roof over your head. If, however, you are unfortunate enough to miss a repayment on your mortgage, your lender will initially report this to a credit reference agency as a ‘delinquency’.
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Whether you are a first-time buyer, or selling your current property and moving on to the next, there are a number of fees and charges that you will need to factor into your overall budget when considering the cost of purchasing a house. [Read more…]

A fixed-rate mortgage is a mortgage product where the fixed interest rate is guaranteed to stay the same for an agreed fixed period. It pretty much does what it says on the tin! Unlike with a variable rate style mortgage, you’ll know exactly how much you’ll need to repay each month during the agreed fixed period. [Read more…]

The basic requirements for getting a mortgage are generally a good credit history, a steady and reliable income, plus a cash deposit of a minimum 5% of the value of the property being purchased. Once you have those in order, lenders can assess your suitability as a mortgage borrower, taking into account your employment record, credit history, and general finances. [Read more…]

If you are planning on applying for a mortgage, then it is important to prepare for this as much as you can in advance of submitting an application. You should also start collecting the supporting documentation that will be needed as part of the lender’s assessment process, and in addition, speak to a mortgage advisor for advice and to help you with your budget. [Read more…]

The thought of paying more than the minimum amount you are obligated to pay each month on your mortgage may sound foolish at first. But, upon further investigation, overpaying your mortgage can sometimes make good financial sense. There are a few things to consider first before deciding if this is the right thing for you to do. [Read more…]