Pros and Cons of Equity Release in Newcastle

Equity release in Newcastle has gained negative attention over the years, largely due to how it was handled in the past.

That being said, with the regulations brought in by the Financial Conduct Authority and the standards set by the Equity Release Council, the perception of equity release in Newcastle is finally improving and is now a popular option for many homeowners.

Despite this, there are still mixed opinions online, which may lead you to wonder about the pros and cons of equity release in Newcastle.

In this article, we will take a look at the advantages and disadvantages to help you determine whether it is the right choice for you.

What are the benefits of equity release in Newcastle?

Taking out an equity release plan offers many benefits for later life applicants, such as being able to access the equity that has accumulated within their property.

At Newcastlemoneyman, we offer equity release in Newcastle through a lifetime mortgage, which can be received as either a tax-free lump-sum or as a tax-free drawdown facility.

Monthly interest payments are required during the lifetime mortgage, but these can be flexible and deferred, allowing you to have more expendable cash.

That being said, making payments can result in more funds available for an inheritance when you pass away or move into long-term care.

Equity release in Newcastle is now more secure than in the past, with safeguards put in place by mortgage brokers, lenders and the Equity Release Council. As members of the council, we adhere to their product standards.

Equity release can also be a lifeline for interest-only mortgage holders who are unable to remortgage or use other options available to other homeowners.

With a lifetime mortgage, you can pay off the capital balance and release the accumulated equity. This allows you to worry less, as the lifetime mortgage is repaid by selling the property when you pass away or move into long-term care, with the added benefit of a no negative equity guarantee.

What are the downsides to equity release in Newcastle?

Equity release in Newcastle, like any financial product, has its own set of potential drawbacks that must be taken into account before making a decision.

One of the major downsides is that if you let the interest accrue, it will erode the equity in your property, which could reduce the inheritance available to your beneficiaries when the property is sold.

Whether you pass away or move into long-term care, leaving an inheritance may be a top priority for many people, so it is essential to remember that even if you initially ring-fence some of your equity, there may not be much left afterward.

It’s important to note that not everyone who takes out an equity release plan will die before their property is sold. In some instances, people may need long-term care, and if the interest has accumulated over time, the proceeds from selling the property may not be sufficient to cover the cost of their care.

Another potential downside is that taking out an equity release plan may affect your eligibility for means-tested benefits, as the equity in your property will be factored into your financial assets during an assessment.

If you’re currently receiving benefits, it’s critical to seek advice from a financial advisor to understand how an equity release plan could impact your eligibility.

Ultimately, whether equity release in Newcastle is appropriate for you depends on your individual financial situation and goals. Therefore, it’s crucial to carefully evaluate all the potential benefits and drawbacks before deciding.

Is equity release in Newcastle a good idea?

Whether equity release in Newcastle is the right option for you depends on your individual situation and goals. Unlike traditional mortgage lending, you cannot apply for equity release directly; instead, you must obtain equity release advice in Newcastle through a later life mortgage broker.

The reason for this is that while equity release may be a good option for some, it may not be suitable for others and can be quite costly. By speaking to a later life mortgage advisor in Newcastle, your lifetime mortgage will be tailored to your specific needs and plans.

Both equity release and lifetime mortgages in Newcastle are generally flexible and can be customized to meet your goals. Your later life mortgage advisor will also explore alternative options, including conventional or unsecured lending, before discussing equity release as an option.

The Benefits of Equity Release Advice in Newcastle

If you’re uncertain whether equity release or another option is best for your future plans, seeking professional equity release advice in Newcastle from a qualified later life mortgage advisor is a wise choice. They can evaluate your current situation and provide the best guidance on how to proceed.

By taking equity release advice in Newcastle, you can minimize future risks with your later life mortgage advisor taking appropriate steps to plan around any future decisions, such as ring-fencing inheritance.

Furthermore, equity release advice in Newcastle can be helpful for younger borrowers to avoid potential pitfalls by considering holistic or phased entry into later life lending.

For those who do not meet the age bracket for equity release or are better suited for an alternative, over 50’s mortgages, such as term interest-only, retirement interest-only, or other conventional mortgage options, may be available.

Your later life mortgage advisor in Newcastle will be able to advise you on the best option based on your needs and objectives.

Your security and protection are their top priority, and they will ensure that you are well-prepared as you enter the later stages of your life.

To understand the features and risks, ask for a personalised illustration.

A lifetime mortgage in Newcastle may impact the value of your estate and it could affect your entitlement to current and future means-tested benefits. The loan plus accrued interest will be repayable upon death or moving into long-term care.

Can You Remortgage in Newcastle Early?

As a homeowner in Newcastle, if you don’t plan on selling your home and moving, and you have a fixed-term mortgage, you typically consider remortgaging around three months before your fixed period ends. While this may seem early, it allows enough time for the remortgage process to take place before your initial deal expires.

Some people may choose to remortgage even earlier, six months or more before the end of their current deal. So, the answer to the question, “can I remortgage early?” is yes, it is possible. However, just because you can, doesn’t necessarily mean you should.

Types of Remortgage in Newcastle

When you are looking to remortgage in Newcastle, there are three common types of mortgages to consider: tracker, discount rate, and fixed rate.

The first is tracker mortgages. Tracker mortgages track the Bank of England base rate, which can lead to lower costs when interest rates are low but can also become expensive when rates are high. Some tracker mortgages have “collared” rates, meaning the interest rate won’t drop below a certain point.

Discount rate mortgages are a type of variable rate mortgage and are often offered by mortgage lenders at a discount to their standard variable rate mortgage.

Fixed-rate mortgages are the most popular among the three options. They allow you to lock in an interest rate for a specified number of years, typically 2-5 years. While there is a potential downside of paying more if interest rates drop, fixed-rate mortgages are more likely to provide benefits as interest rates are more likely to rise.

Why would I remortgage in Newcastle early?

Remortgaging early is an option for homeowners who want to make changes to their mortgage before their fixed period is due to end.

Reasons to remortgage in Newcastle early may include securing a better rate, funding home improvements, or consolidating debts. However, it’s important to keep in mind that remortgaging early may come with its own set of challenges and additional costs, so it’s best to carefully consider the decision and weigh the potential benefits and drawbacks before proceeding.

For a Better Rate

Although it’s typical to remortgage when your fixed rate mortgage is approaching its end, there may be instances when you wish to act sooner.

If there are products available in the market with lower rates of interest, you may want to try and switch early. However, this action may come with early repayment charges (ERCs), but the savings you could achieve by remortgaging in Newcastle could potentially outweigh these charges.

To Protect Against Interest Rate Rises

The housing market tends to fluctuate, which can make it more beneficial to remortgage earlier rather than waiting until the end of your fixed period. For example, your interest rate may have risen by a significant amount, say 2-3%, over the course of the 2-5 years that you were fixed in. If you are still a year away from being able to remortgage in Newcastle without facing additional charges, it may be worth remortgaging early, even if it means paying more upfront. This way you may be able to secure a lower interest rate for the next 2-5 years.

In addition, remortgaging early could be a great opportunity for debt consolidation. This allows you to combine all your unsecured debts into one manageable monthly payment, freeing up more income for other expenses. Although this may result in paying more overall, it can help you manage your finances much easier and bring greater financial stability.

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You should think carefully before securing other debts against your home. By adding your unsecured debts to your mortgage, which is secured on your home, you are potentially putting your home at risk if you cannot make the required repayments.

Although the total monthly cost of servicing your debt may have reduced, the total cost of repayment may still have risen as the term of your mortgage is longer than it may have taken to repay the debts originally.

Why would I want to avoid remortgaging in Newcastle early?

The potential drawback of remortgaging in Newcastle early is facing repayment charges. The amount of these fees varies based on how soon into your term you are.

Typically, you’ll pay less if you remortgage closer to the end of your fixed period. For tracker mortgages, there’s no fixed period, but there’s typically an introductory period during which you may face fees.

These charges are often substantial, which is why many people avoid them. Before making a decision, it’s always wise to consult with your mortgage lender or a mortgage broker in Newcastle, like us, and get an understanding of any early repayment charges that may apply if you choose to exit your deal before its term ends.

Should I remortgage in Newcastle early?

At the end of the day, this decision is up to you, it is your mortgage and your finances. Although, you should seek mortgage advice in Newcastle prior to making a decision to get insight from a mortgage expert.

If you have weighed up your options and feel like it is best for you to remortgage in Newcastle early, then by all means go ahead. Just make yourself aware of all of the costs involved before acting on it.

How to Remortgage in Newcastle Early

Take advantage of our free remortgage review service today and connect with one of our experienced mortgage advisors in Newcastle. Your review will consist of a discussion between you and your mortgage advisor in Newcastle about your remortgage aims and a look at your personal and financial situation to determine which remortgage route is best for you.

We are available 7 days a week, make sure to get in touch at a time that best suits you.

How Long Does Mortgage Approval Take in Newcastle?

Mortgage Approval Advice in Newcastle

If you are a first time buyer in Newcastle, it is likely that you will have a whole load of questions on your mind regarding the mortgage process and how each step works. If you have managed to get your head around the first few stages, you will now start wondering about the final stages such as mortgage approval.

As a mortgage broker in Newcastle, we get frequently get first time buyers asking questions like “what is a mortgage approval” and “how long does a mortgage approval take?”; these types of questions involve an important part of the mortgage process and you will need to know exactly what a mortgage approval is. Within this article, we are going to cover mortgage approvals and how long you should expect to get one once submitting your formal mortgage application.

The Mortgage Application Process

Here, we are going to discuss how the process works and how you would reach a mortgage approval in Newcastle.

Free Mortgage Appointment

The first step of your mortgage process would be to get in touch and book a free mortgage appointment with a mortgage advisor in Newcastle. Once you have a date and time for your free appointment, you are ready to get the ball rolling with your mortgage journey!

During your mortgage appointment, your mortgage advisor in Newcastle will take some information from you to discuss your current mortgage situation and what you are trying to achieve. They will also ask for some personal and financial information to support your income, affordability etc.

Mortgage Advisor Research

Using the details that you have provided, your advisor will be able to go and find the perfect mortgage product for you. They will look for a competitive mortgage product that matches your personal and financial circumstances.

We have a variety of lenders on panel that we are able to search through in order to try and find the best deal for you. We will search through 1000s of mortgage products on your behalf before selecting a product.

Once your mortgage advisor in Newcastle finds you a suitable product, they will feed back and present their recommendation. This deal will be presented in a mortgage illustration, which will outline the whole product. Your advisor will go into the details of the product and cover aspects such as monthly payments, interest rates, how long your term is, etc.

Mortgage Agreement in Principle

You will need a mortgage agreement in principle (AIP) to be able to make any offers on Newcastle properties. As a mortgage broker in Newcastle, we will be able to arrange an AIP for you completely free of charge so that you are in the best position possible when it comes to making an offer on a property.

An agreement in principle just shows that the lender is willing to let you borrow for them based on the personal and financial information that you provided to your mortgage advisor. You will need to provide supporting documents, such as bank statements and source of deposit, once you advance with your mortgage product.

No, an AIP does not guarantee a mortgage; it only helps you through the first few steps of the mortgage process. They roughly last between 30-90 days, therefore, you may need to renew them if you get one prior to looking at houses. This is no issue, as your mortgage broker in Newcastle, we can renew this within 24 hours of it expiring, just get in touch with your mortgage advisor for them to arrange this!

Submitting to The Mortgage Lender

So, you have found a property and have used your AIP to make an offer on it. You also want to continue with us and take the mortgage product that we have offered you. Now, it is time to supply some evidential documents and submit your mortgage application to the lender!

If you do not want to continue with us, unfortunately, we will not be able to offer you the recommendation your advisor initially presented you with.

Mortgage Lender Checks

Once your application has been sent off, the lender will start to carry out checks on your file and the documentation that you have supplied.

They will thoroughly check your bank statements, monthly outgoings, current financial commitments, etc., to be adamant that you can afford the mortgage product that you are looking to take out. They will also need your ID and current address to make sure that you are, who you say you are.

If you were given a gifted deposit, they will also need to check where it can come from and complete an audit trail to support this.

Mortgage Valuation Survey

A mortgage valuation survey will be carried out on the property that you are looking to buy in order to confirm the house is worth what you are paying for it. If you need to, our team will recommend any additional surveys you should have carried out.

If the price of the property is not worth what you are paying for it, the lender may lower the mortgage lending amount they are willing to give to you. In their eyes, they will be lending more than they need to. You have two main choices, you can either try and negotiate with the seller to lower the value of the home, or you can make up the difference with your own money or through a gifted deposit.

Receiving Mortgage Approval

After their checks are complete and everything looks good to go, the lender will let our team know that your application has been approved and successful. Your first time buyer mortgage advisor in Newcastle will be straight in touch to let you know the great news!

From here, it’s off to your solicitor for the exchanging of contracts and the rest of the legal side of things. Now the last step; pick up your keys to your new home!

Get Mortgage Ready in Newcastle!

This is the usual process for a standard mortgage case, although, in some different and complex situations, the steps may differ.

You can get started on your process today! Get in touch by using our free appointment booking system. Tap the enquire online button to get started.

We can’t wait to hear from you soon!

Can You Get a Mortgage With Bad Credit in Newcastle?

Bad Credit Mortgage Advice  in Newcastle

Unsecured credit is a topic that should not be taken lightly. We regularly speak with customers who are in dire need of specialist mortgage advice in Newcastle. Having things like missed payments, low credit scores, CCJ’s, and defaults, will have an impact on the maximum amount you can borrow for a mortgage.

If you have too many missed payments on something like a mobile phone contract, you may find yourself with a default attached to your credit file. If you are looking for a mortgage in the future, this can cause you trouble because it shows that you may be unreliable with payments.

That said, missing a couple of payments or defaults is not the end of the world. While talking to a specialist mortgage advisor in Newcastle can help navigate the mortgage process, there may find some suitable choices for you.

If you have a lower deposit, your chances of being declined are more than likely. If you have a suitable size deposit though, even if you have bad credit, a mortgage may still be an option for you, but you could face high-interest rates.

A specialist mortgage lender wants to know when and why your default was registered against you. The further away it is and depending on whether there is a good enough reason, the more likely you are to achieve mortgage success.

People do make mistakes and if it is a genuine, honest mistake that your default was issued, the mortgage lender may be a little more sympathetic during your application.

Bad Credit Mortgage FAQs 

We have compiled a list of frequently asked questions and answers in addition to bad credit mortgages.

If your questions or situation cannot be found below, feel free to book your free mortgage appointment and we will see how we can help. Our team can provide great mortgage advice in Newcastle and have a lot of experience in dealing with complex mortgage situations and may have met something similar before.

What will my mortgage advisor in Newcastle need to see? 

No matter what type of credit problems you have had in the past, your mortgage advisor in Newcastle will need to see an up-to-date copy of your credit report, which you can typically obtain online for free.

You must get your credit report before applying for a mortgage, especially if you have a poor credit history. Multiple failed credit searches can affect your credit rating and potentially prevent you from getting a mortgage altogether.

I have a good income but bad credit. Can I still get a mortgage? 

The answer to this question depends on your individual circumstances. We find that many clients can be quite confused by their credit score and need help understanding why it may be a problem.

To some customers, their credit score may not look the best, but in their eyes, they might have a good enough deposit to lower the rate and a consistent income. Even so, because of the risk, a mortgage lender may not like them to borrow anything at all.

The mortgage lender must have absolute certainty that you can keep up with your mortgage payments without the possibility of falling into arrears. If you do fall into arrears, the mortgage lender may need to repossess your home. Contrary to widespread belief, they will want to avoid this if they can.

While it may sound challenging, there are still options for bad credit mortgages, though we tend to find they come with higher rates. At this point, the most beneficial step is to book an appointment with an experienced mortgage broker in Newcastle.

I’ve had mortgage problems before. Will that stop me from getting a mortgage?

In many situations, you may struggle to keep afloat financially for reasons you cannot control. This can leave you unable to make mortgage payments you had no trouble paying.

Unfortunately, such circumstances happen. Even if it could only be a momentary blip, you can repay quickly enough, a missed payment may still appear on your record.

No matter what credit problems you face, you may face a challenge when it is time to remortgage, buy your first home, or move home.

Providing nothing but open and honest, specialist mortgage advice in Newcastle, we have had a lot of experience in helping customers who were previously tied to a mortgage and have since found themselves with a bad credit history.

If you are in a comparable situation, it will be beneficial to talk to a mortgage broker in Newcastle on your way to finding future mortgage success.

What other types of adverse obstacles are customers faced? 

Customers may face all kinds of bad credit issues, all of which can cause great grief during the mortgage process. Some of these issues include but are not limited to; 

• Missed Mortgage Payments 
• Credit Card or Loan Defaults
• County Court Judgement (CCJ’s) 
• Bankruptcy

Although none of these are particularly great circumstances, it is not necessarily the end of the road for you. With higher mortgage rates, you may have a longer, more challenging process, but there are specialist mortgage lenders who can help.

You need to focus on improving your credit score to increase your chances of mortgage success and access to better interest rates. We have a useful article that we have written on How to Improve Your Credit Score in Newcastle, which will hopefully help you to obtain a mortgage in the future.

Get in Touch for Bad Credit Mortgage Advice in Newcastle

If you are need of some expert mortgage advice in Newcastle regarding bad credit mortgages, book your free mortgage appointment online and one of our mortgage advisors in Newcastle will see how they can help.

We have over 20 years of mortgage knowledge and experience on our side, working hard to make sure that we have a definite plan of action regarding you credit score, ahead of your mortgage process. It’s our hope that the eventual outcome has you with your own mortgage. 

How to Get a Mortgage if You’re Over 40

Specialist Mortgage Advice in Newcastle

Please bear in mind that the below information is intended solely for reference purposes and should not be taken as any kind of personal, financial or mortgage advice in Newcastle.

Can I get a mortgage at 40?

Looking at this with an initial view, the answer to this question is yes, there may be a possibility that you could get a mortgage if you are aged 40+. This entirely depends on what your situation is, however.

According to an old survey that taken out on mortgage brokers by the Nottingham Building Society, a large selection of those surveyed had said that they had seen a rise in mortgage applications being turned down for customers who were in this age bracket.

When speaking directly to these customers who were between the ages of 45 & 54 and had been declined during the time period that was being analysed, once again it all came down to age as the biggest factor.

In this article we will take a look at why we feel that these home buyers are experiencing this, and the positive steps you might be able to take if you would like to take out a mortgage over the age of 40.

Why are over 40s having mortgage applications denied?

To gain a much deeper insight into the position these mortgage applicants are in, it’s important that we look at previous years, way back to before the introduction of computerised credit scoring and increased industry regulation.

If you were to go and speak to someone at your local building society, asking for a mortgage, you will probably have been interviewed by the building society branch manager or one of their own in-house mortgage advisors in Newcastle.

They would individually make review all of the personal information you have provided, including how well you conduct your finances in your current account, before making a decision on whether or not your mortgage application should be approved.

If you were fortunate to be approved, then you would be provided with information on how much earners in similar positions to you, were able to borrow for a mortgage. This would been given to you as a multiple of your gross annual salary.

To provide you with an example of this, if you were earning a figure of approximately £20,000 per annum and the mortgage lender’s income multiple was 3.5x, then you would be obtaining a mortgage of around £70,000. 

What this method of income multiplier didn’t factor in, however, was how old you are. Because of this, it didn’t matter what your age actually was, whether or you were 30, 40 or 50, you would typically be able to borrow the same amount on a mortgage.

That sounds quite fair actually, doesn’t it? No signs of ageism.

At face value, this is what it might look like, however, if two mortgage applicants were both set to retire at the age of 65, then one of these applicants might have a term upwards of 35 years, whilst the other may only have a 15 year term, meaning they will have higher monthly payments.

Using the previous example of a £70,000 (capital and interest) mortgage, with a national interest rate of say, 5%, it could look like this: 

• Applicant one mortgage payments on £70,000 over 35 years: £252pm approx. 
• Applicant two mortgage payments of £70,000 over 15 years: £395pm approx. 

So in this example, we have two earners that are more or less identical, with the same amount of mortgage debt, but applicant two has much higher monthly mortgage payments than the other applicant.

If the national interest rates were to suddenly rise up, then there would be an much higher risk of arrears occurring for applicant who has higher monthly payments. At the end of the day, risk is what trying to be minimised in all of this.

With this in mind, modern mortgage calculators tend to now factor in the maximum length you could take a mortgage term for (or in simple terms, your age), as well as your income and your expenditure.

Our Thoughts

In the past, the BBC got in touch with our very own “Moneyman” Malcolm Davidson for his thoughts on the Nottingham Building Society study. His perspective was not so much that older customers are being declined, but that they cannot borrow as much as they perhaps hoped they’d be able to.

Of course, the irony in this situation, is that we are in a repeated cycle of being reminded by our own government that we will have to work until a later age, as they raise the retirement age for us to be able to qualify for our state pension.

It’s a shame that the high street lenders don’t necessarily take this into account when they look at granting customers their mortgage. Below we look at this a bit more in-depth.

Why It’s Hard to Get A Mortgage Over 40 Years Old

First and foremost, there are a various industries in the country that are manual labour focused. The likelihood of anyone continuing to work in that industry as they head into their seventies and maybe even beyond, is small.

In addition to this, mortgage lenders are pretty closely regulated when it comes to repossessions and arrears cases, as these look bad and they want to avoid them if possible. Taking a property into possession is a fairly costly process and can attract bad press for these mortgage lenders.

Regarding the topic of mortgages for much older mortgage applicants, they certainly don’t want to have to kick a pensioner out of their own home just because they can’t afford their mortgage anymore.

Thankfully, many mortgage lenders out there have started to consider granting mortgages to applicants beyond the typical retirement age, so long as you are able to show that you can afford a mortgage post-retirement.

In order to do this, you would usually give your mortgage lender with a letter from your pension provider that would project what your future income is going to be. The problem in this regard, is that even with this, your income will probably be lower at the point of retirement than it used to be.

This means when seeing if you can afford a mortgage, a mortgage lender would need you to prove that you are able to do so, even with a reduced income at the point of your retirement and beyond.

Whilst great in theory, this doesn’t always work well in practice, unless you are only looking to take out a smaller mortgage, at which point you probably don’t need to take out a mortgage past that point.

If you cast your mind back, you may remember that in 2011, they scrapped the default retirement age, as well as making it so that your employer cannot make you retire anymore, if you do not wish to do this.

Because of this, though there will be some mortgage lenders who use the state retirement age as the general guide for when a mortgage should be fully repaid, it is becoming much more common for customers to be allowed to self-declare their retirement age.

They will want to check the plausibility of this though, so if you had a highly physical job such as a firefighter, and you aimed to declare 72 as your retirement age, this wouldn’t necessarily be seen as realistic.

With The Help of a Mortgage Broker

We previously had a case where one of our mortgage advisors in Newcastle where a mortgage lender was actually in agreement to make a 9-year mortgage for a 66-year old accountant, who had declared they were going to retire at the age of 75.

That of course is a pretty extraordinary circumstance that won’t apply to most people, and is not a guarantee that you could do the same thing, though it shows that mortgage lenders can be flexible. To better your chances, you should prove how you are able to afford a mortgage at retirement.

Consumer protections and regulations are in place nowadays to protect consumers and encourage careful lending.

As you get older, there are also many different paths you could take to protect you and your home, such as equity release in Newcastle via taking out a lifetime mortgage, or even an alternative to this such as a retirement interest only or perhaps a term interest only.

A trusted and qualified later life mortgage advisor in Newcastle will be able to take a look at your circumstances and start a conversation with you and your family, if you are nearing the qualifying ages for these mortgage types and would like to go ahead, or even look at alternatives routes.

If you are a first time buyer in Newcastle, or are looking at moving home in Newcastle, please do not hesitate to contact us, or book your free mortgage appointment online, and get in touch with a trusted member of our fast & friendly mortgage advice team.

To understand the features and risks of equity release in Newcastle, lifetime mortgages and later life lending, ask for a personalised illustration.

A lifetime mortgage in Newcastle may impact the value of your estate and it could affect your entitlement to current and future means tested benefits. The loan plus accrued interest will repayable upon death or moving into long term care.

What is a Mortgage Illustration?

Mortgage Illustration Newcastle

A mortgage illustration is something that you everyone gets at the start of their mortgage process. Although, what is a mortgage illustration? Let’s make this sound less complicated, as they are actually really simple!

A mortgage illustration is simply a document that outlines every detail of your mortgage deal. You will receive one from your mortgage advisor in Newcastle when they recommend you a product.

As a mortgage broker in Newcastle, we provide this service for free, it is only until you move forward with us and your deal when you’ll be charged:

1. When you book your free mortgage appointment online, you will be assigned a mortgage advisor in Newcastle that specialises in your situation.
2. Their job is to search 1000s of mortgage deals to try and pick out the best one for you that matches your personal and financial circumstances.
3. When providing a mortgage recommendation, we will also present a mortgage illustration outlining the whole deal.
4. If you are happy with our recommendation and want to continue with us, we can start to prepare your mortgage application.
   

Your mortgage advisor in Newcastle will run through all of these steps with you during your free mortgage appointment. We have been helping first time buyers in Newcastle, and we know how stressful the process can seem; we are here to break it down and make sure that you are comfortable at all times.

Watch our quick video on “what is a mortgage illustration” by MoneymanTV. For lots of mortgage tips and explanations, check out our YouTube channel. Please subscribe to the channel whilst you are there!

What is included in a mortgage illustration?

A mortgage illustration outlines the main details (lender, length, etc.,), costs of taking out the product, monthly repayments, legal fees and sometimes valuation fees.

Main details

You will need to know the basics of your mortgage deal and what comes with it. Your mortgage illustration will outline the length of your fixed contract, who you are taking out the product with and the interest rate.

Costs of taking out a product

Most lenders will charge you for taking out one of their mortgages. If a fee comes with your mortgage product this will be included in your mortgage illustration. This cost can vary between products

Monthly repayments

How much your mortgage is going to cost you each month will be included in your mortgage illustration. These costs will be calculated by your total mortgage amount, interest rate and fixed term length.

Every mortgage is different though! Remember that if you are on a variable rate of interest, you may not stick to the same payment each month like a fixed-rate.

Legal fees

Legal fees include solicitor services. As a mortgage broker in Newcastle, we will run through every legal cost before advancing you further through the process.

Valuation fees

Before you take a mortgage out on a property, you will need to arrange a property survey on it. Some properties may need a more in-depth property survey which cost more, whereas, other may not. These details may be included within your mortgage illustration.

Do I have to agree to your mortgage recommendation?

No, remember that a mortgage recommendation is simply what the advisor thinks is best for you and your current personal and financial circumstances. You do not have to continue with the deal if you do not wish to do so.

On the other hand, your mortgage advisor in Newcastle will have carefully selected this product for you and would have tried to find a deal tailored to your individual situation.

If you choose to part ways with us and want to go elsewhere, unfortunately, you will have to lose this deal too.

Does a mortgage illustration guarantee me a mortgage?

Unfortunately, you can never guarantee someone a mortgage. A mortgage illustration is just an outline of the deal being offered to you.

If you go ahead with this deal, you will still have to provide documents to support your income, source of deposit and affordability as of yet.

Is a mortgage illustration the same as an agreement in principle?

Before getting a mortgage illustration, you will get an agreement in principle (AIP). An AIP is a written statement saying that a lender will let you borrow from them in the principle of you being able to evidence your income, source of deposit, affordability etc. This is not a mortgage illustration.

You should know that AIPs also cannot guarantee a mortgage either.

Speak to a Mortgage Broker in Newcastle

If you are a First time buyer in Newcastle or moving home, we are here to help! We know that starting your mortgage process can be difficult, especially if it is your first time!

Following your free mortgage appointment, you will receive a mortgage illustration once your mortgage advisor in Newcastle has found an appropriate deal. Book online and choose a date and time for your mortgage appointment.

Obtaining an Up-to-Date Credit Report in Newcastle

Credit report Mortgage Advice in Newcastle

Getting an up-to-date version of your credit report is something that we always recommend doing before starting your mortgage process. As your Mortgage Broker in Newcastle, we will need an up-to-date credit report from you to get an idea of your current financial situation. This will help them pick out the perfect mortgage product for you!

We also suggest using Checkmyfile to obtain your credit report. Checkmyfile cross reference your data between four credit agencies to give you an in-depth detail into your profile.

How to get your up-to-date credit report:

• When you head to Check My File, you will be offered a free 30-day trial. If you start this, you will be able to get a copy of your credit report. Once your 30-day free trial ends, it will cost £14.99 a month to continue using this service. Bear in mind that this can be cancelled at any time, even after your 30-day free trial.
  
• When you have logged in, filled in some details and can see your credit report, go to the bottom of the page where you will have the option to ‘Download Printable Version’. From this, you will then download a local copy of your credit report to the device you are using.
  
• Your downloadable PDF will be password protected by your 6-figure date of birth ‘DDMMYY’.
  
• When you have downloaded this, feel free to send your credit report to enquiries@ukmoneyman.com, along with your date of birth.

What happens when I send my credit report to a Mortgage Broker in Newcastle?

Sending your Credit Report by email may slightly differ depending on what device you are using e.g. iPhone, Android, Desktop PC.

Once we’ve obtained your credit report, we can get your mortgage process running. First of all, this will allow us to look further into your mortgage situation and try to find you a deal that matches your personal and financial situation.

Your dedicated Mortgage Advisor in Newcastle will be able to search through 1000s of mortgage deals. On our panel, we have access to both high street and specialist products. Once we find the perfect product, it’s up to you whether you want to continue with us and the deal.

If you are a First Time Buyer in Newcastle or are looking at Moving Home in Newcastle, we would strongly recommend obtaining your credit report as early on in the process as possible. Head over to Checkmyfile today and get your mortgage process started!

What is a Mortgage Review?

Mortgage review advice in Newcastle

Especially if you are new to the scene, the mortgage process can sometimes seem a little complicated. There are no loopholes or quick ways to do things! This is because it needs to be done right and in order.

When starting the mortgage process as a first time buyer, home mover or landlord, you will undergo your free mortgage appointment with us where we will talk you through your mortgage options and gather some information from you regarding your personal and financial circumstances. This is standard procedure for a Mortgage Broker in Newcastle, like us. On the other hand, what would happen if you were not buying a property and you wanted to remortgage or simply check up and see whether you are on the best deal? How would the process differ for an applicant looking to purchase a property?

The difference is that this process starts with a mortgage review and not a mortgage appointment. And, in a lot of cases, those which have taken a mortgage review have ended up saving a lot of money further down the line… Sometimes hundreds!

What is a mortgage review?

Primarily, you will hear ‘mortgage review’ over names such as ‘mortgage check-up’; in reality, they all mean the exact same thing. A mortgage review is simply a look at your current deal to make sure that you’re on the best product available to you. This comparison can sometimes save you lots of money in the long run, especially if interest rates are low and you are able to switch products.

Typically, your mortgage review will be carried out by your Mortgage Advisor in Newcastle, although, some people like to do it by themselves and compare products online. As a Mortgage Broker in Newcastle, we would still recommend speaking with an advisor so that you can get an accurate representation and make sure that you are looking at the right products that match your personal and financial situation.

How does a mortgage review work?

A mortgage review works similarly to your typical remortgage appointments. Your credit will be examined, your income and affordability will be assessed, and your personal and financial situation will be considered. Don’t forget your current mortgage deal too.

With all of this information, your Remortgage Advisor in Newcastle will be able to compare your deal with others on the market that are currently on offer. Some products will not be suited to your circumstances. And, if there is not a suitable product, your advisor will be transparent and tell you so.

How often do I need to review my mortgage?

Getting your mortgage reviewed every 6 months does no harm. Some people review their mortgage within even shorter timeframes. There is nothing wrong with this either, in fact, there are tools out there that monitor your mortgage in live time, giving you 24/7 updates to whether you are on the best deal available. This is exactly what our free mortgage club offers!

If you are within the last year of your fixed mortgage term, we would always recommend checking every couple/few months so that if a deal that you want becomes available, you are able to action it right away.

As a Mortgage Broker in Newcastle, we advise our customers to set up a mortgage review reminder so that they are always on top of their mortgage.

Can I take a deal following a mortgage review?

In some cases, it will be possible to take out the deal that you have found following your mortgage review. If you want to pursue the deal that you have found, you may need to pay an early repayment charge (ERC), although, this does depend on how long you have left on your fixed term.

For example, if your deal is coming to its end and you find a competitive deal following a mortgage review, as long as that deal is still available when your term ends, you could switch onto that deal and avoid an ERC. In another example, if you found a deal following a mortgage review but you are 8 months from your fixed term ending, if you switch deals, you will face an ERC.

When signing on for a mortgage, you are stating that you will meet set payments until the end of your fixed term, therefore, if you decide to take out another deal mid-term, you are breaking this agreement and will receive a charge (ERC).

Sometimes this can be worthwhile if the rates are competitive and it will save you lots of money further down the line.

How much can I save?

Some people will save more than others when taking a mortgage review and switching deals. Potentially, some people could save hundreds! It depends on how far you are into your deal, current products in the market, your personal and financial situation etc.

If you were to take a review at a time when interest rates are low, you could potentially find lots of competitive deals out there.

Before you switch…

If you are looking to switch over to a new mortgage product online, we would still recommend consulting with a professional first. Online switching could potentially put you on the wrong deal and you would have to face numerous charges to revert back to another deal more suited to your circumstances.

If you choose to get Remortgage Advice in Newcastle, you will have a point of contact all the way through the journey. We have helping clients find competitive mortgage deals for over 20 years now too, and you could be next!

To contact us, simply give us a call or book a free appointment online. This way, you will be in safe hands when switching your mortgage deal and you’ll know that you are on the best deal for you and your circumstances.

What to do If I Miss a Mortgage Payment?

Mortgage Advice in Newcastle

Any homeowner in Newcastle wouldn’t dream that they’ll miss a mortgage payment, but something like an illness or family emergency can occur, causing a financial struggle, especially for those with low-income and minimal savings.

It can be more challenging for those who don’t have any insurance policies in place that could cover their mortgage payments should any unforeseen circumstances occur. 

Here, we felt it was best to answer the following questions: what should you do if you are in this situation and think you will miss a mortgage payment, and how can you improve your credit score afterwards? 

Notify your lender Immediately 

If you think or know you’re going to miss an upcoming payment on your mortgage, you must inform your lender immediately. Once you have missed a payment, this will instantly show on your credit record, which will heavily impact your ability to remortgage when your old mortgage is coming to its end. 

Depending on your lender’s criteria and circumstances, there may be an alternative that can help you avoid missing a payment. Your lender will offer their support and guidance to borrowers going through a difficult time.

There is nothing wrong with feeling embarrassed. Chances are you are not alone – other people will be in a similar or worse situation. You won’t be the last or the first to contact their lender about being in this position. 

What happens when I miss a payment? 

If you miss one payment on your mortgage then this isn’t the end of the world, although this may have a negative impact on your credit rating, depending on how quickly this is resolved and how well you communicate with your lender.

Generally, if you fail to pay your mortgage, your lender will inform the credit referencing agencies, and this will have a negative impact on your credit score. However, as mentioned above, lenders will usually have a grace period after the payment due date. This will vary from lender to lender.

Your lender will usually try to work with you and help. In some instances they will set up a payment plan, a short term solution that can get you back on track with your payments.

Falling behind on multiple mortgage payments can lead to defaulting on the loan agreement, meaning that your lender could take repossession action. Repossession and eviction is the last resort for any lender, they will usually negotiate with you and help make a repayment agreement. It is recommended to reach out to a Mortgage Advisor in Newcastle prior to taking any payment plans etc.  

The Importance of Taking Out Protection Insurance 

Our Specialist Mortgage Protection Advisors in Newcastle will give you the option and recommend taking out the relevant insurance to protect you and your family from financial burden during any unforeseen health issues.

Depending on which protection insurance you take out, these will help pay for your mortgage and bills in the event you are off work sick or critically ill.

If you need any additional support or guidance, please get in touch to speak to one of our Specialists Mortgage and Protection Advisors in Newcastle and find out which insurance will benefit you. 

Lifetime ISA Explained in Newcastle

Mortgage Advice in Newcastle

Following the discontinued Help to Buy scheme in 2019, home buyers began exploring other schemes that could help them get onto the property ladder. One of these was the Lifetime ISA.

Introduced in 2017, the Lifetime ISA gives First Time Buyers an easy approach to raising money to buy a property. Alternatively, it can also be used to save for later in life. We are a Mortgage Broker in Newcastle, therefore, this article will focus on how you the Lifetime ISA can be used to save for a property. It will also show the scheme requirements and how it can benefit you as a First Time Buyer in Newcastle.

Our YouTube channel features an in-depth explanation of the Lifetime ISA. Feel free to watch the video below or visit the channel and check out more of our free educational content!

What is the Lifetime ISA?

The Lifetime ISA is only available to First Time Buyers. This is because you are expected to have the funds available when it comes to selling and moving home. The government specifically wanted to help First Time Buyers get onto the property ladder.

The way the scheme works is that you have an interest-free independent savings account which you build up and put money into (just like a typical savings account). There are no limitations to how much can you deposit into your ISA, there is only a £4,000 yearly cap. Whatever you manage to save in the year will also be topped up by the government by 25% of your savings.

The savings are worked out every tax year, therefore, you will receive a 25% bonus every year around April. If you manage to save £4,000 in the tax year, you will receive £1,000 in your Lifetime ISA account. This makes your yearly savings sum up to £5,000.

You must be aware that once your money has been deposited into your Lifetime ISA, it cannot be withdrawn without a 25% charge. If you want to take out £1,000, you will only receive £750.

How can I spend my savings?

When you are using the Lifetime ISA to fund your first property purchase, do not withdraw from your ISA to use the funds as a deposit. When you are starting your mortgage process, simply tell your Mortgage Advisor in Newcastle that you have a Lifetime ISA and they will explain how this part of the process works.

The Lifetime ISA is still available to those currently renting. This does not affect your application as you have never owned a property before. We recommend building up your Lifetime ISA for a couple of years prior to buying a property. This way you are able to benefit from a few yearly government bonuses.

If you are wanting to use this scheme to save for later in life, check out the government’s official webpage: https://www.gov.uk/lifetime-isa.

Are there any restrictions?

There will be some requirements that you will have to pass before being able to open your Lifetime ISA. Here is what you will need to look out for:

• You need to be a First Time Buyer in Newcastle, buying your first home
• You can only save a maximum of £4,000 per year
• The property that you are buying must cost £450,000 or less
• You must be under the scheme for a least a year before you can make a purchase
• You must be over the age of 18 but under 40

If you fit into the scheme’s criteria or are unsure whether you qualify, feel free to get in touch. As a Mortgage Broker in Newcastle, it is our job to help you through the mortgage process from the very beginning, even at this stage. We say that the earlier that you get started the better!

Mortgage Advice in Newcastle

The Lifetime ISA is a great way for First Time Buyers in Newcastle to get onto the property ladder. With time and investment, the ISA could boost your deposit which could open you up to a higher loan to value mortgage deals (also dependent on a good credit score and affordability).

If already have a Lifetime ISA in place, now is a great time to get in touch and speak to one of our Mortgage Advisors in Newcastle. We have helped many First Time Buyers with Lifetime ISAs before, and you could be next.

Interest-free, tax-free and simple! What more could you want as a First Time Buyer looking to save for your first housing deposit?