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Can I port my mortgage to a new property in Newcastle?

Mortgage Advice for Porting a Mortgage Newcastle

Generally you’ll find that the majority high street mortgages are portable. What this means is that you will have the ability to move it from one property to another, without incurring any kind of penalty.

Portable mortgages are especially useful if you are looking to move into a new home and are currently engaged in a contract with a fixed rate, as it can allow you to potentially avoid any early repayment charges that otherwise would have occurred.

Are all mortgages portable?

Whilst it’s true that a lot of mortgages available to customers are portable, this doesn’t apply to every mortgage. Some specialist lenders for example, won’t allow this to happen. Getting in touch with and speaking to your mortgage lender for a quick discussion can give you some confirmation on this.

Should I port my mortgage?

Even though more often than not it will be there as an option, in lots of cases, homeowners may simply choose not to. Perhaps the lender isn’t willing to lend them the necessary additional funds needed to move home.

It’s important to know as well, that the additional funds will be on a different rate to the rate that your existing mortgage deal is currently on. Depending on the deal that your lender offers you, it may even be more beneficial to you to take on those early repayment charges, rather than staying where you are.

What is a Sub Account?

A sub-account on your mortgage is created at the point where you decide to port your mortgage, with the additional funds being placed onto a different deal than the one you have on your current mortgage.

This means that although you have only technically have a single mortgage and a single direct debit in your name, there are different rates of interest that will apply to each.

Further into the future, having sub-accounts can be known to cause a bit of grief. The reason for this, is because different products will eventually overlap one another. Working to get them aligned once again could mean that one of the sub-accounts has to fall onto the lenders standard variable rate for a particular amount of time.

For more information on the option to port mortgages onto new properties, please contact us to speak with a mortgage advisor in Newcastle and we’ll see how we are able to help you.

No matter if you’re moving house in Newcastle, working with a buy to let mortgage in Newcastle or are in need of help with a self employed mortgage in Newcastle, we’d love to get you booked in for an appointment to discuss your options.

Mortgage Broker in Newcastle

Should I Rent or Should I Buy?

Moving Home Mortgage Advice in Newcastle

“Should I rent or should I buy?” – It’s a big question that everyone will ask themselves at some point in their lives. It can be a hard one to answer too, especially if you’re a first time buyer in Newcastle.


You’ll find that, in the majority of cases, the option that people choose is down to their personal and financial situation (like most things!). You have to think about where you are now and where you’ll be within the next five years when it comes to making decisions such as choosing between buying or renting.

Why should I rent if a Mortgage is Cheaper? | MoneymanTV

Buying a property

Both renting and buying have their own perks, however, you’ll find that the majority of people will choose to buy over rent a property; here’s a couple of reasons why they may choose to do so:

Cheaper repayments

Generally speaking, depending on whether you’ve got past/current credit issues, monthly repayments for a property that is being bought over rented are usually cheaper. As a mortgage broker in Newcastle, we’ve learned that if you have a good credit score, you could be able to access better mortgage rates. Competitive products or not, you may also be able to obtain a mortgage with only just a 5% deposit or otherwise known as a 95% mortgage.

On the other hand, interest rates can vary and sometimes you may end up paying slightly more for your mortgage payments. For example, this could happen if you are on a tracker mortgage; this mortgage type bases your interest on the Bank of England’s base rate, which has the habit of occasionally fluctuating. This means that your payments could too.

When renting, unless your landlord decides to increase your payments, you should be paying a fixed monthly rate. Unfortunately, it will be rare for your landlord to decrease your payments, they usually only ever bump them up!

Security

Owning a property is much different to renting one, particularly in the sense of home security. Whilst living within the property, assuming that you keep up-to-date with all of your mortgage payments, no one can tell you that you have to move out of your home; you are under full ownership.

Whereas, if you choose to rent over buy, the landlord can ask you to leave at any time that they want. All they are required to do is give you a ‘move out by’ date. Not being in control of when you move out of a property is always a risk that comes with renting.

If the reason why your landlord is asking you to move out is that they are wanting to sell on the property, you may be able to approach them and try and buy it from them. They may even offer you first refusal as it saves them both time and money with estate agency fees, etc.

Property ownership

At the end of the day, if you choose to buy a property over renting one, you will not only have homeownership, you’ll also be a step up the property ladder.

With ownership also comes responsibility. When you own a property, you will be responsible for all of the repairs, damages, faults that come with it. This could be as simple as a light needing to be replaced, to a new heater.

Some people see renting as wasted money; this is not always true. You have to consider your own personal and financial situation and judge whether or not that it’s the right time in your life to buy a property. If it isn’t, renting may be the better of the two choices for you.

Renting a property

Renting is often a popular and easy option for people wanting to move out from their parents/carers household and haven’t quite decided on whether to rent or buy yet. As a mortgage broker in Newcastle, we’ve seen that renting is often used as a stepping stone towards buying a property or a way to give a little flexibility to someone’s living arrangements.

Flexibility

In terms of when you can move out of your rented property, the choice is yours! When you first move into the property, it’s likely that you’ll have a minimum tenancy period, which is usually a year. After this is over, you can choose to carry on living within the property or move out.

This is a little difficult when you are owning a property as you have to go through the process of selling your home. Also, remember that you may be searching for one too! If you get a little overwhelmed with the stress of moving home in Newcastle, feel free to get in touch with a mortgage broker in Newcastle like us.

Maintenance

As a tenant, your landlord should hold responsibility for all significant repairs. Some landlords will be better at this than others, however, sometimes you’ll find that you have to maintain the property yourself without their help.

Remember that when you own a property, you are accountable for all of the repairs and damages and you’ll have to sort them out yourself.

Choose what’s right for you

When choosing between buying or renting, make sure that you pick the option that’s best for you. You should consider both your personal and financial situation prior to making a decision. Here are a couple of things that you should think about:

  • How long are you planning to live in the property? If it’s less than 5 years, maybe renting is for you. If it’s for longer or long-term, maybe you should consider buying a house.
  • What is your current financial situation? Do you have the funds in place to put down a deposit on a property for a mortgage?
  • Do you want to move away or want to live in a different area? If so, make sure that you are aware of the property prices in different locations.
  • How many people are you planning on living with? If you are living by yourself, will it work out cheaper to rent over buy?


If you need any help or any sort of advice when it comes to buying or moving home in Newcastle, feel free to get in touch. Our team have helped thousands of homebuyers achieve their goal in the past and you could be next.

We are available 7 days a week, so call or contact us at a time that best suits you.

What are the 7 best places to live in Newcastle?

The best areas to live in Newcastle

Once you get it in your head that you’ve had enough of your property, it’s hard to move on from the thought of Moving Home. Whilst Moving Home is on your mind, have you ever thought about where you’d like to live?

As a Mortgage Broker in Newcastle, we’ve seen many First Time Buyers and Home Movers that haven’t even thought about where to start when it comes to looking at where to live. To help you get started with this, we’ve created a list of our best places to live in Newcastle.

1 – Fenham

This large residential area is a wonderful place to live in Newcastle upon Tyne. Fenham is located just 2 miles away from the city centre, allowing quick access to city life through strong transport links. Whether you are a walker, biker, bus rider or driver, you’ll find yourself at the heart of the city in under 10 minutes.

Fenham offers a wide range of local amenities to enjoy. You’ll find a town hall, a barracks, a community and leisure centre, shops, restaurants, bars and pubs. Having lots of things to do has allowed Fenham to become quite the hotspot for First Time Buyers in Newcastle.

Its popularity could also be related to student accommodation there. Fenham has become a busy student area; it’s located just 10 minutes from the University of Newcastle itself. St Mary’s College has since served as student accommodation since its initial closing in 1984.

Housing types in Fenham vary. For example, you’ll find terraced, semi-detached and detached all with reasonable prices. Here’s a fun fact for you… Ant and Dec were born in the Fenham area!

If Fenham sounds like the place that could fulfil your home buying needs, feel free to get in touch and we can help you get the Moving Home process started.

2 – Jesmond

Jesmond is thought to be one of the most affluent areas within Newcastle and its surrounding areas. It’s a grand, reputable suburb with a high population and lively local atmosphere. We mention this first as Jesmond is renowned for its dining, late-night bars and cafes.

Meanwhile, if you prefer the quieter side of life, you’ll realise that there are lots of other things things to enjoy in Jesmond; this includes garden and riverside walks, parks, museums and more. Activities like this will allow you to take a break from city life and relax outside. Jesmond Dene is one of Jesmond’s greatest outdoor attractions; you’ll find rivers and waterfall to walk by, picnics spaces, playgrounds for the children, a cafe and even an open-air theatre.

The housing types that are available in Jesmond vary, however, you’ll find that most of them are detached and semi-detached. Typically, housing prices in Jesmond are quite high, so if you’ve got the money and the funds in place to live here, you should definitely consider it as a main option.

3 – Heaton

Heaton is a large suburb on the outskirts of Newcastle. It sits just 2 miles from the city centre itself. The area has become a very popular choice for home buyers; from students to younger and older families, Heaton is home to all different kinds of people.

There are lots of things to do in Heaton. If you like your musical and theatre, you’re in luck as Heaton is home to the People’s Theatre that hosts up to 12 productions per year! Furthermore, just down the road, you will find the Sage, an iconic music venue in Heaton. At the Sage, you’ll find all different kinds of genres performing: jazz, classical, folk, country and even the blues.

To highlight even more of Heaton’s best bits, let’s talk about food and drink. In Heaton, you’ll find plenty of food and drink options, there are delicacies from all over the world available. For example, there are Italian restaurants, Punjabi cuisines and of course, plenty of Fish and Chips. Most of these are located on Chillingham Road. Here you’ll find a long parade of cafes, restaurants, bars, shops and even the Metro Station.

Heaton is a fun and lively place to live, making it the perfect place for homeowners that have a family or are planning to start one. This is also why we love it!

4 – North & South Shields

We were going to put only one of the shields on our list, but then we realised that we couldn’t do that!

Both small coastal towns sit right on the edge of Newcastle Upon Tyne, overlooking the sea. Both locations offer peaceful coastline walks and a very British feel. Even though they always argue which town is better, both Tyneside towns love their local area and wouldn’t want to live anyway else. From funfairs on the front to popular shopping centres and outlets on the outskirts of the towns, there is always something to do in North and South Shields.

There are strong transport links into Newcastle City Centre in both towns, so you can easily access the heart of the city in under 20 minutes. That’s if you would rather be in the centre over the beach!

5 – Chopwell

Located within the Metropolitan Borough of Gateshead, to the west of Rowlands Gill and the north of Hamsterley, Chopwell is a small village with a rich history dating back to at least 1150, as shown in a document involving the famous Bishop Pudsey, who served under King Richard I.

The area also has a history in the mining industry, as was prominent with much of Tyne & Wear around those times. The Chopwell Colliery was eventually closed and part of the site was turned into the Chopwell Meadows Nature Reserve. If you are a mountain biking enthusiast, you’ll surely make great use of the Powerlines Mountain Biking Trail in the local area, a spot that finds people from all over the region coming to have a go at the 2.5-mile route on offer.

For a smaller location with industrial history and opportunities for leisure activities, Chopwell could be an ideal place to move to and call home.

6 – Gosforth

Gosforth is a Newcastle city suburb situated to the north of Central Newcastle. There is a rich history in the area, with some of the first recordings of the area noted in 1166. Over the centuries, there have been historical townships within the area, mining collieries and numerous archaeological discoveries including a Roman Altar.

Within the area itself, you’ll find the notable building The Regent Centre, a business complex housing HM Revenue & Customs, as well as others. You’ll also find various private schools and a secondary school Academy, great for families who are planning ahead for their children’s future. There’s a fantastic high street including various noteworthy, well-established businesses, including large supermarkets and even a local shopping centre, cafes and even some local pubs.

For a thriving local scene, high street shopping options, great opportunities for raising a family and a rich history, Gosforth might be an area worth taking the time to look into and possibly even call home.

7 – Quayside

Situated along the banks of the River Tyne, joining Newcastle & Gateshead together, is the wonderful area known as The Quayside. In the past, The Quayside was an industrial and commercial dockside, also home on the Newcastle side to a regular street market. On this side, you’ll also find some restaurants, bars and nightclubs, as well as some fantastic housing opportunities.

On the opposing side, signposted as Gateshead Quays, you’ll find a contemporary art centre, as well as a performing arts and conference centre. Joining the two city centres is the famous Gateshead Millenium Bridge, a pedestrian bridge opened in 2001. There is also a low-level Swing Bridge allowing further pedestrian and even road access to either side. If you like areas rich in history and culture, with easy access to two different city centres and some great housing, The Quayside might be the area in and around Newcastle that appeals to you the most.

First Time Buyer Mortgage Advice in Newcastle

Even if our list only gave you some pointers on where to start looking, we hope that it helped. More often than not, First Time Buyers don’t have a clue on where to start!

If you are looking for First Time Buyer Mortgage Advice in Newcastle, then you should get in touch with our team. We are very experienced in helping applicants that want to move home, in fact, we’ve helped thousands of home movers just like you over our years in the industry.

For a free mortgage consultation in Newcastle, contact us today.

Can I Get a Second Mortgage to Buy Another House in Newcastle?

Can I Have 2 Mortgages? | MoneymanTV

Second Mortgage Advice in Newcastle

Here are some of the reasons why a homeowner might be needing two different mortgages:

  • To raise some money for an existing home.
  • With a view to rent out your existing home and purchase a new one.
  • As a means of helping your children out, with a second mortgage.
  • Requiring a second mortgage to purchase a Buy-to-Let in Newcastle.
  • Your name is on an existing mortgage and you are looking to buy a new property.

Second Mortgage to Raise Money

If you have a substantial amount of equity built-up in your home and are looking for a second mortgage to release some of this, as a means of funding the purchase of a new home, or home improvements on another property in your portfolio, then this is definitely something an experienced mortgage advice team in Newcastle, like ourselves, can take a look at.

Quite often you’ll find towards the back end of your mortgage, you’ll be heading onto, or potentially already are on a lenders Standard Variable Rate (SVR). Our team of advisors are able to shop around and find a potentially more competitive deal, whilst also giving you the option to release capital. A further advance with your current lender could also potentially be an option for you.

Second Mortgage to Rent Out Existing Home to Purchase a New one

If you are looking at the possibility of moving house but maintaining ownership of your existing property with the purpose of letting it out, this is another instance wherein a second mortgage would be applicable. Your second mortgage will be a new residential one, taken out on a property after raising the funds from renting out the previous home. This particular type of process is known as a Let to Buy and has become particularly popular over time.

Second Mortgage for a Buy to Let

In some cases, a homeowner may look to release the equity that is sitting in their property, using that supplemented income to either buyan additional property to add to their portfolio. We have spoken to many customers over the year who have been looking to do this and are ready, willing and able to help you out with a mortgage for this purpose.

Second Mortgage to Purchase a Home for your Children

Rules vary on taking out a second mortgage to purchase a home for your child. The more commonly seen situation is where a homeowner may wish to take out a remortgage to release equity as a means of gifting their child a substantial deposit. This is a widely popular option that has seen many First-Time Buyers who otherwise wouldn’t have gotten on the property ladder, find their dream homes and settle down.

Named on Existing Mortgage and Want to Buy a New Home

Other circumstances where a second mortgage may apply, could be through financial complications present with a divorce or separation. You may not always be able to get out of your joint mortgage straight away, if at all, but may wish to take out a mortgage on a home of your own once you’ve moved out. This is a situation that we come across on a regular basis and often have the ability to help with.

Whatever the circumstances surrounding your financial position and need for a second mortgage, being an Experienced Buy-to-Let Mortgage Broker we may be able to help you achieve what you’re looking to do. Our mortgage advisors in Newcastle will search through thousands of mortgage deals to find the right one for you and your personal situation.

What do Lenders Look for When Assessing my Bank Statements?

Part of the mortgage process includes providing evidential documents to prove that you can afford a mortgage and you are who you say that you are. There are lots of different documents that you’ll be asked to provide, this includes photographic ID, payslips, latest P60, proof of address and your bank statements.

What Do Lenders Look For On My Bank Statements? | MoneymanTV

Why do lenders ask to see my bank statements?

Lenders need to be certain that you can afford a mortgage. Yes, you may have been given an Agreement in Principle (AIP) to say that they are willing to lend to you, however, you are only agreed in principle of you providing evidential documents to back up everything that you’ve said about yourself.

Bank statements show a lot about an applicant, they will show your latest spending at the pub to gambling transactions on your go-to betting app. Everything you spend will be on them, even bank transfers to and from different accounts.

Seeing how someone spends their money will show the lender whether the applicant is a trustworthy applicant or not. For example, if the lender can clearly see that an applicant spending too much money and is exceeding their overdraft limit every month, they will question whether you will be able to afford a mortgage or not.

It’s all down to risk. If the lender thinks that you are going to struggle with your mortgage payments due to how you spend your money, they are unlikely to accept your application.

What specifically will they be looking for?

The question is, what exactly are they looking for? What do I not want to pop up on my bank statements during my mortgage application?

1 – Gambling transactions

Gambling transactions is actually one of the first things that your lender will look for on your bank statements. Believe it or not, depending on how frequently and how much money you gamble, gambling can affect your chances of getting a mortgage.

Occasional gambling will be harmless, however, if you are frequently gambling large amounts of money, no matter if you are returning a profit or not, lenders will not be impressed.

Remember, lenders need to trust you and know that you’ll be able to meet your mortgage payments each month. If you are gambling, you may be seen as unreliable.

2 – Exceeding your overdraft

Lenders need to know that you can afford a mortgage, so dipping into your overdraft and exceeding its limit every month is something that they won’t take lightly. We aren’t saying to never step into your overdraft, as a Mortgage Broker in Newcastle, we see it happen all of the time. We are suggesting that if you do it every month, it may be a little trickier to get accepted.

3 – Bounced direct debits

Another thing that lenders will look for on your bank statements is bounced direct debits. A bounced direct debit is a payment that fails to go out of your account, this usually occurs with monthly bills/subscriptions. This may sometimes be a complete accident, so one or two may not hurt depending on what you are paying for, for example, a missed mortgage payment will more detrimental effect than a missed phone contract payment. However, repeated bounced direct debits will reflect badly on your credit file, so be wary of agreeing to credit commitments when you can’t really afford them.

4 – Failing to pay off loans and credit cards

Furthermore, lenders will be checking for personal loans and credit card commitments. They need to make sure that you’ve declared these expenditures and that you’ll still be able to meet your mortgage payments as well as these outgoings.

What can I do to show my lender that I’m a reliable applicant?

After having worked with thousands of First Time Buyers in Newcastle and Home Movers in Newcastle, we have learnt that most lenders will want to see at least three months worth of bank statements from their applicants.

In light of this, you now know that you can’t change what your past bank statements show, however, you can change what appears on them in the future. Before you officially submit your final mortgage application, you should get prepared and make sure that your finances reflect you in the right way.

As a Mortgage Broker in Newcastle, here are some recommendations that we have to show that you are a reliable applicant:

  • Gambling – If you are a frequent gambler, we would suggest that you take a break for a little while. This may also benefit your mental health as well as your financial situation.
  • Save money – Even saving money and showing the lender that you’ve been trying to show ways of being able to afford a mortgage will help you massively.

Speak to a Mortgage Advisor in Newcastle

For help with making your application stand out, you should get in touch with a broker like us for Specialist Mortgage Advice in Newcastle. We have been helping people achieve their mortgage needs for the last twenty years, it’s safe to say we know exactly how to help. You could be next!

We also offer a free mortgage consultation, so if you have any mortgage questions, it’s likely that we’ve helped many applicants in your situation before, so feel free to get in touch.

What is a 95% Mortgage?

A 95% mortgage is as simple as it initially sounds; you are borrowing against 95% of the price of a home, with the remaining 5% being paid for by your deposit. An example of this is if you looked at buying yourself a home worth £150,000 with a 95% mortgage, you would then also be putting £7,500 down as your deposit, borrowing the remaining £142,500. 

95% Mortgages Newcastle

95% Mortgage Advice in Newcastle

Following on from the Budget in March 2021, the UK Prime Minister Boris Johnson announced a Mortgage Guarantee Scheme for Lenders. The purpose of this would be to make 95% mortgages more readily available from the bigger banks.   

This news is fantastic for both first-time buyers and home movers as this particular scheme will run until December 2022.  There are specific terms and conditions that will apply, your Mortgage Advisor in Newcastle will be able to double check if you can qualify.

All our customers will have access to a free, no-obligation mortgage consultation where one of advisors will be able to recommend the most appropriate mortgage deal based on your individual situation.  

Can I get a 95% mortgage?

95% mortgages are generally available to both First-Time Buyers in Newcastle & people who are looking at Moving Home in Newcastle. Whilst the primary idea of saving for a 5% deposit sounds really simple, you’ll still need to have a good enough, lender approved credit score, in order to prove that you can afford your monthly mortgage repayments. Doing this increases your chance of being granted a 95% mortgage.

95 percent mortgage advice newcastle

Improving your credit score

A good credit score is absolutely necessary in obtaining any mortgage, especially when it’s a 95% mortgage. Factors like paying any current credit commitments on time, ensuring your addresses are accurate & up-to-date and that you’re on the voters roll, can all help build up your credit score. For a detailed and helpful guide discussing what you can do and why, please see our How to Improve Your Credit Score article.

Affordability 

Affordability is another one that is vital to the process. By providing details of your monthly income and regular outgoings (these can be evidenced with your bank statements) and any pre-existing credit commitments, your lender will get a detailed overview of whether or not you are able to afford a mortgage like this.

Can my family help me get a 95% mortgage?

Quite often these days, we see family members, especially parents, eager to help each other get onto the property ladder. This can be done by one of these family members gifting the deposit required for the property. Often referred to as the “Bank of Mum & Dad, Gifted Deposits work solely as a gift, and not as a loan that you are required to pay back. The lender will need proof of an agreement between you and the gifter, before it can be used towards your mortgage. 

How do I choose the right 95% mortgage?

When looking for a 95% mortgage, it’s important to know you’re on the right mortgage for you and your personal circumstances. Different mortgage types will all work in different ways, which allows you to explore your options and find one that is best suited for your personal and financial situation. 

You could find that you are better suited for a Fixed Rate or a Tracker Mortgage, wherein you either keep interest rates at a specific amount throughout your term, if you choose the former, or with the latter you would have your interest rates follow the Bank of England base rates.

On the flip side, you might find that you would much rather go with an Interest-Only or a Repayment Mortgage. Interest-Only allows you to have cheaper payments until you need to pay a lump sum at the end (more suitable for Buy-to-Lets), whilst Repayment Mortgages means you’ll be paying a combined amount of both interest and capital per month.

You can learn more about the Different Types of Mortgages in our article, with accompanying videos.

How can a bigger deposit help with my mortgage? 

As you might figure when it comes to such a huge financial outgoing, you need to make sure you are prepared and wary. If you don’t properly plan ahead, you could find yourself with a variety of problems, including higher interest rates, remortgaging difficulties due to less equity and then negative equity. 

The positive side though is that all these can be avoided if you’re smart enough ahead of time. Something that will be very beneficial is that if you put more deposit down, you are less risk to the lender.

A larger deposit, somewhere around 10-15%, would not only reduce your interest rate significantly but would also place a lot more equity in the property. This in turn will reduce the risk of negative equity as you would be borrowing less against your home. 

So all in all, whilst the risks may seem intimidating, planning ahead and saving for a bigger deposit to access something like a 90% or even an 85% mortgage will be massively beneficial and something you’ll be able to reap the rewards from in the future. 

How to Make an Offer on a Property in Newcastle?

First-Time Buyer Mortgages in Newcastle

As a First-Time Buyer in Newcastle, you may find yourself competing with other potential buyers who are looking at the same properties. With this in mind, it is always best to ensure that you are in the best possible position to have your offer accepted.

When it comes to purchasing your home, you will rarely beat a cash buyer – Even if the cash offer is lower than your offer, they are likely to go with this as it means a quicker process and less paperwork. Luckily, you may not come across many cash buyers when searching for your dream home. If you are looking to make the mortgage process even quicker than it otherwise would be, sending the Estate Agent a copy of your Mortgage Agreement in Principle is your safest option.

By doing this, you possibly put yourself ahead of other potential buyers who are less prepared and don’t have this document ready. An Agreement in Principle can be turned around very quickly, often resulting in same day service if your circumstances are straightforward. If you would like assistance in getting this document, Get in Touch and a mortgage advisor in Newcastle will be able to help you out with this.

When buying a house you may find there is a lot of back and forth negotiation. Be very careful as your first offer, if accepted straight away, will most likely be too high! On this basis, we often find that our customers’ original offer will be turned down by the seller. It’s always a good idea to offer a bit less than you’d be happy to pay, as Estate Agents have been known to push an increase on your offer.

If the seller won’t budge from their original asking price, it’s up to you to decide whether or not you are willing to meet their asking price. If the property you are applying for is new to the market and you can’t negotiate a deal with the Estate Agent, then it is may be worth your time to walk away and look for another property.

If you are unsure about whether the asking price is right or not, you can always check sold prices on Zoopla and Rightmove to get a rough idea of what it should be. These websites draw data from the Land Registry which means that they are providing you with reliable information. Sometimes, you may see a house on the same street with a much lower price than the one you are looking at purchasing. Don’t worry though, as there will be a reason that this house sold for less.

These can include;

  • The property could have been repossessed
  • It was an inter-family sale
  • It was sold to a tenant at a discounted price by the Landlord

As part of our service, we offer expert first-time buyer mortgage advice in Newcastle regarding your offering strategy. We know that this process may be nerve-wracking, though it can also be exciting, and we are here to help you along this journey.

The Different Types of Mortgages Explained

The Different Types of Mortgage

From First-Time Buyer Mortgages in Newcastle to Moving Home in Newcastle, to Remortgages in Newcastle – When you start out looking for a mortgage it will quickly become apparent that you have a whole array of mortgage types available for you to choose from.

Below you will see a list of the most popular types of mortgages we encounter on a regular basis that are available on the market.  If you have any questions regarding one of these mortgage options, then please do not hesitate to contact us and an experienced mortgage advisor in Newcastle will be in touch to see how they can help you get the ball rolling.

What is a Fixed Rate Mortgage?

A fixed rate mortgage means that your mortgage payments are going to remain as they were for the length of time that has been agreed on between you and the lender. You are the one who can set the length of which you want to fix your payments for, with the usual options customer opting for being 2, 3 or 5 years or longer.

Regardless of what happens to inflation, interest rates or the economy, you can rest assured that your monthly mortgage repayments, usually your biggest financial outgoings each month, will remain as you are used to, providing financial stability for you.

What is a Fixed-Rate Mortgage? | MoneymanTV

What is a Tracker Mortgage?

A tracker mortgage means that your interest rate will follow along with the Bank of England’s base rate. What this basically means, is the lender that you are with is not the one who sets your mortgage rate and you will be paying a percentage above the Bank of England base rate.

In an example, if the base rate is 2% and you are tracking at 1% above base rate, that means you will be paying a rate of 3%.

What is a Tracker Mortgage? | MoneymanTV

What is a Repayment Mortgage?

When you take out a repayment mortgage this means that each month you are paying a combination of both interest and capital.

So as long as you are able to keep up your monthly mortgage repayments for the full length of the mortgage term, the mortgage balance is guaranteed to be paid off at the end and the property will then become yours completely.

This is the most risk-free way to pay your capital back to a mortgage lender. In the early years of your mortgage term, it is mainly the interest that you are paying and your balance will reduce at a very slow rate, especially if you have taken out a mortgage that stretches over 25, 30 or more years.

This situation then changes in the last ten years of your mortgage, where your payments are paying off more capital than interest and the balance will be reducing at a much quicker rate than it was at first.

What is Repayment Mortgage? | MoneymanTV

What is an Interest Only Mortgage?

Most buy to let mortgages are set up on an interest-only basis, however, landlords may find it much more difficult to get a residential property with this type of mortgage.

Nowadays, finding a lender who is willing to offer this will be hard to come by, though there are certain circumstances where this can be an option. These include downsizing your home when you are older or have other investments what you will use in order to pay back the capital.

Lenders are very strict when it comes to offering these products now and the loan to values are a lot lower than they were in previous years.

What is an Interest-Only Mortgage? | MoneymanTV

What is an Offset Mortgage?

With an offset mortgage, the lender will set you up a savings account to go alongside your existing mortgage account.

How this works is that let’s say you have a mortgage balance of £100,000 and £20,000 is deposited into your savings account, then you will only pay interest on the difference, which in this case would be £80,000.

This can be a very efficient way of managing your money, especially if you are a taxpayer that pays much higher rates than others.

What is an Offset Mortgage? | MoneymanTV

Main Reasons for People Moving Home in Newcastle

As a Mortgage Broker in Newcastle, we have seen every reason under the sun to why someone may consider Moving Home. Although, when it comes to Moving Home in Newcastle, we see a lot of similar scenarios between our customers. Here are the main reasons why people may want to move home in Newcastle, you might find a similar situation to yours:

More living space

According to results made available by Dataloft, 37% of borrowers who wanted to move home said that it was because they wanted a bigger place to live. This makes sense as we usually see First Time Buyers starting their mortgage journey in a smaller place and then further down the line their circumstances change and want to move into somewhere with more living space.

People who are also thinking about starting a family soon may want to move into a larger house. Once you have children, a smaller house becomes even smaller. This can get complicated, especially when everyone starts arguing about who gets the bathroom first!

On the other hand, there are other ways to make more living space. Have you ever heard of raising capital to Remortgage your property for a home extension/conversion? This is a popular option for homeowners who don’t want to move out but want to invest in their current home. It allows you to continue building onto your dream home whilst making more space. It will also add property value which could help you out if you come around to selling it in the future.

Change of scenery

Sometimes people just want a change of scenery and there is nothing wrong with that. In fact, studies show that 24% of borrowers said that this was the reason why they wanted to move home. As a Mortgage Broker in Newcastle, when we work with home movers they often say that they had a low budget as First Time Buyers and now they want to invest in a home in a different area with higher-end properties. Chances are that these borrowers now have a higher income and want to live in a more affluent neighbourhood.

People don’t really consider the choice of schools when moving into their first home as they may have not even thought about starting a family yet. People who have started a family or are planning to will always factor in local education when they are looking at where to move.

Closer to family

Another 17% of home movers said that they moved home to be closer to family and friends. Usually, this situation comes around when couples decide to start a family. If both parents are working full time, then it is more than likely that they will ask their own parents to help them out with childcare. Private nurseries can be expensive and sometimes parents find it hard to work around nurseries due to distance etc.

Most First Time Buyers will always choose to buy over renting, however, people Moving Home in Newcastle may consider the other side of the coin. Whether you’re renting or buying, the monthly payments are roughly the same anyway. Either way, moving home can be a tricky decision. Like we said before, if you don’t want to move out but want more living space, maybe it’s time to speak to one of our Remortgage Advisors in Newcastle who will help you find a great deal to raise money for home improvements.

Moving Home Mortgage Advice

If you are thinking of Moving Home in Newcastle and these situations are the same as yours, don’t hesitate to get in touch with your Moving Home Mortgage Advisor in Newcastle today. They will calculate your maximum borrowing capacity and give you a quote on your monthly payments.

Even if you are looking at remortgaging, you can get in touch today and we can pass you onto Remortgage Advisor in Newcastle and they will be able to answer all of your remortgage questions.

Mortgage Advice for Applicants Going Through Divorce or Separation

Mortgage Advice in Newcastle

A divorce or separation is never planned when you move in with your partner, so if things to go unexpectedly and this happens, things can get complicated very quickly, particularly your mortgage commitments.

As your expert Specialist Mortgage Advisors in Newcastle, we know exactly what to do in order to get things rolling smoothly. We know that these times can be hard, especially if you are trying to sort everything on your own, and that’s why we always offer a helping hand.

As a Mortgage Broker in Newcastle, a day doesn’t go by where we don’t deal with a specialist case. Over our many years of working within the mortgage industry, we have provided our expert help and guidance to many customers who have needed Mortgage Advice in Newcastle through their divorce or separation. When people come to us asking for advice on their mortgage regarding a divorce or separation, we usually get asked the same three questions:

1.        How do I remove my ex-husband/wife from my mortgage?
2.        How do I remove my name from my ex-partner’s mortgage?
3.        Can I have 2 mortgages?

How do I remove my ex-husband/wife from my mortgage?

Once you have joint financial commitments with somebody, removing their name can sometimes be difficult. When you first moved in, you both put your names on the mortgage and taking one-off isn’t as easy as you may think.

Things can become just a little more tricky when there are children involved. It’s more common for the mum to remain within the household with the children but obviously, it can go either way. There may come a time that whoever is “in situ” wants to take over the mortgage in their own right. You never know, maybe both parents may want to move out and move on.

Even if you are able to prove that you have been paying your mortgage payments without any help from your ex, this will still not change the fact their name is tied into your mortgage with you.

Removing a name

When you approach your lender or a Mortgage Broker in Newcastle trying to remove a name, they must ensure that the remaining applicant on the deal has the means to able to afford a mortgage on their own going forward. It is also important that you know that both you and your ex-partner will have to go through a full affordability assessment, even if you have been keeping up with your mortgage payments.

During this point in the process, we normally see that there is already someone who can step in and replace the ex-partner. We usually find that this is a family member or a new partner.

Every lender has their own different way of assessing your affordability for a mortgage, so don’t give up if your existing lender is unable to help because there are other options available. One is to approach us, your expert Mortgage Broker in Newcastle and we will see what we can do.

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

The same rules apply for this situation for if you were trying to remove someone else’s name. Both names are still tied into your mortgage so even if you decide to leave the household, you are still responsible for any joint financial commitments you took out with your ex-partner. It’s important that you know that this is still the case even if you have made an agreement with your ex-partner that they will make all of the payments.

The mortgage payments for your old property will be taken into account by your lender if you want to buy a new property in the future so it is important that you take this into consideration before making an offer. This is why we always recommend getting help from an experienced Mortgage Advisor in Newcastle.

In situations like this, people can get themselves stressed and need some expert help from an expert Mortgage Advisor in Newcastle. We are here to offer a helping hand; at Newcastlemoneyman, a Mortgage Advisor in Newcastle will sort everything out for you and recommend you with your best options as a person moving out of the family home. We will always have your best interests at heart!

You will find that some lenders are more generous than others in regards to how much they’ll lend you. Although, some are strict and some may be more lenient. If you come to us for Mortgage Advice in Newcastle, we will take your personal and financial situation into account when recommending you the most suitable lender to apply for a Mortgage Agreement in Principle with.

Can I have 2 mortgages?

Yes, you can have more than one mortgage, you can even get more than two! Lenders and their credit scoring systems will take in lots of different factors when you apply for a second mortgage. The main one will be your current financial commitments. There are still lots more that need to be considered though. Before applying, make sure you can afford a second mortgage, as getting declined could potentially damage your credit score.

A Mortgage Broker in Newcastle, like Newcastlemoneyman can perform a search for you without damaging your credit file. Once we have evaluated all of your information, we can confirm the maximum amount that you will be able to borrow. This will allow you to get an idea of your budget and how much your monthly mortgage payments are going to be on top of your current financial commitments.

We know that it can be hard to move on from your current financial commitments, this is why having an expert advisor by your side could prove highly beneficial. Moving Home is already stressful enough and when you add that to a complex situation like a divorce or a separation, it can sometimes all get a bit too much. Speak to a Mortgage Advisor in Newcastle today and we will see how we can help you!

Specialist Mortgage Broker in Newcastle

Newcastlemoneyman.com & Newcastlemoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited registered in England, registered number 6789312 and registered office 10 Consort Court, Hull, HU9 1PU.

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