Mortgages
Personal mortgage advice from out expert mortgage adviser in Tamworth, tailored to your financial situation and experience – whether a first-time buyer or an existing landlord- Marc Catry can guide you.
First Time Buyers
Buying your first home is an exciting but, at times, scary experience. Navigating the vast market of mortgage lenders can be daunting, and the jargon used can leave you scratching your head. Our mortgage advisers in Tamworth aim to make buying your first property as easy as possible by breaking everything down and explaining each step clearly, so that you can approach each decision fully armed with the knowledge you need.
10 Top Tips For First Time Buyers
1. Be Realistic
It’s easy to set your sights too high. When it comes to budgeting and spending, make sure you being as honest as possible with yourself about the amount you can realistically spend. A budget calculation can help you work out your limits.
It is wise to seek a Decision in Principle certificate, so that you know how much you can offer when you’ve found the right property.
There is a lot to consider when purchasing your first home – will your new home need furnishings? Are you interested in an older property that may require extensive work such as re-wiring?
All of these factors should be taken into consideration when working out your realistic budget, as well as additional frees such as conveyance and stamp duty.
2. Bring An Experienced Home Buyer To View The Property
An experts eye is invaluable when it comes to spotting things you may have missed. It is easy to fall in love with a property at first sight and not notice those tiny signs of what might be a big problem down the line.
Having an impartial, experienced home owner view the property with you will give you a valuable extra perspective to help take into accounts the things, good and bad, you may otherwise miss.
3. Extra Costs
It is easy to miscalculate the cost of living – especially if this is your first time living independently. It is essential to realistically budget for expenses such as council tax, gas, and electricity bulls, as well as boiler maintenance and possible home repairs.
4. Council Tax
The estate agent will be able to tell you which tax band your desired property is in, how much the charges are levied by the local authority.
5. Good Local Schools
One of the most desired traits of a property for first-buyers is that is close to a good local school. Apart from the obvious benefits, having a property close to a good school may also make your property easier to sell in the future should you decide to move, additionally it might also raise the purchase price…
6. Security Levels
It is always good to bear in mind that your car insurance premiums are likely to raise should you move from a property with secure parking to on-road parking, or if you move from a low crime area to one recognised as one with a higher crime rate. The same goes for contents insurance.
7. Public Transport Availability
Having direct train or bus links is a big want for commuters. Researching how close to, and the range of public transport services, will more than likely have an impact on your desired properties asking price, and selling price should you decide to move in the future.
8. Local Amenities
Make a list of the local conveniences you are used to or desire. How far from the closest supermarket will your property be? Are you close to a sports centre or gym? What is the night life like in the area?
9. Internet Availability
An internet connection has become an essential utility in the modern world, but not everywhere has a reliable or fast internet connect. It is worth researching who are your available providers and the best service you can get in your desired location.
10. Commutability
It is worth weighing up the cost of purchasing a home closer to your place of work against the cost of rising public transport. Commuting can be an expensive business if you decide to live further away from your place of employment.
Re-Mortgaging
You may re-mortgage your property for a number of reasons; the main on being to consolidate debt. Re-mortgaging means you ae switching to another deal, and usually another lender.
Re-mortgaging usually occurs after an introductory rate with your current lender has expired and you have found better deals or lower APRs on the market.
It is sometimes possible to switch your mortgage deal with your existing lender without extra costs, in fact many lenders allow you to switch reasonably often.
It is important you consider your financial situation before securing additional debt against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Adding short term debts to your home could increase the term over which they are paid, which will increase the overall amount payable.
Things to consider When Re-Mortgaging
If you decide to re-mortgage your property, you might have to pay an early repayment charge to your existing mortgage lender. If this is the case, we will notify you before you begin to make an application.
But you should beware, re-mortgaging is now always the best option. It may be tempting to chase a deal offering a lower APR elsewhere, but you must also consider:
They May Charge Fees
There is a chance the new lender may charge your fees for property valuation and solicitor services, even if you have already paid for these with your existing lender. With that said, many lenders offer incentives to entice customers to switch to them. These often include a free property valuation and solicitor service.
Overall Repayment Period
You could be distracted by the fact a new deal means you pay less monthly, but the repayment period may last longer than your current mortgage.
Buy To Let
Becoming a private landlord can be an incredibly rewarding decision, however it is fair to say that there is quite a lot you need to take into consideration before purchasing a property to rent.
The process can be riskier, more complicated and time consuming when compared to other investment avenues. And there is no guarantee of house prices rising.
However, over time, letting out a property to tenants can reap considerable financial rewards.
With that said, over time, letting out a second property to tenants can reap considerable financial rewards.
The Financial Conduct Authority does not regulate some forms of buy to let lending.
Three Main Differences in Buy To Let Mortgages
There are 3 main differences in securing buy to let mortgages compared to regular mortgages:
1. Rent Potential
Offering a buy to let mortgage is often decided on the rent you will earn in addition to your income. Sometimes your income is not even considered.
2. Interest Rate
Buy To Let Mortgages have slightly higher interest rates than normal.
3. Larger Deposit
Typically a minimum of 20% or 25% of the property’s value is required for deposit.
Additional Costs to Keep in Mind
As well as the monthly mortgage repayments, there are additional costs.
You should be aiming to receive a gross rent of about 135% of the rental property’s interest-only mortgage repayments. This is to cover your costs should anything go wrong. These additional costs include:
Property upkeep
Maintenance costs for the property, and if it is an older property, any renovation needed.
Letting agent’s fees
Usually this is around 10% of the monthly rent for finding and vetting tenants, with an additional cost of around 5% if you require a full management service.
Ground rent/service charges
Applicable to leasehold properties.
Legal insurance
To cover costs from evicting tenants in the event of non-payment. This is very important, as it can be very expensive.
Insurance
Building insurance and contents insurance for the items provided as part of the rental agreement.
Furnishings
Purchasing furniture can be expensive. If the property is to be let furnished, make sure you are covered for this by your home insurance.
Gas/electrical appliances.
Costs of maintaining the appliances and ensuring the comply with any regulations such as safety test.
Decorating costs
The property may require some work. Anything from painting to a new bathroom suite might be required before it is suitable for letting.
Call Us And Get Some Advice On Buy To Let Mortgages
Here at Marc Catry, we want to make sure you get the perfect mortgage for your buy to let property as a landlord. Feel free to book a consultation with out mortgage adviser in Tamworth to through your requirements and for some expert advice on the additional costs mentioned above, and anything else you require support on.
Moving Home
Moving home is as stressful as it is exciting. Uprooting and transplanting your entire life to a new home is naturally full of concerns and questions. Who is the best estate agent to go with in my desired location? Will I get a mortgage? Can I afford the mortgage repayments?
Our mortgage advisers in Tamworth can help you answer these big questions and provide you with all of the information you need to put your current home on the market, allowing you to take control of the process and make informed decisions armed with the right knowledge, and with expert advice available at every step of the way.
Moving Home Top Tips
Budget Planning
Moving home can be very expensive, what if estate fees, solicitor fess, stamp duty, valuation fees, mortgage advice fees, cost of removals… the list goes on and on.
Knowing what you need to budget for in advance means you can approach your move with the right financial state of mind so there are no unexpected nasty surprises later on.
Internet
In these modern times, having a stable and fast internet connection is highly desired, especially if you work from home. It is always worth seeing what providers can offer you in the area you wish to move to.
Schools
If you are planning to or have a young family, chances are you are planning to relocate to be in your chosen school’s catchment area.
Estate Agent
Choose your agent carefully, a good estate agent really can worth every penny, especially if things go wrong with the sale.
Traditional agent versus Online Agent
Both options have advantages and disadvantages, think about what's right for you.
Traditional Estates Agents
Typically charge more for their services, but are more involved in the selling process and have local offices for you and your buyers.
Online / Hybrid Agents
Typically, a much cheaper option, but they generally have far less interaction with you and your buyer during the selling process, you do more of the work and you tend to deal with a call centre, but you save £££'s on the fees.
Thinking Of Moving Home and Looking For Advice?
Moving home can be a stressful time, often full of paperwork and documentation that can be needlessly confusing if you do fully understand the questions being asked. Here at Marc Catry, our mortgage advisers in Tamworth offer professional mortgage and relocation advice. Call us today to book a consultation.
Help To Buy
Help to Buy
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