The Pros & Cons of Using a Mortgage Broker in Halifax
Taking your first steps into the world of mortgages, whether you’re a first time buyer in Halifax, a home mover, or a buy to let landlord, can feel like a daunting task.
The myriad of options available might leave you wondering about the best path to take. Ensuring that you make the right choice from the start can save you both time and money.
No matter your mortgage aspirations and individual circumstances, our dedicated and approachable service aims to guide you seamlessly through your mortgage journey.
We understand that the mortgage process can be intricate, and we hold strong confidence in our ability to help our customers, providing expert mortgage advice tailored to both new and existing clients in Halifax.
This article compiles a comprehensive overview of the advantages and disadvantages associated with seeking assistance from a mortgage broker in Halifax. It aims to shed light on why many individuals prefer turning to us for reliable mortgage advice in Halifax.
Why use a mortgage broker in Halifax?
Cost-Effectiveness
Many individuals assume that by directly searching for and securing their own mortgage deal, they will inevitably save money. This isn’t always the full picture, however. While some mortgage brokers in Halifax might charge a fee, this cost varies based on your circumstances and the chosen company.
If you possess ample knowledge and have a straightforward case, you might find it easier and more cost-effective to proceed independently. Yet, the situation could become intricate based on your specific circumstances. In such cases, seeking guidance from a mortgage broker in Halifax becomes valuable.
Lacking in-depth knowledge might lead you to select an inappropriate deal or face difficulties in your mortgage application process. Either scenario could potentially result in unnecessary expenditure or harm your credit score, impacting your future mortgage prospects.
Having a dedicated mortgage advisor in Halifax at your side ensures their commitment to helping you attain your mortgage objectives. Their aim is to provide the right recommendation from the outset, at an optimal price point.
While this might involve a service fee, it could ultimately translate into substantial overall savings.
Local Bank Branch Relationship
Loyalty has historically driven many customers to approach banks directly, reflecting the way the mortgage process used to operate.
In the pre-technology era, individuals would frequently visit their local branch, often interacting with the same staff member. Back then, securing assistance from the bank manager, who held a comprehensive understanding of one’s finances, was a common practice.
In terms of the mortgage procedure, the optimal approach involved having the bank manager personally review and approve your mortgage application.
This provided the advantage of receiving personalised guidance and support from an expert who possessed a deep grasp of your financial situation. The landscape has significantly transformed with the advent of digital technology and online banking.
Presently, the mortgage process functions quite differently, largely due to the digitisation of credit scoring. The bank manager’s direct involvement in evaluating your case has been replaced by a sophisticated online system.
This system determines your eligibility for a mortgage by analysing various factors. Importantly, this digital approach is unbiased and applies uniformly, irrespective of the specific bank you are associated with.
Exclusive Mortgage Products
Many believe that you are open to better, exclusive offers by going directly. Again, this is true, though, it can be limited. That is because they only offer their company the best deals.
Not all mortgage lenders are banks, and there are many more options available. Therefore, the deal that the bank considers suitable for you may not be the best deal beyond the bank you could have gone with.
Getting specialist mortgage advice in Halifax can be the best way to get a competitive deal that is suitable for you. One of our expert mortgage advisors in Halifax will be able to go through your case and find you the best deal from our large panel of lenders.
This is another advantage of approaching a mortgage broker in Halifax rather than just a bank. After the topic of deals, you can find approaching a mortgage broker in Halifax can provide you with exclusive deals that you cannot find anywhere else.
There will be a broad range of options when you are with a mortgage broker regardless of if you are a first time buyer in Halifax, moving house, or looking to remortgage in Halifax.
Changes to Regulation & Consumer Protection
The aftermath of the 2007-08 credit crunch necessitated significant reforms within the mortgage market. One pivotal change emerged through the 2014 Mortgage Market Review, which directed lenders to refrain from selling mortgages to customers without comprehensive expert guidance.
Consequently, the days of simply walking into a bank and obtaining a mortgage without thorough checks were put to an end. The process was no longer as straightforward, as not every bank employee possessed the authority to grant mortgages.
This rectified a common occurrence where individuals, regardless of their qualifications, could authorise mortgages. Beyond these alterations, the changes ushered in a layer of consumer protection that was previously absent from traditional bank interactions.
Today, a dissatisfied customer can seek recourse by lodging a complaint with the Financial Ombudsman or making a claim through the Financial Services Compensation Scheme.
These reforms have instilled a sense of security for customers, ensuring that they receive proper guidance and protection throughout their mortgage journey. This newfound assurance applies uniformly to both mortgage brokers in Halifax and lenders.
Book an Appointment with a Mortgage Advisor in Halifax
Opting for a bank over a mortgage broker in Halifax comes with its own drawback, particularly in terms of timing. Engaging with a bank often involves waiting for months to speak with a representative. Additionally, throughout the process, updates can be infrequent and lacking.
At Halifaxmoneyman, we pride ourselves on our responsiveness. Our dedicated team reaches out to you at your convenience, accommodating your schedule and daily routine.
Our mortgage advisors in Halifax are available seven days a week, from early morning to late evening, even on weekends and certain bank holidays.
While some scenarios might allow for same-day appointments, this isn’t always the norm. We respect your readiness and availability, ensuring that you can engage with us at a time that suits you best.
Recognising the diversity in our clients’ lifestyles, our mortgage advisors in Halifax maintain extended availability beyond traditional 9-5 hours, including weekends. Our user-friendly online booking system allows you to easily schedule a conversation with a mortgage advisor in Halifax.
Responsiveness stands as a cornerstone of our service philosophy. Whether you’re embarking on the initial steps or nearing the conclusion of your mortgage journey, our approachable team will keep you well-informed.
Should any changes arise, your dedicated mortgage advisor in Halifax will promptly reach out to you. It’s this commitment to providing exceptional service that makes mortgage brokers in Halifax, like us, a preferred choice.
The popularity of such experts over national banks is a testament to the value we offer to the public.
Handling of Complex Scenarios
Our wealth of industry experience has revealed that certain cases present more complexity than others. Below, we outline scenarios that deviate slightly from the norm:
- Mixed Deposit: This involves assessing two distinct sources, such as a gifted deposit and savings.
- Zero Hour Contract Workers: The consistency of income becomes a pivotal concern.
- Second Purchase Intentions: Evaluating affordability for an additional property purchase.
- Self Employment without Fixed Income: Self employed individuals in Halifax face unique challenges.
- Poor Credit History: Past mismanagement could impact the lender’s view of the applicant.
- Affordability Assessment: The fundamental question is whether the applicant can afford the mortgage.
In the past, mortgage lenders competed primarily through enticing deals. The landscape has shifted, focusing more on whether applicants meet specific criteria.
While a cheaper deal might be available, it might not align with your requirements. To ascertain your mortgage eligibility, lenders conduct a hard search, which leaves a footprint on your credit file.
It’s worth noting that if you apply for a mortgage, and a lender declines a deal in principle, this could negatively affect your credit file. The frustrating aspect is the lack of transparency in receiving a rejection reason, which can leave applicants perplexed.
Agreement in Principle
Mortgage advisors in Halifax possess the expertise to thoroughly review your situation and provide guidance on enhancing your acceptance prospects.
Leveraging an extensive network of lenders, they can identify the most fitting deal that aligns seamlessly with your criteria. Subsequently, they initiate the process of securing an agreement in principle tailored to your needs.
When obtaining an agreement in principle through Halifaxmoneyman, you can expect it to be arranged within 24 hours following your complimentary mortgage consultation.
It’s essential to note that this preliminary agreement doesn’t automatically translate into a guaranteed mortgage at the conclusion. It does contribute to safeguarding your credit file by having a specialist review it beforehand.
Our team of dedicated mortgage advisors in Halifax is committed to delivering accurate recommendations from the outset.
Should I use a Mortgage Broker in Halifax?
When it comes to choosing between a mortgage broker in Halifax and going directly, there are pros and cons to both options. The decision often boils down to the speed of service you desire and the level of security you prioritise.
As a dedicated mortgage broker in Halifax, our extensive experience encompasses a diverse range of clients embarking on their mortgage journeys.
Whether you’re a first time buyer in Halifax taking that initial step into the mortgage realm, an individual nearing the end of a fixed term, or someone considering a remortgage in Halifax, our team is ready and willing to help.
Schedule a free mortgage appointment or a remortgage review to engage with a knowledgeable mortgage advisor in Halifax. Our team is committed to helping you achieve your mortgage objectives, with flexible availability tailored to your schedule, subject to availability.
To gain deeper insights into our service, explore our exceptional customer reviews that showcase the consistently high level of service we provide to our satisfied clients.
You can also find valuable information on our YouTube channel, MoneymanTV, if you’re seeking further understanding of the mortgage landscape.
What Are The Different Types of Property Survey in Halifax?
Whether you’re taking you’re a first time buyer in Halifax or considering a remortgage in Halifax, ensuring you have a thorough property survey is crucial.
With our team of knowledgeable mortgage advisors in Halifax, we are here to guide you in choosing the most suitable survey option for your specific needs.
A property survey provides valuable insights into the condition of the property you’re interested in, helping you make informed decisions and identify any potential issues or hidden costs.
Our experienced advisors understand the local housing market in Halifax and can recommend the right type of survey to protect your purchase.
From basic valuation surveys to more comprehensive homebuyer reports or even full structural surveys, we can assist you in selecting the survey that matches your requirements and budget.
Our goal is to ensure you have a clear understanding of the property’s condition and any necessary repairs or maintenance, allowing you to negotiate confidently and avoid unexpected expenses down the line.
By working with our team of mortgage advisors in Halifax, you can benefit from our expertise, personalised guidance, and access to a network of trusted surveyors.
We’ll be by your side throughout the process, providing support and ensuring you have the information you need to make informed decisions about your property purchase or remortgage in Halifax.
Mortgage Valuation
When applying for a mortgage, it’s important to understand the valuation process conducted by the mortgage lender to determine the property’s value and assess the associated risks.
There are two main types of valuations: physical valuations and automated valuations, each with their own benefits and considerations.
Physical valuations involve a professional surveyor visiting the property to conduct a thorough assessment of its condition. This type of valuation is particularly useful if the property has undergone recent renovations or if you want a detailed analysis of its structural integrity and overall state.
A physical valuation provides a more comprehensive understanding of the property’s value and any potential issues that may affect its market worth. On the other hand, automated valuations rely on online databases that compare the property to similar ones in the area.
These valuations are usually faster and more cost-effective, making them a popular choice for mortgage lenders. That said, they may not capture unique features or specific conditions of the property, potentially leading to less accurate valuation results.
It’s worth noting that some mortgage lenders may offer a free valuation as part of their mortgage package, while others may charge a fee for the service. The availability and cost of valuation vary among lenders, so it’s important to inquire about this when exploring mortgage options.
Homebuyer Report (Level 2)
When considering purchasing a property, it’s highly recommended to obtain a homebuyer report to ensure its safety, quality, and compliance with current UK property laws.
A homebuyer report provides a detailed assessment of the property’s condition, highlighting any potential issues or legal concerns that need attention before making the purchase.
During the inspection, a qualified surveyor will thoroughly examine every room in the property, carefully checking for any visible problems that may require further investigation or immediate action.
This includes identifying issues such as dampness, mould, structural defects, roofing problems, plumbing or electrical issues, and any signs of subsidence. The surveyor will also assess the property’s compliance with building regulations and ensure it meets safety standards.
It’s important to note that a homebuyer report is more comprehensive than a basic mortgage valuation and, as a result, it does come at an additional cost.
Some mortgage lenders may offer the option to include a homebuyer report as part of their mortgage package, while others may require you to arrange it independently. In the latter case, you have the flexibility to choose an accredited surveyor of your choice to conduct the homebuyer report.
It’s worth mentioning, however, that a homebuyer report may not be suitable for certain types of properties.
Listed buildings, older properties with unique characteristics, properties that have undergone extensive modifications, or those in need of significant renovation or modernisation may require more specialised surveys, such as full structural surveys, to assess their condition thoroughly.
Obtaining a homebuyer report provides valuable insights into the property’s condition, potential issues, and legal compliance, enabling you to make informed decisions and potentially avoid unexpected expenses in the future.
Consulting with a trusted mortgage advisor in Halifax or surveyor can help you determine the most suitable type of survey or report based on the specific characteristics and requirements of the property you’re considering.
Building Survey (Level 3)
A building survey is the most comprehensive and detailed type of property report available, making it suitable for all types of properties and particularly beneficial for older ones.
This type of survey provides extensive information about the property’s condition, highlighting necessary repairs, potential upgrades, and any legal issues that need attention.
During a building survey, a qualified surveyor conducts a thorough examination of the property, inspecting its structure, foundations, roofing, walls, floors, and services.
This in-depth inspection helps identify any defects, structural issues, or areas of concern that may require immediate or future attention. The surveyor will provide expert advice on how to address these issues, offering recommendations for repairs, maintenance, or improvements.
The building survey also includes valuable information about the property’s construction, including details about materials used, construction methods, and any visible signs of deterioration or damage. It may comment on the property’s energy efficiency and provide insights into its overall condition.
It’s important to note that due to the level of detail and comprehensive nature of the building survey, it typically comes with a higher price tag compared to other types of surveys.
While your mortgage lender may not directly offer a building survey, you can inquire about adding it as an additional service to the valuation, usually at an extra cost. It’s worth mentioning that a building survey generally does not include a market valuation.
However, if you require a professional assessment of the property’s market value, you may be able to arrange it as an additional service at an extra cost.
Opting for a building survey ensures that you have a thorough understanding of the property’s condition, enabling you to make informed decisions about repairs, negotiations, or future investments.
Consulting with a reputable surveyor or seeking advice from a mortgage advisor in Halifax can help you determine if a building survey is necessary for the property you’re considering, based on its age, condition, and individual requirements.
Specialist Property Surveys
During a homebuyer report or building survey, it is possible that certain issues or concerns may be identified that require further investigation. In such cases, it may be necessary to obtain a specialist property report that focuses on specific areas or aspects of the property.
There are several types of specialist surveys and reports available to address specific concerns. For example, if damp or timber-related issues are detected, a damp and timber report can provide a detailed assessment of the extent and cause of the problem, along with recommended solutions.
Similarly, a roof survey can evaluate the condition of the roof and identify any potential issues or repairs needed. Other specialised reports include those for drains, gas installations, electrical systems, asbestos, central heating, and more.
If any of these specialist reports are required, our team can assist you in finding a local contact who specialises in the specific area of concern.
Having access to experienced professionals who can conduct these detailed assessments will provide you with a comprehensive understanding of the property’s condition and help you make informed decisions about necessary repairs or further negotiations.
By obtaining the appropriate specialist reports, you can gain a deeper insight into specific issues and ensure that any potential risks or hazards are properly addressed.
Our team is here to support you throughout the process and help you connect with the right experts to obtain the necessary specialist property reports.
What Does a Mortgage Broker in Halifax Do?
A mortgage broker in Halifax is a professional who arranges and negotiates mortgage loans for customers. In Halifax, a mortgage broker in Halifax provides services to homeowners, home buyers, and landlords who need mortgages for their properties.
A mortgage is a loan that is secured against a property, and it is repaid through monthly payments over several years.
Roles of a Mortgage Broker in Halifax
Although homeowners, home buyers, and landlords can search for and arrange mortgages themselves, many choose to hire a mortgage broker in Halifax for the range of services they offer. This is especially the case with first time buyers in Halifax.
A mortgage broker in Halifax can cross-reference customers’ information against thousands of mortgage products from multiple lenders, while banks limit customers to their own deals. Mortgage brokers in Halifax can also provide exclusive deals not available elsewhere.
Mortgage brokers in Halifax perform a variety of jobs before, during, and after the mortgage process. These jobs may vary between mortgage brokers.
For example, some mortgage brokers in Halifax offer a limited supply of niche mortgage lenders, while others provide a broader range of lenders, known as the whole-of-market.
Additionally, mortgage brokers in Halifax may recommend suitable insurance options to ensure homeowners can remain in their homes, regardless of what happens.
Before Applying for a Mortgage
At the start of the mortgage process, customers typically speak with a mortgage broker in Halifax’ appointment booking team to schedule an appointment with a mortgage advisor in Halifax.
Alternatively, many mortgage brokers in Halifax, such as ourselves, offer a user-friendly appointment booking system on their website for telephone or video calls.
During the appointment with the mortgage advisor in Halifax, customers provide additional information to help the mortgage advisor in Halifax understand their situation and find the most suitable mortgage deal.
Brokers may offer a limited supply of niche mortgage lenders or a larger panel of mortgage lenders. After recommending a deal, the mortgage advisor in Halifax can provide an agreement in principle within 24 hours.
Customers may also need to submit various documents, such as proof of identity, income, deposit, and VISA or right to work in the UK for foreign nationals.
During the Mortgage Application
After submitting documents, the mortgage broker in Halifax verifies them and provides a mortgage illustration that details the agreed deal.
The mortgage broker in Halifax also acts as an intermediary between the customer and the mortgage lender, handling communication and paperwork to ensure a smooth mortgage application process.
After Your Application
Once your mortgage application has been submitted, the mortgage broker in Halifax’s role changes somewhat. Now, the focus will be on liaising with your chosen mortgage lender to get your application processed as quickly as possible.
A mortgage broker in Halifax will generally have a dedicated processing team who will ensure your application is processed as quickly as possible, and will also be your primary point of contact throughout the process, should you have any questions or concerns.
Your mortgage advisor in Halifax will also be there for you if you have any queries or questions as well, but if it’s a specific question about your application, the processing team will be the ones to speak to.
Once your application has been approved, you’ll move on to the next stage, which is the exchange of contracts. This is where you and the seller of the property sign the contract that legally binds you to the purchase.
You’ll also need to provide your deposit at this point, which is usually a percentage of the purchase price (typically 5-10%). Your mortgage lender will then provide the funds for the rest of the purchase price.
Following exchange of contracts, you’ll enter the completion stage. This is when, if you’re moving home in Halifax or are a first time buyer in Halifax, the purchase is finalised and you become the legal owner of the property.
Your mortgage lender will transfer the funds to the seller’s solicitor, and once received, the seller will leave the property and hand over the keys to you.
Whilst it’s unlikely that you’ll need to contact your mortgage broker in Halifax during this final stage, they’ll still be there to help if you need them. For example, if there are any last minute issues with the transfer of funds, they’ll be able to help you in resolving them.
In Conclusion
So, as you can see, the role of a mortgage broker in Halifax goes beyond just finding you the best deal. They’re there to help you every step of the way, from the very beginning of the process, right through to completion.
They’ll help you to find the most suitable mortgage for your needs, and will ensure that the process is as smooth and stress-free as possible.
So if you’re looking for a mortgage broker in Halifax, be sure to choose one that offers a wide range of services, and has a team of experienced and knowledgeable mortgage advisors in Halifax who can guide you through the process.
The Different Types of Mortgages Explained
Mortgage Advice Covering The Different Types of Mortgages
Whether you happen to be a First Time Buyer in Halifax hoping to find your footing on the property ladder, or you are currently Moving House in Halifax, it will become apparent soon enough that there are many different types of mortgages for customers to utilise.
There will be some options that are more popular than others, whilst some may be less common to come across. We have put together a comprehensive list of the different mortgage types we come across the most.
You can watch many more Helpful Mortgage Guides on moneymanTV here or go directly to our “Mortgages Explained” YouTube playlist here.
What is a Fixed-Rate Mortgage?
A fixed-rate mortgage allows for a customer to keep their mortgage payments consistent for a that your mortgage payments are going to remain consistent for a chosen period of time.
You have full control over the length of time in which you can fix your payments for, with people typically choosing 2, 3 or 5 year fixed rates, though possibly longer.
Regardless of any changes to the economy, inflation or interest rates, you can stay comfortable in your home knowing that your mortgage, arguably your biggest ever financial commitments, will stay the same for your fixed period.
What is a Tracker Mortgage?
A tracker mortgage is where the interest-rate of your mortgage will follow along with the Bank of England’s base rate.
To simplify this for you, the mortgage lender that you end up with will not be the one to choose your interest-rate, and you won’t be deciding that either.
Instead, the interest-rate on your mortgage will be set at a percentage above the Bank of England base rate. For example, if the base rate is 1% and your mortgage is tracking at 1% above base rate, you will be paying a rate of 2%.
What is a Repayment Mortgage?
A repayment mortgage is the standard type of mortgage you will come across, paying back both a combination of interest and capital each month.
So long as you continue paying your mortgage per month, for the duration of your mortgage term, you will be guaranteed to have paid off your mortgage balance in full by the end of your term, owning the property.
This is all considered to be the most risk-free way to pay back the capital on your mortgage balance. In the early stages of your mortgage term, you’ll mainly be paying back the interest, with your balance reducing slowly, especially with a 25-30 year term.
Your mortgage will alter slightly towards the last ten years or so, as you will be paying off much more capital from your balance than you will be with interest, meaning your balance will come down a lot quicker.
What is an Interest-Only Mortgage?
Though you will see a lot of modern buy-to-let mortgages being set up as interest-only mortgages, it is a lot more difficult to obtain a residential interest-only mortgage.
It is not entirely impossible, though it is a lot harder to find these, as mortgage lenders may not offer these to customers.
They do become helpful though in relevant situations, such as potentially downsizing when you are only, or if you have external investments you can use to pay back the capital on the mortgage.
There are much stricter rules with interest-only mortgage products these days, with the loan-to-values on these being much lower than they would be in the past.
What is an Offset Mortgage?
By taking out an offset mortgage, your mortgage lender will be assigning a savings account to you, to run alongside your mortgage term.
The way that this works is that if you were to have a mortgage balance of £100,000 and £20,000 is deposited into your savings account, you would only be paying interest on the difference between that, which would be £80,000.
This is often considered to be a very efficient way of managing your money, especially if you are paying higher rates of tax.
A Guide to Remortgages in Halifax: Top Reasons to Consider
The mortgage journey can come with its ups and downs, however, it can be fulfilling. Going through the process turn into one of the following positive outcomes:
- You are now settled in your dream property, and are maybe looking to start a family.
- A step up to progressing further up the property ladder.
- Getting an extra income through an investment purchase
Whatever route you go down, in the future, you will eventually come to the end of your mortgage term. You can either sell up and upsize/downsize into a new property.
Remortgage is a popular option for customers who are looking to sell their portfolio to the tenant or another buyer and look at other opportunities.
What Is Remortgage?
In the case where you use the proceeds from a new mortgage to pay off a pre-existing mortgage, this is a Remortgage. It can be beneficial when you are looking to find lower interest rates and better mortgage terms.
With the 20 years or so experience with Malcolm Davidson (Director / Mortgage Advisor), we felt it would be helpful to collate all the options you can choose from when it comes to taking out a Remortgage and create a guide.
Remortgage for Better Interest Rates
Typically, your initial mortgage deal will usually last 2-5 years and include low fixed rate or possibly discounted rates. You might get placed on a tracker mortgage which means your mortgage will follow the Bank of England’s base rate.
It’s likely you will get moved along to the lenders Standard Variable Rate (SVR) as soon as your term ends. This type of mortgage has an interest rate that can fluctuate because it depends on what the lender wishes to charge.
Unlike a tracker mortgage, this doesn’t follow the Bank of England’s base rate. Many choose to look at Remortgaging for better rates to save money on their monthly payments due because SVR and tracker mortgages are a more expensive route to choose.
Remortgage for Home Improvements
You might find that 2-5 years into occupying your home that something isn’t quite right. It could be you are wanting an extra room/larger living space for your kids/belongings, a new kitchen, a new office or loft conversion.
Instead of moving into a larger house, it might be best you look into advice in order to release equity so you can fund any renovation costs. Obtaining planning permission and funding can seem like a nerve-wracking concept, however, it can be a less stressful option compared to finding a new home.
Furthermore, it can reap rewards when going through the process of a development in your current home and can pay off in the future with a potential increase in the value of the property if you look to sell up or rent out in the future because of the expansion of space.
Remortgage for Changes to Your Term
Another reason why some may look into Remortgage in Halifax is for a better mortgage term through reducing the length or switching to a more flexible product.
Even though reducing the size of your term can mean you aren’t tied down to your term for as long, it does mean your monthly repayments will be a lot higher. The longer your term, the lower the payments will be over time.
In some cases, you might look into getting a better mortgage term by looking into a more flexible mortgage term when they remortgage. This option can be appealing to many homeowners because of the benefits like having the option to overpay.
Furthermore, homeowners also have the ability to move the same mortgage and rates over to another property if they decide to move at any point in the future. As mentioned, you are able to overpay which means you can pay off your mortgage as quickly as you’d like.
Despite a flexible mortgage sounding a lot more appealing, they usually come in the form of a tracker mortgage. Again, this type of mortgage follows the Bank of England base rate which means your payments may change depending on interest, this can make them a little unreliable.
Remortgage to Release Equity
There is a level of equity in everyone’s properties. This is summed up by finding out the difference between the remaining total on the mortgage, and the current value of the property.
As mentioned previously, you do have the choice to use the equity to fund home improvements, however, there is a number of options out there for you.
Other options you could use the equity to cover long-term care costs, so cover their income, to pay off an interest-only mortgage, or to have free spending money.
Sometimes, Buy to Let landlords will use a remortgage to release equity so they can cover their deposit for buying another property in the future as an addition to their portfolio.
For homeowners who are aged 55+, with a property worth at least £70,000, it may be beneficial to take a look at your options for Equity Release in Halifax. Speak to a trusted later life mortgage advisor to learn more about later life lending.
Remortgage to Consolidate Debt
Using a remortgage to release equity in order to pay off any unsecured debts that you may have accumulated over time is a more popular options people go for.
Debt Consolidation is based on your credit rating as well as amount on how much you’re entitled to and the value of the property. Furthermore, this could result in the limitation of the amount you can have.
In order to pay off your previous mortgage and your debts, it’s required that you borrow more than your outstanding mortgage amount. Either way, your monthly repayments will most likely be higher.
As much as this isn’t the most perfect situation, it’s very helpful that the option is out there should an unfortunate situation arises.
There is options out there is you do have a significantly damaged credit rating, however, this situation will not be as simple. Therefore, it’s important that you seek Specialist Remortgage Advice in Halifax before progressing.
Even doing this doesn’t mean it’s guaranteed. Before consolidating and securing any debts again your home, you must seek Mortgage Advice in Halifax.
Experienced Mortgage Advisors in Halifax – Get in Touch Today
If you are coming to the end of your term and are wanting to look into the option available for Remortgaging, get in touch with an open and honest Mortgage Broker in Halifax.
Having an advisor by your side can allow you to discuss your situation and future in order to get the best plan of action when going forward on your mortgage journey. We always work hard to make this process quick and smooth.
Product Transfer V Remortgage Advice in Halifax
What is a product transfer?
When your introductory mortgage deal comes to an end your mortgage lender may offer you a new deal to stay with them, this is known as a product transfer.
Are you rewarded for being loyal?
Unfortunately, lenders do not always reward your loyalty and the offer they make you may not be competitive with deals you could get elsewhere. Even more annoyingly, these product transfer rates are not as good as the deal they offer new customers either!
Tempted by an online switch?
Whilst swapping to a new deal with your current lender may well be fairly easy online, it is always in your interest to see what other deals you may be eligible for. Lenders will also tempt you to effect a new deal online without taking advice.
This can be really dangerous because if you do this without advice you are waving goodbye to all the valuable consumer protection you would otherwise have benefitted from.
You’ll be opting out of advice
We have seen numerous examples of customers affecting these “follow-on” deals and locking themselves into an inappropriate deal. Because they opted out of advice then they have waived a lot of their rights in terms of making a complaint.
We did have a recent case where a customer who was pregnant did this and was declined for a small further advance to fund some necessary home improvements a few months later. She then had to pay a hefty early repayment charge to swap to a new lender who would grant her the additional funds.
Always, always, always get mortgage advice
If we think a product transfer is the most suitable deal for you we will recommend that as a course of action for you and if we arrange the mortgage for you as a mortgage broker then all the regulation and consumer protection will apply.
In short, even if your requirement seems straightforward we recommend you always take advice – a second opinion costs nothing and making a mistake when taking a new product can be costly.
The remortgage market is highly competitive and savings can generally be made by searching the market for a new deal. This is why it might be within your best interests to speak to a Remortgage Advisor in Halifax. they will support you through the whole remortgage process and help you find that 1/1000 amazing mortgage deal!
