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Secured Loan, homeowner loan, or to give it its official title, second charge mortgage used to be known as last-resort lending.
They tend to be applied for by applicants who, for some reason, cannot or choose not to apply for a normal first-charge mortgage.
Secured loans are far more popular now as the rates on offer are much lower than previously available.
Before taking out a secured loan, it’s worth considering alternative options. For smaller amounts of borrowing, unsecured loans are also an option.
If you decide a secured loan is the way to go, it’s important to consider how affordable the loan repayments will be.
The three main options when looking at raising additional funds for your home are:
If you opt for a second charge mortgage your existing mortgage with your current Lender will stay in place the same as it is now. The extra funds will be with a different provider.
The second mortgage will be on a different rate of interest with a different direct debit. Some people run their second-charge loan over the same term as their main mortgage in order to keep repayments low.
There are lots of different reasons why people look to raise additional funds secured against their property. These could be for:
There are some typical reasons why a second charge mortgage may be more suitable than a further advance or remortgage advice in Leicester, you may:
When applying for a secured loan, a broker fee and a lender arrangement fee are normally payable and these can be paid upfront or you can elect to add them to the loan.
Please be aware that if you do add fees to the mortgage you will pay additional interest. You will also end up paying more interest back if you extend the term of any debts you are considering consolidating.
If you are securing debts that are currently unsecured you are putting your home at risk if you do not keep up the repayments.
As your initial fixed period of your mortgage approaches its end, it’s a good idea to start considering your options for a remortgage in Leicester. One of these options is a product transfer, which involves remortgaging with the same lender.
Product transfers might not be as widely known as traditional remortgages, especially if you’ve been doing your own research. The truth is that product transfers are becoming increasingly popular, and some may argue that they are just as, if not more popular than a full remortgage in Leicester.
A remortgage in Leicester involves securing a new mortgage with a different lender to replace your current one. This often leads to more attractive interest rates and reduced monthly repayments. To qualify for this new deal, however, you’ll need to submit the required documentation.
On the other hand, a product transfer allows you to stay with your current lender. This means that if your circumstances haven’t changed significantly, you likely won’t need to provide additional documentation. You can choose a new deal that you qualify for and have it replace your existing one hassle-free.
Opting for a product transfer can be highly appealing to homeowners for several reasons, starting with potential cost savings. Unlike a full remortgage, a product transfer eliminates the need for solicitors or property valuation fees, resulting in reduced expenses.
While arrangement fees might still be applicable, you may also avoid redemption fees or early repayment charges. Another advantage of a product transfer is the time and effort saved. Traditional remortgages in Leicester can sometimes take a while to complete, involving various paperwork and documentation.
With a product transfer, the lender is already familiar with your financial situation, making the process much quicker and more streamlined. This can lead to a smoother and easier experience overall.
On the other hand, some homeowners may prefer a remortgage in Leicester due to its inherent flexibility. Unlike a product transfer limited to your current lender, a remortgage opens up a wider range of options with potentially better deals available elsewhere.
Finding a much-improved interest rate can lead to significant long-term savings.
Moreover, a remortgage allows for the possibility of new terms, providing greater control over your mortgage arrangement. This flexibility can prove beneficial when planning for future remortgage processes.
One popular reason to opt for a remortgage in Leicester is to release equity from the property. By doing so, homeowners can access the difference between their outstanding mortgage balance and the property’s current value.
This released equity can be used to fund home improvements, contribute to the deposit for another property, or for other financial needs.
While product transfers may not accommodate equity release in the same manner, some lenders may offer a solution called a further advance, allowing additional borrowing on top of the existing mortgage.
To explore these options further and find the most suitable choice for your circumstances, consider seeking advice from a mortgage specialist.
In a product transfer scenario, where you are staying in the same property with the same lender, the need for a solicitor is usually bypassed. This streamlined process doesn’t require legal representation.
If you are considering adjustments to your mortgage terms, such as adding or removing a name from the mortgage, engaging a conveyancer or solicitor may become necessary to handle the legal aspects of the transaction.
Generally, a product transfer won’t require a credit check, although some lenders may have different policies.
The main reason for this is that the existing lender already has a history of your mortgage repayments and trusts you to fulfil your obligations. There are certain situations where a credit check may be necessary.
For instance, if you’ve encountered credit issues during your current mortgage term or if you are remortgaging with a different lender to release equity or pursue other financial goals, the new lender may conduct a credit check as part of their assessment process.
During a product transfer, it’s essential to consider your future plans, especially if you anticipate moving to a new home. Some existing mortgage deals may not offer the option to “port” your mortgage, meaning you can’t transfer it to a new property.
Opting for a remortgage in Leicester, on the other hand, can provide more flexibility. With a remortgage, you may find deals that allow you to port your mortgage, giving you the ability to transfer it to a new property if the need arises in the future.
This added flexibility can be valuable, especially if you have plans for potential moves down the line.
Our dedicated team of remortgage advisors is here to help you every step of the way. When you reach out to us, we’ll carefully assess your situation and understand your goals to find the best solution for you.
With access to a wide panel of mortgage lenders, we can offer you a range of competitive deals that suit your specific needs. Our priority is your satisfaction, and we go above and beyond to ensure a smooth and efficient process.
Rest assured, our commitment to your well-being means we won’t hesitate to suggest the best option for you, even if it means recommending a remortgage instead of a product transfer or vice versa.
Transparency and honesty are at the core of our service, and you can trust that we always put your interests first. Whether you’re considering a product transfer or a remortgage in Leicester, we’re here to provide valuable advice and guidance.
For a comprehensive review of your options and personalised remortgage advice in Leicester, don’t hesitate to book a free remortgage review with us. Let’s explore how we can help you in achieving your financial goals.
It can be unfortunate if you decide to part ways with your partner and are experiencing divorce or separation. It can also be a stressful time. This can be even worse if you factor if you have a joint mortgage together, as well as other finances.
Below we have collated just a few of the most common questions we get asked when we deal with customers in this situation who are in need of rearranging their mortgage commitments.
Whatever situation you are going through at this time, you are still required to keep up with paying your mortgage. This is still the case if you are living somewhere else.
You do still have an agreement with your now ex-partner to take on equal responsibility for your joint mortgage. Because of this, you are both equally liable for any debts until the mortgage is paid off, regardless of your situation and whether you are living there.
In the event that you do not pay your mortgage on time, you can be at risk of causing a lot of harm to both your and your ex-partner’s credit history. This applies the same if your ex-partner doesn’t pay on time, you will be affected.
This can result in the risk of your home being repossessed if you carry on failing to meet your monthly repayment date or any other debts that you have secured on it.
When your separation is finalised, you must contact your lender as soon as possible to let them know. This is even more important if you will struggle to meet your monthly mortgage payments.
In the situation where both of you have decided to move out of the property, sell up and pay off your remaining mortgage balance, any equity left over will be given between you both.
It is something to discuss between you and your ex-partner on who gets what from that remaining equity.
Here at Leicestermoneyman, we have a team of expert Mortgage Advisors in Leicester who can help if you are looking to move out and are looking at your option for purchasing a new home under a sole name.
Your dedicated advisor will work hard to find you the most suitable mortgage deal for your situation as well as provide you with the appropriate Mortgage Advice in Leicester.
In the case where a homeowner has separated from their now ex-partner but is on good terms with them, they sometimes opt for staying within the property and will carry on paying off the remaining mortgage amount.
As long as it works with your personal situation, this can be a convenient route to take, especially for those with a fixed-rate mortgage term.
Taking a remortgage in Leicester out in either your own name or your ex-partners can be helpful if you or your partner decides to remain to live in the property.
Being the sole owner of the property means you will need to take out a Remortgage if there is still an outstanding mortgage to pay off in both you and your ex-partner’s names.
This will work by the new mortgage being in your sole name and will involve the lender carrying out another assessment of your affordability.
It can be possible for someone to have more than one mortgage, however, this all comes down to circumstance. You will find that credit scoring systems can majorly vary from lender to lender. Applying for a second mortgage would mean you will be analysed on a number of factors.
Looking at your current financial commitments is one of the main factors they will look at. This is why you need to be confident that you can afford a second mortgage along with the financial commitments you have.
You need to be certain about being able to afford a second mortgage because being declined for this could have a negative impact on your credit file.
Here at Leicestermoneyman, we have an expert team of mortgage advisors in Leicester who are able to help you out with credit searches that will have less of an effect on your credit file.
When our team has collated the necessary information, you will be able to get an idea of the maximum mortgage amount you could borrow.
By doing this, you will be able to know more about your budget and an estimate of the amount your monthly mortgage payments will be along with your current financial commitments.
Getting away from your current financial commitments can be a tough process which is why having a trusted mortgage advisor in Leicester by your side is beneficial as they will be able to provide a helping hand throughout the process.
If you are moving home in Leicester, you may find the experience stressful, especially those going through a divorce or separation. Contact a mortgage advisor in Leicester today and our team will be more than happy to see how they can help.
When you get divorced in a home that both own jointly is in negative equity, it can be challenging to sell the house and pay the remaining mortgage balance off.
In terms of the remaining debt, you may need to divide this between the two of you or come to an agreement with your current mortgage provider.
Some key points we would like to make as to why to use a mortgage broker in Leicester, we believe there are a lot more positives if you came to us rather than going straight to a mortgage lender.
Considering this, it’s worth exploring your options, and we find that most people use a mortgage broker in Leicester. However, this article will balance the pros and cons of both options.
A mortgage broker in Leicester like us, likely charges a broker fee on top of other costs, whereas Lenders don’t require this payment saving you money.
You argued that “The Bank Manager knows my finances inside out,” but when credit scoring came in those statements were made redundant, you might find that the Lenders offer exclusive direct deals.
They did this to attract businesses from both consumers and brokers alike. These deals are sometimes available only via the mortgage broker and not the branch.
Back in the day, lenders would be allowed to let any member of staff away from you towards a potential mortgage (that likely wouldn’t benefit you), without any proper mortgage advice or consumer protection.
By 2014 this got banned, with only experienced mortgage advisors allowed to provide mortgage advice and make recommendations for their products; customers ended up waiting on an extended period just for an initial appointment.
Sometimes this can happen, which isn’t great when you’ve had an offer accepted for a property. With issues like this applications via mortgage brokers started to climb.
We offer same-day service, aiming to put you through to a qualified mortgage advisor in Leicester within the same day or immediately after making a call.
Now the challenge is finding a lender whose criteria and features can be personalised based on your circumstances. Bear in mind, though, that the deals with the lowest rates tend to carry arrangement fees.
No matter how good a Lenders deal is, you’ll have to take note of the affordability, and this is such a big deal. Many people choose to go with a mortgage broker in Leicester as we can compare the criteria and find something tailored to your circumstances.
These days, thanks to regulations post credit crunch, mortgage applications are no longer straightforward. There are a variety of things that could potentially be a hindrance when you’re making your application. These can include:
Over the years, mortgage lenders would show their competitive side, often trying to offer better deals than the next Lender. Nowadays, because of tightened margins, their differences come from their lending criteria.
Examples of these include the amount some would lend to the self employed compared to others, as well as being slightly more lenient to previous adverse recordings on your credit report.
Whatever the situation, it is unique to you. When you explain this to an experienced mortgage broker in Leicester, they will likely have encountered something similar before. Hopefully, they’ll use this experience to recommend the most appropriate mortgage for you at the lowest rate available to you.
Our service we go above and beyond to our customers, they rely on us, even if the application is straightforward. We can discuss how much they’re planning to offer on a property, recommend services such as solicitors and property surveys, and go through any available protection.
Another significant aspect of the service a mortgage broker in Leicester provides is the ability to be more responsive than the lenders’ direct propositions. Out of hours and weekends, appointments are commonplace, as are our mortgage advisors in Leicester working late in the evening to respond to customers’ emails.
Overlooked factors on why most applicants prefer a mortgage broker are that everyone seems to be busy, and you just might need someone to handle the full transaction and take away your stress. Professional applicants will see the benefits of this as they have clients of their own that they’re able to charge their services.
Maybe in the future, lenders will want to take back more clients from brokers. If this happens, it’s relatively unlikely they’ll staff up their branch networks. It’s more than likely they will make investments in technology to transact with customers online.
As a mortgage broker in Leicester, we are able to help all kinds of homebuyers. If you are a first time buyer in Leicester, looking at moving home in Leicester or are a landlord looking to invest in a buy to let in Leicester, we are here to help!
Book your free mortgage appointment with a mortgage advisor in Leicester online today.
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Leicestermoneyman.com & Leicestermoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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Leicestermoneyman.com & Leicestermoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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