Remortgaging When House Value Has Increased in London

Owning a property, be it a family home or a buy to let in London, is considered an investment that goes beyond just providing a roof over your head. It is a valuable asset that can be sold or passed down to future generations.

Given the constantly fluctuating property market, there may be times when property prices rise significantly. During these peaks, it may be wise to consider your options for a remortgage in London.

By doing so, you may be able to access more favorable loan to value ratios, resulting in better interest rates and terms.

What is a loan to value and why do people remortgage in London for a better one?

Loan to value (LTV) is a percentage of the property’s open market value, versus the amount of mortgage you are looking to borrow. For example, if you purchase a property for £100,000 with a deposit of £10,000 (10%), you will require a 90% LTV mortgage.

Mortgage lenders offer different brackets or tiers of LTV, typically ranging from 60% to 95%. The LTV brackets available vary depending on the mortgage lender.

Lower LTV mortgages generally offer more competitive interest rates. For instance, if you had a lower LTV, such as 73% in the example above, you might be able to obtain a more competitive interest rate when remortgaging in London.

Other factors, such as market conditions, can also affect the interest rate when remortgaging. The lower the LTV, the less risk you pose to the mortgage lender, which is why lower LTV mortgages usually offer more competitive rates.

How do I find out the value of my property?

To access better rates and terms when remortgaging in London, it’s important to determine the current value of your property.

This can be done through a valuation, which is necessary when switching to a new mortgage lender. The mortgage lender will want to know the value of the property they will be lending against to assess their risk.

There are two types of property valuation: an Automated Valuation Model (AVM) or a physical valuation.

An AVM is a database that cross-references similar properties in the area to determine the value, while a physical valuation involves an inspector coming to your home to assess its true value.

If you’ve made any home improvements or extensions that an AVM could miss, a physical valuation would be more accurate. You can discuss this with your mortgage advisor in London during your free appointment.

Remortgage in London to Release Equity When Home Value Has Increased

Whilst the equity that you have sitting in your home can oftentimes be utilised as a means of accessing better deals, you may instead want to take out a remortgage in London, so that you can release the equity. There are lots of reasons people do this, such as for making home improvements.

When it comes to taking out a remortgage in London so that you can release equity, you must carefully plan what it is you’d like to do. In virtually all circumstances, you’ll have a new mortgage to replace the old one (that is how a remortgage works), whilst moving onto a higher loan to value.

Because you’ll be moving onto a higher loan to value, you’ll find that you are almost guaranteed to have higher monthly mortgage payments.

Many will hope that their investments in their home, all the home improvements that have been carried out, will see the value of the home increase. This means that when the time comes to remortgage in London once more, your loan to value should be lower again.

It really all comes down to gauging the markets, making sure that everything is incredibly well thought out, especially with it being for such a large investment and your home. A mortgage advisor in London will review your plans and advise on the best steps for you to take.

Can I remortgage in London early if the value of my home has increased?

In some instances, you may find that you are wanting to take out a remortgage in London early. Whilst enquiring about your options before your fixed-term ends is technically early, you may possibly be able to remortgage in London even before that.

The downside to taking out a remortgage in London early, is that you will usually find yourself having to pay an early repayment charge (ERC), due to breaching your contractually agreed terms on your mortgage deal.

House prices can be quite difficult to gauge, as the market is ever-changing and always unpredictable. Whilst you may think it could be a good idea for you to do this, it may not actually be financially viable for this to be achieved.

People will generally only leave their mortgage early if there is a genuinely good reason for this to be done. This is why speaking to an expert mortgage broker in London is highly recommended before doing so.

A good example of where this would apply, could be the COVID-19 pandemic. During this time period, the Bank of England base rate dropped to records lows. People who were set to leave their fixed-deal around that time, would benefit from their remortgage in London, inheriting lower interest rates.

That said though, if you were still a year away from being able to remortgage in London, you might have looked to remortgage early, to make sure you can fix-in onto those lower interest rates for longer, to reap the benefits of them.

This is quite a niche example, however, as times were very strange and mortgage lenders were pulling a lot of their products, which caused limitations to mortgage options. Even with that in mind, it shows how remortgaging early could actually be helpful.

If you have seen your home rise in value, that too could be a good time to take out an early remortgage in London, as the general costs may be greatly outweighed by the costs saved from you being able to access a much lower loan to value.

Once again, you’ll have to factor in a likely early repayment charge (a product transfer could see that waived), as well as your possible arrangement fees, valuations fees and solicitors fees on a new mortgage.

If you are able to demonstrate that your savings will definitely be able to outweigh the fees spent, then this may be something you could look at doing. As always though, it is recommended that you have a chat with a mortgage broker in London, in order to understand your options.

Product Transfer V Remortgage Advice in London

Remortgage Advice in London

What is a product transfer?

When your current mortgage term is approaching its end, your lender may offer you a new deal to switch over to, this is known as a product transfer. You aren’t switching lender; you are just switching to another one of their deals.

You are under no obligation to stay with your lender, you can search around elsewhere for as many deals as you want. In fact, most people shop around, you may end up finding a better deal by doing so.

Are you rewarded for loyalty?

Unfortunately, the answer is no. Lenders will not reward you for loyalty, and that’s why, as a Mortgage Advisor in London, we always advise that you look elsewhere for a deal first. Most lenders prefer to offer better deals to First Time Buyers in London and new customers before their existing ones.

As a Mortgage Broker in London, we would recommend that you don’t be loyal to them and try searching for more competitive deals that could save you some money. We often find that there is a better deal out there, you just need to find it.

This is where we come in, we will search through 1000s of mortgage deals for you until we find the perfect one for your personal and financial situation. We have over 38 different lenders on panel and we can individually look through each one until we find a competitive deal for you. 90% of the time, we will find you an amazing deal that will save you both time and money.

Tempted by an online switch?

We know that it is extremely easy to switch over to a new deal online, we sometimes don’t blame people it’s that easy! However, it’s also very easy to make a mistake online and it could end up getting you on the wrong deal. If this happens to you, you are in a sticky situation as you chose to take no sort of financial advice, which lenders will have no sympathy for. Lenders like customers that switch over online as they end up making more money from you.

If you want the same fast service along with expert financial advice, you should approach a Mortgage Broker in London. For example, at Londonmoneyman, we always have your best interests at heart, we will always try to find the best deal for you and not for us. We aren’t tied to any lenders so we are free to choose any mortgage product that we think will benefit you the most.

Opting out of advice and consumer rights

As soon as you choose an online switch, you are waving goodbye to your consumer rights and protection that you would’ve got had you gone the Mortgage Broker route. It’s perfectly normal to conduct a mortgage switch online, we are just asking to be careful as we have seen customers fall into these traps before. Just because a deal is cheaper than your current one, doesn’t mean that you will match its criteria.

At the end of the day, we want the best for you, we want you to come out with the best remortgage deal/ product transfer possible. If you have any further questions or concerns about your remortgage, feel free to get in touch as we would love to try and help you. We know that remortgaging can be stressful and that’s why we are here to offer a helping hand through your remortgage journey.

Why Choose us as your Remortgage Advisor in London?

Is your mortgage deal coming to an end? Are you looking for a replacement deal to switch over too? If so, your Remortgage Advisor in London is here to help!

Whether you’re looking to Remortgage in London to save money or to raise capital for one reason or another, then you’ve come to the right Mortgage Broker in London. We have been helping customers find outstanding remortgage deals for 11 years now, we know exactly what to do to find you an amazing deal.

For some borrowers, remortgaging can be a great way to improve your financial situation as it may give you the option to consolidate any short-term debts.

Remortgage Advisor in London

Getting Remortgage Advice in London could be within your best interests as you will receive full guidance and support from an expert Remortgage Advisor rather than doing it by yourself. A Mortgage Broker in London like us, will not only help you secure a deal they will try and help you save money in areas you didn’t think you could.

Common Remortgage Scenarios

Having worked within the mortgage industry for over 11 years, we have come across almost every single remortgage scenario. Here are some that we regularly come across:

Reasons to choose Londonmoneyman as my Mortgage Broker in London

With the introduction of the new mortgage market regulations in 2014, it became much harder to Remortgage without the help from a Mortgage Broker in London. People find it hard because of the sheer amount of mortgage types out there and it’s often hard to qualify for every single one of them. Also, people don’t really know the differences between the mortgage types whereas a Mortgage Advisor will and can tell you the difference between each of them and which one will suit you the best.

We work for you

We also work for you, we are not tied to any particular estate agents or lenders. We always have your best interests at heart, our aim is to try and find you a great mortgage deal based on your personal and financial situation.

Your experienced Mortgage Broker in London is not just here to get you a remortgage deal, we are here to support you through your remortgage journey, taking all of the stress off your back and making the process run as smooth as possible. We want the best for you and for you to come out smiling, knowing that you’ve received an excellent mortgage advice service that ended with you securing an amazing remortgage deal.

As your Remortgage Advisor in London, we are here for you 7 days a week. You can get in touch whenever you want, we work around you. We also offer a free initial mortgage consultation, so make sure to get in touch as soon as you can!

Reasons To Get a Second Mortgage in London

Second Mortgage Advice in London

There are several reasons why a second mortgage might be worth considering:

  1. For collecting funds for your existing home.
  2. For renting existing home and moving to a new one.
  3. To support your children in purchasing a home.
  4. For purchasing a property for rent purposes usually known as a buy to let London.
  5. Want to purchase new house while having an existing mortgage.

Standard Variable Rate (SVR)

Releasing funds for a second mortgage depends on how much equity you have in the home and this is where specialist mortgage advice in London may be able to help. Lenders have a standard variable rate which is also called Lender’s basic mortgage.

Once you understand that each lender has its own standard variable rate set, then you understand the need for shopping around to find a better offer. You can also opt for a further advance with your existing Lender.

Let to Buy Mortgage

If you live in a property and want to move elsewhere then Let to Buy option is for you. It helps you in moving home in London as well as lets you keep the ownership of your existing property for you to rent it out later. Your second mortgage will be for a new residential mortgage.

Help Your Children Buy a Home

Being a parent, you are considering and looking for ways to help your children or grandchildren find a place on the property ladder. There are many routes that can assist you in purchasing home for your child. 

Divorce/Separation & Second Mortgages

Looking for a new home while having your name on an existing mortgage occurs in situations when an individual is getting divorce or separation.

Before making any decision about second mortgage, make sure you have right people advising and helping you through it. Your dedicated mortgage advisor will be able to help in checking thousands of mortgage offers on your behalf and proposing the most acceptable offer to you, based on your personal circumstances.

Trusted Mortgage Broker in London

Should I Use My Estate Agent’s In-House Mortgage Advisor?

Estate Agent Mortgage Advice in London

When you start your mortgage process, if you choose to use a large estate agent, they will want you to use their in-branch Mortgage Advisor and their recommended conveyancers.

You don’t have to use their in-house advisor however, in fact you can still get the same or better deals from somewhere else! Unfortunately, first time buyers are often the ones that get caught out and end up coaxed into using their internal services.

Searching for an external Mortgage Advisor in London could be the best path for you to take. An estate agent’s advisor will be biased, only encouraging you to see their side as they just want you to stay on with them.

A dedicated mortgage broker in London will be able to give you more perspective and see different sides. If you do your research and still end up back with your in-house advisor, that’s fair enough, though you should always remember that you have other options out there.

Our view consists of both transparency and efficiency, as we want to provide the best possible experience and the best advice for your personal and financial situation, whilst still delivering a fast yet friendly service.

Sales tactics of estate agents

If you end up choosing to use your estate agent’s in-house mortgage advisor and conveyancer, you need to think about where the cost of their service is coming from. Maybe they are charging you for their services without asking you and adding it to other fees, so that you don’t notice. Taking the route of a trusted mortgage broker in London will eliminate these concerns, as you know exactly what you are paying for. Your dedicated advisor will break each cost down for you and answer any questions of uncertainty you have with what’s going on.

Even though it is an illegal tactic, if you have opted not to take the estate agents in-house mortgage advice, they may refuse to put your offer forward on a property. For example, you could be using a broker and they may push another offer to completion over yours, purely on the basis that you aren’t using their services. Once again, these situations are illegal.

Estate agents may get even craftier and try to charge you with extortionate in-house conveyancing fees. Even with a straightforward purchase, they could try and charge you with fees upwards of £1,500. If you encounter anything like this during a purchase, you have all rights to ask them where they have got these prices from and for them to provide a full breakdown of everything.

An experienced mortgage broker in London only has your best interests at heart, and all of this can be avoided by going to one over an estate agent for mortgage advice.

How can I get a Mortgage in London?

Finding the right Mortgage Advisor

Choosing the right Mortgage Advisor can be hard; but is there a way to make it easier?

Sometimes your case will be specific and might require specialist care and attention. An estate agents in-house advisors don’t care about this and just want to make money off you. When you get in touch with a mortgage broker in London, you can be matched up with a specific advisor who has experience in that field.

For example, we have specialist buy-to-let mortgage experts who can be called upon if a buy-to-let enquiry is presented to them. Once you’ve had a free mortgage consultation and an agreement in principle (usually turned around in 24 hours or less), you could be linked with your perfect advisor and get a head start on your mortgage process..

We have years of experience providing mortgage advice in London and have been helping struggling customer take that leap into the mortgage market for over 15 years now as a company. You can find out more about our excellent mortgage advice service by looking at our fantastic customer reviews.

Getting behind the wheel to start your own mortgage journey

If you would rather “go it alone”, you should know that it’s perfectly okay to do so. The majority of things you need can now be done online! Along with the use of price comparison websites, you may be able to find yourself the most appropriate deal.

The benefit of doing things online is that you have the chance to save money on additional fees. As long as you are confident in what you are doing and know what you are looking for, you could complete the process very quickly.

One thing to note though is shopping around and comparing online may be a little harder than you think. You will need to make sure that you’ve found the most appropriate fit before agreeing to anything. Here are some things you should be wary of when choosing to find a deal by yourself:

Should I use my Bank or a Mortgage Broker?

Using your bank’s Mortgage Advisor

It isn’t difficult to make an appointment with your bank’s Mortgage Advisor, however, it may not be the right choice for you to make. If you do choose this route, here are a few things you should keep an eye out for:

Using a Mortgage Broker in London

Working alongside a mortgage broker that is not associated with the estate agent ensures you have someone working purely on your behalf as an inexperienced first time buyer in London. This also ensures there’s no conflict of interest risks.

Everything will be kept between you and your designated Mortgage Advisor in London. We have no external ties to any building societies, banks or estate agents. When we work, it’s solely for you and only you. Whilst we have lenders on panel, they’re purely there for the deals they offer, allowing us to find the most appropriate case for your case.

Our team have your best interests at heart. Managing Director Malcolm Davidson is here to explain the pros & cons of using a dedicated mortgage broker:

Why Should I Use A Mortgage Broker? | MoneymanTV

Can I Remortgage in London for a Home Office?

Home Office Remortgage Advice in London

Home offices are constantly becoming more and more popular. Whether it’s down to the increase of Self-Employed workers or reworked business models, we are seeing a great amount of interest in them. With businesses having to adhere to the latest government guidelines, most employers have had to let their staff work from home. Whether this is going to be a permanent thing or not, we don’t really know; it also depends on your company’s business model.

If it’s looking like you’re going to be working from home for the foreseeable future, you may want to consider the idea of investing in a home office. You can’t work from a kitchen counter forever… can you?
There are a few different ways to get a home office, you can straight-up pay for one to get decorated and combine all of the costs, do it all by yourself or remortgage for home improvements. In this article, we are going to talk about the advantage of choosing to remortgage other the other options.
This is our remortgage for a home office video that is featured on our YouTube channel ‘MoneymanTV’. We hope that it helps you understand how you can remortgage for a home office: 

Remortgage for a Home Office UK | MoneymanTV 

What is remortgaging? 

First of all, what is a remortgage? A remortgage is a renewal of your current mortgage deal or a switch over to a new deal.

There are lots of different reasons why someone may want to remortgage, it’s entirely on the individual’s situation. You may want to remortgage to get a better deal and rate, your term may be approaching its end and you need another deal to roll on to or you might want to remortgage for home improvements.

As a Mortgage Broker in London, we would say that when you want to make big home improvements, going down the remortgage route is a very safe option. Extending your mortgage term for a little while longer to invest in home improvements could prove beneficial both short and long term. 

Remortgaging for home improvements 

Remortgaging for home improvements will slightly increase your mortgage payments each month, however, it will balance itself out in the long run. Your payments will increase as you are paying for the home improvements on top of your current mortgage deal; you will hardly notice the extra amounts though.

We would say that the average price for a home office is between £5,000 – £10,000. So, for example, if you were to go down the remortgage route, you may find that you have to only have to pay back as little as £20 – £60 a month over a 25-year term. Yes, your term will increase, however, you will get a brand new home office to enjoy at a small extra cost each month. You will also have equity built up in your property, and this will be used to fund the work on your home.

So you get to save money down the line and get a home office, it’s a win-win scenario.

Reasons to remortgage for a home office

Whether you have been told by your company that you will be working from home from now on or have started your own company and are now Self Employed in London, there are many reasons to why investing in a home office could be very beneficial for your new working from home life

Remortgaging vs Moving Home in London 

Yes, Moving Home in London is an option, you could move into a bigger place with an office already built-in if you want to. On the other hand, you need to weigh up the costs of this option. On top of the property price, you will have to consider the costs of Moving Home in London, these include removal fees, property survey fees, mortgage arrangement fees etc. 

It will be more expensive, however, it’s a viable option if you are looking at Moving Home in London anyway. You could consider Moving Home in London to secure a place that already has an office space, however, you must know that this option will be much more costly than remortgaging.

Considering how little extra you will be paying per month, in the long run, remortgaging for home improvements could be your best option over moving home. If you are wanting to go ahead with a remortgage for a home office and don’t want to move home, now is your best opportunity to get Remortgage Advice in London

Remortgage Advice in London 

If you are looking for Remortgage Advice in London, you should get the ball rolling with Londonmoneyman. We offer a free remortgage consultation to every customer, so feel free to get in touch with us and claim it.

If you are tired of working from your kitchen table or a make-shift desk, now is the time to consider getting a home office. Whether you choose to fund it all at once or over a longer period of time through a remortgage, it’s entirely up to you.

A Guide to Remortgages in London: Top Reasons to Consider

When your mortgage term is coming to its end. Your options are to either sell up and upsize/downsize into a new property. Maybe you are in the market for selling your portfolio to the tenant(s) or another buyer and want to know what options are available? The most popular option, however, overall of the above, is a Remortgage.

What is a remortgage?

A Remortgage is a process of moving your existing mortgage to a new provider or switching to a different arrangement with your current lender. There are lots of different opportunities when taking out a Remortgage.

By taking advantage of the 20 years or so knowledge of our resident “Moneyman” Malcolm Davidson mortgage advisor and director of Londonmoneyman and host of our YouTube channel MoneymanTV, has put together a quick remortgage guide to help you understand the main reasons homeowners choose to remortgage.

Remortgage for Better Interest Rates

In some cases, your initial mortgage deal will normally last somewhere between 2-5 years and feature low fixed rates or possibly discounted rates. Your lender may suggest placing you on a tracker mortgage, which follows the Bank of England’s base rate.

When your mortgage term is ending you will be placed onto the lenders Standard Variable Rate (SVR). SVR’s can affect whether the interest rate moves up or down, depending on what the lenders choose.

They also don’t follow the Bank of England’s base rate like a tracker mortgage hence why they can be riskier, as the lender is not legally obligated to charge the recommended amount.

Because of this, SVR’s are usually the most expensive option to take, leaving many to look at Remortgaging for better rates, which will hopefully save them some money on their monthly repayments.

Remortgage for Home Improvements

Spending several years occupying your home, you may come across wanting an extra room or a much larger living space to start a family, a newer and modern kitchen, a new office as more people are working from home or loft conversion. If you weren’t sure whether to do some home improvements or move into a bigger house, some choose to release their equity with a remortgage to cover the costs of any work needed or wanted.

The idea of having to obtain planning permission and fund/manage your own project seems time consuming, some will argue it’s a lot less stressful and more rewarding than the process of having to go property hunting again, selling your current home and having to move all your possessions.

At the same time, creating more space and having good quality craftsmanship will likely increase the value of your home. This comes in handy if you ever do decide to sell up or rent out.

Remortgages for Changes to Your Term

Some homeowners may choose to Remortgage in London for a more suitable mortgage term, whether that’s switching to a more flexible product or reducing the length. However, doing so means you won’t be paying back your mortgage for a long duration. But, you’ll be faced with higher monthly repayments. The longer your term, the lower the payments will be over time.

Other homeowners may choose to opt-in for their remortgage term to be more flexible. The befits of doing so are if you gain the ability to overpay, you will be able to pay off your mortgage quickly, as well as being able to carry the same mortgage and rates over to another property, should you decide to move later down the line.

We tend to find that flexible mortgages usually come in the form of a tracker mortgage. A tracker mortgage follows the Bank of England base rate. Meaning your mortgage payments will fluctuate based on interest.

Remortgage to Release Equity

All homeowners will have some form of equity in their property. This is worked out with the difference between what is still owed on the mortgage and the current value of your property. As previously mentioned, equity can be used for home improvements. However, there are other routes to go down.

Some homeowners choose to cover long-term care costs, whereas others may choose to add to their income, to have a holiday, to pay off an interest-only mortgage or simply have some extra money to spend on whatever they would like.

In other cases, Buy-to-Let landlords will use their remortgage to release equity as a means of covering their deposit for purchasing additional properties for their portfolio.

Equity Release in London is something that homeowners who are over the age of 55, with a home that is worth at least £70,000, could benefit from using. Take a look at your options by getting in touch with an expert later life mortgage advisor who can help you better understand lifetime mortgages.

Remortgage to Consolidate Debt

Others may choose to release equity to pay off any unsecured debts that may have built up over time. However, Debt Consolidation not only bases the amount on how much you are owed and the value of the property, but things like your credit rating are also a factor. All this can limit you on the amount you can borrow.

To pay off your previous mortgage and your debts, you will need to borrow a substantial amount. This means your monthly repayments will be higher.

If you have a poor credit score, you might have a slim chance to remortgage, you might benefit to look into Specialist Remortgage Advice in London. Even then, there is no guarantee that you could remortgage.

You should always seek mortgage advice before choosing to consolidate and secure any debts against your property.

Dedicated Mortgage Advisors in London

If you are coming to the end of your term and are wanting to know what your options are, we highly recommend you book your free mortgage appointment to speak with one of your experienced and trusted Mortgage Advisors in London.

Our team will discuss what’s the most suitable options for you and your circumstances, to create the most suitable plan of action for you in the next step of your mortgage adventure. We aim to ensure this go-around is a quicker and easier process than when you took out your initial mortgage.

What is a Cashback Mortgage?

Cashback Mortgage Advice in London

There are many different types of mortgages, and some of them will be perfect for your situation and some will not. The type of mortgage that you obtain will be down to what you are looking to achieve and your personal and financial situation.

There are no ‘regular’ mortgage types, there are the most popular ones and the specialist ones. Cashback mortgages fit into the specialist category as they are only taken out in certain circumstances and they have become less popular over recent years.

Not all mortgages will be beneficial to you and your situation, and that’s why it’s important to shop around and make sure that you take out a product that is right for you.

How do Cashback Mortgages work?

After paying off your whole mortgage term (paying off your mortgage), you will receive a lump sum from your lender. You should not confuse this with your shorter fixed terms.

The amount that you receive back is based on a percentage of what you have borrowed. This percentage is something like 1% or 2%. This may seem like a small amount, however, if you took out a £360,000 mortgage, 1% is £3,600 and 2% is £7,200. Sometimes lenders may offer a little more, it depends on the lender.

Will a Cashback Mortgage benefit me?

There are pros and cons to Cashback Mortgages. First of all, like other mortgage products, you may be offered some extra perks for taking out the deal. These perks could include a free mortgage valuation or some other sort of fringe benefits.

Once you receive your lump sum, you will be able to spend it on whatever you want. We’ve often seen people use the money to improve parts of their homes such as an extension or conversion. Most of the Cashback Mortgage customers that we have dealt with are those taking out lower mortgages.

Unfortunately, Cashback Mortgages can come with high-interest rates, and that is what can put people off. You should speak to a Mortgage Advisor in London to get an idea of what rates you can access.

Different types of mortgages in London

There are many different types of mortgages. Some mortgages will not match your situation or the property that you’re purchasing, and that’s why it’s important that you find the right one. Finding the right one for you can be a difficult task though! This is where a Mortgage Broker in London like us comes in.

We can search 1000s of mortgage deals for you and we will make sure that you are on the best deal for your personal and financial situation. If you are interested in Cashback Mortgages and are considering taking one out on your property, feel free to get in touch. Getting Specialist Mortgage Advice in London could be very beneficial to your situation.

Follow our ‘Book Online’ process and book a free mortgage appointment with a Mortgage Advisor in London. Pick your own date and time, there are slots available seven days a week.

Can I Get a Mortgage on a Fixed-Term Contract in London?

Fixed-term contracts were once considered to be more of a less conventional form of income, though nowadays they’re a lot more commonly found.

As a general rule of thumb, the only difference between this fixed-term contract employment and regular employment, is how the contract that you have is structured.

Regular employment generally will typically mean you have to sign a contract at the start of your employment, which will remain in effect until you are either terminated or you hand in your notice to the employer.

If you are employed on a fixed-term contract, this will mean you are only a contracted employee for a specific length of time, as opposed to permanently. That being said, you’re still classed as PAYE, which is similar to what a teacher on a per year contract.

Is it possible to get a mortgage on a fixed-term contract?

Yes, it is absolutely a potential option. It may be a little challenging if you are looking for a first time buyer mortgage in London, though we do still have mortgage lenders on panel who will consider these types of circumstances.

Current Contract Length

How long your current contract length is can have an impact on whether or not you can obtain a mortgage. If your contract is a short-term one, you may find it even more difficult to take out a mortgage.

The reason for this, is because you are not guaranteed any sort of long-term employment. Coupled with a large, long-term outgoing such as a mortgage payment, this could be a risk to a mortgage lender.

Most mortgage lenders will want to see consistent, longer term contracts one after another. This will showcase to the mortgage lender that you are likely to keep on with regular contracted work, which in turn will help you in maintaining your mortgage payments.

In addition to this, you can further increase your chances of having a mortgage application accepted by having written confirmation from your employer that once your contract has ended, it will be renewed with the same employer.

Breaks in Employment

If you have had or are currently having any breaks in employment, mortgage lenders may see this as a problem due to their uncertainty of whether or not you can maintain your monthly mortgage payments.

On the off chance you have had any significant employment gaps over the course of the last 12 months, you may not be able to get a mortgage. This is dependant on the mortgage lender and their own criteria, though a more sustainable income may work in your favour more with some lenders.

Further to this, what is defined as a gap in employment will vary per mortgage lender. Some will see a week as a gap of employment, whereas others may deem 4 to 5 months as a gap.

An expert mortgage broker in London will be able to check lender criteria and match you up with the most appropriate one.

What documentation do I need to get a mortgage on a fixed-term contract?

In order for a mortgage lender to consider accepting your application for a mortgage, you will need to provide them with multiple pieces of identification.

The types of documentation you will need to submit to a mortgage lender, include;

An expert mortgage advisor in London will be able to take a look at your documents in advance, to make sure it is all suitable for passing along to a mortgage lender.

If they require any other forms of ID from you, they will let you know so that you are more prepared for your mortgage journey ahead.

How much can I borrow on a fixed-term contract?

It is very likely that, providing you have a solid history of consistent employment, with very few or no gaps and a contract with a good amount of time left on it, you will be able to apply for a 95% mortgage, only putting down a 5% deposit.

Unfortunately, because it is deemed to be a risk to the mortgage lender, if your contracts are more short-term or you have some gaps in your employment, you may need to put down a much larger deposit in order to secure a deal with a mortgage lender.

Can you get a remortgage on a fixed-term contract?

Perhaps you are already a homeowner. If this is the case and you are on a fixed-term contract, heading towards the end of your fixed mortgage period, you may be curious of the options you have present.

It is at this stage that we would greatly recommend getting in touch with remortgage experts like ourselves and benefitting from remortgage advice in London.

This is because on top of the possibility of new deals that you may be able to access, there may well have been a change in your income. Maybe you aren’t working as often as you were in the past? Is your average income lower than it used to be?

It is elements like this that can have an effect on your ability to remortgage your property. Depending, you may have limited options, perhaps even with extra costs.

Enquiring for remortgage advice in London with expert mortgage advisors is definitely recommended ahead of jumping in to remortgage your home.

Book Your Free Mortgage Appointment

For anyone who is curious about whether or not it is possible for a home buyer or homeowner to obtain a mortgage whilst on a fixed-term contract, the simple answer to this question is yes, it is.

In order for you to have a much better chance of getting a mortgage with these circumstances, book a free mortgage appointment today with a dedicated mortgage broker in London and we’ll see how we are able to help you.

Can I Remortgage With The Same Lender in London?

Product Transfer Mortgage Advice in London

Towards the end of the initial fixed period of your mortgage, will be the time to start looking at your options for a remortgage in London. If you were to consider remortgaging with the same lender, this would be called a product transfer.

This can be something that not too many people know about, particularly if you have been doing your research before your fixed period ends. Truth is though, that product transfers are perhaps just as, if not more popular than a remortgage itself.

What is the difference between a remortgage & a product transfer?

A remortgage is taking out a new mortgage with a new lender, which will replace your previous mortgage. That tends to come with more favourable interest rates and lower monthly repayments. Doing so would require documentation to be provided in order to qualify for that deal.

When you make a product transfer, you will be with the same lender. This means that providing your circumstances haven’t changed, you usually won’t be asked to submit any further documentation. You can choose a new deal that you qualify for and have it replace the previous one.

What are the benefits of a remortgage with the same lender?

The main reasons for looking to do a product transfer, are appealing to homeowners. First, you could save yourself quite a bit of money.

This is because it doesn’t require solicitors or a valuation, so those fees won’t be there. You also have the option of saving yourself from a redemption fee or early repayment charge (though arrangement fees might still be present).

It can also prove to save you a lot of time and allow for easier service. Remortgaging in London can often take a while to put together, whereas because the lender already knows what you are like and likely won’t require any documents, product transfers can often be a lot quicker to finalise.

Why might someone choose to do a remortgage over a product transfer?

Others may instead opt for a remortgage. The reason this is a popular choice is because of the flexibility involved.

You will have access to more than just your current lender, with potentially better deals available elsewhere. If you manage to find a much better rate than you are currently on, this will save you money in the long run.

Additionally, a product transfer only allows you to take out a new mortgage on the same term, whereas a remortgage can allow for new terms. Doing this could allow for your next remortgage process to go easier.

Another popular choice for people to look out for is to remortgage to release equity (the difference between what is owed and the value of the property), as a means of funding potential home improvements, putting down the deposit for another property, and more.

Releasing equity doesn’t quite work the same with product transfers, though you may be able to arrange something called a further advance. Get in touch with a mortgage specialist to learn more about further advance and product transfers.

Do I need a solicitor to remortgage with the same lender?

Typically speaking, because you are staying in the same property, with the same lender, you will not need a solicitor for a product transfer.

Where this will be appropriate, is if you are making changes to your mortgage terms, such as removing or adding a name to your mortgage. At this point, you will likely need a conveyancer or solicitor.

If I remortgage with the same lender, will I need to have a credit check?

Typically speaking, you will not need a credit check for a product transfer. This may potentially be different though for some lenders. The reason this is usually the case, is because the lender already knows they can trust you to pay back your mortgage.

Alternatively, if you have had credit problems during your current mortgage or are remortgaging with another lender to do something such as release equity, you may have another credit check taken out on you.

Is there anything else I need to consider when I do a product transfer?

When doing a product transfer, something you may need to look at is whether or not you have any plans to move home in the future. Your current deal may not allow you to port your mortgage to a new home.

Taking out a remortgage instead, can allow for the flexibility to port your mortgage if you need to.

How can a mortgage broker in London help with a product transfer?

Here at Londonmoneyman, our team can provide expert remortgage advice in London and will be more than happy to go over your case and take a look at what you’re hoping to achieve.

Not only will we be able to get you through the process quickly and efficiently, but you’ll benefit from the various deals available to you, thanks to the vast panel of mortgage lenders we have.

Our service goes beyond this though, as we genuinely care about our customers. If you’re looking to product transfer and we believe it’s in your best interests to remortgage instead, we will say so. The same goes if you were looking to remortgage and we felt like you should product transfer instead.

We believe in full transparency and honesty with the customer – you should be put first. To discuss your product transfer options, or for further remortgage advice, book your free remortgage review and we will see how we are able to help. & Londonmoneyman 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.

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