Remortgage V Second Charge Mortgage

When looking to raise funds from your property, it can be challenging to work out whether it is better to remortgage, take a further advance or look at a second charge mortgage.  You may not even fully know all your options.

Below we will give you a quick introduction, plus an overview of the circumstances that might make one product more beneficial to you than the other.

What is a Remortgage?

Remortgaging refers to the process of moving from your current mortgage deal to a new one. Those who decide to remortgage either move to another interest rate with their current lender or switch to a rate with a new lender altogether.  Whilst doing so, you can request further borrowing from the current or new lender. Mortgage holders who remortgage typically do so to get a better deal to lower their monthly repayments.

However, this is not the only reason homeowners decide to remortgage.

Why would I Remortgage?

There are many different reasons why people decide to remortgage.

The main reasons being:

  • They want to borrow more money for home improvements
  • They want to reduce their monthly payments with a better interest rate.
  • Their current mortgage deal has come to an end
  • The are looking to consolidate debt – however this could result in the overall repayment of the debt being higher.

When is it best to Remortgage?

One of the best times to Remortgage is when your current deal is about to end.  When looking to switch to a new mortgage deal, it can be useful to check whether your current lender will offer a new interest rate, this is usually called a Product Transfer, there might be fees to pay for the new product, so these need taking into account.  You can also find out if there would be any exit fees should you wish to change your mortgage product and/or lender.

When looking to remortgage a qualified broker, such as Clever Mortgages can look at the options with your current provider and compare them to alternative lenders to ensure you get the best deal. 

Watch our video on the remortgage application process

What are the alternatives to raising funds?

Whilst taking a product transfer or remortgaging to a new lender could help borrowers to lower the rate on their current mortgage deal, it may not solve the requirement to raise additional funds, for example, for home improvements or debt consolidation.  With a product transfer additional borrowing is not normally allowed and instead a further advance would be needed at the same time, which would be subject to credit scoring and lenders current criteria.  With a remortgage to a new lender, they might not be willing to borrow some or all the additional funds you need.

A further advance is when you go to your current lender and ask them for additional funds to run alongside your current mortgage.  This would be subject to a full mortgage application, credit scoring and lender criteria.  It is unlikely to be offered on the same interest rate as your current mortgage and you would need a separate mortgage product to run alongside.

If you have exit fees to leave your current lender or you cannot get approval for additional borrowing with them or a new lender, then a second charge mortgage could be the answer.

A second mortgage can help borrowers to get the funding they need whilst staying with the current mortgage lender.  Additionally, some second charge mortgage lenders could lend more than those who offer remortgages.

Why do we take a Second Charge Mortgage?

Essentially, a second charge mortgage can offer more flexibility in underwriting areas than some of the mainstream lenders, for example if you are self-employed.

Alternatively, a second charge mortgage may be preferable where a client has a low interest rate mortgage that they want to stay on. Applying for a remortgage could result in losing the competitive rate they already have.

A second charge mortgage, however, will allow the client to keep their original first charge mortgage deal and arrange the additional funds separately.

Which one is better for me?

This will be down to your personal situation.  An experienced broker such as Clever Mortgages will be able to review the differences between remortgaging and second charge products. Clever Mortgages are experienced in both types of products, even if you have had issues with your finances in the past.

For those considering a Remortgage or requiring additional funds for maybe home improvements, debt consolidation or are seeking to release some funds from their property for other reasons.  Get in touch with Clever Mortgages to see how they can help.

Current mortgage details

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Your current monthly payment should be (based on the information you have entered)

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(repayment basis)

New mortgage details

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Summary

Your new estimated monthly payment could be

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This payment is based on the best rate achievable from your information and is intended as a guide only. Subject to credit score, lenders criteria and approval, your actual payment could be higher.

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Representative Example:
Mortgage amount £170,995 (including £995 lender fee), 64 payments of £748.30 at a fixed interest rate of 2.28%, followed by 236 payments of £889.60 at a variable rate of 4.24%. Over a term of 25 years, giving a total amount payable of £258,861 at an APRC of 3.6%. The contract will be secured against your property.

Help to buy case study with bad credit

The customers came to us via our website mortgage enquiry form.  They were looking for their first mortgage, they also needed to buy via the Help to Buy scheme.

Despite a few credit problems in the past, we were determined to help the couple and their 5 children purchase their first home.

We sourced the market and using our expert knowledge, of which lenders will accept bad credit, we successfully placed the mortgage.  We completed all the mortgage paperwork with the customers, help with the solicitors and the family have now completed and moved into their new home.

Having previously rented, they are now paying their own mortgage with the assistance of the Help to Buy scheme.

At a glance

  • Using our mortgage enquiry form they were able to get an idea of the mortgage they could afford and monthly payments?
  • Getting a mortgage using the help to buy scheme
  • Customer had credit problems (bad credit) and we were still able to find a mortgage for them.
  • They were a big family that we helped move from renting to owning a home.

Names only were changed in this case study to protect identity

First time buyer mortgage and NHS key workers

Our brokers have a wide range of access to mortgage products on the market, including The Heroes Mortgage range introduced by a specialist lender. The product range includes mortgages for first time buyers, home movers and those looking to remortgage. These specialist mortgage products are designed for the Heroes among us, the essential workers that provide vital community services:

  • NHS Clinicians (including Paramedics & Nurses)
  • Teachers
  • Armed Forces Personnel (Army, Navy, Royal Air Force)
  • Firefighters
  • Police

This mortgage range recognises and understands that these roles rarely take on a 9-5 outlook and treats each case individually. With flexible lending criteria, the Heroes mortgage range is designed to help make our essential workers homeowners.

  • Mortgage loans of up to 5x income, subject to affordability
  • Overtime and second job income included in overall income
  • Limited credit history considered
  • Bad credit accepted
  • Debt Management Plans (DMPs) considered

Case Study

Mortgage Enquiry

The customers came to us as first-time buyers and both NHS key workers, they currently rented a property. They wanted to buy their first home but where in a debt management plan (DMP) so struggle to find a mortgage themselves.  The property they liked was going to be their forever home, so the really wanted to secure it for their future.

Completion date: 5/02/2021

Solution

We arranged a mortgage via a lenders ‘Hero’ Help to Buy range, which is specific for key workers and gives a few additional allowances to be accepted for a mortgage.  The customers used a 5% deposit, that was in the main gifted from family.  Customers now happy in their new home 😊

Watch our video on the mortgage application process

Free initial advice on all mortgages*

See how much your mortgage could cost using our live mortgage calculator – please note, mortgages may differ depending on your circumstances.
*Fee’s may be payable if you decide to progress with a full application.

How much could you borrow?

Ever wondered borrow?How much can you Find out nowHouse £0£100£1,100£10,000£50,000£100,000£125,000House £125,000£0£0£5,000£10,000£30,000IncomeMortgage £105,000Deposit£0£20,000£10,000£5,000You could borrow between£105,000 £135,000to

Wondering how much you could potentially borrow and how much a mortgage might cost you?*

Use our free interactive mortgage form to tell you.

Our mortgage advisors will then speak to you in more detail for a free, no obligation mortgage quote.

Remortgage with Poor Credit – The Facts

Are you thinking about remortgaging? Are you unsure what that term means? Are you worried your credit score may let you down or even prevent you from remortgaging altogether?

We’re here to help. In this article, you’re going to learn:

  • What remortgaging is
  • Why you might do it
  • What we mean by a credit score
  • How to remortgage with low credit score

What does it mean by remortgaging?

The basic idea of remortgaging is to leave your current mortgage deal and swap to another one. A remortgage means switching to a different lender for the whole mortgage, including any extra you’re taking out.

In the case of a possible remortgage bad credit scenario, it is vital to understand that it may still be possible to get a remortgage. A poor credit score may include one or more of the following events:

  • Missed payments (on the mortgage or other loans including credit cards)
  • Defaults
  • CCJs (county court judgments)

The more negative events you have on your credit record, the lower your credit score is likely to be. You can repair it, but this can take time.

Even if a remortgage isn’t possible, there are other possible solutions Clever Mortgages can help with. We’ll come to those later in this article.

What reasons can I remortgage for?

There are many reasons why homeowners consider remortgaging their property. Some people may wish to remortgage to take advantage of equity in their property. This means the property must be worth more than the amount on the mortgage. Statistics show that in December 2019, 16,820 remortgages were taken out with extra borrowing involved.

Here are some of the main reasons you may do this. Incidentally, you may remortgage for more than one reason, for example to consolidate debt and release a little more on top for another purpose.

Debt consolidation

The interest rate on a personal loan, car loan, credit or store card can be higher than that paid on a mortgage. If you’re paying a lot of money each month to meet these kinds of repayments, consolidating them into your mortgage could reduce your monthly expenditure.

However, it is always important to balance any potential monthly savings with the cost of adding the debts over the term of the mortgage. Be aware that any unsecured debts consolidated will become secured on the property.

A mortgage broker can talk you through this and assess the best option for you.

Home improvements

This could mean a new extension, whether over one or two floors. You may want to add a separate garden building to create a working from home space (something that could become more popular post pandemic). You may simply wish to convert part of your existing property to improve it or use it for another reason. For instance, you may convert a cold conservatory into a working from home space by adding underfloor heating and new furniture.

To free up cash for a family member’s house deposit

If you’re a parent wanting to help a child with a deposit for their own home, you may remortgage to access some of the equity in your own home.

To take advantage of a lower interest rate

The Bank of England base rate is currently lower than at any other point in history. We cannot assume it will stay that way forever, but if your current mortgage was taken out when interest rates were higher, you may find better deals on the market now.

To begin to rebuild a credit file

If you’ve had too much debt in the past and you’ve struggled to repay it, you may have gone onto a debt management plan. If so, you may wish to remortgage to consolidate this. in doing so, you could start to rebuild and improve your credit file.

To save money on monthly repayments

Not all reasons for remortgaging involve additional borrowing. In some cases, it’s all about getting a better rate on the current mortgage with a lower monthly repayment. If you’re on a standard variable rate and paying too much each month, a new deal could see you switch to cheaper monthly repayments. Over the lifetime of the loan, this could lead to a far lower amount of interest paid on the mortgage.

Watch our video on the remortgage application process

What is a UK credit score?

A credit score is a three-digit number applied to an individual. It tells lenders whether an individual is a high or low risk candidate for any kind of loan. It is slightly different from a credit rating, which indicates where you sit within various bands used by a lender. These bands or scales aren’t the same at all lenders, hence why there are situations where people may be rejected by one lender and accepted by another.

What is a good credit score?

Different credit rating agencies in the UK work on different numerical systems. For example, Experian goes up to 999, and anything between 881-960 is deemed good. At Equifax, the score goes up to 700. A good score with them is between 420-465.

What is a bad credit score UK?

A fair credit score with Experian starts at 721, so if yours is lower this will dip into poor or very poor territory, depending on how low it goes.

Equifax’s fair territory begins at 380, with anything below that deemed poor or very poor.

Can you remortgage with poor credit?

Yes, although your range of lenders may be smaller. Fortunately, Clever Mortgages specialises in helping those with poor credit find the right remortgage. We can guide you to the best lenders in the marketplace – ones you may not be familiar with. It’s common to find interest rates are higher on higher risk remortgages like these, but we’ll scour the market to find a competitive deal for you.

Do I need a credit check to remortgage?

If you switch to another deal with the same lender without asking to borrow more money, then no, you shouldn’t be credit checked. However, if you want to increase your mortgage or change to a new lender, any lender that considers you for a remortgage will want to know you are credit worthy. This will involve checking your credit score and assessing your suitability.

What you need to know before remortgaging

Firstly, if you’re approaching the end of your existing mortgage deal, make sure you start looking for a replacement deal three or four months ahead of the expiry date. If you don’t, your lender may switch you to their standard variable rate, which can be higher than getting another deal.

Next, make sure you shop around. Many people want to get a competitive deal as it could save them money each month, and more over the life of the mortgage. Some lenders may waive certain fees (such as arrangement fees), but they may charge a higher interest rate.

An experienced broker can weigh up different offers and consider all the figures and calculations before recommending one or more of the most competitive deals. This can take a lot of hard work out of the process for you. You may wade through lots of small print and miss some crucial facts, whereas a broker will know what to look for and how to accurately compare different deals.

You should also consider any charges involved with moving your mortgage. If you switch before you reach the end of your existing mortgage deal, there may be early repayment charges. A broker can advise on all relevant charges involved in remortgaging, both with your current deal and the one you may switch to.

Should you use a broker to remortgage?

There’s plenty to think about when you’re considering a remortgage, especially a bad credit score remortgage. There are plenty of lenders out there today, from banks to building societies you’d recognise the names of, through to smaller more specialist lenders. If you’re looking to remortgage with low credit score, you may benefit from our experience in this area. We specialise in helping those with bad credit. We can identify which lenders are most likely to approve each client in their unique situation.

Current mortgage details

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£
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yrs
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Summary

Your current monthly payment should be (based on the information you have entered)

£{{ !isNaN(current_repayment_basis) ? current_repayment_basis : 0 | currency }}

(repayment basis)

New mortgage details

£
£
%
yrs

Summary

Your new estimated monthly payment could be

£{{ new_estimated_monthly_payment | currency }}

This payment is based on the best rate achievable from your information and is intended as a guide only. Subject to credit score, lenders criteria and approval, your actual payment could be higher.

Loading...

Representative Example:

Mortgage amount £170,995 (including £995 lender fee), 64 payments of £748.30 at a fixed interest rate of 2.28%, followed by 236 payments of £889.60 at a variable rate of 4.24%. Over a term of 25 years, giving a total amount payable of £258,861 at an APRC of 3.6%. The contract will be secured against your property.

Are there alternatives to remortgaging?

Yes, so if you’re unable to go for remortgaging with bad credit, there are still options to think about. These include:

  • A further advance with the same lender
  • A product transfer, i.e., switching to a different mortgage product with the same lender to get a better deal
  • A secured loan, i.e., taking out a loan backed by your property if you have enough equity in it to support this option

If this all sounds complicated, don’t worry. Clever Mortgages has extensive experience in helping our clients find the best remortgaging possibilities for their needs. And in cases where a remortgage isn’t possible, we can assist in exploring other options as shown above.

The idea of remortgaging can be overwhelming. Even if you think you may be able to save money if you change to another deal, you may be worried your low credit score may let you down. By coming to Clever Mortgages, you can take advantage of our expertise and knowledge in helping people tackle remortgaging with bad credit. Get in touch with us today to find out more. You could be closer to finding a suitable deal than you think.

More than just a Mortgage Broker

Are you constantly looking on Rightmove for that next move, a foot on the ladder or just for inspirational home improvement ideas? If so, you are not alone.

According to Rightmove, there was over 152 million visits to site in January 2021 and a 39 percent rise on those figures in February 2021.

It’s clearer than ever that people are seeing this year, with lenders returning to the higher LTVs (loan to value), lending market and the stamp duty extension, as a chance to think about moving home or getting their foot on the property ladder.

Where do I get a mortgage from?

The next big question people then ask themselves is where the best place is to get their mortgage from.

Typically, you have a couple of choices, do you go direct to your bank or shop around using a mortgage broker?

Whether you are buying your first home, moving or refinancing there is a lot of things to consider, from what is the best deal for me, what do I qualify for, should I choose a fixed rate or discount, what even are fixed and discounted rates. How long should I take my mortgage over, how does that impact me and the overall cost, how much can I really afford to borrow?

Most clients using their bank have a good knowledge of the mortgage market and how it works, they may be on their second or third move, they are also confident that they wouldn’t get a better deal elsewhere.  Using a bank means you only get access to the mortgage products they offer and no one else’s. For example, you go and see lender A, they can offer you lender A mortgages only and not lender B or Cs.

What does a mortgage broker do?

Mortgage Brokers act as the middleman between you and lots of lenders, they are very experienced in shopping about and getting the best deal for their client’s circumstances.  Using the same example above, they can look at products from Lender A, B, C, D etc, they can also compare them against each other to get the most suitable solution for you.

Most brokers work with a large variety of lenders, including the banks, building societies, private mortgage companies and some specialist lenders, which allows for a wide range of choice and range in products.

This can save you valuable time especially if you get in touch at the start of your home search where they can prequalify you with a lender and strengthen your buying power with the estate agents and builders.

A mortgage broker’s advice is bespoke to you whatever your circumstance, so whether you have had credit issues in the past, a low credit score or just would like someone to do all the legwork for you they are the ideal people to speak to.

Using a mortgage brokers is even more important if you’re in a chain or have a tight timescale as they will know the lenders who will process the application the quickest.  They do the hard work for you!

Your mortgage broker has a duty of care to you as already mentioned they are independent of the lenders and are working on behalf of you and not the lenders.  They also know the background criteria of the lenders they deal with and can exert influence when chasing the case in a way you just couldn’t do yourself which could be invaluable should things get held up.

For more information read our ‘why to use a broker blog

Watch our video on the mortgage application process

Which broker to use?

Over the years, Clever Mortgages has placed over £350 million worth of mortgages, helping clients all over the United Kingdom.

We are telephone based so you’re not tied to having to attend a face to face appointment, however we do have video technology if you would like to put a face to the name.

The initial advice from the team is Free of Charge and you will be stepped through the whole mortgage process ensuring we can find you the best deal on the market for your individual needs. A fee will only become payable if you decide to proceed with a mortgage.

We have an amazing support team who deal with you from initial enquiry until the day you get your keys and beyond.  Ensuring you are recontacted at the end of any fixed rate or discount period to ensure you continue to be on the best mortgage possible for you.

Clever Mortgages niche has been helping clients that are maybe considered by the banks and lenders as a ‘higher risk’ such as ex IVA, DMP, bad credit, ex bankrupt, self-employed or clients with low credit scores.  Although this is their specialism, we deal with many demographics of clients who refer their family and friends repeatedly.

There are several ways you can contact us from telephoning us on 0800 197 0504, live chat on our website to using our online forms to arrange a call back.

Our website is also full of very useful information including an affordability calculator and guides that will take you through the steps to obtaining a mortgage.

So, if like many you dream of that new property, want a better deal on your mortgage or would like to consider home improvements then get in touch today.

Free initial advice on all mortgages*

See how much your mortgage could cost using our live mortgage calculator – please note, mortgages may differ depending on your circumstances.
*Fee’s may be payable if you decide to progress with a full application.

How much could you borrow?

Ever wondered borrow?How much can you Find out nowHouse £0£100£1,100£10,000£50,000£100,000£125,000House £125,000£0£0£5,000£10,000£30,000IncomeMortgage £105,000Deposit£0£20,000£10,000£5,000You could borrow between£105,000 £135,000to

Wondering how much you could potentially borrow and how much a mortgage might cost you?*

Use our free interactive mortgage form to tell you.

Our mortgage advisors will then speak to you in more detail for a free, no obligation mortgage quote.

The 95% Mortgage Government Backed Scheme: What You Need to Know

The March Budget took place amid the ongoing coronavirus crisis. The pandemic has seen many areas of our lives affected. Those effects extended to mortgages too. Those eager to own their first property discovered the available options for 95% mortgage and remortgages virtually disappeared.

So, the most welcome headline in the Budget was the announcement of a Government-backed 95% mortgage guarantee scheme. This follows other Government initiatives such as Help to Buy. According to Government statistics, over 681,000 households have taken advantage of such schemes to buy a home since 2010. This new scheme is set to begin in April 2021 and will run until December 2022.

Here, we’ll cover the scheme in more detail, exploring what it means for a customer and how it will work.

What is the 95% mortgage scheme?

A 95% mortgage allows the buyer to borrow a maximum of 95% of the property price. This is known as the loan to value amount. It refers to the percentage of the loan compared to the value of the property price.

So, if a property is priced at £350,000, 95% of that value would be £332,500. The scheme allows buyers to get a 95% mortgage to buy their home. You may also see this written as 95% LTV (loan to value).

You may also know this as a 5% deposit scheme. They’re both ways of describing the same thing. Looking at it from this angle, based on the same example property price we gave above, the 5% deposit would be worth £17,500.

How will the 95% mortgage scheme work?

From your viewpoint, you’ll be able to buy a home with a 95% mortgage. This means you need only find 5% of the value of the property, with the lender supplying a loan covering the rest.

The government has designed the scheme as a cushion against potential losses the lender might suffer because of offering the 95% loan. This only applies above 80% of the property value.

This won’t affect you, however. From the outside, a 95% mortgage backed by the scheme will look the same as one without this backing. They’re protecting the lender against major losses by offering the scheme.

Since the 95% mortgage deals dried up as COVID-19 took hold, the scheme puts those 95% deals back on the market again.

Do I qualify to use the 95% mortgage scheme?

There are conditions that must be met for you to be eligible for the scheme. All standard requirements, such as affordability and a suitable credit score, will still be valid. Here are some other important criteria you’ll need to meet:

  • You must be looking for a residential mortgage for your primary home (no second homes allowed)
  • Maximum property value is £600,000
  • The loan to value percentage must be between 91% and 95%
  • You must take out a repayment mortgage during the dates the scheme is live – interest-only loans won’t qualify

All properties, from flats to houses, are available under the scheme. However, you cannot qualify with a buy-to-let mortgage. It also covers everything from new builds to old properties.

Free initial advice on all mortgages*

See how much your mortgage could cost using our live mortgage calculator – please note, mortgages may differ depending on your circumstances.
*Fee’s may be payable if you decide to progress with a full application.

How much could you borrow?

Ever wondered borrow?How much can you Find out nowHouse £0£100£1,100£10,000£50,000£100,000£125,000House £125,000£0£0£5,000£10,000£30,000IncomeMortgage £105,000Deposit£0£20,000£10,000£5,000You could borrow between£105,000 £135,000to

Wondering how much you could potentially borrow and how much a mortgage might cost you?*

Use our free interactive mortgage form to tell you.

Our mortgage advisors will then speak to you in more detail for a free, no obligation mortgage quote.

What is the stamp duty holiday?

The stamp duty land tax holiday was introduced by the Government in July 2020, as part of a raft of measures to support people throughout the pandemic. The March Budget saw Chancellor Rishi Sunak extend the tax break.

It was originally intended to end on 31st March 2021 but has now been extended until 30th June 2021. It means that no stamp duty is payable on properties worth up to £500,000 up to that date.

Following this date, zero stamp duty is payable on properties worth up to £250,000. The value of the property above this sum, up to £925,000, will be subject to 5% stamp duty. Higher property values will incur rates of either 10% or 12% on the remaining portion of the value.

Read what is stamp duty

Is it good to go through a mortgage broker?

A mortgage broker can help you understand how a 95% mortgage works and how this scheme might help you afford your own home.

It’s important to know how much you can afford to borrow based on affordability. You need to know how much you earn each year (along with your partner’s income if you are applying for a joint mortgage).

95% mortgage advisor

Clever Mortgages has a convenient calculator you can use to get an idea of how much you could borrow. We also supply an example of how much your monthly repayment could be if a lender offers you a mortgage at a certain interest rate.

By plugging in just a few simple figures, you can see what you may be able to afford.

Why use a mortgage broker

Can I look for properties before speaking to a broker?

Yes, but it’s often best to seek advice first. You may have a rough idea of how much you could borrow, but a broker will be able to supply you with far more accurate figures.

At Clever Mortgages, we can discuss affordability with you and suggest the maximum amount you may be able to borrow. We can highlight a range of figures most likely to be offered by a UK lender.

What is a UK credit score?

Your credit score is based on your history of credit agreements and repayments. It is displayed in three digits. The higher the number, the better your score.

According to Experian, one of the main credit scoring companies in the UK, a score of 721 and over is considered average. If your score reaches 880 or above, it is considered a good score. This means it will help support an application for a mortgage (or indeed another type of loan).

If you are thinking about applying for a mortgage, it’s a great idea to get a copy of your credit file first. Few people know their credit score, so your file will give you an idea of how lenders might view you in terms of risk.

At Clever Mortgages, we can obtain a copy of your file on your behalf. We can check your eligibility for a mortgage before you officially apply. As brokers, we’re experienced in understanding what lenders look for. We can also highlight any potential issues with your credit file, so you can take steps to resolve them. This could help improve your application chances later. We also specialise in helping people with poor credit find the right mortgage lender.

Have a low credit score? read more here

What are the benefits of using a mortgage broker?

All mortgage brokers must be qualified to provide advice and recommendations. They must also abide by strict regulations laid down by the Financial Conduct Authority (FCA).

A broker could help you find a competitive 95% mortgage deal. They will know which lenders offer these deals and how they compare to each other. Brokers also know far more lenders than the average individual. We tend to stick with what we know. So, if you go it alone, you may find you are missing out on some of the most competitive 95% mortgage offers on the market today.

A broker will also know which lenders are most likely to accept applicants like you. Perhaps you have your eye on a property with a thatched roof. You may be looking at a new build. Or did that listed cottage catch your eye?

Some lenders won’t offer mortgages for all these examples. The brokers at Clever Mortgages can steer you in the best direction. We can compare mortgages from over 100 lenders.

Why is the first payment on a mortgage always higher?

This can come as a surprise if you are not familiar with how mortgages work. Most people accept they will have a monthly payment to meet on their mortgage.

The first one occurs on whichever day you choose to make your payment, starting the month after you move into your property. However, you are charged interest on your loan from the day you move in.

For instance, let’s assume you move into your home on 20th March. You want to pay your mortgage on the 1st of each month. So, your first payment would be on 1st April and it would include interest charged between 20th March and the date of your first payment.

What other fees are included in mortgage?

A mortgage illustration document must list all the fees involved with that mortgage. These may include an arrangement fee, valuation fee, and booking fee. They are variable and you may not always get all fees included with all mortgages.

For example, a lender may waive an arrangement fee. However, this may mean the interest rate is slightly higher to compensate. This means you could end up paying more over the mortgage term.

If you decide to arrange a mortgage through a broker, they will either charge you a fee or work on commission paid by the lender. At Clever Mortgages, we’ll make sure you know exactly where you stand before you go ahead, no matter your financial position.

Stamp duty holiday extended and 95% mortgages now available

As a result of the pandemic there have been very few low deposit mortgages available. If you, like many, would like to get onto the property ladder, or move home, but have been struggling to source the deposit funds needed, then help could now be on hand.

Today (3 March 2021) the Government announced during the Budget a new scheme that 95% mortgages are now available for first time buyers and current homeowners to buy properties up to £600,000 with just a 5% deposit.

The Stamp Duty holiday has also been extended until the end of June for properties up to the value of £500,000, which could save you thousands of pounds – and provide a much—needed financial relief.

The Government’s new mortgage guarantee scheme is set to launch in April and is there to help if you’ve been unable to secure and mortgage due to lenders asking for such large – and unreachable – deposits.

If you want to move home, but currently feel like it’s an unreasonable pipedream, then the Government’s new mortgage guarantee scheme could provide you with light at the end of tunnel:

How much could you borrow?

Ever wondered borrow?How much can you Find out nowHouse £0£100£1,100£10,000£50,000£100,000£125,000House £125,000£0£0£5,000£10,000£30,000IncomeMortgage £105,000Deposit£0£20,000£10,000£5,000You could borrow between£105,000 £135,000to

Wondering how much you could potentially borrow and how much a mortgage might cost you?*

Use our free interactive mortgage form to tell you.

Our mortgage advisors will then speak to you in more detail for a free, no obligation mortgage quote.

Who is the Government’s mortgage guarantee scheme for?

The Government mortgage guarantee scheme is for people and couples of any age who want to buy their first home or move but cannot afford to save up a large deposit to secure a mortgage.

What type of property can I buy under the new Government scheme?

You can buy any type of property, such as house, flat or bungalow, as long as it will be your main home – and not one to rent out or act as a second home for example. The scheme also isn’t restricted to new-builds, so you can choose and buy the property of your dreams, whether it’s old or new.

How do I apply for a mortgage under the new scheme?

These 95% mortgages will be available through a range of lenders, and you will apply in the same way as any other mortgage – but of course, you will only need a 5% deposit.

What is Stamp Duty?

Stamp Duty is the tax you pay when you by a residential property or piece of land in England and Northern Ireland.

What is the Stamp Duty Holiday?

The threshold for anyone buying a home and having to pay Stamp Duty was initially increased from £125,000 to £500,000 until the end of March. This has now been extended until the end of June. Following this, the threshold will decrease to £250,000 until the end of September and back to £125,000 from October onwards.

What is a 95% LTV mortgage?

A 95% mortgage (also known as a 95% LTV mortgage) is a mortgage to purchase a property with a small deposit (at least 5% of the purchase price). Your deposit is the amount of money that you need to put into the mortgage to make up 100% of the final purchase price.

For example, if you wanted to purchase a property at £200,000, you would put in £10,000 and a mortgage lender would lend you £190,000 to purchase the property.

How can Clever Mortgages help me?

Here at Clever Mortgages, we have access to hundreds of lenders and so can help you find the right mortgage based on your circumstances. There are so many different mortgages available so we will do all the hard work for you. We’ll find the right lender and product for you, guiding you every step of the way to help you buy your new home.

Speak to us now!

Why use a mortgage broker?

Mortgage brokers help you find the best deals on the market – not just from one lender. With a broker you can expect:

  • Valuable knowledge, through years of experience helping customers to find mortgages
  • An improved chance at finding a mortgage, some mortgages are only available through a broker
  • Help with the application process, as usually just one application can be used across various lenders
  • Advice on how to improve your chances, for instance getting a guarantor or applying for a joint mortgage

About Clever Mortgages

We specialise in assessing an individual’s situation, and finding the right mortgage solution for them. We can help:

  • With remortgages, buy-to-let, and first-time buyers mortgages. We have experts who cover these areas
  • Even if you’ve got bad credit – we help people every day with a variety of credit histories to find the right mortgage
  • With applications, as we’ll take the hassle away. We require your details once and we’ll know the best lenders for your circumstance
  • Our team know the lenders that are most likely to say ‘yes’, and give you the best rates

What should I do next?

  • You enquire online with us today or request a call back
    Our simple form takes a couple of minutes to fill in, this gets the ball rolling
  • One of our experts will give you a call to find out more about your situation
    We have experts in remortgaging, who focus solely on helping customers save money
  • We do all the hard work for you
    We search the market for the trusted lender that’s right for you
  • Our expert will get back in touch
    We can guide you every step of the way, and we’ll always keep you up-to-date with progress

Speak to a broker

Laura Connor

Laura is a specialist mortgage broker, whose been working for Clever Mortgages for 7 years and has over 13 years experience in Financial Services.

Call us on: 0800 197 0504

See our FAQ page

95% mortgage advisor

What happens when applying for a mortgage?

Have you ever wondered what happens when applying for a mortgage?

Below, we break this down into 6 simple steps. Although applying for a mortgage can seem daunting and confusing, there are simple steps you can follow to make sure you understand the basic application process.

Below, we look at the main steps for applying for a mortgage and what you might need to think about.

Clever Mortgages specialise in helping people find the best mortgage possible for their current situation, no matter what your past or current credit history is. Speak to one of our advisors if you have any questions.

Contact Clever Mortgages

Step 1

Complete our online enquiry form and supply your intitial details, we will contact you to discuss your requirements in more detail.  We can determine how much you can borrow before moving forward with your application.

Step 2

After we’ve taken a look over all of your details, we’ll scour the market for the best mortgage deals possible for your situation. We’ll then discuss any mortgage deals that match your criteria.

95% mortgage advisor

Step 3

If you’re happy with the mortgage we’ve recommended, the next step is getting a mortgage agreement, commonly known as an AIP or ‘Agreement in Principle.’ This essentially means that the mortgage provider agrees to lend you the money subject to final checks and approval of your chosen property.

Step 4

Once your AIP is accepted, the next step is to formally apply for the mortgage. If you’re applying through us, we’ll do this part for you. The mortgage provider will then conduct a formal valuation on the property to make sure it’s worth what you think it is or have offered to buy it for.

Shared ownership

Step 5

If the property value is sufficient and after checking over the documentation you’ve provided, the mortgage lender will make a formal mortgage offer to you. Once you’ve accepted the mortgage offer, the solicitor can finalise all the legal work and arrange a completion date

Why now is a great time to move home

Step 6

You move into your new home or if a remortgage you will have switched lender and may have funds in your account for home improvements. You then begin making your mortgage repayments. Congratulations

How much could you borrow?

Ever wondered borrow?How much can you Find out nowHouse £0£100£1,100£10,000£50,000£100,000£125,000House £125,000£0£0£5,000£10,000£30,000IncomeMortgage £105,000Deposit£0£20,000£10,000£5,000You could borrow between£105,000 £135,000to

Wondering how much you could potentially borrow and how much a mortgage might cost you?*

Use our free interactive mortgage form to tell you.

Our mortgage advisors will then speak to you in more detail for a free, no obligation mortgage quote.

What is a mortgage broker?

A broker is a Financial Conduct Authority (FCA)-regulated professional who specialises in finding mortgages for people. They do this by taking your circumstances into account and learning about your situation before recommending the best mortgage deals for you.

Why use a mortgage broker?

Mortgage brokers help you find the best deals on the market – not just from one lender. With a broker you can expect:

  • Valuable knowledge, through years of experience helping customers to find mortgages
  • An improved chance at finding a mortgage, some mortgages are only available through a broker
  • Help with the application process, as usually just one application can be used across various lenders
  • Advice on how to improve your chances, for instance getting a guarantor or applying for a joint mortgage

About Clever Mortgages

We specialise in assessing an individual’s situation, and finding the right mortgage solution for them. We can help:

  • With remortgages, buy-to-let, and first-time buyers mortgages. We have experts who cover these areas
  • Even if you’ve got bad credit – we help people every day with a variety of credit histories to find the right mortgage
  • With applications, as we’ll take the hassle away. We require your details once and we’ll know the best lenders for your circumstance
  • Our team know the lenders that are most likely to say ‘yes’, and give you the best rates

What should I do next?

  • You enquire online with us today or request a call back
    Our simple form takes a couple of minutes to fill in, this gets the ball rolling
  • One of our experts will give you a call to find out more about your situation
    We have experts in remortgaging, who focus solely on helping customers save money
  • We do all the hard work for you
    We search the market for the trusted lender that’s right for you
  • Our expert will get back in touch
    We can guide you every step of the way, and we’ll always keep you up-to-date with progress

Speak to a broker

Alison Tetlow

Alison is a specialist mortgage broker who has been working for Clever Mortgages for 9 years helping customers with bad credit and has over 25 years experience within the mortgage and housing market.

Call us on: 0800 197 0504

See our FAQ page

95 percent ltv mortgage

Government to launch a new 95% mortgage scheme for first time buyers and home movers with a 5% deposit

Exciting news was received over the weekend, for prospective first-time buyers and those who would like to move home, but only have a deposit of 5%.  It appears the Government is going to announce a new 95% mortgage scheme in this week’s budget.

We still await full details of the scheme, but early news is telling us, that it will launch in April and will allow both first time buyers and home movers to buy a property up to £600,000, whilst putting down just 5% deposit, that being £5,000 per £100,000 borrowed.

For example, with a purchase price £200,000 – the deposit would be £10,000.

With people struggling to save and savings interest rates being low, a scheme is needed to get people on to the property ladder.  The Governments plan is to turn ‘generation rent’ into ‘generation buy’, although they also need to meet targets of building affordable homes to allow people to purchase.

It will be interesting to see which lenders take up this scheme with the Government and what the lending criteria will be.  Some lenders already offer 95% mortgages, when the help of a ‘guarantor’, typically a parent, adds security and backing.   Lending will still be subject to the normal assessment of affordability, sustainability, and credit checks.

Even if you have bad credit or a low credit score, Clever Mortgages can look at options for you and will find a lending solution if there is one available.

Along with this, we could also see the Stamp Duty Land Tax holiday extended by 3 months, again, we wait further details to see who may benefit from this extension.

How much could you borrow?

Ever wondered borrow?How much can you Find out nowHouse £0£100£1,100£10,000£50,000£100,000£125,000House £125,000£0£0£5,000£10,000£30,000IncomeMortgage £105,000Deposit£0£20,000£10,000£5,000You could borrow between£105,000 £135,000to

Wondering how much you could potentially borrow and how much a mortgage might cost you?*

Use our free interactive mortgage form to tell you.

Our mortgage advisors will then speak to you in more detail for a free, no obligation mortgage quote.

First Home Scheme

First Time Buyers with bad or low credit score

Finding a mortgage for a first-time buyer with poor credit can be difficult. Most first-time buyers want to borrow more than 85%, which can massively reduce their lending options.

Having a bad or low credit score will make getting a mortgage a little trickier, this has also been exacerbated over the last year due to tightening of lenders criteria, Clever Mortgages are specialist in this area.  As a mortgage broker, we have extensive experience in assisting first time buyers with previous credit issues including missed payments, CCJs, IVA’s and defaults. We provide impartial mortgage advice to first time buyers, including those who have been turned down elsewhere.

A lot of lesser-known lenders not found on the high street specialise in bad credit mortgages, many of which can only be accessed by an experience Mortgage Broker.  A Specialist lender doesn’t necessarily mean high interest rates therefore they can be an affordable option for many struggling to fit the mainstream lending criteria.

What do I need?

There are a few things that any lender will need to consider before offering you a mortgage and you will need to be up-front about these details with your specialist advisor, so they can find the right lender and the best deal for your circumstances. No matter what caused your bad credit, whether it was a missed payment, a default, or a CCJ, your lender will need to know:

  • When did the bad debt happen?
  • How long ago was it?
  • How much was it for?
  • What was it for?
  • Have there been attempts to settle the debt?
  • How much are you able to put down as a deposit?
  • What is your current income?

By speaking to a specialist early in your search they will be able to ascertain the above information and let your know the best options for you, this could include explaining the other types of purchase options you may have, including Shared Ownership and Help to Buy.

Quite often another issue facing first time buyers is whether or not they will be able to borrow enough to purchase the property they want. Clever Mortgages can be your first port of call when you start looking to purchase your first home, you can gain and insight on how much you can afford and the cost of the mortgage via our ‘Enquiry Form’.  We can also access your credit report for you which will speed up the process and give you an insight into your lending options.

Clever Mortgages have experience and expertise in complex and difficult cases and can find the best lenders for your circumstances. We can also provide useful information on managing your credit while you are planning to apply for a mortgage and buy your first home.

Contact us today on 0800 197 0504 or click below for more details.

How much could you borrow?

Ever wondered borrow?How much can you Find out nowHouse £0£100£1,100£10,000£50,000£100,000£125,000House £125,000£0£0£5,000£10,000£30,000IncomeMortgage £105,000Deposit£0£20,000£10,000£5,000You could borrow between£105,000 £135,000to

Wondering how much you could potentially borrow and how much a mortgage might cost you?*

Use our free interactive mortgage form to tell you.

Our mortgage advisors will then speak to you in more detail for a free, no obligation mortgage quote.

A Guide to Affordability

Mortgage lenders have traditionally used income multiples to decide how much you could potentially borrow, this calculation can sometimes produce an affordability ‘gap’ because house prices have risen beyond these calculations.

However, in more recent times, many have based their maximum borrowing based on ‘ability to pay’, which sometimes allows applicants to borrow a little more.  This will inevitably be subject to circumstances such as your credit file, whether you have had bad credit in the past and other elements such as If you have a family and other commitments.

The type of mortgage product could also affect this decision as well, such as a fixed rate mortgage, because the monthly repayments stay the same for a period of time, which is easier for borrowers to manage and budget for.

Affordability can also be down to the property you are looking to purchase as well, if you are looking to refurbish a property it would be never advisable to borrow to your maximum affordability limit as this would hamper any desire for making the improvements you wish to make.

The more money you borrow from your mortgage lender, the higher your credit score typically needs to be.   There are still plenty of options for First Time Buyers whose affordability wont quite stretch to their desired lending amount due to credit issues or a low credit score.

Here are some of the most commonly-used First Time Buyer methods.

Family Deposit Support

The bigger your deposit, the better the mortgage you can access. For this reason, a high percentage of first-time buyers are often gifted money by family members to put towards their deposit. This could not only get you onto the housing ladder quicker and there is varying options from straight forward gift to placing the deposit in a special savings account with the bank or securing it on the family home if this is mortgage free.

The Help To Buy mortgage deposit scheme.

Under this scheme, you can borrow up to 20% of your property’s value from the government to add to your 5% mortgage deposit. There are several terms determining your eligibility for this scheme, so it’s important to talk to us to understand these before applying.

Lifetime ISAs.

Help to Buy ISA’s were a way of saving to get the deposit to buy your first home. You could earn interest on the money you deposited into the account and if you used the ISA for the deposit on a house the government would boost your savings by 25% contributing up to a maximum of £3,000 towards it. The most comparable product now available is the Lifetime ISA, and further details can be found at https://www.gov.uk/lifetime-isa

Clever Mortgages have experience and expertise in complex and difficult cases and can find the best lenders for your circumstances. We can also advise you on your affordability while you are planning to apply for a mortgage and buy your first home.

Contact us today on 0800 197 0504 or click below for more details.

What Credit Score do you need to get on the housing ladder?

Having poor or bad credit doesn’t always mean you won’t get a mortgage, but it can affect the options available to you.

When a mortgage broker or lender assesses your application they gather information in relation to your credit, they may ask you to forward a credit report or request permission for them to run a report from one of the credit reference agencies to obtain your credit score.  This will look at your payment history and any issues you have had in the past.

A very good or excellent score from a credit reference agency suggests an increased likelihood that a high street lender will accept your mortgage application, which means you’ll have more and better deals available to you. If you credit score is low or shows you have a poor score it will be harder to find a lender and you may have to look at more specialist lenders.

Can You Get a Mortgage or Remortgage with Bad Credit?

It is possible to purchase a house or remortgage with bad credit or a low credit score, but your choice of lenders will be reduced and the options available to you will depend on the nature of the bad credit and how recent it was.

For example, we still may be able to find you a suitable lender if you were previously declared bankrupt but it was discharged a few years ago, or you only had CCJs or default due to a few missed credit card or mobile phone provider payments.

If you suspect you could have bad credit or a low score, it is important to talk to a Mortgage Specialist who will be able to obtain a copy of your credit file and look at the options. It may be that you will have to wait and improve your score to allow you to purchase a property or remortgage.

How Credit Scores work

Your credit score is a 3-digit number based on your borrowing and financial behaviour. There are a number credit reference agencies where you can obtain your report, and the reports are normally categorised as very poor, poor, fair, good, very good or excellent.

Things that affect your credit score can include:

  • Missing mortgage payments
  • Regularly maxing out credit cards
  • Receiving CCJs (county court judgement) or defaults
  • Paying bills late or not at all
  • Relatively high levels of debt
  • Not registering on the voters roll
  • Entering into an IVA (Individual Voluntary Agreement) or Debt Management Scheme
  • Not having much of a payment or credit history – i.e. not building up a record of regular, punctual payments

How Can you Improve your Score?

No matter how close you are to applying for a mortgage, it’s worth taking steps to improve your credit score. This will improve your chances of being approved for a better mortgage, as well as other financial products in the future.

Ways to improve your credit score include

  • Avoid any late payments on any outstanding debt and continue to pay your bills on time.
  • Keep your credit card balances below 30% of your total credit limit. For an even better effect on your credit, keep them below 10%.
  • Close any unused cards.
  • Register on the voters roll.
  • If your credit is low obtain a major credit card and start using it regularly. Ensure you keep up regular payments or repay in full any balance.

Clever Mortgages have experience and expertise in complex and difficult cases and can find the best lenders for your circumstances. We can also provide useful information about managing your credit while you are planning to apply for a mortgage and buy your first home.

Contact us today on 0800 197 0504 or visit www.clever-mortgages.co.uk for more details.

90% Loan-to-Value mortgages starting to return to pre-pandemic levels as Lender confidence grows

Lending in 2020 was massively impacted by the COVID-19 pandemic.  In April 2020, due to the lockdown, we saw the property market come to a sudden halt and lenders started to withdraw products from their lending portfolios, mainly those that required the smallest deposits.  It was reported, at the time, that before the lockdown there were over 700 mortgage products available that required a 10% deposit or less, this dropped to around 60 products post lockdown*.  The impact on the first-time buying market was massive and as a result many were unable to get a foot on the ladder due to the new level of savings required.

90% LTV mortgage

2021 has brought some good news with many of the high street lenders moving back to offering 90% products and also some of the specialist lenders dipping their toes back in the water.

As a few lenders start to offer 90% mortgage products, which means the customer needs a 10% deposit, other lenders will start to follow the trend and offer them to, thus giving more choice to customers.  This return to a wider choice, means you are likely to be better to speak to a mortgage adviser such as Clever Mortgages who can look across the mortgage market to find you the most suitable product and lender.

We may also find as the lenders confidence grows, we start to see more lenders offering 95% mortgages, with the customers putting down 5% of their own funds.

Furthermore, the more lenders offering these products it creates competition to obtain business and this has seen interest rates charge for a mortgage reduce.  Nationwide have already announced a cut across their 90% product range. 

Most of the high street lenders are stipulating the higher loan to value, 90% lending products are for First Time Buyers only, such as Halifax, Barclays and Virgin Money but there are some lenders that will look at Next Time Borrowers such as:-

Accord
Aldermore
Coventry
Metro Bank

Nationwide
NatWest
Platform
TSB

There are also a hand-full of lenders who will offer a higher loan to value products to borrowers who have had credit issues in the past, such as low credit scores or bad credit.  However, each lender will have different criteria and restrictions regarding lending therefore it is always best to speak to a specialist, such as Clever Mortgages who are on hand to help you with your borrowing needs.

To find out more about your options give us a call on 0800 197 0504 or chat to us on our website www.clever-mortgages.co.uk.

*BBC news article 3rd September 2020 – https://www.bbc.co.uk/news/business-54000714

Will the stamp duty holiday continue past March 2021

This year has been a roller coaster when it comes to the mortgage market, during lockdown 1 in March Mortgage Products fell dramatically with lenders very nervous what the affects of the pandemic would bring, removal of higher LTV schemes saw less first time buys able to get a foot on the ladder. 

The transition to have Mortgages underwriters working from home, desktop valuation instead of physical visits also affected the lenders capacity to accept business.

However, since then mortgage approvals have reached a 13 year high with lenders gaining more confidence and assessing their products to meet the growing demand.

This strong improvement has all been helped with temporary stamp duty holiday

So, will the stamp duty holiday continue in 2021?

There was a strong push from the industry to extend the stamp duty holiday past the 31st March, however the government have now confirmed that this will not be the case.

More than 22,000 people signed a petition calling for the stamp duty holiday to be extended for a further six months.

The petition stated: “Extending the stamp duty holiday for an additional six-months will assist many buyers who are looking to move to a property that they will not be able to afford otherwise. This will help to stabilise the housing market.

As it received over 10,000 signatures, the government was required to respond.

The Treasury said the stamp duty holiday was designed to be a “temporary relief” to stimulate market activity and support jobs that rely on the property market.

“The government does not plan to extend this temporary relief”, it stated.

It added that the pandemic caused uncertainty for buyers and sellers with property transactions down by as much as 50% during the first lockdown

“To stimulate immediate momentum in the property market and to support the jobs of people whose employment relied on custom from the property industry, the government decided to introduce a temporary Stamp Duty Land Tax (SDLT) relief. This relief increased the starting threshold of residential SDLT from £125,000 to £500,000 from the 8 July 2020 until 31 March 2021. Since the relief was introduced, transactions have increased and seasonally adjusted data shows that in October 2020, transactions were 8% higher than October 2019.

“As the relief was to provide an immediate stimulus to the property market, the government does not plan to extend this relief. SDLT is an important source of government revenue, raising several billion pounds each year to help pay for the essential services the government provides,” it said.

The Treasury confirmed it will maintain the stamp duty relief for first-time buyers which increases the starting threshold of residential SDLT to £300,000 for property purchases below £500,000.

What impact will this have?

This news will see a rush of potential buyers looking to get their application in to the lenders by January. 

The fear then will be will the lenders cope with this influx, timescales this year have been dramatically increased with more underwriting required, searches taking a lot longer and some lenders taking up to 28 days to even look at a mortgage case.

This extension could see borrowers who did not budget for the stamp duty finding they are unable to complete prior to 31st March due to tight timescales and finding they now have the bill to pay.

Clever Mortgages know the importance of choosing the most suitable lender for your circumstance whether that is because of bad credit, low credit or you just don’t know where to start.

Lenders criteria and timescales will be very prevalent in 2021 especially if you are looking to take advantage of the stamp duty holiday, so talk to the experts who can help. 

Clever Mortgages will look to assist you from start to finish, liaising with the lender, solicitors and estate agents to ensure you are fully supported through your property purchase.

Furlough Mortgages

The current situation with furlough mortgages

You may have been on furlough or finding yourself on an extend period with the current scheme running until 30th April 2021.  If you are looking to purchase a property or remortgage your current home, you may find it difficult to find a lender to accept your furloughed income, especially if you also have bad credit and a poor credit score.

Around 9 million people have been furlough since the pandemic began and whilst some returned to work after the initial scheme came to an end, with the Government resurrecting the original 80% version it meant people went back on furlough or had the period extended.

Due to the risks associated with borrowing large sums of money and the lenders requirements to satisfy Financial Conduct Authority (FCA) affordability rules its important lenders understand your income both now and for the future.

Originally when furlough began, lenders would look at affordability based on the 80% provided by the Government.  However, changes to the scheme, along with the recent extension has made lenders more cautious.

Can I get a mortgage on furlough

Currently, lenders are looking for customer to have returned to work and have a clear payslip with no furloughed income showing, they may even request two payslips and confirmation from the employer that you will not be going back on furlough.

The lending market is therefore even more difficult to navigate, and we would urge you to speak to a mortgage broker such as Clever Mortgages, who deal with all types of mortgages and are also specialist in bad credit mortgage advice.

Clever Mortgages can assess your situation now, to see if a mortgage is possible and if not work with you on a plan for when to apply to a lender.  If you use a mortgage broker such as Clever Mortgages, with access to 100 of lenders, it means you aren’t going lender by lender yourself, running up marks on your credit file and potentially reducing your credit score.

If there is a second person to add to the mortgage and they have not been on furlough, it might be that will be enough to support your application.  We can also look at product transfer options to save you money with your existing lender.

You may also find that there is less availability for those with a smaller deposit, say 5 or 10%.  We have seen lenders start to offers these products again, but you have to match the criteria to achieve it, again this is were speaking to a mortgage broker is key.

Whatever your situation, please feel free to contact Clever Mortgages on 0800 197 0504 or using the live chat on our website to talk to the team.

Why use a broker?

Buying a new house doesn’t have to be a stressful process. Sure, moving all of your belongings and updating your details everywhere can be tiresome, but it’s an essential part of moving home that has to be done. Where the real stress of moving home comes in, usually, is trying to find the right mortgage provider.

People who go direct to their provider spend hours upon hours trawling through comparison websites trying to find the most suitable deal, comparing rates, calling different providers and so on. It can be an incredibly wearing process – unless you go to a mortgage broker.

What is a broker?

A broker is a Financial Conduct Authority (FCA)-regulated professional who specialises in finding mortgages for people. They do this by taking your circumstances into account and learning about your situation before recommending the most suitable mortgage deals for you.

Why use one?

There are many reasons why it’s beneficial to use a mortgage broker – here’s a few of the main ones.

Greater choice

One of the main benefits of using a mortgage broker is the fact that you can often get access to exclusive mortgage rates that aren’t available to people who go direct to their provider. The reason for this is that there are some lenders who only lend through brokers, and as a result you can get offers that might not be listed on comparison websites and potentially save a great deal on your mortgage payments.

Less hassle

Hate paperwork? Mortgage brokers remove a lot of the hassle from getting a mortgage deal over the line, and will often complete the majority of paperwork for you.

Using a broker also protects you against filling in paperwork incorrectly, which is actually something that happens often due to the fact that the paperwork involved with moving house can be quite confusing at times, and they’ll also deal with the lender on your behalf.

The most suitable deal for you (even with bad credit)

Mortgage brokers are experts in getting the most suitable deals for their clients. A good broker will take the time to learn every detail about your situation and how your circumstances might affect what rates you’re eligible for.

Once they’ve done this, brokers will comb the market in order to find the most suitable mortgage deal on the market for you. Even if you’ve got extenuating circumstances such as a bad credit score, for example, and have been rejected for a mortgage deal by some of the bigger high-street banks, a broker will be able to find you a deal.

Again, they’ll be able to do this due to the fact that they’ve got access to rates that simply aren’t available to people choosing to go direct their mortgage providers. This means that whatever your credit score, the chances of you getting the most suitable deal to suit your circumstances is greater if you choose to go to a mortgage broker.