The decision to get a mortgage is very important in people’s lives. Mortgages are long-term commitments, so it’s important to be sure before applying for one. Mortgages can help individuals own their dream home, refurbish their current home, or step into the real estate scene, making money off monthly rent. You need to choose an expert mortgage advisor Nottingham to guide you through the application process.
1. Right-To-Buy Mortgage for Tenants
A right-to-buy mortgage is aimed at tenants who want to buy the house they live in. For this, they have to be residents for at least three years. The more you’ve been a tenant, the greater the discount you will be given. For houses, the minimum discount for a three years tenant is 35%, but it can go up to 70%. If you live in a flat, you will start with a 50% discount for three years of tenancy.
Right-to-buy mortgages are very popular in Nottingham. A mortgage advisor can study your financial situation along with your credit score and point you to lenders more likely to offer you a mortgage. They will also calculate the discount you should receive and inform you of the estimated interest rate.
To be eligible, you should have at least three years of the tenancy if you want to buy the property. Your annual income is also taken into consideration. Furthermore, your credit score will also play a role in your application. Bad credit scores lower your chances of success. If you use a mortgage advisor, Nottingham, you are more likely to get a mortgage even if you have bad credit.
2. Mortgage Advisor Nottingham for Help to Buy Mortgage
Help to buy mortgages are used by buyers who want to purchase a newly-built home. This equity loan is given only to individuals who never owned a house before. It is designed to attract people who want to buy their first home with the help of a loan. To make matters easier, you only start to pay interest after the 5th year. Your mortgage advisor Nottingham can help you with more information on that matter.
The interest you will start paying in the 6th year will start at 1.75%. You will be asked for a deposit of at least 5% of the house value. Keep in mind that there are price caps on properties you can buy, starting from £186,100 and going up to £600,000 if the property is in London.
3. HMO Mortgages for Real Estate Investors
An HMO (House in Multiple Occupation) Mortgage is aimed at investors who want to rent out a property to tenants. The property cannot be a simple house or flat because of certain criteria. First, the property has three separate living spaces with a shared kitchen, bathroom, or even living room. The owner usually provides furniture and utilities for the living spaces. This type of mortgage is designed for experienced landlords.
There are a few eligibility criteria you must meet before looking to acquire a property with an HMO mortgage. First, you ought to have landlord experience under your belt. The property should be up to 5 bedrooms for the best chances of success. An HMO license might be required for certain properties. It is advised to seek counseling from a mortgage advisor when getting an HMO mortgage because you are more likely to succeed.
4. Remortgage for Home Improvements
If your home needs renovation or you want to extend the living space, a remortgage for home improvements will provide you with the money needed. The idea behind this is to borrow the needed money and add them to your mortgage payments. This will result in higher monthly payments for your mortgage. If you thought about it and your house does need a fix, you should apply for a remortgage.
If you’ve paid a decent proportion of your mortgage, you might be able to borrow some more from the same lender. If not, you can remortgage with another lender with a different interest rate. You must show proof of your annual income and credit score to the lender before proceeding. How much your home’s value has changed is also a big factor in the application process. If your home grew in value and you intend to renovate, you might get a good deal.
5. Buy To Let Mortgage
If you want to invest in real estate but not in a property designed for multiple tenants, buy to let mortgages are for you. BTL mortgages help you buy a property that you will rent out to tenants. You should own a home before applying for this mortgage because you cannot live on the property you will buy. You should also know that there are certain risks involved, and you should only proceed if you truly want to invest in real estate, or you might end up losing more money in the long run.
Your annual income should be a minimum of £25,000 a year if you want to have any chance. A bigger income will make you more likely to receive the loan. The lender will also check your credit score to see if you pose any risk. A minimum of 20% deposit will be expected from you when you get a buy to let mortgage. The interest rates are usually higher on BTL mortgages. It is a good idea to ask an expert mortgage advisor to look over your financial situation and review the property you intend to buy. You can find mortgage advisors online at Nottinghammoneyman.com
With so many mortgages you can choose from, it is important to pick the appropriate one for your situation. A mortgage advisor Nottingham is handy because he can help you reach the best deal for your specific situation. Another factor to consider is that you will have to put down a lower deposit, and your monthly interest rate will be significantly lower if you get a deal through a mortgage advisor. Many lenders refuse to talk directly to individuals, so make sure to call your mortgage advisor whether you are an investor, tenant, or first-time buyer.