Mortgage Solutions for those already on the property ladder
Do you need to take a break?
For a lot of people, the last 3-4 has not just taken a toll on our health and wellbeing but our finances to. It has been a global challenge, that we are still sitting very much upon whilst the financial plays out.
If you are struggling to pay your mortgage through loss of earnings or health related conditions then we strongly advice that you reach out to a professional, our advice is free:
Tel: 0203 640 7600
If you like to take matters into your own hands then you may have not considered that there could be a multiple of options out there for you.
Taking a Mortgage Holiday
A mortgage holiday is basically a break in mortgage payments for a limited amount of time for you to financially take a break if you have to. To be able to see if you qualify to firstly take a mortgage break you will need to:
- Check your mortgage terms and conditions to see if payment holidays are in the contract of your agreement.
- Calculate how much your monthly payments would be after the holiday ends
- Really make sure it is right for you and that you will be able to afford to pay the new amount once the payment break ends.
- You will then have to contact your lender to find out how to apply for a mortgage holiday. They will let you know if you meet their conditions and send you any application forms you need.
- Alternatively reach out to us and we can take care of all of this for you
If you STOP paying without agreement from your lender, you will be in arrears and put your home at risk. So, if in doubt, just reach out.
So, what is a mortgage holiday?
- It’s an agreement you can make with your lender, which allows you to temporarily stop or reduce your monthly mortgage payments.
- Typically, they are agreed for a few months.
- After the payment break ends you pay back with an increase in interest payment to make up for the months missed
What would be an alternative option?
Switching to a cheaper mortgage deal may be a better option, if you are considering a mortgage holiday in the future and it is not required now.
Getting a cheaper mortgage deal, to allow your monthly payments to go down could avoid you the additional interest costs you could incur from taking a mortgage holiday.
If you need help finding a better deal, or perhaps have bad credit, just reach out:
Tel: 0203 640 7600
Self-help tips for cheaper mortgage solutions
How you may be able to switch yourself to a cheaper mortgage
Insure your mortgage payments
- Insure your mortgage payments instead
If you are unable to afford your mortgage and are worried about your income falling in the future, you could take out insurance to cover your payments.
This could pay out a monthly amount if you lose your job, become ill or injure yourself.
There are two main types of insurance to look at:
- Income protection insurance usually pays a percentage of your monthly salary (e.g. 65%)
- Mortgage protection insurance usually pays an agreed amount per month (e.g. £2,000)
For more information on how you can do this just reach out to Jamie are personal insurance mastermind at: email@example.com
Which lenders allow payment holidays?
There are a lot of flexible mortgages products out there, and allow for payment holidays, you do not even need to explain why.
Some traditional mortgages allow payment holidays, but you may have needed to of made over payments previously to be eligible for a payment holiday.
You will need to check whether you can take a payment holiday. Each lender will have their own deals and conditions.
The Typical rules of a mortgage payment holiday include:
- Maximum length is normally between 1-12 months
- Minimum period you have already made your mortgage repayments on time is usually 6-12 months.
- Most lenders will want you to be up to date with payments to take a mortgage holiday. Some lenders will allow for 1 month in arrears.
- A maximum of 80% of your loan to value of your property , in some instances a payment holiday can take you above this
To find out you can reach out to a broker (like us), to do the work for you, or contact your lender directly.
Either way we are here to shine a light inw hat can feel light a dark spot.
A PRODUCT TRANSFER we like to call the it The “PT” option! It’s quick and it could make you financially stronger.
If you are coming to the end of a pre-existing mortgage deal with your mortgage lender…,Would you like to see if you could potentially save money on your mortgage?
Would you like to see if you could potentially save money on your mortgage? You could be saving money by your next payment!!
To qualify you will need to agree with the following statements:
I have never missed a mortgage repayment
I do not let out my home.
I am not on a mortgage holiday at present.
Unlike a Re-mortgage you stick with your current mortgage provider which means there are:
No solicitor fees.
No valuations or Surveyors involved.
No Credit Score checks!
Why pay more when you could pay less? And the best thing of all…WE contact your mortgage lender for you!
So, if you want to potentially save money on your mortgage repayments, and do not want to pay a fee to a mortgage broker for helping you then come join our band of Merry People today.
What is re-mortgaging?
Simply switching from your current mortgage deal to another deal with a different mortgage lender.
It allows you to shop around and look at other deals with other providers to see if you can get a better deal on your mortgage.
What happens with the outstanding mortgage amount?
It simply gets transferred to another mortgage product.
There are many reasons, but it’s usually to get a better deal.
Top reasons to re-mortgage:
Your current deal which could be a fixed or variable mortgage comes to an end. You normally revert onto a lenders SVR or variable rate mortgage. This may be a higher rate than your fixed or variable rate, meaning your monthly repayments could increase. If you chose to re-mortgage at the end of your current product, then you will be more likely be able to reduce your mortgage payments.
A lenders variable rate mortgage can change at any time, this forces your monthly payments to increase or decrease with very little warning, another reason why people re-mortgage onto a fixed rate deal.
How does the re-mortgaging process work?
The process can be a little daunting to an outsider of the industry that’s why we are here!
What we can do for you without the need for charging you a fee:
Look at your finances, and see what you can afford.
We search the whole of the market for you to find you the deal best suited to your needs.
We ensure it’s the right time for you to re-mortgage to avoid any early-stage penalties you could incur.
We help you apply for your re-mortgage and recommend a solicitor.
How long does a re-mortgage take?
We cannot give an exact timeline, but typically a re-mortgage can take between 4-8 weeks depending on any specific requirements you may have and the lender.
Are there any fees when you re-mortgage?
Yes such as solicitors fees or a fee charged by the lender
If you move your mortgage before the end of your product end date, you will incur a repayment charge. We check the dates for you to make you aware if there will be any repayment charges.
Many lenders out there will offer incentives and as mortgage brokers we gain access to deals which often have no product fess, no valuation, and no legal fees.
We are MTGE – We Care
We are here for you, and with a joint 35 years of experiences we are good at what we do!