Category Archives: Mortgages

Understanding your credit score and credit file

When you apply for a mortgage or any form of credit ( credit card / personal loan etc ) the provider will always check your credit history – they do this by doing a credit search on your name and addresses which cover your financial history for the last six years.

Understanding your credit score

Credit Reference Agencies ( CRA )

Each Credit Reference Agency is sent information by lenders about the credit you have and how you manage it. Other information, such as public records like the electoral roll, are also sent to the CRAs and form part of your credit report. Once a CRA has enough information on you, they will generate your credit report and calculate your credit score.

There are 3 main Credit Reference Agencies – Equifax, Experian & Transunion and each Agency will produce a personal credit score but as the Agencies record your information in different ways and produce scores out of either 700, 710 or 999 your credit score can differ.

Your Credit History

The way you have conducted your finances over the last 6 years will determine if lenders are willing to lend to you and if so at what interest rates.

Clean Credit History

This normally means that you have paid all your outstanding credit on time and is normally shown on your report as green ticks and all lenders would be willing to lend to you at their lowest rates with the smallest deposit required.

Late payments & Missed Payments

A late payment is when a payment should have been made say on the 1st of the month but is not made on that date but is then paid later in that month – depending on how this is shown on your report it may not effect your credit history.

A missed payment is when a payment is not made at all for that month – this will show on your report as a 1 – if the next months payment is made on time the report shows a green tick – however if the next months payments is missed it will show as a 2 and if this continues for the following four months would show as 3, 4, 5 & 6 on your report.

Missed payments will effect your credit score and reduce the number of lenders willing to lend to you and may also mean you may only be offered higher interest rates and you will also need a bigger deposit.

Defaults & County Court Judgements ( CCJ’s )

As you miss more and more payments providers will contact you to try and sort matters out but if you are unable to pay or ignore them they will a Default on your credit file – this shows other providers / lenders that you have failed to meet this financial obligation and will show on your file the provider, amount and date of default .

Normally if you pay a default in full within 28 days of it being registered it can be removed from your credit file otherwise it will remain on your file for 6 years.

Some providers will apply to the County Court for repayment of the debt – this is known as a CCJ where the Court issues papers with the provider / lender looking to recoup the funds owed which can include bailiffs calling round to your property seeking to obtain goods to cover the debt or the Courts requesting having money deducted from your wages.

Again if you pay a CCJ in full within 28 days of it being registered it can be removed from your credit file otherwise it will remain on your file for 6 years.

Even if payment is made to repay any Default or CCJ after 28 days if will still show on your credit file for 6 years but will be marked as Satisfied – however, this will still effect your credit file.

Defaults & CCJ’s greatly effect your credit file and will reduce the lenders available and attract higher interest rates payable and the need for larger deposits being required.

Debt Management Plans ( DMP’s ) & Individual Voluntary Arrangements ( IVA’s ) & Bankruptcy

There are a few specialist lenders who will lend if you are in a Debt Management Plan – again the interest rates offered will be high and the amount of deposit required greater.

Lenders usually require that IVA ‘s & Bankruptcy have been discharged for 6 years before they are willing to lend.

Payday Loans

Usually the Payday Loan has to have been repaid and taken more than 12 months before applying for mortgage.

SUMMARY

Your credit file and credit history will determine the lenders available to you and the amount of mortgage offered and the deposit required – in these challenging times lenders are currently changing their criteria on a daily basis.

Independent Mortgage Advice in Manchester

Manchester, the capital of the North West of England has a population of approximately 550,000 people, with the larger area of Greater Manchester having over 3 million people living inside it’s boundaries.

Popular areas where house buyers want to live include Wythenshawe, Didsbury, Monton, Swinton and Stockport. In my time, I have lived just outside Monton and Bury. In my experience, finding a decent mortgage broker to suit my needs was essential.

Ramsbottom, Bury during festival weekI found my house in Ramsbottom, Bury from an estate agents called Weale and Hitchen. Most estate agents will have a tie-in to a mortgage advisor that they use, but really if you’re smart, you’ll appreciate that this is often a “I’ll scratch your back if you’ll scratch mine” situation and you’ll often pay over the market rate for the service.

The best advice I can offer for personal experience is to use an independent mortgage broker who (because they are independent) will give you objective advice rather that some subjectively questionable advice.

The advice of an independent broker will usually be charged for, but I found the fee (of approx £395) was absorbed within the first 6 months of mortgage payment as they found me a good mortgage deal that was £70 per month cheaper than the one I’d been advised to take by another advisor !!

Getting a mortgage in Didsbury, Manchester

We recently helped a couple obtain a mortgage for a house they wanted to buy in Didsbury, Greater Manchester. He’s some feedback they provided about their story:

Didsbury“I didn’t realise how difficult it would be to get a mortgage appointment even though I live in Didsbury village surrounded by banks and Estate agents.

My partner and myself work in the centre of Manchester Monday to Friday and the earliest appointment we could get was in four weeks time with the Halifax. We couldn’t even get passed the door at the Nationwide, Cheadle branch.

We are both currently renting and have saved a deposit for a house and were being given money from my partners family towards the purchase.

But how would we find out what we could afford without knowing what we could lend ?

My partner stumbled across Manchester Mortgages when looking on the internet.

We were able to speak to an adviser that day and an appointment was made for 2 days time.

We were advised how much money we could borrow and how much it would cost so we now have a better idea of what we are now able to look for.

The mortgage adviser also explained what other costs were involved like solicitor costs and survey.

The meeting was informative and gave us a lot of food for thought and we now have a much better understanding of the house buying process.”

New Homes For Sale in Ramsbottom, Bury, Greater Manchester

Chatterton Place is a select development of new build homes currently being built by Eccleston Homes in the up market of Ramsbottom, Bury in Greater Manchester.

Ramsbottom viewThe reason this news has found it’s way onto the Yaxley site is that this new housing development will be of interest to a great number of people as Ramsbottom was recently voted one of the top places to live in the UK by The Times newspaper.

One of the reasons is the beautiful surrounding greenbelt countryside and the excellent local schools. There are 3 that are OFSTED rated as ‘Outstanding’ – St Joseph’s RC, Hazelhurst Community and Ramsbottom Stubbins which is about 100 yards away from the Chatterton development.

Having lived in Stubbins, Ramsbottom for 2 year myself I can attest to it’s beauty. In fact all my children went to Stubbins primary school and I too would recommend it.

So what is it about living in Ramsbottom? For me it’s the country feel. When I was younger I lived in Eccles and became fed up of the inner city lifestyle. Living in Ramsbottom gives you and your family space to breathe. You can get out an walk in nature, see wild animals and flowers and stroll through many of the local woods. The town is not very big so there aren’t many people, just lots of open green space where you can feel blessed to be living.

Recommended Mortgage Brokers – Ramsbottom and Bury
Here at the Yaxley blog we’re always on the look out for the latest reviews and information about mortgage brokers and advisors in Manchester. To see the mortgage brokers we recommend throughout Bury and Ramsbottom please see our home page

Buying a house without a large deposit

The financial crisis of 2008 hit almost everyone, especially home owners and house buyers. For those people wanting to buy a house suddenly a figure of 30% was conjured up out of nowhere to be a suitable deposit when buying a house.

Suddenly, my clients around Manchester, Liverpool and Chester were being asked to find £60,000 as a deposit for a modest £200,000 property. The effect his had was to kill the housing market as no one could afford to buy a house anymore unless they had a substantial amount of money behind them.

With house prices currently falling (see this Telegraph article), the number of people who have bought houses with only a 5% deposit has hit it’s height.

To clarify, a 5% deposit means that instead of a £60,000 (20% deposit) on a £200,000 house, buyers would only need to raise a far more modest £10,000 deposit. This is obviously great for home buyers, but when house prices start to fall, so does the equity of your house.

Let’s say you bought a £200,000 house when you moved from Manchester to Chester and you paid a 5% deposit of £10,000. Now imagine you’ve lived in that house for 2 years but it’s now worth only £150,000. In two years, you’ve probably paid off somewhere in the region of £8,000 from your mortgage of £190,000, but your house is now only worth £150,000, so in real terms you’ve lost almost £40,000.

House prices and equity values are just one of the things home buyers need to consider when spending large amounts of money on a house. The lesson: Be diligent and research well !

Recommended Mortgage Broker in Didsbury

A quick look at the Reeds Rains houses for sale in Didsbury web site lists many houses available to buy in what is a very desirable place to live in Manchester.

Didbury, Manchester

Didsbury is an excellent place to live in Manchester

But why is Didsbury so popular? There are many reason, a big one is being in very close proximity to Manchester city centre, but still having the feeling that you are separate from it. Another is the lifestyle, Didsbury is quite well off, many families with a yearly income of at least £60k live in Didsbury. This money makes it a pleasant community to live in. Third is the schools, there are many decent schools, for example the Didbsury CofE Primary has an “outstanding” OFSTED rating.

So how do you actually get a mortgage and buy a house in Didsbury? One of the best known recommended mortgage brokers in Didsbury is Alan Dee of Manchester Mortgages. His mortgage advice is highly regarded and he brokers many mortgages for people moving to Didsbury each year. Covering the surrounding areas for Withington, Fallowfield and Chorlton, Andy says “There are some excellent mortgages that are available to people wanting to move into the villages of Didsbury and Chorlton at the moment. Getting a fixed rate deal for 2 or 5 years will ensure you beat the rise in inflation too.”

It’s always a good idea to get advice from a mortgage broker when you are buying a property, even if you don’t end up using their services. With over 30 years experience in getting mortgages for people wanting to move to Didsbury, Alan’s knowledge of the local area is much sort after and a valuable commodity in this day and age.

House Mortgages in Warrington

Warrington is an interesting place to live, in between Manchester and Liverpool and well connected by both the M62 and M6 it has great access to all 4 compass points of England. With areas like St Helens and Culcheth nearby, there’s a great choice of different areas to buy houses in too (see this conversation on Mumsnet for more).

Warrington

Browsing Rightmove for houses for sale in Warrington produces a typical mixed bag of results, and there’s plenty of different houses available to suit different tastes and affordability.

Popular mortgage brokers are currently offering great mortgages on houses in Warrington for all types of buyer – ie. first time buyers, people who want to remortgage, those who wish to move into the area and those wanting to upsize into a bigger property. Indeed a popular mortgage broker from Manchester is currently offering a fixed term 5 year deal at a very attractive interest rate. It’s a mortgage deal that’s proving very popular with the inhabitants of Warrington, many of whom are from St Helens and are moving to Culcheth.

For those of you who don’t know, St Helens is a town – known for it’s rugby league team and has more of a city feel, Culcheth is out in the countryside and is known for its beautiful green parks and steam rallies during the summer months.

If you’re wanting to find a mortgage lender who can advise you on properties in the Warrington area then browse the pages of this blog to find some recommendations.

Remortgaging in Manchester

A popular way of raising extra cash for home improvements or to fund a large expense is to remortgage your house. Remortgaging has become very popular in the last few years and is especially attractive to people whose houses have increased significantly in value from when they first got their mortgage.

remortgage your Manchester home

For example if you first took your mortgage out 10 years ago, your house may have cost you £180,000. Now, 10 years later it may well be worth £250,000, so it’s increased in value by £70,000. You can’t spend this £70,000 however unless you sell your house. By remortgaging you get access to this £70,000.

Remortgaging works by switching your mortgage deal to a new one that releases equity and is more suitable for you. Remortgaging can extend the term of your mortgage and reduce the monthly repayments or you can keep your existing mortgage repayment schedule, often at a cheaper cost.

Remortgage Example
Using the above example, let’s say you’ve a house in Manchester that you bought 10 years ago for £180,000. It’s now worth £250,000, and you’ve got £130,000 left to pay on your mortgage, with monthly repayments of £900. Let’s also say that you want to raise £20,000 for some home improvements. Here’s how it works:

You remortgage your house, stopping your old mortgage arrangement and setting up a new one but instead of borrowing the outstanding £130,000 you borrow £150,000. You can set the term to 25 years or keep your existing one. With interest rates considerably lower now than they were 10 years ago when you bought your house you’ll find that you have been able to borrow more money but are paying back less because of the lower interest rate!

Remortgaging your house makes great sense for many people.

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Mortgage Broker Didsbury

Didsbury is a thriving community of well to do people within Greater Manchester. The area is mainly inhabited by professionals and has always has a sort of cult kitsch about it. Now with the house pricing increasing significantly with Manchester, Didsbury is no exception, and house prices have risen over the last 18 months or so.

Didsbury

With great places to eat, shop and live, Didsbury is attracting many people to the area. In fact, according to the Manchester Evening News it is Manchester’s most expensive suburb (see https://www.manchestereveningnews.co.uk/news/property/buying-a-house-in-didsbury-12924443). It’s interesting then that it attacks so many first time buyers too.

“But how does a first time buyer afford a house in Didsbury?” I hear you ask. Well it’s all to do with clever mortgage planning. The chances of first time buyers getting a mortgage in Didsbury from a high street mortgage lender are slim to say the least, however, this is where independent brokers who specialise in Didsbury come into their own.

This is because they are able to find mortgages offered by all lenders, not just those of the Halifax, RBS, Virgin etc. Quite often these larger companies won’t offer you a competitive rate, or even a mortgage deal at all, but smaller lenders (e.g. https://www.coventrybuildingsociety.co.uk/) will be interested in lending you the money – and at a competitive rate too.

So my advice if you’re looking to buy a house in Didsbury is to use an independent mortgage broker. Look around some of the other pages on this site for recommendations.

Buying a House in Chester, Frodsham or Warrington, Cheshire

The M56, otherwise known as the North Cheshire Motorway extends from Manchester and runs west into the Ellemere Port and Chester area of Cheshire. It’s a convenient route for commuters who work in the large cities of Liverpool, Manchester and Chester.

Northwich pubBut let’s not also forget about the smaller towns between Manchester and Chester, such as Frodsham or Warrington, that provide equally good housing (sometimes better) and offer a degree of rural living to people who choose to buy houses and settle here.

Two places of note as one drives towards Chester from Runcorn are Frodsham and Northwich. Both are very pleasant areas, offering lots of countryside and a degree of elegance. House prices reflect this – with many houses coming in the upper income bracket (see http://www.rightmove.co.uk/property-for-sale/Northwich.html). Similarly Frodsham (& Knutsford) offer an even higher standard of living for those with the money to be able to buy a house there. With the larger properties of course, often one requires a local mortgage broker to arrange the finance and in Chester and Warrington there is a branch of the popular Manchester Mortgages, who are probably the #1 brokers and advisors for home buyers in the M56 area (see http://manchestermortgages.co.uk/cheshire-mortgage-broker-advisor/).

I look at the houses for sale in both Frodsham and Northwich and am actually surprised to find they are not more expensive that I thought. True I am looking at the ‘top end’ of prices, and there are some very nice houses for less than a million pounds. I also note that in addition to houses for sale there is land for sale too. This will appeal to housing developers who are looking to build some nice properties in the area.

So in conclusion, the M56 North Cheshire Motorway offers a great deal of scope for people who want a semi rural way of life, but at the same time are close to the larger cities of Manchester, Liverpool and Chester to make commuting possible.