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Our property investment expert is Jeni Browne, Sales Director at
Mortgages for Business
www.mortgagesforbusiness.co.uk/
Tel: 0345 345 6788
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Question
How to get a valuation for my remortgage
I am about to remortgage and understand I need to get my house valued in order to complete the process. I wondered if you could advise me on whether it’s worth getting valuations from estate agents myself or if the mortgage lender/s will do that as part of the process.
If the latter, will they do a physical survey or will they base it on other homes in the area?
Answer
When you apply for a remortgage, you will need to indicate what you think a fair value of your property is.
The lender’s valuer will then confirm whether they agree with this figure, and if not, what figure they feel is more realistic.
In terms of ascertaining a rough figure for the initial application, I would suggest using Zoopla and looking at other properties for sale in your area of a similar size and standard to give you a good idea.
Lastly, reaching out to an estate agent can help.
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Question
House next to an industrial estate – can I get a loan?
My husband and I have been looking for a house for ages but nothing within our price range fits our criteria – we have four children and therefore need five bedrooms!
Anyway, we have finally found something which absolutely fits the bill. However, the catch is that it’s right next door to an industrial estate. It’s had problems in the past with noise at unsociable hours – although the neighbours tell us this has died down recently.
We are wondering whether this might make it difficult to get a mortgage? If so, might we end up paying more for the additional risk?
Answer
As a rule of thumb, the harder a property would be to sell on, the fewer lenders there will be who will want to lend on it.
Consequently, you may end up paying a higher interest rate. Having said that, there is a lot of variation across all the lenders in terms of risk appetite, so it might not be an issue.
I suggest you speak to a mortgage broker who’ll either have a good idea of which lenders accept what or can speak directly to a lender to gauge whether, on face value, they’d be happy to lend.
Another idea would be to find out who the current owner has a mortgage with!
Ultimately, it’s down the valuer’s comments as to whether a property is worth a lender’s risk, but taking the steps I’ve described above should help get to the right lender.
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Question
First-time buyer – help buying non-new-build
Is there any way to get government first-time buyer support if I don’t wish to buy a new build home? I have been looking for properties and, to be honest, I don’t like the location of any of the new builds in my area. They are too far from the station and I need to commute for work.
I have found a couple of prospective houses – both Victorian Terrace – but I understand I won’t be eligible for Help to Buy if I purchase these. Are there any other schemes that could help me?
I have a deposit of £25 which amounts to 5% on the homes I am looking at but could push to 6% or 7% on others.
Answer
To answer the first part of your question, unfortunately, you won’t be able to access a help to buy scheme on the older terraced houses.
Fortunately, many lenders now offer 95% loan to value mortgages, which means a 5-7% deposit would put you in the running for these.
To get a better idea of what’s available to you, speak to a broker as affordability calculations are just as crucial as your deposit.
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Question
Can I remortgage after 10 years?
Okay, I am slightly embarrassed about asking this question – but this is my first step on (hopefully) a journey of financial transformation… so, here goes!
I have owned my flat for nearly 10 years now. I originally took out a two-year mortgage deal when I bought it back in January 2012. However, I have neglected the mortgage since then and haven’t given it much thought.
Recently, I have found myself in financial difficulty because of Covid and my cousin, who is training as a financial adviser, agreed to take a look at my finances. Turns out I am paying way too much on my mortgage – nearly 4%!
My cousin said rates have fallen to as low as 0.99% and I am paying too much – I have been told off J . So I wondered, is it too late to remortgage? And, if not, what should I do? Will the fact I have not switched up until now work against me? I have never defaulted and have a good credit file.
Answer
You and almost 30% of borrowers are in the same situation, rest-assured, you’re not the only one! The fact you’ve not remortgaged for ten years will have no impact on your ability to do so now. From what you’ve said, and given the amount of time since you took the mortgage, I’m assuming that your financial situation may have changed in that time.
So, I would strongly recommend speaking to a mortgage broker to get a thorough understanding of what is available to you (and remind you of the process!).
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