Mortgage Broker Birmingham – A Local Touch

For many people, owning their own home remains a big goal in life. With rental costs spiraling, and tenant security frequently lacking it makes sense to work towards owning a home of your own – and it is achievable when you get the right advice.  

Prospective homeowners in Birmingham and the surrounding areas who need guidance and support in securing their first home get great results using a mortgage broker. A mortgage broker can not only help to guide you through the process of applying for your first mortgage, they can also scan a panel of over 50 lenders to make sure you choose the right one for your circumstances. The process doesn’t have to be difficult when you have professional guidance to be sure of the right result.

The advantages of using a mortgage broker:

• Options: A mortgage broker offers a wide range of mortgage loans from a panel of over 50 lenders because they are not just tied to one product, they can search their network to find you the loan product and the interest rate that best suits your needs.
• The right deal: A mortgage broker represents your interests rather than that of the lenders. They are able to offer great value in terms of interest rates, repayment amounts and loan products. 
• One Application: With a mortgage broker you only need one application, rather than multiple forms for each individual lender, reducing the paperwork. 
• Save you money: Brokers calculate the total cost of the loan including any fees and charges you may not have considered. Lowest interest rate may not be the only thing to consider.
• Personal Service: Using a broker makes the journey much easier and they can advise and guide you throughout the application process. They have local knowledge of estate agents and legal services and most of all experience of the various options available.

Can I Afford A Mortgage?

A key factor with any mortgage application is affordability. Lenders are keen to know that you can make the repayments comfortably. With private rental costs on the rise, mortgage payments are comparatively affordable, but you must have money to lay down as a deposit. 

Working with a mortgage broker in Birmingham means you have access to expert knowledge about the local property market, what lenders are likely to consider your application, and what mortgage product will best suit your financial circumstances. As well as mortgage repayments, you will need to factor in monthly costs – such as maintenance, council tax payments, utility bills and insurance cover. 

There are also one-off costs involved in purchasing a house such as legal fees, stamp duty and removal costs. Lenders are looking to see that you will be able to afford the mortgage payments, so they ask for things such as proof of income, any childcare costs, other loans you might have and your personal expenses. 

You also need to consider that interest rates may change over time. Many first time buyers opt for a fixed rate mortgage, where the interest stays the same for a certain period of time, usually five years. If you opt for a variable rate mortgage, be aware that the payments may rise or drop over time.

How Do I Work With A Mortgage Broker?

Working with a mortgage broker can take some of the mystery out of the process and help to save time and money when shopping around for the right deal. They will work closely with you to understand your money situation, what deposit you have available and what you’re hoping to achieve.

Your mortgage broker can explain what type of mortgage would best suit you and give advice to help increase your chances of a successful application. You will need to bring at least three months’ worth of bank statements and your most recent payslips. Understanding your income, outgoings and spending behaviour is vital in helping your broker to recommend the right financial product. 

You should be prepared to talk through your other financial commitments and spending habits. This is all strictly confidential and it helps to make sure you only apply for mortgages you are likely to get accepted for, rather than facing rounds of dispiriting rejections that leave a trail on your credit report and may make it harder to successfully apply for a mortgage elsewhere.

What Happens Next?

Once you have met with your mortgage broker, gone through your financial situation, available deposit, and proposed loan amount, they will go and scan a panel of over 50 lenders to find the right deals for you. You will then receive a recommendation containing mortgage deals that you should apply for. 

Your broker will help to support the application, and once you have been successful, they will give you what is known as a ‘binding offer’ and a Mortgage Illustration Document explaining the terms of the product. You are then able to make offers on suitable new homes. Once an offer is accepted and the sale begins to go through, you will agree a date for ‘completion’ on the property, at which point your mortgage will begin – and you can move into your dream first home.

Not just for First Time Buyers

At Pia we don’t just help first time buyers achieve their dream home, we are also here to help with other mortgage and loan applications. 

Buy to Let (BTL) – finding the right BTL mortgage will ensure you get an appropriate deal for you and your investment. Navigating through the higher fees, interest rates and minimum deposits to ensure you still have the best available deal on the market. Although not all are, most BTL mortgages are interest only, meaning you are paying the interest but not the capital each month. At the end of the mortgage term you repay the loan in full, we can help you plan for this.

Remortgaging – you may be looking to remortgage your home for a number of reasons, your fixed rate could be coming to an end and you want to secure a better rate than the Standard Variable Rate (SVR). You may wish to undertake some much needed home improvements that may also increase the value of your home and investment. You may be investigating options for debt consolidation or releasing equity. Whatever your reasons we are here to assist you.

Think carefully before securing other debts against your property. Your property may be repossessed if you do not keep up repayments on your mortgage.

Some buy to let mortgages are not regulated by the Financial Conduct Authority