Help! I’m a Birmingham Midshires Residential Mortgage Customer

Mar 3, 2024

Birmingham Midshires Exited Direct Mortgage Market in 2011: What Existing Customers Need to Know

 

Important information for Birmingham Midshires mortgage holders:

As of October 1, 2011, Birmingham Midshires made a significant change – they stopped offering mortgage products directly to customers. This means that existing residential customers with Birmingham Midshires mortgages won’t be able to get new mortgage products directly from them when their current term ends.

They also stopped offering residential mortgages in any forms many years ago. Choosing to focus solely on buy to let.
 

What does this mean for you? 

Your mortgage rate

Many Birmingham Midshires residential mortgages either started on or later changed to a “tracker rate”. This meant that the interest rate whilst on the tracker would be normally around 0.5%-1% above the bank of England base rate.

For many years, whilst the bank of England base rate was low (0.1% at its lowest in 2020), the interest rate charged was actually fairly competitive (0.6% charged if your tracker was 0.5% above, whilst the base rate was 0.1%)

However now that the base rate is 5.25% you will be paying an interest rate of around 5.75% and above: which is comfortably around 1.5% more expensive than high street fixed rates currently available if you instead remortgaged to a new lender. Of course specialist lenders charge more, so whether or not you can improve your fixed rate, depends on which new lenders you are eligible for.

You may have stayed with BM because you believed you were unable to remortgage due to income, credit, property type etc. however market changes in the last 10 years have opened up lots of opportunities to remortgage that we’re not previously available.
 

Your mortgage term

Your current mortgage term may have already or could be about to reach its end, so you’ll need to explore other options for refinancing or finding a new mortgage product if you don’t want to sell the property.

  • Birmingham Midshires won’t offer: product transfers, further advances, or mainstream mortgages directly to existing customers.
  • Alternative options: You’ll need to consider using a mortgage broker or going directly to another lender to find a new mortgage product when your current term ends.
  • Be proactive: Don’t wait until your current term ends to start exploring your options. Research different lenders and mortgage products well in advance to ensure a smooth transition.

 

Additional resources:

Remember, seeking professional financial advice can be beneficial when making important decisions like refinancing your mortgage.

Steven Morris – Advising Director

CeMAP CeRER

 

Steve loves a complex mortgage. Most recently he has used his technical geekery to work his way up through Which? Mortgage Advisers, progressing to Senior Adviser and then Onboarding Manager. There, he was responsible for hiring, training and managing new advisers.

He also ran the monthly new starter inductions and wrote and maintained the telephony advice standards of the company. Outside of work Steve can be found coaching and being run ragged by his local under 10’s rugby team, Bristol Harlequins RFC.

Meet the rest of the Advantage Team

The General Election Results are in: What can we expect for the housing market going forward into 2025?

Mortgage Price War Heats Up: Barclays and HSBC Slash Rates - Is Now the Time to Buy? Now that the UK General Election results are finally decided and a new PM is in situ, mortgage lenders seem to have relaxed about the future of inflation and interest rates are...

Cracking the Ladder: A Guide for First-Time Buyers in the UK

The dream of homeownership burns bright for many, but navigating the UK property market can feel like a daunting climb. At Advantage FS many of our first time buyer clients start their journey believing or being told the mountain is too steep. However, with the right...

Why a Local Mortgage Advisor Makes All the Difference for Your Bristol Home Journey

Congratulations! You've decided to take the exciting (and sometimes daunting) step of buying a home in Bristol or the surrounding area. Whether you're a first-time buyer eager to step onto the property ladder or a seasoned mover looking for your next dream home,...

Are mortgage rates in the UK going up or coming down 2024

I thought mortgage rates were coming down in 2024, what is happening?  Let’s get a misconception out of the way early about how mortgage rates have been changing… Mortgage rates available during January 2024 were cheaper than anything else we have seen since. For...

Homeownership Made (Slightly) Easier: The New £5k Deposit Mortgage

Surprise news for first-time buyers!  Accord Mortgages and Yorkshire Building Society have launched a brand new mortgage product that lets you step onto the property ladder with a deposit of just £5,000. That's right, you can finally ditch the housemate and snag your...

UK Mortgage Rollercoaster: Rates Tumble, Yet House Prices Remain a Challenge (April 6, 2024)

MARKET WATCH! UK Mortgage Rollercoaster: Rates Tumble, Yet House Prices Remain a Challenge (April 6, 2024) This week in UK mortgages has been a tale of two trends: good news for potential borrowers with falling rates, and lingering concerns for some facing a tough...

UK Mortgage Rates: A Quick Look at the Last Week (as of March 24th, 2024)

MARKET WATCH!  UK Mortgage Rates: A Quick Look at the Last Week (as of March 24th, 2024) This week in the UK mortgage market (as of March 24, 2024), we've seen a relative pause after several weeks of steady increases in interest rates. The Bank of England (BoE)...

February 26th 2024 mortgage news

Halifax buck the trend In a surprising move, Halifax, the UK's biggest mortgage lender, has cut its mortgage rates, going against the recent trend of lenders raising theirs. This move is seen as an attempt by Halifax to gain market share in the competitive mortgage...

February 14th 2024 mortgage news

What's in the news? February 2024   The cost of moving and stamp duty is putting millions of homeowners off of potentially downsizing. Older homeowners are unable to move to smaller properties because of the financial burden that comes with a house move, and this...

Navigating the Financial Maze of Downsizing in Retirement: What are Bridging Loans?

Retirement often marks a period of transition, a time to embrace new experiences and simplify life. Many retirees consider downsizing their homes, seeking a smaller, more manageable living space that aligns with their changing needs and lifestyle. However, the...

Celebrating more 5-star reviews than any other independent broker in Bristol!

Contact us today to find out why we've received over 650 hundred 5-star Google reviews

You have Successfully Subscribed!