For National Apprenticeship Week 2020 we thought we’d take a moment to reflect upon our young employees who recently completed their apprenticeships, as well as those who are currently working their way through one.
Following the success of earlier apprentices Thomas Bowes (formerly of the Customer Care team, now a Mortgage Advisor in Lincoln) and Laura Aves (a Dedicated Case Handler who assists our Mortgage Advisors in Lincoln), we decided that apprenticeships were the way to go when looking to hire new employees.
It gives us a sense of pride and achievement, allowing young men and women to experience an opportunity in what is likely their first job, allowing them to learn and grow with skills they wouldn’t otherwise learn. We’re helping to build their futures whilst they’re also able to earn a living.
Former apprentice Michael Sallabank undertook a Digital Marketing Apprenticeship with the company. 2 years after his starting date and Michael is very much still a part of the Moneyman team. It’s been 7 months since he completed his apprenticeship and he’s now a fully-fledged digital marketer. As a collective, the Marketing team help create brand awareness, allowing potential home buyers to take their first steps towards Mortgage Advice in Lincoln.
Next we have Chloe Masters, who is celebrating her 1 year work anniversary today. Chloe is one of the youngest members of the Lincolnmoneyman team, now becoming a Dedicated Case Handler. Finishing her apprenticeship this week, Chloe now joins fellow former apprentice Laura in assisting the Mortgage Advisors with their work.
At this current moment in time, the Lincolnmoneyman team have 3 apprentices. Lee (left), Dan (centre) and James (right) all joined the team in late 2019, undertaking a Digital Marketing Apprenticeship, the marketing apprentices look to take the mortgage head-on and create even more brand awareness for budding home buyers looking to find expert Mortgage Advice in Lincoln.
We really do appreciate everyone who walks through our doors and we always enjoy watching our apprentices grow over time as both workers and people. We look forward to seeing who joins our team in the future!
If you are a first time buyer in Lincoln and have some money to spare every month then maybe you could consider making overpayments to your mortgage. Looking to make additional payments on your mortgage will allow you to pay off your mortgage earlier, paying less interest over the term of your mortgage.
Many people think about doing this but according to a recent survey, some 56% of homeowners with mortgages never get around to putting it into action. This is very interesting data because almost all mortgage applicants start their mortgage journey with every intention of doing so (or at least that’s what they tell me!). By overpaying, even small monthly amounts can make a significant difference overall to the amount of interest you will be paying back over the term of the mortgage.
The sooner you begin overpaying the better, as the extra payments have a longer period of time to have an effect.
A Compare the Market survey suggests that homeowners cannot afford to make extra payments. My feeling is that for many life simply gets in the way. We know overpaying is the “right” thing to do but let’s face it, there’s always something else you can be spending your money on and plenty of those things are more exciting!
The best approach is probably not to make ad-hoc additional payments. (You will likely not get round to it or miss months of additional payment). Take action today and plan ahead. I would suggest setting up a standing order, payable to your mortgage lender each month. Set up the standing order to go out on the same day as your regular mortgage payment. E.g. your mortgage payment is, say £500pm and is collected on the 1st of the month. You can afford to pay an extra £75pm, so set up a standing order for £75pm to go out of your bank also on the 1st.
The reason for the above is that very quickly you will start to “feel” that your mortgage is actually £575pm and you will get used to that within a matter of months.
The beauty of doing a standing order is that unlike a direct debit, a standing order is controlled by the payer, not the receiver. That means that if you have a financial emergency you can quickly log into your online banking and cancel the standing order so that it doesn’t go out next month.
Whilst it would be regrettable to have to stop overpaying, at least you would have benefited from the overpayments made up until that point. Some mortgages will even let you make reduced payments or take a payment holiday if you have been overpaying for a while. Before taking a payment break though it’s important to check with your lender. Make sure that you are eligible to do so to avoid a negative mark on your credit report.
Overpaying your mortgage is a great habit to get into. You don’t need to go hell for leather at it unless you feel so obliged. Even shaving a year or two off will be very welcome when you near the end of the term.
Occasionally, we come across some slight hurdles in the mortgage industry. and people looking for specialist mortgage advice. The process can end up delayed, but they’re not completely impossible to work around. Below is a list of the top 5 hurdles we’ve come across.
It ‘s a sad, unfortunate day when you and your partner decide to call it quits. You may have made joint financial commitments, and unwinding that side of things does not always run as smoothly as you’d like.
Here are the three main questions we get asked on a regular basis;
Often there is a solution of some sort with the help of a local mortgage expert, providing that you have enough income available and also are young enough for the mortgage payments to be affordable.
In our experience, families are not normally turned down for a mortgage for this reason, but it is extremely common for a lower mortgage amount to be offered.
It becomes most apparent when parents have gone back to work and are paying out for childcare costs, as these can run into hundreds of pounds per month.
These costs are considered by lenders as an outgoing, the same as they would treat a car loan or hire purchase agreement.
Even if there are no nursery fees to pay, parents on lower income still tend to be offered less than their peers without children.
There is, however, some good news, as the amount this type of family can often be in receipt of tax credits. Some lenders will take these into account, as well as child benefit.
There are lenders out there that take a different approach and don’t treat the nursery costs as a specific outgoing and rely more upon Office of National statistics data for typical outgoings and this often leads to a higher maximum mortgage amount.
Often with a new job comes a bigger salary and the extra income to put towards a new mortgage. Gaps in employment and a new job can prove to be problematic for some mortgage lenders.
There are lenders who will work from a newly signed employment contract though even in month one or if your new job is about to start. Probationary periods are usually ok.
All lenders take a different view on benefit income and how much of it can be assessed.
The good news is that all benefit income such as child tax credit, working tax credits, disability benefits, pension income can be taken in to account in one way or another.
This is where the help of a reputable mortgage broker can prove invaluable and can help solve any problems you may be up against.
For any purchase, all mortgage lenders and mortgage brokers like us are required to evidence the source of all of the borrowers’ deposit funds.
This is to satisfy UK Anti-Money Laundering Legislation, which is, shall we say, rather stringent! Your solicitor and estate agent may ask for evidence of your deposit also.
We believe, that this is the most complicated part of applying for a mortgage.
Whether your deposit is from savings, premium bonds, the sale of another property, gifted from a family member or friend, from overseas family, or is from a personal loan, you are required to have the paper audit trail for the accumulation of funds.
Please note that the above information is for reference purposes only and is not to be viewed as personal financial or mortgage advice.
How having your mortgage agreed at the outset can help you negotiate on an asking price
A Mortgage Agreement in Principle is essentially a document to prove you have a mortgage in place. It is something we obtain for all of our clients and almost all Lenders offer them. It also proves that you are credit-worthy because for the Agreement certificate to be issued you must pass the lenders credit score.
A Mortgage Agreement in Principle is not a guarantee that you will definitely get a mortgage as your full application will require further background checks (such as evidence of income) and a satisfactory valuation of the property itself.
However, it is a good idea to get one done at the earliest opportunity for the following reasons:
1. Negotiating Power
2. Avoid Disappointment
3. Knowing your Limits
When you are ready to make an offer on a new home most Estate Agents will undertake due diligence and ask you to produce evidence that you have funds available to complete the purchase. This will take the form of bank statements and also an Agreement in Principle certificate that we can provide for you. Once you have provided them with all this documentation the Estate Agent will then normally stop marketing the property and put a “Sold” or “Sale Agreed” board up.
If you already have a Mortgage agreed before you make an offer you are making yourself appear as an attractive proposition as this proves you are not making an offer on a “whim”, you’ve thought about how you’re going to fund the purchase and done something about it. This might persuade a seller to accept an offer you put forward on their property underneath the asking price.
When it comes to buying a house some clients have always “put the cart before the horse”, that is to say they go full steam ahead and make an offer on a property without first checking that they are actually in a financial position to proceed. This can lead to terrible disappointment if the mortgage application fails because by that time they have really got their heart set on their new family home. This disappointment can be avoided by contacting us at an early stage because sometimes there are things that are causing a mortgage to decline that can be overcome given a little time.
For example, there may be a niggling issue on your credit report, perhaps a disputed mobile phone bill which can be easily rectified. Maybe you thought you were on the Voter’s roll and you’re not – once again that can be sorted out given a few weeks.
Or maybe you can’t get a mortgage at all! But if that’s the case it’s better that you know now rather than mess people about and we’ll be able to tell you what you need to do to improve your credit-worthiness for the future.
Ok, so you know you’ve got a good credit rating because you’ve never been turned down for credit, you’re registered on the Voter’s roll and you’ve always made your credit card payments on time – so what can go wrong?!
Well, you could approach 10 different Lenders these days and get 10 different maximum mortgage amounts! They all calculate affordability in their own unique ways. If you’re self-employed it really is a minefield: some Lenders take your net profit, others your salary and divided. Some use your latest year, others an average over 3 years.
Still think it’s simple?
Knowing your borrowing limits is important as then you know for sure what your price range is. We’ll be able to advise you of the maximum mortgage available to you and, even more importantly, together we’ll work out how much you can afford to pay back each month.
Also known by their official title of “Second Charge Mortgage”, a Secured Loan is a loan that helps secure the property of your dreams, albeit with higher than standard interest rates.
The reason for this is because, in the event of a repossession, the provider of the Secured Loan must wait for the original provider to sell the property before getting their money back. Whilst this is often known as an expensive “last resort”, they can often be incredibly helpful for certain situations.
Your mortgage stays exactly how it is if you take out a Secured Loan. The new amount is borrowed from a different provider and a separate direct debit.
The length of this new amount varies, as you could take it out over a shorter or longer-term than your main mortgage. If you’re only in need of a small amount, you may benefit from looking at unsecured borrowing.
When first-time buyers are ready to make an offer on a property you want to buy it’s important that you put your circumstances across to the Seller or Estate Agent in such a way that gives you the best chance of having that offer accepted. You will never beat a cash buyer but if you have a Mortgage Agreement in Principle in place you will definitely be in a better position than other potential buyers (your competitors!) who haven’t taken that step with their Mortgage Broker in Lincoln.
Buying a property is a negotiation process. If your initial offer is rejected then you will be asked whether you want to increase so don’t be afraid to offer less in the first instance than you really are happy to pay. If your increased offer is also rejected sometimes it just boils down to whether you are willing to pay the asking price (especially if the property in question has just been placed on the market) or whether you are prepared to walk away and find somewhere else.
Please feel free to give us a call if you require any help with this or have any further questions, we will be happy to help.
If you are possibly considering taking some form of equity release mortgage, it is understandable that you will want to know what the risks are.
Equity Release Mortgages may not be suitable for everyone so it is important that you get proper specialist advice before making any arrangements. Most people’s concerns fall into the following categories:
With a traditional mortgage, lenders have the right to take possession of a property should the borrower fail to keep up regular monthly repayments. However, since most equity release schemes don’t require a monthly repayment, then this question of “affordability” becomes irrelevant.
With a Lifetime Mortgage, your interest would normally “roll up” so there should be no reason why you would lose your property to a lender.
Historically there have been instances where lenders took possession of properties but these days this type of lending is highly regulated and the industry works hard to avoid circumstances where repossession is required.
The terms of your agreement would normally allow you to stay in the property until you die. If your circumstances changed – for example, you needed to go into long term care – then the property would normally be sold.
With a Lifetime Mortgage, the lender would then be repaid all capital plus any rolled up interest from the sale proceeds and you would retain any excess over this amount.
If you have a Home Reversion Plan, you would have already sold the home to the provider, so in these circumstances, they would then sell the property on the open market and keep all proceeds.
This is one reason why it is important to understand the difference in the type of plan, so make sure your advisor goes through these fully and clearly before making any commitment.
With Lifetime Mortgages, upon your demise, the property would be sold and the capital, plus all accumulated interest would be paid back to the provider from the sale proceeds to settle their mortgage.
The difference between the sale price and the settlement figure would then go into your estate to form part of your inheritance. People often ask: “What if the debt has increased above the value of the property? Will my family have a debt to pay back?” However, you would normally receive a “No Negative Equity Guarantee” which, in simple terms, means that if the above occurred, then that is a risk the lender would have to take and there would be no further repayment required from your family.
Finally, should you have any further concerns, there is an industry body known as The Equity Release Council which exists to ensure that all products of this type are safe and accessible.
All participants in the Equity Release Market should subscribe to the Council’s Statement of Principles which you can check on their website – https://www.equityreleasecouncil.com – along with any other details that may concern you.
In a nutshell, therefore, as long as you ensure that you obtain advice from a firm whose advisors are members of the Equity Release Council, and who recommended products from providers who are also members, then you can be confident that you will receive full, clear information about any worries you may have.
At Lincolnmoneyman.com, we have a history of providing you with bespoke, detailed, local mortgage advice as to what may be the most suitable way forward in your particular circumstances.
To add to this service, we’ve now teamed up with an Equity Release Specialist and between us, we’d be happy to come to meet you in the comfort of your own home to answer any questions you may have on anything mentioned above by way of a free consultation.
Equity Release – How can it help me? Equity Release mortgages can help people in a number of ways. Many people have heard of them, but are unsure as to whether they would be eligible and what benefits they may obtain, so in this article, we’re going to look at:
Firstly, your “equity” can be summarised as the value of your stake vested in the bricks and mortar of the property. So, if you already own your home, then your “equity” is the open market value of your house less the balance of any mortgage outstanding on it. If you’re a buyer, your “equity” is the amount of cash deposit you are putting into the transaction.
Secondly, Equity release Mortgages are aimed at older borrowers. Thus, you’d need to be at least 55 years old to be considered for an Equity Release plan and for some types that increase to age 60.
In general, it’s fair to say that the older you are, the better terms you’re likely to be offered from a lender. Other factors that would be considered in a traditional mortgage application, however – for example, earned income, pension income, number of dependents etc. – do not come into it. It is purely base on the value of your property.
The answer to this question is not entirely straightforward. Put simply, the amount you can borrow on this type of deal will be dictated by a combination of how old you are and how much equity you have?
Most providers have their own calculators and these can vary, but it’s fair to say the older you are, the more equity can be released. Your Equity Release Advisor will be able to accurately calculate this figure for you when you meet up.
The uses of Equity Release are many and varied, here are just a few examples:
In short, most legal reasons can be accommodated. Don’t forget, Equity Release mortgages are not necessarily suitable for everyone and in some of these instances there may be other, more suitable courses of action, but your Advisor will help you with this.
At Lincolnmoneyman.com, we have a history of providing you with bespoke, detailed, local mortgage advice as to what may be the most suitable way forward in your particular circumstances.
To add to this local service, we’ve now teamed up with Equity Release Specialist and between us, we’d be happy to come to meet you in the comfort of your own home to discuss any questions you may have on anything mentioned above.
With a lack of certainty surrounding Brexit news in the minds of many, it can be difficult finding trustworthy, un-edited advice online regarding Brexit. Even more so when it comes to the property market. Many have missed out prime opportunities that could’ve benefitted them a great deal in the long run.
Political situations have been known to influence the property market, of which our mortgage advisors are all too familiar with. As such, they’re preparing for the future by looking at potential outcomes for customers post-Brexit. There seems to be a lot of built-up demand for properties currently.
These are just some of the reasons why we are advising our clients to at least get a wider perspective of their options, especially if they’re planning on just seeing how things go, which may not be the best idea. If you are looking to move into a new house in 2020, we would suggest that you have a chat with as soon as you can. We aim to make the process as smooth and easy as possible.
It can often take a while to prepare your home for sale and to get it on the market. This includes the two or three valuations to get a secured opinion, the time for you to choose your preferred Estate Agent, sign your agency agreement and get the photos finalised.
You may find that other people had the same mindset – when the new year comes around and your home is available on the market, theirs will be available too. The more houses on the market, the more options for home buyers, which in turn could affect house prices.
If you’re thinking of moving in 2020 or the near future, you’re always welcome to get in touch and discuss your mortgage options – We offer a free initial consultation to all customers.
If your personal situation has recently changed and you are looking to remove a person from a mortgage then please get in touch as this can sometimes be quite a specialist area. Our Mortgage Advisors in Lincoln have a lot of experience in this area of expertise and have helped many customers during a financial separation.
If you look at the situation from the mortgage lenders side, they have two people for security on the property, so if a situation like mortgage arrears or more seriously repossession occurred then they have two parties to chase for financial compensation.
If they were to allow one person off the mortgage then this halves the chance they would have to see payment. Usually if the person that wants to keep the property can afford the property in their own right based on income and affordability this may be allowed.
This largely differs between mortgage lenders and this is where I can help as during this time, it may be advisable to switch mortgage lender and get a better mortgage deal in a sole name.
Often, in situations like financial separations a lump sum may be also raised against the property to ‘pay off’ the other party.
Problems can arise, the main one being that the income may not be large enough to afford the whole mortgage in a sole name, there are still ways I can help such as family guarantors etc.
We’re also able to help if you would like to put life insurance policies and any home insurance policies in sole names. Our Mortgage Advisors in Lincoln are very experienced in this field so there is never usually a situation I have not come across at some point before.