Deciding to buy your first property is a challenging task. Therefore, you must take your time, look around for various options thoroughly and make an informed decision.
As you might anticipate, we believe there are some excellent reasons to use a mortgage broker in Hull. Whether the brokerage service is online, you can still pay a visit directly to the lender. Even in technological advancement, we find that most people still refer to a mortgage broker. Hence, we will take you through the pros and cons of both methods.
Firstly, a well-versed mortgage broker will take the time to have an initial conversation with the applicant to help him decipher if you are mortgage ready to make an application. When contacting us and gathering the necessary details, one of our mortgage advisors in Lincoln will make sure to shop around and get the best deals possible.
One of the most notable advantages of going with a mortgage broker is valuable expertise in the home buying or refinancing process. Mortgage brokers have ample industry experience to lean on when offering mortgage solutions to their customers.
Similarly, our mortgage broker in Hull also has access to try and find wholesale rates on home loans. These rates can be lower than the retail interest rates, helping borrowers save a substantial amount of money over the life of a home loan.
Most importantly, a Mortgage broker can be your point of contact from the time you first call them right up to when you finally get the keys of your house in your hands, and we will guide you through the entire process.
On the contrary, going to a bank helps save you a broker fee, saving yourself a reasonable amount. In earlier years, another significant advantage of a bank was that the branch manager knows an individual’s finances in and out. However, that all went by the wayside when credit scoring came in and is no longer the factor.
Likewise, some Lenders offer exclusive ‘direct-only’ deals that a broker would not have any access. Lenders do this to attract a wide range of applicants to make a good spread of business from consumers and brokers alike, turning exclusive products on and off when deeming necessary. On the other side, some products may only be available via the broker and not direct with the lender.
From 2014 onwards, lenders got restricted to sell mortgages on a non-advised basis to just anyone. Up until that point, many applicants felt like the non-advisors had been trying to force actual advice on them. They weren’t able to benefit from some consumer protection that goes with mortgage sales conducted by professionally trained mortgage advisors.
Lenders were coming to terms with and hence the issues present in these services led to a significant shift towards more applications getting made via mortgage brokers who are quick enough to offer you same day mortgage service.
You also need to check carefully if a lender is willing to lend you a considerable amount of money. It does not matter how good a lender’s deal might seem, but he should lend a significant amount. For this reason, people opt to go to an apt and professional mortgage broker in Lincoln.
Nowadays, mortgage applications are no more straightforward. Many factors make a case more complicated. A few of the examples are as follows:
– Poor credit history
– Too much debt
– Payday loans
– Self-Employed Income
– Mixed source of deposit (savings/gift)
– Let to Buy (keeping your current house and buying another)
– Contract workers/zero-hours contracts
In the past years, lenders could stand out from the competition by offering a better deal to the applicants. In the current era, this is different because the lending criteria vary from one lender to another. Some lenders lend more to Self Employed applicants or take a more empathetic view of their credit report’s previous discrepancies.
When you explain your case to an experienced mortgage broker in Hull, there is a possible chance that they have encountered the same thing earlier in the past, allowing them to personalize their service and help you through the process. With extensive experience in the field, your mortgage advisor will hopefully be able to recommend the most suitable lender for you at the lowest rate possible.
More than that, it is not just about getting the Mortgage. Even if the application itself is self-explanatory, we offer extensive experience and knowledge to our clients. For example, we will discuss how much we will deliver on the property they are buying. Our team of mortgage advisors in Hull can recommend other professional services such as Solicitors and explain the different types of protection and survey available.
Another significant advantage of using a mortgage broker is that the brokers are far more responsive than some lenders. Delivering personalized service is the differentiating factor between the broker and a lender.
Besides, another significant reason for hiring a mortgage broker is that it helps you save time. Most customers prefer a broker because they are too busy nowadays. they might need a mortgage but have no time to get it done so that our advisor will take the weight off for you.
You only need one application with a mortgage broker rather than individually filling out forms for every lender. Your mortgage broker can also provide a comparison of any loans recommended; guiding you to the information that accurately portrays cost differences, with current rates, points, and closing costs for each loan reflected.
We advise all our customers new/existing customer, especially First Time Buyers, in Lincoln the importance of having a ‘good’ credit score. Potentially the higher the score, the better of a chance of getting accepted and being successful with your application.
However, you need to be aware that Lenders have their internal scoring system meaning you might not be guaranteed acceptance.
Every lender has their criteria which they have developed over the years. Don’t waste your time troubling if you’ve been unsuccessful with one lender. Other mortgage lenders might be willing to be more relaxed.
It is down to our Mortgage Advisors in Lincoln to match you with the lender that is right for you. End of the day we want the same thing as you – to get the best deal accessible to you.
There are several credit reference agencies in the UK; these include Experian and Equifax. It’s a good idea to look into many of these agencies as possible in advance, to give you a more particular view of your credit score.
Furthermore, it is also plausible that some of these agencies hold inaccurate information. Therefore, by checking with multiple agencies, you can be sure that your information gets appropriately amended.
Numerous credit searches can have a negative impact on your credit score. Be on the lookout of using price comparison websites which are known to be significant credit culprits searching on individuals.
If you are applying for a mortgage soon, it may be wise to apply for additional credit afterwards. Whilst having some credit and paying it back is a good thing for your score in the long run. Lenders prefer to see you control your borrowings right before setting up a mortgage application.
Make sure that you have remained enlisted on the electoral roll, and it improves your credit score. It implies stability which lenders like.
Ensure your name spelt correctly and that it’s your current address which is registered online. If you aren’t registered, it’s straightforward and comfortable enough to do this online.
If you reach your peak your card each month, your score will get reduced. Using a credit card to keep on top of your payments each month is a preferred approach.
It is a good indicator of your lender that you are good at controlling your money. The main red flag in a lenders eyes is if you go above an agreed card limit or overdraft. The reason lenders watch over this is because they want to know you’re able to take your finances responsibly.
You might notice on your credit report that you are living in two different places at the same time if providers have yet to get informed that you have moved houses.
It is pivotal that the addresses which you’re updating get spelt correctly; If you have been residing in a flat, this can be a bit more complex as these address can get formatted in different ways.
If you no longer use individual store/credit cards, you should get into contact with the providers to close the account for extra security. In the short term, this could be seen as having a brief impact on your score as the lender can’t tell who’s closing the account, e.g. you or the provider, but this will be for the better and an advantage to you in the long run.
It’s a great thing to do to reduce your chance of becoming a victim of fraud if you don’t notice you have a lost a card which you may use regularly.
By having, family members or ex-partners connected to you financially could mean that they’re affecting your credit score unknowingly. However, you won’t be able to get the financial association removed if the account is still active though.
To remove the links between you and another individual, you should contact the reference agencies and make a request. The sooner you do this, the more beneficial it will be.
Many consumers feel that credit scoring is an unfair way of applications getting evaluated, Lenders themselves are indifferent to this idea as it makes their overall job more manageable.
It is more expenditure for them to operate this way, and computers give secure outcomes. On the other hand, some lenders do still do it the old-fashioned way but still apply the same rules about the number of defaults and CCJ’s they will allow.
When setting up your application, be sure your report is up to date to increase your chances of being accepted the first time. The more in-depth information which your Specialist Mortgage Advisor in Lincoln has at hand, the better.
At the start of the Coronavirus pandemic, the Government promised that all borrowers would be allowed a three-month mortgage payment holiday on the condition that they needed it. Most lenders followed the Government’s guidelines and did their best to help out their borrowers during these hard few months.
We felt that it is best, to sum up, what mortgage payment holidays are, what lenders are doing, and who can deliver you with help and advice through these next few months.
Mortgage payment holidays are agreements you make with your bank, building society or mortgage lender, allowing you to take a break from your monthly mortgage payments for a set period. In the case of the current COVID-19 crisis, homeowners are being granted 3-months relief.
The 3 months will be added on at the end of your term or your payments will be recalculated at a slightly higher level, meaning you will still have to pay those 3 months back eventually.
Your interest, however, carries on as normal, meaning you’ll technically be paying an additional 3 months of interest on top of what you’ve paid already.
Most lenders would likely prefer to not extend your mortgage term, as you may end up going beyond their standard retirement age. There’ll be more information on this over time.
Depending on the mortgage deal you have in place, you may be able to pay off a lump sum later on in the year to bring your mortgage in line with where it would’ve been had you not taken a holiday.
Mortgage Payments Holidays are available for those with residential mortgages and Buy to Let mortgages, meaning landlords will also have help if their payments are affected.
The full proposal is in detail below:
To discuss your options for Mortgage Payment Holidays, we would recommend speaking to a Mortgage Advisor in Lincoln to start with and not jumping straight into taking a holiday.
We’ll be able to take a look for you first and see if this option is something worth your time. Lenders will no doubt be facing an influx of calls, needing to be free to speak with the most urgent matters over everyone else.
We’ll look through your personal situation and see if there are any other options for you first before you decided to take a Mortgage Payment Holiday.
For a customer, up to date with payments, not in arrears and impacted by COVID-19:
Generally, these can show up on your credit score as a negative mark, but most lenders have said if your case is linked to the virus, they’ll make sure it doesn’t affect your credit score at all.
It’s important that you speak directly with your lender to ask them this, recording their response. Also take the date and time, as well as the name of who you spoke to, to avoid any confusion later on. Different lenders will handle these things differently than one another.
Controversial for some, but there is now evidence that lenders are asking borrowers to try and not make changes to their mortgage whilst within the holiday period. This means, for the time being, you can’t take out a remortgage or product transfer.
In simpler terms, borrowers reaching the end of their current product may be forced to move to the higher lenders variable rate. This means many borrowers who act too quickly could find themselves on a Mortgage Payment Holiday that gains interest on a more expensive variable rate.
This is another reason why we highly recommend speaking to a Mortgage Advisor in Lincoln first, to determine the right path for you to take. If possible, try arranging a transfer prior to asking for a holiday, as that seems like a more sensible option.
Some lenders are offering a temporary switch to interest-only, in order to reduce monthly payments by a large amount, while not adding on any further amount to the loan, by still servicing the interest each month.
You may not need to convert the entire mortgage to an interest-only mortgage and it may be that putting only a portion of this mortgage on that basis could give you room to breathe.
Those who have savings may prefer remortgaging onto an offset basis. This would reduce their monthly payments whilst keeping their savings safe and intact.
For example, someone with a £500,000 loan and £100,000 in savings would only pay interest on £400,000 reducing their payments accordingly.
For others, remortgaging onto another lender, calculating the cost of any early repayment charges, maybe all you need to ease the pressure you currently face. You could also simply extend your current term, thus spreading your payments across a longer time frame.
To discuss any of these options, or to just have a helpful chat about your current situation please contact us and we’ll see how we can be of assistance.
If you’ve decided to stay in your current property instead of moving, then you should probably look to Remortgaging. Remortgages are where you switch to better rates on your current deal. As experienced Mortgage Advisors in Lincoln, this is something we may be able to help with.
The banks rely on their customers sticking with what they know and not shopping around. It’s not uncommon for there to be cheaper offers for you elsewhere, all you have to do is have a look at a price comparison website or contact a mortgage broker to compare deals on your behalf.
If you’ve had your mortgage for quite a long time, then you could be on a low Bank of England tracker deal. You may even be paying less than 1%. If this explains your situation, you might be thinking about leaving that mortgage where it is for now. However, your payments will increase when the base rate eventually goes up.
Subject to the usual affordability checks and assuming you have got equity in your property, then it is entirely possible to increase your mortgage for potential home improvements.
This can be a good investment if you use the money wisely. Often, we see customers do this to facilitate building an extension or converting their loft into an additional room.
You can borrow extra funds for most legal purposes, examples of this would be:
Remember by increasing your mortgage you will end up paying back more interest, so you need to be sure you are doing this for the right reasons.
It can be a bad idea to add debt to your mortgage, as you will end up paying back more interest overall by extending the term of your debts to make the payments lower.
You are also taking debt, which is not secured, and securing it on your home. This puts you at risk of repossession if you cannot afford repayments. Consolidating debts that you can afford or credit cards that are at 0% interest will almost certainly be the wrong thing to do.
However, if you need to reduce your monthly outgoings to avoid missing payments, (which could damage your credit rating), then it might be a possible option.
Often your current Lender will offer you a new deal to stay with them, they may call this a “Product Transfer” or “Retention” product. This isn’t necessarily guaranteed and sometimes you have to contact your provider directly to see what is available.
Some lenders allow you to make a product switch online without taking advice or providing further information/documentation.
Whilst it may be easier to stay with the same provider and switch products rather than put forward a new application to a different lender, you may find that you could save a lot of money by doing so.
Also, many Banks still offer preferential rates to new borrowers over existing ones. One day, Lenders will get their act together and realise that taking a more ethical approach would breed loyalty amongst their customers.
Generally, the longer you look to fix your mortgage the higher the interest rate is. Therefore, if you are looking for the lowest rate possible then it’s short term fixed rate you need. The downside is your mortgage will be up for renewal quicker and when you come to remortgage your payments might increase.
On variable rate, your monthly repayments are subject to change when interest rates change. Many people worry about interest rate rises, particularly after such a long period of low rates. Many people expect a rise in the near future. As such looking to a fixed-rate mortgage deal offers the certainty of monthly outgoings, with no sudden rise in the monthly mortgage repayment
If you don’t like the idea of sorting out a remortgage so quickly then a medium-term fixed rate would be the way to go. Five year fixed rates are popular and you have certainty that your monthly payments cannot increase in the foreseeable future. There is a risk that interest rates might drop meaning you are paying more than you might have been had you fixed for a shorter period.
There are only a limited number of 7 and 10 year fixed rates mortgage deals on the market. These have always been the least popular. Customers tend to feel this is too long to fix in for as a lot can change in a decade! These are the most expensive fixed mortgage products available.
When choosing your mortgage deal be careful to watch out for booking and arrangement fees. A booking fee is payable up-front and an arrangement fee is payable on completion. Some people add fees to their mortgages, but this increases the total amount repayable as interest accumulates on the fee.
If you are taking out a small mortgage then it is more likely that you would want to take out a mortgage with no fees, even if a slightly higher rate of interest applies. The opposite applies if you are taking out a medium or large mortgage, your Advisor will help you with this tricky decision.
Choosing a mortgage requires consideration. There is no one mortgage product that suits everyone. Your selection will depend on your personal circumstances. For example, if you think you may be moving in the next two or three years you may wish to choose a fixed deal for that period. (It is possible to ‘port a mortgage’ but you may be better discussing this with your mortgage advisor in advance). If this is your final move, perhaps a longer-term fixed rate may be more suitable.
Occasionally, we come across some slight hurdles in the mortgage industry. from first time buyers to remortgaging. The process can end up delayed, but they’re not completely impossible to workaround. 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.
COVID-19 has had a noticeable effect on the mortgage market thus far, but that won’t stop us from providing the same level of Mortgage Advice in Lincoln our customers know and love. At Lincolnmoneyman, we are still working the same way we were before these hardships.
We still have hardworking Mortgage Advisors working remotely from their homes in order to answer all of your mortgage questions. Our number one aim is to ensure all customers have the option to speak to a Mortgage Advisor in Lincoln if they need to.
You may be worried you’re unable to meet your monthly mortgage payments or you’ve reached the point where you are looking for a better remortgage deal. We have noticed that these two situations have been mentioned by quite a few customers.
As a Mortgage Broker in Lincoln, we would highly recommend speaking with one of our advisors before you go directly to the bank or lender. We’re able to assess your personal and financial situation, in order to recommend the best route for you to take.
We’ll do our best to help all those who come to us for help with their mortgage during these difficult months. We’re all in this together and look forward to you getting in touch.
We’re still working through various different situations every day, keeping our business flowing as usual. We won’t let anything get in the way of us providing expert Mortgage Advice in Lincoln.
Customers have still been leaving excellent reviews over the last few weeks, something we’re incredibly proud of. We take great pride in our work and it warms our hearts to know that as a Mortgage Broker in Lincoln, we’ve done right by our customers.
Here is what a few customers have recently said about our service here at Lincolnmoneyman:
“Absolutely fantastic service from Chris setting up my application, to Kayleigh sorting out the right remortgage for me, nothing was too much trouble. Cannot recommend them enough for sorting this out in a timely manner and during this pandemic. Thank you to each and every one of you.” – Mandy H
“Brilliant service from Jonathan and Megan, very smooth process and they have secured me a great mortgage deal. Will highly recommend Lincolnmoneyman. Thank you.” – Daniel D
Remember, we’re still available for you to get in touch from 8am until 10pm, all 7 days of the week. Sincerely from everyone here at Lincolnmoneyman, we hope you’re safe and well. We look forward to hearing from you soon.
We won’t let anything get in our way, especially during the COVID-19 outbreak. It’s still our aim to help with all your mortgage problems, it wouldn’t be fair to just leave you confused and concerned. We’ll do our best to get you over these hurdles and through the mortgage process with ease.
Our Mortgage team pride themselves on providing a 5-Star Customer Service to every customer they speak to, easing them into the process and sticking by them every step of the way. This level of service is often why our customers leave such wonderful reviews and, in many cases, come back to us with more properties and/or their remortgage.
As a reward for such dedication to the company values and our customers, our very generous Directors treated the company to a lovely KFC Friday. Boneless Banquets, Zinger Stacks, Fillet Wraps – Only the best for our fantastic team!
It’s moments like this where you get to reflect upon the service we all provide as a collective, realising just how special things are.
The Mortgage Advisor Team who between them work 7 days a week from early 8am in the morning until 10pm at night, often sacrificing their breaks in order to ensure customers get a full 5-Star experience.
To the Administrative team who deal with incredibly tough work on a daily basis, checking through details with a fine-toothed comb and ultimately ensuring a submission turns into an offer. Despite their often long days, they are dedicated and positive, working hard for our customer and are an inspiration to us all.
Without the efforts of these teams combined, we wouldn’t receive the reviews we do, which in turn would leave us less business! We say this as recent case study research has shown a vast amount of our customers come to us based on what previous reviews have said. We can’t thank our wonderful customers enough for being so kind to us in return! If you would like to see some of our most recent customer reviews, please see our customer reviews page.
Our customers mean the world to us and we are very proud of our ability to help them find their dream homes. If you need some 5-Star Mortgage Advice in Lincoln, get in touch and we’ll see how we can help you too!
Our favorite part of our job is seeing overjoyed customers moving into their brand new home. As mortgage advisors in Lincoln, it’s such a great feeling to know we played a part in someone’s dreams being achieved.
We take a lot of pride in being responsive, caring & open and honest for our customers. Reading the lovely genuine reviews from the First Time Buyer, Home Mover and Self Employed customers who are over the moon is the sort of thing that makes the job so worth it for our superb mortgage advice team.
We always put customers first! As a friendly and knowledgeable mortgage broker in Lincoln, we’re able to ease your stress through the whole process by recommending the best deal for you. Our team of expert mortgage advisors and amazing back office team will do the bulk of the work on your behalf. We’ll even work around your family or work life too, making it easier for you.
Through our many years of experience, we’ve come to realise that buying a house may not always go the way you’d like them too. However, with our skills, knowledge and pure determination, we’ll overcome any hurdles by your side.
If you’re looking to purchase a new home in the near future and are in need of some quality mortgage advice, look no further. Our genuine customer reviews below are further proof of just how much we love every customer. Should you choose us as your mortgage broker in Lincoln, we’ll ensure you are in safe hands throughout the whole process.
“Very professional and knowledgeable. Was able to sort our new mortgage very quickly and efficiently. Alleviates the hassle and stress of searching for the best mortgage deals. Would recommend this service and we will happily use again in the future. Thank you.
– Jacqueline W
“Wayne and Laura couldn’t have been more helpful in helping find the mortgage that was best for me. The explained everything throughout in plain English leaving me confident that I was making the correct decisions. The service was very efficient – I wouldn’t hesitate to recommend Lincolnmoneyman!”
– Alwyn S
“A brilliantly supportive and professional service. I have already recommended to my friends and family and will always use this broker from now on, rather than going directly to the bank.”
– Jenine B
This is a scheme to help armed forces personnel get on the property ladder.
Regular armed forces personnel can benefit from a £200 million scheme to help them get on the property ladder. The Forces Help to Buy scheme enables servicemen and servicewomen to borrow up to 50% of their salary, interest-free, to buy their first home or move to another property on assignment or as their families needs change.
Please click here to the Government site for more information …