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.
Most married couples would rather make joint mortgage applications as opposed to a sole name mortgage. Over the years house prices have been on the rise and with house price inflation outstripping wage increases over the years, in most cases, you can only afford a house if you have two salaries coming in.
Maybe you are married and are looking for a specialist to apply for a mortgage. Sometimes there will come a time where an applicant need to make an application in their sole name as one salary may very well be enough. There are also other other reasons why one of the applicants doesn’t want to go on the application. Here we will take a look at some of these.
One of the applicants may have had a credit problem in the past, something like a bankruptcy or a CCJ. This could get in the way of them obtaining a mortgage. With this in mind, providing the spouse or partner is not connected to that issue, then you could possibly take this as an option.
The person looking to do this would need to be careful to try and avoid creating a financial association with their partner. If not, they could risk their credit score being affected by it, harming their chances of obtaining a mortgage themselves.
Couples generally get a lower maximum borrowing capacity, as opposed to if the working applicant took out the mortgage in their sole name. This sort of thing can occur if only one member of the couple is working.
The mortgage calculation can also depend on age. For example, if you have a 50 year old who is buying with a younger partner, then it’s possible that if they have a good income, the younger partner could go down as the sole applicant.
Lenders will look at the type of mortgage you are applying for and the deposit you are able to put down for it. If you have a large deposit, 30% or more as opposed to 5%, this may work in your favour for the mortgage application.
Stamp duty or other tax implications can often be the driving force behind someone opting to take out a mortgage in their sole name.
Some Lenders have stricter rules about married applicants doing mortgages in a joint name, meaning some have to be a sole applicant against their own wishes. The likely reason for this is because they are concerned that this could in some way affect their security in the future, especially if a couple were to split up down the line. Luckily not all Lenders share this unpopular view.
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.
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.
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.
Many people argue that unsecured credit is too easy to come by and it’s not uncommon for clients to approach us for Mortgage Advice in Lincoln when they have missed payments or have a low credit score.
Once you have missed payments, especially when it comes to mobile phone providers, you may end up with a Default attached to your credit report. This has quite a bad effect on your future ability to obtain a mortgage because it can indicate that you represent a higher risk.
Just because you have missed payments or have a default it doesn’t necessarily mean you can’t get a mortgage but it’s likely that you’ll need some specialist help because it is fairly likely you will be turned down for a mortgage by a High Street Bank who may be risk-averse, especially if you only have a 5% deposit for example.
Specialist Lenders will want to know the date the default was registered against you and the longer ago it was, the more likely it is that we’ll be able to help you, particularly if it was down to a life event such as separation, ill-health or redundancy. People do make mistakes when they are young sometimes and it can feel that these financial mistakes come back to haunt you.
We may also be able to help if you have had historic mortgage arrears or a County Court Judgment.
Whatever the credit problem you have had in the past we are going to need to see an up to date copy of your credit report which you can usually obtain for free online.
It’s important that you obtain your credit report prior to applying for a mortgage if you have any doubts about your credit history because multiple credit searches can further damage your credit rating.
Building up a picture of your individual financial circumstances is the way that our Mortgage Advisors in Lincoln help to find the most suitable mortgage for you. To achieve this, we will always strongly recommend that you obtain a copy of your current credit report.
To do this, we recommend using the ‘Check My File’ report agency. It works by accessing data from the 4 main Credit Reference Agencies, providing a detailed insight into your credit profile. The data that is held may differ in some circumstances, depending on which agency you choose to use. This is why we recommend using Check My File so that we can analyse the data from all 4 agencies.
The next step in the process depends on what type of device you choose to use to email your credit report to us i.e. Laptop PC, Android, iPhone. It can be a little more difficult sending your credit report from your mobile phone.
Our Mortgage Advisors in Lincoln with be able to go over your mortgage options with very accurately when they have reviewed your credit file and made contact with you.
As a knowledgeable Mortgage Broker in Lincoln, our wealth of experience means that we can help with the different criteria set out by many lenders that we work with. Some of these are Specialist Lenders. If you require more information on this, please see our Specialist Mortgage Advice in Lincoln pages.
Whether you are a First Time Buyer in Lincoln or are looking to Move Home in Lincoln, our expertise, partnered with the information you have provided to us in your credit report will help us recommend the most suitable mortgage.
Book your free mortgage consultation today and speak to an expert mortgage advisor in Lincoln.
Recently the mortgage market has taken a huge hit from the Coronavirus. Everything around us is moving so fast. As such, we’ve decided to bring you up to date with what’s going on at the moment.
We aren’t trying to scare you, we just want to explain what is happening, hopefully shedding some light on how we may be able to help you through the problems you may encounter over the next few months.
One of the main problems for the market is that surveyors and mortgage valuers aren’t able to go and visit properties like they usually would. This means that right now, the property market is on hold. Lenders need to know what they are lending against, so some sort of valuation is needed before they accept your application.
Some lenders rely on the Automated Valuation Model (AMV’s) for property valuations. This is essentially a way for lenders to receive a valuation without actually going to look to the property in person. This is only used, however, when they don’t need someone to go look at the physical property. These types of mortgages are only restricted to lower loan-to-values.
Over the last couple of days, as of March 28th, some lenders have been restricting their maximum LTV’s (loan-to-value) down to 60%. So, they are continuing to process these types of mortgage applications, but not necessarily ones at higher LTV’s.
Different lenders are taking different approaches to one another. So far, no mortgage offers have been withdrawn, though we think it won’t be long until that happens. Lenders are putting everything on hold before rushing into accepting more mortgages from potential customers. In fact, we have seen that some lenders have decided to extend their mortgage periods from six months up to nine to allow the economy and the mortgage market to get back up and running once again.
Recently we spoke about Mortgage Payment Holidays. We felt it best to provide an additional reminder that you should only take one if it’s absolutely necessary. Undertake your own research, speak to a Mortgage Advisor in Lincoln, evaluate all of your options and see whether or not it’s something you should explore.
It’s likely the lender will extend the period of your mortgage anyway, so you may be better off just waiting a while longer and seeing what happens. If you aren’t sure about your ability to keep up your monthly mortgage payments, you should get in touch with your lender.
If you decide this is your best option, you’re probably better off enquiring online due to the number of phone calls they are receiving from distressed customers.
If you’re thinking of requesting a payment holiday, make sure you check that it won’t affect your credit rating or mark any arrears against your account. We also recommend that you don’t just cancel your direct debit and remember that you’ll need permission from your lender beforehand.
Unless you are worried you may lose your job as a result or something like that, you should not pull out of your purchase. We would advise that everyone proceed as normal for now to see what happens. You are not committed to completing your purchase until your contracts are exchanged.
There are no changes here. We will advise you accordingly, once we have assessed your requirements. Please get in touch for Mortgage Advice in Lincoln for remortgage advice.
The key thing here is to not worry about yourself. Our team are all here to help you with your mortgage problems, helping you through the next few months. At some point in the coming weeks or months, things will restart again. We’ll all be back to normal in no time.
You can still get in touch with a Mortgage Advisor in Lincoln at Lincolnmoneyman from 8 am -10 pm, 7 days a week. Business is as usual. We can’t wait for you to get in touch and help you with all of your mortgage needs.