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Removing a Name From a Mortgage in Leeds

Removing a name from a mortgage advice in Leeds

Whatever the reason is for wanting to remove a name from a mortgage, the process may be hard and complicated. As soon as you take out a mortgage in multiple names, getting your name or someone else’s name off can prove difficult.

It’s not impossible to take a name off a mortgage. Here is why people want names removed from a mortgage and how you can do it:

Why would you want to remove a name from a mortgage?

Divorce & separation

The first and most common example would be if you were going through a divorce or separation and needed to take either your name or your ex-partner’s name off the mortgage. When going through a breakup, financial arrangements get pushed to the back of your mind, however, they should be actioned on first. Leaving the complicated processes till last can be stressful. You will also need to allow some time for your lenders to do what they need to do; they can’t just remove a name just like that.

Your lender, building society or mortgage broker in Leeds will need to know that both parties will be able to live comfortably with just one income. If one party decides to remain within the household, the lender will need to make sure that they can afford the mortgage payments by themselves or whether they’ll still need help with them. Both parties must agree for a name to be taken off a mortgage, therefore, if one party says no, you’ll be required to go down the route of court proceedings, which can be costly and time-consuming.

If you’re going through a tough divorce or separation and need specialist mortgage advice in Leeds, we’re here to help you arrange the mortgage side of the process.

Transferring to a family member or friend

Surprisingly, this process is fairly straightforward, even more so if you choose to use a mortgage broker in Leeds.

The process will involve the homeowner transferring equity to their family member or friend. Essentially, the mortgage will get transferred with the equity remaining inside the property. The new homeowner will still be required to prove that they can afford a mortgage. They’ll have to pass their lender’s affordability and eligibility assessments.

A party is not paying their share

If a party is not paying their way, it can start causing you problems as you’re financially associated with them. Believe it or not, as a mortgage broker in Leeds, we’ve seen this situation come about quite a lot, it’s usually when there’s been an argument within the household!

If bills aren’t being paid by one person within a household, it can affect everyone else too. When you sign up for a mortgage with multiple names, you’re trusting that everyone is going to keep up to date with their payments. Missed payments can negatively affect your credit rating and score.

If you’re in this situation, it may be best to approach your lender. Alternatively, you can speak to a professional mortgage advisor in Leeds and help before it gets worse.

Need help removing a name?

When you’re wanting to remove a name from a mortgage, it’s essential that you speak with an expert. Getting specialist mortgage advice in Leeds will definitely help you out.

We would recommend describing your issue to your mortgage advisor in Leeds and going from there. Before you can continue, the named party that you’re trying to remove will need to prove that they are able to live comfortably with one income. This part of the process can be a struggle, particularly if a party is refusing a name to be removed.

Let our team handle the stressful parts of this process. Our specialist advisors are available 7 days a week, make sure to get in touch.

Interest-Only Mortgage Ending in Leeds?

Interest-Only Mortgage Advice in Leeds

What are my mortgage options in Leeds?

As a mortgage broker in Leeds, we see many Interest-Only Mortgages come to the end of their term. In quite a few of these situations, people have struggled to pay their mortgage off in full.

Our job is to help you through these kinds of situations and give you advice on what you can do if you are faced with these problems.

Here is everything about interest-only mortgages and what you can do if you’re struggling to pay off your mortgage.

What is an Interest-Only Mortgage?

We’ll rarely find someone that has taken out an Interest-Only Mortgage on a property that they’re living in. Usually, it’s only landlords that take out Interest-Only Mortgages these days. Landlords do this so that they can maximise their profits, Interest-Only Mortgages can help them do this.

During the 1980s and ’90s, these mortgages were very popular, even amongst buyers that wanted to live inside the property that they’re buying. Their idea was that they would pay interest on the capital owed then pay the lump sum back at the end of the term.

At the time of these borrowers taking out an Interest Only Mortgage, it’s likely that they also set up an investment vehicle, this is usually a low-cost Endowment policy. This policy provided life cover to pay off the mortgage should the borrower die.

Sometimes, people were advised wrongly and wasn’t made aware of the risks involved with an Interest-Only Mortgage. There was no guarantee that the investment would mature for a big enough sum to repay the mortgage. Leading to a surge of complaints, and thousands of people received compensation if they got mis-sold.

Why have people still got Interest-Only Mortgages?

Endowment Mortgages are more of a thing of the past. It’s been a very long time since they were popular. You’ll still find people with them though. It may be that they just haven’t got around to switching to a repayment mortgage. If you end up in this position, it can be a very worrying time because you might be worried about losing your home.

You can still take out Interest-Only Mortgages, however, you will have to pass a lot more requirements to get one. Lenders are much stricter nowadays and matching their criteria may be tricky.

If you take one out now, you may encounter problems in the future.

What can I do about my Interest-Only Mortgage?

A borrower could be taken by surprise by their lender requesting full repayment of the balance. This may happen if there’s been a lack of communication between the applicant and the lender. Lenders should be regularly writing to their Interest-Only customers to ensure that they know they must make plans to repay the capital.

If you have no means to repay the capital, our advice is to keep the lines of communication fully open with your lender. They will be very experienced in dealing with these situations, and you just need to let them know where you stand. Lenders never want to repossess your property, although, they will do this as a last resort.

Here are some of the things you could be doing to resolve the situation:

  • See if your lender will switch you to a Repayment Mortgage if this is affordable.
  • Consider selling up and downsizing if this is achievable.
  • Use your savings/assistance from family members. Sometimes parents will “fast-forward” a future inheritance if they can do so.
  • Speak to a Mortgage Advisor in Leeds and see if you can Remortgage in Leeds to a new Lender.
  • Consider Equity Release/Lifetime Mortgage option through a specialist advice firm.

What are my options?

Following on from our last points, there are far more retirement mortgage options open to borrowers now than there has ever been. If you manage to qualify for one of these, you can continue to pay interest to protect the equity you have in the property. Alternatively, if you are not worried about leaving an inheritance to your children, you can let the interest roll-up and cease making payments altogether.

One major problem in getting a mortgage through Equity Release tends to be the loan to value. You must have a decent amount of equity in your home to qualify for one of these products.

Mortgage Broker Leeds

Can I get a mortgage as a student?

Student mortgage advice in Leeds

University: a place to enjoy freedom, independence and time away from the parents! However, as you know, university life comes with costs and lots of different fees. With constant bills, it can sometimes be hard to see what you’re actually paying for, particularly with student accommodation.

When it comes to student accommodation, you may feel like you’re getting your money’s worth yet sometimes you may feel the complete opposite. You’re in luck if you manage to get a landlord that looks after you and your property and takes care of damages and repairs quickly. On the contrary, you could get a landlord that isn’t responsive at all and leaves you with broken appliances for weeks on end.

Unfortunately, more often than not, students will end up getting a landlord that doesn’t give much back to them and treats them poorly. In this situation, it can make you question, is it really worth spending all of this money to get nothing back? If you’re asking yourself this question, why not consider becoming your own landlord?

When you are your own landlord, you’ll avoid all the hassle and be able to sort things out yourself. You can become your own landlord by taking out a student mortgage. Although it can be expensive in the short term, it can save you money as soon as you get the keys and start living in the property!

Why should I get a student mortgage?

A student mortgage will not only allow you to save money on your accommodation but will also give you an early chance to get yourself onto the property ladder. Usually, these mortgages are more popular amongst students who are planning to carry on their education to a masters/PhD level.

Even if living within the property is temporary, you can always sell it in the future and make money back on it. Alternatively, you could turn it into a buy to let in Leeds to rent out to other students.

When your university journey comes to an end, you will have built up a large amount of equity within the property. This equity, when released, can be turned into a lump sum of cash. You can use this cash on whatever you want, whether it’s for another deposit, a wedding, a car, etc. Since it’s your money and your equity, you can spend it how you want.

There are many different things that you could do with your property in the future!

How can I get a student mortgage?

Sometimes, it can be hard to obtain a student mortgage because you’ll need funds in place to afford one, and for a student, this can be difficult.

As a mortgage broker in Leeds, when a student enquires about a mortgage, we have to ask them some questions to learn about their financial situation and see whether they’ll be able to qualify for one or not. Firstly, we will need to find out whether you have a deposit at the ready. Your deposit can be a gifted deposit, from a Lifetime ISA or even as simple as funds from a savings account.

Secondly, we need to make sure that you can actually afford a mortgage. One of our mortgage advisors in Leeds will measure this by working out your mortgage affordability. You will certainly need a form of income to get a mortgage as a student. Depending on your lender, you may be able to get a mortgage with a part-time job, however, most lenders will only accept a full-time job.

Showing reliability

Showing reliability is key. You need to show the lender that you’re a reliable applicant that will be able to afford a mortgage. Here are a few examples of how you can increase your reliability:

Increasing initial deposit – By putting down a higher deposit, the overall amount that you’d need to borrow for a mortgage would decrease. This would also mean that your mortgage payments would decrease.

Utilising government schemes – Government-led schemes are a great way to increase your reliability for a mortgage. The schemes are under a program called “Own Your Home”, they were introduced to help first time buyers get onto the property ladder.

Through these schemes, you may be able to access a larger deposit. Some of the schemes include the Help to Buy Equity Loan, Lifetime ISA and Shared Ownership. There are many more if you visit https://www.ownyourhome.gov.uk/all-schemes/.

Have an AIP ready – A mortgage agreement in principle (AIP) can benefit your student mortgage application. An AIP proves that a lender is willing to lend to you based on you providing evidential documents to support your income, mortgage affordability, etc.

This is just a few examples, there are more ways to show your reliability as a student. Get in touch with our mortgage advisors in Leeds today to find out even more ways to improve your reliability.

What type of property can I buy with a student mortgage?

Likewise to other mortgage options, you will have to meet certain requirements before securing your student mortgage:

  • The property must be within a 10-mile radius of your university.
  • The property must be 3-4-bedroom house.


With these points in mind, we suggest that you have a think about what you are going to do with the extra rooms. It makes sense to rent them out to help support your mortgage payments each month.

What happens if I can’t afford my payments?

Lenders won’t take any risks when it comes to offering a mortgage student. They will take careful precautions with all student applicants.

When signing off the papers for your mortgage, you’ll be asked to give a name for a guarantor. This is someone who will cover your payments if you cannot meet them at any time. There are some limitations to who your guarantor can and can’t be:

  • They cannot be over 65 at the point of your application.
  • The guarantor must own a property in the UK.
  • They must live inside this property in the UK.


You’ll find that every lender will always have some sort of backup.

For expert help with achieving your mortgage dreams as a student and first time buyer mortgage advice in Leeds, contact our brilliant team today. We will help you see whether you qualify for a student mortgage and perform a free affordability check on you and your file.

First time buyer mortgage advice in Leeds

Why can’t it be easier to get a mortgage in Leeds?

Specialist Mortgage Advice in Leeds

For many first time buyers in Leeds, and sometimes for home movers, getting a mortgage can be a struggle. Whether it’s to do with credit score, deposit size or affordability, you may encounter a problem or so along your mortgage application journey.

As a mortgage broker in Leeds, we’ve seen many different reasons why someone has been declined for a mortgage. In this article, we are going to take a look at the most common situations that we come across:

Failing to match criteria

When it comes to matching lender’s credit scores, some will be easy to match than others. Each lender will be targeting their own type of customer, therefore it’s very unlikely that you’ll pass every lender’s criteria, no matter how good your credit score is.

You’ll find that lenders with the lowest rates will have the tightest lending criteria. To pass their criteria, it’s likely that you’ll also need a high credit score and a clean credit history, etc.

Lenders will only take on reliable customers. They will not take on someone who carries a risk of falling into areas over the course of their mortgage term. If you have a bad credit history or currently have bad credit, you may need to approach a specialist mortgage lender.

As a specialist mortgage broker in Leeds, we can access specialist lenders and can check whether you’ll match their criteria. It’s our job to offer help to customers who are struggling with their mortgage journey.

Deposit amount

There is always uncertainty as to how much deposit you actually need for a mortgage. Is it 5%, 10%, 15%?

It is all down to your credit score to how much deposit you will be required to put down. Typically, the lower your credit score, the higher your deposit will have to be. Obviously, your deposit total also depends on the property that you’re buying, as property price goes up, so will your deposit.

If you don’t have a deposit in place for a mortgage, it’s very unlikely that you’ll be able to get one. However, you may not need a deposit if you’re taking out a right to buy mortgage in Leeds.

Utilising government-led schemes could possibly help you get a mortgage with a small deposit. There are lots of schemes out there to help struggling customers get onto the property. You could take a look at the Help to Buy Equity Loan, Shared Ownership and the Mortgage Guarantee scheme. There are lots of different options available.

Find out more here: ownyourhome.gov.uk

Computer says no

Sometimes you may not find out the reason why you can’t didn’t qualify for a mortgage. The lender just declined your application.

In this situation, it could be anything from that you’ve applied for the wrong product to that you simply didn’t match the lender’s criteria. As a mortgage broker in Leeds, we like to call this the “computer says no”.

Leedsmoneyman will never put you forward for a mortgage product that we know you will not get accepted for.

Our job, as a mortgage broker in Leeds, is to try and find you a suitable mortgage deal that matches both your personal and financial situation. We will thoroughly measure your affordability and perform a credit check on you; this way, we can start searching for a product that’s perfect for you.

Fast & Friendly Mortgage Advice in Leeds

Our team will make getting a mortgage seem easy once you pass the affordability stage. Having a mortgage advisor in Leeds by your side could prove extremely beneficial and will allow you to progress through the mortgage application stress-free.

Now, instead of asking “why can’t it be easier to get a mortgage?”, use a mortgage broker in Leeds!

Our team are available 7 days a week. Book your mortgage appointment online today.

Can I buy a home in Leeds with a small deposit?

So, you’ve saved up your minimum of a 5% deposit and you want to start making offers on properties, however, you are still being let down and being asked for a larger deposit. This could be down to anything, e.g., sellers’ preference, other competition or your credit history.

From in-depth discussions about utilising the government schemes to simple points such as saving more money and waiting, here are some ways that can help you obtain a mortgage with a small deposit.

Utilising government schemes

Taking advantage of government schemes can really help you through your mortgage journey. There are lots of schemes available that come under the ‘Own Your Home’ umbrella. These schemes were designed to allow opportunities for first time buyers and home movers to get themselves onto the property ladder.

Help to Buy Equity Loan

The Help to Buy Equity Loan is a scheme that allows you to increase your total deposit size, hence increasing your chances of your offer being accepted.

The scheme works like so; you take out a Help to Buy mortgage with a minimum of a 5% deposit and your total deposit is topped up by the government to make a total of 25%. The percentage that they give you is the ‘Equity Loan’. This amount will eventually need paying back as it is a loan and not a gift. The loan will be interest-free for the first five years, then, if it hasn’t been paid off, the remainder of the loan will begin gaining interest starting at 1.75%.

Please note that this scheme is only available for new-build purchases and for first time buyers only. Therefore, if you’re a first time buyer in Leeds, this scheme could be perfect for you and help improve your chances of securing a property with just a 5% deposit!

Shared Ownership

The Shared Ownership scheme is very different. Shared Ownership lets you take a mortgage out on a percentage share of a property (usually between 25%-75%) and then pay the rest back via rent.

Since you are only taking out a mortgage on a smaller percentage of the property, your total deposit amount should be lower. Also, it’s worth knowing that you can increase the share of the property that you own further down the line if you want to. This can be a great stepping stone to get you onto the property ladder.

The scheme is a little complex in some cases. So, we’d recommend that you speak to a mortgage advisor in Leeds like us before diving headfirst into the scheme.

Lifetime ISA

A Lifetime independent savings account should be introduced when you’re thinking of moving or buying your first home in Leeds.

This is because it’s a savings account where your money grows year on year interest-free. You can put as much money in it as you’d like each month, as long as it doesn’t exceed a total of more than £4,000 over the year. This is the maximum that you can save each year.

Each year, the government will top up what you’ve saved by 25%. So, if you save up to the maximum you will get an extra £1,000 for free. The savings from the account can be used for one of two things: buying your first home or saving for later in life.

If you set up a Lifetime ISA at the very start of saving for a deposit, you may only require a small deposit as the lifetime ISA can cover some of it for you!

Right to Buy

If you’re currently living in a council house and planning to make an offer on the property, you may only be required to put down a small deposit, or in some cases not one at all.

This is because some lenders offer a right to buy discount through the government since you’ve already been living in the property.

95% mortgage guarantee scheme

This government-led scheme allows you to get a mortgage with just a 5% deposit. Therefore, if you go down this route, there shouldn’t be many reasons why you’ll be declined.

Of course, getting a mortgage is not guaranteed in any way shape or form. You’ll still be required to pass credit checks, affordability assessments etc.

Alternative to using government schemes

There are other ways besides using government schemes to get a mortgage with a smaller deposit.

Have an agreement in principle at the ready

An agreement in principle (AIP) or also known as a decision in principle (DIP), can boost your chances of getting a mortgage with a smaller deposit.

An AIP shows that a lender is willing to lend to you given that you can provide sufficient documentation to prove that you’ll be able to afford a mortgage. If you’re making an offer on a property, you may be putting yourself in front of someone who’s also put in an offer who doesn’t have an AIP in place.

In this situation, it’s not really about the deposit. The indication to the seller will be that they’ll be able to continue through the process quicker by choosing you. Either way, they’re selling their home, choosing you will just speed up their process!

Keep saving!

An obvious alternative would be to carry on saving up. Even pushing back your home buying journey for a further 6 months could boost up the total amount of your mortgage deposit.

Your small deposit could become much bigger if you knuckle down and save for just a little longer, in fact, it could get you over the edge that you need.

If there aren’t that many houses on the market that are appealing to you, there’s even more of a reason to wait for a little longer.

Remember that the 5%-mark changes depending on the property. If you want to move into a larger home, you may need to save up more anyway.

Taking out a loan to cover your deposit

This is a very specialist situation and often, lenders will not allow it. As a mortgage broker in Leeds, we’ve seen it happen before, but it’s always on rare occasions.

Taking out a loan to cover your deposit can sometimes affect your ability to get accepted and this is because you are essentially borrowing 100% of the mortgage.

This results in having to account for multiple repayments. Lenders will question whether you’ll be able to afford it or not. They can’t risk lending to you if that loan is going to affect your ability to keep up to date with your mortgage payments.

Again, this is a specialist topic, and we would advise that you speak to a mortgage advisor in Leeds and get in touch with us first. Taking out any sort of loan during the months leading up to your mortgage application could potentially be a bad idea.

How to Improve your Credit Score in Leeds

Credit Score Mortgage Advice in Leeds

Firstly, what is a credit score? A credit score is a numerical value that lenders use to calculate your affordability for a mortgage loan/any form of credit, etc. Although different lenders have their own unique credit scoring models, the credit score that you’ll have listed on your score will likely range from 300-800+.

Credit score criteria

  • 300-580 – A score within this range is considered poor. Having a credit score like this can lower your chances of being accepted by your lender. You may also be limited to specialist products and have to put down a higher deposit.
  • 580-670 – This is a fair credit score. Your lender may be more lenient with you and your application with a score like this.
  • 670-740 – You have a good credit score if you fit in this range and your chances of being accepted will be higher. This is the most common credit score amongst applicants.
  • 740-800 – This score is classed as very good. A very good score in this range can further increase your chances of being accepted for a mortgage and will likely open you up to more competetitive rates.
  • 800+ – If you have a score greater than 800, it is classed as an excellent score. Your score is considered well above the average, well done!

A credit score below the ‘good’ range may mean that you’ll only be able to access specialist products, whereas, if you have a score that’s greater than ‘good’, it’s likely that you’ll be able to access more competitive products.

Reasons that your credit score may be lower

As an experienced mortgage broker in Leeds, we handle specialist cases every day. More than often we find that our customers have come to us after being declined by their bank/building society due to a low credit score or something similar. It’s our job to pick up where they left off on their mortgage journey and try to secure them a great mortgage deal.

There are many different reasons why you could have a low credit score. A common reason that we come across is that there is a county court judgement (also known as a CCJ) associated with the applicant’s name. You may receive a CCJ when you’ve taken a loan/borrowed money and have failed to pay off the amount owed. CCJ’s can put a harmful imprint on your credit file for 6 years or more, and that’s why it’s so important that you try and get the CCJ removed from your file prior to applying for a mortgage or make sure that you pay off all owed payments before you receive a CCJ. A CCJ will undoubtedly reflect negatively on your mortgage application and your lender will start asking questions.

Following on from CCJ’s, failing to stick to credit agreements can also harm your credit score. Even failing to keep up with your mobile phone contract payments can eventually cause damage to your credit file. You can’t forget about the little things either, as they can cause damage too. For example, dipping into your overdraft every month could cause a long term negative effect.

These are just a few examples of things that can negatively affect your credit score. Of course, there are lots of other reasons why you may have bad credit and some more obvious than others. It’s our job to try and help you improve your score and give you expert tips to try and get your credit file looking up to shape.

Way to improve your credit score | moneymanTV

Improving your credit score in Leeds

Improving your credit score, especially when it’s low, can sometimes be difficult. When it comes to helping you improve your credit score, we want to give you the best advice possible to help you do so.

You should know that each lender has their own unique passing criteria, so your score may affect what sort of deals you can access from each one. Also, you may not match every single mortgage product, so rather than applying for lots of different products, you could try shopping around for mortgage deals that will definitely match your situation and credit score.

Avoid unnecessary credit searches

You’ll have a soft or hard credit search performed on you every time that you go directly to a lender and their in-house mortgage advisor puts you through for a deal. This search will leave an imprint on your credit file and other lenders will be able to see the search. If your application is declined, the credit search on your file may have a negative impact on your credit file. This is why we recommend keeping the number of searches performed to a minimum.

This is where we can help! As an expert mortgage broker in Leeds, we aim to get it right the first time, which means that we will take a look at your credit score and only look for products with criteria that we know you’ll pass.

Avoid credit applications

Applying for credit, particularly during your mortgage application, can sometimes backfire on you. If you take out a loan or apply for extra credit if you fail to pay it off before your application, your credit score may dip and it could reflect badly on your credit file.

In some cases, as long as you pay it off, borrowing credit can actually help improve your credit score. This is because you are showing that you are a reliable applicant that meets their payment deadlines.

Check that you’re on the voter’s roll

An easy way to help improve your credit score is to get yourself registered onto the voter’s roll (if you aren’t already). Being on the voter’s roll shows that you are who you say you are and you live where you say that you live. It’s a simple registration process; head over to the official government’s electoral roll page to find out more.

Make sure that you fill out accurate information when registering for the roll. You will need to provide your current living address, so make sure that there isn’t an old one on their system.

During the mortgage application process, you should make sure that all of your information is filled out correctly, double-check that you’ve not got an old address listed anywhere!

Don’t run close to your maximum limit

Maxing out your credit card(s) each month can heavily impact your credit score, in a negative way. Of course, paying off your credit cards each month will help and may give your credit score a small boost.

If you are exceeding credit card limits and always dipping in and out of your overdraft, they may feel as if you don’t take your finances seriously and are an unreliable applicant.

Remove financial links to others

Your credit score could be getting harmed without you even knowing if you are still financially linked to someone who has bad credit. Whether it’s an ex-partner or a family member, if they are harming your credit score, you should try and get your financial links removed from them. The only way to do this is to get in touch with your credit reference agencies and make a request.

Is it all about your credit score?

At the end of the day, it’s up to your lender to decide whether they feel like you are the type of person that they want to be lending to. Some may be more lenient than others, whereas some may be strict and won’t give you some leeway.

Sometimes it’s best to get help from professionals like us. Using a mortgage broker in Leeds could allow you to access new, competitive mortgage products. Whether you’ve got bad credit or good credit, it’s our job to try and find you a product that you perfectly match. We have a huge panel of both high street and specialist lenders, each with 1000’s of mortgage deals for you to try and access.

For further credit score mortgage advice for first time buyers in Leeds and home movers in Leeds, feel free to get in touch today.

Have You Been Declined For a Mortgage in Leeds?

Specialist mortgage advice in Leeds

If you’ve been to your bank and been declined for a mortgage, you need to be careful about applying again and then getting declined again. There could be many different reasons why you’ve been declined, some may be easier to fix than others too, it depends on your situation.

Here we look at some of the most common reasons why people get declined for a mortgage.

Failing a credit score

One of the most crucial steps to obtaining a mortgage is passing the lenders credit score. Depending on factors, such as your personal and financial circumstances, some may be easier to pass than others.

Each lender will have their own unique lending criteria. Usually, if you are applying for a mortgage through a high street lender, you may be expected to have a higher credit score and be able to match competitive criteria, whereas, if you have a low credit score or have had past credit problems, you may be required to use a specialist lender with limited products.

Failing a credit score may also negatively impact your overall credit rating; this is why we advise that you don’t keep applying to different lenders if you’re getting declined. Rejected applications may show up your credit file, and may affect your score and ability to get accepted for credit.

If you’re struggling to get accepted, you may benefit from using a mortgage broker in Leeds, like us. We are a specialist broker who try and help people in this or similar situations. Rather than getting declined and potentially damaging your credit score, you should get in touch and we will see how we can help!

Improving your credit score in Leeds

Folowing on from ‘failing a credit score’, getting declined due to your credit score not matching a mortgage product can be dissapointing, and that’s why you should know that you can sometimes improve it!

If you have a low credit score, it is usually down to previous/current credit issues. This could be something from a CCJ to numerous unpaid phone bills. A low credit score is usually considered as less than 500, so if you fall within this range, you may need to look for specialist products.

You can increase your credit score in some cases. For example, if you have a credit card that you use regularly, you should make sure that you pay the balance off in full each month. Surpisingly, being on the voter’s roll can also help as it shows where you live and adds another proof of address on your credit file. Even closing old credit/store accounts and removing your financial links to others can help improve your score.

Improving your credit score can be tricking, if you watch some more top tips, check out our YouTube Video on “How to Improve your Credit Score“.

Declined for a Mortgage on Affordability

Every lender will have their own way of calculating how much you can borrow. It’s possible that you could approach ten different lenders and the outcome is ten completely different answers. Depending on the lender that you’ve used, you may recieve a more lenient offer than others.

Some mortgage lenders will assess 100% of an employee’s overtime and bonuses, whereas others will not. Additionally, some lenders will accept “unearned” income, such as tax credits, child benefits, and maintenance. It’s all down to the lender that you use.

If you use a mortgage broker in Leeds like us , we can approach several different lenders without the need for a credit check in order to perform an affordability assessment. We always advise that you carry out a affordability addsessment prior to applying for a mortgage and viewing properties in Leeds. You want to avoid potential dissapoitment further down the line.

Proving that you have maintained mortgage or rent payments in the past does not necessarily guarantee that you will pass a lender’s affordability test.

Outside of lending policy

All Lenders have their own unique lending criteria. This will be individual to their own products hence, depending on your situations, that’s why some lenders are better than others.

Some lenders have even have their own niches to attract borrowers that they want. Some will tick different boxes, e.g. you may get a specialist lender who aims to help applicants with bad credit, whereas, another lender may stay away from these applicants.

Here are some examples of why your application has been declined for being outside of policy:

  • Length of time in employment or self-employment.
  • Adverse credit history
  • Not enough deposit
  • Non-standard property construction
  • A married applicant applying for a sole mortgage
  • Minimum/maximum age or mortgage term
  • Minimum/maximum loan amount

Mortgage Broker in Leeds

As a mortgage broker in Leeds, it’s our job to only compare mortgage products that we know you’ll match. We will never recommend you a product that will not benefit your situation.

Whether you’re a first time buyer in Leeds, or moving home in Leeds, we’re here to help! We know the difficulties that come with the mortgage journey and we know how to get by the majority them.

Get in touch today for a free mortgage consultation. We can’t wait to hear from you!

Remortgage for Home Improvements in Leeds

Mortgage Product Transfer vs Remortgaging 

Remortgaging is where you switch to a new mortgage product. Some tend to confuse remortgaging with product transfer; the difference between the two is that when you remortgage in Leeds, you change products and lenders, whereas when you achieve a product transfer, you switch mortgage products but stick with the same lender.

Everyone remortgage scenarios can be different. It all depends on what the homeowner wants. They may want to look for a better rate of interest, consolidate their debts, or raise capital for things such as home improvements.

This article is going to be centring more on remortgaging/transferring products for home improvements.

Remortgaging for Home Extension | MoneymanTV

How does it work?

We always recommended breaking down the estimated costs for the home improvements before you remortgage. From extensions to conversions, depending on what you want to improve in the property, the prices will differ. 

Once you have worked out your estimated costs, the additional funds will be added to your mortgage. This will slightly increase your overall monthly payments as you are now paying off your mortgage as well as your home improvements. In some cases, your costs may barely increase. Again, this all depends on the home improvements carried out. As a Mortgage Broker in Leeds, we’ve seen some customers go up by an extra £50, to an additional £200.

Estimated costs include:

  • Architect’s plans and services
  • Building costs
  • Building regulation inspections
  • Planning permission
  • The VAT

We would also advise that you have some extra savings aside from the remortgage, as if things go wrong or the costs don’t quite add up, you may have to cover them.

Why would I want to remortgage for home improvements?

The most common reason for people remortgaging for home improvements is to make more space. Whether it’s because they’re starting a family or want a bit of extra room within their home, the whole process can be a good alternative instead of moving home in Leeds.

Rather than going through the whole moving process, if you already love the home you live in, why move? It often works out that it’s much cheaper to remain inside your current home too!

You can remortgage for various types of home improvements; some include:

  • Kitchen conversion – If you are long overdue for a new kitchen, it may be time to remortgage for a new kitchen. Many people choose to go down this route over most home improvement options.
  • Conservatory – A conservatory provides a lovely peaceful place to relax at the back of a house with a stunning garden view.
  • Loft conversion – Lofts are trendy amongst most homeowners. It’s rare to find a house that doesn’t have one nowadays. In particular, larger families or are looking to start one.
  • Garage – A garage accommodates all sorts, a safe place to store your car, household items, garage workshop, or it can even be converted into another room if you’d prefer.
  • Garden extension – Garden buildings of all types became famous, thanks to the previous lockdowns. They can give you extra living space, provide a quiet area for leisure out of the house or be a distraction-free working space. 

Free remortgage consultation

Whether you need the extra space or just because you want to refurbish your home, there is always an enticing reason to remortgage. Feel free to contact our team to book you in for a free remortgage consultation, and let’s make a start on your application.

Our efficient team works 7 days a week, so make sure to get in touch to have a chat about your remortgage options. There are other remortgage scenarios to consider, so if you’re going to go down a different route, we would be more than happy to help with that too.

Gifted Deposits FAQ’s in Leeds

First-Time Buyer Mortgage Advice in Leeds

When you are a First Time Buyer and are struggling to save up for your deposit, sometimes a little help is needed to give you a financial boost. More often than not, this assistance comes in the form of a gifted deposit.

What are Gifted Deposits?

Gifted deposits are simply when a family member or friend give you a sum of money to use towards your deposit. It could be the whole of the deposit or just a small portion of it. Usually, it’s First Time Buyers that receive gifted deposits, however, we’ve also seen people moving home and still receiving a gifted deposit.

The person who is providing the gift will have to prove where the funds have come from and sign to say that it is a loan and not a gift. Lenders rarely let you use a loan for your deposit as you are technically borrowing 100% of your mortgage. Even if you are borrowing from a family, it’s still payments going out each month to pay them back.

How can Gifted Deposits help?

Gifted Deposits can be incredibly helpful, especially if you are a First Time Buyers in Leeds. As a Mortgage Broker in Leeds, we’ve seen Gifted Deposits actually put people way above the usual 5% minimum deposit. This is because they’ve already had some sort of deposit in place, so they combine the two and make up a deposit greater than 5%.

It can be a challenge to save up for a deposit, especially if you are looking at buying a larger home. As mentioned before, you will usually only need a 5% deposit, although this can change depending on your lender and how the economy is performing. This is why having a family or friend to step in and help is extremely helpful.

They can put you in a great position when it comes to negotiating prices. If you have a little bit of extra cash, you may be able to get a better property or put in a higher offer to increase your chances of getting the property. As long as you don’t go too high you should be okay; you don’t want to have a property valuation carried out only for it to be downvalued.

Gifted Deposit Mortgage Advice in Leeds

How Much Deposit Do I Need to Buy a House in Leeds?

Mortgage Advice in Leeds

Usually, the minimum required deposit that you’ll need for a mortgage will be 5%, however, this can vary depending on a number of things. For example, it could be down to your credit history, type of house, where you live, etc.

It also depends on what you are trying to do. Are you planning to move into the property or rent it out as a Buy to Let? Are you thinking of buying the property through a government scheme such as the Help to Buy Equity Loan?

Everyone’s situation is different, so make sure that you are aware that the amount of deposit that you need can change depending on the circumstances.

Why do I need a deposit anyway?

Let’s take it back to the mid-2000s when the credit crunch was on the horizon and lenders were handing out mortgages to people who couldn’t even afford one. Some of them didn’t even need a deposit to obtain one! Of course, this didn’t work out and the mortgage market crashed in 2008 and didn’t get back on its feet until 2013.

This is why lenders now require a deposit. They need to be certain that you’ll be able to afford a mortgage and be a reliable borrower. That’s why applicants with bad credit usually have to supply a higher deposit amount; they’ve had credit issues in the past and they could be unreliable and not be able to meet their mortgage payments. This isn’t saying that you cannot get a mortgage with bad credit, it could just be a little harder to.

Assuming you’ve got a good credit history and your credit score is green, it’s more likely that you’ll be able to access a 95% mortgage. If your credit score isn’t as good, you may expect a 10%-15% minimum.

Will the government pay the deposit for me?

The government won’t pay for your mortgage deposit, however, they can help you put down a deposit through the use of their mortgage schemes. The schemes include the Help to Buy Equity Loan, Lifetime ISA and the mortgage guarantee scheme. To find out more about the government-led schemes available to you in Leeds, you should check out our government schemes article.

One of these schemes could be the key to unlocking the start of your mortgage journey!

I have 5% deposit – is that enough?

Yes, at the time of writing this (09/06/2021) a 5% deposit is good enough. However, this could change depending on the lender that you’re using. You’ll find that most high street lenders allow a 5% deposit; these are also the lenders that will often offer the best rates of interest.

You’ll also need to prove that you afford a mortgage. You may have saved up to that 5% mark, although, you may not actually be able to afford the rest of the costs that comes with a mortgage. You will have to maintain your mortgage payments for the whole of your mortgage term.

My Credit History is Poor – How Much I Need to put Down?

As briefly mentioned above, if you have a bad credit history, you may be asked to provide a deposit of around 10%-15%.

Additionally, you may be only able to access specialist mortgage products. If this is the case, you should get Specialist Mortgage Advice in Leeds; we can still give you our expert opinion and help you find the best deal available to you based on your personal and financial situation.

What about Buy to Let?

You will require slightly more to put down a deposit on a Buy to Let property. It’s always been like this, it’s usually anywhere between 20%-40%. As a Mortgage Broker in Leeds, we’ve seen that most High Street Lenders ask for a 25% minimum.

There are some factors that can help you get a Buy to Let mortgage, for example, if you’ve already built up a Buy to Let portfolio, lenders may be more likely to lend to you.

Can I Take out a Loan for the Deposit?

In some cases, this is allowed, however, in most cases it is not.

Lenders rarely accept deposits that have come from another loan because then basically you are being lent 100% of your mortgage. If you have more questions about this topic, we would advise that you speak with a mortgage specialist.

A Mortgage Broker in Leeds like us is available to talk all 7 days of the week, so if you have any questions, feel free to get in touch.

Can someone Gift me a Deposit?

Lenders always encourage gifted deposits as they are a great way for First Time Buyers to get onto the property ladder. Gifted deposits are exactly how they sound, they’re when a family member or friend gives you a lump sum of money to use towards your deposit.

You are able to use this gift as long as you can prove where the original funds came from. The person who has gifted you the deposit will also have to confirm in writing that it is not a loan, it is a gift.

Are there any Circumstances at all Where I don’t Need a Deposit?

There are only a couple of different situations where you won’t need a deposit for a mortgage. One would be if you are buying as a sitting tenant at a discount from the open market value. Another would be if you were buying from a family member. Finally, if you qualify for a discount under the Right to Buy mortgage scheme, then normally you don’t need to put any of your own money in as the equity is already “built-in” to the deal.

Please note that the above information is for reference purposes only and is not to be viewed as personal financial or mortgage advice.

Leedsmoneyman.com & Leedsmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited registered in England, registered number 6789312 and registered office 10 Consort Court, Hull, HU9 1PU.

© 2021 Leedsmoneyman - Mortgage Broker

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