A common dilemma that some homebuyers come across is property chains. Being stuck in a property chain could slow down your home moving journey, if not put it to a halt.
That said, you may come across all sorts of different problems and hurdles when obtaining a mortgage. Whether your application is stuck in the pipeline or there’s something to do with your offer not being accepted, there’s always something that comes up when you are in the process of moving home in Leeds.
A property chain is a link of house purchases that rely on each other for each purchase to go through. If you are a first time buyer in Leeds, you will always be at the start of the chain. Whereas, if you are selling a property, you will be placed at the end.
Imagine someone that is ready to move into the property they’re buying. The buyer needs to wait for the seller to move out first. That said, if the seller is in the same situation, they too, are waiting for their seller to move out to move in.
The answer to this question is entirely situational, as you are unaware of your seller’s situation.
You may not even know that you are in a property chain, the whole process could run smoothly. Everyone hopes for this situation; who doesn’t want a quick and straightforward moving home process?
If things turn sour, you may be stuck in a waiting scenario. We recommend beginning your process with at least six months of preparation. Leaving you plenty of time to search for that dream home and time just in case you get stuck in a property chain.
Unfortunately, if you are linked with a property chain and one purchase does not go through, the whole chain behind it could suffer. When a property chain breaks, you will have to wait or look for another property.
If the property chain breaks at your purchase, you may be able to stop it from damaging the entire chain if you act quickly.
If you’re selling, you could contact the people planning to buy your property by speaking to your estate agent; this way, you can inform them of the situation sooner rather than later.
Whether it’s something wrong on the seller’s level or your level, there are still ways to prepare for a break in the property chain.
For example, you could buy a property that isn’t in a chain or a small chain, sell your property, rent temporarily, buy a new-build property, etc.
A property chain can break for many different reasons. It could happen at your’s, your seller’s or even your buyer’s level:
These are just a few examples, and there are many more reasons. The length of the property chain that you are in will depend on how drastically these situations impact your ability to move home.
It can be challenging to avoid a property chain, especially if you’re buying at a busy time of year or when the market is hot.
Moreover, you could research and talk to your estate agent to know your position during the application stage. Arranging your finances as early in the process as possible would be wise. The more that you are prepared for things that could go wrong, the better.
If you avoid a property chain (also known as ‘chain-free), you should be able to continue straight through the moving home process. This assumes that you provide evidence that you can afford a mortgage and deposit the property.
If you are considering buying and selling your property, why not let our moving home mortgage advisors in Leeds step in and help you through your process.
You can book yourself in for a free mortgage appointment. Get started today, and we may be able to help you get through the moving home process stress-free.
Has your current mortgage deal come to an end, and do you need to borrow some additional money? If so, then it could be the right time for you to consider remortgaging.
We have witnessed far too many customers who leave searching for a new deal too late and end up falling onto their Lender’s Standard Variable Rate (SVR). We always recommend that all customers keep on top of their mortgage and make sure you know when your term is ending.
A lender’s rate will be a lot higher than your current rate, which will result in your monthly payments increasing. There is nothing wrong with being ahead! Keep on top of your mortgage and speak to a remortgage advisor in Leeds.
Lenders don’t reward loyalty. We have seen some lenders offer better deals to new customers than existing customers who have been with them for several years! That’s why we recommend you look around before committing to the same lender. There could be better offers with lower rates out there.
We understand that some choose to do it by themselves online and switch over there and then. That’s what’s called an ‘execution-only mortgage’. It might be easy to do, but you don’t benefit from any consumer protection. Again this highlights the importance of getting mortgage advice in Leeds before making any rash decisions.
Is your home due for some upgrades? Were you aware that you can remortgage for home improvements? It can be a good investment as some improvements, such as loft conversions, extensions, can potentially increase the property value.
People who are not looking to increase their property value and have found their “dream home” will also borrow for home improvements, there is nothing wrong with this, they just want to make give their home a bit of a makeover. You can increase your mortgage to pay for cosmetic alterations as well as structural work.
You have the decision to use whichever contractor you choose. But, if you need to borrow a significant amount of money, your lender will need to know the estimates for the works you intend to have carried out.
It is possible to raise capital on your property when you remortgage for almost any reason. Some popular scenarios include wanting to raise money for:
Keep in mind that you will be paying interest on a remortgage for a while. Ensure that you are borrowing for the right reasons and keep up to date on your repayments during the entire mortgage term.
Just adding unsecured debt to your mortgage might result in you needing to pay back more interest. A mortgage term can be much longer than a personal loan, but it isn’t always the case.
Make sure to consider that you are taking unsecured debt and securing your home, which will not sit easily. If you cannot afford your mortgage payments down the line, you have put everyone at risk of repossession.
You will need to consider that you are taking unsecured debt and securing your home. Which will not sit easily with everyone as you are under the risk of repossession if you cannot afford your mortgage payments down the line.
You will need to know that if you have 0% credit cards, the interest rates that apply to the debts that you are considering rolling onto your mortgage will start attracting interest too.
It would help if you considered all of your options before deciding to consolidate debts. We think that the best way to make a decision is to seek remortgage advice in Leeds from a remortgage advisor.
A remortgage advisor can evaluate all of your options and then recommend the best route to go down. Your advisor might even suggest that you don’t need to go down the path of debt consolidation remortgage.
Consolidating debts into your mortgage leads to a reduction in your monthly outgoings. We have seen some customers end up reducing their payments by several hundreds of pounds.
If you feel that remortgaging is the right option for you, get in touch to speak to a remortgage advisor in Leeds today. We will help and assist you with all your mortgage-related needs.
Some people find the idea of sorting out a pension can be slightly off-putting. Nevertheless, it is worth doing so as they can genuinely benefit you later when you approach the legal retirement age.
Over the years, you will likely have paid into one or more pension plans, be that personal or workplace. Many clients have little to no idea how much they’ll be worth when they retire!
Those pensions may no longer match your circumstances, this is something your advisor will be able to check for you. It is always worth looking into paying for advice, especially if you have pots totalling over £10,000.
Some employers who offer defined benefit schemes (final salary pension) may motivate members to transfer their benefits to a different provider. Once you have found a trustworthy pension advisor, you can build up that long relationship with them. They will then review your pensions regularly, ensuring you are on track to the income in retirement you were hoping to aim for.
The following could possibly be happening without your knowledge if you haven’t had your pension review in a while;
Before considering a pension transfer, seek advice from an experienced and qualified pension advisor in Leeds who will make a personalised recommendation.
If you are retired or approaching retirement, this is an excellent opportunity to seek professional advice.
Pension drawdown (aka income drawdown) allows you to cash in a percentage of your pension tax-free when you’re over a certain age. These rules do change, so it’s essential to seek advice to remain up to date.
Your pension provider may offer you an uncompetitive annuity when you come to draw your pension but again speaking to a qualified pension advisor will potentially open up more options for you and possibly increase your income in retirement, this can lead to a better and healthier retirement lifestyle.
If you would like some specialist advice in Leeds, please get in touch. we would love to point you in the right direction.
A single homeowner like yourself might not be married or have any plans to settle down with kids soon, but that doesn’t mean you should rule out taking out any life insurance. There are reasons as to why single homeowners would benefit from taking out life cover.
If something unfortunate were to happen, having a life policy in place can support your family in dealing with unpaid debts such as outstanding mortgage payments.
Should the policyholder (the person with the life cover) passes whilst still making mortgage payments. The policy pays out a lump sum, equal to the cost of the current home loan, to cover the remaining mortgage debts.
If you are living with a partner or do have kids, the cover might get extended as a means of providing your dependents with an income boost to cover any living costs for the time being.
Although extra protection is not always necessary for single cover applicants, we firmly believe taking out any insurance to cover your mortgage is worth doing.
If a single homeowner passes before their mortgage has been fully paid off, their bank or building society can look to pay back the mortgage loan from their late customer’s estate, i.e., their collective belongings (accumulated assets is a term you might see used for this).
In most cases, we find that to pay off the remaining mortgage balance, and the property will get sold at auction. If the home has fallen into negative equity, the lender has the right to demand that the estate make up the difference.
The lender does have the right to demand that the property gets sold, and any family members cannot make up any shortfall. Additionally, if the probate process happens to be drawn out, the lender can continue to add interest charges, increasing the total amount to be paid.
Taking out life insurance will help to prevent these problems from occurring.
If you are looking at your options for potentially taking out life cover, please get in touch and speak to one of our dedicated protection advisors in Leeds.
If you have any intentions to become a first time buyer in Leeds or are already a homeowner with a change in circumstances, we recommend you to get on top of it now rather than late.
First time buyers in Leeds like yourselves actively seek out your first home or a Home Mover in Leeds with your house on the property market. However, you may have noticed that some of the more notable estate agents and builders would favor that you use their in-house mortgage advisor and conveyancing services.
As a responsive mortgage broker in Leeds, we have no ties with banks, building societies or estate agents, and we work solely for the customers. In the past, we do often find ourselves speaking with customers whom some estate agents have urged to use their in-house financial services. Some of the scenarios include;
Some estate agents have previous track records of refusing to put an offer forward if you decide to use a different mortgage advisor instead of their own. At times they have also declined to put offers forward to the vendor because someone who has used their in-house mortgage advice service has also made an offer that they’d instead show favouritism.
Another sales tactic we see often is the estate agents quoting immensely overpriced conveyancing fees. In the past, we have had clients who have unfortunately had this happen to them; one customer mentioned they got quoted more than £1,500 for a regular purchase.
With our knowledgeable mortgage advisors in Leeds helping out, we got this cost down. Following this, we suggested that the client use another conveyancer in the nearby area and get this down to £750. That’s precisely half of the quoted price.
Once you have made an offer, you might receive a phone call detailing whether you got accepted. However, the estate agent will call up and demand to know which conveyancer you have used in some cases. It seems like the next logical step.
What follows is that the estate agent declined to take the property off the market unless you agree that you will use their in-house service.
As you might imagine, their quotations will be extortionately overpriced and utterly unfair to the customers, but they will put you on the spot and make you feel like you have no choice to take enlist their services.
The good news is that this is something a mortgage broker in Leeds can help you get prepared. The questions that need answering then are as followed:
No, you have the freedom to go wherever you wish when it comes to your mortgage process. You can use any broker, any conveyancing or any other financial service. It’s all down to what you would personally prefer.
You are under no obligation to use the services on offer from the estate agent, as their job is to foresee the sale between yourself and the vendor.
“Keeping everything under one roof is easier with one point of contact.”
“If you use our services, it will give the vendor peace of mind that everything will go through smoothly.”
“We will do all of the chasings of the solicitors for you, and they’ll be more responsive to us due to the amount of work we send them.”
“You need to come in and see our mortgage advisor for your offer to be qualified.”
“Everything is likely to go through quicker if you use us.”
“Free carpet/washing machine if you use our (extortionately priced) recommended conveyancing service.”
“Choose us and your offer is more likely to be accepted if you use our mortgage advisor.”
“Our service gets better deals than most brokers.”
Always remember, when negotiating a purchase price, is it really within your best interests for the person selling the property you’re interested in buying to know your financial situation and potentially know how much you’re able to borrow to pay for that property? Something which they can then use against you to convince you to use their financial services?
Stay vigilant and make sure that they know this and do not guilt you into a trap if you do not want to use it. It’s your mortgage, your offer, your potential home. Getting in touch with a dedicated mortgage advisor in Leeds will help you be as prepared as possible in advance of encountering these tactics.
A lender will need to see your bank statements to learn more about you and your spending habits. How you have acted lately, and the presentation of your bank statements can affect how much a lender will let you borrow, if anything at all.
The lender needs to know you’re responsible with your money and can be trusted to handle finances appropriately. After all, a mortgage is likely the most significant financial commitment you will ever make in your life.
Your bank statements are easily obtained either in the post from your bank, over the counter from your local bank, or, as often seen these days, as a printable version from your bank’s online platform.
Again, they need to know you’re responsible for your finances. One of the things they’ll be looking at is if there are any overdrafts. Using this often is not necessarily a bad thing, but if you exceed your limit regularly, this will put your level of trust into question.
More factors to be careful with are potential returned Direct Debits, showing a lender you are not consistently reliable and not disclosing loans at the application stage. It won’t look good if the lender finds outgoings on your bank statements that you failed to mention. Once again, this is a process of trust.
Other things include missed payments for personal loans and items such as credit cards. If you can prove you handle your money well and meet monthly payment deadlines, a lender will be more likely to lend you an amount closer to what you would like to borrow.
Customers find themselves stuck when they have a history of gambling. The occasional bit of fun is harmless, but if you are frequently betting large amounts of money, whether you’re making it back or not, a lender will not look at your situation favourably at all.
To learn more, please see our article on “Do Gambling Transactions Look Bad on My Bank Statements?”
From our experience working with many First-Time Buyers in Leeds & Home Movers in Leeds, we have found that most mortgage lenders will want at least three months of bank statements from an applicant.
With that in mind, it’s time for you to forget the past and think about the future. You have at least three months to work on your finances. The first thing we’d suggest is that if you are a frequenter of the local bookmakers or online gambling scene, you take a break for some time. Not only does this benefit your financial state, but it can benefit your mental health too.
The following steps we would recommend taking are to trying to save money. For example, cooking instead of eating out, treating yourself to unnecessary purchases and cancelling unneeded subscriptions are great ways of freeing up additional cash to ensure you can pay bills on time.
Again, this boils down to simply being sensible and planning with plenty of time ahead of what you’re looking to do. The further away you find yourself from bouts of debt and financial uncertainty, the better your chances will be with a lender.
When lenders ask for your bank statements, you can expect them to look for various things. Remember, their goal is to assess whether you are the sort of person who has the suitable funds to keep up to date with their mortgage payments. In recent months, we receive a handful of enquiries asked by applicants regarding if gambling transactions look bad on their bank statements.
Whether you have an odd bet on the world cup or regularly use internet betting sites, there is nothing illegal about licensed gambling. And the adverts do urge customers to gamble responsibly, and the same principles are the same when applying for a mortgage.
Whilst it is not a lender’s job to tell you how to live your life, how to spend your money or indeed to moralise on the ethical rights and wrongs of gambling, they do have a duty (underscored by mortgage regulation) to lend responsibly.
Suppose lenders need to prove to the regulators that they are making prudent lending decisions. In that case, it isn’t entirely unreasonable of them, therefore, to expect the people to whom they lend to adopt a similar approach when it comes to their finances.
Think about it. If you were lending your own money to a ‘friend’, would you lend it to someone who frequently gambles or the one who doesn’t?
Again, it is not illegal to gamble; having the odd gambling transaction on your bank statements doesn’t automatically mean your application will get declined for a mortgage.
The lender will consider whether these transactions are reasonable and responsible. They will mainly look at the frequency of these transactions, the size of the transactions about the person’s income and the impact upon the account balance.
If these transactions are infrequent small amounts that make no significant impact on a regular credit bank balance, then they are not likely to be regarded as necessary. However, if you bet most weeks or constantly overdrawn, the lender is expected to see that as irresponsible and decline your application.
As we’ve seen, lenders are looking at your bank statements to show how you manage your money and to help them establish whether this gives them either the confidence that you are financially reasonable or the evidence that you are not.
Remember, lenders, are financial institutions that, either directly or as part of a wider group, often sell current accounts, overdraft facilities, credit cards and personal loans, so understand that these things can all play a role in financial planning.
Nothing wrong with having an overdraft and occasionally using it. That’s what it’s there for; however, regularly maxing the overdraft limit each month is not good. Therefore, lenders will look for excess overdraft fees or returned direct debits because these would generally show that the account is not getting handled well.
Other things to look out for include credit transactions from payday loan companies; “undisclosed” loan repayments (i.e. if you said on the application that you have no other loans but there appear to be regular loan payments, this could be a problem);
They would look out for any missed payments; they might also consider how much of a typical month gets spent overdrawn – i.e. if you only go into credit on payday and the rest of the monthly earnings get stretched, how sustainable is this mortgage?
The simple answer is – be sensible and, if possible, plan. Typically, a bank would ask for up to three months of your most recent bank statements. These will show your salary credits and all your regular bill payments.
Therefore, if you know you’re likely to want to apply for a mortgage in the not-too-distant future, try to make sure that you avoid any of the above pitfalls. Take a break from gambling for a short while and work on presenting your bank account in the best possible light.
Your mortgage broker in Leeds can help you as some lenders may ask for fewer bank statements than others, or indeed, some may not even ask for them at all.
However, even these lenders would reserve the right to request bank statements in certain circumstances, so your best bet (no pun intended) is to be as prudent as possible in the run-up to any mortgage application. Remember, if you do gamble, please gamble responsibly!
If you are a First Time Buyer in Leeds who doesn’t know a lot about mortgages, you should get some specialist advice from a Mortgage Advisor in Leeds. They will guide you through the whole mortgage process and help you with your application and get you on track so that lenders will be impressed.
First time buyers in Leeds like yourself can sometimes find the entire homebuyer experience to be stressful. It doesn’t have to be that way. To help you make the most of your subsequent house viewing and be as prepared as possible, we’ve put together a list of nine common questions to ask when considering enquiring on a property.
There is nothing wrong with sitting down and thinking about whether or not you wish to buy a property before committing to it. It’s understandable, as it is one of, if not the most significant financial commitment in your life.
Finding out how many people have viewed or enquired about the same property can give you a more accurate gauge of how much ‘thinking’ time you have before making a definitive decision. Additionally, if the property receives much interest, you need to be prepared to have a final answer sooner rather than later.
If the property is part of a chain, it can significantly impact some areas of your mortgage process.
If there is no onward chain, you will likely be able to move quickly, especially if you are not part of a chain yourself. In addition, if there is no need to sell your property first, you will have more advantage as a buyer because you will not hold up the home buying process.
Make sure you use this tactic when negotiating a price.
Unless you are not buying a new build property, some previous homeowners like to leave items behind to save on costs, which could work in your favour. These can include and not limited to a washing machine, fridge, freezer, or typically a shed if the property has a garden.
If the appliances work, it’s perfect for new buyers saving a bit of cash until they get something new and modern, though if you don’t want or need these items, you will have to factor in disposing of them.
However, if you buy a new build property, there might be optional extras you can purchase brand new and ready for you on your moving day.
When moving into an area that you are not particularly familiar with, it’s worth finding out what the neighbours are like, as a good or bad neighbour experience can frequently make or break your experience of living in the property.
However, if you opt to move to new homes, you and your neighbours will create the community, which can also be a risk initially as you don’t know what they will be like. Of course, first impressions are not everything, but it’s always handy to get on with neighbours as you both will be presumably living there for a while.
Running costs can depend on the property location in Leeds. Therefore, it pays to research and asks the right questions. For example, find out how much the Council Tax is and the average spend on utilities by asking the seller or researching online. Having this information is handy to help you budget for each property accordingly.
Suppose you like relaxing in the garden in late summer evenings or reading books in natural light—the direction the house faces can make such a significant difference. However, some location can sometimes pay a more premium price for a south-facing garden as they receive the most sun throughout the day.
Again, this is something that can have a significant impact on your budget. Therefore, some essential things to find out information about are:
🏠 Making sure the property is energy efficient.
🏠 Sorting any damping issues (if any).
🏠 Changing the furnishing.
Negotiating on a property price is a pretty standard part of the house-buying process. Therefore, it’s essential to be as prepared as possible to make an offer on a property that you like. You can learn more about improving negotiating on a property price and being one step ahead here.
It is also worth chatting with the seller or estate agent to determine what the seller of the home you are after may consider being too low or too high. Find out if any other offers have been made and rejected before your bid.
By setting a date in your diary, you can plan your other jobs, such as instructing a conveyancing solicitor, packing your belongings and arranging a removal van to bring your belongings to the new property.
The good news, you have had your offer accepted on a property. However, is the house actually worth what you said you would pay for it?
A property survey will carry out to find out the actual value and the property’s overall condition. Then, the surveyor inspects the property and highlights any concerns, such as structural damages like uneven walls or subsidence.
They will highlight any significant repairs or alterations needed, such as repairing the roof.
There are numerous survey options available. The three main types of property surveys are mortgage valuations, homebuyer’s report and a full structural survey. Depending on the Lender, the survey might be free of charge. Read on for a more vital explanation of the different types of survey available.
The outcome of your survey report will vary depending on the survey that you choose. Some provide you with in-depth detail, whereas others will only brush upon certain aspects. You’ll find that the more in-depth a survey is, the more costly it will be.
Nevertheless, navigating the property market can be complex, and it can be tempting to choose the cheapest solution. But attempting to save money on a survey may lead to far more expensive in the long term.
If you discover something on your survey about your property that you weren’t told about, by law, you are allowed to approach the seller and negotiate a fairer price.
Mortgage Valuations are the simplest type of property survey. These are carried out to work out how much a property is worth. Your lender will need to ensure that the property price matches how much you are set to borrow from them.
For example, if you put an offer above the property’s actual value, the seller will likely accept your offer. However, your lender won’t. Unless you have the funds to make up the difference, the lender will pull out of the deal. This is called a down valuation.
Unfortunately, this type of survey doesn’t point out apparent repairs and damages. However, it can inform you of obvious structural defects that will require a further look at. For additional property investigation, you will be required to pay more to upgrade your survey. In the long run, this may be worth it.
A Homebuyers Report focuses on safety. How safe is the property? Is it suitable for living? These things need to be checked as there could be a mould problem, damp issues or something that does not pass the current building laws.
A property expert will carry out the report. They will examine the property from top to bottom, ensuring that it’s safe for you to move into.
As a Mortgage Broker in Leeds, if you’ve made an offer on an older building, we would strongly advise that you take up a Full Structural Survey.
This is the most expensive property survey because the whole property is surveyed. It will also provide the most significant insight to the property out of the three primary surveys, highlighting what condition the property is in and what changes need to be made if the property purchase goes through.
A Full Structural Survey can take as long as a whole day, depending on the property size.
New build properties work slightly differently. There is a property survey specialised for them called a Snagging Survey. This survey will point out both minor and significant issues, and it could be anywhere from a crack in the ceiling to a missing hinge on the door.
If the new build has already been built and it’s ready for you to move into, ideally, you want to get a snagging survey carried out on it before moving in. This way, you have the power to negotiate to price if there is anything wrong with the property.
If you need guidance on which survey to choose, don’t hesitate and get in touch to speak with one of our reliable mortgage team. We’ve helped hundreds of First Time Buyers and Home Movers in Leeds select the most suitable property surveys for previous customers – you could be next!
You can receive the services of a surveyor to carry out a Homebuyers report or building survey through the Royal Institution of Chartered Surveyors.
We offer all new/existing customers a free, no-obligation mortgage consultation over the phone 7 days a week.
We’ll listen to your situation and try our best to answer any question related to mortgages and the whole home buying process, which can be even more stressful if you are a First Time Buyer in Leeds.
After the consultation, we’ll be in a position to recommend the most suitable mortgage for you. We can also provide you with an agreement in principle, and this certificate can help strengthen the chance of any offers you make on the property.
An Agreement in Principle can prove to the vendor that a lender has agreed that they will lend you the required mortgage amount, providing that you have passed their checks at a later stage.
1 – A phone call to take some essential information to find out what you are looking to do. We will then recommend the best mortgage for you.
2 – Finding a property!
3 – Before making an offer – we will finalise your figures and help you get a specific deal.
4 – We will start your application and process your mortgage right through to you getting your keys. We will provide help and support during the whole process and help resolve any hurdles that get in the way.
Don’t worry about it, and it is never too early to talk with a Mortgage Broker in Leeds about your situation. Any questions you may have can all be answered, and you will know when you may feel comfortable to be in a position to proceed.
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