You’ve managed to save up for a 5% deposit and are ready to start making offers on properties. However, you are still being let down and being asked for a larger deposit. Not being enough to save for a lerger deposit 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.
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.
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!
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.
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!
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.
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.
There are other ways besides using government schemes to get a mortgage with a smaller deposit.
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!
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.
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.
Throughout the year our Mortgage Broker in Leeds like to help out charities where we can. Making donations, sharing images, educating the workplace and those who follow us online. When we saw that the 18th October 2019 was going to be a charity day bringing awareness to another great cause, we just couldn’t resist taking part.
The occasion was to raise money and awareness for Breast Cancer Now, a charity that aims to help fund a future where everyone who develops breast cancer survives, living a long and fulfilled life.
Merging with Breast Cancer Care earlier this year, they’re supporting nearly 450 of the world’s best researchers across the UK and Ireland, to try and make a better life for anyone affected by this awful disease.
We started our charity day, by arriving in our pink t-shirts (Compliance Manager Paula also opted for big pink heels) and getting everyone “glittered up” with pink glitter on their faces, hands, arms and beards. Then as the day went on, things got wilder! We had photoshoots with all the staff, a quiz was passed around (it was a lot harder than it looked), there were a variety of cakes dotted around, and we even had a raffle – Everyone loves a good raffle!
Overall the day was fun and full of excitement, finishing off with the fantastic news that we’d raised £161 for Breast Cancer Now. We’re incredibly grateful for all involved and their willingness to shed light on a cause that desperately needs more attention. In particular, we want to say thank you to our very own Mortgage Administrator Kayleigh Steward, whom without we wouldn’t have had this brilliant day.
With the right help and guidance, your mortgage process should go smoothly. In some cases, it’s not always guaranteed to go so well. Speaking to customers some applicants had face various hurdles along there mortgage journey. As a Mortgage Broker in Leeds, below we listed some of the most frequent mortgage hurdles that we came across in the past.
You shouldn’t be declined a mortgage because of childcare costs. But depending on the amount, having child care costs can sometimes be a large outgoing and having these costs, may reduce the mortgage amount you can borrow.
Most lender class childcare costs as a loan or a credit commitment. Which means even if you didn’t have these costs, having children in general means you will have large outgoings going out each month.
Because of this, you are likely to borrow less than a mortgage applicant with the same income, that doesn’t have any kids of their own. There are some mortgage lenders out there who will take child care costs into account, which can increase this amount, though this isn’t always guaranteed.
Nobody ever buys a home with a partner, only to result in divorce or separation. It’s does happen, and leaves the family finances in need of a drastic reorganisation. Some of the most frequently asked questions we receive include:
All of the above can be done, though this will depend on a case by case basis. You will need to seek out expert mortgage advice and speak to a experienced Mortgage Advisor in Leeds. In some cases, if you rece any child maintenance, this can sometimes be used as assessable income for a future mortgage.
It all depends on the mortgage lender, some lenders will require you to have been in work continuously for a certain period of time, whereas there are others with different criteria.
You will also find that it is entirely possible to get a mortgage. If you are soon going to start a new career. A signed contract and written job offer communication will often be a good way of helping you achieve this.
There could potentially be some hurdles if you have had any gaps in employment, as some lenders will flag that up. In other cases any probationary periods should be okay.
Anti-Money Laundering precautions are very strict. All Lenders will require evidence of your deposit, and you will need to prove the origins of your savings. You may also be asked for this by an estate agent or solicitors, depending on who you go with.
Cash deposits are not ideal at all. Any red flags in your bank statement will be heavily questioned and it is entirely possible your mortgage application will be rejected.
You may be able to utilise a gifted deposit, with some of or all of the deposit being gifted by a family member or friend. That person needs to confirm in writing that it is not intended to be paid back as a loan, becasue as the name suggests it’s a gift.
If you’re facing hardships as a First Time Buyer in Leeds, stressed because of Moving Home in Leeds, book your free mortgage appointment to speak with one of our expert Mortgage Advisors in Leeds.
Even if we haven’t listed a situation your in, it’s possible we’ve helped another customer in a similar situation. Let our trusted expert Mortgage Advisor in Leeds help you with your mortgage application.
If you are wanting to know the maximum amount you can borrow for a mortgage, you can book yourself a free mortgage appointment to speak with one of our expert Mortgage Advisors in Leeds.
From our experience, the two most popular questions we find that First Time Buyers in Leeds in and Home Movers in Leeds ask us are; can I get a mortgage in my situation and if so how much can I borrow?
Here we will take a closer look at the latter of the two, which has changed a lot in the past decade, followed by what happens now during your mortgage process.
Looking back to the 90s, before credit scoring was a thing, people would manually underwrite all mortgage applications, which means that the process of approving mortgages got left to real people and not just computers.
You would book an appointment for an interview with your local building society to speak to the building society manager. From there, you would present and discuss your case.
Back then, you could probably guarantee that this would turn into a sales pitch, where they would assist you to start saving with them for a while until you can prove to them that you are creditworthy.
The manager would then grant you what a past equivalent of today’s Agreement in Principle was. Following this, the customer would then be given some advice on the amount they could borrow.
While sounding like a highly personalised process with a simple and common-sense approach, there were many wrong decisions. The manager had the discretion to interpret the lending manual in the way that they wanted to.
In other words, you could have gone to the same building society in a different location and left, having obtained an entirely different outcome than the previous branch you visited.
To prevent this and to cut any costs that weren’t necessary, lenders started using automated affordability, so when lending to customers, only provide them with a figure three or even four times their annual income.
Going forward to the early 2000s, lenders relaxed, even more, becoming arguably even too generous in how much they would be willing to lend their customers.
Some lenders would offer out self-certified mortgages, a process that meant no background checks would take place, and the customer could self-certify their income, even if the buyer falsely inflated the amount they were declaring.
The market fell apart, and these kinds of practices brought about the infamous Credit Crunch of 2008. The years that followed, between then and 2010, were incredibly challenging times.
This was especially the case if you were trying to get onto the property ladder for the first time. At this point, lenders had to change, and much stricter lending criteria had to be put in place.
Through lots of dedication and perseverance, the market recovered. In 2014 the regulator launched the Mortgage Market Review (MMR), a brand new and completely revised set of guidelines for lenders to follow to prevent the Credit Crunch from happening again.
No longer were the old-style income multipliers available, which took little account of household spending habits.
It may come as quite a surprise, but before 2014, whether their credit histories were good or bad, two applicants earning the same income could more or less be able to borrow the same as each other.
This was also not factoring in how much they were regularly spending. All-new affordability models came from that point, taking a much more forensic view of how exactly those applying for a mortgage handle their finances.
As well as this new cap, typically, most mortgage lenders will no longer go past 4.75 times your annual income, and they prefer to have an in-depth analysis of your spending habits.
Your habits may entirely depend on your situation, such as having high childcare costs, a potentially large amount of credit commitments, and in some cases, any student loans to pay off. In cases like these, a mortgage lender will most probably offer you less than, say, your work colleague who has far fewer outgoings.
Nowadays, there are significant differences between lenders in how much or little they will lend to some customers. From time to time, some lenders have been known to penalise low-earners.
It could just be that they are not looking for that type of applicant. Some take pension contributions as a fixed outgoing, so may lend, for example, a public sector worker with a significant pension deduction, less than a private-sector worker.
Each of these different lenders has its unique lending criteria, and each customer has its own situation. Suppose you need to maximise your borrowing capacity to have a chance at buying your dream home.
You will highly benefit from expert Mortgage Advice in Leeds. Our team will search the market on your behalf to try and match you to various lenders criteria.
If you want to know exactly how much you should borrow for a mortgage and are ready to go, please get in touch and book yourself in for a free mortgage appointment to speak with one of our Mortgage Advisors in Leeds today. We will talk to you and work out your finances with you to ensure you are comfortable with the maximum amount you can borrow and what your monthly payments will be.
Lenders use a credit score to help determine whether you qualify for a mortgage loan or any form of credit. Using your credit report and any other details you provided during your application, lenders use a mathematical model to establish a numerical score representing your credit history.
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+. Your credit score represents what kind of borrower you are and how likely you will manage your repayments.
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 greater than ‘good’, it’s likely that you’ll be able to access more competitive products.
As an experienced mortgage broker in Leeds, we handle specialist cases every day. We often 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. To speak with a mortgage advisor, book your free mortgage appointment online or give us a call
There are many different reasons you could have a low credit score. For example, 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 six years or more, and that’s why it’s so vital that you try and get the CCJ removed from your file before 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 CCJ’s, failing to stick to credit agreements can 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 adverse effect.
These are just a few examples of things that can negatively affect your credit score. Of course, there are many other reasons you may have bad credit, and some are 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.
Improving your credit score, exceptionally when low, can sometimes be challenging. 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 its 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 many different products, you could try shopping around for mortgage deals that will fit your situation and credit score.
You’ll have a soft or hard credit search performed on you whenever you go directly to a lender, and their in-house mortgage advisor puts you through for a deal. This search will imprint your credit file, and other lenders will be able to see the search.
If your application gets declined, the credit search on your file may harm your credit file, which is why we recommend keeping the number of searches performed to a minimum.
As an expert mortgage broker in Leeds, we can help. Our team of experts will look at your credit score and only look for products with criteria that we know you’ll pass.
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 poorly on your credit file.
In some cases, as long as you pay it off, borrowing credit can help improve your credit score, as this shows that you are a reliable applicant who meets their payment deadlines.
An easy way to help improve your credit score is to get yourself registered onto the voter’s roll (if you aren’t already).
If you aren’t registered, 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 address listed on the system.
During the mortgage application process, you should ensure that all of your information gets filled out correctly and double-check that you’ve not got an old address listed anywhere.
Maxing out your credit card(s) each month can heavily impact your credit score negatively. Of course, paying off your credit cards each month will help and may give your credit score a slight boost.
If you are exceeding credit card limits and constantly dipping in and out of your overdraft, they may feel as if you don’t take your finances seriously and are an unreliable applicant.
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, you should try and get your financial links removed from them if they are harming your credit score.
The only way to do this is to contact your credit reference agencies and request.
It’s up to your lender to decide whether they feel like you are the type of person they want to be lending. 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 vast panel of 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 and Home Movers in Leeds, feel free to get in touch today.
Taking out a mortgage will be one of the most significant financial commitments that you will ever make. You will want to get your dream property for the best deal you can get.
The good news is that you have the chance to plan ahead of other buyers to help improve your chances of getting your mortgage application accepted. – One of these examples will be having an Agreement in Principle before you start viewing properties.
You may come across a point where it is unlikely to plan for a mortgage, for example, if you and your partner decide to split up. It’s unfortunate when this happens. However, if you are in this situation, you may need to move from a joint to a sole name mortgage.
We recommend that all new customers start planning their mortgage for up to six months before you begin Moving Home in Leeds.
Preparing your application for all possible situations will prove beneficial further down the line. If you encounter a problem, in theory, you should be able to figure out what to do to resolve it.
Utilising over 20 years of experience within the sector have allowed us to come across various mortgage problems. When it comes to the end of the mortgage process, some hurdles could crop up, and our Mortgage Advisors in Leeds may be able to rectify them if you prepare right.
Here are some general hurdles our customers frequently come across.
With up to six months of preparation and planning, you may be able to avoid some of these problems.
Saving up for a deposit can be tricky, especially if you’re stuck renting. It can take some First Time Buyer in Leeds several years worth of savings to save for a deposit.
Location varied; some might find it challenging to save up for a ‘5% deposit’ as you don’t know the exact amount you need until you find a property you like. Each 5% total will vary from property to property.
Customers who struggle to meet that initial deposit total will often get help from their parents through a gifted deposit. A gifted deposit is an extra cash boost given to a homebuyer to help buy a property and can equate to some, or all, of their deposit.
Gifted deposits were given with the understanding that the money doesn’t need repaying.
If eligible, you could also apply for one of the Help to Buy schemes if you need a deposit boost. These Government schemes got explicitly made for applicants that needed help to buy a newly built home. If you’re a First Time Buyer in Leeds looking for help getting onto the property ladder, one of these schemes could be suitable for you.
Your credit score is fundamental when it comes to applying for a mortgage. Having a poor credit score can lower your chances of getting accepted for a mortgage. Of course, it depends on what is the cause for you having a low credit score.
If it is because of a CCJ or bankruptcy, your chances of being accepted can be lowered further, depending on how long ago these issues occurred.
If you want to look at your credit score, we recommend using Check my File. Check my File allows you to get a copy of your credit report, from there on you can establish whether you have any credit issues that might be flagged up or prevent you from borrowing from a lender. Once you have this, feel free to send it to us, and we will take a look at it free of charge.
During the approach to your mortgage application, you need to think about how you conduct your finances. Lenders will be carefully analysing your bank statements and will see everything that’s going in and out of there. An example to look out for would be gambling transactions.
Lenders aren’t keen if they see frequent and erratic gambling transactions on your bank statements. They will see gambling with large sums of money unreliable and possibly decline your application.
If you’ve been lucky enough to receive a gifted deposit, we advise keeping that sum of money in the gifter’s account.
Because your lender will see a large bank transfer into your account and ask questions, sometimes it’s better to leave the gifted deposit inside your family member’s or friend’s account.
Self employed applicants often have a hard time when it comes to getting a mortgage. Usually, this is because they are required to evidence more than a usual mortgage applicant.
You will have to submit at least one year of accounts’ and three months of bank statements to prove your income and affordability.
Depending on the lender, you may get asked to provide even more evidence if they are unsure of your affordability.
In situations you can’t prepare for, know that a Mortgage Broker in Leeds like us is here to help. Each person could counter all different kinds of mortgage hurdles and it’s our job to guide you through the entire pricess.
People who have encountered all different types of specialists and complex situations often come to us for expert Mortgage Advice in Leeds. We offer a helping hand and back you up during the entire process you don’t have to go through this process alone!
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.