How to Save For a Mortgage in Leeds

First time buyers in Leeds may find the home buying process a little bit daunting. It is no surprise, you need to make sure your credit score is good enough, and that you have a reasonably large deposit saved, amongst other things. The latter is what we will talk about in this article.

Work Out How Much You Need to Save

To work out how much you need to save for a mortgage, you are going to need to work out your monthly disposable income. Once you have deducted your expenses and monthly expenses from your monthly income, you will be able to calculate and estimate how much you can allocate to your mortgage savings. This allows you to set clear and realistic goals for how much you need to save each month.

As a rule, when taking out a mortgage with a high street lender, you must provide at least 5 percent of the property cost. We tend to find most first time buyers in Leeds aim to save a minimum of 20% of the property price. The larger deposit you put down, the lower your monthly payments will be. If your credit is bad, your lender may want you to provide a larger deposit. This might be somewhere around 15% – 30% depending on your circumstances.

One of the reasons it may be better to save for a larger deposit is that you will have more access to competitive mortgage deals, some with lower interest rates. To work out the maximum amount of how much you can borrow for a mortgage, speak to a mortgage advisor in Leeds.

It is also worth saving some additional money to put towards the additional costs of buying a property. As well as your mortgage and protection advisor in Leeds will offer you insurance or cover for you and your property.

Are there any schemes available?

With a range of different government schemes available it is worth seeing if you are entitled to any of these schemes. One of these includes the Help to Buy Equity Loan Scheme, which was designed by the government to help first time buyers in Leeds onto the property ladder. As long as you provide a 5% deposit and fit the criteria, the Government will lend homebuyers up to 20% of the cost of a new build property.

There is also the Shared Ownership Scheme which provides the opportunity for those who can’t afford a mortgage or 100% of the home. Unlike the Equity Loan Help scheme, this type of scheme allows you to buy a portion of your property (usually between 10% and 75% of the value of the home) and make up the remaining share through rent. Further down the line, you do have the option to buy larger shares if you can afford to.

If you are looking for more information about these schemes, please feel free to contact us or book yourself a free mortgage appointment with one of our expert mortgage advisors. Another alternative is to browse the government’s OwnYourHome Web site.

Help From Elsewhere

A gifted deposit from a family member or friend can be a significant help when buying your first home. As the name suggests, gifted deposits are given with the understanding that the money does not need to be paid back and the amount you would like to gift is entirely up to you.

Review Your Outgoings 

Flick through all the bills and subscriptions you currently have. You might find that you can find cheaper deals for your mobile phone and broadband packages. It is helpful to shop around for these. More leisurely services such as gym memberships or streaming services are best to see if you get the value of your money or if there are other cheaper alternatives out there. This frees up more money to save on a deposit.

Have you considered buying a property with a friend or partner?

Buying with a friend or partner is a suitable option for many first time buyers in Leeds to get on the property ladder and can also help when it comes to saving for a deposit. Because you buy with another person, it makes savings for a deposit faster than saving from a single income. However, if one of you defaults, the other person may be responsible for the full mortgage.

There are several types of mortgages designed for those who want to buy a property with their friend or partner, these include but not limited to:

Joint Tenants

This includes both individuals who own the entire property and have equal shares in it. If one of the owners dies, the property will automatically be passed to the remaining owner. From a lender’s point of view, you are one unit so you both must agree if you want to sell or remortgage the property.

Tenants in Common 

Both owners have a certain share of the property here. This can be a popular option for relatives or friends who buy together. Because you do not have an equal share, you can act individually and have the right to sell or give away your share.

Saving For a Deposit if You Have Bad Credit

Getting a mortgage with bad credit in Leeds may be possible, however, it is likely that you have higher interest rates that could cause you to need a larger deposit. It may be best that you start by improving your credit score. Below are some ways to improve your credit score:

Register on the Voter’s Roll

This can show lenders that you have stability, so registering on the electoral roll is helpful. Make sure all the information on the form is correct with your name spelled correctly and your current address is registered. All this can be done online.

Try to Keep Within Your Maximum Limit

Maxing your card every month can have a negative impact on your score. It’s best to use a credit card and pay off your balance in full each month.

Meet Payment Deadlines 

Paying on time and in full is a great way to show a lender that you are a responsible and reliable borrower. Older and well-managed accounts usually improve your score.

Build up a Credit History 

It can be a challenge for companies to assess you if you do not have a lot of credit or none. Some people do not have as much of a headstart and find this a problem for reasons like car finances, credit cards and bills.

Close Down Any Unused Credit Accounts

If you do have any credit cards you no longer use, you must contact your providers to close the account. This can have a temporary negative impact on your score because if you close your account or provider, the credit reference cannot decipher. This should not put you off doing this as it can be a wise thing to do as it can prevent you from falling potential victim to fraud.

Detach Yourself From Any Financial Links to Others 

One of the factors that could have a negative impact on your score is being financially linked to a family member or ex-partner. Remember that you will not be able to do this if the account is still active. To do this, you must contact the credit reference agency to make a request.

Our Expert Mortgage Advisors in Leeds

Here at Leedsmoneyman, we can provide the help you need when going through the mortgage journey. We offer all our customers a free mortgage appointment which you can book yourself in for through our ‘Get Started’ process on the website. During this appointment, you can speak to one of our knowledgeable mortgage advisors in Leeds who will provide you with the support you need toward your mortgage goals. 

Can I Buy a Home in Leeds With a Small Deposit?

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.

Different Government Schemes in Leeds

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.

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.

Why Should I Use a Mortgage Broker in Leeds?

The Benefits Of Using a Mortgage Broker in Leeds

We firmly believe that there are many positives to taking on the services of an expert mortgage broker in Leeds, more than there would be to going direct. That’s just our opinion though, of course we’d say that!

In reality, there are positives to going elsewhere, so it definitely is worth exploring your mortgage options. Thankfully for us, the majority of people will opt to speak with a mortgage broker in Leeds. That being said, we will take a look at the pros and cons of both routes.

Mortgage Broker in Leeds vs Going Direct in Leeds

The first tick in the column of Team Mortgage Broker is that whilst most high street banks can be approached directly, not all mortgage lenders can be.

This means that to get the best deal across all lenders, you’ll benefit from speaking with a mortgage broker in Leeds, though a mortgage lender may still have some deals you cannot get going to a mortgage broker.

An experienced mortgage broker in Leeds will typically require a fee, whereas this likely won’t be the case when going direct. That being said, we can help to recommend other services that you’ll need for much cheaper than they might be with a lender.

Previous arguments could be made saying that “the bank manager knows my finances inside out,” but this was a nullified argument once credit scoring was introduced.

If you know what you are doing and what you are looking for, going direct can be a quick and easy process. On the other hand, if you do not know what you are doing, you could harm your chances of ever obtaining a mortgage, as you won’t match all lenders criteria.

A trusted mortgage broker in Leeds will be able to review the different lenders mortgage criteria and will be able to match you up with the most suitable mortgage deal. We always aim to get this recommendation right first time, which more often than not, we do.

Mortgage Advice Past vs Present

In days gone by, mortgage advisors from high street banks would approve you for a mortgage, whether they were adequately qualified or not. You would not benefit from correct mortgage advice or consumer protection.

As 2014 arrived, this type of practice was banned by the government. Only experienced mortgage advisors could go about providing mortgage advice to customers, making recommendations for products.

The downside to having to now having to only speak with specific individuals at a bank, meant you could be waiting months, just to speak with someone. That’s not good if you’re keen to get it done quickly!

Because of this, usage of a mortgage broker in Leeds rose, becoming a much more popular option. As a company ourselves, we offer various time slots throughout the week, allowing you to pick a time that is convenient to you, and not months in advance!

Quite often, if you’re lucky when booking your free initial mortgage appointment, you’ll be able to speak with someone the same day.

Modern Day Challenges

Nowadays, the hardest part of the mortgage process is matching up against the right mortgage lenders criteria. It’s also important to remember that deals with the lowest rates often have higher arrangement fees.  

At the end of the day, a deal may be really good, but you’ll need to pass affordability checks and be eligible for that deal in the first place. With the help of a mortgage broker in Leeds, you’ll be able to find deals that are suitable for you.

Newer Regulations

Thanks in part to the regulations that followed after the credit crunch back in 2008, mortgage applications perhaps are not as straightforward as they used to be.

This isn’t necessarily a bad thing, however, as it makes for fairer lending and less chance of anyone falling into arrears, which both customers and mortgage lenders alike would much rather do without.

That being said, there are still a handful of situations that could cause some issues for applicants, of which a mortgage broker in Leeds may be able to help with.

• You have a poor credit history.
• You are receiving a self-employed income.
• There is a mixed deposit source, i.e. Gifted & Savings.
• Opting for Let to Buy. Renting your current home to buy another.
• Being a contractor or working under a zero-hours contract.
• You perhaps can’t quite meet affordability requirements.

Lending Criteria

Over our time as an expert mortgage broker in Leeds, we have seen mortgage lenders demonstrating their competitive prowess, trying to offer better interest rates than their fellow mortgage lenders.

Once again because of the changes to regulations, the other difference between these lenders, is their mortgage lending criteria and whether or not the customer can match up with it.

Examples of how these may differ, is that some mortgage lenders may have more products for self employed applicants than others, whereas others may not but will be more lenient to something like bad credit mortgages.

The Benefit of a Mortgage Broker in Leeds

Whatever your situation may be, it is unique to you. When you get in touch with a mortgage broker in Leeds and discuss your case, we may have encountered something similar before and will use that knowledge to help.

As a part of our service, we aim to go above and beyond for every customer who gets in touch with us. Customers rely on our help, so even if it seems relatively straightforward as far as cases go, we will still give it our absolute all.

During your process, one of our mortgage advisors in Leeds will be able to discuss what your budget is for making an offer on a property and recommend additional services such as trusted solicitors and the right property survey to undertake.

They can also run through any potential insurance options with you, helping prepare you and your family for the future, in the event of anything unfortunate occuring that could hinder your families financial state.

Still, need more convincing?

A further aspect of our service that is worth shouting about as a mortgage broker in Leeds, is how responsive we are to our customers. Oftentimes going direct can leave you unsure of what is going on and not always being able to make contact.

Our trusted mortgage advisors in Leeds will always keep you in the loop, with availability from early until late, every day of the week, responding as soon as they possibly can, no matter what you need them for.

Additionally, an overlooked factor as to why people may prefer the services of a mortgage broker in Leeds, is that nowadays people just seem to be so busy. It’s often easier to use a professional service, to take the stress off your shoulders.

This is especially beneficial for professional applicants who are dealing with customers of their own, perhaps not having the time to run through their process themselves.

Book Your Free Mortgage Appointment

If you would like to go direct, that is great! Generally though, whether a customer is a First-Time Buyer in Leeds, Self-Employed in Leeds, or looking to Remortgage in Leeds, they prefer to enlist the services of an expert mortgage broker in Leeds.

Book your free mortgage appointment today with a fast & friendly mortgage broker in Leeds and we will see how we can help you along your mortgage journey.

Mortgage Broker in Leeds Wear It Pink Day 2019

Mortgage Broker in Leeds – Raising Money

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.

Mortgage Advisor in Leeds – Everyone Participated

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.

The Importance of Updating Your Address in Leeds 

Don’t Pretend to Live Somewhere Else

After you’ve moved home, there’s always the situation of having to update your address on any account to match your new address, so that any posts, packages, and any other bits and pieces go to the right place. From your doctor’s surgery to any accounts that need an address, there’ll be plenty to work through.

We understand that missing an address can easily happen. When applying for credit, having less varied addresses on your accounts will look better on your credit score.

Because of the impact, it has on your credit score, this means it will also be beneficial for you when it comes to applying for a mortgage.

We tend to find first time buyers in Leeds, and home movers in Leeds would have a much better understanding of how credit scores work and the importance of updating their address sooner rather than later.

Whereas with other applicants have moved out of their family home and are now renting their own place. They don’t see the harm in leaving their bank statements, electoral roll information, and credit cards at their previous address. But having everything under the same address will give you an advantage during your mortgage process.

Records of Your Address 

Every time you’ve moved house, there will be a record of it somewhere on your credit report. Any bills related to your name, like car insurance, any orders from places like eBay, Amazon, or even online food shops, will show up with a record of the selected address you choose.

If it looks like you are living in two places at once or have failed to disclose information to the mortgage lender, it may go against you during your mortgage process. After all, your mortgage lender needs to know you are reliable for a mortgage. 

Keeping Your Address Up-to-Date 

When looking to buy a new home, and applying for a mortgage, the best thing you can do is make sure all addresses under any account are up to date and accurate.

This includes checking all those shopping accounts, electoral roll, credit cards, and anything you can think of that has your address, are all up to date, and have the current address for you and your current home.

When it comes to updating your address to your new location on the electoral roll, make sure that you definitely get the right dates for when you moved in and out, as getting this wrong can also give off the impression that you are living in two places at once which may mess up your chance to vote.

Keeping all addresses up to date is a much more open and honest way of applying for a mortgage with a lender. Not only will it work in your favour, but it will make your process go a little bit easier.

What else can be done to help me obtain a mortgage in Leeds? 

As well as keeping your address up to date, there are other tips that could also be beneficial to first time buyers in Leeds, these tip can include.

Managing your bank accounts, avoid any unnecessary charges and limit any gambling transactions, (if that is something you do regularly). These can have a harmful effect on your mortgage process if you do the following too often.

Remember that your bank account will be a reflection of your ability to maintain payments, generate income and handle your finances appropriately. This is a large factor in determining whether or not you are able to get a mortgage.

Gifted Deposit 

A gifted deposit is a great way to help first time buyers in Leeds get onto the property ladder. A gifted deposit is where a close family member or friend, gifts a portion or the full amount of a deposit to a homebuyer. As the name suggests, a gifted deposit is purely to be a gift and not a loan to be repaid.

Check My File Credit Report

We highly recommend that customers, whether new or existing, look to obtain an up to date credit report. Check My File can help pull together information from various sources, to get a more complete view of your financial state.

Hurdles Obtaining a Mortgage in Leeds

Specialist Mortgage Advice in Leeds

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.

Child Care Costs

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.

Mortgages following Divorce/Separation

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:

1. How do I remove my ex’s name from my mortgage?
2. Can I remove my name from my ex’s mortgage?
3. Am I allowed to have a second mortgage?

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.

Starting a New Job – Can I get a 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.

Evidencing Your Deposit

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.

Speak to an Experienced Mortgage Advisor in Leeds

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.

How Much Can I Borrow for a Mortgage in Leeds?

Mortgage Advice in Leeds

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.

Historic rules

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.

Mid 2000s approach

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.

Nowadays approach

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.

Deeper analysis

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. 

How can a Mortgage Advisor in Leeds help?

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.

How to Improve Your Credit Score in Leeds

What is a credit score?

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.

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. Most applicants usually have a credit score around this number.

• 740-800 – This is a very good credit score. Having a credit score between this range can increase your chances of being accepted for a mortgage and likely open you to more competitive rates.

• 800+ – If you have a score greater than 800, it is an excellent score. Your score is considered well above the average.

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.

How a Mortgage Advisor in Leeds Can Help

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

Reasons Why Your Credit Score Might Drop

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 in Leeds

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.

Avoid Unnecessary Credit Searches

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.

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 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.

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).

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.

Don’t Run Close to Your Maximum Limit

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.

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, 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.

Is it all about your credit score?

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.

Planning to Get a Mortgage in Leeds?

Getting Ahead of the Mortgage Game

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.

Why Planning for a Mortgage is Important

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.

• You haven’t saved enough deposit for your mortgage.
• Failing to maintain a good credit score because you thought it wasn’t necessary.
• Being too relaxed with the way you manage your bank account.
• You are a self employed applicant, and you don’t have a sturdy income at the moment.

With up to six months of preparation and planning, you may be able to avoid some of these problems.

Deposit

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.

Credit Score

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.

Bank Accounts

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

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.

Other Mortgage Hurdles

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!

Top Tips on How to Sell Your Home Quickly in Leeds

Moving Home Advice in Leeds

First Impressions Count

The majority of home buyers will decide within seconds of arriving at the property they are viewing, whether or not they want to proceed with the purchase. This is especially the case if your viewer is an existing homeowner and needs to decide quickly, so they can move forward with the sale of their own property.

Your equity is the amount at which you sell for, minus your current mortgage balance. This will be used to contribute towards a security deposit for the next purchase that you make if you are moving home in Leeds. By utilising savings or a gifted deposit, you are able to top this up.

There is always a very specific minimum amount that the seller of a property is willing to accept for a sale to be agreed. Even still, when you list your home for sale, it is important to market and present your home in the best light possible. This can make a large difference in how quickly you’re able to sell it.

Be Reasonable

Your asking price should always reflect the standard of those in the local area. Be reasonable with the amount you’re looking to sell for, as some estate agents may just suggest the highest possible price without any credibility behind the suggestion.

Nowadays everyone has the ability to advertise on Zoopla and Rightmove, so we would definitely recommend that you make the dive into the market and get as many viewings as you possibly, primarily within the first two weeks of it being listed.

If interest in your property seems to below, it’s probably quite like that the property has been overvalued and the price needs to drop.

Before they look to put their current property on the market, many homeowners prefer to research and visit other properties to identify which one they might call home down the line. If you find yourself in that same or a similar position, here are some helpful tips for you to sell your home as quickly as possible.

Home Selling Tips for Homeowners in Leeds

Attention to Detail

First of all, this can be quite a strange one and quite difficult to do if you’ve spent a long time in there, but you need to look at your own house as if you were viewing it for the first time yourself. Make sure it looks great from the outside, as that’s the first thing people will see when driving or walking up to it.

Simple actions make a big difference, so ensuring you have a freshly jet-washed drive and neatly cut front lawn indicates that you have put a lot of time and effort into looking after your home. You need to aim for that feel-good factor, as this may help the viewer in their hopes that the inside will be just as good as the outside.

Do you have children?

If you have any kids, it is recommended that you tidy away any bikes or loose toys that have been left about in the front garden. Make sure your front door looks clean and well maintained, and that your doorbell (if you have one) works well. Spend a little bit of cash getting a nice new doormat or welcome sign to give it a nice, new home vibe.

Upkeep

Take a look around all of your rooms, paying close attention to rooms like kitchen or bathrooms. You should make sure that they are spotless and have a high level of hygiene. Cupboards and wardrobes should be tidied up, arranged neatly and free from unnecessary clutter.

You should absolutely ensure your home is pristine and clean; this is a very important step to remember! Wash your curtains & blinds, wipe down your walls and clean all your floors and windows. Any repairs that need work should be up-to-date and fixed, and you should put clean bedding out on the beds.

Clean all of your windows, making sure they’re nice and sparkling clean both inside and out. New carpets in smaller rooms can be a reasonably low-cost way of creating a welcoming impression, showing that the home has been well cared for.

If you are a smoker it’s always air the rooms out before the potential buyer arrives to view it. Ensure there are no bad smells lingering, as any pet smells or cigarette smells can put off a viewer from wanting to buy your property.

Atmosphere

You will ideally want your viewer to feel as relaxed as possible whilst they look around your property, so try and avoid having pets or young children getting under their feet as they try to take it all in.

That being said, if you are selling a family home, leaving up a selection of nice family pictures and paintings can help as it will give them an image of what it may be like to raise a family in that home.

You will find that home buyers, especially those who are first time buyers in Leeds, will prefer to walk around the property on their own. If it’s a couple walking around, allow them some breathing space to discuss with each other, but also be on hand to answer their questions.

Always clean your bathroom, removing any items like cosmetics left out. You should coordinate your towels and flannels, maybe consider putting a small amount of money into making it look nice and appealing. Also make the floor space is spotless.

Lighting

A well-lit house is always going to be more appealing to prospective buyers. This can be achieved through making sure lights are turned on to brighten up rooms if it’s darker outside or keeping all curtains and blinds open to let in natural daylight.

Plants can often block out light so place these strategically around your house.

Fresh Coat of Paint

White walls look clean and fresh, and also come with the added benefit for the buyer of being extremely to paint over when the time comes to decorate. It gives the viewer a blank canvas to work with. It will also help to avoid scraping previous wallpaper off the walls.

Give a fresh coat of paint to all interior doors. Polish the brass fixtures and ensure all doors are able to open and close nicely, with no broken locks or strike plates. Buyers will want to look at making the most of space, so it’s recommended that you store objects into cupboards and have clean and tidy worktops in the kitchen.

Gardening

In terms of your garden the viewer may ask you if they can take a look inside your shed (if you have one), so it’s recommended that you don’t just throw everything in there. Once again, a running theme here, keep it neat and tidy.

• Keep your lawn well maintained.
• Weed the paths and any walkways.
• Make the garden look lively with more vibrant alternatives to the plants you have.

Pay attention to your fences, make sure all the slats are in place, and that they are nicely painted or creosoted. Tidy up any visible items such as outdoor barbecues, removing any utensils left around.

People do still like to see a colourful garden so ensure its beautifully turned out. Flowering plants are lovely to see if the season is conducive. It is also recommended that you make your garage space more efficient, therefore providing more space for a vehicle.

Another Perspective

People buy from people, so it is recommended that you always take conduct the viewings yourself if you can. You will be able to accurately convey the emotions you feel about your home and can show it off in the best way you can, whilst still also pointing out any small issues that have cropped up and how you managed to fix them. Transparency goes a long way!

Estate Agents will always be wanting to earn their commission, but compared to you, who has potentially lived there for years, maybe even raised a family there, they will not know as much about the property. Your knowledge and experience of living in that property will lend well to a property viewing.

Last of all, always remember the emotions attached to buying a home. If you have a family, it really helps to put an emphasis on how much of a happy family home this has been for you. This will almost certainly rub off on the viewers if they are thinking of raising a family in that same home.