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Agreement in Principle: All About Hard & Soft Credit Searches in Leeds

Credit Score Mortgage Advice in Leeds

Across the nation we now find that people are paying a lot more attention to their credit rating they might have done in previous years. We find that a large majority of the people who call us for mortgage advice in Leeds perhaps have already researched online to find a copy of their credit report.

There are a wide variety of different credit reference agencies to choose from, but the two most common companies you may be aware of are Experian or Equifax.

We would highly recommend that new customers who get in touch look to use Check My File. In doing so, you’ll find a report that offers customers a collation of information from various sources (the aforementioned two included) in an easy to understandable colour-coded report.

Check My File offers a 30-day free trial. After this 30 days, you will be charged £14.99 a month, although you can cancel this at any time prior to the end of those 30 days.

When speaking with our customers, our mortgage advisors are often asked if they will be doing a credit search on them, as they have done their research and know that too many searches can negatively affect their credit score.

The lender will always run their own credit checks but our mortgage advisors will always ask the customer for permission before doing so. You’ll find that credit searches will come in two forms; hard searches and soft searches. Here we will discuss the difference between the two and how they can help.

What is a hard credit search for a mortgage?

A hard credit search is a way to take an in-depth look at your credit report. No matter who they are, any financial institution carrying out one of these will have to seek your permission to do undertake one of these.

The main advantage of a “hard” search would be how in-depth it actually goes. The chances are, if you can pass a hard credit check, it is likely that you will go on to be successful with a mortgage (though this is of course never a guarantee).

From this point on, all that can go wrong with your mortgage process is if for some reason you cannot provide the required documentation to backup the information that you have presented to the lender, or it turns out you have provided incorrect information altogether.

Looking at it from the other hand, another benefit is that having a hard search taken out on you will leave a ‘footprint’ on your credit file, which would mean that anyone taking a look at your report can see that it has been carried out.

This is not a bad thing at all, but let’s say that for some had multiple searches included in your credit file in a short period of time. This could come across to the mortgage lender that you are applying for a lots of credit at the same time and this may put them off.

The footprint will not leave a note as to whether or not your application was successful, so if you have several searches in a short amount of time, the lenders’ systems may assume wrongly that you are being declined regularly. Think about it; why would you apply for credit with a second lender, unless you’d been declined by the first?

Having the occasional hard footprint on your record isn’t too big of an issue, so you really don’t need to worry about it too much. Just be careful not to have too many of these taken out

What is a soft credit search?

The alternative to the hard search, would be a soft credit search. This would be a much straightforward search which takes a look at your financial situation and would be the type of search that you might come across when using a price comparison website, so that you can find out what options may be available to you.

Alternatively it can be used to verify your identity. You’ll find that some mortgage lenders will carry out soft searches of their own. We find that nowadays, even more lenders are changing to this type of credit search.

Whilst it will give whoever is carrying out a soft search less information than they would’ve gotten from a hard search, if you managed to obtain an Agreement in Principle from a lender, it is still a very good indicator that your full application will be accepted for a mortgage.

One of the things that appeals to customers regarding soft searches is that you have the ability to see soft searches that others have carried out on you (people are often surprised by how many have been carried out on them), though these searches will not be visible to other financial institutions such as a bank or lender.

This means that you have the ability to apply for an Agreement in Principle ahead of a mortgage in Leeds, without causing any damage to your credit score, regardless of whether it is successful or not.

If you are thinking of making any offers on a property as a first-time buyer in Leeds, our trusted and dedicated mortgage advisors in Leeds would very much suggest that you obtain a mortgage Agreement in Principle in place prior to getting in touch with an estate agent.

You should ideally look to give yourself the best possible chance of securing your dream property at the lowest possible price. With this in mind, if you present yourselves as having your finances in order, you will definitely give yourself the upper hand in your mortgage situation.

Being in possession of an Agreement in Principle could also help prevent an estate agent from trying to cross-sell any of their own mortgage products to you.

Top Tips on How to Sell Your Home Quickly in Leeds

Make The Most of Selling Your Home 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

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.

Moving House Mortgage Advice in Leeds

Leasehold House Mortgage Advice in Leeds

Help to Buy Mortgages in Leeds

Following on from the Help-to-Buy Scheme, many builders started selling houses on a leasehold basis when traditionally homes had always been sold on a freehold basis. Over time this became a hotly debated topic, of which the Government eventually felt the need to step in.

Some of the country’s home builders had fingers pointed at them for putting profits before their social conscience. Whilst they were aware that they needed to build homes for families, they also have to answer to the shareholders.

Land Banking

The media has been very vocal about the fact that there have been situations with land banking. Land banking is a property investment scheme that involves buying vast amounts of undeveloped land with a view to selling the land when it has been approved for development and is more profitable.

Thanks to consolidation, some builders have inherited land into their companies which is on a leasehold basis. Many debate that they should offer both leasehold and freehold properties for sale, so that buyers have the ability to choose the route they’d like to go down.

What About the People?

Many people felt that the market had been heading too far into the territory of leasehold, especially when it became public knowledge just how much profit the builders were making from their leases.

Things drastically changed, when the Chief Executive of one of the UK’s most noteworthy Builders received a bonus of over £100,000,000. At that particular time, this was one of the most significant premiums paid in the history of a corporation.

Some Leasehold Homeowners were shocked when they found themselves being quoted thousands of pounds in fees, even if it was only something like seeking permission to make small alterations to their homes.

These high end fees were being charged by their Leasehold Management Companies. Some of the annual ground rents were set to double every decade and owners could see that selling their home in the future once these increases have kicked in would be a very difficult process to undertake.

In Parliament

After homeowners notified their MP’s and the subject being heavily debated in Parliament, the Government agreed that if you were buying a house (flats or apartments excluded), then it is entirely reasonable that you should own the freehold.

What can you do?

If you happen to find yourself in this situation, owning a leasehold houses and you weren’t aware, then you absolutely should have been made aware.

If you feel that the Solicitor acting for you did not give you a more thorough and complete analysis of what the lease you signed entailed, you should re-contact them immediately to investigate why this was the case. You can contact the freeholder at any time if you are interested in buying the freehold from them.

Service Charges

The costs of the service charges may very well go up. Sometimes the residents in the area can group together to form an association, which can give them the collective freedom to choose a different service provider. If you are considering buying a leasehold property, take advice from your Solicitor regarding the lease.

It’s so very easy to get carried away with the excitement of purchasing a home, but you also need to realise it’s a significant investment decision and something that you need to think about very carefully.

If you would like advice regarding something like this, please do Get in Touch and we’ll see how we may be able to help you.

A Guide to Buying a Property in Joint Names in Leeds

Purchasing a Property in Joint Names

Over the years, we have seen property prices increased at a far faster rate than wages have. Through speaking to many customers, we have found a common occurrence, in that many people look to purchase in joint names with a partner or friend, as a means of being able to afford a suitable home at a more reasonable price.

Purchasing in joint names will usually increase the maximum capacity of what you are able to borrow, as the lender will look at all parties income, rather than just one, taking this into account when running calculations on affordability.

How Many People Can Co-Own a Property?

We have known and we do work with some lenders who will accept up to four people as co-owners of a property. If throughout the duration one of the co-owners of the property decides that they would much rather not contribute to the mortgage repayments, any of the other joint owners will still have the legal right to reside in the property, unless this is ruled otherwise by a court.

If you would like to increase the mortgage amount later down the line, you must gain full consent from all your fellow co-owners. It’s therefore essential that you make long term plans with each other, discussing what you’d like out of this, so you can stay on the same page and avoid future disputes if you end up wanting something different.

Joint Tenancy or Tenancy in Common?

Commonly, for married couples or those still in civil partnerships, a ‘Joint Tenancy’ is something we have seen customers choose quite often. With this type of tenure, if for some unfortunate reason one of the party were to pass away, the property would be handed over to the other owner of the property. If you have taken out relevant life insurance, at this point, your mortgage would be covered and repaid.

With ‘Joint Tenancy’, you would still need all owners of the property to agree if you decided you wanted to Remortgage later down the line.

If choosing to purchase with relatives or friends, we find that ‘Tenants In common’ is the most popular route that customers take. You will still remain as a co-owner of the property, along with your cohorts, but you also have the flexibility to do this without the need to have completely equal shares. This works well if one party is making a more significant financial contribution than the other, as you could split the shares, for example if there were 3 of you, 60%, 30%, 10%.

With ‘Tenants in Common’, another positive aspect for the co-owners is that you have the freedom to act independently. An example of this, is that you can then choose to sell or give away your share of the property to someone else, without the need to consult with your fellow co-owners

Do I have to pay the mortgage if we separate?

All mortgage borrowers are jointly and severally (responsible for their own decisions) liable for mortgage payments. IF at any point in the future you find yourself paying all of your mortgage payments without a co-owner, you will still be liable to prevent the mortgage from falling into arrears.

This is because mortgage arrears showing on your credit file could have the potential to stop you from obtaining a mortgage at any point in the future. The best way to think of it is like this: You don’t own 50% of a property, you own 100% jointly.

How do I remove my ex-partner from a Joint Mortgage?

When purchasing a home with a partner, it’s a whole new chapter starting in your life and can be a great way to start fresh with another individual. In all the excitement of moving home, it can make you wonder about what will happen if things go a little wrong.

The primary thing to remember is that lenders will always need to have the utmost confidence that you can keep up with monthly payments on your own before they will approve you removing a partner and taking on the mortgage alone. As seen from above, a mortgage is a big financial commitment and making changes is going to be a challenge.

If you are able to prove that you can maintain mortgage payments following on from your partner leaving, the lender may agree to your request to put the mortgage into your single name. However, lenders like the idea that there are two people to pursue in the event of arrears occurring. To remove someone, they will carry out a brand-new affordability assessment, just like they would’ve done originally at the point of purchase.

Whilst a lender may not always accept a request, it’s always beneficial to speak with a mortgage advisor in Leeds prior to taking this route, as there may be other lenders who could agree to your transfer request.

It can also be worth talking to family members to see if they can help you out to make your financial and personal life a little easier. They can do so by replacing your ex-partner on your mortgage or by gifting you a lump sum, in a bid to reduce the amount owed. This will hopefully mean that your savings are able to contribute to easing your future mortgage payments.

Can I Remove My Name From a Joint Mortgage?

If you and your partner split up and you leave the family home, then your responsibility is still shared for mortgage payments. Even if you agree that you will send your partner the money to cover the costs, in the event of potential arrears, you will still be chased for payments.

If you are sending your partner money each month, you should also keep an eye on your credit report to ensure they are still actually paying the mortgage. If they default, then it will impact your own score due to the financial tether you have.

Get in Touch With a Dedicated Mortgage Broker

If your name is still linked with an existing mortgage, then the payments for that will be considered down the line if you buy a new home of your own. This means that lenders might not lend you as much as you would like.

Buying a home with someone is different than just renting with them. It’s always better to agree on what would happen to the house should things not plan out as expected.

For any First-Time Buyers in Leeds or those Moving Home in Leeds that are looking to purchase in Joint Names, you will absolutely benefit from speaking to a mortgage advisor. Even if you are looking to remove a name from a mortgage by looking into a Remortgage in Leeds in your sole name, a member of our mortgage advice team will be able to look into this with you. Please feel free to Get in Touch with our friendly Mortgage Team, we will be more than happy to answer all of your questions.

Gifted Deposits: How They Can Help You

Mortgage with a Gifted Deposit in Leeds

Gone are the days of 100% mortgages and the infamous Credit Crunch is now firmly in the past. Whilst the market has gotten stricter with rules (rightfully and understandably so), thus making it harder than it used to be to obtain a mortgage, it can still be possible in certain circumstances to buy a property without investing too much of your own money.

Buying a property under a Right-to-Buy Scheme in Leeds is one example, wherein after a specific tenancy length, you can become eligible for the Right-to-Buy your rental property from the local authority, be that a housing association or council. In a lot of cases, they may choose to use the equity from that property in place of a deposit.

In most cases though, we find that people get around the long and stressful process of saving up for their deposit, by being given a Gifted Deposit. This works exactly as you may imagine, with someone else being able to gift you either a portion of, or your entire deposit for a property.

Common Gifted Deposits FAQs;

  • Who can gift the deposit?
  • Can it be a loan rather than a gift?
  • How much can be gifted?

Who can gift the deposit?

Generally speaking, Gifted Deposits tend to come from what is known as the “Bank of Mum and Dad”, wherein as you might have guessed, parents (including adoptive parents, carers and legal guardians) are an acceptable source of a Gifted Deposit.

Depending on the lender and criteria in place, this can also be accepted if it is a gift from Grandparents, Aunties & Uncles, and sometimes even family friends. The gift must be evidenced through the demonstration of bank statements from the donor and their ID.

If the person gifting to you is over the age of 55, they may look to take out Equity Release in Leeds, as a means of gifting you a deposit.

Can it be a loan rather than a gift?

In the majority of circumstances it will need to be a gift, with the lender requiring that the donor sign a letter (which we can help prepare) to confirm the funds are non-refundable, and they will not put a “charge” on the property you are buying. There are exceptions out there, with at least one notable lender who will accept this.

That being said, you must be careful, as taking out a personal loan just before applying for a mortgage will most likely negatively affect your credit score, which could lead to a mortgage application being rejected. Also, the monthly payments for the loan will have to be taken into account by the mortgage lender when they are calculating how much they will lend you.

How much can be gifted for a deposit?

There is no maximum limit on the amount of gift you can receive although a handful of lenders will insist you put in at least 5% deposit from your own funds.

Are you looking for a Mortgage Advisor in Leeds?

As a knowledgeable and experienced Mortgage Broker in Leeds, we are able to look through 1000’s of Right-to-Buy Mortgage deals for you, tailored to your circumstances.

Throughout the whole process, we aim to offer a multitude of help and guidance, answering any questions you may have along the way. We even aid with other services when necessary, such as conveyancing.

Our brilliant team are incredibly proud of the service level that we provide day in and day out – This is reflected in our genuine customer reviews.

Leedsmoneyman Spring Budget 2021 Update

Rishi Sunak’s second Budget as Chancellor brought two pieces of welcome news for the property sector as the Government attempts to transform “Generation Rent” into “Generation Buy” to help stimulate the UK economy, namely the new 95% Mortgage Guarantee and an extension of the Stamp Duty Holiday.

95% Mortgage Guarantee

The name of this scheme is misleading as not everyone that applies is guaranteed to be offered a mortgage, it is still subject to affordability and credit score. The “guarantee” itself is that the Government will ensure Lenders don’t stand a loss if they grant a 95% mortgage to a customer who then subsequently falls into arrears and is repossessed leaving behind negative equity.

This scheme should in theory give Lenders more confidence to lend even though the applicant only has a smaller deposit to put down. Of course, Lenders never want to repossess someone’s home unless it is the last resort, but if that happens then the new scheme would cover any shortfall.

Lenders have been worried about the prospect of home values decreasing so this measure should alleviate that concern although of course, the chances of negative equity occurring will naturally reduce should property prices increase as a result of these announcements!

The scheme is available to both 1st Time Buyers and Home Movers, it’s available on any property (not just new build) and will run until December 2022. Some major High Street Banks have already signed up to the scheme and it’s likely more will follow later on. It’s still a big challenge for Lenders to cope with the demand they are getting for mortgages due to the difficulties training and supervising staff working from home but they will want to offer as many of these mortgages as they can.

Stamp Duty Holiday Extension

When the Stamp Duty Holiday was launched last year we all hoped life would be very much back to normal by the cut-off date of 31st March 2021 but things didn’t pan out that way as we know. Solicitors are struggling to keep up with the workload and if lots of chains had collapsed then it would have partly defeated the object of the exercise.

Therefore it was good to hear the scheme has been extended to 30th June for purchases up to £500,000 and 30th September for purchases up to £250,000.

The Government certainly sees the property sector as an area that can play a big part in our economic recovery and if you are looking to buy a home or remortgage this year please reach out and we will be happy to advise you.

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The Effect Of January 2021 Lockdown On The Property & Mortgage Market

You can still carry on with the sale and purchase of homes/property after Tuesday 5th January and even move home if the need arises.

As per the announcement made by British Prime Minister Boris Johnson on 4th January 2021, the UK is now once again in a national lockdown. The implementation of this order took place the very next day, on the 5th of January with only certain sectors maintaining their activity throughout the next 6 weeks.

Functioning in a similar manner as to the November-period of lockdown, the property market will remain functioning and open for business. This means that you can still take up house viewings, move further with your property purchase and put your property up for sale.

However, it must be noted that some businesses can be hindered due to certain delays. In lieu of the restrictions and lockdown, the services of Solicitors and Surveyors may take additional time. Furthermore, It is expected that the Stamp Duty Cut could bring in a vast crowd of customers before time runs out for it.

Safety Measures for Home Movers in Leeds

It is seriously urged to everybody who is looking to move to a different home or in the process of doing so, to stay safe and follow the correct safety guidelines. Please ensure your safety by following the latest government guidance on your maximum safety while undertaking this.

Buyers can still avail 90% Mortgages

It is our pleasure to let you know that 90% mortgages are still there for you to utilise. It is evident to us that lenders of the UK property market are confident as ever. This is due to the awareness that the demand for property is still very much present within the market and people will only reach back out when they are sure of getting a deal with 5-10% deposit.

You can also obtain a 90% mortgage through schemes such as the Help to Buy Equity Loan scheme or the Help to Buy Shared Ownership scheme. For further details, you can speak with your mortgage advisor, who will walk you through the details of how these methods can help you obtain a mortgage with only a 5-10% deposit.

An Extension on Mortgage Payment Holidays

Mortgage Payment Holidays (the possibility of delaying finances that have a chance to leave you struggling during the pandemic) were slated to end on 31st October 2020. However and fortunately, an extension for the Mortgage Payment Holidays has been given until 31st March 2021.

If you haven’t accessed a Mortgage Payment Holiday, You can request a break of up to 6 months. However, in the case that you have taken a Mortgage Payment Holiday of less than 6 months, You can extend your existing holiday up until the 6th month.

Still Here, Still Open

Our trusted and friendly mortgage advice service is still operational and we’re available to help out in any way possible. We have a team of dedicated mortgage advisors on hand, who are free to answer your questions from 8am – 10pm, 7 days a week.

This past year has been a hard enough time for a lot of people. As such, we would like to take as much stress out of your mortgage process as we are able to.

All customers will still benefit from a free initial mortgage consultation, no matter their situation.

For a brief overview of the current status of the property and mortgage market, please watch our video from company director Malcolm Davidson, recorded the day after the Prime Ministers public speech.

Leedsmoneyman Christmas Message

We here at Leedsmoneyman would like to wish everyone out there a very Merry Christmas, and we hope for a prosperous and healthy 2021 for everyone.

The values of properties in the UK have surprisingly held themselves up high during the pandemic. This is down to stock shortage, undiminished consumer demand and the Stamp Duty Holiday (which is due to end in March of 2021).

If we have learnt anything about the property market in 2020, it’s that you’ll never stop a dedicated and hard working potential First-Time Buyer in Leeds from pushing through and doing whatever it takes to own their home!

Property Market Predictions

We predict that going forward into 2021, despite unemployment levels going on the rise, we here at Leedsmoneyman fully expect the consumer demand for buying property to continue to be on the rise. With people spending more and more time at home, it’s only natural that people will inevitably start looking for something bigger, better or with a nicer garden.

Also, around this time of year, we will also see lots of remortgage activity from customers who are happy with their current home, but would like to invest in their homes by expanding upon them or creating home offices, to name some examples. We have written some articles on topics like these, explaining why people choose to Remortgage For Home Improvements.

Interest rates are still relatively low and off the back of Brexit, the Government will definitely wanting the property sector to thrive, especially considering that it is one of the “wide multipliers”, e.g. it will uphold lots of jobs.

Once the vaccine is fully out there and life starts to feel a little normal again, we firmly believe there will be a lot of people who adopt a “life’s too short” approach to their lives, something that should be good for the economy as a whole, especially those with involvement in the property market.

If you need Mortgage Advice in Leeds or life insurance advice in 2021 please feel free to get in touch. Our dedicated mortgage advisors are available from early until late, 7 days a week to provide answers to your questions. Contact us to book your free mortgage consultation.

Mortgage Advice in Leeds

How to Make an Offer on A Property in Leeds

Mortgage Advice in Leeds for First-Time Buyers

Buying property: make an offer to bag the best deal

Once you reach the point of being ready to make an offer on a property, you’ll need to know what to do next. You’ll be understandably both excited and anxious, but you must remember that your work doesn’t stop there, and your aim is also to get the house at the lowest possible price. 

By getting the offer to be a little lower, you are then able to spend more on the property in the future, on things like home improvements. When offering lower amounts, you may be concerned about offending the seller.

Fortunately, our dedicated Mortgage Advisors in Leeds are here to ease your worries and make it easier for you. What is important to note is that this is a negotiation process and the chances of your first offer getting accepted are unlikely unless it’s not too far off the original asking price.That being said, it might be accepted and it’s always better to go in with a game plan.

Don’t get beat up if you don’t succeed the first time

The majority of sellers need to maximise their selling price due to their own plans. Some may be looking to secure a new home for themselves, or something else like that. No matter what it is, you are looking to find that “magic” number, the lowest possible price they’re willing to accept for their property.

As we have mentioned, you should really look to go in prepared, and it’s our job to make sure you’re as prepared as you can possibly be. By working alongside you, we’ll hopefully give you the best chance of success in obtaining the property you’ve had your eye on.

If you’re new to the property market or are in competition with other potential buyers, this becomes especially important. Here are some of the things you can do to ensure you’re ahead of the curve.

Getting your Mortgage Agreed in Principle

Any estate agent that is worth their salt will want to check that you have the required funds in place. Whether you’re a straight-up cash buyer or in need of a mortgage in Leeds, it indicates to the agents that you have the means to proceed with the purchase.

Estate agents also have their anti-money laundering checks to run, so you may be asked to prove who you are and where you are currently living. Some corporate estate agents in the industry have shown to exploit this diligence (offer qualification) to cross-sell other products or services to you that you maybe don’t need or want. 

Estate Agents have a tendency to intimidate customers who have fallen in love with a property, by telling them that they have a higher chance of success if they use their in-house Mortgage Advisor in Leeds. 

Fortunately, people tend to see through their scare tactics. You can rest assured that not only will a Mortgage Broker in Leeds do their best to find you a better deal, but they will also have your best interests at heart, always putting you and your situation first. 

Sending your Agreement in Principle, identification, and other supporting documents should provide enough proof that you’re able to proceed with the purchase and mortgage. If they try to tell you otherwise, we’d recommend telling the estate agent that you will bypass them and approach the seller directly instead.

The Benefits of Selling Your Home First

If you’re looking to raise your deposit by selling a property you currently own, it’s more beneficial to ensure you have done this prior to making other offers.

The issue some people face is that they may not be looking for a new home until that ideal one comes up for sale. In the event of this, by all means, go ahead and view the property. 

One thing to remember is while you may feel like you’re ready to make an offer, without taking advantage of the things we have covered, you’re probably not quite ready yet. This means that anyone who has sold their property and made a similar/better offer will probably be the ones to walk away with the keys. 

It’s not unheard of for people to do this and still end up with the property they wanted, but from the point of honesty and professionalism, it’s something we must always advise you to keep in the back of your mind.

Get Organised

To ensure that you are well prepared for the process, you’ll need your paperwork in order. Upon the application stage, you’ll get asked to provide proof of income, identification, address, deposit. This will be followed by three months’ bank statements to the lender. 

We recommend keeping all these documents together in a folder, so that you can get the ball rolling on your application once an offer gets accepted.

Be a Nice Person

When buying a home, emotions tend to run high. You may be buying a house to raise a family, something that the seller may very well have done the same thing in that house. 

Telling them your plans for the future may very well resonate with them and build up empathy. Something to avoid is being cynical about certain aspects of the property. 

They own the house, so likely know that it isn’t double-glazed or doesn’t big cupboards. Pointing out these could turn the seller off you as a potential buyer.

Listen Out for Clues

Getting to know the seller is something that could be very beneficial to you. It’s unlikely that it would have any detrimental effect and could help you out a lot when it comes to the negotiating process. 

They might have a house they’re looking to buy, or specific reasons for moving. Find out if there has there been much interest in the property lately and if they’ve had many offers. Getting the answers to questions like these can be a crucial indicator as to how low the seller is prepared to go when you make an offer. 

If they’re looking to make a quick sale, they’ll likely accept a lower offer with no issue. An offer that is below the original asking price is less likely to be accepted, if there is already a homebuyer willing to pay the price they’re asking for.

Whether you are a First Time Buyer in Leeds or looking to Move Home in Leeds. Our expert Mortgage Advisors in Leeds can use their knowledge and expertise partnered with the information provided to help recommend the most appropriate path for you to take.

Looking to get a Secured Loan in Leeds?

Remortgage Advisor in Leeds

How do Secured Loans work?

Secured Loans, also known as a Second Charge Mortgage, are only used when other options have been exhausted. They are generally used for applicants who cannot or choose not, to apply for a normal First Charge Mortgage.

Now Secured loans are far more common amongst homeowners and homebuyers, as the rates on offer are much lower than those that were previously available.

What are my options?

When it comes to raising additional funds against your property, there are three main options for you to choose from:

  1. A further advance from your current lender.
  2. Remortgage to a new Lender.
  3. Second Charge mortgage.

If you are only looking to borrow a low amount, unsecured loans can also be a possible option. If you choose to opt-in for a second mortgage, your current existing mortgage will carry on as normal with your current lender, and the extra funds will be with a different provider.

The second mortgage works based on a different rate of interest with its own direct debit. Some people choose to run their second charge loan over the same term as their main mortgage, in order to keep the payments a bit lower.

Raising Additional Funds

There are many reasons why people raise additional funds to secure against their property. These may include, but are not limited to:

  • Home improvements.
  • Debt consolidation.
  • Purchasing cars or other vehicles.
  • School fees.
  • Tax bills.
  • Cosmetic surgery.
  • To pay for a wedding/honeymoon/special anniversary/holiday.
  • Injecting cash into businesses.

Why not Just Advance or Remortgage?

Here are reasons as to why a Second Charge Mortgage could possibly be a better option for you than a Further Advance or Remortgage:

  • Looking to retain your current mortgage if it has a lower rate of interest.
  • To maintain your existing mortgage because it’s interesting only and that’s how you prefer it.
  • Since your last mortgage you have gone self-employed in Leeds.
  • Your income may be derived from multiple sources.
  • You’re in need of quickly raised funds.
  • Looking to raise capital against your UK property to purchase a foreign property.
  • Prefer to avoid all setting up costs you may receive upfront.
  • Your current mortgage lender has declined your further advance application.
  • Your credit score could be poor and you feel it best to avoid a Remortgage in Leeds due to substantial redemption penalties on your existing mortgage deal.
  • Wanting to raise funds to pay a tax bill.
  • You want to raise funds to purchase another property which isn’t currently suitable for a mortgage (non-standard construction/property in poor repair).
  • To inject cash into a new or pre-existing business.
  • You need capital to pay business tax liabilities or to clear a business overdraft.

Applying for a Secured Loan in Leeds

When you choose to work with a Mortgage Broker in Leeds, a broker fee and an additional arrangement fee usually are required to be paid for the services. You can choose to pay upfront or opt to add them onto the loan.

Remember, however, that adding additional costs to the mortgage means you would be required to pay extra on interest. This means that if you extend the term of any debts you are considering consolidating, you will be paying back more interest.

If you are securing any currently unsecured debts, you are putting your home at risk if you do not keep up the repayments. For more information on this, please Get in Touch with a Mortgage Advisor in Leeds and we’ll book you in for a free mortgage consultation.

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

© 2021 Leedsmoneyman - Mortgage Broker

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