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Why Should I Use a Mortgage Broker in Leeds?

The Benefits Of Using a Mortgage Broker in Leeds

Why use a Mortgage Broker? | MoneymanTV

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 LeedsSelf-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.

Can I Change My Mortgage to Buy to Let in Leeds?

The Financial Conduct Authority does not regulate some types of buy to let or commercial mortgages.

Depending on the situation that you are in and the mortgage lender you have a mortgage with, yes, you can convert your existing mortgage into a buy to let.

After being a homeowner for a while, you may want to switch things up. Perhaps you will be living with a friend or partner, who owns a home? Perhaps you want to live somewhere new? Occasionally, homeowners may wish to go back to renting.

In either of these circumstances, you may wish to hold onto your current home, turning it from a residential property, into a buy to let property, going from just a homeowner, to a landlord as well.

This is something that can be quite beneficial for many, as it will supplement your income over time.

How to change your mortgage to buy to let in Leeds?

If you wish to make a change to your mortgage and make it a buy to let in Leeds, the first thing you will need to do is speak to your mortgage lender to make sure this is something you can do. If they confirm you can, you’ll need to get in touch with a mortgage broker in Leeds.

The reason is because in order to switch, you will need to remortgage onto a new type of mortgage. Whether you stick with the same mortgage lender or find a new one, one of our expert mortgage advisors in Leeds will help find the best deal for you.

It will be a remortgage, because you are modifying the terms of your deal. You signed up to a residential, not a buy to let, so this will be updated. It isn’t as straightforward as asking the lender to switch, as you need to pass their mortgage criteria for a buy to let in Leeds.

What criteria do I need to meet to change my mortgage to buy to let in Leeds?

First and foremost, before anything else you’ll typically need to have remained within your property as a homeowner for at least six months. Once you’re past the six month point, there are all kinds of factors that a mortgage lender will consider.

Affordability

Your affordability is something that entirely depends on the rental potential of the home you’re converting. Most lenders will want to stress-test your property to make sure that you are able to cover at least 125% of what you’ll be paying per month.

Equity in Your Home

Whilst technically you won’t need a deposit to take out this new mortgage, you will need to have a sufficient amount of equity sitting within your property in order to be able to remortgage it onto a buy to let in Leeds.

Lenders will want to see that you have at least 20-25% equity in your property, though this can be more with poor credit history. Chances are you’ll need even more than this, in order to also cover the deposit for a new home to live in.

Credit History

If your credit history is pretty poor, your chances of obtaining a mortgage will be slimmer. That being said, it’s not always impossible for you to do so!

There are plenty of mortgage choices out there for bad credit mortgages, which extends to people wanting to do a buy to let in Leeds. If any new credit problems have cropped up since your initial mortgage, obtaining a buy to let mortgage may be more challenging.

The important things to remember are building up your credit score again and the amount of time that has passed since the initial issues cropped up. To give an example, the more time that has passed since being given a CCJ, the better chance you’ll have of getting a mortgage.

Type of Property

The type of property you are letting out can have an impact on your mortgage process. You’ll find it more limited if you are looking to take out a mortgage on a HMO or Holiday Let, as they are specialist areas that require the assistance of a mortgage broker in Leeds.

Landlord Experience

Some landlords won’t offer mortgage products to first time landlords. If you have been a landlord in the past, you will have access to a wider variety of mortgage deals with more mortgage lenders.

On the other hand, there are multiple mortgage lenders that we have on panel, with some of these offering products to first time buy to let landlords. To learn more, speak with a mortgage advisor in Leeds.

Can I live in my buy to let in Leeds?

No, you are not allowed to live in a property that you have a buy to let mortgage on. This would is a breach of your mortgage agreement and will very likely have a large negative effect you and your home.

Letting Out Your Current Home to Buy a New Property in Leeds

Alternatively to a buy to let in Leeds, you could let out your existing home as a way to buy a new property to live in. This process is called let to buy. It is popular amongst homeowners who wish to supplement their income and also live somewhere else.

This works the same as a typical buy to let, though you’ll be applying for two mortgages this time (one to convert your property into a buy to let and one to buy a new home. As such, your lender will need to confirm you can afford both of these.

How many buy to let mortgages can I have?

Whether you’re a new landlord planning ahead or an existing landlord ready to expand upon your property portfolio, you may be wondering how many times you can have a buy to let in Leeds.

Whilst there isn’t necessarily a strict limit on how many buy to let mortgages you can have, it will depend on the risk to the lender as to whether or not you’ll be able to take out further buy to let mortgages. Speak to a qualified buy to let mortgage advisor in Leeds to learn more.

Could consent to let be an option?

Some homeowners may have the option of accessing something that is called a consent to let. This is typically something used more in the short term, with your home only being a temporary buy to let.

Depending on lender, you will usually have a limit that is between 30-90 days per calendar year. You need to check with your lender beforehand, to make sure you are able to do this.

Speak to a Qualified Buy to Let Expert in Leeds

To gain a further understanding of the options available for making your home a buy to let in Leeds, book your free mortgage appointment and speak to a mortgage advisor in Leeds.

A dedicated member of our team here at Leedsmoneyman will be able to review your circumstances and inform you of the deals you may be able to access, as well as helping with any additional buy to let mortgage advice in Leeds you require.

The Importance of Updating Your Address Before a Mortgage

First Time Buyer Mortgage Advice in Leeds

When it comes to applying for a mortgage, it’s important to make sure you are aware of the current state of your credit score. The higher that it is, the higher the likelihood of having an offer accepted. Your credit score will be affected by a variety of aspects.

As an example of this, the fewer addresses that you have present on your record, the better it will be. Even though that is the case, we are finding that applicants are going about this in the wrong way.

We tend to find that a lot of applicants who are moving out of their parents home, into rental accommodation, are leaving things like banks statements, electoral roll information and credit cards all registered at their previous address.

Check Your Address Before You Apply

Before a mortgage lender is able to perform a credit check on you, you need to have the utmost confidence that you are going to pass without issue, that nothing will hold you back.

You should check all of your accounts, such as credit cards and current accounts in your name, as well as the electoral roll, to make sure they are linked to your new address.

As touched upon, lots of first time buyers in Leeds will be currently renting and won’t have updated all of their addresses to where they are currently living. This should ideally be done as soon as you can after you have moved out.

The reason why this is such an important factor to mortgage lenders, is that your address confirms your identity. It also shows that your circumstances don’t change too often and you have a stable life. Too many different addresses can flag up as a concern to the lender.

Updating your address across all mediums, allows for consistency and will make the lender more confident in accepting you for a mortgage. It also has an impact on your credit score, as your score will look better if everything is aligned.

You’ll need to make sure you know exactly when you moved in your rented apartment and when you moved out. If you get these dates wrong, it can often look like you’re living in two places at once.

Impress the lender

So long as everything in your name is up-to-date and accurate, you’ll have a huge advantage towards being accepted for a mortgage. On the other hand, if your address is outdated and incorrect, you are less likely to be accepted for a mortgage

Changing your address is something that is pretty easy and benefits you greatly in the long run. If you require any Specialist Mortgage Advice in Leeds from a team of mortgage experts, book your free mortgage appointment using our online booking feature, and we’ll see how we can help.

Mortgage Advice in Leeds for Specialist Cases

A Guide to Remortgages in Leeds: Top Reasons to Consider

Remortgage Broker in Leeds

You may find that going into the mortgage journey will prove to be rather fruitful. It can have both its ups and it’s downs, though regardless, you will end up with one potential outcome once your term ends.

You’ll either have a home that you have been able to settle down in, an initial property that you can use to propel yourself up to a better property, or a property that you can invest in to boost your income.

No matter which route you went down, you’ll eventually reach the point where your term comes to a close and you’ll need to look at your options. Some people look to sell their home and upsize/downsize into a new property.

Others may sell their portfolio to the tenant or another buyer, with a view to look alternative ventures. However, we mostly find that people choose instead to Remortgage their home.

What is a Remortgage?

First of all, let’s take a look at what a Remortgage actually is. A Remortgage is basically where you take out a new mortgage to pay off a mortgage that you already have. There are a wide variety of different options when taking out a Remortgage, some of which are minor, others of which are major.

By using over two decades of mortgage industry knowledge from the “Moneyman” himself, Malcolm Davidson (host of our YouTube channel MoneymanTV), we put together a useful Remortgage guide for those looking at what they can do next, when their term nears its end.

Remortgage For Better Interest Rates

The mortgage deal that you start on will typically last around 2-5 years and feature low fixed rates, with the rates potentially discounted. Sometimes though you may find that you’ve been placed onto a tracker mortgage, which will follow along with the Bank of England’s base rate.

Once your term comes to an end, it’s likely that you will be put onto the lenders Standard Variable Rate (this may be shortened to SVR). To explain what this is, an SVR is a mortgage that has an interest rate that may change depending on the amount that your lender wants to charge for it.

The Standard Variable Rate will not follow the Bank of England’s base rate like you would see with a tracker mortgage.

Because of this, SVR’s are generally perceived to be the most expensive paths that customers could take, leaving many to instead take a look at Remortgaging to open themselves up to better rates, something which may hopefully save you money on future monthly mortgage repayments.

Remortgage For Home Improvements

Once you’ve gotten about 2-5 years into being a homeowner, you may feel like something needs to changed. Some people might want an extra room or much more living space, possibly a new kitchen, a new office to work from home in, or even a new loft conversion.

Rather than find a bigger home to move into, a lot of homeowners instead look at releasing their equity with a Remortgage, so that they can cover the costs of home improvements.

Obtaining planning permission and both funding and managing your own project can seem quite stressful. Some other homeowners would say that it is less stressful and a lot more rewarding than it would be trying to get a new home, selling your current home and moving everything between properties.

In the long run, you may be able to reap even more benefits, as opening up lots of space within the property and having a top level of craftsmanship will very likely increase how much the property is worth, which is useful if you ever decide you want to sell your property or make it a rental.

Remortgage for Changes to Your Term

Sometimes you’ll find that people are looking to Remortgage in Leeds so that they can gain access to a better mortgage term, whether this be achieved by reducing the length of the term or switching to a more flexible mortgage product.

By reducing your terms length you’ll be cutting short how long you pay back your mortgage for, so aren’t tied down, though it does mean that your monthly repayments will be higher. The longer you set your term for, the lower your payments will be.

Some homeowners may choose to take out a more flexible mortgage term when they look to remortgage. They may do this due to the amount of benefits they may have for doing so.

In having this mortgage, you may be able to overpay, meaning you could pay your mortgage off a lot quicker, as well as being able to take the same mortgage and rates with you across to another property, if you ever do decide to move.

You might feel like a flexible mortgage sounds near perfect, though they tend to be tracker mortgages, which as we said before will follow the Bank of England base rate. This means your payments could differ depending on interest, which some may think is unreliable.

Equity Release

Everyone will have some amount of equity existing within their property. The amount can be worked out by looking at the difference between what is left on the mortgage and how much the property is currently worth.

As talked about before, the equity can be used for home improvements, though you can use it for more than that too. Some use their equity to cover long-term care costs, to boost their income, to go on holiday, to pay off an interest-only mortgage or to just give them some spare money to spend.

Occasionally, we see Buy-to-Let landlords using Equity Release as a way to cover their deposit for buying any future property portfolio additions.

Remortgage to Consolidate Debt

Whilst speaking of Equity Release, we also find that there are a lot of people who will pay off any unsecured debts that you may have gained over time.

Though it may seem like a really straightforward process, Debt Consolidation not only factors in the amount that you owe for your debts and how much the property is worth, but also the state of your credit rating. This means the amount you could borrow is limited.

On top of this, in order to pay off your previous mortgage and your debts, you need to borrow a much higher amount than your mortgage, making your monthly repayments much higher. Though it isn’t great, at least you know there are some options should these problems arise.

If you have a damaged credit rating, there are still options out there for you, though these aren’t easy and require very Specialist Remortgage Advice in Leeds before you go ahead with these. Even with those options, you’re not guaranteed to get a mortgage.

It is always recommended that you get mortgage advice before you look to consolidate and secure any debts against your home.

Experienced Mortgage Advisors in Leeds – Get in Touch

If your mortgage term is coming to an end and you would like to learn more about your Remortgage options, we definitely recommend getting in touch with an experienced Mortgage Broker in Leeds and booking your free mortgage appointment.

A dedicated mortgage advisor will take a look at your situation and look at your future goals, in order to help you to determine the next step of your mortgage journey. We aim to ensure that your mortgage process this time around is a lot smoother and quicker than it was before.

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.com & Leedsmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
Should you have cause to complain and you are not satisfied with our response to your complaint, you may be able to refer it
to the Financial Ombudsman Service, which can be contacted as follows

The Financial Ombudsman Service, Exchange Tower, London, E14 9SR
www.financial-ombudsman.org.uk

© 2022 Leedsmoneyman

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