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The Pros and Cons of Using a Mortgage Broker in Leeds

Why Should I Use a Mortgage broker in Leeds? | MoneymanTV

Deciding to buy a home as a first time buyer in Leeds involves careful consideration. Take your time, explore various options, and make an informed decision that aligns with your financial goals.

Navigating the home buying or refinancing process can be complex, and this is where a mortgage broker in Leeds can be invaluable.

Whether opting for online services or a direct visit to the lender, many still find the expertise of a mortgage broker to be beneficial. Here are the pros and cons from an unbiased perspective.

Advantages and Disadvantages

A knowledgeable mortgage broker initiates the process with an initial conversation, assessing your readiness to apply for a mortgage.

Our mortgage advisors in Leeds, for instance, diligently shop around to secure the best deals possible, leveraging their industry experience to guide you through the home buying or refinancing journey.

One notable advantage of choosing a mortgage broker is the valuable expertise they bring to the table. With ample industry experience, mortgage brokers offer insights and solutions tailored to your specific needs.

Additionally, mortgage brokers often have access to wholesale rates on home loans, potentially resulting in substantial savings over the loan’s lifespan.

Most importantly, a mortgage broker can serve as your point of contact from the initial inquiry to the moment you receive the keys to your new home, providing guidance throughout the entire process.

Bank vs Broker

On the flip side, going directly to a bank can save you a broker fee, representing a notable cost saving. In earlier years, the branch manager’s familiarity with individual finances was advantageous. However, with the advent of credit scoring, this personal touch diminished.

Some lenders offer exclusive ‘direct-only’ deals, while others may have products accessible only through brokers. Since 2014, there has been a significant shift towards more applications through mortgage brokers, offering a same-day mortgage service.

Checking a lender’s willingness to lend a significant amount is important. Regardless of a lender’s attractive deal, the ability to lend a substantial amount is paramount. This is where an adept and professional mortgage broker in Leeds comes into play.

Handling Difficult Cases

Modern mortgage applications are no longer straightforward, with various factors adding complexity.

Examples include poor credit history, excessive debt, payday loans, your income if you’re self employed in Leeds, mixed deposit sources, Let to Buy scenarios, contract workers, zero-hours contracts, and affordability concerns. In the past, lenders could stand out by offering better deals.

However, today’s lending criteria vary, with some lenders being more lenient towards specific situations. An experienced mortgage broker in Leeds can personalise their service based on your unique circumstances, recommending the most suitable lender at the lowest rate possible.

Moreover, securing a mortgage is not just about the application. A mortgage broker provides extensive experience and knowledge, offering insights into property values, recommending professional services like solicitors, and explaining available protection and survey options.

Responsive Service

Another significant advantage of using a mortgage broker is their responsiveness compared to some lenders. Providing personalised service sets brokers apart, ensuring a smoother and more efficient process.

Additionally, hiring a mortgage broker helps save time, a key consideration for busy individuals. A mortgage broker streamlines the application process, requiring only one application instead of individual forms for each lender.

They also offer a comprehensive loan comparison, guiding you through cost differences, current rates, points, and closing costs for each loan.

What Credit Score Do I Need For a Mortgage in Leeds?

When applying for any form of financial assistance, a current credit report is a standard requirement. This report provides a comprehensive overview of your financial history and money management practices, distilled into a numerical credit score ranging from 0 to 1000.

As a mortgage broker in Leeds, our daily encounters reveal a spectrum of credit scores, with variations from low to high, dependent on individual financial circumstances. It’s rare to find two individuals with identical credit scores in a group of ten due to the personalised nature of these assessments.

Credit scores, ranging from poor to excellent, are typically defined by credit reference agencies like Experian, Equifax, and TransUnion. However, interpretations of a “good” credit score can vary among lenders, making it essential to consider individual perspectives.

Getting a Mortgage with a High Credit Score in Leeds

The cornerstone of mortgage approval is reliability, and a commendable credit score significantly contributes to establishing your dependability in managing finances. However, it’s important to note that even an excellent credit score doesn’t guarantee mortgage approval.

Some lenders may offer exclusive products accessible only to those with a credit score surpassing 900, making professional advice from a mortgage broker in Leeds invaluable before pursuing such high-end options.

Getting a Mortgage with a Low Credit Score in Leeds

Possessing a low credit score doesn’t necessarily preclude you from securing a mortgage. While specialised deals with higher interest rates may be the route, the opportunity to obtain a mortgage remains. Individual circumstances play a key role, and each applicant’s situation is unique.

In some cases, it can be difficult to get a mortgage with bad credit in Leeds, if you are struggling to get accepted or find products you qualify for, make sure to get in touch with one of our advisors at Leedsmoneyman.

Young Applicant with Low Credit Score

Younger mortgage applicants with lower credit scores, especially first time buyers in Leeds, may still find success, particularly when utilising government-led schemes like Shared Ownership.

Limited credit history may not be a hindrance, but instances of missed payments and defaults can impact mortgage eligibility. Seeking mortgage advice in Leeds before applying for various deals is prudent.

Mortgage with a CCJ or Default in Leeds

Defaults resulting from missed loan repayments can significantly impact credit scores, particularly when reaching a “poor” rating. A declined mortgage application and challenges in obtaining loans become likely in such cases.

Timely resolution of defaults or the issuance of a County Court Judgment (CCJ) as a last resort should be carefully managed. CCJs remain on credit files for six years, influencing lenders’ perceptions. Seeking advice from a mortgage broker in Leeds is advisable, especially when dealing with credit issues.

Remortgage with Bad Credit in Leeds

Remortgaging in Leeds with bad credit, even for homeowners, may present challenges due to the need for affordability assessments and credit score checks.

Individuals facing this situation might default to their lender’s standard variable rate of interest (SVR). Speaking with a specialist mortgage advisor in Leeds is recommended to explore potential solutions and specialist deals.

How does a low credit score impact interest rates?

Lower credit scores may limit access to lower interest rates, typically reserved for those with “very good” to “excellent” credit. First time buyers in Leeds may still access favourable rates due to their limited credit history. Conversely, adverse credit, such as defaults or CCJs, often results in higher interest rates.

Higher deposits may be required to secure better rates, but bad credit can also necessitate a higher deposit to demonstrate reliability, potentially maintaining a higher interest rate.

How Long Does Mortgage Approval Take in Leeds?

Purchasing a property is a significant financial commitment, likely the most substantial one you’ll make in your life. Understandably, you may have numerous questions about the mortgage process.

As a mortgage broker in Leeds, we’ve helped a diverse range of buyers, and a common inquiry we come across is, “how long does mortgage approval take?” If you’re a first time buyer in Leeds grappling with questions like these, seeking expert mortgage advice in Leeds is important.

However, it’s important to note that not every question has a straightforward answer, especially when it comes to timelines, as it hinges on individual personal and financial situations.

How long will it take for my mortgage to get approved in Leeds?

Assuming you have a clean credit history, mortgage approval could take around 2-3 weeks. This timeframe is just an illustrative example; the actual duration may vary. Approval processes may extend if there are current or past credit issues.

In such cases, the mortgage lender meticulously examines your credit file to assess your reliability as a mortgage applicant. For those with adverse credit or a history of credit problems, the approval process might span several months.

It’s imperative to understand that there’s no fixed timeframe for mortgage approval; it is contingent on both the mortgage lender’s policies and your unique financial circumstances.

Why do I have to wait for my mortgage approval in Leeds?

Securing mortgage approval today is a more intricate process compared to the days before the credit crunch. The days of mortgages being easily accessible are gone.

The current process is meticulous and time-consuming, aiming to gain a comprehensive understanding of your personal and financial situation.

Mortgage lenders delve into various aspects, including your credit, income (including occupation), and outgoings (examined through bank statements) to gauge your suitability for a mortgage.

This thorough evaluation is essential for lenders to determine the level of risk involved. It’s vital to bear in mind that you are just one of many applicants in the process.

Where does mortgage approval fit into the mortgage process in Leeds?

As a mortgage broker in Leeds, our approach involves structured stages that guide you through the mortgage application process.

The goal is to make your mortgage journey stress-free, allowing you to focus on finding your dream property in Leeds while we handle the intricacies of the mortgage side.

Step 1: Free Mortgage Appointment

Initiating your mortgage process is easy; simply book a free mortgage appointment with one of our mortgage advisors in Leeds. This can be done online by selecting a suitable date and time or by contacting our team directly.

With appointments available seven days a week, you can choose a time that suits your schedule. During the appointment, which typically lasts 30-45 minutes, your mortgage advisor in Leeds will gather essential information to understand your goals and guide you along your mortgage journey.

Step 2: Finding the Perfect Mortgage Deal

Following your mortgage appointment, your mortgage advisor in Leeds will provide an important document – the mortgage agreement in principle (AIP). This document is indispensable when making an offer on a property.

It serves as proof to the estate agency that you’ve received pre-approval from a mortgage lender. If you’ve already identified your dream property, we can swiftly proceed to the next step.

Once your offer on the property is accepted, we’ll align it with the ideal mortgage deal from our extensive panel of lenders, encompassing both high street and specialist products.

The details of this tailored mortgage deal will be presented in a comprehensive mortgage illustration document, providing you with all the essential information.

Step 3: Mortgage Application

If you’re satisfied with our service and the identified mortgage product, it’s time to initiate your mortgage application. Preparing this application involves attaching several documents to demonstrate your affordability for a mortgage.

Rest assured, we’ll help you in gathering all the necessary paperwork to ensure your application is complete. Upon readiness, we’ll submit your application to the mortgage lender.

Step 4: Mortgage Lender Checks

Once your mortgage application is submitted, it’s now in the hands of the mortgage lender. Importantly, we’ll never propose a mortgage product that is likely to be declined. The lender will scrutinise the attached documents to verify your mortgage affordability.

They’ll also verify your ID and current registered address, and scrutinise the source of your deposit. If your deposit is a gifted one, the lender will require the last 3 months’ bank statements from the donor and a signed gifted deposit form.

Step 5: Mortgage Valuation Survey

Distinct from a house survey, a mortgage valuation survey entails the lender sending a property surveyor to assess the actual value of the property you intend to purchase. Different property surveys are available in Leeds, each suitable for different property types.

Your mortgage advisor in Leeds will recommend the appropriate survey for your situation. The purpose of the survey is to ensure the property’s value aligns with your offer. This step safeguards the lender in case of repossession, assuring they can recover their funds by selling your home.

As long as you consistently meet your monthly repayments, there’s no need to worry about losing your home.

Step 6: Formal Mortgage Offer

After the lender completes their checks, successful applicants should receive formal mortgage approval. Your mortgage advisor in Leeds will promptly share this positive news with you.

Subsequently, you’ll be handed over to the solicitors to finalise the legalities, exchange contracts, and prepare for key collection.

Get Mortgage Ready

Whether you’re a first time buyer in Leeds, looking to move, remortgage in Leeds, or invest in a buy to let property, understanding the mortgage process is key. As a mortgage broker in Leeds, we recommend commencing your mortgage process up to six months in advance.

This allows for the arrangement of your agreement in principle and early property searching within your budget. For instance, if you plan to move home in January, starting the process in the summer aligns with your timeline.

If you’ve had an offer accepted or are considering buying a property in Leeds, take action now! Book your free mortgage appointment online or by contacting our team today.

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.

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.

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

Credit Score Mortgage Advice in Leeds

Over the years as a Mortgage Broker in Leeds, we have found an increase in people paying a lot more attention to their credit rating. As a result of this, we have found that many people who get in touch with our team have already researched online to find a copy of their credit report.

There are many different credit reference agencies to choose from, but the two most popular companies you may know are Experian and Equifax.

Our team highly recommend that new customers who contact us look to use Check My File. By doing this, you’ll find a report that offers customers a collation of information from various sources (the aforementioned two included) in an easy understandable colour-coded report.

You sign up for a 30-day free trial with Check My File and after the 30 days, you will be charged £14.99 a month. This can be cancelled at any time before the end of those 30 days.

Try it FREE for 30 days, then £14.99 a month – cancel online anytime.

When dealing with customers, our Mortgage Advisors in Leeds are often asked if they will be doing a credit search on them. This is usually a customer who knows that too many searches can negatively impact their credit score.

Our mortgage advisors will always get permission for the customer to run a credit check, whereas the lender will run their own checks. There are two types of credit searches, one is hard searches and the other is soft searches. Below we will explain the difference between the two as well as how they can help.

What is a hard credit search for a mortgage?

A hard credit search is a type of credit check that provides an in-depth look at your credit report. All financial institutions that carry out one of these will need to seek your permission before undertaking this check.

One of the benefits of a ‘hard’ search would be how detailed it goes. Having this carried out and passing it can increase the chance of you being successful with a mortgage, however, this is not always guaranteed).

After passing this, the only thing that could go wrong with your mortgage process is if you cannot provide the required documentation to back up the information that you have presented to the lender, or it turns out you have provided incorrect information altogether.

Another advantage to having a hard credit search carried out will leave a ‘footprint’ on your credit file meaning that anyone looking at your report can see that this search has already been done on your file.

Having this mark on your file is not a bad thing at all, however, if your credit file shows that there have been multiple searches carried out in a short period of time. By having these displayed, it could give the impression to the mortgage lender that you are applying for lots of credit at the same time which wouldn’t work in your favour.

An important point you need to know about the ‘footprint’ is that it will not leave a note to confirm whether or not your application was successful. Therefore, having several searches highlighted on your report can result in the lenders’ systems assuming 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?

If you have the occasional hard footprint on your record it’s not going to be a massive issue which is why you don’t need to worry about it too much. It’s best to be careful not to have too many of these taken out.

What is a soft credit search?

The other type is a soft credit search. Opposite to a hard credit search, this would be a more straightforward approach by looking at your financial situation. These are normally done through price comparison websites, so you can find out what options may be on offer for you.

Another way it can be used is to verify your identity. Some mortgage lenders will carry out soft searches of their own. It can be common to find these days that even more lenders are changing to this type of credit search.

Even though the one drawback of a soft search is that you will get less information out of it in comparison to a hard search, if you managed to obtain an Agreement in Principle from a lender, this still can be a positive indicator that your application will be accepted.

The one factor that makes soft searches appealing to customers is that you are able to see soft searches that others have carried out on you (many are often surprised by how many have been carried out on them), but these searches will not be visible to other financial institutions like a bank or lender.

Because of this, you will be able to apply for an Agreement in Principle ahead of a mortgage in Leeds, without causing any damage to your credit score, whether you are successful or not.

In the case where you are a First Time Buyer in Leeds looking at making any offers on a property, our expert Mortgage Advisors in Leeds would highly recommend you get a mortgage Agreement in Principle before getting in touch with an estate agent.

It can be ideal to give yourself the best possible chance of securing your dream property at the lowest possible price. Therefore if you present yourselves as having your finances organised, it’s likely you will give yourself the upper hand in your mortgage situation.

Having an Agreement in Principle to hand can also help stop an estate agent from trying to cross-sell any of their own mortgage products to you.

What is a Property Chain and How Can You Avoid Them?

Moving Home Mortgage Advice in Leeds

Property chains can be a common hurdle for homebuyers going through the process. The moving home journey can be interrupted if you are in a property chain as some factors can stall the process.

Having said that, you may encounter a range of problems and hurdles when obtaining a mortgage. It could be that your application is stuck in the pipeline or there might be an issue with your offer not being accepted, it’s possible that you can encounter issues when going through the journey of moving home in Leeds.

What is a property chain?

A property chain involves a group of sellers that are connected so will be relying on each other for each purchase to go through. In the case where you are a first time buyer in Leeds, you will always be at the beginning of the chain, unlike a seller who would be placed at the end.

For example, a person is ready to move into a property they’re buying. From this, the buyer needs to wait for the seller to move out first. Then if that seller is in the same situation, they will also be waiting for them to move out to move in.

How long will the process take in a property chain?

This all comes down to the seller’s situation which you will be unaware of.

Sometimes, you may not even know that you are in a property chain, and the full process could run smoothly. This is the ideal situation for everyone because it makes the moving home process go smoothly and straightforward.

On the flip side, if things don’t run as well, this can involve waiting. This is why our team recommend you start your process with at least six months of preparation. Within this time, you can look for that perfect home and provide some time if you get stuck in a property chain.

What happens if my property chain breaks?

The full chain could suffer if you are linked with a property chain and one purchase does not go through. Therefore, if this chain breaks, you will either have to wait or look for another property.

In the case where the property chain breaks at your purchase, there can be a way to stop it from damaging the overall chain if you act fast.

An option for sellers could be to contact the people planning to buy your property by speaking to your estate agent. By doing this, you can inform them of the situation sooner rather than later.

It’s best to prepare for a break in the property chain regardless if you are on a seller’s level or your level.

You could buy a property that isn’t in a chain or a small chain, sell your property, rent temporarily, buy a new-build property etc.

How can a property chain break?

There could be a number of reasons why a property chain can break. This could happen at your’s, your seller’s or even your buyer’s level:


Above is just a small number of examples, there are many more reasons. As mentioned, the length of the property chain you are in will depend on how these situations impact your ability to move home.

How can I avoid a property chain?

Avoiding a property chain can be difficult, especially if you are buying at a busy time of year or when the market is hot.

Furthermore, you could research and speak to your estate agent to get an idea of your position in the midst of the application stage. It is best that you organise your finances as early in the process as possible. Being prepared for things that could go wrong, the better.

In the case where you avoid a property chain (also known as ‘chain-free), the moving process will more likely be straightforward. This is obviously factoring in that you provide evidence that you can afford a mortgage and deposit the property.

Are you thinking of moving home to Leeds?

Our moving home Mortgage Advisors in Leeds can help you through the process if you are looking to buy and sell your property.

If you are looking for help with the moving home process, book yourself in for a free mortgage appointment.

A Guide to Remortgages in Leeds: Top Reasons to Consider

Remortgage Broker in Leeds

Your mortgage journey can be a fruitful one for many. If you are able to proceed, though there may be ups and downs, you will inevitably always end up with one of a few potential outcomes.

Those outcomes are either a home for you to settle down in, a starter property to later push you up the property ladder or an investment property with a view to provide you with an additional income.

Regardless of the route of which you took, you will eventually find yourself at a point where you need to consider what to do next. A selection of homeowners will sell their home to upsize or downsize into a new home.

Other property owners may instead sell their portfolio to either a tenant or another property buyer. The most common occurrence we see, however, is people looking to remortgage their home or property.

What is a remortgage?

The first step here is to review what a remortgage actually is. In the simplest way to describe it, a remortgage is the process of replacing your current mortgage with a new mortgage, for a desired purpose. These range from smaller options to larger ones.

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

When you start your mortgage deal, you’ll more than likely choose to run for 2-5 years, with low fixed rates and the rates potentially discounted. From time to time though, you could find yourself on a tracker mortgage, with interest following the Bank of England base rate.

Once your deal has ended, it is very likely you will find yourself on the mortgage lenders Standard Variable Rate (SVR). An SVR is a type of mortgage that has an interest rate set by the mortgage lender. This can fluctuate at any time, depending on what they want to charge for it.

Because an SVR will not be following the BoE base rate and are set at mortgage lender discretion, they tend to be much more expensive and can lead to many customers remortgaging to find a better rate of interest. Hopefully, this will save you money down the line.

Remortgage for Home Improvements

Once you have gotten to the point of being around 2-5 years into your home owning journey, you may feel like you want a change. Perhaps you need more space, an extra bedroom, a kitchen refurbishment, a room or loft conversion.

Rather than finding a much bigger home to move into, many homeowners will look instead at releasing some of their equity that is in their home, through a remortgage, as a means to cover the costs of the home improvements they intend to make.

Obtaining planning permission and both funding and managing your own project can sometimes be a little stressful, though some would debate that it’s less stressful than selling a home, buying a new one and moving everything you own.

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 the value of the property, which is useful if you ever decide you want to sell your property or let it out instead.

Remortgage for Changes to Your Term

Sometimes you’ll find that people are looking to remortgage in Leeds as a means of gaining access to a better mortgage term, whether they want to reduce the length of the term they have or perhaps switch onto one that is more flexible.

By reducing the length of your term, you won’t be paying back your mortgage for as long, though it will more than likely mean that your monthly mortgage repayments will go up. The longer your term, the lower your mortgage payments will be.

A lot of homeowners choose to take out a more flexible mortgage term when they look to remortgage. They may do this due to the amount of benefits that are present for these types of mortgages and their holders.

In having this mortgage, you may be able to overpay, meaning you could pay your mortgage off much quicker, as well as being able to take the same mortgage and rates with you across to another property, if moving ever becomes something you’d like to achieve.

Though flexible mortgages seem perfect to some, they also 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 can be a little unreliable for some people.

Remortgage to Release Equity

Every homeowner has some level 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 valued at.

As we have said, 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.

From time to time we even see buy to let landlords using a remortgage to release equity as a way to cover their deposit for buying any future property portfolio additions they wish to own.

If you are aged 55+ and own a home that is valued at a minimum of £70,000, it may be worth your time looking at your options for equity release in Leeds. Book online and speak with a qualified later life mortgage advisor to learn more about later life mortgages.

Remortgage to Consolidate Debt

On the topic of releasing equity, we also find that there are a lot of people who will pay off any unsecured debts that you may have gathered against your name over time.

Though it can seem initially like a really simple process, debt consolidation will not only factor how much you owe, but the value of your property and also your credit rating. This means that you might not be able to borrow as much as you would like.

Additionally, 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 incredibly high. Though it isn’t the best of options, at least you know there is something you could do, should these problems arise.

If you have a damaged credit rating, there are still a selection of options out there for you, though these aren’t easy and more often than not, require very specialist remortgage advice in Leeds before you proceed. Even with those options, nobody is guaranteed to successfully obtain a mortgage.

You should think carefully before securing other debts against your home. By adding your unsecured debts to your mortgage, which is secured on your home, you are potentially putting your home at risk if you cannot make the required repayments.

Although the total monthly cost of servicing your debt may have reduced, the total cost of repayment may still have risen as the term of your mortgage is longer than it may have taken to repay the debts originally.

Book a Free Mortgage Appointment in Leeds

If your mortgage deal is reaching its conclusion and you would like to understand your options more in-depth regarding a remortgage in Leeds, book your free mortgage appointment and speak with an expert mortgage broker in Leeds today.

A trusted and experienced mortgage advisor in Leeds will review your situation and what else you would like to achieve in the future, as a means of determining the next step of your home owning journey. This time around, we aim to make your process go quicker and smoother than the first time.

Can I Port My Mortgage to a New Property in Leeds?

Porting a Mortgage in Leeds

Porting a mortgage takes place when you are looking to move home at the time of your fixed-rate deal. It’s actually possible as a homeowner to transfer your mortgage product and you will potentially have the option to port your mortgage if necessary.

Instead of paying the early repayment charge (ERC), the lender might give you the option to pick up the remaining amount on your current mortgage and move into the property. This option is not available to all applicants moving home as it depends on where you’re looking to move and if the lender will let you proceed with porting the mortgage.

Taking out a Second Charge mortgage can be an option if the property is valued more than what you will be paying back. If you are wanting more information about this, check out our MoneymanTV YouTube channel with our video: What is a Second Charge Mortgage?

Are all Mortgages Portable?

You may find that not all mortgages are portable, especially if you are with a specialist lender as the option to port may not available to you. To find out if you can port your mortgage or not, contact your lender who can confirm this for you.

Should I port my Mortgage?

Despite porting be an option for some customers, many decide not to. The reason for this might be that your lender will not lend you extra money so you can move. If you are provided with additional funds, this will be at a separate rate from the one on your current deal. You might turn down the new deal you have been offered and decide to take the early repayment charge and go to a different lender.

What is a Sub Account?

When you port your mortgage, a sub-account on your mortgage is created. The additional funds will go onto a different deal to the one you have on your current mortgage. Regardless of you having one mortgage and one direct debit, two different rates of interest will apply to each.

The annoyance that can come with having sub-accounts is that down the line you may the different products will overlap. Aligning the accounts could mean that one of the sub-accounts will have to go onto the lenders’ standard variable rate for a certain period of time.

Here at Leedsmoneyman, we can offer mortgage advice when it comes to porting mortgages. Therefore, if you are moving house in Leeds and dealing with a buy to let mortgage or you are in need of support with a self employed mortgage, booking a free appointment with one of our dedicated mortgage advisors can help explore your options.

Can I get a mortgage as a student?

Student Mortgage Advice in Leeds

University: a place to enjoy freedom, independence and time away from the parents! However, as you know, university life comes with costs and lots of different fees. With constant bills, it can sometimes be hard to see what you’re actually paying for, particularly with student accommodation.

When it comes to student accommodation, you may feel like you’re getting your money’s worth yet sometimes you may feel the complete opposite. You’re in luck if you manage to get a landlord that looks after you and your property and takes care of damages and repairs quickly. On the contrary, you could get a landlord that isn’t responsive at all and leaves you with broken appliances for weeks on end.

Unfortunately, more often than not, students will end up getting a landlord that doesn’t give much back to them and treats them poorly. In this situation, it can make you question, is it really worth spending all of this money to get nothing back? If you’re asking yourself this question, why not consider becoming your own landlord?

When you are your own landlord, you’ll avoid all the hassle and be able to sort things out yourself. You can become your own landlord by taking out a student mortgage. Although it can be expensive in the short term, it can save you money as soon as you get the keys and start living in the property!

Why Should I get a Student Mortgage?

A student mortgage will not only allow you to save money on your accommodation but will also give you an early chance to get yourself onto the property ladder. Usually, these mortgages are more popular amongst students who are planning to carry on their education to a masters/PhD level.

Even if living within the property is temporary, you can always sell it in the future and make money back on it. Alternatively, you could turn it into a buy to let in Leeds to rent out to other students.

When your university journey comes to an end, you will have built up a large amount of equity within the property. This equity, when released, can be turned into a lump sum of cash. You can use this cash on whatever you want, whether it’s for another deposit, a wedding, a car, etc. Since it’s your money and your equity, you can spend it how you want.

There are many different things that you could do with your property in the future!

How can I get a student mortgage?

Sometimes, it can be hard to obtain a student mortgage because you’ll need funds in place to afford one, and for a student, this can be difficult.

As a mortgage broker in Leeds, when a student enquires about a mortgage, we have to ask them some questions to learn about their financial situation and see whether they’ll be able to qualify for one or not. Firstly, we will need to find out whether you have a deposit at the ready. Your deposit can be a gifted deposit, from a Lifetime ISA or even as simple as funds from a savings account.

Secondly, we need to make sure that you can actually afford a mortgage. One of our mortgage advisors in Leeds will measure this by working out your mortgage affordability. You will certainly need a form of income to get a mortgage as a student. Depending on your lender, you may be able to get a mortgage with a part-time job, however, most lenders will only accept a full-time job.

Showing Reliability

Showing reliability is key. You need to show the lender that you’re a reliable applicant that will be able to afford a mortgage. Here are a few examples of how you can increase your reliability:

Increasing initial deposit – By putting down a higher deposit, the overall amount that you’d need to borrow for a mortgage would decrease. This would also mean that your mortgage payments would decrease.

Utilising government schemes – Government-led schemes are a great way to increase your reliability for a mortgage. The schemes are under a program called “Own Your Home”, they were introduced to help first time buyers get onto the property ladder.

Through these schemes, you may be able to access a larger deposit. Some of the schemes include the Lifetime ISA and Shared Ownership. There are many more if you visit https://www.ownyourhome.gov.uk/all-schemes/.

Have an AIP ready – A mortgage agreement in principle (AIP) can benefit your student mortgage application. An AIP proves that a lender is willing to lend to you based on you providing evidential documents to support your income, mortgage affordability, etc.

This is just a few examples, there are more ways to show your reliability as a student. Get in touch with our mortgage advisors in Leeds today to find out even more ways to improve your reliability.

What type of property can I buy with a student mortgage?

Likewise to other mortgage options, you will have to meet certain requirements before securing your student mortgage:


With these points in mind, we suggest that you have a think about what you are going to do with the extra rooms. It makes sense to rent them out to help support your mortgage payments each month.

What happens if I can’t afford my payments?

Lenders won’t take any risks when it comes to offering a mortgage student. They will take careful precautions with all student applicants.

When signing off the papers for your mortgage, you’ll be asked to give a name for a guarantor. This is someone who will cover your payments if you cannot meet them at any time. There are some limitations to who your guarantor can and can’t be:

You’ll find that every lender will always have some sort of backup.

For expert help with achieving your mortgage dreams as a student and first time buyer mortgage advice in Leeds, contact our brilliant team today. We will help you see whether you qualify for a student mortgage and perform a free affordability check on you and your file.

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UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

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