Whatever the reason is for wanting to remove a name from a mortgage, the process may be hard and complicated. As soon as you take out a mortgage in multiple names, getting your name or someone else’s name off can prove difficult.
It’s not impossible to take a name off a mortgage. Here is why people want names removed from a mortgage and how you can do it:
The first and most common example would be if you were going through a divorce or separation and needed to take either your name or your ex-partner’s name off the mortgage. When going through a breakup, financial arrangements get pushed to the back of your mind, however, they should be actioned on first. Leaving the complicated processes till last can be stressful. You will also need to allow some time for your lenders to do what they need to do; they can’t just remove a name just like that.
Your lender, building society or mortgage broker in Leeds will need to know that both parties will be able to live comfortably with just one income. If one party decides to remain within the household, the lender will need to make sure that they can afford the mortgage payments by themselves or whether they’ll still need help with them. Both parties must agree for a name to be taken off a mortgage, therefore, if one party says no, you’ll be required to go down the route of court proceedings, which can be costly and time-consuming.
If you’re going through a tough divorce or separation and need specialist mortgage advice in Leeds, we’re here to help you arrange the mortgage side of the process.
Surprisingly, this process is fairly straightforward, even more so if you choose to use a mortgage broker in Leeds.
The process will involve the homeowner transferring equity to their family member or friend. Essentially, the mortgage will get transferred with the equity remaining inside the property. The new homeowner will still be required to prove that they can afford a mortgage. They’ll have to pass their lender’s affordability and eligibility assessments.
If a party is not paying their way, it can start causing you problems as you’re financially associated with them. Believe it or not, as a mortgage broker in Leeds, we’ve seen this situation come about quite a lot, it’s usually when there’s been an argument within the household!
If bills aren’t being paid by one person within a household, it can affect everyone else too. When you sign up for a mortgage with multiple names, you’re trusting that everyone is going to keep up to date with their payments. Missed payments can negatively affect your credit rating and score.
If you’re in this situation, it may be best to approach your lender. Alternatively, you can speak to a professional mortgage advisor in Leeds and help before it gets worse.
When you’re wanting to remove a name from a mortgage, it’s essential that you speak with an expert. Getting specialist mortgage advice in Leeds will definitely help you out.
We would recommend describing your issue to your mortgage advisor in Leeds and going from there. Before you can continue, the named party that you’re trying to remove will need to prove that they are able to live comfortably with one income. This part of the process can be a struggle, particularly if a party is refusing a name to be removed.
Let our team handle the stressful parts of this process. Our specialist advisors are available 7 days a week, make sure to get in touch.
As a mortgage broker in Leeds, we see many Interest-Only Mortgages come to the end of their term. In quite a few of these situations, people have struggled to pay their mortgage off in full.
Our job is to help you through these kinds of situations and give you advice on what you can do if you are faced with these problems.
Here is everything about interest-only mortgages and what you can do if you’re struggling to pay off your mortgage.
We’ll rarely find someone that has taken out an Interest-Only Mortgage on a property that they’re living in. Usually, it’s only landlords that take out Interest-Only Mortgages these days. Landlords do this so that they can maximise their profits, Interest-Only Mortgages can help them do this.
During the 1980s and ’90s, these mortgages were very popular, even amongst buyers that wanted to live inside the property that they’re buying. Their idea was that they would pay interest on the capital owed then pay the lump sum back at the end of the term.
At the time of these borrowers taking out an Interest Only Mortgage, it’s likely that they also set up an investment vehicle, this is usually a low-cost Endowment policy. This policy provided life cover to pay off the mortgage should the borrower die.
Sometimes, people were advised wrongly and wasn’t made aware of the risks involved with an Interest-Only Mortgage. There was no guarantee that the investment would mature for a big enough sum to repay the mortgage. Leading to a surge of complaints, and thousands of people received compensation if they got mis-sold.
Endowment Mortgages are more of a thing of the past. It’s been a very long time since they were popular. You’ll still find people with them though. It may be that they just haven’t got around to switching to a repayment mortgage. If you end up in this position, it can be a very worrying time because you might be worried about losing your home.
You can still take out Interest-Only Mortgages, however, you will have to pass a lot more requirements to get one. Lenders are much stricter nowadays and matching their criteria may be tricky.
If you take one out now, you may encounter problems in the future.
A borrower could be taken by surprise by their lender requesting full repayment of the balance. This may happen if there’s been a lack of communication between the applicant and the lender. Lenders should be regularly writing to their Interest-Only customers to ensure that they know they must make plans to repay the capital.
If you have no means to repay the capital, our advice is to keep the lines of communication fully open with your lender. They will be very experienced in dealing with these situations, and you just need to let them know where you stand. Lenders never want to repossess your property, although, they will do this as a last resort.
Here are some of the things you could be doing to resolve the situation:
Following on from our last points, there are far more retirement mortgage options open to borrowers now than there has ever been. If you manage to qualify for one of these, you can continue to pay interest to protect the equity you have in the property. Alternatively, if you are not worried about leaving an inheritance to your children, you can let the interest roll-up and cease making payments altogether.
One major problem in getting a mortgage through Equity Release tends to be the loan to value. You must have a decent amount of equity in your home to qualify for one of these products.
A common dilemma that some homebuyers come across is property chains. Being stuck in a property chain could slow down your home moving journey, if not put it to a halt.
That said, you may come across all sorts of different problems and hurdles when obtaining a mortgage. Whether your application is stuck in the pipeline or there’s something to do with your offer not being accepted, there’s always something that comes up when you are in the process of moving home in Leeds.
A property chain is a link of house purchases that rely on each other for each purchase to go through. If you are a first time buyer in Leeds, you will always be at the start of the chain. Whereas, if you are selling a property, you will be placed at the end.
Imagine someone that is ready to move into the property they’re buying. The buyer needs to wait for the seller to move out first. That said, if the seller is in the same situation, they too, are waiting for their seller to move out to move in.
The answer to this question is entirely situational, as you are unaware of your seller’s situation.
You may not even know that you are in a property chain, the whole process could run smoothly. Everyone hopes for this situation; who doesn’t want a quick and straightforward moving home process?
If things turn sour, you may be stuck in a waiting scenario. We recommend beginning your process with at least six months of preparation. Leaving you plenty of time to search for that dream home and time just in case you get stuck in a property chain.
Unfortunately, if you are linked with a property chain and one purchase does not go through, the whole chain behind it could suffer. When a property chain breaks, you will have to wait or look for another property.
If the property chain breaks at your purchase, you may be able to stop it from damaging the entire chain if you act quickly.
If you’re selling, you could contact the people planning to buy your property by speaking to your estate agent; this way, you can inform them of the situation sooner rather than later.
Whether it’s something wrong on the seller’s level or your level, there are still ways to prepare for a break in the property chain.
For example, 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.
A property chain can break for many different reasons. It could happen at your’s, your seller’s or even your buyer’s level:
These are just a few examples, and there are many more reasons. The length of the property chain that you are in will depend on how drastically these situations impact your ability to move home.
It can be challenging to avoid a property chain, especially if you’re buying at a busy time of year or when the market is hot.
Moreover, you could research and talk to your estate agent to know your position during the application stage. Arranging your finances as early in the process as possible would be wise. The more that you are prepared for things that could go wrong, the better.
If you avoid a property chain (also known as ‘chain-free), you should be able to continue straight through the moving home process. This assumes that you provide evidence that you can afford a mortgage and deposit the property.
If you are considering buying and selling your property, why not let our moving home mortgage advisors in Leeds step in and help you through your process.
You can book yourself in for a free mortgage appointment. Get started today, and we may be able to help you get through the moving home process stress-free.
Across the nation we now find that people are paying a lot more attention to their credit rating they might have done in previous years. We find that a large majority of the people who call us for mortgage advice in Leeds perhaps have already researched online to find a copy of their credit report.
There are a wide variety of different credit reference agencies to choose from, but the two most common companies you may be aware of are Experian or Equifax.
We would highly recommend that new customers who get in touch look to use Check My File. In doing so, you’ll find a report that offers customers a collation of information from various sources (the aforementioned two included) in an easy to understandable colour-coded report.
Check My File offers a 30-day free trial. After this 30 days, you will be charged £14.99 a month, although you can cancel this at any time prior to the end of those 30 days.
When speaking with our customers, our mortgage advisors are often asked if they will be doing a credit search on them, as they have done their research and know that too many searches can negatively affect their credit score.
The lender will always run their own credit checks but our mortgage advisors will always ask the customer for permission before doing so. You’ll find that credit searches will come in two forms; hard searches and soft searches. Here we will discuss the difference between the two and how they can help.
A hard credit search is a way to take an in-depth look at your credit report. No matter who they are, any financial institution carrying out one of these will have to seek your permission to do undertake one of these.
The main advantage of a “hard” search would be how in-depth it actually goes. The chances are, if you can pass a hard credit check, it is likely that you will go on to be successful with a mortgage (though this is of course never a guarantee).
From this point on, all that can go wrong with your mortgage process is if for some reason you cannot provide the required documentation to backup the information that you have presented to the lender, or it turns out you have provided incorrect information altogether.
Looking at it from the other hand, another benefit is that having a hard search taken out on you will leave a ‘footprint’ on your credit file, which would mean that anyone taking a look at your report can see that it has been carried out.
This is not a bad thing at all, but let’s say that for some had multiple searches included in your credit file in a short period of time. This could come across to the mortgage lender that you are applying for a lots of credit at the same time and this may put them off.
The footprint will not leave a note as to whether or not your application was successful, so if you have several searches in a short amount of time, the lenders’ systems may assume wrongly that you are being declined regularly. Think about it; why would you apply for credit with a second lender, unless you’d been declined by the first?
Having the occasional hard footprint on your record isn’t too big of an issue, so you really don’t need to worry about it too much. Just be careful not to have too many of these taken out
The alternative to the hard search, would be a soft credit search. This would be a much straightforward search which takes a look at your financial situation and would be the type of search that you might come across when using a price comparison website, so that you can find out what options may be available to you.
Alternatively it can be used to verify your identity. You’ll find that some mortgage lenders will carry out soft searches of their own. We find that nowadays, even more lenders are changing to this type of credit search.
Whilst it will give whoever is carrying out a soft search less information than they would’ve gotten from a hard search, if you managed to obtain an Agreement in Principle from a lender, it is still a very good indicator that your full application will be accepted for a mortgage.
One of the things that appeals to customers regarding soft searches is that you have the ability to see soft searches that others have carried out on you (people are often surprised by how many have been carried out on them), though these searches will not be visible to other financial institutions such as a bank or lender.
This means that you have the ability to apply for an Agreement in Principle ahead of a mortgage in Leeds, without causing any damage to your credit score, regardless of whether it is successful or not.
If you are thinking of making any offers on a property as a first-time buyer in Leeds, our trusted and dedicated mortgage advisors in Leeds would very much suggest that you obtain a mortgage Agreement in Principle in place prior to getting in touch with an estate agent.
You should ideally look to give yourself the best possible chance of securing your dream property at the lowest possible price. With this in mind, if you present yourselves as having your finances in order, you will definitely give yourself the upper hand in your mortgage situation.
Being in possession of an Agreement in Principle could also help prevent an estate agent from trying to cross-sell any of their own mortgage products to you.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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!
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!
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 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 Help to Buy Equity Loan, 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.
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.
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.
Has your current mortgage deal come to an end, and do you need to borrow some additional money? If so, then it could be the right time for you to consider remortgaging.
We have witnessed far too many customers who leave searching for a new deal too late and end up falling onto their Lender’s Standard Variable Rate (SVR). We always recommend that all customers keep on top of their mortgage and make sure you know when your term is ending.
A lender’s rate will be a lot higher than your current rate, which will result in your monthly payments increasing. There is nothing wrong with being ahead! Keep on top of your mortgage and speak to a remortgage advisor in Leeds.
Lenders don’t reward loyalty. We have seen some lenders offer better deals to new customers than existing customers who have been with them for several years! That’s why we recommend you look around before committing to the same lender. There could be better offers with lower rates out there.
We understand that some choose to do it by themselves online and switch over there and then. That’s what’s called an ‘execution-only mortgage’. It might be easy to do, but you don’t benefit from any consumer protection. Again this highlights the importance of getting mortgage advice in Leeds before making any rash decisions.
Is your home due for some upgrades? Were you aware that you can remortgage for home improvements? It can be a good investment as some improvements, such as loft conversions, extensions, can potentially increase the property value.
People who are not looking to increase their property value and have found their “dream home” will also borrow for home improvements, there is nothing wrong with this, they just want to make give their home a bit of a makeover. You can increase your mortgage to pay for cosmetic alterations as well as structural work.
You have the decision to use whichever contractor you choose. But, if you need to borrow a significant amount of money, your lender will need to know the estimates for the works you intend to have carried out.
It is possible to raise capital on your property when you remortgage for almost any reason. Some popular scenarios include wanting to raise money for:
Keep in mind that you will be paying interest on a remortgage for a while. Ensure that you are borrowing for the right reasons and keep up to date on your repayments during the entire mortgage term.
Just adding unsecured debt to your mortgage might result in you needing to pay back more interest. A mortgage term can be much longer than a personal loan, but it isn’t always the case.
Make sure to consider that you are taking unsecured debt and securing your home, which will not sit easily. If you cannot afford your mortgage payments down the line, you have put everyone at risk of repossession.
You will need to consider that you are taking unsecured debt and securing your home. Which will not sit easily with everyone as you are under the risk of repossession if you cannot afford your mortgage payments down the line.
You will need to know that if you have 0% credit cards, the interest rates that apply to the debts that you are considering rolling onto your mortgage will start attracting interest too.
It would help if you considered all of your options before deciding to consolidate debts. We think that the best way to make a decision is to seek remortgage advice in Leeds from a remortgage advisor.
A remortgage advisor can evaluate all of your options and then recommend the best route to go down. Your advisor might even suggest that you don’t need to go down the path of debt consolidation remortgage.
Consolidating debts into your mortgage leads to a reduction in your monthly outgoings. We have seen some customers end up reducing their payments by several hundreds of pounds.
If you feel that remortgaging is the right option for you, get in touch to speak to a remortgage advisor in Leeds today. We will help and assist you with all your mortgage-related needs.
For many first time buyers in Leeds, and sometimes for home movers, getting a mortgage can be a struggle. Whether it’s to do with credit score, deposit size or affordability, you may encounter a problem or so along your mortgage application journey.
As a mortgage broker in Leeds, we’ve seen many different reasons why someone has been declined for a mortgage. In this article, we are going to take a look at the most common situations that we come across:
When it comes to matching lender’s credit scores, some will be easy to match than others. Each lender will be targeting their own type of customer, therefore it’s very unlikely that you’ll pass every lender’s criteria, no matter how good your credit score is.
You’ll find that lenders with the lowest rates will have the tightest lending criteria. To pass their criteria, it’s likely that you’ll also need a high credit score and a clean credit history, etc.
Lenders will only take on reliable customers. They will not take on someone who carries a risk of falling into areas over the course of their mortgage term. If you have a bad credit history or currently have bad credit, you may need to approach a specialist mortgage lender.
As a specialist mortgage broker in Leeds, we can access specialist lenders and can check whether you’ll match their criteria. It’s our job to offer help to customers who are struggling with their mortgage journey.
There is always uncertainty as to how much deposit you actually need for a mortgage. Is it 5%, 10%, 15%?
It is all down to your credit score to how much deposit you will be required to put down. Typically, the lower your credit score, the higher your deposit will have to be. Obviously, your deposit total also depends on the property that you’re buying, as property price goes up, so will your deposit.
If you don’t have a deposit in place for a mortgage, it’s very unlikely that you’ll be able to get one. However, you may not need a deposit if you’re taking out a right to buy mortgage in Leeds.
Utilising government-led schemes could possibly help you get a mortgage with a small deposit. There are lots of schemes out there to help struggling customers get onto the property. You could take a look at the Help to Buy Equity Loan, Shared Ownership and the Mortgage Guarantee scheme. There are lots of different options available.
Find out more here: ownyourhome.gov.uk
Sometimes you may not find out the reason why you can’t didn’t qualify for a mortgage. The lender just declined your application.
In this situation, it could be anything from that you’ve applied for the wrong product to that you simply didn’t match the lender’s criteria. As a mortgage broker in Leeds, we like to call this the “computer says no”.
Leedsmoneyman will never put you forward for a mortgage product that we know you will not get accepted for.
Our job, as a mortgage broker in Leeds, is to try and find you a suitable mortgage deal that matches both your personal and financial situation. We will thoroughly measure your affordability and perform a credit check on you; this way, we can start searching for a product that’s perfect for you.
Our team will make getting a mortgage seem easy once you pass the affordability stage. Having a mortgage advisor in Leeds by your side could prove extremely beneficial and will allow you to progress through the mortgage application stress-free.
Now, instead of asking “why can’t it be easier to get a mortgage?”, use a mortgage broker in Leeds!
Our team are available 7 days a week. Book your mortgage appointment online today.
Some people find the idea of sorting out a pension can be slightly off-putting. Nevertheless, it is worth doing so as they can genuinely benefit you later when you approach the legal retirement age.
Over the years, you will likely have paid into one or more pension plans, be that personal or workplace. Many clients have little to no idea how much they’ll be worth when they retire!
Those pensions may no longer match your circumstances, this is something your advisor will be able to check for you. It is always worth looking into paying for advice, especially if you have pots totalling over £10,000.
Some employers who offer defined benefit schemes (final salary pension) may motivate members to transfer their benefits to a different provider. Once you have found a trustworthy pension advisor, you can build up that long relationship with them. They will then review your pensions regularly, ensuring you are on track to the income in retirement you were hoping to aim for.
The following could possibly be happening without your knowledge if you haven’t had your pension review in a while;
Before considering a pension transfer, seek advice from an experienced and qualified pension advisor in Leeds who will make a personalised recommendation.
If you are retired or approaching retirement, this is an excellent opportunity to seek professional advice.
Pension drawdown (aka income drawdown) allows you to cash in a percentage of your pension tax-free when you’re over a certain age. These rules do change, so it’s essential to seek advice to remain up to date.
Your pension provider may offer you an uncompetitive annuity when you come to draw your pension but again speaking to a qualified pension advisor will potentially open up more options for you and possibly increase your income in retirement, this can lead to a better and healthier retirement lifestyle.
If you would like some specialist advice in Leeds, please get in touch. we would love to point you in the right direction.
So, you’ve saved up your minimum of a 5% deposit and you want to start making offers on properties, however, you are still being let down and being asked for a larger deposit. This could be down to anything, e.g., sellers’ preference, other competition or your credit history.
From in-depth discussions about utilising the government schemes to simple points such as saving more money and waiting, here are some ways that can help you obtain a mortgage with a small deposit.
Taking advantage of government schemes can really help you through your mortgage journey. There are lots of schemes available that come under the ‘Own Your Home’ umbrella. These schemes were designed to allow opportunities for first time buyers and home movers to get themselves onto the property ladder.
The Help to Buy Equity Loan is a scheme that allows you to increase your total deposit size, hence increasing your chances of your offer being accepted.
The scheme works like so; you take out a Help to Buy mortgage with a minimum of a 5% deposit and your total deposit is topped up by the government to make a total of 25%. The percentage that they give you is the ‘Equity Loan’. This amount will eventually need paying back as it is a loan and not a gift. The loan will be interest-free for the first five years, then, if it hasn’t been paid off, the remainder of the loan will begin gaining interest starting at 1.75%.
Please note that this scheme is only available for new-build purchases and for first time buyers only. Therefore, if you’re a first time buyer in Leeds, this scheme could be perfect for you and help improve your chances of securing a property with just a 5% deposit!
The Shared Ownership scheme is very different. Shared Ownership lets you take a mortgage out on a percentage share of a property (usually between 25%-75%) and then pay the rest back via rent.
Since you are only taking out a mortgage on a smaller percentage of the property, your total deposit amount should be lower. Also, it’s worth knowing that you can increase the share of the property that you own further down the line if you want to. This can be a great stepping stone to get you onto the property ladder.
The scheme is a little complex in some cases. So, we’d recommend that you speak to a mortgage advisor in Leeds like us before diving headfirst into the scheme.
A Lifetime independent savings account should be introduced when you’re thinking of moving or buying your first home in Leeds.
This is because it’s a savings account where your money grows year on year interest-free. You can put as much money in it as you’d like each month, as long as it doesn’t exceed a total of more than £4,000 over the year. This is the maximum that you can save each year.
Each year, the government will top up what you’ve saved by 25%. So, if you save up to the maximum you will get an extra £1,000 for free. The savings from the account can be used for one of two things: buying your first home or saving for later in life.
If you set up a Lifetime ISA at the very start of saving for a deposit, you may only require a small deposit as the lifetime ISA can cover some of it for you!
If you’re currently living in a council house and planning to make an offer on the property, you may only be required to put down a small deposit, or in some cases not one at all.
This is because some lenders offer a right to buy discount through the government since you’ve already been living in the property.
This government-led scheme allows you to get a mortgage with just a 5% deposit. Therefore, if you go down this route, there shouldn’t be many reasons why you’ll be declined.
Of course, getting a mortgage is not guaranteed in any way shape or form. You’ll still be required to pass credit checks, affordability assessments etc.
There are other ways besides using government schemes to get a mortgage with a smaller deposit.
An agreement in principle (AIP) or also known as a decision in principle (DIP), can boost your chances of getting a mortgage with a smaller deposit.
An AIP shows that a lender is willing to lend to you given that you can provide sufficient documentation to prove that you’ll be able to afford a mortgage. If you’re making an offer on a property, you may be putting yourself in front of someone who’s also put in an offer who doesn’t have an AIP in place.
In this situation, it’s not really about the deposit. The indication to the seller will be that they’ll be able to continue through the process quicker by choosing you. Either way, they’re selling their home, choosing you will just speed up their process!
An obvious alternative would be to carry on saving up. Even pushing back your home buying journey for a further 6 months could boost up the total amount of your mortgage deposit.
Your small deposit could become much bigger if you knuckle down and save for just a little longer, in fact, it could get you over the edge that you need.
If there aren’t that many houses on the market that are appealing to you, there’s even more of a reason to wait for a little longer.
Remember that the 5%-mark changes depending on the property. If you want to move into a larger home, you may need to save up more anyway.
This is a very specialist situation and often, lenders will not allow it. As a mortgage broker in Leeds, we’ve seen it happen before, but it’s always on rare occasions.
Taking out a loan to cover your deposit can sometimes affect your ability to get accepted and this is because you are essentially borrowing 100% of the mortgage.
This results in having to account for multiple repayments. Lenders will question whether you’ll be able to afford it or not. They can’t risk lending to you if that loan is going to affect your ability to keep up to date with your mortgage payments.
Again, this is a specialist topic, and we would advise that you speak to a mortgage advisor in Leeds and get in touch with us first. Taking out any sort of loan during the months leading up to your mortgage application could potentially be a bad idea.