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Mortgage Advice in Leeds for Newly Qualified Teachers

Newly Qualified Teacher Mortgage Advice in Leeds

If you have reached your goal of completing all the required exams to become a Newly Qualified Teacher, you are probably looking at the next step. With all your new skills and qualification, you will be looking at finding yourself a teaching position.

You may find a teaching position that is based in an area that is too far to commute which could mean you looking at option available for you with Moving House in Leeds.

With this in mind, you may be looking at finding yourself a place to live. Due to keeping the balance between homeownership and settling into your new role, you may find this an exciting yet stressful time.

Throughout our time as a Mortgage Broker in Leeds, this situation has happened to numerous home buyers and homeowners who were wanting the process to be stress free and smooth while they focus on their new career.

Newly Qualified Teacher Mortgages

As a Newly Qualified Teacher, it can be a challenge to look for a mortgage lender who will be happy to offer a mortgage to an individual who is a newly qualified teacher.

This could be for a number of reasons, one being a lack of or no work history to show or because they only have a temporary contract.

Despite these being an issue, there are numerous options for Newly Qualified Teachers who are looking to get a mortgage. Here at Leedsmoneyman, our knowledgeable team of Mortgage Advisors have helped a lot of NQTs on their journey of obtaining a mortgage with a Mortgage Broker in Leeds by their side.

On your mortgage journey as a Newly Qualified Teacher, it can be common to find that there are a small number of lenders who have deals suited to public sector workers like teachers.

In order for everything to run as smoothly as it can, it’s important that you choose the best mortgage lender for your circumstance. This part of the process can be the most difficult out of the full mortgage journey.

This is where a mortgage advice team in Leeds can help by searching through thousands of mortgage deals for you in order to get the most suitable deal for your circumstances.

What mortgages for NQTs may be available?

Even though mortgages can be complex for New Qualified Teachers, there are still options out there available to you on the mortgage market.

Below are the types of mortgages that we find regularly come up when we are dealing with cases involving Newly Qualified Teachers.

  • Help-to-Buy Schemes – A government backed scheme that is designed to help first time buyers who are in the market looking to purchase a new build home.
  • Fixed-Rate Mortgages – A mortgage types that we find is used quite a lot and keeps the interest the same throughout the term therefore keeping the monthly payments the same.
  • Shared Ownership Mortgages – Also referred to as ‘part buy part rent’, that gives first time buyers a chance to buy a share of the property. The other part of the share is owned by a third party like a housing association. This type could make your monthly outgoings easier to manage.
  • Tracker Mortagage: A type of variable rate mortgage, which the interest rates follow the Bank of England’s base rate. This can cause a fluctation into your montly mortgage payments.

When it comes to NQT mortgages, there are more other factors lenders might consider. In some cases, depending on the lender, they might not ask you to evidence previous employment and may let you get up to a 95% LTV (loan to value).

Some mortgage lenders may treat a 12-month first contract the same as a permanent job role, instead of seeing it as a temporary contract.

A small majority of mortgage lenders around the country could get you on your mortgage prior to beginning your job. This does mean you have to show them a signed contract and a confirmation of your start date.

This can be helpful for you, especially if you are preparing to start making your first mortgage payments at the same time as your first month’s wages from your new job is due, around the time your mortgage has completed.

How a Mortgage Advisor in Leeds may Help

At Leedsmoneyman, we have a team of knowledgeable mortgage advice experts in Leeds all with a vast amount of knowledge and experience in helping customers in the world of mortgages and the property markets, helping numerous first time home buyers with their mortgage needs.

Having a dedicated Mortgage Broker in Leeds by your side in the mortgage process can have many benefits. Our goal is to take the stress away and provide a tailored service through searching thousands of mortgage deals to find the one that is fitting for your situation. We also can recommend possible conveyancing solicitors for you to use and more.

If you are wondering what options are out there for you as a first time home buyer, book online for a free mortgage appointment with one of our expert mortgage advisors in Leeds. In this appointment, your dedicated advisor will ask you about your situation and help you with the next part of your journey.

Fixed-Rate Mortgages in Leeds

Fixed-Rate Mortgage Advice in Leeds

What is a fixed-rate mortgage?

As one of the most popular mortgage types, it’s important that you know what a fixed mortgage is and how they work. When it comes to your remortgage, you may want to explore your options, therefore, finding out about the different types of mortgages could help you make your decision.

Your interest rate on a fixed-rate mortgage will remain the same throughout your fixed term. Whether this is a longer term or a shorter term, either way, your interest rate will not change.

Typically, the longer that you fix in your mortgage for the higher the interest rate will be. Therefore, if you are looking for a lower rate mortgage, you may need to look at taking one out over a shorter term. The only real downside to short term mortgages is that your renewal will be due more often. Short term fixed deals usually last 2-5 years.

During your Remortgage in Leeds, it may be worth looking at fixed-rate products so that you know exactly what you’ll be paying over your fixed-term.

What is a Fixed-Rate Mortgage | MoneymanTV

Medium & Long Term Fixed Mortgages

If you are happy with tracking a slightly higher interest rate over a longer period of time so that you don’t have to remortgage and pay the extra fees that are involved with taking out a new product, a medium to a long-term fixed mortgage may be more suited to your needs. 5-7-year fixed-rate mortgage products tend to be the most popular amongst people in this kind of situation.

Despite the high interest rates, if you still want to take out a product over a long term, you could look into the possibility of taking out a 10-year fixed-term rate. Although, 10-year terms are a little harder to find and you may need to approach a specialist lender to take out one. They also come with high costs as you’re locking in for a decade, a lender needs to be able to trust your affordability throughout the term.

In comparison, both medium and long term fixed-rate products have their advantages and disadvantages, however, it mainly comes down to your personal situation and what type of product you are looking for.

Booking & Arrangement Fees

Upon remortgage, you will face booking and arrangement fees. You will need to consider these costs before taking out another product. Sometimes, you will be asked to pay these fees upfront just in case your purchase falls through. Your Mortgage Advisor in Leeds should go through these costs with you before you take out a new product with them.

If you are taking out a long-term mortgage product, you may be able to avoid these fees.

Early Repayment Charges

If your financial situation changes unpredictably and you pay back your mortgage earlier than you originally planned, you may face an ERC. An ERC or an Early Repayment Charge is a fee that you’ll receive for paying off your mortgage term too early.

An ERC is calculated through a percentage of the amount that is still left on your mortgage. For example, if you have £200,000 left on your mortgage and you paid off your term early, with a 2% fine, you may face an ERC of £4,000.

Some people will deliberately pay off their mortgage term and face an ERC. This could be because they’ve acquired a large sum of money for some reason and want to pay off a part of their mortgage, they’ve seen a new mortgage deal after a long term and they want to access it early or simply that they are at the end of their whole term and just want to pay it off.

Fixed-Rate Mortgages

Make sure that a fixed-rate mortgage is right for you before taking one out. It could turn out that another product is more suited for you.

There are many different types of mortgages available on the market, therefore, it’s wise to shop around first! We would always recommend speaking with a Mortgage Advisor in Leeds to get some helpful information and tips.

You can easily find out more information and get Remortgage Advice in Leeds by contacting our team. We offer a free Remortgage Review for every customer – all you have to do is book your appointment online.

Product Transfer & Remortgage Advice in Leeds

Remortgage Advice in Leeds

As you are approaching the end of your fixed mortgage term, you will need to start thinking about taking out a new product. Ideally, you need to start searching around 6 months early.

When you take out a new mortgage product, it is either called a product transfer or a remortgage. A product transfer is when you take out a new mortgage product with your existing lender, whereas, a remortgage is when you take out a new mortgage product with a different mortgage lender.

You are under no obligation to stay with the same lender; in fact, you may be able to access better products if you search elsewhere.

Are you rewarded for lender loyalty?

Lenders rarely reward you for being loyal. This is why we always recommend looking around for more deals and seeing what is on offer. You could always search through your current lender for another product, however, it’s just as easy to switch products through a different lender.

For convenience, you could argue that staying with your current lender is the right idea. On the other hand, you could say that if there is a competitive deal out there that involves a little more paperwork, it may be worth it. As your Mortgage Broker in Leeds, we will search around for products for you, and arrange all of the paperwork! This will take all of the stress away from the process.

We have many different lenders on our panel, each holding different lending criteria. Some of which, have competitive deals available that may be the perfect match for you and your individual situation.

Tempted by an online switch?

Nowadays, it’s way too easy to perform a mortgage switch online; sometimes this is not a good thing!

You should take your time if you’re tempted by an online switch. Taking out the wrong mortgage product could make you lose a lot of money further down the line, so you need to make sure that you do this right. Your current lender may not offer any, but if you’re looking for Remortgage Advice in Leeds, feel free to contact our mortgage team.

As a recommendation, before switching online through your lender, take a moment to look for deals elsewhere and get some advice if you need to. More often than not, people are unsure of how the process works and what product they are taking out; when this is your situation, it’s important to get an expert’s opinion.

When you switch online, you are also missing out on the consumer protection you would’ve got had you spoken to a Mortgage Advisor in Leeds. If you take out a wrong product, you have no say as you took it out yourself with no advice.

Early repayment charges

Once you lock into a new deal, you’re stuck on that rate until your fixed term finishes unless your want to pay an ERC (early repayment charge). An ERC is calculated by the mortgage that you took out and how long is left on your term, therefore, if you take out the wrong deal and want to switch right away, this could be costly.

Unfortunately, lenders love it when this happens as they receive a big pa yout. This is why they rarely offer advice during a product transfer or remortgage. We have encountered multiple different scenarios in the past where this has happened.

One notable case of ours was when a customer who was pregnant, chose not to take mortgage advice and then was declined for a small further advance to fund the planned home improvements she needed to create a room for her child.

Because of the choice that the customer made, she had to pay a very large early repayment charge, in order to allow her to swap to a new lender that would be willing to grant her the necessary funds.

It’s heartbreaking when we see this happen as we wish we could’ve helped in some way. This is why it can benefit you to speak with an expert and get Remortgage Advice in Leeds.

Open & Honest Mortgage Advice in Leeds

Remortgaging and transferring products is a process that almost every property owner will go through. During your first remortgage, it may be best to get Remortgage Advice in Leeds so that you can get through the process stress-free and right the first time.

You can book your free remortgage review with Mortgage Advisor in Leeds online. This will definitely help you get an idea of what sort of deals you can access and what will be your beneficial option.

It costs nothing to get a second opinion, that’s why our free remortgage review is so brilliant! The remortgage market is a very competitive one and searching the market for a new deal can often help you to save you a lot of money.

Buying a Property With a Partner or Friend(s) in Leeds?

Mortgage Advice in Leeds

Purchasing with friends/partner

When you’re a First Time Buyer in Leeds and you’re struggling to get onto the property ladder by yourself, the best and most practical solution can be to move in with a partner or friend. There are many benefits to doing this, for example, you would be able to make up your deposit faster, your application will look stronger with two sets of incomes and your mortgage payments will be equally split.

There are also downsides to taking a mortgage with friends or a partner, as you’re now financially linked with the person(s) that you take one out with. If one of your friends or your partner has adverse credit, a CCJ/default in their name or something that reflects badly on their finances, it could also affect you.

How many people can jointly own a property?

Up to four people are able to co-own a property. Joint owners have the legal right to stay in their home unless a court rules otherwise.

All homeowners will have to give consent before a party can sell or take out extra borrowing against the property.

Joint tenancy or tenancy in common – what’s the difference?

Joint tenancies are typically taken out by civil partnerships or married couples. If one party passes away, the property rights and ownership is transferred to the other owner. Joint tenants are seen as one owner, which means that you cannot sell the property or remortgage without an agreement from other parties.

Tenants in common are popular amongst relatives or friends who are buying together. Each party will have ownership over the property, however, they may not have equal shares. You can freely sell or give away a share of the property if you want, without an agreement from other parties. Some lenders may even let you take out a mortgage on your share, although, finding one that allows this may be difficult.

Joint mortgages & removing names

What happens if you have a joint mortgage, but the other parties stop paying their share of mortgage payments?

Unfortunately, since you are jointly reliable for the mortgage and meeting the payments, if one party stops paying their share or misses a payment, the other parties will have to make up for the shortfall.

When you take out a mortgage, you will be expected to keep up to date with your payments. If a lender doesn’t think that you’re reliable, they won’t lend to you.

It can be more beneficial to speak to an expert and Specialist Mortgage Advice in Leeds for help on this subject.

How do I remove my ex-partner’s or my name from a mortgage?

Removing your own or an ex-partner’s name from your mortgage can be difficult, it’s not as easy and approaching your mortgage lender and taking off the name. Removing financial links as a whole can be tricky, and it’s usually because one of the parties cannot afford to live on just one income or there are children involved.

When it comes to mortgages, even if there is an agreement that one of the parties will not contribute towards the mortgage payments, if their name is still listed on the mortgage, they’re still responsible for them. Furthermore, in the event of mortgage arrears, both parties are responsible.

If your ex-partner is the party keeping the mortgage, the lender has to be adamant that the remaining applicant can afford the payments, and vice versa, if you are the one with the mortgage, they need to know that you can afford the payments by yourself.

More often than not, in a situation like this, there is a family member or another partner ready to step in and help with the payments. As a Mortgage Broker in Leeds, we are here to help you through this difficult time and help you sort the mortgage side of the process.

Mortgage Broker in Leeds

Planning to Get a Mortgage in Leeds?

Getting Ahead of the Mortgage Game

Taking out a mortgage will be one of the most significant financial commitments that you will ever make. You will want to get your dream property for the best deal you can get. 

The good news is that you have the chance to plan ahead of other buyers to help improve your chances of getting your mortgage application accepted. – One of these examples will be having an Agreement in Principle before you start viewing properties.  

You may come across a point where it is unlikely to plan for a mortgage, for example, if you and your partner decide to split up. It’s unfortunate when this happens. However, if you are in this situation, you may need to move from a joint to a sole name mortgage.

We recommend that all new customers start planning their mortgage for up to six months before you begin Moving Home in Leeds.

Why Planning for a Mortgage is Important

Preparing your application for all possible situations will prove beneficial further down the line. If you encounter a problem, in theory, you should be able to figure out what to do to resolve it.

Utilising over 20 years of experience within the sector have allowed us to come across various mortgage problems. When it comes to the end of the mortgage process, some hurdles could crop up, and our Mortgage Advisors in Leeds may be able to rectify them if you prepare right.

Here are some general hurdles our customers frequently come across.

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

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

Deposit

Saving up for a deposit can be tricky, especially if you’re stuck renting. It can take some First Time Buyer in Leeds several years worth of savings to save for a deposit.

Location varied; some might find it challenging to save up for a ‘5% deposit’ as you don’t know the exact amount you need until you find a property you like. Each 5% total will vary from property to property.

Customers who struggle to meet that initial deposit total will often get help from their parents through a gifted deposit. A gifted deposit is an extra cash boost given to a homebuyer to help buy a property and can equate to some, or all, of their deposit. 

Gifted deposits were given with the understanding that the money doesn’t need repaying.

If eligible, you could also apply for one of the Help to Buy schemes if you need a deposit boost. These Government schemes got explicitly made for applicants that needed help to buy a newly built home. If you’re a First Time Buyer in Leeds looking for help getting onto the property ladder, one of these schemes could be suitable for you.

Credit Score

Your credit score is fundamental when it comes to applying for a mortgage. Having a poor credit score can lower your chances of getting accepted for a mortgage. Of course, it depends on what is the cause for you having a low credit score. 

If it is because of a CCJ or bankruptcy, your chances of being accepted can be lowered further, depending on how long ago these issues occurred.

If you want to look at your credit score, we recommend using Check my File. Check my File allows you to get a copy of your credit report, from there on you can establish whether you have any credit issues that might be flagged up or prevent you from borrowing from a lender. Once you have this, feel free to send it to us, and we will take a look at it free of charge.

Bank Accounts

During the approach to your mortgage application, you need to think about how you conduct your finances. Lenders will be carefully analysing your bank statements and will see everything that’s going in and out of there. An example to look out for would be gambling transactions.

Lenders aren’t keen if they see frequent and erratic gambling transactions on your bank statements. They will see gambling with large sums of money unreliable and possibly decline your application.

If you’ve been lucky enough to receive a gifted deposit, we advise keeping that sum of money in the gifter’s account. 

Because your lender will see a large bank transfer into your account and ask questions, sometimes it’s better to leave the gifted deposit inside your family member’s or friend’s account.

Self Employed

Self employed applicants often have a hard time when it comes to getting a mortgage. Usually, this is because they are required to evidence more than a usual mortgage applicant.

You will have to submit at least one year of accounts’ and three months of bank statements to prove your income and affordability.

Depending on the lender, you may get asked to provide even more evidence if they are unsure of your affordability.

Other Mortgage Hurdles

In situations you can’t prepare for, know that a Mortgage Broker in Leeds like us is here to help. Each person could counter all different kinds of mortgage hurdles and it’s our job to guide you through the entire pricess.

People who have encountered all different types of specialists and complex situations often come to us for expert Mortgage Advice in Leeds. We offer a helping hand and back you up during the entire process you don’t have to go through this process alone!

A Guide to Remortgages in Leeds: Top Reasons to Consider

Remortgage Broker in Leeds

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

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

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

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

What is a Remortgage?

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

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

Remortgage For Better Interest Rates

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

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

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

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

Remortgage For Home Improvements

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

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

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

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

Remortgage for Changes to Your Term

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

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

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

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

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

Equity Release

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

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

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

Remortgage to Consolidate Debt

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

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

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

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

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

Experienced Mortgage Advisors in Leeds – Get in Touch

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

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

Getting Prepared For a Mortgage Application in Leeds

First-Time Buyer Mortgage Advice in Leeds

After saving for months/years, you are now at a point where you can put all your hard-earned savings down for a deposit on a flat/house. Now it’s time to get mortgage ready!

You might be a First Time Buyer in Leeds stepping into the mortgage world for the first time or you have experience in the home buying journey as a homeowner and are looking at moving home in Leeds. Either way, our tailored service would prove beneficial. Below is some helpful information that will help you have a grasp on what the mortgage process entails and provide you with information on what you need in order to be mortgage ready for your application.

Get mortgage ready in Leeds

Know where you stand

Firstly, getting Mortgage Advice in Leeds should be at the top of the list. Having an experienced Mortgage Advisor in Leeds by your side guiding you through the process, advising the best route for you in terms of your personal and financial circumstances can be very beneficial.

If you are looking at the amount you may be able to borrow for a mortgage and the amount it will cost, seeking Mortgage Advice in Leeds can help indicate this. Before your Mortgage Advisor in Leeds can begin the process of looking into competitive mortgage deals for you, affordability and a borrowing capacity assessment will need to be carried.

A Mortgage Broker in Leeds, like ourselves, can provide a helping hand throughout the process as well as support you in getting the basics prepared for your mortgage application. In order for your Mortgage Advisor in Leeds to understand your financial position from the very beginning, they will request an up-to-date credit report.

Getting organised for your mortgage

At the start of your mortgage journey, you will need to obtain an agreement in principle. This should be your first priority because without it you won’t be able to make an offer on a property.

Here at Leedsmoneyman, we work hard to provide you with a fully credit-checked agreement in principle sorted for you in 24 hours to take some weight off your shoulders. We would need you to prove who are you are by providing the following:

  • Name,
  • Where you live,
  • How much you earn.

It’s good to be organised as there is a lot of paperwork you will need to collate. Therefore, it’s best to create a file for yourself and start collecting this in advance.

Proof of ID

In order to start the mortgage process, you will need to provide some form of identification. This needs to be a photographic ID like a Driver’s License or a Passport.

Proof of address

As well as the aspects mentioned above, you’ll need concrete evidence that you live at the address that you say you do. Evidence you’ll need could be a utility bill or original bank statement dated within the last three months.

Last three month’s bank statements

One of the most determining factors that can massively contribute towards whether you’ll qualify for a mortgage or not is your spending habits. Your bank statements are something your lenders like to take a look at because they can get an idea of what goes into your account and what goes out. This provides an insight into if you’ll be able to manage your monthly mortgage payments as well as your other expenditures.

One of the main things that lenders look for on your bank statements is gambling transactions. This factor can cause risk further down the line which is why lenders will look at if you do frequently gamble and will be cautious towards this. If you are constantly gambling, lenders won’t risk the chance. Another thing lenders will see as a drawback is if you are regularly going over your overdraft limit or if your direct debits bounce consistently.

Proof of the deposit for your mortgage

For anti-money laundering purposes, you will need evidence that you have the funds in place for the deposit. It’s best that you try not to move the monies around your various accounts too much because it will make evidencing the audit trail more challenging. Your savings building up is something lenders like to see, therefore, you’ll need to account for any extensive credits in your accounts.

There has been a recent increase in the popularity of gifted deposits, we have seen that they contribute towards many people’s 5%. Usually, gifted deposits are generally from a family member or friend of the applicant. In order for these funds to be evidenced properly, the “donor” of the funds will need to sign a letter confirming and evidencing that this is a gift and not a loan.

Proof of income

Proving your income is one of the most important things when it comes to affordability. Employed applicants usually will need to evidence this through the last three months’ payslips and most recent P60. Regular overtime, commission, shift allowance and bonuses is another thing lenders can factor in. Whereas self employed will need help from their accountant by requesting your tax year overview.

A list of your expected outgoings

Looking into an estimated amount of your anticipated outgoings after you move house can always be helpful. Furthermore, you can work out an estimation of how much the council tax and utility bills will be. On top of this, you can work out regular expenditures like food and drink. Taking all these into account will show how much disposable income you have available to your mortgage.

When applying for a mortgage, it can be a challenge if you are doing everything on your own as things can become complicated. With a Mortgage Advisor in Leeds being there every step of the way can be very helpful. Impressing your lender by showing them you have done all you can within your power to get prepared for your mortgage application can be challenging. We can assist you with this by providing the best impress of you to your lender and we would have everything prepared for you within 24 hours of free mortgage consultation depending on your circumstance.

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.

Leeds Mortgage Advice on Porting a Mortgage

Removing a Name From a Mortgage in Leeds

Removing a name from a mortgage advice in Leeds

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:

Why would you want to remove a name from a mortgage?

Divorce & separation

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.

Transferring to a family member or friend

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.

A party is not paying their share

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.

Need help removing a name?

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.

Interest-Only Mortgage Ending in Leeds?

Interest-Only Mortgage Advice in Leeds

What are my mortgage options in Leeds?

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.

What is an Interest-Only 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.

Why have people still got Interest-Only Mortgages?

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.

What can I do about my Interest-Only Mortgage?

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:

  • See if your lender will switch you to a Repayment Mortgage if this is affordable.
  • Consider selling up and downsizing if this is achievable.
  • Use your savings/assistance from family members. Sometimes parents will “fast-forward” a future inheritance if they can do so.
  • Speak to a Mortgage Advisor in Leeds and see if you can Remortgage in Leeds to a new Lender.
  • Consider Equity Release/Lifetime Mortgage option through a specialist advice firm.

What are my options?

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.

Mortgage Broker Leeds

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

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