Can I Buy a Home in Leeds With a Small Deposit?
You’ve managed to save up for a 5% deposit and are ready to start making offers on properties. However, you are still being let down and being asked for a larger deposit. Not being enough to save for a lerger deposit 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.
Different Government Schemes in Leeds
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.
Shared Ownership
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.
Lifetime ISA
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!
Right to Buy
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.
95% mortgage guarantee scheme
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.
Alternative to using government schemes
There are other ways besides using government schemes to get a mortgage with a smaller deposit.
Have an agreement in principle at the ready
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!
Keep saving!
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.
Taking out a loan to cover your deposit
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.
Why Should I Use a Mortgage Broker in Leeds?
The Benefits Of Using a Mortgage Broker in Leeds
We firmly believe that there are many positives to taking on the services of an expert mortgage broker in Leeds, more than there would be to going direct. That’s just our opinion though, of course we’d say that!
In reality, there are positives to going elsewhere, so it definitely is worth exploring your mortgage options. Thankfully for us, the majority of people will opt to speak with a mortgage broker in Leeds. That being said, we will take a look at the pros and cons of both routes.
Mortgage Broker in Leeds vs Going Direct in Leeds
The first tick in the column of Team Mortgage Broker is that whilst most high street banks can be approached directly, not all mortgage lenders can be.
This means that to get the best deal across all lenders, you’ll benefit from speaking with a mortgage broker in Leeds, though a mortgage lender may still have some deals you cannot get going to a mortgage broker.
An experienced mortgage broker in Leeds will typically require a fee, whereas this likely won’t be the case when going direct. That being said, we can help to recommend other services that you’ll need for much cheaper than they might be with a lender.
Previous arguments could be made saying that “the bank manager knows my finances inside out,” but this was a nullified argument once credit scoring was introduced.
If you know what you are doing and what you are looking for, going direct can be a quick and easy process. On the other hand, if you do not know what you are doing, you could harm your chances of ever obtaining a mortgage, as you won’t match all lenders criteria.
A trusted mortgage broker in Leeds will be able to review the different lenders mortgage criteria and will be able to match you up with the most suitable mortgage deal. We always aim to get this recommendation right first time, which more often than not, we do.
Mortgage Advice Past vs Present
In days gone by, mortgage advisors from high street banks would approve you for a mortgage, whether they were adequately qualified or not. You would not benefit from correct mortgage advice or consumer protection.
As 2014 arrived, this type of practice was banned by the government. Only experienced mortgage advisors could go about providing mortgage advice to customers, making recommendations for products.
The downside to having to now having to only speak with specific individuals at a bank, meant you could be waiting months, just to speak with someone. That’s not good if you’re keen to get it done quickly!
Because of this, usage of a mortgage broker in Leeds rose, becoming a much more popular option. As a company ourselves, we offer various time slots throughout the week, allowing you to pick a time that is convenient to you, and not months in advance!
Quite often, if you’re lucky when booking your free initial mortgage appointment, you’ll be able to speak with someone the same day.
Modern Day Challenges
Nowadays, the hardest part of the mortgage process is matching up against the right mortgage lenders criteria. It’s also important to remember that deals with the lowest rates often have higher arrangement fees.
At the end of the day, a deal may be really good, but you’ll need to pass affordability checks and be eligible for that deal in the first place. With the help of a mortgage broker in Leeds, you’ll be able to find deals that are suitable for you.
Newer Regulations
Thanks in part to the regulations that followed after the credit crunch back in 2008, mortgage applications perhaps are not as straightforward as they used to be.
This isn’t necessarily a bad thing, however, as it makes for fairer lending and less chance of anyone falling into arrears, which both customers and mortgage lenders alike would much rather do without.
That being said, there are still a handful of situations that could cause some issues for applicants, of which a mortgage broker in Leeds may be able to help with.
- You have a poor credit history.
- You are receiving a self-employed income.
- There is a mixed deposit source, i.e. Gifted & Savings.
- Opting for Let to Buy. Renting your current home to buy another.
- Being a contractor or working under a zero-hours contract.
- You perhaps can’t quite meet affordability requirements.
Lending Criteria
Over our time as an expert mortgage broker in Leeds, we have seen mortgage lenders demonstrating their competitive prowess, trying to offer better interest rates than their fellow mortgage lenders.
Once again because of the changes to regulations, the other difference between these lenders, is their mortgage lending criteria and whether or not the customer can match up with it.
Examples of how these may differ, is that some mortgage lenders may have more products for self employed applicants than others, whereas others may not but will be more lenient to something like bad credit mortgages.
The Benefit of a Mortgage Broker in Leeds
Whatever your situation may be, it is unique to you. When you get in touch with a mortgage broker in Leeds and discuss your case, we may have encountered something similar before and will use that knowledge to help.
As a part of our service, we aim to go above and beyond for every customer who gets in touch with us. Customers rely on our help, so even if it seems relatively straightforward as far as cases go, we will still give it our absolute all.
During your process, one of our mortgage advisors in Leeds will be able to discuss what your budget is for making an offer on a property and recommend additional services such as trusted solicitors and the right property survey to undertake.
They can also run through any potential insurance options with you, helping prepare you and your family for the future, in the event of anything unfortunate occuring that could hinder your families financial state.
Still, need more convincing?
A further aspect of our service that is worth shouting about as a mortgage broker in Leeds, is how responsive we are to our customers. Oftentimes going direct can leave you unsure of what is going on and not always being able to make contact.
Our trusted mortgage advisors in Leeds will always keep you in the loop, with availability from early until late, every day of the week, responding as soon as they possibly can, no matter what you need them for.
Additionally, an overlooked factor as to why people may prefer the services of a mortgage broker in Leeds, is that nowadays people just seem to be so busy. It’s often easier to use a professional service, to take the stress off your shoulders.
This is especially beneficial for professional applicants who are dealing with customers of their own, perhaps not having the time to run through their process themselves.
Book Your Free Mortgage Appointment
If you would like to go direct, that is great! Generally though, whether a customer is a First-Time Buyer in Leeds, Self-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.
What is a Property Survey?
Property Survey Mortgage Advice in Leeds
So, you have had your offer accepted on a property but, is the house actually worth what you said you would pay for it?
If you are wanting to know what the actual value is and the property’s overall condition, a property survey can help with this.
This survey will mention any significant repairs or alterations needed, like repairing the roof.
Different types of property survey
There are a plethora of survey options available, however, the most common types include mortgage valuations, homebuyer’s report and a full structural survey. You might find the survey is free of charge, however, this depends on the lender. For more information on the different types of surveys, check out the content below.
The surveys differ depending on the outcomes on the report. For example, you may receive a report that is more detailed and thorough, whereas you might get one that only mentions certain aspects. The more in-depth a survey is, the more it will cost.
Navigating your way through the process can be daunting and you might want to choose the cheaper option. As much as this will save you money at the time, it may not be worth it in the future and become far more expensive.
In the event that you find something on your survey about your property that you weren’t notified about, by law, you can approach the seller and negotiate a fairer price.
Mortgage Valuation
The most basic property survey is Mortgage Valuations. You usually have this carried out on when you are working out how much a property is worth. This is helpful to the lender as they need to be sure that the property price matches the amount you are set to borrow from them.
For instance, if you put an offer above the property’s actual value, the seller will likely accept your offer but, your lender won’t. Unless you have the funds to make up the difference, the lender will pull out of the deal which is known as down valuation.
The one drawback with this survey is that it doesn’t highlight any apparent repairs and damages. On the other hand, it can let you know of any obvious structural defects that will require a further look at. If you are looking for a more in-depth property investigation, you will need to pay extra to upgrade your survey. This could be worth it in the long run.
Homebuyer’s Report
A Homebuyers Report looks at safety. It checks out how safe the property is and if it is suitable to live in. Surveyors will want to know of any mould problems, damp issues or something that does not pass the current building laws.
The report will be carried out by a property expert. They will examine the property from to bottom to see if it’s safe for you to move into.
Full Structural Survey
You might have made an offer on an older building. As a Mortgage Broker in Leeds, we would strongly advise that you undergo a Full Structural Survey.
With the whole property being surveyed, this does make this survey type the most expensive one. This property survey will provide a lot more detail compared to the three primary surveys with showing what condition the property is in and the changes that will need to made if the property price goes through.
A Full Structural Survey can take as long as a whole day, depending on the property size.
It can take a surveyor as long as a whole day to carry out a Full Structural Survey, however, this does depend on the property size.
Do I need to get a survey on a new build?
When it comes to new build properties, surveys work a bit differently. There is a property survey designed for new builds called a Snagging Survey. This will inform you of any minor and significant issues. The issues could range from a crack in the ceiling to a missing hinge on the door.
The new build might be built and ready for you to move into which, in this case, means you would want to look at getting a snagging survey carried out prior to moving in. By doing this, you are able to negotiate the price if there is anything wrong with the property.
Mortgage Advice in Leeds
If you are wondering which survey is the best one for you, please don’t hesitate to get in contact with our team. We have extensive experience helping many First Time Buyers in Leeds and people looking to Move Home in Leeds find the most appropriate property surveys.
You can receive the services of a surveyor to carry out a Homebuyers report or building survey through the Royal Institution of Chartered Surveyors.
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.
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.
The Importance of Updating Your Address in Leeds
Don’t Pretend to Live Somewhere Else
After you’ve moved home, there’s always the situation of having to update your address on any account to match your new address, so that any posts, packages, and any other bits and pieces go to the right place. From your doctor’s surgery to any accounts that need an address, there’ll be plenty to work through.
We understand that missing an address can easily happen. When applying for credit, having less varied addresses on your accounts will look better on your credit score.
Because of the impact, it has on your credit score, this means it will also be beneficial for you when it comes to applying for a mortgage.
We tend to find first time buyers in Leeds, and home movers in Leeds would have a much better understanding of how credit scores work and the importance of updating their address sooner rather than later.
Whereas with other applicants have moved out of their family home and are now renting their own place. They don’t see the harm in leaving their bank statements, electoral roll information, and credit cards at their previous address. But having everything under the same address will give you an advantage during your mortgage process.
Records of Your Address
Every time you’ve moved house, there will be a record of it somewhere on your credit report. Any bills related to your name, like car insurance, any orders from places like eBay, Amazon, or even online food shops, will show up with a record of the selected address you choose.
If it looks like you are living in two places at once or have failed to disclose information to the mortgage lender, it may go against you during your mortgage process. After all, your mortgage lender needs to know you are reliable for a mortgage.
Keeping Your Address Up-to-Date
When looking to buy a new home, and applying for a mortgage, the best thing you can do is make sure all addresses under any account are up to date and accurate.
This includes checking all those shopping accounts, electoral roll, credit cards, and anything you can think of that has your address, are all up to date, and have the current address for you and your current home.
When it comes to updating your address to your new location on the electoral roll, make sure that you definitely get the right dates for when you moved in and out, as getting this wrong can also give off the impression that you are living in two places at once which may mess up your chance to vote.
Keeping all addresses up to date is a much more open and honest way of applying for a mortgage with a lender. Not only will it work in your favour, but it will make your process go a little bit easier.
What else can be done to help me obtain a mortgage in Leeds?
As well as keeping your address up to date, there are other tips that could also be beneficial to first time buyers in Leeds, these tip can include.
Managing your bank accounts, avoid any unnecessary charges and limit any gambling transactions, (if that is something you do regularly). These can have a harmful effect on your mortgage process if you do the following too often.
Remember that your bank account will be a reflection of your ability to maintain payments, generate income and handle your finances appropriately. This is a large factor in determining whether or not you are able to get a mortgage.
Gifted Deposit
A gifted deposit is a great way to help first time buyers in Leeds get onto the property ladder. A gifted deposit is where a close family member or friend, gifts a portion or the full amount of a deposit to a homebuyer. As the name suggests, a gifted deposit is purely to be a gift and not a loan to be repaid.
Check My File Credit Report
We highly recommend that customers, whether new or existing, look to obtain an up to date credit report. Check My File can help pull together information from various sources, to get a more complete view of your financial state.
What do Lenders Look for When Assessing My Bank Statements?
Why does the lender need my bank statements?
A lender will need to see your bank statements to learn more about you and your spending habits. How you have acted lately, and the presentation of your bank statements can affect how much a lender will let you borrow, if anything at all.
The lender needs to know you’re responsible with your money and can be trusted to handle finances appropriately. After all, a mortgage is likely the most significant financial commitment you will ever make in your life.
Your bank statements are easily obtained either in the post from your bank, over the counter from your local bank, or, as often seen these days, as a printable version from your bank’s online platform.
What will lenders be looking for on my bank statement?
Again, they need to know you’re responsible for your finances. One of the things they’ll be looking at is if there are any overdrafts. Using this often is not necessarily a bad thing, but if you exceed your limit regularly, this will put your level of trust into question.
More factors to be careful with are potential returned Direct Debits, showing a lender you are not consistently reliable and not disclosing loans at the application stage. It won’t look good if the lender finds outgoings on your bank statements that you failed to mention. Once again, this is a process of trust.
Other things include missed payments for personal loans and items such as credit cards. If you can prove you handle your money well and meet monthly payment deadlines, a lender will be more likely to lend you an amount closer to what you would like to borrow.
Will gambling affect my chances of getting a mortgage?
Customers find themselves stuck when they have a history of gambling. The occasional bit of fun is harmless, but if you are frequently betting large amounts of money, whether you’re making it back or not, a lender will not look at your situation favourably at all.
To learn more, please see our article on “Do Gambling Transactions Look Bad on My Bank Statements?”
What can I do to show the lender I am reliable?
From our experience working with many First-Time Buyers in Leeds & Home Movers in Leeds, we have found that most mortgage lenders will want at least three months of bank statements from an applicant.
With that in mind, it’s time for you to forget the past and think about the future. You have at least three months to work on your finances. The first thing we’d suggest is that if you are a frequenter of the local bookmakers or online gambling scene, you take a break for some time. Not only does this benefit your financial state, but it can benefit your mental health too.
The following steps we would recommend taking are to trying to save money. For example, cooking instead of eating out, treating yourself to unnecessary purchases and cancelling unneeded subscriptions are great ways of freeing up additional cash to ensure you can pay bills on time.
Again, this boils down to simply being sensible and planning with plenty of time ahead of what you’re looking to do. The further away you find yourself from bouts of debt and financial uncertainty, the better your chances will be with a lender.
Can I Have Two Mortgages in Leeds?
Second Mortgage Advice in Leeds
There are many reasons why existing homeowners will want to look into taking out a second or even a third mortgage. Some examples of these include using an additional mortgage to expand your property portfolio or to help one of your family members get onto the property ladder themselves.
There may be more difficult to obtain a second mortgage, compared to when you took out your first one because you will now have two lots of mortgage payments to factor in. If you cannot afford the costs of both, you will likely not be accepted for a second mortgage.
Why would I want a second mortgage?
As a Mortgage Broker in Leeds, we’ve seen people apply for a second mortgage for lots of reasons:
- Raise additional funds.
- Purchase a new home to rent out (Buy to Let Mortgage Leeds).
- Rent out your existing home to purchase a new one (Let to Buy).
- Purchase a home for your children / family member.
- Named on an existing mortgage and want to purchase a new home?
Second Mortgage to Raise Money
If you are several years into your mortgage term, chances are you have built up a substantial portion of equity within your property. Instead of remortgaging, some may look to release some of that equity for a smaller mortgage.
This type of mortgage process is known as a further advance. A further advance gives a homeowner the option to borrow more from their current mortgage lender, as a means of funding potential home improvements or the deposit for another property purchase.
A remortgage to release equity will allow you to switch to a better product with a new mortgage lender, releasing a portion of your equity.
A further advance is remortgaging with the same mortgage lender, who will have their own interest rates that will stand separately from your current mortgage balance. Whilst it means you will be paying two mortgage balances to the same mortgage lender, it can often be cheaper than the fees involved in a remortgage.
To get a further advance, you’ll need to pass the affordability check by your mortgage lender, to make sure that you can take out this additional mortgage. The maximum amount you can borrow will depend on the equity in your property, though you likely won’t be taking it all out.
Our Mortgage Advisors in Leeds will take a look at your case and help you to decide whether a remortgage to release equity or a further advance is a more suitable mortgage option for you.
Rent Out a New Property (Buy to Let)
Whether you are new to the industry or an experienced landlord with several buy to let properties to your name, you’re going to need more than just one mortgage.
Buy to let landlords that have an extensive property portfolio will be used in the process of getting more than one mortgage. Whereas if you are just starting, you will benefit from speaking with a mortgage expert.
The process of having multiple mortgages on buy to let properties are similar to any other mortgage route. You will still need to meet the criteria for the mortgage, put down a substantial deposit (typically at least 25% of the purchase price), and show that you can afford the monthly payments, even if you have no tenants living on the property.
For expert mortgage advice in Leeds, if you are looking for a Buy to Let Mortgage in Leeds, feel free to book yourself in for a free mortgage appointment today and we will see how we can help obtain a second mortgage.
Rent Out Existing Home to Purchase a New One (Let to Buy)
Otherwise known as a let to buy mortgage, a variation of buy to let, this is an option that can allow homeowners to get a second mortgage on a newly purchased home, whilst renting out their current property, becoming landlords in the process.
With this type of process, you are planning on finding a tenant to move into your current property, so that you can move out. This is often a popular choice for landlords who would like to move into a bigger home, but keep a property in their portfolio.
You may be familiar with the term “accidental landlords”, people who perhaps never initially planned to become a landlord, with that plan changing as time has gone on.
Our expert Buy to Let Mortgage Advisors in Leeds also specialise in helping customers with let to buy mortgages, so book online today and we will see how we can help with your let to buy process.
Second Mortgage to Purchase a Home For Your Children / Family Members
If you know someone who is struggling to get on the property ladder, you may be able to take out a second mortgage in your name, allowing them to get their footing on the property ladder.
Another popular choice for some that don’t require a second mortgage is to gift a deposit. A gifted deposit can help you to get your family or friend onto the property ladder. Feel free to check out our helpful mortgage guides for more details.
Named on your existing mortgage and want to buy a new home?
In some circumstances, whilst you may have intended to take out a second mortgage, you may also find that you are listed on two mortgages.
As an open & honest Mortgage Broker in Leeds, the most common reason we see for people being listed on two mortgages is that they have become divorced or separated.
Unfortunately, it can be quite difficult to remove either your own or your ex-partner’s name from a mortgage, as not only do you both have to mutually agree on who gets removed, but you also have to prove the remaining party can afford to keep up payments by themselves.
If you happen to still be listed on a mortgage with an ex-partner, it is important to try and get your name removed as quick as you can. This ensures you are less likely to be affected by the financial links to your ex, as if they miss any payments, it could bring your credit score down.
Whilst this is the recommended route, if for some reason you are unable to get your name removed from a mortgage, there may still be mortgage options available to you. Some mortgage lenders will take your personal circumstances into account.
Get an Agreement in Principle for a Mortgage in Leeds
First-Time Buyers Mortgage Advice in Leeds
A Mortgage Agreement in Principle is essentially a document to prove you have a mortgage in place. It is something we obtain for all our clients, and almost all lenders offer them. It demonstrates that you are creditworthy because of the Agreement certificate to be issued, you must pass the Lender’s credit score.
A Mortgage Agreement in Principle is not a guarantee that you will definitely get a mortgage as your full application will require further background checks (such as evidence and income) and a satisfactory valuation of the property itself. However, we think it’s a good idea to get one done at the earliest opportunity for the following reasons:
1. Negotiating Power
2. Avoid Disappointment
3. Knowing your Limits
Negotiating Power with a Mortgage Agreement in Principle
When you are ready to offer a new home, most Estate Agents will undertake due diligence and ask you to produce evidence that you have funds available to complete the purchase. This will take the form of bank statements and an Agreement in Principle certificate that we can provide for you.
Once you have provided them with enough documentation the Estate Agent will naturally stop marketing the property and put a “Sold” or “Sale Agreed” boar outside the property to let other people know it’s off the market.
Suppose you already have a mortgage agreed upon before you make an offer. In that case, you are making yourself appear as an attractive proposition as this proves you are not making an offer on a “whim”, you’ve thought about how you’re going to fund the purchase and have done something about it. This might persuade a seller to accept an offer you put forward on their property underneath the asking price.
Avoid Disappointment with a Mortgage Agreement in Principle
When it comes to buying a house some clients have always “put the cart before the horse” to say they go full steam ahead and make an offer on a property without first checking that they are actually in a secure financial position to proceed. This can lead to terrible disappointment if the mortgage application fails because, by that time, they have got their heart set on their new family home.
Furthermore, your mortgage getting refused isn’t always down to the offer you put in. It can sometimes be something else. For example, there may be a niggling issue on your credit report, perhaps a disputed mobile phone bill that can easily get rectified. Maybe you thought you were on the voter’s roll and you’re not – once again that can be sorted out given a few weeks.
Maybe you can’t get a mortgage at all, and if that’s the case, it’s better that you know now rather than mess people about, though we may be able to help if you contact us and we’ll be able to tell you what you need to do to improve your credit-worthiness for the future.
Knowing your Limits with a Mortgage Agreement in Principle
By now you know you’ve got a good credit rating because you’ve never got turned down for credit, you’ve registered on the voter’s roll and you’ve always made your credit card payments on time.
You could approach ten different Lenders these days and get ten different maximum mortgage amounts; they all calculate affordability in their own unique ways. If you’re self-employed in Leeds: some Lender can take your net profit, others your salary and dividends. Some use your latest year, others an average over three years.
How can our Mortgage Advisors in Leeds help assist you?
Knowing your borrowing limits is essential as then you know for sure what your price range is.
Our team of Specialist Mortgage Advisors in Leeds may be able to advise you of the maximum mortgage available to you. Even more importantly together, we’ll work out how much you can afford to pay back each month.
Why Should I Get Mortgage Advice in Leeds?
If you find yourself wondering about the advantages of mortgage advice in Leeds or the reasons to consult a mortgage broker in Leeds, it’s worth exploring the numerous benefits you could receive.
Why do people comes to us for mortgage advice in Leeds?
Utilising the services of a mortgage broker in Leeds can provide you with several compelling advantages. We offer comprehensive advice across various areas and strive to secure a great mortgage deal that aligns with your specific mortgage scenario.
While our expertise covers a wide range of mortgage types, we specialize in assisting struggling first time buyers and individuals who have been declined by their bank. If you find yourself in a similar situation, it’s essential to reach out to us for specialist guidance from an experienced mortgage advisor in Leeds.
By working with a mortgage broker in Leeds, you benefit from our in-depth knowledge of the local market and our extensive network of lenders. We understand the unique challenges faced by home buyers and can provide tailored solutions to meet your specific needs.
When you’re ready to take the next step and approach your mortgage broker in Leeds, you can be confident that we have the expertise and resources to guide you through the process.
What are my mortgage options?
First Time Buyer Mortgages in Leeds
If you’re ready to embark on your mortgage journey and take the exciting step of getting onto the property ladder with a first time buyer mortgage in Leeds, our dedicated team of mortgage advisors in Leeds is here to support you every step of the way.
At Leedsmoneyman, we understand the importance of finding the perfect mortgage deal for first time buyers like yourself.
With access to a vast selection of first time buyer mortgage options, we will diligently search through thousands of deals to identify the one that best suits your needs and preferences.
Our 20 years of experience in the broker industry enable us to efficiently save your time and money, ensuring a seamless and stress-free process.
Our primary goal is to make your journey towards homeownership as smooth as possible. We are committed to providing you with expert guidance, personalised advice, and exceptional customer service throughout the entire mortgage process.
With our expertise and dedication, you can have confidence that you are in capable hands. Let our mortgage advisors in Leeds help you turn your homeownership dreams into a reality. Get in touch with us today and take the first step towards securing your ideal mortgage.
Moving Home Mortgages in Leeds
If you’re considering moving on and starting the process of moving home in Leeds, why not enlist the assistance of a dedicated mortgage advisor in Leeds?
At our mortgage broker in Leeds, we understand that there comes a time when people outgrow their current homes. Whether you’re seeking more living space, starting a family, or simply ready for a change, it’s natural to want to embark on a new chapter and find a new home.
By having a professional mortgage advisor in Leeds by your side, you can access the latest mortgage deals available in the market and alleviate the stress that often accompanies the process.
As an experienced mortgage broker in Leeds, our priority is to save your valuable time and money, even in situations where it may seem challenging to do so.
We have the expertise and resources to explore a wide range of mortgage options, ensuring that you have access to the most suitable deals for your specific needs. By entrusting us with your moving home journey, we aim to streamline the process and make it as efficient and cost-effective as possible.
Let us take the stress out of your moving home experience. Reach out to us today and discover how we can help you on the next chapter in your home owning journey.
Remortgage Advice in Leeds
If the end of your current mortgage deal is fast approaching, it’s a great opportunity to consider remortgaging and potentially secure a the best deal available to you. Here’s where our expert remortgage advisors in Leeds step in to help you every step of the way.
While it may seem convenient to switch over online, we strongly believe that reaching out to our team will offer you a more comprehensive and tailored approach. When you choose our services, we go the extra mile by comparing external deals from a wide range of lenders on your behalf.
With access to an extensive panel of lenders, we have the ability to search through thousands of options, ensuring that we find the most suitable and advantageous deals for you.
Our remortgage advisors in Leeds have the expertise and knowledge to guide you through the entire process. We take the time to understand your unique circumstances, financial goals, and preferences.
By doing so, we can provide personalised recommendations and advice that aligns with your specific needs. Our mission is to make the remortgaging journey as seamless and stress-free as possible for you.
We handle the complexities and intricacies, while keeping you well-informed and involved in the decision-making process. You can trust us to navigate the extensive market, perform thorough comparisons, and present you with viable options that suit your requirements.
Get in touch with our reliable remortgage advisors in Leeds. Let us use our expertise, access to multiple lenders, and commitment to exceptional customer service to help you secure the perfect remortgage deal. Contact us today to start your remortgage in Leeds.
Buy to Let Mortgage Advice in Leeds
Are you currently a landlord in Leeds or thinking about diving into the world of buy to let mortgages in Leeds? Well, it might be time for you to consider getting some mortgage advice in Leeds.
We’ve been working with landlords like you in the Leeds area for more than 20 years, and we’d love for you to be our next success story! So why not reach out to us for a free consultation on Buy to Let mortgages?
We understand that being a landlord comes with its own set of challenges, especially when it comes to navigating the mortgage market. That’s where our expertise and experience kick in. Our team knows the ins and outs of the local rental market, and we’re here to guide you through the process.
When you choose our mortgage advice in Leeds, you gain access to a wide range of services tailored to your needs. We’ll help you understand your financial situation, explore different mortgage options, and develop a customised plan that aligns with your investment goals.
What sets us apart is our commitment to exceptional customer service. We genuinely care about your success, and that’s why we offer a free buy to let mortgage consultation.
It’s your chance to have a chat with our experienced advisors, ask any questions you have, and get valuable insights based on your unique circumstances.
So, whether you’re a seasoned landlord looking to grow your portfolio or a first-time investor ready to take the leap into the buy to let market, we’re here to support you. Contact us today, and let’s schedule your free consultation. Together, we’ll help you achieve your property investment dreams in Leeds.
Self Employed Mortgages in Leeds
We understand that obtaining a mortgage can pose challenges for individuals who are self employed. That’s precisely why we are here to extend our support and guidance.
With our extensive expertise as a trusted mortgage broker in Leeds, we have successfully helped countless self employed clients in realising their mortgage aspirations.
Even when confronted with obstacles along the journey, our commitment remains unwavering as we strive to overcome any hurdles and secure a favourable mortgage solution that aligns perfectly with your unique personal and financial situation.
Rest assured, we are dedicated to ensuring that you receive the best possible deal available for a self employed mortgage in Leeds.
Specialist Mortgages in Leeds
Navigating a challenging mortgage situation on your own can be overwhelming and stressful. With a dedicated specialist mortgage advisor in Leeds at your side, you can rest assured that the burden will be lifted off your shoulders.
With our extensive experience of over 20 years in the industry, we are well-equipped to address your mortgage concerns swiftly and efficiently.
At Leedsmoneyman, we thrive on handling new and complex mortgage scenarios regularly. Embracing every opportunity as a chance to demonstrate our expertise, we eagerly embrace challenges with enthusiasm.
When dealing with mortgages in Leeds, our passion lies in helping clients like you, ensuring that we tailor solutions that match your unique circumstances.
With us by your side, you can expect dedicated attention, personalised assistance, and the expertise required to find the best possible resolution for your specific needs.
Don’t let your mortgage worries linger – contact us today, and let’s work together to secure your financial future with confidence and ease.
How Will Lockdown 2.0 Affect the Property Market?
Lockdown Mortgage Advice in Leeds
As of Thursday 5th, November to Wednesday 2nd December England will enter its second lockdown. British Prime Minister Boris Johnson has predicted that these additional restrictions will help to reduce the spread of the coronavirus.
However, this lockdown is a little more relaxed than the first, allowing more industries and educational settings to remain open. Our biggest worry was what would happen to the property market. However, from our viewpoint, we can say that everything seems promising, and the property market stays open.
There have been some minor modifications to parts of the home buying process, considering social distancing measures. The property market remains standing strong, here we compiled a list of what you are allowed to do over the lockdown:
- Viewing a property to buy or rent
- Visiting estate agents, letting agents, sales offices and show homes
- Moving home
- Getting ready for a home to move into
- Preparing a home for sale or rent
For more information, click here to read the Government’s guidance and regulations.
Already, First-Time Buyers and Home Movers in Leeds been sending enquires regarding Lockdown 2.0 and how will this affect them getting a mortgage, so we put together a list of frequently asked questions that got asked:
Can I take out a mortgage payment holiday during this lockdown?
Lots particularly asked it of homeowners during the first lockdown. In this lockdown, even though it’s much shorter, you can take a mortgage payment holiday if you need to.
We understand that many people need help meeting their mortgage payments, if this is your situation, then taking one out could be your best option.
To find out more helpful information about mortgage payment holidays and whether you should take one out, check out our mortgage payment holidays article.
If you took out a mortgage payment holiday during the first lockdown and are currently still on the scheme, you can extend your holiday so that it comes to a total of six months holiday.
However, if you have already had a six month payment holiday, you have already reached the six-month limit and therefore unlikely that you will be able to access this scheme once again.
Can I move home in lockdown?
Compared to the first lockdown, where the limitations imposed were a lot tighter, you are still able to move home. Household moving services, rental service, everything needed will be made available.
As previously mentioned, the home moving process will need to get completed under the social distancing guidelines. It’s going to be of most significance if you’re looking at other people’s home and taking house viewings regularly.
Can I go to my estate agents?
The Government are permitting you to visit your estate agent’s office. However, some estate agents have chosen to work from home and have closed their local branches, so check to make sure whether they will be open or not.
It would be easier to transact over the phone, and there is nothing wrong with this, you can still get the process started over the phone and even online.
We advise that you take your time if you are doing everything online, and make sure that communication is straightforward and easy to understand.
Can I continue with house viewings?
You can proceed with your house viewings, however, if it’s possible maybe you could try your estate agent’s virtual house viewing (if they are offering that).
Most home buyers are shifting towards today’s digital age and use this new method to house viewings; as a Mortgage Broker in Leeds, we also believe that the number of virtual viewings will rise over lockdown.
We know that this is a massive life decision, there is absolutely nothing wrong with opting out virtual option, but it is the safest option for the meantime.
Your estate agents will also check with the property owners that a socially distanced property viewing is serviceable and sanitised, if so, then you can arrange a date and time.
Depending upon the time of day and the homeowner’s situation, they may leave the property so that there as few people in the household as possible.
Can I put my property on the market?
The property market isn’t on a pause like the first lockdown; you will be able to continue the home selling process as usual.
You will need to think about everything that comes with selling a property, and this will involve choosing an estate agent and a property valuation, getting pictures of the property taken, and so on.
With the guidelines and restrictions in place, there may be some delay in the process. Estate agents are very busy at the moment with enquiries, and with all of the different measures in place.
Things that are usually easy to complete are taking a little longer.
Can I still use conveyancers?
Yes, conveyancing solicitors will stay open during the lockdown. They are going to be available to support your property sale.
Once Again, most solicitors are working from home, and we recommend that you be patient while due to the demand in the property market, things may come more slowly than usual.
Catching up to speed
The property market is slowly catching up to speed and thankfully can keep trading through this lockdown.
If you are wanting to start the mortgage/home buying process and would like help from a professional. It may be within your best interest to get Mortgage Advice in Leeds.
As an experienced Mortgage Broker in Leeds, we have a wealth of knowledge in helping customers obtain their mortgage goals.
We want the whole process to run as smoothly as you do; don’t hesitate to get in touch today. We can’t wait to hear from you!
