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

Credit Score Mortgage Advice in Leeds

Across the nation we now find that people are paying a lot more attention to their credit rating they might have done in previous years. We find that a large majority of the people who call us for mortgage advice in Leeds perhaps have already researched online to find a copy of their credit report.

There are a wide variety of different credit reference agencies to choose from, but the two most common companies you may be aware of are Experian or Equifax.

We would highly recommend that new customers who get in touch look to use Check My File. In doing so, you’ll find a report that offers customers a collation of information from various sources (the aforementioned two included) in an easy to understandable colour-coded report.

Check My File offers a 30-day free trial. After this 30 days, you will be charged £14.99 a month, although you can cancel this at any time prior to the end of those 30 days.

When speaking with our customers, our mortgage advisors are often asked if they will be doing a credit search on them, as they have done their research and know that too many searches can negatively affect their credit score.

The lender will always run their own credit checks but our mortgage advisors will always ask the customer for permission before doing so. You’ll find that credit searches will come in two forms; hard searches and soft searches. Here we will discuss the difference between the two and how they can help.

What is a hard credit search for a mortgage?

A hard credit search is a way to take an in-depth look at your credit report. No matter who they are, any financial institution carrying out one of these will have to seek your permission to do undertake one of these.

The main advantage of a “hard” search would be how in-depth it actually goes. The chances are, if you can pass a hard credit check, it is likely that you will go on to be successful with a mortgage (though this is of course never a guarantee).

From this point on, all that can go wrong with your mortgage process is if for some reason you cannot provide the required documentation to backup the information that you have presented to the lender, or it turns out you have provided incorrect information altogether.

Looking at it from the other hand, another benefit is that having a hard search taken out on you will leave a ‘footprint’ on your credit file, which would mean that anyone taking a look at your report can see that it has been carried out.

This is not a bad thing at all, but let’s say that for some had multiple searches included in your credit file in a short period of time. This could come across to the mortgage lender that you are applying for a lots of credit at the same time and this may put them off.

The footprint will not leave a note as to whether or not your application was successful, so if you have several searches in a short amount of time, the lenders’ systems may assume wrongly that you are being declined regularly. Think about it; why would you apply for credit with a second lender, unless you’d been declined by the first?

Having the occasional hard footprint on your record isn’t too big of an issue, so you really don’t need to worry about it too much. Just be careful not to have too many of these taken out

What is a soft credit search?

The alternative to the hard search, would be a soft credit search. This would be a much straightforward search which takes a look at your financial situation and would be the type of search that you might come across when using a price comparison website, so that you can find out what options may be available to you.

Alternatively it can be used to verify your identity. You’ll find that some mortgage lenders will carry out soft searches of their own. We find that nowadays, even more lenders are changing to this type of credit search.

Whilst it will give whoever is carrying out a soft search less information than they would’ve gotten from a hard search, if you managed to obtain an Agreement in Principle from a lender, it is still a very good indicator that your full application will be accepted for a mortgage.

One of the things that appeals to customers regarding soft searches is that you have the ability to see soft searches that others have carried out on you (people are often surprised by how many have been carried out on them), though these searches will not be visible to other financial institutions such as a bank or lender.

This means that you have the ability to apply for an Agreement in Principle ahead of a mortgage in Leeds, without causing any damage to your credit score, regardless of whether it is successful or not.

If you are thinking of making any offers on a property as a first-time buyer in Leeds, our trusted and dedicated mortgage advisors in Leeds would very much suggest that you obtain a mortgage Agreement in Principle in place prior to getting in touch with an estate agent.

You should ideally look to give yourself the best possible chance of securing your dream property at the lowest possible price. With this in mind, if you present yourselves as having your finances in order, you will definitely give yourself the upper hand in your mortgage situation.

Being in possession of an Agreement in Principle could also help prevent an estate agent from trying to cross-sell any of their own mortgage products to you.

Can I buy a home in Leeds with a small deposit?

So, you’ve saved up your minimum of a 5% deposit and you want to start making offers on properties, however, you are still being let down and being asked for a larger deposit. This could be down to anything, e.g., sellers’ preference, other competition or your credit history.

From in-depth discussions about utilising the government schemes to simple points such as saving more money and waiting, here are some ways that can help you obtain a mortgage with a small deposit.

Utilising government schemes

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.

Help to Buy Equity Loan

The Help to Buy Equity Loan is a scheme that allows you to increase your total deposit size, hence increasing your chances of your offer being accepted.

The scheme works like so; you take out a Help to Buy mortgage with a minimum of a 5% deposit and your total deposit is topped up by the government to make a total of 25%. The percentage that they give you is the ‘Equity Loan’. This amount will eventually need paying back as it is a loan and not a gift. The loan will be interest-free for the first five years, then, if it hasn’t been paid off, the remainder of the loan will begin gaining interest starting at 1.75%.

Please note that this scheme is only available for new-build purchases and for first time buyers only. Therefore, if you’re a first time buyer in Leeds, this scheme could be perfect for you and help improve your chances of securing a property with just a 5% deposit!

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.

What do Lenders Look for When Assessing My Bank Statements?

Why does the lender need my bank statements? 

What Do Lenders Look For On My Bank Statements? | MoneymanTV

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. 

What is a Property Survey?

Property Survey Mortgage Advice in Leeds

The good news, you have had your offer accepted on a property. However, is the house actually worth what you said you would pay for it?

A property survey will carry out to find out the actual value and the property’s overall condition. Then, the surveyor inspects the property and highlights any concerns, such as structural damages like uneven walls or subsidence. 

They will highlight any significant repairs or alterations needed, such as repairing the roof.

Different types of property survey

There are numerous survey options available. The three main types of property surveys are mortgage valuations, homebuyer’s report and a full structural survey. Depending on the Lender, the survey might be free of charge. Read on for a more vital explanation of the different types of survey available.

The outcome of your survey report will vary depending on the survey that you choose. Some provide you with in-depth detail, whereas others will only brush upon certain aspects. You’ll find that the more in-depth a survey is, the more costly it will be.

Nevertheless, navigating the property market can be complex, and it can be tempting to choose the cheapest solution. But attempting to save money on a survey may lead to far more expensive in the long term. 

If you discover something on your survey about your property that you weren’t told about, by law, you are allowed to approach the seller and negotiate a fairer price.

Mortgage Valuation

Mortgage Valuations are the simplest type of property survey. These are carried out to work out how much a property is worth. Your lender will need to ensure that the property price matches how much you are set to borrow from them. 

For example, if you put an offer above the property’s actual value, the seller will likely accept your offer. However, your lender won’t. Unless you have the funds to make up the difference, the lender will pull out of the deal. This is called a down valuation.

Unfortunately, this type of survey doesn’t point out apparent repairs and damages. However, it can inform you of obvious structural defects that will require a further look at. For additional property investigation, you will be required to pay more to upgrade your survey. In the long run, this may be worth it.

Homebuyer’s Report

A Homebuyers Report focuses on safety. How safe is the property? Is it suitable for living? These things need to be checked as there could be a mould problem, damp issues or something that does not pass the current building laws.

A property expert will carry out the report. They will examine the property from top to bottom, ensuring that it’s safe for you to move into.

Full Structural Survey

As a Mortgage Broker in Leeds, if you’ve made an offer on an older building, we would strongly advise that you take up a Full Structural Survey.

This is the most expensive property survey because the whole property is surveyed. It will also provide the most significant insight to the property out of the three primary surveys, highlighting what condition the property is in and what changes need to be made if the property purchase goes through.

A Full Structural Survey can take as long as a whole day, depending on the property size.

Do I need to get a survey on a new build?

New build properties work slightly differently. There is a property survey specialised for them called a Snagging Survey. This survey will point out both minor and significant issues, and it could be anywhere from a crack in the ceiling to a missing hinge on the door.

If the new build has already been built and it’s ready for you to move into, ideally, you want to get a snagging survey carried out on it before moving in. This way, you have the power to negotiate to price if there is anything wrong with the property.

Mortgage Advice in Leeds

If you need guidance on which survey to choose, don’t hesitate and get in touch to speak with one of our reliable mortgage team. We’ve helped hundreds of First Time Buyers and Home Movers in Leeds select the most suitable property surveys for previous customers – you could be next!

You can receive the services of a surveyor to carry out a Homebuyers report or building survey through the Royal Institution of Chartered Surveyors.

Can I Have Two Mortgages in Leeds?

Can I have two mortgages at once?

Can I Have a Second Mortgage? | MoneymanTV

Most people don’t even realise that they can get two or more mortgages. The idea of having one mortgage stresses people out, never mind two! 

In any case, the good news is buyers who have enough income can carry two mortgage payments at once if they still meet the lender’s criteria. Then you might qualify for two mortgages at once if your credit score and job status are strong.

There are lots of different costs that come with a second mortgage, and there are many various reasons why someone might want more than one:

Why would you take out a second mortgage?

🏠 Are you looking to rent out your existing home and purchase a new one?
🏠 Are you looking to help your children out with a second mortgage?
🏠 Do you want a second mortgage to raise money for your existing home?
🏠 Do you require a second mortgage to purchase a Buy to Let property?
🏠 Maybe your name on an existing mortgage, and you are looking to buy a new property?

We have in-depth knowledge of Buy to Let mortgage criteria and worked with many lenders, including some specialist ones, each with various lending criteria.

Second mortgage to raise funds

Some people who choose built-up equity in their home might consider looking for a second mortgage, and this is because they want to release some of their equity to fund another purchase. 

If this is you and you are thinking about releasing your equity for another mortgage, you will need a deal to transfer. If you are currently on a lenders standard variable rate, we would advise that you shop around before rolling straight onto this rate. You can either shop around by yourself or approach a Mortgage Broker in Leeds, like us.

At Leedsmoneyman, we can search through thousands of mortgage deals through our extensive panel of lenders. We will try our best to find you a competitive deal and, at the time releasing capital. You can continue with your current lender, but you will only access to their limited products. Remember, lenders don’t reward loyalty to offer better deals to First Time Buyers over you.

Second mortgage to rent out existing home to purchase a new one

When people want to move home, they usually replace their existing mortgage with their new one. However, some people may keep their current mortgage and property to rent it out. When this is the case, your second mortgage will be a new residential one. 

Second mortgage to purchase a home for your children

This option is becoming very popular. Due to inflation and the value of properties constantly rising, First Time Buyers in Leeds find it hard to get onto the property ladder and rely on a Gifted Deposit. We often see that applicants have had help from their parents or grandparents by offering to pay for a new home or at least the mortgage deposit.

Second Mortgage for a Buy to Let

If you are interested in purchasing a second mortgage for a Buy to Let, we will be more than happy to help you with that. We have helped hundreds of Buy to Let landlords secure amazing mortgage deals in the past, and we want you to be next.

Named on an existing mortgage and want to buy a new home?

Are you currently named on another mortgage and would like to purchase a new property? This situation does come around a lot, and unfortunately, it is because of a divorce or separation. Worry not; we can help. Having a Specialist Mortgage Advisor in Leeds by your side could help and take all of the stress off your back.

We can search through thousands of second mortgage deals on your behalf and find the best one for you and your personal and financial situation. Receive a free mortgage consultation today at Leedsmoneyman, your expert Mortgage Broker in Leeds.

Get an Agreement in Principle for a Mortgage in Leeds

First-Time Buyers Mortgage Advice in Leeds

What is an Agreement in Principle?

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.

Mortgage Advice in Leeds | Why Speak to a Mortgage Advisor?

Why get Mortgage Advice in Leeds? Why go to a Mortgage Broker? If you are asking yourself these questions, then it’s time to take a look at all of the benefits of getting Mortgage Advice in Leeds.

Why do people comes to us for Mortgage Advice in Leeds?

There are lots of different reasons to why someone might use a Mortgage Broker in Leeds. We offer advice in a variety of different areas and will try and find you a great mortgage deal for your specific mortgage scenario.

Even though we cover lots of different mortgage types, our usual customers consist of struggling First Time Buyers or people that have been declined by their bank. So, if this is the same as or a similar situation to your own, make sure to get in touch as you may need specialist guidance from an advisor.

So you are ready to approach your Mortgage Broker in Leeds and you are ready to get the ball rolling… but which mortgage types do we cover?

Mortgage options in Leeds

Are wanting to set off on your mortgage journey to get yourself onto the property ladder? Well, our First Time Buyer Mortgage Advisors in Leeds are here to help!

Leedsmoneyman will search through thousands of First Time Buyer mortgage deals in order to try and find the perfect one for you. We know exactly how to save your time and your money, we have been in the broker industry for 20 years after all! We want the process to run as smoothly and as stress-free as you do.

If you are thinking that it is time to move on and want to start the process of Moving Home in Leeds, then why not get the help from a Moving Home Mortgage Advisor in Leeds.

As a Mortgage Broker in Leeds, we know that people sometimes outgrow their home. Whether it’s down to wanting more living space, starting a family, or something else, it’s normal for people to want to start a new chapter and move home. Having a professional by your side could allow you to access the latest mortgage deals on the market and it will take all of the stress away from the process!

We always aim to save your time and your money, even when it may not seem possible.

Is your current mortgage deal approaching its end? Do you want to switch onto a more competitive deal that could save you money? If so, then it’s time to Remortgage!

Your expert Remortgage Advisor in Leeds is here to help! Rather than switch over online to make things ‘easier’, you should get in touch with us and we can compare external deals for you through over lenders. With a large panel of lenders to hand, we are able to search through thousands of deals for you.

Are you a current landlord wanting Buy to Let Mortgage Advice in Leeds? Maybe you are considering dipping your feet into the Buy to Let mortgage world? If this is your situation, then it may be time to get Mortgage Advice in Leeds.

We have been working with local and budding landlords in Leeds for over 20 years now, and we want you to be next! Get in touch for a free Buy to Let mortgage consultation.

We know that it can sometimes be hard getting a mortgage when you are Self Employed, and that’s why we want to offer a helping hand.

As an experienced Mortgage Broker in Leeds, we have helped thousands of Self Employed customers achieve their mortgage goals. Even if we are faced with some bumps along the way, we will always try and get over them and get you a great mortgage deal that is best suited to your personal and financial circumstances.

Being faced with a tricky mortgage situation is not ideal, especially when you have to deal with it on your own. Having a Specialist Mortgage Advisor in Leeds by your side would take all of the stress off you back and since we have been in this game for over 20 years, it’s likely that we’ll be able to solve your issue straight away.

In Leeds, we deal with new, specialist mortgage situations every single day. We love a good challenge at Leedsmoneyman, so don’t hesitate to get in touch, even if you think that your personal situation is too complicated.

Interested in going down the Help to Buy route? Need Help to Buy Mortgage Advice in Leeds to help you choose a scheme? You are in luck because Leedsmoneyman specialises in Help to Buy mortgages too and can offer you a free Help to Buy consultation too!

Remember, to access most of the schemes you either need to be a First Time Buyer or moving into a new build. For more information, you can also check out the government’s official Help to Buy page.

If you are wanting to buy your council house, you will need to take the Right to Buy mortgage path. Firstly, you need to check if you qualify. You can either do this entirely on your own or a Mortgage Broker in Leeds like us can help you out.

If you want to buy your council house, getting Right to Buy Mortgage Advice in Leeds could be your best option.

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!

Why Should I Use a Mortgage Broker in Leeds?

The Benefits Of Using a Mortgage Broker in Leeds

Why use a Mortgage Broker? | MoneymanTV

Some key points we would like to make to why to use a Mortgage Broker in Leeds, we believe there are a lot of more positives if you came to us rather than going straight to a Mortgage Lender.

Considered, it’s worth exploring your options, and we find that most people use a Mortgage Broker in Leeds. However, this article will balance the pros and cons of both paths.

A Mortgage Broker in Leeds vs A Mortgage Lender in Leeds

A Mortgage Broker in Leeds like us, we likely charge a broker fee on top of other costs, whereas Lenders don’t require this payment saving you money.

You argued that “The Bank Manager knows my finances inside out,” but when credit scoring came in those statements were made redundant, you might find that the Lenders offers exclusive direct deals.

They did this to attract businesses from both consumers and brokers alike. These deals are sometimes available only via the Mortgage Broker and not the branch.

Mortgage Advice Then vs Now

Back in the day, Lenders would be allowed to let any member of staff away from you towards a potential mortgage (that likely wouldn’t benefit you), without any proper mortgage advice or consumer protection.

By 2014 this got banned, with only experienced Mortgage Advisors allowed to provide Mortgage Advice and make recommendations for their products; customers ended up waiting on an extended period just for an initial appointment.

Sometimes this can happen, which isn’t great when you’ve had an offer accepted for a property. With issues like this application via Mortgage Brokers started to climb. We offer a same day service, aiming to put you through to a qualified Mortgage Advisors in Leeds within the same day or immediately after making a call.

The Challenger Nowadays

Now the challenge is finding a lender whose criteria and features can get personalized based on your circumstances. Bear in mind, though, that the deals with the lowest rates tend to carry arrangement fees.  

No matter how good a Lenders deal is, you’ll have to take note of the affordability, and this is such a big deal. Many people choose to go with a Mortgage Broker in Leeds as we can compare the criteria and find something tailored to your circumstances.

Newer Regulations

These days, thanks to regulations post Credit Crunch, mortgage applications are no longer straightforward. There are a variety of things that could potentially be a hindrance when you’re making your application. These can include:

  • You have a poor credit history.
  • You are receiving a self-employed income.
  • I am having 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’re striving on the affordability front.

Lending Criteria’s

Over the years, Mortgage Lenders would show their competitive side, often trying to offer better deals than the next Lender. Nowadays, because of tightened margins, their differences come from their lending criteria.

Examples of these include the amount some would lend to the self-employed compared to others, as well as being slightly more lenient to previous adverse recordings on your credit report.

Why should you come to us?

Whatever the situation, it is unique to you. When you explain this to an experienced Mortgage Broker in Leeds, they will likely have encountered something similar before. Hopefully, they’ll use this experience to recommend the most appropriate mortgage for you at the lowest rate available to you.

Our service we go above and beyond to our customers, they rely on us, even if the application is straightforward. We can discuss how much they’re planning to offer on a property, recommend services such as solicitors and property surveys, and go through any available protection.

Still, need more convincing?

Another significant aspect of the service a Mortgage Broker in Leeds provides is the ability to be more responsive than the lenders’ direct propositions. Out of hours and weekends, appointments are commonplace, as are our Mortgage Advisors in Leeds working late on an evening to respond to customers’ emails.

Overlooked factors on why most applicants prefer a mortgage broker is that everyone seems to be busy, and you just might need someone to handle the entire transaction and take away your stress. Professional applicants will see the benefits of this as they have clients of their own that they’re able to charge their services.

Maybe in the future, lenders will want to take back more clients from brokers. If this happens, it’s relatively unlikely they’ll staff-up their branch networks. It’s more than likely they will make investments in technology to transact with customers online.

Contact us now

For clients who want to do business that way, with say a straight forward product switch, it’s great. Generally, whether they’re First-Time Buyers in Leeds, Self-Employed in Leeds, or looking to Remortgage in Leeds contact us now and speak to experienced Mortgage Advisor in Leeds today.

First-Time Buyer Mortgage Advice in Leeds

Mortgage Advice on Mortgage Payment Holidays

At the start of the Coronavirus pandemic, the Government promised that all borrowers would be allowed a three-month mortgage payment holiday if they needed it. Most lenders followed the Government’s guidelines and did their best to help their borrowers during these hard few months.

We have thought carefully about the possibilities of what could happen to your Mortgage over the next few months. We are working very closely with all of our lenders to ensure that if anything changes, we can inform you right away and recommend the best option for you to take so that you still feel secure and happy with your Mortgage. 

We feel that it is best to summarise what mortgage payment holidays are, what lenders are doing, and who can provide you with help and guidance through these next few months. 

What is a Mortgage Payment Holiday?

Mortgage payment holidays are an agreement entered into with your bank, building society or mortgage lender to defer your monthly mortgage payments for a set period. In this case, 3-months.

It does not mean you never have to pay the amount back, but the interest you defer gets added ago onto the loan amount, while your capital balance will not decrease. In other words, your mortgage amount will increase slightly, and you will continue to attract interest on the whole amount.

When you are ready to continue the payments, this could mean that either your monthly payments recalculated at a slightly higher level or your mortgage term gets increased somewhat. Most lenders will probably prefer not to extend your mortgage term as this could take you past their standard retirement ages, but the detail on this will follow in due course.

Dependent on your mortgage deal, you may be able to pay off a lump sum later in the year to bring your Mortgage back to where it would have been.

Mortgage Payment Holidays are available both for those with residential or Buy-to-let mortgages in Leeds, which means landlords also have assistance if rental payments are affected.

What is the Government Proposal?

• Mortgage lenders will offer an automatic 3-month mortgage payment holiday for customers impacted, directly or indirectly, by COVID-19.

• The mortgage payment holiday will apply to customers who are up to date on their payments, not in arrears, and wanting to self-certify that COVID-19 impacts them.

• This means that lenders will not complete an income and expenditure assessment or evaluation of alternate payment options as ordinarily required under MCOB.

• This proposal will allow lenders to be more responsive to customer needs and offer forbearance in a simple way to customers in an environment where COVID-19 also impacts the operation of collections teams made.

• Customers will be made aware that interest will accrue in the holiday period, and they will need to make up deferred payments in the future.

• Customers who wish to undertake a full assessment of their ability to pay or financial difficulty may still do so.

Where do I go to Apply?

We are reviewing your Mortgage Payment Holiday. We would recommend speaking to your Mortgage Advisor in Leeds. in the first instance rather than instantly looking to take a mortgage payment holiday if there isn’t a pressing need to do so as Lenders will be prioritizing most cases first.

By approaching a Mortgage Broker in Leeds, we will be able to talk through your circumstances and look at all options available for your situation.

For a customer, up to date with payments, not in arrears and impacted by COVID-19:

• The customer would contact the lender and inform them that they are affected by COVID-19.

• The lender would accept these details from the customer and offer an automatic 3-month mortgage payment holiday.

• No evidence will be sought from the customer.

• The lender makes the customer aware that interest will accrue and will be contacted at the end of the three months to complete an assessment of the customer’s circumstances.

• At the end of three months, an arrangement to pay will be agreed with the customer according to their circumstances to recover any shortfall. (While ensuring that the Mortgage remains affordable and sustainable).

• The lender notifies the customer that if they wished to complete a full assessment now, there might be other forbearance options more suitable to the customer.

What Does This Mean for my Credit Score?

In some cases, a mortgage payment holiday can hurt your credit score, but most lenders have now said that for cases linked to the virus, they will ensure that this is not the case.

You must ask this question to your lender directly and record the response, including the date and the name of the person you are speaking to avoid confusion later. Different lenders are doing other things.

Will I Still be Able to Remortgage or take a Product Transfer With my Lender?

At first, everything seemed like it would remain the same, and you would still be able to make changes to your mortgages as usual. Additionally, this has changed in the last couple of days, and lenders have been asking borrowers to avoid making changes whilst you are within a mortgage holiday period. So, at the moment, they are not allowing mortgages and product transfers.

Borrowers nearing the end of their existing product may get forced to move on to the higher lenders variable rate. Meaning that borrowers who act too early could find themselves on a mortgage payment holiday that accrues interest on a costly variable rate.

We would highly recommend speaking to your Mortgage Advisor in Leeds, and they will determine the best course of action based on your personal and financial situation. If possible, arranging your mortgage transfer first then asking for the holiday would seem to be the most sensible way forward.

My Mortgage got Offered Will my Lender Withdraw the Offer?

At the moment, no Lenders have withdrawn mortgage offers; in fact, some are extending offers past the standard six-month expiration date.

Should I Pull out of my Purchase?

It would help if you did not pull out of your purchase unless, for example, you are worried about losing your job as a result of Coronavirus. We are advising everyone to proceed as usual for now and “wait and see” – you are not committed to completing your purchase until contracts get exchanged.

What “Other Options” are Available?

In some cases, lenders can offer you a temporary switch to interest-only to reduce your monthly payments but not to add any further to the loan amount by still servicing the interest payments each month.

It may not be necessary to convert all your Mortgage to interest only, and it may be that putting part of the Mortgage on this basis could give you the breathing space you need.

People with savings may find that remortgaging onto an offset basis could give them a helping boost they were looking for, and they will be cutting down on their monthly payments whilst keeping hold of their savings.

For example, someone with a £400,000 loan and £100,000 in savings would only pay interest on £300,000. Additionally, this will massively reduce their monthly mortgage payments.

For others, a straight remortgage to another lender, calculating the cost of any early repayment charges, may well be enough to ease the burden or simply extending the term of your Mortgage.

Contact Your Mortgage Broker in Leeds Today

If you still have any other questions on mortgage payment holidays or want general Mortgage Advice in Leeds, give us a call today. We want to help you and your mortgage journey through these tough few months ahead. Speak to an experienced Mortgage Advisor in Leeds today.

Mortgage Advice in 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.
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© 2021 Leedsmoneyman - Mortgage Broker

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