If you have reached your goal of completing all the required exams to become a Newly Qualified Teacher, you are probably looking at the next step. With all your new skills and qualification, you will be looking at finding yourself a teaching position.
You may find a teaching position that is based in an area that is too far to commute which could mean you looking at option available for you with Moving House in Leeds.
With this in mind, you may be looking at finding yourself a place to live. Due to keeping the balance between homeownership and settling into your new role, you may find this an exciting yet stressful time.
Throughout our time as a Mortgage Broker in Leeds, this situation has happened to numerous home buyers and homeowners who were wanting the process to be stress free and smooth while they focus on their new career.
As a Newly Qualified Teacher, it can be a challenge to look for a mortgage lender who will be happy to offer a mortgage to an individual who is a newly qualified teacher.
This could be for a number of reasons, one being a lack of or no work history to show or because they only have a temporary contract.
Despite these being an issue, there are numerous options for Newly Qualified Teachers who are looking to get a mortgage. Here at Leedsmoneyman, our knowledgeable team of Mortgage Advisors have helped a lot of NQTs on their journey of obtaining a mortgage with a Mortgage Broker in Leeds by their side.
On your mortgage journey as a Newly Qualified Teacher, it can be common to find that there are a small number of lenders who have deals suited to public sector workers like teachers.
In order for everything to run as smoothly as it can, it’s important that you choose the best mortgage lender for your circumstance. This part of the process can be the most difficult out of the full mortgage journey.
This is where a mortgage advice team in Leeds can help by searching through thousands of mortgage deals for you in order to get the most suitable deal for your circumstances.
Even though mortgages can be complex for New Qualified Teachers, there are still options out there available to you on the mortgage market.
Below are the types of mortgages that we find regularly come up when we are dealing with cases involving Newly Qualified Teachers.
When it comes to NQT mortgages, there are more other factors lenders might consider. In some cases, depending on the lender, they might not ask you to evidence previous employment and may let you get up to a 95% LTV (loan to value).
Some mortgage lenders may treat a 12-month first contract the same as a permanent job role, instead of seeing it as a temporary contract.
A small majority of mortgage lenders around the country could get you on your mortgage prior to beginning your job. This does mean you have to show them a signed contract and a confirmation of your start date.
This can be helpful for you, especially if you are preparing to start making your first mortgage payments at the same time as your first month’s wages from your new job is due, around the time your mortgage has completed.
At Leedsmoneyman, we have a team of knowledgeable mortgage advice experts in Leeds all with a vast amount of knowledge and experience in helping customers in the world of mortgages and the property markets, helping numerous first time home buyers with their mortgage needs.
Having a dedicated Mortgage Broker in Leeds by your side in the mortgage process can have many benefits. Our goal is to take the stress away and provide a tailored service through searching thousands of mortgage deals to find the one that is fitting for your situation. We also can recommend possible conveyancing solicitors for you to use and more.
If you are wondering what options are out there for you as a first time home buyer, book online for a free mortgage appointment with one of our expert mortgage advisors in Leeds. In this appointment, your dedicated advisor will ask you about your situation and help you with the next part of your journey.
You may find that going into the mortgage journey will prove to be rather fruitful. It can have both its ups and it’s downs, though regardless, you will end up with one potential outcome once your term ends.
You’ll either have a home that you have been able to settle down in, an initial property that you can use to propel yourself up to a better property, or a property that you can invest in to boost your income.
No matter which route you went down, you’ll eventually reach the point where your term comes to a close and you’ll need to look at your options. Some people look to sell their home and upsize/downsize into a new property.
Others may sell their portfolio to the tenant or another buyer, with a view to look alternative ventures. However, we mostly find that people choose instead to Remortgage their home.
First of all, let’s take a look at what a Remortgage actually is. A Remortgage is basically where you take out a new mortgage to pay off a mortgage that you already have. There are a wide variety of different options when taking out a Remortgage, some of which are minor, others of which are major.
By using over two decades of mortgage industry knowledge from the “Moneyman” himself, Malcolm Davidson (host of our YouTube channel MoneymanTV), we put together a useful Remortgage guide for those looking at what they can do next, when their term nears its end.
The mortgage deal that you start on will typically last around 2-5 years and feature low fixed rates, with the rates potentially discounted. Sometimes though you may find that you’ve been placed onto a tracker mortgage, which will follow along with the Bank of England’s base rate.
Once your term comes to an end, it’s likely that you will be put onto the lenders Standard Variable Rate (this may be shortened to SVR). To explain what this is, an SVR is a mortgage that has an interest rate that may change depending on the amount that your lender wants to charge for it.
The Standard Variable Rate will not follow the Bank of England’s base rate like you would see with a tracker mortgage.
Because of this, SVR’s are generally perceived to be the most expensive paths that customers could take, leaving many to instead take a look at Remortgaging to open themselves up to better rates, something which may hopefully save you money on future monthly mortgage repayments.
Once you’ve gotten about 2-5 years into being a homeowner, you may feel like something needs to changed. Some people might want an extra room or much more living space, possibly a new kitchen, a new office to work from home in, or even a new loft conversion.
Rather than find a bigger home to move into, a lot of homeowners instead look at releasing their equity with a Remortgage, so that they can cover the costs of home improvements.
Obtaining planning permission and both funding and managing your own project can seem quite stressful. Some other homeowners would say that it is less stressful and a lot more rewarding than it would be trying to get a new home, selling your current home and moving everything between properties.
In the long run, you may be able to reap even more benefits, as opening up lots of space within the property and having a top level of craftsmanship will very likely increase how much the property is worth, which is useful if you ever decide you want to sell your property or make it a rental.
Sometimes you’ll find that people are looking to Remortgage in Leeds so that they can gain access to a better mortgage term, whether this be achieved by reducing the length of the term or switching to a more flexible mortgage product.
By reducing your terms length you’ll be cutting short how long you pay back your mortgage for, so aren’t tied down, though it does mean that your monthly repayments will be higher. The longer you set your term for, the lower your payments will be.
Some homeowners may choose to take out a more flexible mortgage term when they look to remortgage. They may do this due to the amount of benefits they may have for doing so.
In having this mortgage, you may be able to overpay, meaning you could pay your mortgage off a lot quicker, as well as being able to take the same mortgage and rates with you across to another property, if you ever do decide to move.
You might feel like a flexible mortgage sounds near perfect, though they tend to be tracker mortgages, which as we said before will follow the Bank of England base rate. This means your payments could differ depending on interest, which some may think is unreliable.
Everyone will have some amount of equity existing within their property. The amount can be worked out by looking at the difference between what is left on the mortgage and how much the property is currently worth.
As talked about before, the equity can be used for home improvements, though you can use it for more than that too. Some use their equity to cover long-term care costs, to boost their income, to go on holiday, to pay off an interest-only mortgage or to just give them some spare money to spend.
Occasionally, we see Buy-to-Let landlords using Equity Release as a way to cover their deposit for buying any future property portfolio additions.
Whilst speaking of Equity Release, we also find that there are a lot of people who will pay off any unsecured debts that you may have gained over time.
Though it may seem like a really straightforward process, Debt Consolidation not only factors in the amount that you owe for your debts and how much the property is worth, but also the state of your credit rating. This means the amount you could borrow is limited.
On top of this, in order to pay off your previous mortgage and your debts, you need to borrow a much higher amount than your mortgage, making your monthly repayments much higher. Though it isn’t great, at least you know there are some options should these problems arise.
If you have a damaged credit rating, there are still options out there for you, though these aren’t easy and require very Specialist Remortgage Advice in Leeds before you go ahead with these. Even with those options, you’re not guaranteed to get a mortgage.
It is always recommended that you get mortgage advice before you look to consolidate and secure any debts against your home.
If your mortgage term is coming to an end and you would like to learn more about your Remortgage options, we definitely recommend getting in touch with an experienced Mortgage Broker in Leeds and booking your free mortgage appointment.
A dedicated mortgage advisor will take a look at your situation and look at your future goals, in order to help you to determine the next step of your mortgage journey. We aim to ensure that your mortgage process this time around is a lot smoother and quicker than it was before.
Porting a mortgage takes place when you are looking to move home at the time of your fixed-rate deal. It’s actually possible as a homeowner to transfer your mortgage product and you will potentially have the option to port your mortgage if necessary.
Instead of paying the early repayment charge (ERC), the lender might give you the option to pick up the remaining amount on your current mortgage and move into the property. This option is not available to all applicants moving home as it depends on where you’re looking to move and if the lender will let you proceed with porting the mortgage.
Taking out a Second Charge mortgage can be an option if the property is valued more than what you will be paying back. If you are wanting more information about this, check out our MoneymanTV YouTube channel with our video: What is a Second Charge Mortgage?
You may find that not all mortgages are portable, especially if you are with a specialist lender as the option to port may not available to you. To find out if you can port your mortgage or not, contact your lender who can confirm this for you.
Despite porting be an option for some customers, many decide not to. The reason for this might be that your lender will not lend you extra money so you can move. If you are provided with additional funds, this will be at a separate rate from the one on your current deal. You might turn down the new deal you have been offered and decide to take the early repayment charge and go to a different lender.
When you port your mortgage, a sub-account on your mortgage is created. The additional funds will go onto a different deal to the one you have on your current mortgage. Regardless of you having one mortgage and one direct debit, two different rates of interest will apply to each.
The annoyance that can come with having sub-accounts is that down the line you may the different products will overlap. Aligning the accounts could mean that one of the sub-accounts will have to go onto the lenders’ standard variable rate for a certain period of time.
Here at Leedsmoneyman, we can offer mortgage advice when it comes to porting mortgages. Therefore, if you are moving house in Leeds and dealing with a buy to let mortgage or you are in need of support with a self employed mortgage, booking a free appointment with one of our dedicated mortgage advisors can help explore your options.
Whatever the reason is for wanting to remove a name from a mortgage, the process may be hard and complicated. As soon as you take out a mortgage in multiple names, getting your name or someone else’s name off can prove difficult.
It’s not impossible to take a name off a mortgage. Here is why people want names removed from a mortgage and how you can do it:
The first and most common example would be if you were going through a divorce or separation and needed to take either your name or your ex-partner’s name off the mortgage. When going through a breakup, financial arrangements get pushed to the back of your mind, however, they should be actioned on first. Leaving the complicated processes till last can be stressful. You will also need to allow some time for your lenders to do what they need to do; they can’t just remove a name just like that.
Your lender, building society or mortgage broker in Leeds will need to know that both parties will be able to live comfortably with just one income. If one party decides to remain within the household, the lender will need to make sure that they can afford the mortgage payments by themselves or whether they’ll still need help with them. Both parties must agree for a name to be taken off a mortgage, therefore, if one party says no, you’ll be required to go down the route of court proceedings, which can be costly and time-consuming.
If you’re going through a tough divorce or separation and need specialist mortgage advice in Leeds, we’re here to help you arrange the mortgage side of the process.
Surprisingly, this process is fairly straightforward, even more so if you choose to use a mortgage broker in Leeds.
The process will involve the homeowner transferring equity to their family member or friend. Essentially, the mortgage will get transferred with the equity remaining inside the property. The new homeowner will still be required to prove that they can afford a mortgage. They’ll have to pass their lender’s affordability and eligibility assessments.
If a party is not paying their way, it can start causing you problems as you’re financially associated with them. Believe it or not, as a mortgage broker in Leeds, we’ve seen this situation come about quite a lot, it’s usually when there’s been an argument within the household!
If bills aren’t being paid by one person within a household, it can affect everyone else too. When you sign up for a mortgage with multiple names, you’re trusting that everyone is going to keep up to date with their payments. Missed payments can negatively affect your credit rating and score.
If you’re in this situation, it may be best to approach your lender. Alternatively, you can speak to a professional mortgage advisor in Leeds and help before it gets worse.
When you’re wanting to remove a name from a mortgage, it’s essential that you speak with an expert. Getting specialist mortgage advice in Leeds will definitely help you out.
We would recommend describing your issue to your mortgage advisor in Leeds and going from there. Before you can continue, the named party that you’re trying to remove will need to prove that they are able to live comfortably with one income. This part of the process can be a struggle, particularly if a party is refusing a name to be removed.
Let our team handle the stressful parts of this process. Our specialist advisors are available 7 days a week, make sure to get in touch.
Across the nation we now find that people are paying a lot more attention to their credit rating they might have done in previous years. We find that a large majority of the people who call us for mortgage advice in Leeds perhaps have already researched online to find a copy of their credit report.
There are a wide variety of different credit reference agencies to choose from, but the two most common companies you may be aware of are Experian or Equifax.
We would highly recommend that new customers who get in touch look to use Check My File. In doing so, you’ll find a report that offers customers a collation of information from various sources (the aforementioned two included) in an easy to understandable colour-coded report.
Check My File offers a 30-day free trial. After this 30 days, you will be charged £14.99 a month, although you can cancel this at any time prior to the end of those 30 days.
When speaking with our customers, our mortgage advisors are often asked if they will be doing a credit search on them, as they have done their research and know that too many searches can negatively affect their credit score.
The lender will always run their own credit checks but our mortgage advisors will always ask the customer for permission before doing so. You’ll find that credit searches will come in two forms; hard searches and soft searches. Here we will discuss the difference between the two and how they can help.
A hard credit search is a way to take an in-depth look at your credit report. No matter who they are, any financial institution carrying out one of these will have to seek your permission to do undertake one of these.
The main advantage of a “hard” search would be how in-depth it actually goes. The chances are, if you can pass a hard credit check, it is likely that you will go on to be successful with a mortgage (though this is of course never a guarantee).
From this point on, all that can go wrong with your mortgage process is if for some reason you cannot provide the required documentation to backup the information that you have presented to the lender, or it turns out you have provided incorrect information altogether.
Looking at it from the other hand, another benefit is that having a hard search taken out on you will leave a ‘footprint’ on your credit file, which would mean that anyone taking a look at your report can see that it has been carried out.
This is not a bad thing at all, but let’s say that for some had multiple searches included in your credit file in a short period of time. This could come across to the mortgage lender that you are applying for a lots of credit at the same time and this may put them off.
The footprint will not leave a note as to whether or not your application was successful, so if you have several searches in a short amount of time, the lenders’ systems may assume wrongly that you are being declined regularly. Think about it; why would you apply for credit with a second lender, unless you’d been declined by the first?
Having the occasional hard footprint on your record isn’t too big of an issue, so you really don’t need to worry about it too much. Just be careful not to have too many of these taken out
The alternative to the hard search, would be a soft credit search. This would be a much straightforward search which takes a look at your financial situation and would be the type of search that you might come across when using a price comparison website, so that you can find out what options may be available to you.
Alternatively it can be used to verify your identity. You’ll find that some mortgage lenders will carry out soft searches of their own. We find that nowadays, even more lenders are changing to this type of credit search.
Whilst it will give whoever is carrying out a soft search less information than they would’ve gotten from a hard search, if you managed to obtain an Agreement in Principle from a lender, it is still a very good indicator that your full application will be accepted for a mortgage.
One of the things that appeals to customers regarding soft searches is that you have the ability to see soft searches that others have carried out on you (people are often surprised by how many have been carried out on them), though these searches will not be visible to other financial institutions such as a bank or lender.
This means that you have the ability to apply for an Agreement in Principle ahead of a mortgage in Leeds, without causing any damage to your credit score, regardless of whether it is successful or not.
If you are thinking of making any offers on a property as a first-time buyer in Leeds, our trusted and dedicated mortgage advisors in Leeds would very much suggest that you obtain a mortgage Agreement in Principle in place prior to getting in touch with an estate agent.
You should ideally look to give yourself the best possible chance of securing your dream property at the lowest possible price. With this in mind, if you present yourselves as having your finances in order, you will definitely give yourself the upper hand in your mortgage situation.
Being in possession of an Agreement in Principle could also help prevent an estate agent from trying to cross-sell any of their own mortgage products to you.
Some people find the idea of sorting out a pension can be slightly off-putting. Nevertheless, it is worth doing so as they can genuinely benefit you later when you approach the legal retirement age.
Over the years, you will likely have paid into one or more pension plans, be that personal or workplace. Many clients have little to no idea how much they’ll be worth when they retire!
Those pensions may no longer match your circumstances, this is something your advisor will be able to check for you. It is always worth looking into paying for advice, especially if you have pots totalling over £10,000.
Some employers who offer defined benefit schemes (final salary pension) may motivate members to transfer their benefits to a different provider. Once you have found a trustworthy pension advisor, you can build up that long relationship with them. They will then review your pensions regularly, ensuring you are on track to the income in retirement you were hoping to aim for.
The following could possibly be happening without your knowledge if you haven’t had your pension review in a while;
Before considering a pension transfer, seek advice from an experienced and qualified pension advisor in Leeds who will make a personalised recommendation.
If you are retired or approaching retirement, this is an excellent opportunity to seek professional advice.
Pension drawdown (aka income drawdown) allows you to cash in a percentage of your pension tax-free when you’re over a certain age. These rules do change, so it’s essential to seek advice to remain up to date.
Your pension provider may offer you an uncompetitive annuity when you come to draw your pension but again speaking to a qualified pension advisor will potentially open up more options for you and possibly increase your income in retirement, this can lead to a better and healthier retirement lifestyle.
If you would like some specialist advice in Leeds, please get in touch. we would love to point you in the right direction.
Firstly, what is a credit score? A credit score is a numerical value that lenders use to calculate your affordability for a mortgage loan/any form of credit, etc. Although different lenders have their own unique credit scoring models, the credit score that you’ll have listed on your score will likely range from 300-800+.
A credit score below the ‘good’ range may mean that you’ll only be able to access specialist products, whereas, if you have a score that’s greater than ‘good’, it’s likely that you’ll be able to access more competitive products.
As an experienced mortgage broker in Leeds, we handle specialist cases every day. More than often we find that our customers have come to us after being declined by their bank/building society due to a low credit score or something similar. It’s our job to pick up where they left off on their mortgage journey and try to secure them a great mortgage deal.
There are many different reasons why you could have a low credit score. A common reason that we come across is that there is a county court judgement (also known as a CCJ) associated with the applicant’s name. You may receive a CCJ when you’ve taken a loan/borrowed money and have failed to pay off the amount owed. CCJ’s can put a harmful imprint on your credit file for 6 years or more, and that’s why it’s so important that you try and get the CCJ removed from your file prior to applying for a mortgage or make sure that you pay off all owed payments before you receive a CCJ. A CCJ will undoubtedly reflect negatively on your mortgage application and your lender will start asking questions.
Following on from CCJ’s, failing to stick to credit agreements can also harm your credit score. Even failing to keep up with your mobile phone contract payments can eventually cause damage to your credit file. You can’t forget about the little things either, as they can cause damage too. For example, dipping into your overdraft every month could cause a long term negative effect.
These are just a few examples of things that can negatively affect your credit score. Of course, there are lots of other reasons why you may have bad credit and some more obvious than others. It’s our job to try and help you improve your score and give you expert tips to try and get your credit file looking up to shape.
Improving your credit score, especially when it’s low, can sometimes be difficult. When it comes to helping you improve your credit score, we want to give you the best advice possible to help you do so.
You should know that each lender has their own unique passing criteria, so your score may affect what sort of deals you can access from each one. Also, you may not match every single mortgage product, so rather than applying for lots of different products, you could try shopping around for mortgage deals that will definitely match your situation and credit score.
You’ll have a soft or hard credit search performed on you every time that you go directly to a lender and their in-house mortgage advisor puts you through for a deal. This search will leave an imprint on your credit file and other lenders will be able to see the search. If your application is declined, the credit search on your file may have a negative impact on your credit file. This is why we recommend keeping the number of searches performed to a minimum.
This is where we can help! As an expert mortgage broker in Leeds, we aim to get it right the first time, which means that we will take a look at your credit score and only look for products with criteria that we know you’ll pass.
Applying for credit, particularly during your mortgage application, can sometimes backfire on you. If you take out a loan or apply for extra credit if you fail to pay it off before your application, your credit score may dip and it could reflect badly on your credit file.
In some cases, as long as you pay it off, borrowing credit can actually help improve your credit score. This is because you are showing that you are a reliable applicant that meets their payment deadlines.
An easy way to help improve your credit score is to get yourself registered onto the voter’s roll (if you aren’t already). Being on the voter’s roll shows that you are who you say you are and you live where you say that you live. It’s a simple registration process; head over to the official government’s electoral roll page to find out more.
Make sure that you fill out accurate information when registering for the roll. You will need to provide your current living address, so make sure that there isn’t an old one on their system.
During the mortgage application process, you should make sure that all of your information is filled out correctly, double-check that you’ve not got an old address listed anywhere!
Maxing out your credit card(s) each month can heavily impact your credit score, in a negative way. Of course, paying off your credit cards each month will help and may give your credit score a small boost.
If you are exceeding credit card limits and always dipping in and out of your overdraft, they may feel as if you don’t take your finances seriously and are an unreliable applicant.
Your credit score could be getting harmed without you even knowing if you are still financially linked to someone who has bad credit. Whether it’s an ex-partner or a family member, if they are harming your credit score, you should try and get your financial links removed from them. The only way to do this is to get in touch with your credit reference agencies and make a request.
At the end of the day, it’s up to your lender to decide whether they feel like you are the type of person that they want to be lending to. Some may be more lenient than others, whereas some may be strict and won’t give you some leeway.
Sometimes it’s best to get help from professionals like us. Using a mortgage broker in Leeds could allow you to access new, competitive mortgage products. Whether you’ve got bad credit or good credit, it’s our job to try and find you a product that you perfectly match. We have a huge panel of both high street and specialist lenders, each with 1000’s of mortgage deals for you to try and access.
For further credit score mortgage advice for first time buyers in Leeds and home movers in Leeds, feel free to get in touch today.
If you’ve been to your bank and been declined for a mortgage, you need to be careful about applying again and then getting declined again. There could be many different reasons why you’ve been declined, some may be easier to fix than others too, it depends on your situation.
Here we look at some of the most common reasons why people get declined for a mortgage.
One of the most crucial steps to obtaining a mortgage is passing the lenders credit score. Depending on factors, such as your personal and financial circumstances, some may be easier to pass than others.
Each lender will have their own unique lending criteria. Usually, if you are applying for a mortgage through a high street lender, you may be expected to have a higher credit score and be able to match competitive criteria, whereas, if you have a low credit score or have had past credit problems, you may be required to use a specialist lender with limited products.
Failing a credit score may also negatively impact your overall credit rating; this is why we advise that you don’t keep applying to different lenders if you’re getting declined. Rejected applications may show up your credit file, and may affect your score and ability to get accepted for credit.
If you’re struggling to get accepted, you may benefit from using a mortgage broker in Leeds, like us. We are a specialist broker who try and help people in this or similar situations. Rather than getting declined and potentially damaging your credit score, you should get in touch and we will see how we can help!
Folowing on from ‘failing a credit score’, getting declined due to your credit score not matching a mortgage product can be dissapointing, and that’s why you should know that you can sometimes improve it!
If you have a low credit score, it is usually down to previous/current credit issues. This could be something from a CCJ to numerous unpaid phone bills. A low credit score is usually considered as less than 500, so if you fall within this range, you may need to look for specialist products.
You can increase your credit score in some cases. For example, if you have a credit card that you use regularly, you should make sure that you pay the balance off in full each month. Surpisingly, being on the voter’s roll can also help as it shows where you live and adds another proof of address on your credit file. Even closing old credit/store accounts and removing your financial links to others can help improve your score.
Improving your credit score can be tricking, if you watch some more top tips, check out our YouTube Video on “How to Improve your Credit Score“.
Every lender will have their own way of calculating how much you can borrow. It’s possible that you could approach ten different lenders and the outcome is ten completely different answers. Depending on the lender that you’ve used, you may recieve a more lenient offer than others.
Some mortgage lenders will assess 100% of an employee’s overtime and bonuses, whereas others will not. Additionally, some lenders will accept “unearned” income, such as tax credits, child benefits, and maintenance. It’s all down to the lender that you use.
If you use a mortgage broker in Leeds like us , we can approach several different lenders without the need for a credit check in order to perform an affordability assessment. We always advise that you carry out a affordability addsessment prior to applying for a mortgage and viewing properties in Leeds. You want to avoid potential dissapoitment further down the line.
Proving that you have maintained mortgage or rent payments in the past does not necessarily guarantee that you will pass a lender’s affordability test.
All Lenders have their own unique lending criteria. This will be individual to their own products hence, depending on your situations, that’s why some lenders are better than others.
Some lenders have even have their own niches to attract borrowers that they want. Some will tick different boxes, e.g. you may get a specialist lender who aims to help applicants with bad credit, whereas, another lender may stay away from these applicants.
Here are some examples of why your application has been declined for being outside of policy:
As a mortgage broker in Leeds, it’s our job to only compare mortgage products that we know you’ll match. We will never recommend you a product that will not benefit your situation.
Whether you’re a first time buyer in Leeds, or moving home in Leeds, we’re here to help! We know the difficulties that come with the mortgage journey and we know how to get by the majority them.
Get in touch today for a free mortgage consultation. We can’t wait to hear from you!
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.
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.
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?”
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.
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.
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 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.
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.
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.
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.
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.