Why Should I Use a Mortgage Broker in Leeds?

The Benefits Of Using a Mortgage Broker in Leeds

We firmly believe that there are many positives to taking on the services of an expert mortgage broker in Leeds, more than there would be to going direct. That’s just our opinion though, of course we’d say that!

In reality, there are positives to going elsewhere, so it definitely is worth exploring your mortgage options. Thankfully for us, the majority of people will opt to speak with a mortgage broker in Leeds. That being said, we will take a look at the pros and cons of both routes.

Mortgage Broker in Leeds vs Going Direct in Leeds

The first tick in the column of Team Mortgage Broker is that whilst most high street banks can be approached directly, not all mortgage lenders can be.

This means that to get the best deal across all lenders, you’ll benefit from speaking with a mortgage broker in Leeds, though a mortgage lender may still have some deals you cannot get going to a mortgage broker.

An experienced mortgage broker in Leeds will typically require a fee, whereas this likely won’t be the case when going direct. That being said, we can help to recommend other services that you’ll need for much cheaper than they might be with a lender.

Previous arguments could be made saying that “the bank manager knows my finances inside out,” but this was a nullified argument once credit scoring was introduced.

If you know what you are doing and what you are looking for, going direct can be a quick and easy process. On the other hand, if you do not know what you are doing, you could harm your chances of ever obtaining a mortgage, as you won’t match all lenders criteria.

A trusted mortgage broker in Leeds will be able to review the different lenders mortgage criteria and will be able to match you up with the most suitable mortgage deal. We always aim to get this recommendation right first time, which more often than not, we do.

Mortgage Advice Past vs Present

In days gone by, mortgage advisors from high street banks would approve you for a mortgage, whether they were adequately qualified or not. You would not benefit from correct mortgage advice or consumer protection.

As 2014 arrived, this type of practice was banned by the government. Only experienced mortgage advisors could go about providing mortgage advice to customers, making recommendations for products.

The downside to having to now having to only speak with specific individuals at a bank, meant you could be waiting months, just to speak with someone. That’s not good if you’re keen to get it done quickly!

Because of this, usage of a mortgage broker in Leeds rose, becoming a much more popular option. As a company ourselves, we offer various time slots throughout the week, allowing you to pick a time that is convenient to you, and not months in advance!

Quite often, if you’re lucky when booking your free initial mortgage appointment, you’ll be able to speak with someone the same day.

Modern Day Challenges

Nowadays, the hardest part of the mortgage process is matching up against the right mortgage lenders criteria. It’s also important to remember that deals with the lowest rates often have higher arrangement fees.  

At the end of the day, a deal may be really good, but you’ll need to pass affordability checks and be eligible for that deal in the first place. With the help of a mortgage broker in Leeds, you’ll be able to find deals that are suitable for you.

Newer Regulations

Thanks in part to the regulations that followed after the credit crunch back in 2008, mortgage applications perhaps are not as straightforward as they used to be.

This isn’t necessarily a bad thing, however, as it makes for fairer lending and less chance of anyone falling into arrears, which both customers and mortgage lenders alike would much rather do without.

That being said, there are still a handful of situations that could cause some issues for applicants, of which a mortgage broker in Leeds may be able to help with.

• You have a poor credit history.
• You are receiving a self-employed income.
• There is a mixed deposit source, i.e. Gifted & Savings.
• Opting for Let to Buy. Renting your current home to buy another.
• Being a contractor or working under a zero-hours contract.
• You perhaps can’t quite meet affordability requirements.

Lending Criteria

Over our time as an expert mortgage broker in Leeds, we have seen mortgage lenders demonstrating their competitive prowess, trying to offer better interest rates than their fellow mortgage lenders.

Once again because of the changes to regulations, the other difference between these lenders, is their mortgage lending criteria and whether or not the customer can match up with it.

Examples of how these may differ, is that some mortgage lenders may have more products for self employed applicants than others, whereas others may not but will be more lenient to something like bad credit mortgages.

The Benefit of a Mortgage Broker in Leeds

Whatever your situation may be, it is unique to you. When you get in touch with a mortgage broker in Leeds and discuss your case, we may have encountered something similar before and will use that knowledge to help.

As a part of our service, we aim to go above and beyond for every customer who gets in touch with us. Customers rely on our help, so even if it seems relatively straightforward as far as cases go, we will still give it our absolute all.

During your process, one of our mortgage advisors in Leeds will be able to discuss what your budget is for making an offer on a property and recommend additional services such as trusted solicitors and the right property survey to undertake.

They can also run through any potential insurance options with you, helping prepare you and your family for the future, in the event of anything unfortunate occuring that could hinder your families financial state.

Still, need more convincing?

A further aspect of our service that is worth shouting about as a mortgage broker in Leeds, is how responsive we are to our customers. Oftentimes going direct can leave you unsure of what is going on and not always being able to make contact.

Our trusted mortgage advisors in Leeds will always keep you in the loop, with availability from early until late, every day of the week, responding as soon as they possibly can, no matter what you need them for.

Additionally, an overlooked factor as to why people may prefer the services of a mortgage broker in Leeds, is that nowadays people just seem to be so busy. It’s often easier to use a professional service, to take the stress off your shoulders.

This is especially beneficial for professional applicants who are dealing with customers of their own, perhaps not having the time to run through their process themselves.

Book Your Free Mortgage Appointment

If you would like to go direct, that is great! Generally though, whether a customer is a First-Time Buyer in Leeds, Self-Employed in Leeds, or looking to Remortgage in Leeds, they prefer to enlist the services of an expert mortgage broker in Leeds.

Book your free mortgage appointment today with a fast & friendly mortgage broker in Leeds and we will see how we can help you along your mortgage journey.

What is a Property Survey?

Property Survey Mortgage Advice in Leeds

So, you have had your offer accepted on a property but, is the house actually worth what you said you would pay for it?

If you are wanting to know what the actual value is and the property’s overall condition, a property survey can help with this.

This survey will mention any significant repairs or alterations needed, like repairing the roof.

Different types of property survey

There are a plethora of survey options available, however, the most common types include mortgage valuations, homebuyer’s report and a full structural survey. You might find the survey is free of charge, however, this depends on the lender. For more information on the different types of surveys, check out the content below.

The surveys differ depending on the outcomes on the report. For example, you may receive a report that is more detailed and thorough, whereas you might get one that only mentions certain aspects. The more in-depth a survey is, the more it will cost.

Navigating your way through the process can be daunting and you might want to choose the cheaper option. As much as this will save you money at the time, it may not be worth it in the future and become far more expensive.

In the event that you find something on your survey about your property that you weren’t notified about, by law, you can approach the seller and negotiate a fairer price.

Mortgage Valuation

The most basic property survey is Mortgage Valuations. You usually have this carried out on when you are working out how much a property is worth. This is helpful to the lender as they need to be sure that the property price matches the amount you are set to borrow from them.

For instance, if you put an offer above the property’s actual value, the seller will likely accept your offer but, your lender won’t. Unless you have the funds to make up the difference, the lender will pull out of the deal which is known as down valuation.

The one drawback with this survey is that it doesn’t highlight any apparent repairs and damages. On the other hand, it can let you know of any obvious structural defects that will require a further look at. If you are looking for a more in-depth property investigation, you will need to pay extra to upgrade your survey. This could be worth it in the long run.

Homebuyer’s Report

A Homebuyers Report looks at safety. It checks out how safe the property is and if it is suitable to live in. Surveyors will want to know of any mould problems, damp issues or something that does not pass the current building laws.

The report will be carried out by a property expert. They will examine the property from to bottom to see if it’s safe for you to move into.

Full Structural Survey

You might have made an offer on an older building. As a Mortgage Broker in Leeds, we would strongly advise that you undergo a Full Structural Survey.

With the whole property being surveyed, this does make this survey type the most expensive one. This property survey will provide a lot more detail compared to the three primary surveys with showing what condition the property is in and the changes that will need to made if the property price goes through.

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

It can take a surveyor as long as a whole day to carry out a Full Structural Survey, however, this does depend on the property size.

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

When it comes to new build properties, surveys work a bit differently. There is a property survey designed for new builds called a Snagging Survey. This will inform you of any minor and significant issues. The issues could range from a crack in the ceiling to a missing hinge on the door.

The new build might be built and ready for you to move into which, in this case, means you would want to look at getting a snagging survey carried out prior to moving in. By doing this, you are able to negotiate the price if there is anything wrong with the property.

Mortgage Advice in Leeds

If you are wondering which survey is the best one for you, please don’t hesitate to get in contact with our team. We have extensive experience helping many First Time Buyers in Leeds and people looking to Move Home in Leeds find the most appropriate property surveys.

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

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

Credit Score Mortgage Advice in Leeds

Over the years as a Mortgage Broker in Leeds, we have found an increase in people paying a lot more attention to their credit rating. As a result of this, we have found that many people who get in touch with our team have already researched online to find a copy of their credit report.

There are many different credit reference agencies to choose from, but the two most popular companies you may know are Experian and Equifax.

Our team highly recommend that new customers who contact us look to use Check My File. By doing this, you’ll find a report that offers customers a collation of information from various sources (the aforementioned two included) in an easy understandable colour-coded report.

You sign up for a 30-day free trial with Check My File and after the 30 days, you will be charged £14.99 a month. This can be cancelled at any time before the end of those 30 days.

When dealing with customers, our Mortgage Advisors in Leeds are often asked if they will be doing a credit search on them. This is usually a customer who knows that too many searches can negatively impact their credit score.

Our mortgage advisors will always get permission for the customer to run a credit check, whereas the lender will run their own checks. There are two types of credit searches, one is hard searches and the other is soft searches. Below we will explain the difference between the two as well as how they can help.

What is a hard credit search for a mortgage?

A hard credit search is a type of credit check that provides an in-depth look at your credit report. All financial institutions that carry out one of these will need to seek your permission before undertaking this check.

One of the benefits of a ‘hard’ search would be how detailed it goes. Having this carried out and passing it can increase the chance of you being successful with a mortgage, however, this is not always guaranteed).

After passing this, the only thing that could go wrong with your mortgage process is if you cannot provide the required documentation to back up the information that you have presented to the lender, or it turns out you have provided incorrect information altogether.

Another advantage to having a hard credit search carried out will leave a ‘footprint’ on your credit file meaning that anyone looking at your report can see that this search has already been done on your file.

Having this mark on your file is not a bad thing at all, however, if your credit file shows that there have been multiple searches carried out in a short period of time. By having these displayed, it could give the impression to the mortgage lender that you are applying for lots of credit at the same time which wouldn’t work in your favour.

An important point you need to know about the ‘footprint’ is that it will not leave a note to confirm whether or not your application was successful. Therefore, having several searches highlighted on your report can result in the lenders’ systems assuming wrongly that you are being declined regularly. Think about it; why would you apply for credit with a second lender, unless you’d been declined by the first?

If you have the occasional hard footprint on your record it’s not going to be a massive issue which is why you don’t need to worry about it too much. It’s best to be careful not to have too many of these taken out.

What is a soft credit search?

The other type is a soft credit search. Opposite to a hard credit search, this would be a more straightforward approach by looking at your financial situation. These are normally done through price comparison websites, so you can find out what options may be on offer for you.

Another way it can be used is to verify your identity. Some mortgage lenders will carry out soft searches of their own. It can be common to find these days that even more lenders are changing to this type of credit search.

Even though the one drawback of a soft search is that you will get less information out of it in comparison to a hard search, if you managed to obtain an Agreement in Principle from a lender, this still can be a positive indicator that your application will be accepted.

The one factor that makes soft searches appealing to customers is that you are able to see soft searches that others have carried out on you (many are often surprised by how many have been carried out on them), but these searches will not be visible to other financial institutions like a bank or lender.

Because of this, you will be able to apply for an Agreement in Principle ahead of a mortgage in Leeds, without causing any damage to your credit score, whether you are successful or not.

In the case where you are a First Time Buyer in Leeds looking at making any offers on a property, our expert Mortgage Advisors in Leeds would highly recommend you get a mortgage Agreement in Principle before getting in touch with an estate agent.

It can be ideal to give yourself the best possible chance of securing your dream property at the lowest possible price. Therefore if you present yourselves as having your finances organised, it’s likely you will give yourself the upper hand in your mortgage situation.

Having an Agreement in Principle to hand can also help stop an estate agent from trying to cross-sell any of their own mortgage products to you.

Mortgage Advice for Divorce & Separation in Leeds

Specialist Mortgage Advice in Leeds

It can be a very difficult time when you have to close the door to a relationship. Moving on, trying to arrange finances and finding where you’re going to live can be very stressful. Your financial commitments to one another must be attended to first. This may not go as smoothly as you would hope and you may encounter some bumps along the way.

Our job is to help you through the financial hardship that you and your ex-partner are facing, in particular, the mortgage side of things. We have a history of helping applicants in this situation and experience helping customers in other specialist situations such as debt consolidation, equity release and buy to let investments.

As a Mortgage Broker in Leeds, we are often able to help applicants going through a divorce or separation. Here are the most common questions asked by customers when it comes to Divorce & Separation Mortgage Advice in Leeds:

• How do I remove my ex-husband/wife from my mortgage?
• How do I remove my name from my ex-partner’s mortgage?
• Can I have 2 mortgages?
  
  

How do I remove my ex-partner from my mortgage in Leeds?

If there are children involved in this situation, it is usually the mother who stays inside of the property; this isn’t always the case though. Regardless of gender, it will be the same process for you if you want to remove your ex’s name from the mortgage.

Once you have decided that you are going to be the applicant to remain living inside the property, you will need to try and remove your ex-partner’s name from the mortgage. This is where you and your ex-partner will need to prove that they’re financially stable with their sole income alone. This can be demonstrated in different ways; measuring affordability, costs of living, and eligibility.

If you manage to remove their name from the mortgage and you have demonstrated that you are able to meet your repayments without your ex’s contribution, if by any chance you fail to meet a payment, they can chase your ex for the money. This is because, at the time of taking out the mortgage, you were registered as a second applicant so they can legally still ask for the money from you.

If you cannot demonstrate that you are able to afford your mortgage repayments on your own, then you may need to ask a family member to help out, or in some cases, an applicant will already have another person ready to move in.

It also makes no difference if you and your ex-partner create a verbal agreement that one party will not contribute towards any payments. Until you have successfully removed the name from the mortgage, that party will still remain liable for any payments, should the balance fall into arrears.

How do I remove my name mortgage in Leeds?

The process works exactly the same, however, you are trying to move out of the property and take your name off the mortgage. A recurring problem here is that the applicant remaining inside of the property could refuse to have your name taken from the mortgage. This could mean that you are still liable for any outstanding repayments that are not met by your ex-partner.

We deal with customers in both scenarios in Leeds, and most of the time it can be a complex and difficult situation, as it’s not that easy to remove a name from a mortgage. It also means trying to get a mortgage of your own as a sole name applicant or trying to get a mortgage still linked to another one. Even though you may not be paying anything towards the repayments, it doesn’t mean that you are not responsible.

Can I have two mortgages?

If your name is still on your ex-partner’s mortgage, you may be asking the question “can I get two mortgages”. The simple answer is yes, however, it is down to your current financial and personal situation.

If you are still financially linked with your partner, your Mortgage Broker in Leeds or lender will assess this situation and be able to determine whether you can afford to be linked with two sets of repayments. Lenders always check ongoing financial commitments, which can include the mortgage payment you currently hold with your ex and any additional commitments you have, such as car payments, phone bills and more.

Mortgage Advice in Leeds

Our Mortgage Advisors in Leeds will try their best to help you in your situation. We know that not every scenario is the same, therefore, we will make sure that we are fully aware of the full picture before continuing.

Don’t be ashamed of getting Specialist Mortgage Advice in Leeds, we can work out how much you are able to borrow by checking your affordability and then take a look at some potential deals that could be perfect for you. If we work out your budget, you will be able to get an idea of where you stand.

Moving on from previous joint financial commitments can be difficult, and that is why we want to take the stress away and offer a helping hand. Remember that as far as lenders are concerned, it’s all about the risk. They would prefer to avoid repossession situations at all costs.

How to Improve Your Credit Score in Leeds

What is a credit score?

Lenders use a credit score to help determine whether you qualify for a mortgage loan or any form of credit. Using your credit report and any other details you provided during your application, lenders use a mathematical model to establish a numerical score representing your credit history.

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+. Your credit score represents what kind of borrower you are and how likely you will manage your repayments.

Credit score criteria

• 300-580 – A score within this range is considered poor. Having a credit score like this can lower your chances of being accepted by your lender. You may also be limited to specialist products and have to put down a higher deposit.

• 580-670 – This is a fair credit score. Your lender may be more lenient with you and your application with a score like this.

• 670-740 – You have a good credit score if you fit in this range, and your chances of being accepted will be higher. Most applicants usually have a credit score around this number.

• 740-800 – This is a very good credit score. Having a credit score between this range can increase your chances of being accepted for a mortgage and likely open you to more competitive rates.

• 800+ – If you have a score greater than 800, it is an excellent score. Your score is considered well above the average.

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 greater than ‘good’, it’s likely that you’ll be able to access more competitive products.

How a Mortgage Advisor in Leeds Can Help

As an experienced mortgage broker in Leeds, we handle specialist cases every day. We often 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. To speak with a mortgage advisor, book your free mortgage appointment online or give us a call

Reasons Why Your Credit Score Might Drop

There are many different reasons you could have a low credit score. For example, 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 six years or more, and that’s why it’s so vital that you try and get the CCJ removed from your file before 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 CCJ’s, failing to stick to credit agreements can 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 adverse effect.

These are just a few examples of things that can negatively affect your credit score. Of course, there are many other reasons you may have bad credit, and some are 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 in Leeds

Improving your credit score, exceptionally when low, can sometimes be challenging. 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 its 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 many different products, you could try shopping around for mortgage deals that will fit your situation and credit score.

Avoid Unnecessary Credit Searches

You’ll have a soft or hard credit search performed on you whenever you go directly to a lender, and their in-house mortgage advisor puts you through for a deal. This search will imprint your credit file, and other lenders will be able to see the search. 

If your application gets declined, the credit search on your file may harm your credit file, which is why we recommend keeping the number of searches performed to a minimum.

As an expert mortgage broker in Leeds, we can help. Our team of experts will look at your credit score and only look for products with criteria that we know you’ll pass.

Avoid credit applications

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 poorly on your credit file.

In some cases, as long as you pay it off, borrowing credit can help improve your credit score, as this shows that you are a reliable applicant who meets their payment deadlines.

Check That You’re On The Voter’s Roll

An easy way to help improve your credit score is to get yourself registered onto the voter’s roll (if you aren’t already).

If you aren’t registered, 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 address listed on the system.

During the mortgage application process, you should ensure that all of your information gets filled out correctly and double-check that you’ve not got an old address listed anywhere.

Don’t Run Close to Your Maximum Limit

Maxing out your credit card(s) each month can heavily impact your credit score negatively. Of course, paying off your credit cards each month will help and may give your credit score a slight boost.

If you are exceeding credit card limits and constantly dipping in and out of your overdraft, they may feel as if you don’t take your finances seriously and are an unreliable applicant.

Remove Financial Links To Others

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, you should try and get your financial links removed from them if they are harming your credit score. 

The only way to do this is to contact your credit reference agencies and request.

Is it all about your credit score?

It’s up to your lender to decide whether they feel like you are the type of person they want to be lending. 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 vast panel of 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 and Home Movers in Leeds, feel free to get in touch today.

Mortgage Advice in Leeds for Newly Qualified Teachers

Newly Qualified Teacher Mortgage Advice in Leeds

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

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

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

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

Newly Qualified Teacher Mortgages

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

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

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

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

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

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

What mortgages for NQTs may be available?

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

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

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

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

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

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

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

How a Mortgage Advisor in Leeds may Help

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

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

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

A Guide to Remortgages in Leeds: Top Reasons to Consider

Remortgage Broker in Leeds

Your mortgage journey can be a fruitful one for many. If you are able to proceed, though there may be ups and downs, you will inevitably always end up with one of a few potential outcomes.

Those outcomes are either a home for you to settle down in, a starter property to later push you up the property ladder or an investment property with a view to provide you with an additional income.

Regardless of the route of which you took, you will eventually find yourself at a point where you need to consider what to do next. A selection of homeowners will sell their home to upsize or downsize into a new home.

Other property owners may instead sell their portfolio to either a tenant or another property buyer. The most common occurrence we see, however, is people looking to remortgage their home or property.

What is a remortgage?

The first step here is to review what a remortgage actually is. In the simplest way to describe it, a remortgage is the process of replacing your current mortgage with a new mortgage, for a desired purpose. These range from smaller options to larger ones.

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

Remortgage for Better Interest Rates

When you start your mortgage deal, you’ll more than likely choose to run for 2-5 years, with low fixed rates and the rates potentially discounted. From time to time though, you could find yourself on a tracker mortgage, with interest following the Bank of England base rate.

Once your deal has ended, it is very likely you will find yourself on the mortgage lenders Standard Variable Rate (SVR). An SVR is a type of mortgage that has an interest rate set by the mortgage lender. This can fluctuate at any time, depending on what they want to charge for it.

Because an SVR will not be following the BoE base rate and are set at mortgage lender discretion, they tend to be much more expensive and can lead to many customers remortgaging to find a better rate of interest. Hopefully, this will save you money down the line.

Remortgage for Home Improvements

Once you have gotten to the point of being around 2-5 years into your home owning journey, you may feel like you want a change. Perhaps you need more space, an extra bedroom, a kitchen refurbishment, a room or loft conversion.

Rather than finding a much bigger home to move into, many homeowners will look instead at releasing some of their equity that is in their home, through a remortgage, as a means to cover the costs of the home improvements they intend to make.

Obtaining planning permission and both funding and managing your own project can sometimes be a little stressful, though some would debate that it’s less stressful than selling a home, buying a new one and moving everything you own.

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 the value of the property, which is useful if you ever decide you want to sell your property or let it out instead.

Remortgage for Changes to Your Term

Sometimes you’ll find that people are looking to remortgage in Leeds as a means of gaining access to a better mortgage term, whether they want to reduce the length of the term they have or perhaps switch onto one that is more flexible.

By reducing the length of your term, you won’t be paying back your mortgage for as long, though it will more than likely mean that your monthly mortgage repayments will go up. The longer your term, the lower your mortgage payments will be.

A lot of homeowners choose to take out a more flexible mortgage term when they look to remortgage. They may do this due to the amount of benefits that are present for these types of mortgages and their holders.

In having this mortgage, you may be able to overpay, meaning you could pay your mortgage off much quicker, as well as being able to take the same mortgage and rates with you across to another property, if moving ever becomes something you’d like to achieve.

Though flexible mortgages seem perfect to some, they also 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 can be a little unreliable for some people.

Remortgage to Release Equity

Every homeowner has some level 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 valued at.

As we have said, 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.

From time to time we even see buy to let landlords using a remortgage to release equity as a way to cover their deposit for buying any future property portfolio additions they wish to own.

If you are aged 55+ and own a home that is valued at a minimum of £70,000, it may be worth your time looking at your options for equity release in Leeds. Book online and speak with a qualified later life mortgage advisor to learn more about later life mortgages.

Remortgage to Consolidate Debt

On the topic of releasing equity, we also find that there are a lot of people who will pay off any unsecured debts that you may have gathered against your name over time.

Though it can seem initially like a really simple process, debt consolidation will not only factor how much you owe, but the value of your property and also your credit rating. This means that you might not be able to borrow as much as you would like.

Additionally, 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 incredibly high. Though it isn’t the best of options, at least you know there is something you could do, should these problems arise.

If you have a damaged credit rating, there are still a selection of options out there for you, though these aren’t easy and more often than not, require very specialist remortgage advice in Leeds before you proceed. Even with those options, nobody is guaranteed to successfully obtain a mortgage.

You should think carefully before securing other debts against your home. By adding your unsecured debts to your mortgage, which is secured on your home, you are potentially putting your home at risk if you cannot make the required repayments.

Although the total monthly cost of servicing your debt may have reduced, the total cost of repayment may still have risen as the term of your mortgage is longer than it may have taken to repay the debts originally.

Book a Free Mortgage Appointment in Leeds

If your mortgage deal is reaching its conclusion and you would like to understand your options more in-depth regarding a remortgage in Leeds, book your free mortgage appointment and speak with an expert mortgage broker in Leeds today.

A trusted and experienced mortgage advisor in Leeds will review your situation and what else you would like to achieve in the future, as a means of determining the next step of your home owning journey. This time around, we aim to make your process go quicker and smoother than the first time.

Can I Port My Mortgage to a New Property in Leeds?

Porting a Mortgage in Leeds

Porting a mortgage takes place when you are looking to move home at the time of your fixed-rate deal. It’s actually possible as a homeowner to transfer your mortgage product and you will potentially have the option to port your mortgage if necessary.

Instead of paying the early repayment charge (ERC), the lender might give you the option to pick up the remaining amount on your current mortgage and move into the property. This option is not available to all applicants moving home as it depends on where you’re looking to move and if the lender will let you proceed with porting the mortgage.

Taking out a Second Charge mortgage can be an option if the property is valued more than what you will be paying back. If you are wanting more information about this, check out our MoneymanTV YouTube channel with our video: What is a Second Charge Mortgage?

Are all Mortgages Portable?

You may find that not all mortgages are portable, especially if you are with a specialist lender as the option to port may not available to you. To find out if you can port your mortgage or not, contact your lender who can confirm this for you.

Should I port my Mortgage?

Despite porting be an option for some customers, many decide not to. The reason for this might be that your lender will not lend you extra money so you can move. If you are provided with additional funds, this will be at a separate rate from the one on your current deal. You might turn down the new deal you have been offered and decide to take the early repayment charge and go to a different lender.

What is a Sub Account?

When you port your mortgage, a sub-account on your mortgage is created. The additional funds will go onto a different deal to the one you have on your current mortgage. Regardless of you having one mortgage and one direct debit, two different rates of interest will apply to each.

The annoyance that can come with having sub-accounts is that down the line you may the different products will overlap. Aligning the accounts could mean that one of the sub-accounts will have to go onto the lenders’ standard variable rate for a certain period of time.

Here at Leedsmoneyman, we can offer mortgage advice when it comes to porting mortgages. Therefore, if you are moving house in Leeds and dealing with a buy to let mortgage or you are in need of support with a self employed mortgage, booking a free appointment with one of our dedicated mortgage advisors can help explore your options.

Leeds Mortgage Advice on Porting a Mortgage

Pension Advice in Leeds

Providing advice for customers with pension enquiries

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.

Pension Health Check

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.

Getting all your pensions with one provider 

The following could possibly be happening without your knowledge if you haven’t had your pension review in a while;

• The plans you have set in place are in funds that maybe could be performing better or the subject to expensive charges which will affect the total amount you’ll receive in retirement.
• For ease, often customers like the idea of having all their pension plans with one provider. Is easier to track this way.

Before considering a pension transfer, seek advice from an experienced and qualified pension advisor in Leeds who will make a personalised recommendation. 

At retirement advice 

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.

Mortgage Advice in Leeds

Have You Been Declined For a Mortgage in Leeds?

Specialist mortgage advice in Leeds

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.

Failing a credit score

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!

Improving your credit score in Leeds

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“.

Declined for a Mortgage on Affordability

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.

Outside of lending policy

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:

• Length of time in employment or self-employment.
• Adverse credit history
• Not enough deposit
• Non-standard property construction
• A married applicant applying for a sole mortgage
• Minimum/maximum age or mortgage term
• Minimum/maximum loan amount

Mortgage Broker in Leeds

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!