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In the early part of the last decade, the UK government launched the Help to Buy initiative. This was an expansion on their previous FirstBuy Scheme, aiming to assist potential homeowners, particularly first-time buyers, to step onto the property ladder. Over the years, some of these schemes have ceased to exist, while others have persisted without the Help to Buy moniker. The best-known and most frequently used one was the Help to Buy Equity Loan Scheme, which stopped accepting new applications at the end of 2022.
This implies that first-time buyers can no longer use Help to Buy in Leeds or elsewhere in the UK, but this doesn’t mean they’re left without any avenues to homeownership. Other well-designed schemes are still available to assist potential home buyers in Leeds!
The forces help to buy schemes in Leeds was initiated to enable regular personnel of the armed forces to become homeowners. With a significant number of these men and women finding it challenging to secure a mortgage, this initiative was unveiled. It began as a trial program, but due to its successful reception and usefulness, the government decided to permanently implement it.
Eligible borrowers under this scheme can get up to 50% of their yearly salary, capped at £25,000. This borrowed amount can be used towards the deposit or other fees associated with buying a house, for example, solicitor’s and estate agent’s fees. The application process can be done through the Joint Personnel Administration System, or with the aid of a mortgage advisor in Leeds.
As a mortgage broker in Leeds, we’re here to clarify the intricacies of this scheme and help you determine your eligibility. Let us handle the details for a worry-free and straightforward mortgage experience.
With shared ownership, buyers can own a portion of a property, with a housing association owning the remaining percentage. This implies that you will be paying a mortgage based on the percentage you own, and rent on the housing association’s ownership share. Typically the property percentage share to be purchased lies between 25%-75%, though exceptions can be made.
With time, should your financial capability increase, or after you’ve paid off your share, you can decide to purchase the rest of the property if the housing association allows it.
Although it isn’t prominently mentioned in the mortgage market, the Lifetime ISA (Individual Savings Account) scheme greatly contributes to getting first time buyers in Leeds to own homes. It is often confused with the already expired Help to Buy ISA, hence, the underutilization of the scheme.
The Lifetime ISA in Leeds allows you to save for either your first home or for later life. The account lets you save money in an interest-free savings account, with the government adding a 25% top-up for the amount you’ve saved each year.
To access your savings for a property purchase, you must have operated the Lifetime ISA for a minimum of 12 months. There are also penalties for unauthorized withdrawals, usually ranging between 20-25% of the saved amount.
The Shared Ownership Scheme stands as a government-initiated mortgage programme in the UK, designed to help individuals in taking their first steps onto the property ladder.
It caters to permanent UK residents falling into the category of either first-time buyers or previous homeowners struggling to acquire a new property.
In addition, your household income must not exceed £80,000, and the property you aim to purchase will predominantly be on a leasehold basis. Leasehold signifies that you’ll possess the property for a predetermined duration.
Through Shared Ownership in Leeds, you can secure your home through a combination of a mortgage and rental payments. The total of your rental payments will usually be lower than your mortgage payments.
Initially, when Shared Ownership was introduced, the minimum share you could own was 25%. Now, this has been brought down to 10% for some properties.
Homeowners have the option to increase the percentage share they own through a process called staircasing. This is typically done at the point of remortgage or when the homeowners have paid off the mortgage on the share they own.
If you decide to increase your shares, you can now purchase them in 1% instalments, a change from the previous 5-10% increments.
Moreover, the charges for increasing your extra shares have been lowered. Additionally, your landlord will cover the maintenance and repair expenses for the first decade of ownership.
The rules governing your Shared Ownership in Leeds may vary depending on when you originally took out the mortgage. As a mortgage broker in Leeds, we recommend double-checking the rules of Shared Ownership to ensure compliance.
Feel free to drop a message to our mortgage advisors in Leeds if you are uncertain about how your property is affected.
Qualifying for the Shared Ownership scheme in Leeds is the first step to access its benefits. The scheme is not universally applicable, so ensuring it aligns with your needs is important before applying.
To determine your eligibility for the Shared Ownership scheme in Leeds, reach out to an agent in the area you are looking to purchase.
Provide them with information such as your income, budget, location preferences, and credit history. Once eligibility is confirmed, the next step is to prepare your mortgage application.
Engaging a mortgage broker in Leeds, like us, is a wise move at this stage. Not every mortgage lender supports Shared Ownership mortgages, but a mortgage broker has access to thousands of deals through various lenders.
Like every scheme, Shared Ownership in Leeds comes with its own set of advantages and disadvantages.
First time buyers in Leeds often grapple with the challenge of saving for a mortgage deposit. However, the Shared Ownership scheme typically demands a deposit only for the percentage of the property you own.
For instance, if you’re securing a mortgage for 20% of a £200,000 property (£40,000 mortgage) and are required to put down a 10% deposit, you’ll only need a £4,000 deposit.
Numerous mortgage lenders, including those on our panel, offer Shared Ownership mortgage products. This scheme has gained popularity in recent years, with first-time buyers choosing it to step onto the property ladder.
Shared Ownership Mortgages provide enduring stability as you become both an owner and occupant simultaneously. The opportunity to purchase your property in the future may be available, depending on your aspirations.
However, before opting for a Shared Ownership mortgage in Leeds, ensure this option aligns with your future plans, as some building societies may have restrictions. Your ability to purchase the property in the future will be outlined in your contract.
Secure tenure is a notable advantage, providing stability compared to the uncertainty of the private market. As long as you can meet your monthly mortgage payments, you can reside in your home for the duration of your lease, typically ranging from 99 to 125 years.
While there are numerous advantages to Shared Ownership, it’s essential to consider the drawbacks. You will be responsible for 100% of the ground rent and service charges for your property, regardless of the size of your purchased share.
As your home is co-owned, seeking approval from the relevant housing provider before making structural alterations is mandatory. This requirement may limit the sense of complete ownership freedom you’d typically expect.
If, after living in your Shared Ownership property in Leeds for a while, you decide to move, the process differs from most other mortgage types. Selling your home depends on the percentage of the property you own, typically requiring 100% ownership shares before selling.
It’s key to note that the housing association retains ‘first refusal’ rights for the initial 21 years after your home purchase. This grants them the opportunity to present a purchase offer before considering selling on the open market.
If you don’t own 100% of the property, your initial step is to try and purchase the remaining shares before selling.
Shared Ownership may not suit everyone. As a mortgage broker in Leeds, we often find that sole applicants and those struggling to save for a deposit benefit the most from the scheme.
Qualifying for Shared Ownership in Leeds involves meeting specific criteria. To determine your eligibility, reach out to our mortgage advisors in Leeds, and we can assess your circumstances.
To connect with the team, either give us a call or book a free mortgage appointment online. We’re here to provide help and make your Shared Ownership process stress-free!
Purchasing a property is a significant financial commitment, likely the most substantial one you’ll make in your life. Understandably, you may have numerous questions about the mortgage process.
As a mortgage broker in Leeds, we’ve helped a diverse range of buyers, and a common inquiry we come across is, “how long does mortgage approval take?” If you’re a first time buyer in Leeds grappling with questions like these, seeking expert mortgage advice in Leeds is important.
However, it’s important to note that not every question has a straightforward answer, especially when it comes to timelines, as it hinges on individual personal and financial situations.
Assuming you have a clean credit history, mortgage approval could take around 2-3 weeks. This timeframe is just an illustrative example; the actual duration may vary. Approval processes may extend if there are current or past credit issues.
In such cases, the mortgage lender meticulously examines your credit file to assess your reliability as a mortgage applicant. For those with adverse credit or a history of credit problems, the approval process might span several months.
It’s imperative to understand that there’s no fixed timeframe for mortgage approval; it is contingent on both the mortgage lender’s policies and your unique financial circumstances.
Securing mortgage approval today is a more intricate process compared to the days before the credit crunch. The days of mortgages being easily accessible are gone.
The current process is meticulous and time-consuming, aiming to gain a comprehensive understanding of your personal and financial situation.
Mortgage lenders delve into various aspects, including your credit, income (including occupation), and outgoings (examined through bank statements) to gauge your suitability for a mortgage.
This thorough evaluation is essential for lenders to determine the level of risk involved. It’s vital to bear in mind that you are just one of many applicants in the process.
As a mortgage broker in Leeds, our approach involves structured stages that guide you through the mortgage application process.
The goal is to make your mortgage journey stress-free, allowing you to focus on finding your dream property in Leeds while we handle the intricacies of the mortgage side.
Initiating your mortgage process is easy; simply book a free mortgage appointment with one of our mortgage advisors in Leeds. This can be done online by selecting a suitable date and time or by contacting our team directly.
With appointments available seven days a week, you can choose a time that suits your schedule. During the appointment, which typically lasts 30-45 minutes, your mortgage advisor in Leeds will gather essential information to understand your goals and guide you along your mortgage journey.
Following your mortgage appointment, your mortgage advisor in Leeds will provide an important document – the mortgage agreement in principle (AIP). This document is indispensable when making an offer on a property.
It serves as proof to the estate agency that you’ve received pre-approval from a mortgage lender. If you’ve already identified your dream property, we can swiftly proceed to the next step.
Once your offer on the property is accepted, we’ll align it with the ideal mortgage deal from our extensive panel of lenders, encompassing both high street and specialist products.
The details of this tailored mortgage deal will be presented in a comprehensive mortgage illustration document, providing you with all the essential information.
If you’re satisfied with our service and the identified mortgage product, it’s time to initiate your mortgage application. Preparing this application involves attaching several documents to demonstrate your affordability for a mortgage.
Rest assured, we’ll help you in gathering all the necessary paperwork to ensure your application is complete. Upon readiness, we’ll submit your application to the mortgage lender.
Once your mortgage application is submitted, it’s now in the hands of the mortgage lender. Importantly, we’ll never propose a mortgage product that is likely to be declined. The lender will scrutinise the attached documents to verify your mortgage affordability.
They’ll also verify your ID and current registered address, and scrutinise the source of your deposit. If your deposit is a gifted one, the lender will require the last 3 months’ bank statements from the donor and a signed gifted deposit form.
Distinct from a house survey, a mortgage valuation survey entails the lender sending a property surveyor to assess the actual value of the property you intend to purchase. Different property surveys are available in Leeds, each suitable for different property types.
Your mortgage advisor in Leeds will recommend the appropriate survey for your situation. The purpose of the survey is to ensure the property’s value aligns with your offer. This step safeguards the lender in case of repossession, assuring they can recover their funds by selling your home.
As long as you consistently meet your monthly repayments, there’s no need to worry about losing your home.
After the lender completes their checks, successful applicants should receive formal mortgage approval. Your mortgage advisor in Leeds will promptly share this positive news with you.
Subsequently, you’ll be handed over to the solicitors to finalise the legalities, exchange contracts, and prepare for key collection.
Whether you’re a first time buyer in Leeds, looking to move, remortgage in Leeds, or invest in a buy to let property, understanding the mortgage process is key. As a mortgage broker in Leeds, we recommend commencing your mortgage process up to six months in advance.
This allows for the arrangement of your agreement in principle and early property searching within your budget. For instance, if you plan to move home in January, starting the process in the summer aligns with your timeline.
If you’ve had an offer accepted or are considering buying a property in Leeds, take action now! Book your free mortgage appointment online or by contacting our team today.
If you’re a first time buyer in Leeds who has managed to save up for a 5% deposit and are ready to start making offers on properties. However, you are still being let down and being asked for a larger deposit. Not being enough to save for a lerger deposit could be down to anything, e.g., sellers’ preference, other competition or your credit history.
From in-depth discussions about utilising the government schemes to simple points such as saving more money and waiting, here are some ways that can help you obtain a mortgage with a small deposit.
Taking advantage of government schemes can really help you through your mortgage journey. There are lots of schemes available that come under the ‘Own Your Home’ umbrella. These schemes were designed to allow opportunities for first time buyers and home movers to get themselves onto the property ladder.
The Shared Ownership scheme is very different. Shared Ownership lets you take a mortgage out on a percentage share of a property (usually between 25%-75%) and then pay the rest back via rent.
Since you are only taking out a mortgage on a smaller percentage of the property, your total deposit amount should be lower. Also, it’s worth knowing that you can increase the share of the property that you own further down the line if you want to. This can be a great stepping stone to get you onto the property ladder.
The scheme is a little complex in some cases. So, we’d recommend that you speak to a mortgage advisor in Leeds like us before diving headfirst into the scheme.
A Lifetime independent savings account should be introduced when you’re thinking of moving or buying your first home in Leeds.
This is because it’s a savings account where your money grows year on year interest-free. You can put as much money in it as you’d like each month, as long as it doesn’t exceed a total of more than £4,000 over the year. This is the maximum that you can save each year.
Each year, the government will top up what you’ve saved by 25%. So, if you save up to the maximum you will get an extra £1,000 for free. The savings from the account can be used for one of two things: buying your first home or saving for later in life.
If you set up a Lifetime ISA at the very start of saving for a deposit, you may only require a small deposit as the lifetime ISA can cover some of it for you!
If you’re currently living in a council house and planning to make an offer on the property, you may only be required to put down a small deposit, or in some cases not one at all.
This is because some lenders offer a right to buy in Leeds discount through the government since you’ve already been living in the property.
This government-led scheme allows you to get a mortgage with just a 5% deposit. Therefore, if you go down this route, there shouldn’t be many reasons why you’ll be declined.
Of course, getting a mortgage is not guaranteed in any way shape or form. You’ll still be required to pass credit checks, affordability assessments etc.
There are other ways besides using government schemes to get a mortgage with a smaller deposit.
An agreement in principle (AIP) or also known as a decision in principle (DIP), can boost your chances of getting a mortgage with a smaller deposit.
An AIP shows that a lender is willing to lend to you given that you can provide sufficient documentation to prove that you’ll be able to afford a mortgage. If you’re making an offer on a property, you may be putting yourself in front of someone who’s also put in an offer who doesn’t have an AIP in place.
In this situation, it’s not really about the deposit. The indication to the seller will be that they’ll be able to continue through the process quicker by choosing you. Either way, they’re selling their home, choosing you will just speed up their process!
An obvious alternative would be to carry on saving up. Even pushing back your home buying journey for a further 6 months could boost up the total amount of your mortgage deposit.
Your small deposit could become much bigger if you knuckle down and save for just a little longer, in fact, it could get you over the edge that you need.
If there aren’t that many houses on the market that are appealing to you, there’s even more of a reason to wait for a little longer.
Remember that the 5%-mark changes depending on the property. If you want to move into a larger home, you may need to save up more anyway.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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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.
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.
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.
After you’ve moved home, there’s always the situation of having to update your address on any account to match your new address, so that any posts, packages, and any other bits and pieces go to the right place. From your doctor’s surgery to any accounts that need an address, there’ll be plenty to work through.
We understand that missing an address can easily happen. When applying for credit, having less varied addresses on your accounts will look better on your credit score.
Because of the impact, it has on your credit score, this means it will also be beneficial for you when it comes to applying for a mortgage.
We tend to find first time buyers in Leeds, and home movers in Leeds would have a much better understanding of how credit scores work and the importance of updating their address sooner rather than later.
Whereas with other applicants have moved out of their family home and are now renting their own place. They don’t see the harm in leaving their bank statements, electoral roll information, and credit cards at their previous address. But having everything under the same address will give you an advantage during your mortgage process.
Every time you’ve moved house, there will be a record of it somewhere on your credit report. Any bills related to your name, like car insurance, any orders from places like eBay, Amazon, or even online food shops, will show up with a record of the selected address you choose.
If it looks like you are living in two places at once or have failed to disclose information to the mortgage lender, it may go against you during your mortgage process. After all, your mortgage lender needs to know you are reliable for a mortgage.
When looking to buy a new home, and applying for a mortgage, the best thing you can do is make sure all addresses under any account are up to date and accurate.
This includes checking all those shopping accounts, electoral roll, credit cards, and anything you can think of that has your address, are all up to date, and have the current address for you and your current home.
When it comes to updating your address to your new location on the electoral roll, make sure that you definitely get the right dates for when you moved in and out, as getting this wrong can also give off the impression that you are living in two places at once which may mess up your chance to vote.
Keeping all addresses up to date is a much more open and honest way of applying for a mortgage with a lender. Not only will it work in your favour, but it will make your process go a little bit easier.
As well as keeping your address up to date, there are other tips that could also be beneficial to first time buyers in Leeds, these tip can include.
Managing your bank accounts, avoid any unnecessary charges and limit any gambling transactions, (if that is something you do regularly). These can have a harmful effect on your mortgage process if you do the following too often.
Remember that your bank account will be a reflection of your ability to maintain payments, generate income and handle your finances appropriately. This is a large factor in determining whether or not you are able to get a mortgage.
A gifted deposit is a great way to help first time buyers in Leeds get onto the property ladder. A gifted deposit is where a close family member or friend, gifts a portion or the full amount of a deposit to a homebuyer. As the name suggests, a gifted deposit is purely to be a gift and not a loan to be repaid.
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We highly recommend that customers, whether new or existing, look to obtain an up to date credit report. Check My File can help pull together information from various sources, to get a more complete view of your financial state.
Taking out a mortgage will be one of the most significant financial commitments that you will ever make. You will want to get your dream property for the best deal you can get.
The good news is that you have the chance to plan ahead of other buyers to help improve your chances of getting your mortgage application accepted. – One of these examples will be having an Agreement in Principle before you start viewing properties.
You may come across a point where it is unlikely to plan for a mortgage, for example, if you and your partner decide to split up. It’s unfortunate when this happens. However, if you are in this situation, you may need to move from a joint to a sole name mortgage.
We recommend that all new customers start planning their mortgage for up to six months before you begin moving home in Leeds.
Preparing your application for all possible situations will prove beneficial further down the line. If you encounter a problem, in theory, you should be able to figure out what to do to resolve it.
Utilising over 20 years of experience within the sector have allowed us to come across various mortgage problems. When it comes to the end of the mortgage process, some hurdles could crop up, and our Mortgage Advisors in Leeds may be able to rectify them if you prepare right.
Here are some general hurdles our customers frequently come across.
With up to six months of preparation and planning, you may be able to avoid some of these problems.
Saving up for a deposit can be tricky, especially if you’re stuck renting. It can take some First Time Buyer in Leeds several years worth of savings to save for a deposit.
Location varied; some might find it challenging to save up for a ‘5% deposit’ as you don’t know the exact amount you need until you find a property you like. Each 5% total will vary from property to property.
Customers who struggle to meet that initial deposit total will often get help from their parents through a gifted deposit. A gifted deposit is an extra cash boost given to a homebuyer to help buy a property and can equate to some, or all, of their deposit.
Gifted deposits were given with the understanding that the money doesn’t need repaying.
Your credit score is fundamental when it comes to applying for a mortgage. Having a poor credit score can lower your chances of getting accepted for a mortgage. Of course, it depends on what is the cause for you having a low credit score.
If it is because of a CCJ or bankruptcy, your chances of being accepted can be lowered further, depending on how long ago these issues occurred.
If you want to look at your credit score, we recommend using Check my File. Check my File allows you to get a copy of your credit report, from there on you can establish whether you have any credit issues that might be flagged up or prevent you from borrowing from a lender. Once you have this, feel free to send it to us, and we will take a look at it free of charge.
During the approach to your mortgage application, you need to think about how you conduct your finances. Lenders will be carefully analysing your bank statements and will see everything that’s going in and out of there. An example to look out for would be gambling transactions.
Lenders aren’t keen if they see frequent and erratic gambling transactions on your bank statements. They will see gambling with large sums of money unreliable and possibly decline your application.
If you’ve been lucky enough to receive a gifted deposit, we advise keeping that sum of money in the gifter’s account.
Because your lender will see a large bank transfer into your account and ask questions, sometimes it’s better to leave the gifted deposit inside your family member’s or friend’s account.
Self employed applicants often have a hard time when it comes to getting a mortgage. Usually, this is because they are required to evidence more than a usual mortgage applicant.
You will have to submit at least one year of accounts’ and three months of bank statements to prove your income and affordability.
Depending on the lender, you may get asked to provide even more evidence if they are unsure of your affordability.
In situations you can’t prepare for, know that a Mortgage Broker in Leeds like us is here to help. Each person could counter all different kinds of mortgage hurdles and it’s our job to guide you through the entire pricess.
People who have encountered all different types of specialists and complex situations often come to us for expert Mortgage Advice in Leeds. We offer a helping hand and back you up during the entire process you don’t have to go through this process alone!
A 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.
Following on from the help to buy scheme in Leeds, many builders started selling houses on a leasehold basis when traditionally homes had always been sold on a freehold basis. Over time this became a hotly debated topic, of which the Government eventually felt the need to step in.
Some of the country’s home builders had fingers pointed at them for putting profits before their social conscience. Whilst they were aware that they needed to build homes for families, they also have to answer to the shareholders.
The media has been very vocal about the fact that there have been situations with land banking. Land banking is a property investment scheme that involves buying vast amounts of undeveloped land with a view to selling the land when it has been approved for development and is more profitable.
Thanks to consolidation, some builders have inherited land into their companies which is on a leasehold basis. Many debate that they should offer both leasehold and freehold properties for sale, so that buyers have the ability to choose the route they’d like to go down.
Many people felt that the market had been heading too far into the territory of leasehold, especially when it became public knowledge just how much profit the builders were making from their leases.
Things drastically changed, when the Chief Executive of one of the UK’s most noteworthy Builders received a bonus of over £100,000,000. At that particular time, this was one of the most significant premiums paid in the history of a corporation.
Some Leasehold Homeowners were shocked when they found themselves being quoted thousands of pounds in fees, even if it was only something like seeking permission to make small alterations to their homes.
These high end fees were being charged by their Leasehold Management Companies. Some of the annual ground rents were set to double every decade and owners could see that selling their home in the future once these increases have kicked in would be a very difficult process to undertake.
After homeowners notified their MP’s and the subject being heavily debated in Parliament, the Government agreed that if you were buying a house (flats or apartments excluded), then it is entirely reasonable that you should own the freehold.
If you happen to find yourself in this situation, owning a leasehold houses and you weren’t aware, then you absolutely should have been made aware.
If you feel that the Solicitor acting for you did not give you a more thorough and complete analysis of what the lease you signed entailed, you should re-contact them immediately to investigate why this was the case. You can contact the freeholder at any time if you are interested in buying the freehold from them.
The costs of the service charges may very well go up. Sometimes the residents in the area can group together to form an association, which can give them the collective freedom to choose a different service provider. If you are considering buying a leasehold property, take advice from your Solicitor regarding the lease.
It’s so very easy to get carried away with the excitement of purchasing a home, but you also need to realise it’s a significant investment decision and something that you need to think about very carefully.
If you would like advice regarding something like this, please do Get in Touch and we’ll see how we may be able to help you.
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Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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Leedsmoneyman.com & Leedsmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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