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Relocation to a new home is a significant decision that requires thoughtful consideration about your future objectives and possible changes over the next five to ten years. To guide you in making the most suitable selection, we have built a list of ten considerations to take into account when choosing the location for your next move.
Where you opt to live will largely depend on your personal circumstances. For instance, first time buyers in Leeds could be more inclined towards city living, whilst families and older folks might favour the tranquillity of a town, village, or rural home. Nevertheless, the ultimate choice remains in your hands.
Ease of transport is paramount in choosing a home. Commuters should evaluate the accessibility to major roads or motorways. Those depending on public transport may find city living more convenient. Always consider commuting costs and time, and consider walking or cycling to work if feasible.
For families, schools are a top priority when house-hunting. If your children are at school or college, you may grapple with the decision to maintain them in their current institution or move them closer to your new location. Your intended distance of relocation will influence this choice. If you’re planning a family, this factor should also be contemplated, as the proximity to schools will eventually become crucial.
Distinguishing between essentials and luxuries is important. While having a gym around the corner could be nice, more immediate needs like grocery shops should take precedence.
Moving away from friends and family can be difficult, particularly if you spend significant time with them. Many people move to be nearer to their loved ones, as having family and friends nearby can provide helpful support, such as childcare.
Getting good value for your money is essential when acquiring property. Check out prices of comparable properties on websites like Rightmove or Zoopla to gauge if you’re getting a deal. If you’re overpaying, the lender could devalue the property during the mortgage appraisal.
Some prefer vibrant communities with frequent events, while others are more inclined towards tranquillity. Facebook groups can give you a flavour of the local atmosphere.
A primary motivation for relocation is to adapt to new career paths. However, with an increasing option to telecommute, this factor may no longer hold as much weight.
Your preferred type and size of accommodation plays a significant role in the choice of location. You may find semi-detached or terraced houses in the city, with larger homes in the countryside. Family size, future plans, and financial situation are key influencers of this decision.
Before committing, it’s paramount to research if there are any planned local projects. Large-scale housing developments could disrupt your peaceful countryside life.
Our ultimate goal is to arm you with information to make the best decision on where to move. Once you’ve found your dream home in a desirable location and ready to proceed, our team of highly experienced mortgage advisors is here to guide you. Book a free mortgage appointment with one of our certified mortgage advisors in Leeds at your convenience online. We eagerly anticipate working with you on your home moving journey!
Let’s delve into the diverse world of mortgages for home buyers. The market offers a multitude of mortgage types, each possessing unique characteristics with accompanying advantages and drawbacks.
In this article, our focus centres on the tracker mortgage – examining its workings, potential benefits, and why it appeals to homebuyers.
It’s important to note that the suitability of a mortgage deal hinges on the specific circumstances it aligns with, making it essential to conduct thorough research and preparation beforehand.
As a trusted mortgage broker in Leeds with extensive experience, we consistently advocate for being well-prepared and seeking expert advice, especially for first time buyers exploring the property market in Leeds.
For further insights, you can explore our YouTube video on the same topic. Head over to our moneymanTV channel and watch “What is a Tracker Mortgage?” available on this page:
Now, let’s tackle the key question—what exactly is a tracker mortgage? When on a tracker mortgage, your interest rate mirrors the Bank of England’s base rate, with an additional percentage set by your lender.
It’s important to understand that your lender does not have control over this rate; it is externally determined and must be adhered to.
For instance, if the Bank of England’s base rate stands at 1%, your lender may add a fixed percentage, resulting in your interest rate consistently remaining slightly above the Bank of England’s rate.
The efficacy of a tracker mortgage is evident when the Bank of England’s rate is relatively low, typically hovering around 0-1%, subject to fluctuations throughout the year. Historical instances, such as the credit crunch in 2007-2008, saw the interest rate surge to around 5%.
Coupled with the lender’s added percentage, this could lead to a substantial 6% interest on monthly mortgage repayments.
Conversely, during the initial stages of the COVID-19 pandemic in March 2020, a significant drop in the Bank of England’s rate to 0.1% likely resulted in tracker mortgage holders enjoying a reduced 1.1% interest rate.
Securing a tracker mortgage during such periods, however, proves challenging, as lenders aim to strike a balance between profitability and risk.
The tracker mortgage’s appeal lies in its responsiveness to economic conditions. During periods of economic downturn with a high Bank of England rate, it may not be the most suitable option. Conversely, in a thriving economy with a low base rate, a tracker mortgage becomes an attractive choice.
Aspiring first time buyers in Leeds have a wide variety of mortgage options at their disposal. However, selecting the right one requires careful consideration of individual circumstances.
Before committing to any mortgage deal, seeking guidance from a trusted mortgage advisor in Leeds is highly recommended. They can navigate the market to identify the most competitive deals tailored to your specific financial situation.
For first time buyers in Leeds, our mortgage advice service proves invaluable. With over two decades of experience in the mortgage industry, we possess expert knowledge of various mortgage types, ensuring personalised guidance for those taking their first steps into homeownership.
Whether you’re a first time buyer, looking to remortgage, or planning to move home in Leeds, our dedicated and compassionate mortgage broker service accompanies you from the initial stages to the completion of your mortgage journey.
When applying for any form of financial assistance, a current credit report is a standard requirement. This report provides a comprehensive overview of your financial history and money management practices, distilled into a numerical credit score ranging from 0 to 1000.
As a mortgage broker in Leeds, our daily encounters reveal a spectrum of credit scores, with variations from low to high, dependent on individual financial circumstances. It’s rare to find two individuals with identical credit scores in a group of ten due to the personalised nature of these assessments.
Credit scores, ranging from poor to excellent, are typically defined by credit reference agencies like Experian, Equifax, and TransUnion. However, interpretations of a “good” credit score can vary among lenders, making it essential to consider individual perspectives.
The cornerstone of mortgage approval is reliability, and a commendable credit score significantly contributes to establishing your dependability in managing finances. However, it’s important to note that even an excellent credit score doesn’t guarantee mortgage approval.
Some lenders may offer exclusive products accessible only to those with a credit score surpassing 900, making professional advice from a mortgage broker in Leeds invaluable before pursuing such high-end options.
Possessing a low credit score doesn’t necessarily preclude you from securing a mortgage. While specialised deals with higher interest rates may be the route, the opportunity to obtain a mortgage remains. Individual circumstances play a key role, and each applicant’s situation is unique.
In some cases, it can be difficult to get a mortgage with bad credit in Leeds, if you are struggling to get accepted or find products you qualify for, make sure to get in touch with one of our advisors at Leedsmoneyman.
Younger mortgage applicants with lower credit scores, especially first time buyers in Leeds, may still find success, particularly when utilising government-led schemes like Shared Ownership.
Limited credit history may not be a hindrance, but instances of missed payments and defaults can impact mortgage eligibility. Seeking mortgage advice in Leeds before applying for various deals is prudent.
Defaults resulting from missed loan repayments can significantly impact credit scores, particularly when reaching a “poor” rating. A declined mortgage application and challenges in obtaining loans become likely in such cases.
Timely resolution of defaults or the issuance of a County Court Judgment (CCJ) as a last resort should be carefully managed. CCJs remain on credit files for six years, influencing lenders’ perceptions. Seeking advice from a mortgage broker in Leeds is advisable, especially when dealing with credit issues.
Remortgaging in Leeds with bad credit, even for homeowners, may present challenges due to the need for affordability assessments and credit score checks.
Individuals facing this situation might default to their lender’s standard variable rate of interest (SVR). Speaking with a specialist mortgage advisor in Leeds is recommended to explore potential solutions and specialist deals.
Lower credit scores may limit access to lower interest rates, typically reserved for those with “very good” to “excellent” credit. First time buyers in Leeds may still access favourable rates due to their limited credit history. Conversely, adverse credit, such as defaults or CCJs, often results in higher interest rates.
Higher deposits may be required to secure better rates, but bad credit can also necessitate a higher deposit to demonstrate reliability, potentially maintaining a higher interest rate.
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.
A mortgage in principle, also known as an agreement in principle (AIP), is a document given to you by your mortgage lender to show that you have passed their credit score to qualify for a mortgage. You may have also heard the term “decision in principle”, this is also the same thing.
Getting an agreement in principle can often help you negotiate the asking price with your seller. This is because the seller can see that you have the funds in place, have been preapproved by a mortgage lender and can continue immediately. Having an AIP and not having an AIP could be the difference between your offer getting accepted on a property and being rejected.
We find that our customers, particularly first time buyers in Leeds, are worried about their credit score having an impact on their ability to get a mortgage. Things such as credit searches may impact your credit score, and you will have to undergo one to obtain an agreement in principle.
However, you have to remember that a credit check will only have a negative impact on your credit score if something bad is found on your file. The severity depends on what the mortgage lender has found, for example, if you forgot to update your address for an old account, it won’t have too much of an impact on your credit score. On the other hand, if they find that you have large withstanding balances on your credit cards, you may see more of an impact.
As a mortgage broker in Leeds, when we arrange an agreement in principle on your behalf, we do not carry out any credit checks on you. We will, however, ask for your permission for the mortgage lender to carry one of these out on your credit file.
Credit searches come in two different forms; a soft credit search and a hard credit search.
Soft credit searches are not very in-depth and will only really look at your main information, such as employment, income, age etc. This is the type of search that price comparison sites use to verify that you are who you say that you are. More and more lenders are opting for this type of search nowadays when arranging an agreement in principle because they will likely perform a hard credit search on you further down the line.
Soft credit searches are hidden from your file, with only you being able to see that they have taken place. That means you can be unsuccessful in one instance and not worry too much about how it looks to others.
A hard credit search provides the mortgage lender with a much more in-depth look at your credit file. Any company that wants to perform a hard credit search on you must get your permission first before doing so. This is because they could have an impact on your credit score.
During a hard credit check, the mortgage lender will take a complete look at your financial circumstances. If you pass this check, you have much more chance of seeing mortgage success.
The downside to hard credit checks is that they will likely leave a credit footprint on your file. If someone looks at your file in the future, it will show that there has been a hard credit carried out. The outcome of the search will not show in your file, meaning that other financial institutions looking at this may be worried, especially if there are lots of them.
Mortgage lenders do not like seeing lots of different credit checks on your file, because it could suggest that you have been applying for lots of credit all at once. This is something that can put off a mortgage lender.
This isn’t to say that having a few will be drastically negative, you won’t need to worry a lot about this, it’s just always best to make sure you are cautious with it.
An AIP or mortgage in principle does not guarantee you a mortgage. Remember that you are being agreed in principle of being able to support your affordability. Mortgage lenders will require you to provide evidential documents such as your P60, bank statements, etc., to prove that you can afford the mortgage after you have an accepted offer.
If you are self employed in Leeds, the documents that you need to provide will be slightly different. It is always worth speaking with a mortgage advisor in Leeds to discuss your affordability for a self employed mortgage.
Yes, you can make an offer on a property in Leeds without an agreement in principle, however, we wouldn’t recommend it. The estate agent and the seller will want to make sure that the person making an offer on the property is serious about their purchase and has the ability to advance through to the sale of the property. If you do not have a mortgage in principle, you are not able to go straight to the next stage of the process, you haven’t even been agreed in principle as of yet.
As a mortgage broker in Leeds, we are able to arrange an agreement in principle for you within 24 hours of your free mortgage appointment.
Your agreement in principle will roughly last between 30 and 90 days. Once your AIP expires, it is a simple process to get it renewed.
All that you need to do is get back in touch with our mortgage advisors in Leeds, and we will arrange a new one with you straight away.
We always recommend getting an agreement in principle as early on in the process as possible. Even if you are thinking of moving house in Leeds, before you take up property viewings, make sure that you have your agreement in principle at the ready!
The earlier the better; having an AIP and not having an AIP could be the difference between your offer being accepted on a property and being declined.
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.
During the mortgage process, you will come across a “mortgage illustration”, but what is it? Although it can sound complicated, a mortgage illustration is simply a document that outlines every detail of your mortgage product.
As a mortgage broker in Leeds, we will be the ones who provide you with a mortgage illustration. The process works like so:
Your mortgage advisor in Leeds will run through all of this with you, so especially first time buyers in Leeds, don’t panic!
For a quick, simple explanation of “what is a mortgage illustration”, watch the video below. For more videos just like this, head to MoneymanTV on YouTube!
Your mortgage illustration highlights the main details of the product, the costs of taking out the product, your monthly repayments, legal fees and sometimes valuation fees.
Main details: The main details of your product include who you are taking out the product with, the length of your fixed term and the interest rate.
Costs of taking out a product: With most types of mortgages, you will be charged a fee for taking out the product, however, depending on the product, you may not be charged a fee. This will be outlined in your mortgage illustration.
Monthly repayments: Your monthly repayments are how much you will have to pay each month for your mortgage. These will be calculated by the total mortgage amount, interest rate and fixed-term.
Legal fees: Legal fees include the services of a solicitor. Your mortgage broker in Leeds will talk you through this and the other costs involved before handing you over to the solicitors.
Valuation fees: You will see details of property surveys and valuations fees inside of your mortgage illustration. These costs can change depending on the type of survey you choose to take out.
No, you do not. At this stage of the process, you have only been recommended a product, therefore, you are under no obligation to continue with it. In some rare cases, you may even want your mortgage advisor in Leeds to find you another deal.
If you choose to part with us and the deal, you will have to search elsewhere for another product.
Though we would like to, we would never guarantee someone a mortgage. A mortgage illustration is only an outline of your mortgage recommendation, therefore, you have not submitted your application yet and have not been approved by the lender.
Prior to receiving your mortgage illustration, you will have received an agreement in principle to show that a lender is willing to lend to you. This is not the same as a mortgage illustration.
This is also not a guarantee, they are agreeing in principle that you can provide sufficient evidence of your income and affordability. After your illustration, we will prepare your mortgage application with you if you want to continue.
As a mortgage broker in Leeds, it is our job to help you through the whole mortgage process. We will be on hand to answer any questions that you may have about the mortgage process.
Your free mortgage appointment includes a mortgage illustration. Book your free mortgage appointment online and we can get your process started today.
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.
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.
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.
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.
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.
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.
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.
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.
Try it FREE for 30 days, then £14.99 a month – cancel online anytime.
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.
Property chains can be a common hurdle for homebuyers going through the process. The moving home journey can be interrupted if you are in a property chain as some factors can stall the process.
Having said that, you may encounter a range of problems and hurdles when obtaining a mortgage. It could be that your application is stuck in the pipeline or there might be an issue with your offer not being accepted, it’s possible that you can encounter issues when going through the journey of moving home in Leeds.
A property chain involves a group of sellers that are connected so will be relying on each other for each purchase to go through. In the case where you are a first time buyer in Leeds, you will always be at the beginning of the chain, unlike a seller who would be placed at the end.
For example, a person is ready to move into a property they’re buying. From this, the buyer needs to wait for the seller to move out first. Then if that seller is in the same situation, they will also be waiting for them to move out to move in.
This all comes down to the seller’s situation which you will be unaware of.
Sometimes, you may not even know that you are in a property chain, and the full process could run smoothly. This is the ideal situation for everyone because it makes the moving home process go smoothly and straightforward.
On the flip side, if things don’t run as well, this can involve waiting. This is why our team recommend you start your process with at least six months of preparation. Within this time, you can look for that perfect home and provide some time if you get stuck in a property chain.
The full chain could suffer if you are linked with a property chain and one purchase does not go through. Therefore, if this chain breaks, you will either have to wait or look for another property.
In the case where the property chain breaks at your purchase, there can be a way to stop it from damaging the overall chain if you act fast.
An option for sellers could be to contact the people planning to buy your property by speaking to your estate agent. By doing this, you can inform them of the situation sooner rather than later.
It’s best to prepare for a break in the property chain regardless if you are on a seller’s level or your level.
You could buy a property that isn’t in a chain or a small chain, sell your property, rent temporarily, buy a new-build property etc.
There could be a number of reasons why a property chain can break. This could happen at your’s, your seller’s or even your buyer’s level:
Above is just a small number of examples, there are many more reasons. As mentioned, the length of the property chain you are in will depend on how these situations impact your ability to move home.
Avoiding a property chain can be difficult, especially if you are buying at a busy time of year or when the market is hot.
Furthermore, you could research and speak to your estate agent to get an idea of your position in the midst of the application stage. It is best that you organise your finances as early in the process as possible. Being prepared for things that could go wrong, the better.
In the case where you avoid a property chain (also known as ‘chain-free), the moving process will more likely be straightforward. This is obviously factoring in that you provide evidence that you can afford a mortgage and deposit the property.
Our moving home Mortgage Advisors in Leeds can help you through the process if you are looking to buy and sell your property.
If you are looking for help with the moving home process, book yourself in for a free mortgage appointment.
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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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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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