Bridie Robson, Author at Beverleymoneyman

Top 5 Mortgage Hurdles in Beverley

Specialist Mortgage Advice in Beverley

Having the best help and support from an expert team can help your mortgage journey run smoothly. Obviously, in some cases, it’s not all plain sailing. Here at Beverleymoneyman, we have helped many customers overcome a range of hurdles to get towards their homeowning goals. Below are just a few of the most common mortgage hurdles we have encountered as an expert Mortgage Broker in Beverley.

Childcare Costs

It’s very likely that you would be declined for a mortgage because of childcare costs. One thing to keep in mind though is that your borrowing capacity may be reduced because of these costs usually being such a large sum of money.

You will find that most lenders will view childcare costs as a loan or credit commitment. Therefore, regardless of if you have these costs or not, having children, in general, would still be seen as a larger outgoing each month.

If you are in this circumstance, you may be likely to borrow less than a mortgage applicant with the same income but with no children. Depending on the mortgage lender, you may find that some take child care costs into account so could mean your amount is increased but this isn’t always the case.

Mortgage involving Divorce/Separation

Usually, you buy a home with your partner with no intention of going through a divorce or separation. Unfortunately, this can happen and can result in a significant change in shared financial commitments.

Starting a New Job – Can I get a Mortgage?

This all comes down to the mortgage lender. One may require you to have been in work consistently for a certain period of time though some may have different criteria.

On the other hand, you may still be able to get a mortgage if you are beginning your new job very soon . You may need to have a signed contract and a written job offer in order to achieve this.

Keep in mind that having gaps in employment could make the process challenging as this will be bought up by some lenders. However, probationary periods should be fine.

Evidencing Your Deposit

Anti-Money Laundering precautions are really strict. This is why you will need to provide evidence of your deposit to your lender as well proving the origin of your savings. As well as your lender, an estate agent or solicitor estate agent or solicitors may ask you for this as well, it just comes down to who you go with.

When it comes to cash deposits, these are not ideal! Parts of your bank statements that are worrying to a lender could be questioned and could result in your mortgage application being rejected.

There is a possibility for you to go down the gifted deposit route where you are gifted a part or all the deposit from family or friends. It’s important that the person gifting the deposit states in writing that is not intended to be paid back as a loan and, like the name, is a gift.

Speak to a reputable Mortgage Advisor in Beverley

If you are finding the mortgage journey difficult as a First Time Buyer in Beverley or are finding the Moving Home in Beverley journey stressful, book your free mortgage appointment to connect with one of our Mortgage Advisors in Beverley.

These are only just a number of situations so if you don’t apply to any of the ones above, there is a chance we have helped someone in your situation before. Get the help and support you need for your mortgage application from one of our open and honest Mortgage Advisors in Beverley.

A Guide to Remortgages in Beverley: Top Reasons to Consider

Remortgage Broker in Beverley

At the end of your mortgage journey, you will have fully fulfilled your mortgage goals whether that be living in your dream home for you and your family, occupying a property that was perfect for you to get onto the property ladder but you are now wanting to leave in the future or a buy to let investment property.

Whatever path you took initially, you will eventually find that your fixed period is ending. You might be thinking of looking at the option of moving into a property that is either bigger or smaller. In some cases, a landlord may look to sell up their portfolio.

Through our experience as a Mortgage Broker in Beverley, we usually find that many people will look at taking out a remortgage.

What is a Remortgage?

Firstly, let’s look at the definition of a Remortgage in Beverley. In summary, a remortgage is when you use funds you have raised from taking out a new mortgage in order to pay off an existing mortgage in your name. There are many different options to do this and many benefits for each.

With over 20 years of experience in the mortgage industry the ‘Moneyman’ Malcolm Davidson (host of MoneymanTV, our YouTube channel), has collated a helpful guide to all the remortgage options that are fitting for homeowners.

Remortgage For Better Interest Rates

When it comes to your fixed period, this will usually be around 2-5 years. You may find that the fixed rates or potential discounted rates are usually lower. In some cases, homeowners might find themselves in a situation where they are placed onto a tracker mortgage, which will follow the inconsistent Bank of England’s base rate.

At the end of your fixed period, it’s likely that you will be placed onto the lenders Standard Variable Rate (also known as SVR). In short, an SVR is a mortgage with an interest rate and can completely change to whatever the lender wants to charge.

Even though this mortgage type does not fluctuate with the Bank of England’s base rate, a tracker mortgage would. Usually, the changes can happen when the base rate or the market changes. For instance, if the base rate increases, your lender may choose to increase their rate too.

Due to this, Standard Variable Rates are usually seen as a costly option to stay with, which can be one of the reasons why many homeowners generally go for a remortgage on their property for better rates. They do this in the hopes of having money down the line.

Remortgage for Home Improvements

If you have lived in your home for a couple of years, you may be looking at giving your home a makeover. Instead of finding a new place to live that covers your house preferences, you could have the option to remortgage in order to release equity. By doing this, you could use these funds to upgrade your current home.

Through our time as a Mortgage Broker in Beverley, we have customers do a range of things in their homes. One of the most common things is to get more space in their properties. Some are interested in giving their kitchen a revamp and one that has become popular is converting the loft into another room or something else.

For many homeowners, taking on a large project that involves lots of planning and managing and will include getting permission can seem like a nerve-wracking task. We have found that many customers find this option a lot less stressful and more rewarding than moving into a new house.

Making changes and developments to your home could be really beneficial down the line because you are creating more space and modernising a well-built home which, in turn, can increase the property’s worth. Therefore, if you do decide to move home, this could help you out.

Remortgage for Changes to Your Term

In some cases, homeowners do go down the route of taking out a remortgage in Beverley as a way to access better rates. This can be done by reducing the duration of your mortgage term or by switching to a more flexible product.

If you decide to reduce your mortgage term, you won’t be paying back, nor will you be restricted for as long. Therefore, you may find that the mortgage payments are higher for you. You would be paying less per month, the longer you have your mortgage term.

In many cases, customers decide to go for a more flexible mortgage term around remortgage time. You could have the option to overpay beyond the average amount (this usually comes with a cap), so you could pay off your mortgage quicker. If you decide to move, you could be able to pass the mortgage onto a new property.

This may be the best option, but these will usually come in the form of tracker mortgages. As seen before, this will correlate with the Bank of England’s base rate. This could result in your monthly payments being a bit unreliable, as they may change.

Remortgage to Release Equity

In the potential event of another momentous market crash, each homeowner will have a particular amount of equity existing within their home. This is usually calculated with the difference between what you will owe on the mortgage and the value of the property.

As previously stated, the common reason why people look at taking out a remortgage to release equity is so they can fund home improvements, however, you may have another reason to use the equity.

Other popular reasons include using the equity to cover long-term costs, as a way to provide an income boost, fund towards a large holiday, pay off an interest-only mortgage or to just to have extra disposable income.

Our team do work with Buy-to-Let landlords who will look at remortgaging to release equity from one of the properties in their portfolio and a way to cover the deposit for a future purchase.

Remortgage to Consolidate Debt

We have found that some homeowners look to remortgage to release equity in order to pay off any built-up, unsecured debts.

These may seem like a simple solution to debts, but it all depends on the amount you can borrow for a debt consolidation remortgage which does depend on the amount you owe a creditor, the value of your home and the current state of your credit rating. Because of these factors, you could be limited in the amount you are able to borrow.

On top of this, to pay your previous mortgage off entirely, along with the debts you have built up, you will need to borrow more than you actually require for a mortgage. Therefore, this will most likely mean higher monthly payments.

This is not the best situation, however, you will rest assured in knowing that if you are struggling, there are options out there that you can take.

For those who have a damaged credit rating, there are some routes for you to take. This would be a complex case though which is why you will need to seek Specialist Remortgage Advice in Beverley prior to proceeding with it. Be aware, that this doesn’t guarantee you a mortgage.

We do recommend that you obtain the advice of a Specialist Mortgage Advisor in Beverley before they consolidate any debts against their home.

Book Your Free Remortgage Review with a Mortgage Advisor in Beverley

Towards the end of your initial fixed period, you may be looking into the options and routes you could take. This is where a Remortgage in Beverley can help.

To connect with an expert Mortgage Advisor in Beverley, book your free remortgage review today. We provide a helpful, tailored service with availability 7 days a week from early in the morning until late at night. This means you can book your appointment around your schedule.

Your designated Mortgage Advisor in Beverley will be able to go through your case and get to know your mortgage goals to build a suitable option for your mortgage journey. Our team work hard in making the process as fast as it was your last process.

9 Questions to Ask When Buying A House in Beverley

First Time Buyer Mortgage Advice in Beverley

Beginning the mortgage journey as a First Time Buyer in Beverley can be an exciting but daunting experience, especially if you have little to no knowledge of the process. With a Mortgage Broker by your side, this doesn’t have to be the case. To make the most out of your house buying journey, it’s best that you are prepared. Here is 9 questions to ask yourself when purchasing a house as a First Time Buyer.

The 9 most common questions:

1. How much interest has there been in the property/development?

Getting a mortgage could be one of the biggest financial commitments in your life is it’s best that you give yourself some thinking time about a property before proceeding.

To determine how much thinking time you have, it’s best that you ask how much interest the property has got so then you aren’t missing your chance of potentially getting a property. For example, if the property has had a lot of interest, it’s likely you will need to come to a decision quickly.

2. Is there a property chain?

A property occurs when there are a number of transactions happening at the same time for every sale purchase to be completed.

The mortgage process can be affected if the property is part of a property chain.

If there is no onward chain like a new home, bereavement or emigration, there is more chance that you would be able to move in quickly considering that you are not part of a chain yourself. In the case where you don’t need to sell your own property first, you will have more of an advantage because you won’t be disturbing the buying process.

This is something that can benefit you when negotiating property prices.

3. What’s included in the sale?

In some cases, the previous owners may leave some previous items behind, which can be a benefit for you. Items like washing machines, fridges, freezers or a shed may be left for the next occupant.

Providing that the appliances work, it can be perfect for new buyers who are looking to save a bit of cash to get something new and modern in the future. If you don’t want these items, it’s the new buyer’s responsibility to dispose of them.

For new properties, you may have the option to purchase any extras that are brand new and others for you on your moving day.

Are the neighbours friendly?

When it comes to deciding on a property, it’s best to see what your neighbours are like. Having a good or bad neighbour can be a key component in your decision. This is important if you are moving into an area you don’t know much about.

Neighbours can be an element that many people factor in when they are deciding to move into a new home. First impressions are not always key, however, it can be good to get on with the as you may live there for a while.

How much does it cost to run?

This can depend on where the property is in Beverley. Because of this, it’s good to ask about this as well as do some research yourself. Questions could include how much the council tax is or the average spends on utilities which you could ask your seller or look into. This can be useful information to know and can also be helpful when managing your budget for each property.

6. Which way does the house face?

This is another aspect of property hunting that many people see as an important requirement to them. You may fancy relaxing in the garden in late summer evenings as well as reading in natural light. Having this feature can mean you pay a more premium price so you have a south-facing garden with sunlight shining on you for most of the day.

7. After moving in, how much will be needed?

The work that may need to be done on the house might need to be factored into your budget. Some topics you may want to consider include:

  • Make sure the property is energy efficient.
  • Sorting ay damping issues (if any).
  • Changing the furnishing.

8. Are you open to offers?

Negotiating a property price is a standard part of the house-buying process. With this, you need to be as prepared as possible to make an offer on a property that you like.

Speak with the seller or estate agent if you want to get an idea of how low in price the seller would want to go. Furthermore, it’s good to ask if any other offers have been made and rejected before your bid.

9. When can we move in?

It’s good to have a moving date set out so you can plan what you need to do before that date. You will need to plan tasks like instructing a conveyancing solicitor, packing your belongings, and organising a removal van to transport your belongings to the new property.

The Importance of Changing Your Address in Beverley

Credit Score Mortgage Advice in Beverley

It’s very likely that you will be asked what your credit score is like when it comes to applying for a mortgage. There are a plethora of factors that can affect your credit score. For instance, the fewer addresses you have on your record, the better your credit score.

As mentioned, fewer addresses on your file can support your mortgage application when done correctly.

We do find that many applicants, particularly First Time Buyers in Beverley, leave their previous addresses on their records. They may have done this accidentally or as a way to keep their credit score from lowering but they do need updating.

What information needs correcting?

There is a range of documents you will need to update whether it be bank statements, credit cards and electoral roll information. We do find that many applicants disregard this information as they believe it won’t harm their credit score, however, it can create a significant amount of damage.

You may be in a situation where you get an unpaid ticket that is sent through to your old address. If you don’t let the post office know to make sure all mail gets forwarded, the longer it goes unnoticed which can result in receiving a CCJ.

Receiving a CCJ on your credit file could result in losing lots of points on your credit file. This will damage your credit history and make things more difficult for you when it comes to being successful in your mortgage application.

Check before you apply

We do recommend that you give your application a thorough check from start to finish. Begin with your address by making sure that the address on all of your accounts (credit cards / current accounts) and electoral roll are all registered to your current address.

This is usually targeted at applicants who are currently living in rented accommodation and haven’t changed their address from their previous property.

It’s best you double-check everything when applying for a mortgage just in case you miss anything. Keep on top of your address, making sure everything is updated can make a positive impact on your mortgage application.

Find out the exact date you moved into your rented apartment / new home and when you moved out. This will prevent any cross-over that may show you were living in two different addresses at once.

If you don’t do this could lead to confusing the lender and could potentially cause damage to your credit file or mortgage application.

It will be very beneficial to have a Mortgage Broker in Beverley to provide a helping hand as they will make sure your application is perfect before it’s submitted. They will also check that all information is updated correctly to have the best possible chance of being accepted.

Impress the lender

Demonstrate to the lender that you tried your best to get your application accepted. You may have evidenced your deposit to show how you have saved up or you have consciously updated your address. Either way, it will massively help your application and impress them.

In the situation when you have an outdated address that is connected to one of your accounts, your lender will see that you didn’t check to see if any of your addresses needed updating. This could show to a lender that you haven’t taken things seriously.

Mortgage Advice in Beverley

To conclude, it’s important to change your address and any other factors stated above in order to prove to the lender that you are serious about this financial commitment. Therefore, we do strongly suggest that you check up on your file to make sure your application is up to date. If you are wanting a second set of eyes on your application, take advantage of our free mortgage appointment in Beverley.

Here at Beverleymoneyman, we have a team of expert Moving Home Mortgage Advisors in Beverley who are available 7 days a week. We look forward to helping you secure a great mortgage deal and get your application looking ready to go!

Getting Prepared For A Mortgage in Beverley

You may be here because built up a large amount of savings for a deposit on your first property and are wondering what’s the next stepping stone to take on your homeowning journey. The amount of deposit you need to put down to buy a property in Beverley will be determined by your mortgage goals and your current financial circumstance.

As a First Time Buyer in Beverley taking the first step onto the property ladder or this is your second time and are looking at Moving Home in Beverley, our expert term could help you. Below we have created a helpful guide that will hopefully help you put yourself in the best position to be mortgage ready when it comes to starting your application.

Get mortgage ready in Beverley

Up to date credit report

To start, you need to get an up-to-date credit report. By having this with you, you can provide a financial landscape to your designated Mortgage Advisor in Beverley. We do recommend that you pay off any outstanding amounts like mobile phone bills and instalments before you get a copy.

Don’t worry if you struggle to get an up-to-date credit report on time, your advisor will be able to help you with this.

Agreement in Principle

Before you begin your mortgage journey. it’s key to obtain an Agreement in Principle. This document is important when it comes to making an offer on a property. With an AIP by your side, you are demonstrating to the estate agent that a lender will agree to lend you a certain amount from them in principle by showing them ample evidence of your income, credit history etc.

Remember that AIPs can expire normally within 30-90 days. In the case that your AIP does expire or you need support getting one, our friendly team can organise this for you usually within 24 hours of your mortgage application. Our team are here to provide you with the expert Mortgage Advice in Beverley that you need.

Budget Planner

Prior to beginning the mortgage process, many applicants usually have a rough estimate of their expected outgoing after they move house. By working out this estimate, you can be able to have a rough idea of the amount of disposable income you have to pay your mortgage. It’s likely that you will have expenditures and regular outgoings such as credit agreements and bills to your weekly food shop. In the case where you are finding it difficult to balance out all these financial outgoings, we will happily send you our version of a Budget Planner to help you out.

Document Checklist

It’s best to keep an organised folder with the documents you need when you are starting your mortgage application in Beverley.

Proof of ID

Providing a form of ID will prove that you are who you say you are. This can be shown through a driving license or a passport. Keep in mind that you are not able to use the same form of ID twice so, if you use your passport for this proof of ID, you will not be allowed to use it for another proof of ID evidence and vice versa.

If you are an applicant who is a non-UK national working over here on a visa, you will need to provide that too.

Proof of Address

Along with this, you will need to prove where you live. This may require you to provide ID and a utility bill/bank statement. It’s important that you put your current address on all of your accounts and memberships in order for them to be up to date. By doing this, you are reducing the risk of your application being harmed as incorrect or previous addresses linked with your name can cause this.

Last three months’ bank statements

Having this document with you is crucial as it can be a big determining factor to whether or not you qualify for a mortgage. You will be required to provide and will need to be at least three months’ worth. From a lender’s perspective, they will be able to have an insight in the way you manage your money as well as what goes in and out of your account.

When it comes to outgoings, lenders do not favour regular gambling transactions along with general bad spending habits. If you are in your overdraft on a daily basis or direct debits have bounced consistently will also not put you in the best view in the lender’s eyes.

Evidence of deposit

To keep in line with Anti-Money Laundering regulations, it is important that you provide evidence of where your deposit has come from. It’s best to have your savings kept in one account and try not to move them around. This is still the case with gifted deposits you would leave the money inside of the gifter’s account instead of transferring it into your own.

Lenders like to see that you have accumulated savings over time in a savings account. Help to Buy and Lifetime ISA are helpful for this. For those getting a Gifted Deposit in Beverley, the individual who is gifting you the deposit will have to prove where they have got the funds from as well.

Proof of income

Proving your income plays a big role in the process. If you are employed, you will need to provide the last three months’ payslips along with your P60. Furthermore, overtime, bonuses. commission and shift allowance are normally factored in and taken into consideration too. For part-time employees, they will need to provide more evidence of their income. This does depend on the lender though.

If you are Self Employed in Beverley, assessing your income will work a bit differently. First, you will need to show a minimum of 2/3 years’ accounts and earnings from the revenue. We have a team of Mortage Advisors in Beverley who have rich knowledge of this.

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