Can You Get a Mortgage With Bad Credit in Beverley?

Our role as a mortgage broker in Beverley involves helping individuals who are seeking guidance in the realm of bad credit. This can encompass a range of challenges, including missed payments, low credit scores, CCJs, and defaults, among other issues.

A situation where payments have been repeatedly missed, such as those associated with a mobile phone contract, can result in the addition of a default to your credit record.

This occurrence might raise concerns if you’re contemplating a future mortgage application, as it could imply potential uncertainty in making payments.

However, it’s important to note that having missed payments or defaults doesn’t signify an insurmountable barrier to obtaining a mortgage. To enhance your prospects in this scenario, our recommendation is to seek professional advice from a specialist mortgage advisor based in Beverley.

One aspect to be aware of is the potential requirement for a substantial deposit if you’re aiming to secure a mortgage with a history of bad credit in Beverley. This deposit could range from 10% to 15% of the property’s value.

Mortgage lenders will show interest in understanding the reasons behind your bad credit situation. Additionally, they will consider the duration of time for which you’ve had bad credit. If your bad credit is recent due to a recent default, your chances might be more constrained.

However, if the default dates back several years and you’ve since maintained a consistent payment record, you might find your prospects brighter.

It’s worth remembering that errors can occur, and even having a history of bad credit in Beverley shouldn’t dissuade you from pursuing your mortgage goals.

Specifically tailored mortgage products are available for individuals with bad credit, and these offerings can align with your individual financial situation. If you find yourself in this situation, exploring these options could be beneficial.

Bad Credit Mortgage FAQs in Beverley

With over two decades of experience, we’ve encountered an extensive array of specialised mortgage scenarios. No matter the complexity of the situation, our commitment to assistance remains unwavering.

For those seeking a mortgage despite bad credit in Beverley, a plethora of inquiries naturally arise – and rightfully so, as navigating the mortgage landscape can be intricate.

To address these queries comprehensively, we’ve assembled a list of the most frequently posed questions by applicants in a similar position.

I have been declined by my bank for a mortgage in Beverley, can you help?

Many individuals who have faced rejection from their bank while pursuing a mortgage come directly to us as a trusted mortgage broker in Beverley. It’s prudent to avoid a cycle of repeated applications with your bank, as each decline can exert a detrimental impact on your credit profile.

We advocate reaching out to our team of seasoned mortgage advisors in Beverley to explore your existing mortgage prospects. Even if you perceive your circumstances as intricate, there’s a strong possibility that we can offer valuable insights and solutions.

What will my mortgage advisor in Beverley need to see?

Irrespective of the nature of your past credit challenges, your designated mortgage advisor in Beverley will require an up-to-date copy of your credit report.

Acquiring this report ahead of initiating a mortgage application is of paramount importance, particularly if you’re uncertain about your credit history. Rest assured, our mortgage advisors in Beverley can facilitate a credit assessment on your behalf, incurring no charges and leaving no imprint on your credit.

Repeated credit checks can potentially cast an adverse shadow on your credit score, potentially affecting your mortgage eligibility.

Can I still get a mortgage in Beverley with a good income but bad credit?

Addressing this query hinges on your individual circumstances. In certain cases, individuals whose credit scores might not be deemed “excellent” can present a substantial deposit for a lower interest rate alongside a stable income.

However, despite these factors, a mortgage lender might decline the application based on perceived risk.

Mortgage lenders will need to see evidence of your capacity to consistently meet mortgage payments, safeguarding against the risk of default. Repossession is a recourse lenders prefer to avoid, reserved for dire circumstances.

While the prospect might seem challenging, avenues for bad credit mortgages do exist. It’s plausible that you might need to accept a somewhat elevated interest rate on your mortgage. To explore and better understand these options, consulting a seasoned mortgage advisor in Beverley is recommended.

I’ve had mortgage problems before. Will that stop me from getting a mortgage in Beverley now?

Regrettably, some individuals do encounter instances of missed mortgage payments, which can cast a shadow on their credit history. Even if the occurrence is isolated and a swift repayment plan is in place, such an incident can leave a mark on your record.

If missed payments recur more frequently, their repercussions can progressively manifest in your credit profile. These implications can surface when the time comes to remortgage in Beverley, embark on a new home purchase, or engage in a buy to let property investment.

It’s important to bear in mind that mortgage lenders place high value on the reliability and credibility exhibited in your credit history.

What other types of adverse obstacles are customers facing?

Diverse situations involving bad credit can confront applicants, each carrying the potential to introduce considerable challenges during the course of a mortgage application. These challenges encompass a range of issues, including but not limited to:

• Instances of Missed Mortgage Payments
• Defaults on Credit Cards or Loans
• County Court Judgements (CCJs)
• Bankruptcy

While these circumstances are undoubtedly less than desirable, they need not serve as insurmountable barriers to obtaining a mortgage.

Although the journey may entail a degree of added complexity and perhaps slightly elevated mortgage rates, it’s worth noting that specialised mortgage lenders are available to provide assistance.

Get in Touch for Bad Credit Mortgage Advice in Beverley

To obtain expert guidance on specialist mortgages in Beverley, we encourage you to get in touch with our dedicated team at Beverleymoneyman.

We understand that the prospect of navigating the mortgage journey with bad credit can appear overwhelming, which is precisely why we are here to extend our support.

Our commitment to helping you starts with a free mortgage appointment, tailored to your unique circumstances. Booking this appointment is seamless – you can conveniently secure a slot by making an online reservation or contacting us directly to schedule a suitable date and time.

How Long Does a Mortgage in Principle Last in Beverley?

A mortgage in principle, also known as an agreement in principle or decision in principle, is a valuable tool to help you gauge your potential borrowing capacity before formally applying for a mortgage.

Obtaining an agreement in principle typically involves a soft credit check, which means your credit score is unlikely to be impacted. You are not obligated to proceed with a mortgage application after obtaining this initial agreement.

At Beverleymoneyman, we prioritise efficiency and can usually secure an agreement in principle for our customers within 24 hours of their initial mortgage appointment.

Keep in mind that an agreement in principle is typically valid for 30 to 90 days, which should be sufficient for your property search. If it expires, we can easily arrange for its renewal, ensuring you have the necessary paperwork to confidently proceed with your mortgage journey.

How do I get a mortgage agreement in principle?

To obtain a mortgage agreement in principle, you have two main options: either approach a mortgage lender directly or seek assistance from a trusted mortgage broker in Beverley, like our team at Beverleymoneyman.

We can handle the communication with the mortgage lender on your behalf, making the process seamless for you. Getting in touch with our mortgage advisors in Beverley is easy; you can use our Get Started online form to book a free mortgage appointment.

During this appointment, you’ll have the opportunity to speak with an expert who can guide you through the process and secure your agreement in principle within just 24 hours.

To proceed with the application, you’ll need to provide necessary documentation, such as proof of income, employment details, credit history, and other personal information.

This information will help assess your eligibility for a mortgage and provide you with an estimated borrowing amount, giving you a clearer picture of your potential mortgage options.

When should I get an agreement in principle?

Before you start your property search, it’s highly advisable to secure a mortgage agreement in principle. This will give you a general estimate of how much you can borrow, ensuring you focus on properties within your budget.

Moreover, having an agreement in principle can provide a significant advantage when making an offer on a property. Sellers and estate agents tend to see buyers with an agreement in principle as serious and reliable, giving you an edge over other potential buyers who haven’t taken this step.

It’s important to understand that an agreement in principle is not a guarantee that you’ll obtain a mortgage, but it serves as a valuable tool during the home-buying process.

It helps you navigate the property market with confidence and demonstrates to sellers that you are a committed buyer, increasing your chances of securing your dream home.

What information does a mortgage lender look at when you apply for an agreement in principle?

When applying for an agreement in principle, your mortgage advisor in Beverley will require some essential personal information to pass on to the mortgage lender.

This includes your full name, date of birth, current address, and the length of time you’ve lived there. The lender will also need details about your employment status and the duration of your current job.

Additionally, the mortgage lender will ask about your income, including your salary, any other sources of income, and regular bonuses or commissions. They will also inquire about your regular outgoings, such as debts, credit cards, loans, and car finance.

To assess your creditworthiness, the mortgage lender will check your credit report, which contains information about your past credit accounts, including credit cards, loans, and mortgages.

Based on the information provided, the mortgage lender will evaluate whether you can afford the amount you wish to borrow. They will consider your income and outgoings to determine a realistic monthly payment amount.

It’s important to be aware that the mortgage lender may request further details, such as bank statements or proof of income (especially if you are self employed in Beverley ), before making a final decision on your mortgage application.

Providing accurate and complete information is crucial to ensure a smooth and successful process.

What is the difference between an agreement in principle and a mortgage offer?

An agreement in principle (AIP) serves as a preliminary document that indicates the amount a mortgage lender is potentially willing to lend you based on the information provided.

It is essential to understand that an AIP does not guarantee a mortgage offer, nor does it establish any legal obligations between you and the lender.

On the other hand, a mortgage offer is a formal and binding offer from the lender, confirming their willingness to lend you the agreed amount after conducting thorough checks. This offer represents one of the final stages of the mortgage process.

When you receive a mortgage offer, it comes with legally binding terms and conditions, including the interest rate, mortgage term, and any associated fees or charges.

To reach this stage, you will need to provide the mortgage lender (via your mortgage broker in Beverley if you’re working with one) with more detailed information and undergo a comprehensive credit check.

Furthermore, the mortgage lender will require a valuation of the property you intend to purchase. Once you have your mortgage offer, you can proceed with your property purchase, ensuring that you meet any conditions specified in the offer.

In summary, an agreement in principle is a valuable tool to determine your borrowing capacity, while a mortgage offer is a formal and legally binding agreement between you and the lender, outlining the terms and conditions for your mortgage.

Will having an agreement in principle taken out affect my credit score?

Obtaining an agreement in principle (AIP) for a mortgage usually has no significant impact on your credit score. Most mortgage lenders conduct only a soft credit check when providing an AIP, leaving no visible trace on your credit report.

It’s essential to be aware that some lenders may perform a hard credit check as part of the AIP process, which can leave a record on your credit report. This could potentially affect your credit score, especially if you apply for multiple AIPs with different lenders within a short timeframe.

While the impact may be minimal, it’s advisable to limit the number of mortgage applications and only seek an agreement in principle when you are genuinely considering moving forward with your property purchase.

It’s worth noting that a mortgage application itself typically involves a hard credit check, which can have a more significant impact on your credit score. Therefore, it’s essential to be prudent and apply for AIPs selectively to safeguard your credit rating.

What is the benefit of having an agreement in principle?

Obtaining an agreement in principle (AIP) offers several significant benefits when applying for a mortgage.

Firstly, having an AIP gives you a clear understanding of the amount you can borrow, allowing you to focus your property search within a realistic price range. This saves time and avoids potential disappointment from exploring properties beyond your budget.

Secondly, an AIP provides a valuable advantage over other buyers when making an offer on a property. Sellers are more likely to consider offers from buyers with an AIP, as it demonstrates your seriousness and proactive approach in securing a mortgage.

Additionally, having an AIP can expedite the mortgage application process once you find your desired property. The initial assessment by the mortgage lender streamlines the application, leading to a quicker and more efficient process.

Overall, an AIP is an invaluable tool for property buyers, offering clarity on borrowing capacity, enhancing your position in negotiations, and facilitating a smoother and faster mortgage application process.

It empowers you to make informed decisions and ensures a more seamless homeownership journey.

How much does a mortgage agreement in principle cost?

Securing a mortgage agreement in principle is typically a cost-free process. It involves receiving a statement from a mortgage lender, indicating the amount they would potentially lend you based on the information you provided.

Importantly, obtaining an agreement in principle does not entail any financial commitment on your part. It is a valuable tool to assess your borrowing capacity and explore potential mortgage options without incurring any costs or obligations.

What happens if I get rejected for an agreement in principle?

If your mortgage agreement in principle application is rejected, it indicates that the mortgage lender has determined you are currently ineligible for the requested mortgage amount.

There can be various reasons for this outcome. It’s crucial to understand the cause of the rejection, as it could be related to your finances, credit history, or missing information.

In such a situation, it’s important to address the underlying issues. This might involve improving your financial situation or providing additional details to the mortgage lender.

Alternatively, you may need to explore other mortgage lenders who are willing to lend closer to or the full amount you are looking for. Remember that being rejected for an agreement in principle doesn’t automatically mean your full mortgage application will be rejected.

When you submit a complete application, the mortgage lender will conduct a more thorough assessment of your financial situation and credit history, possibly resulting in a different mortgage offer.

Applying for multiple agreements in principle with different lenders can have a negative impact on your credit score. Hence, it’s essential to research beforehand and consider seeking the assistance of a knowledgeable mortgage broker in Beverley.

They can help you find the right mortgage lender and increase your chances of obtaining an agreement in principle successfully on your first attempt.

Get a Mortgage Agreement in Principle

When you’re exploring first time buyer mortgages in Beverley or home mover mortgages in Beverley, it’s highly recommended to consult with a mortgage broker in Beverley. They can help you in obtaining an agreement in principle (AIP) before you make any offers on a property.

Our team can typically secure an AIP for you within 24 hours of your initial mortgage appointment, providing you with valuable insights as you progress on your mortgage journey.

Don’t hesitate to book your free mortgage appointment today, and we’ll work diligently to get you your agreement in principle as swiftly as possible. With a trusted mortgage broker in Beverley by your side, you can embark on your mortgage journey with confidence and support.

How to Save For a Mortgage in Beverley

Saving for a mortgage deposit can be challenging in today’s financial landscape. As experienced mortgage brokers in Beverley, we understand that first time buyers in Beverley may feel overwhelmed by the homebuying process.

It’s crucial to assess your credit score, accumulate a sufficient deposit, and provide evidence of your affordability.

In this article, we will delve into effective strategies for saving towards your mortgage deposit and provide valuable insights on key factors to consider before embarking on your mortgage journey.

Our aim is to empower you with the knowledge and guidance necessary to make informed decisions along the way.

Work Out How Much You Need to Save For Your Mortgage in Beverley

Determining your monthly disposable income is the first step in saving for a mortgage deposit. Begin by assessing your average monthly expenses to estimate the amount you can allocate towards your savings. This will provide a realistic perspective on how much you can save each month.

Typically, the minimum deposit requirement is 5% of the property’s value. We have observed that some first time buyers in Beverley aim to save even more, sometimes up to 20% of the property’s value.

A larger deposit translates to lower monthly mortgage payments. For individuals with bad credit, a deposit of around 15-20% may be required.

Remember, a larger deposit reduces the loan-to-value (LTV) ratio and mitigates risk for lenders. It also demonstrates your ability to save and enhances your reliability as a mortgage applicant.

Additionally, it’s important to consider other costs associated with taking out a mortgage, including arrangement fees, solicitor fees, property survey fees, and potential costs associated with using a mortgage broker in Beverley.

Properly accounting for these expenses will ensure you have a comprehensive understanding of the financial commitment involved.

Are there any schemes available?

Exploring government-led schemes can be beneficial in boosting your mortgage deposit or facilitating savings for it. It’s worth checking your eligibility for these schemes to see if they can help you.

One popular scheme is the Shared Ownership scheme, allowing you to secure a mortgage for a percentage of a property, thereby reducing your initial deposit requirement.

With this scheme, you can obtain a mortgage for 10%-75% of the property, providing a helpful starting point for your first time buyer journey in Beverley.

There are additional schemes available, such as the Lifetime ISA, first homes scheme, and the mortgage guaranteed scheme, each with its own advantages and criteria.

If you’re interested in these schemes or would like to learn more, feel free to reach out to us or book a free mortgage appointment online with one of our knowledgeable mortgage advisors in Beverley. You can also find further information on the government’s OwnYourHome website.

Help From Elsewhere 

Receiving a gifted deposit can be a valuable opportunity to enhance your mortgage deposit.

A gifted deposit refers to a contribution towards your mortgage that is given to you by a family member or friend. It’s important to note that a gifted deposit is not a loan but a genuine gift, meaning it does not need to be repaid in the future.

Review Your Outgoings

It’s essential to review your monthly bills and subscriptions to identify potential areas where you can save money. Take a close look at each expense and consider if there are any alternatives or cheaper options available.

Additionally, it’s worth examining your memberships to see if there are more cost-effective alternatives elsewhere. By maximising your savings each month, you can contribute more towards your mortgage deposit.

Have you considered buying a property with a friend or partner?

Purchasing a property with a friend or partner is a common approach taken by many first time buyers in Beverley. This option is appealing because it allows you to pool your savings, effectively doubling your purchasing power.

It’s important to exercise caution when entering into financial agreements with others. If your partner or friend has a poor credit history, it could potentially impact your own eligibility for a mortgage. For instance, if they have a default on their credit record, it may hinder their ability to secure a mortgage.

Fortunately, there are specific mortgage options available for individuals who wish to purchase a property jointly with a friend or partner. These mortgages are tailored to accommodate such arrangements and provide suitable financing solutions for joint buyers.

Joint Tenants

With this type of mortgage, both parties are joint owners of the mortgage and have equal ownership rights over the property. In the unfortunate event that one party passes away during the mortgage term, the full ownership of the property will automatically transfer to the surviving owner.

It’s important to note that lenders treat both parties as a single unit when assessing the mortgage application. Therefore, any decisions regarding the sale or remortgage of the property will require agreement and cooperation from both joint owners.

This ensures that both parties have equal involvement in the decision-making process.

Tenants in Common

With this type of mortgage, multiple owners have specific shares in the property, and these shares do not have to be equal. Each owner’s share represents their ownership interest in the property.

In the future, as individual shareholders, you may have the flexibility to sell or transfer your shares in the property. This means that you have the option to sell your share to another party or gift it to someone else, subject to any legal agreements or restrictions in place.

It’s important to note that any changes in ownership shares should be handled in accordance with the mortgage agreement and legal requirements. Consulting with a legal professional is advisable to ensure a smooth and legally compliant process.

Saving For a Deposit if You Have Bad Credit in Beverley

If you have bad credit, it’s likely that lenders will require a higher deposit from you. In such cases, you may need to save around 10% to 15% of the property’s value as a deposit. This means you might need to allocate more time to save up for your desired deposit amount.

It’s important to note that you can also take steps to improve your credit score. By implementing certain strategies and following helpful tips, you can work towards enhancing your creditworthiness.

These tips may include managing your existing debts responsibly, making timely payments, keeping your credit utilisation low, and reviewing your credit report for any errors or discrepancies.

Improving your credit score can increase your chances of obtaining a more favourable mortgage offer with lower deposit requirements.

It’s always advisable to consult with a professional mortgage advisor who can provide personalised guidance and help you navigate the process of improving your creditworthiness.

Register on the Voter’s Roll

To enhance your credibility with lenders, it’s important to ensure that you are registered on the voter’s roll. This registration not only validates your current address but also demonstrates your reliability and stability.

Additionally, it’s crucial to review and verify that all your personal information, including your name and address, is accurately spelled and consistent across various platforms. This includes your banking details, store cards, billing addresses, and other relevant records.

Maintaining consistency in your personal information helps build trust with lenders and reassures them of your reliability and attention to detail. By aligning your address information across different accounts and documents, you present a cohesive and dependable profile to potential lenders.

Remember to periodically update your information if you move or change addresses to ensure that your records remain up to date and aligned.

Try to Keep Within Your Maximum Limit

It’s important to avoid maxing out your credit card and failing to pay off the balance each month, as this can have a negative impact on your credit score. Instead, it’s advisable to use a credit card responsibly by ensuring that you pay off the full balance on time each month.

By using your credit card responsibly and paying off the balance in full, you demonstrate good financial management and responsibility. This helps establish a positive credit history and shows lenders that you can effectively manage credit without accumulating excessive debt.

Maintaining a low credit utilisation ratio (the percentage of your available credit that you use) is also beneficial for your credit score. Aim to keep your credit card balances well below the credit limit to showcase responsible credit usage.

By using your credit card wisely and paying off the balance promptly, you can maintain a positive credit score and enhance your financial standing.

Meet Payment Deadlines

It’s crucial to prioritise meeting payment deadlines and ensuring that you have sufficient funds in your account when credit card payments are due. Consistently fulfilling these obligations can have a positive impact on your credit rating.

By consistently making timely payments, you demonstrate your financial responsibility and reliability to lenders. This helps build a positive credit history, indicating that you can effectively manage your financial obligations.

To ensure that you meet payment deadlines, consider setting up automatic payments or reminders to help you stay organised. By doing so, you can avoid late payments, which can negatively affect your credit rating.

Consistency in meeting payment deadlines and maintaining a strong payment record will contribute to a positive credit rating, which is important for future credit applications and financial opportunities.

Close Down Any Unused Credit Accounts

It’s important to consider closing credit accounts that you no longer use or intend to use. Keeping unused accounts open can potentially have a negative impact on your credit file.

Having an old address linked to an account can create discrepancies and affect your credit score. Therefore, it’s advisable to update your address information and ensure that all accounts reflect your current and accurate details.

This advice also applies to store accounts. If you have store accounts that you no longer utilise, it’s beneficial to close them down. By doing so, you can streamline your credit profile and prevent any potential negative impact on your credit score.

Taking proactive steps to close unused accounts and update your address information helps maintain a clean and accurate credit file. This contributes to a healthier credit profile and improves your overall creditworthiness.

Detach Yourself From Any Financial Links to Others

It’s important to be aware that having a financial connection with someone who has bad credit can have a detrimental effect on your own credit score. This situation often arises in cases of divorce or separation, where both individuals remain financially linked and their actions can impact each other negatively.

When you are financially connected to someone with a poor credit history, their financial behaviour, such as missed payments or defaults, can potentially affect your creditworthiness. This can make it more challenging for you to secure credit or obtain favourable terms on loans and mortgages.

To protect your credit score, it’s advisable to sever any financial connections with individuals who have bad credit. This may involve closing joint accounts, removing your name from shared loans, or taking other necessary steps to ensure your financial independence.

By taking proactive measures to disentangle yourself from these connections, you can safeguard your own credit score and maintain a strong financial standing. It’s always best to consult with a financial advisor or credit expert for guidance tailored to your specific situation.

Our Expert Mortgage Advisors in Beverley

If you’re embarking on the journey of saving for a mortgage and seeking expert advice in Beverley, our team at Beverleymoneyman is here to help you.

We understand that starting the mortgage process can feel overwhelming at times. That’s why we’re dedicated to providing a helping hand and easing your concerns. With over 20 years of industry experience, we have the knowledge and expertise to guide you through the process.

To get started, you can conveniently book your free mortgage consultation with one of our experienced mortgage advisors in Beverley. Whether you prefer to book online or give us a call, we’ll ensure that you receive personalised guidance tailored to your specific needs and circumstances.

At Beverleymoneyman, we’re committed to helping you navigate the complexities of the mortgage journey and make informed decisions. Contact us today to arrange your free mortgage appointment and take the first step towards achieving your homeownership goals in Beverley.

The Pros & Cons of Using a Mortgage Broker in Beverley

Embarking on a mortgage journey can feel overwhelming, especially for first time buyers in Beverley or those looking to move or invest in property. With numerous options available, it’s crucial to make informed decisions from the start to save time and costs down the line.

At our company, we offer a personalised and friendly service, catering to your specific mortgage needs. We understand the complexities of the process and have the expertise to guide you through it. Our team is dedicated to providing expert mortgage advice in Beverley, assisting both new and existing customers.

In this article, we’ve compiled a comprehensive overview of the advantages and disadvantages of working with a mortgage broker in Beverley. Discover why many people trust us for their mortgage advice needs in Beverley and benefit from our knowledge and guidance.

Why use a mortgage broker in Beverley?

Cost-Effectiveness

While some believe that finding a mortgage deal on their own will save them money, the reality is more nuanced, especially when it comes to a mortgage broker in Beverley. While brokers may charge a fee, the actual cost depends on individual circumstances and the chosen company.

If you have extensive knowledge and a straightforward case, going direct might be easier and more cost-effective. For more complex situations or if you lack knowledge in the mortgage market, seeking the assistance of a mortgage broker in Beverley can prove invaluable.

Without proper knowledge, you run the risk of choosing the wrong deal or facing a rejected mortgage application. Both scenarios can lead to increased expenses or negatively impact your credit score, affecting future mortgage prospects.

With a dedicated mortgage advisor in Beverley, their primary goal is to help you achieve your mortgage goals. They strive to provide the right recommendation the first time, at the best price. While there may be a service fee involved, the potential savings in the long run can outweigh the costs.

Local Bank Branch Relationship 

In the past, many customers preferred approaching their banks directly out of loyalty and familiarity with the traditional way of conducting the mortgage process.

Back then, customers would visit their local branch and often interact with the same bank manager, benefiting from their expertise and personal knowledge of their financial situation.

Previously, having the bank manager personally review and approve your mortgage application was seen as advantageous, as they possessed a deep understanding of your finances.

With the advent of technology and online banking, the mortgage process has undergone significant changes, particularly with the introduction of digital credit scoring.

Nowadays, the bank manager does not manually assess each case. Instead, a sophisticated online system evaluates your eligibility for a mortgage. This process is standardised and applies uniformly across banks, ensuring fairness regardless of the institution you choose.

The focus has shifted from personal interactions to digital assessments based on objective criteria.

Exclusive Mortgage Products 

While it’s true that going directly to a lender can offer access to exclusive deals, it’s important to note that these options may be limited to that particular company. Banks typically provide their best deals, but they may not consider other lenders’ offerings.

It’s worth considering that mortgage lenders extend beyond banks, and there are numerous alternative options available. The deal a bank recommends may not necessarily be the most competitive one among all available lenders.

Seeking specialist mortgage advice in Beverley can provide you with a significant advantage. Our expert mortgage advisors in Beverley will thoroughly review your case and leverage our extensive panel of lenders to find the best deal tailored to your specific needs.

Another benefit of consulting a mortgage broker in Beverley is access to exclusive deals that are not available elsewhere.

Whether you’re a first time buyer, moving home, or looking to remortgage in Beverley, we can present you with a wide range of options to choose from, ensuring you find the most suitable mortgage solution.

Changes to Regulation & Consumer Protection  

In the aftermath of the 2007-08 credit crunch, significant improvements were made in the mortgage market. One of these changes came in the form of the 2014 Mortgage Market Review, which required lenders to provide mortgages only with extensive expert advice.

Gone are the days when anyone at a bank could grant a mortgage without proper checks or qualifications. The new regulations ensure that customers receive appropriate advice tailored to their circumstances.

These changes also introduced consumer protection measures that were previously lacking. If you believe you have been misadvised, you now have the option to file a complaint with the Financial Ombudsman or seek compensation through the Financial Services Compensation Scheme.

This increased consumer protection provides reassurance to customers, ensuring they receive reliable advice and guidance throughout their mortgage journey. This applies not only to mortgage brokers in Beverley but also to mortgage lenders, as both are subject to these regulatory requirements.

Book an Appointment with a Mortgage Advisor in Beverley

Choosing to approach a bank instead of a mortgage broker in Beverley can come with a drawback in terms of timing. Getting in touch with someone at a bank can often take months, and once the process begins, you may not receive frequent updates throughout your mortgage journey.

At Beverleymoneyman, we prioritise responsiveness and convenience for our customers. Our dedicated team of mortgage advisors in Beverley will reach out to you at a time that suits your schedule.

We’re available from early morning to late evening, seven days a week, including weekends and even some bank holidays.

We understand that every customer has a unique lifestyle, which is why our advisors are available throughout the day. You can easily book an appointment beyond traditional 9-5 hours or on weekends through our simple online booking system.

Our commitment to responsiveness doesn’t end there. Whether you’re at the beginning or nearing the completion of your mortgage, our friendly team will keep you informed every step of the way. If there are any changes, your dedicated mortgage advisor in Beverley will promptly get in touch with you.

It’s this emphasis on high-quality service that has made local mortgage brokers in Beverley like us a preferred choice for many. Instead of national banks, more and more people are opting to approach knowledgeable local experts who provide personalised support and guidance.

Handling of Complex Scenarios 

With our extensive industry experience, we have encountered various scenarios that can present slightly more challenges than the usual mortgage cases.

One such scenario is a mixed deposit, where two different sources of funds, such as a gifted deposit and personal savings, need to be audited and accounted for. Additionally, individuals on zero hour contracts pose considerations regarding the consistency of their income.

For those looking to make a second property purchase, assessing their affordability and financial capability becomes crucial. Self employed individuals in Beverley without a fixed income also face challenges in securing a mortgage.

A poor credit history can also impact an applicant’s eligibility, as lenders may view it unfavourably. Ultimately, affordability is a key factor, determining if applicants can comfortably manage the mortgage.

In the past, mortgage lenders competed primarily by offering better deals, but the focus has now shifted to meeting specific criteria. It’s important to note that while you may find a cheaper deal, it may not align with your unique circumstances and requirements.

Applying for a mortgage involves a hard search, which leaves a footprint on your credit file. Declining a deal in principle can negatively impact your credit file without clear reasons provided, adding to the frustration.

At Beverleymoneyman, we understand the intricacies of these situations and have the expertise to guide you through them. Our mortgage advisors in Beverley will leverage their knowledge and experience to help you find suitable mortgage options, even in challenging circumstances.

We are committed to providing personalised advice and support throughout the application process, ensuring you have the best chance of securing the right mortgage for your needs.

Agreement in Principle

Mortgage brokers in Beverley play a vital role in helping you navigate the mortgage application process and increase your chances of approval. With their extensive network of lenders, they have access to a wide range of options and can find the most suitable deal that aligns with your specific criteria.

Once they have assessed your case, they can initiate the process of securing an agreement in principle for you. At Beverleymoneyman, we prioritise efficiency and aim to provide you with an agreement in principle within 24 hours of your free mortgage appointment.

It’s important to note that an agreement in principle does not guarantee or automatically commit you to a mortgage. It offers the advantage of having an expert review your credit file in advance, which can help protect your credit score.

Our team of dedicated mortgage advisors in Beverley is committed to getting our recommendation right the first time, ensuring that you have the best chance of a successful mortgage application.

Should I use a Mortgage Broker in Beverley? 

When it comes to finding the right mortgage solution, there are advantages and disadvantages to both approaching a mortgage broker in Beverley and going directly to lenders. The choice ultimately depends on the speed and level of security you desire.

At Beverleymoneyman, we are a dedicated mortgage broker in Beverley with extensive experience assisting clients at various stages of their mortgage journey.

Whether you’re a first time buyer in Beverley taking your initial steps into the mortgage world, nearing the end of your fixed period, or looking to remortgage in Beverley, our team is here to provide expert guidance.

You can easily book a free mortgage appointment or remortgage review to speak with our knowledgeable mortgage advisors in Beverley. We understand the importance of flexibility and strive to accommodate your availability, subject to our schedule.

To gain further insight into our services, we encourage you to explore the exceptional customer reviews we have received.

These testimonials reflect the high level of service we consistently provide to our satisfied clients. Additionally, you can find valuable mortgage-related content on our YouTube channel, MoneymanTV.

When it comes to your mortgage goals, our team is dedicated to helping you find the right solution. Contact us today to discover how we can help you on your mortgage journey.

Pros and Cons of Equity Release in Beverley

In this article, we will explore the advantages and considerations of equity release plans, which are commonly recommended for individuals aged 55 and above.

Equity release in Beverley allows homeowners to unlock tax-free funds from their primary residence. One of the key features of equity release in Beverley is that you retain full ownership of your property.

We will delve into the benefits and potential drawbacks of equity release, providing you with a comprehensive understanding of this financial option. By examining both the pros and cons, you can make an informed decision about whether equity release in Beverley is the right choice for you.

Pros of Equity Release in Beverley

• Financial flexibility: Equity release offers the flexibility to access funds as a lump sum or in smaller amounts as needed. By taking money only when necessary, you can potentially reduce the amount of interest payable. After thoroughly assessing your circumstances and goals, we will provide recommendations on the most suitable approach to minimise interest costs.
• Retaining ownership: Whether you choose a regular mortgage, retirement interest-only mortgage, or lifetime mortgage (equity release) plan, you will retain 100% ownership of your property. The outstanding loan is typically repaid upon your death or when you enter long-term care. You have the right to continue living in your property or downsize if needed until these events occur.
• No negative equity guarantee: All lifetime mortgage plans come with a no negative equity guarantee. This means that when your property is eventually sold, after your passing or transition into long-term care, your estate will never owe more than the sale value of the property.
• Interest payment options: With lifetime mortgages, you have the flexibility to choose how you manage interest payments. You can opt to pay monthly interest, make no monthly payments, or find a middle ground to minimise the accumulation of interest. Our equity release advisor in Beverley will guide you in determining the best approach for your situation.
• Inheritance planning: If desired, we can collaborate with your financial advisor to incorporate equity release into your inheritance tax planning strategy. This ensures that your estate’s financial affairs are aligned with your long-term objectives.

Cons of Equity Release in Beverley

• Limited or poor advice: It is important to be aware that some clients have received insufficient or restricted advice solely focused on equity release plans. To ensure comprehensive guidance, always verify that your equity release advisor in Beverley offers advice on the full range of later life lending solutions and operates independently. We take pride in being one of the few UK companies capable of providing advice on the complete range while maintaining independence.
• Should be a last resort: Before considering equity release in Beverley, your advisor should explore other later life lending products such as regular mortgages, retirement interest-only mortgages (RIOs), and hybrid products. These alternatives may better suit your circumstances and should be thoroughly evaluated before an equity release recommendation is made.
• Impact on benefits: It is important to note that releasing equity could potentially impact means-tested benefits you currently receive. Your advisor will assess the potential effects and provide guidance to help you make an informed decision.
• Reduced inheritance: Choosing to release equity may result in a reduced inheritance for your children or beneficiaries. To maximise your inheritance, you can explore the option of releasing equity in smaller increments, carefully managing the amount released.
• Early repayment charges: Equity release in Beverley is a long-term lending solution, and most products include early repayment charges, typically applicable within the initial ten years. It is essential to consider these charges when evaluating the suitability of an equity release plan. Your advisor will explain the terms and conditions associated with early repayment charges.

What should be considered first, before equity release in Beverley?

At Beverleymoneyman, we pride ourselves on being among the select few mortgage advisors in the UK who can assess the entire range of later life mortgage products.

In considering the available options, we prioritise regular mortgages, which, in certain cases, can extend until the age of 85. We also explore the diverse array of specialist retirement interest-only mortgage products (RIOs) and lifetime mortgages, including equity release plans.

Our dedicated later life team will carefully evaluate your unique circumstances and recommend the most suitable product or combination of products. It is essential to remember that equity release in Beverley is not the sole solution, and there may be another option that better aligns with your specific needs.

Please note that equity release in Beverley plans allow you to release equity solely from your primary residence and not from a second home or buy to let property. In such situations, regular mortgage options may be more appropriate.

How Clients Use Equity Release Funds

Our clients have various motivations for considering equity release in Beverley, with common reasons including home improvements, managing financial changes due to late-life divorce, paying off an existing mortgage, providing financial support to family members, and supplementing retirement income.

Equity release plans offer flexibility, allowing you to access funds either as a lump sum or in smaller increments whenever needed. Our knowledgeable equity release advice team in Beverley will carefully assess your circumstances and guide you towards the most suitable approach.

The Equity Release Process

To get started, simply book your free, no-obligation consultation with our dedicated later life team in Beverley. You have the convenience of booking either by phone or online.

During this consultation, we will address any queries you may have and provide you with an overview of the available products, associated fees, and the amount you can potentially release.

Once you’ve had your initial meeting and decide to proceed with us, your mortgage advisor in Beverley will arrange a more in-depth follow-up session. This meeting will delve into the details, ensuring you are fully prepared for the application process.

Rest assured, we are committed to making the journey as stress-free as possible for you. We’ll assist you with every step, including arranging solicitors and navigating any valuation or legal requirements that may arise.

Involving Your Family

When it comes to equity release in Beverley, we highly recommend involving your family members right from the start. Their support and input can be invaluable during the application process, and they often bring up important questions and considerations.

Having your family members involved will provide you with reassurance that you have chosen the right company and will enhance the overall understanding of the benefits and potential drawbacks of the plan.

We welcome and encourage your family members to participate in the discussions, and we are more than happy to address any questions or concerns they may have.

With our video software, it’s convenient to include multiple family members in the calls and discussions, ensuring everyone is well-informed and involved in the decision-making process.

Book a Free, No-Obligation Consultation!

If you’re ready to move forward, we are here to assist you every step of the way. You can easily reach out to us by phone or book an appointment online to book a free consultation focused on later life mortgage options.

During the consultation, we will address any inquiries you may have and provide personalised recommendations tailored to your circumstances. Rest assured, we only require your ages and address for the call, ensuring a hassle-free experience.

To accommodate your busy schedule, we offer evening calls that can be adjusted to work around your work commitments or childcare responsibilities. We are committed to making the process as convenient as possible for you.

To understand the features and risks, ask for a personalised illustration. Equity Release in Beverley may come in the form of a lifetime mortgage or home reversion plan.

A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means tested benefits. The loan plus accrued interest will repayable upon death or moving into long term care.

A home reversion plan involves selling all or part of your home to a plan provider in exchange for a tax-free lump sum.

Do You Need Life Insurance in Beverley For a Mortgage?

Life insurance in Beverley is not a mandatory requirement when taking out a mortgage. The only insurance that is typically required by most mortgage lenders is buildings insurance, which covers the structure of the property.

Although it is not a necessity, having life insurance in Beverley can be extremely beneficial for homeowners and home buyers.

Life insurance in Beverley provides financial protection for your family in the unfortunate event of your death, ensuring that they can continue to meet mortgage repayments and maintain their current standard of living.

The loss of your income can create significant financial strain for your family, making it difficult for them to keep up with mortgage payments.

This could potentially force them to sell the property and find alternative accommodation. Additionally, there are other ongoing expenses to consider, such as childcare costs and general living expenses.

Having life insurance in place can provide peace of mind, knowing that your loved ones will have the necessary financial support to handle the mortgage obligations and maintain stability during a challenging time.

How does life insurance in Beverley work?

Life insurance in Beverley offers a range of policy options, most of which provide a lump sum payment to your loved ones in the event of your passing. This payout serves as a financial safety net, offering support during a challenging time. Alternatively, you may opt for regular payments to your family instead of a lump sum.

The coverage amount and premiums for life insurance in Beverley depend on your individual circumstances and the specific terms of the policy you choose. Insurance providers offer various options, and it’s important to consider factors such as age, lifestyle, and medical history when determining the cost of your insurance.

Generally, being younger and healthier can result in more affordable insurance quotes.

The payout from a life insurance policy can be utilised according to your family’s needs. Many individuals use it to cover mortgage payments, ensuring that their loved ones can continue living in their home without the added financial burden.

Why would I need life insurance in Beverley?

Purchasing a home is an exciting milestone, representing a significant investment and a place to build lasting memories. It’s important to acknowledge that homeownership comes with potential risks and uncertainties.

That’s where life insurance in Beverley becomes an invaluable asset, offering a safety net and providing peace of mind.

Life insurance in Beverley plays a crucial role in safeguarding the financial well-being of your loved ones. In the event of your untimely passing, life insurance in Beverley ensures that your family or dependents receive a payout, which serves as a vital source of financial support.

This helps them manage immediate expenses and future financial obligations with greater ease and security.

The payout from a life insurance in Beverley policy can alleviate the financial burdens associated with homeownership, such as mortgage payments, property maintenance costs, and other living expenses.

It provides your family with the necessary resources to maintain their quality of life during a challenging and uncertain time.

By obtaining a life insurance in Beverley policy tailored to your specific needs, you can effectively mitigate the risks inherent in homeownership. It offers a sense of reassurance, knowing that your loved ones will be financially protected and provided for, even in the face of unexpected circumstances.

Having the safety net and peace of mind provided by life insurance in Beverley allows you to fully embrace the joys of homeownership, focusing on creating a comfortable and fulfilling life for you and your family, without unnecessary worries about the future.

Do I need life insurance in Beverley if I have no dependants?

While being single may mean you don’t have immediate dependents, there are still important reasons to consider getting life insurance in Beverley. Even without a spouse or children, life insurance in Beverley can provide valuable protection and peace of mind.

If you have a mortgage and pass away before fully paying it off, your assets could be at risk. This could lead to potential difficulties if someone else, such as a family member or friend, is living with you and relying on your home.

By having life insurance in Beverley, the payout can be used to settle these debts, protecting your assets and ensuring that your loved ones can continue to have a stable living situation.

Furthermore, life insurance in Beverley for single individuals can serve various financial purposes. It can help cover funeral expenses, relieving your friends and relatives of any financial burden during a difficult time.

You can also use the payout to make charitable donations to causes close to your heart or leave a meaningful gift to a loved one, such as a niece, nephew, or close friend.

Even if you don’t have immediate family members who rely on your income, you may still have individuals who depend on you financially. This could include a sibling or a parent who relies on your support.

Life insurance in Beverley can provide them with the financial security they need in the event of your passing, ensuring that they can maintain their quality of life.

Do I need life insurance in Beverley if I am a landlord?

While life insurance in Beverley is not a requirement when obtaining a mortgage, it is worth considering the benefits of having life insurance in Beverley as a landlord. Life insurance in Beverley for landlords provides valuable protection that goes beyond mortgage coverage.

In the unfortunate event of your passing, life insurance in Beverley serves as a safety net for your loved ones, ensuring that they are not burdened with the financial responsibilities associated with your property investments.

As a landlord, you understand the importance of generating rental income to support your financial goals and provide for your family.

With life insurance in Beverley, your family or beneficiaries can receive a payout that helps replace the rental income loss resulting from your passing.

This financial support allows them to maintain their stability, cover ongoing expenses, and potentially continue managing the property or seek professional assistance if needed.

The payout from the life insurance in Beverley policy provides peace of mind, knowing that your investment and the well-being of your loved ones are protected even in your absence.

How long should I get life insurance in Beverley for?

The duration of your life insurance coverage should be carefully considered and aligned with your specific circumstances and requirements. It is important to ensure that your policy term adequately meets your financial obligations, including your mortgage.

When obtaining life insurance in Beverley, it is generally recommended to match the policy term with the duration of your mortgage. For example, if you have a 30-year mortgage, having a life insurance policy that lasts for at least 30 years can provide valuable protection.

This ensures that in the event of your passing, the payout from the life insurance in Beverley can be used to settle the remaining mortgage balance, alleviating any financial burden on your loved ones.

It’s important to note that there may be other factors to consider beyond just the mortgage. If you have additional financial responsibilities, such as ongoing family living expenses or funeral costs, it may be prudent to extend the duration of your life insurance policy beyond the mortgage term.

This will provide extra coverage and financial support to your loved ones, addressing their ongoing needs and maintaining their financial stability in the event of your untimely passing.

Speak to a Trusted Protection Advisor in Beverley

When faced with crucial decisions regarding life insurance in Beverley, it is strongly advised to seek guidance from a reliable protection advisor in Beverley, such as the professionals available at Beverleymoneyman.

A knowledgeable protection advisor in Beverley can offer valuable assistance in navigating the complexities of life insurance in Beverley. They will help you explore the various policy options, comprehensively explain the terms and conditions, and evaluate your unique needs and circumstances.

By engaging in meaningful discussions about your financial objectives, family dynamics, and long-term plans, you can gain a clearer understanding of the diverse coverage options available to you.

Whether your primary concern is safeguarding your mortgage, ensuring the financial security of your family, or addressing any other specific requirements, seeking life insurance advice in Beverley is instrumental in making well-informed decisions.

The expertise and support provided by a protection advisor in Beverley will empower you to select the most suitable policy that aligns with your objectives and provides the necessary protection for your individual situation.

Don’t hesitate to reach out to a trusted protection advisor in Beverley at Beverleymoneyman to access reliable information and personalised guidance on life insurance in Beverley. They will work alongside you to identify your priorities, answer your questions, and assist you in making the best choice for your life insurance needs.

Remortgaging in Beverley When House Value Has Increased

Anyone that is already the owner of a property, whether they own a family home or a buy to let in Beverley, will likely see it as an investment. It’s more than just giving yourself a home, it’s the largest asset in your name, something you can perhaps later sell or pass to your children and beyond.

The property market is always going through changes and moving up and down. There will be times where you may see property prices at major highs.

During these sorts of peaks, it can be worthwhile taking a look at the remortgage options available to you, as you may find that you are actually able to access more favourable loan to values, and in turn much better rates of interest as well.

What is a loan to value and why do people remortgage in Beverley for a better one?

The Loan to Value (LTV) ratio represents the proportion of a mortgage loan compared to the market value of the property, expressed as a percentage. For instance, if you buy a property worth £100,000 with a deposit of £10,000 (10%), you will require a 90% LTV mortgage.

LTV ratios are usually divided into tiers by mortgage lenders. The tiers usually range from 60% to 95%, but this can vary depending on the mortgage lender.

A lower LTV ratio can result in access to mortgage deals with more favorable interest rates. For example, let’s say that after a few years, the value of your property increases to £110,000 and the mortgage balance decreases to £80,000.

This results in a new LTV ratio of 73%. If you were to remortgage in Beverley, you would be looking for a 75% LTV mortgage, which should have a more favorable interest rate. However, other market conditions can also impact the interest rate at the time of remortgaging.

Mortgage lenders offer more competitive interest rates for lower LTV mortgages because they pose a lower risk.

How do I find out the value of my property in Beverley?

To get better interest rates or favorable terms, you need to determine the worth of your property in comparison to what you paid for it. This requires a property valuation.

When you remortgage in Beverley, you switch to a new mortgage lender, as opposed to a product transfer, where you obtain a new mortgage with the same mortgage lender.

Since you are working with a new mortgage lender, they will want to know the value of the property being used as collateral. Typically, there are two types of property valuations: Automated Valuation Model (AVM) and physical valuation.

An AVM, also known as a desktop valuation, is an automated process that cross-references similar properties in the same area to determine the value, without a physical inspection of your property.

On the other hand, a physical valuation involves a professional visiting your home to inspect both the interior and exterior, to determine the true value of the property.

This is particularly useful if you have made any home improvements or extensions that other properties in the area might not have, which an AVM might overlook. If you prefer a physical valuation, you can discuss this with your mortgage advisor in Beverley during your free appointment.

Remortgage in Beverley to Release Equity When Home Value Has Increased

While you can leverage the equity in your home for better deals, you might also choose to remortgage in Beverley to release that equity. People do this for various reasons, such as for funding home improvements.

When it comes to a remortgage in Beverley for releasing equity, it’s important to be cautious. Essentially, you are taking out a new mortgage to replace the old one, but this time, at a higher loan to value. Because of this, your monthly mortgage payments may increase.

The goal for many is that by investing in home improvements, they can increase the value of their property, resulting in a lower loan to value when they remortgage again.

It’s crucial to consider market conditions and have a well-planned strategy when dealing with such a significant financial investment as your home. A mortgage advisor in Beverley can provide the best advice for your specific situation.

Can I remortgage in Beverley early if the value of my home has increased?

In some situations, you may consider remortgaging in Beverley prior to the end of your fixed term. Although remortgaging early is usually ahead of the end of your fixed term, you may have the opportunity to remortgage even earlier, a year before, for instance.

That said, be aware that you may have to pay an early repayment charge (ERC) if you choose to break your contractual terms. Predicting house prices is uncertain, and it may not be financially feasible for you to remortgage early.

Early remortgaging is typically only considered if there is a compelling reason to do so. It is strongly recommended to seek the advice of a mortgage broker in Beverley if you are considering this option.

One example could be during the COVID-19 pandemic when the Bank of England base rate dropped to an all-time low. As a result, people who were set to remortgage in Beverley at the end of their fixed-rate mortgage period had the opportunity to secure these low interest rates.

If you were a year away from this scenario, you might not be able to take advantage of this unless you remortgaged early and locked in a longer term. While this is a specific example from a unique time, it highlights how early remortgaging can lead to financial benefits.

If your home value has increased, it may also be a good time to remortgage early to access lower loan-to-value rates, even though you may have to pay the early repayment charge.

In addition to this, however, you will likely have to pay arrangement, valuation, and solicitor fees for your new mortgage, in addition to the early repayment charge (which may be waived by your current mortgage lender if you opt for a product transfer).

Before making a decision, it’s important to speak with a mortgage broker in Beverley to understand your options and determine whether your savings will outweigh the costs.

Buying a Property with a Friend or Partner in Beverley

Over the years, property price inflation has far outstripped wage increases. These days you will find that mortgage applicants, especially first time buyer in Beverley, are in difficulty when it comes to affording to purchase a home at the prices they are at.

When a home buyer is in this circumstance, they usually explore the option of moving in with someone else as a way to cut costs. A joint mortgage can be helpful for this because you will have two incomes for a mortgage lender to take into account when working out the maximum amount you can borrow.

Sharing the costs with someone can help you out when managing your monthly mortgage payments. On the flip side, it’s not as straightforward as moving in with someone instantly.

The process involves meeting a large amount of mortgage lending criteria and things to think about before you make a decision. As a reputable mortgage broker who has years of experience providing trusted mortgage advice in Beverley, we are asked about a joint mortgage on a regular basis.

Below are the most common questions we get asked and will hopefully help you throughout your mortgage journey.

How many people can jointly own a property?

There is a possibility that you can have up to four names on a mortgage to co-own a property, however, this comes down to the mortgage lender. Please keep in mind though, the more names linked to a mortgage deal, the more the likelihood that someone may drop out.

In the case where someone did drop out of the mortgage, the remaining joint owners are still legally able to keep living in that property, unless a court overruled it. Therefore, you will need to be very careful about who you decide to buy a home with.

If the option is available to you, now and again homeowners with a joint mortgage might think about increasing the mortgage, however, all parties present on the contract will have to agree to this. Again, you will need to consider your future plans for the property.

Joint tenancy or tenancy in common?

Through our experience as a mortgage broker in Beverley, we regularly see that married couple or applicants in a civil partnership will go for the option to go with a joint tenancy in which you have equal ownership of the property. In the event that one party passes away, the other owner would get the property.

With this in mind, for those considering remortgaging in Beverley at any point, or selling it down the line, either party would have to agree to this before you resume the process.

You may find that tenants in common usually are applicants who are relatives or friends. You both have equal ownership of the property but are not forced to do so in shares.

Usually, this circumstance happened when one party is making a bigger financial input than the other. If you are a tenant in common. For instance, you can sell or give away your share of the property to someone else.

What happens if one party stop making mortgage payments?

One of the disadvantages of being a property co-owner is if a party stops paying their share of the property, which is, unfortunately, more likely with multiple people attached to a property. Obviously, as with any mortgage, you have to keep up with the payments you contractually agreed to.

In the case where one party is finding it particularly struggle to keep up with their monthly mortgage payment and decides to not pay, the other party will need to make up the shortfall.

If that payment isn’t made, you could all end up in arrears, which can negatively impact your credit score and may create issues with obtaining another mortgage in the future.

It definitely is an option to look into if you don’t own 20%, 50%, or whatever the percentage is. You’re a combined entity and own 100% jointly.

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

Removing a person’s name from a mortgage can sometimes be a difficult process and this is due to a range of reasons.

One of the more popular reasons that we do encounter is that the mortgage lender is hesitant that the applicant left on the mortgage will be able to manage their monthly payments. In the case where you are unable to do so, they are unlikely to allow you to do so.

A mortgage is a significantly large financial commitment and that’s why it can be complicated to make alterations to something that has already been contractually agreed upon.

Even though you may be able to manage to keep up with your payments since your ex moved out, they will still need to carry out an affordability assessment on you (just the same as they did at the point of purchase), to make their own judgement on whether or not you can afford it.

The majority of mortgage lenders don’t favour the idea of allowing applicants to put their mortgage into a sole name, like having more names on a mortgage reduces the chance of arrears coming up. This is due to having more than one source of income.

In the circumstance where your sole-name mortgage request is declined by your mortgage lender, we do recommend that you get in touch with a mortgage advisor in Beverley about your situation. Obtaining specialist mortgage advice in Beverley could be beneficial to your circumstance and help you get a sole-name mortgage.

As well as this, we do advise that you speak to family members to see if they are able to help out. There is a possibility that they could help by replacing your ex on your mortgage or by gifting you a lump sum that could help reduce the amount you owe on the mortgage balance.

How do I remove my name from my ex-partner’s mortgage?

If you and your partner split up and you are the one to leave the property, you are still responsible for meeting your monthly mortgage payments, regardless of if you and your ex have agreed that they will be the ones making the payments.

Similar to removing an ex’s name off a mortgage, the same principle applies to removing your name. The only circumstance where the mortgage lender will only allow you to remove your name is if they are sure that your ex is able to afford the payments through their affordability assessment.

We do find that some may arrange with their partner to send them money each month, however, they do need to keep an eye on your own credit report to ensure that they are paying their portion too. If they default on payments, this can result in harming your own credit score.

In the circumstance where you are still on your ex’s mortgage and are looking at moving home in Beverley into another property as well as getting a new mortgage, your mortgage lender should account for your circumstances. This could result in you not borrowing as much as you’d like.

In any case, there is a risk when it comes to buying a property as situations can change. As a mortgage broker in Beverley, we would recommend going into the home buying world with an open mind. Don’t worry if your plans change drastically there is normally a way to solve your problem.

In the situation where you are having a challenging time with your joint mortgage, it may be best to book a free mortgage appointment with a knowledgeable mortgage broker, to get mortgage advice in Beverley.

What is Gazumping? Should Home Buyers Be Afraid Of It?

The term ‘gazumping’ is a term that may be familiar to you, however, have you may not be sure of what it is about. The word ‘Gazumping’ is terminology for when the seller of the property you are interested in accepts another offer from another party, prior to your purchase being completed.

Originating from the Yiddish word ‘Gezump’, it was used to describe when someone swindles or cheats someone out of something, being primarily used way back in the 1920s.

Now ‘Gazumping’, it is a word prominent in house buying and was regularly used in the 1970-80s.

Is Gazumping illegal?

Through our experience as a mortgage broker in Beverley, we have been able to speak with customers regularly on the topic of Gazumping. We’re often asked if Gazumping is illegal, and the unfortunate answer to this, is that it’s not.

This is something that many home buyers may be asking when they go through the home buying and mortgage process across the country. Nobody quite understands how this type of practice is legal, despite how immoral it is.

The reason that Gazumping is deemed to be completely fine and legal, is because you and the seller are not contractually bound, no meeting with lawyers has taken place. As such, they have no obligation to sell to you, as your agreement has only been verbal.

The idea of being gazumped can be a scary one for first time buyers in Beverley especially, even if it may be less likely to occur. It’s an understandable feeling, as this gives you the risk of losing your dream home and nobody wants that to happen, especially if you are in a property chain.

Another factor that can affect home buyers is the idea that they may lose money from being Gazumped. Non-refundable expenses that are involved with the home buying process such as property surveys, conveyancing fees and mortgage arrangements fees.

How does Gazumping happen?

As touched upon above, the agreement between both parties to buy or sell a property, whilst you may want it to be honoured, is not legally binding. This only happens when lawyers exchange contracts to make it official.

It is not a simple process to make this happen. The mortgage process can often take several weeks, with the point between an offer being accepted and the contracts being exchanged taking quite a while to happen.

It’s generally during this step where an eager first time buyer in Beverley may jump in whilst your process is going on, and make a much more preferable offer to the seller of the property. They can do this either by speaking with the estate agent or going directly to the seller themselves.

The more favourable deal may also include things such as a higher purchase price, a faster sale or a particular buyer who is not going through a property chain. Gazumping covers all these circumstances wherein a seller may prefer another buyer over you, despite giving their word.

Buyers Market vs Sellers Market

One factor that could impact the chances of being Gazumped by a seller is the type of market that is currently happening, such as a sellers market or a buyers market.

For example, if the market is currently a sellers market, this means that there is a very popular, busy market. Commonplace occurrences are high demand, fewer properties, people wanting to buy and bidding wars between buyers that could see property prices rise.

In this instance, you will find that Gazumping is much more likely to happen, because someone may jump in with a higher bid for the seller, who at that point may be likely to accept.

On the other side of the coin, if the market is currently a buyers market, this means there are more houses than buyers, and a seller may not be receiving a lot of offers. This means you have less chance of someone Gazumping you and there is more space for price negotiations with the seller.

Ways to Avoid Being Gazumped

One of the reasons why you may experience a delay between your offer being accepted and the contract exchange, could be because you need a property survey to be carried out.

Below are some useful ways in which you could increase the possibility of you achieving higher mortgage success and avoiding being Gazumped.

• Search for a conveyancing solicitor or surveyor early into the process, so you can reduce the wait time.
• Provide all the necessary information as quick as you can for a smoother mortgage process.
• To show the lender that you are ready to go, obtain an mortgage agreement in principle. This will provide you with an advantage over other buyers who cannot yet prove they are eligible for a mortgage.

Other Helpful Gazumping Tips

We would recommend that you first ask the seller to remove the property from the open market. They’re under no obligation to do this, but doing so means the property is not as visible to potential Gazumpers.

We typically find a lot of sellers will honour their buyers request and indeed remove it from the open market, especially if it is a buyers market and they aren’t receiving many offers.

Putting in place a lock-in agreement, where both sides will make a deposit towards a binding agreement between one another, can be another handy trick. If any one party chose to withdraw or alter their deal, the other party would keep that parties deposit.

This can be costly due to the legal fees involved, though it may very well be worth the money saved and security provided to you during your mortgage process.

You could also look at insurance products, as having something in place to protect you from Gazumping can be a useful way to save yourself from losing money.

How a Mortgage Broker in Beverley Can Help

Even though Gazumping can never be 100% prevented, there are lots of ways to protect yourself as a buyer. As an open & honest mortgage broker in Beverley, we are here to help.

Book a free mortgage appointment today and see how our helpful team are able to help you on your mortgage journey as a first time buyer in Beverley.

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.

• How do I remove my ex’s name from my mortgage?
• Can I remove my name from my ex’s mortgage?
• Am I allowed to have a second mortgage?

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.