Obtaining a mortgage can be a complex process, especially for first time buyers in Beverley taking their first step into homeownership or considering a move, exploring remortgage possibilities, or entering the buy to let market. At the core of this process is a critical element: your credit score.
In straightforward terms, a higher credit score increases the likelihood of mortgage approval. However, it’s essential to recognise that each mortgage provider adheres to its unique credit scoring policy. A rejection from one high street bank does not predetermine a similar outcome with others.
The process of securing a mortgage presents a common challenge – figuring out which credit reference agency a lender will use . Unfortunately, this information isn’t always transparent, with lenders alternating between Experian, Equifax, and Call Credit.
In light of this, a careful approach involves checking multiple credit reference agencies. Disparities in information among agencies can impact your credit score and, consequently, your eligibility for a mortgage.
Improving your credit score is a pivotal task, unlocking opportunities for favorable interest rates and terms. This, in essence, results in lower monthly payments and reduced overall repayment costs.
Before checking your credit score, it’s important to avoid applying for new credit until you’re officially registered with a credit reference agency. Each credit application triggers a credit search, potentially affecting your credit score.
Lenders often consult the electoral roll to verify your identity during credit applications. Ensuring your details are up-to-date on the electoral roll is key, as not being registered can negatively impact your credit score.
Registering is a straightforward process, achievable online or through a paper form submitted to your local council.
An effective strategy to boost your credit score involves maintaining “active credit,” such as a credit card that sees regular use and is paid off in full each month.
This showcases responsible financial management. However, acquiring new credit can have a short-term impact. Therefore, if a mortgage application is on the horizon, deferring new credit pursuits is wise.
Consistently reaching the credit limit on your credit card or exceeding it can harm your credit score, a practice best avoided.
Taking a meticulous approach to recording previous addresses prevents discrepancies and the appearance of simultaneous residency in two locations.
Canceling unused credit or store cards can streamline your credit portfolio. While this action may momentarily impact your credit score, it sets the stage for improvement over time.
If you had joint financial accounts with an ex-partner, their credit score might affect yours. Preventive measures involve notifying credit reference agencies of the separation and severing any lingering links.
To position yourself optimally for the right mortgage in Beverley, maintaining an up-to-date credit report for your mortgage broker is key. This empowers them to comprehend your financial situation thoroughly, enabling the recommendation of suitable mortgage options.
As dedicated mortgage brokers in Beverley, our mission revolves around discovering the best mortgage or remortgage solutions for your circumstances. Get started your journey with a free mortgage appointment with an expert mortgage advisor in Beverley today.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
If you are looking at moving home in Beverley, you may be trying to weigh up pros and cons of an area to see whether it is the place for you! Beverley offers a variety of landscapes and areas fit for every buyer.
Whether you prefer being in the rush of the town centre where you are close to shops, transport links and places of work, or you would like to be nestled in the calm and peaceful countryside, it’s important to list out where your preferences are. These could be for your benefit of yourself e.g looking for a rural area to get away from the town centre where you may work or it could be for convenience e.g living in the town centre so you are close to transport links or commuting.
Transport links can be key for people who need to commute and may not drive or are looking for a cheaper alternative to get about. With this in mind, it may be best to look into the type of transport links there is from Beverley like the bus and even the road links surrounding it like motorways. As well as this, it’s good to look into the costs of transport links.
In the situation where you have children or you are planning on starting a family, finding a place with a school nearby may be at the top of your agenda. We do recommend that you research the range of schools that Beverley has to offer and you will be able to see further information regarding Ofstead ratings and where the school ranks on the league table.
Naturally, you will be listing the facilities you would like to be near whether it’s amenities you need or would like. By listing out the wants and needs, you can be able to choose your dream home if you are stuck between two options. For example, would you rather live in a property that is near a supermarket for your weekly shopping or would you want to be located near the gym?
We do find many people prefer having a shop on their route home but some would like to have a gym on their route home from work. For those with children, they may prefer to have a park nearby.
One of your preferences may be that you would like to be located closer to friends and family. Through our experience as a Mortgage Broker in Beverley, one of the reasons why people may look at Moving Home in Beverley is to be near friends and family. This may be a brilliant idea if you are looking for some support nearby if you are in need or, for some, this may be for childcare.
On the other hand, you may find you move into an area within Beverley with a welcoming community who will help where they can with anything you need and you may prefer leaving further away.
Looking for a property that is not only within your budget but is ‘good value for money’ may be important you. Keep in mind that the price range of properties does heavily depend on the area you are looking. If you’re looking for a property on the reasonable side, you may need to dismiss some of your wants.
This can be a prominent point for homebuyers who are moving into a new area where they don’t know anyone there meaning they may heavily rely on communicating support and spirit to settle them in. One way you can find out about the community spirit in Beverley is by asking your estate agent who will have the knowledge you need for this.
Alternatively, many communities do have Facebook groups or local websites dedicated to the community where they may promote many events, club and activities that is going on in the area and could be helpful for you if you are looking to be an active part of the community.
First time buyers in Beverley may move into a new build within Beverley which will mean they won’t be the only new people on the street. If you are in this situation, it’s important to build a community with your fellow neighbours.
Another big event that can effect you moving is starting a new job or career in a different area. This may help with how far you want your property to be from home whether it be a short walk away or a 20 minute car drive,. If you are job hunting after your move, it’s important you look into what places of work there is in Beverley as well as the leading employers in the area.
When it comes to property, that are a variety available on the market for home buyers. Your dream home may be an end-terrace with a large garden or it may be a modern, two bedroom apartment within the town. Either way, look through the types of properties on offer and see which one is the most appropriate one for you!
If you are propert hunting for a home that you will want to live in for the foreseeable future, it may best to find out any current or future investments in the area to see whether it will be impacted or benefit you. For example, a new housing development nearby may not be ideal if you are looking for a property in a quiet, rural area. Therefore, this could be a massive deciding factor for you and one that may help you weigh up your options.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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:
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.
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.
A 95% mortgage is as simple as the name would suggest; you are borrowing against 95% of the price of a property, and then you are covering the remaining 5% with your deposit. An example of this is if you looked at buying a property that was worth £150,000 with a 95% mortgage, you would be putting down £7,500 as your deposit and borrow the remaining £142,500 from the lender.
Off the back of the March 2021 Budget, Boris Johnson announced a Mortgage Guarantee Scheme for mortgage lenders, making 95% mortgages more readily available from the bigger high street banks.
This is fantastic news for First-Time Buyers and Home Movers alike, as this scheme will continue running until December 2022. Certain terms and conditions will apply though, which is something your Mortgage Advisor in Beverley will be able to look at, to see if you qualify.
All our customers who opt to get in touch will receive a free, no-obligation mortgage consultation where one of our dedicated mortgage advisors will be able to make a recommendation on the best possible route for you to take.
95% mortgages are usually accessible by both first time buyers in Beverley & those who are moving home in Beverley. Whilst saving for a 5% deposit sounds like a pretty straightforward concept, you’ll still need to have an acceptable credit score and prove that you are able to afford your monthly mortgage repayments, in order to access a 95% mortgage.
A good credit score is essential in the process of obtaining any mortgage, especially a 95% mortgage. Things like paying any current credit commitments on time, ensuring your addresses are updated and checking that you’re on the voters roll, can all help with your credit score.
Affordability is another one that is important to take note of. By giving the lender details of your income and monthly outgoings (things like your bank statements will be necessary for this) and any pre-existing credit commitments, your lender will be able to get a general overview of whether or not you are able to afford this type of mortgage.
Nowadays we see lots of family members helping each other get onto the property ladder, especially parents looking to further their children’s lives. The way this usually happens is by gifting the person looking to find their home, the deposit required. Known through the industry as the “Bank of Mum & Dad, Gifted Deposits are only intended to be a gift, and not as a loan. The lender will need proof that this has been agreed, before it can be used towards your mortgage.
When looking for a 95% mortgage, you want to make sure you have the right type of mortgage. Each mortgage type works differently, with that choice allowing you to find one that is most appropriate for your personal and financial situation.
Some homeowners and home buyers prefer Fixed Rate or Tracker Mortgages, mortgage types which mean you either keep interest rates at a set amount for the term given or have your interest rates tracking the Bank of England base rates.
Alternatively, you might find that Interest-Only or a Repayment Mortgages are more your style. Interest-Only allows cheaper payments until you need to pay a lump sum at the end (mostly now used for Buy-to-Lets), whereas a Repayment mortgage (a normal mortgage if you’d like) means you’ll be paying interest and capital combined per month.
Seeing as a mortgage is such a large financial outgoing, you need to be prepared and need to be aware. You might find things like higher interest rates, remortgaging difficulties due to less equity and then negative equity all cropping up if you’re not.
There is no need to worry though, as all these can be avoided if you’re savvy enough with your process to begin with. The more deposit you put down for a property, the less risk the lender will see you as.
A larger deposit, of say 10-15%, would not only reduce the rates of interest by a noticeable amount, but would also give the property more equity and reduce the risk of negative equity, thanks in part to you borrowing less against the property.
So, whilst the risks may seem intimidating, planning ahead and saving for a bigger deposit to access something like a 90% or even an 85% mortgage will be a massive help in your mortgage journey and something you’ll be able to reap the rewards from in the future.