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

The term ‘gazumping’ may be one you have heard before, however, have no idea what it’s about. The word ‘Gazumping’ is used when the seller of the property you are interested in accepts another offer from someone else prior to the sale of the property to you is completed.

Derived from the Yiddish word ‘Gezump’, in which someone swindles or cheats someone out of something and was used back in the 1920s, ‘Gazumping’ has been related to house buying and was a common term in the 1970-80s.

Is Gazumping illegal?

Through our experience as a Mortgage Broker in Hull, we have had the opportunity to speak to customers regarding Gazumping. The most common topic surrounding gazumping is if it’s illegal. Unfortunately, Gazumping is legal despite how immoral it is.

This is a question that is in many people’s minds when they are going through the home buying process across England and Wales. Thoughts of why and how this practice can be legal despite its lack of morality are a common occurrence.

Gazumping is deemed a legal act because the deals you make between you and the seller aren’t legally binding until written contracts are exchanged by lawyers. Therefore, the seller has no obligation to hold onto the property. All the essentials are agreed upon verbally up until your deal is completed.

The concept of being gazumped can be very daunting amongst lots of home buyers especially with First Time Buyers in Hull, regardless of whether there is a chance of it happening. It comes with the possibility of losing your dream home. It’s an event that no one wants to happen, in particular, for those who are a part of a property chain.

Another factor that can affect home buyers being gazumped is the idea of them losing money over the event. Non-refundable expenses that come with the home buying process like property surveys, conveyancing fees and mortgage arrangements fees.

How does Gazumping happen?

As mentioned, the agreement between both parties to buy or sell a property is not a legally binding one. It only becomes that when the lawyers undergo the exchanging of contracts.

It’s not as simple as it sounds. The process can come with long delays that are usually several weeks from having your offer accepted to the exchange of contract.

Usually, this certain time period can be where other prospective First Time Buyers in Hull may interfere in the process between you and the seller by making a more favourable offer on the property. This can happen through them speaking to an estate agent or by going directly to the seller.

The more favourable deal may have been a higher purchase price, a faster sale or a particular buyer who has no pressure from a property chain. Gazumping covers all these circumstances that the seller would prefer in the midst of your mortgage process.

Buyers Market vs Sellers Market

One factor that could impact the chances of being Gazumped by a seller is whether the market is a buyers or sellers market.

For example, if the market is currently a sellers market, this means that the market is hot. This will involve a high demand, fewer properties, people wanting to buy and bidding wars between buyers that could make the prices rise. In this circumstance, Gazumping is more likely to take place because could come to the seller at a much higher price.

On the flip side, if the market is currently a buyers market, this will come with more houses than buyers, a seller may not be receiving as many offers. This means you have less chance of someone Gazumping you and means you have much more room to negotiate on price.

To keep up to date with the current state of the market, check out our Mortgage Market Updates video on Moneyman TV presented by the Moneyman himself, Malcolm Davidson.

Ways to Avoid Being Gazumped

One of the reasons why the delay may happen between the offer getting accepted and the exchange of contract between two parties could be due to needing a property survey carried out. This involves your conveyance undergoing the appropriate searches and you will receive your mortgage.

Below are some helpful ways to help increase your chance of advancing further to mortgage success and avoid being Gazumped.

• Look for a conveyancing solicitor or surveyor early on in order to reduce the wait time.
• Provide all the necessary information as soon as possible to quicken up your mortgage process.
• To demonstrate to the lender that you are ready to proceed, get a mortgage agreement in principle. This will give you an advantage to those who try and get in there without confirmation of their mortgage eligibility.

There are plenty more mortgage tips out there that you can benefit from during your mortgage journey and increase your chances of getting a mortgage.

Other Helpful Gazumping Tips

It’s best to start by asking them to remove the property from the open market, this can be stated in the mortgage offer. By doing this, you have made the property less visible to people, therefore, reducing any more offers being made which will then reduce your chances of being Gazumped.

This is more of a negotiating point so the seller doesn’t have to agree with this because there is no obligation. Despite this, we do find that sellers these days respect this request from a buyer. Even more so if they haven’t been receiving as many offers already.

Putting in place a lock-in agreement, where both sides put down a deposit towards their binding agreement can be another helpful thing to do. If any one party chose to withdraw or change the deal, the other party would take their deposit.

You may find that there are legal fees in this circumstance which can make it a costly decision. However, you may feel that having this set up is worth the money and provide security during your mortgage process.

Another option is to look at the potential insurance products that could protect you against the prospect of Gazumping. This will work by the policy being paid out in the event of being Gazumped which, in turn, will reduce the risk of losing money from the fees you have potentially paid in the process.

How a Mortgage Broker in Hull Can Help

Even though Gazumping is never guaranteed to be prevented, there are a plethora of ways you can protect yourself as a buyer from being Gazumped. With our open and honest Mortgage Advice in Hull, we may be able to provide the help and support you need.

Here at Hullmoneyman, we strive in providing a fast & friendly service with the goal of getting you through the mortgage process. This is beneficial if you are a buyer looking for a speedier experience through your mortgage journey.

Furthermore, our expert team are able to get a mortgage agreement in principle sorted for you usually within 24 hours of your free mortgage appointment.

Having this AIP with you can demonstrate to the seller that you are in a serious position to proceed and give them the confidence in your getting a mortgage. This can make you stand out from other buyers who may provide a better deal but cannot confirm if they are eligible for a mortgage.

Book your free mortgage appointment today and see how our helpful team can help on your mortgage journey as a First Time Buyer in Hull.

Divorce & Separation Mortgage Advice in Hull

When it comes to divorce or separation, it can be a challenging time. Processing the separation along with arranging finances as well as where you are going to live can slowly build up a lot of stress. Financial commitments should be at the top of your list and may come with some hurdles to overcome.

If there are children involved in these situations, the most common arrangement parents go for is where the children would live with the parent who is more of a stay at home parent. This means that the other parent would move out and there may be a point that whoever is ‘in situ’ wants to carry on the mortgage as a sole applicant. Another option is for both parents to leave the mortgage and begin their own.

Any mortgage commitments you made together could be an element that makes the process a challenging one. If you are finding it difficult to sort this out, you may look at the assistance of a Mortgage Broker in Hull who can provide you with the specialist mortgage advice you need.

Through our time as an expert Mortgage Broker in Hull, our deal encounter with specialist cases on a daily basis. Our experience has provided us with the opportunity to help and guide a large range of customers experiencing a divorce or separation. Below is the top three questions we get asked when people get in touch:

• How do I remove my ex-husband/wife from my mortgage?
• How do I remove my name from my ex-partner’s mortgage?
• Can I have 2 mortgages?

How do I remove my ex-husband/wife from my mortgage in Hull?

With your mortgage commitments, it can be difficult if you are looking to change these. This is because both of your names are on your mortgage and it’s not as easy as it seems if you are looking to remove your now ex-partner off the contract.

If you do approach a dedicated Mortgage Broker in Hull for advice about removing a name from a mortgage, they need to be certain that the remaining applicant on the is able to and afford their mortgage completely as a sole applicant.

Both of you are required to have a full affordability assessment carried out on both of you even if you have kept p with mortgage payments or not. Sometimes, an applicant has managed to prove that they have been paying the mortgage payments without any help from their ex. However, this will not change the fact that their name is still linked into the deal and you still need to pass the lender’s check.

Around this time in the process, our team often find that people have already sorted out someone who will step in and replace the ex-partner on your mortgage. Normally, the person who steps in is either a family member, a close friend or a new partner altogether.

The way your affordability is assessed varies between lenders as they have their own unique way of carrying it out. With this in mind, don’t lose hope if you existing lender can’t help you out. You might find there is additional options out there for you as a homeowner so it’s always best to seek the help of a Mortgage Broker in Hull.

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

The good news is that the process works just the same, however, you are trying to move out and take your name off the mortgage. As mentioned, both of your names are still linked to your mortgage which means you are still responsible for any mortgage payments even if you choose to leave.

Regardless of if you have a verbal or written agreement between you both that states that your ex will be the one managing payments, it is not legally binding in the eyes of the lender so you will be deemed responsible.

In the event that you want to take out a mortgage on a new property, in your name, the lender will still take into account the mortgage payments for your old property. Therefore, it’s best you consider this if you are thinking of taking out a new mortgage. This is we always advise getting help from a professional Mortgage Advisor in Hull ahead of time.

We have found that people in these types of situations usually get confused and stressed out. This is where Hullmoneyman can provide a helping hand. Our friendly team can connect you to be of our experienced Mortgage Advisors in Hull who will be able to sort everything out for you. They can also advise you on the most appropriate option available to you as an individual looking at Moving Home in Hull.

You may find that a number of lenders are more generous than others when it comes to the amount they will lend to you. One may be strict and the other may be more lenient with them looking into your current mortgage commitments being a large factor in this during these circumstances. This is something we will take into consideration when recommending the most appropriate lender to apply for a mortgage agreement in principle with:

Can I have two mortgages?

Depending on a variety of circumstances, many homeowners may have the option to have more than one and even more than two mortgages on different properties. This will involve a lot of things to be assessed from your lender and their credit scoring system if you were looking to apply for a second mortgage.

The overall reason for carrying out these tasks is to determine whether or not you can afford this route. In the circumstance where you are applying for multiple mortgages and are failing, this could negatively impact your credit score.

One of the many benefits of approaching a reputable Mortgage Broker in Hull, like ourselves, is that we are able to carry out a search for you without harming your credit file. As soon as we have keyed in all of your information, we can give you an estimation of the maximum borrowing capacity.

By having this information, you are able to have a rough idea of your budget including the costs of your monthly mortgage payments as well as current financial commitments you may have.

Dedicated Mortgage Advice in Hull

Some individuals find it challenging to move on from their current financial commitment, especially in cases like these. If you are in a similar situation, an expert advisor can provide a helping hand which can provide you with the help you need for the process of removing a name from a mortgage.

The aspect of moving home is already a stressful experience so adding a challenging situation like a divorce or separation can sometimes add some extra weight to the situation. Speak to a Mortgage Advisor in Hull today to see how we can help you.

What is a Mortgage Illustration?

Mortgage Illustration Hull

One of the first items you will receive during the mortgage process is a mortgage illustration. You may be wondering about a mortgage illustration though. It sounds complicated but it actually is not!

To put it simply, a mortgage illustration is a document that brings up every detail of your mortgage deal. Therefore, when your mortgage advisor in Hull recommends a product, they will also show you a mortgage illustration showing everything there is to know about that product.

Being a trusted mortgage broker in Hull, our process to get your mortgage illustration goes like this:

1. When you have booked your free mortgage appointment online, you will be allocated a mortgage advisor in Hull who will have rich knowledge of your situation.
   
2. Our team will search 1000s of mortgages on your behalf with the aim to find you a mortgage product that is appropriate for your situation.
   
3. They will then recommend this to you and will also provide you with a mortgage illustration outlining the deal.
   
4. If you are happy with the deal and want to carry on with us, we can begin preparing your mortgage application.
   

When you contact our team, the process will be mentioned by your mortgage advisor in Hull. We have a team of mortgage advisors who has extensive experience helping first time buyers in Hull and they will be able to break it down as much as possible.

If you’re looking for a brief explanation of what a mortgage illustration is, watch the MoneymanTV video below. Our channel offers additional mortgage tips and explanations as well, so be sure to check it out and subscribe for more information.

What is included in a mortgage illustration?

Your mortgage illustration will detail the main product details, costs of taking out the product, monthly repayments, legal fees and sometimes valuation fees.

Main details

The key details that will be entailed in your mortgage illustration are the duration of your fixed contract, who you are taking out the product with and the interest rate.

Costs of taking out a product

The majority of mortgages include a cost for taking it out. Sometimes people are charged for the mortgage you’re looking to take out, and if you do, this cost will be outlined in your mortgage illustration.

Monthly repayments

Your monthly mortgage payments refer to the amount you are required to pay on a monthly basis. These costs will be calculated by your total mortgage amount, interest rate and fixed term length.

Legal fees

Services of a solicitor do fall into legal fees. As a mortgage broker in Hull, our team can talk you through these before passing you over to them.

Valuation fees

If you have found your dream property, you will be required to have a property survey carried out prior to taking a mortgage out on them. If you are in need of a property survey, these valuations could be included in your mortgage illustration. This can differ from property to property.

Do I have to agree to your mortgage recommendation?

No, you are not required to take out your recommended product. This is why it’s called a recommendation. Your dedicated mortgage advisor in Hull will have carefully selected this product for you and would have tried to find a deal for your personal and financial circumstances.

If you do not want to continue with this deal, however, you will have to lose this deal.

Does a mortgage illustration guarantee me a mortgage?

As much as we would love for this to be the case, unfortunately, we can never guarantee any applicant a mortgage. Remember, that a mortgage illustration follows your free mortgage appointment meaning that you have not provided any documents to back up income, source of deposit and affordability as of yet.

Is a mortgage illustration the same as an agreement in principle?

Prior to receiving your mortgage illustration, you will get an agreement in principle (AIP). This highlights that a lender is willing to let you borrow from them in the principle of you being able to evidence your income, source of deposit, and affordability. etc. This is not the same as a mortgage illustration.

You have to keep in mind that a mortgage illustration is an outline of the mortgage product and not a document from the lender saying that you can borrow from them. As well as this, you need to note that this does not mean you are guaranteed a mortgage either.

Speak to a Mortgage Broker in Hull

Our team have helped many first time buyers in Hull and home movers and would love to help you! Here at Hullmoneyman, we utilise our experience and knowledge over the years to help you find the most appropriate deal.

When your dedicated mortgage advisor in Hull has found you the best deal, you will receive a free mortgage illustration. With our book online system, you can book yourself in for a free mortgage appointment by selecting a time and date that is appropriate for you.

Obtaining an Up-to-Date Credit Report in Hull

Credit report Mortgage Advice in Hull

Why get a credit report for my Mortgage Advisor in Hull?

A Mortgage Advisor in Hull will need to have a good idea of your financial situation in order to find you the most appropriate mortgage for your circumstance. Having an up to date credit report is something we recommend as a Mortgage Broker in Hull.

We recommend the check my file report agency to our customers as they are able to bring in your data from 4 credit reference agencies to give you in-depth detail into your profile. In some instances, the data held may vary depending on the credit reference agency you are looking at.

How to get your up to date credit report:

• Please look at using Check My File. When you sign up, you will receive a free 30-day trial, and then £14.99 after the 30 days. This can be cancelled at any time.
  
• When you have logged in and are on your credit report, go to the bottom of the page where you will have the option to ‘Download Printable Version’. From this, you will then download a local copy of your credit report to the device you are using.
  
• Your downloadable PDF will be password protected by your 6-figure date of birth ‘DDMMYY’.
  
• When you have downloaded this, please send your credit report to enquiries@ukmoneyman.com, along with your date of birth.

What happens when I send my credit report to a Mortgage Broker in Hull?

Sending your Credit Report by email will differ depending on what device you are using e.g. iPhone, Android, Desktop PC.

As soon as one of your expert Mortgage Advisors in Hull has reviewed your credit report, we will get in touch with you to discuss your mortgage options in-depth.

Using our extensive knowledge as a reputable Mortgage Broker in Hull we will be able to give you in-depth information about the various criteria set out by the lenders we work with. Some of which are specialist lenders, check out our Specialist Mortgage Advice in Hull page to find out more information.

If you are a First Time Buyer in Hull or are looking to Move Home in Hull, our team can recommend the most appropriate mortgage for you by using our experience and knowledge as well as the information shown in your credit report.

Have You Been Declined For a Mortgage in Hull?

Mortgage Advice in Hull For Difficult Situations

Through our 20 plus years in the industry providing open and honest Mortgage Advice in Hull, it’s a known fact that each mortgage lender has their criteria to determine who gets accepted and who doesn’t. You may find that some lenders criteria are difficult to match compared to other, either way, it all comes down to whether or not your can their criteria and the performance of your credit score.

The most common reason a customer’s mortgage application gets declined is not meeting their lenders criteria. This is where we strongly believe that an expert Mortgage Broker in Hull, like ourselves, is very helpful. Here at Hullmoneyman, we search thousands of deals with the goal to find you the most appropriate lender for you and your financial situation.

How can I avoid disappointment?

Prior to applying, you first need to check your credit file to see if it’s looking good. Don’t worry if not, our guide on How to Improve Your Credit Score might help! Making your credit file favourable to the lender can be done in a variety of ways, however, we always suggest you approach a Mortgage Advisor in Hull before anything.

Another reason to seek an advisor is that only a small number of people are realistically eligible for every deal on the market. Therefore, the majority of the time, people are searching for the wrong deals. It’s not all about finding the cheapest deal, it’s finding one that you will qualify for.

As an experienced Mortgage Broker in Hull, we do recommend that you do look into the different types of mortgage available or get Mortgage Advice in Hull before you rush into anything.

Get in touch with one of our knowledgeable Mortgage Advisors in Hull by booking your free mortgage appointment online or call our team.

What are other applicants doing?

It’s common for customers to use price comparison websites to find a mortgage. There is no problem with going down this route, however, you need to keep in mind that the price comparison websites can’t match you to all the details of a lenders criteria.

Furthermore, it can take weeks for an application to go through the process and can be time-wasting if it ends up being a declined application. This can result in you losing your property and/or breaking down a chain. You could have been declined due to selecting the wrong mortgage which can leave a negative footprint on your credit score for a failed application.

Reduction in loan amount

In some cases, customers could be eligible for particular deals, however, only at a reduced amount that allows them to match the criteria. It can be common for a lender to initially say that you can borrow a certain amount and then in the future, they change their mind and look to reduce the mortgage available.

Again, lenders are all different and have their own ways of carrying things out. You may find there is a significant difference between the ways the lenders work and it’s very unlikely that you are going to match all of them. Therefore, it’s best that you narrow down your options so you can find the best mortgage option for you.

Your Mortgage Broker in Hull is Here to Help

If you are a First Time Buyer in Hull or are looking at Moving Home, we strongly believe that seeking expert Mortgage Advice in Hull will be very beneficial. Here at Hullmoneyman, we will provide a helping hand from the initial point of contact all the way through to getting the keys to your new home. Along with this, we will strive in finding you the perfect mortgage deal for your personal and financial situation.

Through our 20 plus years of experience in the industry, we have dealt with thousands of specialist mortgage cases and have been able to create mortgage success for our customers. Utilising the service of a Mortgage Broker in Hull, like ourselves, will allow you to obtain an up-to-date credit report too and will be provided you with the most suitable mortgage for you!

If you feel your situation is too complicated, a Specialist Mortgage Advisor in Hull could help! Get in touch with our team today for a free mortgage appointment. Check out our fantastic customer reviews to see how a Mortgage Broker in Hull helped them through their mortgage journey!

9 Questions to Ask When Buying A House in Hull

First Time Buyer Mortgage Advice in Hull

Stepping into the mortgage world as a First Time Buyer in Hull can be stressful, especially if you don’t have a lot of knowledge and this is a new experience for yourself. However, this doesn’t have to be the case. It’s good to be prepared as possible in order to make the most out of your house buying experience. Below is 9 questions to ask yourself when purchasing a house as a First Time Buyer.

The 9 most common questions:

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

It’s good to have a think about a property you have looked at before you commit to it because a mortgage could be one of the biggest financial commitments in your life.

When it comes to the thinking stage of the process, you need to ask how many people have looked and enquired about the property in order for you to know how long you have to make a final decision. Therefore, if the property is getting a lot of interest, you need to have a final answer pretty soon.

2. Is there a property chain?

A property chain happens when there are a number of transactions occurring at the same time for every sale and purchase to be completed.

If the property is a part of a chain, this can have a significant effect on parts of the mortgage process.

In the case where there is no onward chain like a new home, bereavement or emigration, can increase the chance of you moving in quickly especially if you are not part of a chain yourself. You can have more of an advantage as a buyer if you don’t need to sell your own property first because you won’t be interrupting the home buying process.

It’s good to utilise this benefit when negotiating property price negotiations.

3. What’s included in the sale?

It can be common in homes that have had previous owners for them leave some previous items behind, which can be a benefit for you. These items include electronic goods like washing machines, fridges, freezers or things like sheds that have been left by for the next occupant. This doesn’t apply to new build properties as they come as standard or agreed upon prior to being built.

The advantage of this is that buyers can save money can time, however, can be an issue for those who don’t want these items as you will have to find a way to dispose of them. In the circumstance where you buying a new build property, there might additional items you can buy that can be fitted and ready on the day you move in.

4. What are the neighbours like?

Another factor you may consider is the neighbours as a good or bad neighbour can lie in the option of you living in the property. This can be beneficial to do if you are looking into an area you have no knowledge or experience of. If you move into a new build, then you and your neighbours will be the ones building a community thus making the experience risky as you won’t know what anyone is like ahead of time.

5. How much does it cost to run?

When it comes to running costs, it all depends on the house and the location which is why it’s helpful that you do your research and ask the right questions. Look into things like how much the Council Tax is as well as the average spend on utilities which can be done by researching online or asking the seller. By knowing these factors, you can help budget for each property.

6. Which way does the house face?

The direction the house faces can be an important factor to you especially if you like relaxing in the garden in late summer evenings or reading books in natural light. You may find that having a south-facing garden comes with a large premium price to pay because you will receive the most sun throughout the day.

7. How much work will be required after moving in?

This is another factor you need to think about as it can have a significant impact on your budget. With this in mind, below are some things you may want to look into.

• Looking at how energy efficient the house is
• Notifying of any damp issue
• Altering the furnishing

8. Are you open to offers?

The house buying process usually kick starts with negotiating on a property price. It’s best that you are as ready as you can be to make an offer on a property that you like. If you are wanting to build your skills on this, check out our How to Make an Offer article. As soon as you are prepared, you can then begin negotiating.


To determine if your offer is too high or too low, it’s best to have a chat with the seller of the home or estate agent. From this, you can find out any other offers that have been made and rejected before your offer.

9. When can we move in?

Having a date set in the diary can allow you to plan the other tasks you need to do in advance. These tasks could include instructing a conveyancing solicitor, packing your belongings and sorting out a removal van to bring your belongings to the new property.

Moving Home Mortgage Advice in Hull

10 Factors to Help you Decide Where to Live in Hull

Looking at the various needs home buyers have when moving home

If you are looking at moving home in Hull, finding that dream property will involve you finding the perfect location to match. Through our experience speaking to customers as a mortgage broker in Hull, we find there are certain aspects they look out for when finding the best place in Hull for them.

Hustle and bustle of the city or relaxing countryside

Location can be a key aspect in the property hunting journey as, for many, this may be looking for their ‘forever home’. This all comes down to your preferences though. You may be looking at living in a busy and thriving ‘big city’ atmosphere. On the other hand, you may prefer to be nestled in a peaceful, rural landscape that is surrounded by nature. Each option comes with their own pros and cons and it all comes down to what you are looking for.

Transport links

When deciding on a location, transport links can be a massive factor. It’s best to think about how your regular commutes to work would look and what you would like to do regularly in your free time. For example, shopping in the city centre or being in nature and going on walks. Whatever this may be for you, it’s best to know the variety of transport links on offer as well as the costs for these.

Schools & education

In the situation where you have children or are planning on having any at some point in the future, researching into the school in and around the area can be important. Look into which schools are within the catchment area of the property along with what the schools are like.

To get a general idea of the reputation each school has, there are school league tables online that display this and provide further information on the leading schools within your area.

Facilities

Looking into the facilities within the area that you may need or desire can be a huge benefit. In most cases, you may find a property which some but not all the amenities you are looking for which is why it’s best to list your wants and needs. This helps you decipher what facilities are more important compared to others. For example, the location may not have a gym which you were wanting but it has a supermarket within walking distance.

The majority of people prefer having a shop on their route home from work and some may like to have a gym on their route home from work. For those with children, some would like having a park nearby.

Friends and family

We do find that homebuyers would like to have friends and family within a short distance of them. This is so they have peace of mind knowing there is support close by for them to reach out to. On the flip side, this may not be at the top of your list and may prefer peace and quiet instead of socialising regularly.

Value for money

Looking for a property that is ‘good value for money’ can all come down to the area you’re looking at. Each region has their own areas that are more expensive than the others. Therefore, it’s good to look at areas with properties that are a little cheaper which may mean you will need to dismiss some of those desired factors.

Community

The local community can play a huge part in what living in an area is like. This can especially be the case if you are new to the area and are looking for a close knit group nearby. Therefore, speak to your estate or research what the community is like there.

We do recommend finding out if an area has a community Facebook group or a dedicated local website where you can find news and activities going on in the community. This factor may not be key for you and if you would prefer to live in a quiet area, it could be good to look into the overall reputation of the area.

Jobs

Changing locations may be due to starting a new job or a career change. With this in mind, you should think about how far the property is from your place of work. In some cases, people start job hunting after they have moved home. If this is your situation, research the main employers in the area and what type of work they offer.

Property type

When it comes to the types of properties, there is a variety on the market for a range of home buyers. Your dream home may be an end-terrace with a wonderful garden or may be looking for a inner-city apartment that provides a modern feel. Explore the variety of options available to you to find your dream home.

Investment

Future investment within the local area can be goo to know if you’re looking for a property you will be in for the foreseeable future. You can find this out online and see what type of developments are happening in the local area and can help you decide if this is the best location for you. Line these developments with your lifestyle to see if it will benefit you. For instance, if you are looking for a rural area with a peaceful atmosphere but one area is planning on building a new housing development, would this make or break your living experience?

Moving Home Mortgage Advice in Hull

If you are looking at a location within or surrounding Hull, contact our team to speak with a mortgage advisor in Hull. For areas around Hull, you may benefit from speaking to a mortgage broker in Hedon, a mortgage broker in Kirk Ella, a mortgage broker in Brough or any of the other surrounding areas as they can help you explore your options too.

The Credit Crunch

In The Beginning of The Mortgage Market

To get an intense look into the events leading up to the 2007/08 “Credit Crunch”, we will need to rewind all the way back to the 1970s and ’80s. At this time, a first time buyer in Hull would usually go through a building society if they were wanting to take out a mortgage to purchase a home.

Around then, it was standard to make an appointment with the building society manager to see whether or not you qualified for a mortgage. Banks didn’t always do mortgages! The process would entail the customer taking out a savings account with the building society and the building society would then use that money to lend to other customers. In order for the building society to make a profit, the interest rates would be greater to borrowers than the rate they were paying to savers.

They shifted away from the older model when the banks got involved in mortgage lending. This new method meant that lenders would ‘buy’ the money from markets. This way would speed up the process of lending out to customers.

Mortgages in The 2000s

The mid 2000s opened the market for new specialist lenders, with a vast majority of them coming from North America.

The lenders would sell their book of mortgage customers to raise new money and lend again, this was known as ‘securitisation’. Normally, the books were bought by investors from bigger financial institutions like pension funds and high street banks.

The increase in money made from the market resulted in new lenders introducing more relaxed and lenient lending criteria. Poor credit history and self-certify mortgages weren’t a problem. This eventually became just that; an issue.

Problems Arise For The Mortgage Market

The relaxed lending criteria that were introduced resulted in these mortgage, evidently, went into default. This impacted the confidence major banks initially had with the uncertainty making banks not trusting one another as they were becoming exposed in the fast unrevelling sub-prime mortgage market.

Quickly, the banks’ share prices plummeted. A small portion of them survived by the UK Government (specifically, the taxpayer) to reduce the risk of them going bust. This, unfortunately, wasn’t the case for all and they ended up going under.

Due to ‘The Great Recession’, up to 80 different banks, building societies, and lenders across 20 different countries filed for bankruptcy or were acquired. When this happened, lending dried up quickly.

The market took nearly a decade to recover safely. Property prices massively dropped and everyone felt uncertainty within the UK economy.

Economy Recovering

An event like this was one we didn’t want to through ever again. To action this, the UK government looked into what went wrong. Their findings helped towards creating the ‘Mortgage Market Review 2014’.

Self certify mortgages were banned and the affordability of mortgages was now for the role of the lender.

There were intense investigations into customers’ incomes and outgoings with more detailed lending criteria. Lenders were looking into expenditures including credit commitments, childcare and other outgoings. This provided a financial picture to lenders and would be able to see whether a customer would consistently afford their mortgage repayments.

These days. obtaining a mortgage can be a lot more difficult. Customer need to show to lenders that they are in a series position for a mortgage. The aftermath of the Credit Crunch has has provided a lesson to the industry and hopefully this has been shown by taking the best steps for this to never happen again.

Open & Honest Mortgage Advice in Hull

As a mortgage broker in Hull, we are here to provide a helping hand with the mortgage process. Each lender has their own criteria to follow which is something our team have rick knowledge in. Our job is to present yourself to a lender in a serious and mortgage ready light to increase your chances of a successful application. As well as this, we will find you a mortgage deal that is appropriate for your situation and needs.

Whether you are looking at Moving Home in Hull or it’s your first time on the property ladder and you are looking to speak to an expert mortgage advisor in Hull, book online for a free mortgage appointment or get in touch with our team today!

When is the Right Time to Remortgage in Hull?

Remortgage Advice in Hull

Remortgaging in Hull could be the next step for you if you have decided to stay in your current property and not move house. It is a way for you to stay in your current property with more favorable interest rates and works by being transferred from your existing deal to a better deal. As an experienced remortgage broker in Hull, this is something our team of mortgage advisors can help with.   

If I can already afford my current mortgage, why should I remortgage?

The banks count on their customers not being as knowledgeable and shopping around for a better deal. Often, you will find there are cheaper offers for you elsewhere. Ways to find them could be speaking with a knowledgeable mortgage advisor in Hull who can assist with comparing deals or you can seek these out yourself through a price comparison site. From this, you will find there is probably a deal appropriate for you. However, price comparison sites mainly look for your best deal on an interest basis.

Providing that you’ve been on your current mortgage deal for some time, there is a possibility that you could be on a low Bank of England tracker deal. You could even be paying less than 1% so, it may be best for you to stay with that mortgage deal. This could become an issue if the base rate eventually rises as well as your payments. 

Can I borrow more money for home improvements?

Yes, there is a chance providing that you pass the affordability checks and assuming there is a good amount of equity in your property. From this, you may be able to increase your mortgage to fund future home improvements.

It can be a very wise option because it gives you an updated home and the chance to increase the value of your property if done carefully and with the right help. We find this can help customers in the process of updating their kitchen, converting a loft, or creating a home office.

Can I borrow more money to fund other means?

As well as home improvements, you can borrow extra funds for most legal purposes, this could include:

• Debt Consolidation
• Property Investment (e.g., a Buy to Let)
• Consumer Purchases
• Gift to relative

Is adding unsecured debt to my credit a bad thing?

Adding debt to your mortgage might not be the best idea. If this happens, you will end up paying back more interest overall through extending the term of your debts to make the payments lower.

Another risk of this is that you are taking debt, which is not secured and, securing it on your home. It could create the potential risk of having your home repossessed. Something that will likely be a problem would be consolidating debts that you can afford or credit cards that are 0% interest.

It’s important to know that you need to speak to a qualified mortgage advisor prior to securing any debts against your home.

An option you could take is to reduce your monthly outgoings to avoid missed payments. By doing this, you are decreasing the risk of your credit rating being in a bad state.

Will I be offered a remortgage by my current provider?

A “Product Transfer” or “Retention” product, is one option a lender will offer. This method allows the lender to provide you with a new deal to stay with them. You would need to contact your provider directly to see what is available to you, however, this option isn’t guaranteed.

In some cases, lenders will allow you to make a product switch online without providing further information or advice.

Staying with the same provider and switch products might be an easier option, however, putting a new application to a different lender may save you a lot of money.

You will find that many banks would offer favourable rates to new borrowers over existing ones. They will be a time where lenders will take a more ethical approach that could have a positive change on customer loyalty.

Mortgage Advice Service in Hull

Should You Rent or Buy a Property in Hull?

Mortgage Advice in Hull for Home Buyers and Renters

Why should I buy a property? 

A sudden market boom or drastic plummet is an event that we never truly will happen because of the ever-changing nature of the market. For those buying a property and it quickly does down in value, your disappointment will be understandable. Throughout the years we have experienced this often, history does evidence that this happens. As done before, the value may eventually start to rise again. This all comes down to the assumption that you’re still financially able to keep the property.

Rewinding back to sold values during the Credit Crunch, known as one of the worst economic era’s in our lifetime. Less than 10 years later, the property market took a surprising turn the property market was booming and property values were improving. In the case where you have to, unfortunately, have to sell your home at the wrong time, you may be in a situation where you have a lot of money. This can happen due to circumstances like relationship breakdown or reduction in your personal monthly income, requiring a need for a cash injection through a home sale.

Prior to committing to buy a home, it can be beneficial to contact an experienced first time buyer in Hull as we will be able to explore mortgage insurance like critical illness insurance for you from circumstances that may affect you and your mortgage, like unexpected illness or even death. With this in mind, it’s not just an investment, this is your home, where you will be creating a life for yourself. The key thing here is finding something that is suitable for you and your circumstances.

Will a mortgage be cheaper than renting? 

Usually, your mortgage payments will be cheaper than monthly rental payments. This may not apply to everyone, but it is likely to be the case. Interest rates are known to go up and down, which means your mortgage payments vary depending on the month.

Generally, people go down the route of a fixed-rate mortgage as a way to prevent this. With a fixed-rate mortgage, you will keep payments consistent for a set duration of your term, creating a sense of stability for both yourself and the lender. When it comes to renting, your payments will go two ways, they may stay the same or become more costly. It is quite rare for a landlord to lower the rent.

Providing Security & Stability

For many, owning a home can create a sense of stability for some people and their families. In the case where you can afford your mortgage payments, this means that as long as you still wish to live there, nobody can force you to leave the property, which is something that isn’t always the for private tenants.

Even though you have some protection as a renter, the landlord may want their property back, resulting in your being stuck in what you can do. You may find that the landlord will give you first refusal (the ability to buy the property before it goes to market) so it can avoid the stress and costs of advertising with an estate agent.

Flexibility 

On the other hand, renting is a more flexible option compared to being a homeowner. For instance, if you found a job in a new area, you have more freedom to hand in your notice and relocate to that new area so you can pursue that career. This may be nice, but it doesn’t apply the same to homeowners, because you will then need to figure out regardless of if you want to sell your home or rent it out. Both processes can be expensive and time consuming.

If you do fancy a change in scenery or are unsure of how long you will be around the area, buying may not be the option for you to take. Home buying requires long-term stability and can be looked at as more of an investment in both money and time.

Repairs 

If you are in a rented property, it’s the landlord’s job for any repairs needed on the property they are renting out to you. When it comes to getting these repairs carried out, some landlords are better than others. Therefore, be prepared to fix some minor repairs yourself if you’re renting and encounter anything that needs carrying out. In terms of homeowners, they have full responsibility for their own repairs and normally the condition of a mortgage will include the property being insured to protect the lender from losing out in the event of something happening to it.

In spite of it being the more popular option, owning a home of your own isn’t the best option for everyone. Young couples may find that renting together is a brilliant way to get an insight in what living together would be like. In some cases, it may not always work out the way it should and removing a name from a mortgage can be a challenging process.

Home buying can be a big commitment and one something doesn’t do on a whim, it requires careful planning. If you are currently renting, you may be finding it challenging to save up for a deposit. At the end of the day, many people go for buying instead of renting, however, this isn’t always the case for everyone. Through our experience providing open and honest mortgage advice in Hull, we do find that customers rather buy as they see it as the better option compared to giving someone else the money to live in a house they have limited freedom of. It’s all about buying, therefore, you need to be in a financially stable position prior to buying a home.

Moving Home in Hull with a friend(s) / family member?

In the circumstance where you are looking to rent or buy with a friend or partner, as a mortgage broker in Hull, we do advise that you only get a mortgage if you have lived with your friend or partner before.

Sometimes, we find that issues arise from customers who have locked into a mortgage deal with a new friend or partner. This is definitely the case that circumstances have changed and one of you wants to move out of the property. It’s not as straightforward as simply removing your name from the mortgage.

For those looking at removing a new, you will need to reach out for Specialist Mortgage Advice in Hull to get things sorted.

Our team are available 7 days a week

With the knowledge you now have about the pros and cons of buying a renting, it’s now time to look at your options. Think about your situation, how each option will benefit you as well as if the option is in line with your future plans.

These are factors that will have a significant impact on your life. Many people list out pros and cons of each option which seems to be helpful to them.

When it comes to the overall data of these two options, most people look to buy instead of rent as it is a good option for them to start their homeowning journey as a first time buyer in Hull.

Furthermore, many of our customers would rather pay towards their own mortgage than pay towards someone else’s. For more information on buying vs renting, book your free mortgage appointment today to discuss your options with a dedicated mortgage advisor in Hull.