What is a Property Chain & How Can You Avoid Them?
Moving home mortgage advice in Hull
During your process of moving home in Hull, it’s likely that you’ll come across lots of different hurdles and obstacles; if you don’t consider yourself lucky! It could be something completely random that gets in your way, something you never thought would affect your moving home journey.
A recurring problem that trips up a lot of mortgage applicants in Hull is the property chain. Getting caught up in the property chain can slow down and in worse cases, put your moving home process to a stop!
Here is all about property chains, how you may end up getting wound up in one and how to avoid them.
What is a property chain?
A property chain is a string of transactions that are each dependent on all purchases and sales completing. If one of the transactions breaks down, this can have a knock-on effect on the rest of the transactions in the chain. For example, let’s say you are selling your home and purchasing a new one.
Then let us say that the person who was looking to purchase your home suddenly pulls out. You were dependant on this sale to fund your new purchase, which you are now no longer able to make, which means you could possibly be holding up any transactions in front of you too.
Imagine it as an actual chain linking houses together. If one property purchase falls through, the chain potentially breaks and your property purchase may not go through.
Depending on the property chain that you’re linked with, the chain size could be endless. If you’re lucky, you may not have that many purchases in your property chain.
How long will the process take in a property chain?
This answer can change from chain to chain. It all depends on what situation your’s, your seller’s and your seller’s seller situation is! It’s very complicated… we know.
Property chains can run smoothly or badly, there’s no real in-between. You may be in a property chain without even knowing. If the process is fast, you can assume that everyone ahead of you in your chain had their purchase go through fine.
If things don’t work in your favour, you may get stuck in a waiting scenario. As a mortgage broker in Hull, we would strongly recommend starting the moving/buying a home at least six months before you’re wanting to move in.
This amount of time allows room to find your dream home and time just in case you get caught up in a property chain.
What happens if my property chain breaks?
When a property chain breaks, it’s quite unfortunate as there’s not a lot that you can do about it, especially when it’s further down the chain. You may be forced to wait or look for a new property.
If the property chain breaks at your purchase, acting quickly could save the chain from breaking. It can also help everyone else behind you. For example, if you’re selling your property, you can contact the applicants who want to buy your property by contacting your estate agent; this way, you can inform them of the situation as early as possible. As long as you act quick, you may be able to resolve the issue that broke the chain.
There are ways to prepare for a break in the property chain if the break is not on your level; this includes, you could try and buy a property that isn’t in a chain or in a small chain, sell your property and rent temporarily or buy a new-build property, etc.
For more moving home mortgage advice in Hull, contact our experienced mortgage team in Hull today.
How can a property chain break?
You’ll discover that there are many different reasons why a property chain could break. It could be at any level during the chain:
- The buyer’s mortgage application was declined
- A seller decides that they don’t want to sell their property
- A buyer/seller loses their job or becomes ill
- The property survey that was carried out on the property lightened some major damages and structural issues.
This is just a small list of examples, there are many more. Sometimes it’s just down to the length of the property chain to how drastically these situations will impact your ability to move home.
How can I avoid a property chain?
It’s hard to ‘avoid’ a property chain, even more so if you’re buying during a busy time of the year.
We would always advise that you do your research and talk to your estate agent and arrange your finances sooner rather than later. This puts you in the best position if a break in the chain were to happen. The more you are prepared, the better.
If you avoid property chain (‘chain-free’), you should be able to move straight on through the moving home process.
However, you must remember that you’ll need to provide evidence that you can afford a mortgage and provide a deposit for the property.
Thinking of moving home in Hull?
Are you thinking of buying and selling your home? If so, let our moving home mortgage advisors in Hull help!
Arrange your own free mortgage appointment online. Begin your moving home journey today and we will help you get through it stress-free! Our advisors can’t wait to hear from you.
Remortgage for Home Improvements in Hull
Remortgage Advice in Hull
First of all, what actually is a remortgage? A remortgage is when you swap out your current mortgage product for a new one. People usually do it to try and get a better rate of interest.
A remortgage can also be known as a product transfer. The difference between a remortgage and a product transfer is that when you remortgage you take out a new mortgage with a different lender, whereas when you transfer products, you take out a new mortgage with your current lender.
There are many different reasons why someone may want to remortgage/transfer products. At the end of the day, it’s all down to what the homeowner wants. Through a remortgage/product transfer you may be able to get a better rate of interest, consolidate your debts into your mortgage, raise capital for things such as home improvements or for something else.
In this mortgage guide, we are going to cover how you can remortgage/transfer products for home improvements.
How does it work?
Before remortgaging, you’ll have to calculate the intended costs for the home improvements being made. Depending on how you want to improve your home, the costs may not be quite as much as you expected them to be. This is because when you remortgage to improve your home, the costs are incorporated into your mortgage. This means that your current monthly payments will include both your mortgage and your costs for home improvements. Your overall payments may only increase by a small amount (e.g. as little as an extra £60 per month), depending on how big the home improvements are.
You must consider all of the costs that come with remortgaging for home improvements. Here are some factors that people miss:
- Architect’s plans and services
- Planning permission (Neighbours etc.)
- Building costs (Materials, Workers etc.)
- The VAT
- Building regulation inspections
Why would I want to remortgage for home improvements?
We’ve seen that the most popular reason for people wanting to remortgage for home improvements is to make more living space. This may be because the homeowners are growing/starting a family or just want more space in general.
The process is simple, can be carried out easily and also saves you from moving home in Hull. Rather than wading through the whole moving home process, if you already love your current home, why move? It often works out much cheaper to remortgage than to move home.
Here are various reasons why you may want to remortgage for home improvements:
- Kitchen conversion – If you want a new, modern kitchen, you can remortgage to incorporate the costs for one into your mortgage.
- Conservatory – Conservatories are a great place to sit and enjoy the view of your garden without even leaving your home. This is the most popular reason for people remortgaging for home improvements.
- Loft conversion – Lofts are also very popular amongst homeowners looking to remortgage for home improvements. A loft allows space for storage or for another bedroom.
- Garage – If you need more storage space or want more room for an extra car, a garage extension could be what you need.
- Garden extension – Many people don’t realise that it’s possible to extend their garden through remortgaging. If you want a change of scenery in your back garden, this option could be perfect for you!
Remortgage for home improvements summary
If you are thinking of taking the remortgage for home improvements route, feel free to contact us, we would be more than happy to help. Our team are experts and will give you remortgage advice in Hull exactly when you need it!
Our hardworking team are available 7 days a week so that you can get in touch at a time that best suits you. If you also want to remortgage for another reason, we are still able to help you!
The Costs of Buying a Home in Hull
Moving Home Hull
There are lots of different things to think about before you move home, one of them is the costs involved. Whether you’ve moved home before or this is your first time in the market, you need to be fully aware of all of the costs of buying a home.
The Costs Involved in Buying a Home
Estate agency fees
You will only have to converse with an estate agent when you are looking to sell a property. If you’re going down the purchase route, your Mortgage Broker / Bank / Building Society can sort these things out.
Estate agency prices can vary. If you end up dealing with one, you should make sure that you’re getting the best price and service available. Make yourself certain before committing to anything. Sometimes, the cheapest estate agents may have the poorest service.
If you aren’t too fussed about the costs and just want a personalised, simple and secure service, it’s likely that you’ll have to pay an extra 1-2% of your selling price. Usually, these fees are negotiable; particularly in a seller’s market where agents are fighting for your instruction because of the lack of houses on the market.
Property survey fees
During your mortgage application, the lender will need to know whether the property you’re buying is worth what you are paying for it. They calculate this by carrying out a property survey. In some cases, your lender may offer this service for free, however, they may not send you a copy of the report.
If you do not get offered a free valuation, you may need to pay, on average, a few thousand pounds for one. If you want to take it another step further, you can upgrade to an in-depth Homebuyer’s Report. This survey is at the top of the range and you should expect to pay a four-figure sum for them.
A great thing about going to a Mortgage Broker in Hull like us is that we will break down each survey and help you make a decision on which one is the best for you. If the property that you’re buying is old or not in the greatest condition, you should maybe consider switching to a more detailed property survey, just to make sure that you know exactly what you’re paying for. You will also know what needs replacing/repairing as soon as you move in.
As a Mortgage Broker in Hull, we’ve often found that the cost to upgrade a property survey is a fraction of what it would cost you for repairs over the years. So rather than buying a property blind, you could upgrade and end up saving yourself a fortune in the future.
Mortgage arrangement fees
Usually, mortgages that come with lower interest rates often come with high set-up fees. Some lenders will charge you a mortgage arrangement fee for… well, arranging your mortgage.
This fee can range anywhere from zero to a few thousand pounds. If you choose to go with a Mortgage Advisor in Hull, they will work with you and recommend you with the best and cheapest product that will meet your mortgage needs. They will consider all of the other costs that come with getting a mortgage and try their best to save you money.
When you are taking out a mortgage, you’ll always want to try and get the lowest interest rate possible. If you know how interest rates work, your payments will only increase at an exponential rate.
Lenders can also add an arrangement fee to your mortgage. If this happens, you should know that this is now a part of your mortgage so it will also start receiving interest and add up over your mortgage term.
Solicitor fees
A solicitor will be needed to help your mortgage application progress through the legal parts of the process. They will check things such as, does the seller actually own the property that you’re buying, who is responsible for maintaining adjoining fences, walls etc and whether anyone has lodged any plans (for example to build future transport links). These sorts of things need to be confirmed as if there is anything wrong with the property, it could affect your ability to sell it in the future.
The pricing for each solicitor varies, some may be around a thousand pound, some may be more, some less. You will also need to remember to check whether the quote includes VAT and local searches.
As a Mortgage Broker in Hull, we always advise that you be careful when selecting a solicitor as not all of them will work with every single lender. You want to choose the best lender that will save you time and money, let us help you find them!
Stamp duty
Stamp duty is a tax that comes with purchasing a home within a certain price range. The way that it usually works is that the more that you pay for your house, the greater the stamp duty tax you’ll receive.
The stamp duty guidelines and property price thresholds change from time to time, so if you are wanting to find out whether you’ll have to pay it or not, you should check the stamp duty government page.
If you fall into a stamp duty tax bracket, it’s likely that you’ll pay it upon completion to your solicitor. They will then make the payment to the government on your behalf.
Mortgage broker fees
A Mortgage Broker in Hull will charge you for their services. Most of them will not charge you an upfront cost and will offer a free mortgage consultation like us!
When they charge you for their work, the cost of the fee will typically be a percentage of what the lender pays the broker for the work they do on their behalf. Most Mortgage Brokers will only charge you if your mortgage application is successful and you receive a formal offer.
Removal fees
Moving Home can be stressful enough, so don’t make it even worse! Have you thought about how you are going to transfer your furniture and your household items between properties?
In our experience, we can tell you that hiring a removal van may cost a little extra but will make your Moving Home process ten times easier. They are experts at the end of the day and they will help you move everything from A to B.
Moving Home Advice in Hull
For Moving Home Advice in Hull or First Time Buyer Mortgage Advice in Hull, make sure to get in touch with our team. We offer a free mortgage consultation in Hull, so feel free to take advantage of it.
Life Insurance Hull
Life Insurance Hull
Life Insurance is a vague term as it covers a lot of ground; in fact, there are several different types of Life Insurance. In this insurance mortgage guide, we will show you what they are and tell you why they are important to take out.
Different types of Life Insurance
– Life Insurance
– Level Term Life Insurance
– Decreasing Term Life Insurance
– Increasing Term Life Insurance
– Whole of Life Insurance
– Joint Life Insurance
– Death in Service
– Taking out Life Insurance as a Single Homeowner
– Our Insurance Advice Service in Hull
If you’re looking to take out Life Insurance, it’s definitely worth speaking with a Mortgage & Protection Specialist in Hull. We offer Life Insurance Advice in Hull and we would advise that you take our free Insurance consultation before taking anything out as it may not match with your personal circumstances.
Especially if you don’t know what you are doing, Life Insurance can get complicated. Along with lots of different types of Life Insurances, you also need to choose what your policy covers and how long it lasts etc.
Life Insurance in Hull
Life Insurance pays out a lump sum of money in the event of death. The money is usually passed
down to a family member or friend.
In the event of a claim, the cover can either pay out the whole sum insured at once or through
regular payments; it’s up to the person who takes out the cover.
It was introduced to provide financial support for family members, replace lost income or pay
off any outstanding debts owed in the person’s name such as a mortgage.
The sum that is paid out changes depending on the type of cover that was taken out. The good
thing about Life Insurance is that you can choose exactly what your payout is used on. You
choose your specifics, for example, you may only want the money to be used on debts such as
a mortgage or car loans etc. You choose your plan.
Level Term Life Insurance
With Level Term Life Insurance, you will still get a payout, however, you will only be covered for a fixed
‘term’. This policy only pays out if you die within your policies term. They usually run between 5-25 year terms in 5-year increments.
Term Life Insurance is often used to cover a mortgage. People usually take out this policy that’s
in line with their mortgage term. Therefore, if you were to die and still have your mortgage to
pay off, the policy will pay out the This means that the mortgage payments will not fall to family
members or any other name attached to the mortgage.
Decreasing Term Life Insurance
As a Mortgage Broker in Hull, we’ve found that this type of Life Insurance policy is the most popular.
You may be asking “why would you want to take out a policy that decreases in value?”. Well, this policy is targeted at homeowners with repayment mortgages – which is the majority of people. This policy is usually taken out to pay off the outstanding mortgage balance should you die.
The policy’s value mirrors the outstanding balance remaining on your mortgage. As the amount owed on your mortgage decreases, so does the sum insured.
Decreasing Life Insurance is typically taken out alongside other Insurance products depending on personal circumstances. This is why we always recommend speaking to a Mortgage & Protection Specialist in Hull, we can help recommend the most suitable insurance for your needs.
Increasing Term Life Insurance
This type of Life Insurance policy will still payout if you die within your fixed term. It works in the opposite way to Decreasing Term Life Policy.
The difference with Increasing Term Life Insurance is that the amount that you are covered for increases as your term goes on. It will increase by a fixed amount until your policy term ends.
This type of Life Insurance was introduced to protect the policy’s total value against inflation and is usually in line with the retail price index.
Whole of Life Insurance
As a Mortgage Broker in Hull, we’ve learnt that the Whole of Life Insurance policy is not at the forefront of the insurance market, however, it is still helpful and it may be the policy that suits you most.
The Whole of Life policy is exactly how it sounds, the cover lasts your whole life. When you die, the policy that you took will payout. The costs that come with Whole of Life Insurance will be a little more than a Level Term Life Insurance, however, you are covered for your whole life and not just a fixed term. Assuming that you’ve kept up-to-date with your life insurance payments, your cover will apply for your whole life.
This type of insurance is usually used for family protection and part of inheritance tax planning.
Joint Life Insurance
If you are in a relationship/married, you could consider taking out a Joint Life Insurance policy that will payout in the event of one of you dying. You could still have two separate Life Insurance policies if you really want to, however, having a Joint Life Insurance policy is often cheaper than taking out two different ones.
The way this policy works is that if one person dies, the policy pays out, and then ends. This may seem like a downside to the policy, but if you originally took out the policy to pay off your mortgage, you would still be able to do so as the money will be released after the death of one of the policyholders.
Death in Service
This type of Life Insurance cover may be offered to you by your place of employment. Your company is not obligated to provide Death in Service cover, however, some do as part of their employee benefits package.
Death in Service is usually a lump sum of cash paid out to an employee’s family or a person of their choice if they die. This sum can be up to 5 times their annual salary. There are no specific limitations on what can be done with the employee’s money.
The payout has nothing to do with if an employee dies in the workplace.
Taking out Life Insurance as a Single Homeowner
Just because you are a single homeowner, doesn’t mean that you should disregard all Life Insurance options.
If you have settled into a new place and are currently living on your own without children or a partner, it’s not unusual for people to forget about life insurance. People also sometimes choose to ignore it and this is because it doesn’t always apply to single homeowners.
What you should think about though, is that your circumstances could change in the future, and if they do, then Life Insurance could become an essential thing to have.
Speak to one of our Mortgage Protection and Insurance Specialist in Hull and find out whether taking out Life Insurance as a single homeowner could be beneficial for you.
Our Insurance Advice Service in Hull
We want to make sure that you have the right policies in place to allow you to leave your family in the best position possible if you die. Taking Life Insurance will give your family financial certainty and will take a little stress off them in an already difficult time.
As a Mortgage Broker in Hull, we know that Life Insurance, no matter the type of cover, is extremely beneficial and can put you at ease knowing that your family won’t have to pay for any of your debt or payments.
If you want to find out more about Life Insurance, take up our free Insurance consultation in Hull. We will explain the policies available to you and why they could benefit your and your family’s personal and financial situation in the future.
As a Mortgage Broker in Hull, we’ve found that Life Insurance is typically taken out in conjunction with other policies, depending on your personal situation. Find out about other Insurance options here:
- Mortgage Protection Insurance Explained
- Income Protection Insurance Advice in Hull
- Critical Illness Insurance Advice
What is a 95% Mortgage?
A 95% mortgage is what it says on the tin; you are borrowing against 95% of a property’s price, covering the remaining 5% with your deposit. An example of this is if you looked at buying a property worth £150,000 with a 95% mortgage, you would put down £7,500 as your deposit and borrow the remaining £142,500.
95% Mortgage Advice in Hull
With the March 2021 Budget, Boris Johnson announced a Mortgage Guarantee Scheme for Lenders, making 95% mortgages more readily available from the big banks.
This is great news for both first-time buyers and home movers as this will run until December 2022. Certain terms and conditions will apply, your Mortgage Advisor in Hull will be able to see if you qualify.
All our customers receive a free, no-obligation mortgage consultation where we will be able to recommend the best mortgage deal based on your individual situation.
Can I get a 95% mortgage?
95% mortgages are generally available to both First-Time Buyers in Hull & people who are looking at Moving Home in Hull. Whilst the idea of saving for a 5% deposit sounds easy enough, you’ll still need to have a sufficient credit score and prove that you can afford your monthly mortgage repayments, in order to be granted a 95% mortgage.
Improving your credit score
A good credit score is the key to obtaining any mortgage, especially a 95% mortgage. Things like paying any existing credit commitments on time, ensuring your addresses are up-to-date and that you’re on the voter’s roll, can all help build this up. For a more in-depth look at what you can do and why, please see our How to Improve Your Credit Score article.
Affordability
Affordability is another one that is key. By providing 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 get a good idea of whether or not you are able to afford this type of mortgage.
Can my family help me get a 95% mortgage?
It’s very popular these days for family members to help each other get onto the property ladder, especially parents looking to further their children. This can be achieved by gifting the person looking to find their home, the deposit required for the property. Known by some as the “Bank of Mum & Dad, Gifted Deposits work purely as a gift, and not as a loan. The lender will need proof that this is the case, before it can be used towards your mortgage.
How do I choose the right 95% mortgage?
When looking for a 95% mortgage, you want to make sure you’re on the right one. Each different mortgage type works in its own unique way, allowing you to find one that is best suited for your personal and financial situation.
You could find that you prefer Fixed Rate or Tracker Mortgages, wherein you either keep interest rates at a set amount for the term or have your interest rates follow the Bank of England base rates.
Alternatively, you might find that you’re better suited for an Interest-Only or a Repayment Mortgage. The former of which allows cheaper payments until you need to pay a lump sum at the end (more suitable for Buy-to-Lets) and the latter of which means you’ll be paying interest and capital combined per month.
You can read more about these in our Different Types of Mortgages article, with accompanying videos.
How can a bigger deposit help with my mortgage?
As with anything involving such a large financial outgoing, you need to be prepared and need to be wary. Things that might crop up, include higher interest rates, remortgaging difficulties due to less equity and then negative equity.
The good news here is that all these can be avoided if you’re savvy enough with your initial process. The more deposit you put down, the less risk you are to the lender.
A larger deposit, of say 10-15%, would not only lower your interest rate significantly but would also put more equity in the property and reduce the risk of negative equity as you would be borrowing less against the property in question.
So, whilst the risks seem daunting at first, planning ahead and saving for a bigger deposit to access something like a 90% or even an 85% mortgage will be a definite lifeline and something you’ll be able to reap the rewards from.
Budget 2021 Mortgage Market Overview
Following the 3rd March 2021 Budget, we got a handful of positive news and found out how the economy is going to recover from the effects of COVID-19.
Chancellor Rishi Sunak provided some information on how he’s going to get the mortgage market back on its feet. It’s news that we’ve been looking forward to for quite some time; the only way is upwards now!
95% mortgages are coming back!
90% mortgages crept back into the market in October 2020. During this time, it seemed like it wouldn’t be a while until you could access 95% LTV mortgages.
However, after the recent 2021 Budget, we learnt that 95% are making their return to the market once and for all. The name of the scheme is a tiny bit misleading as not everyone that applies is going to be guaranteed a mortgage. Lenders are still going to assess your credit score and make sure that you are going to be able to afford a mortgage alongside all of your other financial commitments. Of course, Lenders never want to repossess someone’s home unless it is the last resort, but if that happens then the new scheme would cover any shortfall.
Lenders have been worried about the prospect of home values decreasing so this measure should alleviate that concern although of course, the chances of negative equity occurring will naturally reduce should property prices increase as a result of these announcements.
The Chancellor announced that both First Time Buyers and Home Movers will have access to this scheme. It can also be used on any property too, not just new builds.
The scheme will be available from April 2021 and will run until December 2022, and according to Sunak, many credible and huge lenders are already backing the scheme.
As a Mortgage Broker in Hull, we are delighted to hear this news and are excited to see what the market has to offer over the next month.
Stamp duty holiday extension
On top of 95% mortgages making their way back into the market, the stamp duty holiday has been extended until 30th June 2021.
When the stamp duty holiday was introduced last year, we all hoped that life would be very much back to normal by now, however, things didn’t pan out the way that they were expected to. Solicitors are struggling to keep up with the workload and if lots of chains had collapsed then it would have partly defeated the objective of trying to push people to carry on progressing their Moving Home journey.
To keep the property market running and to carry on home purchases, the government have decided to extend the stamp duty holiday. Property purchases up to £500,000 will remain tax-free until 30th June 2021 and those up to £250,000 will remain tax-free until September 30th 2021.
Current stamp duty rates
- Property value < £500,000 – no stamp duty
- Property value £500,001 – £925,000 – 5%
- Property value £925,001 – £1,500,000 – 10%
- Property value > £1,500,000 – 12%
Mortgage market update
Now that the market is getting back on track and 95% mortgages are slowly making their return, we’re hoping that this is the sign that we needed that things are returning to somewhat normal for us. In no doubt, there’ll still be a while before things completely turn back to “normal”, but this is a start for the property market. The Government certainly sees the property sector as an area that can play a big part in our economic recovery.
The government seem keen on wanting people to transition back into buying over renting by introducing this new “mortgage guarantee” scheme. Seeing this news as a Mortgage Broker in Hull brings us nothing but hope and positivity.
Remember that we are still open and here to answer all of your mortgage questions. In Hull, we are available from 8am – 10pm, 7 days a week so don’t hesitate to get in touch and get your process started.
How To Make An Offer On A Property In Hull
Getting prepared to make an offer
So you have your heart set on a property in Hull and you are ready to put an offer down on your dream home… but where do you get started?
Placing an offer on a property is not as easy as it seems, you have to get lots of things prepared before you can do anything. Firstly, you’ll have to make sure that the seller or estate agent knows about all of your personal and financial circumstances. At this point during the process, you are putting yourself in the best position possible in order to get your offer accepted. Before you put in your offer for the property, the seller or estate agent needs to know everything so that you are covered if anything pops up in the future.
Tips for making an offer on a property
Get a mortgage agreement in principle
Getting a mortgage agreement in principle (also known as an AIP) is an essential part of the home buying process. It is usually a written statement of approval from a lender/building society to say that they are willing to lend you a certain amount for a mortgage. This is why you need one of these to make an offer on a property, the seller/estate agent needs to know that you can actually get a mortgage on the house.
After the outbreak of COVID-19 in 2020, an agreement in principle was even needed at the house viewing stage. This was to put a limit on the number of people taking up viewing who haven’t even been accepted for a mortgage as of yet. As a Mortgage Broker in Hull, this is another reason why we always recommend that you get in front of other buyers and get an agreement in principle nice and early.
In the majority of cases, you will never compete with a cash buyer. Lenders love it when someone can provide you with the cash there and then. However, to increase your odds against cash buyers and even other potential buyers, you should get an agreement in principle arranged. If you have one at the ready, you are showing your lender that you are well-prepared and know what you are doing. It also puts you ahead of other home buyers who haven’t got one in place.
This is another benefit to approaching a Mortgage Broker in Hull, like us. As part of our 24-hour service, we aim to turn around an agreement in principle within 24-hours of your application! Depending on your situation, it could be within a much shorter timeframe!
Be prepared to negotiate with the seller
Buying a property is a negotiation process. If your initial offer is rejected, you will be asked whether you want to increase it. If you really think that the property is worth more and you want it, you may have to bump up your initial offer. Don’t be shocked if your initial offer is declined, many First Time Buyers in Hull have had this happen to them and yet it doesn’t stop them from securing the property further down the line.
If your second offer is also declined, you may have to pay the asking price. This is where doing research comes into play. Before making an offer on a property, you should always research what similar properties in the local area are selling for on Rightmove and Zoopla. This may give you a vague idea as to how much your initial offer should be.
Another thing to look out for is how long the property has been on the market. If it’s just been listed, the seller may want the asking price, whereas, if it’s been on for a while, the seller may be lenient or there could be something wrong with the property. If you come across houses that have gone for less than they’re worth, don’t worry as there will be a reason for it. It could’ve been repossessed, sold to a tenant at a discounted price or an inter-family sale.
Speak to a Mortgage Advisor in Hull today
For further advcie on this specialist subject, feel free to get in touch with our excelent Mortgage Advisors in Hull. If you need any help on making an offer on a property as a First Time Buyer in Hull or just want an expert Mortgage Advisor in Hull by your side to help you secure that property and get you a great mortgage deal, you should know that we are here to offer a helping hand.
We have Advisors in Hull available from 8am – 10pm, 7 days a week, so if you ever have any mortgage questions, you know who to call. Receive a free mortgage consultation today with your expert Mortgage Broker in Hull.
Top 5 Mortgage Hurdles You May Come Across
Specialist Mortgage Advice in Hull
There’s always going to be a chance that you’re going to come across some sort of problem when dealing with a mortgage. They can get quite complicated at times!
As a Mortgage Broker in Hull, we encounter all different kinds of mortgage hurdles. Having had over two decades of experience, we have faced most of these complex situations before and know exactly how to deal with them. However, if one that we haven’t come across before catches us off guard, we will still do everything within our power to get by it and help you along your mortgage journey. You may be unaware of the majority of these hurdles if you are a First Time Buyer in Hull, we hope that we can help!
Since there are so many different types of mortgage hurdles, it would be impossible to cover them all. Here is a breakdown of the top five mortgage hurdles that you may face during your mortgage application.
Common mortgage hurdles
Childcare fees
It’s uncommon for your mortgage application to be turned away due to you having children, however, your offer is likely to be a little higher than if you didn’t have children.
Lenders have to be 100% certain that you can afford all of your mortgage payments on top of your current expenditures. Childcare costs are considered a part of your expenditures each month. They have to compensate for these costs as they can sometimes run into hundreds of pounds per month. At the end of the day childcare costs don’t go down, they only really go up! They treat this financial commitment the same way as they would treat a car loan or hire purchase agent.
Even if you don’t have to pay nursery fees to pay, if you have children, you may still be offered less than other buyers who don’t have children. The good news is though that this type of family can often be in receipt of tax credits and some lenders will take these into account as well as child benefit.
Divorce/separation
It’s very sad when it happens, but if you decide to call it a day with your partner, you may come across some financially related problems, particularly your mortgage if you have one together.
Lenders may struggle to accept your application if you are still financially linked with someone else. They don’t want you to have two different sets of mortgage payments to meet each month, it could be too much for you to manage.
When people need help with their mortgage in this situation and they come to us for Specialist Mortgage Advice in Hull, we often get asked the same questions:
- How can I remove my ex’s name from my mortgage?
- How do I remove my name from my ex’s mortgage?
- Can I have two mortgages?
When facing mortgage hurdles like these, it can get very complicated, very quickly. More often than not, there is a solution to these scenarios, it’s just knowing how to get around them. With a Mortgage Broker in Hull by your side, you will have all of the stress taken off your back during these hard times.
Benefit income
Different lenders will have different viewpoints on benefit income, this includes how they are going to assess it. On the plus side, all benefit income such as child tax credit, working tax credits, disability benefits and pension can all be taken into account in one way or another. Therefore, it’s up to your lender to consider it or not.
If you need further advice about mortgages and benefit income, feel free to get in touch with our team. We will look over your situation for you and try to link you with a lender that will consider your benefit income, we aim to get it right the first time!
New job
Usually, with a new job comes a bigger salary and this extra income is often put towards something like a new mortgage. Naturally, you would expect that this means that you are more likely to get a mortgage, however, this is sometimes not the case.
Normally, when you start a new job you’ll have a probationary period. Probationary periods are usually okay, however, there will no doubt be some uncertainty there. Some lenders may only accept you once you have job security, it’s just down to the lender and mortgage costs.
Lenders will also look at your previous places of employment to determine your work patterns. They need to be sure that you aren’t just dipping in and out of work. Gaps in employment can have a negative impact on your application.
There are lenders who will work from a newly signed employment contract though even in month one or if your new job is about to start.
Evidencing a deposit for a mortgage in Hull
For any purchase, all mortgage lenders and mortgage brokers legally have to evidence the source of the borrowers’ deposit funds. This is to battle money-laundering and prove that the applicant has raised funds legally. Your solicitor and estate agent may ask for evidence of your deposit also.
We believe, that this is the most complicated part of applying for a mortgage and could cause some slip-ups if not done correctly. Whether your deposit is from savings, premium bonds, the sale of another property, gifted from a family member or friend, from family overseas, or from a personal loan, you are required to have the paper audit trail for the accumulation of funds.
The Importance Of Having Your Mortgage Reviewed in Hull
Mortgage review advice in Hull
A mortgage is one of, if not the single biggest financial commitment of your life. Even though this is the case, we find that many people spend very little time thinking about their mortgage and just continue paying their monthly payments no matter their rate or fees.
If you’ve been on the same mortgage deal for quite some time, a mortgage review is definitely something worth considering. It could even allow you to access a better rate, you’ll never know if you never look!
What is a mortgage review?
A mortgage review is exactly what you’d expect it to be; you approach your lender, building society or Mortgage Broker in Hull and let them know that you want to evaluate your mortgage situation to see whether you can access a better deal or not. The mortgage review process will work in the same way as the usual mortgage process.
You will need to provide documents to evidence that you are who you say that you are, as well as your current income and your monthly bank statements. They will also evaluate your credit score and your personal and financial situation. This should give them an indication of whether you can access a better deal or not.
If you can’t access a better deal, no worries! As a Mortgage Broker in Hull, we only charge for our services at the point where you move forward with a mortgage deal. It’s up to you if you continue with us or not.
Why is a mortgage review important?
Sometimes, it can be a pain to go through the whole mortgage process again, however, it could massively benefit you financially down the line. So in the long run, it could be worth it if you end up on a much better rate!
Undergoing a mortgage review from time to time could end up saving you lots of money. If you haven’t moved home or reviewed your mortgage in a while, you could’ve possibly dipped onto your lenders’ standard variable rate (SVR). This is likely to have a much higher rate than your previous mortgage deal.
Standard variable rate (SVR)
You’ll find that lenders’ SVR is much higher than their fixed-rate products. In some cases, their SVR is their highest rate. When on a lenders’ SVR, you aren’t tied into any particular deal, you can change deal whenever you’d like once you find another deal.
If you are on a mortgage term based deal, you will have to wait until the term finishes until you can find another deal (unless you are willing to pay a lot of money to switch). Although, if you forget to look for another deal whilst approaching the end of your mortgage term, this is the point where you will switch onto your lenders’ SVR. This is why you need to be aware of when your term is coming to an end.
Remember, you are under no obligation to stay with the same lender or Remortgage in Hull, if you want to shop around elsewhere to find a better deal, you can do so.
Equity Mortgage Advice in Hull
Lots of equity in your home
Due to the influx in housing prices, if you’re lucky to have lots of equity in your home, you may be able to access more competitive mortgage deals.
Mortgage rates are based on loan to value ratios, as a rule, the more equity you have, the lower your interest rate will be.
You may also have capital raising options available to you if that’s something that you are interested in.
Little equity in your home
If you are a relatively new homeowner, or your property has yet to increase in value, there may still be money-saving options with your current mortgage lender.
Usually, if you’ve kept up-to-date with your payments, you may also be able to access product transfer deals.
The true cost of a mortgage deal
In some cases, the mortgage deal with the lowest interest rate isn’t always the best one, this is because low-interest-rate mortgages often come with high arrangement fees.
A transparent Mortgage Broker in Hull like us will consider all of the mortgage costs for you and work out an estimation of how much a mortgage deal switch over will cost you.
We’ll be able to take into account your personal situation, your credit history, the property being mortgaged, valuation fees and any arrangement fees that are payable and recommend the most suitable one for you!
Get in touch for Remortgage Advice in Hull today.
How to Improve Your Credit Score in Hull
Credit Score Mortgage Advice in Hull
First Time Buyers or applicants with high credit scores are more likely to get accepted a mortgage over applicants with a low score. Lenders study your application carefully to ensure that you can afford a mortgage. You will never be guaranteed a mortgage, and this is because every lender has there own different lending criteria, and it is unlikely that you will match every single one of them.
Each lender has devolved their own way of deciding whether you match their criteria or not. You could fit the majority of them, but you also may not. Your mortgage advisors’ in Hull job is to find you a lender who has criteria that you will fit into. Again, they will try and find the best deal for your personal circumstances. Going to a Mortgage Broker like us, our teams of Specialist Mortgage Advisors in Hull will try their best to match your mortgage needs.
Going to a Mortgage Broker in Hull will allow you to Speak to a Mortgage Advisor in Hull who will try and find you the best deal possible based on your personal situation. You will always know what is going on and will continually be updated if anything changes or something comes up. Hullmoneyman, your devoted mortgage broker is here to help improve your credit score and help secure that perfect mortgage deal. Whether you are a First Time Buyer, Moving Home or Self Employed, we think that you would benefit from our fantastic Mortgage Advice service in Hull.
Credit Score Mortgage Advisor in Hull
There are a handful of different credit reference agencies in Hull that you can go to. However, the most popular are Experian and Equifax. Before you decide, research each agency as they could be holding incorrect data, which could help you discover any discrepancies.
Improving your credit score can be challenging, but here are a few more straightforward ways of going about it:
Avoid unnecessary credit searches:
Making multiple credit searches could actually harm your credit score. Price comparison websites will also damage your score, so be extra careful. We also advise you not to apply for credit during the mortgage process as a lender may look at this and think you are struggling financially. It is a good thing in the long term though as it shows that you can pay recurring payments.
Check that you are on the voter’s roll:
Another way to improve your credit score is by registering for the Electoral Roll. In the lender’s eyes, it shows stability which they want to see. When registering, you must spell your name correctly and set your address to your current one and not an old one. If you are not registered, you definitely should as it’s quick and easy to set up and improve your credit score. Make sure everything is correct, though!
Don’t run close to your maximum limit:
Maxing out your card each month is bound to reduce your credit score. The lender looks at your credit card statements to check whether you have paid off balances by the due date or not. If you are meeting due dates and have never exceeded overdraft limits, then a lender will see that you can manage your finances quite well and prove beneficial towards your application. However, if you don’t manage your finances carefully, then the lender will believe that you don’t take payments seriously, making your chances of being accepted by them low.
Check your address history is keyed correctly:
We sometimes find that people who have moved house have not told their previous credit provider. This means that on their records, you still live in the other property. So there are two separate addresses/properties linked with your name. Again, make sure you are on top of this as lenders don’t like to see your address history all mixed up.
Remove financial links to others:
Do you have a family member or ex-partner connected to your financial commitments? You might not even know if you do, but it’s worth checking just to be sure because you can’t get the financial association removed if the account is still live. If you are trying o remove any of these links, you should contact the credit reference agencies and request.
Applicants see credit scoring as being an unfair approach to accessing whether they can get a mortgage or not. Lenders disagree as this method provides a faster, fresher approach to the credit scoring system. It’s also a lot cheaper for them, and it gives always provides a result that they can trust.
If you want to get ahead of the game, you should send an up-to-date copy of your credit report to your Mortgage Advisor in Hull. Starting early may increase your chances of being accepted the first time. The more that your advisor knows about your financial situation, the better. Also, there are still some lenders that will want to do the process the old-fashioned way and will prefer a manual approach. They will have specific rules that they stick by about the number of defaults and CCJ’s that they will allow.
