We had done mortgages for Craig a few times in the past for him and his wife. So it was sad to receive a call to say he and his wife Emma had now separated. Craig wanted to transfer the house in Hull into his sole name. They had agreed to split the equity in their home between them 50:50.
The idea then was for Craig to arrange a remortgage to buy out Emma. Pay off the current mortgage and raise a small additional amount to pay off a credit card debt.
Craig is an HGV driver, and he was concerned about whether he would get a mortgage in Hull or not. His credit history was excellent. However, he had changed employers a few times during the past 18 months, including a period of self-employment.
Back when Craig called, he was actually between jobs, but he offered a new role with one of the companies he had worked for in the past.
I explained to Craig that while some Lenders need you to have been in your current job a certain length of time or require you to prove you have had 12 months’ continuous employment.
In any case, others can accept a job offer letter, coupled with a contract of employment signed by both employer and the new employee.
When you remove someone from the deeds, this is called a transfer of equity, and there is more legal work to be done.
Luckily, in this case, the split was reasonably amicable. The house got transferred into Craig’s name, and Emma received her share of the equity. Which she went on to put down as a deposit on an onward purchase
Suppose you can relate to this scenario and need some specialist mortgage advice in Hull. Get in touch, and we will see how a Mortgage Advisor in Hull may help.
As a Mortgage Broker in Hull, it’s not unusual for us to receive enquiries from First-Time Buyers in Hull like yourself who have recently got turned down for a mortgage from the bank. Going directly to a bank/building society for a mortgage should seem straightforward, but it can be more complicated than it looks.
You may have heard of the term ‘mortgage maze’, where every lender seems to be a dead-end, and you can’t quite find the one that will get you out the exit.
The good news is, this is where we step in, our job as a Mortgage Broker in Hull is to get you out of this maze. We’ve been in this maze before, and we know the challenges that come with trying to find the right lender.
Our team will help you find the right lender for you with a tailored product to match your financial circumstances. Here we will cover with you why you could be struggling to get accepted for a mortgage and how we may help.
To get accepted by a lender, you will first have to pass their credit score criteria. Each lender will always have its own unique credit scoring method, and some will be more complicated and harder to pass than others. Some lenders have even built their niche audience, so they may only offer specialist deals targeted at applicants with lower credit.
Lenders with the lowest interest rates will likely have the most arduous lending criteria, and usually vice versa. A lender will offer a better product to someone with a high credit score and carry a trustworthy credit history behind them over an applicant with a low credit score with a CCJ(s) or Default(s).
If you go directly to a lender without doing your research, you may be far off their lending criteria, and you could end up being declined. This can harm your credit file when you apply again through another lender, and they will see that you were denied. This is why we always advise that you don’t keep using lots of different lenders, as the more you are rejected, the higher the negative impact you are putting on your credit file.
Before submitting your mortgage application to a lender, we will first check that you match the lender’s criteria and are likely to pass their credit scoring. We aim to get it right the first time!
Our job is to find you a deal that we know you will love and match perfectly. This applies to everyone regardless of their situation. Bad credit or good credit, we will try our hardest to pair you with a great mortgage deal through a lender that will accept your mortgage application.
We’ve seen applicants struggle to get accepted for a mortgage due to the economy. For example, during the credit crunch in 2008, it was tough to obtain a mortgage no matter your credit history. Lenders lost all of their confidence in the market. They show that your chances of struggling to get a mortgage are likely to increase if the economy is suffering.
If you are struggling to get a mortgage because of the economy and the mortgage market, you may have to hold back your mortgage application at the moment. Sometimes, it may be better to keep building up your deposit so that when the market eventually bounces back, you have even more funds to aid your mortgage deposit. Furthermore, this may even increase your chances of being accepted too.
During times of economic crisis, in the UK, we’ve seen deposit requirements go as high as 25% of the property’s value. On the contrary, if you were looking to Remortgage in Hull in the middle of this period, you will have access to better rates and products.
Whether you’re remortgaging or carrying out a product transfer, you won’t need to provide a deposit as you are simply switching products and will still have the equity from your original deposit. You are likely to have more equity if you have been on a repayment mortgage.
If you are being declined for a mortgage due to your credit score, you need to start looking at ways to improve it. There are lots of methods you can do to try and improve your credit score. Here are some of the ones that we recommend:
🏠 Check whether you’re registered for the voter’s/electroral roll; if you aren’t, get registered! It’s friendly and easy to do and can boost your credit score.
🏠 Avoid unnecessary credit searches as they can show up on your credit file and sometimes reduce your score.
🏠 Don’t run too close to your maximum limits. Running into overdrafts and not paying off credit cards each month can reflect poorly on your credit score.
🏠 Validate that your address is up-to-date across all of your accounts. This includes credit cards and store cards.
🏠 Close unused credit accounts. This can also reduce your chances of falling victim to fraud.
🏠 Remove financial links to others. If you unknowingly have a financial connection with someone else’s name, it could be doing more harm than good.
There are more ways than you realise. So if you have a low credit score and need credit score Mortgage Advice in Hull, make sure you get in touch with our responsive team, and we will see how we can help.
If you are struggling to get accepted for a mortgage in Hull, it may be time to get in touch with a Mortgage Broker in Hull like us for help.
Being an expert Mortgage Broker in Hull has allowed us to gain valuable experience and deep insights into what lenders are looking for in mortgage applicants. We know all about lender’s credit scoring systems and their lending criteria, allowing us to search for a deal that we know will suit you and you’re likely to match with.
Once you get in touch with us, we will pass you onto a Mortgage Advisor in Hull, who’ll undergo your free mortgage consultation. At this stage, your advisor will learn a little more about your personal and financial mortgage situation so that they can begin searching through mortgage deals for you.
To learn more about our service, get in touch with us today. Hullmoneyman is your new home for Specialist Mortgage Advice in Hull; we have been helping struggling applicants over the last two decades. You could be next!
Going through a divorce or separation with your partner when you have a joint mortgage together can be difficult. In this guide, we have compiled a list of frequently asked questions that have been answered on this subject.
Regardless of if you are going through a divorce, you need to keep paying the mortgage, even if you are living elsewhere in the meantime.
You and your ex-partner both agreed to take out a joint mortgage and are both held equally liable for the debt until the mortgage gets paid off, regardless of whether it’s just one person living there at the moment.
Failing not to pay the mortgage on time can harm your credit history as well as your ex-partners, and your home may be repossessed if you do not keep up with repayments on your mortgage or any other debt secured on it.
As soon as you know you will be separating, you need to inform your mortgage lender sooner rather than later, especially if you find it challenging to meet your mortgage payments.
If you both decide it is best to move out of the property, sell up, and pay off the mortgage.
Any equity left after the mortgage has been paid off will be split between the two of you. Strictly who gets what from the leftover funds can be open to dispute.
If you move out and are looking to purchase a new property, our trusted team of mortgage advisors in Hull are available 7 days a week. They are ready to recommend you with the best deal, offering open and honest mortgage advice in Hull.
If the divorce is on good terms, some decide to stay and continue paying the existing mortgage, and this method can be beneficial, especially if your mortgage is fixed for a couple of years.
If you both conclude that you or your ex-partner will live in the property, the current resident will have to remortgage in their sole name.
If you decide to become the sole owner of the property, and there is an existing mortgage in joint names, you will need to remortgage. The new mortgage will be taken out in your sole name, therefore your affordability will be reassessed.
Yes, you can have more than one mortgage. Lenders each have different credit scoring systems and take various factors when applying for a second mortgage. The main one is your current financial commitments. Before applying, you need to make sure you can afford a second mortgage because if you get declined, it could negatively impact your credit file.
You will be happy to know that here at Hullmoneyman. We can perform a search for you that won’t damage your credit file. Once we have the necessary information gathered, we can then confirm the maximum amount you will borrow.
This can help you get a good idea of your budget and how much your monthly mortgage payments will be on top of your current financial commitments.
It can be challenging to move on from your current financial commitments, and this is why having an expert Mortgage Advisor in Hull by your side could prove highly beneficial.
Moving home can be a stressful experience, and if you add that to a complex situation like a divorce or a separation, it can sometimes all get a bit too much. Speak to a Mortgage Advisor in Hull today, and we will see how we can help you.
If you get divorced while your joint home is in negative equity, it can be challenging to sell the house and pay off the mortgage in full.
You might have to split the outstanding debt between you or agree with your mortgage provider.
It can be more challenging to get a mortgage if you have had credit problems in the past. Still, Gareth and Maria’s situation got trickier in that Gareth had not long since he quit his job to pursue his hobby as a Graphic Illustrator as a new profession. In this case study, we discuss the importance of taking Mortgage Advice in Hull as soon as possible to give your application the best possible success chance.
Gareth disliked his job, but the salary was excellent, and he felt he couldn’t afford to quit. He started moonlighting on the weekend as a Graphic Illustrator, and he began to see this as a viable career in itself. He eventually dived looking at Self Employment mortgage Advice in Hull, to improve his work/life balance and finally enjoy his job.
With the additional hours he could now devote to his former “sideline,” Gareth’s business quickly showed a profit. In fact, after the very first year of trading, it was profitable enough for him to consider buying a home for himself, Maria, and their adopted child and get out of renting for good.
Sadly, finances have never been Gareth’s strong point, and his negligence on such matters when he was younger led to a couple of defaults on his credit record. His credit score had improved in recent years, but the old ruins were still showing on his credit report. Therefore, there were two issues when the customers approached our Mortgage Broker in Hull for Mortgage Advice. These appeared to consist of finding them a Lender who would take a more forgiving view on his historic poor credit while also lending to him based on the year’s trading figures.
Gareth knew he would not be an easy mortgage and took the sensible step of engaging with us early on, well before they started viewing houses. He felt that getting a mortgage might even be impossible. Looking at Gareth’s Experian report, it is evident that a specialist lender would be required. Luckily his photography business didn’t need much cash to get going, and he had been quickly able to raise a 15% deposit with just a little help from the “Bank of Mum and Dad.” giving me the reason for some optimism.
Some of the less well-known “specialist” Lenders have carved out a real niche for themselves when lending to customers who have not long been Self-Employed In Hull. There is some additional risk for them in this area when so many businesses go bust in their infancy, thus to mitigate this, they insist customers put down a fat deposit. 15% was just enough, and we obtained an Agreement in Principle for Gareth and Maria, who went on to buy a family home.
Because these specialist lenders are working in carefully selected niches, they tend to charge higher interest rates than you might see advertised with High Street Banks. That said, these higher rates are by no means extortionate, and in many cases, it’s still cheaper than renting.
Just because your first mortgage ends up being with a specialist Lender, it doesn’t mean that you are frozen out of more competitive mortgage rates forever. While it’s likely that you’ll have to sign in for at least two years, if you can prove a good payment history, then a remortgage to a more well-known Lender offering a better deal after a while should be achievable.
Specialist Lenders don’t mind you seeking another deal elsewhere, and they expect that’s what will happen in a large number of cases. They see themselves as “stepping stones” Lenders, and when you come to leave them in the future, they take the funds you have repaid and look to lend it back out to new customers.
In summary, specialist Lenders play an instrumental role in the mortgage market. They will take a different view to mainstream Banks but don’t get fooled into thinking they lend to just anyone, and you have to fit precisely within their published lending guidelines.
Income Protection Insurance got designed to pay out a monthly benefit if you are not able to work due to sickness or accident. The applicant can decide along with the help of their mortgage Advisor in Hull how much cover to take out.
Additionally, how long they are prepared to wait before they are entitled to put a claim in. Income Protection insurance can be costly compared to taking out Life Insurance in Hull. As you are much more likely to be unable to work due to illness than pass away.
The monthly benefit will continue to get paid out until you return to work unless you have selected the “Budget” version of the policy. It usually only pays out for 24 months but is considerably cheaper.
The considerable advantage of Income Protection Insurance is that unlike Critical Illness Cover it pays out for whatever is preventing you from working. In Contrast to Critical Illness which is just a list of specified illnesses.
This sort of policy is prevalent amongst the self-employed and also employed applicants who do not benefit from Employer sick pay schemes.
It’s essential to us that all of our customers get given an equal opportunity to take insurance through ourselves. We offer all of our customers a free, no-obligation protection review.
That’s where we’ll discuss with you why having Mortgage Protection Insurance is essential to have in Hull and have a look at any existing policies you have in place and assess their suitability.
We’ll then recommend which products, including critical illness and Income Protection that meet your needs. If required, we’ll then tailor the plan to match your available monthly budget.
Mortgage Protection Insurance is a term that is used to encompass different kinds of cover. This cover is designed to limit financial stress on you and your loved ones from any unforeseen circumstances that may occur.
Here Malcolm has compiled a video to talk to you about the significance of having the correct insurance in place for your situation. Due to the past events of the coronavirus pandemic, the importance of health and getting insurance is more prominent than ever.
There are variations of insurance to choose from when it comes to protecting you and your family. Here at Hullmoneyman, we can compare lots of providers to find you the best policy for your circumstances. The following insurance policies that we can offer to you are:
For more clarification, get in touch and speak with one of our experienced Mortgage and Protection Advisors in Hull today, our team will always be at the other end of the phone or email when you need to talk.
Life insurance is an insurance policy that minimises the financial impact on your loved ones in the event you or another joint policy holder pass away. Our Mortgage Advisors in Hull can run through all the different types of Life cover accessible to you and advise the most suitable plan for you.
Critical illness cover is an insurance policy that covers serious illnesses detailed within a policy. Typically, these will include Stroke, heart attack, certain types and stages of cancer, and more.
Some illnesses will not be covered for example certain types of cancers. And you are unlikely to be covered for pre-existing health issues you knew you had prior to taking out the insurance. As mentioned, the specific illnesses covered and not covered will be detailed in your policy.
The most important thing is that the benefit gets paid if you fall victim to one of several specified critical illnesses and pays out whatever the long-term prognosis of that illness. The type of conditions covered vary from company to company; that’s why this type of insurance cannot be solely price-driven, and seeking specialist Mortgage Advice in Hull is advised.
In practice many businesses will offer Life and Critical Illness Critical cover as a combined policy and would usually payout on the “first event,” namely whatever happens first – either death or a severe illness – the payout is made. They could also get written on a single or joint life basis.
Whereas Life and Critical Illness cover pay out a lump sum, Income Protection pays out a monthly sum intended to replace your wages in the event of you being unfit to work. In contrast to the Critical Illness cover, there are no limitations on the illnesses or injuries covered, the only factor being whether they make you unfit to work.
There are, however, the restrictions on how much you can cover and how quickly benefits would start to get paid. Such As Life and Critical Illness cover, these policies are underwritten based on your health and lifestyle at the time you apply. All income protection policies get written on a single life basis.
You can combine Life Insurance, Critical Insurance and Income Protection, into what’s called a menu plan. The providers do give you a discount each time you add a benefit in, and that can be a cost-effective way of taking cover.
With a Menu Plan, you can mix and match a range of cover and benefits to tailor a plan that suits your needs and budgets. We strongly advise all our customers should the worst happen, least you have covered yourself and your family, to find out more speak to one of our mortgage Advisors in Hull today.
The least common of the mortgage protection policies but can often be useful – especially for those with young households. These plans can get taken to Life and/or Critical Illness Cover, and get underwritten on the application in the same way.
However, in contrast to the traditional forms of policy, rather than pay out a lump sum, the cover would pay an annual or monthly income for the remainder of the term of the plan. Consequently, it can replace the payment of the primary worker for several years, dependent upon a particular client’s circumstances and, because of this would usually be written on a level or basis, or an index-linked basis designed to keep up with inflation.
Many people have one or more of the different types of policy, and it would be wrong to think of Mortgage Protection Insurance as just an “either/or” choice. However, affordability plays a massive part, whilst it would be fantastic to cover yourself for every potential opportunity.
Our Mortgage Advisors in Hull are here to discuss with you and tailor the type of cover to be the most suitable combination to your family’s priority and budget. To find out more, give us a call or fill out our enquiry form to speak with one of our Dedicated Protection Specialists Advisors in Hull today.
Some employees’ incomes get made up of various elements. There is virtually always a basic income on a payslip. However, there can also be other items such as overtime, bonuses, and shift allowances.
Not necessarily all of these additional strands are guaranteed so as we learn in this case study, and lenders look at this in various ways.
Frankie, a First Time Buyer in Hull, was working for the NHS, and his payslips were incredibly complex. In addition to his basic income, he got paid different hourly rates for the various shifts he was working.
There was overtime too at the time and a half and holiday pay; in fact, one payslip had six different elements of payment on it!
His bank would not lend him and his family enough to buy the home they had made an offer on, and he approached a Mortgage Broker in Hull for a second opinion.
An explanation as to why the lenders can have an issue with multiple elements of pay on payslips. Is that these extra strands are rarely guaranteed.
Therefore, in the event of a repossession taking place. They might struggle to justify to a Regulator why they granted the mortgage in the first place based on income. Which they knew was variable.
As a result, lenders often take an arbitrary view; for example, they might take 60% of overtime if it’s on every payslip. Others take bonus into account if it’s payable monthly or paid annually, things can get very complicated!
Our group of Mortgage Advisors in Hull managed to help Frankie; in fact, we discovered two lenders who would lend him the amount he and his family needed.
Lender one had a policy of taking 100% of the shift allowance and overtime into account. As long as it might get evidenced on every payslip.
They applied an average of the last six months’ payslips to give them confidence. That the income got smoothed out and sustainable.
Lender two would also lend more than enough but evaluated the income differently. Instead of considering all the various elements individually.
They asked that we provide Frankie’s last two years’ P60’s and took an average of those.
This technique also works well for employed applicants. Who works in sales roles with low basic salary but high commission and bonus.
Frankie was delighted he contacted us for our Mortgage Advice in Hull. He knew the mortgage was easily affordable, and he knew that his income was sustainable. It was just a case of finding a lender who took a different approach.
Whatever your situation, whether you are Moving Home in Hull, buying as a First Time Buyer, or looking to Remortgage. If your income gets made up from several different sources.
We would recommend you make contact with us well in advance of making an offer. So you can be sure of your maximum borrowing capacity upfront to avoid potential disappointment.
Friday 27th September 2019 marked the day for Macmillan Coffee Morning, an event which the charity encourages others to take part in to raise money for cancer support.
Throughout the years our Mortgage Advisors in Hull have taken part in many of these, keeping the charity close to our heart and help where we can.
This year it was one of the best yet, with some incredible food brought forward by the brilliant staff in Hull.
Each one of these went down a treat with our staff at Hullmoneyman and our building neighbours, who donated an amazing amount for Macmillan Cancer Support.
We are incredibly grateful for everyone that baked, donated, tasted, and had fun during our coffee morning. We are all very full, but we cannot wait for what next year bring us.
When people approach us for Mortgage Advice in Hull, one of the first questions that we get asked, particularly by First Time Buyers in Hull, is “How much can I borrow for a mortgage?
Let’s look at the background of affordability assessments and how they apply post-2014.
Before the days of credit scoring, mortgages were manually assessed by your local building society manager. Lenders moved towards more uniform income assessments to provide a consistent approach in the 1990s.
Maximum lending “caps” were introduced so that customers couldn’t borrow more than three to four times their annual income.
Near the time of the credit crunch in the 2000s, these income multipliers kept becoming more and more generous. Of course, some lenders allowed their customers to “self-certify” their incomes with no background checks such as payslips.
This all went very wrong and it was a struggle to get onto the property ladder from 2008-2010. This is because lenders battened down the hatches and created an extremely cautious (over-corrected) lending environment.
Whether you were directly approaching a lender or going through the broker route and getting Mortgage Advice in Hull, both outcomes would be the same.
The Mortgage Market Review (MMR) was introduced once the market had finally recovered from the effects of the credit crunch. This brought a new set of guidelines for lenders to adhere to. The old income multiplier method was scrapped and replaced with new, more sophisticated affordability calculators.
These new calculators provided a closer look into an applicant’s spending habits and net disposable income. This meant that the lender could have an in-depth look into your bank statements to ensure unaffordable mortgages were not granted as they were before the Mortgage Market Review.
There is still a “lending cap” in place at about 4.75 times your annual income, but your expenditures are also analysed. For example, Lenders seem to penalise low-earners and even things like gambling can sometimes affect your chances of being lent the money. When it comes to your bank statements, lenders will look at a lot of different things, so during the months leading up to your application, be wary of what your expenditures are.
Some take pension contributions as a fixed outgoing so would often lend, say a public sector worker with a big pension deduction less than a private sector and so on.
If you are looking to maximise your borrowing capacity to help aid your application for that dream home, then we recommend speaking to a Mortgage Broker in Hull, like us. A Mortgage Advisor in Hull will research the market on your behalf and try to find you a lender that will lend you the amount that you need as well as a deal that is best suited you personal and financial situation.
Getting Mortgage Advice in Hull before taking out a mortgage could help you understand the whole process a lot better. If you come to a broker like us, you will have your own Mortgage Advisor in Hull who will explain everything to you and help you work out your finances to ensure that the repayments feel comfortable to you.
With email and social media property alerts, an estate agent can now market a property to hundreds of potential buyers within seconds and wait for the phone to ring. With this in mind, if you’re seriously property hunting, you’re going to need to be ‘mortgage ready’.
Being mortgage-ready will allow you to move fast if you receive an alert for the property you want to go for, and will potentially speed up the starting process by a considerable amount of time. With the shortage of housing, especially in some of the more popular areas, it’s certainly a seller’s market at the moment.
We offer all of our customers a free, no-obligation mortgage consultation over the phone, which ends up working best for some people. Daytime, evening or weekend is not a problem for us.
We’ll listen to your individual situation and answer all of your questions, not just about the mortgage, about the whole home buying process. Which can be even more stressful if you are a First Time Buyer in Hull.
Following our consultation, we’ll be in a position to recommend the most suitable mortgage for you. You’ll also receive an agreement in principle certificate to back up any offers you make.
This certificate will prove to the estate agent that you have spoken to a mortgage advisor and you’re a serious buyer.
1 – A phone call or meeting, where we are able to take some information and find out what you are looking to do. We’ll then recommend the best mortgage for you.
2 – Finding a property!
3 – Before you make an offer – we’ll finalise your figures and help you to get a good deal.
4 – We’ll start the application process and process your mortgage right through to you getting your keys. We’ll also provide help and support during the whole process and help resolve any hurdles we come across along the way.
Don’t worry about it, it is never too early to talk with a Mortgage Broker in Hull about your situation. Any questions you may have can all be answered and you’ll know when you may be in a position to proceed.
If you have a low score, then there are various credit reference agencies that you can sign up with to see a copy of your credit file. Click here