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I’m a Single Homeowner in Hull, Should I take out Life Insurance?

You may not be married, nor do you have any intentions in the near future to settle down with kids, but that doesn’t mean you wouldn’t benefit from looking into life insurance in Hull. Even for those of you who are single homeowners, there are still plenty of completely valid reasons to take out life cover.  

Having a life policy in place can be a huge support to your family in dealing with any debts that may arise, such as outstanding mortgage payments, if something untimely were to happen.

How does life cover affect your mortgage? 

Generally speaking, the purpose of life cover is to cover any mortgage debts. The policy will usually be set up to pay out a lump sum, equivalent to the cost of the current home loan, should the policy holder (the person with the life cover) pass away whilst still making monthly mortgage payments.

If you are living with a partner or have had any children, the cover might even get extended as a means of providing your dependants with an income boost to cover any living costs for the time being.

The extra protection here likely won’t be necessary for single cover applicants, but taking out some insurance to cover your mortgage is still something we believe is worth doing.

Paying Back The Mortgage Loan Amount

If a single homeowner dies at any point prior to their mortgage getting paid off, their bank or building society can look to pay back the mortgage loan from their late customer’s estate, i.e., their collective belongings (accumulated assets is a term you might see used for this), such as a car or something else of worth.

In most cases we find that in order to pay off the remaining mortgage balance, the property will get sold at auction. If the home has fallen into negative equity, the lender has the right to demand that the estate must make up the difference.

Alternatively to this, the lender can demand that the property be sold and any surviving family members are not able to make up any shortfall. Making things worse here, if the probate process happens to be drawn out (the probate is the time of which the individual’s estate is sorted out), the lender can actually continue to add interest charges, increasing the total amount to be paid. Immoral? Potentially. Illegal? Unfortunately not. 

Taking out life insurance will help to prevent these problems from occurring. 

Speak With One of Our Mortgage & Protection Advisors in Hull

If you are looking at your options for potentially taking out life cover at some point, please get in touch and speak to one of our dedicated protection advisors in Hull. If you have any plans of becoming a first time buyer in Hull or you are already a homeowner with a change in circumstances, it makes sense financially and personally to get on top of it now rather than leaving it too late.

A life insurance policy means that an inheritance can be left to children or grandchildren, regardless of if there is any equity left in the home at the point of passing. 

Divorce & Separation Mortgage Advice in Hull

Divorce & Separation Mortgage Advice | MoneymanTV

Divorce or separation is not something we ever prepare for. We live for the moment and embrace the feeling of love, so if something unexpected happens and this ends up becoming a reality, your perfect world can sometimes become a little complicated. It can affect ownership of belongings and pets, your children, your finances and more.

We find that in most situations where children are involved, the parent who spends more time raising them, say a stay-at-home parent, will stay in the property with those children whilst the other moves out. There may come a time that whoever is “in situ” wants to take over the mortgage in their own name. Alternatively, maybe both parents want to leave and start anew.

One of the biggest things that may become complicated is any mortgage commitments you made together. If sorting this out isn’t going quite so smoothy, it may be time to approach a mortgage broker in Hull to get that the specialist mortgage advice that you need.

As an experienced and dedicated mortgage broker in Hull, we deal with specialist cases every single day. Through our years within the mortgage industry, we have been there to support and guide many different customers who were going through a divorce or separation. When those people do get in touch, we often find ourselves being asked the same three questions:

  • 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?

Once you have already made your mortgage commitments, changing these can be a difficult process. Both of your names are on your mortgage and as nice as it would be, it isn’t just as straightforward as speaking to your lender and asking them to take your now ex-partner off the contract.

When you approach your lender or a trusted mortgage broker in Hull to enquire about removing a name from a mortgage, they will have to be sure that the remaining applicant on the deal is able to afford their mortgage completely, without the assistance of another party.

Each of you will have to receive a full affordability assessment regardless of whether you have kept up to date with your mortgage payments or not. You may even be able to prove that you have been paying your mortgage payments without any help from your ex, but this will not change the fact their name is tied into the deal and you’ll still need to pass the lenders checks.

At this point in the process, we often find that people have someone already ready and willing, who can step in and replace the ex-partner on your mortgage. This is usually a family member, a close and trusted friend or in some cases, a new partner altogether.

Every lender will assess your affordability for a mortgage in their own unique way, so don’t give up if your existing lender is unable to help you out. There may still be other options available to you as a homeowner, so it is always worth seeking the help of a mortgage broker in Hull to see how we can help you out.

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

This will work the same as if you were trying to removing another person’s name from your mortgage. Both of your names are still tied into your mortgage so even if you are the one who chooses to leave, you are ultimately still responsible for any mortgage payments if your ex-partner cannot keep them up.

Even if you have a verbal or written agreement between you both that your ex will be the one maintaining payments, this is not legally binding in the eyes of the lender and you will be deemed responsible.

If at any point in the future you wish to take out a mortgage on a newer property, solely in your name, the mortgage payments for your old property will be taken into consideration by the lender. As such it is very important to take this into consideration prior to doing so and is why we always recommend getting help from a professional mortgage advisor in Hull ahead of time.

In these kinds of circumstances, we find that people can often get confused and stressed out, which is exactly where a fast & friendly mortgage advice team here at Hullmoneyman can step in. One of our loyal and hardworking mortgage advisors in Hull will sort everything out for you and recommend the most appropriate options available to you as someone who is now moving home in Hull. We will always have your best interests at heart

Some lenders are more generous as regards how much they’ll lend you than others. Some are strict and some may be more lenient, with any existing mortgage commitments being a large factor in this during these circumstances. We will take this into account when recommending the most suitable lender to apply for a mortgage agreement in principle with.

Second Mortgage Advice in Hull | MoneymanTV

Can I have two mortgages?

For many homeowners, depending on varying factors, the option to have more than one and even more than two mortgages on different properties is a possibility. There will be a lot for your lender and their credit scoring systems to assess when you apply for a second mortgage.

The main factor, much like above, is determining whether or not you can afford this route. If you are applying for multiple mortgages and are failing, this could have a very negative effect on your credit score.

As a fast & friendly mortgage broker in Hull, we have the ability to perform a search for you without damaging your credit file. Once we have keyed in all of your information, we can provide you with an estimation of the maximum amount that you will be able to borrow.

This will help you create an outline of your budget and how much your monthly mortgage payments are roughly going to be on top of your existing financial commitments.

Dedicated Mortgage Advice in Hull

It can be difficult to move on from your current financial commitments, especially in situations like these. This is why having an expert advisor by your side will be incredibly beneficial to you in the process of setting yourself apart and removing a name from a mortgage.

Moving home is already a stressful enough 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. Get in touch with a mortgage advisor in Hull today and we will see how we can help you.

Self-Employed Mortgage Criteria Advice in Hull

Self-Employed Mortgage Advice in Hull

Many can see the concept of being self-employed as a barrier when it comes to credit, especially when it’s getting a mortgage. With the help of an experienced mortgage broker in Hull working by your side, that doesn’t have to be the case.

The first thing that you should be aware of is that there isn’t a specific uniformed style of lending criteria for sole traders and limited company directors. Each individual lender has their own policy that is unique to them and the amount they will allow you to borrow can largely differ to that of another lender.

Sole Traders or Partners

Looking at sole traders (also known as partners), the amount that you will be able to borrow for a mortgage will be an amount based on your net profit.

You’ll find that the majority of lenders average your last 2 or 3 years’ net profit but there are lenders out there that can consider using your latest year. If your net profit has decreased the lender will usually go off the latest year and will require you to provide them of an explanation as to why this has happened.

Limited Company Director (20% or more shareholder)

If you are a limited company director who is in ownership of 20% or more in company shares, then in the eyes of mortgage lenders, you will be classified as self-employed and similar rules will apply as above in terms of averaging. The figure that they tend to average will be your salary (typically this can be equivalent to the tax-free allowance) plus declared dividends.

You’ll find that there are different circumstances where a limited company may be performing well in terms of net profit, but the directors are not drawing their dividend. These type of applications can often face hurdles when it comes to the maximum borrowing capacity, as there is not as much income that can be declared by the applicant.

It’s not the end of the road, however, because there are lenders out there that will consider using your share of the net profit, rather than salary plus dividends.

Minimum Trading Period

The minimum trading period for people who are self-employed in Hull or limited company directors is one year, though in some cases there are mortgage lenders who will want to see more than that. If you have recently formed a limited company after a period as a sole trader, under the advice of your accountant, then there are lenders who can look at this as long as it is within the same field of work.

As you can see from the information listed, obtaining mortgages for the self-employed can easily be seen as difficult business, though the hardest part is simply evidencing your income. If you would like to talk about your situation please feel free to Get in Touch and we’ll talk you through your options, as well as send you a form for your accountant to complete. This will help us tailor-make a recommendation designed to meet your exact circumstances.

Fixed-Rate Mortgage Advice

Open & Honest Mortgage Broker in Hull

What is a fixed-rate mortgage?

Sometimes people prefer the comfort of knowing exactly how much their monthly mortgage payments will be. If this is the type of situation you would prefer to be in, then you would be much better suited for a fixed-rate mortgage in Hull. A fixed-rate mortgage is where your monthly mortgage payments are arranged to be a set amount every month. This won’t change for the duration of your term, which can vary anywhere from one year to ten. The longer you fix for, the higher the rate becomes.

What is a Fixed-Rate Mortgage? | MoneymanTV

Which is the cheapest fixed-rate mortgage?

If you are looking for a more cheaper fixed-rate mortgage, then you should probably shy away from taking out a rate longer than two years. The reason why we say this, is that it could come with much higher interest rates if you take one out for longer.

If you take out a mortgage for 10 years at a certain percentage, during your term interest rates could have risen, leaving the lender out of pocket whilst you’re sitting comfortably on a lower percentage. That presents itself as a higher risk to the lender, so longer terms tend to come with higher rates. In sticking to a shorter term fixed-rate mortgage, you will find yourself with a better rate, but only for that 2 years.

Believe us when we say it, the end of the two years will come around very quickly, meaning that you will have to search for even more deals towards the end of the mortgage. If the interest rates have risen at any point during the 2 years, then you may be faced with higher payments than you’re used to at the point of renewal.

Should I fix my mortgage for 5 years?

If you would prefer to limit searching for new deals every two years, perhaps a 5-year rate would suit you better. This is a common occurrence in the mortgage world. By fixing it for 5 years, you would have a stable recurring payment for a much longer length of time. Remember, as touched upon earlier, being on a fixed-rate mortgage for 5 years will mean that you will be paying more for each mortgage payment per month than you necessarily would on a 2-year rate.

Should I take out a long term fixed-rate mortgage?

When we say “Long-term”, we don’t mean 5-6 years, we mean anywhere from 7-10 years. There are both positives and negatives for taking out a long term fixed-rate mortgage. Long term fixed-rate mortgages have never been a widely popular option in the UK. As a trusted Mortgage Broker in Hull, we don’t usually recommend fixed-rate mortgages of such a length.

Again if we hearken to aforementioned points, we know that a lot can change within a decade so committing to a fixed payment for as long as ten years creates problems with lenders. It also may not work in your favour either. Once you are in the deal, you cannot get out of it and if rates drop below your current rate, rather than rising, then you may be paying well over what you otherwise would’ve been.

Early Repayment Charge (ERC)

If something happens and your financial situation changes you could end up having to repay your mortgage a lot earlier than you had initially expected to. In doing so, you may be presented with a charge by your lender. This is known as an Early Repayment Charge (ERC).

The ERC is calculated as a percentage of the amount that you owe. For example, if you manage to pay off your £100,000 mortgage early and your ERC is 2%, you would be charged £2,000 penalty as you have essentially broken the fixed contract.

We regularly witness people being given an ERC because they think that they can get away with paying off their fixed-rate early, not realising that they will in-fact be charged. For example, people who know that their fixed rate is due to end soon may start to look up deals for the next fixed-rate mortgage they wish to move onto.

If they find a great deal and they think that the rate may increase, they may look to pay off the rest of their fixed-rate payments in order to switch to this new deal, even though this of course comes with additional charges.

We also advise that you avoid chasing “headline” deals, those glamorous looking deals you see widely advertised. Chances are your circumstances may be different anyway and you’re not guaranteed to get it at the rate you were hoping for.

Remember that the lowest rates come with the highest setup fees which some customers are keen to avoid. Get in Touch today for more fixed-rate Mortgage Advice in Hull. If you are First-Time Buyers or Moving House in Hull and would like more information or some help with a fixed-rate mortgage, our dedicated mortgage advisors will be on hand to provide any assistance they can.

First-Time Buyer Mortgages in Hull

What do Lenders Look for When Assessing my Bank Statements?

What Do Lenders Look For On My Bank Statements? | MoneymanTV

Why does the lender need my bank statements and how do I obtain them? 

The reason a lender will need to see your bank statements is to learn more about you as a person and what your spending habits are like. How you have acted lately and the presentation of this on your bank statements can be the difference in how much a lender will let you borrow, if anything at all.

This is down to risk. A lender needs to know you’re responsible with your money and can be trusted to handle finances appropriately. After all, a mortgage is likely the biggest financial commitment you will ever make in your life and is not something to be taken lightly.

Your bank statements are easily obtained either in the post from your bank, over the counter from your local bank, or as often seen these days, as a printable version from your bank’s online platform. 

What will lenders be looking for on my bank statement? 

So down to the main question now. What will they actually be looking for? What might flag up in their eyes?

Well as mentioned above, they need to know you’re being responsible with your finances. One of the things they’ll be looking at is if there are any overdrafts. Using this every so often is not necessarily a bad thing, but if you are exceeding your limit on a regular basis, this is going to put your level of trust into question.

More factors to be careful with are potential returned Direct Debits, which could show a lender you are not consistently reliable, and not disclosing loans at application stage, as it won’t look good if the lender finds outgoings on your bank statements that you failed to mention. Once again, this is a process of trust.

Other things to be aware of are missed payments for personal loans and things such as credit cards.  If you can prove you handle your money well and are able to meet monthly payment deadlines, a lender will be more likely to lend you an amount closer to that which you would like to borrow. 

Will gambling affect my chances of getting a mortgage? 

This is a question we find ourselves being asked on a regular basis. All too often do customers find themselves stuck when they have a history of gambling behind them. The occasional bit of fun is harmless, but if you are frequently betting large amounts of money, whether you’re making it back or not, a lender will not look at your situation favourably at all.

To learn more, please see our article on “Do Gambling Transactions Look Bad on My Bank Statements? 

What can I do to show the lender I am reliable? 

From our experience in working with many First-Time Buyers in Hull & Home Movers in Hull, we have found that most mortgage lenders will want at least three months bank statements from an applicant.

With that in mind, it’s time for you to forget the past and think about the future. You have at least three months to work on your finances. The first thing we’d suggest is if you are a frequenter of the local bookmakers or online gambling scene, you take a break for some time. This not only benefits your financial state but can also benefit your mental health too.

The next steps we would recommend taking are to trying to save money. For example, cooking in as opposed to eating out, treating yourself to unnecessary purchases and cancelling unneeded subscriptions are great ways of freeing up additional cash to ensure bills can be paid on time.

What this boils down to is simply being sensible and planning with plenty of time ahead of what you’re looking to do. The further away you find yourself from bouts of debt and financial uncertainty, the better your chances will be with a lender. 

Speak to a Dedicated Mortgage Advisor in Hull 

Whether you’re a First-Time Buyer, Moving Home or Self-Employed, it’s always important to keep on top of your finances. If you have a bad credit history and are unsure of what to do, you can always enquire for Specialist Mortgage Advice in Hull by Getting in Touch with us today. We’ll advise as best as we can, to further you through your mortgage journey.

Do Gambling Transactions Look Bad on My Bank Statements?

When lenders ask for your bank statements you can expect them to look for a variety of things. However, their main objective is to assess whether you are the sort of person who manages money responsibly and is likely to keep up to date with their mortgage payments. In recent months, one question is being asked by applicants quite a lot: “do gambling transactions look bad on my bank statements”.

What Do Lenders Look For On My Bank Statements? | MoneymanTV

Mortgage Questions to Consider

What has it got to do with the lender whether I gamble or not?

Whether you have an annual flutter on the grand national or regularly use internet betting sites, clearly there is nothing illegal about properly licensed gambling. Many of the bookmakers advertise on mainstream TV and radio. A lot of people see gambling simply as a mainstream hobby or pastime similar to many others. However, it shouldn’t be forgotten that even the gambling advertisers urge customers to “please gamble responsibly” and this is the key to bear in mind when applying for a mortgage. Thus, whilst it is not a lender’s job to tell you how to live your life, how to spend your money or indeed to moralise on the ethical rights and wrongs of gambling, they do have a duty (underscored by mortgage regulation) to lend responsibly.

If lenders need to prove to the regulators that they are making prudent lending decisions, it isn’t entirely unreasonable of them therefore to expect the people to whom they lend to adopt a similar approach when it comes to their personal finances. Think about it. If you were lending your own money would you lend it to the applicant who gambles or the one who doesn’t?

Is it still possible to get a mortgage if I’ve got gambling transactions on my recent bank statements?

As mentioned above, it is not illegal to gamble so just because you have the odd gambling transaction on your bank statements it doesn’t automatically mean you will be declined for a mortgage. However, the lender will consider whether these transactions are reasonable and responsible. Thus they will particularly look at the frequency of these transactions, the size of the transactions in relation to the person’s income and the impact upon the account balance.

If these transactions are infrequent small amounts that make no significant impact on a regular credit bank balance, then they are not likely to be regarded as important. However, if you bet most weeks or you are constantly overdrawn, the lender is therefore likely to see that as being irresponsible and decline your application.

Is there anything else lenders wouldn’t want to see on my bank statements?

As we’ve seen, basically lenders are looking at your bank statements to show how you manage your money and to help them establish whether this gives them either the confidence that you are financially prudent or the evidence that you are not.

Remember, lenders are financial institutions that, either directly or as part of a wider group, often sell current accounts, overdraft facilities credit cards and personal loans, so understand that these things can all play a part in prudent financial planning. The key for a mortgage applicant is how these facilities are managed. For example, having an overdraft facility and occasionally using it, is not inherently a bad thing; regularly exceeding the overdraft limit – not so good. Thus, lenders will look for excess overdraft fees or returned direct debits because these would normally show that the account is not being well conducted.

Other things to look out for include credit transactions from pay-day loan companies; “undisclosed” loan repayments (i.e. if you said on the application that you have no other loans but there appear to be regular loan payments, this could be a problem); they would look out for any obvious missed payments; finally, they might also consider how much of a typical month is spent overdrawn – i.e. if you only just go into credit on payday and for the rest of the month are overdrawn, how sustainable is this mortgage?

What can I do to improve things?

The simple answer is – be sensible and, if possible, plan ahead. Typically, a bank would ask for up to three months of your most recent bank statements. These will show your salary credits and all your regular bill payments. Thus, if you know you’re likely to want to apply for a mortgage in the not-too-distant future, try to make sure that you avoid any of the above pitfalls. Take a break from gambling for a short while and work on presenting your bank account in the best possible light.

Your mortgage broker can help you as there are some lenders who may ask for fewer bank statements than others or indeed some may not even ask for them at all. However even these lenders would reserve the right to request bank statements in certain circumstances, so your best bet (no pun intended) is to be as prudent as possible in the run-up to any mortgage application. Remember, if you do gamble, please gamble responsibly!

Get in Touch With a Mortgage Broker in Hull

If you are a First Time Buyer in Hull who doesn’t know a lot about mortgages, you should definitely get some specialist advice from a Mortgage Advisor in Hull. They will guide you through the whole mortgage process and help you with your application and get you on track so that lenders will be impressed.

Self-Employed Mortgages in Hull

Mortgage Advice in Hull For Self-Employed Applicants

Self-Employment is always on the rise, which in turn brings a rise in Self-Employed Mortgage Applicants in Hull. This is down to changes in work life in Hull and the world around us. There are now more opportunities than ever before to work from work, to start a business and more. As a dedicated and knowledgeable Mortgage Broker in Hull, we rarely see people planning to stay with their first employer from their first year, all the way through to retirement. They want to change their jobs to improve their personal development and financial situation.

There are lots of opportunities for the self-employed and freelancers within the Digital and Engineering sector. This is down to the world becoming more and more interconnected. We are constantly learning which opens more and more opportunities for the self-employed within these industries.

It used to be difficult for Self-Employed applicants to obtain a mortgage. However, with Self-Employment now becoming a lot more common and a lot more gaps opening up in the market, lenders have become more relaxed and lenient with self-employed applicants. The process of applying for and obtaining a mortgage as a Self-Employed applicant is now a lot easier than it ever was in the past.

Self-Employed Mortgage Hints and Tips in Hull

To get you ahead of the curve when it comes to your mortgage, we have put together a small collection of some helpful mortgage guides, to support anyone from Self-Employed mortgage applicants to those thinking of Moving Home in Hull. Whether you have been in this game before or you are First-Time Buyer in Hull, we are sure that you will find the assistance of a trusted mortgage broker in Hull beneficial.

How many years’ books do I need?

The minimum you will need in order to obtain a mortgage is one year’s accounts. If you go with a self-employed specialist lender, you will find that they often work off a single year. High street lenders tend to be a little stricter and will want two year’s accounts from you.

Unfortunately, statistics show that most new attempts at running a business end up being unsuccessful and this is why lenders always need you to evidence your track record, to prove you are reliable and have ‘staying power’.

How will a lender assess my income?

Most lenders will look at the average of your last two years’ worth of income. Although, if your business has grown over the past year and the lenders can see that you will be able to afford a mortgage and run your company, they will go off the latest year and ignore anything that has happened previously.

I’m a director of my own limited company

If you are a director of your own limited company, then technically you are an employee of your own business. Lenders will not view it this way, however, and will only assess you as an employee if you own less than 25% of company shares.

Lenders often add the dividend you have drawn to your annual salary as a way to work out your earnings for the year. The amount that you can borrow for your mortgage will be based on a multiple of this particular figure.

You will find that from time to time, some lenders will work from your net profit rather than your salary/dividend. This works in the favour of company directors who like keeping their drawings low.

My accounts don’t reflect the true success of my business – what can I do?

As a trusted and hardworking Mortgage Broker in Hull, this is a question that we find ourselves being asked all the time. During the meeting you have with your accountant each year, you will talk about how to minimise your tax liability. This works the other way when it comes to taking out a mortgage as a Self-Employed Mortgage applicant, wherein the more income you have declared, the bigger the mortgage you may find yourself able to obtain.

How much deposit do I need to put down?

Whether it’s a Self-Employed Mortgage or not, a minimum of a 5% deposit is still required. It’s exactly the same as employees. If you only have one years’ accounts, you might find it more beneficial to put down a bit more deposit than what you initially would’ve, in order to increase your chances of succeeding. See our article to find out more on How Much You Need For a Deposit in Hull.

Contractor mortgages

When it comes to looking at mortgage options for contractors, there are lots available. Nowadays, it’s a more common occurrence to find people working from short-term contracts. If you are able to evidence that your company has a good track record, your lender can consider taking your ‘daily rate’ rather than going by your net profit. This will benefit contractors greatly, as lenders will consider treating you as if it’s more likely to work in your favour doing so, they’ll treat your case as self-employed instead.

Lenders will need you to provide information on how long is left on your current contract, as this can influence their decision. They need to be absolutely certain that your income will continue as it is, in order to get a true indication as to whether or not you will be able to afford your mortgage. Even when you’re on your very first contract, it may still be possible to obtain a mortgage, though this all depends on your specific circumstances.

Can I still get a self-cert mortgage?

It is no longer possible to get a self-cert mortgage. These were heavily abused and caused major problems for both the mortgage market and the economy as a whole. There are zero plans for these to make a return in the future.

Self-Employed Mortgage Advice in Hull

We know that trying to get a mortgage as a sole trader, partner or company director can be a tricky process, mostly down to trying to evidence your income. Whilst it can be much easier for an employed applicant, know that you have the same chance of getting a mortgage as anyone else with a similar income and credit score. Depending on the lender that you take out a mortgage with, some may have stricter criteria than the standard lender. This is why approaching a dependable Mortgage Broker in Hull, could be truly beneficial to you and your goals.

We are able to give you a realistic expectation from the start, guiding you through the self-employed mortgage process and providing support even beyond. Our reliable and determined mortgage advisors in Hull are able to search through thousands of mortgage deals on your behalf. Every customer has access to a free initial Mortgage Consultation, so make sure that you Get in Touch with one of our Mortgage Advisors in Hull today. We will talk you through the most appropriate route for you to take based on your self-employment history.

Sole Name Mortgage for a Married Applicant

Mortgage Advice in Hull for Sole Name Mortgages

The majority of married applicants would much rather jointly apply for a mortgage, as opposed to applying for a mortgage in a sole name. Property prices have inflated far beyond wage increases over the years, and in a lot of mortgage cases these days, two salaries are required in order to qualify for a big enough mortgage on a property.

However, sometimes you may find yourself in situations where one salary is enough to cover the amount you’re looking to borrow. On top of this, there could be specific reasons why one applicant doesn’t want to go on the application.

Previous Credit Problems

One of the applicants may have found themselves with a previous credit problem such as bankruptcy or a CCJ, which could prevent them from currently being on a mortgage, even if they would like one.

In cases of bad credit with one of the applicants, providing the other applicant isn’t tied to the credit problem in some way, be they a partner or a business partner, one applicant may still be able to apply for the mortgage in their sole name.

The person eligible for applying for a mortgage in their sole name would need to be careful to try and avoid creating any financial association with their partner. If you happen to get tied to a financial commitment with them in some way, this could seriously affect your credit score and harm your chances of obtaining a mortgage in the near future.

Borrowing Capacity

Other instances where an applicant may choose to go the route of applying in their sole name, can include if the other applicant is unemployed. As a rule, the maximum borrowing capacity for couples applying for a mortgage together is actually lower than if the working applicant took out the mortgage in their sole name. This is something we have seen happen quite a lot over our years in the mortgage industry!

The age of applicants can also become a factor in the calculation sometimes. If one of the applicants is say in their 50’s, a mortgage lender may not look at their situation favourably, due to the risks of old age and how inconsistent income could be at that age. That being said, if a younger partner applies as a sole applicant, this could make things a little easier as they have more opportunities for a bigger income than their partner.

Tax Implications

You may find that there are stamp duty or other tax implications which would lead to one of the applicants to seek out their options of applying for a mortgage by themselves, rather than with their partner.

We Can Usually Help

Depending on your personal and financial situation, some lenders are quite strict about married applicants having to do the mortgage in joint names. This is likely down to their perception of the future and the financial security of the situation. Mortgages become quite complicated if a couple were to ever divorce. Luckily this view isn’t seen by all lenders, so there are still options out there for applicants.

Our experienced Specialist Mortgage Advice team in Hull are here to help 7 days a week, so if you would like to speak to a dedicated Mortgage Advisor in Hull, please Get in Touch and we’ll get the ball rolling on your mortgage process.

Problems Getting a Mortgage in Hull

Mortgage Advice in Hull for Applicants Who Are Struggling

We are all unique and all have our own different problems that could potentially affect us getting a mortgage in our lives. Here at Hullmoneyman, your loyal and experienced Mortgage Broker in Hull, there are not many situations that we encountered in our time of providing mortgage advice in Hull. It would be our pleasure, if we can, to help you through these complex situations. Below we’ve created a short look at some factors that you could encounter whilst trying to getting a mortgage.

Childcare costs

The likelihood that you will be turned down a mortgage due to childcare costs is not very high. However, childcare is often a very large outgoing, so you will be granted a lower mortgage amount than competitors who maybe have the same income but do not have children of their own.

Every so often, lenders will take things like child benefit and other state benefits into account and not hold it against customers, allowing for a little more leeway when it comes to the maximum allowance.

Mortgages following divorce/separation

No one plans for a separation or divorce from a partner when buying a home together. Unfortunately this happens more than you might expect, causing a need for reorganisation of finances.

We often get asked the same or similar questions regarding divorce and separation mortgage advice in Hull:

  1. Can I remove my name from my ex’s mortgage?
  2. Am I allowed to have 2 mortgages?
  3. How do I remove my ex’s name from my mortgage?

All of these are possible, but it can be difficult without the help of a trusted and knowledgeable Mortgage Advisor in Hull. We also know that times like these can be rather difficult, so we always aim to make the process run as smooth as possible, relieving you from as much stress as we can.

Starting a new job – getting a Mortgage in Hull?

This problem seems to come up regularly, but it usually isn’t too much of a problem. Some Lenders require you to have been in work continuously for a certain period of time, but others are a little more relaxed on this rule. You can often even get a mortgage if this is your first job, though this is purely dependant on the lender. If you are due to start a new job soon then you may still be able to get a mortgage, providing that you have a signed contract and job offer letter.

Gaps in employment can be a problem with the occasional lender, though probationary periods tend to be okay.

Proving your deposit

Anti-money laundering precautions are incredibly strict these days and within good reason. All lenders will still require you to evidence where your deposit came from and will have to prove where you have earnt your money from or been gifted from. Your solicitor and the estate agent you are buying from may also ask you to provide this information.

Speaking of a deposit by way of a gift, commonly known as a gifted deposit, the person who has gifted you the money will need to confirm in writing that it is a gift and not a loan that needs to be paid back at any point in time.

Depositing a large sum of cash into your bank will be questioned by the lender and this could lead to your application being rejected if you cannot provide any proof as to where this money came from, so always be vigilant.

Our 10 Step Mortgage & Home Buying Guide for First-Time Buyers

Below we have compiled a list of the 10 steps involved in the mortgage process for First-Time Buyers in Hull, so that you can be as prepared as possible heading into your oncoming mortgage journey. 

The 10 steps to the process of home buying and obtaining a mortgage are as follows;

First Step: Get in Touch for Your Free Mortgage Consultation 

So, you’ve decided to purchase a home and take out a mortgage as a First-Time Buyer in Hull. This is no doubt going to be one of the biggest financial decisions you ever make in your life, a thought that once realised, can be a little jarring when you have no experience in this field.

It’s at this point that a dedicated mortgage broker in Hull is able to step in and help you along the process. Our goal is to take the stress away from you and work hard to ensure you come out the other side with a mortgage and your first home, happy and with a favourable deal.

When you Get in Touch with us, we’ll book you in for a free initial mortgage consultation with an experienced mortgage advisor in Hull. Here we’ll take your details and look at what you’re planning to do, before starting your process.  

Second Step: Mortgage Affordability Assessment – How are you doing Financially? 

One of the things they’ll be able to run through in your free mortgage consultation is a Mortgage Affordability Assessment. This is where your dedicated mortgage advisor will run through your monthly income and regular expenditures (what you spend your money on), to determine whether or not you are able to afford the monthly repayments of the mortgage amount you’re looking to borrow.

The reason this is so important is that before putting you forward with a lender, we need to be confident that you can afford your repayments, as to avoid the risk of arrears and potential future repossession, something the lender will desperately try to avoid.

A Mortgage Affordability Assessment is something the lender will usually check themselves, so our initial check will help save the time of the lender, ourselves and more importantly you, from an application that may be declined due to failing on affordability. 

Third Step: Obtaining a Mortgage Agreement in Principle

The next step in your consultation will be to obtain a Mortgage Agreement in Principle. If you’ve been reading up on mortgages prior to receiving First-Time Buyer Mortgage Advice in Hull, you may have seen this under a few different, but similar names. These include ‘Decision in Principle’, ‘Mortgage in Principle’, as well as the abbreviations ‘DIP’ & ‘AIP’. There is no difference between these, other than the name.

The purpose of a Mortgage Agreement in Principle is to document that you have passed a lender’s initial credit scoring system, either via a hard credit search (which leaves a credit footprint) or a soft search (which does not leave a credit footprint).

This does not guarantee you will be accepted on a mortgage but is a necessary step en route to the final goal. Another perk is that having this document will show the seller of a property that you are in fact serious, possibly creating room for price negotiations.

Your AIP will usually last anywhere between 30-90 days, and can easily be renewed once expired. Our team can usually get one of these turned around for you within 24 hours of your initial appointment.

Fourth Step: Finding the Right Solicitor 

Following your Agreement in Principle, you will need to find yourself a Conveyancing Solicitor (also known simply as a Conveyancer) to help you with the legal proceedings of the homebuying process. The term Conveyancing is used to describe the transfer of legal ownership of property between parties, no matter if you’re the buyer or seller.

Your Conveyancing Solicitor will be able to handle contracts, give any legal advice should you require it, conduct local council/authority searches, deal with Land Registry and lastly transfer the funds you have acquired in order to pay for your property. As you can imagine, this is a vital role in your process, so you must make sure you can choose carefully.

It’s also important to note that Licensed Conveyancers are property specialists who can’t deal with complicated legal issues, whereas more general Solicitors offer a full range of services so can often seem more expensive. Whilst we do not offer these services ourselves in-house, we have a list of trusted companies that your dedicated Mortgage Advisor in Hull is able to refer you out to. 

Fifth Step: Making an Offer on a Property 

Now you’ve spoken to a Mortgage Broker in Hull, passed the Mortgage Affordability Assessment, obtained an Agreement in Principle and found yourself a Conveyancing Solicitor to handle the legal side of things. You’re halfway there now and your next course of action is to make an offer on the property you wish to purchase.

As mentioned earlier, with an Agreement in Principle in tow you will be in a much better place to negotiate on price. Make sure not to go too low as to offend the seller and create tensions, but don’t be afraid to ask for a lower price. Knowing you have an AIP with you, the seller will be more likely to sell to you than someone who is willing to pay the asking price but is unprepared.

The worst-case scenario is that the seller will say no, but it’s at that point you can work out a more reasonable offer for both of you or walk away and find yourself another property. Once you’ve had an offer accepted, it’s back to your mortgage advisor and onto the final stretch of your mortgage journey. 

Sixth Step: Submit Your Documents 

Now we’re back to the mortgage side of things and an important step, in submitting the required documents. As you would expect when such a large amount of money is involved, a mortgage lender will not just lend to anyone.

They will need you to provide various documentation to prove that you are the person you claim to be, the amount you earn from your job, where you live and how well you conduct your finances. If you’re obtaining a joint mortgage, they will require this documentation from both parties involved.

The types of documents you will need to submit, include; proof of ID, proof of address, the last 3 months’ payslips and latest P60 (employed), the last 3 years’ proof of earnings and Tax Year Overviews (self-employed in Hull), proof of any income such as state benefits or maintenance, proof of deposit and the last 90 days bank statements. 

Seventh Step: We’ll Progress Your Mortgage Application 

With your mortgage agreed in principle, and your offer accepted, we can now proceed to submit your full mortgage application. With everything ready and checked by your dedicated Mortgage Advisor in Hull & their team of Mortgage Administrators, we are ready to submit an application to the lender for a mortgage.

Your advisor will send off all the collected evidential documentation for this, and then it’s just a matter of waiting for them to respond with whether or not the application has been accepted or declined. Whilst there is no given time frame, our Mortgage Administration team will be able to chase the lender for an answer on this for you. 

Eighth Step: Property Valuation / Survey 

In-between your mortgage application and being offered a mortgage, the lender will require a valuation survey of your property to be undertaken. These are usually carried out by accredited companies nominated by the lender (someone who they trust).

The purpose of such a task is to understand the true value of the property, versus what you’ve agreed to pay for it. If you’re paying above its actual market value, the lender may be less willing to accept your offer, as in the event of arrears, they will most likely be out of pocket and unable to make back the full borrowed amount. This is usually known as a ‘Down Valuation’.

There are various types available when it comes to surveys, with each varying in price. Some will just want to check the property’s worth, whereas some will also provide information on any structural concerns as well as possible repairs that may be necessary for the future. Your Mortgage Advisor in Hull will be able to help you choose the right survey for you.  

Ninth Step: Receiving Your Mortgage Offer 

Now the moment you’ve been waiting for. Once your lender has checked over your case and assessed all the evidencing documentation, they will present you with your Mortgage Offer.

It’s at this point that our team of friendly Mortgage Advisors and Administrators in Hull, that you’ve gotten to know over the course of your process, will check over the offer for you to ensure everything is correct. Once your mortgage offer has been received, it’s then down to your Conveyancing Solicitor to take your purchase through to completion. 

Tenth Step: Completing The Process 

Congratulations, you’ve now officially gone from First-Time Buyer in Hull to a First-Time Homeowner in Hull. With any lingering stress now on the backburner, we hope you’re happy and ready to begin your new life, in your new home.

All you need to do is go get the keys and move in! We hope you enjoyed speaking with our team and received a fast & friendly Mortgage Advice service in Hull. If you have chosen a fixed-rate mortgage, at the end of your term, we will be in touch to help out once again with your Remortgage! 

Hullmoneyman.com & Hullmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited registered in England, registered number 6789312 and registered office 10 Consort Court, Hull, HU9 1PU.

© 2021 Hullmoneyman

Hullmoneyman, 410 Wincolmlee, Hull, HU2 0QL.

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