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Throughout your mortgage process, you’ll undergo affordability checks, credit searches, and income verification with your mortgage lender. Successfully navigating these steps will lead to obtaining an agreement in principle (AIP), an important document.
Not only does an AIP indicate the lender’s willingness, in principle, to grant you the funds, but it also enhances your negotiating position when discussing property prices. Sellers recognise your seriousness as a buyer, ready to proceed with the transaction.
The impact of an agreement in principle on your credit score depends on the type of credit search conducted by the mortgage lender – hard searches and soft searches being the main types.
Presently, mortgage lenders tend to opt for soft credit searches more frequently than hard searches. Soft searches, while less detailed, still provide a good indication of potential acceptance. Importantly, they usually do not leave a credit footprint, meaning your credit score remains unaffected.
In contrast, hard credit searches are more comprehensive and can affect your credit score by leaving a footprint visible to anyone examining your credit file. While individuals with a good credit score may be less affected, those with a lower score could encounter challenges.
Multiple hard searches, especially with a poor credit score, may deter mortgage lenders as it might suggest an attempt to secure multiple credits simultaneously.
Although obtaining a mortgage is not guaranteed, having an agreement in principle is advantageous. When you submit all required documents, an underwriter reviews them to make a final decision.
The details within agreements in principle often include critical information that home buyers, especially first time buyers in Hull, might overlook. Seeking mortgage advice from an open and honest mortgage broker in Hull can be valuable, ensuring you fully understand the terms.
Typically, agreements in principle may need renewal after 30-90 days. As an experienced mortgage broker in Hull, we recommend obtaining one early to avoid potential setbacks.
Renewing your AIP promptly is important, as it ensures you’re prepared and won’t miss out on a dream property, potentially losing it to another buyer with a valid AIP. Remember, the process is straightforward, and obtaining another AIP if needed is simple.
Whether you’re a first time buyer or considering moving home in Hull, our dedicated mortgage advice in Hull services offer a free initial appointment with expert mortgage advisors. Book online to explore how we can help you in your mortgage journey.
Choosing the right mortgage can be a daunting task, especially with the variety of options available. As a first time buyer in Hull, it’s essential to understand the different types of mortgages to make an informed decision that suits your financial situation and future goals.
Here, we break down the key types of mortgages to help you navigate your choices.
A fixed rate mortgage in Hull can offer stability with a consistent interest rate over a set period, usually between 2 to 5 years. This ensures that your monthly repayments remain unchanged, regardless of changes to the Bank of England base rate, allowing you to budget effectively.
Fixed-rate mortgages are ideal for those who prefer predictability in their mortgage repayments. At the end of your fixed term, you will need to seek remortgage advice in Hull. If you don’t, you will be moved to your lender’s standard variable rate (SVR), which is typically much more expensive.
Tracker mortgages are linked to the Bank of England base rate. This means your interest rate will fluctuate in line with any changes to the base rate. While this can lead to lower payments when rates are low, it also means payments can increase if the base rate rises. Tracker mortgages can be suitable if you are comfortable with potential changes in your monthly repayments.
These mortgages offer a discount off the lender’s standard variable rate (SVR) for a set period. While initial rates can be lower, they can also vary, leading to fluctuating monthly repayments. This option can be beneficial if you anticipate stable or falling interest rates.
Offset mortgages link your savings and current accounts to your mortgage. The balances in these accounts reduce the amount of interest charged on your mortgage. For example, if you have £10,000 in savings and a £150,000 mortgage, you only pay interest on £140,000. This can significantly reduce the interest you pay over the mortgage term and help you pay off your mortgage faster.
With an interest-only mortgage in Hull, your monthly payments cover only the interest on the loan. The principal amount remains unchanged unless you make additional repayments. These mortgages require a robust repayment plan for the principal at the end of the mortgage term and are typically suited to those with investments or other means to repay the capital.
When you buy a property with another person, such as a partner, friend, or family member, you’ll take out a joint mortgage. Both parties will be named on the mortgage, making them jointly responsible for making payments.
Our team of mortgage advisors in Hull are here to help you find the right mortgage tailored to your needs. Whether you’re a first-time buyer, looking to remortgage, or exploring buy to let options, we provide expert advice and tailored support throughout your mortgage journey. Contact us today to book a free mortgage appointment and start your journey towards securing a suitable mortgage deal.
This article discusses the UK November 2020 lockdown and its impact on the mortgage market at the time of publication. Please note that economic conditions change, and this information may no longer be accurate.
In light of the recent announcement from the British Prime Minister Boris Johnson, we want some share the positive news that came with the new lockdown rules.
Similar to the November 2020 lockdown, the property market is still open for business. You can take up house viewings, continue your purchase and still put your home up for sale.
Here is a mortgage market update from Malcolm the ‘moneyman’ himself:
During the last lockdown in November 2020, there was a huge increase in mortgage enquiries. The boom in home purchase approvals reached a massive 105,000 in November, which is the highest since August 2007.
In October 2020, purchase approvals were at 98,300. This increase of 6,700 is impressive considering we were in the middle of a national lockdown.
In terms of the property market, the January 2021 lockdown is very similar to the previous November 2020 lockdown. You can still begin your mortgage journey in 2021. It’s up to you how you start this, it could be by yourself or through a Mortgage Broker in Hull.
January is a popular time of year for First Time Buyers, Home Movers, landlords etc., and as time progresses we are seeing more mortgage products becoming available again, allowing for more mortgage options to those investing in the property market.
Yes, 90% mortgages are still available and lenders are getting more and more confident in the market. They know that the demand is there and that people will only start coming back when they know that they can get a deal with a 5-10% deposit.
The property market is still open and so are we! We have Mortgage Advisors in Hull available 7 days a week throughout the year to help you through your mortgage journey.
Don’t worry, our free mortgage consultation still applies to every customer in every mortgage situation. Start your 2021 mortgage journey with Hullmoneyman today.
The mortgage journey is rewarding. It has its fair share of both highs and lows, but in the end, you will end up with one of the following: either your dream property to settle down in and make that next step, to go further up the ladder or an investment purchase to provide some extra income.
Whichever path you took, there will ultimately come a time when your mortgage term is coming to an end. You could sell up and upsize/downsize into a new property. Perhaps you are looking to sell your portfolio to the tenant or another buyer and look at other avenues. The most popular choice though is to go down the remortgage route.
A remortgage is where you use the proceeds from a new mortgage to pay off a pre-existing mortgage. There are several different options available when taking out a remortgage, ranging from minor to major.
Having worked in the industry for over 20 years our resident “Moneyman” Malcolm Davidson (host of our YouTube channel MoneymanTV), thought it would be best to compile a quick guide to all the options you could have when remortgaging.
Your initial mortgage deal will normally last 2-5 years and feature low fixed rates or perhaps discounted rates. In some instances, you may even be placed on a tracker mortgage, which follows the Bank of England’s base rate.
When your term ends you will likely be moved along to the lender’s Standard Variable. In sum, an SVR is a mortgage with an interest rate that can potentially change based on what the lender wishes to charge. This does not follow the Bank of England’s base rate like a tracker mortgage.
As such, these are usually the most costly paths to take, leaving many to look at remortgaging for better rates, which we hope will save you money on your monthly repayments.
After occupying your home and living there for a few years or circumstances have changed, you might decide that you need the extra room or larger living space, a new kitchen, or a home office. Instead of moving into a larger house, many try to release their equity with a remortgage to cover the costs of these.
Though it may seem like a daunting concept having to obtain planning permission and fund/manage your own project, some say it’s a lot less stressful and more rewarding than the process of finding a new home, selling your current one, and moving your belongings.
Long term, creating more space and maintaining the property can increase the value of your property, handy if you ever decide to sell up or rent out.
In certain cases, some choose to remortgage in Hull for a more suitable mortgage term, by decreasing the length or switching to a more flexible product. A reduction in the length does mean you will not be paying back your mortgage for as long.
Therefore, you are not completely tied down forever, but as such your monthly repayments will be a lot higher. The longer your term, the lower the payments will be over time.
A few opt for a more flexible mortgage term when they remortgage, benefits under this option can prove endearing to some homeowners. You may get the chance to overpay, resulting in being able to pay your mortgage off as quickly as you would like.
In addition to being able to carry the same mortgage and rates over to another property, should you decide to move at any point in future.
Although a flexible mortgage sounds close to perfect, they usually come in the form of a tracker mortgage, which as previously stated follows the Bank of England base rate. That means one month your payments could fluctuate based on interest.
Everyone has a level of equity in their property. The equity is worked out with the difference between what is still owed on the mortgage and the current value of the property. As touched upon at a glance, this can be used for home improvement. However, there may be other options available for you out there.
Some are using it to cover long-term care costs, supplement their income, go on holiday, pay off an interest-only mortgage or go on a shopping spree.
For Buy to Let Hull landlords, they will use a remortgage to release equity as a means of covering their deposit for buying a future property to add to their portfolio.
If you are a homeowner aged 55+ and have a property valued at a minimum of £70,000, it may be worth your time to look at your options for Equity Release in Hull. Get in touch with an experienced later life mortgage advisor in Hull to learn more about later life lending.
On the topic of releasing equity, another big one people use it for, is to pay off any unsecured debts you may have accrued over time.
Though it may seem easy enough, debt consolidation not only bases the amount on how much you’re owed and the value of the property but also on your credit rating. This could mean you are limited in the amount you can borrow.
Additionally, to pay off your previous mortgage and your debts, you will need to borrow more than your outstanding mortgage amount. This means your monthly repayments will most likely be higher. Though not an ideal situation, at least you can rest assured that should you find yourself dealt an unfortunate hand, you do have some options out there.
Should you find yourself with a particularly damaged credit rating, you do still have options to choose from, though these will not be easy and require very specialist remortgage advice in Hull before going forward. Even then, there is no guarantee.
You should think carefully before securing other debts against your home. By adding your unsecured debts to your mortgage, which is secured on your home, you are potentially putting your home at risk if you cannot make the required repayments.
Although the total monthly cost of servicing your debt may have reduced, the total cost of repayment may still have risen as the term of your mortgage is longer than it may have taken to repay the debts originally.
If you are reaching the end of your term and are wondering what your option may be for remortgaging, it is worth your time to get in touch with an experienced and trusted mortgage broker in Hull.
Our remortgage advisors in Hull will be able to discuss your options, to create the best plan of action for you in the next step of your remortgage journey. We aim to ensure this go around is a quicker and smoother process than your first time.
Taking Mortgage Advice in Hull can be the difference between an application getting accepted and an application getting declined. An application done independently could result in errors and possibly lead you on to get declined.
A Mortgage Broker in Hull offers a service that only benefits the applicant. We’ll search through thousands of mortgage deals for you, saving your time and your money. We have specialist advisors that hold in-depth knowledge of all mortgage situations, we are here to match all for your mortgage needs.
A mortgage broker and a mortgage advisor’s job is to find you the most suitable mortgage deal tailored for your circumstances. Some say that there is no real difference between a broker and an advisor, they both offer a similar service.
Here at Hullmoneyman mortgage brokers, we have our own team of advisors that are specialised in all different areas rather than just one and are authorised and regulated by the Financial Conduct Authority.
This means that we have expert, insider knowledge of lending criteria and know exactly what sort of deals to comapre you to. With over 20 years of experience, we are still providing expert advice to clients with all types of individual situations.
Maybe you are First Time Buyer in Hull who wants to get their foot onto the property ladder? Maybe you are planning on Moving Home in Hull? That’s where we come in; our team of Mortgage Advisors in Hull can walk you through every step of the mortgage process – from initial mortgage enquiry, right until you get your keys.
Our skilful advisors will offer their support through all mortgage situations, no matter how complicated it may seem. Here are the main mortgage types that we get asked about:
If you decided to approach a Mortgage Broker in Hull, you could have a smooth and easy mortgage experience. No matter your situation, we will always try and make the process stress-free and easy going.
The process of buying a home is a huge milestone in your life, we know that things can sometimes get too much, and that’s why we want to offer a helping hand. Here are reasons to why a Mortgage Broker in Hull like us could suit you:
Our Mortgage Broker in Hull is always trying to maximise applicant’s chances of being accepted for a mortgage. We aim to get this right the first time!
Our service is available every day of the week from 8am – 10pm. We have Mortgage Advisors in Hull that are ready to take your call whenever best suits you. If you work late, this is not a problem! Give us a call as we will still be in office.
Your Mortgage Broker in Hull aims to go above and beyond for every customer, no matter the mortgage scenario at hand. Get in touch today for expert Mortgage Advice in Hull.
Open & honest Mortgage Advice in Hull by Hullmoneyman, from 8am – 10pm, seven days a week. As an experienced local Mortgage Advisor in Hull, we are proud to have the quality of service we provide to our customers.
We put our people at the heart of our business and always aim to exceed their expectations. Get in touch with your Mortgage Broker in Hull today and receive a free mortgage consultation.
As an experienced Mortgage Broker in Hull, we have worked with hundreds of local Buy to Let landlords and helped them secure competitive Buy to Let mortgage deals. Our customers who already have a current property portfolio always ask whether it’s possible to transfer ownership from your own individual name(s), into the name of your limited company.
First of all, it is important to know how a mortgage lender will approach purchases from Limited Companies. There are not a lot of lenders that will accept Ltd Company applications through anything other than an SPV (Special Purpose Vehicle) Company.
An example of this is a company set up specifically for the purpose of investing in properties like this. When registering your company, your registration will include a SIC (Standard Industrial Classification) Code that First of all, you need to be aware of how mortgage lenders approach limited company purchases. There aren’t a lot of mortgage lenders that accept limited company applications through anything other than an SPV (Special Purpose Vehicle) Company, i.e. a company set up specifically for the purpose of investing in this type of property.
When you register a company, your registration includes a SIC (Standard Industrial Classification) Code that sets out the business type(s) in which the company will participate. Mortgage lenders don’t normally accept applications from general trading companies that can trade in other areas, so you have, for example, a plumbing and heating company, you would need to set up a separate company to your Buy to Let properties, rather than simply buying them through your plumbing company.
The SIC codes typically accepted are 68100, 68201, 68209, 68320 but it can vary from lender to lender. To find out more information about SIC Codes, consult the Government website.
Purchasing a Buy to Let property under a limited company comes with both advantages and disadvantages. For example, not every mortgage lender will consider applications from an SPV, preferring to limit their lending to individuals/couples in their own personal name(s). Therefore, individuals tend to have a wider choice of lender and product than SPVs. Of those lenders that will lend to an SPV, the mortgage rates offered would typically be higher than those offered to individuals. On the plus side, in recent years, changes to the way rental income is taxed has meant that, for many people, the tax advantages generated by SPV ownership (relating to how income is taken and how that income is taxed) make up for any extra interest charges or lack of choice.
Providing expert buy to let mortgage advice in Hull, the first thing we’d always recommend when considering whether to buy your property portfolio under the auspices of an SPV is that you get advice from a specialist tax advisor. They will assess how factors, such as your other income sources and the rate of personal income tax you pay will affect your overall tax status and establish whether individual or SPV ownership is better for you.
As we mentioned before, the main factor in deciding whether to buy under an SPV is your tax position. This is complicated further when deciding whether to transfer properties you already own as an individual into company ownership. There is a slight problem though, this sort of transaction is not a simple transfer; it’s a change of legal ownership.
The limited company is a separate corporate identity, so the transaction is essentially a purchase by the SPV from you selling as an individual, so you’ll have to account for stamp duty charges, legal costs and new mortgage valuation charges. Also, you will need to remember that limited companies have running expenses and legal obligations. However, these may be offset by the potential upside of some tax-deductible costs or long-term tax benefits.
Where Landlords are looking to increase their property portfolio, it often works out that they continue to hold existing properties in their sole name(s) but purchase any new additions under the company name, thus avoiding all the on-costs of switching. With that said, no case is the same and there may be some circumstances whereas switch would be beneficial in the long run, even considering the costs of switching.
As you can tell, this is a specialist topic meaning that you should know exactly what you are doing. So if you are thinking of taking this route, you should know that our team of mortgage experts are here to help you with all of the arrangements, providing top quality Buy to Let Mortgage Advice in Hull, backed up by introductions to appropriately experienced accountants and solicitors as required.
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Hullmoneyman.com & Hullmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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Hullmoneyman.com & Hullmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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