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A mortgage in principle (MIP) is a useful tool for homebuyers, giving an indication of how much a lender may be willing to lend before making a full application. It can help you understand your budget and show sellers that you’re a serious buyer. However, a mortgage in principle doesn’t last forever, and if it expires, you may need to reapply.
If you’re planning to buy a property, it’s important to know how long a mortgage in principle lasts and what to do if it runs out.
In this guide, we’ll explain the typical validity period, factors that can affect it, and when you might need to renew your MIP when looking for a home in Hull.
A mortgage in principle (MIP) is a statement from a lender indicating how much they may be willing to lend you, based on an initial financial assessment.
It’s not a formal mortgage offer, but it can be useful when viewing properties, as sellers and estate agents often take buyers with an MIP more seriously.
Having this early approval can make your house-hunting process more efficient and give you a clearer idea of your budget before making an offer. If you’re applying for a first time buyer mortgage in Hull, an MIP can also give you confidence in what you can afford before beginning your search.
Most mortgage in principles last between 60 and 90 days, depending on the mortgage lender.
This timeframe gives you enough opportunity to search for a property and make an offer, but if you don’t find the right home within this period, you may need to apply for a new one.
The good news is that reapplying is usually straightforward, provided your financial situation remains stable. Simply reach out to our mortgage advisors and we can renew your mortgage in principle within 24 hours.
A mortgage in principle is based on your financial circumstances at the time of application, including income, outgoings, and credit history.
Since these factors can change over time, lenders set an expiry date to ensure the information remains current.
If your financial situation changes, such as a new job, increased debt or missed payments, you may need to go through another affordability assessment when renewing your MIP.
If your mortgage in principle expires before you’ve secured a property, you’ll need to apply for a new one. Lenders may carry out updated affordability checks, which means any financial changes since your last application could impact your borrowing potential. This could include changes to your income, credit score, or financial commitments.
If your MIP has expired and you’re actively looking for a property, it’s important to renew it as soon as possible to avoid delays when making an offer. As a mortgage broker in Hull, we can renew your mortgage in principle within 24 hours, ensuring you stay prepared and in a strong position to proceed with your home purchase.
Some lenders allow you to extend your mortgage in principle without a full reapplication, while others require you to submit a new request.
If your MIP is close to expiring and you haven’t yet found a property, it’s worth checking with your lender about renewal options.
We can help renew mortgage in principles within 24 hours, ensuring you stay ready to proceed with your home purchase without delays.
No, a mortgage in principle is not a guarantee that you’ll be approved for a full mortgage. It’s an initial indication of how much a lender may be willing to lend, but the final decision depends on a full affordability assessment.
This includes an in-depth review of your income, outgoings, and credit history, as well as a valuation of the property you intend to buy.
If there have been any financial changes since your MIP was issued, it could affect your mortgage approval.
Whether a mortgage in principle affects your credit score depends on the type of check performed by the lender.
Some lenders carry out a “soft” credit check, which won’t impact your score, while others may conduct a “hard” search, which could leave a temporary mark on your credit file.
It’s best to obtain a mortgage in principle before you start viewing properties, as it helps you understand your budget and reassures sellers that you’re a serious buyer. This applies whether you’re purchasing your first home or moving home in Hull, as an MIP provides clarity on what lenders may be willing to offer.
However, because MIPs typically last 60 to 90 days, you should only apply when you’re ready to actively search for a home.
If your MIP expires before you secure a property, renewing it promptly will help you stay prepared when the right home comes along.
A mortgage broker in Hull like us can guide you through the mortgage in principle process, helping you find the right lender based on your financial situation.
We will assess your affordability, recommend lenders with flexible criteria, and ensure your application is as strong as possible.
We also have access to a wide range of lenders, some of whom may not be available directly to all borrowers.
If your mortgage in principle expires, we can help renew it within 24 hours, keeping your home-buying journey on track.
Overpaying on your mortgage by making a lump sum payment can be a great way to reduce your loan balance and potentially save on interest.
Whether you’re looking to become mortgage-free sooner or lower your monthly repayments, it’s important to understand how lump sum payments work and if any restrictions apply.
In this guide, we’ll explain how lump sum payments affect your mortgage and what to consider before making one.
Making a lump sum payment on your mortgage allows you to reduce the outstanding balance, which can lower the total interest you pay over the mortgage term.
Most lenders allow overpayments, either as a one-off payment or as regular overpayments alongside your usual monthly instalments.
However, the way this affects your mortgage depends on your lender’s terms. Some will reduce your monthly payments, while others may shorten the length of your mortgage instead.
If you’re considering this option, we always recommend speaking to an expert who can help you understand the best approach based on your circumstances.
Paying a lump sum off your mortgage can provide several financial benefits.
The biggest advantage is reducing the amount of interest you pay over time, as interest is typically calculated on the remaining loan balance. It can also shorten your mortgage term, helping you become mortgage-free sooner.
Some homeowners use lump sum payments to reduce their monthly repayments, freeing up income for other expenses.
If you’re unsure whether making an overpayment is the best choice for you, get in touch with our team, our mortgage advisors in Hull can assess your situation and help you explore your options.
Some lenders impose early repayment charges (ERCs) if you pay off a significant portion of your mortgage early, particularly if you’re on a fixed-rate deal.
These fees can vary, with some lenders allowing overpayments of up to 10% of the remaining balance per year without penalties.
Before making a lump sum payment, it’s essential to check your mortgage terms or speak with a mortgage broker in Hull like us, who can help you understand any potential costs involved.
Early repayment charges (ERCs) are usually outlined in your mortgage agreement, but if you’re unsure, you can check with your lender or review your mortgage offer document.
These charges typically apply to fixed-rate mortgages and can vary depending on how much you overpay.
If you exceed your lender’s overpayment limit, you may incur early repayment charges, which could offset some of the financial benefits of overpaying.
The exact penalty will depend on your lender’s terms and the amount you overpay.
To avoid unnecessary fees, it’s important to review your mortgage agreement or speak with a advisor, who can help you determine how much you can safely overpay without penalties.
Most mortgage lenders allow some form of overpayment, but the rules and limits vary.
Fixed-rate mortgages often have restrictions, while tracker and standard variable rate mortgages may offer more flexibility.
Some lenders allow unlimited overpayments, while others cap them annually.
If you’re unsure whether your lender permits lump sum payments, our team can help you check your mortgage terms and explore whether overpaying is the right choice for you.
Yes, most lenders require you to notify them before making a lump sum payment. This ensures the payment is processed correctly and applied in the way that best suits your mortgage.
Some lenders may also have specific processes or forms to complete before accepting an overpayment.
If you’re unsure on how to overpay your mortgage in Hull, speak with our team and we can check your lender’s policy and guide you through the process.
If you’re planning to purchase a property in Hull with a 10% deposit, you’ll find plenty of options available.
These mortgages, often referred to as 90% loan-to-value (LTV) mortgages, are ideal for buyers who can’t save a larger deposit but want to secure a home sooner.
Understanding the requirements, processes, and benefits of a 10% deposit mortgage can help you make an informed decision.
A 10% deposit means you’ll contribute 10% of the property’s purchase price upfront, while a lender provides the remaining 90%.
For example, if the property costs £150,000, you would need to save £15,000, and the lender would cover the remaining £135,000.
This type of mortgage is commonly chosen by first time buyers in Hull or home movers who have limited savings but a stable income.
Lenders evaluate several factors before approving a 90% LTV mortgage.
Your credit score is one of the most important considerations, as it reflects your borrowing history and ability to manage debt.
A higher credit score typically increases your chances of approval and secures better interest rates.
Affordability assessments are also crucial. Lenders will examine your income, outgoings, and financial commitments to ensure you can comfortably manage the mortgage repayments.
Having a stable employment history and providing detailed evidence of your earnings can strengthen your application.
Additionally, the type of property you wish to purchase can influence the lender’s decision.
Properties that are non-standard in construction, such as high-rise flats or homes with unique features, may require a more specialised mortgage product.
Standard properties are generally more straightforward to finance.
Several mortgage options are accessible for buyers with a 10% deposit.
Fixed-rate mortgages are a popular choice, offering predictable repayments over a set term, such as two or five years, this stability is ideal for budgeting and planning.
Tracker mortgages, on the other hand, follow the Bank of England base rate, meaning your monthly payments could go up or down depending on market conditions.
Flexible mortgages provide additional features like payment holidays or overpayment options, giving borrowers more control over their finances.
To improve your chances of approval, it’s wise to ensure your financial profile is as strong as possible.
Reviewing your credit file for inaccuracies and addressing any issues beforehand can make a significant difference.
If your deposit exceeds 10%, even slightly, you may unlock more competitive interest rates and deals.
Saving a higher deposit isn’t always feasible, but demonstrating strong financial management through regular savings and maintaining low levels of debt can reassure lenders.
If you’re unsure about how to proceed, a mortgage broker in Hull like ourselves can help you navigate the process, and identify suitable lenders and products tailored to your circumstances.
A mortgage broker in Hull with experience in the property market can offer invaluable guidance.
We can access a wider range of lenders and products, including those not directly available to the public.
Our mortgage advisors in Hull often know which lenders are most likely to approve applications for 90% LTV mortgages and can help secure the best possible deal.
By working with a broker, you can save time, avoid unnecessary rejections, and streamline the entire process.
From securing an agreement in principle to completing your mortgage application, a broker provides support every step of the way.
Yes, a 10% deposit is enough for many buyers in Hull to secure a mortgage.
While some lenders may prefer a higher deposit for certain property types or buyer profiles, most accept 10% as a sufficient starting point.
With the right preparation and guidance, you can find a mortgage deal that suits your needs and budget.
If you’re ready to take the next step, reach out to a trusted mortgage advisor in Hull to explore your options and make your homeownership journey as smooth as possible.
As an accountant, managing finances is your day-to-day, but when it comes to securing a mortgage, things can get a bit more challenging.
Lenders are aware that accountants often have unique financial situations, which is why there are mortgage products designed to cater specifically to your needs.
Your deep understanding of finances gives you a strong starting point in the mortgage process.
Lenders often have a positive outlook on accountants due to their consistent income and careful financial planning.
Whether your earnings come from a combination of salary, dividends, or retained profits, how your income is structured will help determine which mortgage options are the right fit for you in Hull.
Given the particular nature of an accountant’s finances, speaking to a mortgage broker in Hull can be a smart move.
These brokers have experience working with clients like you and know how to find mortgage deals that align with your income and goals.
They ensure that your financial profile is presented clearly to lenders, increasing your chances of securing the right mortgage.
If you’re self-employed in Hull, getting a mortgage might feel like a bigger hurdle, especially if your income fluctuates.
There are mortgage products that are tailored specifically for self-employed professionals. Typically, lenders will ask for a couple of years’ worth of accounts and tax returns to verify your income stability.
A mortgage advisor in Hull can help you navigate these requirements and connect you to mortgage products that aren’t always available through mainstream banks.
For accountants buying their first home in Hull, there are specific mortgage options that offer lower deposits and attractive interest rates.
These first-time buyer products are designed to make the process of getting on the property ladder more manageable.
On the other hand, if you already have a mortgage, looking into remortgages in Hull can help you save money by lowering your payments or allowing you to access equity.
A mortgage broker in Hull can help you in finding remortgage deals that suit your financial situation and plans.
Before you apply for a mortgage, it’s important to ensure your financial documents are up to date and accurately reflect your earnings.
Lenders will want to see a consistent income history, so having well-organised accounts is vital. If your income varies, it helps to be ready with an explanation that makes sense to potential lenders.
Maintaining a strong credit score and staying on top of existing debts will further improve your chances of being approved for a favourable mortgage deal.
A specialist mortgage advisor in Hull can offer guidance on how to present your application in the best possible light, making sure you secure the right mortgage terms.
Whether you’re a first-time buyer in Hull or considering remortgaging, finding a mortgage broker in Hull who understands your financial situation can help you take the next step towards the right mortgage solution for you.
When you secure a mortgage offer, it’s important to understand how long it remains valid.
Mortgage offers typically come with an expiration date, giving you a set period to complete your home purchase or remortgage before the offer expires. The timeframe can vary depending on the lender and the type of mortgage you’re applying for.
Being aware of these details ensures you can plan your next steps effectively without risking the loss of your offer.
When you receive a mortgage offer in Hull, it’s important to know how long it will remain valid.
Typically, mortgage offers last between three to six months, depending on the lender. This timeframe gives you a window to finalise the purchase of your property.
If you’re buying a new build, some lenders might extend this period slightly to accommodate construction delays.
The exact duration will vary, so it’s always a good idea to double-check with your lender to ensure you’re aware of any specific deadlines.
Mortgage offers come with expiry dates because lenders need to protect themselves from market fluctuations.
Over time, interest rates, property values, and your personal financial circumstances can change. By setting an expiry date, lenders can ensure that the offer reflects current conditions.
If your mortgage offer in Hull expires before you’ve completed the property purchase, you may need to reapply.
Some lenders may allow you to extend the offer, provided your financial situation hasn’t changed, but this isn’t guaranteed.
If the offer expires, you might have to resubmit documents and undergo another affordability check, which can take time. Always aim to complete your purchase before the offer’s expiry to avoid potential complications.
Buy to let mortgage offers in Hull generally follow similar timeframes to standard residential mortgages, often lasting between three and six months. However, there are some differences.
For instance, lenders may have additional requirements for buy to let properties, such as minimum rental income projections or the property’s condition. This could impact how quickly you need to act on the offer.
If you are looking for a buy to let mortgage in Hull, you should also be aware of market conditions and tenant demand, as any delays in securing tenants could affect your ability to complete the mortgage within the offer period.
When remortgaging in Hull, the validity of your offer typically ranges from three to six months, similar to a standard mortgage.
Remortgaging in Hull can be a great way to take advantage of better interest rates or to release equity from your property. Given the potential fluctuations in interest rates, it’s essential to stay within the offer period to lock in favourable terms.
If the offer is approaching its expiry date, speak to your lender in Hull about whether an extension is possible to avoid the need to restart the application process. Alternatively, if you are dealing with a mortgage broker in Hull like us, we can contact them on your behalf.
If your mortgage offer in Hull is about to expire and you haven’t completed your purchase, many lenders will consider an extension.
To extend the offer, you will typically need to confirm that your financial circumstances haven’t changed. Some lenders might ask for updated documents, such as recent payslips or bank statements.
It’s important to request the extension well before the offer expires, giving your lender enough time to review your request. Keep in mind that some lenders may charge an additional fee for extending a mortgage offer.
To avoid the stress of a mortgage offer expiring in Hull, it’s important to stay organised throughout the home-buying process.
Ensure you complete any required paperwork promptly and work closely with your solicitor to keep the purchase on track.
Keep in touch with your lender to ensure there are no delays in the mortgage approval process. If there are any unexpected hold-ups, such as issues with the property or legal matters, make sure to address them quickly to avoid running into problems with the mortgage offer’s expiry date.
If you are in need of mortgage advice in Hull, make sure to reach out to our team of advisors. We would love to offer a helping hand!
Buying a property in joint names can be an excellent option for many in Hull, especially if you’re considering pooling resources with a partner, friend, or family member. Whether you are looking to purchase your first home or an investment property, understanding the dynamics of joint ownership is essential.
We provide tailored mortgage advice in Hull to guide you through this process and ensure you make informed decisions. Our team is ready to help you explore all your options, from choosing the right mortgage type to understanding the legal implications of joint ownership.
Up to four people can co-own a property jointly. This arrangement is ideal for those who want to share the financial responsibilities of homeownership, such as the mortgage payments and maintenance costs.
Co-owning a property allows you to combine your financial resources, which could help you qualify for a larger mortgage or reduce the burden of individual contributions. If you’re considering this option, it’s wise to speak with a specialist mortgage advisor in Hull to assess your eligibility and explore the best deals available.
When buying a property jointly, you will need to decide between two forms of ownership:
Joint tenancy allows each person own the whole property jointly with the others. If one owner passes away, their share automatically passes to the surviving co-owners. This arrangement is commonly chosen by married couples or those in long-term relationships.
On the other hand, allows each co-owner to own a specific share of the property. This could be an equal division or a split that reflects each person’s financial contribution. Under this setup, if one owner passes away, their share does not automatically go to the other owners but can be passed on according to their will. This type of ownership is often preferred by friends or family members buying together, as it provides more flexibility.
Understanding the differences between these ownership types is key, and our team can provide specialist mortgage advice in Hull to help you choose the right option for your situation.
If you and your co-owner decide to separate, the mortgage remains a shared responsibility. Both parties are still liable for the full mortgage repayments, regardless of who continues to live in the property. It’s important to remember that failing to keep up with payments can affect both parties’ credit ratings.
To navigate this potentially challenging situation, it’s advisable to consult with a mortgage advisor in Hull. They can guide you on steps to take, such as refinancing or negotiating with your lender, to ensure the most favourable outcome for both parties.
Removing an ex-partner from a joint mortgage can be a complex process. The mortgage lender must agree to this change, which typically involves reassessing the remaining party’s financial situation to ensure they can afford the mortgage payments on their own. This process might require you to remortgage the property solely in your name, or transfer the mortgage to a new lender that offers more favourable terms.
Our advisors in Hull can help you understand your options and guide you through the remortgaging process. We provide expert advice tailored to your circumstances to help make this transition as smooth as possible.
If you wish to remove your name from a joint mortgage, the process will be similar to removing an ex-partner. The other co-owner(s) would need to prove to the lender that they can handle the mortgage repayments independently. Alternatively, the property could be sold, and the mortgage settled with the proceeds.
It’s crucial to seek specialist mortgage advice in Hull if you find yourself in this situation. Our team can help assess your options, negotiate with your lender, and ensure that the removal of your name does not negatively impact your credit score or financial future.
Technically, there are no exclusive teacher mortgages in Hull. The mortgage options available to teachers are generally the same as those available to other professionals.
However, being a teacher in Hull can be advantageous. Due to the stability and high skill level associated with teaching roles, mortgage lenders often view teachers more favourably, potentially offering better interest rates.
All types of teachers in Hull can apply for a mortgage, including:
There are no specific restrictions preventing any type of teacher from applying for a mortgage, although some may find the process more challenging depending on their employment situation. Each mortgage product has its own criteria, and not all applicants will qualify for every option.
Newly qualified teachers in Hull may face some challenges when applying for a mortgage, often due to having a 12-month initial contract.
Lenders might view this as a potential risk, as they prefer applicants with stable, long-term employment. However, many specialist lenders are willing to consider NQTs, especially with the assistance of a mortgage broker in Hull who can connect them with the right lender.
Supply teachers in Hull may face additional challenges due to the potential fluctuation in their salaries and the perceived instability of their employment.
However, if supply teachers can demonstrate consistent income and job stability, they can still access mortgage opportunities similar to other applicants. Working with a mortgage broker in Hull can help find lenders more open to such employment conditions.
Yes, a gifted deposit from a family member can make a mortgage application more attractive to lenders by reducing the loan amount.
Additionally, a guarantor mortgage in Hull, where a family member’s income supports the application without being on the property title, can also be beneficial. These options can help overcome some of the challenges teachers might face in securing a mortgage.
While there are no specific schemes exclusively for teachers, many general home buying schemes are available in Hull. These include the Right to Buy Scheme and Shared Ownership in Hull.
These schemes can help first time buyers in Hull and other prospective homeowners, including teachers, get onto the property ladder. Speaking with a mortgage advisor in Hull can help determine eligibility for these schemes.
Yes, retired teachers or those nearing retirement can still access various mortgage options. Mortgages for over 65s in Hull and over 70s in Hull are increasingly accessible, with lenders offering products like lifetime mortgages, retirement interest-only mortgages, and standard mortgages in Hull.
It’s advisable to speak with a later life mortgage specialist in Hull to ensure the chosen product aligns with personal financial goals and retirement plans.
To understand the features and risks, ask for a personalised illustration. Equity Release in Hull may come in the form of a lifetime mortgage or home reversion plan.
A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means tested benefits. The loan plus accrued interest will repayable upon death or moving into long term care.
A home reversion plan involves selling all or part of your home to a plan provider in exchange for a tax-free lump sum.
Unsecured credit is a topic that isn’t to be taken lightly. Our team frequently speak with first time buyers in Hull who are in search of tailored mortgage guidance due to a variety of financial missteps, such as defaulting on payments, having a low credit score, CCJ’s, and defaults, amongst others.
Too many missed payments on things like a phone bills could result in a default on your credit file. This could potentially hinder future mortgage applications as it indicates unreliability in making timely payments.
An optimistic perspective is that missed payments or defaults doesn’t mean you can’t get a mortgage. Despite the necessity for expert mortgage advice in Hull to successfully navigate the mortgage process, there exist accessible options should you find yourself in this situation.
If you have a lower deposit, your chances of being declined are likely. If you have a suitably sized deposit though, even if you have bad credit, a mortgage may still be an option for you.
A lender specialising in mortgages will be interested in the specifics of your default. Your chances of securing a mortgage are higher if the default was due to circumstances beyond your control and if a considerable amount of time has passed since its occurrence.
Past mistakes do not always have to define you. If the issue was genuinely accidental and unanticipated, the mortgage lender may exhibit some leniency during your application process. Our team is also on hand to assist with more intricate mortgage scenarios.
We have put together a list of frequently asked questions and answers on the top of bad credit mortgages.
If you are in need of a mortgage broker in Hull, don’t hesitate to reach out. Our mortgage advisors in Hull have extensive experience in handling complex mortgage situations and may likely have encountered a situation similar to yours.
No matter the nature or extent of your past credit problems, an up-to-date copy of your credit report is essential. You can typically access this for free online. It is recommended that you obtain your credit report before applying for a mortgage, especially if there are concerns about your credit history. Multiple unsuccessful credit searches can exacerbate your credit rating and potentially block your mortgage application entirely.
This largely depends on your unique financial situation. Many of our customers find their credit scores requires help to understand why it might pose a problem. Credit scores may seem arbitrary to some customers, especially those who have a healthy deposit and regular income. However, due to the inherent risks, a mortgage lender may still be wary of granting a mortgage.
The lender must be sure of your ability to maintain regular mortgage payments without risking debt. Despite these challenges, there are still options for mortgages with bad credit, potentially with higher rates. The most proactive step is to consult with an experienced mortgage broker in Hull.
IIn many situations, you may find yourself struggling to keep afloat financially, for reasons that you cannot control. This can be a temporary setback; however, a missed payment can leave a lasting imprint on your credit record.
Regardless of the nature of your credit trouble, you may experience difficulties when trying to remortgage in Hull, buy your first home or move house. This often boils down to the lender’s risk perception and their confidence in your ability to avoid future defaults.
As providers of trusted, specialist mortgage advice in Hull, we have had lots of experience in helping customers who previously were tied to a mortgage and have since found themselves with a poor credit history.
Customers may encounter many types of credit issues that can complicate the mortgage process. Some of these include but are not limited to:
Whilst none of these are particularly great circumstances to find yourself in, it’s not necessarily the end of the road for you. You may have a longer, more challenging process, with higher mortgage rates, but there are specialist mortgage lenders in Hull who may be able to help.
To increase your chances of mortgage success and to get access to better rates, you should focus on improving your credit score. We have a useful article that we have written on how to improve your credit score in Hull article, which will hopefully help you to obtain a mortgage in the future.
If you require expert, straightforward mortgage advice related to bad credit mortgages, book your free mortgage appointment online, and our team of mortgage advisors in Hull will see how they can assist. We have over two decades of mortgage knowledge and experience to develop a reliable plan for enhancing your credit score ahead of your mortgage process.
An Individual Voluntary Agreement (IVA) is a legally binding arrangement between an individual in debt and the creditor to whom the debt is owed.
The primary goal of an IVA is to establish a structured framework for monthly repayments, typically spanning a five-year period, with the aim of making the debt more manageable.
An Insolvency Practitioner acts as an advocate, engaging with creditors to ensure the consistent and timely fulfilment of payment commitments.
While obtaining a mortgage with an Individual Voluntary Arrangement (IVA) can pose challenges, it is not an insurmountable task. If you find yourself in this situation, it is advisable to speak with a mortgage broker in Hull to explore your available options.
Affordability is the key consideration in an IVA. Creditors need assurance that you can sustain your repayments while also having sufficient disposable income to cover essential living expenses, including housing.
If you’ve entered into an IVA, it is likely that your credit history has been significantly impacted. Securing a mortgage with an IVA in Hull might present challenges, as lenders tend to be cautious about extending credit to individuals deemed high-risk.
Additionally, the lender will assess whether you have ample disposable income after meeting your IVA obligations to cover mortgage payments and essential living costs.
Post-IVA, it’s important to assess your financial situation before jumping into the mortgage process. Rebuilding your credit score, saving for a deposit, and planning your move are prudent steps.
Affordability should be a primary focus when considering homeownership, ensuring you have the financial means to sustain a mortgage.
Our experienced mortgage advisors in Hull are ready to help, evaluating your mortgage affordability and recommending the most suitable options based on your unique circumstances. To start this process, schedule a free mortgage appointment online or reach out to our team via phone.
Saving for a deposit is regarded as one of the hardest parts of buying a property, especially for first time buyers.
House prices are not the same as they used to be 20+ years ago, they have been rising and rising in recent years. Naturally, rising house prices increase the minimum deposit amount that you need to put down for a mortgage.
So how much deposit do you need to put down for a mortgage?
Typically, lenders will require you to put down a minimum of a 5% deposit. A 5% deposit just means 5% of the value of the property. For example, if you are looking at buying a £200,000 property, you would need to provide a £10,000 deposit.
As a mortgage broker in Hull, we will assess your income and affordability to determine whether you can put down a mortgage with a 5% deposit or whether you would need to provide a higher amount.
Depending on how long you have had bad credit, the chances of you being able to put down a 5% deposit on a mortgage can change.
Most applicants with bad credit will have to put down a higher deposit than just 5% of the property price. Some lender’s will require bad credit applicants to put down a deposit of around 10%-15%.
There are a variety of schemes available, with each being completely different to one another, here are some of the most popular:
In 2021, the government introduced the Mortgage Guarantee Scheme to help first time buyers take out a 95% mortgage (mortgage with a 5% deposit). The end date for this scheme is 30 June 2025.
If you are a first time buyer in Hull and are looking to buy a property, perhaps utilising this scheme could boost your chances of getting a mortgage.
Even if this scheme has ended, it still may be possible to get a mortgage with a 5% deposit, it is all down to your credit and affordability.
The Shared Ownership allows individuals to part-buy and part-rent a property, providing an affordable pathway to homeownership.
This scheme enables aspiring homeowners to purchase a share of the property, typically between 25% and 75%, and pay rent on the remaining portion.
Over time, individuals have the option to increase their share through a process known as “staircasing,” gradually progressing towards full ownership.
The Lifetime ISA is not a scheme as such, but a government-led initiative that helps first time buyers save for their deposit for their first property.
The Lifetime ISA is a tax-free savings account for those aged between 18 and 40 looking to buy their first home.
Savers can contribute up to £4,000 annually, and the government adds a 25% bonus (£1,000 maximum) to assist with property purchases. This incentive provides a valuable boost for individuals saving towards their first home, making the journey to homeownership more affordable.
To learn more about these schemes, head over to OwnYourHome.gov.uk to find a complete list.
Alternatively, give our mortgage advisors in Hull a call to discuss your options. In some cases, you may not require the use of a scheme to get a mortgage with a 5% deposit, it may already be financially feasible.
If you are a first time buyer in Hull, book your free mortgage appointment and start your journey online today!
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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: 9 Gallows Lane, Beverley, United Kingdom HU17 7FJ.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk.
© Hullmoneyman 2025.
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