Yes, you can get a mortgage in Hull if you are age 40 or older, subject to passing a lender’s credit scoring and affordability calculations. In most cases, the process can be quite straightforward too.
The process can work differently depending on what you are looking to achieve with your mortgage. Lenders will also look at a variety of factors before accepting your mortgage application.
If you are over 40 and are looking for your first mortgage, lenders will be cautious of your mortgage term. They will look at how old you will be at the end of your mortgage term, in this case, you will be around 65-70 years old based on a typical 25-30 year term.
How much you can borrow for a mortgage is determined by your income. Lenders will look at the realistic amount that you can borrow based on your age and salary. When assessing your income, lenders will generally expect your wage to be higher than those who are looking for their first home in their 20s. Having a higher income may allow you to borrow more.
As you become older, statistically you are more susceptible to illness. From a lender’s perspective, this creates more risk when lending and will be factored in when calculating your maximum age for borrowing.
The main factors that lenders will look at when determining whether you can get a mortgage over 40 are age, income/expenditure and your retirement age. Some lenders will allow the mortgage term to extend over your retirement age if you are able to continue working. This will vary from lender to lender and also on your job type.
So, if you are a first time buyer in Hull and are over 40, you need to be aware of some of the factors that lenders will assess before accepting your mortgage application.
Loan to value is the ratio of what you are borrowing for a mortgage to the value of the property you are taking out the mortgage on. For example, if you provide a 5% deposit on a property, you are taking out a 95% loan to value mortgage.
The lower your loan to value is, you may have access to more competitive deals. If you can reduce this loan to value percentage by providing a higher deposit then your term and payments may reduce.
Your deposit could come from a variety of sources, such as your savings, gifted deposit, or in some cases through inheritance. As a mortgage broker in Hull, we have seen parents release equity from their homes in order to gift a deposit to their children.
If you have an existing mortgage on your current property, and you are looking to move home in Hull, you should see whether your mortgage is portable to your new property. Alternatively, if this is not possible or is a more expensive option, you could look at a new mortgage.
If you are looking at moving home in Hull to a bigger property, this generally means that you would be looking to borrow more. Lenders will reassess your affordability when deciding whether or not you can get a mortgage on your new home.
Furthermore, there may be other contributing factors that could affect your affordability assessment when looking for a new mortgage, such as credit score, existing credit commitments, number of dependents or salary increases. Your mortgage advisor in Hull will run through these factors with you prior to submitting your mortgage application.
When it comes to downsizing and moving home in Hull, the amount of equity that you have built up in your current property will be a big contributing factor to your deposit. We have seen that some applicants choose to use all of this equity for their deposit, whereas, others may only use a proportion. As mentioned above, sometimes the remaining equity is gifted to children/family members for their mortgage deposit.
Depending on your equity and the level of downsizing, in some cases, you may able to purchase the property outright and not require a mortgage. As a mortgage broker in Hull, we have seen that in most instances, customers at the age of 40 have not built up enough equity within their current home to purchase their new property outright. This is because they will have likely only held their mortgage for 15-20 years.
Buy to let mortgages usually require at least a 25% deposit, but can sometimes stretch up to 40%. Depending on the lender, some will look at your own personal income and take this into account. Whilst others will look solely at the potential rental income that the property could generate.
If you have any questions about getting a mortgage when you are over 40, make sure to get in touch with our team. We would love to answer your questions and help when and where we can.
The Shared Ownership scheme is a mortgage scheme introduced by the government all the way back during the 80s. It was brought in under the Housing Act 1980.
The scheme is designed to help homebuyers get onto the property ladder. It is only available to permanent UK residents who are either first time buyers or moving home in Hull. If you are struggling to save up your mortgage deposit as a home mover or first time buyer in Hull, perhaps the Shared Ownership scheme could be the solution you need.
The Shared Ownership Scheme allows you to purchase part of a property, split with the housing association. The portion/percentage of the property that you are able to buy is usually between 10%-75%, where the housing association owns the remainder.
The way that this works is that you take out a mortgage on this percentage and then pay rent on the remaining amount. You will have mortgage payments and rent payments to account for each month. Your rent will be lower than if you had to pay rent on 100% of the property.
Furthermore, your annual, combined household income has to be less than £80,000 (less than £90,000 if you’re in London) and the home you are purchasing will almost always be a leasehold property. Leasehold means you will be purchasing the home for a set amount of time.
For anyone who has previously heard of or used the Shared Ownership Scheme, you may have been aware that the minimum percentage that you used to have to take out was 25%, however, now it has decreased to 10%.
This was a huge help to those wanting to utilise the Shared Ownership Scheme, but just couldn’t quite afford it. In turn, the lower the percentage of the property that you own, the higher your rental payments may be.
There have also been significant changes in the fees associated with a Shared Ownership mortgage. Landlords are now responsible for maintenance and repair costs for the first 10 years of ownership.
If you have taken out a Shared Ownership mortgage in Hull before April 2021, you may not benefit from these new changes as they applied to properties bought under the scheme following their introduction.
Shared Ownership is a Help to Buy Scheme, and just like all other Help to Buy Schemes, you must qualify for them before you can access them. Most schemes require you to be a first time buyer in Hull, whereas others are a little more flexible and can be accessed by more types of buyers.
As a mortgage broker in Hull, we would recommend speaking with an expert to work out whether or not you are eligible for the Shared Ownership Scheme. As mentioned, there are a variety of factors that go into deciding whether someone can access the scheme or not, therefore, it is always best to check before applying.
One of our mortgage advisors in Hull can look at your affordability and personal and financial situation to work out whether the Shared Ownership route is for you. We are open and honest with our customers, meaning that if you are better suited to another Help to Buy Scheme or the traditional mortgage route, we will make you aware that this is the case.
Our team will make you aware of the costs involved with the Shared Ownership Scheme and whether it is a viable option for you and your circumstances.
With any type of mortgage, there will be pros and cons. This works for all Help to Buy Schemes also.
When taking out a Shared Ownership mortgage, the deposit total that you have to put down on the property is determined by the percentage of the property that you are purchasing. For example, if you are purchasing 50% of a property worth £200,000 and you need to provide a 5% deposit, you will need to put down £5,000 (5% of a £100,000 mortgage).
Sometimes, you may get the option to purchase your Shared Ownership property in the future. If you get this option further down the line, it may be within your best interests to take a mortgage out on the remainder of the property. Not all building associations will allow this. When taking out your Shared Ownership mortgage, it may state in your contracts whether this is an option in the future.
One con is that you would be paying more rent if you take out a mortgage on a lower share of the property. For example, if you take out a 10% share of the property, you will pay more towards your rent than you would if you were to take out a 50% share.
If you are able to purchase more of the property and increase your share passed 75%, unfortunately, you will have to pay Stamp Duty on the entire value of the property, though sometimes this land tax won’t apply to a first time purchase.
Since you do not outright own 100% of the property, you only own a percentage, you must obtain permission before you are able to make any structural changes to the property. This can take away some of your freedom, unfortunately; which you would have if you owned your own home.
Like most homeowners, there may be a time when you decide to part ways from your current property and look at moving home in Hull. In most situations, this process would be simple, however, with a Shared Ownership mortgage, it is slightly different.
Unfortunately, in almost every case, you will need to own 100% of the property to sell your Shared Ownership property. This is because the Shared Ownership property is still partially owned by the housing association.
You must also know that the housing association will usually have ‘first refusal’ rights, for the first 21 years after you have bought the home. This means they are, by law, able to make an offer to buy the property themselves, before you put it on the open market.
The Shared Ownership Scheme is a great option for first time buyers and home movers struggling to save up for a deposit and to afford the usual mortgage costs. This is mainly due to the fact that you can put down a lower deposit on the property.
Shared Ownership is only available on certain types of property, which can complicate the process in some cases. We will make sure that you are fully prepared and know the ins and outs of Shared Ownership in Hull before purchasing a property.
You can easily contact our mortgage advisors in Hull by booking a free Shared Ownership mortgage appointment online. We work 7 days a week so that you can book an appointment for a date and time that best suits you. We will be more than happy to help!
You can learn more about the Shared Ownership Mortgage Scheme by visiting the government OwnYourHome website.
A CCJ (County Court Judgement) is a court order that is issued if you are unable to make your monthly mortgage payments. If you receive a CCJ, you will have a 30-day window to pay it off, resulting in a “satisfied CCJ.” If you pay within this time frame, the CCJ may be removed from your credit file. However, if you are unable to pay, the CCJ will remain on your record for six years, known as an “unsatisfied CCJ”.
Having a CCJ on your record can have a negative impact on your credit file and reduce your chances of being approved for a mortgage. If you have a CCJ and are seeking a mortgage, we would advise speaking with one of our specialist mortgage advisors in Hull to find out what options you have. We will be open and honest with you at all times; we only want the best for you.
Depending on your specific circumstances, it may or may not be possible to get a mortgage with a CCJ. With the help of a specialist mortgage broker in Hull like ourselves, you may be able to access the specialist deals that are only available to those with a CCJ. We have a large panel of lenders that we can access, with a small minority of those holding deals for applicants with CCJs. You will need a very large deposit to access these deals, however.
Remember that if you are able to pay off your CCJ within the 30-day deadline, it can be removed from your credit report, which increases your chances of being approved for a mortgage. Generally also, the longer the time elapsed from the issue date, the more likely you are to get a mortgage. For example, if you applied for a mortgage three years after being issued a CCJ, rather than one year after being issued with one, you should be more likely to be accepted.
When a mortgage lender sees a CCJ on your credit file, they will want to understand the reason for it. If you received a CCJ after failing to meet your payments for a financial commitment and have fallen into arrears, your mortgage lender may not believe that you have the ability to commit to another. When you apply for a mortgage with a CCJ, your mortgage advisor in Hull will consider several factors, such as:
While it can be difficult, it is possible to have a CCJ removed from your credit file with sufficient evidence.
If you believe that the CCJ was issued in error, you have the option to request the court to reopen your case. However, this process comes with additional costs and may not be the best use of your resources compared to simply paying off the CCJ within the 30-day window.
Additionally, failing to attend your hearing can result in your case being rejected and incur additional court costs.
If your appeal is successful and the CCJ is removed from your credit file, it will be beneficial for your chances of obtaining a mortgage. On the other hand, there is also the possibility that your appeal may be rejected, resulting in lost funds and the need to still pay off the CCJ. You must carefully weigh the risks involved.
To appeal a CCJ, you must fill out an N244 form and submit it to the court. If the court agrees that the CCJ was wrongly imposed and reopens your case, they may remove the CCJ from your credit file.
There are steps you can take to improve your credit score after receiving a CCJ, and speaking with a specialist mortgage broker in Hull like us, can be extremely beneficial in achieving this goal.
If you have a CCJ, it is important to keep up to date with your monthly repayment commitments. This includes anything from credit cards to paying off your CCJ. Even if you were able to pay off the CCJ within the 30-day period, it’s important to be vigilant with your finances to prevent similar issues in the future. Multiple CCJs can significantly harm your credit score and even make it even more difficult to obtain a mortgage.
If you have a CCJ on your record and are interested in exploring mortgage options, schedule a free appointment with one of our specialist mortgage advisors in Hull today. They will review your case and provide personalised advice tailored to your circumstances.
This is something that we find ourselves being asked regularly by both homeowners and potential home buyers in Hull. The answer to this question depends on entirely on what sort of market we are in and how it is performing.
In order to stay more up-to-date with the mortgage market, including hot topics such as mortgage interest rates and government schemes, take a look at “Mortgage Market Update” playlist on YouTube. We regularly post these types of videos to ensure that all of our customers are “in-the-know”.
Mortgage rates are the level of interest that a mortgage lender will be charging you on your mortgage balance. This will determine the cost of your monthly mortgage payments, as you are paying, generally, a combination of interest and capital. Lower mortgage rates typically means lower payments.
There are a lot of different factors that can affect what your mortgage rates will be. One that you can absolutely have control over, is any personal factors that will determine if you qualify for a mortgage.
This will include things like your credit score or deposit. The lower the risk, generally, the better the rates. An open & honest mortgage broker in Hull will be able to take a look at your situation, helping you to find the best mortgage deal that is available to you, for what it is you are hoping to achieve.
Our dedicated mortgage advisors in Hull have the ability to search through 1000s of deals, including many different specialist mortgage deals, for customers who perhaps have more complex cases.
What it all comes down to really, at the end of the day, is the current market position, the state of the economy and the base rate of the Bank of England. If the economy is performing well, there will typically be a higher demand for both goods and services, which includes properties.
Higher demand will also usually mean that the Bank of England base rate will go up too, which sees mortgage rates following. The mortgage rates set by mortgage lenders are usually set at a percentage above what the Bank of England base rate is.
Whilst a stronger economy could mean that home buyers can afford more, mortgage lenders aren’t made of money. Because of this, when the base rate is up, the cost of borrowing for mortgage lenders will also rise, which also brings up mortgage rates to cover their borrowing costs.
When the economy isn’t necessarily doing so well, this works conversely to how we mentioned above, as consumers will not be able to afford as much. Because of this, you will typically see interest rates coming down as a why to encourage people on the property ladder with potentially lower payments.
As discussed above, one of the biggest factors for changes in mortgage rates, is changes to the Bank of England base rate. As a general rule, mortgage lenders will set their interest rates at a percentage above this. This means that depending on the base rate, this could fluctuate.
Something else that can have an effect on the Bank of England base rate, however, is any changes to inflation. The government ideally have a target in mind that they need to keep at, in order for the cost of living to remain affordable. Unfortunately, this has been known to go over the target.
In situation such as these, you may see the cost of living increase, though unlike the example of a strong economy meaning people may be able to afford more, this can be quite the negative and seeing people unable to afford as much as they would have done.
This of course isn’t exactly the best news for those with ending fixed-rates, as it means they may struggle to afford price increases that are set to take effect once their initial period has ended. In cases like this, a mortgage advisor in Hull can be incredibly beneficial.
The Bank of England base rate tends to have fluctuations anyway, although usually only very slightly. Tracker mortgages are a type of mortgage that will be following along with this base rate, sitting at a percentage above and moving as and when the base rate moves.
When the base rate is a little low, this can work out quite well, as your monthly mortgage payments will be lower. Unfortunately, if mortgage rates were to go up, you would also be paying more on your monthly mortgage payments, which can change fairly quickly.
An option that could be better for this, which is actually one of the most popular mortgage types you could choose from, is a fixed-rate mortgage. These allow you to lock-in to the interest rate at the time, keeping your payments the same for a set period.
These time periods tend to be between 2-5 years, though they don’t necessarily have to be. An example would be, if your interest rate was 4% and you were fixed-in for 5 years, you might see rates rise to 6% during that time, yet still be paying 4% until that 5 years is up, saving you money.
In times where the economy is a little uncertain, a fixed-rate can provide certainty and stability, giving homeowners one less thing to stress about at home. The downside is that if rates have indeed gone up during this time, when your fixed-period ends, you will move onto a higher rate anyway.
This sort of thing occurring can actually lead some homeowners to remortgage quite early, even being willing to fork out for an early repayment charge, in order to fix in for a longer period and protect themselves from future interest rate increases that could be on the horizon.
This really boils down to predictions, how do you see the interest rates changing, as well as your own personal situation changing. As said before, personal factors also can impact mortgage rates, so having a higher deposit will potentially open you up to much lower rates anyway.
If you find that you are in that situation, taking out a fixed-rate mortgage could be beneficial, to stick to those interest rates you have given yourself access to. So long as the economy performs well also, fixing in for 2, 5, maybe even 10 years could see you reaping the benefits of those rates.
Of course this entirely depends on circumstance, and 10 years is a long time to wait. During that time period, you could even see interest rates drop lower than you first fixed in for, meaning you are paying more per month than you could’ve been, if you’d only fixed in for say 2 years.
A trusted and experienced mortgage broker in Hull will be able to best help you prepare for your mortgage future, as well as help you make any decisions based on your plans. They will use their knowledge to help you every step of the way.
Interest rates can change without warning really, depending on the current state of the economy, the market and also, the Bank of England base rate. Match it up with your personal circumstances, and there can be much uncertainty.
By booking yourself in for free remortgage advice in Hull towards the end of your fixed-period, or first time buyer mortgage advice in Hull if this is a new experience for you, you can benefit from experts in the field helping you to find the best mortgage deal, with the most favourable mortgage rates.
Anyone in Hull who has been renting from a local council or housing association may find they are eligible to purchase the home they are renting, via the government Right to Buy Scheme.
Typically, you receive a discounted purchase price (often acceptable as a form of deposit) which allows this. To qualify for the Right to Buy Hull, you must have been a public sector tenant for at least three years, with the longer you have rented impacting the discount you receive.
Every applicant has different circumstances, and what could be a straightforward process for some can be a different story for others. You may find that although you are eligible, you have bad credit to your name. This can severely impact your ability to obtain a mortgage.
Luckily, for those who want to know if you can obtain a Right to Buy mortgage in Hull with bad credit, the answer is yes. Of course, personal circumstances and the discretion of mortgage lenders are always a factor, but with the help of a mortgage broker in Hull, you could still have options to obtain a right to buy mortgage.
What is defined as bad credit depends on the mortgage lender you are dealing with. Some lenders may deem it to be things like missed credit card payments, phone contract payments or loan installments. On the other hand, there are some who may not classify them as such and look past them.
However, if you have gone through withdrawal, bankruptcy or CCJ tied to your name, you will be classified as having bad credit. In all these cases, bad credit will lead to a decrease in your credit score, with this impacting your chances of obtaining a Right to Buy Mortgage in Hull.
Having a low credit score can impact your situation negatively. Lower credit scores can make getting a mortgage challenging. Even though we have a large panel of lenders, many being specialist in bad credit mortgages, you will still be considered a higher risk.
To a mortgage lender, there is every chance you cannot repay your mortgage payments each month, leading to eventual repossession and a loss of profit to the mortgage lender. Because of this, applicants who are accepted tend to face much higher costs.
To simplify any bad credit can have a negative impact on any mortgage not just a Right to Buy mortgage. Bad credit affects everything from first time buyer mortgages to remortgages and everything in between.
As mentioned above, bankruptcy can be a big issue. Typically, if at least 3-6 years have passed since you were discharged from your directorship, you will have a better chance of finding a specialist mortgage lender willing to let you borrow.
Debt Management Plans and Individual Voluntary Arrangements (DMPs and IVAs) can also have an impact on this. This is a fairly stricter circumstance than some of the others. If there have been at least 3 years, you have a much higher chance of success, though if not, you are limited.
Being subject to repossessions can also make getting a Right to Buy mortgage difficult. There are some mortgage lenders who are willing to let you borrow under these circumstances if it has been a few years since, although we tend to find the vast majority will probably reject your application.
Of course, some of the more commonly encountered instances include things like CCJs (County Court Judgements), defaults, arrears, missed or late payments and just generally having a low credit score. As you can imagine, the latter is the least serious of the ones mentioned.
Overdue payments or missed payments can vary and a mortgage lender’s perception may also vary. Arrears, defaults and CCJs are much more serious, with mortgage lenders wanting to see that at least three years have passed.
In either of the latter cases, a specialist mortgage lender will also review the exact circumstances surrounding the bad credit, as there could be options depending on whether you have satisfied payments and are a few years removed from the situation.
With all bad credit mortgage circumstances, the better chance you will have will depend on the further you are from your bad credit problems. Trying to repair your financial situation also looks good in the eyes of a mortgage lender.
Things like cleared CCJs, a tidy credit file, could help improve your chances. Of course, this still does not guarantee anything and obtaining a Right to Buy mortgage with bad credit will still be challenging, but it means you could have options.
The best way to see if you have a chance at obtaining a Right to Buy mortgage with bad credit is to speak with a dedicated mortgage broker in Hull. Many mortgage brokers, like us here at Hullmoneyman, have access to specialist mortgage lenders on the panel that offer complex case deals.
Whilst the process may be a challenge and you could face higher interest rates, with a mortgage broker in Hull finding you the most suitable deal, based on your individual circumstances, is part of our job.
Those applying to buy their local authority home using a Right to Buy mortgage, the amount of discount that will be applied can often be accepted as a deposit on the property by the mortgage lender. This is because you already purchasing at below its market value.
Your circumstances may be different, however, if you are purchasing and taking out a Right to Buy mortgage with bad credit in Hull. The reason is that you are at a higher risk to the mortgage lender because of your bad credit.
If your discount is equivalent to a smaller deposit and you have bad credit, a mortgage lender may require you to deposit your own funds to increase that percentage. In other cases, if this discount is equivalent to a deposit of 10-20%, they may be more lenient.
Ultimately, it depends on how long you’ve lived there, your personal situation, such as your bad credit and the mortgage lender. With all mortgage instances, the higher deposit you can put down, the better the mortgage deals you can access.
This applies to a Right to Buy Mortgage Hull as well, as whether you have bad credit or not, putting down more deposit can open you up to much better mortgage deals, lowering either your monthly payments or interest rates.
The term ‘gazumping’ may be one you have heard before, however, have no idea what it’s about. The word ‘Gazumping’ is used when the seller of the property you are interested in accepts another offer from someone else prior to the sale of the property to you is completed.
Derived from the Yiddish word ‘Gezump’, in which someone swindles or cheats someone out of something and was used back in the 1920s, ‘Gazumping’ has been related to house buying and was a common term in the 1970-80s.
Through our experience as a Mortgage Broker in Hull, we have had the opportunity to speak to customers regarding Gazumping. The most common topic surrounding gazumping is if it’s illegal. Unfortunately, Gazumping is legal despite how immoral it is.
This is a question that is in many people’s minds when they are going through the home buying process across England and Wales. Thoughts of why and how this practice can be legal despite its lack of morality are a common occurrence.
Gazumping is deemed a legal act because the deals you make between you and the seller aren’t legally binding until written contracts are exchanged by lawyers. Therefore, the seller has no obligation to hold onto the property. All the essentials are agreed upon verbally up until your deal is completed.
The concept of being gazumped can be very daunting amongst lots of home buyers especially with First Time Buyers in Hull, regardless of whether there is a chance of it happening. It comes with the possibility of losing your dream home. It’s an event that no one wants to happen, in particular, for those who are a part of a property chain.
Another factor that can affect home buyers being gazumped is the idea of them losing money over the event. Non-refundable expenses that come with the home buying process like property surveys, conveyancing fees and mortgage arrangements fees.
As mentioned, the agreement between both parties to buy or sell a property is not a legally binding one. It only becomes that when the lawyers undergo the exchanging of contracts.
It’s not as simple as it sounds. The process can come with long delays that are usually several weeks from having your offer accepted to the exchange of contract.
Usually, this certain time period can be where other prospective First Time Buyers in Hull may interfere in the process between you and the seller by making a more favourable offer on the property. This can happen through them speaking to an estate agent or by going directly to the seller.
The more favourable deal may have been a higher purchase price, a faster sale or a particular buyer who has no pressure from a property chain. Gazumping covers all these circumstances that the seller would prefer in the midst of your mortgage process.
One factor that could impact the chances of being Gazumped by a seller is whether the market is a buyers or sellers market.
For example, if the market is currently a sellers market, this means that the market is hot. This will involve a high demand, fewer properties, people wanting to buy and bidding wars between buyers that could make the prices rise. In this circumstance, Gazumping is more likely to take place because could come to the seller at a much higher price.
On the flip side, if the market is currently a buyers market, this will come with more houses than buyers, a seller may not be receiving as many offers. This means you have less chance of someone Gazumping you and means you have much more room to negotiate on price.
To keep up to date with the current state of the market, check out our Mortgage Market Updates video on Moneyman TV presented by the Moneyman himself, Malcolm Davidson.
One of the reasons why the delay may happen between the offer getting accepted and the exchange of contract between two parties could be due to needing a property survey carried out. This involves your conveyance undergoing the appropriate searches and you will receive your mortgage.
Below are some helpful ways to help increase your chance of advancing further to mortgage success and avoid being Gazumped.
There are plenty more mortgage tips out there that you can benefit from during your mortgage journey and increase your chances of getting a mortgage.
It’s best to start by asking them to remove the property from the open market, this can be stated in the mortgage offer. By doing this, you have made the property less visible to people, therefore, reducing any more offers being made which will then reduce your chances of being Gazumped.
This is more of a negotiating point so the seller doesn’t have to agree with this because there is no obligation. Despite this, we do find that sellers these days respect this request from a buyer. Even more so if they haven’t been receiving as many offers already.
Putting in place a lock-in agreement, where both sides put down a deposit towards their binding agreement can be another helpful thing to do. If any one party chose to withdraw or change the deal, the other party would take their deposit.
You may find that there are legal fees in this circumstance which can make it a costly decision. However, you may feel that having this set up is worth the money and provide security during your mortgage process.
Another option is to look at the potential insurance products that could protect you against the prospect of Gazumping. This will work by the policy being paid out in the event of being Gazumped which, in turn, will reduce the risk of losing money from the fees you have potentially paid in the process.
Even though Gazumping is never guaranteed to be prevented, there are a plethora of ways you can protect yourself as a buyer from being Gazumped. With our open and honest Mortgage Advice in Hull, we may be able to provide the help and support you need.
Here at Hullmoneyman, we strive in providing a fast & friendly service with the goal of getting you through the mortgage process. This is beneficial if you are a buyer looking for a speedier experience through your mortgage journey.
Furthermore, our expert team are able to get a mortgage agreement in principle sorted for you usually within 24 hours of your free mortgage appointment.
Having this AIP with you can demonstrate to the seller that you are in a serious position to proceed and give them the confidence in your getting a mortgage. This can make you stand out from other buyers who may provide a better deal but cannot confirm if they are eligible for a mortgage.
Book your free mortgage appointment today and see how our helpful team can help on your mortgage journey as a first time buyer in Hull.
The start of your mortgage journey involves finding a property and obtaining a mortgage, all this can be a daunting experience for many homebuyers, especially if they are first time buyers in Hull going through the process by themselves. As a Mortgage Broker in Hull, we have spoken to a number of homebuyers in Hull who have decided to purchase a property either with a friend or partner if they could.
A part of the process will involve the advisor conducting an affordability assessment in which they would ask about your current financial situation. This gives us an idea of the maximum mortgage amount you can borrow from a lender. If there are two applicants, lenders will factor in both applicants’ income. Thanks to two sources of income being on the mortgage, it can increase the chance of getting a mortgage offer.
Should you default, your co-borrower could also be responsible for the full mortgage, and vice versa. Following is a list of useful tips we encourage you to take into account when moving into a property with a friend or partner.
All this comes down to which lender you’re with, nevertheless, you will generally be able to co-borrow with up to four people jointly. As much as having more people who are involved can work well with having their application accepted, it is best to keep in mind that this does increase the likelihood of someone pulling out prior to the term ending. For this reason, you must be aware of the people you choose to buy a property with.
There is the opportunity to increase your mortgage later if you want to, but all parties must agree to this. With this in mind, it is best to plan in advance about your future and your plans for ownership of the property.
Joint tenancy is an alternative that is most popular with civil partnerships or married couples. Joint tenants are two halves of one whole, one borrower. Therefore, in the tragic event where one half of the party passes away, the property will be automatically granted to the other half.
Under the circumstances, where you are looking to remortgage or sell the property, both of you would have reached an agreement before continuing with the mortgage. A ‘Tenancy in Common’ can be an option if you and your co-borrower are friends or family. This means that you both own your part of the property.
You don’t need to split your shares equally either. Therefore, if you find that one of you is on a higher income, for example, one of you will own more of the property than the other. One benefit of being a ‘Tenant in Common’ is that you can have the freedom to act independently so it’s your choice if you want to sell or give away your share.
A mortgage lender will emphasize that all borrowers are jointly and severally liable. Due to this, you will be liable to keep up the payments if one person chooses not to pay their share of the mortgage.
If you’re looking to buy a home with your other, you never actually expect that you are going to split up before the term ends. It is a large financial commitment to make, let alone with someone else, and can be a complicated process if you want to make a change.
This can be even more difficult if children are involved because it is likely that one parent will stay with them whilst you are the one who will move out and find their own mortgage. Irrespective of whether you are staying or going, both parties will need the aid of Mortgage Advice in Hull to find a suitable solution.
Even if the person has been paying the mortgage with the input of their ex or not, this doesn’t change the fact that it was applied for in a joint name. This means that in the event of arrears, they will still chase both parties. Before removing your ex-partner from a mortgage, the lender will need to be sure you will be able to maintain mortgage payments by reassessing your income before they proceed.
It can be common for people to apply jointly for the second time with a friend, family member, or new partner, if they are, will find it difficult to afford a mortgage on their own. In this circumstance, it can be beneficial to obtain Mortgage Advice in Hull.
As mentioned, in the circumstance where you may end up divorcing or separating from your partner while on a mortgage, you are both still responsible for the property and its mortgage payments.
Firstly, you would need to get in touch with your lender if you were the one who wanted your name removed from your mortgage. You can’t just make an agreement between the two of you.
In the situation where you are looking to get a mortgage of your own, the lender would take into consideration the property you are currently tied to. Therefore, it’s important to make sure that you are removed from the previous mortgage.
Circumstances like these will require you to look at getting Mortgage Advice in Hull.
You will find that some lenders will be more generous than other when it comes to how much they will be willing to lend you. This is something your allocated Mortgage Advisor in Hull will factor this in when recommending the best mortgage lender for you to approach.
Have you ever had one of those moments where you’re booking a flight, only to find that you booked it on the wrong date or airport? You’d expect these things to be fairly straightforward, but sometimes they end up taking too long, being far more complicated than necessary, and in some circumstances costing more than you’d initially planned for.
These sorts of scenarios can cause you unnecessary stress along the way. Something that was meant to be fun, has now had that fun taken out of it because of one tiny mistake. In these cases, you have the option of going the route of using a travel agent to help you with bookings, reducing the stress of the process.
These same stresses and worries appear in the world of mortgages and much like the travel agent, this is where a Mortgage Broker in Hull like ourselves will come in handy, and take the weight off your shoulders.
You may have recently seen a fixed rate advertised, only to find that its rate doesn’t match your situation. As with all advertising, it’s there to draw you in and make you want to see more. Generally speaking, these deals are aimed at customers with lots of equity and perfect credit ratings.
There will almost always be a more attractive deal out there, but that doesn’t mean that’s the most suitable deal for you personally or financially.
You must also bear in mind that when going with this specific lender, you only have access to their products and their advisors. Also, be wary of real estate agents and their price comparison sites. You can read more about the sales tactics of estate agents in our article.
Here at Hullmoneyman, a customers best interests are always at the heart of what we do. We are able to offer a wide range of products from different, sometimes more niche lenders, depending on what it is you’re looking to achieve. As well as this, our loyal team of Mortgage Advisors in Hull will never try and force anything on you that you don’t want, we just want to help you along your journey.
Book your free mortgage appointment to speak with one of our Mortgage Advisors in Hull today. They’ll explore your options and recommend you the most suitable mortgage deal to match your current situation.
Also, features such as a fixed rate of interest, offset options, or variable rates for flexibility, may be recommended for you. It’s our job to know these criteria inside and out, which is why we will work hard to make sure you’re on the most suitable path for your situation.
If we’ve done our job right, and we have a good track record of doing just that (see our Customer Reviews). You’ll walk away with a deal that allows you to borrow the amount you’d like, with reasonable interest rates, saving you time and money.
We have helped many first time buyers in Hull, to those wanting to know there Remortgage Options in Hull and even those who are looking for self employed mortgage advice in Hull too. If you would like to take advantage of our free initial mortgage consultation and speak with a Mortgage Advisor in Hull, please get in touch and we’ll see how we can help.
Once you’ve saved up enough for a housing deposit, the next step is to prepare for your mortgage application so you are in the best position before starting your mortgage process. If you are a first time buyer in Hull, you will find this guide beneficial to help you understand the progress of your mortgage application.
During the preparation process, make sure to obtain an up-to-date credit report. Having an up-to-date credit report is essential for your mortgage application; ideally, you should try and get yours arranged before contacting a mortgage broker in Hull. Your mortgage advisor in Hull will review your report before passing it on to a suitable lender.
Another thing that you should look to obtain is an agreement in principle. These are handy, especially when making an offer on a property!
If you want a fully credit-checked agreement in principle within 24 hours of your application, you should get in touch with us. As an experienced mortgage broker in Hull, we aim to try and turn around an agreement in principle within 24 hours after your free initial appointment.
Make sure to provide a photo ID to provide you are who you say you are. An alternative can be a Driving license or passport. You can’t use a Driving License for ID though if you are also using it for proof of address. If you are a non-UK national working over here on a Visa, you’ll need to produce that too.
You will be required to prove where you live. This is usually in the form of a utility bill or bank statement within the last 3 months.
Your bank statements will reflect your income and regular expenditures. Lenders don’t like excessive gambling transactions on your account and they will also not be happy if you keep going over your overdraft limit or have direct debits bounced.
Regardless of whether lenders ask for your bank statements or not, they want to be confident that you take your finances seriously. The bank statements which you produce should consist of your salary going in and your bills going out.
A vital part of the mortgage application is evidencing your deposit for Anti-Money Laundering purposes. Make sure not to move finances around your accounts too much as this will make it a lot more difficult and may delay the process.
Lenders like to see that you are saving your money responsibly, but that doesn’t exempt you from having to account for any large recent deposits in your accounts. If you have been gifted a deposit, then there will need to be written confirmation stating it’s a non-refundable gift.
If you’re in employment then you’ll be asked for the last 3 months’ pay slips, though some lenders will also ask for your most recent P60. Lenders will take into account regular overtime, commission, shift allowance, and bonuses. Additionally, extra earnings may also be considered with some lenders such as part-time jobs or self-employment.
We have dealt with many applicants who are self employed in Hull. If you are a self-employed applicant then you may mean you will need to acquire your Accounts’ help to request your last two- or three-years’ proof of earnings from the Revenue. If you submit your own accounts then feel free to get in touch and we will be happy to advise you on how to go about downloading from the Government Gateway.
By working out an estimate of your expected outgoings after you move house means you can gain an idea of how much disposable income will be available to you to pay your mortgage after such things as regular expenditures, council tax, and utility bills have been paid out from your account. To help you with this, we are happy to send you our version of a Budget Planner to get you started.
As seen, there are many steps you must take to prepare fully for your mortgage application deeming it not an easy feat but it doesn’t mean you should worry. If you approach the mortgage application with due timing and an organized matter along with a Mortgage Broker in Hull, you will be in safe hands.
It’s incredibly important that you make sure you plan your mortgage journey ahead of time. There are various steps that should be taken before jumping into making offers and full mortgage application, in order to put you ahead of other first time buyers in Hull.
One of these that should arguably be top of your list, is getting a mortgage agreement in principle, prior to looking at properties. Sometimes your plans might not go to, well, plan. Unfortunate circumstances can often crop up, leaving even the most meticulous planners with a challenging process.
Some of these include poor credit, banks not lending enough, or even couples separating mid-process. The latter is not something people can always prepare for and it may lead to you needing to take out a mortgage as a sole applicant, with very little time to re-plan.
As said, you can often find your mortgage process being met with many different hurdles, the mortgage process can throw many obstacles which is why planning is important. Throughout our time in the mortgage world, we have across many of these.
Below are some common problems we have found customers encounter towards the end:
By preparing yourself in plenty of time for all eventualities, you can potentially avoid as many of these as you possibly can, ensuring for a much smoother service. Of course some instances are unavoidable, which is where a mortgage broker in Hull can often lend a helping hand.
Saving up for a deposit can be quite difficult for some, especially when you are trying to make sure you achieve all of your mortgage goals. This is even more so the case for first time buyers in Hull who are currently renting, trying to make that next step.
To get onto the property ladder, you’ll typically need a 5% deposit at least, though this could be higher. The issue is, whilst this seems small, that can actually be a large amount of money, depending on property price. You generally won’t know the exact amount, until you find a property.
Sometimes when you are struggling to make up this percentage, you may be able to get financial support from your family or friends, via a gifted deposit in Hull. Additionally, you might also be able to make use of one of the various schemes in Hull.
These are usually popular with many first time buyers in Hull as a way to get them onto the property ladder. There could be a mortgage scheme out there that is perfect for you.
Credit scores are a large contributing factor to your mortgage application. If your credit score is in a poor state, you’ll have less of a chance of actually getting a mortgage, maybe even being unable to get one at all, depending on how low it is.
Obviously, this is all dependant on why your score is that low in the first place. Having poor credit because of something like a CCJ or bankruptcy will lower your chances greatly, with the length of time that has since passed being a factor in this also.
Check My File is a fantastic website we would recommend you use if you are wanting insight into your credit score. By doing this, you will be able to obtain a copy of your credit report which our team will be able to look at completely free of charge.
Try it FREE for 30 days, then £14.99 a month – cancel online anytime.
When it comes to your mortgage application, it’s important that look at how well you manage your finances. This is because mortgage lenders will carry out a thorough analysis of these, checking your bank statement, income and outgoings.
Gambling transactions is something that they will be on the lookout for. Large and frequent outgoings can make you look unreliable with your money and drastically impact your chances of getting a mortgage. We recommend holding back for a couple of months, to paint yourself in the best light.
If you find yourself being fortunately being given a gifted deposit for your mortgage, we also suggest that the gifter keeps the money in their account, so that you are not having large bank transfers taking place, which would otherwise look suspicious to a mortgage lender.
If you are self employed in Hull, you may find that your process could be a little more challenging for you, than an employed applicant. This is because you will need to provide much more evidence than you otherwise could be faced with.
The evidence you will need to provide as a self employed applicant include your tax year overview and the last 2 years of accounts, to name just a few. More evidence may be required, though this depends on the mortgage lender you are going with.
Through your mortgage journey, you may come across a range of mortgage hurdles that could limit the quickness of your process or even stop it altogether. Being prepared for these ahead of time can put you in the best position for if these occur.
A mortgage broker in Hull like us will work hard to help you overcome these hurdles. We are here to support you 7 days a week, from early until late. Book online and benefit from expert mortgage advice in Hull, today.
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