Can I Port My Mortgage to a New Property in Hull?

How does porting a mortgage work? | MoneymanTV

Porting Mortgage Advice in Hull

Any homeowner with a mortgage to their name will notice that the vast majority of high street mortgages on the market are portable.

A portable mortgage is where you move home, from one property to another, but still, take your existing mortgage with you and avoid the need to pay a penalty charge for doing so.

These come in handy if you are currently on a fixed rate mortgage deal with low interest rates, but looking to move into a new property. Doing so will give you the possibility to avoid having to pay an Early Repayment Charge (ERC).

Are all mortgages portable? 

No, not every mortgage deal on the market is portable. Especially mortgage product from a specialist lender, as their mortgage was probably quite complex to qualify for in the first place and they won’t want you to port it.

To find out whether porting your mortgage is the right option for you, get in touch and speak to your mortgage lender, they’ll be able to give you an answer.

Should I port my mortgage?

Even if their mortgage is flexible enough to port, some homeowners may decide that option is not for them and choose not to do so.

The reason that these customers may not wish to proceed with porting their mortgage, can be down to a variety of factors. This can include situations where perhaps a mortgage lender isn’t willing to lend the extra funds, or differing interest rates in those additional funds.

It may be worth your while accepting the Early Repayment Charge (ERC) and move to a different mortgage lender altogether, if it works out cheaper to go to that new deal. 

What is a sub-account? 

This is a type of account that will be attached to your mortgage when you look to port it and the additional funds will move onto a deal that is different to your original mortgage.

Because of this, each of these will be on two different rates of interest that are applied on both the mortgage and the direct debit.

In the future, the fact that the products can overlap may become problematic, and this might need looking at down the line, in order to get them realigned. This may mean one of the sub-accounts falling onto a lenders variable rate briefly. 

Mortgage Advice in Hull for Porting Your Mortgage 

If you are looking for Moving Home Mortgage Advice in Hull or you are looking for a Buy to Let Mortgage in Hull, get in touch and speak to a mortgage expert today. We are experienced in helping many kinds of mortgage applicants in situations like this, and will do what we can to assist with all of your mortgage needs

What is Gazumping? Should Home Buyers Be Afraid Of It?

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.

Is Gazumping illegal?

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.

How does Gazumping happen?

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.

Buyers Market vs Sellers Market

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.

Market Updates | MoneymanTV

Ways to Avoid Being Gazumped

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.

  • Look for a conveyancing solicitor or surveyor early on in order to reduce the wait time.
  • Provide all the necessary information as soon as possible to quicken up your mortgage process.
  • To demonstrate to the lender that you are ready to proceed, get a mortgage agreement in principle. This will give you an advantage to those who try and get in there without confirmation of their mortgage eligibility.

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.

Other Helpful Gazumping Tips

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.

How a Mortgage Broker in Hull Can Help

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.

Buying a Property with a Friend or Partner in Hull?

Should I Buy a House with a Friend or Partner? | MoneymanTV

Buying a Property with others 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.

How many people can jointly own a property?

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.

What is the difference between Joint tenancy & tenancy in common?

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.

Joint Mortgage & Removing Names in Hull

What happens if you jointly own a mortgage, but your co-borrower(s) stop meeting the mortgage payments?

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.

How do I remove my ex from my 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.

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

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.

Why Get Mortgage Advice in Hull?

The Benefits of Getting Mortgage Advice in Hull

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.

Invaluable Mortgage Advice in Hull 

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 Today

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. 

Divorce & Separation Mortgage Advice in Hull

Divorce & Separation Mortgage Advice | MoneymanTV

When it comes to divorce or separation, it can be a challenging time. Processing the separation along with arranging finances as well as where you are going to live can slowly build up a lot of stress. Financial commitments should be at the top of your list and may come with some hurdles to overcome.

If there are children involved in these situations, the most common arrangement parents go for is where the children would live with the parent who is more of a stay at home parent. This means that the other parent would move out and there may be a point that whoever is ‘in situ’ wants to carry on the mortgage as a sole applicant. Another option is for both parents to leave the mortgage and begin their own.

Any mortgage commitments you made together could be an element that makes the process a challenging one. If you are finding it difficult to sort this out, you may look at the assistance of a Mortgage Broker in Hull who can provide you with the specialist mortgage advice you need.

Through our time as an expert Mortgage Broker in Hull, our deal encounter with specialist cases on a daily basis. Our experience has provided us with the opportunity to help and guide a large range of customers experiencing a divorce or separation. Below is the top three questions we get asked when people get in touch:

  • How do I remove my ex-husband/wife from my mortgage?
  • How do I remove my name from my ex-partner’s mortgage?
  • Can I have 2 mortgages?

How do I remove my ex-husband/wife from my mortgage in Hull?

With your mortgage commitments, it can be difficult if you are looking to change these. This is because both of your names are on your mortgage and it’s not as easy as it seems if you are looking to remove your now ex-partner off the contract.

If you do approach a dedicated Mortgage Broker in Hull for advice about removing a name from a mortgage, they need to be certain that the remaining applicant on the is able to and afford their mortgage completely as a sole applicant.

Both of you are required to have a full affordability assessment carried out on both of you even if you have kept p with mortgage payments or not. Sometimes, an applicant has managed to prove that they have been paying the mortgage payments without any help from their ex. However, this will not change the fact that their name is still linked into the deal and you still need to pass the lender’s check.

Around this time in the process, our team often find that people have already sorted out someone who will step in and replace the ex-partner on your mortgage. Normally, the person who steps in is either a family member, a close friend or a new partner altogether.

The way your affordability is assessed varies between lenders as they have their own unique way of carrying it out. With this in mind, don’t lose hope if you existing lender can’t help you out. You might find there is additional options out there for you as a homeowner so it’s always best to seek the help of a Mortgage Broker in Hull.

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

The good news is that the process works just the same, however, you are trying to move out and take your name off the mortgage. As mentioned, both of your names are still linked to your mortgage which means you are still responsible for any mortgage payments even if you choose to leave.

Regardless of if you have a verbal or written agreement between you both that states that your ex will be the one managing payments, it is not legally binding in the eyes of the lender so you will be deemed responsible.

In the event that you want to take out a mortgage on a new property, in your name, the lender will still take into account the mortgage payments for your old property. Therefore, it’s best you consider this if you are thinking of taking out a new mortgage. This is we always advise getting help from a professional Mortgage Advisor in Hull ahead of time.

We have found that people in these types of situations usually get confused and stressed out. This is where Hullmoneyman can provide a helping hand. Our friendly team can connect you to be of our experienced Mortgage Advisors in Hull who will be able to sort everything out for you. They can also advise you on the most appropriate option available to you as an individual looking at Moving Home in Hull.

You may find that a number of lenders are more generous than others when it comes to the amount they will lend to you. One may be strict and the other may be more lenient with them looking into your current mortgage commitments being a large factor in this during these circumstances. This is something we will take into consideration when recommending the most appropriate lender to apply for a mortgage agreement in principle with:

Second Mortgage Advice in Hull | MoneymanTV

Can I have two mortgages?

Depending on a variety of circumstances, many homeowners may have the option to have more than one and even more than two mortgages on different properties. This will involve a lot of things to be assessed from your lender and their credit scoring system if you were looking to apply for a second mortgage.

The overall reason for carrying out these tasks is to determine whether or not you can afford this route. In the circumstance where you are applying for multiple mortgages and are failing, this could negatively impact your credit score.

One of the many benefits of approaching a reputable Mortgage Broker in Hull, like ourselves, is that we are able to carry out a search for you without harming your credit file. As soon as we have keyed in all of your information, we can give you an estimation of the maximum borrowing capacity.

By having this information, you are able to have a rough idea of your budget including the costs of your monthly mortgage payments as well as current financial commitments you may have.

Dedicated Mortgage Advice in Hull

Some individuals find it challenging to move on from their current financial commitment, especially in cases like these. If you are in a similar situation, an expert advisor can provide a helping hand which can provide you with the help you need for the process of removing a name from a mortgage.

The aspect of moving home is already a stressful experience so adding a challenging situation like a divorce or separation can sometimes add some extra weight to the situation. Speak to a Mortgage Advisor in Hull today to see how we can help you.

Getting Prepared for a Mortgage in Hull

Preparing First Time Buyers in Hull

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. First Time Buyer in Hull like yourself, will find this guide beneficial to help you understand the progress with your mortgage application.

This article features some useful Remortgage Advice in Hull tips and tricks too, to help fast-track your mortgage application.

Get Mortgage Ready in Hull

Up to Date Credit Report

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.

Agreement in Principle

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.

Proof of ID

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.

Proof of Address 

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.

Last 3 months’ bank statements 

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.

Evidence of Deposit

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.

Proof of income

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.

Budget planner 

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 in order 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. 

Moving House Mortgage Advice in Hull 

Planning to Get a Mortgage in Hull?

Getting ahead of the mortgage game

It’s key that you plan your mortgage journey, it’s that initial step that you should take prior to beginning the process. If you start the process early, there is a chance you are put in front of other buyers. Preparing a mortgage agreement in principle should be at the top of your list before you start viewing properties.

In some cases, you may have planned a mortgage to the last detail but the overall mortgage has not gone to plan. This is common in the circumstance amongst couples who have decided to separate. In this unfortunate situation, you may need to take out a mortgage as a sole applicant with no time to plan.

As an expert Mortgage Broker in Hull, we do recommend that you begin planning your mortgage six months prior to looking to Move House in Hull.

Why planning for a mortgage is important

Sometimes, the mortgage process can throw many obstacles which is why planning is important. By preparing for any hurdles you may encounter, you should be able to work out what to do to overcome it.

Through our 20 plus years working in the mortgage industry, we have been exposed to a large variety of mortgage problems. Even in the final stages of the mortgage journey, some occurrences can negatively impact the process, however, they can sometimes be solved if you prepare enough.

Below are some common problems we have found customers encounter towards the end:

  • The applicant doesn’t have a sufficient deposit.
  • Previously ignoring your credit score because it wasn’t important.
  • You have been too related when it comes to conducting your bank account.
  • You are self employed and your latest accounts don’t look adequate.

By preparing six months prior to starting the mortgage journey, you may be able to avoid some of these problems.

Deposit

Saving up for a deposit can be a difficult factor when you are aiming to achieve your mortgage goals, particularly for those who are renting. You may find saving a deposit as a timely goal with it often taking years, especially for first time buyers.

For a ‘5% deposit’, saving up can be difficult. This is because you don’t know the exact amount that you need until you find a property that you want to make an offer on. The 5% total differs from property to property.

In the circumstance where you are struggling to reach the initial deposit total, you may be able to get financial support from your family through a gifted deposit. This amount gifted does not have to be the full 5%, it could only be a small portion of it; this additional cash may give you the amount you need to get to the minimum deposit.

Another option is to look into applying for one of the Help to Buy schemes for that deposit boost. This is just one of many schemes available that are designed for applicants needing support with deposits. These are usually popular with many First Time Buyers in Hull as a way to get them on the property ladder. There could be a scheme out there that is perfect for you.

Credit score

Credit scores are one of the big contributing factors when it comes to applying for a mortgage. If you have a poor credit score, this can lower your chances of getting accepted for a mortgage. Obviously, this all depends on the reasoning behind your low credit score. You may have a poor credit score because of a CCJ or bankruptcy, which can consequently lower your chances of being accepted, depending on how long ago these issues occured.

Check My File is a brilliant website to use if you are wanting an 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 free of charge.

Bank accounts

When it comes to your mortgage application, it’s important that look at how well you managed your finances. This is because lenders will carry out a thorough analysis of your bank statement and will be able to look at your income and outgoings. Gambling transactions is something that will catch Lender’s eye especially if they are frequent and erratic outgoings. They will gambling with large sums of money unreliable and could turn you away.

In the fortunate case where you are able to receive a gifted deposit, we would suggest that you keep that sum of money in the gifter’s account. By doing this, you will not have a large bank transfer in your account which lenders would question about. Therefore, it’s wise to keep this gifted deposit inside of your family member’s or friend’s account.

Self employed?

If you are a self employed applicant, you may find the mortgage journey a bit more challenging to a regular applicant. You will need to provide a lot more evidence which a usual mortgage applicant would need to.

The evidence you will need to provide as a self employed applicant includes at least one year of accounts’ and three months of bank statements to show your income and affordability. In some cases, you may need to provide additional evidence, however, this just depends on the lender.

Other mortgage hurdles

Through the mortgage journey, you may come across a range of mortgage hurdles that could stall your purchase completely. One of these include a break in the property chain. A Mortgage Broker in Hull like us will be able to help you overcome these hurdles. We are here to support you 7 days a week.

If you have a specialist or complex case, look at getting Mortgage Advice in Hull. Our team can provide you with a helping hand through your mortgage journey.

What is a Mortgage Illustration?

Mortgage Illustration Hull

A mortgage illustration is one of the first items that you will receive during the mortgage process. What is a mortgage illustration though? Although it sounds complicated, it’s really not!

Simply, a mortgage illustration is a document that outlines every detail of your mortgage deal. So, when your mortgage advisor in Hull recommends a product, they will also show you a mortgage illustration showing everything there is to know about that product.

As a mortgage broker in Hull, our process to get your mortgage illustration works like this:

  1. Once you book your free mortgage appointment online, you will be paired with a mortgage advisor in Hull. This advisor will specialise in your situation.
  2. They will search 1000s of mortgages on your behalf to try and find the best one for your circumstances. Once they find the perfect deal for you, they will recommend the product to you.
  3. During this recommendation, you will also receive a mortgage illustration outlining the deal.
  4. If you are happy with the deal and want to continue with us, we can start to prepare your mortgage application.

This process will be described by your mortgage advisor in Hull once you get in touch. Our mortgage advisors have been helping first time buyers in Hull, for over 20 years now, and they will be able to simplify it for you as much as possible.

For a quick answer to “what is a mortgage illustration”, watch the MoneymanTV video below. For more mortgage tips and explanations, check out our channel. Make sure to subscribe whilst you’re there!

What is included in a mortgage illustration?

Your mortgage illustration will include the main product details, costs of taking out the product, monthly repayments, legal fees and sometimes valuation fees.

Main details

The main details that will be included in your mortgage illustration are the length of your fixed contract, who you are taking out the product with and the interest rate.

Costs of taking out a product

Almost every mortgage includes a cost for taking it out. You may be charged for the mortgage you’re looking to take out, and if you do, this cost will be outlined in your mortgage illustration.

Monthly repayments

Monthly repayments are how much you will be paying each month for your mortgage. These costs will be calculated by your total mortgage amount, interest rate and fixed term length.

Legal fees

Legal fees include the services of a solicitor. As a mortgage broker in Hull, we will talk you through these costs before passing you over to them.

Valuation fees

Most properties will require a property survey before you can take a mortgage out on them. If you require a property survey, these valuations could be included in your mortgage illustration. This can change from property to property.

Do I have to agree to your mortgage recommendation?

No, you do not have to take out your recommended product. It is a recommendation for a reason. Your mortgage advisor in Hull will have carefully selected this product for you and would have tried to find a deal for your personal and financial situation.

You are under no obligation to continue with this deal, however, if you choose to part ways with us, you will have to lose this deal too.

Does a mortgage illustration guarantee me a mortgage?

Though we would love to say yes, unfortunately, we can never guarantee any applicant a mortgage. Don’t forget that a mortgage illustration follows your free mortgage appointment, therefore, you have not provided any documents to support income, source of deposit and affordability as of yet.

Is a mortgage illustration the same as an agreement in principle?

Before receiving your mortgage illustration, you will receive an agreement in principle (AIP). This shows that a lender is willing to let you borrow from them in principle of you being able to evidence your income, source of deposit, affordability etc. This is not the same as a mortgage illustration.

Remember that a mortgage illustration is an outline of the mortgage product and not a document from the lender saying that you can borrow from them. It’s also worth knowing that these do not guarantee a mortgage either.

Speak to a Mortgage Broker in Hull

First time buyer in Hull or home mover, we are here to help! We have been in the sector for over 20 years now, and know how to try and find you the best deal possible.

You will receive a free mortgage illustration after your mortgage advisor in Hull has found you the perfect deal. You can book online and choose the best date and time for your mortgage appointment.

Obtaining an Up-to-Date Credit Report in Hull

Credit report Mortgage Advice in Hull

Why get a credit report for my Mortgage Advisor in Hull?

A Mortgage Advisor in Hull will need to have a good idea of your financial situation in order to find you the most appropriate mortgage for your circumstance. Having an up to date credit report is something we recommend as a Mortgage Broker in Hull.

We recommend the check my file report agency to our customers as they are able to bring in your data from 4 credit reference agencies to give you in-depth detail into your profile. In some instances, the data held may vary depending on the credit reference agency you are looking at.

How to get your up to date credit report:

  • Please look at using Check My File. When you sign up, you will receive a free 30-day trial, and then £14.99 after the 30 days. This can be cancelled at any time.
  • When you have logged in and are on your credit report, go to the bottom of the page where you will have the option to ‘Download Printable Version’. From this, you will then download a local copy of your credit report to the device you are using.
  • Your downloadable PDF will be password protected by your 6-figure date of birth ‘DDMMYY’.
  • When you have downloaded this, please send your credit report to enquiries@ukmoneyman.com, along with your date of birth.

What happens when I send my credit report to a Mortgage Broker in Hull?

Sending your Credit Report by email will differ depending on what device you are using e.g. iPhone, Android, Desktop PC.

As soon as one of your expert Mortgage Advisors in Hull has reviewed your credit report, we will get in touch with you to discuss your mortgage options in-depth.

Using our extensive knowledge as a reputable Mortgage Broker in Hull we will be able to give you in-depth information about the various criteria set out by the lenders we work with. Some of which are specialist lenders, check out our Specialist Mortgage Advice in Hull page to find out more information.

If you are a First Time Buyer in Hull or are looking to Move Home in Hull, our team can recommend the most appropriate mortgage for you by using our experience and knowledge as well as the information shown in your credit report.

How Much Can I Borrow For a Mortgage in Hull?

First Time Buyer Mortgage Advice in Hull

How Much Can I Borrow For A Mortgage? | MoneymanTV

When we speak to customers for the first time, especially if they are a First Time Buyer in Hull or a Home Mover in Hull, are wondering whether or not they can get a mortgage in the situation they are in, and how much can they borrow for a mortgage.

Modern Day Affordability – How much can you borrow?

In 2014, the Financial Conduct Authority (FCA) launched something called the Mortgage Market Review (MMR). This was a completely brand new way for mortgage lenders to do business, with new guidelines that they had to follow, in order to stop the “Credit Crunch” from happening once again.

The modern way of reviewing a customers credit history, includes looking at your spending habits, going more in-depth in making sure you can afford a mortgage. In the past, it was commonplace to borrow much more than your annual income, which thankfully is no longer the case!

Nowadays you can only borrow a multiple of your annual income, making it much less risky to lend and to borrow. Speaking of income, that’s the biggest factor in determining how much you can borrow. If you are a high earner, you are likely going to be able to borrow more than a lower earner.

Everyone’s situation is different, and those differences can also determine how much you can borrow. Some have childcare costs, student loans, other costly credit commitments. In this case, you will very likely be borrowing less than someone who has the same income, but is without those costs.

Credit history is a big factor in obtaining a mortgage too. Whilst it doesn’t necessarily directly affect the amount you can borrow, applicants with a poor credit score or adverse credit may either be declined altogether, or have to pay more on interest, to cover the risk to the lender.

Because of the interest-rates, you’ll be paying a larger sum per month to the lender. Let’s say your monthly payments are a specific amount, but you can only afford half that amount per month.

This could mean you aren’t able to borrow as much as you would’ve liked, due to a cause and effect of having adverse credit.

Additionally, how a mortgage lender assesses your income could determine how much you can borrow. Some will see something like pension contributions as a fixed outgoing, so may lend less to an applicant than another lender might, who wouldn’t factor in that outgoing into their assessment.

There’s a lot that goes into assessing affordability, as each mortgage lender will have their own unique lending criteria. You might have a good deposit and sufficient income, and still find that one lender may lend less than another, purely down to the smallest factor.

As a mortgage broker in Hull, we are able to take a look at your case and determine what you may be able to afford, prior to speaking with a lender. We’ll search through thousands of deals, matching your criteria up with the most appropriate product.

Why did the mortgage market review happen?

Taking a Look Back at The 1990’s

Whilst it’s helpful to take a look at how things are now, it’s also important to understand why they are like this now. In the 90’s, before credit scoring existed, mortgage applications would be manually underwritten.

This meant that the process of approving a mortgage wasn’t based on a streamlined, near foolproof algorithm on a computer, as it was instead looked at by real people, at their own discretion.

It was quite easy to just book an appointment with a bank or building society, sitting down with the manager and discussing your mortgage case. From there it would more or less be a sales pitch, in which they would push a savings account until you’re “creditworthy”.

From this point, you would be granted the previous equivalent of an Agreement in Principle, as well as mortgage advice regarding the amount you were able to borrow. This might sound personalised, straightforward, easy… Perhaps too easy.

The reason it was as such, was down to it once again, being that person’s discretion. The manager of that establishment could interpret the lending manual in any way that they saw fit.

What this means is not only were a lot of wrong decisions made, but you could have walked into any bank or building society branch, anywhere in the country, and received a different outcome each time.

To stop this from being the case and to cut unnecessary costs, mortgage lenders opted to use automated affordability. This meant that instead of the bank manager choosing your affordability and maximum borrowing, you were now only limited to a multiple of your annual income.

What Happened in The 2000’s

Skipping ahead to the early 2000’s, mortgage lending got a little too relaxed. Automated affordability checks were still in place, but these mortgage lenders were allowing customers to self-certify for a mortgage.

Self-certification was where an applicant can sign a document to self-certify their earnings, without having to provide evidential documents, such as payslips or tax returns.

Not only this, but mortgage lenders were also allowing for 100-125% loan-to-value mortgages, meaning not only were you self-certifying your income (sometimes with a falsely inflated figure), but you were also borrowing much more than the property itself was worth.

As you can probably expect from this information, or as you may have even experienced during 2007-2008, the economy crashed and we entered the infamous “Credit Crunch”. The years following, especially between 2008-2010, were very challenging indeed.

These challenges extended to the home buying market too, as people attempting to get onto the property ladder for the first time, found it near impossible to do so.

Mortgage lenders had to change, their lending habits had to change, strict criteria needed to be put in place to fix the mess that had been made. As such, the government introduced the Mortgage Market Review in 2014 that we mentioned earlier, and the market eventually recovered.

How can a Mortgage Advisor in Hull help?

As an open & honest mortgage broker in Hull, we believe you will benefit from our expert mortgage advice service, especially if you are a first time buyer in Hull.

We pride ourselves on helping customers find their footing on the property ladder. We can search through 1000’s of mortgage deals, reviewing your case against lender criteria, finding the best one for your circumstances.

To learn more about how much you may be able to borrow, or to get started on your mortgage journey, book a free mortgage appointment online today using our online booking feature. A trusted and dedicated mortgage advisor in Hull will review your case and answer all of your mortgage questions as best as they can.

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

The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
Should you have cause to complain and you are not satisfied with our response to your complaint, you may be able to refer it
to the Financial Ombudsman Service, which can be contacted as follows

The Financial Ombudsman Service, Exchange Tower, London, E14 9SR
www.financial-ombudsman.org.uk

© 2022 Hullmoneyman

Hullmoneyman, 410 Wincolmlee, Hull, HU2 0QL.

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