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What is a Property Chain & How Can You Avoid Them?

Moving home mortgage advice in Hull

During your process of moving home in Hull, it’s likely that you’ll come across lots of different hurdles and obstacles; if you don’t consider yourself lucky! It could be something completely random that gets in your way, something you never thought would affect your moving home journey.

A recurring problem that trips up a lot of mortgage applicants in Hull is the property chain. Getting caught up in the property chain can slow down and in worse cases, put your moving home process to a stop!

Here is all about property chains, how you may end up getting wound up in one and how to avoid them.

What is a property chain?

A property chain is a string of transactions that are each dependent on all purchases and sales completing. If one of the transactions breaks down, this can have a knock-on effect on the rest of the transactions in the chain. For example, let’s say you are selling your home and purchasing a new one.

Then let us say that the person who was looking to purchase your home suddenly pulls out. You were dependant on this sale to fund your new purchase, which you are now no longer able to make, which means you could possibly be holding up any transactions in front of you too.

Imagine it as an actual chain linking houses together. If one property purchase falls through, the chain potentially breaks and your property purchase may not go through.

Depending on the property chain that you’re linked with, the chain size could be endless. If you’re lucky, you may not have that many purchases in your property chain.

How long will the process take in a property chain?

This answer can change from chain to chain. It all depends on what situation your’s, your seller’s and your seller’s seller situation is! It’s very complicated… we know.

Property chains can run smoothly or badly, there’s no real in-between. You may be in a property chain without even knowing. If the process is fast, you can assume that everyone ahead of you in your chain had their purchase go through fine.

If things don’t work in your favour, you may get stuck in a waiting scenario. As a mortgage broker in Hull, we would strongly recommend starting the moving/buying a home at least six months before you’re wanting to move in.

This amount of time allows room to find your dream home and time just in case you get caught up in a property chain.

What happens if my property chain breaks?

When a property chain breaks, it’s quite unfortunate as there’s not a lot that you can do about it, especially when it’s further down the chain. You may be forced to wait or look for a new property.

If the property chain breaks at your purchase, acting quickly could save the chain from breaking. It can also help everyone else behind you. For example, if you’re selling your property, you can contact the applicants who want to buy your property by contacting your estate agent; this way, you can inform them of the situation as early as possible. As long as you act quick, you may be able to resolve the issue that broke the chain.

There are ways to prepare for a break in the property chain if the break is not on your level; this includes, you could try and buy a property that isn’t in a chain or in a small chain, sell your property and rent temporarily or buy a new-build property, etc.

For more moving home mortgage advice in Hull, contact our experienced mortgage team in Hull today.

How can a property chain break?

You’ll discover that there are many different reasons why a property chain could break. It could be at any level during the chain:

  • The buyer’s mortgage application was declined
  • A seller decides that they don’t want to sell their property
  • A buyer/seller loses their job or becomes ill
  • The property survey that was carried out on the property lightened some major damages and structural issues.

This is just a small list of examples, there are many more. Sometimes it’s just down to the length of the property chain to how drastically these situations will impact your ability to move home.

How can I avoid a property chain?

It’s hard to ‘avoid’ a property chain, even more so if you’re buying during a busy time of the year.

We would always advise that you do your research and talk to your estate agent and arrange your finances sooner rather than later. This puts you in the best position if a break in the chain were to happen. The more you are prepared, the better.

If you avoid property chain (‘chain-free’), you should be able to move straight on through the moving home process.
However, you must remember that you’ll need to provide evidence that you can afford a mortgage and provide a deposit for the property.

Thinking of moving home in Hull?

Are you thinking of buying and selling your home? If so, let our moving home mortgage advisors in Hull help!

Arrange your own free mortgage appointment online. Begin your moving home journey today and we will help you get through it stress-free! Our advisors can’t wait to hear from you.

10 Factors to Help you Decide Where to Live in Hull

Looking at the various needs home buyers have when moving home

When it comes to moving home in Hull, one of the reasons people look for when searching for their dream property is the location. To help with deciding where you are happy to be in your new home, we have compiled a list of the top ten factors that could help. 

Hustle and bustle of the city or relaxing countryside

It’s best to establish where you would prefer to live because the property you are wanting might be the place you settle down and start a new life in. Your preferences could include the bustling ‘big city’ atmosphere. Alternatively, you may thrive more in a quiet, scenic, and rural landscape. There are both pros and cons to each option and is something that is down to your personal preference.

Transport links

Factors you should consider when deciding on a location are your transport links. Make sure the location fits in well with your regular commutes to work and with what you like to do in your free time e.g., shopping in the city center or enjoying time in a rural area. Either way, it’s good to know what type of transport links are available to you as well as the costs of these links. 

Schools & education

In the circumstance where you have children or you plan to have some in the future, the schools in the area may be something to look at. Therefore, you may want to research which schools are within the catchment area of the property as well as having an idea of what the schools are like. 

This can be done by looking online at the school league tables, which can provide you with more information to help you find which school is the best option for your area.

Facilities

Thinking about if the location fits well with the facilities you need or desire is a factor you may want to consider. It’s helpful, however, it’s good to determine which factors are must-haves and which ones are more of a preference as this will help you with deciding if the location is best on a practical level. For example, the location may not have a gym which you could prefer but has a shop within walking distance. 

Many people prefer having a shop on their route home from work and some prefer to have a gym on their route home from work. When it comes to families, some prefer having a park nearby for the kids.

Friends and family

For some, having friends and family within a short distance of them can be important. Many prefer this as they can rest assured someone is there to support them when there in need. On the other hand, this may not be a priority for you, or you prefer peace and quiet instead of socialising regularly. 

Value for money

Finding that property that is “good value for money” can be dependent on which area you’re looking at. If you’re looking to find a property, and you want to get the most out of your money, then it might be best for you to find somewhere that is a little cheaper. In this case, you may need to dismiss some of those factors you desired.

Community

Your experience of living in the house can be affected by the local community. The type of neighbourhood you might prefer could be small and close-knit, therefore, have a word with the estate agent or research yourself what the community is like there.

It’s common that areas have a community Facebook group or a dedicated local website. If you are looking at living in a more quiet area and community is a factor that isn’t important to you, maybe use your time to look into the reputation of the area.

Jobs

A new job or career can be the reason that you change location. Therefore, it’s probably good to think about how far the is from where the property is where you want to buy. In cases where you’re job hunting after your home move, it’s best to do some research before as to what sort of work there is in the local area and who the main employers may be. 

Property type

In terms of property types, there a lots available on the market for home buyers. You may prefer a property that is an end-terrace with a beautiful garden or you may want a super modern, inner-city apartment, therefore, make sure to look at a range of different options that are available to you and see what property is appropriate for you.

Investment

Proposed investment within the local area can be beneficial to know if you’re looking for a property to settle down in for a while. Looking online can help you find out if there are any future investments in the local area, as well as helping with deciding if this is the best location for you. Consider if any of these investments will benefit you and the lifestyle you are looking at. For example, if you are looking for a quiet life in a rural area, a new housing development nearby may ruin your ideal housing scenario.

Moving Home Mortgage Advice in Hull

The Credit Crunch

In The Beginning of The Mortgage Market

Firstly, let’s rewind to what happened leading up to the 2007/08 “Credit Crunch” to get an insight. In the 1970s and ’80s, a first time buyer in Hull would probably go through a building society if they were wanting to take out a mortgage to purchase a home.

Back then, it was the norm to make an appointment with the building society manager to see whether or not you qualified for a mortgage. This was at the time where banks didn’t always do mortgages! The process would involve the customer taking out a savings account with the building society and the building society would then use that money to lend to other customers. For the building society to make a profit, the interest rates would be higher to borrowers than the rate they were paying to savers.

They moved away from the older model when the banks got involved in mortgage lending. The new strategy would be where lenders would “buy” the money from markets. This would speed up the process in which they could lend out to customers.

Mortgages in The 2000s

Jumping to the mid 2000s; The market was full of new specialist lenders, with many of them originating from North America.

Known as ‘securitisation’, the lenders would sell their book of mortgage customers to raise new money and lend again. Usually, the books were bought by investors from larger financial institutions such as pension funds and high street banks.

Due to the greater deal of money made from the market, new lenders saw this as an opportunity to introduce more relaxed and flexible lending criteria. The lender saw poor credit history and self-certify mortgages as no issue, though it soon became apparent that it was just that; an issue.

Problems Arise For The Mortgage Market

Due to the relaxed lending criteria that lenders introduced, these mortgages, obviously, began to default. This lead to major banks losing confidence in each other, because of the uncertainty of how exposed they were in the fast unraveling sub-prime mortgage market. 

The banks’ share prices plummeted in no time. Some, however, were bailed out by the UK Government (or more accurately, the taxpayer) to prevent them from going bust. Unfortunately, not all were bailed out and failed.

Because of “The Great Recession”, almost 80 different banks, building societies, and lenders across 20 different countries filed for bankruptcy or were acquired. Once this happened, lending dried up quickly. 

It took nearly a decade for the market to recover safely. Property prices significantly dropped and everyone lost confidence in the UK economy.

Economy Recovering

This event is one that we don’t want to happen again. To prevent this, The UK government carried out investigations into what went wrong. This led to the “Mortgage Market Review 2014”. 

With self-cert mortgages banned, responsibility for the affordability of mortgages was now in the hands of the lender.

There were in-depth investigations into customers’ incomes and outgoings with more precise lending criteria. Credit commitments, childcare, and other outgoings were now something lenders were paying more attention to. From this, lenders would be able to ensure customers could consistently afford their mortgage repayments.

Getting a mortgage is a lot tougher now than it was before. To prove their finances get taken seriously, customers need to be more organised with paperwork. Many mistakes happened running up to the Credit Crunch, however, the industry has learned a lesson to hopefully minimise the chances of this ever happening again.

Open & Honest Mortgage Advice in Hull

When is the Right Time to Remortgage in Hull?

Remortgage Advice in Hull

Remortgaging in Hull could be the next step for you if you have decided to stay in your current property and not move house. It is a way for you to stay in your current property with more favorable interest rates and works by being transferred from your existing deal to a better deal. As an experienced remortgage broker in Hull, this is something our team of mortgage advisors can help with.   

If I can already afford my current mortgage, why should I remortgage?

The banks count on their customers not being as knowledgeable and shopping around for a better deal. Often, you will find there are cheaper offers for you elsewhere. Ways to find them could be speaking with a knowledgeable mortgage advisor in Hull who can assist with comparing deals or you can seek these out yourself through a price comparison site. From this, you will find there is probably a deal appropriate for you. However, price comparison sites mainly look for your best deal on an interest basis.

Providing that you’ve been on your current mortgage deal for some time, there is a possibility that you could be on a low Bank of England tracker deal. You could even be paying less than 1% so, it may be best for you to stay with that mortgage deal. This could become an issue if the base rate eventually rises as well as your payments. 

Can I borrow more money for home improvements?

Yes, there is a chance providing that you pass the affordability checks and assuming there is a good amount of equity in your property. From this, you may be able to increase your mortgage to fund future home improvements.

It can be a very wise option because it gives you an updated home and the chance to increase the value of your property if done carefully and with the right help. We find this can help customers in the process of updating their kitchen, converting a loft, or creating a home office.

Can I borrow more money to fund other means?

As well as home improvements, you can borrow extra funds for most legal purposes, this could include:

  • Debt Consolidation
  • Property Investment (e.g., a Buy to Let)
  • Consumer Purchases
  • Gift to relative

Is adding unsecured debt to my credit a bad thing?

Adding debt to your mortgage might not be the best idea. If this happens, you will end up paying back more interest overall through extending the term of your debts to make the payments lower.

Another risk of this is that you are taking debt, which is not secured and, securing it on your home. It could create the potential risk of having your home repossessed. Something that will likely be a problem would be consolidating debts that you can afford or credit cards that are 0% interest.

It’s important to know that you need to speak to a qualified mortgage advisor prior to securing any debts against your home.

An option you could take is to reduce your monthly outgoings to avoid missed payments. By doing this, you are decreasing the risk of your credit rating being in a bad state.

Will I be offered a remortgage by my current provider?

A “Product Transfer” or “Retention” product, is one option a lender will offer. This method allows the lender to provide you with a new deal to stay with them. You would need to contact your provider directly to see what is available to you, however, this option isn’t guaranteed.

In some cases, lenders will allow you to make a product switch online without providing further information or advice.

Staying with the same provider and switch products might be an easier option, however, putting a new application to a different lender may save you a lot of money.

You will find that many banks would offer favourable rates to new borrowers over existing ones. They will be a time where lenders will take a more ethical approach that could have a positive change on customer loyalty.

Mortgage Advice Service in Hull

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

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

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

How does life cover affect your mortgage? 

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

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

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

Paying Back The Mortgage Loan Amount

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

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

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

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

Speak With One of Our Mortgage & Protection Advisors in Hull

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

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

Remortgage for Home Improvements in Hull

Remortgage Advice in Hull

First of all, what actually is a remortgage? A remortgage is when you swap out your current mortgage product for a new one. People usually do it to try and get a better rate of interest.

A remortgage can also be known as a product transfer. The difference between a remortgage and a product transfer is that when you remortgage you take out a new mortgage with a different lender, whereas when you transfer products, you take out a new mortgage with your current lender.

There are many different reasons why someone may want to remortgage/transfer products. At the end of the day, it’s all down to what the homeowner wants. Through a remortgage/product transfer you may be able to get a better rate of interest, consolidate your debts into your mortgage, raise capital for things such as home improvements or for something else.

In this mortgage guide, we are going to cover how you can remortgage/transfer products for home improvements.

How does it work?

Before remortgaging, you’ll have to calculate the intended costs for the home improvements being made. Depending on how you want to improve your home, the costs may not be quite as much as you expected them to be. This is because when you remortgage to improve your home, the costs are incorporated into your mortgage. This means that your current monthly payments will include both your mortgage and your costs for home improvements. Your overall payments may only increase by a small amount (e.g. as little as an extra £60 per month), depending on how big the home improvements are.

You must consider all of the costs that come with remortgaging for home improvements. Here are some factors that people miss:

  • Architect’s plans and services
  • Planning permission (Neighbours etc.)
  • Building costs (Materials, Workers etc.)
  • The VAT
  • Building regulation inspections

Why would I want to remortgage for home improvements?

We’ve seen that the most popular reason for people wanting to remortgage for home improvements is to make more living space. This may be because the homeowners are growing/starting a family or just want more space in general.

The process is simple, can be carried out easily and also saves you from moving home in Hull. Rather than wading through the whole moving home process, if you already love your current home, why move? It often works out much cheaper to remortgage than to move home.

Here are various reasons why you may want to remortgage for home improvements:

  • Kitchen conversion – If you want a new, modern kitchen, you can remortgage to incorporate the costs for one into your mortgage.
  • Conservatory – Conservatories are a great place to sit and enjoy the view of your garden without even leaving your home. This is the most popular reason for people remortgaging for home improvements.
  • Loft conversion – Lofts are also very popular amongst homeowners looking to remortgage for home improvements. A loft allows space for storage or for another bedroom.
  • Garage – If you need more storage space or want more room for an extra car, a garage extension could be what you need.
  • Garden extension – Many people don’t realise that it’s possible to extend their garden through remortgaging. If you want a change of scenery in your back garden, this option could be perfect for you!

Remortgage for home improvements summary

If you are thinking of taking the remortgage for home improvements route, feel free to contact us, we would be more than happy to help. Our team are experts and will give you remortgage advice in Hull exactly when you need it!

Our hardworking team are available 7 days a week so that you can get in touch at a time that best suits you. If you also want to remortgage for another reason, we are still able to help you!

Divorce & Separation Mortgage Advice in Hull

Divorce & Separation Mortgage Advice | MoneymanTV

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Second Mortgage Advice in Hull | MoneymanTV

Can I have two mortgages?

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

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

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

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

Dedicated Mortgage Advice in Hull

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

Moving home is already a stressful enough experience and if you add that to a complex situation like a divorce or a separation, it can sometimes all get a bit too much. Get in touch with a mortgage advisor in Hull today and we will see how we can help you.

Reasons Your Mortgage Application in Hull Might Been Declined

Specialist Mortgage Advice in Hull

As a Mortgage Broker in Hull, it’s not unusual for us to receive enquiries from First-Time Buyers in Hull like yourself who have recently got turned down for a mortgage from the bank. Going directly to a bank/building society for a mortgage should seem straightforward, but it can be more complicated than it looks.

You may have heard of the term ‘mortgage maze’, where every lender seems to be a dead-end, and you can’t quite find the one that will get you out the exit.

The good news is, this is where we step in, our job as a Mortgage Broker in Hull is to get you out of this maze. We’ve been in this maze before, and we know the challenges that come with trying to find the right lender.

Our team will help you find the right lender for you with a tailored product to match your financial circumstances. Here we will cover with you why you could be struggling to get accepted for a mortgage and how we may help.

Going directly to a lender

Failing a credit score for a mortgage

To get accepted by a lender, you will first have to pass their credit score criteria. Each lender will always have its own unique credit scoring method, and some will be more complicated and harder to pass than others. Some lenders have even built their niche audience, so they may only offer specialist deals targeted at applicants with lower credit.

Lenders with the lowest interest rates will likely have the most arduous lending criteria, and usually vice versa. A lender will offer a better product to someone with a high credit score and carry a trustworthy credit history behind them over an applicant with a low credit score with a CCJ(s) or Default(s).

If you go directly to a lender without doing your research, you may be far off their lending criteria, and you could end up being declined. This can harm your credit file when you apply again through another lender, and they will see that you were denied. This is why we always advise that you don’t keep using lots of different lenders, as the more you are rejected, the higher the negative impact you are putting on your credit file.

Your Mortgage Broker in Hull is here to help

Before submitting your mortgage application to a lender, we will first check that you match the lender’s criteria and are likely to pass their credit scoring. We aim to get it right the first time!

Our job is to find you a deal that we know you will love and match perfectly. This applies to everyone regardless of their situation. Bad credit or good credit, we will try our hardest to pair you with a great mortgage deal through a lender that will accept your mortgage application.

Economy’s effect on the mortgage market

We’ve seen applicants struggle to get accepted for a mortgage due to the economy. For example, during the credit crunch in 2008, it was tough to obtain a mortgage no matter your credit history. Lenders lost all of their confidence in the market. They show that your chances of struggling to get a mortgage are likely to increase if the economy is suffering.

If you are struggling to get a mortgage because of the economy and the mortgage market, you may have to hold back your mortgage application at the moment. Sometimes, it may be better to keep building up your deposit so that when the market eventually bounces back, you have even more funds to aid your mortgage deposit. Furthermore, this may even increase your chances of being accepted too.

During times of economic crisis, in the UK, we’ve seen deposit requirements go as high as 25% of the property’s value. On the contrary, if you were looking to Remortgage in Hull in the middle of this period, you will have access to better rates and products. 

Whether you’re remortgaging or carrying out a product transfer, you won’t need to provide a deposit as you are simply switching products and will still have the equity from your original deposit. You are likely to have more equity if you have been on a repayment mortgage.

Improving your credit score in Hull

If you are being declined for a mortgage due to your credit score, you need to start looking at ways to improve it. There are lots of methods you can do to try and improve your credit score. Here are some of the ones that we recommend:

🏠 Check whether you’re registered for the voter’s/electroral roll; if you aren’t, get registered! It’s friendly and easy to do and can boost your credit score.

🏠 Avoid unnecessary credit searches as they can show up on your credit file and sometimes reduce your score.

🏠 Don’t run too close to your maximum limits. Running into overdrafts and not paying off credit cards each month can reflect poorly on your credit score.

🏠 Validate that your address is up-to-date across all of your accounts. This includes credit cards and store cards.

🏠 Close unused credit accounts. This can also reduce your chances of falling victim to fraud.

🏠 Remove financial links to others. If you unknowingly have a financial connection with someone else’s name, it could be doing more harm than good.

There are more ways than you realise. So if you have a low credit score and need credit score Mortgage Advice in Hull, make sure you get in touch with our responsive team, and we will see how we can help.

Get help from a Mortgage Broker in Hull

If you are struggling to get accepted for a mortgage in Hull, it may be time to get in touch with a Mortgage Broker in Hull like us for help.

Being an expert Mortgage Broker in Hull has allowed us to gain valuable experience and deep insights into what lenders are looking for in mortgage applicants. We know all about lender’s credit scoring systems and their lending criteria, allowing us to search for a deal that we know will suit you and you’re likely to match with.

Once you get in touch with us, we will pass you onto a Mortgage Advisor in Hull, who’ll undergo your free mortgage consultation. At this stage, your advisor will learn a little more about your personal and financial mortgage situation so that they can begin searching through mortgage deals for you.

To learn more about our service, get in touch with us today. Hullmoneyman is your new home for Specialist Mortgage Advice in Hull; we have been helping struggling applicants over the last two decades. You could be next!

Mortgage Advice in Hull

Self-Employed Mortgage Criteria Advice in Hull

Self-Employed Mortgage Advice in Hull

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

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

Sole Traders or Partners

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

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

Limited Company Director (20% or more shareholder)

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

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

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

Minimum Trading Period

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

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

Divorce & Separation FAQ’s

Going through a divorce or separation with your partner when you have a joint mortgage together can be difficult. In this guide, we have compiled a list of frequently asked questions that have been answered on this subject. 

Do I Need to Keep Paying my Half of The Mortgage?  

Regardless of if you are going through a divorce, you need to keep paying the mortgage, even if you are living elsewhere in the meantime. 

You and your ex-partner both agreed to take out a joint mortgage and are both held equally liable for the debt until the mortgage gets paid off, regardless of whether it’s just one person living there at the moment. 

Failing not to pay the mortgage on time can harm your credit history as well as your ex-partners, and your home may be repossessed if you do not keep up with repayments on your mortgage or any other debt secured on it.   

When Should I Inform my Lender?  

As soon as you know you will be separating, you need to inform your mortgage lender sooner rather than later, especially if you find it challenging to meet your mortgage payments. 

What are my options? 

1. Sell the Property. 

If you both decide it is best to move out of the property, sell up, and pay off the mortgage. 

Any equity left after the mortgage has been paid off will be split between the two of you. Strictly who gets what from the leftover funds can be open to dispute.  

If you move out and are looking to purchase a new property, our trusted team of mortgage advisors in Hull are available 7 days a week. They are ready to recommend you with the best deal, offering open and honest mortgage advice in Hull. 

2. Continue to Make Those Payments 

If the divorce is on good terms, some decide to stay and continue paying the existing mortgage, and this method can be beneficial, especially if your mortgage is fixed for a couple of years. 

3. Stay in the Property 

If you both conclude that you or your ex-partner will live in the property, the current resident will have to remortgage in their sole name. 

If you decide to become the sole owner of the property, and there is an existing mortgage in joint names, you will need to remortgage. The new mortgage will be taken out in your sole name, therefore your affordability will be reassessed.  

Can I get a Second Mortgage? 

Yes, you can have more than one mortgage. Lenders each have different credit scoring systems and take various factors when applying for a second mortgage. The main one is your current financial commitments. Before applying, you need to make sure you can afford a second mortgage because if you get declined, it could negatively impact your credit file. 

You will be happy to know that here at Hullmoneyman. We can perform a search for you that won’t damage your credit file. Once we have the necessary information gathered, we can then confirm the maximum amount you will borrow.  

This can help you get a good idea of your budget and how much your monthly mortgage payments will be on top of your current financial commitments. 

It can be challenging to move on from your current financial commitments, and this is why having an expert Mortgage Advisor in Hull by your side could prove highly beneficial.  

Moving home can be a stressful experience, and if you add that to a complex situation like a divorce or a separation, it can sometimes all get a bit too much. Speak to a Mortgage Advisor in Hull today, and we will see how we can help you. 

What if I am in Negative Equity? 

If you get divorced while your joint home is in negative equity, it can be challenging to sell the house and pay off the mortgage in full. 

You might have to split the outstanding debt between you or agree with your mortgage provider. 

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

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