As could probably be predicted from us, we firmly believe that there are some great reasons for customers to use a mortgage broker in Hull.
As a fair counter argument though, whether it’s via a branch or online, it is still completely viable to go direct to the lender yourself. Luckily we find that most people prefer to make use of a mortgage broker.
Here we will take a look at the pros & cons to both sides.
When talking about the option of going directly to a bank or building society, the first thing that immediately springs to mind is that you’ll be free from any broker fees. This of course will save you money.
Whilst that may be a point for, an immediate point against comes to mind too. In previous years, you may have thought “the bank manager will know my finances inside and out”, though when credit scoring was introduced, this no longer became a factor in the process.
One reason why going direct could be preferable, is that some lenders offer exclusive mortgage products that are only available by going direct. This is done so to attract a good spread of business from consumers and brokers alike, switching these exclusive products as they see fit.
On the contrary to this, some products may only be available by going with a mortgage broker. In this case, you’re not only able to see potential exclusive deals from your bank, but other lenders as well. A bank can only offer their own products!
In 2014, the market changed and lenders were no longer allowed to sell mortgages on a non-advised basis to anyone who walked through their door.
Previously, it had been believed that non-advisors were trying to push actual advice on customers. This means they weren’t able to benefit from some of the consumer protection that comes with speaking to a professional mortgage advisor.
The changes meant lenders had to adjust. Heading towards the end of 2014, it was commonplace to be kept waiting over a month just to speak with an advisor. Sometimes today this situation still occurs, which is of course less than ideal when you have had an offer accepted and are ready to go!
Because of the issues that were occuring with these services, applications being made via mortgage brokers went on the rise. This is because many brokers out there, like ourselves, are able to offer customers a more flexible service, at times that best suit them.
When you book your free mortgage appointment with us online, you’ll be able to choose a timeslot that best suits your personal and work life. Oftentimes, your appointment can be booked in for the same day. There is no waiting around for somebody to get back in touch!
Affordability is definitely something that factors into people’s decisions to use a mortgage broker. No matter how good a lender’s deal might seem, you won’t get very far if they won’t lend you enough money!
Buying a house is so important to people, that many customers will opt to go with a trusted and dedicated mortgage broker for professional and personalised mortgage advice in Hull.
Nowadays we find that a lot of mortgage applications aren’t as simple as they once were. For one reason or another, there are a lot of contributing factors that can make the mortgage process a lot more challenging now.
Some examples of these are, but are not limited to:
In the past, it was a lot easier for lenders to stand out from the competition by simply offering a deal that was similar to, but better than another mortgage lender on the market. In modern times this is very different, with lending criteria being the big difference between one option and another.
An example of this is the differences in leniency towards those who are looking to obtain a Self-Employed Mortgage in Hull. Some lenders are willing to be a bit more sympathetic towards previous discrepancies on your credit report. Others, not so much.
Your situation is unique to you, it is very unlikely that someone will have the exact same circumstances as you. You could be looking for First-Time Buyer Mortgage Advice in Hull, ready to take the first step towards being a homeowner.
You might be in a tight spot and need some Remortgage Advice in Hull, ahead of consolidating some debts (something that definitely requires an expert opinion). When you explain your position to an experienced mortgage broker, they may have dealt with something that is at least similar in the past.
This allows them to personalise your mortgage advice service and guide you along each step. With a little luck and a lot of hard work, your mortgage advisor in Hull will hopefully be able to recommend the most suitable mortgage, at the lowest rate available to you.
Beyond that though, it’s about more than just getting a mortgage. Even if the application itself is pretty simple to run through, our clients rely on our expertise and industry experience for so much more.
We are able to run through how much the applicant is willing to offer on their potential new home. Our trusted team of mortgage advisors in Hull are able recommend other professional services such as solicitors and property surveys.
Another reason why using a mortgage broker in Hull could be preferable, is that we tend to be far more responsive than the lenders might be.
Our hard working team quite regularly work late into the evening, outside of normal hours, giving maximum effort on customer cases to ensure the service is prompt but also effective.
Something that is often overlooked when looking at why customers may prefer a broker, is that people’s day-to-day lives are so much busier. A mortgage might be important, but you may have no free time! A mortgage advisor in Hull will take the weight off your shoulders.
Professional applicants especially see the benefits of using a mortgage broker, as they have clients of their own that they charge out their services to and they appreciate having an expert to do the work for them whilst they keep busy.
Mayhap in the future we will see lenders wanting to take business back from the brokers. In the event of this, we may see a more technological approach from them. The world seems to be more focused on that these days.
That’s great news for customers who are fine with speaking to bots or using automated systems. Even more so when the case is straightforward.
For most of us though, there’s an element of “realness” when speaking to a real person. We are getting that “human touch” that only speak to a mortgage advisor in Hull can provide for you.
Book your free mortgage appointment online now using the “Get Started” button. Time slots are available every day, from early until late, at a time that best suits you (subject to availability).
Every mortgage lender is different, they each have their own way of deciding who gets accepted and who doesn’t. Some lenders criteria are hard to match and some aren’t, it depends on if you match any of your their criteria and how good your credit score is.
Often we see that mortgage applications are mostly declined due to a customer not meeting their lenders criteria. We believe that this really highlights the value of using a Mortgage Broker in Hull, like ourselves. We search thousands of deals and work hard to get you the most suitable lender for you and your personal circumstances.
Firstly, before you apply, you should check your credit file to see if it’s looking good, if not, why not read our How To Improve Your Credit Score. There are lots of different ways that you can do this, however, we always recommend that you speak to a Mortgage Advisor in Hull before anything.
Generally speaking too, only a small number of people are realistically eligible for every deal on the market. This means that most of the time, people are searching for the wrong deals. Just because you have seen a cheap deal, doesn’t mean that you will qualify for it.
As a Mortgage Broker in Hull, we advise that before you rush into anything, either do some research into the different types of mortgages available or get Mortgage Advice in Hull.
To speak with one of our expert Mortgage Advisors in Hull, book your free mortgage appointment online or give us a call.
Another common occurrence is customers using price comparison websites to find a mortgage. There is nothing wrong with this, although, you need to remember that the price comparison websites can’t match you to all the nuances of a lenders criteria.
Time can be wasted, as it can be weeks down the line of an application sometimes when a mortgage lender finally declines a case. Consequently, this can result in you losing your property and/or breaking down a chain. You may also find yourself getting declined because of picking the wrong mortgage, which in turn could end up leaving a negative mark on your credit score for a failed application.
Customers may be eligible for certain deals, but only at a reduced amount that allows them to match the criteria. This seems to happen regularly, at first the lender says that you can borrow a certain amount and then further down the line they change their mind and find a way to reduce the mortgage available.
As we mentioned before, lenders are all different and they each have their own way of doing things. There is sometimes a huge difference between lenders and it’s very unlikely that you are going to match all of them. You need to narrow down your options and find out which is the best mortgage option for you.
Whether you’re a First Time Buyer or Moving Home in Hull, we think that you will find our Mortgage Advice service highly beneficial. Not only will we support you through the whole mortgage process, but we will also try to find you an amazing mortgage deal for your personal and financial circumstances.
We have dealt with thousands of specialist mortgage cases and have secured mortgages for customers who thought that they never had the chance. Approaching a Mortgage Broker in Hull, like Hullmoneyman, will allow you to get an up-to-date credit report too and we will work with you and match you to the most appropriate mortgage for you!
Do you need the help of a Specialist Mortgage Advisor in Hull? Not a problem! Get in touch today with your local Mortgage Broker in Hull for a free mortgage consultation. Please refer to our reviews for more information about our amazing Mortgage Advice Service we provide to new/existing customers in Hull.
There are thousands of interest-only mortgages across the nation that are maturing every year and the homeowners who have one of these may be caught off guard when it comes to having to pay off the capital sum that is owed.
In this article, we take a look at what interest-only mortgages are and what can be done when situations like this occur.
Back in the ’80s and ’90s, it was actually really common for residential mortgages to be set up this way. The purpose of these mortgage types, was that you would only pay back (over the course of your term) interest on the amount that you borrowed, with the remaining capital lump sum being paid back once the term ended.
For anyone who had previously taken out an interest-only mortgage, it is likely that you will have been advised to set up a repayment vehicle, perhaps something like a low-cost endowment policy.
The policy would mature over time and was designed with the purpose of helping you to repay the capital balance in full, whilst also giving you sufficient life cover for the duration of your mortgage term. Unfortunately, there are a lot of people who weren’t made aware of the risks attached to this type of product.
One of the risks that cropped up, was that there was no guarantee the policy would actually mature enough to cover the costs of your mortgage debt, which in turn led to many applicants being compensated for them being mis-sold a product.
Nowadays, interest-only mortgages tend to be a popular option for customers who are looking at their options for Buy to Let Mortgages in Hull. These types of people are landlords who buy properties to earn some extra income.
It is not very common to come across customers who have taken out an interest-only residential mortgage in recent memory, as they are considerably difficult to obtain unless you can prove that you have a very solid strategy for paying back the capital at the end of your term.
For customers who took out an interest-only mortgage at any point in the late ’80s or ’90s and have not switched it to a capital repayment, then you should absolutely look to take action sooner rather than later.
If you happen to be in this sort of position, the chances that your mortgage lender will send you a letter or give you a call, asking how you plan to pay the capital back will be slim.
It is important to always keep open a line of communication with the mortgage lender, remaining honest and open with them. Contrary to the belief of some, a lender truly does not want to take your property into possession and will only do so if they have no other choice.
Instead of letting things get to that point, here are some other things that you could look to do instead;
The retirement mortgage market is an area of the world of homeowners that is currently thriving, largely due to the amount of interest-only mortgages that are reaching the end of their terms, without any concrete plans in place to actually pay back the capital.
There are a lot of retirement products available to customers across the country nowadays, and some providers may even possibly let you service the interest element by way of regular monthly repayments.
Creating this sort of agreement means that when you die, the capital balance that is left to pay, is repaid from the house sale and the surplus can be given out to your family.
Interest-only mortgage are still in existence and can be obtain, though there are limitations as to who can obtain one. For example, you may possibly be a landlord with an extensive property portfolio or have some other investments in place, which you can use to help you repay the balance.
Lenders will now take an in-depth look at your strategy for repaying the loan, analysing a lot more deeply than they would’ve done in the past.
They do this in order to ensure that they are only lending for a property that they are confident won’t default. In addition to this, they will also want a much larger deposit to go down, potentially as much as 50%.
They will also want to future proof any of your plans before going ahead. An example of this would be checking that you have enough equity in your home to potentially downsize to a reasonable property down the line.
As always, our team of dedicated mortgage advisors in Hull, here at Hullmoneyman, are always happy to run through the options that are available to you as a home buyer or existing homeowner in Hull. Book your free mortgage appointment online today and we will see how we are able to help you.
A Debt Management Plan or a DMP is a formal agreement between you and your creditors to help you pay off your debt. The plan usually starts with you declaring how much debt you’re in then your creditors can get a picture of how severe the situation is.
They will then want to know all about your income and your expenditures. This will help them work out your spending habits and see whether there are things to cut back on.
Once they have these details, you will be put on a DMP tailored to you and your finances. To repay your debt, you will receive monthly payments at a reduced and more affordable rate.
In this article, we are going to look at how a DMP can benefit you and your mortgage in Hull.
Believe it or not, being on a DMP can improve your credit. If you have poor credit at the time of taking out a DMP, meeting your monthly payments and slowly paying off your debt can have a positive effect. If you think about it, you’re clearing debt from your name, therefore, with time, it’s only fair that you start to gain points on your credit score.
Having a higher credit score can potentially open you up to better mortgage rates. You will still need to provide a much higher deposit as usual as you’re still in debt.
By working on a DMP and keeping with it, you may be able to avoid a default, unless you’re already associated with one. Once you are issued with one, it will not be removed from your file for 6 years, regardless of whether you’ve paid off the debt.
Having a default that is in your name can have an adverse effect on your credit score. As a Mortgage Broker in Hull, we would highly recommend avoiding a default if it is possible.
If you speak to an expert, such as a Specialist Mortgage Advisor in Hull, you may be able to get a quick DMP together and avoid a default. Every lender will ask lots of questions when seeing a default in your name. Ideally, you don’t want to be in this situation.
If you’ve already been issued with a default, you may be able to incorporate the amount owed into your DMP. The default will still appear on your credit file, which can negatively affect your chances of being accepted by most lenders.
Having a DMP in place can help your sort out your finances and get you back where you need to be financially. Re-evaluating your finances, particularly in the lead up to a mortgage/remortgage application, is always a recommended option. This includes your DMP payments and your current outgoings.
To provide an example for this situation, you could cut back on gambling during the lead-up to your mortgage application to ensure that you’re looking reliable and managing your finances responsibly. Your lender will see it as irresponsible if you’re on a DMP and are going out and spending large chunks of your income on gambling.
In some circumstances, you may not want to take on a DMP and would prefer to incorporate some of your owed debt into your mortgage. Your total mortgage amount will increase, but you’ll be ensuring that your unsecured debt becomes secured against an asset.
Debt consolidation is a specialist subject and you may need assistance from a Mortgage Advisor in Hull during the process. We would never recommend that you consolidate your debt into your mortgage without conversing with a professional.
You can book a free mortgage appointment with an expert online. Follow our Get Started process to choose a date and time best suited to you.
Stepping into the mortgage world as a First Time Buyer in Hull can be stressful, especially if you don’t have a lot of knowledge and this is a new experience for yourself. However, this doesn’t have to be the case. It’s good to be prepared as possible in order to make the most out of your house buying experience. Below is 9 questions to ask yourself when purchasing a house as a First Time Buyer.
It’s good to have a think about a property you have looked at before you commit to it because a mortgage could be one of the biggest financial commitments in your life.
When it comes to the thinking stage of the process, you need to ask how many people have looked and enquired about the property in order for you to know how long you have to make a final decision. Therefore, if the property is getting a lot of interest, you need to have a final answer pretty soon.
A property chain happens when there are a number of transactions occurring at the same time for every sale and purchase to be completed.
If the property is a part of a chain, this can have a significant effect on parts of the mortgage process.
In the case where there is no onward chain like a new home, bereavement or emigration, can increase the chance of you moving in quickly especially if you are not part of a chain yourself. You can have more of an advantage as a buyer if you don’t need to sell your own property first because you won’t be interrupting the home buying process.
It’s good to utilise this benefit when negotiating property price negotiations.
It can be common in homes that have had previous owners for them leave some previous items behind, which can be a benefit for you. These items include electronic goods like washing machines, fridges, freezers or things like sheds that have been left by for the next occupant. This doesn’t apply to new build properties as they come as standard or agreed upon prior to being built.
The advantage of this is that buyers can save money can time, however, can be an issue for those who don’t want these items as you will have to find a way to dispose of them. In the circumstance where you buying a new build property, there might additional items you can buy that can be fitted and ready on the day you move in.
Another factor you may consider is the neighbours as a good or bad neighbour can lie in the option of you living in the property. This can be beneficial to do if you are looking into an area you have no knowledge or experience of. If you move into a new build, then you and your neighbours will be the ones building a community thus making the experience risky as you won’t know what anyone is like ahead of time.
When it comes to running costs, it all depends on the house and the location which is why it’s helpful that you do your research and ask the right questions. Look into things like how much the Council Tax is as well as the average spend on utilities which can be done by researching online or asking the seller. By knowing these factors, you can help budget for each property.
The direction the house faces can be an important factor to you especially if you like relaxing in the garden in late summer evenings or reading books in natural light. You may find that having a south-facing garden comes with a large premium price to pay because you will receive the most sun throughout the day.
This is another factor you need to think about as it can have a significant impact on your budget. With this in mind, below are some things you may want to look into.
The house buying process usually kick starts with negotiating on a property price. It’s best that you are as ready as you can be to make an offer on a property that you like. If you are wanting to build your skills on this, check out our How to Make an Offer article. As soon as you are prepared, you can then begin negotiating.
To determine if your offer is too high or too low, it’s best to have a chat with the seller of the home or estate agent. From this, you can find out any other offers that have been made and rejected before your offer.
Having a date set in the diary can allow you to plan the other tasks you need to do in advance. These tasks could include instructing a conveyancing solicitor, packing your belongings and sorting out a removal van to bring your belongings to the new property.
Planning your mortgage journey is essential, it’s the first step that you should take before starting your process. In some cases, starting your process early can put you in front of other buyers. One example of this is preparing a mortgage agreement in principle before you start viewing properties.
There may be some cases where it is impossible to plan for a mortgage; for instance, if you and you’re partner decide to part ways. It’s unfortunate when this happens, however, if it does, you may need to take out a mortgage of your own with no time to plan.
As a Mortgage Broker in Hull, we suggest that you start planning your mortgage up to six months before you want to move house in Hull.
Planning and preparing for all possible situations can prove extremely beneficial further down the line. If you encounter a problem that you’ve prepared for, you should be able to figure out what to do to resolve it.
20+ years of experience within the sector has allowed us to come across all different kinds of mortgage problems. When it comes to the final part of the mortgage process, some different things could go wrong and they can sometimes be rectified if you prepare right.
Here are some last-minute problems our customers frequently come across.
With up to six months of preparation and planning, you may be able to avoid some of these problems.
We understand that saving up for a deposit is hard, especially if you’re still renting. Saving up for a deposit can often take years, especially for first time buyers.
It can also be difficult to save up for a ‘5% deposit’ as you don’t know the exact amount that you need until you find a property that you want to make an offer on. Each 5% total will vary from property to property.
Customers that are struggling to meet that initial deposit total will often get help from their parents through a gifted deposit. A gifted deposit does not have to be the full 5%, it could only be a small portion of it; this extra cash boost may give you the perfect amount that you need in order to reach that minimum deposit.
You could also look at applying for one of the Help to Buy schemes if you need a deposit boost. Schemes have been made specifically for applicants that need help. If you’re a First Time Buyer in Hull looking for help getting onto the property ladder, one of these schemes could be perfect for you.
Your credit score is very important when it comes to applying for a mortgage. Having a poor credit score can lower your chances of getting accepted for a mortgage. Of course, it depends on what is the cause for you having a low credit score. If it is because of a CCJ or bankruptcy, your chances of being accepted can be lowered further, depending on how long ago these issues occurred.
If you want to take a look at your credit score, we would recommend using Check my File. This will allow you to get a copy of your credit report, and once you have this, feel free to send it to us and we will take a look at it free of charge.
During the approach to your mortgage application, you need to think about how you conduct your finances. Lenders will be carefully analysing your bank statements and will be able to see everything that’s going in and out of there. An example to look out for would be gambling transactions. Lenders may be put off if they see frequent and erratic gambling transactions on your bank statements. They will see gambling with large sums of money unreliable and possibly turn you away.
If you’ve been lucky enough to receive a gifted deposit, we would advise that keep that sum of money in the gifter’s account. This is because your lender will be able to see a large bank transfer into your account and will question why it’s been transferred; sometimes it’s better to leave the gifted deposit inside of your family member’s or friend’s account.
The self employed often have a hard time when it comes to getting a mortgage. Usually, this is because they are required to evidence more than a usual mortgage applicant.
You will have to submit at least one year of accounts’ and three months of bank statements to prove your income and affordability. Depending on the lender, you may be asked to provide even more evidence if they are unsure of your affordability.
You may encounter all different kinds of mortgage hurdles, some may hold up your purchase completely, for example, a break in the property chain. In situations you can’t prepare for, just know that a Mortgage Broker in Hull like us is here to help. We have availability 7 days a week.
Getting Mortgage Advice in Hull is not a bad thing; people encounter all different types of specialist and complex situations. We offer a helping hand so that you don’t have to go through this process alone!
Customers will always receive an Agreement in Principle from the lender before they can obtain a mortgage on a property. The reason for this is so that you know the lender will agree, in principle, to let you borrow from them.
This part of the process is carried out before the final checks and whilst even with this we cannot guarantee that you will get a mortgage, being given this is certainly a good sign that you’re on your way to mortgage success.
You’ll often see this online being called a Mortgage in Principle and a Decision in Principle. Sometimes it will be shortened to AIP and DIP. Though the collection of names can be confusing to home buyers, worry not as they’re all exactly the same thing.
Once you have gotten an Agreement in Principle, you will be ready for the next steps of the process, fully prepared to support any offers that you look to make as a First Time Buyer in Hull.
By having this document, you may also give yourself room to negotiate with the seller of the property on a lower price.
This is because it will showcase to the seller of the property in question, that you are a serious buyer and have the necessary funds to move on with the mortgage process.
We tend to find that a large amount of lenders these days are choosing to go with soft searches instead of doing hard searches. As a standard rule of thumb, a soft search will not affect your credit score, as they don’t usually leave a footprint.
Hard searches will leave a footprint behind, so having lots of them done can be quite damaging, especially if you fail it each time. That’s not to guarantee a soft search will have no effect, but it is very unlikely.
Soft searches offer less in-depth information than you would get from hard searches, though worry not as no matter which one the lender opts to use, they will be doing it for the right reasons.
If you are not getting hard searches taken out on you regularly, then having one done should be pretty harmless. The problem arises is if you start having multiple hard searches taken out on you in quick succession.
Always remember that if you fully know that you do have a good credit rating, there is no need to be put off by the idea of getting a hard search done, especially if it will be the best option for you to go with.
Though it would be nice for us to say yes and lift your spirits, unfortunately even with an Agreement in Principle to hand, a mortgage is not always a guarantee at the end of the process.
The mortgage lender still needs to take a look at all of your documents and only after their checks are complete will a mortgage underwriter be able to make their final decision.
Customers often get in touch with us after they have previously been declined at the point of application, as they have neglected to read the small print that is stated within their Agreement in Principle.
You are required to provide your mortgage lender with proof of identity, the last 3 months payslips and bank statements to demonstrate your financial capabilities, before a mortgage lender will offer your case.
The required documentation is a little bit different for Self-Employed Mortgage applicants in Hull.
Whilst yes, you would be able make an offer without an Agreement in Principle to hand, you would be much better off for getting one prior to making any property purchase offers.
Whether you take the document, a lender will always have to agree in principle before the mortgage itself can proceed.
Any estate agent with credibility will want to see an AIP before they do business with you, as they need concrete confirmation that you have the funds to proceed and won’t be wasting anyone’s time.
A trusted mortgage advisor in Hull will usually be able to obtain an Agreement in Principle within 24 hours of your free mortgage appointment.
An Agreement in Principle tends to expire somewhere between 30-90 days. Always be mindful though that you don’t just have to make an offer on the first house you encounter within your price range. Take as much time as you need.
If your Agreement in Principle expires, your mortgage advisor in Hull will easily be able to get you a new one, in order to help you make offers when you are ready to.
Finding the home of your dreams, only for a lender to decline you, can be both frustrating and crushing. To counteract this feeling, we would highly suggest that you get an Agreement in Principle as soon as you can, to make sure you’re wholly prepared for the mortgage process.
To gain a better understanding about what an Agreement in Principle is and how they can be useful, take a look at our helpful YouTube video guide.
Dealing with one mortgage can be difficult enough, never mind two!
There are many different reasons why someone may want more than one mortgage, some are more common than others. As a Mortgage Broker in Hull, we see that the most popular scenario is when a landlord wants to take out another mortgage for a Buy to Let.
Whether you’re in this situation or something similar, our mortgage advisors in Hull are able to help you through your second mortgage journey.
Lenders will look at your current mortgage affordability, income and expenditures before accepting your second mortgage offer. They will need to know that you can afford another mortgage.
They may also require you to put down a higher deposit on this mortgage. This will not be around the 5% mark; it could be anywhere between 15-40%.
These are the most common mortgage situations that our team come across. During our years of working within the mortgage industry, we’ve come across all of these situations and managed to help many customers through them. Our team of Mortgage Advisors in Hull have in-depth knowledge and experience with Buy to Let mortgage criteria.
A Buy to Let is a property that you rent out and do not live in. They’re usually bought by current or aspiring landlords.
Buy to Lets will likely require you to put down a higher deposit amount. For any Buy to Let, you’re going to have to put down an amount between 25-40% loan to value rate.
Buy to Let mortgage repayments work the exact same way as your current mortgage. You will be issued with monthly bills and interest rates will apply.
If you’re taking out a second mortgage for a Buy to Let property, it may benefit you to speak with a professional Buy to Let expert. Our advisors have been working with local landlords in Hull for many years now, building up strong relationships with them and helping them with their remortgages on their property’s.
Let to Buy works in the same way as a Buy to Let, however, you are moving home into the property that you’re purchasing and renting out your current one. Deposits and payments will remain the same as a Buy to Let as you’re still taking out two mortgages.
Our Buy to Let Mortgage Advisors in Hull are also experienced in working with Let to Buys. Book your free mortgage with one of them and find out whether you can qualify for one.
This scenario is becoming more and more popular, particularly in recent years. Parents are becoming aware of the struggle to get onto the property and the costs of a mortgage.
With the constant rise of inflation and property prices, First Time Buyers in Hull are needing a helping hand to move home. Sometimes people require just a little bit more than a gifted deposit.
Applicants receiving help from grandparents and parents is not unusual. It’s likely that they’ve already paid off their mortgage and can afford to offer their help. The family member offering the help will have to pass lenders affordability checks to make sure that they can afford to pay for their child’s or grandchild’s mortgage.
When it comes to taking equity out of your home to raise funds, people normally use the money for home improvements, debt consolidation, to buy something such as a car or to fund a wedding etc. Another option that people sometimes choose is to release equity and take out another mortgage.
This situation could also be known as a further advance. A further advance is when you borrow more from your current lender to fund something like home improvements or a second mortgage.
The amount you can borrow would be entirely dependent on the amount of equity in your property and you would still need to prove that you can afford the additional mortgage amount on top of your existing one.
The amount that you can borrow from them will depend on the amount of equity in your property. Also, you will still need to prove that you can afford a second mortgage.
Often, it can be difficult to get your name removed from a mortgage, therefore, sometimes people leave their name on. Even though you’re still named on a mortgage, it can be possible to take out another one in your own name.
When this situation comes about, it’s usually because of a recent divorce or separation. Unfortunately, the financial complications must be addressed sooner rather than later in a scenario like this.
When you want to take out a second mortgage in your sole name, it may be a little harder to get accepted. Your lender knows that there’s just one applicant and you’re still linked with another mortgage. Even if you’ve made agreements with your ex-partner that you’re not going to contribute to their mortgage payments, they will still see it as a potential liability.
This situation can get very complicated and stressful, therefore, we recommend that you speak with a Specialist Mortgage Advisor in Hull. Our advisors are very experienced in dealing with divorce and separation Mortgage Advice in Hull. For help and advice, book your free mortgage appointment online and speak with an expert.
In some cases, a practical way to get on the property ladder as a first time buyer in Hull or home mover in Hull could be buying a home with a friend or partner. The deposit can be raised quicker and bigger than it would be from a single income, also the costs will be shared. It’s important to remember that if one defaults, the other could be responsible for the full mortgage. Therefore, here are some points to look out for from our mortgage broker in Hull.
The maximum amount of people that can jointly co-own a property is four. When you jointly co-own a property, you have a legal right to stay in your home unless a court rules otherwise. Furthermore, if a person would like to sell or take out extra borrowing against the property this is something all owners will have to consent to. Unless a court order state otherwise.
Civil partnerships or married couples usually prefer joint tenancies. In a case where one of the joint tenants dies, then the property immediately is passed to the other owner. The law sees joint tenants as one unit which means you can’t remortgage or sell the property without the agreement of the other owner.
Relatives or friends who are buying together tend to go for tenants. You may jointly own the property but you do not have to own equal shares. Therefore, you can act individually meaning that you have the right to sell or give away your share of the property. There is a way you can mortgage your share of the property, but it would be difficult to find a lender that will lend in these circumstances.
All borrowers are jointly and severally liable, which is something a mortgage lender will highlight to you. If a situation occurs where one of you stops paying your share of the mortgage, then the other(s) will make up the shortfall and pay the full amount.
Buying a mortgage is a big financial commitment, therefore, you should commit to this with the intention of not splitting up in the future. In the circumstance that this does happen, you would have to make changes to the mortgage which can be a difficult situation.
In the case that children are involved in the situation, one person will be occupying the home, however, there might be a point where the person would want to take over the mortgage in their own right therefore will need Mortgage Advice in Hull.
Regardless if one of the parties in the joint mortgage is paying the mortgage without any help from their ex, the application was still processed in joint names. Therefore, in the event of mortgage arrears, both parties are accountable even if only one person is trying to upkeep payments.
The lenders will have to be confident that the applicant remaining can keep up the payments on their own from then before removing a party from a mortgage. To determine this, the lender will need to carry out a full assessment of income even if you have been consistent with your mortgage payments in the past.
Its common in these situations that the individual who steps in to replace the ex-partner is usually a family member or a new partner. When it comes to this change, a Mortgage Advisor can help you go through this process.
In the case of a separation or divorce, it’s key that you know that all parties remain responsible for any joint financial commitments. If a person leaves the family home, this still applies as well as if an agreement is made between both parties that one person will be responsible for all the payments.
If you are looking to purchase a new property in the future, the mortgage payments on the previous property will be accounted for. That’s why it’s important that a person gets Mortgage Advice in Hull prior to making an offer. Many lenders are more generous when it comes to the amount they will lend in comparison to others. Our Mortgage Advisors in Hull will take this into consideration when recommending the most appropriate lender to apply for a Mortgage Agreement in Principle with.
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.
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.
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.
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.
You’ll discover that there are many different reasons why a property chain could break. It could be at any level during the chain:
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.
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.
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.