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.
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.
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.
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.
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.
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!
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.
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.
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.
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.
When lenders ask for your bank statements you can expect them to look for a variety of things. However, their main objective is to assess whether you are the sort of person who manages money responsibly and is likely to keep up to date with their mortgage payments. In recent months, one question is being asked by applicants quite a lot: “do gambling transactions look bad on my bank statements”.
Whether you have an annual flutter on the grand national or regularly use internet betting sites, clearly there is nothing illegal about properly licensed gambling. Many of the bookmakers advertise on mainstream TV and radio. A lot of people see gambling simply as a mainstream hobby or pastime similar to many others. However, it shouldn’t be forgotten that even the gambling advertisers urge customers to “please gamble responsibly” and this is the key to bear in mind when applying for a mortgage. Thus, whilst it is not a lender’s job to tell you how to live your life, how to spend your money or indeed to moralise on the ethical rights and wrongs of gambling, they do have a duty (underscored by mortgage regulation) to lend responsibly.
If lenders need to prove to the regulators that they are making prudent lending decisions, it isn’t entirely unreasonable of them therefore to expect the people to whom they lend to adopt a similar approach when it comes to their personal finances. Think about it. If you were lending your own money would you lend it to the applicant who gambles or the one who doesn’t?
As mentioned above, it is not illegal to gamble so just because you have the odd gambling transaction on your bank statements it doesn’t automatically mean you will be declined for a mortgage. However, the lender will consider whether these transactions are reasonable and responsible. Thus they will particularly look at the frequency of these transactions, the size of the transactions in relation to the person’s income and the impact upon the account balance.
If these transactions are infrequent small amounts that make no significant impact on a regular credit bank balance, then they are not likely to be regarded as important. However, if you bet most weeks or you are constantly overdrawn, the lender is therefore likely to see that as being irresponsible and decline your application.
As we’ve seen, basically lenders are looking at your bank statements to show how you manage your money and to help them establish whether this gives them either the confidence that you are financially prudent or the evidence that you are not.
Remember, lenders are financial institutions that, either directly or as part of a wider group, often sell current accounts, overdraft facilities credit cards and personal loans, so understand that these things can all play a part in prudent financial planning. The key for a mortgage applicant is how these facilities are managed. For example, having an overdraft facility and occasionally using it, is not inherently a bad thing; regularly exceeding the overdraft limit – not so good. Thus, lenders will look for excess overdraft fees or returned direct debits because these would normally show that the account is not being well conducted.
Other things to look out for include credit transactions from pay-day loan companies; “undisclosed” loan repayments (i.e. if you said on the application that you have no other loans but there appear to be regular loan payments, this could be a problem); they would look out for any obvious missed payments; finally, they might also consider how much of a typical month is spent overdrawn – i.e. if you only just go into credit on payday and for the rest of the month are overdrawn, how sustainable is this mortgage?
The simple answer is – be sensible and, if possible, plan ahead. Typically, a bank would ask for up to three months of your most recent bank statements. These will show your salary credits and all your regular bill payments. Thus, if you know you’re likely to want to apply for a mortgage in the not-too-distant future, try to make sure that you avoid any of the above pitfalls. Take a break from gambling for a short while and work on presenting your bank account in the best possible light.
Your mortgage broker can help you as there are some lenders who may ask for fewer bank statements than others or indeed some may not even ask for them at all. However even these lenders would reserve the right to request bank statements in certain circumstances, so your best bet (no pun intended) is to be as prudent as possible in the run-up to any mortgage application. Remember, if you do gamble, please gamble responsibly!
If you are a First Time Buyer in Hull who doesn’t know a lot about mortgages, you should definitely get some specialist advice from a Mortgage Advisor in Hull. They will guide you through the whole mortgage process and help you with your application and get you on track so that lenders will be impressed.
Self-Employment is always on the rise, which in turn brings a rise in Self-Employed Mortgage Applicants in Hull. This is down to changes in work life in Hull and the world around us. There are now more opportunities than ever before to work from work, to start a business and more. As a dedicated and knowledgeable Mortgage Broker in Hull, we rarely see people planning to stay with their first employer from their first year, all the way through to retirement. They want to change their jobs to improve their personal development and financial situation.
There are lots of opportunities for the self-employed and freelancers within the Digital and Engineering sector. This is down to the world becoming more and more interconnected. We are constantly learning which opens more and more opportunities for the self-employed within these industries.
It used to be difficult for Self-Employed applicants to obtain a mortgage. However, with Self-Employment now becoming a lot more common and a lot more gaps opening up in the market, lenders have become more relaxed and lenient with self-employed applicants. The process of applying for and obtaining a mortgage as a Self-Employed applicant is now a lot easier than it ever was in the past.
To get you ahead of the curve when it comes to your mortgage, we have put together a small collection of some helpful mortgage guides, to support anyone from Self-Employed mortgage applicants to those thinking of Moving Home in Hull. Whether you have been in this game before or you are First-Time Buyer in Hull, we are sure that you will find the assistance of a trusted mortgage broker in Hull beneficial.
The minimum you will need in order to obtain a mortgage is one year’s accounts. If you go with a self-employed specialist lender, you will find that they often work off a single year. High street lenders tend to be a little stricter and will want two year’s accounts from you.
Unfortunately, statistics show that most new attempts at running a business end up being unsuccessful and this is why lenders always need you to evidence your track record, to prove you are reliable and have ‘staying power’.
Most lenders will look at the average of your last two years’ worth of income. Although, if your business has grown over the past year and the lenders can see that you will be able to afford a mortgage and run your company, they will go off the latest year and ignore anything that has happened previously.
If you are a director of your own limited company, then technically you are an employee of your own business. Lenders will not view it this way, however, and will only assess you as an employee if you own less than 25% of company shares.
Lenders often add the dividend you have drawn to your annual salary as a way to work out your earnings for the year. The amount that you can borrow for your mortgage will be based on a multiple of this particular figure.
You will find that from time to time, some lenders will work from your net profit rather than your salary/dividend. This works in the favour of company directors who like keeping their drawings low.
As a trusted and hardworking Mortgage Broker in Hull, this is a question that we find ourselves being asked all the time. During the meeting you have with your accountant each year, you will talk about how to minimise your tax liability. This works the other way when it comes to taking out a mortgage as a Self-Employed Mortgage applicant, wherein the more income you have declared, the bigger the mortgage you may find yourself able to obtain.
Whether it’s a Self-Employed Mortgage or not, a minimum of a 5% deposit is still required. It’s exactly the same as employees. If you only have one years’ accounts, you might find it more beneficial to put down a bit more deposit than what you initially would’ve, in order to increase your chances of succeeding. See our article to find out more on How Much You Need For a Deposit in Hull.
When it comes to looking at mortgage options for contractors, there are lots available. Nowadays, it’s a more common occurrence to find people working from short-term contracts. If you are able to evidence that your company has a good track record, your lender can consider taking your ‘daily rate’ rather than going by your net profit. This will benefit contractors greatly, as lenders will consider treating you as if it’s more likely to work in your favour doing so, they’ll treat your case as self-employed instead.
Lenders will need you to provide information on how long is left on your current contract, as this can influence their decision. They need to be absolutely certain that your income will continue as it is, in order to get a true indication as to whether or not you will be able to afford your mortgage. Even when you’re on your very first contract, it may still be possible to obtain a mortgage, though this all depends on your specific circumstances.
It is no longer possible to get a self-cert mortgage. These were heavily abused and caused major problems for both the mortgage market and the economy as a whole. There are zero plans for these to make a return in the future.
We know that trying to get a mortgage as a sole trader, partner or company director can be a tricky process, mostly down to trying to evidence your income. Whilst it can be much easier for an employed applicant, know that you have the same chance of getting a mortgage as anyone else with a similar income and credit score. Depending on the lender that you take out a mortgage with, some may have stricter criteria than the standard lender. This is why approaching a dependable Mortgage Broker in Hull, could be truly beneficial to you and your goals.
We are able to give you a realistic expectation from the start, guiding you through the self-employed mortgage process and providing support even beyond. Our reliable and determined mortgage advisors in Hull are able to search through thousands of mortgage deals on your behalf. Every customer has access to a free initial Mortgage Consultation, so make sure that you Get in Touch with one of our Mortgage Advisors in Hull today. We will talk you through the most appropriate route for you to take based on your self-employment history.
If you’ve had your offer accepted on a property, your next job is to arrange a property survey to establish the condition of your property and to find out whether or not it’s worth what you’re paying for it. We have been in the Mortgage Broker industry for over 20 years now, so we know exactly what type of property survey to recommend to you based on the property that you are purchasing.
First Time Buyer in Hull or Moving Home? Buy to Let landlord or Self Employed in Hull? Whatever your mortgage scenario, you are going to need to get a property survey arranged. Here is everything that you need to know about property surveys and which one you should choose for your property.
A property survey is a detailed review of a property’s condition. The survey is carried out by a property surveyor who will go out to the property and examine its suitability for living in. They will produce a report which will highlight any outstanding problems with the property. These problems could be internal, external or something else. The issues could be serious or they could be easily rectified with a small fee, but either way, you are going to need to get a property survey. The report from the surveyor also provides expert commentary on the property, from the type of wall to the type of glazing.
This is not a survey, it’s an often brief look at a property to assess how much the property is worth for your mortgage lender. Your mortgage lender will usually insist on using a company they trust and you will have to pay for it. The cost of a mortgage valuation varies depending on the size of the property, these can be in the region from £300+. Often, some mortgage lenders offer free valuations as part of a deal; but we’ll help you weigh up taking them up on this compared with other better deals.
This survey will cover structural safety and highlights problems, including damp, as well as anything that doesn’t meet current building regulations.
This kind of report will give you an independent report of your property by an expert.
To ensure you are not paying for two surveys it is advisable to ask the mortgage companies surveyor to carry out this report for you – it will usually take a couple of hours to complete.
This survey is advisable for older properties and those of non-standard construction. Depending on the property size and type – a full structural survey can take as long as a day to complete.
A full structural survey provides a detailed report on the condition of the property and highlights issues that should be investigated further before going ahead with the purchase, providing you with a peace of mind about the condition of your property.
So you’ve been saving for years and months, and now it’s finally the time to put down your deposit on a property and get mortgage ready!
Whether you are a First Time Buyer in Hull testing the waters in the mortgage world or an experienced home-owner planning on Moving Home in Hull, we think that our service would prove extremely valuable. Our top tips will help you gain an insight into the mortgage process and give you an idea of what you will need to get prepared for your mortgage application.
If possible, getting Mortgage Advice in Hull should be first on the list. A Mortgage Advisor in Hull will talk you through the whole process and put out stepping stones for you so that you always take the best route for you and your personal and financial circumstances.
Getting Mortgage Advice in Hull will also give you an idea of how much you will be able to borrow for a mortgage and how much it will all cost. After an affordability and a borrowing capacity assessment are carried out, your Mortgage Advisor in Hull can start looking for competitive mortgage deals for you. Yes, it’s as easy as that!
A Mortgage Broker in Hull like Hullmoneyman will hold your hand through the whole process and help you get the essentials prepared for your mortgage application. They will get an up-to-date credit report for you so that you know the exact position that you are in from the start.
An agreement in principle is one of the first things that you should obtain when starting your mortgage journey; you can’t make an offer on a property without it!
To get a fully credit-checked agreement in principle in place within 24 hours, you should get in touch with your Mortgage Broker in Hull, we do all of this on your behalf so that you have less stress on your shoulders. You will need to provide some proof of who you are to us, this includes your name, where you live and how much you earn. There is a lot of paperwork for you to get together so it’s a good idea to open a file for yourself and start collecting everything in advance.
You’ll need to produce some form of Identification to start your mortgage process. This must be photographic ID; this may be a Drivers Licence or a Passport.
In addition to the above, you’ll need to prove that you live at the address that you say that you do. You’ll need to produce a utility bill or original bank statement dated within the last 3 months.
Spending habits have become one of the most important determining factors in whether you’ll qualify for a mortgage or not. Lender’s love to look at your bank statements, they want to know exactly comes into your account and what goes out. They want to know that you’ll be able to meet your monthly mortgage payments on top of your other expenditures.
Gambling transactions are one of the main things that lenders look for your on your bank statements. They will not be happy to see that you frequently gamble as it shows that it’s a habit that could potentially cause risk further down the line. They won’t take the chance with you if you are always gambling. Lenders may also be put off if you are regularly exceeding your overdraft limit or if your direct debits bounce consistently.
An essential part of your mortgage application is proving where your deposit funds have come from. Lenders will ask you questions regarding your deposit and how you have been able to raise the funds. They need to take this seriously and get the full picture for anti-money laundering purposes.
When applying for a mortgage, we strongly advise not to move monies around various accounts as it will make evidencing the audit trail a little more difficult. You will undoubtedly receive questions from your lender about why you have been moving monies between accounts. Lenders like seeing that you have saved up your money for the deposit, preferably inside its own savings account.
With the rising popularity of gifted deposits, we often see that they make up the majority (if not all) of a mortgage deposit. Gifted deposits are usually most popular amongst First Time Buyers, however, regardless of your mortgage scenario, if you have been gifted one, it needs to be evidenced correctly. Gifted deposits are usually gifted from a family member or friend; whoever it may be, they must verify in writing that this is strictly a gift and not a loan to be paid back.
To prove that you can actually afford a mortgage, you will also need to provide proof of your income. In employment, you will have to show your last 3 months’ payslips and your most recent P60. Lenders will also take into account other various factors including regular overtime, commission, shift allowance and bonuses.
When you are Self Employed in Hull, you’ll definitely need your accountant’s help. On your behalf, they will need to request your tax year overview.
To get yourself in a ‘mortgage ready’ position in Hull, you should do your research and work out an estimate of your anticipated outgoings after you move home. You’ll need an idea of how much your council tax and utility bills will be. This will help when comparing your monthly regular expenditures such as food and drink. When combining all of these factors, you should get a rough idea of how much disposable income you will have available to pay your mortgage payments.
When applying for your mortgage in Hull, things could get complicated very quickly, especially if you end up doing everything by yourself. This is why having a Mortgage Advisor in Hull on your side could prove extremely beneficial to your mortgage journey.
You want to do your best to impress your lender and show them that you have done all you can within your power to get everything ready for your mortgage application. For Mortgage Advice in Hull and assistance with this, make sure to get in contact with your expert Mortgage Broker in Hull. Depending on your circumstances, we could have everything arranged within 24 hours of your free mortgage consultation.
When you pass the lenders credit score to qualify for a mortgage, you will obtain an agreement in principle – commonly known as an AIP for short. Having an agreement in principle in place allows you to make an offer on a property. It also can be very useful when negotiating on the asking price, as the seller now knows that you are serious and ready to start.
This depends on the type of credit search the lender decides to undertake. They will either perform a soft credit search or a hard credit search on your file:
Nowadays, it’s more common for a lender to carry out a soft credit search over a hard credit search. They usually choose to perform a soft credit search because they require less information out of it and there is a lot less chance of your credit score being affected by this one.
Whilst the financial institution doing a soft search obtains less information about you than if they had done a hard search, an agreement in principle from one of these lenders is usually still a very strong indication that your application could be accepted.
Hard credit searches go a lot more in-depth than soft searches. The main difference between hard and soft searches is that hard credit searches can affect your credit score, by leaving a footprint. Anyone who looks at your file in the future will be able to see that lenders have hard searched your credit score.
This won’t really affect you if you have a good credit score. The problems can come if your score is lower and you have had more than one hard search on your file, as it could look like you are trying to apply for lots of credit at the same time. This is likely to put off a lender.
You will never be guaranteed a mortgage, but having an agreement in principle in place ahead of time will certainly work in your favour. Once you provide the lender with all your documents, an Underwriter will review everything and make a final decision. Agreements in principle usually include small print that can easily be missed, which is why speaking to a Mortgage Broker in Hull can be useful.
When customers reach out to us for help about their agreement in principle, we find that in some cases they’ve been turned away at full mortgage application stage.
The documents required include, but are not limited to, things like ID, payslips and bank statements. As your expert Mortgage Broker in Hull, we take pride in helping you be prepared for all this. If you are looking at starting your mortgage process, you may need to look at how to get prepared for a mortgage in Hull.
It’s necessary to have your agreement in principle in place when making an offer. Most credible estate agents will want you to provide evidence that you are able to proceed with the purchase.
Normally, your agreement in principle needs renewing after around 30-90 days. As an experienced Mortgage Broker in Hull, we still recommend getting one as early as you can, in order to avoid finding your dream home only to be told you aren’t eligible for a mortgage.
You don’t always need to buy the first house you see after you get your agreement in principle. It’s a simple process, so if it does happen to expire, you can just obtain another.
You may be a First Time Buyer in Hull or you might be thinking of Moving Home in Hull and are looking for great Mortgage Advice in Hull. If so, we think that you will benefit from our dedicated mortgage advice services in Hull.
We offer a free initial mortgage consultation with one of our expert Mortgage Advisors, so feel free to get in touch today and we will see how we can help!
As a mortgage broker in Hull with a lot of experience in the industry, we have learnt how to help you get through almost every mortgage situation. You could be a First Time Buyer, looking to Remortgage or even Self Employed in Hull. No matter where you are in life and what you’re looking to do, our team may be able to help.
The process of obtaining a mortgage can quickly change, going from simple to very complicated in no time at all. This is down to the variety of lenders available and the unique lending criteria from each you would be matched against. Going with a Mortgage Broker in Hull like us could be just what you need to stop the process from getting too difficult to deal with.
You may find the credit scores of some lenders easier to pass than others. Different lenders have their own niche products and will target specific parts of the market. You will find that lenders with the lowest rates also tend to have the strictest criteria and it is pretty standard for a customer to not match against all criteria.
Lenders who offer competitive deals will always be the hardest to fit into. Firstly, they need to make sure that the customer will be able to afford their monthly payments over the term. Realistically, lenders want a profit. If you can’t pay, they’re out of pocket which is not what they want. Unfortunately, this can make it difficult to obtain a mortgage from certain lenders.
High street lenders with the cheapest deals will try and find other ways make the most out of their profits when it comes to borrowers. Once your mortgage has been accepted, they generally try to sell more products, as they will be working on a commission basis. These products usually include things like Bank Accounts, unsecured loans, credit cards and Insurance.
Nothing is ever simple though and there is a catch with these, as mortgages with lowest rates of interest tend to come with higher set up fees. That’s why a lot of people tend to ignore their products. Lenders are only in this game for themselves, whereas a local mortgage broker in Hull will only ever want to do right by you. We are able to save both your time and money, finding the most appropriate deal for you, by matching you against multiple lenders’ criteria, rather than just one standalone lender.
You will find that not everyone can just remortgage elsewhere and this is down to a variety of reasons:
The economy can have a direct effect on how difficult it may be to match lender criteria and obtain a mortgage, depending on how it is performing. If the economy is not doing well, mortgage lenders will make their criteria stricter and allow less people to match. If the economy is doing well, things may be relaxed and allow more people to match. It’s all dependant on time frame, as it can sometimes be quite difficult to obtain a mortgage. In the mid-2000’s this was different, just before the credit crunch. Lenders gave mortgages to everyone, and we all know how that turned out…
Once the credit crunch was over, lenders rightfully took a completely different view and tightened their criteria. You needed a 25% deposit which meant that getting on the property ladder was near impossible for most people. Interest-rates began to rise, tempting customers to continue renting instead of buying.
Being an experienced and dedicated mortgage broker in Hull has allowed us to gain valuable knowledge regarding lender criteria and credit scoring, something that gives us an advantage when trying to give customers the best possible chance of obtaining a mortgage.
If you’re finding it hard to match with lenders criteria it may be time to approach a mortgage broker in Hull. With trusted mortgage advisors on hand, our team can share simple steps with you on how to improve your chances of your mortgage application being successful.
These steps are very easy and just by giving us a call, you could end up a step closer to securing a mortgage deal. Get in Touch and we’ll get the ball rolling, moving you one step closer to achieving your goals.
No matter whether you are a First Time Buyer looking to make that initial jump onto the property ladder, or are going through the process of Moving House in Hull, you will soon come to realise that there are many different types of mortgages available for customers.
Some options tend to be more popular than others and some are a little harder to come across. We have compiled a list of mortgage types we find that we encounter the most and that you will likely come across. You will also see each section accompanied by one of our MoneymanTV episodes, we hope you find them useful!
You can find more Helpful Mortgage Guides on moneymanTV here or go directly to our “Mortgages Explained” playlist here.
A fixed-rate mortgage means that your mortgage payments are going to remain consistent for a specific period of time. You are in control of how long you choose to fix your payments for, with common lengths generally being 2, 3 or 5 years or longer. Regardless of any changes to inflation, interest rates or the economy you can rest easy knowing that your mortgage payment, often your single biggest outgoing, will remain the same.
A tracker mortgage means that the interest-rate of your mortgage will follow, or track if you will, the Bank of England’s base rate. In simpler terms, this means that the lender that you are with are not the ones that will be choosing your interest-rate and neither will you. Instead, you will be paying a percentage above the Bank of England base rate. In an example, if the base rate is 1% and you are tracking at 1% above base rate, that means you will be paying a rate of 2%.
When you take out a repayment mortgage you will be paying back capital and interest combined each month. Providing that you keep your payments going for the full length of the mortgage term, you will be guaranteed to have your mortgage balance paid off at the end of the term and the property will become yours to own.
In regards to mortgage payments, this is the most risk-free way to pay your capital back to the lender. Early on into your mortgage term, it is mainly the interest that you are paying and your balance will start to go down really slowly, especially if you have taken out a longer term of around 25, 30 or more. Things take a turn when it comes to the last ten years or so of your mortgage, where your payments are paying off more capital than interest and the balance will come down much faster.
Whilst a lot of modern buy-to-let mortgages are set up on an interest-only basis, you’ll find it a harder task trying to get a residential property on an interest-only basis. It is much less likely for a mortgage lender to offer an interest-only product to customers these days, though in some cases it is possible.
Situations where this might be relevant include downsizing when you are older or have other investments that can be used to pay the capital back. Lenders have strict rules when it comes to offering these products now and the loan to values are a lot lower than back in the day.
With an offset mortgage, the lender will set you up a savings account to go alongside your mortgage account. How this works is that let’s say you have a mortgage balance of £100,000 and £20,000 is deposited into your savings account, you only pay interest on the difference, so in this case, £80,000. This can be a very efficient way of managing your money, especially if you are a higher rate taxpayer.
In light of the recent announcement from the British Prime Minister Boris Johnson, we want some share the positive news that came with the new lockdown rules.
Similar to the November 2020 lockdown, the property market is still open for business. You can take up house viewings, continue your purchase and still put your home up for sale.
Here is a mortgage market update from Malcolm the ‘moneyman’ himself:
During the last lockdown in November 2020, there was a huge increase in mortgage enquiries. The boom in home purchase approvals reached a massive 105,000 in November, which is the highest since August 2007.
In October 2020, purchase approvals were at 98,300. This increase of 6,700 is impressive considering we were in the middle of a national lockdown.
In terms of the property market, the January 2021 lockdown is very similar to the previous November 2020 lockdown. You can still begin your mortgage journey in 2021. It’s up to you how you start this, it could be by yourself or through a Mortgage Broker in Hull.
January is a popular time of year for First Time Buyers, Home Movers, landlords etc., and as time progresses we are seeing more mortgage products becoming available again, allowing for more mortgage options to those investing in the property market.
Yes, 90% mortgages are still available and lenders are getting more and more confident in the market. They know that the demand is there and that people will only start coming back when they know that they can get a deal with a 5-10% deposit.
There are also other ways to access a 90% mortgage, for example, this could be through the Help to Buy Equity Loan scheme or the Help to Buy Shared Ownership scheme. If you want a Help to Buy Specialist to talk you through how using these methods could help you obtain a mortgage with only a 5-10% deposit, make sure to get in touch right away.
The property market is still open and so are we! We have Mortgage Advisors in Hull available from 8am – 10pm, 7 days a week throughout the year to help you through your mortgage journey.
Don’t worry, our free mortgage consultation still applies to every customer in every mortgage situation. Start your 2021 mortgage journey with Hullmoneyman today.