Are Mortgage Rates Going Up in Hull?

This is something that we find ourselves being asked regularly by both homeowners and potential home buyers in Hull. The answer to this question depends on entirely on what sort of market we are in and how it is performing.

In order to stay more up-to-date with the mortgage market, including hot topics such as mortgage interest rates and government schemes, take a look at “Mortgage Market Update” playlist on YouTube. We regularly post these types of videos to ensure that all of our customers are “in-the-know”.

What are mortgage rates?

Mortgage rates are the level of interest that a mortgage lender will be charging you on your mortgage balance. This will determine the cost of your monthly mortgage payments, as you are paying, generally, a combination of interest and capital. Lower mortgage rates typically means lower payments.

How are mortgage rates determined?

There are a lot of different factors that can affect what your mortgage rates will be. One that you can absolutely have control over, is any personal factors that will determine if you qualify for a mortgage.

This will include things like your credit score or deposit. The lower the risk, generally, the better the rates. An open & honest mortgage broker in Hull will be able to take a look at your situation, helping you to find the best mortgage deal that is available to you, for what it is you are hoping to achieve.

Our dedicated mortgage advisors in Hull have the ability to search through 1000s of deals, including many different specialist mortgage deals, for customers who perhaps have more complex cases.

What it all comes down to really, at the end of the day, is the current market position, the state of the economy and the base rate of the Bank of England. If the economy is performing well, there will typically be a higher demand for both goods and services, which includes properties.

Higher demand will also usually mean that the Bank of England base rate will go up too, which sees mortgage rates following. The mortgage rates set by mortgage lenders are usually set at a percentage above what the Bank of England base rate is.

Whilst a stronger economy could mean that home buyers can afford more, mortgage lenders aren’t made of money. Because of this, when the base rate is up, the cost of borrowing for mortgage lenders will also rise, which also brings up mortgage rates to cover their borrowing costs.

When the economy isn’t necessarily doing so well, this works conversely to how we mentioned above, as consumers will not be able to afford as much. Because of this, you will typically see interest rates coming down as a why to encourage people on the property ladder with potentially lower payments.

Mortgage Rates Affected by Inflation

As discussed above, one of the biggest factors for changes in mortgage rates, is changes to the Bank of England base rate. As a general rule, mortgage lenders will set their interest rates at a percentage above this. This means that depending on the base rate, this could fluctuate.

Something else that can have an effect on the Bank of England base rate, however, is any changes to inflation. The government ideally have a target in mind that they need to keep at, in order for the cost of living to remain affordable. Unfortunately, this has been known to go over the target.

In situation such as these, you may see the cost of living increase, though unlike the example of a strong economy meaning people may be able to afford more, this can be quite the negative and seeing people unable to afford as much as they would have done.

This of course isn’t exactly the best news for those with ending fixed-rates, as it means they may struggle to afford price increases that are set to take effect once their initial period has ended. In cases like this, a mortgage advisor in Hull can be incredibly beneficial.

Fixed-Rate Mortgages vs Tracker Mortgages

The Bank of England base rate tends to have fluctuations anyway, although usually only very slightly. Tracker mortgages are a type of mortgage that will be following along with this base rate, sitting at a percentage above and moving as and when the base rate moves.

When the base rate is a little low, this can work out quite well, as your monthly mortgage payments will be lower. Unfortunately, if mortgage rates were to go up, you would also be paying more on your monthly mortgage payments, which can change fairly quickly.

An option that could be better for this, which is actually one of the most popular mortgage types you could choose from, is a fixed-rate mortgage. These allow you to lock-in to the interest rate at the time, keeping your payments the same for a set period.

These time periods tend to be between 2-5 years, though they don’t necessarily have to be. An example would be, if your interest rate was 4% and you were fixed-in for 5 years, you might see rates rise to 6% during that time, yet still be paying 4% until that 5 years is up, saving you money.

In times where the economy is a little uncertain, a fixed-rate can provide certainty and stability, giving homeowners one less thing to stress about at home. The downside is that if rates have indeed gone up during this time, when your fixed-period ends, you will move onto a higher rate anyway.

This sort of thing occurring can actually lead some homeowners to remortgage quite early, even being willing to fork out for an early repayment charge, in order to fix in for a longer period and protect themselves from future interest rate increases that could be on the horizon.

How long should I fix my mortgage for?

This really boils down to predictions, how do you see the interest rates changing, as well as your own personal situation changing. As said before, personal factors also can impact mortgage rates, so having a higher deposit will potentially open you up to much lower rates anyway.

If you find that you are in that situation, taking out a fixed-rate mortgage could be beneficial, to stick to those interest rates you have given yourself access to. So long as the economy performs well also, fixing in for 2, 5, maybe even 10 years could see you reaping the benefits of those rates.

Of course this entirely depends on circumstance, and 10 years is a long time to wait. During that time period, you could even see interest rates drop lower than you first fixed in for, meaning you are paying more per month than you could’ve been, if you’d only fixed in for say 2 years.

A trusted and experienced mortgage broker in Hull will be able to best help you prepare for your mortgage future, as well as help you make any decisions based on your plans. They will use their knowledge to help you every step of the way.

Speak With a Qualified Mortgage Advisor in Hull

Interest rates can change without warning really, depending on the current state of the economy, the market and also, the Bank of England base rate. Match it up with your personal circumstances, and there can be much uncertainty.

By booking yourself in for free remortgage advice in Hull towards the end of your fixed-period, or first time buyer mortgage advice in Hull if this is a new experience for you, you can benefit from experts in the field helping you to find the best mortgage deal, with the most favourable mortgage rates.

The Pros and Cons of Using a Mortgage Broker in Hull

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.

Pros & Cons of Going Direct

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!

Mortgage Market Changes in 2014

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.

Handling More Complex Cases

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:

• Poor Credit History.
• Self-Employed Income.
• Mixed Source of Deposit (Savings/Gift).
• Let-to-Buy (Renting Out Your Property to Buy Another).
• Contract Workers/Zero Hour Contracts.
• Affordability.

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.

A Tailored Process

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.

Responsive Service

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).

Agreement in Principle: Frequently Asked Questions

A Brief Summary of an Agreement in Principle

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.

Frequently Asked Agreement in Principle Questions:

Will obtaining an agreement in principle affect credit score? 

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.

Should I avoid hard credit checks? 

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.

Is an Agreement in Principle a guarantee that I will get the mortgage? 

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.

Can I make an offer without an Agreement in Principle? 

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.

How long does it take to get an Agreement in Principle? 

A trusted mortgage advisor in Hull will usually be able to obtain an Agreement in Principle within 24 hours of your free mortgage appointment.

How long does an Agreement in Principle last for?

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.

Agreement in Principle Mortgage Advice in Hull

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.

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.

Getting Prepared for a Mortgage in Hull

Once you’ve saved enough for mortgage deposit, the next step is preparation. Before you are ready to start your process, make sure your mortgage application is in the best position. If you are a First Time Buyer in Hull, you will find this guide very beneficial to aid you with your mortgage application. Also, this article will feature helpful tips to speed up your mortgage application for those looking to Remortgaging or Moving Home in Hull.

Get Mortgage Ready in Hull

Up-to-date credit report

The first thing you should do is obtain an up-to-date credit report. Having an up-to-date credit report is essential for you to provide during mortgage application; ideally, you should try and get yours arranged prior to speaking with a Mortgage Broker in Hull. Your report will be reviewed by one of our Mortgage Advisor in Hull before forwarding you to a suitable lender. 

Agreement in principle 

Another thing that you should do before making an offer on a property is obtain an agreement in principle. The good news is getting in touch with an expert Mortgage Broker in Hull like ourselves, we can often turn around an agreement in Principle within 24 hours of your initial appointment.

Proof of ID 

Make sure to produce a photo ID, the required documents will have to be photo identification such as a Driving License or Passport – though if you’re using one for proof of ID then it can’t be used as proof of address. If you are a non-UK national working in England on a Visa then this will also need to be presented. 

Proof of Address 

You will also be required to prove where you live. This is usually in the form of a utility bill or bank statement within the last 3 months.

Last 3 months’ bank statements 

Your bank statements should reflect your income and regular expenditures. It will be a displeasure to Lenders if they see gambling transactions on your account and they will also not be happy if you are seen to have surpassed an agreed overdraft limit or your direct debits have bounced regularly. The key factor is to get ahead of the game and get prepared as best as you can.

Not all lenders will ask to see your Bank Statements but it is an option that is available to them if they choose to utilize it – regardless of whether they do ask for your bank statements, they want to be confident that you take your finances seriously. The bank statements which you produce should consist if your salary going in and your bills going out.   

Evidence of deposit 

A vital step in the mortgage application is evidencing your deposit for Anti-Money Laundering purposes. To help the process it is best not to move finances around your accounts too much as this will make it a lot more difficult and may delay the process.

Lenders like to see that you are saving your money responsibly, but that doesn’t exempt you from having to account for any large recent deposits into your accounts.

If you have been gifted a deposit, then there will need to be written confirmation stating it’s a non-refundable gift. 

Proof of income 

The most pivotal point of the application is proving your income. If you’re in employment then sufficient evidence would be your last 3 months’ payslips, though some lenders will also ask for your most recent P60. Lenders will take into account regular overtime, commission, shift allowance and bonuses. Additionally, extra earnings may also be considered with some lenders such as part-time jobs or self-employment.

Many applicants are Self Employed in Hull nowadays – if you are a self-employed applicant then you may mean you will need to acquire your Accounts’ help to request your last two or three years’ proof of earnings from the Revenue. If you submit your own accounts then feel free to get in touch and we will be happy to advise you on how to go about downloading from the Government Gateway. 

Budget planner 

By working out an estimate of your expected outgoings after you move house means you can gain an idea of how much disposable income will be available to you to pay your mortgage after such things as regular expenditures, council tax, and utility bills have been paid out from your account. To help you with this, we are happy to send you our version of a Budget Planner to get you started.

As seen, there are many steps you must take in order to prepare fully for your mortgage application deeming it not an easy feat but it doesn’t mean you should worry. If you approach the mortgage application with due timing and an organized matter along with a Mortgage Broker in Hull, you will be in safe hands. 

Moving House Mortgage Advice in Hull 

Do Gambling Transactions Look Bad on My Bank Statements?

Gambling Transaction Mortgage Advice in Hull

When a lender is assessing your bank statements, you can expect them to look for a variety of things. Their primary goal is to determine 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, applicants are asking one question quite a lot: “do gambling transactions look bad on my bank statements?”.

Mortgage Questions to Consider

What has it got to do with the lender whether I gamble or not?

There is nothing illegal about properly licensed gambling, do not panic if you’ve had an annual flutter on the grand national or extensively used internet betting sites. After all, a lot of people see gambling simply as a mainstream hobby or pastime like many others.

That said, as the advertising urges customers to “please gamble responsibly” this is a key point to bear in mind when applying for a mortgage. 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. But they do have a duty (underscored by mortgage regulation) to lend responsibly.

If lenders need to prove to the regulators that they are making sensible lending decisions, it is not entirely unreasonable of them to expect the people to whom they lend to adopt a similar approach when it comes to their personal finances. Look at it from this perspective, if you were lending your own money would you lend it to someone with a serious gambling addiction?

Is it still possible to get a mortgage if I’ve got gambling transactions on my recent bank statements?

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 and the size of the transactions in relation to the person’s income.

As stated above, it is not illegal to have gambling transactions on your bank statements and it does not mean you will be declined straightaway for a mortgage. The lender will examine whether these transactions are justified and responsible.

They will do so by looking at the frequency of these transactions, the size of the transactions in relation to the person’s income, and the impact on the account balance.

So, if your transactions are infrequent tiny amounts that make no significant impact on a regular credit bank balance, then they are not likely to be a red flag. However, if you bet most days or are constantly overdrawn, the lender is therefore likely to see that as being irresponsible and decline your application.

Is there anything else lenders wouldn’t want to see on my bank statements?

Lenders look at your bank statements to see how you manage your money, to help them establish whether this gives them either the confidence that you are financially prudent or the evidence that you are not.

For example, having an overdraft facility and occasionally using it, is not inherently a bad thing; regularly exceeding the overdraft limit – not so good. This is why lenders will look for excess overdraft fees or boucned 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, for example, if you only just go into credit on payday and for the rest of the month are overdrawn, how sustainable is this mortgage?

What can I do to improve things?

Remember to 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.

Therefore, 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 way.

Get in Touch With a Mortgage Broker in Hull

If you are a First Time Buyer in Hull who may find the entire process a little bit daunting, or you have a complex case and need to speak with a Specialist Mortgage Advisor in Hull, our team can guide you through the whole mortgage process and help you with your application and get you on track.

We are here to provide mortgage advice 7 days a week, always on hand to answer your mortgage questions. We can’t wait to help you out with your mortgage journey. Get in touch with us and book yourself in for a free mortgage appointment to speak with one of our Mortgage Advisors in Hull today.

Self-Employed Mortgages in Hull

Mortgage Advice in Hull For Self-Employed Applicants

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.

Self-Employed Mortgage Hints and Tips in Hull

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.

How many years’ books do I need?

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’.

How will a lender assess my income?

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.

I’m a director of my own limited company

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.

My accounts don’t reflect the true success of my business – what can I do?

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.

How much deposit do I need to put down?

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.

Contractor mortgages

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.

Can I still get a self-cert mortgage?

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.

Self-Employed Mortgage Advice in Hull

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.

Different Types of Property Survey in Hull

Property Survey Mortgage Advice in Hull

When the offer you put forward has been accepted, it is then time for your lender to carry out a property survey. This is where the property’s condition will be examined and will highlight any structural faults as well as recommend any repairs or maintenance work that needs doing.

In the case where the property is not in the best condition and needs a lot of work on it, you may find that your lender will lower the initial amount they were going to offer to match the price with the condition of the property.

This job is carried out by a property surveyor who will highlight any minor damages that need to be taken care of as well as any repairs that need to be sorted before your move-in date.

What sort of house survey suits you?

There are many reputable organisations out there that provide property surveys and homebuyers reports in the UK. One of them being the Royal Institution of Chartered Surveyors. Make sure that you only hire a surveyor who is an accredited member. Below are the three main types of property surveys:

• Mortgage Valuation
• Homebuyer’s Report
• Full Structural Survey

Of course, each survey type is different from the other in terms of how they work, pricing and how long they take to carry out. In some cases, mortgage lenders will include a free property survey in your offer.

Not all lenders will offer this service for free. A deal that does include a free survey will likely find you paying a lot more in terms of set-up/arrangement fees.

For instance, one survey could go into a lot more depth than another. In the event that you encounter something you weren’t notified about in your survey report, by law, you do have the right to work out an alternative price, if needed.

Mortgage Valuation

On the flip side, there are other property surveys that are more simple. Mortgage valuations are carried out to see how much a property is worth.

When a Mortgage Valuation is carried out and they found that the property is not worth the amount that you’ve agreed to pay for it, there is the possibility that your lender would withdraw their offer as they will be lending more than the property’s worth. The two options you could try is either try and – re-negotiate the price with the owner or pay the difference between the offer and the amount the lender is going to lend you.

This survey is the cheapest property survey; however, it won’t go into much detail. The survey will focus on obvious repairs and defects such as structural damages. However, it will not show small, minor damages on the property.

You’ll need to upgrade your survey for a report with further detail. Although this may be costly, this could be worth it in the long run as you may find out everything that needs preparing in your home before further damage is done.

Homebuyer’s Report

A Homebuyer’s Report will determine how safe the property is to live in. The survey looks at issues such as mould, damp walls and ceilings or things that do not pass the current building laws.

The property will be examined from top to bottom, inside and out. The surveyors will look at everything. This process could take up to a day on a large property.

Full Structural Survey

As a mortgage broker in Hull, we would always recommend a Full Structural Survey if you want a detailed report of the home that you’re buying. We would particularly advise those buying an older house to take up this survey too as it will highlight major repairs and damages in the property. Older buildings are more likely to come with defects and damages.

Although a Full Structural Survey is the most expensive property survey, it will provide you with the most information about the property. The report will go in-depth, highlight the overall condition of the property, and show what changes will need to be made if the property purchase goes through.

A Full Structural Survey can take as long as a whole day depending on the size of the property.

Do I need to get a survey on a new build?

If you buy a new build property, property surveys work a little differently. You’d think that since the property is new, you wouldn’t have to get a property survey carried out on it. However, it’s always best to do one just in case.

There is a property survey designed for new builds called a Snagging Survey. This survey will break down the property’s overall condition, pointing out both minor and major issues. The survey can point out something as simple as a missing door hinge to a crack in the ceiling (which is unlikely to find in a new build).

If you’re moving into a new build that’s already been built, it would be wise to get a snagging survey carried out on the property before you move in. This will give you the power to negotiate the price if anything is wrong with the property.

How can our mortgage advisors in Hull help you?

If you’re struggling to choose a property survey, our Mortgage Advisors in Hull are always here to help. To speak with a mortgage advisor, book your free mortgage appointment online or give us a call.

We’ve helped many First Time Buyers and Home Movers in Hull choose the best property survey for their new home. Let us help you next!

Agreement in Principle and Soft Credit Searches

During your mortgage process, you will have to pass your mortgage lenders affordability checks, credit searches and prove your income. Once you have done this, you will obtain an agreement in principle (also known as an AIP).

Having an agreement in principle will not only demonstrate that a mortgage lender is willing, in principle, to let you borrow the funds, but it can also be incredibly useful when negotiating on the asking price of a property, as the seller now knows that you are a serious buyer and ready to go.

How does your agreement in principle affect your credit score?

The way in which an agreement in principle could affect your credit score, depends on the type of credit search that the mortgage lender takes out. There are two main types of credit search that they will use; Hard Searches and Soft Searches.

Soft Credit Searches

Nowadays, mortgage lenders will much more frequently carry out a soft credit search over a hard credit search. Soft credit searches will generally be less detailed than a hard search, though they are still typically a good indication that your application could be accepted, if you do obtain an AIP from this.

Typically speaking, a soft credit search will not leave a credit footprint, meaning your credit score should not be affected by having these taken out.

Hard Credit Searches

Hard credit searches will be a lot more in-depth than soft searches. The main difference between hard and soft searches is that a hard credit search can affect your credit score, as it will leave a footprint. Anyone looking at your credit file will be able to see if you have one.

If you have a good credit score, you will generally be unaffected, though if you have a lower credit score, you could have problems. The reason for this, is that if you have a poor credit score and have multiple hard searches on file, it can look like you are trying to apply for lots of credit at once.

This is more than likely going to put off a mortgage lender.

Does an agreement in principle guarantee a mortgage in Hull?

You will never be guaranteed to obtain a mortgage. That being said, 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 will typically include lots of small print that home buyers, especially first time buyers in Hull, can easily miss. It’s reasons like this why you would benefit from speaking to an open and honest mortgage broker in Hull.

When customers get in touch with 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 that a customer will require include, but are not limited to, your ID, payslips and bank statements. As a fast & friendly mortgage broker in Hull, we take pride in helping you to prepare for your journey ahead.

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 your property purchase.

How long will my agreement in principle last for?

Normally, your agreement in principle will need to be renewed after around 30-90 days. As an experienced mortgage broker in Hull, we still recommend getting one as early as you can.

The reason why we would suggest this, is so that you can avoid disappointment if you were to find a dream property, only to not have this in place and potentially fall behind another home buyer who has their offer accepted instead.

Always remember, 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 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 appointment with one of our expert mortgage advisors, so feel free to book online today and we will see how we can help you!