What is a Let to Buy Mortgage in Hull?

Let to Buy Mortgage Advice in Hull

The Financial Conduct Authority does not regulate some types of buy to let or commercial mortgages.

The let to buy process works in exactly the same way as buy to let, just flipped on its head. Instead of buying a new property in Hull to let out, you will be buying a new property to live in so that you can rent out your current one.

To begin your let to buy mortgage journey, you must first remortgage your existing residential property in Hull. This will allow you to switch over your property to a buy to let mortgage.

As well as remortgaging your current home, you will also need to take out a new mortgage on the property that you are looking to live in. Taking out a new mortgage can be costly, even more so when you are looking to invest in buy to let.

When taking out another mortgage on your new property, you will be required to put down a larger deposit. This is because you will now be accountable for two different mortgage payments, therefore, your lender needs to make sure that you are able to afford this. As a mortgage broker in Hull, we commonly see that people choose to remortgage to release equity from their current property to fund the deposit for the other.

Please note that remortgaging a residential property into a let to buy is not the same as a buy to let remortgage.

What is the difference between let to buy mortgage and buy to let mortgage in Hull?

A let to buy mortgage is a variation of buy to let. The mortgage part works in exactly the same way, it’s just the process that is different.

Buy to let mortgages are taken out on a property that is being let out. This property can provide additional income for the holder as a tenant would live inside the property. Usually, the amount that a tenant is charged is greater than the mortgage payments on the property.

The main difference between the buy to let and let to buy process is how they start. We see that most let to buy applicants don’t plan to invest, right until they decide on moving home. This is because, rather than moving and selling your current home, you could keep it and let it out. We call them “accidental landlords”.

This also avoids the stress of moving home. Let to buy landlords can simply keep the property in their name and advertise it to tenants once they have moved and settled into their new homes.

Stamp Duty Charges

There are many different costs that come with taking out a mortgage, the same applies for let to buy. One cost that you may come across is Stamp Duty. Some applicants may not face these charges as it depends on the value of the property that you’re buying.

Our job, as your mortgage broker in Hull, is to make you aware of all the costs involved with the mortgage process so that you are prepared and know what you may need to account for. One of our mortgage advisors in Hull will talk you through these costs in your free mortgage appointment.

How to get a let to buy mortgage in Hull?

In order to take out a let to buy mortgage, you must match the appropriate lending criteria. Not everyone will meet the specific requirements, therefore, it is important to make sure that you fit in before getting declined.

Usually, you will need to have a 25%-40% deposit for your let to buy property. This number can change depending on your affordability; that’s why people often release equity from their homes to help them make up this deposit percentage.

To qualify for let to buy mortgage, you will also need to prove that you can cover 125% of your mortgage repayments. You will need a good credit score too. Having a good credit score can be a factor that opens you up to more favourable rates of interest.

Can I get a let to buy mortgage in Hull with bad credit?

Buy to let and let to buy mortgage criteria is much stricter than traditional mortgages. The lender has to be sure that you are able to afford two sets of large monthly repayments.

If you have bad credit, your chances of getting a let to buy mortgage in Hull may be lower than an applicant who has good credit. If you have a CCJ or default in your name, your chances may be even lower of being accepted, though in some cases not impossible!

The Positives and Negatives of a Let to Buy Mortgage in Hull

Positives

Rather than going through the stress of selling your current home and being caught in a property chain, you could keep the property in your name and switch to a buy to let mortgage. This process can be simple and often completed quickly with the help of a let to buy mortgage advisor in Hull.

Having a let to buy mortgage in your name can provide an additional source of income. This profit can be used however you would like.

You still get to move home like you originally wanted, and the moving home process still remains the same for you.

You will need to consider how much both properties are worth. If the value of them go up, you could end up making a hefty profit in the future. This also applies to when you pay off your let to buy mortgage, you will no longer be accountable for the mortgage payments on the property, therefore, you will be making a huge profit on the property.

Negatives

Having two properties in your name means that you will need to account for both of the costs. You are fully accountable for your let to buy property. This includes repairs, damages, etc., as you are a landlord now.

Let to buy mortgages may come with higher interest rates (co-dependant on the economy), which may make your payments higher than your new mortgage. You will need to account for this when buying your new residential property to make sure that you can afford it.

Unfortunately, whilst the value of your properties could go up, they could also come down. This is sometimes to not worry about but to consider.

So, is a let to buy mortgage in Hull right for me?

Is a let to buy mortgage in Hull right for you? Well, that is completely up to you and your personal and financial situation.

It depends on what you are looking to achieve from your let to buy property. There may be other options more viable for you:

• Temporary Accommodation – If a let to buy isn’t quite right for you, but you still want to invest in property and become a landlord, perhaps you could move into rented/temporary accommodation and take out a buy to let mortgage.
  
  Yes, this can be costly, however, you may not match up with the let to buy criteria and this may be your way to meet it.
  
• Consent to Let – You could also consider consent to let. This is where your mortgage lender allows you to rent out your residential property for a length of time, giving you time to move into your new property.
  
  Although this sounds relatively straightforward, this depends on your mortgage lender. You may also find it difficult to find a new home when you have a consent to let going on.
  
• Sell your Home – An alternative could just be to straight up sell your home and move into rented accommodation until you have found a new one to live in. This could be better if you are in a rush to move on from your home. An example of this situation could be during a divorce/separation.
  

Speaking to a Mortgage Broker in Hull

Our let to buy mortgage experts in Hull are here to help. We have helped many landlords achieve their let to buy aspirations, now it’s time to help you!

We have been working with let to buy for the past 20 years. Our team are experienced and will do everything that they can to help! This includes making sure that you match the let to buy criteria, searching 1000s of deals to find a suitable one for you and delivering open and honest mortgage advice in Hull.

You easily speak with a let to buy mortgage advisor in Hull, simply book online or call us. We are available 7 days a week, so don’t hesitate to call!

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.

Buying a Property with a Friend or Partner in Hull?

Buying a Property with others in Hull

The start of your mortgage journey involves finding a property and obtaining a mortgage, all this can be a daunting experience for many homebuyers, especially if they are First Time Buyers in Hull going through the process by themselves. As a Mortgage Broker in Hull, we have spoken to a number of homebuyers in Hull who have decided to purchase a property either with a friend or partner if they could.

A part of the process will involve the advisor conducting an affordability assessment in which they would ask about your current financial situation. This gives us an idea of the maximum mortgage amount you can borrow from a lender. If there are two applicants, lenders will factor in both applicants’ income. Thanks to two sources of income being on the mortgage, it can increase the chance of getting a mortgage offer.

Should you default, your co-borrower could also be responsible for the full mortgage, and vice versa. Following is a list of useful tips we encourage you to take into account when moving into a property with a friend or partner.

How many people can jointly own a property?

All this comes down to which lender you’re with, nevertheless, you will generally be able to co-borrow with up to four people jointly. As much as having more people who are involved can work well with having their application accepted, it is best to keep in mind that this does increase the likelihood of someone pulling out prior to the term ending. For this reason, you must be aware of the people you choose to buy a property with.

There is the opportunity to increase your mortgage later if you want to, but all parties must agree to this. With this in mind, it is best to plan in advance about your future and your plans for ownership of the property.

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

Joint tenancy is an alternative that is most popular with civil partnerships or married couples. Joint tenants are two halves of one whole, one borrower. Therefore, in the tragic event where one half of the party passes away, the property will be automatically granted to the other half.

Under the circumstances, where you are looking to remortgage or sell the property, both of you would have reached an agreement before continuing with the mortgage. A ‘Tenancy in Common’ can be an option if you and your co-borrower are friends or family. This means that you both own your part of the property.

You don’t need to split your shares equally either. Therefore, if you find that one of you is on a higher income, for example, one of you will own more of the property than the other. One benefit of being a ‘Tenant in Common’ is that you can have the freedom to act independently so it’s your choice if you want to sell or give away your share.

Joint Mortgage & Removing Names in Hull

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

A mortgage lender will emphasize that all borrowers are jointly and severally liable. Due to this, you will be liable to keep up the payments if one person chooses not to pay their share of the mortgage.

How do I remove my ex from my mortgage?

If you’re looking to buy a home with your other, you never actually expect that you are going to split up before the term ends. It is a large financial commitment to make, let alone with someone else, and can be a complicated process if you want to make a change.

This can be even more difficult if children are involved because it is likely that one parent will stay with them whilst you are the one who will move out and find their own mortgage. Irrespective of whether you are staying or going, both parties will need the aid of Mortgage Advice in Hull to find a suitable solution.

Even if the person has been paying the mortgage with the input of their ex or not, this doesn’t change the fact that it was applied for in a joint name. This means that in the event of arrears, they will still chase both parties. Before removing your ex-partner from a mortgage, the lender will need to be sure you will be able to maintain mortgage payments by reassessing your income before they proceed.

It can be common for people to apply jointly for the second time with a friend, family member, or new partner, if they are, will find it difficult to afford a mortgage on their own. In this circumstance, it can be beneficial to obtain Mortgage Advice in Hull.

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

As mentioned, in the circumstance where you may end up divorcing or separating from your partner while on a mortgage, you are both still responsible for the property and its mortgage payments.

Firstly, you would need to get in touch with your lender if you were the one who wanted your name removed from your mortgage. You can’t just make an agreement between the two of you.

In the situation where you are looking to get a mortgage of your own, the lender would take into consideration the property you are currently tied to. Therefore, it’s important to make sure that you are removed from the previous mortgage.

Circumstances like these will require you to look at getting Mortgage Advice in Hull.

You will find that some lenders will be more generous than other when it comes to how much they will be willing to lend you. This is something your allocated Mortgage Advisor in Hull will factor this in when recommending the best mortgage lender for you to approach.

Divorce & Separation Mortgage Advice in Hull

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Can I have two mortgages?

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

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

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

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

Dedicated Mortgage Advice in Hull

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

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

What to do If I Miss a Mortgage Payment?

Mortgage Advice in Hull

Any homeowner would never want to miss mortgage payments, however, unexpected events like an illness or family emergency can happen which could lead to financial difficulties. In particular, those with low income and minimal savings.

If you have no insurance policies in place that could cover your mortgage payments should unexpected events occur, this can make the situation challenging.

In this article, we felt we should answer the following questions: what should you do if you are in this situation and think you will miss mortgage payments, and how can you improve your credit score afterwards?

Notify your lender immediately

In the case where you feel you’re going to miss an upcoming payment on your mortgage, you need to inform your lender immediately. When you have missed a payment, this will show up on your credit record, which will affect your ability to remortgage when your old mortgage is coming to its end.

There might be an alternative available to help you avoid missing a payment, however, this depends on your lender’s criteria and situation. Lenders will provide support and guidance to borrowers who are going through a challenging time.

You should not feel embarrassed by your situation. This is a circumstance other people have been through, some struggling more than others. You won’t be the first person or the last person who has contacted them being in this situation.

What happens when I miss a payment?

It’s important to know that it isn’t the end of the world, however, this may negatively affect your credit rating. This does some down how quickly the situation is resolved and how well you communicate with your lender.

Your lender will inform the credit referencing agencies if you fail to pay your mortgage as this will negatively impact your credit score. As mentioned, lenders will generally have a set period after the payment due date. This will differ depending on the lender.

Struggling to manage multiple mortgage payments can result in defaulting on the loan agreement, meaning that your lender could take repossession action. Lender’s last resort would be repossession and eviction, they will generally negotiate with you and help make a repayment agreement.

The Importance of Taking Out Protection Insurance 

Here at Hullmoneyman, our Mortgage Protection Advisors in Hull will recommend taking out the relevant insurance to protect you and your family from financial burden during unexpected health issues.

Depending on the protection insurance you take out, these will help pay for your mortgage and bills if you are off work sick or critically ill.

Please get in touch to speak to one of our Specialists Mortgage and Protection Advisors in Hull if you are looking for support and guidance. They will be able to find out which insurance will be the best for you.

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).

Have You Been Declined For a Mortgage in Hull?

Mortgage Advice in Hull For Difficult Situations

Through our 20 plus years in the industry providing open and honest Mortgage Advice in Hull, it’s a known fact that each mortgage lender has their criteria to determine who gets accepted and who doesn’t. You may find that some lenders criteria are difficult to match compared to other, either way, it all comes down to whether or not your can their criteria and the performance of your credit score.

The most common reason a customer’s mortgage application gets declined is not meeting their lenders criteria. This is where we strongly believe that an expert Mortgage Broker in Hull, like ourselves, is very helpful. Here at Hullmoneyman, we search thousands of deals with the goal to find you the most appropriate lender for you and your financial situation.

How can I avoid disappointment?

Prior to applying, you first need to check your credit file to see if it’s looking good. Don’t worry if not, our guide on How to Improve Your Credit Score might help! Making your credit file favourable to the lender can be done in a variety of ways, however, we always suggest you approach a Mortgage Advisor in Hull before anything.

Another reason to seek an advisor is that only a small number of people are realistically eligible for every deal on the market. Therefore, the majority of the time, people are searching for the wrong deals. It’s not all about finding the cheapest deal, it’s finding one that you will qualify for.

As an experienced Mortgage Broker in Hull, we do recommend that you do look into the different types of mortgage available or get Mortgage Advice in Hull before you rush into anything.

Get in touch with one of our knowledgeable Mortgage Advisors in Hull by booking your free mortgage appointment online or call our team.

What are other applicants doing?

It’s common for customers to use price comparison websites to find a mortgage. There is no problem with going down this route, however, you need to keep in mind that the price comparison websites can’t match you to all the details of a lenders criteria.

Furthermore, it can take weeks for an application to go through the process and can be time-wasting if it ends up being a declined application. This can result in you losing your property and/or breaking down a chain. You could have been declined due to selecting the wrong mortgage which can leave a negative footprint on your credit score for a failed application.

Reduction in loan amount

In some cases, customers could be eligible for particular deals, however, only at a reduced amount that allows them to match the criteria. It can be common for a lender to initially say that you can borrow a certain amount and then in the future, they change their mind and look to reduce the mortgage available.

Again, lenders are all different and have their own ways of carrying things out. You may find there is a significant difference between the ways the lenders work and it’s very unlikely that you are going to match all of them. Therefore, it’s best that you narrow down your options so you can find the best mortgage option for you.

Your Mortgage Broker in Hull is Here to Help

If you are a First Time Buyer in Hull or are looking at Moving Home, we strongly believe that seeking expert Mortgage Advice in Hull will be very beneficial. Here at Hullmoneyman, we will provide a helping hand from the initial point of contact all the way through to getting the keys to your new home. Along with this, we will strive in finding you the perfect mortgage deal for your personal and financial situation.

Through our 20 plus years of experience in the industry, we have dealt with thousands of specialist mortgage cases and have been able to create mortgage success for our customers. Utilising the service of a Mortgage Broker in Hull, like ourselves, will allow you to obtain an up-to-date credit report too and will be provided you with the most suitable mortgage for you!

If you feel your situation is too complicated, a Specialist Mortgage Advisor in Hull could help! Get in touch with our team today for a free mortgage appointment. Check out our fantastic customer reviews to see how a Mortgage Broker in Hull helped them through their mortgage journey!

How a Debt Management Plan Can Benefit You and Your Mortgage in Hull

Debt Management & Mortgage Advice in Hull

A Debt Management Plan or a DMP is a formal agreement between you and your creditors to help you pay off your debt. The plan usually starts with you declaring how much debt you’re in then your creditors can get a picture of how severe the situation is.

They will then want to know all about your income and your expenditures. This will help them work out your spending habits and see whether there are things to cut back on.

Once they have these details, you will be put on a DMP tailored to you and your finances. To repay your debt, you will receive monthly payments at a reduced and more affordable rate.

In this article, we are going to look at how a DMP can benefit you and your mortgage in Hull.

Improving your credit

Believe it or not, being on a DMP can improve your credit. If you have poor credit at the time of taking out a DMP, meeting your monthly payments and slowly paying off your debt can have a positive effect. If you think about it, you’re clearing debt from your name, therefore, with time, it’s only fair that you start to gain points on your credit score.

Having a higher credit score can potentially open you up to better mortgage rates. You will still need to provide a much higher deposit as usual as you’re still in debt.

Avoiding defaults

By working on a DMP and keeping with it, you may be able to avoid a default, unless you’re already associated with one. Once you are issued with one, it will not be removed from your file for 6 years, regardless of whether you’ve paid off the debt.

Having a default that is in your name can have an adverse effect on your credit score. As a Mortgage Broker in Hull, we would highly recommend avoiding a default if it is possible.

If you speak to an expert, such as a Specialist Mortgage Advisor in Hull, you may be able to get a quick DMP together and avoid a default. Every lender will ask lots of questions when seeing a default in your name. Ideally, you don’t want to be in this situation.

If you’ve already been issued with a default, you may be able to incorporate the amount owed into your DMP. The default will still appear on your credit file, which can negatively affect your chances of being accepted by most lenders.

Reorganise your finances

Having a DMP in place can help your sort out your finances and get you back where you need to be financially. Re-evaluating your finances, particularly in the lead up to a mortgage/remortgage application, is always a recommended option. This includes your DMP payments and your current outgoings.

To provide an example for this situation, you could cut back on gambling during the lead-up to your mortgage application to ensure that you’re looking reliable and managing your finances responsibly. Your lender will see it as irresponsible if you’re on a DMP and are going out and spending large chunks of your income on gambling.

Debt Consolidation Mortgage Advice in Hull

In some circumstances, you may not want to take on a DMP and would prefer to incorporate some of your owed debt into your mortgage. Your total mortgage amount will increase, but you’ll be ensuring that your unsecured debt becomes secured against an asset.

Debt consolidation is a specialist subject and you may need assistance from a Mortgage Advisor in Hull during the process. We would never recommend that you consolidate your debt into your mortgage without conversing with a professional.

You can book a free mortgage appointment with an expert online. Follow our Get Started process to choose a date and time best suited to you.

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.

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.