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

Debt Management & Mortgage Advice in Grimsby

A Debt Management Plan (DMP) is a formal agreement between you and your creditors to help you pay off your debt. To create your plan, you will need to declare how much debt you’re in and how long you’ve been in debt. This will allow your creditor to get an idea of what situation you are in and how severe it is.

You will then need to supply some financial documents so that they can back up your income and take a look at your expenditures. This will help them to take a closer look at your spending habits and see whether you can cut back on anything.

The next step is to issue you with a DMP that is tailored to you and your financial situation. Once you start your DMP, you will begin receiving monthly payments at a reduced and more affordable rate in order to pay off your accumulated debt over time.

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

Improving your credit

A DMP could help you build back up your credit. If you have a poor credit score at the time of starting your DMP, meeting your new monthly payments and slowly paying off your debt can have a gradual positive effect. If you think of it as that you’re clearing debt from your name and are meeting recurring payments each month, you can see why it can help you a little bit.

A higher credit score could potentially open you up to slightly better mortgage products. On the other hand, you will still need to put down a higher deposit as you’re on a DMP and lenders may see you as a potential risk.

Avoiding defaults

If you come up with a DMP before receiving a default or a CCJ, you may be able to avoid them if you act quick enough and accumulate what you owe into a DMP. Once you are issued with a default or a CCJ, it won’t be cleared from your file for 6 years, regardless of whether you’ve paid off the debt or not.

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

If you speak with a Specialist Mortgage Advisor in Grimsby, they may be able to point you in the right direction to get your DMP together. When lenders see a default or a CCJ on your file, they will question it straight away and may not lend to you because of it.

If you’ve got a default, you may be able to incorporate the amount owed into your DMP. Remember, this doesn’t mean that the default will go away, it will still appear on your credit file.

Reorganise your finances

A DMP can help you sort your finances and could get you back on track to where you need to be. It’s always recommended that you take a look at your finances during the build-up to your mortgage application anyway; reorganising a couple of things here and there could massively benefit you in some cases.

For example, in this situation, you could cut back on gambling to make sure that you’re portraying yourself as a reliable and responsible applicant. If you’re on a DMP and are spending large sums of money gambling, it will negatively affect your chances of getting a mortgage.

Debt Consolidation Mortgage Advice in Grimsby

In other scenarios, we’ve seen some applicants incorporate some of their owed debt into their mortgage through debt consolidation. Your overall mortgage amount will increase, but you’ll be ensuring that your unsecured debt becomes secured against an asset.

Debt consolidation is a very specialist subject, and you may require a Mortgage Advisor in Grimsby to help you through the process. We always recommend that you seek advice before consolidating your debt into your mortgage.

Book your own free mortgage appointment online today. Use our Get Started process and choose a date and time that best suits you.

How Much Deposit Do I Need for a Mortgage in Grimsby?

Mortgage Advice in Grimsby

Usually, the minimum amount that you’ll need for a mortgage deposit is 5%. On the other hand, this can change depending on your credit history, type of house, where you live, etc.

It can also differ depending on what you are wanting to do. Do you want to move into the property or rent it out as a buy to let? Are you interested in a government scheme such as the Help to Buy Equity Loan?

Everyone’s mortgage situation will be different. Your total required deposit can change depending on your circumstances.

Why do I need a deposit anyway?

Looking back to the mid-2000s when the credit crunch was on the horizon and lenders were handing out mortgages to applicants who couldn’t really afford one. Some applicants didn’t even have any funds in place for a deposit! This led to the mortgage market crashing in 2008. It took 5 years for it to get back onto its feet during 2013.

Following the credit crunch, lenders will now always ask for some form of a deposit. They need confirmation that you’re a reliable applicant that’s going to be able to keep up to date with your mortgage payments. That’s why if you’re an applicant with bad credit, you may find it a little harder to get a mortgage.

With good credit and a green credit score, it’s more likely that you’ll be able to access a 95% mortgage. If you have bad credit, you may have to provide a 10%-15% minimum deposit.

Will the government pay the deposit for me?

The government will never pay for your mortgage deposit; however, they can help you out if you choose to use one of their mortgage schemes.

A few examples of the schemes that are included are the Help to Buy Equity Loan, Lifetime ISA and the mortgage guarantee scheme. To find out more about the government-led schemes available to you in Grimsby, you should go to ownyourhome.gov.uk for further information.

I have 5% deposit – is that enough?

As mentioned before, 5% deposit is usually achievable with a clean credit history.

This can change depending on various factors such as your credit history, your lender and how the economy is performing. Most high street lenders will ask for a 5% deposit; usually, these lenders will often offer the best rates of interest too.

You need proof that you can afford a mortgage, just an AIP is not enough. Even if you’ve saved up to that 5% mark, can you afford to take a mortgage out on that property? Will you be able to maintain the payments over the whole mortgage term?

My Credit History is Poor – How Much I Need to put Down?

Unfortunately, if you have a bad credit history, it’s likely that you’ll have to put down a higher deposit. We’ve seen lenders ask between 10%-15% before.

Additionally, you may be only able to take out a specialist product. In this situation, as a mortgage broker in Grimsby, we would advise that you get specialist mortgage advice in Grimsby.

Our expert advisors can give you an expert’s opinion and help you find the best rate available to you based on your personal and financial situation.

What about Buy to Let?

Buy to let mortgages require a higher deposit. Lenders will want anywhere between 20%-40%. As a mortgage broker in Grimsby, we see high street lenders asking for a 25% minimum.

If you’ve already managed to build up a buy to let portfolio, lenders may be more likely to lend to you.

Can I Take out a Loan for the Deposit?

In the rare case that you are allowed to continue with a loan as your deposit, you must be aware that you are being lent 100% of your mortgage, so your payments will increase. You must compensate for both sets of payments, which lenders will not feel comfortable with.

If you have more questions about this topic, we advise that you speak with a mortgage specialist in Grimsby like us. We are available to talk all 7 days a week, so if you have any questions, feel free to give us a call.

Can someone Gift me a Deposit?

Lenders regularly encourage gifted deposits as they are a great stepping stone for first time buyers to get themselves onto the property ladder.

Gifted deposits are usually handed from family members or friends. The gift will have to be evidenced correctly and shown where it has come from. The person gifting the deposit will also have to sign that it is a gift and not a loan.

Are there any Circumstances at all Where I don’t Need a Deposit?

There are few situations where you will not need a deposit. One example is if you are buying as a sitting tenant at a discount from the open market value. Another would be if you were buying from a family member.

On the rare occasion that you’re able to get a mortgage without a deposit, you still may need help from a professional to assist with evidencing your income, affordability, credit score, etc.

Please note that the above information is for reference purposes only and is not to be viewed as personal financial or mortgage advice.

How to Buy a Home in Grimsby With a 5% Deposit | Mortgage Market Update 02/10/20

Mortgage Advice in Grimsby

In March 2020, COVID-19 brought the mortgage market down to its knees and to this day (October 2020) it is still struggling to get back onto its feet. Everything has been impacted in one way or another; in times like these, everyone has to try to stay optimistic and find ways to spread positivity. In this article, we will share some great news for the mortgage market… yes you can still obtain 95% mortgages.

Are you a First Time Buyer in Grimsby and have already been trying to shop around for 95% mortgages? Well if you are, you have probably realised that there aren’t many available… if any at all. Lenders just haven’t got their confidence back yet and as such, they are holding themselves around the 90% mark. However, there are still ways to obtain a mortgage with a 5% deposit and most applicants don’t know this. To see how it can be achieved, feel free to watch our YouTube video or continue reading on:

Help to Buy Equity Loan

The Help to Buy Equity Loan was introduced by the government shortly after the credit crunch in 2013. Its aim was to give applicants the confidence that they needed to jump-start their mortgage journey. At the time, the Equity Loan scheme was just what the market needed, although, after time, it began to decrease in popularity due to the economy’s bounce back to normality. Skip forward to 2020 to the outbreak of COVID-19, lenders lost all confidence in the mortgage market once again. Luckily, only a few months later (as of October 2020), Help to Buy mortgages made their way back into the spotlight and now the Equity Loan is helping more applicants get onto the property ladder than it ever has before.

The Help to Buy Equity Loan allows you to put down 5% or more deposit on a new build property. No matter what percentage you put down, the government will loan you the remainder to make up a total of a 25% deposit. This means that you will have a total 75% mortgage and the Equity Loan to pay off. Here’s a great example of a home with a £200,000 price tag:

A very important thing to know about the Help to Buy Equity Loan is that the loan that you get from the government (in the example above this is 20%) will need to paid off too. This Equity Loan will be interest-free for the first 5 years, however, if you don’t manage to pay it off within these 5 years, you will start receiving interest on the total due. This interest rate will start at 1.75%.

Now that you know what the scheme is and how it works, here is what you need to know in order to qualify:

• You can only be buying a newly built property
• The maximum purchase price is £600,000
• This is the only property that you can own
• You have to be buying the property for purely residential use only and not as a Buy to Let
  

Shared Ownership

If you don’t think that the Help to Buy Equity Loan is the right option for you, then the Shared Ownership scheme could be what you’re searching for. The Shared Ownership scheme was introduced back in the 70s to help people who were struggling to afford a mortgage get onto the property ladder.

This scheme lets you purchase a percentage of your mortgage and then pay the rest as rent. The percentage of the property that you hold a share in is typically between 25%-75%. Since you only own part of the property, you share the remainder of it with the government. The percentage of the property that you own can be increased at a later date. People usually make this decision once they have settled down or are perhaps making a little more money.

Just like the Help to Buy Equity Loan scheme, you have to qualify for the Shared Ownership scheme and meet certain requirements:

• You can’t have a household income of more than £80,000 per year
• Can only access if you can’t get a mortgage any other way
• You need a good credit history
• You can only own this property
  
  

You can find out more information on the official government’s website: https://www.gov.uk/affordable-home-ownership-schemes/shared-ownership-scheme.

Are they suited for you?

If you are finding it hard to obtain a mortgage and want an opportunity to get onto the property ladder, one of these schemes could be your ticket to begin your mortgage journey. If you want help in deciding which scheme could be best suited to you, you should approach a Mortgage Broker in Grimsby like us.

Both the Help to Buy Equity Loan and the Shared Ownership schemes are great ways to get the ball rolling with your mortgage process, especially in unprecedented times like these. Although, before you rush into anything, it’s always wise to weigh up your options first and see what will benefit you most.

Summary

To summarise whether or not it is still possible to get a 95% mortgage… yes it is, however, your options are limited.

To speak with a professional Mortgage Advisor in Grimsby and to get our expert opinion, get in touch with Grimsbymoneyman. We have been in the mortgage game for over 20 years now and have lots of experience with pointing customers in the right direction. Choosing the right option is much harder when you are doing everything on your own, which is why your Mortgage Broker in Grimsby is here to help 7 days a week. We hope to hear from you soon!

Should I Rent or Buy in Grimsby?

Mortgage Advice in Grimsby

As a Mortgage Broker in Grimsby, we often have First Time Buyers considering their first move onto the property ladder as they ponder whether to buy a home or continue renting.

When deciding whether to rent or buy, the most common thing that you will hear is that renting is a waste of money. You have to ask yourself, is it a waste of money? The answer completely relies on your personal circumstances.

In fact, times have changed and it’s now a lot more common to find people who are renting. As an expert Mortgage Broker in Grimsby, we thought that with all of our mortgage experience we should talk about whether you should buy or rent a property.

Why should I buy?

The property market has been dipping up and down for quite some time now, you can never tell when it’s going to drop again. So if you decide to buy a property and the market plummets, your property value could too.

This has happened to many unfortunate homeowners over the years, although, history suggests that even if you buy at the very peak of the market as long as you can afford to keep the property eventually prices tend to go back up.

For example, during the period of the credit crunch sold values dipped. Before the coronavirus outbreak in 2020, the credit crunch was one of the lowest economic periods of recent times. Surprisingly, less than a decade later these sell values shot up to a new all-time high, meaning that if you bought a property between 2005-2010, it was more than likely that your property value had increased.

What we are trying to say is that if you invest in a property, in the future your sell price could increase which shows that it was worth buying over renting.

Risks of buying

On the other hand, you could lose money if you are forced to sell your home at the wrong time, for example, this could be down to a relationship breakdown or a reduction in your income.

If you are concerned about the risks that come with buying a home, talking to a professional Mortgage Advisor in Grimsby could put you at ease. Before rushing into anything, it could benefit you to know where the market is currently sitting. We have been working within the mortgage industry for over 20 years now, we know exactly how the market is performing and what deals will be available based on what it’s like.

Buying a home is a huge financial commitment and you want to make sure that you get it right the first time. It also needs to be 100% right for you, the most important factor is that it matches your circumstances.

Will a mortgage be cheaper than renting?

Applicants tend to think that mortgage payments are more expensive than renting, however, this is usually not the case. Also, depending on the mortgage that you take out, your payments may fluctuate; this is due to the interest rates changing. If you don’t want an inconsistent interest rate (can sometimes go down if you are lucky), you may want to look into fixed-rate mortgages. A fixed-rate mortgage could be the best option for you as your mortgage payments stay at the same rate through your whole mortgage term.

When renting, you’ll usually find that your monthly payments stay the same. Sometimes your lender may increase your rent for one reason or another but it’s unlikely that they’ll ever reduce it.

Security

People like buying a home for a sense of security. No one can force you out of the property unless you fail to keep up with your mortgage payments. Whereas if you rent, if something goes wrong on the landlord’s end, they could ask you to move out.

Of course, you have some protection when you are renting and get asked to move out; you will always get a notice period. This is a disadvantage to renting, you are living in someone else’s property so if they want you to move out, there isn’t much that you can do. This is certainly not ideal, especially if you have family or work nearby or you have children in a local school.

Sometimes landlords give their tenants the first refusal to buy the property if they are selling it so they can save on estate agents fees.

Flexibility

Renting can be more flexible than owning. If at any time you want to move out of the property, you have the complete right to; you can give your landlord notice whenever you want. This may be because of a job offer in another area or that you simply want to move somewhere new, etc.

This is made more difficult as a homeowner as you have to decide whether you want to keep your home and rent it out as a Buy to Let or sell it. The process of selling a home and buying a new one is time-consuming and expensive, so if you are considering going down this route, it may be best to get Mortgage Advice in Grimsby. Speaking to a Mortgage Advisor in Grimsby could take all of the stress off your back and it could allow you to access competitive mortgage rates.

If you think that you may not be around in a particular area for very long you should consider whether the property is worth buying. Buying a property should definitely be seen as a long-term investment.

Repairs

If you are renting, your landlord should be responsible for any major repairs. There will always be some letting agents and landlords better than others, however, as a tenant you should expect to do some minor maintenance of the property yourself.

If you are a homeowner then all of this is on your own shoulders, and so is insuring the property which will be a condition of any mortgage you take out.

Despite what some people might say, we know that owning a home is not for everyone. If you are a First Time Buyer applicant maybe you should consider renting first, especially if you are young or are moving in with a partner for the first time. If you move in with a partner, it could end up favouring you to rent just in case the worst happens and things don’t work out. Getting a name removed from a mortgage can be tricky and complicated whereas if you are renting, it can be a much easier process as you can move out whenever you want.

Speak to a Mortgage Advisor in Grimsby

Before diving headfirst into buying a home, it could benefit you most to look at all of your options and see which route benefits you most. Buying a home is a huge financial commitment, you need to be certain that this is right for you and your circumstances. If you decide to rent though it may take you much longer to save up for a deposit.

As a Mortgage Broker in Grimsby, we see that most applicants end up deciding to buy over renting. People see getting a mortgage as an investment and they would much rather see their monthly payments going towards their own benefit rather than someone else’s. It’s sometimes just a case of getting your timing right and also being in the right financial position to be able to proceed.

To see what route could be best for you based on your personal circumstances, get in touch with your experienced Mortgage Advisor in Grimsby. Grimsbymoneyman will hold your hand through the whole renting/home buying process and we will provide our full help and support at all times. We have been doing this for 20 years now, we know exactly how to help you!

Debt Consolidation in Grimsby

Debt consolidation Remortgage Advice in Grimsby: A helpful solution

We know that many people are, to a greater or lesser extent in debt at some point in their lives. Sometimes due to personal circumstances, this can spiral out of control. When this happens, it can feel that once you have paid all your bills at the start of the month, there is little or no disposable income left.

A common route that most applicants choose to go down is a debt consolidation remortgage. As an expert Mortgage Broker in Grimsby, we have chosen to explore a case study on debt consolidation.

Keeping within your limits will help in the long term

Beth had been through a divorce and her children had moved out to start their own lives. Her debt had started to build up with legal bills after her divorce and slowly increased over the years, having to live on one income with unreliable maintenance from her ex. Finally, her daughter became pregnant quite young, and as any mum would, she tried to help her daughter out financially, even though she couldn’t really afford it.

Luckily Beth had paid her mortgage off some years ago so that asset was there to potentially borrow against. Her take-home pay was £1100 per month, and her credit commitments were taking up more than half of this.

She had not missed any payments on credit commitments, but she had no emergency fund, and while Beth’s credit score wasn’t too bad, she was no longer able to obtain new zero% credit cards to transfer her balances.
She was recommended to me to see if there were any options available to improve the quality of her financial life.

A personal loan isn’t always the easiest option

When I met, Beth was feeling quite low. She had cut back on all luxury spending, and it was evident that she was desperate to take ownership of her financial situation before it got any worse.

We explored the possibility of a personal loan, but the debts had mounted too high for that. Beth had no family members who were able to help; downsizing was not an option, and we agreed the right way forward would be to remortgage the house to pay off the debts and reduce her outgoings.

Reliability – a vital trait for lenders

We managed to find a lender to meet Beth’s requirements. Although it has to be said given her low income, it was hard to find a lender who would lend her enough. We managed to get her an agreement in principle, but regrettably, when we submitted the formal mortgage application, it was declined.

The reason the case was declined was that the Underwriter who assessed the situation felt that because Beth had been using cards to pay off other cards and not then closing down the cards. When she had transferred balances, there was a high risk that she should re-offend and rack up debts again.

Beth was devastated. She understood the concerns, but in her eyes, she had accepted she had a problem, and by engaging us had taken a positive step to remedy her position. To her, their risk was minimal – the loan to value was under 40%, she had never missed any payments, and if the remortgage was successful, she could be a whopping £500pm better off.

All the above was indeed correct, but clients don’t always appreciate that taking a property into possession is the last thing a lender wants or needs. It reflects poorly on the numbers they are required to report each year. In the event of repossession, they have the considerable hassle of securing the property, ensuring it, marketing it, selling it, and paying the surplus of equity (if any) back to the previous owner.

As such, if there is reasonable doubt, then an Underwriter has the discretion to decline an application, even if it is within their published lending criteria.

Being declined doesn’t mean failure, you can improve for next time

We pride ourselves on getting our recommendation right the first time. However, this one didn’t work out that way due to the Underwriter’s adverse comments at the full application stage. We knew this remortgage wasn’t as risky as the lender had made out. It ought to be the right outcome for her.

Beth perhaps felt like she wanted to give up. But we went back to the drawing board to find a different lender. Sure enough, we found one and armed with the information we had from the previous lender. We were able to provide better supporting comments for the second roll of the dice. Luckily this time, it was successful.

We’ll keep you on track after you’re back on track

Beth didn’t take this step lightly. She has now secured debt that was previously unsecured and may end up paying back more interest overall. Depending on how quickly she can get the mortgage paid off.

However, in the short term, this has worked well for her. She now has had the burden of debt relieved from her shoulders. Her credit score has improved, and she can save a little each month.

The savings we were able to help her make amounted to over 50% of her net take-home pay monthly. It has changed her life upon completion of the remortgage. Beth cut up all her credit cards except one to use in emergencies only. Now she has now got her financial life back on track.

If you are like Beth struggling with debt but are a homeowner with equity. Please get in touch with us and we will see what we can do. We would rather that you contact us before the situation gets out of hand. The earlier you take back control of your finances the better you will feel about things. We offer debt consolidation Remortgage Advice in Grimsby & surrounding areas along with a free initial mortgage consultation.

Bonus: Debt Consolidation, where does all the money go?

The Importance of Changing Your Address in Grimsby

Mortgage Broker in Grimsby

When you are applying for a mortgage, you always need to know how your credit score is looking before you rush into your application. The higher your credit score, the more likely that it is that you will get accepted for a mortgage. There are lots of different ways to improve your credit score, so if you have a low to medium score, you should hold off applying for now as you may get declined which will also look bad on your file.

One factor that affects your credit score is your address and whether it’s up-to-date or not. Also, the fewer addresses that you have registered to you increases your chances of getting a mortgage. However, we are seeing that people are taking this the wrong way.

Some applicants who have moved out of their parents address into rented accommodation are leaving their bank statements, credit card and electoral roll information registered at their previous address. This is because they think that it’s going to have a positive effect on their application, whereas it will actually harm their score. Even if you have just forgotten to change your address, the information is still outdated, which could go against your application.

Double check before you apply

Before you perform a credit search and apply for a mortgage, you have to check that nothing will go against you. You will need to get all of your accounts (credit cards / current accounts) and electoral roll switched over to your new address. This only really applies to you if you have already moved out of your parents home as when you are moving out to get a mortgage in a new home, you can change your details once you have moved in.

Either way, your address needs to be double-checked before you start the mortgage application process. It’s surprising how much of a difference it can make by having everything up-to-date.

It’s important that you get the dates right too, you need to know the exact date you moved into your rented apartment/new home and the day that you left it. If you do happen to make a mistake with these dates it can appear that you are living in two places at the same time.

Impress the lender

You need to show the lender that you are taking this seriously and you know what you are doing. This is a more open and honest way of doing things which will also benefit your credit score.

If you still require a bit more help or just want an experienced Mortgage Advisor in Grimsby to check everything over for you, feel free to give us a call today; we are available from 7 days a week!

We know that being a First Time Buyer with no mortgage experience can be hard, this is why we are offering you a helping hand, get in touch with Grimsbymoneyman, your local Mortgage Broker in Grimsby today.

Mortgage Advice in Grimsby

Getting Prepared for a Mortgage in Grimsby

Moving Home Mortgage Advice in Grimsby

After saving for years and months, you’ve finally reached the point where you are ready to make a deposit on a property. Whether you have had some help from “the bank of Mum and Dad” or have entirely relied on your own funds, it’s time to get the ball rolling!

This may be your first experience as a First Time Buyer or your second as a Home Mover in Grimsby, either way, we are here to give you some top tips on how to get prepare for a mortgage:

Know where you stand

As a Mortgage Broker in Grimsby, we always recommend in getting Mortgage Advice as early on in the process as possible. This way you will know how much you can borrow for a mortgage and how much it will all cost. There is nothing better than having a professional Mortgage Advisor in Grimsby by your side to help guide you through the whole process.

Obtaining an up to date credit report should also be at the top of your list, you want to know exactly where you stand in terms of your credit score. You don’t want anything holding you back from buying a home. Taking the above two steps will give you a good insight into how possible this is going to be and what your budget is.

Getting organised

Your Mortgage Broker in Grimsby, like us, will be able to obtain a fully credit-checked agreement in principle on your behalf. In order to get this, you will have to provide some proof of who you are to us, this includes your name, where you live and how much you earn. There is a lot of paperwork for you to get together so it’s a good idea to open a file for yourself and start collecting everything in advance.

Proof of ID

In terms of proving who you are you’ll need to produce some photo ID such as a Driving license or passport.

Proof of address

In addition to the above, you’ll need to prove where you live. You’ll need to produce a utility bill or original bank statement dated within the last 3 months.

Last three month’s bank statements

The analysis of your spending habits is one of the most important determining factors in whether you’ll qualify for a mortgage or not. Lenders need to ensure that you’re going to be able to meet your mortgage payments every month. Your bank statements should evidence your income and monthly expenditures. Lenders will not be too happy to see gambling transactions on your account, neither will they like it if you go over an agreed overdraft limit or if your direct debits bounce regularly.

Proof of deposit

You will have to provide evidence that you have the funds in place for the deposit, this is also for anti-money laundering purposes. Try not to move monies around your various accounts too much as it will make evidencing the audit trail much more difficult. All lenders will like to see that your savings account has been built up over time in order to afford the deposit. It shows you are taking this seriously and managing your money well.

Gifted deposits are becoming increasingly more popular, we are seeing that most of our applicant’s 5% deposit is made up of these. These gifted deposits are often gifted by family members or friends. These funds can’t just be handed over, they need to be evidenced; meaning the “donor” will need to sign a letter to confirm that this is a gift and not a loan.

Proof of income

In terms of affordability, the most important thing is to be able to prove your income. If you are employed this tends to be by way of your last 3 months’ payslips and most recent P60. Lenders can take into account regular overtime, commission, shift allowance and bonus. If you are Self Employed then you’ll need your accountant’s help. This will be to request your tax year overview.

A list of your expected outgoings

You should put some time aside to do some research and make a note of an estimate of your anticipated outgoings after you move house. You can work out an idea of how much the council tax and utility bills will be. In addition to that, you can work out your regular expenditures, such as food and drink. This will demonstrate how much disposable income you have available to pay your mortgage from.

When applying for a mortgage, to save things from getting complicated, you should get help off a specialist. Having a Mortgage Advisor in Grimsby by your side could prove extremely beneficial. You want to do your best to impress your lender and show them that you have done all you can within your power to get everything ready for your mortgage application. Grimsbymoneyman can help you with this and depending on your circumstances, we could have everything arranged within 24 hours of your free mortgage consultation. Get in touch today, we can’t wait to hear from you!

Mortgage Advice in Grimsby

Making An Offer On A Property In Grimsby

The basics

Once you are all ready to make your first offer on a property, it is important that the seller or the estate agent knows all about your personal and financial circumstances. Telling them all of your details give you a higher chance of being accepted.

Mortgage agreement in principle

99% of the times, you will never beat a cash buyer, lenders love less paperwork and a quick home buying process, which wouldn’t be the case if they had accepted someone wanting a mortgage. If you can’t afford to go down this route, to improve your chances of being accepted for a mortgage, you should get a mortgage agreement in principle prepared before you make your offer.

Having a mortgage agreement in principle at the ready shows that you have planned ahead and really want to secure this property. Whereas, if you don’t have one, your lender will know that you weren’t prepared and that you aren’t fully aware of how to apply, which could go against you.

This is why approaching a Mortgage Broker in Grimsby could really benefit you during the home buying process. Once you find a property that you are interested in making an offer on, Grimsbymoneyman can quickly get you together with a mortgage agreement in principle. Depending on your situation, we can sometimes offer the same day service.

Don’t give up!

Buying a property is a negotiation process. If your first offer gets rejected, don’t worry, it’s perfectly normal to not be accepted first time round, you will get another chance to increase your original offer.

If your increased offer is also rejected, you may have to raise your offer again to match the asking price. If the property has just been listed on the property market, it’s unlikely that the seller is going to budge from their asking price. If you aren’t prepared to match their asking price, you may have to walk away and start looking for more properties.

To get a rough idea of what you may have to pay for your property, you should check out Zoopla and Rightmove and take a look “sold” prices of houses that are similar to the one that you are looking at. These prices are pulled from the Land Registry so they are reliable and can be used as a comparison.

You will sometimes see that some houses end up selling for less than their actual worth and this is because they could’ve been repossessed, sold to a tenant at a discounted price or an inter-family sale.

Speak to a Mortgage Advisor in Grimsby today

If you are still unsure about how to make an offer on a property and need help getting on the property ladder as First Time Buyer in Grimsby, you should get the help from an expert Mortgage Advisor in Grimsby. They will do all they can in order to try and get that dream home of yours secured.

We are available from 7 days a week, so if you ever have any mortgage questions, you know who to call. Receive a free mortgage consultation today with your expert Mortgage Broker in Grimsby.

Mortgage Broker in Grimsby

Latest Government Guidelines On The Property Market

Mortgage Advice in Grimsby

Coronavirus has put the world on a brief pause, even the mortgage market has been held up forcing everyone’s mortgage applications to come to a temporary halt. However, things are slowly starting to resume to their normal ways and the market is providing some great mortgage/remortgage deals. In fact, interest rates are at some of the lowest that we have seen them in over 20 years. Whether you are a First Time Buyer who was about to start the mortgage process or a current homeowner halfway through Moving Home, now is a perfect time to get the ball rolling again!

The government have just issued some new guidelines in regards to the property market to get it up and running again as we gradually phase out of lockdown. This is positive news.

Property Market

To summarise this week’s position:

• Surveyors are now permitted to go back to work. This is brilliant news as this has been a real sticking point for the past couple of months
• Viewing properties is now permitted but estate agents are being told to encourage virtual viewings online where possible
• Homeowners are permitted to prepare their properties for sale
• Removals companies can start work again
• Trades people can operate in homes again – good news if you are planning home improvements
  

All of the above relaxations are subject to additional specific health and safety guidelines and social distancing.

Mortgage Market

In terms of mortgages at the moment:

• Surveyors have an enormous backlog of work to catch up on so things will return to normal very slowly
• Availability of high loan to value mortgages is still limited compared to pre-Lockdown. Some Lenders have increased their maximum loan to values this week though which is a positive Interest rates are very low so many customers who can get a mortgage are locking in on 5 year deals
• Low loan to value mortgages still readily available – lenders are trying to lend where possible
• Rules on lending to furloughed workers have tightened and some Lenders are pulling back on debt consolidation also
  
  

Things will take a while to go back to how they used to be but for now, we are heading in the right direction. The property market has already shown signs of improvement, for example, you can now buy a house, carry out property surveys, etc. If you are currently looking for a mortgage/remortgage deal, you are in a great position as there are thousands of amazing deals on offer.

Mortgage Broker in Grimsby

Your local Mortgage Broker in Grimsby is here to offer you a helping hand through these tough times for you and your mortgage. A Mortgage Advisor in Grimsby will go above and beyond for you in order to try and secure that 1/1000 mortgage deal that will benefit both your personal and financial situation. We have more than 38 lenders on panel that we can access in order to find you an amazing deal.

By popular demand, we just want to talk about remortgaging for home improvements. People are realising that Remortgaging in Grimsby is not as expensive as they originally thought, in fact it could save you money down the line. You are basically rolling onto another mortgage deal; your monthly payments will go up, however, this could only be by £100-£200 extra a month, plus you’ll get a lovely extension/conversion out of it. Mostly, this applies to current homeowners who are thinking of starting a family or wat to expand their current one.

Are you approaching the end of your current mortgage deal? Do you need another great deal to roll onto? If so, then now the perfect time to approach a Mortgage Broker in Grimsby like Grimsbymoneyman. Once we have all of your details keyed in, we can pass you straight onto a Mortgage Advisor in Grimsby who will provide their full expert help and support throughout the whole of the mortgage process. Contact us today, we can’t wait to help you!

Mortgage Broker in Grimsby

Divorce & Separation Mortgage Advice in Grimsby

Mortgage Advice in Grimsby

No one plans a divorce or a separation when you are buying a house, however, they do happen and things can turn the other way and become complicated. One thing that may turn complicated is your mortgage commitments with your ex-partner. If things do get out of hand and you’re struggling to manage everything on your own, just know that your expert Mortgage Broker in Grimsby is here to help.

Here at Grimsbymoneyman, we have dealt with thousands of specialist cases over our 11 years of working within the mortgage industry. This includes helping our customers overcome their mortgage doubts through a divorce or separation and trying to help them remove their name or their ex-partner’s name off of their joint mortgage. When our clients reach out to us for help with their mortgage and their divorce or separation, we usually get asked the same three questions:

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

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

It can be tricky trying to make changes to your mortgage, especially during a divorce or separation. You have to remember that both yours and your partner’s names are on the mortgage and you can’t just take one off like that.

The situation can get a little more complicated if there are children involved as there are the questions of who will live with the children and will it be in the current or a different home. We usually see that it is the mum that stays in the current household but it can be either. There may come a time that whoever is “in situ” wants to take over the mortgage in their own right. Sometimes, both parents may want a fresh start in new homes of their own.

You need to be aware that even if you are able to prove that you have been paying your mortgage payments without any help from your partner, it will not change that their name is still tied into the mortgage deal. Even if they have moved out and aren’t helping out with any of the payments, their name is still on the mortgage and you need to get it removed.

Removing a name

You can do this one of two ways. You can either go directly to your lender to ask about removing a name by yourself or get the help of an expert Mortgage Broker in Grimsby, like Grimsbymoneyman. Either way, they will have to be certain that the remaining applicant on the mortgage will be able to afford a mortgage on their own in the future. The way that this will be checked is through an affordability assessment, you will have to take one of these regardless of whether you have been keeping up with your mortgage payments or not.

Normally, during this point in the process, there is already someone who can step in and replace the ex-partner. This is typically a family member, friend or another partner.

You need to remember that every lender has their own unique way of assessing your affordability so don’t worry if your current lender says no. There are other options available, for example, you should approach a Mortgage Broker in Grimsby, like us who will try their absolute best to help you!

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

Removing your own name is similar to removing someone else’s, the basic ground rules apply for both. Firstly, both of your names are on the mortgage, so even if you decide to leave the family home, you are still responsible for any joint financial commitments you took out with your ex-partner. The only way to get your name off the mortgage is by going directly to your lender or with through the help of a Mortgage Broker in Grimsby.

The mortgage payments for your old property will be taken into consideration if you want to buy a new property in the future so it is important that you take this into consideration before making an offer. This is why we always recommend getting help from a professional Mortgage Advisor in Grimsby.

Before you make an offer in the future, you must consider that your mortgage payments for your existing property will be taken into account. This is why we advise that you get Specialist Mortgage Advice in Grimsby; you may have forgotten this and your income may have changed meaning that you can’t really afford a mortgage as of yet. If you apply and get declined, you could potentially leave a negative effect on your credit file.

You will always find that some lenders are stricter than others which will affect how much they will lend you. If you come to us for Mortgage Advice in Grimsby, we will take this into account when recommending the most suitable lender to apply for a Mortgage Agreement in Principle with.

Can I have 2 mortgages?

Yes, you can have multiple mortgages and even more than two if you want! Lenders and their credit scoring systems will take different factors into account when you apply for a second mortgage. One of the main deciding factors will be your current financial commitments. If you still have ongoing commitments and you fail the lender’s affordability assessment, you could potentially damage your credit score. This is why we always recommend that before you apply directly with a lender you should go to a Mortgage Broker in Grimsby.


A Mortgage Broker in Grimsby, like Grimsbymoneyman, can perform a search for you without damaging your credit file to check whether you will be able to afford a mortgage. We can calculate your maximum borrowing capacity which can allow us to get an idea of your budget and how much your monthly mortgage payments are going to be on top of your current financial commitments.

Having an expert Mortgage Advisor in Grimsby by your side through every step of the way could prove highly beneficial. Moving Home can already be stressful enough! An Advisor will be available to answer any questions that you may have along the way and be recommending you with the best route to take at all times. We want the best for you through these tough times! Contact your local Mortgage Advisor in Grimsby at Grimsbymoneyman today and receive a free mortgage consultation!

Specialist Mortgage Broker in Grimsby