Starting the journey towards your homeowning goals as a First Time Buyer in Grimsby can be an exciting but stressful experience, in particular, for those who have little to no knowledge or experience of it. The good news is that you are not only one, there are plenty like you who are going through this processor the first time. As a mortgage broker in Grimsby, we recommend that you are as organised as you can be to help you through the process. Let’s look at the house-buying aspect of this process, below are 9 questions to ask when buying a house for the first time.
If you are interested in a particular property, it’s good to have a think before pursuing as this is a big financial commitment and is one that will impact your financial background.
One thing you need to be aware of is the amount of interest the property has. Not only does this give you a rough guideline of how long you have of the thinking process. For example, if your desired property has a lot of interest, it’s best to come to an answer pretty quickly.
A property chain occurs when there are a number of transactions happening at once for every sale and purchase to be completed.
If the property is in a chain, this can have a large impact on certain stages of the mortgage process.
If there is no onward chain which can happen with new homes, situations involving bereavement or emigration, this can potentially speed up the moving process especially if you are not part of a chain yourself. As a buyer who doesn’t need to sell your own property first can be a huge advantage from the seller’s view as you won’t be interrupting the home-buying process.
This is something you should put across when negotiating as it can put you in a better position than other interested buyers.
You may find that when you move into your dream home, the previous owner has left them with previous items behind. This can be really helpful for you if the property already has electronic goods like washing machines, fridges, freezers or things like sheds that have been left by the next occupant. Keep in mind that this doesn’t apply to new build properties as they come as standard or agreed upon prior to being built.
Neighbours are something else you may need to factor in as a good or bad neighbour can be the deciding factor in you living in the property. This can be more of an important factor if you are new to the area you are moving to. Moving into a new build property can be risky as it will be the job of both you and your neighbours to build the community meaning you won’t know anyone until you move in.
In terms of the running costs, this all comes down to the house and the location meaning it’s helpful to research and ask the right questions. Aspects to research include the cost of Council Tax as well as the average spend on utilities both of which can be done by either doing your research or asking the seller. Knowing these expenses can help towards working out your budget for each property.
One of your deciding factors may be the direction the property faces as many enjoy relaxing in the garden in late summer nights or reading books in natural light. South-facing gardens usually come with a large premium to pay as you will receive the most sun throughout the day.
Looking at the work that may be done can play a significant part in your budget. Below are some things you may want to think about:
The beginning of the process starts with negotiating a property price. Keep in mind that you are as prepared as you can be to put an offer down on a property that you like. Our ‘How to Make an Offer‘ article is a brilliant tool if you are looking at improving your skills on this. When you are ready to go, you can then start negotiating.
In the case where your offer is too high or too low, it’s good to get in touch with the seller or estate agent. By doing this, you can get an idea of any other offers that have been made and rejected before your offer.
Getting a date in the diary of when you’re moving can allow you to organise any other tasks to do before this deadline. Therefore, tasks like instructing a conveyancing solicitor, packing your belongings and organising a removal van to transport your belongings to the new property will need to be sorted.
Obtaining a mortgage in Grimsby occasionally be quite challenging, especially for those who have never done so before. There are hundreds of different mortgage lenders out there all with their different lending criteria that you need to match up against.
We have been working within the mortgage industry for well over 20 years now, learning in that time the best ways to help a customer save both their time, and their money. After all, customer satisfaction is at the heart of what we do.
As a trusted and experienced mortgage broker in Grimsby, we have the knowledge to overcome most mortgage hurdles. We love taking on a good challenge, so even if it’s a situation we haven’t directly come across, it’s likely we’ll have gone through at least something similar before.
We specialise in providing expert Mortgage Advice in Grimsby. No matter if you are a First Time Buyer in Grimsby, looking at Moving Home or wanting Self-Employed Mortgage Advice in Grimsby, we are here to help you in any way we can!
Whilst it can go fairly smoothly for some, there are instances where obtaining a mortgage may become a challenge.
Our dedicated team of mortgage advisors in Grimsby will always work hard, using their knowledge to overcome as many mortgage hurdles as we can. Below we have put together a list of the most common situations we encounter with customers who are struggling to be accepted for a mortgage.
A mortgage lender will always want to know that you have a suitable income and are able to afford the monthly repayments on your mortgage. They will perform affordability checks, reviewing your income and outgoings, to make sure that a mortgage is right for you.
If a mortgage lender isn’t willing to accept you for a mortgage on the amount you need, you may need to look at putting down a higher deposit. Doing so will reduce the amount you need to borrow, possibly allowing for lower monthly repayments over a longer term.
Relating to the previous point, you may not be able to save enough for the initial deposit. Generally speaking, you will need between at least 5-10% to be in with a shot at obtaining a mortgage, though if you can go higher, this would be recommended.
The reason we recommend a higher deposit, is because it can open you up to much better deals, with a wider variety of mortgage lenders. Doing so will put you in a much better position than you otherwise would be.
Unfortunately not everyone can save the right amount, which will obviously put a halt on plans for the foreseeable, until that amount is saved. There are a few saving graces though, especially for first time buyers in Grimsby.
The first of these is the Bank of Mum & Dad, otherwise known as a gifted deposit. This is a gift, donated from a family member (typically parents, adopted parents, carers or legal guardians), allowing their loved one to get onto the property ladder.
This is an increasingly popular option, being a large factor into so many young people getting onto the property ladder these days. You must remember though that this is gift and not a loan, something which the lender will need to see in writing, along with proof of deposit.
The other helpful tool for first time buyers, is the government Help to Buy Equity Loan Scheme. The aim of this scheme is to boost a first time buyers deposit up to 25%, with a loan from the government.
So long as you have saved up 5% by yourself, the government will loan an additional 20%. This works within that 25% amount, so if you have 10%, they’ll loan you 15%. This too is a loan, and will need to be paid back.
Not having enough deposit initially can create challenges, but with the right help you may be able to still obtain a mortgage, especially if that is the only hurdle in your way and the rest of your case looks fine.
Credit score is one of the biggest factors in obtaining a mortgage. Whether it’s from a poor track record of handling credit, obtaining defaults and missing payments, or from simply not having enough of a credit score (common in younger applicants), this can present challenges.
We have a large panel of specialist lenders on panel, so even if your case is a little more complex, there may still be mortgage options for you, though they will often require a more substantial deposit from you, closer to at least 20%.
It’s not just things like defaults and missed payments that affects your credit score, as there are other aspects that may affect that also. Making sure all your addresses are in line is a common one some applicants forget about.
You should update all addresses to your current address and register on the electoral register, so that lenders are able to confirm you’re living where you say you are. Also, avoid applying for too many mortgages yourself, without speaking to an expert.
If you are applying for mortgages by yourself and constantly getting declined, this can seriously harm your credit score. There is the potential that one of these mortgage lenders will have been assessing you using a hard credit score.
A hard credit score, unlike a soft credit score, is a lot more in-depth but also leaves a visible footprint on your credit file. A mortgage broker in Grimsby will match you up with the right lender, so you don’t run the risk of this happening.
As an experienced and reputable mortgage broker in Grimsby, we have lots of valuable experience and we know exactly what lenders are looking for in mortgage applicants.
We can talk you through some simple steps you can take to improve your chances of your mortgage application being successful.
These steps can be very simple and easy to do. Speaking to an expert mortgage advisor in Grimsby could get you a couple of steps closer to securing a mortgage deal.
Book your free mortgage appointment today and we’ll get the ball rolling on achieving mortgage success for you and your future home.
Your credit score is something that plays a significant factor in the process of submitting your application. This is because the likelihood of your application being successful lies in how high your credit score is. In some instances, this may not be the case because it is down to how the lenders go by their internal scoring systems.
Each lender’s criteria is data-driven and, it will develop over time. There is no need to worry if you have been unsuccessful with one lender as they will be more lenders who may be more accepting. Our mortgage advisors in Grimsby might be able to match you with the right lender so, get in touch so we can strive for the same thing you want- to get the best available deal.
There are a plethora of credit reference agencies within the UK with the most popular being Experian and Equifax. It’s best that you look into as many of these agencies as possible prior in order to get a more generalised overview. Check My File is a platform we suggest our customers use. It collates data from major agencies, including the aforementioned two, which then provides our customers with a broader view of how your credit score is performing. When you sign up, you will have a 30 day free trial on the platform then this will become a monthly fee of £14.99, however, your account can be canceled at the end of the trial.
Below are some ways you can improve your credit score:
Carrying our multiple credit searches can have a detrimental effect on your score. The first thing you need to do when you have registered with one of the credit reference agencies is not to start applying for new items of credit. A simple search of comparing car insurance on a price comparison website can register unwanted credit searches.
Applying for more credit later can be a wise decision if you’re applying for a mortgage anytime soon. Borrowing credit and paying it back later works out in the long run and lenders don’t want to see this just before you apply for a mortgage application.
A way to increase your credit score in a significant way can be to update your address and enlisting yourself on the electoral roll. By doing this you can give a good sense of stability and organisation, which lenders are impressed by. Make sure all information is correct .e.g. your name and your current address. You can register online if you aren’t on the voter’s roll.
Maxing out your credit each month is something you make sure you don’t do. This will reduce your score,therefore, it’s best to keep consistent with your payments each month. This way you can get in the lender’s good books as it shows you are responsible and can manage your money.
Exceeding an agreed card limit or overdraft can be a deterrent to a lender. This is because lenders want to know you’re taking your finances responsibly hence why they look over it.
Updating your details with your providers is important as it can sometimes appear that you’re living in two addresses at once.
You need to make sure that the addresses that you detail are correct. It can be difficult in terms of formatting if you live in a flat.
Getting in contact with the providers of the credit cards which you no longer use to close the accounts can provide you with extra security. Initially, it might have an effect as lenders wouldn’t be able to find who closed the account .e.g. you or the provider.
This will help you in the long run and reduces the risk of being a victim of fraud.
Removing any previous financial links with people like your family members or ex-partner can improve your credit score. As long as the financial association is still active, then the account will always remain in operation.
In order to remove this financial link, it’s best that you contact the reference agencies and make a request. The quicker you get this done, the more beneficial it will be.
Credit scoring can be seen as an unfair way for applications to get assessed by many consumers. The lender, however, sees this as a way to make their job easier but following these tips will help improve your credit score over time.
An up to date copy of your credit report is something you can give to your specialist mortgage advisor in Grimsby in order for them to have a detailed idea of your financial situation so they can then recommend you the most appropriate mortgage for your circumstances.
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.
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.
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.
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?
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.
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.
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.
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.
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.
A 95% mortgage is as simple as the name would suggest; you are borrowing against 95% of the price of a property, and then you are covering the remaining 5% with your deposit. An example of this is if you looked at buying a property that was worth £150,000 with a 95% mortgage, you would be putting down £7,500 as your deposit and borrow the remaining £142,500 from the lender.
Off the back of the March 2021 Budget, Boris Johnson announced a Mortgage Guarantee Scheme for mortgage lenders, making 95% mortgages more readily available from the bigger high street banks.
This is fantastic news for First-Time Buyers and Home Movers alike, as this scheme will continue running until December 2022. Certain terms and conditions will apply though, which is something your Mortgage Advisor in Grimsby will be able to look at, to see if you qualify.
All our customers who opt to Get in Touch will receive a free, no-obligation mortgage consultation where one of our dedicated mortgage advisors will be able to make a recommendation on the best possible route for you to take.
95% mortgages are usually accessible by both First Time Buyers in Grimsby & those who are Moving Home in Grimsby. Whilst saving for a 5% deposit sounds like a pretty straightforward concept, you’ll still need to have an acceptable credit score and prove that you are able to afford your monthly mortgage repayments, in order to access a 95% mortgage.
A good credit score is essential in the process of obtaining any mortgage, especially a 95% mortgage. Things like paying any current credit commitments on time, ensuring your addresses are updated and checking that you’re on the voters roll, can all help with your credit score.
Affordability is another one that is important to take note of. By giving the lender details of your income and monthly outgoings (things like your bank statements will be necessary for this) and any pre-existing credit commitments, your lender will be able to get a general overview of whether or not you are able to afford this type of mortgage.
Nowadays we see lots of family members helping each other get onto the property ladder, especially parents looking to further their children’s lives. The way this usually happens is by gifting the person looking to find their home, the deposit required. Known through the industry as the “Bank of Mum & Dad, Gifted Deposits are only intended to be a gift, and not as a loan. The lender will need proof that this has been agreed upon before it can be used towards your mortgage.
When looking for a 95% mortgage, you want to make sure you have the right type of mortgage. Each mortgage type works differently, with that choice allowing you to find one that is most appropriate for your personal and financial situation.
Some homeowners and homebuyers prefer Fixed Rate or Tracker Mortgages, mortgage types which mean you either keep interest rates at a set amount for the term given or have your interest rates tracking the Bank of England base rates.
Alternatively, you might find that Interest-Only or Repayment Mortgages are more your style. Interest-Only allows cheaper payments until you need to pay a lump sum at the end (mostly now used for Buy-to-Lets), whereas a Repayment mortgage (a normal mortgage if you’d like) means you’ll be paying interest and capital combined per month.
Seeing as a mortgage is such a large financial outgoing, you need to be prepared and need to be aware. You might find things like higher interest rates, remortgaging difficulties due to less equity and then negative equity all cropping up if you’re not.
There is no need to worry though, as all these can be avoided if you’re savvy enough with your process to begin with. The more deposit you put down for a property, the less risk the lender will see you as.
A larger deposit, of say 10-15%, would not only reduce the rates of interest by a noticeable amount but would also give the property more equity and reduce the risk of negative equity, thanks in part to you borrowing less against the property.
So, whilst the risks may seem intimidating, planning ahead and saving for a bigger deposit to access something like a 90% or even an 85% mortgage will be a massive help in your mortgage journey and something you’ll be able to reap the rewards from in the future.
Today, we find that most schools only offer newly qualified teachers (NQT’s) a 12-month initial contract as standard. Therefore this becomes an issue for any teachers looking to get onto the property ladder. Most of the high street mortgage lenders will see them as being a “contract worker”.
Due to this factor, taking out a mortgage as a teacher will require you to have been in your role for 12 months. Luckily, some smaller lenders are understanding towards these circumstances and may consider your application without a 12-month history.
If you are a newly qualified teacher and would like to discuss your mortgage options, then please do not hesitate to get in touch and we will book you in with an experienced mortgage advisor in Grimsby. Whether you are a first time buyer, a home mover, or looking to remortgage, we will do our best to help.
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:
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:
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 find out more information on the official government’s website: https://www.gov.uk/affordable-home-ownership-schemes/shared-ownership-scheme.
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.
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!
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.
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.
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.
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.
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.
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.
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.
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!
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.
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.
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.
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:
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.
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.
In terms of proving who you are you’ll need to produce some photo ID such as a Driving license or passport.
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.
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.
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.
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.
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!