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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 on a property in Grimsby‘ 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.
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.
As a Mortgage Broker in Grimsby, we often have first time buyers in Grimsby 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 mortgages in Grimsby 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 in in Grimsby 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 in Grimsby 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 in Grimsby or your second as a home movers 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 in Grimsby 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!
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.
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.
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.
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.
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?
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.
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!
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.
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 in Grimsby 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!
The majority of people will perhaps not even consider taking out a second mortgage. As it is, one mortgage can stress people, nevermind having a second one! Furthermore, it can also be even more costly to do so as well.
That being said, surprisingly, they are still pretty common with homeowners. Here are a selection of reasons as to why someone may wish to invest in an additional mortgage.
Quite often, people who have built up a portion of equity within their home may find that they would like to make some additional changes to their home. This isn’t a second mortgage in a sense of having two run alongside each other, but more of your second go around.
In order to release equity, you will need to remortgage from your current deal, onto a new one. We most frequently see people using the equity within their home to cover the costs of things like home improvements, modifications or alterations.
Additionally, whilst releasing equity can be an option, you may also be able to use your equity in other ways. Some may release it to fund the deposit of an additional purchase, whilst others may use the equity in their home to open themselves up to better deals.
The process of renting out your existing property in order to raise the funds to purchase a new home, is called a let to buy mortgage in Grimsby. This requires remortgaging your existing home onto a special let to buy mortgage, whilst you take out a new residential one.
We are starting to see more and more first time buyers taking out first time buyer mortgages in Grimsby and getting onto the property ladder, though there are still plenty out there who are finding it difficult. It’s not an easy transition to go from renting to buying!
One of the bigger factors we have seen in younger people doing this, is by having the help of a family member. Gifted deposits is the act of gifting money, either from savings or from the aforementioned remortgage to release equity, to a family member, to help them achieve their home buying goals.
In addition to this, there may also be the option of simply purchasing a new home for your family member to live in. For this to work, the mortgage would be taken out in your name, making it a literal second mortgage, though you would not be living there.
A mortgage lender may prefer you to live in a residential property you are going to be paying for, though there are mortgage lenders who will allow this. In order to have two mortgages running side by side, you will need to meet a mortgage lenders strict lending criteria and affordability requirements.
If you are already a landlord with a buy to let mortgage in Grimsby, you may be looking at expanding your investments into even more properties. The good news is that this is very common, with many landlords owning more than one property.
We have helped thousands of buy to let landlords over the years, securing them amazing buy to let mortgage deals and forming relationships, that see many of them returning for remortgages and additional purchases.
Book online and we’ll get the ball rolling on any further buy to let mortgages in Grimsby you are looking at taking out.
If you are currently named on another mortgage but do not want to be financially tied to another person anymore, you may be considering your options. This scenario is common with divorce and separation. In this case, you need to remove the financial ties as soon as possible.
You can achieve this by either yourself (if you’re planning to stay in the property) or your ex-partner (if they are staying within the property) remortgaging into your sole name. This has to be done with the consent of the other party.
If the mortgage lender determines that one party cannot afford the current mortgage in their sole name, you may not be able to get your name removed from their mortgage. As such, you will still be legally responsible for it, even if you agree that only one of you will maintain payments.
From here, you may want to purchase a home of your own, in your name. Though it can be tricky with affordability, there are specialist mortgage lenders who are willing to help customers who are looking to have a second mortgage in their name due to this circumstance.
Book your free mortgage appointment today and benefit from expert specialist mortgage advice for specialist mortgages in Grimsby, today.
Whether you’re a first time buyer in Grimsby looking to step onto the property ladder or someone who’s moving, you’ll soon discover that there’s a diverse array of mortgage types available. Some are widely known and readily accessible, while others are more niche. To help you better understand the variety of mortgages at your disposal, we’ve compiled a list of the most common options offered by lenders. We’ve also created informative videos for each mortgage type to make them more comprehensible, as some can initially appear quite complex.
A fixed-rate mortgage is quite straightforward. With this type of mortgage, your monthly payments remain constant for a predetermined period that you agree upon with your lender. Typically, people opt for fixed-rate mortgages with durations of 2-5 years, but you can choose longer terms, such as 10 or even 15 years.
It’s essential to consider that long-term fixed-rate mortgages lock you into the same payments for an extended period, and significant changes can occur over 10 or 15 years. The economy and interest rates are unpredictable over such extended periods. To potentially save money in the long run, opting for a 2-year fixed-term mortgage and renewing it with a different rate every 2 years could be a more flexible and advantageous approach.
A tracker mortgage is where the interest rate closely mirrors the Bank of England’s base rate. Unlike fixed-rate mortgages, the lender doesn’t set the interest rate but ties it directly to the Bank of England’s rate. Your interest rate is usually expressed as a percentage above the Bank of England base rate. For instance, if the base rate is 1% and your tracker mortgage is set at 1% above the base rate, your effective interest rate would be 2%.
During periods of high Bank of England interest rates, lenders may be less inclined to offer tracker mortgages since they can result in higher interest payments for borrowers. Fixed-rate mortgages tend to be more popular in such circumstances because they provide stability and protection from rising interest rates. If you choose a tracker mortgage when the Bank of England rates are high, it may lead to higher mortgage payments over time, which might not be suitable for borrowers seeking predictability and affordability.
When you have a repayment mortgage, you’re making monthly payments that cover both the loan’s interest and principal. If you consistently make these payments throughout the mortgage term, you’ll ensure that the loan balance is fully paid off, and the property becomes entirely yours.
Repayment mortgages are the most secure way to repay the borrowed capital. In the early years, the majority of your payments go toward interest, causing the balance to decrease slowly, especially if you’ve chosen a longer-term mortgage, such as 25, 30, or 35 years. However, this pattern changes in the last decade of your mortgage, where your payments start to pay off more of the principal than interest, resulting in a quicker reduction of the remaining balance.
While many buy to let mortgages in Grimsby are commonly structured as interest-only, obtaining an interest-only residential property mortgage has become considerably more challenging. Lenders are now less inclined to offer interest-only products. However, there are specific situations in which this option may still be available.
Such situations include downsizing in later years or having alternative investments earmarked to repay the principal. Lenders have become much stricter in their criteria for offering these products, and the loan-to-value ratios are significantly lower than in the past.
An offset mortgage involves the setup of a linked savings account alongside your mortgage account by the lender. The concept is simple: if you have a mortgage balance of £100,000 and maintain £20,000 in your linked savings account, you only pay interest on the reduced amount, which is £80,000 in this scenario. This approach can be highly effective for managing your finances, particularly if you fall into a higher tax bracket.
Whether you are a first time buyer in Grimsby searching for a perfect home or current home-owner wanting to move house, we can help! You may be looking to remortgage, interested in buy to let mortgages, need mortgage advice in Grimsby. Guiding you through these situations is what we do best and it is our service to you as our consumers.
Everyone goes through a tough mortgage situation in their life. You may be faced with mortgage hurdles as a first time buyer in Grimsby or as a home mover in Grimsby. You may even encounter a problem through something else, they always come about and they can be hard to tackle if you don’t know what you are doing.
This is where your local Mortgage Broker in Grimsby steps in to help you through the process. We want to take the stress off of your shoulders and offer you a helping hand to give you that boost you need to get you back on track with your mortgage. It doesn’t need to be as difficult as it is made out to be. Here are some of the mortgage hurdles that you could come across whilst trying to get a mortgage in Grimsby:
It’s very unlikely that you will be turned away by a lender due to you having children. The lender will consider your childcare costs by reducing your first mortgage offer. This offer will be lower than what they offer competitors who hold an equal amount of income to you but don’t have children.
However, sometimes lenders could take factors like child benefits as a negative and this could actually affect the maximum that you can borrow.
Following a divorce or separation, things can get complicated very quickly with your mortgage. This is why we don’t want you to go about it on your own. We want to help you, a Mortgage Advisor in Grimsby will give you Specialist Mortgage Advice and help you through these tough times. We get asked the questions regarding divorce and separation all of the time:
You can do all of these but it will be hard to go about it all by yourself. This is why we recommend speaking to a specialist Mortgage Advisor in Grimsby like us. We can sort everything for you and make the whole process less stressful for you. All we want is for you to be at ease and feel comfortable during this difficult time, we would love to offer a helping hand!
We always get applicants coming to us asking whether they can get a mortgage as they are starting a new job. You can, however, lenders prefer you to be a stable job rather than just starting one. If you have signed a contract with your new employer and a job offer letter, you are more likely to be able to get one as you can prove to your lender that you have the job secured and they can see the start date etc.
What about probationary periods? Lenders are often quite relaxed when it comes to this. They are more concerned about gaps in employment.
For anti-money laundering purposes, lenders need to confirm exactly where you have got/will get all of your money from. They will start with your deposit and until you can prove where you have got your money for the deposit from, they can’t continue the process. Your solicitor and the estate agent will also ask for you to evidence whereabouts your money has come from.
Be careful when depositing large amounts of cash as lenders are put off by it unless you can prove where it has come from. We recommend getting a receipt for every transaction just to be safe.
We get lots of cases where a customer has come to us and said: ” I have a gifted deposit, can I use it?”. Yes, you can apply it to your mortgage as part of or all of the 5% initial deposit. Remember, the family member or friend who has given you it needs to prove where the money has come from. They will also have to produce ID and confirm in written form that is a gift and not a loan. You can find out more about gifted deposits here and how much you need to put down a deposit here.
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UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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Grimsbymoneyman.com & Grimsbymoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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