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Gifted Deposits FAQ’s | Mortgage Advice in London

Gifted Deposit Explained | Mortgage Advice in London

During our time as an open and honest Mortgage Broker in London, we understand that sometimes scraping together a deposit, is one of the biggest hurdles for a First Time Buyer in London to get onto the property ladder.

We tend to find, parents, grandparents and on rare occasions, even friends who want to help the ones they care for get onto the property ladder. They’ll provide either a portion or the entire amount of the deposit to put down on a property and obtain a mortgage. Find out what gifted deposits are and how they work.

What is a gifted deposit?

A gifted deposit is money given by parents, grandparents, or friends to a homebuyer to use towards your deposit to put down on a property and obtain a mortgage. It can either be a portion or the entire amount.

The money given isn’t a loan and gifted deposits are given to you with an understanding that the money doesn’t need to be repaid.

How can gifted deposits help out? 

Gifted deposits are helpful to First Time Buyers in London. Mainly those who are financially capable of covering their mortgage repayments, but struggling to save up for the initial deposit.

We tend to find, that these situations happen quote often. Perhaps they’ll have larger outgoings, such as rental payments, home energy bills, and essentials. That there isn’t anything else left to put into savings for a deposit.

By receiving a gifted deposit, this will allow you to gain access to much better rates of interest during your mortgage process, especially if that gift is above the minimum 5-10% deposit requirement.

Who can gift the deposit? 

As we’ve said, it’s mainly parents or carers who can gift you the deposit. This is often discussed online using the terminology “Bank of Mum & Dad”, don’t let the name throw you off this can include adopted parents too.

Sometimes other family members may also be able to help out with a gifted deposit. Though this entirely depends on the mortgage lender that you end up with. That’s why it’s worth getting in touch to speak to a Mortgage Advisor in London beforehand.

Do your parents know you need help? 

We often hear back from customers who have no idea their parents can help with their mortgage! This is why we aim to inform and encounter more people to ask for some extra help, so more people can get a chance to get onto the property ladder.

The majority of parents are more than happy to help their children to find a home of their own, comfortably living as opposed to struggling whilst living in a rental property.
 
In some areas taking out a mortgage may save you more money per month than you would get from renting, of course, this depends on several factors, but in some circumstances, it can happen.

Gifted deposits can come from inheritance, although parents can sometimes gift it much earlier if they have enough money saved or have released equity from their own home.

Gifted Deposit vs Loans 

Some mortgage lenders out there won’t accept loans as a means of paying off your deposit. It will be often related to the lender not being so sure if you can afford to pay back both simultaneously.

Is there a maximum or minimum gifted amount? 

There are no limits to the amount that can be gifted to a home buyer, it’s worth remembering that some lenders will want you to have a minimum of 5% from your own savings.

The more you can afford to put down, perhaps combining savings and gifts, you’ll open yourself up to better deals. 

Who could benefit from a gifted deposit? 

We tend to find, that it’s normally First Time Buyers and Home Movers in London who will benefit the most from the gifted deposit.

A gifted deposit can be used to cover the initial 5% deposit for the Help to Buy Equity Loan Scheme. However, this will depend on the lender.

What proof is required? 

Your donor will need to sign a gifted deposit form stating that it is not a loan and is in fact a gift. Additional proof such as ID, address, and bank statements will be required.

Our Mortgage Advice Service in London 

As a fast and friendly mortgage broker in London, we aim to provide our customers with the highest level of customer service, through a fast and friendly Mortgage Advice in London service.

No matter your mortgage situation. When someone gets in touch with us for Mortgage Advice in London, we will consider all cases, no matter how complex, and try our best to find a resolution.

Book Your Free Mortgage Appointment 

A trusted and experienced Mortgage Broker in London is available seven days a week, from early on until late. Our Mortgage Advisors in London will be ready and waiting to offer their support at all times.

Book your free mortgage appointment today with an expert mortgage advisor in London and we’ll see how we are able to help you on your mortgage journey. 

 

 

Our 10 Step Home Buying Guide for First Time Buyers in London

We tend to find a lot of customers asking us about the process of being a First Time Buyer in London when buying a home. Below we put together an extensive list of the 10 steps that you will go through during the mortgage process. We want to make sure that you are in the best possible position to get you prepared for your mortgage journey.

Here are the 10 steps to the home buying process and to obtaining a mortgage;

Step One: Get in Touch for Your Free Mortgage Appointment

Now, it’s time to purchase a home and take out a first time buyer mortgage. Getting onto the property ladder will be one of the biggest financial decisions you’ll ever make. The entire experience can be a bit daunting, especially when you have had no experience before.

With the help of a dedicated Mortgage Broker in London, we’ll be able to help you along the process. We aim to take the stress away from you and work hard to ensure you come out with a suitable mortgage deal.

To speak with one of our qualified Mortgage Advisors in London, book your free mortgage appointment today. They’ll take a few key details and look at what you’re hoping to achieve, before starting your process.

Step Two: Mortgage Affordability Assessment

During your free mortgage consultation, we’ll be able to run through a Mortgage Affordability Assessment. Our Mortgage Advisors in London will go through your monthly income and regular expenditures, to determine whether or not you can afford the monthly repayments of the mortgage amount you’re looking to borrow.

The reason why doing an affordability assessment is essential before putting your application forward, with a lender, is because they need to be confident that you can afford your repayments. By avoiding the risk of arrears and potential future repossession, something the lender will desperately want to avoid.

A Mortgage Affordability Assessment is something the lender will usually check themselves, so our initial check will help save the time of the lender, ourselves, and more importantly you, from an application that may be declined due to failing on affordability. 

Step Three: Obtaining a Mortgage Agreement in Principle

During your consultation, you will be able to obtain a Mortgage Agreement in Principle. Which can help give First-Time Buyers in London a boost when making an offer on a property.

You may have seen this under a few different, but similar names. These include ‘Decision in Principle’, ‘Mortgage in Principle’, as well as the abbreviations ‘DIP’ & ‘AIP’. There is no difference between these, other than the name.

The purpose of a Mortgage Agreement in Principle is to document that you have passed a lender’s initial credit scoring system, either via a hard credit search or a soft search.

However, this does not guarantee you will be accepted on a mortgage but is a necessary document to have. Having an A.I.P. will show the seller of a property that you are serious buyer, possibly creating a possibility for price negotiations.

An A.I.P. can last anywhere between 30-90 days, and can easily be renewed once expired. Our Mortgage Advisors in London can usually get one of these turned around for you within 24 hours of your initial appointment.

Step Four: Finding the Right Solicitor

Following your Agreement in Principle, you will need to find yourself a Conveyancing Solicitor to help you with the legal proceedings of the homebuying process.

Your Conveyancing Solicitor will be able to handle; Contracts, provide any legal advice, conduct local council / authority searches, deal with the Land registry, and transfer the funds you have acquired to pay for your property. As you can see, you must make sure you can choose carefully.

Also make sure to note that Licensed Conveyancers are property specialists who can’t deal with complicated legal issues, whereas more general Solicitors offer a full range of services so can often seem more expensive.

Sadly, whilst we do not offer these services ourselves in-house, our dedicated Mortgage Advisors in London can refer you out to someone to is.

Step Five: Making an Offer on a Property

After speaking to a Mortgage Broker in London, passed the Mortgage Affordability Assessment, obtained an Agreement in Principle, and found yourself a Conveyancing Solicitor to handle the legal side of things. You’re now halfway through the process, next it’s time to make an offer on the property you wish to purchase.

With an Agreement in Principle, you will be in a much better place to negotiate on price. With the seller knowing that you have an AIP they may be more likely to sell to you than someone who is willing to pay the asking price but is unprepared. But this isn’t a guarantee.

Worst-case scenario the seller rejects your offer, you can work out a more reasonable offer or find yourself another property. If your offer got accepted, get back in touch with your Mortgage Advisor in London, and they will continue with your mortgage journey.

Sixth Six: Submit Your Documents  

Make sure to submit the required documents. Your lender will need you to provide various documentation, including the amount you earn from your job, where you live, and how you conduct your finances, are very important to the lender.

If you’re obtaining a joint mortgage, they will require this documentation from both candidates involved. The several types of documents you will need to submit, include; 

  • Proof of ID and proof of address
  • Last 3 months’ pay slips
  • Latest P60

As for self employed applicants in London you will need to provide; 

  • Proof of any income such as state benefits or maintenance
  • Proof of deposit
  • The last 90 days’ bank statements

Step Seven: We’ll Progress Your Mortgage Application  

With your mortgage agreed in principle, and your offer accepted, your Mortgage Advisors in London can now proceed to submit your full mortgage application. Having everything checked and ready by your Mortgage Advisor in London and Administrators, we are ready to submit an application to the lender for a mortgage.

Your Mortgage Advisor in London will send off all the gathered documentation for this, and then wait for them to respond with whether or not the application has been accepted or declined. Sadly, there is no given time frame, however, our Mortgage Administration team will be able to chase the lender for an answer on this for you.

Step Eight: Property Valuation / Survey  

During the process, the lender will require a valuation survey of your property to be undertaken. These are usually carried out by the lender’s choice. The valuation is to help understand the true value of the property.

If you’re paying above its actual market value, the lender may be less willing to accept your offer. Because they’ll be out of pocket and unable to make back the full borrowed amount. This terminology is also known as a ‘Down Valuation’.

Your Mortgage Advisor in London will be able to help you choose the right survey for you. Each surveyor comes with a different price. Some will just want to check the property’s worth, whereas some will also provide information on any structural concerns as well as possible repairs.

Step Nine: Receiving Your Mortgage Offer  

Once your lender has checked over your case and assessed all the evidencing documentation, they will present you with your Mortgage Offer.

Our team of Mortgage Advisors and Administrators in London will make final checks to make sure nothing got missed. Next, it’s down to your Conveyancing Solicitor to take your purchase through to completion.  

Step Ten: Completing The Process  

Now for the exciting part, you’ve now officially went from a First Time Buyer in London to a homeowner. By now, we hope you are happy and ready to begin your new life, in your new home.

Just have to wait for the key and moving-in date. We hope you found our service beneficial and received a fast and friendly Mortgage Advice service in London. If you have chosen a fixed-rate mortgage, at the end of your term, we will be in touch to help out once again with your Remortgage in London

Buying vs Renting a Property in London

Mortgage Advice in London for Home Buyers and Renters

If you are currently renting in London, taking the dive and purchasing a property will be a massive financial decision.

For many, it all comes down to affordability. In certain parts of London, the average monthly rent can be higher than your mortgage repayments. Thus making buying a much better option (as long as you have the right amount of deposit).

Everyone’s circumstances are different, that’s why, If you are in the position to either rent or put down a deposit on a property in London. We hope this article will aid First Time Buyers in London when it’s time to make that decision.

Buying a House in London

More often than not, especially if you are younger, parents will encourage you to invest in property sooner rather than later. There are pros to doing this, but there are cons too.

Mortgage Payments

It all comes down to the type of mortgage you are on. In certain parts of London, you are looking to buy or rent. You’ll find that your monthly repayments will be cheaper than renting.

For example, if you are on a tracker mortgage, this tracks the Bank of England’s base rate. So you’ll find your monthly mortgage repayments may be much lower than renting. However, this could fluctuate every month.

There are ways around this. If you got put onto a fixed-rate mortgage, your payments would remain the same until the end of your fixed term.

With rising maintenance costs and fluctuating interest rates, your landlord might increase your rent. However, it’s a rare situation if your landlord decides to reduce your rent.

Security 

As long as you can keep up with your mortgage payments, you will always have that sense of security within a home. No one can force you out of your own home as you are the property owner.

Whereas being a tenant leaves you with next to no protection against the landlord wanting you out. Yes, they will have to give you notice, but the landlord owns the property you rent at the end of the day.

All of this worry doesn’t come with owning a home. In some cases, landlords may be more considerate and extend your notice period. However, not every landlord is as lenient.

Uncertainty

The property market tends to reshuffle things now and again, the good news is when you find out that your house is going to go up in value. However, this works both ways and unfortunately, your property price can also go down in value.

History has shown that even if you purchase a property during the very peak of the market. Make sure you can afford to keep hold of the property, eventually property prices will go back up. During the credit crunch in 2008, sold values dipped dramatically. After a few years and backing from the government, the market shot back up.

If you have no choice but to sell your home, doing so at the wrong time may cost you losing money. Sometimes you don’t have a choice but to sell your home quickly. We tend to find this was lead to a relationship breakdown, a reduction of income, or other circumstances.

Don’t rush into a purchase, get Mortgage Advice in London 

Never rush into a property purchase; buying a home is a huge financial commitment and you should only go forward with one if you are ready to do so.

If you are eligible to take out cover, it’s always smart to do so Mortgage protection insurance isn’t mandatory, but you should think very carefully about how you will keep up mortgage repayments if you find yourself out of work for a while.

If you are unable to work due to an illness, you could look at the Critical Illness cover to help down the line. You can always get the right support from a Mortgage Advisor in London if you are unsure about whether or not to purchase a property over renting one.

Renting a House in London 

Here are now the pros and cons of renting in London. Depending on your situation, renting could be the best option for you. There are a lot of different questions to ask before rushing into renting before looking to obtain a mortgage.

Flexibility 

Compared to renting, buying a home is a long-term investment, you need to be thinking about where you can realistically see yourself in the future. Whereas, when you are renting, you can move out whenever you want. For example, you could have been renting, but saving for a mortgage deposit over time.

Once enough has been saved for your deposit or you receive a gifted deposit, you can move out whenever you want to and get your mortgage process started in London; once your notice has been given.

If you can’t imagine yourself living in London for a very long time, you should consider the idea of renting. There is no point in obtaining a mortgage if living in a certain part of London is only a temporary part of your life.

Repairs

When you are renting, your landlord is usually responsible for any repairs on the property. We tend to find, that some landlords are better than others, for example, some may take their time in getting back to you, and some may be great and get right back to you within 24 hours. Make sure to do your research and check out reviews and recommendations before you go proceed with anything.

Major repairs should be handled by the landlord and minor repairs should be taken care of by you. In London, if you choose to buy a home you will have to take care of all of the repairs and damages inside and outside of the property.

Moving Home in London with a friend(s) / family member? 

When deciding to whether buy or rent with a friend or family member, as a Mortgage Broker in London, we would recommend that you look at renting first. Renting is a fantastic and more beneficial option if this is the route that you want to go down.

Being tied into a mortgage deal with your friend(s)/family can cause problems down the line when you want to move on and out of the property. It’s not always as easy as it seems to get your name removed from a mortgage.

Removing a name can often require Specialist Mortgage Advice in London to get this sort of thing moving. So, if you are looking at renting or even purchasing with a friend(s) or family, you should seek out an expert mortgage advisor in London help to assist you along the way. 

Summary – Buying vs Renting 

Now that you know some of the pros and cons of buying and renting, you should now weigh up your options. Which is right for you? Which will benefit you most? Where do you see yourself in 5-10 years’ time?

These are questions to consider during any big decision in your life. Some people prefer to make a list of the pros and cons, that seems to always help!

When it comes down to the numbers, the majority of people choose to buy over rent, they see it as an early opportunity to get themselves onto the property ladder. People would also rather the money go towards their own mortgage rather than paying somebody else’s.

If you need more renting vs buying advice in London, book your free mortgage appointment today to speak with one of our mortgage advisors in London today. 

A Guide to Remortgages in London: Top Reasons to Consider

When your mortgage term is coming to its end. Your options are to either sell up and upsize/downsize into a new property. Maybe you are in the market for selling your portfolio to the tenant(s) or another buyer and want to know what options are available? The most popular option, however, overall of the above, is a Remortgage.

What is a Remortgage?

A Remortgage is a process of moving your existing mortgage to a new provider or switching to a different arrangement with your current lender. There are lots of different opportunities when taking out a Remortgage.

By taking advantage of the 20 years or so knowledge of our resident “Moneyman” Malcolm Davidson mortgage advisor and director of Londonmoneyman and host of our YouTube channel MoneymanTV, has put together a quick remortgage guide to help you understand the main reasons homeowners choose to remortgage.

Remortgage For Better Interest Rates

In some cases, your initial mortgage deal will normally last somewhere between 2-5 years and feature low fixed rates or possibly discounted rates. Your lender may suggest placing you on a tracker mortgage, which follows the Bank of England’s base rate.

When your mortgage term is ending you will be placed onto the lenders Standard Variable Rate (SVR). SVR’s can affect whether the interest rate moves up or down, depending on what the lenders choose.

They also don’t follow the Bank of England’s base rate like a tracker mortgage hence why they can be riskier, as the lender is not legally obligated to charge the recommended amount.

Because of this, SVR’s are usually the most expensive option to take, leaving many to look at Remortgaging for better rates, which will hopefully save them some money on their monthly repayments.

Remortgage For Home Improvements

Spending several years occupying your home, you may come across wanting an extra room or a much larger living space to start a family, a newer and modern kitchen, a new office as more people are working from home or loft conversion. If you weren’t sure whether to do some home improvements or move into a bigger house, some choose to release their equity with a remortgage to cover the costs of any work needed or wanted.

The idea of having to obtain planning permission and fund/manage your own project seems time consuming, some will argue it’s a lot less stressful and more rewarding than the process of having to go property hunting again, selling your current home and having to move all your possessions.

At the same time, creating more space and having good quality craftsmanship will likely increase the value of your home. This comes in handy if you ever do decide to sell up or rent out.

Remortgages For Changes to Your Term

Some homeowners may choose to Remortgage in London for a more suitable mortgage term, whether that’s switching to a more flexible product or reducing the length. However, doing so means you won’t be paying back your mortgage for a long duration. But, you’ll be faced with higher monthly repayments. The longer your term, the lower the payments will be over time.

Other homeowners may choose to opt-in for their remortgage term to be more flexible. The befits of doing so are if you gain the ability to overpay, you will be able to pay off your mortgage quickly, as well as being able to carry the same mortgage and rates over to another property, should you decide to move later down the line.

We tend to find that flexible mortgages usually come in the form of a tracker mortgage. A tracker mortgage follows the Bank of England base rate. Meaning your mortgage payments will fluctuate based on interest.

Equity Release

All homeowners will have some form of equity in their property. This is worked out with the difference between what is still owed on the mortgage and the current value of your property. As previously mentioned, equity can be used for home improvements. However, there are other routes to go down.

Some homeowners choose to cover long-term care costs, whereas others may choose to add to their income, to have a holiday, to pay off an interest-only mortgage or simply have some extra money to spend on whatever they would like.

In other cases, Buy-to-Let landlords will use their Equity Release as a means of covering their deposit for purchasing additional properties for their portfolio.

Remortgage to Consolidate Debt

Others may choose to release equity to pay off any unsecured debts that may have built up over time. However, Debt Consolidation not only bases the amount on how much you are owed and the value of the property, but things like your credit rating are also a factor. All this can limit you on the amount you can borrow.

To pay off your previous mortgage and your debts, you will need to borrow a substantial amount. This means your monthly repayments will be higher.

If you have a poor credit score, you might have a slim chance to remortgage, you might benefit to look into Specialist Remortgage Advice in London. Even then, there is no guarantee that you could remortgage.

You should always seek mortgage advice before choosing to consolidate and secure any debts against your property.

Dedicated Mortgage Advisors in London

If you are coming to the end of your term and are wanting to know what your options are, we highly recommend you book your free mortgage appointment to speak with one of your experienced and trusted Mortgage Advisors in London.

Our team will discuss what’s the most suitable options for you and your circumstances, to create the most suitable plan of action for you in the next step of your mortgage adventure. We aim to ensure this go-around is a quicker and easier process than when you took out your initial mortgage.

How to Improve Your Credit Score in London?

Credit Score Mortgage Advice in London

How to improve my credit score? | MoneymanTV

A credit score is a numerical expression based on a level analysis of a person’s credit files to represent an individual’s creditworthiness. Lenders use this numerical expression to determine your affordability for a mortgage, loan, credit card, and the rest. Although different lenders have different credit scoring criteria, the credit score listed on your file will usually range from 300-800+.

Credit score criteria

???? 300-580 – This is an example of a poor credit score, and having a credit score like this may minimise your chances of being accepted by a lender.

???? 580-670 – A score like this is deemed fair, and some lenders may be more lenient with you when you have a score alike.

???? 670-740 – This is a good score, and your odds of being accepted will be high if you have this score on your credit file. We tend to find that this is usually the average credit score range.

???? 740-800 – This score is excellent. A score as good as this will put your chances even higher of being accepted.

???? 800+ – If you have a score that’s 800+, that is a perfect credit score. Your chances of being accepted are well above average; well done!

If you have a credit score above 670, a lender will likely see no problem lending to you. On the other hand, if your score is less than 670, you may struggle to get the competitive deals that other applicant’s with a higher score are accessing.

Reasons why your credit score may be lower

Our team of Specialist Mortgage Advisors in London have dealt with an extensive array of cases daily. It’s often the case that mortgage applicants come to us after being declined by their bank due to a low credit score or something similar. Their job is to step in and assist wherever they can to get your application mortgage ready.

There are various reasons why you could have a low credit score. The most common understanding that we come across is that the applicant is the subject of a county court judgement (also known as a CCJ). If you fail to repay a loan/borrowed money, you will likely get a CCJ.

A CCJ can leave a harmful impact on your credit file for up to six years or more. We strongly advise that you make sure that you pay off your debt before applying for credit. It will surely pop up on your file, and the lender will start asking questions.

Can I get a Mortgage with a CCJ?


Neglecting to stick to credit agreements can be bad too. Anything like failing to keep up with a Mobile Phone contract can cause damage to your file. It’s the little things like this that can cause substantial damage. For example, dipping into your maximum arranged overdraft every month could cause a long term adverse effect. Even using loads of price comparison websites can sometimes affect your score.

Poor credit score? Don’t Panic

These are just a few things that could negatively impact your credit rating, and there are lots of other reasons why you could have bad credit. However, our mortgage advisors in London job is to help you develop your score, so you get the chance to move into your dream property!

There are multiple ways to improve your score. But the most crucial part is not to give up just because you have a low score because it’s still possible to secure a mortgage in some cases.

Credit Score Mortgage Advice London

Improving your credit score in London

Trying to improve your credit score can be a challenging task, that’s why we hope that this handy guide can give you some indication on how to improve it. We must inform you that every lender has there very own lending criteria, so your score may impact what deals you can access.

Additionally, it also means that just because you have an excellent score doesn’t mean that you’ll match every deal. It’s sometimes down to personal circumstances. It’s all up to your lender and their criteria.

Avoid unnecessary credit searches

Every time you go directly to a lender and their in-house mortgage advisor puts you through for a deal, they will perform a soft or hard credit search on you, and this search will leave an imprint on your credit file. If your application gets declined for any reason, the credit search performed could harm your credit score. Multiple searches may lower your chances of getting accepted for a mortgage in the future.

Avoid credit applications

Applying for credit can sometimes ricochet on you, especially if you don’t have a reason for doing so. If you can pay back the credit that you’ve borrowed, it may look good on your application. However, flip the situation on its head, and your credit score could end up in trouble if you fail to meet the credit payment deadline.

During your mortgage application, we strongly advise that you hold off applying for credit. In some cases, you may be able to get away with it, but lenders may believe that you are struggling for money in other scenarios, they could think that you are putting it towards your deposit or using it to aid your mortgage payments.

Here at Cambridgemoneyman, we aim to get it right the first time, which means that we will take a look at your credit score and only approach lenders that hold criteria that we know you’ll pass.

Are you registered on the voter’s roll?

Here’s an easy way to improve your credit score; make sure that you get registered on the voter’s/electoral roll. Being registered on the roll shows that you are who you say you are. All you need to do is go to the government’s electoral roll page, and it’s easy to get registered from there. Additionally, this could be a great way to boost your score.

You must provide accurate information when registering on the voter’s/electoral roll, ensuring that everything gets filled out correctly. You will need to use your current living address, not your previous address.

The importance of updating your address

We always recommend checking that all of your accounts and details get linked with your current address during the mortgage application process. Additionally, this won’t affect you as much if you are a First Time Buyer in London and this is your first application.

However, if you are Moving Home in London from rented accommodation and you still have your parents address linked with any of your accounts, your lender will pick up on it straight away. That’s why it’s essential to change your addresses and make sure that it’s up-to-date before applying. Being linked to the wrong address could impact your credit score.

If you go down the broker route, your Mortgage Advisor in London will help you out with this step. They will make sure that everything is updated with you to ensure that you have the best chance possible of being accepted for a mortgage.

Don’t run too close to your maximum limit

Maxing out your credit card(s) each month will heavily impact your credit score. Your lender will like it if you can pay off your credit card balance each month as it shows that you can manage your money.

If a lender can see that you are exceeding credit card limits and always dipping into your overdraft, they may think that you don’t take your finances seriously.

Remove financial links to others

If you are still financially linked to an ex-partner or family member, your credit score could be getting harmed without you even knowing. If the account is still active and live, you won’t be able to remove your links. The only way to remove your connection is to get in touch with the credit reference agencies and make a request.

Is it all about your credit score?

Depending on the lender and how strict their lending criteria is, they may be lenient and allow some wiggle room. If there are some personal reasons involved, your lender may be considerate and factor them into your application, and it’s entirely up to them what they do.

A Mortgage Broker in London like us will always be transparent with you and factor in every bit of detail. Even if you have a score on the lower end of the spectrum, our hardworking team of Mortgage Advisors in London are determined to secure you a deal that will suit you.

We have access to specialist mortgage deals through our vast panel of lenders; we are sure that we will find one that matches your mortgage needs. If you need further assistance or Credit Score Mortgage Advice in London, feel free to get in touch with our team.

The Costs of Buying a Home in London

Home Buying Costs Mortgage Advice in London

It goes without saying that it can be costly to buy a new home. There are various costs that can add up, as well as different options every step of the way that you can choose from.

If you’re a first time buyer who is looking for mortgage advice in London, you’ve come to the right place, as this piece will explain many of the costs typically associated with buying a new home.

Estate Agency Fees

Only those that are selling a property are required to pay an estate agent. It should be noted that these fees can vary drastically between different estate agents. Often, these fees can be negotiated, particularly when there is a lack of properties available for sale.

Survey Fees

The cost of surveys can vary depending on requirements, however, your mortgage advisor will be able to recommend the most suitable option for you.

Mortgage lenders will inform you of the value of the property you are considering buying. This enables you to determine whether it is worth the cost. This can cost upwards of £300, or may even be offered for free by your lender.

It is also possible to request a more detailed Home Buyer’s Report, which often costs in excess of £1000 for the most in-depth surveys.

Mortgage Arrangement Fees

As a guide, mortgages with low-interest rates are typically those with the highest fees. Mortgage arrangement fees can vary between being free, or even costing upwards of £3000.

Mortgage advisors in London are in the best position to explain the most cost-effective products that align with your requirements, working out the total amount to pay throughout the product term, including fees.

It is usually possible to add arrangement fees to the mortgage. In this case, it will prevent a costly one-off payment; however, there will be interest on the fees, which end up costing significantly more over the mortgage term.

Solicitors’ Fees

It is essential to have a solicitor take care of the legal aspects of buying your home. Your solicitor needs to be on ‘panel’ for the lenders you require, so make sure your choice facilitates this. Your mortgage advisor in London will be able to guide you throughout this process.

It’s also important to make sure that the quotes you consider for solicitors’ fees include local searches and VAT, preventing any unexpected costs from arising.

Stamp Duty

Stamp duty is a tax that is paid to the Government for some property purchases. This is paid to the solicitor upon completion, as they will pay the government for you.

For more information, visit: https://www.gov.uk/stamp-duty-land-tax/

Mortgage Broker Fees

When searching for a mortgage broker in London, it’s important to understand the applicable fees.

The majority of mortgage brokers in London charge fees, with the sum of money owed often being linked to the amount the lender pays the broker for carrying out work on their behalf. Many brokers only charge fees when they successfully get a formal mortgage offer for you.

Reviews are a great way to see other peoples’ experiences with a mortgage broker in London, which can help you to make your decision. As an example, if you find a mortgage broker in London with great reviews, this can give you confidence when choosing to work with them.

Removal Fees

While some people choose to hire a van and move their own furniture and belongings into the new home, removal companies can take the stress out of this process.

While it does cost to have a removal company take care of this on your behalf, they can speed up moving and enable you to focus on other things, making your move more enjoyable!

Summary

This piece should have given you plenty of useful information, helping you to understand the basics of mortgage advice in London and setting you on the path to getting started.

Taking a Mortgage Past Retirement Age

Getting a mortgage as an older borrower in London

We all end up with a reduced income after we retire in London, so that is why Lenders usually want the mortgage to getting repaid before your stated retirement age. They will consider lending past state retirement age in some circumstances, but only if the job you do is relatively non-manual and as such it would be reasonable for you to carry on working to a later age.

Taking a Mortgage Past retirement Age | moneymanTV

Evelyn was in her late forties when she applied to us for a First Time Buyer Mortgage in London. The issue she had was that her husband was a little older, and she felt slightly uncomfortable with the monthly mortgage payments when I quoted her over the term to his state retirement age.

Evelyn had moved to the UK from Hungary and also had a modest property back home that she rents out. She planned to sell that property at some point in the next ten years and use the proceeds of the sale to pay a large chunk off this mortgage in the UK. That gave us both additional comfort about potentially extending the term on this new application to get those payments lower for her.

Fortunately, her husband was in a job where it would be reasonable for him to work into his 70’s, and we found a lender who got prepared to go eight years past his state retirement age. Evelyn and her husband may have left it slightly late to get onto the UK property ladder. Still, their application progressed with no issue, and they are now the proud owners of 2 properties, indicating a comfortable retirement for themselves when the time comes.

If you can relate to this scenario and need some Specialist Mortgage Advice in Londonget in touch and we will see how a Mortgage Advisor in London may be able to help.

Open & Honest Mortgage Advice in London

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