For many first time buyers in London and home movers in London, credit scoring can feel like an unfair way for mortgage lenders to assess their applications. On the other hand, mortgage lenders view credit scoring as a cost-effective and consistent method to minimise their risk.
If you find yourself concerned about the credit scoring system when applying for a mortgage, there’s no need to worry. The good news is that there are numerous mortgage lenders out there, each with their own unique scoring systems and criteria.
To ease your worries and improve your chances of being accepted, it’s a wise move to obtain a copy of your credit report when applying for a mortgage.
By sending an up-to-date copy of your credit report to your mortgage advisor in London upfront, you can give them a clearer picture of your financial standing and increase the likelihood of a successful application.
Keep in mind that having a copy of your credit report will also enable your mortgage advisor in London to identify any potential issues or areas that may need improvement, allowing you to address them before applying for a mortgage.
This proactive approach will not only boost your chances of approval but also provide you with more confidence and peace of mind during the entire mortgage process.
Remember, every mortgage lender has its own set of criteria, so don’t be discouraged if one lender rejects your application. Your mortgage advisor in London will work with you to find the best fit among the various options available in the market.
When checking your credit report for mortgage purposes, there are several credit reference agencies available, including Experian and Equifax. We highly recommend using CheckMyFile as it offers a comprehensive overview based on information from multiple credit agencies.
By opting for CheckMyFile, you can access a 30-day free trial, which allows you to review your credit report without any cost during this period. And the best part is, you can cancel the trial at any time if you choose to do so.
This way, you can make an informed decision about your creditworthiness and ensure your mortgage application stands on solid ground.
If you use the link below, you’ll receive a free, instant PDF download.
Improving your credit score is crucial when applying for a mortgage, and there are several steps you can take to boost your creditworthiness. First and foremost, be cautious when using price comparison websites, as they can generate credit searches that may negatively impact your score.
To avoid any potential red flags for mortgage lenders, it’s best to refrain from applying for other forms of credit in the immediate future.
One way to positively impact your credit score is by being on the electoral register. Ensuring your name and address are accurate and up-to-date can help boost your score. Mistakes in addresses can give the impression that you live in multiple places simultaneously, potentially affecting your creditworthiness.
Additionally, managing your credit card usage wisely can significantly impact your credit score. Maxing out your credit card every month can lead to a reduction in your score, so it’s advisable to use it responsibly and pay the balance in full each month.
While closing down store or credit card accounts you no longer use may cause a short-term dip in your score, it can be beneficial in the long run and reduce your vulnerability to fraud.
Furthermore, financial connections to family members, friends, or ex-partners can affect your credit score, especially if their credit history is poor. If you no longer have active financial associations with these individuals, you can request that credit reference agencies remove these links.
When seeking mortgage advice in London, providing our trusted and experienced mortgage advisors in London with comprehensive information about your finances will enable them to offer the best possible guidance and support throughout the mortgage application process.
With their expertise and your improved credit score, you’ll be well-positioned to secure the ideal mortgage for your needs and financial situation.
Are you looking for mortgage tips and advice to guide you through your homeownership journey? We understand the questions and concerns that may arise during this process.
In this article, we aim to address your most pressing questions and provide valuable insights to help you navigate the mortgage landscape with confidence. Whether you’re a first time buyer in London or looking to remortgage in London, we’ve got you covered. Let’s make your homeownership dreams a reality!
Assessing your borrowing capacity is a crucial step in the mortgage process. Take into account your income, expenses, and current debts.
Utilise online mortgage calculators for a rough estimate, or consult a dedicated mortgage advisor in London for a personalised and accurate assessment tailored to your unique financial situation. Making informed decisions will set you on the right path to securing your ideal mortgage.
Keeping yourself well-informed about interest rates is essential for making educated decisions. Stay updated with financial news, reputable websites, or consult knowledgeable mortgage advisors in London who can provide you with real-time updates on interest rates.
Being aware of the current market trends will empower you to make the best choices for your mortgage journey. Moreover, you can check out our YouTube channel, MoneymanTV, where we regularly upload monthly market updates related to this subject.
Stay informed with the latest trends and insights to make well-informed decisions about your mortgage journey.
Take the time to explore different mortgage types, including fixed-rate, adjustable-rate, and interest only mortgages. Each option comes with its distinct features, benefits, and considerations.
Conduct thorough research and seek advice from mortgage experts to identify the most suitable mortgage type that aligns with your specific needs and financial goals.
Establishing a robust credit score is crucial for obtaining favourable mortgage terms. Ensure you pay bills promptly, keep credit utilisation low, and carefully review your credit report for any errors or discrepancies.
If you encounter credit-related challenges, there are several agencies available to provide assistance and guidance in improving your credit situation.
Standard documentation typically includes proof of income, identification, bank statements, and employment history.
For a tailored list of required documents based on your unique situation, it’s advisable to consult with mortgage lenders or knowledgeable mortgage advisors in London. They can guide you through the documentation process to ensure a smooth mortgage application.
Each option offers advantages. A mortgage broker in London like us can provide access to multiple lenders, enabling thorough comparisons for the best offers.
Approaching a mortgage lender directly fosters a direct relationship. We suggest considering your preferences, conducting research, and seeking recommendations to make an informed decision that suits your needs.
Be mindful of expenses beyond the mortgage amount, such as arrangement fees, valuation fees, legal fees, and possible early repayment charges. Examine fee schedules from mortgage lenders and seek advice from professionals to fully grasp all costs involved.
Attaining a deposit demands discipline and careful planning. Start by setting a budget, cutting unnecessary expenses, and explore government schemes like Help to Buy in London or Right to Buy in London (each with specific eligibility criteria).
Additionally, look into high-interest savings accounts or ISAs tailored for first time buyers in London to accelerate your savings journey.
An agreement in principle provides an initial estimate of the mortgage amount a lender might offer based on basic information.
On the other hand, a formal mortgage offer is a legally binding document where the lender commits to providing the loan, subject to specific conditions.
The timeline for processing a mortgage application can vary. On average, it takes several weeks to complete the process. Factors such as the property type, credit history, and the efficiency of document submission can influence the timeline.
To ensure a smoother process, work closely with your mortgage advisor and be prepared for any potential delays.
With these essential answers to your top mortgage questions, you are now well-prepared to embark on your mortgage journey.
Don’t forget the importance of seeking guidance from reliable mortgage advisors in London, conducting thorough research, and staying proactive throughout the process.
By following these steps, you can approach your homeownership dreams with confidence and take the necessary actions to turn them into reality!
If you’re looking for specialist mortgage advice in London, a frequent situation we come across involves tenants who express interest in buying the property they currently rent from their landlord.
For landlords, selling a property to their sitting tenant can offer several advantages, making it a worthwhile option to consider even before listing the property on the open market.
From the landlord’s perspective, the process of selling to a sitting tenant can be relatively simple. They can extend the offer to the tenant before entertaining other potential buyers. Let’s delve into the compelling reasons why landlords may choose this approach and the benefits it entails.
One significant factor motivating landlords to sell their properties is the government’s tax relief changes. These new regulations have resulted in many landlords facing increased tax burdens compared to previous years.
As a result, some landlords have chosen to exit the housing market and explore alternative investment opportunities in different sectors.
Dedicated landlords who are deeply committed to their role and believe in the enduring value of their properties are more inclined to withstand the impact of legislative changes. They view property as a sustainable, long-term investment.
On the other hand, more casual or novice landlords may have entered the market with a short-term profit-oriented mindset. If circumstances do not align with their expectations, they are more likely to sell their properties.
One significant factor motivating landlords to sell their properties is the government’s tax relief changes. These new regulations have resulted in many landlords facing increased tax burdens compared to previous years.
As a result, some landlords have chosen to exit the housing market and explore alternative investment opportunities in different sectors.
Dedicated landlords who are deeply committed to their role and believe in the enduring value of their properties are more inclined to withstand the impact of legislative changes. They view property as a sustainable, long-term investment.
On the other hand, more casual or novice landlords may have entered the market with a short-term profit-oriented mindset. If circumstances do not align with their expectations, they are more likely to sell their properties.
Considering the advantages for sitting tenants contemplating buying the property from their landlord, there are several key benefits to take into account.
Firstly, as a sitting tenant, you have the advantage of being intimately familiar with the property. You have lived in it, experiencing its ins and outs, strengths, weaknesses, and overall suitability.
This first-hand knowledge allows you to make an informed decision about whether the property meets your needs and preferences.
Secondly, unlike other buyers, you don’t have to wait for the previous owner to find alternative accommodation. Since you already reside in the property, there is no need to go through the process of relocation.
This eliminates potential delays and uncertainties associated with moving house, allowing you to proceed with the purchase smoothly and efficiently.
Furthermore, there is the potential for a discounted price when buying from the landlord. As they can avoid certain costs associated with selling through traditional channels, landlords may be more inclined to offer the property at a lower price to the sitting tenant.
This presents a valuable opportunity to secure a home at a more affordable rate compared to properties on the open market.
Lastly, if the agreed-upon purchase price is below the market value of the property, there is the possibility of receiving deposit assistance. Lenders may consider utilising the property’s equity to contribute towards your deposit, which can greatly alleviate the financial burden.
In some cases, if there is sufficient equity, you may not even need to provide a deposit at all, making it easier to proceed with the purchase.
Overall, buying the property you currently rent from your landlord offers familiarity, convenience, potential cost savings, and the opportunity for deposit assistance. These advantages make it an appealing option for sitting tenants considering homeownership.
When considering the purchase of a property as a sitting tenant in London, it is important to approach the process with careful consideration and seek the expertise of a professional specialist mortgage advisor in London.
Engaging in conversations with a mortgage advisor in London who possesses in-depth knowledge of the local market can greatly help you in navigating the complexities of the transaction and making well-informed choices.
A qualified mortgage advisor in London will take into account your unique circumstances, financial position, and aspirations, and provide guidance on the suitable mortgage options available to you within the city.
Throughout the process, they will offer valuable insights and expert advice, ensuring a seamless and efficient home buying experience.
It is important to remember that seeking professional mortgage advice in London is key to making the most of this opportunity as a sitting tenant considering purchasing the property you currently rent in London.
By doing so, you can benefit from potential cost savings, your familiarity with the property, and the chance to secure advantageous mortgage arrangements. This route provides a smooth transition from being a tenant to becoming a homeowner.
Therefore, by carefully considering your options and seeking professional mortgage advice in London, you can fully embrace this unique opportunity and embark on a rewarding journey towards homeownership.
When you reach the stage of making an offer on a property, it’s crucial to consider how you can negotiate to obtain the most favourable price. Securing a lower price can provide you with additional funds for upgrades or improvements to your future home.
It’s important to remember that not all offers will be accepted, and the process of purchasing a property often involves negotiation. If your initial offer is significantly lower than the seller’s asking price, it’s unlikely to be accepted outright.
While there is always a possibility that your first offer will be accepted, it’s wise to be prepared for the potential of negotiations.
Having a good understanding of the negotiation process will empower you to navigate it confidently and increase your chances of obtaining the best possible price for your dream property.
It’s important to maintain a positive mindset throughout the property purchasing process. While sellers may aim to maximise their sale price, they typically have a bottom line or minimum price they are willing to accept.
Various factors can influence this, including their plans for their next home or the desire to maximise their profits. If you’re a first time buyer in London or facing competition from other potential buyers, thorough preparation is crucial before making an offer.
Preparation involves researching the current real estate market, familiarising yourself with the property and its surroundings, and having a clear understanding of your budget and financing options.
By being well-prepared, you can improve your chances of securing the desired property at a price that aligns with your budget. Remember, purchasing a property often involves negotiation, and your preparation will help you navigate the process confidently.
When collaborating with an estate agent to purchase a property, it’s crucial to have a clear understanding of the financial and legal aspects involved.
A reputable estate agent will want to ensure that you have the necessary funds to proceed with the purchase, whether you’re paying with cash or obtaining a mortgage. An agreement in principle is a valuable document that showcases your financial capability and provides reassurance to the estate agent.
Additionally, estate agents may conduct their own anti-money laundering checks, which typically require proof of identification and address.
Some estate agents may employ high-pressure tactics to cross-sell products or recommend their in-house mortgage advisor. Savvy home buyers recognise the importance of finding a mortgage solution that aligns with their specific needs and can see through such tactics.
To find the best mortgage deal and ensure compliance with all financial and legal requirements, it’s advisable to work with a mortgage broker in London.
If an estate agent attempts to push additional services on you, you have the option to inform them that you’ll be negotiating directly with the seller instead. This approach helps ensure a smooth and straightforward purchasing process.
For individuals seeking to purchase a new home in London, where moving home mortgages in London are common, it may be worth considering selling your current home before making an offer on a new property.
By selling your current home first, you can generate the necessary funds to cover the deposit and streamline the purchasing process.
Many home buyers begin their search for a new home only when they come across a property they’re interested in. This approach can make it challenging to have saved a deposit by the time an offer needs to be made.
It’s essential to bear in mind that if you haven’t initiated the process of selling your current home, you may not be as prepared for the home buying process as you believe.
Other competing home buyers who have already sold their current homes and are further along in the process may have a higher likelihood of having their offer accepted.
While it is not impossible to successfully purchase a new home without first selling your current one, it’s important to consider this factor when making decisions about your home buying journey.
To ensure a smooth and efficient home buying process, it is important to have your necessary paperwork well-organised and readily available.
This becomes particularly important during the mortgage application stage, as you will be required to provide various types of documentation to the mortgage lender. These documents typically include proof of income, identification, address verification, and deposit evidence.
It is advisable to keep all of these documents together in a secure and easily accessible location, allowing you to promptly provide them to your mortgage broker in London or mortgage lender upon request.
Having your paperwork in order ahead of time will streamline the mortgage application process, ensuring a smoother experience and ensuring that you are well-prepared for each step of the home buying journey.
When purchasing a property, it’s key to acknowledge the emotional connection the seller may have to their home. The seller might have cherished memories of raising a family or put significant effort into personalising the property.
In such cases, it’s beneficial to try and understand the seller’s emotional attachment and express your own intentions for the property with sensitivity and empathy.
During the negotiation process, it’s important to maintain respect and avoid criticising the property. The seller is likely aware of any flaws or imperfections, and being excessively negative about them can be seen as disrespectful, potentially straining the buyer-seller relationship.
Approaching the home buying process with sensitivity, empathy, and respect creates a more positive and constructive negotiation environment. This approach increases the likelihood of reaching a mutually satisfactory agreement, benefiting both parties involved.
Investing time in getting to know the seller of the property can potentially benefit you during the negotiation process, providing you with valuable leverage when it comes to the purchase price.
Understanding the seller’s situation can be key. Are they in the process of buying another house? What is their motivation for selling? Have they received multiple offers? Gathering this information can give you insights into the seller’s potential flexibility regarding the purchase price.
For instance, if the seller is looking for a quick sale, they may be more inclined to accept a lower offer. Additionally, if you are willing to meet their asking price, it increases the likelihood of a favourable outcome for you.
By taking the time to understand the seller’s circumstances and aligning your offer accordingly, you can enhance your negotiating position and increase the chances of reaching a mutually beneficial agreement.
Navigating the multitude of mortgage options available can be overwhelming, especially for first time buyers in London or those seeking to switch mortgages. But fear not, our team of expert mortgage advisors in London is here to simplify the process for you.
With extensive experience and a deep understanding of the London mortgage market, our advisors are well-equipped to guide you towards the ideal mortgage solution tailored to your specific needs.
By taking the time to fully grasp your circumstances and financial situation, our mortgage advisors in London will provide personalised recommendations from the array of options available in the city.
Whether you prefer the stability of a fixed rate mortgage, the flexibility of a tracker mortgage, or require a more customised solution, our dedicated team will accompany you throughout the entire journey, ensuring we find the perfect fit.
When it comes to exceptional mortgage advice in London, our expert advisors are the ones to rely on. We’re here to help you in making informed decisions, allowing you to focus on your new home with confidence.
A mortgage in principle, known more commonly as an agreement in principle (AIP), is a helpful tool to estimate how much you could borrow before formally applying for a mortgage.
It usually involves a soft credit check, so your credit score is unlikely to be affected, and you are under no obligation to proceed.
At Londonmoneyman, we can usually obtain an AIP for our customers within 24 hours of their initial mortgage appointment. The AIP typically lasts for 30-90 days, but if it expires, we can help you renew it.
To obtain a mortgage agreement in principle, you can either contact a mortgage lender directly or seek the help of a trusted mortgage broker in London, like us. You can book a free mortgage appointment with our expert mortgage advisors in London by getting in touch today.
During the appointment, you will need to provide details about your income, employment, credit history, and other personal information to assess your eligibility for a mortgage and get an estimate of your borrowing capacity.
Our team can usually obtain your AIP within 24 hours of the initial appointment.
Prior to beginning your property search, it is recommended to obtain a mortgage agreement in principle to estimate how much you can borrow, which will prevent you from looking at properties that are out of your budget range.
Furthermore, having an agreement in principle can give you a competitive edge when making an offer on a property, as sellers and estate agents may consider you as a serious buyer.
An agreement in principle is not a guarantee of obtaining a mortgage, but it is a useful aid during the home buying process.
To obtain an agreement in principle, a mortgage advisor in London will require personal information from you to forward to the mortgage lender.
This includes your personal details such as your name, date of birth, and current address, as well as your employment status and income details.
Mortgage lenders will also need to know about your regular outgoings, credit history, and affordability, to determine your eligibility for a mortgage. It is important to note that further documentation, such as bank statements or proof of income, may be required before a final decision is made.
An agreement in principle (AIP) is a document that shows how much a mortgage lender may lend you, based on the information you’ve provided. Do remember though, it does not guarantee that you’ll receive a mortgage offer, nor does it mean there is any legal obligation for you to proceed.
On the other hand, a mortgage offer is a formal offer from a mortgage lender that confirms their willingness to lend to you after conducting credit and affordability checks. This is one of the final stages in the mortgage process.
If you accept the mortgage offer, it becomes a legally binding document that sets out the terms and conditions of your mortgage, including the interest rate, the term of the mortgage, and any associated fees and charges.
To get to this stage, you will need to provide the mortgage lender (through your mortgage broker in London, if you choose to use one) with more detailed information and undergo a full credit check. Additionally, the mortgage lender will require a valuation of the property you intend to purchase.
Once you receive your mortgage offer, you can proceed with the property purchase, subject to meeting any conditions specified in the offer.
In summary, an agreement in principle provides an estimate of how much you can borrow, while a mortgage offer is a legally binding agreement between you and the mortgage lender that sets out the specific terms and conditions of your mortgage.
Typically, obtaining an agreement in principle for a mortgage will not have a significant impact on your credit score. This is because most mortgage lenders only conduct a soft credit check during the AIP process, which does not leave a visible mark on your credit report.
It’s important to be aware that some mortgage lenders may perform a hard credit check as part of the AIP process, which can leave a visible record on your credit report. If you apply for multiple AIPs with different mortgage lenders in a short period of time, this could potentially impact your credit score.
It’s important to keep in mind that a mortgage application itself will usually involve a hard credit check, which can also affect your credit score.
Therefore, it’s generally advised that you limit the number of mortgage applications you make and only apply for an agreement in principle when you are serious about purchasing a property.
Obtaining an agreement in principle for a mortgage can provide several benefits for you when it comes to the home buying process.
Firstly, it allows you to determine the amount you can realistically borrow, helping you focus your property search within your price range. This can save you time and prevent the disappointment of finding a property that you cannot afford.
Secondly, having an AIP can give you an advantage over other buyers. Sellers may be more inclined to accept an offer from someone who already has an agreement in principle, as it demonstrates that they are a serious buyer actively seeking a mortgage.
Finally, an AIP can help expedite the mortgage application process once you have found a property you wish to purchase. Since the mortgage lender has already assessed your financial situation and eligibility, they may be able to process your application more quickly and efficiently.
Overall, obtaining an agreement in principle can be a valuable tool for anyone looking to buy a property, as it provides clarity on how much you can borrow, increases your chances of being accepted as a buyer, and can streamline the mortgage application process.
Getting an agreement in principle for a mortgage is usually free. It’s just a document that specifies the amount a mortgage lender is willing to lend you based on the information you’ve given them. You are not obliged to make any financial commitment with an agreement in principle.
If you are declined for a mortgage agreement in principle, it indicates that the mortgage lender has determined that you do not qualify for the amount of mortgage you have requested. There may be various reasons why this has occurred.
It is crucial to identify the cause of the rejection. You may need to reassess your financial situation or credit history, or you may need to provide additional information to the mortgage lender.
In some cases, it may be necessary to look for a different mortgage lender who is willing to lend close to, if not the full amount that you are seeking. Keep in mind that being refused an AIP does not automatically imply that you will be denied a full mortgage application.
When you submit a complete application, the mortgage lender will examine your financial situation and credit history more closely, and they may offer you a different amount or a different type of mortgage.
Moreover, applying for multiple agreement in principle with different lenders can have a negative impact on your credit score. As a result, it is important to conduct research ahead of time.
Having a mortgage broker in London can help you in locating the right mortgage lender, hopefully on your first attempt.
If you are considering first time buyer mortgages in London or home mover mortgages in London, it is advisable to speak with a mortgage broker in London to obtain your agreement in principle, before making any offers on a property.
Our team can typically secure an AIP for you within 24 hours of your initial mortgage appointment, providing you with valuable information as you progress through the mortgage process.
Book in for a free mortgage appointment today and we’ll work to obtain your agreement in principle as soon as possible, as you embark on your mortgage journey with the support of a trusted mortgage broker in London.
A CCJ is a County Court Judgement, which is a court order that you will be issued if you fail to back money that you owe. A CCJ can look very back on your credit file and can often impact your ability to get a mortgage.
If you have a CCJ attached to your name and were hoping to take out a mortgage, you should seek specialist mortgage advice in London. We recommend this so that you get the chance to speak with a professional who will be able to find out whether it is still possible for you to get a mortgage or not.
As a mortgage broker in London, we can take a look at your situation and work out what is the best option for you. Our mortgage advisors in London are specialised in complex situations like this, we can take a look at a variety of factors before looking at whether you can get a mortgage or not. These factors may impact your ability to get a mortgage:
You will receive a CCJ if you fail to pay back money that you owe. It doesn’t matter how much you owe or have already paid off, if there was a deadline that you missed, it’s likely that you will be faced with a CCJ. Unfortunately, even if it is only a small amount you have not paid off, you can still receive a CCJ.
If you receive a CCJ, you will get a 30-day period to pay it off (satisfied CCJ). See this as a final warning; if you manage to get it paid off within this timeframe the CCJ may be removed from your credit file, however, if you fail to meet this deadline, the CCJ will remain on your file for a total of 6 years (unsatisfied CCJ).
A CCJ can leave a very bad mark on your credit score, so we would advise that you try and pay it off within this period.
In some cases, yes it is still possible to get a mortgage with a CCJ in your name. With the help of an expert mortgage broker in London, you might just be able to get over that completion line.
If you managed to get the CCJ stripped from your records by paying off the money that you owe within the 30-day window, your chances of getting a mortgage will have increased. If you failed to meet the payment deadline, your chances may have been lowered.
Generally, often depending on the size of the CCJ and how much is left to pay off, the longer that you have the CCJ, the less of an effect it will have on your ability to get a mortgage. For example, if you have just been issued a CCJ, it will be very hard to get accepted for a mortgage, whereas, if you were issued with a CCJ 4 years ago, you’ve managed to pay off what you owe and you have been keeping on top of your finances, it’s more likely that you’ll be able to get a mortgage in London.
If you consider the lender’s point of view, they would be lending to someone who could not meet a previous credit commitment. A mortgage is one of the biggest financial commitments that you will ever make, so they are just being wary and making sure that you can actually afford to take a mortgage in London out.
As a mortgage broker in London, we are able to access specialist mortgage lenders that hold deals available to applicants with CCJs. To speak with a specialist mortgage advisor in London and find out whether or not you are able to access these types of mortgage products, get in touch with our team at Londonmoneyman today.
If you receive a CCJ that was wrongly issued, with sufficient evidence, you may be able to remove your CCJ from your records.
Reopening the case can cost you however, so you need to make sure that you have enough evidence to prove that it was wrongfully issued. If you manage to get it removed, then it will massively benefit your credit file and your chances of being able to get a mortgage. The CCJ will be completely removed from your credit history and your name.
To appeal your CCJ, you’ll need to complete an N244 form and send it to the court.
Your unsatisfied CCJ will eventually be removed from your file after 6 years have passed since the date that it was issued. As mentioned before, the longer that a CCJ has been in your name, the more likely it may be for you to be able to get a mortgage in London. You must know that this also means paying back what you owe, preferably as soon as possible.
The quicker that you pay off the CCJ, the better. If you have a CCJ in your name, but you paid it off years ago, your chances of getting a mortgage may increase. Not all mortgage lenders will think like this however, some mortgage lenders will not even work with you if you have a CCJ.
Rebuilding your credit score is the first step to getting a mortgage with a CCJ in your name. Keep making your payments and try to pay your CCJ off as early as you can.
There are many different ways to improve your credit score and you may need a few years to rebuild it, however, it will pay off. If you need to point in the right direction of where to start with rebuilding your credit score, our specialist mortgage advisors in London would be happy to help. Simply give us a call or ask us a question online.
The UK government designed the Shared Ownership Scheme with the intention of helping individuals to purchase own property. This type of mortgage is available to permanent UK residents, including both first time buyers in London or former homeowners who are finding it difficult to purchase a new home.
In order for you to be able to qualify for a Shared Ownership mortgage in London, your household income must be less than £90,000. This may differ in other areas of the country.
Additionally, you will almost always be purchasing your property on a leasehold basis, which means you will be purchasing it for a set period of time.
Under the Shared Ownership Scheme, you are able to purchase a portion of your homes value, via your Shared Ownership mortgage in London. The percentage that you purchase will typically be between 25-75% of the property value.
The remaining portion that you don’t purchase will be paid as a rental cost, including any service charges or ground rent, which will be charged at a lower cost than market value and is paid to a local housing association.
The Shared Ownership Scheme went through some fairly significant changes in April 2021, as part of the UK government’s Affordable Homes Programme. These changes are particularly noteworthy if you’re familiar with how the scheme once worked.
Among the changes to this, the minimum percentage that is required for a property share purchase was lowered, meaning in some cases, you can purchase as low as 10%, down from the previous 25%.
Furthermore, it is now possible to purchase shares in 1% increments, as opposed to previously where you could only purchase 5-10% minimum.
In addition to the latter, the fees that typically come along with purchasing these extra shares has also been reduced, with maintenance and repair costs typically now being covered for the first 10 years of your home ownership, by the landlord, rather than yourself.
If you had previously taken out a Shared Ownership mortgage in London before these changes took effect, it is entirely possible that these new rules could actually now apply to you, but it’s always recommended you check with your mortgage lender first, as this may still vary per case.
Before you look at taking on the mortgage side of your process, you will first need to make sure that you can even qualify for Shared Ownership in London. In order to do this, you’ll first need to contact with your local Help to Buy agent in the area you wish to purchase your home in.
When you speak to this agent, you will usually need to provide them with various bits of information, such as what your income is, the amount of budget you have, which area your preferred property would be in and your credit history.
Once your eligibility is confirmed, it’s time to make a start on your mortgage.
A trusted and experienced mortgage broker in London would most likely be your best port of call when it comes to this, as not every mortgage lender offers deals on a Shared Ownership in London. The amount you can borrow typically depends on things like income and other fees included, such as rent.
As is often the case with most mortgages, there are both pros and cons to having a Shared Ownership mortgage in London. To give this a balanced view, it’s worth noting as said above, that not all mortgage lenders will offer mortgage deals to those using a Shared Ownership in London.
That being said, there are still more than enough mortgage lenders out there, including ones we have on panel, that can offer these types of mortgages. Furthermore, Shared Ownership mortgages in London can offer a sense of long-term stability, as you become both owner and occupier, simultaneously.
Deposits may often be an area of concern, especially for first time buyers in London, as saving for one can be challenging. Thankfully, deposits for Shared Ownership mortgages are typically much lower than they would be for open market purchases.
Whilst your deposit may still need to be, for example, 5%, it’ll only be 5% on the shares you’re purchasing. If you only want to purchase a 50% share, you’d be paying 5% on whatever 50% of the property value is.
Shared Ownership mortgages in London also make mortgages more accessible to those who are perhaps on a lower wage bracket.
Whilst these positives sound good, you have to remember that you would also be you would be paying for ground rent and service charges. Typically speaking, you can take part in “staircasing”, where you buy more shares as time goes on, when you come into the funds.
In most cases, you will be able to purchase up to 100% of the property price, where at this point, you would no longer need to pay a monthly rent. That said, your mortgage, ground rent and service charges would still apply. In other cases, you may only be allowed to purchase up to 80%.
Further to the last point, once you hit the 80% mark or higher, you will have to pay stamp duty land tax, though if you’re a first time buyer in London, this may not apply, depending on where in London you’re going to be living. Speak to a mortgage advisor in London to learn more.
Even though stamp duty can prove to be quite a costly addition to the other fees you will already have, your monthly mortgage payments can still be much cheaper than paying for an outright mortgage. It can also even be cheaper in some regards, than privately renting.
Speaking of privately renting, you will also benefit from having a tenure security, unlike you would going private. So long as you maintain all of your monthly mortgage payments, you will be able to remain within your home for your lease’s duration, which is typically between 99 and 125 years.
Because your home will be part owned by someone else, you will need to obtain permission from the appropriate housing provider prior to making any structural changes to your home. This can take away a sense of freedom you would otherwise have, by owning it outright.
After you have owned your home for a while, you may eventually decide that you do not wish to remain there and look to sell the property, before you look at moving elsewhere. With the majority of mortgage types, this would be fairly simple, so long as you have gone through your fixed period.
When it comes to Shared Ownership in London, it works a little differently.
Your ability to sell a home with a Shared Ownership mortgage in London will entirely depend on how much of the property you actually own, from the shares you have purchased. You’ll typically need to own 100% of the property, before selling the property can be an option for you.
It is important that you remember, however, that the housing association generally receives ‘first refusal’ rights, for the first 21 years after you have purchased your home. This means they are, by law, able to make a property purchase offer to you, before you put it on the open market.
If you do not own 100% of the property, you will have to look at purchasing all of the remaining shares, before you can look at selling the property.
A Shared Ownership mortgage in London can be great for first time buyers in London, who have been dreaming of getting their own property, but only have a smaller deposit to work with. Using a Shared Ownership in London can help you to achieve all of your goals.
That being said though, having a Shared Ownership mortgage in London can often prove to be a complicated journey and there can be a lot for you to work with, especially when you include all the potential fees. You must make sure that you are fully prepared and aware of all the contract details.
At the end of the day, it all comes down to personal preference. By booking in for a free mortgage appointment with a trusted and dedicated mortgage broker in London, you’ll get to speak with an expert mortgage advisor in London, with plenty of time to prepare!
You can learn more about a Shared Ownership mortgage in London by visiting the government OwnYourHome website.
When a mortgage lender asks to look at your bank statement, they will be looking for a variety of things. One of the main reasons for this is to confirm whether you are a responsible borrower who can manage your finances and maintain monthly mortgage repayments.
We regularly find ourselves being asked by mortgage applicants if gambling transactions look bad on their bank statements?
From splashing your cash on the Grand National once a year, to being a regular customer on internet betting websites, properly licensed gambling is not illegal. After all, there are many advertisements about gambling these days.
Gambling is seen by many as a hobby or pastime, though it’s also important to remember the tagline on all of those adverts, which is to gamble responsibly. This is key, ahead of applying for a mortgage.
Whilst it’s not up to a mortgage lender to tell you how to spend your money or that you should gamble responsibly, they themselves have a duty to lend responsibly and adhere to mortgage regulation.
If a mortgage lender needs to be careful who he lends to and prove to regulators that they are responsible, it is not too much to expect the same approach to an applicant and his finances.
Think about it from your own perspective; If you were going to lend money to someone, you would want to know that the person you are lending to is a trustworthy individual and adamant that they’ll pay you back.
As described at the beginning of this article, a mortgage lender cannot stop you from doing so because gambling is not illegal. Nor is it automatically guarantee that you are going to be declined, it can be possible to get a mortgage!
Where it can be difficult for applicants with gambling habits is that it is up to a mortgage lender to decide whether your transactions are reasonable and responsible or not.
Against this background, they will look at how often these transactions occur, how big these transactions are compared to the income of applicants, and the impact they have on your account balance.
If you only make smaller transactions on an infrequent basis, with minimal impact on your credit score, then a mortgage lender probably won’t bother them. On the contrary, larger, more frequent transactions are likely to be considered irresponsible and you could be rejected.
As we have looked at, a mortgage lender will be looking to see how you manage your finances in order to determine whether or not you can be a reliable borrower.
It is important to remember that mortgage lenders are financial institutions that tend to sell current accounts, overdraft options, credit cards, personal loans and more, so things like this will also play a role in your mortgage application.
The key for a mortgage applicant is how well you can manage these facilities. For example, having an overdraft and occasionally using it isn’t necessarily bad, though going over repeatedly will go against you.
They will also look for any missed payments on any personal loans you have and any undisclosed loans you have. You might be keeping up your payments, but failing to mention a regular outgoing won’t look great.
Finally, a mortgage lender may well consider how much of the month is spent overdrawn. Do you immediately go to credit on payday and spend the rest of the month struggling? How lasting is a mortgage for you?
The simple answer to this is just to be sensible and plan ahead if you can. Generally, a mortgage lender wants to see the last 3 months bank statements, to show your income and regular outgoings.
As such, if you are looking to apply for a mortgage in the future, you should be careful in advance. Take a break from gambling and showcase your bank account in the best light.
Your mortgage broker in London can help you during your mortgage process, as there may be mortgage lenders willing to take fewer bank statements.
The simple answer to this is just to be sensible and plan ahead if you can. Generally, a mortgage lender wants to see the last 3 months bank statements, to show your income and regular outgoings.
As such, if you are looking to apply for a mortgage in the future, you should be careful in advance. Take a break from gambling and showcase your bank account in the best light.
Your mortgage broker in London can help you during your mortgage process, as there may be mortgage lenders willing to take fewer bank statements.
Having said that, it is always important to be as careful as possible before applying for a mortgage because even lenders who are initially willing to accept less still reserve the right to request more if necessary.
Always ensure that you gamble responsibly! There is a warning for your financial and mental well-being.
If you are new to the mortgage world as a first time buyer in London applying for a mortgage, it is always recommended that you speak with a specialist mortgage advisor.
We are experienced in helping customers to obtain mortgages with bad credit, so even if your credit history doesn’t look great, there may still be options for you!
Once you have made an offer on a property in London, the next step of your mortgage process involves selecting a property survey. This is something that your mortgage advisor in London will help you with.
A property survey is carried out to determine the true value of a property. This can give the lender an idea of whether you have overpaid for the property. Depending on which type of property survey you choose, the survey may also highlight any damages in and outside the property and its overall condition.
If you have had your property survey carried out and it turns out that you are paying more than what the property is worth, your lender may down-value your final mortgage offer. This means that they reduce their initial mortgage offer (in your agreement in principle) to match the value that they think the property is worth according to the property survey.
In most cases, we recommend that you go back to your seller to try to renegotiate your offer, presenting them with your property survey. Hopefully, they will lower their asking price.
In some cases, they may want the full asking price, despite the property survey results. If this happens, you may need to make up the remaining total if you still want the property. If you cannot make up this amount, unfortunately, you may lose out on the property.
If you are a first time buyer in London and need further help with property surveys and understanding how they work, feel free to get in touch with our mortgage advisors in London, they will be more than happy to help!
Before you select a property survey, you will need to know the difference between each one and how different properties may require a different type.
The three main types of property surveys include:
A Mortgage Valuation is the most basic property survey, that will likely be carried out on all properties at the minimum. This survey will look at the true cost of the property and compare it to the offer that you have placed on the property and the mortgage you’re looking to take out.
This property survey is used for a mortgage valuation only, and will unfortunately not highlight any repairs that are needed on the property. During the survey, you may become aware of obvious defects, however, underlying issues and faults may not be brought to your attention. This is why sometimes getting a higher level of property survey can benefit you more.
A Homebuyers Report looks at structural safety and will highlight issues that need immediate attention. For example, if there is dampness existing within the property, it will be detailed within your Homebuyers Report. You will be given this report by an independent property expert.
To make sure that you are not two different property surveys, it is worth asking whether the mortgage company’s surveyor can carry out this report for you. It is also worth noting that a Homebuyers’ Report may take a few hours to complete.
This type of property survey features everything to do with a property. It included everything a Mortgage Valuation and a Homebuyers Report does, however, provides much more detail and insight into the property.
Depending on the type of property that you are looking to take out a mortgage on, a Full Structural Survey can take up to a day to complete.
As a mortgage broker in London, we would recommend that if you are looking at buying an older property, you should take out a Full Structural Survey on the property before buying it. Older properties tend to cost more to repair, therefore, you would want to know about these costs prior to purchasing the property and discovering the repairs needed further down the line.
If you are a first time buyer in London or moving home in London, we are here to help you select the right property survey for you and the property you are looking to buy.
We want to make sure that you make the right decision so that you know everything about the property before buying. In some cases, this could help you save money!
We are looking forward to hearing from you and helping you with your mortgage in London.
During the first few stages of the mortgage process, following your free mortgage appointment, your mortgage advisor in London will give you a mortgage illustration. When you receive a mortgage illustration document, this means that your advisor has found a product that they think is perfect for your personal and financial situation.
So, what is a mortgage illustration? In simple terms, a mortgage illustration is a document that outlines every detail of a mortgage product. When you receive a recommendation from your mortgage advisor in London, this document will include everything you need to know about this product.
As a mortgage broker in London, it is our job to help you find the perfect mortgage product. To find that product and present you with a mortgage illustration, you have to follow these steps first.
1. Book your free mortgage appointment online and provide your mortgage advisor in London with some of your details so that they can find the best deal for you.
2. Following your appointment, your advisor will begin searching 1000s of mortgage products in order to find one that matches your personal and financial situation.
3. Once they find a product for you, they will present their recommendation with a mortgage illustration outlining the deal.
4. If you are happy with the product and want to continue with us, we can begin preparing your mortgage application.
We aim to make this process as simple and as straightforward as possible. Especially if you are a first time buyer in London, you want the process to be stress-free and easy-going, just like us! That is what we are here to help with.
For a quick explanation of “what is a mortgage illustration”, watch Malcolm from MoneymanTV give his answer below. For videos just like this, check out our channel and subscribe for more videos!
Once you have received your mortgage recommendation, you will want to know all about the product and what it has to offer. Take a look at your corresponding mortgage illustration and you find the majority of these:
Your mortgage illustration will hold information on your fixed contract length, which lender you would be taking out the product with and sometimes your valuation fees.
In most cases, you will be charged a product fee – a fee for taking out a mortgage product. If you do not have to pay a product fee, this will be outlined in your mortgage illustration.
Your monthly mortgage repayments along with the total mortgage amount will be included in your mortgage illustration. Your interest rate will also be included along with the fixed term length.
Solicitor and legal fees are also included. As a mortgage broker in London, we will talk you through these when going through your mortgage illustration with you.
Most properties, especially older ones, will need a property survey before you can purchase them. Valuations are a way for the lender to determine whether the property is worth what you’re paying for it or now. Some surveys/valuations can be more expensive than others.
No, you do not have to continue with us and take your recommendation. However, it is recommended for a reason as your mortgage advisor in London has found one that perfectly matches your personal and financial situation.
If you choose to go elsewhere and find your own deal, unfortunately, you will not be able to take the deal with you.
Though we would love to say yes that it can, however it can’t. We can never guarantee any applicant a mortgage.
A mortgage illustration comes after your free mortgage appointment, therefore, you have not provided any documents to support income, source of deposit and affordability yet. You will need to show that you can afford to take out this product before continuing.
An agreement in principle (also known as an AIP) shows that a lender will let you borrow for them, given that you can back up your income, affordability etc. You will receive one of these following your free mortgage appointment to back up any offers you want to make on a property.
An AIP is not the same as a mortgage illustration. Remember that a mortgage illustration is a document outlining a mortgage product and an agreement in principle is a document saying whether or not a lender pre-approves your application.
As a mortgage broker in London, it is our job to help you find the most appropriate mortgage product based on your personal and financial situation. Whether you are a first time buyer in London or moving home in London, we are sure that you will find our service more than beneficial.
Remember that you will receive a mortgage illustration upon completion of a free mortgage appointment in London. This is simple and easy to book online. Answer a few questions so we can get to know you, then choose your preferred date and time and that’s it!
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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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Londonmoneyman.com & Londonmoneyman 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
