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Do I Have to use my Estate Agents In-House Mortgage Advisor in London?

First Time Buyer Mortgage Advice in London 

Being a first time buyer in London the process of buying a home, you will have no need to go to an Estate Agency Advisor. The Agent themselves may put forward the words implying that you will lose the property if you go with someone else but that isn’t the case. Estate Agents earn commission from when additional services are utilised by customers. 

Here are some of the tactics they may sometimes use: 

  • Estate agents may sometimes say that they are not putting your offer forward to the lender if you have not taken the route of in-house Mortgage Advice – This is an illegal practice. 
  • Quoting high solicitor fees – solicitor expenses do not have to be extortionate, especially for a straightforward purchase. 

What they will not tell you is that there are several other ways you can arrange a mortgage without using the Estate Agent and in this article, we’ll help you decide who to use for your mortgage and how to make sure you are receiving the full value for your money. 

Undertake your own process online 

Options are available online such as price comparison websites to let people know of available rates. Though it’s important to keep in mind that you will need advice at some point during the process because buying a house is a very big deal and it’s important that you get it right. 

Here are some important things to look out for if you want try applying online: 

  • The rates that are advertised online are ‘best buy’ rates and you may not qualify for this rate. Additionally, you might not meet that lender’s specific lending criteria. 
  • Some websites may only display deals which are included in a commercial arrangement with particular lenders. Other deals which might be better suited for you might not be visible. 
  • It’s also a good idea to check what fees are payable and when, and if your application is declined, if you’re able to get your money back. Sometimes the deals at the top of the list come with huge set up fees. 
  • If you choose to go about applying online, it is your responsibility to progress with your application. If you apply without trusted Mortgage Advice you will not benefit from any consumer protection. 

Go to your own bank for a mortgage 

The option of arranging a mortgage with your bank is also an option. Many people do this but it is less common nowadays. The trust that people hold towards banks is less frequent than what it used to be. 

Things to look out for when going to the bank for mortgage advice: 

  • Bank which only offer their own products, as they are not obliged to inform you of other cheaper deals that are available elsewhere. 
  • Banks are often reluctant to let you know why your application has been declined. Sometimes it is down to the difficulty of passing some lenders credit scores. 
  • It’s harder to get an out-of-hours appointment. 

Find your own Mortgage Broker in London 

Some homebuyers can be reluctant if they have to hand over their financial details to an Estate Agent and become dubious that the vendor may find out they are in a strong financial position and end up paying more than they should for the property. 
 
Some Estate Agents might imply that their vendor would prefer you to go along and arrange a mortgage in-house. Although this won’t be entirely true, the vendor simply cares about the individual being in a financial position to proceed. 
 
Make sure to see a Mortgage Broker in London which isn’t connected to the Estate Agent and ask for an Agreement In Principle. From this, you will then be able to provide this document to the Estate Agent to prove that you are in a ‘proceedable’ position. You will also be asked to evidence your deposit and ID. 

A reliable Mortgage Broker in London will offer to guide you through the full process of buying a home to make sure that you are provided with transparent, open and honest Mortgage Advice in London. Be sure to take up the advantage of a free mortgage consultation and find a Mortgage Advisor in London you like and trust. 

Contractor Mortgages & the Gig Economy

Can I Get a Mortgage as a Contractor? | MoneymanTV

Contractor Mortgage Advice in London

Nowadays there are well over a million people in the UK working in the ‘gig economy’ as contracted workers. Because this career is technically freelance and they’re working short term contracts, a lot of these people aren’t entitled to many benefits that permanent employees get e.g., sick pay or holiday pay.

We’re finding that most of these workers are either operating in some form of professional service, are both skilled and unskilled manual workers (e.g., carpenters, electricians etc.), and due to the increase of internet based shopping, many are now taking up careers as couriers and delivery drivers.

Unfortunately, gig economy workers will naturally find it a lot more difficult when trying to obtain a mortgage, because the mortgage lenders will be treating them as self-employed mortgage applicants.

Increase Your Chance at Mortgage Application Success

For you to increase your chances of having a successful mortgage application, an applicant will need to demonstrate a strong history of employment. One year’s history is probably the minimum that will be required to qualify for a mortgage, unless you have an upcoming contract set to last for quite a long duration. If your contract is due to last a few years with the same company, you may not be seen as self-employed, depending on the lender.

If a lender opts instead to treat a mortgage applicant as a sole trader, then you will need to provide the lender with proof of your net profit. This is the amount that is earned in total, with expenses taken off. For this, you may find that you need the services of an accountant.

If the person applying for the mortgage has set up their own limited company, then the majority of lenders will be making their calculations based on the total of declared salary plus dividends.

Mortgage Lender Flexibility

The way that mortgage lenders are choosing to assess contract workers seems to be a lot more flexible now, likely due to the high number of them currently existing within the economy. If a person has been working this way for a while and currently holds a contract, then depending on the industry, some may have their incomes assessed through their ‘day rate’.

If day rate is assessed, they will take that amount and then times it by 5 and times that total by 46. The reason for this, is lenders know that a Contractor is unlikely to work 52 weeks a year, even if they are not paid for any holidays they take. As such, they work off a 46 week basis. This method of calculating works well for IT contractors especially, as they have the options to choose what contracts they take and when.

Self-Employed Mortgage Advice in London

If an applicant is self-employed in London, it is advised to be organised as best as you can, collating what is needed in advance prior to applying for a mortgage in the same way that a contractor applicant would. It’s also important to remember that if you are wanting to apply for a mortgage, a potential lender will be wanting to see healthy levels of earnings that are sustainable. As such, you may end up paying a bit more tax.

Regarding the place of zero-hour contracts in all this, it is possible for someone with these who is applying for a mortgage to obtain one too. Once again, a mortgage lender will want to see 12 months’ earnings before it is possible to apply for a mortgage. They will consider taking an average of earnings, rather than a full year.

Sole Name Mortgage Advice for a Married Applicant in London

Are you married but wanting a sole name mortgage?

For the most part, married applicants will choose to take out a joint mortgage, rather than one half of the couple taking out a sole name mortgage. The reason for this is because in a lot of cases, utilising two salaries together will allow for you to qualify for larger mortgages, which can be used for larger or more expensive property.

That being said, you may find that there are situations where one salary is more than enough to justify the amount you’re looking to borrow. There may also be other reasons as to why one applicant doesn’t want to go on the application.

When is a sole name mortgage worthwhile?

Previous credit problems

A common occurrence that we find pops up during these circumstances, is that one applicant has a previous credit problem, such as bankruptcy or a CCJ. This can unfortunately stop some applicants getting a mortgage. In these cases, taking out a sole name mortgage could be necessary to purchase a home, though this would mean that the spouse or partner would not be connected financially.

It is important to note that creating a financial association with your partner is risky, as if they handle their finances poorly, your credit score could be affected.

Borrowing capacity

Another example of where it may be beneficial to make a sole name mortgage application might be when one person is out of work. Generally speaking, the maximum amount a couple will be allowed to take out (borrowing capacity) is lower than it would be if the working applicant happened to take out the mortgage in their sole name.

Age can also become a factor of the calculation, especially if one of the applicants is over the age of 50. An example of this, is let’s say you are a first-time buyer in London who is planning to buy with a younger partner.

If your partner is earning a substantial amount, being tied to someone who is a bit older may limit the amount they could earn, thus leading them to apply in their own name.

Tax implications

You may find that there are stamp duty or other tax implications which could lead to an applicant having the preference to apply on their own.

How can a mortgage broker in London help?

Some lenders may have stricter criteria when it comes to married applicants having to apply for mortgages in joint names. The reason for this is because they are very likely to be concerned that this could in some way affect their future security, especially if the couple were to ever unfortunately split up.

Luckily not all lenders share this view, as it is a little prejudicial. If you would like to discuss your circumstances and get the ball rolling on your mortgage, please get in touch. Our experienced mortgage advice team are here to help all customers, whether you be moving house in London or a first-time buyer in London, 7 days a week. 

How Much Can I Borrow for A Mortgage in London? Then Versus Now

First-Time Buyer Mortgage Advice in London

How Much Can I Borrow For A Mortgage | MoneymanTV

If you are looking to figure out roughly how much you are able to borrow for a mortgage based on your household income, it may be worth your time taking a look at our free mortgage calculator.

If you would prefer to have a more accurately estimated mortgage affordability figure, please get in touch and we’ll book you in for a free mortgage consultation to speak with one of our mortgage advisors in London.

As an experienced mortgage broker in London, the two most common questions we find that first-time buyers in London and home movers in London ask us are, “can I get a mortgage in my situation?” and “how much can I borrow?” In this mortgage guide, we will be taking a closer look at the latter of the two, in which we will take a look at how things were historically, followed by what happens now.

To skip past the historic rules and just see where we are today, please click here.

Historic Rules

Taking a look back to the 80s and 90s, pretty much all mortgage applications were manually underwritten. What this means is that the process of approving mortgages was very much left to real people and not just machines. You would call up your local building society, book in for an appointment with your building society manager, and they would interview you to discuss the case you have presented them with.

From there you could probably guarantee that this would inevitably turn into a sales pitch, where they would encourage you to start saving with them for a while until you can prove to them that you are creditworthy. The manager would then grant you what was a past equivalent of today’s Agreement in Principle. Following this, the customer would then be given some advice on the amount that they may be able to borrow.

Whilst from the outside looking in this sounds very much like a highly personalised process with a simple and common-sense approach, it had a habit of leading to rather inconsistent decision-making. The manager had the discretion to interpret the lending manual in the way that they wanted to. In other words, it was realistic for you to approach the same building society in a different location altogether and leave, having obtained an entirely different outcome than the more local branch you had gotten in touch with.

To make sure this was prevented and more importantly, to cut any costs that weren’t necessary, lenders moved to automated affordability calculations. We saw caps introduced, which were applied as a means of allowing to lend customers sometimes 3 or even 4 times their annual income.

As we headed towards the 2000s, lenders relaxed themselves even more, becoming arguably even too generous in how much they would be willing to lend their customers. Some lenders would offer out self-certified mortgages, a process that meant no background checks would take place and the customer could self-certify their own income, even if the amount they were declaring was falsely inflated.

The market fell apart and these kinds of practices brought about the infamous Credit Crunch of 2008. The years that followed, between then and 2010, were incredibly challenging times. This was especially the case if you were trying to get onto the property ladder for the first time. It was at this point lenders had to change and much stricter lending criteria had to be put in place.

Nowadays Approach

Through lots of dedication and perseverance, the market recovered. In 2014 the regulator launched the Mortgage Market Review (MMR), a brand new and completely revised set of guidelines for lenders to follow in order to prevent the Credit Crunch from happening again. No longer were the old-style income multipliers available, which took little account of household spending habits.

It may come as quite the surprise, but prior to 2014, whether their credit histories were good or bad, two applicants that were earning the same income could more or less be able to borrow the same as each other. This was also not factoring in how much they were regularly spending. From that point came all-new affordability models, taking a much more forensic view of how exactly those who are applying for a mortgage handle their finances.

As well as this new cap, typically the majority of mortgage lenders will no longer go past 4.75 times your annual income, and they prefer to have an in-depth analysis of your spending habits. Your habits may entirely depend on your individual situation, such as having high childcare costs, a potentially large amount of credit commitments, and in some cases, any student loans to pay off. In cases like these, a mortgage lender will most probably offer you less than say your work-colleague who has far less outgoings.

We are always surprised by the large differences between lenders in how much, or little they will lend to some customers. From time to time, some lenders have been known to penalise low-earners. It could just be that they are not looking for that type of applicant. Some take pension contributions as a fixed outgoing so may lend, for example, a public sector worker with a significant pension deduction, less than a private sector worker.

Each of these different lenders have their own unique lending criteria, and each customer has their own situation unique to them. If you need to maximise your borrowing capacity to have a chance at buying your dream home, then you’ll definitely benefit from the expert advice of a dedicated and experienced mortgage broker in London. Our team will be able to search the market on your behalf, to try and match a you to various lenders criteria.

If you find yourself wanting to know exactly how much you should borrow for a mortgage and are ready to go, please do get in touch and speak to one of our mortgage advisors in London today. We’ll sit and work out your finances with you, to ensure you are comfortable with the amount you’ll be paying back each month.

Fast & Friendly Mortgage Broker in London

What is a 95% Mortgage?

A 95% mortgage is as simple as the name would suggest; you are borrowing against 95% of the price of a property, and then you are covering the remaining 5% with your deposit. An example of this is if you looked at buying a property that was worth £150,000 with a 95% mortgage, you would be putting down £7,500 as your deposit and borrow the remaining £142,500 from the lender. 

95% Mortgage Advice in London

Off the back of the March 2021 Budget, Boris Johnson announced a Mortgage Guarantee Scheme for mortgage lenders, making 95% mortgages more readily available from the bigger high street banks.   

This is fantastic news for First-Time Buyers and Home Movers alike, as this scheme will continue running until December 2022. Certain terms and conditions will apply though, which is something your Mortgage Advisor in London will be able to look at, to see if you qualify.    

All our customers who opt to Get in Touch will receive a free, no-obligation mortgage consultation where one of our dedicated mortgage advisors will be able to make a recommendation on the best possible route for you to take.

Can I get a 95% mortgage?

95% mortgages are usually accessible by both First-Time Buyers in London & those who are Moving Home in London. Whilst saving for a 5% deposit sounds like a pretty straightforward concept, you’ll still need to have an acceptable credit score and prove that you are able to afford your monthly mortgage repayments, in order to access a 95% mortgage.

Improving your credit score

A good credit score is essential in the process of obtaining any mortgage, especially a 95% mortgage. Things like paying any current credit commitments on time, ensuring your addresses are updated and checking that you’re on the voters roll, can all help with your credit score.

Affordability 

Affordability is another one that is important to take note of. By giving the lender details of your income and monthly outgoings (things like your bank statements will be necessary for this) and any pre-existing credit commitments, your lender will be able to get a general overview of whether or not you are able to afford this type of mortgage.

Can my family help me get a 95% mortgage?

Nowadays we see lots of family members helping each other get onto the property ladder, especially parents looking to further their children’s lives. The way this usually happens is by gifting the person looking to find their home, the deposit required. Known through the industry as the “Bank of Mum & Dad, Gifted Deposits are only intended to be a gift, and not as a loan. The lender will need proof that this has been agreed, before it can be used towards your mortgage. 

How do I choose the right 95% mortgage?

When looking for a 95% mortgage, you want to make sure you have the right type of mortgage. Each mortgage type works differently, with that choice allowing you to find one that is most appropriate for your personal and financial situation. 

Some homeowners and home buyers prefer Fixed Rate or Tracker Mortgages, mortgage types which mean you either keep interest rates at a set amount for the term given or have your interest rates tracking the Bank of England base rates.

Alternatively, you might find that Interest-Only or a Repayment Mortgages are more your style. Interest-Only allows cheaper payments until you need to pay a lump sum at the end (mostly now used for Buy-to-Lets), whereas a Repayment mortgage (a normal mortgage if you’d like) means you’ll be paying interest and capital combined per month.

How can a bigger deposit help with my mortgage? 

Seeing as a mortgage is such a large financial outgoing, you need to be prepared and need to be aware. You might find things like higher interest rates, remortgaging difficulties due to less equity and then negative equity all cropping up if you’re not. 

There is no need to worry though, as all these can be avoided if you’re savvy enough with your process to begin with. The more deposit you put down for a property, the less risk the lender will see you as. 

A larger deposit, of say 10-15%, would not only reduce the rates of interest by a noticeable amount, but would also give the property more equity and reduce the risk of negative equity, thanks in part to you borrowing less against the property. 

So, whilst the risks may seem intimidating, planning ahead and saving for a bigger deposit to access something like a 90% or even an 85% mortgage will be a massive help in your mortgage journey and something you’ll be able to reap the rewards from in the future. 

What Do Lenders Look for on Bank Statements?

Mortgage Advice in London

When applying for a mortgage, your lender will ask you for multiple different documents to support your application. One of the most important things that they will ask for are your bank statements.

Bank statements allow a lender to see exactly how an applicant spends their money. They will be able to analyse how often you spend your money, what you spend your money on and how much you have left each month.

Lenders want to see that someone is managing their money responsibly and will be able to maintain their mortgage payments each month. Lenders need to be confident when accepting an applicant, they will never accept an applicant that won’t be able to keep up-to-date with their payments.

What Do Lenders Look For On My Bank Statements? | MoneymanTV

What bad things are lenders looking for?

Gambling transactions

One of the first things that a lender will notice on bank statements is gambling transactions. Whether it’s a common reoccurrence or a now again gesture, gambling rarely goes down well with lenders. Of course, the more that you do it, the harsher the impact on your chances of being accepted for a mortgage with them.

In fact, if you barely gamble, it won’t really make a difference to your application, your lender will be able to see a few transactions and probably allow it. There isn’t anything illegal about gambling, however, you should know that gambling agencies always say to “gamble responsibly”.

Neither us nor the lender can never tell you how to live your life but on the other hand, we can tell you to be responsible and be aware that you may struggle to get a mortgage if you are frequently gambling and losing monies in large sums.

You have to think as if you were in their shoes. Would you lend money to someone who gambles frequently or someone who never gambles? Lenders will only lend to a borrower that is reliable.

Dipping into your overdraft

Lenders will not be impressed if you are consistently dipping into your overdraft. If you are only touching your overdraft now and again, your lender may not be too fussed by it, however, if it’s every single month, your chances of being accepted for a mortgage may be lowered. To make matters worse, if you are exceeding your overdraft limit every month, lenders will not take this lightly and could even be completely put off.

As you know, another thing that lenders look for on your bank statements are gambling transactions. If you are dipping into your overdraft because of gambling, lenders may have little interest in your application. Having a combination of the two leading factors to why lenders turn away applications on your bank statements unfortunately never ends well.

Loan repayments

Showing that you are capable of repaying loans on time is a good indication that you are reliable. If you are managing to meet your payments easily, it will always look good on your application.

Furthermore, this can backfire though if you are taking out too many loans. Yes, it can be good to pay off loans to show that you can manage your finances to meet the payments, however, it also shows that you maybe didn’t have the money at the time that you applied for the loan and you hoped that you would be able to pay it off when the time came. Once again, as a Mortgage Broker in London, we advise that you be cautious with your finances and take a smart approach.

Bounced direct debits

Bounced direct debits occur when pre-arranged fees are charged on your account and you don’t have the sufficient funds to pay the fee. For example, if you are on a mobile phone contract, you will have a recurring bill which is usually monthly. If you forget about this bill and end up spending the money that you needed to save, the provider will try and take the money from your account despite it have nothing in. This will show up as a bounced payment, and if it happens regularly, your lender may think that you are unreliable.

This doesn’t just apply for mobile phone bills, it also applies for credit card charges, memberships/subscriptions and basically anything that you’ve made a pre-arrangement to pay back.

To summarise bounced direct debits, make sure that you are keeping up-to-date with your ongoing financial commitments and that you are meeting bills and fees before their due dates.

What good things are lenders looking for?

Managing your finances

Now that we’ve covered the things that lenders don’t want to see on your bank statements, let’s take a look at what they want to see.

Firstly, they want to see that you can manage your finances. This could mean clearly evidencing your savings and showing that for the past 3 months you’ve been putting money into a savings account and not taking any back out. It could simply be that you have lots of spare cash left at the end of the month, either way, this will look good and should impress your lender.

Tax payment planning, prudent spending and budgeting your expenditures are different ways to help you manage your money. The more cash that you have remaining at the end of the month, theoretically, the better mortgage deal you should be able to access.

Evidence

A lender can be impressed by your bank statements, but where is all of the money coming from?

You’ll need to evidence where your money is coming from, e.g. your income and bank transfers. This does work both ways though, if there are large transfers going out of your account, you will need to back them up too. On another note, if you are Self Employed in London you will need to evidence your latest 2 years’ tax calculations and corresponding overviews.

Evidencing your deposit is a huge part of your mortgage application and so is evidencing incoming and outgoing lump sums of money that appear on your bank statements. If you can evidence these with no hassle, your lender should gain more trust in you and your application, making you more likely to get an offer.

How can I improve?

As a Specialist Mortgage Advisor in London, we always advise applicants to plan ahead and always be sensible. Think responsibly and make sure that you are making yourself look the best that you can.

Remember that your bank statements will show your salary credits, your regular bill payments and your bank transfers. With this in mind, it’s very important that you make sure that everything is evidenced and paid off. It may even be worth taking a break from gambling during the months leading up to your mortgage application in London; your bank statements will be put into the best light possible this way.

If you need help during the mortgage application process and want assistance in making your bank statements show your reliability, feel free to get in touch with our Mortgage Broker in London.

What Can I Do If I’ve Been Declined For a Mortgage in London?

Mortgage Advice in London For Complex Situations

Each mortgage lender works differently, using their own different ways of deciding who gets accepted for a mortgage and who unfortunately doesn’t. Some lenders criteria are harder to match up against than others may be. The key to success all depends on how strict they are and how good your credit score is.

Through our many years of service, we’ve often found that mortgage applications are declined for no other reason because the customer does not meet the right criteria for that particular deal. It’s reasons like this why it’s always worth your time seeking the advice of a dedicated mortgage broker in London. Our team of experienced and loyal advisors will work hard to get you the most appropriate lender for you and your personal circumstances.

How can I avoid disappointment from a mortgage?

The first thing you should always do before you apply, is take a look at your credit file to see whether or not it is of a high standard. If it isn’t looking so good, then you will need to look at various ways to improve your credit score. Speaking with an open & honest mortgage broker in London, you’ll be able to learn what to prioritise when improving your credit score.

You must always remember that very few people indeed are realistically eligible for every deal that is available to them. This means that for the most part, homebuyers and home movers are just searching for the wrong mortgage deals. Just because you have seen a deal that is cheap and eye-catching, it doesn’t mean that you will pass the lenders criteria and qualify for that particular deal.

As an experienced and dedicated Mortgage Broker in London, we would always recommend that you properly research into the different types of mortgages available or Get in Touch to benefit from a free initial mortgage consultation.

What are other mortgage applicants doing?

A regular occurance over our years of mortgage advice is customers using price comparison websites to find a mortgage in London. Whilst there may be nothing wrong with this, you need to remember that the price comparison websites are only able to analyse the different costs of mortgage deals, as opposed to matching you to all the different nuances of a lenders criteria.

This process can end up wasting a lot of time, as the mortgage lender may finally declines your case weeks down the line. It’s because of this that you may end up losing the property you were hoping to buy or breaking down a property chain that you were a part of. You may also find yourself getting declined because you picked the wrong mortgage, an act which could actually damage your credit score due to a failed application.

Reduction in your mortgage loan amount

Customers may find themselves being eligible for a wide variety of mortgage deals, but in order to match the criteria for those deals, the lenders may end up only offering you a reduced deal. This seems to happen on a regular basis, with lenders first having a tendency to say that you can borrow a set amount, only to later change their mind and find a way to reduce the previously available mortgage.

As we’ve touched upon, all lenders have their own unique way of handling the mortgage process. You will often find that there is a big difference between mortgage lenders and it’s very unlikely that you are going to match up against all of their individual criteria. You need to narrow down your options and work out what the most appropriate option will be.

Accepting help from a dedicated mortgage broker in London

It doesn’t matter if you’re a First-Time Buyer in London or looking at Moving Home in London, we always believe that getting in touch for some expert mortgage advice will help you out during your mortgage process. Our dedicated team will support you throughout your journey, and try to find you the most appropriate mortgage deal for your personal circumstances.

Over the years we have worked alongside thousands of customers, assisting with specialist mortgage cases to help them find a level of success with mortgages that they otherwise thought they’d never achieve.

By approaching a trusted and dedicated Mortgage Broker in London, you’ll also be able to learn how best to improve your personal credit score, in the event of any unfortunate financial circumstances.

If you need help with a Specialist Mortgage situation, Get in Touch today with a Mortgage Broker in London for your free initial mortgage consultation.

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.

Help to Buy & Equity Loan Remortgage Advice in London

Help to Buy Mortgage Advice in London

Market Update: Help to Buy Equity Loan & Shared Ownership

A Help to Buy introduction

In the time period that followed the credit crunch, during 2013, the UK Government introduced a new mortgage scheme with the intention of strapping a rocket to the property market and hoping to see it soar once again. This new scheme was called Help to Buy and its mission was to assist First-Time Buyers in London in finding their footing on the property ladder.

At long last, thanks to Help to Buy, there was confidence in the market once again. Things were not completely normal, however, as homeowners and lenders alike were still left a little cautious. Mortgage lenders were being very careful with who they lent to and how much they gave out to borrow.

There are multiple different Help to Buy schemes, with some going strong since 2013, and others that have not. One of most popular Help to Buy schemes is called the Help to Buy Equity Loan, a scheme that is still available to this day for customers to take advantage of if they need to.

Help to Buy Equity Loan

If you are an inexperienced First-Time Buyer in London, the Help to Buy Equity Loan scheme could be an incredibly helpful way to get yourself onto the UK property ladder. There are requirements, but they are quite straightforward;

  • You must be applying for a mortgage for on a newly built property.
  • You must be a First-Time Buyer. You used to able to access the scheme as a home mover, however this changed as of December 2020.
  • At application point, you must have a deposit of 5% or more.

It’s at this point that the Government will loan you up to 20% to make up the total of a 25% deposit. For example, if you have a 10% deposit, the Government will loan you 15%; you have 7% they loan 18%, and so the pattern continues.

Deposit & Equity Loan Estimates – Londonmoneyman

It is very important to remember that this Equity Loan is a loan and not just free money. This means that the loan will have to be paid back on top of your 75% mortgage. You get a period of 5 years to pay back this loan interest-free, though after these 5 years, you will start gaining interest on the remaining loan amount, starting at 1.75%.

Remortgage for your Equity Loan Repayment

You may have already accessed the scheme and have reached the 5 year period for your interest-free loan, unable to pay off the remaining balance before interest accrues. You may find the help from an expert Help to Buy Mortgage Advisor in London extremely useful as you may need to organise your repayments via the route of a Remortgage.

In taking out a Remortgage in London, it may be possible to combine your remaining mortgage amount and your equity loan amount into one set of monthly repayments. Once again, if you are struggling to meet your repayments, it may be worth your time speaking to a professional Remortgage and Help to Buy expert in London.

Shared Ownership

The Help to Buy Shared Ownership scheme was introduced as a means of allowing homebuyers to purchase a percentage of a mortgage and then pay the rest back with monthly rent repayments. The share percentage of the home that you buy will likely be between 25-75%. The remaining percentage on the property belongs to the housing association.

This means that you share the property and you don’t own every bit of it. The percentage of the property that you own can be increased further down the line. As an experienced Mortgage Broker in London, we usually find that people increase their share in the home once they have settled in or when they have more money spare to do so.

Help to Buy Mortgage Advice in London

If you are in need of Help to Buy Mortgage Advisor in London, our team are here to help. As a company we have been helping struggling customers secure Help to Buy mortgages for many years now and know how to guide First-Time Buyers through the mortgage process.

Our advisors are available from 8am – 10pm, 7 days a week, so don’t hesitate to Get in Touch with us for expert Help to Buy Mortgage Advice in London.

Top 5 Mortgage Hurdles We Find That People Encounter

Hurdles Based We’ve Seen As a Mortgage Advisor in London

Every now and again, we come across various mortgage hurdles. They’re not completely impossible to work around, but can often prolong the process. Below we have compiled a list of the top 5 hurdles we’ve come across in our time as a mortgage broker in London.

Childcare Fees

Through our experience of providing first time buyer mortgage advice in London, we’ve found that families are not normally turned down for a mortgage because of childcare fees. That being said, it is extremely common for a lower mortgage amount to be offered.

This becomes more apparent when parents have gone back to work and are paying out for childcare costs, as sometimes these can cost hundreds of pounds per month. These costs are considered by lenders as regular outgoings, the same as they would treat something like car repayments.

Even if there are no nursery fees to pay, parents on lower-income still generally get offered less than those who do not have children. The good news though is that the amount that families using this service can often be in receipt of tax credits and some lenders will also take these into account as well as child benefit.

There are lenders out there that have their own unique approach and don’t treat the nursery costs as a specific outgoing, opting to rely more upon Office of National statistics data for typical outgoings. This as you may expect, can often lead to a higher maximum mortgage amount.

Divorce/Separation

It’s always a shame when a partnership ends, but often it’s for the better. Where it can cause problems, however, is when you have made joint financial commitments. Trying to fix that side of things does not always run as smoothly as you maybe would like.

Here are the three main questions we get asked regularly;

  1. How can I remove my ex’s name from my mortgage?
  2. Can I have 2 mortgages?
  3. How do I remove my own name from my ex’s mortgage?

More often than not, there are ways around these and is somewhere we may be able to help, providing that you have enough income available and also are young enough for the mortgage payments to be affordable. 

Benefit Income

All lenders have their own views on benefit income and how much of it can be assessed.  You may be pleased to find that all benefit income such as child tax credit, working tax credits, disability benefits, pension income can be taken into account in some form, when it comes to a mortgage. This is where the help of an experienced mortgage advisor in London can prove invaluable, helping you throughout the process.

New Job

Usually with a new job comes a bigger salary and the extra income to put towards a mortgage. Any gaps in employment and a new job can cause some problems for various mortgage lenders. 

There are lenders who will work from a newly signed employment contract though, even if you’ve only just started or are soon to start a new job. They’re also usually okay with probationary periods.

Evidencing The Deposit For a Mortgage in London

For any purchase, all mortgage lenders require you to prove your deposit, as a means of showing you can in fact proceed. This is to satisfy UK Anti-Money Laundering Legislation. Your solicitor and estate agent may ask you to provide evidence of your deposit also.

We believe, that evidencing your deposit can often be the most complicated part of applying for a mortgage. Whether your deposit is from savings, premium bonds, the sale of another property, gifted from a family member or friend, from overseas family, or is from a personal loan, you are required to show exactly where your funds came from before you can go forward with a mortgage.

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

Londonmoneyman.com & Londonmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited registered in England, registered number 6789312 and registered office 10 Consort Court, Hull, HU9 1PU.

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