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10 Factors to Help You Decide Where to Live in London

Home Buyer Mortgage Advice in London

Whether you are local to the London area or are moving from outside of London, one of the main factors when moving home in London is knowing more about the area you are looking to live in.

Of course this is beyond just simply looking at where you would like to live. You will also need to look at how the area currently looks, what any of the nearby facilities are, what would be included in your dream property?

To help you to create a better understanding of the type of area that you would prefer to live in, we have put together a detailed list of the different types of factors that you, as a home buyer, need to look out for when you are looking to find a new home in London. 

1. Busy city or relaxing countryside? 

Make sure to come up with an idea of the type of area you would like to start living in, after all you will likely be living within that property for a long time.

Seeing as London is mostly made up of city properties, it is perfect for those who prefer a more urban lifestyle. Of course if you prefer the country life, that’s going to be a little more challenging, as you may need to move slightly further afield towards the outer areas of London.

2. Transport Links 

Tying into the previous point, if you are looking to move more to the outside of London, rather than closer to the center, you will of course need to make sure there are plenty of transport links, especially if you do not drive.

Whether it is for work, to see family and friends or for the night life, transport is key to any area. Fortunately, because of the significance of London, you will find plenty of transport links allowing you to commute to and from the city itself.

Whilst that in itself is a positive, there is a cost element. What type of public transport are you taking? How much does it cost to get there and which method is most cost effective?

If you are driving, how much fuel will you need to pay for per week? These are all important things to bear in mind before making a decision.

3. Schools & Education 

If you are a home buyer who has their own children, you should do some research on what the nearest schools are. Review the school league tables and any Ofsted reports, in order to get a better idea of what they may be like.

If you currently don’t have any children, whether it’s on the cards for the future or not, it’s always worth checking this just in case, as a way to future proof yourself.

4. Nearby Facilities – What You Need Vs What You Want 

When you are making plans to live within a certain area, it is important to prepare for various facilities you would like to have nearby. Making a list of this is always handy, noting which ones are essential and which ones you just really want.

For example, if you would like to have any nearby shops or gyms, take a look at the local area to see what is there. Closer to the center of London, you are likely to find most of what you are looking for. The downside is that these things may be busier or cost more.

Of course if you’re living further away from London, you may need to prioritise what is essential, but you will have the benefit of these possibly costing less. Remember that shops probably outweigh facilities like a gym, due to the needs of general living.

5. Friends and Family 

Some people will factor in how far away their family and friends are, into where they are looking to live. Many will want their family and friends nearby, especially if they have kids. Others may prefer a quiet life, only socialising sporadically.

This relates back to the transport links topic too, as even if you are a little bit away from family and friends, you may still be within viable travelling distance, due to the amount of transport options around the area.

6. Is the property good value for money? 

Everyone wants to have something that is worth the money they are paying for it. This will entirely depend on the area you are looking to live in, especially when you consider London property prices.

Generally some people may look to go for a cheaper property initially, compromising on features and facilities they would’ve liked, in order to save some money, before moving later down the line.

With London being as expensive as it is, one of your compromises may be the area itself, if you would prefer the urban life. This is because these houses tend to be at a premium cost, and you are probably getting more value for money further out of the city.

7. What is the community like? 

An area is often defined by the local community. Some may prefer a quieter life, staying to themselves, whereas others may prefer to have a much busier community. It’s always worth speaking with an estate agent to learn more about what it’s like.

Additionally, there may be a community Facebook page or local newsletter to take a look at, as those have become more popular over recent years. Once again, because of London and the wider areas significance, a lot of information and opinion can likely even be found online.

8. Career Changes 

A lot of home buyers will be looking for a new home because they will have found or will be on the search for a new career. It is important to look at the level of distance between your new home and your new workplace.

As touched upon, many people will commute to work in London from the outskirts, with plenty of transport links to choose from. This makes quieter, more affordable living a much more viable option. Some people prefer to work from home, so this may reduce the need to travel to work.

9. Property Type 

There are various different types of property that are available on the property market, with the area you are looking to buy in being a factor in which type is more prevalent.

Some will prefer to live on an end-terrace with a garden to relax in on a sunny day, whilst others would much rather live in a modern flat or a studio apartment.

Make sure you review all of the different options that are out there for you. Look at the viewings to get a good idea of what sort of property you would prefer to live in.

10. Local Developments 

Any information you can obtain regarding future improvements in the area you’re looking to live in is also useful to have, especially if you’re looking to build a life within that new home and stay there for a number of years.

Online research will definitely be worth your while when you are looking to find any future investments. It’s important to consider whether or not these will be beneficial to you and your lifestyle.

If you prefer a quiet country life, your ideal perfect world may be turned upside down if there’s any plans for a sudden big housing development nearby.

Moving Home Mortgage Advice in London

When the time comes to start making offers on a property and getting yourself a mortgage, it is worth getting yourself booked in for a free mortgage appointment. Our fast & friendly mortgage advisors in London will be glad to help!

We work from early until late, every day of the week and including some weekends and bank holidays, subject to appointment availability. 

Whether you need help as a first time buyer mortgage in London or are moving home in London, we will be more than happy to help you along with your mortgage journey.

Can I Get a Mortgage on a Fixed-Term Contract in London?

Fixed-term contracts were once considered to be more of a less conventional form of income, though nowadays they’re a lot more commonly found.

As a general rule of thumb, the only difference between this fixed-term contract employment and regular employment, is how the contract that you have is structured.

Regular employment generally will typically mean you have to sign a contract at the start of your employment, which will remain in effect until you are either terminated or you hand in your notice to the employer.

If you are employed on a fixed-term contract, this will mean you are only a contracted employee for a specific length of time, as opposed to permanently. That being said, you’re still classed as PAYE, which is similar to what a teacher on a per year contract.

Is it possible to get a mortgage on a fixed-term contract?

Yes, it is absolutely a potential option. It may be a little challenging if you are looking for a first time buyer mortgage in London, though we do still have mortgage lenders on panel who will consider these types of circumstances.

Current Contract Length

How long your current contract length is can have an impact on whether or not you can obtain a mortgage. If your contract is a short-term one, you may find it even more difficult to take out a mortgage.

The reason for this, is because you are not guaranteed any sort of long-term employment. Coupled with a large, long-term outgoing such as a mortgage payment, this could be a risk to a mortgage lender.

Most mortgage lenders will want to see consistent, longer term contracts one after another. This will showcase to the mortgage lender that you are likely to keep on with regular contracted work, which in turn will help you in maintaining your mortgage payments.

In addition to this, you can further increase your chances of having a mortgage application accepted by having written confirmation from your employer that once your contract has ended, it will be renewed with the same employer.

Breaks in Employment

If you have had or are currently having any breaks in employment, mortgage lenders may see this as a problem due to their uncertainty of whether or not you can maintain your monthly mortgage payments.

On the off chance you have had any significant employment gaps over the course of the last 12 months, you may not be able to get a mortgage. This is dependant on the mortgage lender and their own criteria, though a more sustainable income may work in your favour more with some lenders.

Further to this, what is defined as a gap in employment will vary per mortgage lender. Some will see a week as a gap of employment, whereas others may deem 4 to 5 months as a gap.

An expert mortgage broker in London will be able to check lender criteria and match you up with the most appropriate one.

What documentation do I need to get a mortgage on a fixed-term contract?

In order for a mortgage lender to consider accepting your application for a mortgage, you will need to provide them with multiple pieces of identification.

The types of documentation you will need to submit to a mortgage lender, include;

  • Passport
  • Driving License
  • Proof of Address
  • Proof of ID
  • Most Recent CV
  • Most Recent Employment Contract
  • Proof of Previous Employment (If Possible)
  • Last 3 Months Bank Statements
  • Last 3 Months Payslips

An expert mortgage advisor in London will be able to take a look at your documents in advance, to make sure it is all suitable for passing along to a mortgage lender.

If they require any other forms of ID from you, they will let you know so that you are more prepared for your mortgage journey ahead.

How much can I borrow on a fixed-term contract?

It is very likely that, providing you have a solid history of consistent employment, with very few or no gaps and a contract with a good amount of time left on it, you will be able to apply for a 95% mortgage, only putting down a 5% deposit.

Unfortunately, because it is deemed to be a risk to the mortgage lender, if your contracts are more short-term or you have some gaps in your employment, you may need to put down a much larger deposit in order to secure a deal with a mortgage lender.

Can you get a remortgage on a fixed-term contract?

Perhaps you are already a homeowner. If this is the case and you are on a fixed-term contract, heading towards the end of your fixed mortgage period, you may be curious of the options you have present.

It is at this stage that we would greatly recommend getting in touch with remortgage experts like ourselves and benefitting from remortgage advice in London.

This is because on top of the possibility of new deals that you may be able to access, there may well have been a change in your income. Maybe you aren’t working as often as you were in the past? Is your average income lower than it used to be?

It is elements like this that can have an effect on your ability to remortgage your property. Depending, you may have limited options, perhaps even with extra costs.

Enquiring for remortgage advice in London with expert mortgage advisors is definitely recommended ahead of jumping in to remortgage your home.

Book Your Free Mortgage Appointment

For anyone who is curious about whether or not it is possible for a home buyer or homeowner to obtain a mortgage whilst on a fixed-term contract, the simple answer to this question is yes, it is.

In order for you to have a much better chance of getting a mortgage with these circumstances, book a free mortgage appointment today with a dedicated mortgage broker in London and we’ll see how we are able to help you.

9 Questions to Ask When Buying A House in London

First Time Buyer Mortgage Advice in London

Taking your initial step towards finally owning your own home as a first time buyer in London can be quite a stressful activity to undertake, especially if you don’t quite know what you’re doing.

Whilst this thought process commonly occurs amongst first time buyers and even some home buyers, though it’s our job to reassure you that this doesn’t always need to be the case!

You should always make sure that you’re ‘mortgage ready’, so that you’re best prepared for your home buying experience.

Below we have compiled 9 questions that you may want to ask when you are buying a house as a first time buyer in London.

The 9 Most Common Home Buying Questions:

1. How much interest has there been in the property/development?

It’s always better for you to seriously think about a property before you commit to a purchase, as taking out a mortgage in your name, will likely be the most significant financial commitment that you’ll ever make.

One thing that you should definitely find out more information about, is how much interest has actually been shown in your potential new home. If it isn’t very popular, you can probably take some time to decide.

If on the other hand, it is a popular property, you may have to decide a lot quicker than you otherwise would’ve liked to.

2. Is there a property chain?

If there happens to be multiple property transactions happening at one time, completely reliant on every sale and purchase being completed in order to proceed, you have found yourself a property chain.

Your mortgage process can be affected by a property chain if you find yourself in one, as this could slow down your ability to get a mortgage or potentially mean you lose out on the sale of your own property if you are moving home in London.

Luckily if your home is a new build, you won’t have to worry so much about a property chain, and you may be likely to move along the process a lot quicker, due to not having to wait for people to move out.

First time buyers in London will have the advantage even more so, as even if a small chain occurs, they won’t be selling a home to move into one. This is a good thing to mention when discussing property price with the seller.

3. What’s included in the sale?

You’ll quite frequently find that when some homes are purchased, the previous owner will have chosen to leave some items behind.

Items that tend to be left for the next owner, include electronic goods such as washing machines, fridges or freezers, as well as sometimes finding that a shed has been left in the garden.

This won’t apply to new build properties, as they are generally built on the conditions that are agreed upon before the work commences.

The advantage of this for first time buyers in London, is that you’re getting free items that often will be working just fine. The downside is having to pay to remove them if you don’t want them.

If you happen to be buying a new build property, there might additional items you can ask to be put in ahead of time, so they’re ready for when you move.

4. What are the neighbours like?

Another factor to think about, is what the neighbourhood is like. Do you have good neighbours or are they unfavourable? Things like this can impact your decision to actually move to an area.

If you are moving into a property that is on a new build estate, then you and your neighbours will be the building up an entirely new community, which could be a risk as it presents an unknown element.

5. How much does it cost to run?

The running costs of the property can often affect whether or not you decide to buy a property. These costs will be dependant on the area you are looking at, so it’s always best to ask in advance.

Make sure you ask about the costs of Council Tax, as well as the typical utility costs and other things like that. This can help you budget as you go around looking at properties.

6. Which way does the house face?

The way that your house is facing can also have an impact on your decision to buy a property. Some would much prefer to be able to relax during the summer evenings in their garden, reading a good book or enjoying a nice beverage.

You’ll often find that south facing gardens will cost a lot more money, due to the fact they’ll be getting much more sunlight during the day.

7. How much work will be required after moving in?

The amount of work that may be required after you have moved in might also affect your budgeting for the property. Here are some of the most common things that home buyers should keep their eye out for;

  • How energy efficient is the property you’re looking to buy? Will it end up costing a lot to run?
  • Is there any damp currently in your home? This may need fixing and it is not likely to be cheap.
  • Will you need to fix or update any furnishings? Will you be needing new carpets? Will your old furniture even fit?

8. Are you open to offers?

The house buying process will, generally speaking, begin with property price negotiations between you and the seller. It is important that you are prepared for this so that you are in with the best chance of your offer being accepted on a home you really like.

If you would like to learn further about the best ways to improve your chances during negotiation, please do not hesitate to get in touch. As soon as you are “mortgage ready”, you can begin making offers on properties you wish to buy.

The best way to learn whether or not the offer you are planning to make is too high, it to have a conversation with the seller themselves or even the estate agent, to discuss other offers that may have been made and rejected.

9. When can we move in?

Having a date in mind for when you can move in will allow you to plan everything else around it. You may need to instruct a conveyancing solicitor, pack up your belongings and then finally move them.

Speaking to the seller and finding out the earliest date that you could move in will allow you to be much more organised and prepared for the journey that lies ahead.

Moving Home Mortgage Advice in London

What is a Cashback Mortgage?

Cashback Mortgage Advice in London

There are many different types of mortgages, and some of them will be perfect for your situation and some will not. The type of mortgage that you obtain will be down to what you are looking to achieve and your personal and financial situation.

There are no ‘regular’ mortgage types, there are the most popular ones and the specialist ones. Cashback mortgages fit into the specialist category as they are only taken out in certain circumstances and they have become less popular over recent years.

Not all mortgages will be beneficial to you and your situation, and that’s why it’s important to shop around and make sure that you take out a product that is right for you.

How do Cashback Mortgages work?

After paying off your whole mortgage term (paying off your mortgage), you will receive a lump sum from your lender. You should not confuse this with your shorter fixed terms.

The amount that you receive back is based on a percentage of what you have borrowed. This percentage is something like 1% or 2%. This may seem like a small amount, however, if you took out a £360,000 mortgage, 1% is £3,600 and 2% is £7,200. Sometimes lenders may offer a little more, it depends on the lender.

Will a Cashback Mortgage benefit me?

There are pros and cons to Cashback Mortgages. First of all, like other mortgage products, you may be offered some extra perks for taking out the deal. These perks could include a free mortgage valuation or some other sort of fringe benefits.

Once you receive your lump sum, you will be able to spend it on whatever you want. We’ve often seen people use the money to improve parts of their homes such as an extension or conversion. Most of the Cashback Mortgage customers that we have dealt with are those taking out lower mortgages.

Unfortunately, Cashback Mortgages can come with high-interest rates, and that is what can put people off. You should speak to a Mortgage Advisor in London to get an idea of what rates you can access.

Different types of mortgages in London

There are many different types of mortgages. Some mortgages will not match your situation or the property that you’re purchasing, and that’s why it’s important that you find the right one. Finding the right one for you can be a difficult task though! This is where a Mortgage Broker in London like us comes in.

We can search 1000s of mortgage deals for you and we will make sure that you are on the best deal for your personal and financial situation. If you are interested in Cashback Mortgages and are considering taking one out on your property, feel free to get in touch. Getting Specialist Mortgage Advice in London could be very beneficial to your situation.

Follow our ‘Book Online’ process and book a free mortgage appointment with a Mortgage Advisor in London. Pick your own date and time, there are slots available seven days a week.

Mortgages for Newly Qualified Teachers (NQT’s) in London

Newly Qualified Teacher Mortgage Advice in London

Once you have completed all of the required exams and can proudly shout about becoming a Newly Qualified Teacher, it’s time to look at the next step. For you, this will be to make use of your new skills and find yourself a job using your well-earned qualification!

Depending on whereabouts you are going to be working, you may need to start exploring the different options that are available for you with Moving House in London, as you could possibly be working further away from where you currently live.

Soon enough you will find yourself looking to live elsewhere, perhaps maybe finding it a little more challenging than you would’ve expected to create a balance between homeownership and getting into your new role.

This is not something only you will be feeling, however, as we have worked with a lot of home buyers and homeowners throughout our time as a mortgage broker, all of whom needed someone to take the stress away whilst they keep their minds on their new career.

Newly Qualified Teacher Mortgages

It’s not always so easy trying to search for a mortgage lender who will be happy to offer a mortgage to someone who is a newly qualified teacher.

Problems tend to crop up due to either the fact that there isn’t really any work history they can look at or because they only have a temporary contract.

Although these can be an issue, there are still plenty of options for Newly Qualified Teachers who are looking to obtain a mortgage. Our dedicated team of Mortgage Advisors have helped many NQTs in their quest for obtaining a mortgage over our time as a mortgage broker.

Every once in a while, you may find that there are some mortgage lenders out there who have preferrable deals specifically suited to public sector workers such as teachers.

The key to making sure everything goes to plan here, is ensuring that you are with the best mortgage lender for your situation, which in this case is usually what would be the most challenging part of the mortgage process.

When issues like this arise, our experienced mortgage advice team in London will step up, taking the time to search through thousands of mortgage deals for you, doing everything we can to find you the perfect deal for your situation.

What mortgages for NQTs may be available?

You should always bear in mind that whilst yes, mortgages can be complex for Newly Qualified Teachers, you are not completely restricted in what is available to you on the mortgage market.

Here are some of the types of mortgages that we find that crop up the most when we are working with cases referring to Newly Qualified Teachers:

  • Help-to-Buy Schemes – A scheme that was created by the government with an aim to help first-time buyers who are in the market for purchasing a new build home.
  • Fixed-Rate Mortgages – A mortgage type that comes up quite a lot and it allows you to make sure that your payments are the same all throughout your mortgage term.
  • Shared Ownership Mortgages – Partially rent payments, partially mortgage payments. You will start off owning only a share of the property, with the remaining share being owned by a relevant third party, such as a housing association. This may make your monthly outgoings easier to manage.
  • Tracker Mortgages – A variation of a variable rate mortgage, wherein the movement of interest on your mortgage coincides with the Bank of England’s base rate, regardless of whether that is up or down.

The lender may look at a handful of other factors as well regarding to NQT mortgages. There are some known mortgage lenders out there who do not need to see previous employment and may allow you to obtain up to a 95% LTV (loan-to-value).

Depending on the mortgage lender that you go with, you may find that a 12-month first contract is treated the same as a permanent job role, rather than it just being seen as a temporary contract.

Finally, there may be a selection of mortgage lenders around the country who are willing to get started on your mortgage before you officially start your job, though to do this you will have to provide evidence of a signed contract and a confirmation of your start date.

This can come in quite handy, as you may potentially be prepared to start making your first mortgage payments at the time when you are due your first months wages from your new job, by the time your mortgage has completed.

How a Mortgage Advisor in London may Help

Our open & honest team of dedicated mortgage advice experts in London have extensive knowledge and experience of helping customers across the mortgage and property markets, providing help to lots of first time home buyers with their mortgage needs

There are a great deal of benefits to using the services of a trusted Mortgage Broker in London. We always strive to take away your stress, looking through thousands of different and tailored mortgage deals for you, our customer, suggesting possible conveyancing solicitors for you to use and more.

Find out what you may have available to you as a first time home buyer, by getting booked in online for a free mortgage appointment with an experienced and reputable mortgage advisor in London, who will collect information from you and help you onto the next step of your journey.

The Main Reasons People Decide to Move House in London

Home Mover Mortgage Advice

There are various different reasons why someone may want to move home, ranging from common to unique. For the purpose of this article, we are going to narrow them down to the most common reasons that we have come across throughout our time as a mortgage broker in London:

More living space

Over our years of service within the mortgage industry, we’ve heard of many borrowers that wanted to move home down the size of the property they currently live in.

This is something that we often foresee with customers, as first time buyers in London usually go for a smaller property to start with, only for circumstances change down the line and leave them needing a much bigger living space. An example of this is that they may be looking to start a family and are in need of some extra room. Alternatively they might just generally want a bigger home than they currently have.

Rather than moving home in London, some homeowners look to raise capital by taking out remortgage in order to fund home improvements, such as to build an extension/conversion. This is an increasingly popular option, especially with growing families and could give that extra bit of space you need, whilst retaining a place that no doubt has grown in sentiment over time.

It seems to be quite commonplace for parents to look at converting their loft into a bedroom for a child, leaving any available spare rooms free to be converted into something like a home gym or home office.

There are endless possibilities. People may also take out a remortgage for home improvements, in order to raise the value of the property, just in case they ever look to sell it. This creates opportunity for turning a larger profit from the sale.

Change of scenery

In the occasional case, we hear that some homeowners simply wanted a change of scenery and were quite intrigued to try out completely different areas.

You’ll commonly find that this section of borrowers tend to once again be first-time buyers, who had a limited budget and stuck with a lower-end property for the time being, due to slightly more reasonable house prices. It’s likely that these borrowers now have a higher income than they used to and are wanting to live in a more affluent location.

People don’t really factor in the choice of schools on offer when moving into their first home, as at that point in time, the notion of starting a family might not have even been a thought. Homeowners who have started a family of their own or have definite plans to will always make sure they research accessible education within the area they’re interested in moving to.

Family & friends

When taking out their free initial mortgage consultation, some customers tell us that the reason they wanted to move is to be closer to both their friends and family. This sort of situation comes up when couples start their family.

If both parents have full time careers, then they will tend to ask their own parents to help them out with childcare, as a means of cutting costs. Private nurseries are rather expensive to factor into your regular outgoings, especially with a mortgage in tow, and sometimes parents find it hard to work around nurseries due to the travel times.

Speak to a Mortgage Advisor in London

If you are thinking of moving home in London, you may be interested to know roughly how much moving home will cost. Get in touch with a mortgage advisor in London and they will help you calculate your maximum borrowing capacity, giving an estimated quote on what your monthly payments could be.

For those looking at remortgaging, potentially for home improvements, get in touch today and speak to a dedicated remortgage advisor in London.

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. 

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.

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.

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Authorised and Regulated by the Financial Conduct Authority.
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The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
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www.financial-ombudsman.org.uk

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