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:
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.
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.
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.
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.
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.
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.
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.
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.
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.
A 95% mortgage is as simple as the name would suggest; you are borrowing against 95% of the price of a property, and then you are covering the remaining 5% with your deposit. An example of this is if you looked at buying a property that was worth £150,000 with a 95% mortgage, you would be putting down £7,500 as your deposit and borrow the remaining £142,500 from the lender.
Off the back of the March 2021 Budget, Boris Johnson announced a Mortgage Guarantee Scheme for mortgage lenders, making 95% mortgages more readily available from the bigger high street banks.
This is fantastic news for First-Time Buyers and Home Movers alike, as this scheme will continue running until December 2022. Certain terms and conditions will apply though, which is something your Mortgage Advisor in 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.
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.
A good credit score is essential in the process of obtaining any mortgage, especially a 95% mortgage. Things like paying any current credit commitments on time, ensuring your addresses are updated and checking that you’re on the voters roll, can all help with your credit score.
Affordability is another one that is important to take note of. By giving the lender details of your income and monthly outgoings (things like your bank statements will be necessary for this) and any pre-existing credit commitments, your lender will be able to get a general overview of whether or not you are able to afford this type of mortgage.
Nowadays we see lots of family members helping each other get onto the property ladder, especially parents looking to further their children’s lives. The way this usually happens is by gifting the person looking to find their home, the deposit required. Known through the industry as the “Bank of Mum & Dad, Gifted Deposits are only intended to be a gift, and not as a loan. The lender will need proof that this has been agreed, before it can be used towards your mortgage.
When looking for a 95% mortgage, you want to make sure you have the right type of mortgage. Each mortgage type works differently, with that choice allowing you to find one that is most appropriate for your personal and financial situation.
Some homeowners and 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.
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.
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.
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.
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.
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 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.
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.
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.
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.
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+.
???? 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
When you get to the point where you are ready to move home in London and want to take another step up the property ladder, you need to think about putting your existing home onto the market and selling it.
Once the house has been sold, the equity in it (the difference between the amount at which you sell and your remaining mortgage balance) will be used as a deposit for your next home purchase. You are able to further top up this total as much as you want, be it from savings or a Gifted Deposit from a family member or a friend.
On the whole, a seller will always have a minimum asking price, though sometimes they are still open to other offers. The way that a home is marketed and presented will have a big part in terms of how quickly you are able to sell it. So, from the perspective of both the buyer and seller, you’re going to need to do some research about moving home. A good place to start off is with a look at how to sell your home quickly:
When it comes to choosing your asking price, you need to make sure that it is not way over the odds for the area of which the property is in. Just because the estate agent has told you the maximum price your property could sell for, it doesn’t mean that it will actually get sold at that price. Try not to be too unreasonable with it.
Within the first couple of weeks of your listing, you want to make sure it is attracting lots of attention. If the interest in your property seems flat for a while, it is probably down to your asking price so try lowering it.
If you have already found a home that you want to buy and you are still living within your current house, you need to try and sell it as soon as possible. That’s exactly why a fair asking price is a great way to kickstart the home moving process.
We have a lot of experience in the mortgage industry across our team of dedicated mortgage advisors. When looking at properties, one of the first things that we always notice is how the exterior of the property looks.
Making your home look aesthetically pleasing from the outside is the best way to engage buyers. This is the first impression you will make on a buyer, so you need to be aware of how your home looks to an outside eye, on the outside of the property.
Sometimes all it could take is something so simple and easy, like having a freshly jet-washed drive and a neatly cut front lawn. This shows that you care about the little things and truly look after your home. This may also get people to think that the interior of your home will also provide the same good feeling that the outside has done already.
Remember, you never get a second chance to make a first impression, so, to improve your chances of selling your home quickly, you should try to make it as appealing as possible.
Before you open up your property for public viewings, you need to make sure your interior is clean and tidy. This will help to make the home viewer feel warm and welcomed into your property.
Remove any clutter that is surrounding the entry to the property, both just outside on your doorstep/porch and in the hallway coming in. When your viewer walks in, you want them to feel like you have indeed look after your home. Buying a new door mat and checking that a doorbell works are all things that will be remembered by viewers.
Once you have tidied up your hallway, you should then tidy each room, one at a time. You should always spend extra time in your kitchen and bathroom as these are some of the most important parts of any house. Clear out anything unnecessary from cupboards and wardrobes, neatly stacking the things you have in there.
Being a smoker can be a hindrance, as sometimes the smell of smoke can linger. As such, if you are a smoker, it may be an idea to give the house a good airing before your potential buyer turns up to have a look around. If anything remotely smells smokey, get rid of it. Sometimes we become blind to smell we’re used to, so maybe get a friend to come and help you out with this.
Give all indoor doors a new lick of paint and polish their brass fixtures. Make sure everything can open and close correctly with no errors.
Allow sufficient daylight into each room as well, opening all curtains and blinds. Your home should feel nice and warm but not too hot that it’s unbearable. Test all lightbulbs to ensure they work correctly. An old-fashioned way of looking at things is to add the smell of “baking bread”. We believe all cooking smells should not be present and instead leave it smelling fresh and clean.
Although it may seem a challenging task, you should try and avoid having your children or pets getting in the way whilst your viewers are taking a look around your house. You want to ensure they feel completely relaxed and comfortable.
Another good way to help them feel at home is to decorate your home with some family pictures or paintings brighten the place up and remind them that this is a family home.
You should also let them explore on their own, without crowding them too much. Usually if there’s a couple, they will want to discuss between themselves too.
As mentioned before, your kitchen and bathroom should be completely clean and tidy. Anything that isn’t used regularly should be put away in storage. Your towels should be neatly stacked away and not left on hooks behind the door or thrown across the floor.
Make sure that you double-check everything you’re cleaning as well, as the whole house needs to be spotless from top to bottom. Make sure clothes are not lying around and the bedrooms have sufficiently dusted.
Wash all of your curtains, blinds, wipe down your walls and clean your floors and windows. All repairs should be up to date too and clean bedding put out onto the beds. Windows should be sparkling clean inside and out, allowing light in and showing off any nice views.
Investing in carpets for smaller rooms can be an inexpensive way of impressing the home viewer. Carpets make rooms welcoming and can show your viewer that the house is properly looked after.
People who are selling their home, often might not be aware that having empty space is sometimes good. This is because it allows the viewer to see the properties potential. For example, an empty wall in a bedroom could help the viewer visualise what they would like to do to that wall with things like paint, wallpaper, pictures, shelves and so on.
Anything that you are storing outside of cupboards should be put back into cupboards or just thrown away if you don’t need it. This can also help you prepare for your eventual move, as you’ll have less to pack because of it. Make lots of room on your kitchen worktops too and tidy up any pots laying about.
The way a garden looks can often be the deciding factor for many property viewers, as it’s normally the last thing that the viewer sees on their journey around your property. You need to make sure that have no rubbish piled up outside or random items cluttering what would otherwise be a nice sight. It’s important not to pile everything into your shed too, as generally the viewer will want to inspect this and see it’s potential.
It’s also important to make sure that your fences have all of their slats properly in place and are freshly painted or creosoted. People love seeing colourful gardens, so even flowers could really make the difference in whether or not the viewer truly sees it as a home. Anything to liven up your garden could really help you out with this. Removing weeds and dead flowers, cutting the grass, removing grass clippings are all essential tasks to complete.
People like people, so remember to be a welcoming and honest host, acting from the heart as yourself. They are just one set of potential buyers at the end of the day, so if one doesn’t like it, there will be plenty more who might.
Create a balanced view on all current problems that you have encountered with the house. As an example of this, if you had a problem with a leak, say how it was easy to fix and that it’s very unlikely to happen again down the line.
Estate agents will want to earn their commission by talking to the property viewers as much as possible, however, you need to remember that you know your property better than anyone, so try leading that charge yourself when you can.
Finally, remember the emotions attached to a home when someone buys it. If you have a family it helps to showcase that it has been a happy home for you, which in turn is sure to rub off on the viewers if they are thinking of raising a family there also.
When you start your mortgage process, if you choose to use a large estate agent, they will want you to use their in-branch Mortgage Advisor and their recommended conveyancers. You don’t have to use their in-house advisor however, in fact you can still get the same or better deals from somewhere else! Unfortunately, First Time Buyers are often the ones that get caught out and end up coaxed into using their internal services.
Searching for an external Mortgage Advisor in London could be the best path for you to take. An estate agent’s advisor will be biased, only encouraging you to see their side as they just want you to stay on with them. A dedicated mortgage broker in London will be able to give you more perspective and see different sides. If you do your research and still end up back with your in-house advisor, that’s fair enough, though you should always remember that you have other options out there.
Our view consists of both transparency and efficiency, as we want to provide the best possible experience and the best advice for your personal and financial situation, whilst still delivering a fast yet friendly service.
If you end up choosing to use your estate agent’s in-house mortgage advisor and conveyancer, you need to think about where the cost of their service is coming from. Maybe they are charging you for their services without asking you and adding it to other fees, so that you don’t notice. Taking the route of a trusted mortgage broker in London will eliminate these concerns, as you know exactly what you are paying for. Your dedicated advisor will break each cost down for you and answer any questions of uncertainty you have with what’s going on.
Even though it is an illegal tactic, if you have opted not to take the estate agents in-house mortgage advice, they may refuse to put your offer forward on a property. For example, you could be using a broker and they may push another offer to completion over yours, purely on the basis that you aren’t using their services. Once again, these situations are illegal.
Estate agents may get even craftier and try to charge you with extortionate in-house conveyancing fees. Even with a straightforward purchase, they could try and charge you with fees upwards of £1,500. If you encounter anything like this during a purchase, you have all rights to ask them where they have got these prices from and for them to provide a full breakdown of everything.
An experienced mortgage broker in London only has your best interests at heart, and all of this can be avoided by going to one over an estate agent for mortgage advice.
Choosing the right Mortgage Advisor can be hard; but is there a way to make it easier?
Sometimes your case will be specific and might require specialist care and attention. An estate agents in-house advisors don’t care about this and just want to make money off you. When you Get in Touch with a mortgage broker in London, you can be matched up with a specific advisor who has experience in that field.
For example, we have specialist buy-to-let mortgage experts who can be called upon if a buy-to-let enquiry is presented to them. Once you’ve had a free mortgage consultation and an agreement in principle (usually turned around in 24 hours or less), you could be linked with your perfect advisor and get a head start on your mortgage process..
We have years of experience providing mortgage advice in London and have been helping struggling customer take that leap into the mortgage market for over 15 years now as a company. You can find out more about our excellent mortgage advice service by looking at our fantastic customer reviews.
If you would rather “go it alone”, you should know that it’s perfectly okay to do so. The majority of things you need can now be done online! Along with the use of price comparison websites, you may be able to find yourself the most appropriate deal.
The benefit of doing things online is that you have the chance to save money on additional fees. As long as you are confident in what you are doing and know what you are looking for, you could complete the process very quickly.
One thing to note though is shopping around and comparing online may be a little harder than you think. You will need to make sure that you’ve found the most appropriate fit before agreeing to anything. Here are some things you should be wary of when choosing to find a deal by yourself:
It isn’t difficult to make an appointment with your bank’s Mortgage Advisor, however, it may not be the right choice for you to make. If you do choose this route, here are a few things you should keep an eye out for:
Working alongside a mortgage broker that is not associated with the estate agent ensures you have someone working purely on your behalf as an inexperienced First Time Buyer in London. This also ensures there’s no conflict of interest risks.
Everything will be kept between you and your designated Mortgage Advisor in London. We have no external ties to any building societies, banks or estate agents. When we work, it’s solely for you and only you. Whilst we have lenders on panel, they’re purely there for the deals they offer, allowing us to find the most appropriate case for your case.
Our team have your best interests at heart. Managing Director Malcolm Davidson is here to explain the pros & cons of using a dedicated mortgage broker:
An Agreement in Principle (also known as an AIP or Decision in Principle) is where you pass a Lender credit score to qualify for a mortgage.
By obtaining an Agreement in Principle, you prove that you are ready to support any offers you make as a First-Time Buyer in London. It may also aid in negotiating a lower price if you have one of these as it shows the seller you are serious and have the means to continue with the process.
The more frequently seen methods of credit scoring are via soft searches, rather than a hard search. These may still affect your credit score, though usually a hard search will be more likely to do this than a soft search.
The reason for this, is that a hard credit search leaves a credit footprint, whereas a soft search does not. Regardless, you can rest assured that whichever is used by the lender, is done with the best intentions.
Having your credit checked via a hard search every so often should not make too much difference. It becomes an issue if you take too many of these within a small amount of time.
On the flip side, if you know you have a good credit score and it’s the best path to take with a lender, this should not be a problem.
Whilst the prospect of this would be nice, there are no guarantees that having an Agreement in Principle will allow you to get a mortgage. The Lender will still require seeing all your documents and only then will an Underwriter make very final decision.
Often we find that customers contact us after they have been declined at application stage, due to missing some small print in their Agreement in Principle. You will need to provide ID to prove that your identity, payslips to prove your income and bank statements to prove you are smart with money, before a lender will offer your case.
Though you are able to make an offer without an Agreement in Principle, we would not suggest doing so. Any credible Estate Agent will want you to prove you can definitely go forward.
It is possible to obtain an Agreement in Principle within 24 hours of getting in touch with an experienced mortgage advisor in London.
Typically,an Agreement in Principle will expire after 30-90 days. The good news is that this doesn’t mean you should just apply for the first house you find. If your Agreement in Principle expires, it’s not a difficult task obtaining another ahead of making an offer.
Finding a mortgage only to be declined a mortgage can cause understandable disappointment. With this in mind, we recommend getting an Agreement in Principle as early as possible.
It’s never planned and it’s always devastating when it happens, however, when it comes to divorce or separation, there are a lot of legal and financial matters that will you’ll need to resolve before you go your separate ways. Unfortunately, things don’t always go as smoothly as anticipated and that’s why it’s better to know what’s to come rather than be unprepared.
Your Specialist Mortgage Broker in London has put together a list of the three most common questions that we get from customers going through a divorce or separation and need our help. We hope that this puts you at ease knowing that you aren’t the only one who has searched for advice in these hard times.
Buying a home together is a huge financial commitment, so as you can imagine, getting a name removed from a mortgage is not always easy. In fact, making any sort of changes to your mortgage can be hard unless you’re coming to the end of your mortgage term.
If there are children involved, things can get a little more complicated. In most cases, we see that the mum stays in the property, but either way, it may come down to whoever is “in situ” takes on the responsibility of the mortgage.
When you are trying to remove an ex-partner’s name from a mortgage, you’ll need to supply evidence that you’re going to be able to meet your mortgage payments on your own. Lenders will study your salary and your disposable income and then work out whether or not it’s realistic that you’ll be able to hold your own weight.
Your lender will also measure your ex-partner’s affordability and check whether they will be able to afford a mortgage on their own going forward. They will perform a full affordability assignment on both you regardless of whether you have kept up-to-date with your mortgage payments in the past or not.
You must know that since you joint bought the property with your ex-partner, your lender can pursue either of you in the event of mortgage arrears.
If you want to remove your name from a mortgage it’s a similar process to how you remove your ex-partner’s name. Although, in this situation, you are the one that is trying to vacate the property and move on which can sometimes cause some difficulties.
This may cause difficulties as you will need consent off your partner that you can take your name off the mortgage. Your lender will also perform a full affordability check on your ex-partner to check whether they’ll be able to afford their mortgage payments or not.
If you are given consent to remove your name off the mortgage and your partner is able to afford the mortgage payments on their own, it’s in no doubt that you’ll eventually start looking for your own place. If or when you do, you should know that your lender will take the mortgage payments from your old property into consideration. Some lenders will be generous, some will be strict. Finding the most suitable lender for you can be hard and that’s why we recommend in getting Specialist Mortgage Advice in London, especially when going through a divorce or separation.
In some scenarios, there may be someone there to offer a helping hand with the mortgage payments. More often than not, family members may help out or in other cases, there may be a new partner that is willing to step in.
If this is not your situation and you are planning to pay for your mortgage payments by yourself, don’t be ashamed of getting advice from an expert! Our Mortgage Advisors in London are experienced in this specialist field and know exactly how to help. Getting help with your finances or with removing your/ex-partner’s name off a mortgage could take a heap of the stress of your back. We want the best for you at the end of the day.
Yes, in fact, you can own multiple mortgages, however, before getting accepted for another mortgage, your lender will take a look at many different factors. When they are checking your file, they will be able to see that you are still linked to another mortgage.
They will check how much you are contributing to these mortgage payments and check whether or not you’ll be able to manage additional mortgage payments on top of them. Lenders will also factor in any other credit commitments that you have.
Lenders will also account the risk factor, for example, how likely is it that your home is repossessed because you couldn’t afford your mortgage payments. They won’t take any risks either.
If you’d rather get an affordability check before you directly approach a mortgage lender, you can approach a Mortgage Broker in London like us. We will perform our own credit check and affordability measures to find out whether it’s realistic that you’ll be able to afford another mortgage.
We have Mortgage Advisors in London that specialise in this field, so don’t hesitate to get in touch with us. We are more than happy to help.
Following on from the recent announcement made by British Prime Minister Boris Johnson, we felt it appropriate to share some positive news that came with the new lockdown rules.
Much like during the November 2020 lockdown, the property market is still open for business as usual. You are still able to take up house viewings, continue your purchase and put your home up for sale.
Below, we have a mortgage market update from the ‘moneyman’ himself, Malcolm Davidson:
Throughout the last lockdown, back during November 2020, there was a significant increase in the amount of mortgage enquiries banks and brokers were receiving. The boom in purchase approvals for homes reached an outstanding 105,000 in November, which was the highest recorded figure since August 2007.
In October 2020, purchase approvals were at 98,300. This increase of 6,700 is impressive when you think about where we were, working through the middle of a nationwide lockdown.
In terms of the property market, the January 2021 lockdown is currently working on a similar level to the previous one we experienced back in November 2020. You are still very much able to start your mortgage journey in 2021. How you start this is completely your call.
Whilst some take the route to do this themselves, accepting the help of a dedicated and experienced mortgage broker in London can reduce stress, time and the possible cost of the matter, depending on what you’re looking to do.
January is always a popular time of year for First Time Buyers, Home Movers, landlords and so on, with more mortgage products becoming available again as time progresses. This is allowing for more mortgage options to those looking to invest in the property market.
Yes, thankfully 90% mortgages are still available and lenders are getting more and more confident in the UK property market over time. They know that the demand for properties and mortgages is still alive and well, and that people will only start coming back when they are confident that they can get a deal with a 5-10% deposit.
There are also other ways to access a 90% mortgage, through something like the Help to Buy Equity Loan scheme or the Help to Buy Shared Ownership scheme. If you want a Help to Buy Specialist to walk you through the process, explaining how these methods could help you obtain a mortgage with only a 5-10% deposit, make sure to get in touch and a mortgage advisor in London will assist you how in any way they can.
The property market is still open, which means Londonmoneyman is ready for business as usual! We have a team of dedicated Mortgage Advisors in London available from 8am – 10pm, 7 days a week, all throughout the year to help you along your property owning path to a mortgage.
Don’t worry, we still offer a free initial mortgage consultation to all customers who get in touch, no matter the situation.