Nowadays there are well over a million people in the UK working in the ‘gig economy’ as contracted workers. Because this career is technically freelance and they’re working short term contracts, a lot of these people aren’t entitled to many benefits that permanent employees get e.g., sick pay or holiday pay.
We’re finding that most of these workers are either operating in some form of professional service, are both skilled and unskilled manual workers (e.g., carpenters, electricians etc.), and due to the increase of internet based shopping, many are now taking up careers as couriers and delivery drivers.
Unfortunately, gig economy workers will naturally find it a lot more difficult when trying to obtain a mortgage, because the mortgage lenders will be treating them as self-employed mortgage applicants.
For you to increase your chances of having a successful mortgage application, an applicant will need to demonstrate a strong history of employment. One year’s history is probably the minimum that will be required to qualify for a mortgage, unless you have an upcoming contract set to last for quite a long duration. If your contract is due to last a few years with the same company, you may not be seen as self-employed, depending on the lender.
If a lender opts instead to treat a mortgage applicant as a sole trader, then you will need to provide the lender with proof of your net profit. This is the amount that is earned in total, with expenses taken off. For this, you may find that you need the services of an accountant.
If the person applying for the mortgage has set up their own limited company, then the majority of lenders will be making their calculations based on the total of declared salary plus dividends.
The way that mortgage lenders are choosing to assess contract workers seems to be a lot more flexible now, likely due to the high number of them currently existing within the economy. If a person has been working this way for a while and currently holds a contract, then depending on the industry, some may have their incomes assessed through their ‘day rate’.
If day rate is assessed, they will take that amount and then times it by 5 and times that total by 46. The reason for this, is lenders know that a Contractor is unlikely to work 52 weeks a year, even if they are not paid for any holidays they take. As such, they work off a 46 week basis. This method of calculating works well for IT contractors especially, as they have the options to choose what contracts they take and when.
If an applicant is self-employed in London, it is advised to be organised as best as you can, collating what is needed in advance prior to applying for a mortgage in the same way that a contractor applicant would. It’s also important to remember that if you are wanting to apply for a mortgage, a potential lender will be wanting to see healthy levels of earnings that are sustainable. As such, you may end up paying a bit more tax.
Regarding the place of zero-hour contracts in all this, it is possible for someone with these who is applying for a mortgage to obtain one too. Once again, a mortgage lender will want to see 12 months’ earnings before it is possible to apply for a mortgage. They will consider taking an average of earnings, rather than a full year.
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.
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.
Each mortgage lender works differently, using their own different ways of deciding who gets accepted for a mortgage and who unfortunately doesn’t. Some lenders criteria are harder to match up against than others may be. The key to success all depends on how strict they are and how good your credit score is.
Through our many years of service, we’ve often found that mortgage applications are declined for no other reason because the customer does not meet the right criteria for that particular deal. It’s reasons like this why it’s always worth your time seeking the advice of a dedicated mortgage broker in London. Our team of experienced and loyal advisors will work hard to get you the most appropriate lender for you and your personal circumstances.
The first thing you should always do before you apply, is take a look at your credit file to see whether or not it is of a high standard. If it isn’t looking so good, then you will need to look at various ways to improve your credit score. Speaking with an open & honest mortgage broker in London, you’ll be able to learn what to prioritise when improving your credit score.
You must always remember that very few people indeed are realistically eligible for every deal that is available to them. This means that for the most part, homebuyers and home movers are just searching for the wrong mortgage deals. Just because you have seen a deal that is cheap and eye-catching, it doesn’t mean that you will pass the lenders criteria and qualify for that particular deal.
As an experienced and dedicated Mortgage Broker in London, we would always recommend that you properly research into the different types of mortgages available or Get in Touch to benefit from a free initial mortgage consultation.
A regular occurance over our years of mortgage advice is customers using price comparison websites to find a mortgage in London. Whilst there may be nothing wrong with this, you need to remember that the price comparison websites are only able to analyse the different costs of mortgage deals, as opposed to matching you to all the different nuances of a lenders criteria.
This process can end up wasting a lot of time, as the mortgage lender may finally declines your case weeks down the line. It’s because of this that you may end up losing the property you were hoping to buy or breaking down a property chain that you were a part of. You may also find yourself getting declined because you picked the wrong mortgage, an act which could actually damage your credit score due to a failed application.
Customers may find themselves being eligible for a wide variety of mortgage deals, but in order to match the criteria for those deals, the lenders may end up only offering you a reduced deal. This seems to happen on a regular basis, with lenders first having a tendency to say that you can borrow a set amount, only to later change their mind and find a way to reduce the previously available mortgage.
As we’ve touched upon, all lenders have their own unique way of handling the mortgage process. You will often find that there is a big difference between mortgage lenders and it’s very unlikely that you are going to match up against all of their individual criteria. You need to narrow down your options and work out what the most appropriate option will be.
It doesn’t matter if you’re a First-Time Buyer in London or looking at Moving Home in London, we always believe that getting in touch for some expert mortgage advice will help you out during your mortgage process. Our dedicated team will support you throughout your journey, and try to find you the most appropriate mortgage deal for your personal circumstances.
Over the years we have worked alongside thousands of customers, assisting with specialist mortgage cases to help them find a level of success with mortgages that they otherwise thought they’d never achieve.
By approaching a trusted and dedicated Mortgage Broker in London, you’ll also be able to learn how best to improve your personal credit score, in the event of any unfortunate financial circumstances.
If you need help with a Specialist Mortgage situation, Get in Touch today with a Mortgage Broker in London for your free initial mortgage consultation.
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.
Every now and again, we come across various mortgage hurdles. They’re not completely impossible to work around, but can often prolong the process. Below we have compiled a list of the top 5 hurdles we’ve come across in our time as a mortgage broker in London.
Through our experience of providing first time buyer mortgage advice in London, we’ve found that families are not normally turned down for a mortgage because of childcare fees. That being said, it is extremely common for a lower mortgage amount to be offered.
This becomes more apparent when parents have gone back to work and are paying out for childcare costs, as sometimes these can cost hundreds of pounds per month. These costs are considered by lenders as regular outgoings, the same as they would treat something like car repayments.
Even if there are no nursery fees to pay, parents on lower-income still generally get offered less than those who do not have children. The good news though is that the amount that families using this service can often be in receipt of tax credits and some lenders will also take these into account as well as child benefit.
There are lenders out there that have their own unique approach and don’t treat the nursery costs as a specific outgoing, opting to rely more upon Office of National statistics data for typical outgoings. This as you may expect, can often lead to a higher maximum mortgage amount.
It’s always a shame when a partnership ends, but often it’s for the better. Where it can cause problems, however, is when you have made joint financial commitments. Trying to fix that side of things does not always run as smoothly as you maybe would like.
Here are the three main questions we get asked regularly;
More often than not, there are ways around these and is somewhere we may be able to help, providing that you have enough income available and also are young enough for the mortgage payments to be affordable.
All lenders have their own views on benefit income and how much of it can be assessed. You may be pleased to find that all benefit income such as child tax credit, working tax credits, disability benefits, pension income can be taken into account in some form, when it comes to a mortgage. This is where the help of an experienced mortgage advisor in London can prove invaluable, helping you throughout the process.
Usually with a new job comes a bigger salary and the extra income to put towards a mortgage. Any gaps in employment and a new job can cause some problems for various mortgage lenders.
There are lenders who will work from a newly signed employment contract though, even if you’ve only just started or are soon to start a new job. They’re also usually okay with probationary periods.
For any purchase, all mortgage lenders require you to prove your deposit, as a means of showing you can in fact proceed. This is to satisfy UK Anti-Money Laundering Legislation. Your solicitor and estate agent may ask you to provide evidence of your deposit also.
We believe, that evidencing your deposit can often be the most complicated part of applying for a mortgage. Whether your deposit is from savings, premium bonds, the sale of another property, gifted from a family member or friend, from overseas family, or is from a personal loan, you are required to show exactly where your funds came from before you can go forward with a mortgage.
Please remember that the above information is for reference purposes only and is not to be viewed as personal financial or mortgage advice.
Removing a name from a mortgage can be a difficult process, no matter if it is divorce, splitting up with your partner, or in a rare case just want to have a mortgage in one person’s name, as opposed to two.
There are advantages to having a joint mortgage, however, it may sometimes become a more appropriate option to remove a name from your mortgage. Our Mortgage Advisors in London are here to help, using their experience in dealing with this subject, to help many customers during a financial separation.
Look at the current situation from the lenders perspective. They may be able to see from your finances that you pay everything on time and have the funds to proceed, but it is still a big ask in hoping they will entrust the payment of your mortgage to one person instead of the two they originally signed a contract with.
For the sake of financial security, they would prefer to keep both names on the mortgage. This is so that if a situation like mortgage arrears or more seriously repossession occurred, they would have the options of chasing two parties to cover the repayments. If they were to allow one person off the mortgage, this would mean that they have half the chance to receive a payment.
This will all usually be worked out based on affordability. If the person wants to have the property in their own name, without their now ex-partner or housemate, they will need to go through all the original lender criteria checks to prove they can in-fact afford to keep up mortgage repayments alone and avoid potential arrears.
Where this may be possible can differ between mortgage lenders. With this in mind, you may benefit from the assistance of a trusted mortgage broker in London. During this time, you may find yourself being advised to switch mortgage lenders and get a better mortgage deal in a sole name, in a bid to erase any ongoing problems. Our Specialist Advice in London may be able to relieve some of your stress, please Get in Touch to reap the benefits of a free mortgage consultation.
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.