A mortgage in principle, known more commonly as an agreement in principle (AIP), is a helpful tool to estimate how much you could borrow before formally applying for a mortgage.
It usually involves a soft credit check, so your credit score is unlikely to be affected, and you are under no obligation to proceed.
At Londonmoneyman, we can usually obtain an AIP for our customers within 24 hours of their initial mortgage appointment. The AIP typically lasts for 30-90 days, but if it expires, we can help you renew it.
To obtain a mortgage agreement in principle, you can either contact a mortgage lender directly or seek the help of a trusted mortgage broker in London, like us. You can book a free mortgage appointment with our expert mortgage advisors in London by getting in touch today.
During the appointment, you will need to provide details about your income, employment, credit history, and other personal information to assess your eligibility for a mortgage and get an estimate of your borrowing capacity.
Our team can usually obtain your AIP within 24 hours of the initial appointment.
Prior to beginning your property search, it is recommended to obtain a mortgage agreement in principle to estimate how much you can borrow, which will prevent you from looking at properties that are out of your budget range.
Furthermore, having an agreement in principle can give you a competitive edge when making an offer on a property, as sellers and estate agents may consider you as a serious buyer.
An agreement in principle is not a guarantee of obtaining a mortgage, but it is a useful aid during the home buying process.
To obtain an agreement in principle, a mortgage advisor in London will require personal information from you to forward to the mortgage lender.
This includes your personal details such as your name, date of birth, and current address, as well as your employment status and income details.
Mortgage lenders will also need to know about your regular outgoings, credit history, and affordability, to determine your eligibility for a mortgage. It is important to note that further documentation, such as bank statements or proof of income, may be required before a final decision is made.
An agreement in principle (AIP) is a document that shows how much a mortgage lender may lend you, based on the information you’ve provided. Do remember though, it does not guarantee that you’ll receive a mortgage offer, nor does it mean there is any legal obligation for you to proceed.
On the other hand, a mortgage offer is a formal offer from a mortgage lender that confirms their willingness to lend to you after conducting credit and affordability checks. This is one of the final stages in the mortgage process.
If you accept the mortgage offer, it becomes a legally binding document that sets out the terms and conditions of your mortgage, including the interest rate, the term of the mortgage, and any associated fees and charges.
To get to this stage, you will need to provide the mortgage lender (through your mortgage broker in London, if you choose to use one) with more detailed information and undergo a full credit check. Additionally, the mortgage lender will require a valuation of the property you intend to purchase.
Once you receive your mortgage offer, you can proceed with the property purchase, subject to meeting any conditions specified in the offer.
In summary, an agreement in principle provides an estimate of how much you can borrow, while a mortgage offer is a legally binding agreement between you and the mortgage lender that sets out the specific terms and conditions of your mortgage.
Typically, obtaining an agreement in principle for a mortgage will not have a significant impact on your credit score. This is because most mortgage lenders only conduct a soft credit check during the AIP process, which does not leave a visible mark on your credit report.
It’s important to be aware that some mortgage lenders may perform a hard credit check as part of the AIP process, which can leave a visible record on your credit report. If you apply for multiple AIPs with different mortgage lenders in a short period of time, this could potentially impact your credit score.
It’s important to keep in mind that a mortgage application itself will usually involve a hard credit check, which can also affect your credit score.
Therefore, it’s generally advised that you limit the number of mortgage applications you make and only apply for an agreement in principle when you are serious about purchasing a property.
Obtaining an agreement in principle for a mortgage can provide several benefits for you when it comes to the home buying process.
Firstly, it allows you to determine the amount you can realistically borrow, helping you focus your property search within your price range. This can save you time and prevent the disappointment of finding a property that you cannot afford.
Secondly, having an AIP can give you an advantage over other buyers. Sellers may be more inclined to accept an offer from someone who already has an agreement in principle, as it demonstrates that they are a serious buyer actively seeking a mortgage.
Finally, an AIP can help expedite the mortgage application process once you have found a property you wish to purchase. Since the mortgage lender has already assessed your financial situation and eligibility, they may be able to process your application more quickly and efficiently.
Overall, obtaining an agreement in principle can be a valuable tool for anyone looking to buy a property, as it provides clarity on how much you can borrow, increases your chances of being accepted as a buyer, and can streamline the mortgage application process.
Getting an agreement in principle for a mortgage is usually free. It’s just a document that specifies the amount a mortgage lender is willing to lend you based on the information you’ve given them. You are not obliged to make any financial commitment with an agreement in principle.
If you are declined for a mortgage agreement in principle, it indicates that the mortgage lender has determined that you do not qualify for the amount of mortgage you have requested. There may be various reasons why this has occurred.
It is crucial to identify the cause of the rejection. You may need to reassess your financial situation or credit history, or you may need to provide additional information to the mortgage lender.
In some cases, it may be necessary to look for a different mortgage lender who is willing to lend close to, if not the full amount that you are seeking. Keep in mind that being refused an AIP does not automatically imply that you will be denied a full mortgage application.
When you submit a complete application, the mortgage lender will examine your financial situation and credit history more closely, and they may offer you a different amount or a different type of mortgage.
Moreover, applying for multiple agreement in principle with different lenders can have a negative impact on your credit score. As a result, it is important to conduct research ahead of time.
Having a mortgage broker in London can help you in locating the right mortgage lender, hopefully on your first attempt.
If you are considering first time buyer mortgages in London or home mover mortgages in London, it is advisable to speak with a mortgage broker in London to obtain your agreement in principle, before making any offers on a property.
Our team can typically secure an AIP for you within 24 hours of your initial mortgage appointment, providing you with valuable information as you progress through the mortgage process.
Book in for a free mortgage appointment today and we’ll work to obtain your agreement in principle as soon as possible, as you embark on your mortgage journey with the support of a trusted mortgage broker in London.
A CCJ is a County Court Judgement, which is a court order that you will be issued if you fail to back money that you owe. A CCJ can look very back on your credit file and can often impact your ability to get a mortgage.
If you have a CCJ attached to your name and were hoping to take out a mortgage, you should seek specialist mortgage advice in London. We recommend this so that you get the chance to speak with a professional who will be able to find out whether it is still possible for you to get a mortgage or not.
As a mortgage broker in London, we can take a look at your situation and work out what is the best option for you. Our mortgage advisors in London are specialised in complex situations like this, we can take a look at a variety of factors before looking at whether you can get a mortgage or not. These factors may impact your ability to get a mortgage:
You will receive a CCJ if you fail to pay back money that you owe. It doesn’t matter how much you owe or have already paid off, if there was a deadline that you missed, it’s likely that you will be faced with a CCJ. Unfortunately, even if it is only a small amount you have not paid off, you can still receive a CCJ.
If you receive a CCJ, you will get a 30-day period to pay it off (satisfied CCJ). See this as a final warning; if you manage to get it paid off within this timeframe the CCJ may be removed from your credit file, however, if you fail to meet this deadline, the CCJ will remain on your file for a total of 6 years (unsatisfied CCJ).
A CCJ can leave a very bad mark on your credit score, so we would advise that you try and pay it off within this period.
In some cases, yes it is still possible to get a mortgage with a CCJ in your name. With the help of an expert mortgage broker in London, you might just be able to get over that completion line.
If you managed to get the CCJ stripped from your records by paying off the money that you owe within the 30-day window, your chances of getting a mortgage will have increased. If you failed to meet the payment deadline, your chances may have been lowered.
Generally, often depending on the size of the CCJ and how much is left to pay off, the longer that you have the CCJ, the less of an effect it will have on your ability to get a mortgage. For example, if you have just been issued a CCJ, it will be very hard to get accepted for a mortgage, whereas, if you were issued with a CCJ 4 years ago, you’ve managed to pay off what you owe and you have been keeping on top of your finances, it’s more likely that you’ll be able to get a mortgage in London.
If you consider the lender’s point of view, they would be lending to someone who could not meet a previous credit commitment. A mortgage is one of the biggest financial commitments that you will ever make, so they are just being wary and making sure that you can actually afford to take a mortgage in London out.
As a mortgage broker in London, we are able to access specialist mortgage lenders that hold deals available to applicants with CCJs. To speak with a specialist mortgage advisor in London and find out whether or not you are able to access these types of mortgage products, get in touch with our team at Londonmoneyman today.
If you receive a CCJ that was wrongly issued, with sufficient evidence, you may be able to remove your CCJ from your records.
Reopening the case can cost you however, so you need to make sure that you have enough evidence to prove that it was wrongfully issued. If you manage to get it removed, then it will massively benefit your credit file and your chances of being able to get a mortgage. The CCJ will be completely removed from your credit history and your name.
To appeal your CCJ, you’ll need to complete an N244 form and send it to the court.
Your unsatisfied CCJ will eventually be removed from your file after 6 years have passed since the date that it was issued. As mentioned before, the longer that a CCJ has been in your name, the more likely it may be for you to be able to get a mortgage in London. You must know that this also means paying back what you owe, preferably as soon as possible.
The quicker that you pay off the CCJ, the better. If you have a CCJ in your name, but you paid it off years ago, your chances of getting a mortgage may increase. Not all mortgage lenders will think like this however, some mortgage lenders will not even work with you if you have a CCJ.
Rebuilding your credit score is the first step to getting a mortgage with a CCJ in your name. Keep making your payments and try to pay your CCJ off as early as you can.
There are many different ways to improve your credit score and you may need a few years to rebuild it, however, it will pay off. If you need to point in the right direction of where to start with rebuilding your credit score, our specialist mortgage advisors in London would be happy to help. Simply give us a call or ask us a question online.
If you are a homeowner with a mortgage, you may have noticed that most of the mortgages available in the market are portable. A portable mortgage offers you the flexibility to transfer your current mortgage to a new property, without incurring a penalty charge for doing so.
This feature can come in handy if you are currently on a fixed-rate mortgage deal with low-interest rates and you are looking to move to a new property. By transferring your mortgage to the new property, you can avoid paying an Early Repayment Charge (ERC) that you would have otherwise incurred if you had paid off the existing mortgage before its maturity.
In addition to avoiding ERC, portable mortgages also allow you to keep the same mortgage terms and conditions that you had on your previous property. This can be particularly useful if you have favourable interest rates, repayment terms, or other features in your existing mortgage that you would like to retain.
However, it’s important to note that not all mortgages are portable, and some may have restrictions or conditions that apply when you transfer them to a new property. It’s important to read the fine print and understand the terms and conditions of your mortgage before making any decisions about moving to a new property.
It’s worth noting that not all mortgage deals available in the market are portable. In particular, mortgage products that are offered by specialist mortgage lenders, as their mortgage products may have complex qualification criteria. These lenders may not allow you to port your mortgage to a new property.
If you are considering moving to a new property and want to know if you can transfer your mortgage to the new property, it’s best to speak directly with your mortgage lender. They will be able to advise you on whether porting your mortgage is an option and any restrictions or conditions that may apply.
If you are not able to port your mortgage, you may need to consider other options such as remortgaging or paying off the existing mortgage before purchasing a new property. In these cases, it’s essential to do your research and seek specialist mortgage advice in London from a qualified advisor to ensure you make an informed decision that suits your personal and financial circumstances.
While portable mortgages offer flexibility to homeowners, not all may choose to exercise this option. There could be various reasons why porting a mortgage may not be suitable for some homeowners.
One common reason why homeowners may choose not to port their mortgage in London is if their current mortgage lender is unwilling to lend additional funds needed to purchase the new property. This could be due to the homeowner’s financial circumstances, creditworthiness, or the lender’s criteria.
Another reason could be that the interest rate on the additional funds required to purchase the new property may be higher than the rate on the existing mortgage. In such cases, the homeowner may opt for a separate mortgage for the additional funds, which may have more favourable interest rates.
In situations where the homeowner has the option to port their mortgage, but it doesn’t suit their requirements or is not financially viable, it may be worth considering other options. For instance, homeowners could opt to pay the Early Repayment Charge (ERC) and switch to a new mortgage lender, which offers more favourable terms and conditions.
Before making any decisions, we would recommend speaking with a mortgage advisor in London and getting a second opinion from an expert. If you are moving home in London, getting help with the mortgage side of things can relieve a lot of stress.
A sub-account is a type of account that is created when homeowners choose to port their mortgage and take out additional funds on a different deal than their original mortgage. This allows homeowners to retain their existing mortgage product while accessing additional funds at a different rate.
The sub-account will typically have a separate interest rate that is different from the interest rate on the original mortgage. As a result, homeowners may have to make separate direct debit payments for each account. This means that the sub-account and the original mortgage will be subject to different interest rates, payment schedules, and terms and conditions.
In some cases, the products may overlap, which could cause problems down the line. This means that homeowners may need to consider realigning the sub-account with the original mortgage to avoid any potential issues. For instance, one of the sub-accounts may fall onto a lender’s variable rate, which could lead to an increase in interest payments.
To avoid any potential issues with sub-accounts, it’s important to seek advice from a qualified mortgage advisor in London. They can help homeowners understand the terms and conditions of their sub-account and the potential risks involved. Additionally, homeowners should regularly review their mortgage product and consider whether it still meets their financial needs and goals.
If you’re planning to move home and need mortgage advice in London, it’s essential to seek the guidance of a qualified mortgage advisor in London. Whether you’re a first time buyer in London or an experienced homeowner, getting the right advice can make a significant difference in the outcome of your mortgage application.
At our Londonmoneyman, we have a team of experienced mortgage advisors in London who specialise in helping clients with their moving home mortgage needs. We understand that every situation is unique, and our advisors take a personalised approach to each client, ensuring that their mortgage needs are met.
We can assist you in navigating the mortgage market, helping you find the most suitable mortgage product for your personal and financial situation. We can help you understand the different types of mortgages available, including fixed-rate, variable-rate, and tracker mortgages, and help you choose the right product for your needs.
Whether you’re looking to port your existing mortgage or take out a new one, our advisors can help you find the best deal available. We have access to a wide range of lenders, including high street banks, specialist lenders, and private banks, enabling us to offer our clients a comprehensive range of mortgage products.
When a mortgage lender asks to look at your bank statement, they will be looking for a variety of things. One of the main reasons for this is to confirm whether you are a responsible borrower who can manage your finances and maintain monthly mortgage repayments.
We regularly find ourselves being asked by mortgage applicants if gambling transactions look bad on their bank statements?
From splashing your cash on the Grand National once a year, to being a regular customer on internet betting websites, properly licensed gambling is not illegal. After all, there are many advertisements about gambling these days.
Gambling is seen by many as a hobby or pastime, though it’s also important to remember the tagline on all of those adverts, which is to gamble responsibly. This is key, ahead of applying for a mortgage.
Whilst it’s not up to a mortgage lender to tell you how to spend your money or that you should gamble responsibly, they themselves have a duty to lend responsibly and adhere to mortgage regulation.
If a mortgage lender needs to be careful who he lends to and prove to regulators that they are responsible, it is not too much to expect the same approach to an applicant and his finances.
Think about it from your own perspective; If you were going to lend money to someone, you would want to know that the person you are lending to is a trustworthy individual and adamant that they’ll pay you back.
As described at the beginning of this article, a mortgage lender cannot stop you from doing so because gambling is not illegal. Nor is it automatically guarantee that you are going to be declined, it can be possible to get a mortgage!
Where it can be difficult for applicants with gambling habits is that it is up to a mortgage lender to decide whether your transactions are reasonable and responsible or not.
Against this background, they will look at how often these transactions occur, how big these transactions are compared to the income of applicants, and the impact they have on your account balance.
If you only make smaller transactions on an infrequent basis, with minimal impact on your credit score, then a mortgage lender probably won’t bother them. On the contrary, larger, more frequent transactions are likely to be considered irresponsible and you could be rejected.
As we have looked at, a mortgage lender will be looking to see how you manage your finances in order to determine whether or not you can be a reliable borrower.
It is important to remember that mortgage lenders are financial institutions that tend to sell current accounts, overdraft options, credit cards, personal loans and more, so things like this will also play a role in your mortgage application.
The key for a mortgage applicant is how well you can manage these facilities. For example, having an overdraft and occasionally using it isn’t necessarily bad, though going over repeatedly will go against you.
They will also look for any missed payments on any personal loans you have and any undisclosed loans you have. You might be keeping up your payments, but failing to mention a regular outgoing won’t look great.
Finally, a mortgage lender may well consider how much of the month is spent overdrawn. Do you immediately go to credit on payday and spend the rest of the month struggling? How lasting is a mortgage for you?
The simple answer to this is just to be sensible and plan ahead if you can. Generally, a mortgage lender wants to see the last 3 months bank statements, to show your income and regular outgoings.
As such, if you are looking to apply for a mortgage in the future, you should be careful in advance. Take a break from gambling and showcase your bank account in the best light.
Your mortgage broker in London can help you during your mortgage process, as there may be mortgage lenders willing to take fewer bank statements.
The simple answer to this is just to be sensible and plan ahead if you can. Generally, a mortgage lender wants to see the last 3 months bank statements, to show your income and regular outgoings.
As such, if you are looking to apply for a mortgage in the future, you should be careful in advance. Take a break from gambling and showcase your bank account in the best light.
Your mortgage broker in London can help you during your mortgage process, as there may be mortgage lenders willing to take fewer bank statements.
Having said that, it is always important to be as careful as possible before applying for a mortgage because even lenders who are initially willing to accept less still reserve the right to request more if necessary.
Always ensure that you gamble responsibly! There is a warning for your financial and mental well-being.
If you are new to the mortgage world as a first time buyer in London applying for a mortgage, it is always recommended that you speak with a specialist mortgage advisor.
We are experienced in helping customers to obtain mortgages with bad credit, so even if your credit history doesn’t look great, there may still be options for you!
Once you have made an offer on a property in London, the next step of your mortgage process involves selecting a property survey. This is something that your mortgage advisor in London will help you with.
A property survey is carried out to determine the true value of a property. This can give the lender an idea of whether you have overpaid for the property. Depending on which type of property survey you choose, the survey may also highlight any damages in and outside the property and its overall condition.
If you have had your property survey carried out and it turns out that you are paying more than what the property is worth, your lender may down-value your final mortgage offer. This means that they reduce their initial mortgage offer (in your agreement in principle) to match the value that they think the property is worth according to the property survey.
In most cases, we recommend that you go back to your seller to try to renegotiate your offer, presenting them with your property survey. Hopefully, they will lower their asking price.
In some cases, they may want the full asking price, despite the property survey results. If this happens, you may need to make up the remaining total if you still want the property. If you cannot make up this amount, unfortunately, you may lose out on the property.
If you are a first time buyer in London and need further help with property surveys and understanding how they work, feel free to get in touch with our mortgage advisors in London, they will be more than happy to help!
Before you select a property survey, you will need to know the difference between each one and how different properties may require a different type.
The three main types of property surveys include:
A Mortgage Valuation is the most basic property survey, that will likely be carried out on all properties at the minimum. This survey will look at the true cost of the property and compare it to the offer that you have placed on the property and the mortgage you’re looking to take out.
This property survey is used for a mortgage valuation only, and will unfortunately not highlight any repairs that are needed on the property. During the survey, you may become aware of obvious defects, however, underlying issues and faults may not be brought to your attention. This is why sometimes getting a higher level of property survey can benefit you more.
A Homebuyers Report looks at structural safety and will highlight issues that need immediate attention. For example, if there is dampness existing within the property, it will be detailed within your Homebuyers Report. You will be given this report by an independent property expert.
To make sure that you are not two different property surveys, it is worth asking whether the mortgage company’s surveyor can carry out this report for you. It is also worth noting that a Homebuyers’ Report may take a few hours to complete.
This type of property survey features everything to do with a property. It included everything a Mortgage Valuation and a Homebuyers Report does, however, provides much more detail and insight into the property.
Depending on the type of property that you are looking to take out a mortgage on, a Full Structural Survey can take up to a day to complete.
As a mortgage broker in London, we would recommend that if you are looking at buying an older property, you should take out a Full Structural Survey on the property before buying it. Older properties tend to cost more to repair, therefore, you would want to know about these costs prior to purchasing the property and discovering the repairs needed further down the line.
If you are a first time buyer in London or moving home in London, we are here to help you select the right property survey for you and the property you are looking to buy.
We want to make sure that you make the right decision so that you know everything about the property before buying. In some cases, this could help you save money!
We are looking forward to hearing from you and helping you with your mortgage in London.
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 team may be able to relieve some of your stress, please get in touch to reap the benefits of a free mortgage consultation.
It goes without saying that it can be costly to buy a new home. There are various costs that can add up, as well as different options every step of the way that you can choose from.
If you’re a first time buyer in London who is looking for mortgage advice in London, you’ve come to the right place, as this piece will explain many of the costs typically associated with buying a new home.
Only those that are selling a property are required to pay an estate agent. It should be noted that these fees can vary drastically between different estate agents. Often, these fees can be negotiated, particularly when there is a lack of properties available for sale.
The cost of surveys can vary depending on requirements, however, your mortgage advisor will be able to recommend the most suitable option for you.
Mortgage lenders will inform you of the value of the property you are considering buying. This enables you to determine whether it is worth the cost. This can cost upwards of £300, or may even be offered for free by your lender.
It is also possible to request a more detailed Home Buyer’s Report, which often costs in excess of £1000 for the most in-depth surveys.
As a guide, mortgages with low-interest rates are typically those with the highest fees. Mortgage arrangement fees can vary between being free, or even costing upwards of £3000.
Mortgage advisors in London are in the best position to explain the most cost-effective products that align with your requirements, working out the total amount to pay throughout the product term, including fees.
It is usually possible to add arrangement fees to the mortgage. In this case, it will prevent a costly one-off payment; however, there will be interest on the fees, which end up costing significantly more over the mortgage term.
It is essential to have a solicitor take care of the legal aspects of buying your home. Your solicitor needs to be on ‘panel’ for the lenders you require, so make sure your choice facilitates this. Your mortgage advisor in London will be able to guide you throughout this process.
It’s also important to make sure that the quotes you consider for solicitors’ fees include local searches and VAT, preventing any unexpected costs from arising.
Stamp duty is a tax that is paid to the Government for some property purchases. This is paid to the solicitor upon completion, as they will pay the government for you.
For more information, visit: https://www.gov.uk/stamp-duty-land-tax/
When searching for a mortgage broker in London, it’s important to understand the applicable fees.
The majority of mortgage brokers in London charge fees, with the sum of money owed often being linked to the amount the lender pays the broker for carrying out work on their behalf. Many brokers only charge fees when they successfully get a formal mortgage offer for you.
Reviews are a great way to see other peoples’ experiences with a mortgage broker in London, which can help you to make your decision. As an example, if you find a mortgage broker in London with great reviews, this can give you confidence when choosing to work with them.
While some people choose to hire a van and move their own furniture and belongings into the new home, removal companies can take the stress out of this process.
While it does cost to have a removal company take care of this on your behalf, they can speed up moving and enable you to focus on other things, making your move more enjoyable!
This piece should have given you plenty of useful information, helping you to understand the basics of mortgage advice in London and setting you on the path to getting started.
There are several reasons why a second mortgage might be worth considering:
Releasing funds for a second mortgage depends on how much equity you have in the home and this is where specialist mortgage advice in London may be able to help. Lenders have a standard variable rate which is also called Lender’s basic mortgage.
Once you understand that each lender has its own standard variable rate set, then you understand the need for shopping around to find a better offer. You can also opt for a further advance with your existing Lender.
If you live in a property and want to move elsewhere then Let to Buy option is for you. It helps you in moving home in London as well as lets you keep the ownership of your existing property for you to rent it out later. Your second mortgage will be for a new residential mortgage.
Being a parent, you are considering and looking for ways to help your children or grandchildren find a place on the property ladder. There are many routes that can assist you in purchasing home for your child.
Looking for a new home while having your name on an existing mortgage occurs in situations when an individual is getting divorce or separation.
Before making any decision about second mortgage, make sure you have right people advising and helping you through it. Your dedicated mortgage advisor will be able to help in checking thousands of mortgage offers on your behalf and proposing the most acceptable offer to you, based on your personal circumstances.
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 for 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.
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.
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UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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Londonmoneyman.com & Londonmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
