How Many Times Can You Remortgage in Derby?

When you are nearing the end of your fixed-rate mortgage, if you are like the majority of homeowners, you will be looking at a remortgage in Derby. The good news for you, is that you are able to remortgage as many times as you like, yet this doesn’t necessarily mean that you should.

Why do you want to remortgage in Derby?

Chatting with an expert mortgage advisor in Derby about your remortgage options could save you hundreds of pounds down the line. In addition to this, some people remortgage to release equity, which depending on your reasons for doing so, can be a financial helping hand.

Some may use that equity to remortgage for home improvements. Others may remortgage in Derby to free up enough equity to put down a deposit on an additional home, so long as you are able to maintain your monthly mortgage payments on two properties.

Can I remortgage early in Derby?

Whilst you generally won’t have any restrictions, if you do actually choose to remortgage in Derby before your fixed rate period is set to conclude, you may end up having to pay an early repayment charge (ERC).

If you took out a five year fixed-rate mortgage, then we would suggest that you remortgage in Derby once your deal has ended. Failing to do so could see you land on your lender’s standard variable rate (SVR), which can often be much higher interest rate than the initial mortgage deal.

Are there any benefits to remortgaging early in Derby?

It will usually depend on the reason you are looking to remortgage early in Derby. There are many homeowners who will choose to release equity in their property, in order to take out any necessary home improvements or to save themselves some money.

Make sure that you look at your agreement with your mortgage lender, as you will generally have to pay a early repayment charge, which is typically charged at a percentage of the remaining mortgage amount. Additionally, there may also be an exit fee to cover the companies admin costs.

Another benefit is having the option to lock into a new deal, once your current deal ends. That way, if rates do go up at any point, you’ll be safe in the knowledge that your new mortgage will remain unaffected.

Can I remortgage in Derby with bad credit?

As long as you are able to show that you can keep up all your repayments, then it may still be possible to remortgage with bad credit in Derby. The longer ago your credit issues are, the better your chances. Some mortgage lenders might ignore ‘minor’ issues, such as missed mobile contract payments.

As is the case with any remortgage in Derby, the interest rate that is payable will entirely depend on your credit score and also the amount of equity in your home. With bad credit, it’s often quite high. You can also look at capital raising when you get in touch for remortgage advice in Derby. 

When is the best time to remortgage in Derby?

We would usually recommend that you start looking into your remortgage options around 6 months before your fixed mortgage period is set to end.

This will hopefully give you enough time for you to take out remortgage advice in Derby from an expert in the industry, as well as make sure your new mortgage is set up and ready to start just as your last deal is about to finish.

On the other hand, you may want to raise capital because your home is now worth much more money since you initially bought it. In this situation, it might be worth taking out a remortgage early to make an investment in a buy to let property or use the raised capital to make home improvements. 

Speak to a Remortgage Advisor in Derby

There is generally no limit on how many times you can remortgage your property, though most people will do so once their fixed-rate mortgage period is about to end.

Whether you end up remortgaging in Derby early or once your fixed-rate mortgage deal has ended, we would highly suggest enquiring for remortgage advice in Derby so that you can make sure your mortgage payments do not fall onto your mortgage lender’s SVR (standard variable rate).

Book a free remortgage review today and speak to a trusted mortgage advisor in Derby about your remortgage options.

Capital Raising Mortgage Advice in Derby

Fast & Friendly Remortgage Advice in Derby

If you have any amount of equity currently in your property and are looking at your options for potentially Capital Raising, then a Remortgage in Derby could be something you can feel the benefit of.

We often see that mortgage lenders, for the most part, will allow customers to borrow up to 90% of the value of the property.

Below are a handful of examples of how a Capital Raising mortgage can be used by people currently owning a home in Derby:

• To fund any possible home improvements like a home extension or loft conversion.
• To consolidate any debts they have accrued over time (definitely speak to a specialist advisor in Derby before doing this, it should not be done on a whim).
• So that they can help their children find their footing on the property ladder.
• As a means of purchasing a second home/property in their portfolio.
• To fund a large purchase such as a car or holiday.

Will a Capital Raising mortgage benefit me?

Taking out a Capital Raising mortgage may be a way for you to potentially ward off any financial issues sooner rather than later.

Whilst having lower interest rates and increasing the amount you borrow for your mortgage may mean paying more monthly, this sort of route may prove more financially viable than taking out any unsecured loans.

Again though, this likely means more being added to your monthly mortgage repayments, for much longer than you originally signed up for, and you may also have to pay an Early Repayment Charge (ERC) as you’ll technically be changing your mortgage.

Saving your Time, Saving your Money – Mortgage Broker in Derby

As a Mortgage Broker in Derby with a wealth of knowledge and experience under our belt, we have a rich history of helping all kinds of customers with their mortgage needs, especially those who are reaching the end of their term and are looking to Remortgage in Derby.

A member of our dedicated team will give you expert mortgage advice on the right path for you to take. If Capital Raising is right for you, your advisor will move forward with that plan.

If they believe that it isn’t right for you, they will advise otherwise and discuss how else you can achieve your goals.

If you are in need of any help to find you the best capital raising mortgage deal for your current personal and financial situation, please feel free to contact us and get yourself booked in for a free mortgage appointment.

You’ll get roughly 45 minutes with a mortgage advisor in Derby who will discuss your requirements and look at how best to proceed.

For any homeowners who are maybe past the age of 55, it may be more appropriate for you to look at Equity Release in Derby.

The Importance of Changing Your Address Ahead of a Mortgage

Don’t Pretend to Live Somewhere Else

Once you begin the process of moving home in Derby, there will be a lot for you to deal with stress-wise. One area that is always tedious, but it essential to make sure you get right, is updating all records of your address, to make sure that bills and other post goes to the right home.

There will no doubt be a lot for you to update, from your local GP, to your Amazon shopping account and more! It goes beyond just making sure you get your post though, as consistent address information is helpful in many other areas as well.

Most of the time, addresses can be missed when you are updating everything, which can leave you being linked to multiple addresses. What you may not realise though, is it can impact your credit score too. The less varied addresses you have, the better it is for your credit score.

Because of how important your credit score is to a lot of areas, you need to make sure that your credit score is looking in a good way, especially if you are looking to apply for a mortgage on a new home in Derby.

In more recent times, first time buyers in Derby and home movers in Derby seem to think they have a much bigger and better understanding of how their credit scores work and will look to use this to their advantage, keeping both old and newer addresses active.

Typically, this will be done if they have moved out of their family home with their parents, becoming private or council tenants. Even though they will now be living somewhere else, they don’t see the issue in leaving their credit cards, electoral roll info and bank statements at the old address they had.

Many think that with this type of practice, they can manipulate how it looks to seem like they have a long-standing and stable address in their name, rather than moving from address to address. In theory, this works, though in practice, it really does not.

Records of Your Address

The reason why this does not work, is that somewhere as time has gone on, if you have moved home in Derby, there will be a record of the new address on your credit report. Staying linked to your previous addresses is a flawed strategy, unfortunately.

Whether it’s through paying home bills, any car insurance you have, things that you have ordered from online stores like Amazon or eBay, or from anything else you have given your address over time, there will be a record of it existing on your credit file.

In turn, this can seem like you are actually living in two places at the same time or even like you have failed to disclose important information to the mortgage lender. In either case, this can have an impact on your ability to achieve mortgage success, as this will be based on trust.

Keeping Your Address Up-to-Date

The best thing that anyone who is looking to purchase a new home in Derby and apply for a mortgage can do, is to make sure that every record of your address is completely accurate and your accounts are all updated.

This means you need to be sure that all of your online shopping accounts, the electoral roll, your credit cards and pretty much anything else that springs to mind that has your address on it, is all correct and the most up to date it can be, with your current home address only.

When you update your address to be where you are currently living on the electoral roll, make sure that you have definitely got the right moving in and out dates, as getting this wrong can also make it seem like you have two homes.

Making sure that all of your addresses and dates for moving in and out are correct is a far more open and honest way of handling your application for a mortgage in Derby, with a mortgage lender. Not only will it paint you in a good light, but it will make your mortgage process a little easier.

What else can be done to help me obtain a mortgage?

Aside from keeping your addresses on and offline up to date, there are also a collection of different tips that could prove to be quite useful to those applying for first time buyers mortgages in Derby, as they start their own home buying and home owning journey.

These tips include making sure you maintain your bank accounts, try to avoid unnecessary charges if you are able to do so and limit your gambling transactions, if you happen to be a regular gambler. Gambling can have a massive negative effect if you do this too often.

Remember that your bank account needs to represent a true reflection of how well you can keep up monthly payments, generate income and handle your finances in a suitable way. This is a big determining factor in your ability to obtain a mortgage.

Gifted Deposit

A gifted deposit can be a great opportunity for a first time buyer in Derby to take their first steps towards homeownership. This is where a family member is able to gift you a portion of or even the full amount of a deposit to you, to help you buy your new or first home.

This is solely to be a gift, however, not a loan to be repaid. Your mortgage lender will want to see this in writing, to prove that this is the case.

Check My File Credit Report

We would always absolutely recommend that customers, whether they are new or existing, they should take a look at obtaining an up-to-date credit report as soon as possible.

Check My File is a really great tool that can pull together information from a variety of sources, such as Experian and Equifax, in order to get a more complete view of your financial position. You get a 30 day free trial, that can be cancelled at any time, before it rolls onto £14.99 a month.

Armed Forces Help to Buy Scheme in Derby

Forces Help to Buy Mortgage Advice in Derby

The scheme was initially brought into prominence back in 2014, with the £200 million scheme’s purpose being to provide a boost to anyone from the forces who needed help buying a property.

The project was not intended for long term though, as it was meant to end in December 2019. Rather than ending it, as a thank you to everyone’s commitment to their Queen and country, our government chose to turn this into an enduring policy.

Who can apply for the Forces Help To Buy Scheme?

If at any point you served in the military and can meet the right criteria, you will have access to this scheme, wherein you are able to borrow a deposit of up to half your annual salary (up to a maximum of £25,000), without any interest added on.

This can be used as a means of purchasing your first home or to fund a new property to move into. Arguably the best and most appealing part to this, is that you do not need to have any current savings in order to take that first step onto the property ladder.

The money you will be using is raised from the Forces Help to Buy loan and can be used for anything, from your deposit to any other additional costs. These can include, but are not limited to, stamp duty costs, estate agent fees or even the costs of finding a solicitor.

This government scheme tends to be a little more relaxed than some other schemes, as the Forces Help to Buy loan can be drawn out and paid back over a term of 10 years. This gives you room to breathe and not feel so rushed at any point.

With all this in mind, the Forces Help to Buy loan is a true lifeline to those who never even thought they’d be able to own their own home. Bear in mind you’ll still have to qualify for eligibility, which is based on if you have served your country and can meet the right criteria (length served, service term left and medical categories).

Click here to read additional information on this scheme from the government.

How a Mortgage Advisor in Derby May Be Able to Help

With the assistance of a dedicated and experienced mortgage advice team in Derby, your mortgage process may go quicker and smoother than it would going alone. Your mortgage advisor in Derby will walk you through every step you need to take, having your back from day one.

From the start of your mortgage process when you get in touch, right through until your mortgage has been completed and even beyond that, your dedicated mortgage advisor in Derby will make sure you are taken care of, and hopefully end up with the best result for your circumstances.

As a company that prides itself on a reliable and efficient customer experience, aims to take the stress away and most importantly, loves and respects the nations forces, please contact us today and we’ll take a look at how we can help with your home owning dreams.

Please bear in mind that the Forces Help to Buy is not the same as the standard UK Help to Buy scheme.

Can I Get a Mortgage with a CCJ in Derby?

Bad Credit Mortgage Advice in Derby

What is a CCJ?

A CCJ, short for County Court Judgement, is a court order issued in the UK to residents who fail to pay back any owed payments.

Having one of these court orders associated with your name can actually have quite an adverse effect on your credit file, reducing your ability to take out any form of loan in the near future. Included in this, is a mortgage, possibly the biggest loan anyone will ever take out. If you have a CCJ preventing you from obtaining a mortgage, you will benefit from speaking to a specialist mortgage advisor in Derby.

Our hard working team have lots of experience within this area, dealing with CCJ mortgages on an almost regular basis. Feel free to speak with our dedicated team, who will be more than happy to lend their expertise to your case.

When applying for a mortgage with a CCJ tied to your name, your mortgage advisor in Derby will need to look at a few things with you. These include:

???? How many CCJ’s are currently registered to your name.
???? Are the CCJ’s settled or unsettled.
???? How much your deposit is.
???? The value of the CCJ.
???? The date that the CCJ(‘s) was/were registered.

How do you get a County Court Judgement (CCJ)?

If you fail to keep up and ultimately miss any form of payment that is owed, you may find yourself with a County Court Judgement. This could occur from regularly missing a small loan payment such as a phone contract, to consecutively missing your mortgage payments. A CCJ can seriously harm your credit score.

When you are issued a CCJ, you will be given 30-days to pay off your debt. This is known as a satisfied CCJ. If you are able to meet this deadline and pay it off in time, the CCJ may be stripped from your credit file. That being said, if you fail to meet this payment, it will remain present on your credit record for a total of 6 years, known as an unsatisfied CCJ.

Can I still get a mortgage with a CCJ?

Concerns and complications aside, this can still happen! By having a reputable mortgage broker in Derby like ourselves working alongside you, it is not outside the realm of possibility to get a mortgage with a CCJ.

Providing you kept on top of your finances are were able to meet the 30-day deadline, the CCJ can be withdrawn from your records, which in turn would increase your chances of obtaining a mortgage. Failing to meet these payments within the given time frame will leave the CCJ linked to your name for 6 years.

If we’re dealing with a recently issued CCJ, getting accepted for a mortgage may be a little more difficult. This will often depend on how much of the payment that is owed has been paid off, and how much is still remaining. Also, the further away you are from the initial issue date, the more likely you are to be accepted for a mortgage.

We have a variety of unique specialist mortgage lenders on panel, each with their own specific lending criteria relating to CCJ’s and how much deposit you will need. It’s our job to know all of their lending criteria well, in order to recommend the most appropriate mortgage for your personal situation.

When you have a CCJ linked with your credit file, lenders will require more information from you regarding the CCJ. They will look for any underlying issues, like if you already owe money to another mortgage lender, as well as the effect your financial state could have on the property and how you well you can manage your overall finances.

It may be harder to get accepted for a mortgage with a CCJ, though with the help of a mortgage broker in Derby and a different approach, such as trying to improve your credit score, this may be possible.

Can I dispute a CCJ?

Though it may be difficult, by providing enough evidence, it may be possible to remove your CCJ from your records.

On the chance that you feel like something isn’t quite right and you have been given a CCJ by mistake, you can ask for the court to re-open the case against you. You will need to fill out an N244 form and send it to the court in order to appeal against your CCJ and save your credit file from further duress.

If the court agrees that the CCJ was wrongly issued, they will remove it from the register clearing it from your name. For this you will be given a certificate of cancellation, though you will have to pay for this yourself. Any costs involved are arguably worth it though, for the benefits reaped from undertaking such an action.

Does the date of my CCJ make much of a difference?

If a CCJ is left unsatisfied, it will still be removed from your credit file after the 6 year mark. As mentioned before, the further away you are from the CCJ issue date, the more likely it is that you’ll be accepted by a lender for a mortgage.

It is important to note though that if the debt has not been settled within the 6 years of you being issued the CCJ, your chances of being accepted are still slim. This means you can’t just wait out the 6 years and hope it will all work out.

The lenders confidence in you will increase the quicker that you pay off your debt. Remember though, that each lender is different and will look at a CCJ differently to another lender. In some cases, you may find that a lender will not even work with you at all. It’s reasons like this why it’s incredibly beneficial for you to approach a specialist mortgage lender in order to see what your options are.

How can I rebuild my credit score after receiving a CCJ?

In order for you to get your credit score back on track, you will definitely benefit from taking bad credit mortgage advice in Derby. You must keep up-to-date with your mortgage payments, current financial commitments and your CCJ over the course of this 6 years. Even if you’ve paid it off within the 30-day window, you should still be wary of your finances and be certain to make sure this absolutely never happens again. This is because having multiple CCJ’s to your name can hurt your credit score even further.

If you want more free mortgage guides, tips and tricks on how to improve your credit score in Derby, feel free to check out our guides or contact us now and speak with our amazing team of specialist mortgage advisors in Derby today.

Mortgage Advice in Derby after Divorce / Separation

It is very sad when you and your partner decide to call it a day. When you have made joint financial commitments unwinding that side of things does not always run as smoothly as you’d hope.

Here are three main questions that we get asked on divorce and mortgage advice on a regular basis:

How do I remove my ex-husband/wife from my mortgage?

Obviously, when you buy a home together you don’t do so with the intention of splitting up in the future but it is a massive financial commitment and making changes to your mortgage further on down the line is not always easy.

When there are children involved, quite often it’s the mum that stays in the property but regardless of gender, there may come a time that whoever is residing in the property wants to take over the mortgage in their own right. 

The fact that you may be able to demonstrate you have been paying the mortgage without any help from your ex, does not change the fact that at the point of application you bought the property jointly or, in other words, in the event of mortgage arrears there are 2 people the lender is allowed to pursue.

Before removing a party from a mortgage the lender has to be sure that the remaining applicant has the means to be able to afford the mortgage on their own going forward and this means a full assessment of income regardless of whether you have kept up mortgage payments in the past or not.

Quite often in these situations, there is someone who can step in to replace the ex-partner such as a family member or indeed your new partner.

Of course, there are lots of mortgage lenders out there all with slightly different ways of assessing your ability to afford a mortgage so don’t give up hope if your existing lender says no, we still may be able to help you. Coming to us and receiving Specialist Mortgage Advice in Derby, could give you that little boost that you need to get the ball rolling.

How do I remove my name from my ex-partner’s mortgage?

If by chance, you and your partner do split up and leave the property in question then you remain responsible for mortgage payments. Even if it’s an agreement between you and your ex that they will make all the payments.

If you are sending your partner money each month, you should keep an eye on your own credit report to ensure that they are paying the mortgage because if they default it will impact your own score.

If you are still connected to an old mortgage then the payments for that will be taken into account if you are looking towards buying a new home and ultimately lenders might not lend as much as you might like.

Buying a home with anyone is a risk to it’s best that you plan ahead for as many outcomes as possible, unquestionably it’ll be impossible to plan for all scenarios as there are too many factors and variables but if you do fall into hardships then getting Specialist Mortgage Advice in Derby could prove extremely beneficial.

Can I have two mortgages?

The answer to this one is usually yes. Lenders and their credit scoring systems take many factors into account before they offer you a mortgage.  On-going financial commitments are just one of these. The mortgage payment you hold with your ex will need to be inputted, alongside any other credit commitments you may have.

Once we’ve keyed all this in for you our system will confirm the maximum amount you are able to borrow. So you know your budget at outset and how much deposit you will need to put down.

It can be difficult to move on from your previous joint financial commitments. Just remember it’s all about risk as far as lenders are concerned. They want to avoid repossession situations at all costs.

Our 10 Step Mortgage & Home Buying Guide for First-Time Buyers

As a dedicated mortgage broker in Derby, it’s always our goal to keep people informed, up-to-date and prepared for what lies ahead on their journey. In this article we have compiled an authoritative list of the 10 steps involved in the mortgage process for First-Time Buyers in Derby, so that you to be as “Mortgage Ready” as possible.

There are 10 steps in the process of buying a home and obtaining a mortgage;

1. Free Mortgage Consultation
2. Mortgage Affordability Assessment
3. Agreement in Principle 
4. Find A Solicitor
5. Make an Offer
6. Submit Your Documents
7. Formal Mortgage Application
8. Valuation/Survey
9. Mortgage Offer
10. Completion

First Step: Get in Touch for Your Free Mortgage Consultation 

After careful planning and consideration, you’ve now decided you’re going to jump in at the deep end and purchase a home, taking out a mortgage as a First-Time Buyer in Derby. We can almost say for certain that this is going to be one of the biggest financial decisions you ever make. Upon realising this, the anxiety can kick in, especially when you have no experience doing anything like this.

It’s at this point where a dedicated mortgage broker in Derby can jump in and start to guide you through the ensuing process. We always strive to take the stress away from you, working hard and doing our very best to ensure you come out the other side with a mortgage and in good spirits, ready to move into your new home.

Once you Get in Touch with us, we’ll be able to get you booked in for a free initial mortgage consultation with one of our very experienced and caring mortgage advisors in Derby. Here we’ll take some information from you and look at what your plans for the future are, before getting started on your mortgage process.  

Second Step: Mortgage Affordability Assessment – How are you doing Financially? 

During your free mortgage consultation, your dedicated mortgage advisor in Derby will be able to run through a Mortgage Affordability Assessment with you. This process is fairly quick, and is where your dedicated mortgage advisor will go through your monthly income with you, looking at your regular expenditures (what you spend your money on), to get a good idea of whether or not you have the financial means to afford the mortgage amount you are looking to borrow.

It is very important for us to do this before presenting you to a lender, as we will need to have confidence that you can definitely afford your monthly repayments. This will help you avoid the risk of arrears and any future repossessions that may potentially occur, something the lender will really want to try and avoid themselves if they can help it.

A Mortgage Affordability Assessment will also usually be undertaken by a lender, so checks we take out initially will help save the lenders time, our time and more importantly your time, from an application that may be declined later down the line if you happen to fail on affordability.

Third Step: Obtaining a Mortgage Agreement in Principle

Once we’ve done this, the next step in your consultation will be to help you obtain a very important and useful document called a Mortgage Agreement in Principle. If you’ve been doing any research on mortgages prior to receiving First-Time Buyer Mortgage Advice in Derby, you may have seen this mentioned with various names, including ‘Decision in Principle’, ‘Mortgage in Principle’, as well as the abbreviations ‘DIP’ & ‘AIP’. The only difference between these is the name; they are the same thing.

The reason a Mortgage Agreement in Principle will be essential in your process is because it provides a record that you have passed a lenders initial credit scoring system, either by that lender performing a hard credit search (which will leave a footprint on your credit file) or performing a soft credit search (which does not leave a footprint on your credit file).

You’re still not guaranteed to be accepted for a mortgage, but this is a necessary step on your way towards your end goal. Another benefit to you having this document, is that it will show the seller of a property that you are very serious, possibly creating room for price negotiations with them when it comes to making an offer.

Usually you’ll find that an AIP will last somewhere between 30-90 days. If your Agreement in Principle expires before you are able to use it, it can be easily renewed. Our team of expert mortgage advisors can usually get one of these turned around for you within 24 hours of your initial free consultation.

Fourth Step: Finding the Right Solicitor 

After you have gotten yourself Agreement in Principle, it’s on to finding yourself a Conveyancer to provide assistance with the legal proceedings of the homebuying process. The term Conveyancing is the name used for the transfer of legal ownership of property between two different parties, whether you’re the buyer or seller.

Your Conveyancing Solicitor will be able to deal with contracts, give any required legal advice, conduct local council or authority searches, help sort out with Land Registry arrangements and finally the transfer of the funds you have acquired in order to pay for the property you are looking to purchase. As you can clearly see, this is a hugely important role in your mortgage process, so you must carefully make your choice.

Something else important to remember here, is that Licensed Conveyancers are property specialists and can’t deal with complicated legal issues, whereas a more general Solicitors will be able to offer you a full range of services, so can often appear to be more costly. Whilst we do not offer these services ourselves in-house, we have a list of trusted companies that we will gladly be able to refer you out to, if you ask us for this.

Fifth Step: Making an Offer on a Property 

At this point in your story so far, you’ve spoken to a Mortgage Broker in Derby, passed the Mortgage Affordability Assessment, gotten yourself an Agreement in Principle and found yourself a suitable Conveyancing Solicitor to help process the legal side of your purchase. This means you’re almost at the finish line! The step that will follow is for you to make an offer on a property!

As mentioned earlier on, with an Agreement in Principle in hand, you will be in a far better spot to start negotiations with the seller regarding the price of the property. Make sure not to insult the seller with an offer that is too low, but in the same breath, don’t be afraid to ask for a lower price. Knowing you have an AIP to hand, the seller will be more likely to accept your slightly lower offer than an offer from someone who is willing to pay the asking price but hasn’t even begun to prepare themselves for a mortgage.

At the end of the day, the worst thing that can happen is the seller might say no, but it’s at that point you can work out a more reasonable offer for both of you or take a step back and find yourself a different property with a price that is within your range. Once your offer has been accepted, it’s back to your mortgage advisor and onto the final stretch of your mortgage process.

Sixth Step: Submit Your Documents 

The step you’ll be moving onto is an important one, as you’ll be submitting the required documents to go forth with your mortgage. As you might have expected when such a large amount of money is involved, a mortgage lender will be very picky as to who they are willing to lend to and rightfully so. There are various notable instances in the past where they were a little more lax on the rules and things didn’t work out too well.

Your mortgage lender will need you to present them with various documentation to prove that you are the right person to lend to. They’ll need to see the amount you earn from your current career, where your current residence is and how well you conduct your finances on a monthly basis. If you’re obtaining a joint mortgage, they will require this same documentation from either person involved with the purchase of the property.

The types of documents you will be required to submit to the lender include; proof of identification, proof of address, the last 3 months’ of your pay slips and latest P60 (employed), the last 3 years’ proof of earnings and Tax Year Overviews (if you are Self-Employed in Derby), proof of any income such as state benefits or maintenance, proof of deposit and the last three months of your personal bank statements. 

Seventh Step: We’ll Progress Your Mortgage Application 

When your mortgage has been agreed in principle, and you’ve had an offer accepted, we can now proceed to submit your full mortgage application to the lender. With everything readied and checked by your Mortgage Advisor in Derby & their team of Mortgage Administrators, we are ready to submit an application to the lender and await confirmation that you’ve (hopefully!) got your mortgage.

Your mortgage advisor in Derby will send off all the collected evidential documentation for this, and then all that is left is to wait for them to respond with either an accepted application or one that has been declined. Whilst there is no given time frame, our Mortgage Administration team will be able to chase the lender for an answer on this for you, until we have a clearer answer for you.

Eighth Step: Property Valuation / Survey 

In-between the point of submitting your mortgage application and being offered a mortgage, the lender will require that your property have a valuation survey undertaken. These are usually carried out by accredited companies nominated by the lender (someone that they will trust to do this).

The reason they do this is to understand how much the property is truly worth overall, compared to what you’ve agreed to pay for it with the vendor of the property in question. If you’re paying above what it is deemed to be worth, the lender may be less willing to accept your offer. The reason for this is because they will most likely be out of pocket and unable to make back the amount that they had let you borrow if you happen to fall gain any debt at any point. This is usually referred to across the mortgage world as a ‘Down Valuation’.

There are various types of property survey available, with each of these varying in price. Some will just want to take a look at how much the property is worth, whereas some will also provide information on any issues with the structure that you should look into, as well as possible repairs that you may need to keep an eye on for in the future. Your Mortgage Advisor in Derby will be able to advise on which one may be right for you.  

Ninth Step: Receiving Your Mortgage Offer 

Now it is time for the moment you’ve been preparing for all along. Your mortgage lender has checked over your case and performed an assessment of all the documented evidence. Once this is completed, they will be able to present you with your Mortgage Offer.

Our team of friendly Mortgage Advisors and Administrators in Derby, that you’ve no doubt gotten to know quite well over the course of your process, will check over the offer on your behalf to ensure everything is correct and right for what you wanted. Then after your mortgage offer has been received, it’s down to your Conveyancing Solicitor to take your purchase from there, all the way through to the point of completion.

Tenth Step: Completing The Process 

Congratulations, you’ve now officially graduated from the point of being a First-Time Buyer in Derby, all the way to being a full fledged First-Time Homeowner in Derby! You can hopefully now rest assured that any of the previous anxieties and concerns that were bothering you before, are now in the rear view mirror. We sincerely hope you are happy with your new home and ready to begin your new life and bright future.

All that is left for you to do is go get your keys and begin the process of moving in all your belongings! From the bottom of our heart, we hope you received a fast & friendly Mortgage Advice service in Derby and enjoyed speaking to our team throughout your journey to becoming a homeowner. If you have chosen a fixed rate mortgage, at the end of your term, we will Get in Touch once more to help out with your Remortgage or any other future property plans.

What is a 95% Mortgage?

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

95% Mortgage Advice in Derby

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 Derby will be able to look at, to see if you qualify.    

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

Can I get a 95% mortgage?

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

Improving your credit score

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

Affordability 

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

Can my family help me get a 95% mortgage?

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

How do I choose the right 95% mortgage?

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

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

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

How can a bigger deposit help with my mortgage? 

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

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

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

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

Derbymoneyman Spring Budget Update 2021

Rishi Sunak’s second Budget as Chancellor brought two pieces of welcome news for the property sector as the Government attempts to transform “Generation Rent” into “Generation Buy” to help stimulate the UK economy, namely the new 95% Mortgage Guarantee and an extension of the Stamp Duty Holiday.

95% Mortgage Guarantee

The name of this scheme is misleading as not everyone that applies is guaranteed to be offered a mortgage, it is still subject to affordability and credit score. The “guarantee” itself is that the Government will ensure Lenders don’t stand a loss if they grant a 95% mortgage to a customer who then subsequently falls into arrears and is repossessed leaving behind negative equity.

This scheme should in theory give Lenders more confidence to lend even though the applicant only has a smaller deposit to put down. Of course, Lenders never want to repossess someone’s home unless it is the last resort, but if that happens then the new scheme would cover any shortfall.

Lenders have been worried about the prospect of home values decreasing so this measure should alleviate that concern although of course, the chances of negative equity occurring will naturally reduce should property prices increase as a result of these announcements!

The scheme is available to both 1^st Time Buyers and Home Movers, it’s available on any property (not just new build) and will run until December 2022. Some major High Street Banks have already signed up to the scheme and it’s likely more will follow later on. It’s still a big challenge for Lenders to cope with the demand they are getting for mortgages due to the difficulties training and supervising staff working from home but they will want to offer as many of these mortgages as they can.

Stamp Duty Holiday Extension

When the Stamp Duty Holiday was launched last year we all hoped life would be very much back to normal by the cut-off date of 31^st March 2021 but things didn’t pan out that way as we know. Solicitors are struggling to keep up with the workload and if lots of chains had collapsed then it would have partly defeated the object of the exercise.

Therefore it was good to hear the scheme has been extended to 30^th June for purchases up to £500,000 and 30^th September for purchases up to £250,000.

The Government certainly sees the property sector as an area that can play a big part in our economic recovery and if you are looking to buy a home or remortgage this year please reach out and we will be happy to advise you.

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Why Should I Use A Mortgage Broker In Derby?

It’s no secret that we think going with a mortgage broker would be your best option, however that isn’t the only path you can take. Sometimes it is worth exploring your options. Generally speaking though, we find that most people opt to side with a Mortgage Broker in Derby. Let’s take a look though at the positives and negatives of both, allowing you to decide for yourself.

As a general rule of thumb, a mortgage broker (like Derbymoneyman) will charge a broker fee on top of the costs you are already needing to pay for. On the flip side, the majority of mortgage lenders won’t require this, leaving you with money still in your pocket.

On top of this, going to a mortgage lender directly will open you up to exclusive deals you can only get through going to them. This attracts business from both those looking to get a mortgage and even mortgage brokers. These are also only allowed to be offered by the broker itself and not just anyone in a branch without proper mortgage advice training or consumer protection knowledge.

Luckily in 2014 this was banned nationwide, only allowing for experienced and fully qualified mortgage advisors in Derby to provide any kind of mortgage advice and product recommendation. This took a while for people to get used to however, and some customers were left waiting for a month, sometimes even more.

Even today, this can still happen to some customers. This isn’t the best when you have already had an offer accepted on a property you like. It’s reasons like this that mortgage applications via mortgage brokers went on the rise. A part of our charm is offering a same day service, hoping to put you through with a qualified mortgage advisor in Derby as soon as possible, often within the same day unless the customer requests otherwise.

Fast & friendly mortgage advice in Derby

In the days before the 2010s, it was a lot harder to look as possible mortgage deal comparisons, whereas nowadays everything is now at your fingertips and easy to find out. The hardest part now is not comparing, but rather finding criteria that you match up with and features that can be tweaked to match your individual situation. It is still advised that you be wary though, as deals with the lowest fees often come with the highest arrangement fees.

Something else to look out for is affordability. You could find the greatest deal in the world with a lender, but if you can’t afford it, you won’t get it. This in turn ends up being a large factor as to why people opt to use a mortgage broker in Derby. Using our knowledge of lender criteria, we will do our best to find you an appropriate and affordable deal for your circumstances.

With regulations these days being a lot tighter (a lot of that being thanks to the Credit Crunch), mortgage applications are not as easy as they once were. For the inexperienced home buyer, it can be an overwhelming experience to go alone. Here are some possible hurdles that customers may find along the way:

• I am receiving self-employed income.
• Being a contractor or working under a zero-hours contract.
• I am using a mixed deposit source, i.e. Gifted & Savings.
• Opting for Let to Buy. Renting your current home to buy another.
• I am struggling on the affordability front.
• I have a poor credit history.

Mortgage lender versus mortgage broker

Over the years, Mortgage Lenders had gotten rather competitive with each other, trying to offer better deals than their fellow lenders. Due to legislation changes post-Credit Crunch, most of these changes are now in regard to the lending criteria.

Some of these examples include how much they are willing to the self-employed versus the employed, as well as leniency when checking previous credit report issues.

Your circumstances are completely unique to you. Whatever the situation, it is unique to you. When speaking to an experienced Mortgage Broker in Derby about your situation, it will be likely that they have encountered something similar in the past. Hopefully with their experience in play, you’ll end up with the most appropriate deal for you, along with lower interest rates.

Why a mortgage broker in Derby will benefit you

Our service is more than just mortgage focused. Even if the application is simple and straightforward, customers will often still rely on a mortgage advisor in Derby for more. Customers are welcome to discuss with us how much they are planning to offer on a property, and we can recommend services such as solicitors and property surveys. One of our most important services is running through any available protection with our customers.

Something else we pride ourselves on is the ability to be a responsive mortgage broker in Derby, offering out of hours and weekend appointments to all our customers. Our dedicated team of mortgage advisors in Derby are available 7 days a week!

A factor that gets overlooked regularly, is that most applicants seem to be busy and need the assistance of a mortgage broker to handle the mortgage proceedings and eliminate possible stress. Professional applicants can reap the benefits of this as well, as they have their own clients that they are able to charge their services to.

In the future, we could see lenders wanting to bring back more customers from mortgage brokers. In this case, it’s unlikely that they will invest in more staff, instead opting for a more technological route.

For anyone looking for a quick and easy process, who is comfortable doing things that way, it’s great. Mostly we find though, whether they are First Time Buyers in Derby, Self Employed in Derby, or looking to Remortgage in Derby, people prefer people and would much rather have human interaction and input in their mortgage case.