The Costs of Buying a Home in Derby

A question that we regularly get from customers, is how much will their process actually cost? Generally speaking, First Time Buyers in Derby are the ones who reach out to ask this question the most.

Because of this, we have put together a handy list of the different fees you can expect to pay throughout your mortgage journey, and the different points at which they become payable.

Estate agency fees

Estate agent fees will generally only be payable if you are selling a home. With general interest in online estate agents on the rise constantly, you can sell your home with much lower fees on a basic Rightmove listing.

On the other hand, if you are looking for a more localised and personal service provided by a dedicated sales negotiator in a local branch, you will be looking at a fee somewhere around 1-2%.

Valuation fees

Your mortgage lender will require that you have a valuation carried out on your new home. This is to determine the value of said property, to confirm that it is worth the amount you’re looking to borrow.

The costs of a valuation can vary from nothing at all (for a basic valuation with some lenders), all the way up to well over £100 for a much more detailed Home Buyers’ Report. A full Building Survey can potentially cost more than that.

Really, being able to choose which report you would like is the key here. The valuation you decide will vary based on the age and type of the property you’re looking to buy, as well as any concerns you have.

If it’s a newer property, you may want a basic valuation. If you are buying a period property, you’ll probably want a more in-depth report.

Mortgage arrangement fees

Some of the mortgage products that you will find, will have cheaper rates. Occasionally though, the arrangement fee can outweigh how cheap it is.

This isn’t always the case, as there are products that won’t have a fee, meaning they cost nothing. That being said though, some might have a fee and they could be quite costly, depending on your lender or product.

You may have the choice to either add these to your mortgage balance or pay these upfront. If you add these to your mortgage, you may incur additional interest charges.

Solicitor’s fees

You will need to hire the services of a solicitor, and the fees for these can be very different depending on who you speak to. With a local company and a straightforward property purchase, you may find it’ll be around the mid hundreds.

When dealing with a solicitor, you will need to give them your property address. This will apply whether leasehold or freehold. In order to obtain a quotation, they’ll also need to know the purchase price.

The key points to cover when asking for a quote are:

  • Ensure the firm includes VAT
  • Is your Solicitor on your mortgage lenders panel?
  • Ensure the firm includes the cost of any “disbursements.” These are fees such as Land Registry Fees and Local Authority Search Fees.

Stamp duty

You may need to pay an extra tax on your home, which your solicitor will collect on the completion of your purchase of the property. Further details about who this applies to can be found here: https://www.gov.uk/stamp-duty-land-tax.

Mortgage broker fees

A trusted and experienced Mortgage Broker in Derby will typically charge their own service fee. The fee amount will vary depending on the case and the mortgage advisor.

Removal fees

The cost of removing your furniture from your home can vary depending on who you use and the service you are looking for. Hiring a van to do it yourself may be a cheaper option than hiring a removal service, though they will be more efficient.

Book a Free Mortgage Appointment

To learn more about your mortgage options or to get started on your mortgage process, book your free mortgage appointment with one of our mortgage advisors in Derby today. We have frequent appointment availability, at times that are convenient to you.

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.

A Guide to Remortgages in Derby: Top Reasons to Consider

Remortgage Advice feat Mortgage Advisor Wayne | MoneymanTV

Remortgage Advice in Derby

Your experience within the world of mortgages can be full of rewards. By the end of your process, one of the following options will apply to you;

  • You’ll have your dream home to settle down in and maybe one day start a family.
  • Perhaps you’ll have a property you can use to push you further up the property ladder in the future.
  • You’ll have an investment purchase that may provide some extra income.

Regardless of which of these was the desired route, eventually you will reach the end of your mortgage term and need to think about what comes next. At this point you will have a few different options;

  • You could sell your home and move into a bigger or smaller property.
  • You may wish to put your property portfolio up for sale and look for a different investment route.
  • The most common choice amongst our customers though is to take out a remortgage on their home.

What is a remortgage?

A remortgage is where you will utilise funds that have been borrowed from a new mortgage, to pay off your existing mortgage.

Those looking to remortgage in Derby will have a variety of different options to choose from, with both minor and much larger options available depending on the circumstances.

Remortgage for Better Interest Rates

Predominantly you’ll find that the initial mortgage deal you’re on will last for somewhere around 2-5 years, featuring lower fixed rates or even some rates that have been discounted.

Sometimes customers may even be placed onto a tracker mortgage which follows alongside the Bank of England’s base rate.

Most likely, the majority of customers will end up on their lenders Standard Variable Rate once their term has ended. This may be shortened to SVR online.

To give a brief summary, an SVR is a mortgage with an interest rate that is decided depending on what the lender wishes to charge, with the number subject to change.

This does not follow the Bank of England’s base rate like you would find on a tracker mortgage.

Because of how they work, Standard Variable Rates are typically the most expensive mortgage paths a customer can take, which is why many instead look at if they can remortgage for better rate.

In the long term this will hopefully save you some money on your mortgage repayments per calendar month.

Remortgage for Home Improvements

Remortgage for Home Improvements During Lockdown | MoneymanTV

A couple of years into your home residence, you may feel like you need something new, something more.

Perhaps you require an extra room or additional living space for your children or furniture, a remodelled kitchen, a new home office, or maybe even a loft conversion.

Rather than just moving into a larger house, a lot of homeowners release equity that exists in their home by taking out a remortgage once their term ends. Doing so can allow them to fund the costs of any home improvements they wish to see undertaken.

Project planning and managing these undertakings can be a little nerve-racking, especially when you also have to obtain planning permission to do any of these projects.

It’s worth noting though that many other homeowners would likely say that it’s a lot less stressful and more rewarding to modify the existing home you know and love, than go through the process of moving home.

At some point in the future, your plans could benefit you even more. This is because creating more space and having good quality craftsmanship has a good chance of increasing your properties value, something that is useful for if you ever do decide to sell up or rent out.

Remortgage for Changes to Your Term

We often find that the customers who contact us are also looking at their options to remortgage in Derby for a better mortgage term.

This can be achieved by reducing the length of the term they are on or switching to a more suitable and flexible mortgage product.

Reducing the length of your mortgage term means that you won’t be paying your mortgage back for as long as you otherwise would’ve, though it increases your monthly mortgage repayments.

The longer that your mortgage term lasts, the lower you’ll make your monthly repayments.

In some cases, customers may prefer to go for a more flexible mortgage term. Doing this may result in you having the option to overpay at a later date, which pays it off even quicker.

Flexible mortgages may also allow a homeowner to carry the same mortgage and rates over to another property, should it ever be necessary in the future.

The concept of a flexible mortgage sounds like it would be perfect for most customers, though they usually be taken out as a tracker mortgage, which as touched upon previously runs alongside the Bank of England base rate.

What this means is that your monthly mortgage payments could differ depending on the interest rate, making them a bit unreliable and inconsistent.

Equity Release

As property prices have risen since the 2007 market crash, most homeowners should have an amount of equity sitting in their property.

The amount of this can be worked out by looking at the difference between the remaining mortgage balance and the current property value.

As mentioned before, many homeowners will use a remortgage as a means to fund any home alterations they’re looking to make. There are still options out there beyond that though.

Some homeowners instead look to use it so that they can cover long-term care costs, provide a boost to their income, take a dream holiday, pay off an existing interest-only mortgage, or simply give them some extra cash to spend.

Every so often when customers get in touch, we’ll also find that some buy-to-let landlords in Derby will use equity release as a means of covering the deposit that they require to purchase further properties for their portfolio.

Remortgage to Consolidate Debt

Following on from the topic of equity release, it’s also important to talk about customers who use their equity to pay off any unsecured debts that they may have potentially accrued over time.

Though on the surface it may seem like a relatively simple concept, debt consolidation will not only take into account the amount of debt owed, but also the properties value and how your credit rating looks at that time.

The factors they look into may actually result in you being limited on how much you can borrow for a remortgage, depending on your personal and financial circumstances.

Further to this, if you are serious about using this to pay off your previous mortgage and your debts, you will need to borrow a greater amount than your outstanding mortgage. Chances are, this will increase your monthly mortgage payments.

None of this situation is particularly ideal, though at least you have the piece of mind that should you absolutely need the help, you have some options to choose from.

If credit rating is in quite a damaged state, there are still routes that you could take in order to find mortgage success. Please remember that these will not be easy and will require very specialist remortgage advice in Derby before you go ahead with them.

Even with a specialist mortgage advisor in Derby to help you out, there are no guarantees that obtaining a mortgage will be 100% possible.

Please always enquire with an experienced mortgage broker in Derby prior to consolidating and securing any debts against your main asset, that being your home.

Experienced Mortgage Advisors in Derby – Get in Touch

If you are a homeowner with a mortgage term that is reaching its end and are curious of what your options may be for remortgaging, we would absolutely suggest that you speak with an experienced and reputable mortgage broker in Derby like Derbymoneyman.

Your dedicated mortgage advisor in Derby will have a chat with you about your circumstances, creating a solid plan of action for the next step of your home owning journey.

We always our aim to ensure that the second journey through the mortgage process goes quicker and smoother than your first. Customer satisfaction is at the heart of what we do.

Armed Forces Help to Buy Scheme in Derby

Forces Help to Buy Mortgage Advice in Derby

If you happen to fall into the category of military personnel, Army Families Federation Defence Secretary Ben Wallace has great news for you. The existing Help to Buy scheme that was intended to assist military personnel in getting their foot onto the property ladder, has been extended.

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 extend this further, up until the end of 2022.

Who Can Apply For 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 advisor 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

Can I get a Mortgage with a CCJ? | MoneymanTV

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.

Buying a Property in Derby with a Friend or Partner?

Can I Get a Mortgage With a Friend or Partner? | MoneymanTV

The inflation of property prices has vastly outstripped the increases in standard wages over the years. Nowadays a home buyer may have to purchase a property with a friend or partner in order to be able to afford a property.

This all boils down to measuring affordability. With two parties to look at, lenders will be calculating two incomes rather than one, potentially increasing the maximum mortgage amount. Of course, the mortgage will be more affordable between two people as there will be someone to split the costs with.

How many people can jointly own a property?

In some cases you’ll find that there are mortgage lenders that will allow up to four people co-own a property together. Because there are multiple parties involved, this can cause some debate with changes in circumstances. For example, if one borrower decided to stop their contributions to the group mortgage payments, the lender will still chase the rest of your group for payment.

Further from that one, all the joint owners still hold a legal right to stay within their home unless a court rules otherwise, which means that the person withholding their contribution doesn’t have to leave as they’re still part owner of the property. It’s with this in mind that you need to be very selective about who you buy with.

If one of the parties wishes to increase the mortgage at some point in the future, then all borrowers need to provide their consent. It is best practice to plan ahead for down the line, just for in case someone ends up with a different plan in mind or some circumstances change.

Joint tenancy or tenancy in common?

It is common with couples who are married, in civil partnerships or simply cohabiting, to opt for joint tenancy on a mortgage. Tenants in common are often chosen by relatives or friends who are looking to buy a house together. You will need the consent of the other applicant if you are wanting to sell or remortgage the property in the future.

For a tenancy in common will still jointly own the property, but there is no legal requirement to do so in equal shares. This works out best if one party is earning significantly more per month than the other. In addition to this, you can act individually if you are a tenant in common. This means that you can freely sell or give away your share of the property to someone else, if you wish to remove yourself from that setting.

In these cases, if one of you were to unfortunately pass away, the property will be in possession of the other owner on the mortgage. It is recommended to take out life insurance to protect yourself for this down the line. If this were to happen, the mortgage would be repaid at that point.

What happens if one party stops making mortgage payments?

All mortgage borrowers are jointly and severally liable for the upkeep of the mortgage payments. If one of the party stops paying then all of the parties involved have to make up for the shortfall to prevent possible mortgage arrears.

It’s important to try and get on top of this as early as possible. The reason for this is because falling into arrears could possibly stop you from getting another mortgage further down the line. The best way to view your mortgage situation is to interpret it as you don’t own 50% of a property, you own 100% of it jointly.

Removing a Name From Your Mortgage

If things don’t particularly go how you’d intended them to, whether it be a disagreement with your co-owners or the breakdown of a marriage/relationship, you may look to either remove others from your mortgage, or remove yourself from their mortgage.

When this happens, it is worth speaking to a trusted specialist mortgage advisor in Derby to see what your options might be. For more information on divorce and mortgages, please see our article “divorce & separation mortgage advice.”

Specialist Mortgage Advice in Derby

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.

Should I overpay my mortgage in Derby?

Most lenders will allow you to make ‘over-payments’ on your mortgage. Overpaying on your mortgage will allow you to clear your mortgage debt quicker, saving money on interest payments.  The simple fact is, that if you can afford to overpay on your mortgage you can save thousands of pounds, you will clear your mortgage quicker and save on the overall interest paid.

All homeowners know that overpaying, even by relatively small amounts, can make a big difference to the number of interests paid back over the term. The sooner you begin overpaying, the better, as the extra payments have a greater period of time to have a greater effect.

Many homeowners cannot afford to make extra payments, but generally, the main reason is that life simply gets in the way. We know overpaying is the “right” thing to do, but let’s face it, there’s always something else you can be spending your money on, and plenty of those things are more exciting!

Put the plan into action

Part of the dilemma here is remembering to make those extra payments. It’s unlikely to cross your mind too often, except perhaps when your mortgage only has a few years left to run.

So, if you can see something of yourself in the above and would like to be making those extra payments so that, perhaps you can retire a year or two early, then what should you do?

Check first that your lender will allow overpayments, without any penalties or associated costs. Most will allow this but be sure to check first.

It’s highly recommended setting up a standing order payable to your lender each month. Set up the standing order to go out on the same day as your regular mortgage payment. E.g. your mortgage payment is, say £500pm and is collected on the 1st of the month. You can afford to pay an extra £75pm, so set up a standing order for £75pm to go out of your bank also on the 1st.

The reason for the above is that very quickly you will start to “feel” that your mortgage is £575pm and you will get used to that within a matter of months.

You’re still in control

The big advantage of setting up a standing order to a direct debit, is you (the payer) are completely in control, unlike a direct debit where this is the receiver. Therefore, if you find yourself a little tight with money one month. You can easily log in to your online banking and pause the standing order so that it would cancel any future payments from going out until reactivated.

Up until the point of stopping the payments, at least you have benefited from the additional payments made until that point, and as mentioned above, this does not stop you reactivating your standing order in the future when you are more financially comfortable.

Some mortgages will even let you make reduced payments or take a payment holiday if you have been overpaying for a while. Before choosing a payment break though it’s essential to check with your lender that you are eligible to do so to avoid a bad mark on your credit report.

Whether a First Time Buyer in Derby or going for a Remortgage in Derby, overpaying your mortgage is a great habit to get into. You will be reducing the amount of actual debt you owe each month.  You don’t need to overstretch yourself, simply making affordable additional payments each month could result in shaving a year or two off your mortgage in the long run. 

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.com & Derbymoneyman 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

The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
Should you have cause to complain and you are not satisfied with our response to your complaint, you may be able to refer it
to the Financial Ombudsman Service, which can be contacted as follows

The Financial Ombudsman Service, Exchange Tower, London, E14 9SR
www.financial-ombudsman.org.uk

© 2022 Derbymoneyman

Derbymoneyman – 19 St Christophers Way, Pride Park, Derby, DE24 8JY.

Moneyman Logo







Moneyman Logo




Moneyman Logo

Ask Your Question





    Moneyman Logo

    Moneyman Logo







    Moneyman Logo

    Book your Free Consultation

    7 Days 8am - 10pm

    Moneyman Logo

    Moneyman Logo