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Do First Time Buyers in Derby Pay Stamp Duty?

Please note that the information contained in this article is for general guidance purposes only and should not be considered as legal, financial, or tax advice.

All information regarding Stamp Duty is taken from the government website and is in-line with the September 2022 Mini-Budget. The laws and regulations related to Stamp Duty are subject to change, and the information in this article may not reflect the latest updates or changes in the law.

The amount payable for Stamp Duty will entirely depend on personal circumstances. Please speak with the solicitor acting on your behalf, who will be more appropriate to advise on this.

Information Source: MoneyHelper

Stamp Duty Land Tax (SDLT) represents a significant consideration for residential property owners in England and Northern Ireland. This tax encompasses various property types, including leasehold and freehold properties, whether purchased outright or with a mortgage.

For first time buyers in Derby, Stamp Duty exemptions apply to properties valued at £425,000 or less. Properties exceeding this threshold, up to £625,000, benefit from a waived Stamp Duty on the first £425,000, with a 5% rate applied to the remaining amount, up to £200,000.

However, properties exceeding £625,000 do not qualify for first time buyer relief in Derby and are subject to standard Stamp Duty rates. To be eligible for this relief, individuals must be acquiring their primary residence, with no prior property ownership in the UK or abroad.

As of the current regulations, in place until March 2025, Stamp Duty will revert to previous thresholds.

Why was Stamp Duty relief introduced for first time buyers in Derby?

Recognising the challenges faced by first time buyers in Derby, the government has introduced revisions to Stamp Duty regulations aimed at enhancing accessibility to the property market.

Acquiring the necessary funds for mortgage applications, deposits, and conveyancing fees can prove daunting, particularly for first time buyers.

Unlike existing property owners who may leverage accrued equity in their homes, first time buyers in Derby, often renters, may lack a similar financial cushion.

Are there any exceptions to the rule?

Exceptions to Stamp Duty relief apply to properties valued over £425,000, up to £625,000, where a percentage of the excess amount is subject to duty. Properties exceeding £625,000 are ineligible for first-time buyer relief.

Inherited properties or shared ownership arrangements, as well as joint purchases with non-qualifying individuals, do not qualify for first time buyer relief.

Additionally, first time buyer buy to let properties are subject to Stamp Duty, given their classification as investment rather than residential purchases.

Specific Stamp Duty amounts vary based on individual circumstances, warranting consultation with a solicitor for clarity.

How do I pay stamp duty?

Typically, your solicitor manages the Stamp Duty return and payment process on your behalf. However, you retain the option to handle it independently, ensuring timely submission of the return.

Even if Stamp Duty payment is not required, a return must still be submitted unless an exemption applies. It’s essential to note that Stamp Duty rates and regulations may differ based on the property’s location.

To grasp the tax rules applicable to your property purchase, consulting with a solicitor or conveyancer is advisable. This step ensures a smooth process devoid of unexpected complications.

Additional Costs for First Time Buyers in Derby: What Else to Consider?

Beyond Stamp Duty expenses, first time buyers in Derby considering a mortgage may wonder about associated costs. Chief among these is the deposit, typically requiring a minimum of 5%.

However, for individuals with poor credit history or seeking favourable rates, a deposit in the range of 10% to 15% may be advisable. Additionally, budgeting for solicitors’ or conveyancing fees is crucial.

Other potential fees, such as mortgage arrangement fees and valuation or survey fees, may also apply. Opting for a mortgage broker’s services may entail a fee, which varies case by case.

Furthermore, general expenses like removal fees, repairs, furnishing, and home insurance should be factored in. While some costs are optional or variable, consulting with a mortgage advisor provides clarity on anticipated expenses.

Is there any support available for first time buyers in Derby?

First time buyers in Derby have access to various assistance schemes, beyond Stamp Duty relief, aimed at facilitating homeownership.

Shared Ownership allows purchasing a share of a property while paying rent on the remainder. The Forces Help to Buy (FHTB) scheme supports service members in borrowing up to 50% of their salary, interest-free.

Council tenants may benefit from the Right to Buy mortgage scheme, offering the possibility of acquiring their property at a reduced price.

Additionally, the Lifetime ISA enables saving towards a deposit, with a government contribution of up to 25%. Exploring these schemes via government resources or consulting a trusted mortgage advisor can pave the way to homeownership for first time buyers in Derby.

Can I Get a Mortgage in Derby with Bad Credit?

Can I Get a Mortgage With Bad Credit? | MoneymanTV

Bad Credit Mortgage Advice in Derby

Dealing with unsecured credit issues demands careful navigation. At our firm, we often engage with clients seeking specialised mortgage advice in Derby, particularly those grappling with missed payments, a low credit score, CCJs, and defaults, among other challenges.

Even seemingly minor mishaps, such as missed payments on a mobile phone contract, can lead to defaults on your credit file, potentially complicating future mortgage applications by indicating a lack of financial reliability.

Fortunately, having missed payments or defaults doesn’t signify the end of the road. While securing a mortgage with bad credit in Derby may require specialised guidance, viable options do exist.

For instance, a significant deposit could bolster your prospects, demonstrating your commitment despite past credit setbacks.

Lenders specialised in bad credit mortgages will carefully scrutinise the timing and reasons behind any defaults, with applications further back in the past often viewed more favourably. Transparently explaining the circumstances contributing to the default may elicit a more sympathetic consideration from lenders.

Bad Credit Mortgage FAQs

Our comprehensive list of frequently asked questions and corresponding answers regarding bad credit mortgages in Derby serves as a valuable knowledge base.

Should your query or situation not be covered, don’t hesitate to reach out. Our seasoned mortgage advice team, adept at navigating complex scenarios, stands ready to explore tailored solutions.

What will my mortgage advisor in Derby need to see?

Regardless of past credit hurdles, your mortgage advisor in Derby will need an updated copy of your credit report.

This report, easily accessible online and often free of charge, plays a vital role before embarking on a mortgage application, particularly if there are uncertainties about your credit history. Multiple failed credit searches can adversely affect your credit score, potentially impeding your mortgage prospects.

I have a good income but bad credit. Can I still get a mortgage in Derby?

The impact of your credit score on mortgage eligibility varies based on individual circumstances, often leaving clients bewildered. While some may possess less-than-ideal credit scores, a sizable deposit and steady income could offer promise.

However, due to inherent risk, lenders may proceed cautiously, prioritising certainty in meeting mortgage obligations to avert the risk of repossession.

Despite hurdles, bad credit mortgages in Derby remain attainable, albeit typically accompanied by higher interest rates. The prudent approach is to schedule a consultation with an experienced mortgage broker in Derby.

I’ve had mortgage problems before. Will that stop me from getting a mortgage?

Financial hardships beyond one’s control may lead to difficulties in meeting mortgage commitments, potentially resulting in adverse credit entries.

Whether during remortgaging in Derby, first-time home purchases, or moving home in Derby, challenges arise from lenders’ risk assessments and trust in your ability to prevent recurrences.

As providers of transparent and expert mortgage advice in Derby, we’ve successfully helped clients with past mortgage ties and subsequent credit struggles. If you find yourself in a similar situation, consulting a prompt and supportive mortgage broker is important for future mortgage success.

What other types of adverse obstacles are customers facing?

Throughout the mortgage process, clients encounter various bad credit challenges, each presenting its unique obstacles. These may include missed mortgage payments, defaults on loans or credit cards, County Court Judgements (CCJs), or even bankruptcy.

While less than ideal, such circumstances needn’t signify the end of your homeownership aspirations. Specialist mortgage lenders may extend assistance, albeit with a more stringent process and potentially higher rates. Focusing on credit score improvement can enhance your prospects.

Get in Touch for Bad Credit Mortgage Advice in Derby

For expert advice on bad credit mortgages in Derby, book your free mortgage appointment online today.

Our seasoned mortgage advisors in Derby, boasting over 20 years of expertise, are committed to devising a clear strategy for addressing your credit challenges ahead of the mortgage journey. Our ultimate aim is to guide you towards securing your dream home.

Do Gambling Transactions Look Bad on My Bank Statements?

Why does the lender need my bank statements? 

Regardless of whether you’re a first time buyer in Derby, a home mover in Derby, or considering remortgaging in Derby, your mortgage lender will inevitably request copies of your bank statements along with other evidence to assess your mortgage affordability.

Bank statements serve as a window into your financial habits, allowing lenders to gauge your reliability and financial management skills. Therefore, it’s crucial to carefully consider your financial decisions in the months leading up to your mortgage application.

Particularly noteworthy to lenders are large gambling transactions. While gambling itself is not illegal, frequent and substantial gambling activities may raise concerns for lenders during the mortgage application process.

What has it got to do with the lender whether l gamble or not?

While lenders cannot dictate how you lead your life, they are obligated to lend responsibly. Excessive gambling transactions could potentially jeopardise your mortgage application as lenders assess your financial responsibility.

Lenders need assurance that they are extending credit to individuals capable of managing their finances prudently. Therefore, they scrutinise bank statements to ensure responsible financial conduct.

Will gambling affect my chances of getting a mortgage?  

Occasional gambling transactions may not necessarily hinder your mortgage prospects. However, lenders will assess the frequency and size of these transactions, as well as their impact on your overall financial stability.

Consistently dipping into overdrafts or borrowing money for gambling activities may raise red flags for lenders, indicating potential financial irresponsibility.

What will lenders be looking for on my bank statements? 

Beyond gambling transactions, lenders examine various aspects of your bank statements, including loan repayments, overdraft usage, credit card activities, and recurring payments. These factors collectively contribute to lenders’ evaluation of your financial suitability for a mortgage.

While occasional overdraft usage may not significantly impact your application, chronic reliance on overdrafts and financial struggles may negatively affect your mortgage prospects.

What can I do to show the lender I am reliable? 

Demonstrating reliability and financial prudence is paramount to lenders. Planning ahead and presenting a responsible financial image can enhance your chances of mortgage approval.

During the months preceding your mortgage application, ensure responsible financial management, including prudent spending habits and timely bill payments. Taking proactive steps, such as temporarily refraining from gambling or setting betting limits, can further strengthen your mortgage application.

Get in Touch with a Mortgage Broker in Derby

As your mortgage broker in Derby, our role is to guide you through every stage of the mortgage process, offering support and expertise.

From reviewing your evidential documents to providing ongoing assistance, our mortgage advisors in Derby are committed to helping you navigate the mortgage journey seamlessly. With flexible availability 7 days a week, we’re here to help you at every step of the way.

What Are The 7 Best Places to Live in Derby?

When it comes to choosing a place to live in a new city like Derby, it’s a significant decision that can greatly influence your day-to-day life. Derby boasts a range of neighbourhoods, each with its own unique charm and attractions.

In this guide, we will take a closer look at some of the best places to live in Derby, highlighting the distinct features that make each area special. Whether you’re captivated by historical allure, scenic landscapes, or modern amenities, Derby has something to offer for everyone.

Join us as we explore the diverse and welcoming communities that contribute to making Derby an exceptional city to call home.

1. Mickleover

Nestled in the heart of Derby, Mickleover stands out as an inviting and well-rounded neighbourhood, making it an excellent choice for those seeking a balanced and comfortable lifestyle.

One of Mickleover’s key attractions lies in its family-friendly atmosphere, with top-rated schools and recreational spaces, providing an ideal environment for those with children.

The neighbourhood seamlessly blends modern amenities with a touch of tranquillity, offering a range of shopping facilities, local parks, and community events. With convenient access to major transport routes, commuting to Derby city centre and beyond is a breeze.

Mickleover also boasts a vibrant local community, fostering a sense of belonging through its diverse range of shops, cafes, and social spaces.

Whether you’re drawn to its peaceful residential streets, green surroundings, or the warmth of its community spirit, Mickleover stands as a welcoming destination for those looking to make Derby their home.

2. Duffield

Duffield, a charming suburb of Derby, beckons with its unique blend of historical charm and modern conveniences. Situated along the banks of the River Derwent, this picturesque village offers a serene escape while maintaining close proximity to Derby city centre.

One of the key attractions of Duffield is its stunning natural surroundings, providing residents with scenic walks and a sense of peaceful repose. The village boasts an array of independent shops, quaint cafes, and local pubs, creating a delightful atmosphere for both residents and visitors.

Duffield’s strong sense of community is evident in its regular events and festivals, fostering connections among its residents. Additionally, the village is well-connected with good transport links, making it easy to explore the wider Derbyshire area.

Whether you’re drawn to its historic architecture, riverside ambiance, or the friendly community vibe, Duffield stands as an appealing choice for those seeking a well-rounded and charming place to call home in Derby.

3. Darley Abbey

Nestled along the banks of the River Derwent, Darley Abbey presents itself as a captivating and historic locale, offering residents a unique blend of character and convenience. With its roots tracing back to the 18th century, Darley Abbey boasts picturesque landscapes and a wealth of architectural heritage.

The village exudes a timeless charm, with its cobbled streets, period houses, and the iconic Darley Abbey Mills, adding a touch of historical grandeur. Residents of Darley Abbey enjoy the tranquillity of riverside living, complemented by scenic walks along the riverbank and through the adjacent Darley Park.

Beyond its historic allure, the village provides modern amenities, including local shops, charming cafes, and a strong community spirit.

The sense of history, combined with the peaceful ambience and convenient access to Derby city centre, makes Darley Abbey an enchanting choice for those seeking a distinctive and well-connected place to call home in Derby.

4. Allestree

Allestree, a thriving suburb of Derby, offers a dynamic blend of suburban comfort and natural beauty. Nestled on the northern outskirts of the city, Allestree appeals to those seeking a peaceful retreat without sacrificing proximity to urban amenities.

The area is renowned for its expansive Allestree Park, providing residents with acres of green space, scenic lakes, and walking trails—an ideal haven for outdoor enthusiasts and families alike.

Allestree’s residential streets are lined with a mix of traditional and modern homes, creating a diverse and welcoming neighbourhood. The local shopping precinct, Allestree Park Farm, adds a touch of convenience with its range of shops and services.

Commuting to Derby city centre is straightforward, thanks to good transport links, making Allestree an attractive choice for those desiring a balanced and well-connected lifestyle in Derby.

5. Belper

Nestled along the River Derwent, Belper stands as a characterful town with a rich industrial heritage and a vibrant contemporary appeal. Known for its historic mills, Belper offers a unique blend of picturesque surroundings and a thriving community atmosphere.

The town’s charming streets are adorned with a mix of period architecture and modern residences, providing a diverse range of housing options. Residents of Belper enjoy a bustling town centre with independent shops, cafes, and cultural venues, contributing to a lively and welcoming environment.

The River Gardens, situated alongside the river, provide a tranquil retreat for leisurely strolls. Belper’s strong community spirit is evident in its regular events and festivals, fostering connections among its residents.

With its historical charm, natural beauty, and a range of amenities, Belper stands as an appealing choice for those seeking a distinctive and vibrant place to call home in Derbyshire.

6. Ashbourne

Set amidst the scenic Derbyshire Dales, Ashbourne is a charming market town that effortlessly combines historic charm with modern amenities. Renowned for its stunning Georgian architecture and cobbled streets, Ashbourne exudes a timeless elegance.

The town’s market square is a focal point, hosting vibrant markets and events, adding a touch of community vibrancy. Surrounded by green landscapes and with proximity to the Peak District National Park, Ashbourne is an ideal location for nature enthusiasts and those seeking an active lifestyle.

The town’s diverse range of independent shops, cafes, and restaurants contribute to its welcoming atmosphere. Ashbourne’s strong sense of community is showcased through local events, creating a close-knit and friendly environment.

With its rich history, scenic surroundings, and a bustling town centre, Ashbourne stands as a delightful choice for those looking to embrace a blend of heritage and contemporary living in Derbyshire.

7. Oakwood

Situated on the eastern fringes of Derby, Oakwood emerges as a well-established residential area that seamlessly blends modern living with a sense of community.

Characterised by a mix of contemporary housing and tree-lined streets, Oakwood provides residents with a peaceful suburban retreat while maintaining convenient access to Derby city centre.

The area boasts well-regarded schools, making it an appealing choice for families seeking quality education for their children. Oakwood’s local amenities include a range of shops, parks, and recreational spaces, contributing to a comfortable and family-friendly atmosphere.

With its strong community spirit, evidenced through local events and gatherings, Oakwood fosters a sense of belonging among its residents.

Easy access to major transport routes ensures a smooth commute, making Oakwood an attractive destination for those desiring a suburban haven with urban connectivity in Derby.

Book Your Free Mortgage Appointment

Embarking on the journey of buying your first home in Derby or considering a move within the city? Having a reliable mortgage advisor in Derby is important to navigate the complexities of the property market.

We’re here to make the process straightforward, whether you’re a first time buyer in Derby or looking at moving home in Derby.

Our focus is on securing favourable mortgage rates and guiding you through the process of porting your mortgage, if that is something you need to do as an existing homeowner, ensuring a smooth transition to your new Derby home.

Trust us to simplify your journey, offering personalised advice and comprehensive support. Let us be your partners in making your dream of homeownership in Derby a reality, without the hassle.

What You Need To Know About Gazumping in Derby

As a First Time Buyer in Derby, you may have little to no knowledge about gazumping. In the circumstance where you have purchased a property, carried out all the research, had a verbal offer accepted by the agent and even worked on the mortgage arrangements. You are ready to begin a fresh start in your dream home.

Then all of a sudden, the seller contacts you to say they have accepted a higher offer from another buyer meaning you are out of the deal. This is known as gazumping, which we will be talking about in this article today.

What is Gazumping | MoneymanTV

Legality of Gazumping

Despite this action being seen as immoral, gazumping is legal in England and Wales. As soon as the signed contracts have been exchanged, this is when it becomes a legally binding contract. Therefore, anything that happens prior including verbal agreements is absolutely fine and legal to do.

It can take several weeks for a verbal agreement between the buyer and seller of the property and the actual signed agreement. This is because there can be many hold-ups for things like a property survey and a conveyance running the required searches and receiving a mortgage offer. Within this time frame, the seller can accept another buyer’s offer. This can be common for properties with a lot of interest like the mortgage application.

In some cases, the seller could choose someone else’s offer. This could be because they are keen to sell the property quickly so may choose another offer because of delays on the ‘purchasing; side like the mortgage application.

Avoid Being Gazumped When Buying a New Home

Obviously, there is no straightforward method to not being gazumped, however, being prepared and following the best steps will reduce your chance of being gazumped.

Even though you won’t be able to arrange everything beforehand, you can make arrangements for surveys by looking for a surveyor in advance and other related factors that go towards the purchase. You can complete these steps swiftly and look to complete the purchase as quickly as possible.

Obtain a ‘Mortgage Agreement in Principle‘. This is a conditional offer to get a mortgage if particular conditions are met and should be done prior to looking for properties. By doing this, you can quicken the mortgage process at a later stage. Furthermore, finding a conveyancing solicitor ahead of time to work.

It could be possible to ask the seller to take the property off the market as part of the offer. The seller taking the property off the market before any legal documents are not required, it is helpful and is something a lot of sellers will do especially if the housing market is ‘flat’. It’s also key to keep the seller up to date in terms of your progress regarding the house purchase, searches, and mortgage arrangements. This is a brilliant way to build a relationship with the seller which can provide them with a confidence boost in the sale process.

There is the option to organise a preliminary (also known as lock-in, lock-out or exclusivity) agreement from the seller. From this, the seller is then obliged to not get involved in negotiations for the same property for a particular time period while you work on a mortgage additional property buying requirements.

Insurance for ‘Gazumping’

Something you may want to keep in mind is the fact that there are some insurance policies in place to cover any losses if gazumping takes place. If the sale falls through because the seller has decided to accept an offer from another person, you will be able to claim back any expenditure like conveyancing fees, survey fees and any other costs you have needed to payout. This is usually around £50 and is valid for 120 days.

Should I Overpay My Mortgage in Derby?

The majority of lenders will allow borrowers to make ‘over-payments’ on their mortgages. If you do decide on overpaying your mortgage, you do have the chance to clear your mortgage debt quicker which can save money on interest payments. Affording to overpay on your mortgage will mean you save thousands of pounds which in turn clears your mortgage quicker and save on the overall interest paid.

It’s a very well-known fact that if homeowners overpay even by relatively small amounts this can make a big difference to the number of interests paid back over the term. In short, the sooner you start overpaying, the better, as the additional payments over a long period of time have a greater effect.

Some homeowners find they are unable to make extra payments. Usually, this is because of the obstacles that may occur in a homeowner’s life that can affect their finances. Overpaying can be a good thing to do, however, it’s likely that you would rather spend that additional cash on more exciting things.

Put the plan into action

It’s all about remembering to make those additional payments. This option is not one that will pop into your mind on a daily basis, except perhaps when your mortgage only has a few years left to run.

If this seems like an option you want to pursue and would want to make those extra payments to maybe be able to retire a year or two early, you might be wondering how to go about it.

Firstly. you need to see whether your lender will agree to overpayments, without any penalties or associated costs. Many will allow this, however, it’s good to check first.

As a Mortgage Broker in Derby, we do strongly recommend that you create a standing order payable to your lender each month. This can be set up so the standing order can go out the same day as your regular mortgage payments. For example, your mortgage might be £500pm and is collected on the 1st of the month. You found you are able to pay an extra £75pm, so you decide to set up a standing order for £75pm to gout of your bank on the 1st along with your standard mortgage payment.

By setting up both payments to go out on the same can allow you to get into the routine of thinking your mortgage is £575pm instead of two separate payments.

You’re still in control

One advantage of setting up a standing order to a direct debit is that the payer (in this case, you) has full control, unlike a direct debit where this is the receiver. If you find yourself a little tight with money one month, you can simply log in to your online banking and pause the standing order so that it would cancel any future payments from going out until reactivated.

At the point of stopping the payments, it’s good to keep in mind the fact you have benefitted from the additional payments up until that point. As mentioned, this does not mean you cannot reactive your standing order in the future when you are more financially stable.

Depending on the mortgage, you may be able to make reduced payments or take a payment holiday if you have been overpaying for a while. If you do decide to take a payment break it’s important that you check with your lender to see if you are eligible to do this to avoid a bad mark on your credit report.

Regardless of whether you are a First Time Buyer in Derby or looking to Remortgage in Derby, overpaying your mortgage is a good habit to get into. It will result in reducing the amount of actual debt you owe each month. One of the benefits is that you don’t need to overstretch yourself, just make adorable extra payments each month that could result in reducing a year or two off your mortgage in the future.

Buying a Property in Derby with a Friend or Partner?

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

Over the years, there has been massive inflation in property prices which has outstripped the cost of living. Sometimes, this results in a home buyer purchasing a property with a friend or partner in Derby so they can be able to afford a property.

It’s all about measuring affordability. Because there are two parties, lenders will be looking at two incomes rather than one which in turn could increase the maximum mortgage amount. By contrast, the mortgage will be more affordable for two people rather than one because there will be someone to split the costs with.

How many people can jointly own a property?

You may find that some mortgage lenders will allow up to four people to co-own property together. With multiple parties involved, this can result in some debate with changes in circumstances. A situation of this could be that one borrower stops their contributions to the group mortgage which would result in the lender chasing the rest of the group for payment.

All joint owners still hold a legal right to stay within their home unless a court rules otherwise. This means that the individual who is withholding their contribution doesn’t have to leave because they are still part-owner of the property. The point that has been mentioned are just some of the reason why it’s important to be careful about who you buy with.

In the case where one of the parties is interested in increasing the mortgage further down the line, it’s important that all borrowers agree to this. Planning ahead for down the line is wise and can cover you in case there is a change in circumstances.

Joint tenancy or tenancy in common?

A joint tenancy on a mortgage is a popular option amongst couples who are married, in civil partnerships or simply cohabiting. When it comes to tenants in common, these are usually beneficial for relatives or friends who are looking to buy a house together. For those looking to sell or remortgage the property in the future, you will need the consent of the other applicant.

Even though a tenancy in common involves you jointly owning the property, it doesn’t mean you have to when doing it equally in shares. As well as this, a tenant in common does mean you can act individually. Furthermore, acting individually means you sell or give away your share of the property freely if you decide to move away from the situation.

In the unfortunate event that one of you passes away, the property will be in possession of the other owner on the mortgage. This is where life insurance in Derby can serve as a benefit as the mortgage would be repaid at that point. Here at Derbymoneyman, we can help explore your life insurance option and find you a product that is perfect for your situation.

What happens if one party stops making mortgage payments?

When it comes to the upkeep of the mortgage payments, all mortgage borrowers are jointly and severally liable. In the case where one of the parties stops paying then all of the parties involved are required to make up for the shortfall to prevent possible mortgage arrears.

This is why it’s important to try to keep up with this as early as possible. Falling into areas could affect you negatively when it comes to getting another mortgage in the future. A good way to look at your mortgage situation is to see it as you don’t own 50% of a property, you own 100% of it jointly.

Removing a Name From Your Mortgage

In the case where things don’t go the way you intended them to, like a disagreement with your co-owners, or a separation of a marriage/relationship, this could result in you removing others from your mortgage, or removing yourself from their mortgage.

If you are in this situation, it can be helpful to speak to an expert specialist Mortgage Advisor in Derby who can explore your option for you. For further information regarding divorce and mortgage, take a look at our “divorce & separation mortgage advice” article.

Specialist Mortgage Advice in Derby

Problems & Hurdles Obtaining a Mortgage in Derby

Specialist Mortgage Advice in Derby

When you are going through the mortgage journey, you may find that you encounter some obstacles along the way. In some cases, this can get complicated!

Through our experience as a Mortage Broker in Derby, we have dealt with a range of mortgage hurdles. With over 20 years in the industry under our belt, we have encountered many complex situations both common and unique and can provide you with the solutions. In the rare case that we are confronted with a situation, we haven’t seen before, our team will work hard in overcoming it and provide support through the process. These hurdles may not be familiar to you, in particular as a First Time Buyer in Derby, we hope that we can help!

Common mortgage hurdles

Child Care Costs

Having your mortgage application turned away because of having children is unusual, but not having children can increase your chance of an offer acceptance.

From a lenders point of view, they want to make sure an applicant can manage all of your mortgage payments along with current expenditures. With this in mind, childcare costs are classed as expenditures each month. They have to take these costs into account as these costs can run into the hundreds per month. It is known for childcare costs to go down, they always increase! It’s always seen as a financial commitment and is treated the same way as a car loan or hire purchase agent.

Regardless of if you don’t have to pay nursery fees to pay, having children could mean you are offered less than other buyers who don’t have children. The one positive of this is that families can often be in receipt of tax credits and many lenders will take these into account and child benefit.

Mortgages following Divorce/Separation

It’s unfortunate when divorce or separation occurs, however, if you decide to end things with your partner, financially related issues can happen. In particular, mortgages.

It can be challenging for lenders to accept your application when you are financially linked to someone else. This is because they would prefer that applicants not to have two different sets of mortgage payments to meet each month, it could be difficult to manage.

In this situation, many people have approached us looking for Specialist Mortgage Advice in Derby and have sometimes asked these questions:

  1. How can I remove my ex’s name from my mortgage?
  2. How do I remove my name from my ex’s mortgage?
  3. Can I have two mortgages?

We find that mortgage hurdles like these can get difficult, very quickly. Most of the time, there is a way around these scenarios, it’s just knowing how. Having a Mortgage Broker in Derby by your side, like Derbymoneyman, can help relieve any stress you may have during these difficult times.

Benefit income

When it comes to benefit income, lenders have varying opinions on this, including the assessing aspect of it. The good news is that benefit income like a child tax credit, working tax credit, disability benefit and pension can all be included one way or another.

Please don’t hesitate to get in contact with us if you want additional information regarding mortgages and benefit income. Here at Derbymoneyman, our team will look at your situation and find you a lender that will consider your benefit income.

Starting a New Job – Can I get a Mortgage?

When you get a new job, normally you will be getting a larger salary which in turn can be used towards something like a new mortgage. Because of this, you may assume that you are more likely to get a mortgage but, this is not always the case.

At the beginning of your new job, you will normally have a probationary period. These are normally fine but there is still some uncertainty there. Therefore, lenders may only accept you when you have job security, this all depends on the lender and the mortgage costs.

In order for the lender to know your work patterns, they will look into your employment history. This is so lenders can see if you are the type to dip in and out of work. Having gaps in employment can have a negative effect on your application.

Some lenders will work from a newly signed employment contract even in month one or if you are about to start your new job.

Evidencing Your Deposit

With any purchase, all mortgage lenders and mortgage broker are legally required to evidence the source of the borrowers’ deposit funds. Evidence of the deposit may be required from your estate agent and your solicitor.

As an expert Mortgage Broker in Derby, we feel this is the most challenging part of applying for a mortgage and could cause issues if not done correctly. You are required to have the part audit trail for the funds if your deposit was from savings, premium bonds, the sale of another property, gifted from a family member or friend, from family overseas or from a personal loan.

The Pros & Cons Of Using A Mortgage Broker in Derby

It can be a daunting experience taking that first step into the mortgage world, or starting the mortgage process for the second or third time around.

With many options for homeowners and homebuyers to take for themselves, it is best to get it right the first time, especially with a lot of money involved.

Whatever your mortgage goals and situation is, the tailored and friendly service we provide as a Mortgage Broker in Derby will help you through your mortgage journey, especially for first time buyers in Derby.

As much as we know and are confident in our ability to help our customers through the mortgage process, we understand the process can be complicated and may wonder how obtaining Mortgage Advice in Derby can help with this.

In this article, we have collated an overview of why approaching a Mortgage Broker in Derby may help you in some cases, and why many people prefer to go direct to the mortgage lender instead.

What are the pros & cons of using a Mortgage Broker in Derby?


Many believe that you are more likely to save money by doing direct and finding your own mortgage deal. This isn’t entirely the case, as a Mortgage Broker in Derby may charge a fee, however, this does base on circumstances.

It might be easier and more cost-effective if you have a lot of knowledge and have a straightforward case, however, it can be more complex depending on your situation so approaching a Mortgage Broker would be beneficial.

It can be risky choosing this option as not having a lot of knowledge could result in your ending up on the wrong deal or being unsuccessful on your mortgage deal. Either of these circumstances could end up you spending more money than you have to or harming your credit score which can impact your chances of applying for a mortgage in the future.

With a dedicated Mortgage Advisor by your side, they will be able to help you through the journey towards achieving your mortgage goals. Their aim is to get their recommendation right the first time, at the best possible price. As much as this will come with a service fee, it could mean you are saving a lot more money in the long run.

Local Bank Branch Relationship

Loyalty can be one of the reasons why many customers decide to approach the bank directly, and how the mortgage process was previously run. This was the way to go before the rise of technology and online banking in which loyal customer would approach their local branch on a daily basis, usually speaking with the same person.

In terms of the mortgage process, you would get help and guidance from the bank manager themselves, who is an expert and has a thorough knowledge of your finances so would be the best person to approve a mortgage for you. Now, the process is a lot different with the credit scoring being digital.

Because of this, the bank manager won’t physically go through the case themselves, it will go through a complex online system in order to see whether or not you are eligible for a mortgage. Everything is fair regardless of which bank you are with.

Exclusive Mortgage Products

Many do believe that by going direct, you are open to better, exclusive deals. Again, this is true to an extent, however, it’s it can be limited. This is because they are only offering the best deals from their company.

Not all mortgage lenders are banks and there are many more mortgage options available to choose from. Therefore, the deal that the bank feels is suitable for you, might not be the best deal beyond the bank that you could’ve gone with.

Getting expert Mortgage Advice in Derby can be the best way to get a competitive deal that is suitable for you. One of our expert Mortgage Advisors in Derby will be able to go through your case and find you the best deal from our large panel of lenders. This is another advantage of approaching a mortgage broker instead of just a bank.

Following on from the topic of deals, you may find approaching a Mortgage Broker in Derby can provide you with exclusive deals that you can’t find anywhere else. There will be a large range of options when you with a mortgage broker regardless of if you are a first time buyer, looking to remortgage or are moving home in Derby.

Changes to Regulation & Consumer Protection

In the wake of the 2007-08 credit crunch, a massive improvement in the mortgage market needed to happen. One of these changes was stated in the 2014 Mortgage Market Review, which instructed lenders to no longer sell mortgages to their customers without extensive, expert advice.

Because of this, people could not just approach a bank to tell them they wanted a mortgage and be instantly granted with no checks. Not every staff member in the bank could grant you a mortgage which was something that happened regularly regardless of if they were qualified to do so or not.

As well as this, these changes also bought about consumer protection, which a bank wouldn’t have given you. Now, you are able to place a complaint with the Financial Ombudsman in the event you feel misadvised. Another way to make a claim is through the Financial Services Compensation Scheme.

Having this in place means reassuring a customer that they will be safe and advised accordingly regardless of what mortgage journey they take. This applies to both mortgage brokers and mortgage lenders.

Book an Appointment with a Mortgage Advisor in Derby

Another drawback you get approaching a bank instead of a mortgage broker is the timing. If you approach a bank, it can take months to try and talk with someone at a bank. Furthermore, when you do begin the process, you’re not updated as much through the mortgage journey.

Here at Derbymoneyman, our responsive team will get in touch with you at a time that is best for you and your day to day life. From early until late, 7 days a week, including weekends, our Mortgage Advisors in Derby will be available to answer any of your questions and keep you updated. You might find us being contactable on some bank holidays.

In some cases, you may find yourself attending your appointment on the same day, however, this doesn’t have to be the case. You can speak to someone any time that you are ready and available.

We understand every customer’s lifestyle is different. This is why our advisors have availability throughout the day which means you can book an appointment out of your 9-5 or even on a weekend! Booking is simple with our online booking system where you can find an available slot to speak on an advisor.

Responsiveness is a core value within our company. Regardless of if you are at the very start of the process or towards mortgage completion, our friendly team will always keep you up to date. In the event that any changes arise, your advisor will contact you as soon as possible.

Providing this high-quality service is why many Mortgage Broker in Derby, like us, are favoured in the public eye. With this popularity, many people favour approaching local experts instead of national banks.

Handling of Complex Scenarios

Through our extensive experience in the industry, we have found some cases are more tricky than others. Below are just some scenarios that are a bit more difficult than the usual case:

Previously, mortgage lenders could easily compete with one another by providing deals that were better than the other. Now, the main change in which deal you go with is if you match the criteria or not.

You might find a cheaper deal but it may not match your criteria. In order to see if you are able to have a mortgage, the mortgage lender either carries out a hard search (resulting in a footprint on your credit file).

In the circumstance where you apply for the mortgage with a lender and are declining an agreement in principle, this could harm your credit file. The most frustrating about it all is that it’s very unlikely you will be given a reason as to why you were declined.

A Mortgage Broker in Derby will be able to go through your case and advise you on ways to increase your chances of being accepted.

With access to a large panel of lenders, they will be able to find you a suitable deal that perfectly matches you up with its criteria and then begins to get an agreement in principle sorted for you. If you obtain an agreement in principle through Derbymoneyman, this will usually be sorted for you within 24 hours of your free mortgage appointment.

Remember, this doesn’t automatically mean you are agreed or guaranteed a mortgage at the end. It does, however, make your credit file much safer by having an expert go through it beforehand. Our team of Mortgage Advisors in Derby will always aim at getting our recommendation right the first time.

In Conclusion; Should I use a Mortgage Broker in Derby?

At the end of the day, it’s entirely up to you! There are advantages and disadvantages of approaching a Mortgage Broker in Derby. On the hand, there are lots of pros and cons to going direct as well. The difference is how quickly you want your service to be, as well as how secure you want to be.

As a dedicated Mortage Broker in Derby, we have extensive experience in dealing with a wide range of customers who go through the mortgage journey. Whether you are a first time buyer in Derby taking that first step into the mortgage world, coming towards the end of their fixed period, or looking to remortgage in Derby, our team are more than happy to help!

Book yourself in for a free mortgage appointment or remortgage review to speak with an expert, FCA regulated Mortgage Advisor in Derby. Our team are here to help with your mortgage goals, with availability that suits you, subject to eligibility.

For more information about our service, check out our brilliant customer reviews. These show the high level of service we give to our happy customers, on a daily basis. We also have a YouTube channel MoneymanTV if you are looking for additional insight into the mortgage world.

Sole Name Mortgage Advice for Married Applicants

There are many reasons why an individual would apply for a mortgage as a sole name mortgage while married. In some cases, a sole name mortgage might be more appropriate than a joint for a number of the reasons below:

-One applicant has a low income. 
-One applicant is not working.  
-Your partner has poor credit. 
-Your partner already has a residential mortgage.  
-You are using a deposit from your servings. 
-You want to retain certain stamp duty benefits. 

Above are just a selection of reasons to take out a sole mortgage when you are married. Whatever situation you are in, it’s important to prepare your application to improve your odds of approval. Our Mortgage Advisors in Derby are here to provide a helping hand through the mortgage journey. 

Applying for a sole mortgage when you’re married

If you want to apply for a mortgage as a sole applicant, it’s key to have a strategic approach. The aim is to get you the best deal that is perfect for your circumstances.
When you get in touch with Derbymoneyman, our Mortgage Advisors in Derby will need to know why you are wanting to get a mortgage in one name. This is so they can look into other potential opportunities, for example, you may not want to apply for a joint mortgage because your partner has bad credit. However, you may find that there is a chance you can get a joint mortgage even if one applicant has bad credit.

For applicants who are looking to purchase in their sole name due to personal reasons, this might be something lenders will allow. It can be common for lenders to not be comfortable with this arrangement because you are purchasing a marital home for you and your partner. Being permanent residents, lenders do like for both partners to be on the mortgage. This is to prevent any potential conflicts in the future about who can and can not live in the property.

Looking for a mortgage while a divorce goes through

Divorce & Separation Mortgage Advice | MoneymanTV

In the unfortunate case where you decide separate from your partner or are going through a divorce, this is where getting a mortgage in one name could be utilised. You may have the option to buy your partner’s share of the property from them meaning you would remove them fully from the mortgage.

If you are in this situation, there are a number of mortgage options to choose from. This is because there are many scenarios when you are going through a divorce or separation. These include you moving out and buying a new home or you might decide to stay put in the current property and buy your partner out. Either way, both would mean you would need to obtain a new mortgage.

As long as both parties are cordial when going through a divorce or separation, the process can be pretty straightforward. A relationship that is causing conflicts can make things challenging. With a large variety of options and variables available, our Mortgage Advisors in Derby can provide you with a more tailored answer about your situation.

You may find that lender will require some evidence of separation so it’s key you have all your paperwork prepared prior to applying with a lender. Our team can look over this before the application stage.

Mortgage advisors for married applicants

If you are married but want to get a mortgage in one name, it can be important to obtain suitable advice prior to applying for a mortgage.

As a married individual applying for a mortgage as a sole applicant will require to obtain specialist Mortgage Advice in Derby. Get in touch with our team today. & 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

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