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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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!
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.
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:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
As a First Time Buyer in Derby, stepping into the mortgage world can be an exciting experience that may come with its stresses. The good news is that it doesn’t have to be that way. Through our experience as a Mortgage Broker in Derby, we have helped many people with their mortgage journey, below is the questions we commonly get asked:
There comes a big financial commitment when you are looking to buy a property. Because of this, it’s best that you have a good think about whether or not you want to commit to buy a property.
When it comes to buying your dream home, you will only have a set amount of time to decide because of the growing interest that would potentially be in the property. Asking how many people have viewed the property you are thinking about purchasing is a wise thing to do to give you an idea of the amount of ‘thinking’ time you have.
When you are on the mortgage journey, you may find yourself in a property chain. This is where a group of sellers and buyers are linked in the buying and selling process. Certain aspects of this chain could significantly impact your mortgage process.
In the circumstance where there is no onward chain, it could make the moving process smoother. This is also the case if you aren’t a part of a chain yourself. If you don’t need to sell your property first, this could make the process quicker. This is because you will not be holding up the home buying process.
If this is the situation you are in, this can be used to your advantage and is good to mention in the negotiation process.
It can be common for previous homeowners to leave items behind as a way to save costs, which could definitely benefit you. The items they may leave include things like a washing machine, fridge, freezer and in some cases, a shed if the property has a garden.
As long as the appliance work, it can be helpful to new buyers as it saves them some cash until they get something new and modern. If you decide you don’t want the items left, it is your responsibility to dispose of the items.
With new properties, you may have the choice to purchase additional items that are brand new and ready for you on your moving day.
Neighbours can be an important factor when considering to buy a property, as for some, good or bad neighbours can really effect your home living experience. If you are moving into an area that you don’t know much about and haven’t lived in before, having friendly neighbours can help with the unfamiliarity of the area.
When it comes to moving into a new home, it can be a risk initially as you won’t have any idea of what your neighbour will be like. As much as first impressions aren’t a massive factors, it can be nice to have a good connection with them as you may find yourself living in the property for a while.
Depending on the property you buy in Derby, the running costs can differ. With this in mind, it can be best to do some research and ask the right questions. It’s good to research into topics like council tax costs or average spend on utilities which the seller will know. This can also help when you are looking at budget for each property.
Having a south-facing garden could be important to you and affect your decision process. It can be essential for people who like to relax in the garden on a late summer’s evening as well as read in natural light. It’s common for some locations to require a premium price from the buyer in order to have a south-facing garden because it’s where the sun shines for the majority of the day.
The amount of work the property will need can make a big impact on your budget. Below is some points to consider:
Negotiating a property price can be a poignant part of the home-buying process. This means that it is important to be prepared as possible to make an offer on a property that you like. Furthermore, it can be helpful to brush up on your negotiating skills and be one step ahead.
If you are wondering how low in price the seller would want to go, it’s good to chat with the seller or estate agent. You could ask them if any other offers have been made and rejected before your bid.
The first thing you need to do is set out what date you will be moving, then you can start planning the rest. Other jobs you will need to sort out is tasks like instructing a conveyancing solicitor, packing your belongings, and sorting out a removal van to transport your belongings to the new property.
Lenders vary in the way they work by using different ways of deciding who gets accepted for a mortgage and who unfortunately doesn’t. Because of this, some lenders are stricter than others. Therefore, the goal is to match you up against a particular lender’s criteria and how good your credit score is.
Our team have encountered situations where a customer’s mortgage application has been declined due to the applicant failing to meet the lender’s criteria on a specific deal. This is why it can be beneficial to seek the help and support of an expert Mortgage Broker in Derby. Here at Derbymoneyman, we have a team of friendly and knowledgeable advisors who have experience in this and can help you find the most suitable lender for your situation.
One way you can avoid this is to look at your credit file before you apply to check if it is of a high standard. In the case where your it doesn’t look as good, it’s best to look at way to improve your credit score. As well as this, you can get in contact with a Mortgage Broker in Derby where you can get information on which factors are most important for improving your score.
It’s good to remember that very few people indeed are realistically eligible for every deal that is on offer to them. For the most part, homebuyers and home movers are just searching the wrong mortgage deals. You might have found a deal that is cheap, however, it doesn’t mean that you will pass the lender’s criteria and quality for that specific deal.
As an open and honest Mortgage Broker in Derby, we would always suggest that you research the different types of mortgages available in detail or contact us to get a free mortgage appointment with one of our advisors.
A common route we have seen many customers using price comparison websites is a mortgage in Derby. Even though there is no problem with doing this, you need to keep in mind that the price comparison websites are only to analyse the different costs of mortgage deals, as opposed to matching you to all the different nuances of a lenders criteria.
By doing this, you may end up wasting a lot of time because the mortgage lender could potentially decline your case in the future. If you were to be in this situation, you may end up losing the property you were hoping for and potentially break a property chain you were a part of. Another issue is that you may have been declined for the mortgage you picked which could result in your credit score being damaged due to a failed application.
In many cases, a customer may be eligible for a wide range of mortgage products, however when it comes to matching the criteria for those deals, the lenders may end up only offering you a reduced deal. This is something that occurs on a daily basis, with lenders initially having a tendency to say that you can borrow a set amount, only to change their mind further down the line to reduce the previously available mortgage.
As mentioned before, each lender has their own unique way of handling the mortgage process. Often, there is a significant difference between mortgage lenders and it’s very unlikely that you are going to match up against all these lenders varying criterium. Therefore, it’s wise to narrow down your options and work out the option that is suitable for you.
Whether you are a First Time Buyer in Derby or looking at Moving Home in Derby, we highly suggest that you get in contact for some expert Mortgage Advice in Derby that will help you on your mortgage journey. Here at Derbymoneyman, we have a team who are available 7 days a week to assist you throughout the process and will work hard to find you the most suitable mortgage product for your situation.
Throughout the years in the industry, we have worked with thousands of customers, assisting with specialist mortgage cases to hopefully mortgage success. We also strive to make the process as smooth and stress-free as possible.
If you get in contact with a Mortgage Broker in Derby, you can get an idea of ways to improve your credit score in the event of any unfortunate financial circumstances.
Get in touch today with a Mortgage Broker in Derby for your free mortgage appointment if you are in a specialist mortgage situation.
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 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%.
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.
For more information regarding the different types of property surveys, check out our article here.
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.
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:
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.
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.
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.
To learn more about your mortgage options or to get started on your mortgage process, book your free mortgage appointment to speak with one of our mortgage advisors in Derby today. We usually have a great selection of appointments available, at times that are convenient for you.
Here at Derbymoneyman, we find the two questions First Time Buyers and Home Movers in Derby commonly ask us is ‘Can I get a mortgage in my circumstance?’ and ‘How much can I borrow?’. In this article, we will be discussing the second question as this has changed drastically in the past decade.
Prior to the days of credit scoring, your local Building Society Manager would manually assess mortgages. To make the process more consistent and reliable, the 1990s introduced the idea of lenders carrying out more regular income assessments.
In order to lower the number of mortgages being accepted to people who couldn’t afford one, a lending cap was introduced. This prevented people from borrowing more than three to four times their annual income.
To receive more applications, lenders started to become more generous with this leading cap as well as their conditions. There were even some lenders who accepted customers a mortgage without any background checks such as payslips. This would eventually become the catalyst for the credit crunch in 2007. In the midst of the credit crunch, lenders were requesting a 20-30% deposit, which made it very difficult to obtain a mortgage as a first time buyer in Derby or if you were moving home in Derby.
In the early 2000s, lenders became flexible in their criteria a lot more, arguably being too generous in the amount they would be willing to lend their customers.
Depending on the lender, some people were offered self-certified mortgages. These type of mortgages meant you were not required to have a background check so as the customer, you could self certify your income, regardless if the buyer falsely inflated the amount they were declaring.
Due to many people carrying out self certified mortgages, the market fell. This began the infamous Credit Crunch of 2008, from then to 2010, these became a very difficult times.
This especially effected individuals who were wanting to take their first step onto the property ladder. At that time, stricter lending criteria was to be put in place due to lenders having to change.
As the market made a recovery, the Mortgage Market Review (MMR) 2014 was created to provide an updated and sounder credit scoring system. The MMR was a set of requirements that lenders had to follow. Nowadays, lenders can determine if an applicant will be able to pay off their mortgage based on their financial state through the affordability calculator.
Lenders can use the calculator to receive a more meticulous insight into an applicant’s spending habits as well as net disposable income. A thorough assessment of your bank statement is carried out to ensure that if you can’t afford a mortgage, then you are not granted one as you could have been prior.
With this assessment, you will find that the majority of lenders will no longer go past 4.75 times your annual income.
As mentioned, lenders will look into your spending habits and the way they analyse these depends on your situation. For example, you may have to pay high childcare costs, have a large number of credit commitments and in some circumstances, you might be paying off your student loan. With this in mind, a mortgage lender will likely offer you less than your work colleague for example, who has fewer outgoings.
These days, there is a distinctive difference between lenders when it comes to how much or little they will lend to some customers. Now and again, lenders have been known to penalise low-earners.
The reason for this might be that they are looking for that type of applicant. They may lend if they see pension contributions as a fixed outgoing, in particular, to customers who have a significant deduction, less than a private-sector worker.
With every lender comes a very unique lending criteria, and every customer has its own circumstance, in the case that you need to maximise your borrowing capacity to have a chance at buying your dream home.
Lenders will always be competitive when it comes to price and lending criteria, however, they will avoid competing for the lowest rate as this will provide no profit gain for them. Furthermore, this will be highlighted through the difference between lenders and their maximum borrowing capacity. Different lenders target for different niches of clients therefore don’t feel it’s inevitable that one lender won’t lender to you as there will be another out there who would.
State benefits like tax credits are factors lenders will take into account for a mortgage. Some lenders may be more generous if you are for a self-employed mortgage in Derby. Increasing the amount they will lend can be done through extending the term of the mortgage to the maximum allowable.
Seeking Mortgage Advice in Derby can be very beneficial. On behalf of the customer, our team will search the market to try and match you to various lenders criteria.
When it comes to knowing the maximum amount you can borrow for a mortgage and your repayments, book your free mortgage appointment online today to speak with one of our expert Mortgage Advisors in Derby. They are determined to make sure your process run as smoothly as possible and search through thousands of mortgage deals to find you the most suitable for your circumstances.
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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
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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
