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?

Cost-Effectiveness

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, moving house or looking to Remortgage 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 bough 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:

  • Mixed Depsoit (Savings & Gift) – This means auditing two different sources.
  • Zero Hour Contract Workers – Will there be a consistent income?
  • Looking to Make a Second Purchase – Can they afford to make that additional purchase?
  • Self-Employed with No Fixed Income – This can be challenging for Self-Employed applicants.
  • Poor Credit History – A lender will not look favourably upon an applicant who has mismanaged in the past.
  • Affordability – Can they afford a mortgage full stop?

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 guarantees you 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.

The Costs of Buying a Home in Derby

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

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

Estate agency fees

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

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

Valuation fees

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

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

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

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

Mortgage arrangement fees

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

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

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

Solicitor’s fees

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

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

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

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

Stamp duty

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

Mortgage broker fees

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

Removal fees

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

Book a Free Mortgage Appointment

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

A Guide to Remortgages in Derby: Top Reasons to Consider

Remortgage Advice feat Mortgage Advisor Wayne | MoneymanTV

Remortgage Advice in Derby

Being involved in the mortgage world can come with its rewards. When you come to the end of the process you will be left with the following;

  • A dream home to settle down in and maybe one day start a family.
  • You may be in a property you can use as a stepping stone to move further up the property ladder in the future.
  • An investment purchase that may bring in additional income.

Whatever route you decided to take, you will have ultimately come to the end of your mortgage term and be wondering what the next step is. Here are just a few;

  • Sell your home and move into a larger or smaller property.
  • Put your property portfolio up for sale and look for a different investment route.
  • A popular choice amongst our customers is to take out a remortgage on their home.

What is a remortgage?

Remortgaging occurs when you move your mortgage on your current property from one to another.

When it comes to a Remortgage in Derby, you will have a range of options to choose from, with both minor or a lot larger options available depending on your situation.

Remortgage for Better Interest Rates

Normally, the initial mortgage deal you’re on will last around 2-5 years with lower fixed rates or even some rates that have been discounted.

In some cases, you may find that you will be placed onto a tracker mortgage which follows alongside the Bank of England’s base rate.

It’s likely for many customers will result in their lenders Standard Variable Rate when their term has ended. This is also known as an SVR.

In short, an SVR happens when a mortgage with an interest rate that is decided based non what the lender wishes to charge, with the number subject to change.

Unlike a tracker mortgage, this does not follow the Bank of England’s base rate.

Due to the way Standard Variable Rates work, they are usually the most expensive mortgage option a customer can go for. This is why some people explore the route of remortgaging for a better rate.

Further down the line, you may find that you have saved some money on your mortgage repayments each calendar month.

Remortgage for Home Improvements

Raise Money for Home Improvements | MoneymanTV

When you get a couple of years into your home residence, you may be feeling a change and looking at giving your home a makeover.

This could be an extra room or more living space for your children or furniture, a new kitchen, a home office, or maybe even a loft conversion.

Some homeowners go for this option instead of moving into a larger house. You may find that you can release equity that exists in their home via taking out a remortgage when their term ends. By doing this, you can use the funds to cover the costs of any home improvements.

Taking out a large project like a home renovation can be a little overwhelming. It will also require you to get planning permission to do any of these projects.

On the other hand, many homeowners who have experienced this would likely say that it’s not as stressful and more rewarding to take on a home project to modify your home further instead of going through the process of moving home.

Further down the line, your plans could benefit you even more. Creating more space and having good quality craftsmanship could lead to a property value increase which can benefit you if you decide to sell up or rent out.

Remortgage for Changes to Your Term

Through our experience, we find that a plethora of customers who get in touch with our team are looking at the option to Remortgage in Derby for a better mortgage term.

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

By reducing the length of your mortgage term means that you won’t be paying your mortgage back for as long as you otherwise would’ve, however, it does increase your monthly mortgage repayments.

You will be paying a lot less each month if you have a longer mortgage term.

Sometimes, customers would opt for a more flexible mortgage term. The benefit is that this could result in you having the option to overpay at a later date meaning it pays off much quicker.

When it comes to flexible mortgages, you may also allow a homeowner to carry the same mortgage and rates over to a different property, if it’s ever needed in the future.

The purpose of a flexible mortgage sounds like the perfect option for many customers, however, they are usually taken out as a tracker mortgage, which was mentioned previously and follow the Bank of England base rate.

This does mean that your monthly mortgage payments could vary depending on the interest rate, this does make them not as reliable and consistent.

Remortgage to Release Equity

Since the 2007 market crash, property prices have risen since then. The majority of homeowners should have some equity sitting on their property.

You can work this amount out by looking at the difference between the remaining mortgage balance and the current property value.

Again, many homeowners will go for a remortgage as a way to fund any home improvements they’re planning to make. Along with this, there are many other options out there.

Additional options we find some customers use this equity for include covering long-term costs, providing a boost to their income, going on their dream holiday, paying off an interest-only mortgage, or to even just having some extra cash to spend.

In certain cases, we will also find that a number of buy-to-let landlords in Derby will choose to remortgage to release equity as a way to cover the deposit that they need to purchase additional properties to build their portfolio.

An Equity Release in Derby is aimed to those who are aged 55+ with a property that is worth at least £70,000. If eligible, this could be an option for you! For further information regarding this option, it’s important that you speak to an expert later life mortgage advisor.

Remortgage to Consolidate Debt

Keeping on the subject of equity release, it’s also key to mention customers who use their equity to pay off any unsecured debts that may have accrued over time.

This may sound like a pretty simple concept, debt consolidation will not only factor in the amount of debt owed, but the property’s value along with the performance of your credit rating at that time.

The certain aspects they into may, unfortunately, result in you being limited on the amount you can borrow for a remortgage, depending on your personal and financial situation.

Furthermore, for those who are serious about using this to pay off your previous mortgage and your debts, you will be required to borrow a greater amount than your outstanding mortgage. You may find that your monthly mortgage payments increase.

This isn’t the best situation to be in, however, it will provide you with reassurance that should you need the help, you have some options to choose from.

In the circumstance where your credit rating is not in the best state, there are other options available that could provide you with mortgage success. Keep in mind that these will be straightforward and will need very specialist Remortgage Advice in Derby prior to going ahead with them.

Unfortunately, getting some help and support from a Specialist Mortgage Advisor in Derby may not guarantee your mortgage success.

It’s still important, however, to enquire with an experienced Mortgage Broker in Derby before consolidating and securing any debts against your asset which is your home.

Experienced Mortgage Advisors in Derby – Get in Touch

For homeowners with a mortgage term that is coming to its end and are offering what their option may be for remortgaging, we would always recommend that you get in touch with a reputable Mortgage Broker in Derby like ourselves.

By having a Mortgage Advisor in Derby helping you through the process, you will be able to talk about your situation which will then determine what your next step is on your home owning journey.

We work hard in ensuring your mortgage journey is smoother the second time around, hopefully as smooth as your first. Here at Derbymoneyman, we strive to provide a tailored service that fulfils customer satisfaction.

10 Factors to Help you Decide Where to Locate in Derby

Moving home mortgage advice in Derby

Whether you are a First Time Buyer in Derby or are Moving Home, you may be deciding whereabouts you want to live in Derby. One aspect of the moving process that can be daunting is house hunting. You will need to factor in mortgage arrangements along with finding the best mortgage deal as well as organising the finances for your new home.

At this point in time, you will likely have a rough idea of where you may like to live and the types of houses you would like. Along with this, you will be looking into the location and its amenities and the amount you get for your money. You may be torn between some places and will want to think about the deciding factors that will come towards your final decision.

Below we have collated some points to keep in mind when choosing where to locate in Derby.

1. Where to live, Derby city centre or countryside

One of the most critical factors initially will be deciding whereabouts you would want to live in Derby. In particular, if you will want to live in a more central location or a more rural area.

This is key as the area will impact your commute to work, and access to local amenities, shops and schools.

2. Transport links

How we will get to work and how long it will take can be a key factors for many people. Therefore, you may want to look into the transport links such as railway or bus stations and even motorway links. One of these will be more important than the others especially if you do or don’t have your own mode of transport.

3. Schools, colleges

If you have a family or are looking to start one, the schools in the area may be the deciding factor. There are some brilliant schools in Derby so it may be best to look into the school league tables to narrow down your options on which school you will let your children attend.

4. Local amenities

Everyone’s lifestyle is different so you may want to prioritise an area that fulfils yours. This may be living the countryside life to fulfil your hobby of walking for example or it may be the hustle and bustle of the city where there are plenty of shops and social areas. Either way, it’s best to do your research into these factors and can be key to find where your closest emergency facilities are.

We do suggest making a small list of things you need and what you would like in an area in order to outline your priorities and desires. From this, you can refer to your ‘wish list’ when you find a property you are interested in and see if it matches your needs.

5. Family & friends

Many consider this if they need any additional support with your children like school runs and general childcare. You may want to look into this yourself and find a property that is within a short distance of your family or friends so it can be easy for you to visit them or approach them for any support you may need.

6. Value for money

As you may know, different parts of the U.k have varying property prices and within Derby, the property prices will differ depending on the type of property and the area it’s in. You may initially want to go for a cheaper property in Derby and compromise on the facilities whilst you save money for something bigger in the future.

7. Local community

The community may not be a priority to some especially if you want to keep yourself to yourself, however, you may want to get to know the people around you, in particular, if you are new to the area! If you are interested in this, look for any local websites and potential Facebook pages beforehand to get an idea of the going on in the area and what the people are like.

8. House prices – long term

As mentioned, house prices can vary in areas, however, you may want to look for a long-term property and hope the property prices rise on the off chance to sell in the future.

9. Career Change

You may be moving to Derby due to a career change. Therefore, I’m sure you will be looking for a property that has a convenient route to your workplace or is in reasonable distance to it. It is common for people to look at properties on the outskirts of Derby as there is brilliant transport links and routes for them to commute to work from.

10. Local Developments

It can be good to look at whether there are any future improvements in the area you are looking to live in, in particular, if you’re looking live there for a long time.

This is where online research can be beneficial if you are looking to find any future investments. It’s key to consider whether or not this will be helpful for you and your lifestyle.

For example, if you are looking for a more quiet and rural life, you may be disappointed if you find that the area is looking at developing a large housing estate nearby.

Moving Home in Derby

If you are looking at moving into a property in Derby and are beginning to make offer as well as getting yourself a mortgage, get in touch with our team today who can book you in for a free mortgage appointment. We have a team of Mortgage Advisors in Derby that are here to help!

We are available 7 days a week from early until late, subject to appointment availability. We have helped many First Time Buyers and those Moving Home in Derby achieve their mortgage goals and are more than happy to help you towards mortgage success.

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Why Should I Use A Mortgage Broker In Derby?

Why use a mortgage broker in Derby?

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

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

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

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

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

Fast & friendly mortgage advice in Derby

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

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

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

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

Mortgage lender versus mortgage broker

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

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

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

Why a mortgage broker in Derby will benefit you

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

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

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

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

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

Should I Transfer to a Buy to Let Limited Company in Derby?

In the event that you have a current portfolio, it is conceivable to exchange ownership from your own names to a limited company if that suits your necessities and conditions.

If you choose to exchange your property portfolio with a limited company, you will trigger a deal and repurchase. Doing as such will bring about capital gains tax, stamp duty and the legal, mortgage and valuation charges.

Buy to Let Mortgage Advice in Derby

It is likewise imperative to take note that limited companies do have running expenses and lawful necessities, for example, documenting accounts. In any case, you will pick up the upside of tax-deductible costs, for example, mortgage broker fees and lender arrangement fees.

This is a very specific territory and if you are thinking about making this move, it’s important that you seek specialist Buy to Let Mortgage Advice in Derby. We can offer you this by passing you onto a Buy to Let Mortgage Advisor who will be ready to help you with anything mortgage related!

Mortgage Broker in Derby

What Lenders in Derby Look For on Banks statements

Not all lenders ask to see bank statements as a matter of course, although all reserve the right to request them. Getting your bank statements mortgage ready. Mortgage customers can sometimes get nervous about their bank account when they come to provide statements ahead of applying for a mortgage. If you are considering applying for a mortgage sometime soon then invest some time in tidying up your account conduct now to give your future application the best possible chance of success.

Following the ‘Mortgage Market Review 2014’, where rules came into effect to ensure people take out a mortgage they can truly afford. Lenders began paying much more attention to customer’s outgoings. Back in 2014 when this was all brand new, lenders were more than keen in some of their deep analysis of outgoings.

You may recall some of the headlines at that time regarding “My mortgage provider wants me to tell them how much I pay for haircuts and eating out”. The availability of ‘statistics’ is greater these days and there is rich data available to lenders from the Office of National Statistics and other sources to estimate some of those outgoings.

Improve your chances with your mortgage application

Taking the first steps onto the property ladder as a first time buyer in Derby can be hard, so you need to know absolutely everything in order to improve your chances of being accepted straight away.

If you are applying for a mortgage and you are bouncing direct debits and incurring bank charges then any lender will not look favourably upon that, so if you fall into this category then you’ll need to work on getting things in order. Using an overdraft facility is usually ok, as long as you do not exceed your agreed limit. Even then, if it’s a one-off with a good explanation then it’s still possible that you will be accepted. Avoid bank charges, particularly for missed payments, bounced cheques etc.

Payday loans – If these appear on your bank statement, this will be a red flag to most major lenders as it implies you are not able to meet and manage your monthly budget and requirements. So aim to avoid these and balance your finances so you can demonstrate good solid financial management.

What lenders look for on your bank statements: red flags

Gambling payments on your bank statement? Gambling is something that viewed poorly by lenders. If it is very small amounts then it’s often ok. If you gamble more regularly than that it would be wise to address this before applying. It’s a good idea to get “mortgage-ready” before you find a property you are would like to purchase.  If you have any concerns about whether lenders may have an issue with anything on your bank statements we would recommend you contact us sooner rather than later to avoid the disappointment of having an application declined.

Buying a New Home in Derby: What Is Gazumping?

So, you are about to purchase a property and Move Home in Derby, carried out all the research, your verbal offer accepted by the agent and even worked on the mortgage arrangements. You’re not quite there yet, the seller could still accept a higher offer from another buyer. This is gazumping and we take a look further down and explain everything related to gazumping.

Legality of gazumping

You find a property you like, you make an offer which the seller accepts. The seller then accepts a higher offer. It will undoubtedly feel ‘unfair’ but in England and Wales, gazumping is perfectly legal. The agreement for property buying or selling only actually becomes legally binding once you have exchanged the signed contracts. There is no binding contract until this time, so no party will be liable for any verbal agreement made.

It is common to have a period of time of several weeks between a verbal agreement between the buyer and seller of the property and the actual agreement being signed. This is due to various factors such as a property survey and a conveyancer running the required searches and receiving a mortgage offer.

During this period the seller can accept another buyer’s offer. This usually happens for properties with higher demands which increases that property’s worth. It is also possible that the seller chooses someone else’s offer, they could be keen to sell the property quickly and they may choose another offer due to, for example, if there are delays at the ‘purchasing’ side, such as with the mortgage application.

Avoid being gazumped when buying a new home

Clearly, there is no fool-proof method to not be gazumped. There are however insurance policies available, which will provide cover for any losses should gazumping take place. You can also ensure that you take steps to be prepared to lessen the probability of being gazumped.

While you may not be able to arrange everything beforehand, you can make provisions for surveys, find surveyors in advance and other related elements of purchase to be able to complete these steps quickly and look to complete the purchase a quickly as possible.

Mortgage agreement in principle

Arrange a ‘mortgage agreement in principle’, this is a conditional offer for you to receive a mortgage if certain conditions are met, do this before looking for properties. This helps to quicken the mortgage process at the later stage. Also, find a conveyancing solicitor ahead of time with to work with.

Ask the seller to take the property off the market as part of the offer. While a seller is not required to take the property off the market before any legal documents, it is helpful and many sellers will do so particularly in flat housing market areas.

Arrange a preliminary (also known as lock-in, lock-out, or exclusivity) agreement from the seller. The seller then can not engage in negotiations for the same property for a certain time period while you work on the mortgage and other property buying requirements.

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