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

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

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

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

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

What is a remortgage?

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

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

Remortgage for Better Interest Rates

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

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

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

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

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

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

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

Remortgage for Home Improvements

Remortgage for Home Improvements During Lockdown | MoneymanTV

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

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

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

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

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

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

Remortgage for Changes to Your Term

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

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

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

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

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

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

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

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

Equity Release

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

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

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

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

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

Remortgage to Consolidate Debt

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

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

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

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

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

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

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

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

Experienced Mortgage Advisors in Derby – Get in Touch

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

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

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

8 Factors to Help you Decide Where to Locate in Derby

Moving home mortgage advice in Derby

When considering ‘where to live in Derby’, there are many things you will look for. House hunting as a first-time buyer in Derby or as a home mover in Derby can be daunting. You will be looking at mortgage arrangements and the best mortgage deal available for you, and your finances for your new home. 

By now, you probably have a rough idea of where you may like to live, the type of house you would like. You will be considering the location, amenities and how much you get for your money. But how to decide which area you would like to live in? 

We’ve put together a few points to consider when choosing where to locate in Derby.

Things to consider when moving home to Derby

1. Where to live, Derby city centre or countryside

Depending on where you decide to locate in Derby will be one of the most critical factors. You will have to think about whether you want a city location or looking for a more countryside setting.

You need to consider this carefully, as the area will affect the commute to work, access to local amenities, shops and schools.

2. Transport links

We all generally have to consider some factors, such as how we get to work for many people. So access to primary transport links, railway or bus station, and motorway links will be necessary, especially if you don’t have your mode of transportation.

3. Schools, colleges

For those with children, an essential factor is usually the quality of the school in the area. There are some great schools in Derby, and it’s always worth taking a look at the school league tables if you have any doubts on which school to let your children attend.

4. Local amenities

What you are looking for in the area may differ depending on your lifestyle. Some of the things you may consider are the proximity of the nearest supermarkets, shops and maybe how close you are to the emergency facilities.

We recommend you make a shortlist, what you need and what you would like near you as a priority. When you find a house you are interested in, you can then compare it with your ‘wish list’ and see if it matches your needs.

5. Family & friends

Depending on your circumstances, this is a personal choice on whether you need additional support with the children, help with school runs and childcare. So it may also be that you would like to be in as close proximity to them as possible, or at least just a short distance away so that it’s possible to visit if you wish to do so.

6. Value for money

When you choose the ideal home, you need to set aside how far your money will go and what you get in a home for the amount of money you spend. So you may need to compromise on what you are can within your price range and budget.

7. Local community

Some tend to keep to themselves, and others prefer being part of a community. For best results, look at local websites or take a visit beforehand to get to know locals who will inform you on current events and what’s available

8. House prices – long term

Maybe you are purchasing a property having long term investment ideas and, as such, hope the property prices rise, on the off chance that you choose to sell in the future.

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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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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.
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The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
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