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.
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.
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.
If you happen to fall into the category of military personnel, Army Families Federation Defence Secretary Ben Wallace has great news for you. The existing Help to Buy scheme that was intended to assist military personnel in getting their foot onto the property ladder, has been extended.
The scheme was initially brought into prominence back in 2014, with the £200 million scheme’s purpose being to provide a boost to anyone from the forces who needed help buying a property. The project was not intended for long term though, as it was meant to end in December 2019. Rather than ending it, as a thank you to everyone’s commitment to their Queen and country, our government chose to extend this further, up until the end of 2022.
If at any point you served in the military and can meet the right criteria, you will have access to this scheme, wherein you are able to borrow a deposit of up to half your annual salary (up to a maximum of £25,000), without any interest added on.
This can be used as a means of purchasing your first home or to fund a new property to move into. Arguably the best and most appealing part to this, is that you do not need to have any current savings in order to take that first step onto the property ladder.
The money you will be using is raised from the Forces Help to Buy loan and can be used for anything, from your deposit to any other additional costs. These can include, but are not limited to, stamp duty costs, estate agent fees or even the costs of finding a solicitor.
This government scheme tends to be a little more relaxed than some other schemes, as the Forces Help to Buy loan can be drawn out and paid back over a term of 10 years. This gives you room to breathe and not feel so rushed at any point.
With all this in mind, the Forces Help to Buy loan is a true lifeline to those who never even thought they’d be able to own their own home. Bear in mind you’ll still have to qualify for eligibility, which is based on if you have served your country and can meet the right criteria (length served, service term left and medical categories).
Click here to read additional information on this scheme from the government.
With the assistance of a dedicated and experienced mortgage advice team in Derby, your mortgage process may go quicker and smoother than it would going alone. Your advisor will walk you through every step you need to take, having your back from day one.
From the start of your mortgage process when you get in touch, right through until your mortgage has been completed and even beyond that, your dedicated mortgage advisor in Derby will make sure you are taken care of, and hopefully end up with the best result for your circumstances.
As a company that prides itself on a reliable and efficient customer experience, aims to take the stress away and most importantly, loves and respects the nations forces, please contact us today and we’ll take a look at how we can help with your home owning dreams.
Please bear in mind that the Forces Help to Buy is not the same as the standard UK Help to Buy scheme.
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.
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.
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.
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.
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.
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.
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.
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
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.
As a dedicated mortgage broker in Derby, it’s always our goal to keep people informed, up-to-date and prepared for what lies ahead on their journey. In this article we have compiled an authoritative list of the 10 steps involved in the mortgage process for First-Time Buyers in Derby, so that you to be as “Mortgage Ready” as possible.
There are 10 steps in the process of buying a home and obtaining a mortgage;
After careful planning and consideration, you’ve now decided you’re going to jump in at the deep end and purchase a home, taking out a mortgage as a First-Time Buyer in Derby. We can almost say for certain that this is going to be one of the biggest financial decisions you ever make. Upon realising this, the anxiety can kick in, especially when you have no experience doing anything like this.
It’s at this point where a dedicated mortgage broker in Derby can jump in and start to guide you through the ensuing process. We always strive to take the stress away from you, working hard and doing our very best to ensure you come out the other side with a mortgage and in good spirits, ready to move into your new home.
Once you Get in Touch with us, we’ll be able to get you booked in for a free initial mortgage consultation with one of our very experienced and caring mortgage advisors in Derby. Here we’ll take some information from you and look at what your plans for the future are, before getting started on your mortgage process.
During your free mortgage consultation, your dedicated mortgage advisor in Derby will be able to run through a Mortgage Affordability Assessment with you. This process is fairly quick, and is where your dedicated mortgage advisor will go through your monthly income with you, looking at your regular expenditures (what you spend your money on), to get a good idea of whether or not you have the financial means to afford the mortgage amount you are looking to borrow.
It is very important for us to do this before presenting you to a lender, as we will need to have confidence that you can definitely afford your monthly repayments. This will help you avoid the risk of arrears and any future repossessions that may potentially occur, something the lender will really want to try and avoid themselves if they can help it.
A Mortgage Affordability Assessment will also usually be undertaken by a lender, so checks we take out initially will help save the lenders time, our time and more importantly your time, from an application that may be declined later down the line if you happen to fail on affordability.
Once we’ve done this, the next step in your consultation will be to help you obtain a very important and useful document called a Mortgage Agreement in Principle. If you’ve been doing any research on mortgages prior to receiving First-Time Buyer Mortgage Advice in Derby, you may have seen this mentioned with various names, including ‘Decision in Principle’, ‘Mortgage in Principle’, as well as the abbreviations ‘DIP’ & ‘AIP’. The only difference between these is the name; they are the same thing.
The reason a Mortgage Agreement in Principle will be essential in your process is because it provides a record that you have passed a lenders initial credit scoring system, either by that lender performing a hard credit search (which will leave a footprint on your credit file) or performing a soft credit search (which does not leave a footprint on your credit file).
You’re still not guaranteed to be accepted for a mortgage, but this is a necessary step on your way towards your end goal. Another benefit to you having this document, is that it will show the seller of a property that you are very serious, possibly creating room for price negotiations with them when it comes to making an offer.
Usually you’ll find that an AIP will last somewhere between 30-90 days. If your Agreement in Principle expires before you are able to use it, it can be easily renewed. Our team of expert mortgage advisors can usually get one of these turned around for you within 24 hours of your initial free consultation.
After you have gotten yourself Agreement in Principle, it’s on to finding yourself a Conveyancer to provide assistance with the legal proceedings of the homebuying process. The term Conveyancing is the name used for the transfer of legal ownership of property between two different parties, whether you’re the buyer or seller.
Your Conveyancing Solicitor will be able to deal with contracts, give any required legal advice, conduct local council or authority searches, help sort out with Land Registry arrangements and finally the transfer of the funds you have acquired in order to pay for the property you are looking to purchase. As you can clearly see, this is a hugely important role in your mortgage process, so you must carefully make your choice.
Something else important to remember here, is that Licensed Conveyancers are property specialists and can’t deal with complicated legal issues, whereas a more general Solicitors will be able to offer you a full range of services, so can often appear to be more costly. Whilst we do not offer these services ourselves in-house, we have a list of trusted companies that we will gladly be able to refer you out to, if you ask us for this.
At this point in your story so far, you’ve spoken to a Mortgage Broker in Derby, passed the Mortgage Affordability Assessment, gotten yourself an Agreement in Principle and found yourself a suitable Conveyancing Solicitor to help process the legal side of your purchase. This means you’re almost at the finish line! The step that will follow is for you to make an offer on a property!
As mentioned earlier on, with an Agreement in Principle in hand, you will be in a far better spot to start negotiations with the seller regarding the price of the property. Make sure not to insult the seller with an offer that is too low, but in the same breath, don’t be afraid to ask for a lower price. Knowing you have an AIP to hand, the seller will be more likely to accept your slightly lower offer than an offer from someone who is willing to pay the asking price but hasn’t even begun to prepare themselves for a mortgage.
At the end of the day, the worst thing that can happen is the seller might say no, but it’s at that point you can work out a more reasonable offer for both of you or take a step back and find yourself a different property with a price that is within your range. Once your offer has been accepted, it’s back to your mortgage advisor and onto the final stretch of your mortgage process.
The step you’ll be moving onto is an important one, as you’ll be submitting the required documents to go forth with your mortgage. As you might have expected when such a large amount of money is involved, a mortgage lender will be very picky as to who they are willing to lend to and rightfully so. There are various notable instances in the past where they were a little more lax on the rules and things didn’t work out too well.
Your mortgage lender will need you to present them with various documentation to prove that you are the right person to lend to. They’ll need to see the amount you earn from your current career, where your current residence is and how well you conduct your finances on a monthly basis. If you’re obtaining a joint mortgage, they will require this same documentation from either person involved with the purchase of the property.
The types of documents you will be required to submit to the lender include; proof of identification, proof of address, the last 3 months’ of your pay slips and latest P60 (employed), the last 3 years’ proof of earnings and Tax Year Overviews (if you are Self-Employed in Derby), proof of any income such as state benefits or maintenance, proof of deposit and the last three months of your personal bank statements.
When your mortgage has been agreed in principle, and you’ve had an offer accepted, we can now proceed to submit your full mortgage application to the lender. With everything readied and checked by your Mortgage Advisor in Derby & their team of Mortgage Administrators, we are ready to submit an application to the lender and await confirmation that you’ve (hopefully!) got your mortgage.
Your mortgage advisor in Derby will send off all the collected evidential documentation for this, and then all that is left is to wait for them to respond with either an accepted application or one that has been declined. Whilst there is no given time frame, our Mortgage Administration team will be able to chase the lender for an answer on this for you, until we have a clearer answer for you.
In-between the point of submitting your mortgage application and being offered a mortgage, the lender will require that your property have a valuation survey undertaken. These are usually carried out by accredited companies nominated by the lender (someone that they will trust to do this).
The reason they do this is to understand how much the property is truly worth overall, compared to what you’ve agreed to pay for it with the vendor of the property in question. If you’re paying above what it is deemed to be worth, the lender may be less willing to accept your offer. The reason for this is because they will most likely be out of pocket and unable to make back the amount that they had let you borrow if you happen to fall gain any debt at any point. This is usually referred to across the mortgage world as a ‘Down Valuation’.
There are various types of property survey available, with each of these varying in price. Some will just want to take a look at how much the property is worth, whereas some will also provide information on any issues with the structure that you should look into, as well as possible repairs that you may need to keep an eye on for in the future. Your Mortgage Advisor in Derby will be able to advise on which one may be right for you.
Now it is time for the moment you’ve been preparing for all along. Your mortgage lender has checked over your case and performed an assessment of all the documented evidence. Once this is completed, they will be able to present you with your Mortgage Offer.
Our team of friendly Mortgage Advisors and Administrators in Derby, that you’ve no doubt gotten to know quite well over the course of your process, will check over the offer on your behalf to ensure everything is correct and right for what you wanted. Then after your mortgage offer has been received, it’s down to your Conveyancing Solicitor to take your purchase from there, all the way through to the point of completion.
Congratulations, you’ve now officially graduated from the point of being a First-Time Buyer in Derby, all the way to being a full fledged First-Time Homeowner in Derby! You can hopefully now rest assured that any of the previous anxieties and concerns that were bothering you before, are now in the rear view mirror. We sincerely hope you are happy with your new home and ready to begin your new life and bright future.
All that is left for you to do is go get your keys and begin the process of moving in all your belongings! From the bottom of our heart, we hope you received a fast & friendly Mortgage Advice service in Derby and enjoyed speaking to our team throughout your journey to becoming a homeowner. If you have chosen a fixed rate mortgage, at the end of your term, we will Get in Touch once more to help out with your Remortgage or any other future property plans.
Most lenders will allow you to make ‘over-payments’ on your mortgage. Overpaying on your mortgage will allow you to clear your mortgage debt quicker, saving money on interest payments. The simple fact is, that if you can afford to overpay on your mortgage you can save thousands of pounds, you will clear your mortgage quicker and save on the overall interest paid.
All homeowners know that overpaying, even by relatively small amounts, can make a big difference to the number of interests paid back over the term. The sooner you begin overpaying, the better, as the extra payments have a greater period of time to have a greater effect.
Many homeowners cannot afford to make extra payments, but generally, the main reason is that life simply gets in the way. We know overpaying is the “right” thing to do, but let’s face it, there’s always something else you can be spending your money on, and plenty of those things are more exciting!
Part of the dilemma here is remembering to make those extra payments. It’s unlikely to cross your mind too often, except perhaps when your mortgage only has a few years left to run.
So, if you can see something of yourself in the above and would like to be making those extra payments so that, perhaps you can retire a year or two early, then what should you do?
Check first that your lender will allow overpayments, without any penalties or associated costs. Most will allow this but be sure to check first.
It’s highly recommended setting up a standing order payable to your lender each month. Set up the standing order to go out on the same day as your regular mortgage payment. E.g. your mortgage payment is, say £500pm and is collected on the 1st of the month. You can afford to pay an extra £75pm, so set up a standing order for £75pm to go out of your bank also on the 1st.
The reason for the above is that very quickly you will start to “feel” that your mortgage is £575pm and you will get used to that within a matter of months.
The big advantage of setting up a standing order to a direct debit, is you (the payer) are completely in control, unlike a direct debit where this is the receiver. Therefore, if you find yourself a little tight with money one month. You can easily log in to your online banking and pause the standing order so that it would cancel any future payments from going out until reactivated.
Up until the point of stopping the payments, at least you have benefited from the additional payments made until that point, and as mentioned above, this does not stop you reactivating your standing order in the future when you are more financially comfortable.
Some mortgages will even let you make reduced payments or take a payment holiday if you have been overpaying for a while. Before choosing a payment break though it’s essential to check with your lender that you are eligible to do so to avoid a bad mark on your credit report.
Whether a First Time Buyer in Derby or going for a Remortgage in Derby, overpaying your mortgage is a great habit to get into. You will be reducing the amount of actual debt you owe each month. You don’t need to overstretch yourself, simply making affordable additional payments each month could result in shaving a year or two off your mortgage in the long run.
If you are a first-time buyer in Derby who is looking at properties, you may see a certain one that catches your eye and will make you want to put forward an offer. Placing a proposal is a factor in the mortgage process which is just as important as any other step in the mortgage process and needs to get approached carefully.
Whilst you’re looking at properties and wanting to make an offer, you need to remember that other applicants will be searching the market simultaneously, which makes it so as you need to put yourself ahead of the game. It would help if you made it to give yourself the best chances of getting your offer accepted.
If you do have your eye on a property and you have everything organised – you’ll never beat a cash buyer even if their offer is slightly less than the one you proposed as they there will be fewer complications involved with their process. But luckily, there are not many apparent cash buyers in contemporary settings.
The best thing that will help increase your chances is to prove you’re able to be organised. The first step is to send your mortgage agreement in principle to your estate agent. If other applicants haven’t already sent theirs off, then it will make it so as you are further along in the process. If your case is straightforward, we may offer ‘same day service’ for this documentation.
As is always the case, buying a house is a negotiation process. If the first offer in which you make is accepted, then chances are you offered too much. More often than not, if your first offer gets rejected. There is no need to worry because you will get asked whether you want to increase your initial request after this. Meaning you can offer less in the first instance – so don’t be afraid.
If your second offer goes on to get rejected, sometimes it just means you will get left with the sole option of paying the original asking price, which happens mostly if the property is relatively new to the market. In some cases, you have to walk away and find somewhere else.
Some property websites such as Zoopla and Rightmove let you see the sold prices to inform you or whether the asking price looks similar to those around it. The data shown on these kinds of websites is obtained from the land registry so you can rest assured it is valid. However, some houses do sell lower than others surrounding them, but there will be reasons for this.
If they are getting sold lower than you expected, some houses can sometimes be down to such reasons as being repossessed, sold to a sitting tenant at a discounted price or it was an inter-family sale.
If you’re stuck on making an offer, we are happy to advise you on how to go about this as part of our service, so please feel free to get in touch.
The era of 100% and 125% mortgages are now long gone. Now that the credit crunch is but a distant memory, lenders are becoming more confident with their lending, offering more prominent bands of mortgages such as 95%. Using these more significant deals, lenders can maintain the comfort of knowing you have something to lose, should your situation change and you are unable to keep monthly repayments.
It is notably quite challenging to save up for a deposit for many people and thus be a barrier to entering the property market. When customers get in touch, we often find that we receive many questions about deposits. Below we have answered some of them for you.
The more deposit you put down, the lower the lender’s interest rate might be able to offer you. Because, in the lender’s eyes, you pose less of a risk if they lend to you. So the bigger your deposit, the less expensive band you receive. An example of this is if you put down a 5% deposit, you’ll get offered a 95% band.
Under the right circumstances, it can be possible, though it’s limited. The lender will see the monthly payment as an additional credit commitment and grant you a smaller mortgage, rather than the bigger one you might have received had you not taken out a loan. Lenders do not look too kindly on this.
Gifted deposits are common and get widely accepted in the mortgage industry. When going through the gifted deposit route, the person gifting must confirm that this doesn’t need to be paid back and is purely a gift.
You will need to present forms of ID and proof of funds for anti-money laundering. Gifted Deposits have been a godsend for the mortgage industry, and the market would look very different without them.
For the sake of anti-money laundering, all applicants will need to provide bank statements to provide proof of how your funds have to get built up over time. For more extensive deposits, you will need to give the lender with detailed, documented evidence.
Let’s say you have sold a car. Then the amount you have sold it for needs to match the receipt you provide and the amount shown in your bank account. Depositing large amounts of cash can delay the application as the audit trail can be difficult for the lender to navigate. The longer the funds have been in your account, the easier it may all be.
If you are selling a property, then the Memorandum of Sale provided by the estate agent is your proof of funds.
It’s still a 5% minimum if you qualify for the Government’s Help to Buy scheme. It can then be further topped up to 25% via the equity loan, to help you obtain a lower rate mortgage. You must remember that if you opt for this, then the 20% deposit provided by the Government is a loan, not a gift, and will need to pay back.
No, not always. If it is a genuine discounted purchase (say the house is worth £100,000 and you have been offered it for £90,000), then some lenders will accept the discount as your deposit. This can be very helpful if you have the Right to Buy from the local authority or another social landlord.
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.
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:
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.
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 Derby, Self 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.
Once the hurdle of saving for a mortgage is surpassed, the next step with your Mortgage Broker in Derby is paperwork. Here are some of our best tips on how to get ready and ahead of the game and speed up your process.
An up to date credit report is crucial and should be one of your main priorities. By doing this there will be no surprise of finding previously unpaid payments setting you back from a successful mortgage.
Our Mortgage Advisors in Derby look at what Lender is best for you, so it’s best to make sure all your information is up to scratch so that you’re put with the one most helpful towards your current needs. Certain things you can do to help yourself is to go onto the voter’s roll and make sure that credit cards you no longer use are discontinued.
To show your Mortgage Broker in Derby that you are who you say you are, you’ll need photo ID. This can either be a Driving licence or Passport.
If your Driving Licence is being used for your proof of address, you’ll need to find another alternative for your Proof of ID. If you’re working within the country and using a Visa, then you’ll need to also provide this too.
As mentioned earlier, you will also need to provide a proof of address. This can be a Driving Licence if you’re using your passport. Otherwise, a utility bill or bank statement dated within the last 3 months will do.
The bank statements you provide validate what your income is and provides an insight to your regular expenditures. This highlights the importance of thinking ahead and choosing wisely what you’re spending your money on. Some lenders won’t ask for your bank statements, but the ones who do want to make sure you’re on top of your finances.
Your deposit is saved but you still have to provide evidence for this for anti-money laundering purposes and prove that you have everything in place for the deposit. A useful tip is to make sure your finances are stable and in one place, so the audit trail is easier to get over and done with.
To prove to Lenders your affordability, proof of income will be needed. If you’re in employment then 3 months’ payslips will most likely be sufficient, although some lenders do like to see a recent version of a P60. Lenders will also take in other factors such as overtime, commission, bonuses and earnings from other employers.
If like many other applicants you are Self Employed in Derby, then you’ll need help from your accountant who will acquire your last 2 or 3 years proof of earnings. If you submit your own accounts, then we are happy to advise you on what you’ll need from the government gateway.
By planning your budget out, you will oversee where’s best to spend your money and what is what. It is best to include such items as council tax, utility bills and regular expenditures such as food and drink to see how much disposable income you will have leftover. If you’re having trouble with this then we are able to send you a template budget planner to get you started.
So, preparation is key to getting your mortgage sorted as quickly and efficiently as possible and will be easier by using the Mortgage Advice in Derby. The quicker you put time aside to gather all the essential information you need, the easier it is to speed up the process and getting closer to gaining a successful mortgage.
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.
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.
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.