Should I Overpay My Mortgage in Derby?

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

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

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

Put the plan into action

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

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

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

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

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

You’re still in control

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

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

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

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

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.

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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Our 10 Step Mortgage & Home Buying Guide for First-Time Buyers

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;

  1. Free Mortgage Consultation
  2. Mortgage Affordability Assessment
  3. Agreement in Principle 
  4. Find A Solicitor
  5. Make an Offer
  6. Submit Your Documents
  7. Formal Mortgage Application
  8. Valuation/Survey
  9. Mortgage Offer
  10. Completion

First Step: Get in Touch for Your Free Mortgage Consultation 

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.  

Second Step: Mortgage Affordability Assessment – How are you doing Financially? 

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.

Third Step: Obtaining a Mortgage Agreement in Principle

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.

Fourth Step: Finding the Right Solicitor 

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.

Fifth Step: Making an Offer on a Property 

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.

Sixth Step: Submit Your Documents 

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. 

Seventh Step: We’ll Progress Your Mortgage Application 

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.

Eighth Step: Property Valuation / Survey 

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.  

Ninth Step: Receiving Your Mortgage Offer 

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.

Tenth Step: Completing The Process 

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.

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.

Getting Prepared For A Mortgage in Derby

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.

Up to date credit report

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.

Proof of ID

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.

Proof of address

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.

Last 3 months’ bank statements

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.

Evidence of deposit

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.

Proof of income.

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.

Budget planner

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.

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.

Derbymoneyman.com & Derbymoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
Should you have cause to complain and you are not satisfied with our response to your complaint, you may be able to refer it
to the Financial Ombudsman Service, which can be contacted as follows

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www.financial-ombudsman.org.uk

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