First Time Buyers Guides

What is the best mortgage for a first time buyer

So you’ve finally decided to purchase your very first home. This is often an exciting – and nerve wracking – milestone because aside from the home itself, you need to decide on a proper mortgage deal. There are just so many out there that it can be overwhelming, with most simply looking to strike a deal with the lowest rates. Unfortunately, purchasing a mortgage for a first time home isn’t that simple, and it could lead to regrets down the line. So, what is the best mortgage for a first time buyer? While there is no one size that fits all, […]

First time buyer mortgage

It goes without saying that qualifying for a mortgage is essential to many aspiring homeowners who are looking to secure a property. As simple as this may seem however, getting approval for the first time buyer mortgage can prove to be tricky, especially when considering all of the factors that most lenders generally focus on. But boosting your chances of becoming qualified for the desired mortgage isn’t rocket science, and obtaining what you need can be determined by a few points of interest. Keep your credit score in check before applying One of the first things that lenders will look […]

How to get a mortgage first time buyer

Getting a mortgage, especially for first-timers, is by no means an easy task. It requires careful consideration and thought as it may most likely end up being your biggest investment and take a huge portion of monthly banking activities. While it may not be without its own fair share of challenges, there are certainly ways to make far better informed decisions that will benefit you in the long run. Read more about how to get a mortgage as first time buyer. Budget allocation Looking to secure a mortgage is a lot like chess. You need to think two or three […]

How You Can Effectively Acquire a Mortgage even with Bad Credit

Mortgage lenders will definitely assess your financial situation inside and out if you apply for a mortgage. This is normal; after all, lenders would like to mitigate their risks as much as possible when taking on a mortgage applicant. A lender would need to make sure you can really afford to pay your mortgage, and one way they assess your credibility is by taking a look at your credit rating. If your credit rating is poor, you may be understandably worried. But don’t lose heart just yet – there are still ways for you to get that mortgage. Here’s how […]

Are You a First-Time Home Buyer? Here’s Your Guide to Getting the Best Mortgage Deal

If you have made a decision to buy property, congratulations! Your decision couldn’t have been an easy one, considering the cost of property and what you have to do to get one. But once you have property to call your own, the rewards can be great. If you are a first-time buyer, however, there are some things you need to know first. There are some factors which can affect how good a mortgage deal you’ll be able to get. Read on for some first time home buyer tips to keep in mind while applying for a mortgage. The steps to […]

Your Essential Guide to Affording a Mortgage even on a Lower Income

Sometimes, many people are deterred from even thinking about buying property just because they feel and know that they have a low income. The income they have is often just enough for bare expenses, and owning property is considered a far-fetched dream. But it doesn’t have to be this way – if you’re tired of renting and are focused and determined enough to have your own piece of property no matter what it takes, there are ways to achieve your dream. Here’s your essential guide to affording a mortgage on a lower income. Wait until you get a big break […]

Mortgage Stress Test

The truth of the matter is that getting a mortgage is not easy, especially in this time when the market is more competitive, and lenders are stricter than ever. Acquiring the home or property of your dreams can be quite a challenge if you don’t have a very good idea of how to go about it in the proper way. For instance, before you even look for property, you should work out how you will pay the mortgage. This means working out how much you earn and how much you spend each month. Additionally, mortgage providers look at whether you […]

Can you Afford a Mortgage

Before making a decision to buy the property of your dreams, you need to think about some major factors that can have an effect on your decision. Although it’s the dream of many to have their own home, not all can realistically afford a mortgage. So, can you afford a mortgage? Here’s how best to determine if you can really afford to get a mortgage and if lenders will actually give you one. Figure it out The first important thing you have to do is determine your whole income. How much do you earn per month? Do you have a […]

How Much Can I Borrow for Mortgage Deposit?

There are many people who dream of becoming a homeowner one day. Aside from making sure that your finances are in order, you’ll also have to save up for a deposit. This is one of the struggles why a potential homeowner may take years to prepare before finally taking a chance at applying for a mortgage. With living expenses that seem to mount up year after year, having substantial savings enough to make a deposit can be difficult. Often the next option considered is to borrow money for a deposit. Is this option risky? Yes, there are considerable risks involved […]

What Do You Need to Get a Mortgage?

Deciding to own a home is a big decision for any person or family. It’s not necessarily a burden, rather a major responsibility that should involve careful planning. In the end, owning a home is the dream of many families. Renting doesn’t give the kind of stability that a mortgaged home does. For anyone who has looked into the housing market and checked for mortgage offerings may feel slightly overwhelmed by the sheer amount of information, you need to process before making a decision. So, what do you need to get a mortgage? The general rule of thumb before applying […]

How to Get a Mortgage with Bad Credit?

Your credit score is very important if you want to use financial services such as loans. In a way, financial institutions use your credit score as a standard basis for your capability to manage your finances and pay off a loan. Not everyone gives their credit score the amount of priority it needs. As a result, negative credit rating can have a long-term impact on your finances. So what should you do if you are in a situation of poor credit and need to apply for a mortgage? More importantly, how to get a mortgage with bad credit? Factors that […]

How Much Mortgage Can I Afford in the UK?

Mortgage lenders are always keen to help anyone who wants to own a home. But even if you want to have a home now, perhaps you are not yet financially ready. How do you know when it’s the right time to take out a loan? Mortgage lenders can help by assessing your financial preparedness. Whether this be a first time buyer mortgage or not. Traditionally, lenders base the amount you can borrow on the ratio of your income against the loan amount. For example, a lender will allow you to borrow an amount equivalent to five times your annual income. These days, […]

Mortgage questions

You will face many choices when taking out a mortgage and it is best to prepare as much as you can before hand. Below are a few mortgage questions you should consider before committing to one. How much can I afford to pay each month? It is essential that you only borrow the amount that you can comfortably pay back each month for the period of your mortgage. A mortgage is a long-term commitment and therefore you will be making monthly repayments for many years, depending on your circumstances. When considering your monthly budget, allow a buffer for things like […]

Can I get a mortgage with bad credit?

Can I get a mortgage with bad credit? Lenders are reluctant to offer mortgages to those with poor credit score as they would not want to be portrayed as encouraging you to take on more debt where there is potential of repayments not being made on time. It may be an idea to improve your credit score before applying for a mortgage. This can be done using a “credit builder” credit card in which you pay off the full amount owed each month to show you can manage your debts responsibly. However, these cards often how low credit limits and […]

How to get a mortgage

The first step in how to get a mortgage would be to sit down with us and discuss your circumstances and what type of mortgage you are looking for. There are several types of mortgages, each suiting different people’s circumstances. Fixed Rate Mortgage With fixed rate mortgages, your interest rate and monthly repayments will be fixed for a certain amount of time. This will mean you will know exactly how much you are paying each month for the term of the fixed rate. This would mean however, that your interest rate will stay the same even if other rates go […]

Is it better to rent or buy?

Many people believe that renting is ‘throwing money at the wall’ and would rather buy but there are various things to consider while deciding whether to rent or buy? So, is it better to rent or buy? Let’s start with listing out the pros of buying first, followed by the cons. The pros of buying You are investing in an asset which may increase over time You have the security of living in the property for as long as you want You can change and decorate the property as you like The cons of buying You are committed to […]

Different Types of Mortgages

Getting the right mortgage can be a confusing, if not a scary process and whether you’re applying for one the first time or planning for a remortgage, the different types of mortgages available make it harder to decide on the right one. The first step to figuring out the right mortgage for you is to understand the different types of mortgages that are available. The second step is to narrow down to a couple of options that seem suitable and enquire about them. Step One: Types of Mortgages explained There are different types of mortgages, including: Repayment Mortgages Interest-Only Mortgages […]

What do I need to apply for a mortgage?

In order to apply for a mortgage, there are specific documents that will need to be readily available. We will ask for these before we submit the full application to the lender. The specifics will be dependent on your circumstances and the lender of which you are applying to. What do I need to apply for a mortgage? A great place to start would be getting a copy of your credit report. Ensure you are registered on the electoral roll at your current address Ensure your address history is accurate Avoid payday loans and overdrafts where possible Different lenders will […]

How long does it take to get a mortgage?

How long does it take to get a mortgage? Well, that depends on a variety of different factors including: The type of mortgage being applied for i.e. a remortgage or a purchase The time it you takes to gather the necessary documentation for the application The turn-around time of the mortgage lender The turn-around time of your conveyancer The complexity of the mortgage application Typically, the process begins by getting a Mortgage Agreement In Principle. The mortgage lender will perform a credit search and agree a figure that they would be willing to lend you for mortgage purposes. However, […]

What is a mortgage decision in principle and how long does one last?

A mortgage in principle is an agreed figure from the lender that they would be willing to lend you. In order to do so they will gather basic information and perform a background credit search. A mortgage in principle is not a guarantee and a full application and assessment will have to be made before the lender can issue you with a mortgage offer. A mortgage in principle can last between 60-90 days depending on the lender. Because a credit search is needed, multiple decision in principles could have a negative effect on your credit score.

Mortgage in Principle & Mortgage Offers

What is a mortgage in principle and mortgage offer? A mortgage in principle is an agreed figure from the lender that they would be willing to lend you. In order to do so they will gather basic information and perform a background credit search. A mortgage in principle is not a guarantee and a full application and assessment will have to be made before the lender can issue you with a mortgage offer. A mortgage in principle can last between 60-90 days depending on the lender. Because a credit search is needed, multiple decision in principles could have a negative […]

What is a mortgage offer and how long does one last?

What is a mortgage offer? A mortgage offer, otherwise known as the “offer of advance” is the formal document issued by the lender to the borrower to confirm that they are happy to lend the agreed amount. So, what is a mortgage offer? Well, it is a binding contract between the borrower and a mortgage lender. This confirmation that the lender will provide you with a mortgage comes after the lender has fully assessed your circumstances and a full application is made alongside a valuation of the property. Typically that means that: you as a borrower have the appropriate income […]

Stamp duty explained

What is stamp duty? If the property you are buying is worth more than £125,000 then you will have to pay Stamp Duty Land Tax (SDLT). What is stamp duty payable on? Stamp duty is payable on both freehold and leasehold properties costing in excess of £125,000. First time buyers do not need to pay SDLT on properties worth £300,000. Over that you would pay SDLT. So if your property is worth £400,000, you would pay stamp duty on the remaining £100,000. As of October 2018, first-time buyers under Shared Ownership schemes can now claim First-Time Buyers SDLT relief on homes […]

New Build Mortgages

It is vital to get your timing right when it comes to new build properties and related mortgages as it is unlikely that you will be moving in straight away. You need to bear in mind that you will need a mortgage before you exchange contracts. It may be worth starting to plan your mortgage even before you find a property. The mortgage lender will need to be made aware that it is a new build property as there could be delays between exchanging contracts and completion. Without doing so, your mortgage offer could expire and the whole process will […]

Shared ownership mortgages and schemes.

Shared ownership means you will own a certain percentage of your property with the other share being owned by a housing association. It will be a leasehold property for this reason. How does shared ownership work? When you first purchase the property, you would chose how much of a percentage you would like to buy – this is usually between 25% and 50%, although you can also purchase 75% if affordable. You would mortgage the share you would like to buy whilst paying rent to the housing association for the remainder that they own. Not all lenders will offer a […]

What is an offset mortgage?

Offset mortgages are linked to saving accounts. You will pay interest on the different between the outstanding mortgage balance and the amount of savings in your account. For example, if you owe £200,000 in total and you have £50,000 in savings, your interest rate for that month will be calculated on £150,000. You are usually able to decide whether to keep the monthly repayments the same each month or to reduce them when the amount of offset savings increase. You are still able to access and use your savings however the more to offset, the faster the mortgage will be […]

Help to Buy Schemes

There are various initiatives, detailed below, which form the government’s “Help to Buy” scheme. The aim of which is to aid people with the build-up of deposit in order to buy a new home. Help to Buy ISA The Help to Buy Individual Savings Account(ISA) scheme involves receiving a government bonus on top of your own savings. This account is offered from a variety of banks and building societies across the UK to first time buyers on their first home A starting deposit of anywhere up to £1,200 can be made followed by a maximum monthly amount of £200. […]

What is a tracker mortgage?

A tracker mortgage is dependent on the Bank of England Base Rate, meaning when this fluctuates, your monthly repayments will also change accordingly. The interest payable on a tracker mortgage is usually a certain margin above the Bank of England Base Rate – for example the Base Rate plus 1.00% with some trackers having a “floor” of which the rate will not fall below. Lifetime trackers track the Base Rate for the full life of the mortgage. They tend to be at a higher rate than other trackers however due to not having to switch lenders or products every couple […]

What information do I need for my life insurance application?

In order for us to submit your life insurance application we will need the following information from you: Your height and weight GP details – including name and address Your medical history including details of any current or previous illnesses Details of any current medication or previous medication taken in the last 5 years Details of any family history of serious illnesses Your existing policy information – including provider, sum assured, term of the policy and policy number. Bank Account Details – for the account you wish the monthly premiums to be taken from. Once your application has been submitted […]

What is a variable rate mortgage?

The interest on a variable rate rises and falls as changes in interest rates occur. There are different kinds of variable rates offered by lenders including a standard variable rate, a tracker rate or a discounted rate mortgage. Your monthly mortgage repayments are most likely to fluctuate whilst being on a variable rate unlike those on a fixed rate for example meaning your mortgage repayments could be different each month. The rate you will pay is entirely dependent on your mortgage lender, with changes to it not necessarily being affected by the Bank of England Base Rate. Standard variable rate […]

Affordability

At the moment it is easy to lull yourself into believing you can afford the mortgage you need – mortgage rates are at all-time lows and feel easily affordable. However, you need to ask yourself not only can you afford it today but can you afford it in the future when mortgage rates return to more normal levels. Let’s say you manage to find a buy-to-let mortgage with an interest rate of three percent, fixed for three years. That’s a great rate. After three years you find interest rates have gone up and the best deal you can now get […]

Builders incentives – new-build ‘off plan’ offers

These may be attractive to the price you pay for the property. Be aware that some lenders may restrict the amount they lend in relation to these types of contracts. This helps protect them against market sentiment and may mean you have to invest more of your own deposit.

Deposit

Lenders are no longer happy to take all the risk of buying your next property, and so do not lend 100% of the value of the property. If you are unable, in the future, to pay your mortgage, the lender needs reassurance that it can take your home and cover the loan by selling it. Less risk taking means lower loan-to value (LTV) ratios, and personal deposits need to be larger than in the recent past. The source of the deposit may come from your current property, savings, inheritance or a gift. Be aware that deposit loans from family and […]

Gazumping

This is where the seller decides to take a higher offer, even after initially accepting yours. This could leave you out of pocket on expenses like the legal costs and survey fee. In England and Wales, the sale is secured by law only when contracts have been signed and exchanged. Under the Scottish system, the seller confirms his acceptance of the offer. If the seller then gets a better offer and wants to change his mind, his solicitor will refuse to act for him on the new transaction – as doing so would leave him open to charges of professional […]

Guarantor

A guarantor doesn’t have to be a parent but usually is. A guarantor takes on some of the risk of you being unable to meet your repayments. The lender will normally require your guarantors to offer their property as security against the guaranteed part of the mortgage. Technically they become immediately liable to repay the outstanding loan if you are no longer able to make your payments. In reality what usually happens is an agreement is made between the lender and the guarantor, so they maintain payments until you are able to do so. The amount of lenders willing to […]

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