When you start looking at applying for a mortgage, usually we find that the large majority of applicants in relationships will jointly apply for a mortgage, rather than applying for a mortgage in one of the couples sole name.
With property prices always on the up and inflation pulling ahead of wage increases, lenders will generally prefer that first-time buyers in Sunderland have two incomes to cover the mortgage if they have the option to do so, rather than both of them living there and only one person being responsible for the mortgage.
On the flip side, sometimes you might find that situations come up that may potentially make it viable for a sole name to apply for a mortgage. This can be down to anything from one of the applicants not wanting to have their name on the mortgage, to a financial issue coming up.
We also see in some cases, that one of the partners may not be in work in the moment, be that a choice or down to circumstance.
When we say financial issues, this could be something like a bankruptcy or county court judgement, factors that could affect the other applicant and also their overall chance of obtaining a mortgage. In these cases, it’s much better that there be no tied finances and that only one of the parties apply for the mortgage in their name.
Definitely make sure you’re careful, as one half of a couple getting into trouble financially can significantly harm the other half in their attempts to apply for credit, especially something as large as a mortgage loan.
For the most part, the rule of thinking to stick to is that the maximum borrowing capacity for a couple with only one applicant in employment will be lower than it would’ve been if the applicant who is employed had applied in their sole name.
This is something that happens on a regular basis across the mortgage world the mortgage world. Age is something that may also be factored into working out how much you can borrow. This may become prevalent in the event where maybe an applicant is over 50.
To use an example of how this would affect your mortgage; Let’s say you are over 50 and your partner is in their late 20’s, early 30’s. They have a well paying job and have plenty of time to pay off a mortgage before they hit your age. If they applied in their sole name, they may very well have access to a much higher mortgage amount.
The effects of stamp duty or something else relating to tax may be a potential reason as to why a couple may choose to only have one of them apply for the mortgage in their own name, rather than as a couple.
You’ll find that there are a fair amount of lenders with strict criteria regarding married mortgage applicants, as it is a mortgage that will be involving two people who are connected in a strong way. Whilst applying under a joint name gives security to the lender in the event of arrears, it can have its problems.
The reason for this is that if you happen to get divorced at any point down the line, it’s a difficult process trying to remove one of your names from the property. Our team of mortgage advisors in Sunderland can help with this, but you should definitely give plenty of thought before jumping in headfirst with your partner.
Luckily for those applying for homes, not all are as strict and prepare for the worse, so there will be options out there for you to choose from. We have specialist mortgage advisors in Sunderland, available every day of the week to help you find mortgage success.
We’re proud of the level of service we are able to provide home buyers and homeowners alike, so please do book yourself in for a free mortgage appointment and we’ll see how we can help!
Once you take the leap of faith and decide to start looking for your first home, it can be tricky knowing where to begin. Buying a house in any mortgage situation can be a stressful experience.
You could be starting your home buying journey for a second time as a home mover; a local landlord with hopes of growing your buy to let portfolio; a self employed applicant struggling to match with a deal that suits your working life and financial situation; or a completely different situation, nevertheless you’re all in the same boat.
Everyone’s home buying journey will be tricky, it’s never easy to buy a property! As a first time buyer in Sunderland, you will unaware of all of the things that come with buying a home. Even more specifically, you may not know how much deposit you need to put down.
When buying a home, you will need to provide a deposit. The deposit amount that you put down will differ from applicant to applicant as financial situations, income and credit scores, etc., will change.
A deposit is one of the forms of evidence that a lender needs to know that you’ll be able to afford a mortgage on the property that you’re buying. Deposits are based on a percentage of the property’s price. Depending on different factors, the minimum percentage that you need can change.
Providing that you have a clean credit history, and your lenders find you to be a ‘reliable’ applicant, you may only have to provide a minimum of a 5% deposit. In turn, if your credit score is poor and you don’t seem like a ‘reliable’ applicant, they may require you to put down a deposit greater than 5%. We’ve seen them ask for 10%-15% before now.
Of course, the total deposit amount can vary from property to property; when the property price goes up, the deposit naturally will too. A 5% deposit on a £150,000 would be very different to a deposit for a home valued at £360,000.
Unfortunately, sometimes the deposit that’s required can change if the economy is performing badly. For example, during the coronavirus pandemic in March 2020, the property market crashed, leaving some lenders wanting a minimum of a 15% deposit!
If you put down a greater deposit than the minimum amount required, your chances of being accepted could slightly increase. Therefore, if you find your dream home and you have more than a 5% deposit, you could put down more if you want to.
As a mortgage broker in Sunderland, when we see applicants putting down a greater deposit, it’s usually because of a gifted deposit giving them a boost. A gifted deposit is simply a family member or friend gifting the applicant funds to help make up their mortgage deposit. If you are nearly at the 5% mark and then you receive a gifted deposit, you could have a deposit around the 7% mark, which can only benefit your application.
If you’re struggling to make up your deposit as a first time buyer, there are different ways that can help you get there. The government have created new ways to help first time buyers (like you) get onto the property ladder.
‘Own Your Home’ consists of lots of different schemes that can help you start your homebuying journey. Most of these schemes were introduced off the back of the credit crunch in 2012. The schemes helped pump confidence back into the market, meaning that buyers could comfortably start their home buying process without feeling worried that something could happen.
Now there are even more schemes than there were in 2012. ‘Own Your Home’ includes more than 10 homebuying schemes to help all types of buyers to get onto the property ladder. However, there are a lot more schemes targeting first time buyers, like yourself.
Schemes that you should be aware of include:
Our mortgage advisors specialise in help to buy mortgage advice in Sunderland as well as other mortgage schemes. For more information on these schemes and help to see whether you qualify them, get in touch with our team.
There are only few situations where you will not need a deposit for a mortgage. One example would be if you have a family discount on a property or a gifted deposit that covers the entirety of the deposit. Another example would be if you were a council house tenant and you wanted to utilise the Right to Buy scheme to buy your home and the discount provided by the government covered the deposit.
Customers have also asked “can I take out a loan for the deposit?”. As a mortgage broker in Sunderland, we would not recommend doing this. Lenders will be able to see that you’ve done this and may penalise you for doing so. If you do this, you’re essentially borrowing 100% of your mortgage, which also means that you’ve got two large loans to compensate for.
In summary, in most situations, you will need a deposit. A deposit is not only a good piece of evidence that you can afford a mortgage but shows that you’re reliable and have saved up overtime to get to your target amount.
As a first time buyer in Sunderland, it’s likely that you’re going to need a minimum 5% deposit. However, remember that this can change depending on different factors such as your credit score and evidential documents like bank statements.
If you are look for first time buyer mortgage advice in Sunderland, feel free to get in touch with us. We are an experienced mortgage broker in Sunderland that has been working within the mortgage industry for over 20 years now. We know that it can be tough starting off your home buying journey with little no experience, and that’s why we’re here to help.
There are multiple different reasons why someone may look to obtain themselves a second or even at times, a third mortgage.
An example of this right off the bat, is that another mortgage could be used as a means to grow your property portfolio. Alternatively, it can be used to house a family member.
Obtaining a second mortgage can be quite difficult, more so than your first one, as now you’re having to account for two sets of mortgage payments, which could have a knock on your affordability.
If you are unable to afford the costs involved with a second mortgage, the mortgage lender will not accept your application.
As a trusted and dedicated mortgage broker in Sunderland, we’ve seen people apply for a second mortgage for all kinds of different reasons. These include;
If you happen to be over five years into your mortgage term, the chances are that you’ve built yourself up a suitable amount of equity in your home. You can withdraw some of this equity and turn it into cash, through taking out a second mortgage.
What you do with that money is completely your choice, after all, it’s equity you’ve built up in your own home. Some people use it to fund the deposit of another mortgage, whilst others may use it to take their dream holiday. There are no limitations once you’ve withdrawn that equity.
It is worth noting though that releasing equity within your home isn’t always an easy process. Speaking with a specialist mortgage advisor will definitely benefit you along the way. Our advisors have access to a unique and vast selection of second mortgage deals.
No matter if you’re a landlord with experience within the market already or someone who is looking into making their first purchase on an investment property, you’re going to need more than one mortgage to achieve your goals.
Buy to let landlords that have amassed themselves a suitably large portfolio will likely be used to the process of getting more than one mortgage. For those starting out as a landlord, sometimes you need help getting everything sorted properly.
Second mortgages in the form of buy to let work in a similar way to the first mortgage you took out. You still have to meet the mortgage criteria and put down a deposit (typically 15%-25% of the property), as well as passing affordability checks.
Affordability in this case isn’t always down to your own income though, as some lenders will look into what the predicted rental income will be expected and stress test this against their own multiples.
No doubt the cost of your mortgage payments should be sufficiently covered once you have found tenants and they have moved in. Initially though this might prove challenging, so you need to be able to cover the costs until the income starts to flow.
For buy to let mortgage advice in Sunderland, please feel free to speak with our buy to let mortgage experts here at Sunderlandmoneyman.
This sort of process is what is known as a let to buy mortgage. Some homeowners will have an option to get a second mortgage on a newly purchased home, allowing them to rent out their current home and move into a new home for themselves.
Let to buys are of course very similar to buy to lets, it just works a little bit differently. In this case you need to find a tenant for your current property, in order to move out yourself. Landlords may do this if they want to move themselves into a bigger family home.
Our buy to let mortgage advisors in Sunderland also have a lot of experience and knowledge in working with let to buy mortgages, so get in touch if you would like an advisor to help you with a let to buy second mortgage.
If you have any children or other family members that are having some difficulty in getting themselves onto the property ladder, you may have the option to take out a mortgage in your name and allow them move into the it as their new home.
Going down this route will likely land you with a guarantor mortgage.
Another popular option that some people go with is to gift the person in need their deposit. Gifted deposits are crucial to the property market and are always a fond option for helping a loved one find their footing on the property ladder.
As noted in this article, there are various reasons as to why you can be listed on two mortgages. Sometimes it’s something you’ve planned for, but in other cases it can be completely unintentional.
We regularly find through our work as a mortgage broker in Sunderland, that one of the most common reasons for someone taking out a second mortgage is divorce or separation.
The difficult part here is that it can be hard to remove your own or your ex-partner’s name from the mortgage you share. This is once again down to affordability, but also down to both parties having to mutually agree.
Though it may come with challenges, it is not entirely impossible to obtain a mortgage post-divorce or separation. If you are in a similar situation, there may be some mortgage lenders out there who will give a bit of leeway considering your current personal situation.
If you’re named on an existing mortgage for a home you no longer live in, you should look to get your name removed as soon as possible. Having financial ties to someone can sometimes bring your overall credit score down, especially if the other person is bad at managing their finances and getting into arrears regularly.
The first question that you might ask is how many different types of mortgages are actually out there for customers?
You’ll find that there are a wide variety of different mortgages that are available to prospective home buyers. Each of these mortgages have their own unique advantages or disadvantages to taking them.
In this article, we will take a look at tracker mortgages and why they might potentially be the best mortgage option for you and your personal circumstances.
Always remember that a mortgage deal will only be as good the circumstances that it is matched up against.
To use this in an example, you may find yourself signed up onto a tracker mortgage, only to later decide that you would rather have fixed monthly mortgage payments. Unfortunately at this point, you are locked into a deal and cannot switch out of it.
As an open & honest mortgage broker in Sunderland, we will always highly suggest that you do some of your own research prior to this, or alternatively take mortgage advice in Sunderland.
A mortgage advisor in Sunderland will be able to make sure that you are at least on the most appropriate mortgage deal for your personal and financial circumstances.
If you would prefer to have a look at our YouTube video, you are more than welcome to hop on over to our MoneymanTV channel and watch “What is a Tracker Mortgage?“. Alternatively you can view it below:
So the question on your mind is likely, what actually is a tracker mortgage?
Well, if you are signed onto a contract with a tracker mortgage, your interest rate will run alongside the Bank of England’s base rate, with the lender typically adding a percentage on top of it.
Your lender will not be determining the rate that gets added, as it is an external rate that must be strictly followed.
For example, if the base rate of the Bank of England was around 1% and your mortgage lender adds on another 1%. You’re now running at a 2% interest rate.
The percentage will always be a little bit above the base rate set by the Bank of England.
A tracker mortgage works out really well for customers if the Bank of England’s rate is running a little low at the time of application.
Generally speaking the base rate will sit somewhere around 0-1%, though it will rise and drop down again throughout the course of the year.
Back during the unfortunate era that was the credit crunch in 2007/08, the mortgage market completely crashed, which caused the interest rate to skyrocket. The highest we ever saw it go up to was somewhere around 5%.
Bearing in mind that you’ll also have the percentage that your lender will add on top of this, and you could’ve added 6% interest onto your recurring mortgage payments.
On the flip side to this, during March 2020, the mortgage market went through another tough time, this time because of the impact of COVID-19. The opposite happened this time, as here the Bank of England’s rate decreased massively, dropping all the way down to 0.1%.
If you were on a tracker mortgage throughout this period of time, the chances are that you were sitting comfortably on a 1.1% interest rate.
As you might expect for something so good to be true, during this period, new customers couldn’t pick up a tracker mortgage. The reality is, lenders are in the business of making profit, not losing it.
At this moment of writing, we’re just heading towards the end of the Coronavirus, and it is admittedly still difficult to obtain a tracker mortgage.
Taking out a tracker mortgage has both pros and cons. These types of mortgage rely heavily on the economy, so if the market isn’t performing at it’s best and the Bank of England’s rate is high, a tracker mortgage probably isn’t your best option.
Again, by completely flipping the situation, if the economy is performing outstandingly well with the Bank of England’s rate at a lower amount, a tracker mortgage may be one of the better mortgage options for you to take.
No matter your mortgage scenario, there are such a wide array of different mortgages that are available to you in Sunderland, it’s just about working with a mortgage advisor in Sunderland to find you the right one.
Before you go ahead and dive into any deals, it is highly recommended for your own benefit to speak with a dedicated mortgage advisor in Sunderland about your possible mortgage options.
They will help you shop for different potential mortgage deals, working hard to find you the most competitive one for your personal circumstances.
If you are a first time buyer in Sunderland, our trusted and refined mortgage advice service will prove to be highly beneficial.
We have been working within the mortgage industry for a very long time, well over 20 years now and have a lot of industry knowledge on all the different types of mortgages, including those that benefit first time buyers the most.
This applies even if you are looking at your options to remortgage in Sunderland or if you are moving home in Sunderland, as we believe that you’ll genuinely benefit from using our invaluable mortgage advice service.
As an mortgage broker in Sunderland with a flood of knowledge and experience, we will work from beginning until end by your side, aiming to be a guiding light throughout your mortgage journey.
First of all, what is gazumping? It is actually a term that is used to describe circumstances wherein the seller of the property you’re looking to buy, accepts an offer from someone else, even if your mortgage application is already underway.
You may, like many others, think to yourself “this can’t be legal surely, especially if they’ve already accepted your offer”. This is something that whilst completely immoral, unfortunately isn’t an illegal practice.
Gazumping happens all the time and for better or worse is a recurring part of the property-buying process in England and Wales. This is because an agreement to buy or sell a property doesn’t become legally binding.
Until the lawyers exchange written contracts. Until that point, you only have a verbal agreement.
Gazumping can be a very traumatic experience for first-time buyers in Sunderland. You may think you are about to purchase the property of your dreams when the sale comes hurtling down.
You may also be part of a chain that breaks and, as a result, you have to move your moving date back. It can be much more painful if you lose money as a result.
The reason for this is that you can sometimes be left out of pocket by non-refundable survey costs, conveyancing fees, and mortgage arrangement fees.
As we have previously touched upon, until any contracts have been exchanged, any agreements made verbally are not legally binding, they are under no obligation to “follow their word”.
Unfortunately there can be a good few weeks difference between the point in which you have an offer accepted, and the point where deals are exchanged between the two parties.
The reason for it taking so long can be due to a few different factors, such as having a property survey undertaken, your conveyancer carrying out the necessary searches and waiting to receive your mortgage offer.
During this period, other first time buyers in Sunderland may come in and make a much better offer than the one you had previously had verbally agreed. This offer will be passed on from the estate agent to the seller of the property.
It may not always financially that these offers are preferable, as sometimes the buyer jumping in may be able to get through their process quicker or be free of the burden of a property chain.
The term ‘gazumping’ covers any of these preferable offers the seller decides to accept over the offer you initially made.
Unfortunately there’s not really a lot that you can change at the start. Various steps won’t occur until you have decided to make an offer.
These steps include having the property survey undertaken, conveyancer searches, and your mortgage being offered offer.
Even though you are limited in those regards, you may still be able to decrease the time between making an offer and the exchange of contracts. Here are some of the ways you can do this:
Additionally, here are some other tips and tricks that could potentially help you out and give you some additional security before the point of exchanging contracts with the seller.
First of all, make sure that you ask the seller to take the property you’re looking to buy off the market, as this will lower the chance of someone else seeing in and swooping in with an irresistible offer.
The property owner has no obligation to agree to this, though it is commonplace for many homeowners to agree to this request out of respect, especially if they’ve struggled getting offers on their property as well.
Second of all, you should definitely research your options for putting in place a Lock-in-Agreement that will see the seller put up a small deposit of their own, so that they have something to lose from taking another offer.
In this instance, if one side backs out of the deal altogether, the other side will take their deposit. Sorting this out can be a little costly on the legal front, but for that added security may well be worth it.
Finally, you may have the potential option to take out insurance in order to protect yourself against the act of gazumping. These policies agree that you will get a lump sum pay out in the event of you being gazumped.
When you’re an inexperienced First-Time Buyer in Sunderland who has never bought a property before, the process can be quite a stressful one. Fortunately for you, the home buyer, it doesn’t have to be that way.
To help you make the most of your next house viewing and be as prepared as possible, we’ve put together a helpful and comprehensive list of questions that you could ask when buying a house as a first-time buyer in Sunderland.
You may want to have time to sit around and have a good long think about whether or not you want to buy a property before you fully commit to making a purchase. This is something that we completely understand, as it is one of, if not the biggest financial commitments you will ever make.
By finding out the amount of people that have asked questions about or have gone to see the house, you’ll be able to more accurately gain an idea of how much time you have to think, before you make any concrete choices.
Bearing this information in mind, if the property is regularly receiving interest from viewers, you need to be prepared to give an answer to the seller as soon as you can.
If the property you’re looking at purchasing is a part of a chain, this can also have an impact on your mortgage process.
Without an onward chain, something that could arise from either a new home, bereavement or emigration, chances are you’ll be able to move quicker, especially if you’re not a part of that chain yourself.
You’ll give yourself a lot more leverage as a buyer if you’re not a part of any chain, as you seller will recognise that you aren’t going to hold up the home buying process.
Make sure that you utilise this during property price negotiations to give yourself the advantage.
If you’re not going to be purchasing a new build property, you might find that the previous owner has left some appliances or “white goods” behind for you to make use of.
White goods is a term that generally includes things like washing machines, fridges or a freezer. Sometimes a previous homeowner may leave something like a shed behind.
This works out fantastically for buyers as it can save them a lot of time and money, though if you don’t want or need these items, you will have to figure out a way to get rid of them yourself.
If you are looking to purchase a new build property, there might be some additional features that you could have the option of adding into your property ahead of moving in.
When moving into an area that you don’t particularly know that well, it would be worth your time finding out what the neighbours are like.
We often find that a good or bad neighbour experience can oftentimes be a crucial part of whether or not you enjoy living in your new home.
On the flip side, if you instead are looking to move into a new home development, you and your neighbours will be the ones that create this new community.
Initially this can be prove to be quite a risky endeavour, as you’re putting all your faith in someone you’re yet to meet and get to know.
Depending on the location you’re moving to and the type of property you are in, running costs can differ greatly. It is recommended that you conduct some research ahead of time and ask plenty of questions prior to the purchase.
Look up council tax costs, along with how much you’ll potentially have to spend on average for utilities. You ca do this by checking online or speaking to the seller. You will need all of this information in order to correctly budget.
The direction that the house is facing will make a very big difference for a lot of people, depending on if you like to relax in your garden late on a summers evening or prefer to maybe read a good book in natural light.
If you’ve been looking at a few different properties, you may have noticed that houses with a south-facing property often come with a more premium price pay a sizable, more premium price, thanks in part to the property receiving a lot of sunlight throughout the day.
Once again you’ll find that this can also have quite the impact on your budget for purchasing a home. Some key things worth looking into for more information on include;
At some point during the home buying process, you’re going to have to start making negotiations with the seller. With this in mind, it’s important to ensure that you are as prepared as possible for making an offer on your desired property.
You will be able to find a lot more information about the topic of making an offer in our How to Make an Offer article. Once you’ve gotten yourself in a position where you are ready, you’ll be able to go ahead and make some offers.
It will also definitely be worth your time to have a chat with the seller or estate agent in order for you to determine what the seller may consider to be an offer that is too high or too low.
You should check whether or not any other offers have been made, so you know how popular the property is and how much time you have to work something out with the seller.
By setting aside a specific date on your calendar, you can plan ahead for various other jobs in advance, such as instructing a conveyancing solicitor, packing up your furniture and belongings for moving, and arranging a removal van that can move everything into your new home.
A County Court Judgment, commonly shortened to just CCJ, is a court order that can be issued to people residing in the UK if they owe money and have not been paying it off.
Being associated with a County Court Judgement can have a serious negative effect on your credit file, potentially reducing your chances of being accepted for a mortgage at any point in the future.
If you are at the point of having one of these whilst hoping for a mortgage, you will definitely appreciate the benefits of taking specialist mortgage advice in Sunderland.
We are very experienced in helping customers who have been dealing with CCJ mortgages, having come across a vast amount of these over our years in the mortgage industry. Contact us to have a chat with a member of our dedicated team and we will see how we are able to help.
When applying for a mortgage with a CCJ, your mortgage advisor in Sunderland will want to take a closer a look at a handful of things before they proceed. These include;
???? The amount of CCJ’s that are currently registered to your name.
???? The value of the CCJ attached to you name.
???? The date that the CCJ was registered.
???? Whether or not the CCJ’s are settled or unsettled.
???? How much deposit you have saved for a property.
If you have regular payments you’re expected to keep up and fail to pay them back, you will be issued a CCJ. This applies to anything from a small loan to something as big as your mortgage payments. A CCJ can really harm your credit score.
When a CCJ is given to you, typically there will be a 30-day period in which you need to pay it off (this is called a satisfied CCJ). If you do meet this deadline, the CCJ can possibly be removed from your credit file. On the flip side, if you fail to meet this payment, your CCJ will stay on your records for 6 years (known as an unsatisfied CCJ).
Though it may be challenging, yes it may be possible. By enlisting the services of a reputable and hard working mortgage broker in Sunderland like ourselves, you may be able to obtain a mortgage with a CCJ when you otherwise might not have been able to.
If the CCJ has been given out within a recent time frame, it may be a little more complicated trying to obtain a mortgage. For the most part, depending on how much is left to pay off on your CCJ and how long it has been since that CCJ was issued, you may have a increased likelihood of being accepted for a mortgage.
We have a large panel of various different specialist mortgage lenders, each with their own unique lending criteria relating to CCJs and the amount of deposit needed. Your dedicated advisor will have an in-depth knowledge of this lending criteria, using it to recommend the best mortgage for your circumstances.
Having a CCJ linked with your credit file means that lenders will want to know more about the CCJ before they proceed. They will look for any underlying issues like potentially owing money to other lenders, the effect that your financial position could have on your potential new home and how you manage your finances in general.
Getting accepted for a mortgage whilst still having a CCJ in tow may be considerably more difficult than it would otherwise be, but that’s not to say it’s impossible. With the help of a mortgage broker in Sunderland, careful planning and the taking of steps to improve your credit score, it may still be an achievable target for you.
Though a difficult task, if you are able to provide enough sufficient evidence, you may be able to get your CCJ removed from your credit records.
If you feel like a CCJ was added to your name by mistake, you do have the ability to ask that the court to reopen the case. This does come with it’s own costs, though if you are able to get it removed, it will be a huge benefit for you down the line.
In order to appeal a CCJ, you will need to fill out an N244 form and send that off to the court. If the case does reopen and the court deems the CCJ wrongly imposed, they will remove the CCJ from the register and have your name cleared.
Once you have reached the 6 year point of the issue date, an unsatisfied CCJ will be removed from your credit file. Like we touched upon previously, the further away you are from the CCJ issue date, the more likely it is that you’ll obtain a mortgage.
It is also worth noting that if the debt hasn’t been settled within the 6 years of the CCJ being issued, your credit score can be negatively impacted, potentially harming your chances of meeting lender criteria in the future.
Lender confidence will also go up if you manage to pay off a CCJ within a short amount of time. Each lender is different though and will approach applicant CCJs in a different way to how another would. In some cases, a lender may not even be willing to work with you at all.
The most likely course of action you’ll need to take, is to approach a specialist mortgage lender in order to secure a mortgage with a CCJ. If you’re lucky though, you might find a high street lender who is a little more lenient than others.
For you to get back on track with your credit score, you will definitely benefit from the mortgage advice service we provide. Sometimes you need mortgage broker who is specialised in working with bad credit to help guide you back onto the right path.
You will need to make sure that you are up-to-date with your monthly mortgage payments and current financial commitments. Of course your CCJ is a big part of this and you’ll have to keep that up over the 6 years as well.
Even if you manage to pay off your CCJ within the 30-day window, you should still be careful regarding your finances so that you can make sure that it doesn’t happen again, as multiple CCJs can cause further harm to your credit file.
If you would like to take a look at more free mortgage tips covering the topic of how to improve your credit score in Sunderland, feel free to check out our guides section. Alternatively, get in touch with a trusted specialist mortgage advisor in Sunderland today and we’ll get the ball rolling on your process.
In the aftermath of the credit crunch back in 2008, the government decided to bring in a back-up, in a bid to try and give a boost to the mortgage market once again.
They introduced new methods of helping first time buyers find their footing on the property ladder, with these being called Help to Buy Mortgage Schemes.
There are a wide variety of different Help to Buy Schemes available. Some of those you may match up with, whilst others may not be right for you.
Here we have compiled a list of the Help to Buy Schemes available, with a few more government schemes that could be useful for you.
The Help to Buy Equity Loan is the most commonly heard of and by far the most popular of the schemes. If you are an inexperienced first time buyer in Sunderland and are looking for a boost to get the ball rolling on your mortgage process, this could be the mortgage scheme for you.
Let’s look at the facts. First of all, to access this scheme, you have to be first time buyer and be buying a new-build property, not an older property. You will also be required to have a minimum of a 5% deposit.
For this scheme to work, you’ll have to put down that 5% deposit you have saved up, potentially more if you have the ability to do so. From that point, the government will provide you with a loan of up to 20%, giving a total of a 25% deposit.
This always works within the 25% total, so if you have put down a 5% deposit, you will receive a loan of 20%. If you are able to save more and put down a 10% deposit, they will loan you an additional 15%. It depends on the amount you’re putting down up front.
Overall you’ll be left with a 75% mortgage to pay off, as well as the government equity loan to pay off as well. You’ll get a maximum of 5 years to pay off this equity loan without any added interest.
If you aren’t able to pay it off by the 5-year cut off point, interest will start building up on the amount of the loan that is left for you to pay off. This interest rate will start at 1.75%.
As a trusted and knowledgeable mortgage broker in Sunderland, we know that balancing between your mortgage payments and the equity loan payments can be quite a difficult task.
There are ways that you can get around this. As an example of this, sometimes you may be able to remortgage as a means of raising capital for this loan, however, this will also increase your monthly mortgage payments.
The Help to Buy Shared Ownership Scheme was introduced as a means of allowing applicants to purchase a percentage of a property they’ve had their eyes on and then pay back the rest as monthly rent payments.
The percentage amount of the property that you will generally own has to be between 25-75%, though on some properties this can potentially be 10%.
The remaining percentage will probably be owned by the local council or housing association. When you have more disposable income, you may be able to increase the amount you own at a later date.
The way that your payments work is that you be paying a monthly rental cost alongside your mortgage. So you’ll basically be paying 100% of the ground rent and service charges that are on the property. This will still apply, even if your share is the minimum amount.
The Armed Forces Help to Buy Scheme was brought into the mortgage world back in 2014, hot on the heels of the Help to Buy Equity Loan Scheme.
This scheme had a similar concept, though was focused on one target market, that being members of the armed forces looking for assistance in obtaining a mortgage.
If you happen to be a right fit for the criteria of this scheme, then it could be a great option for you. The government has now extended the deadline/review date of the Armed Forces Help to Buy Scheme all the way back to December 2022.
We are really hoping that it stays around, as the scheme is a such a helpful tool for existing armed forces members who need that extra financial boost to find their footing on the property ladder.
The Lifetime ISA is often a scheme that people leave out of the conversation. Whilst granted, it’s not a go-to scheme for everyone, it’s still very useful to have some initial knowledge on it as it could be a difference maker in helping you secure a property as a first time buyer in Sunderland.
A Lifetime ISA is pretty much a savings account where your money can grow tax-free. The government will also give a top-up to your savings by an additional 25%. This means that if you meet the £4,000 maximum amount, you will find yourself with a nice £1,000 bonus.
You will have to pass certain criteria in order to be able to utilise the Lifetime ISA Scheme. All the necessary information can be found on the government Lifetime ISA website.
If you’ve been thinking about taking that step onto the property ladder, you may be wondering whether or not to use the assistance of a mortgage broker in Sunderland. We of course believe that our service is incredibly beneficial, especially for first-time buyers in Sunderland.
Despite this, we felt it appropriate to give a balanced overview of the pros and cons of coming to a mortgage broker in Sunderland, compared to direct to a mortgage lender.
People tend to think that they are more likely to save money by not using the services of a mortgage broker. It can seem a lot more cost-effective to just do everything by yourself.
With that in mind, you may be one of those who prefer going directly to the high street mortgage lender. Another reason why people used to prefer going to the bank directly, was that people felt their bank manager knew their finances inside and out, although this changed when credit scoring was brought into the mix.
There is also truth to the claim that some lenders have additional exclusive mortgage products only for the people who directly obtain a mortgage. The main intention behind such ideas is to attract customers away from the services of a mortgage broker.
Ultimately, it is a good way for them to spread the business. The interesting part is that it is arguably just as enticing to speak with a mortgage broker in Sunderland as well. You’ll find that some mortgage offers can only be obtained through a mortgage broker.
From 2014 onward, lenders were no longer able to sell mortgages to anyone on a non-advised basis. At that time, it was a common occurrence for non-advisors to forcefully advise their bank customers, meaning they’ll have had no benefits from consumer protection. Speaking to a professional mortgage advisor in Sunderland will allow those benefits.
It is also important to remember that taking an appointment with a bank can sometimes take months to try and get yourself booked in for. A mortgage broker in Sunderland is often able to get you booked in within the same week, usually within that same day.
These kinds of issues is why the importance of mortgage brokers has grown and changed the public perception over time. More and more applicants rely on the mortgage brokers than before for help with their mortgage process.
There is now a lot more trust for the mortgage brokers in Sunderland, who are typically able to offer their mortgage advice services within the same day. Our dedicated team are always ready to help you, so Get in Touch and we will put you with an experienced mortgage advisor in Sunderland, as soon as possible.
You might be wondering what exactly causes some of the mortgage applications to be more difficult than many applicants expect them to be. Here are some of examples of this:
In years gone by, it was a lot easier for mortgage lenders to get ahead of their other competitors by laying out more enticing offers than the others have. Times have changed and it’s now more than the deals, it’s the criteria, that differentiates between the lenders.
To make everything easier for you, you should speak with an experienced mortgage broker in Sunderland and see if they have come across a similar situation in the past or not, as they may be able to utilise their knowledge from that to help you through yours.
After undertaking lots research and working very hard, a dedicated mortgage broker will hopefully be able to guide you through your journey and be able to recommend the most suitable mortgage for your personal circumstances.
Even if your mortgage application seems rather simple, it may still be beneficial to use the services of an experienced and knowledgeable mortgage broker, as we will work hard to get the best deal we can for you.
We have a professional and trusted mortgage advice team that will be able to provide guidance on other services such as solicitors. By getting in touch with us, you will also be updated you about the surveys and protection information that will be available to you.
A key feature of our service that we love to shout about, is how we’re more quicker and responsive compared to the other mortgage brokers.
One of the biggest reasons why customers tend to require help, is that everyone nowadays is very busy and needs someone to take the weight off their shoulders, doing the hard work for them.
Our dedicated and loyal mortgage advisors in Sunderland will do everything they can to make sure the process goes smoothly for you.
If you are ready to chat with a dedicated advisor about your mortgage plans, please Get in Touch with a mortgage broker in Sunderland. We are available from early until late, all throughout the week, to help you find the perfect mortgage deal.
On an overall basis, the mortgage process can often come across as quite surprising and applicants can expect to experience their fair share of both ups and downs. Some applicants may receive a quick and easy process whereas others may find it a lot more challenging trying to reach mortgage completion.
Regardless, once you have secured your first property, moved in and lived there for almost the entirety of your term, you will eventually reach a point where you have to make some choices from which path to take next. First of all, you could have the option to sell your current home and move into a new home.
Alternatively, if you feel like you’ve already found the home you want to stay in for the rest of your life, you may look to remortgage for home improvements. Common choices for this include to fund either an extension or conversion.
In this article, we are going to take a look on remortgaging and the various reasons why people may look to take out a remortgage in Sunderland.
A remortgage is where you take out a new mortgage to pay off the mortgage you already have. There are lots of different options to choose from at the point of remortgage, it’s entirely your choice.
As a general rule of thumb, you will take out a remortgage each time you reach the end of your fixed mortgage term. If you opt to not take out a remortgage, you may find that you possibly fall straight onto your lender’s standard variable rate of interest, which will probably be more costly than the rate you’re currently on.
The mortgage deal that you’re on initially will likely last for near 2-5 years. As touched upon previously, if you don’t remortgage, you will move onto your lender’s SVR.
Sometimes, their own rates can be higher than that of a tracker mortgages (track the Bank of England’s base rate), so in the long run this could cost you more than you would otherwise need to pay.
If your mortgage term ends, you may also find yourself falling onto a tracker mortgage. The interest rates of a tracker mortgage will go up and down depending on how the current United Kingdom economy is performing.
As an example of this, during the coronavirus pandemic (March 2020), the Bank of England’s interest rate was much lower than it usually is, as the economy wasn’t performing at it’s best. Over time, the economy recovered, causing the interest rates to rise once again.
It’s reasons like this why people often remortgage to find themselves a much better interest rate. Homeowners look to find themselves a better interest rate in a bid to lower their monthly mortgage repayments.
Rather than moving home in Sunderland, a lot of homeowners look to make modifications to their existing home, so that they can create more space through either a home extension or loft/room conversion. Some will also remortgage to fund other smaller home improvements such as doing up the kitchen or living room.
The way that this process will work, is when you take out a new mortgage product, the costs for any home improvements will be incorporated into your mortgage. This means that your monthly payments and mortgage term will likely increase.
If you already are wholly fond of the house that you have, making improvements over moving could save you a lot of money. It can potentially be easier, less stressy and provide more benefits in doing so, that the stress and cost of moving home.
As a long standing mortgage broker in Sunderland, we’ve regularly seen mortgage applicants that have realised further down the line that they would prefer a different product, however, they are already mid-way through their existing term.
It might just be that they are wanting a more flexible product that will allow them to reduce their mortgage term. Though this could mean a monthly mortgage payment increase, it could mean their mortgage term will decrease.
A flexible mortgage could give you the option to overpay your mortgage payments do that you can pay it off quicker. Usually, people choose to remortgage if they’ve maybe had a pay increase or been given a large lump sum of money, i.e., through being made redundant at work.
Some people may even want to keep the same monthly payments and still stay on their current base rate. When this is the case, you may have the option to remortgage for a term extension.
As a homeowner, it is likely you will have some equity built up inside of your home. You can turn this equity into cash, which is why people often remortgage to release equity.
The amount of equity that will be in your home can be calculated by taking away the remaining amount on the mortgage from the value of the property. A portion of the amount that is remaining can be taken out and used for whatever you’d like (within reason).
It’s up to you what you spend this money on. As mentioned, some use it for home improvements, others use it for a deposit for another property (common with buy to let landlords) and some use it for paying off car loans or taking a holiday. It’s entirely your choice.
You can also release equity through taking out a lifetime mortgage. This is often targeted at older homeowners who are looking to release some extra funding for their living circumstances.
Firstly, debt consolidation is considered a very specialist subject, so we would highly suggest that you speak with a mortgage advisor in Sunderland before making any sudden decisions.
Consolidating debts means you will be incorporating unsecured debt into your mortgage. Doing this will increase your mortgage payments and can also increase your mortgage term too.
All lenders have a different perspective when it comes to consolidating debts into a mortgage. Some lenders are fine with it and some don’t have it as an option. Lenders often don’t allow it, as you are placing existing unsecured debt into a secured asset.
This means that if for one reason or another you can’t meet your mortgage payments and start to accrue any debt, your property is repossessed. In doing this, the lender will lose out on money as the debt you have is now secured within the property.
The subject can be quite difficult and is something that you should get specialist help for. For debt consolidation and remortgage advice in Sunderland, you should contact our excellent mortgage team, taking advantage of the free mortgage appointment we offer.
Having now read about the various reasons why people may look to remortgage and how they work, maybe you think it’s time to start looking at arranging your remortgage?
Whether you’re looking to remortgage for better rates, for home improvements, for a more flexible term, to release equity, to consolidate your debts into your mortgage or for something else we haven’t mentioned here, one of our dedicated mortgage advisors in Sunderland will have likely had experience in helping someone remortgage for that reason before.
If you would like to have a chat with a remortgage advisor in Sunderland about remortgaging your property, feel free to give us a call and speak to a member of our team. We will be more than happy to try and help you through the remortgage process and get back to life as normal.