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.
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.
You’ll find when applying for credit, the fewer addresses that you have tied to your name and accounts the better it will be for your credit score. Because of this, it will also be better for when you apply for a mortgage.
A lot of modern First-Time Buyers in Sunderland and Home Movers in Sunderland feel like they are gaining a deeper understanding of how credit scores work and have a tendency to utilise their previous and current addresses to their advantage.
We find it’s most commonly seen in applicants who may have possibly moved out of their parents home into a new rented accommodation, but they think it is a great idea to leave their bank statements, credit card and electoral roll information registered at their previous address.
Whilst it might sound like a preferable route for some people to take, in all honesty this is a very flawed strategy. No matter if you think you’ll get away with it, any time you have moved home to a new address, there will be some record of it somewhere on your credit report.
This could be showing from a delivery address you have set up when you have ordered something online, to any online home or car insurance searches you have undertaken, as well as various other things that may be tied to an address.
We would say that without any shadow of a doubt, the best strategy for someone looking at their options for buying a home and taking out a mortgage, is to get all of your accounts, cards, accounts and electoral roll changed over to your new address.
Make sure all your addresses are up-to-date, accurate and consistent with one another.
When you update your address on your credit file and electoral roll, it is important that you double-check the date you moved in and the date that you moved out. If you make any mistakes with either of these dates, it can appear to the lender like you are living in two places at the same time.
Correcting your addresses and dates is a more open and honest way of trying to apply for a mortgage with a lender and will definitely work in your favour.
There are other helpful tips that first-time buyers in Sunderland might wish to use alongside keeping your address up-to-date.
One of these includes maintaining your bank accounts well. Try to avoid unnecessary charges and limit any gambling if you can. This will show the mortgage lender that you are responsible and can manage your money well.
Another very popular and useful option is to use a gifted deposit. By utilising a gift from a family member or friend, you reduce some of the financial burden. If they gift you more than the minimum 5% deposit, you open yourself up to better rates and mortgage deals.
We always recommend obtaining an up-to-date credit report, so you can see where you stand financially. To learn more, please see out article on Obtaining an Up-to-Date Credit Report.
Perhaps you have decided it’s time to change where you are currently living and you are looking at your options to Move House in Sunderland.
In order make sure you’re happy with your choice down the line, here are the top ten factors to take into account when looking for a new place to live in Sunderland.
When it comes to deciding where you would like to live, it’s important to work out what exactly you would prefer. A house may look nice and have the size you need, but what is the environment like, the local area?
Some people prefer the thriving atmosphere of the big city, whereas some prefer the scenic landscape. There are both things to like and dislike about these lifestyles, but you need to decide which is the right one for you.
Whether you are regularly commuting for work or enjoy spending your weekends travelling to various destinations, transport links can be a crucial factor for a lot of people.
Make sure that you take a look into the transport links available and how much it is going to cost you to get around.
If you have any children or are making plans for this in the future, then being within the catchment zone of a high school, or a variety of schools to choose from is something you might see as a higher priority.
Local authority websites and school league tables will be great when it comes to researching which ones might be the best schools in the area.
Making a list of which facilities are essential, those that would just be nice to have, and finally, those that aren’t too important will help you filter which properties are worth chasing down.
Maybe you want a local play park or open area for your children. Some prefer to have a gym on their route home from work. Others will want a bank within walking distance.
The closeness to your friends and family and family is something else you might consider. Would you like to be close enough to help them out, or will you be needing any help from them?
Some have regular home visits, house parties, family gatherings and more, whereas others like their own space and prefer to visit their family and friends sporadically.
Value for money will be different depending on the location you’re looking at buying in. If you’re looking to get the most for your money, then it could be worth looking for a cheaper home.
In order to get there, however, this might mean having to compromise on some of the other factors when deciding where you’re going to live.
A community can often be a factor that makes or break your experience of residing within a neighborhood. If you want a small, close-knit neighborhood, then take a look into the local area and speak with the estate agents.
You might find some local area communities even have a dedicated website or Facebook group they share with one another. If community is not too important to you, but you still want somewhere quiet, then maybe look online for the crime rates of the area.
If you’re moving because of your career, then you will need to think about where you are working, compared to where you are looking to live.
If you’ll be job hunting after you move home, do some basic research beforehand to see if there are any business parks nearby or any big time employers who you could approach for a job.
There are various different types of property available on the market nowadays. Whether that be an end terrace with a desirable garden, or a modern, more urban based apartment, make sure you look at this to find out the type of property you would prefer to have.
If you’re planning to stay within your new home for a good amount of time, then it’s worth researching if any builders, big companies or the council have any proposed investment in the area.
If there is any, you should make sure this is going to benefit you and the kind of life that you would like. If you prefer a quiet environment and there’s a new housing development planned nearby, will this affect the life you’re looking to have?
To be able to recommend the most appropriate mortgage for you based on the circumstances you’re currently in, it is of vital importance that our mortgage advisors gain a complete understanding of your financial situation. As a mortgage broker in Sunderland, the primary way we believe this can be achieved is by obtaining an up to date copy of your credit report.
We personally would highly recommend using Check My File to do this, as they are able to bring in your data from 4 different credit reference agencies, giving you a more accurate and detailed look at your personal credit profile. It’s especially handy, as in some instances, the data that is held by one agency, may differ to the data from another.
When it comes to sending your credit report by email, the steps necessary will be a bit different depending on what device and email client you are using, e.g., Android, iPhone or Desktop & Gmail, Hotmail or Yahoo, etc.
A member of our dedicated mortgage advice team in Sunderland will review your credit report, before they give you a call to discuss your mortgage plans in further detail.
As a mortgage broker in Sunderland with lots of experience across the industry, we have in-depth knowledge of lenders various criteria. Some of the lenders we work with are specialist lenders. Please take a look at our specialist mortgage advice in Sunderland page for more information on complex cases.
No matter if you are a first time buyer in Sunderland or looking to move home in Sunderland, we will use our knowledge and the information displayed in your credit report to work hard in finding the most appropriate mortgage deal for needs and personal circumstances.
A 95% mortgage is as simple as the name would suggest; you are borrowing against 95% of the price of a property, and then you are covering the remaining 5% with your deposit. An example of this is if you looked at buying a property that was worth £150,000 with a 95% mortgage, you would be putting down £7,500 as your deposit and borrow the remaining £142,500 from the lender.
Off the back of the March 2021 Budget, Boris Johnson announced a Mortgage Guarantee Scheme for mortgage lenders, making 95% mortgages more readily available from the bigger high street banks.
This is fantastic news for First-Time Buyers and Home Movers alike, as this scheme will continue running until December 2022. Certain terms and conditions will apply though, which is something your Mortgage Advisor in Sunderland will be able to look at, to see if you qualify.
All our customers who opt to Get in Touch will receive a free, no-obligation mortgage consultation where one of our dedicated mortgage advisors will be able to make a recommendation on the best possible route for you to take.
95% mortgages are usually accessible by both First-Time Buyers in Sunderland & those who are Moving Home in Sunderland. Whilst saving for a 5% deposit sounds like a pretty straightforward concept, you’ll still need to have an acceptable credit score and prove that you are able to afford your monthly mortgage repayments, in order to access a 95% mortgage.
A good credit score is essential in the process of obtaining any mortgage, especially a 95% mortgage. Things like paying any current credit commitments on time, ensuring your addresses are updated and checking that you’re on the voters roll, can all help with your credit score.
Affordability is another one that is important to take note of. By giving the lender details of your income and monthly outgoings (things like your bank statements will be necessary for this) and any pre-existing credit commitments, your lender will be able to get a general overview of whether or not you are able to afford this type of mortgage.
Nowadays we see lots of family members helping each other get onto the property ladder, especially parents looking to further their children’s lives. The way this usually happens is by gifting the person looking to find their home, the deposit required. Known through the industry as the “Bank of Mum & Dad, Gifted Deposits are only intended to be a gift, and not as a loan. The lender will need proof that this has been agreed, before it can be used towards your mortgage.
When looking for a 95% mortgage, you want to make sure you have the right type of mortgage. Each mortgage type works differently, with that choice allowing you to find one that is most appropriate for your personal and financial situation.
Some homeowners and home buyers prefer Fixed Rate or Tracker Mortgages, mortgage types which mean you either keep interest rates at a set amount for the term given or have your interest rates tracking the Bank of England base rates.
Alternatively, you might find that Interest-Only or a Repayment Mortgages are more your style. Interest-Only allows cheaper payments until you need to pay a lump sum at the end (mostly now used for Buy-to-Lets), whereas a Repayment mortgage (a normal mortgage if you’d like) means you’ll be paying interest and capital combined per month.
Seeing as a mortgage is such a large financial outgoing, you need to be prepared and need to be aware. You might find things like higher interest rates, remortgaging difficulties due to less equity and then negative equity all cropping up if you’re not.
There is no need to worry though, as all these can be avoided if you’re savvy enough with your process to begin with. The more deposit you put down for a property, the less risk the lender will see you as.
A larger deposit, of say 10-15%, would not only reduce the rates of interest by a noticeable amount, but would also give the property more equity and reduce the risk of negative equity, thanks in part to you borrowing less against the property.
So, whilst the risks may seem intimidating, planning ahead and saving for a bigger deposit to access something like a 90% or even an 85% mortgage will be a massive help in your mortgage journey and something you’ll be able to reap the rewards from in the future.
Any applicants like first-time buyers in Sunderland with a “good” credit score are more likely to get accepted a mortgage. Lenders study your application with a fine-tooth comb to ensure that you can afford to keep up your monthly mortgage payments.
Bear in mind; there’s no guarantee that you can obtain a mortgage. You see every lender has their own different lending criteria, and it’s not very confident that you will match every single one of them.
Each lender has devolved their way of deciding whether you match their criteria or not. You could compare the majority of them, but you also may not. It is your Mortgage Advisors’ job to try and find you a lender who has criteria matches.
Again, they will try and find the best deal for your circumstances. Whether your advisor is from your bank, the lender or a Mortgage Broker in Sunderland like us, they will try their best to match your mortgage needs
Going to a Mortgage Broker will allow you to Speak to a Mortgage Advisor in Sunderland who will try and find you the best deal possible based on your situation. You will always know what is going on and will continually be updated if anything changes or something comes up.
We are a devoted mortgage broker who’s here to help improve your credit score and help secure that perfect mortgage deal.
There are a handful of different credit reference agencies in Sunderland that you can go to; however, the most popular are Experian and Equifax. Before you make a decision. Research each agency as it is a possibility that some of them could be holding incorrect data and it could help you discover any inconsistencies.
Improving your credit score can be challenging, but here are a few more straightforward ways of going about it:
Making multiple credit searches could harm your credit score. Price comparison websites will also damage your score, so be extra careful. We also advise you to not apply for credit during the mortgage process as a lender may look at this and think that you are struggling financially.
It is a good thing in the long term though as it shows that you can pay recurring payments.
Another way to improve your credit score is by registering for the Electoral Roll. In the lender’s eyes, it shows stability which they want to see. When enrolling, you must spell your name correctly and set your address to your current one and not an old one.
If you are not registered, then you definitely should as it’s quick and easy to set up and it could help improve your credit score. Make sure everything is correct.
Maxing out your card each month is bound to reduce your credit score. The lender looks at your credit card statements to check whether you have paid off balances by the due date or not. If you are meeting due dates and have never exceeded overdraft limits.
Then a lender will see that you can manage your finances quite well and it could prove beneficial towards your application.
However, if you don’t manage your finances carefully, then the lender will believe that you don’t take payments seriously, hence making your chances of being accepted by them low.
We sometimes find that people who have moved house have not told their previous credit provider. It means that on their records, you still live in the other property.
So there are two separate addresses/properties linked with your name. Again, make sure you are on top of this as lenders don’t like to see your address history all mixed up.
Do you have a family member or ex-partner connected to your financial commitments?
You might not even know if you do, but it’s worth checking to be sure because you can’t get the economic association removed if the account is still live. If you are trying to remove any of these links. Then you should contact the credit reference agencies and make a request.
Applicants see credit scoring as being an unfair approach to accessing whether they can get a mortgage or not. Lenders disagree as this method provides a faster, fresher approach to the credit scoring system. It’s also a lot cheaper for them, and it gives always provides a result that they can trust.
If you want to get ahead of the game. You should send an up-to-date copy of your credit report to your Mortgage Advisor in Sunderland. Starting in advance will increase your chances of being accepted the first time. The more that your advisor knows about your financial situation, the better.
Also, there are still some lenders that will want to do the process the old-fashioned way and will prefer a manual approach. They will have specific rules that they stick by about the number of defaults and CCJ’s that they will allow.
We often see that First-Time Buyers in Sunderland may find themselves in competition with other First-Time Buyers. With this being the case, we always recommend that you put yourself in the best possible position to have any offers you make accepted.
A sad truth is that a cash buyer will always win! You can have everything you need, but if the seller can avoid the process by having the house bought outright, they’ll almost always take that option. This can be the case even if that cash buyer is offering slightly less.
Luckily for you and your property owning dreams, this is not a common occurrence. Sending the estate agent a copy of your Mortgage Agreement in Principle is your safest option to speed up your mortgage process.
By following this option, you may also find yourself one step ahead of other potential buyers who have yet to get their AIP arranged. An Agreement in Principle can be arranged and presented within the same day if your case is straightforward.
Firstly there may be a lot of back and forth negotiation to purchase a property. Be wary of your first offer! If it is accepted immediately, you have likely gone too high – No seller will turn down more money than they had planned for! It’s always a good idea to offer less than you’d be happy to pay, so you have some negotiating room. Estate agents like to push you to pay more, so that is something to look out for.
On top of this, if the seller is sticking to their original asking price, it is up to you whether or not you are willing to meet their asking price. If the property you are applying for has only recently been put on the market and negotiations with the estate agent are falling flat, then you may need to cut your losses and look for somewhere else.
Lastly, don’t worry about how high or low the asking price is. There are strong, reliable sites out there such as Zoopla and Rightmove, who draw their information from the Land Registry and can give you an accurate idea of how much a property in that area is actually worth. From time to time, you may see a house on the same street with a much lower price than the one you are looking at purchasing. There will be a specific reason that this house sold for less than the one you are after.
As part of our service as a mortgage broker in Sunderland, we offer expert mortgage advice regarding your offering strategy. We know that this process may be nerve-wracking. However, it can also be exciting, and we are here to help you through your mortgage journey. Get in touch and we will see how we are able to help you.
100-125% mortgages are a thing of the past now. The country seems to be in a more stable, secure financial state post-Credit Crunch and the property market is back in full swing.
With many more rules and regulations set in stone, mortgage lenders are now more confident when it comes to offering 95% mortgages.
95% deals aren’t the only ones available though, it can. The more deposit you have available to put towards a property, the less you have to pay back, and you open yourself up to more competitive interest rates.
Deposits also act as a safety net for mortgage lenders. The reality is, they need to be confident you can make your monthly repayments. If you don’t, they’re at a financial disadvantage. With a large enough deposit, lenders are able to retain some of their finances should difficulties arise.
Saving for a deposit is hard for a lot of people, we know this. The leap from renting to becoming a first-time buyer in Sunderland can be a tricky one to navigate. This is especially the case if you are already renting or have a family, as any potential savings would already be split amongst various home essentials.
As an experienced and knowledgeable mortgage broker in Sunderland, we regularly find many deposit related questions being asked. Here we answer these as best we can, in the hopes you will gain a better understanding of how deposits work regarding the home buying process.
Yes, it is! Larger deposits allow for improved interest rates. From here you possibly open yourself up to lower mortgage repayments per month, as you will also be borrowing less for your new home.
As touched on in the previous section, higher deposits put you at a lower risk the lender should things not go as planned, which really does work to your advantage. Products are offered in bands of 5%, with the highest and most expensive being 95%.
Though it doesn’t happen often, it has been known to crop up from time to time. However, this is considered by the lender as an additional credit commitment. Because of this, the lender will grant you a smaller mortgage than the one you might have initially planned for.
The majority of lenders would really rather you refrain from this option though, especially if you are looking to borrow 100% of the purchase price.
The majority of lenders, at least the ones we have worked with, have no problem at all with members of your family and sometimes friends too, gifting your deposit.
The one who is gifting must be able to confirm that it is 100% a gift and not something you’re required to pay back to them over time. For the purposes of anti-money laundering, they may also need to provide them with identification and proof of your funds.
Given the term “The Bank of Mum & Dad” amongst home buyers and lenders alike, gifted deposits are seen a true lifeline for those struggling to get onto the property ladder. In truth, the market would look completely different if it were not an option!
For Anti-Money Laundering purposes, all applicants are required to fully evidence their funds by providing bank statements to the lender. They like to take a look at how exactly additional funds have been obtained too. Recent large cash deposits in your account can sometimes be an issue for lenders.
If you have made a large sale lately, like sell your car, you will need to provide a receipt and be able to prove that the amount it sold for matches the deposit made in your bank account.
The longer these funds sit in your account, the less hassle this is for both you and the lender. Providing an audit trail for your deposit source can often be quite difficult for home buyers undergoing the mortgage process.
If you are planning to fund your deposit by selling your current, then your proof of deposit will be the Memorandum of Sale provided to you by the estate agent. These are documents that record the buyers’ interest in your property and the terms of sale you have both agreed on.
If you fall in the bracket for the government Help to Buy Scheme, you are still only required to have a minimum of 5% deposit. With 20% from the government equity loan, this will give a much needed boost to your deposit, taking it up to 25%. This allows you to access a lower rate mortgage.
It is important to remember though, that this is a loan, not a gift and you will need to pay it back whilst you are paying off your mortgage. Also, it is worth noting as well, is that this is interest-free for the first 5 years, after which the government will start adding interest to if not paid.
This all depends on personal circumstance, but no, you don’t necessarily need one. If the house has been genuinely discounted by the previous home owner, your lender may accept the discount as a means of deposit.
For example, if the property is worth £150,000 and you have been offered it for £130,000, they will take the £20,000 discount as a deposit. This works hand in hand with a Right to Buy from the local authority or private landlord.
Please note that the above information is for reference purposes only and should not be taken as personal financial or mortgage advice to an individual.
If you were aware of what a portable mortgage is it means that you can move the mortgage from one property to another without penalty. In any case, this can come in handy if you are planning on moving home in Sunderland and you are in the middle of a fixed rate deal because you may be able to avoid an early repayment charge.
Most high street mortgages that get offered are portable. A portable mortgage is an option. However, not all mortgages are portable. If you are with a specialist Lender, then you may not have the opportunity to port. The most natural solution to finding this out would be to call your Lender and enquire.
When porting is obtainable, some customers choose not to follow this road. It could be that your Lender will not lend you the extra money that will allow you to move to a new house. Additional funds offered might also be different rate to ones on the current deal. In any case, depending on the current agreement and existing deals available, we suggest that it is best to pay the early repayments charge and swap to a different Lender.
A sub-account is created and added onto the mortgage should it be ported and additional monies end up being on a different deal to the original one. In any case, this means that only one mortgage gets set up and one direct debit, but two different interest apply.
Sub-Accounts can be quite tricky products that can overlap with each other to get these back aligned at some point will mean one of the sub-accounts will have to drift onto the Lenders standard variable rate for some time.