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What is Gazumping & What Should I Be Aware Of?

What is Gazumping? | MoneymanTV

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.

How does gazumping happen?

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.

Ways to Prevent Gazumping

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:

  • Research and find yourself a conveyancing solicitor and surveyor ahead of the process.
  • Act quickly and efficiently at each step of your journey, providing all the relevant information that the different parties need to move forward.
  • Make sure that you obtain a mortgage agreement in principle in advance.

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.

9 Questions to Ask When Buying A House in Sunderland

First Time Buyer Mortgage Advice in Sunderland

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.

The 9 most common questions:

1. How much interest has there been in the property/development?

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.

2. Is there a property chain?

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.

3. What’s included in the sale?

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.

4. What are the neighbours like?

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.

5. How much does it cost to run?

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.

6. Which way does the house face?

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.

7. How much work will be required after moving in?

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;

  • Improving energy efficiency
  • Changing the décor
  • Addressing damp problems

8. Are you open to offers?

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.

9. When can we move in?

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.

Moving Home Mortgage Advice in Sunderland

Can I Get a Mortgage with a CCJ?

Bad Credit Mortgage Advice in Sunderland

Can I get a Mortgage with a CCJ? | MoneymanTV

CCJ Mortgage Advice in Sunderland

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.

How do you get a County Court Judgement (CCJ)?

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).

Can I still get a mortgage with a 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.

Can I dispute a CCJ?

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.

Does the date of my CCJ make much of a difference?

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.

How can I rebuild my credit score after receiving a CCJ?

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.

The Pros & Cons Of Using A Mortgage Broker In Sunderland

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.

What are the pros & cons of using a mortgage broker?

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.

Handling Difficult Cases

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: 

  • The deposit source is mixed that contains both gifts as well as the savings 
  • Zero hours contracts of the contract workers
  • They want to keep their current house and want to buy another 
  • They are self-employed and the income is not fixed 
  • The applicant has a poor credit history
  • And the most important is affordability 

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.

Responsive Service

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.

Obtaining an Up-to-Date Credit Report in Sunderland

Credit report mortgage advice in Sunderland

Why get a credit report for my mortgage advisor in Sunderland?

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.

How to get your up to date credit report:

  • Follow the link and use Check My File. In doing so, you will receive a free 30-day trial to use their service, which you can cancel at any time. If you do not cancel in that time period, you will be charged £14.99 per month.
  • Once you have followed the link to their website, you will be greeted with a button that says ‘see your multi-agency credit report for free’. Proceed to click this button, enter relevant information and answer some security questions.
  • After you have logged in and are on your credit report, scroll down towards the bottom of the page where you will be given the option to ‘Download Printable Version’. This will then download a local copy of your credit report to the device that you are using to access their service, i.e., your mobile phone storage.
  • Your downloadable PDF will have tightened security, being password protected by your 6-figure date of birth ‘DDMMYY’.
  • Now that you have downloaded this, please send the credit report to enquiries@ukmoneyman.com, along with your date of birth and it will be reviewed by one of our mortgage advisors in Sunderland.
Credit Report Sunderland

What happens when I send my credit report to a mortgage broker in Sunderland?

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.  

Different Ways to Improve Your Credit Score in Sunderland

How to improve your credit score? | MoneymanTV

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.

Credit reference agencies in the UK

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:

Avoid unnecessary credit searches:

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.

Check that you are on the voter’s roll

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.

Don’t run close to your maximum limit

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.

Check your address history is keyed correctly:

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.

Remove financial links to others

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.

How much deposit do I need to buy a house in Sunderland?

How Much Deposit Do I Need To Buy A Home? | MoneymanTV

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.

Is it better to put down more than 5% deposit for a mortgage?

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%.

Can I take out a personal loan for the deposit?

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.

Do lenders accept gifted deposits for a mortgage?

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!

Evidencing the deposit

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.

Help to buy equity loan and new build mortgages

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.

Buying as a sitting tenant or buying from a family member – Do I need a deposit?

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.

How Long Should I Fix My Mortgage For In Sunderland?

Fixed-Rate Mortgage Explained | MoneymanTV

If you need to know precisely how much your mortgage payment will be, we recommend you should take out a fixed-rate mortgage. The longer you settle for, the higher the rate becomes.

Which is the Cheapest Fixed Rate Mortgage?

If you are looking at finding the cheapest possible fixed-rate mortgage, then a two year fixed rate might be right for you. The payments will be low, but on the downside, two years comes around quickly, and it won’t be long before you have to look for a new deal again.  However, if interest rates go up in the meantime, then you may be faced with higher payments at renewal.

Should I fix my mortgage for five years?

If you don’t like the hassle of applying for new mortgages all the time, then a five year fixed rate would be better. Your payments would then be stable for a much more extended period. Five year fixed rates are more expensive than two or 3-year deals. A potential negative would be if interest rates fell during the fixed-rate period, then you would not benefit from a reduction in monthly payments.

Should I take out a Long Term Fixed Rate Mortgage?

While two years and five year fixed rates are the most popular, and you can settle for longer. Some Lenders offer seven or 10-year fixed-rate mortgages.

These long term fixed-rate mortgages have never been massively popular in the UK. Perhaps we feel that much can change in a decade and we don’t want to get hooked into a deal we can’t get escape.

If your circumstances change then, it can cost you money to repay your mortgage early. In any case, an Early Repayment Charge (ERC). The ERC gets calculated as a percentage of what you owe. For example, if you settle a £100,000 mortgage early and the early repayment charge is 2%, then you would incur a £2,000 penalty for breaking the contract.

It’s usually a mistake for the customer to think about “beating the system” or predicting what will happen to interest rates in the future. When selecting how long to fix your mortgage for, focus on your situation. For example:

  • Are you likely to move house again soon?
  • Will you be looking to pay a lump sum off the mortgage?
  • Are you looking to carry out home improvements that might give you a lower loan to value at the point of remortgage?

We strongly recommend you also avoid chasing “headline” deals. The lowest rates often come with high arrangement fees which some customers are keen to avoid.

Top 5 Mortgage Hurdles in Sunderland

Problems Faced When Obtaining a Mortgage in Sunderland 

For First Time Buyers in Sunderland hurdles in mortgage, acquisition is something often faced by lots of customers, and they are not impossible to deal with either. Here is a list of 5 common problems people may encounter when looking to obtain a mortgage in Sunderland. 

Childcare Fees  

Childcare fees are not a reason per se for a mortgage to be turned down, rather they tend to reduce the amount a mortgage can offer.

One thing that needs to be noticed is that when parents or guardians return to work and pay for childcare, they have to monthly dedicate hundreds of pounds. Lenders take them as a liability similar to car loans.

If childcare fees are not to be paid, and still the income is low, the guardian or parents might still not get as much amount as other applicants. However, this benefits by being considered as tax credits.

If you seek mortgage advice in Sunderland, you will come to know that such lenders exist who don’t count childcare fees as outgoing funds, resulting in higher chances of mortgage acquisition. 

Divorce and Separation 

If things don’t work out in a relationship and you decide to go for separation or divorce, things tend to get tough when it comes to your monthly mortgage repayments.

Normally we get these three questions when people seek mortgage advice in Sunderland: 

  • Can I pay my mortgage without my ex’s involvement?
  • Can my ex pay the mortgage without my involvement?
  • Is it possible to have 2 mortgages? 

The answer to all of the above can be yes, but you will need expert Mortgage Advice in Sunderland. If you end up receiving maintenance, this can sometimes get used as part of the assessable income for a mortgage.

Benefit Income

You would be happy to know that almost all types of benefit incomes are considered as incomes and include pension or eligibility for pension, disability benefits, working tax credits, and child tax credit.

To take advantage of such opportunities, all you need is to seek out mortgage advice in Sunderland and you will be good to go. 

Starting a New Job – Can I get a Mortgage?

This one comes up a lot, but it is usually easy enough. Some Lenders need you to have been in work continuously for a certain period, but others don’t. You can even get a mortgage if this is your first job. If you are due to start a new career soon, then you may be able to get a mortgage if you have a signed contract and job offer letter.

Gaps in employment can be a problem with some Lenders. Probationary periods tend to be ok, in any case.

Proving your Deposit

Anit-Money Laundering precautions are pretty strict these days. All Lenders will need you to evidence your deposit, and you will get asked to prove where the money came from. Your Solicitor and the Estate Agent you are buying from may ask you for this too.

Cash is a big no-no. Any significant cash deposits into your Bank will question, and your application may get rejected.

It is possible, in fact, regular, for some or all of the deposit to come from a gift. The person gifting you the money will need to confirm in writing that it is a gift, not a loan.

All the content provided above is for reference purposes only, and does not constitute mortgage advice. 

Mortgage Advice in Sunderland

Debt Consolidation Remortgage Advice in Sunderland

Mortgage Advice in Sunderland

Unsecured credit and consolidation are not things to be taken lightly. We recommend you contact us and speak to one of our experienced Mortgage Advisor in Sunderland and review all possible options before finalising the process.

Is consolidating debt a bad thing?

When looking at the bigger picture, you will usually pay back more by integrating unused credit into your mortgage. Although your monthly payments will most likely be lower, and this is the main aim for most people.

It is essential to realize that you are also taking the risk of securing debt against your home. If payments are not kept up to speed. Then you’re putting yourself in the situation where your home will be repossessed. It is not the same scenario as just missing payments on loans or credit cards.

Why do people run up large credit card bills?

For many years, obtaining credit has sometimes been too easy as it is much faster for people to borrow money than save up. But it is a tough situation because while some people have invested Home Improvements in Sunderland. Which will be raising the value of their property, the debt which they have obtained will be still accumulating interest. Not everyone can qualify for zero percent credit card transfers.

What are the other options?

Before consolidating credit it is wise to do a budget planner to help you see where your money is going each month. There may be some luxuries that can benefit you in the long run. If you put aside for a while, such as takeaways and expensive coffees.

A personal loan could be an answer to consolidate your credit. A loan will at least have a set end date unlike credit cards, and due to a personal loan typically being taken out over a shorter period would mean that you pay back less interest.

Family members would also be worth speaking to as an alternative option. This can be an embarrassing predicament for someone to reach out and ask for help with financial issues but is often one of the more comfortable options.

If these options have already been utilized that a debt consolidation mortgage may be the right way to go. With it being a way for you to reduce your monthly payments if you are struggling to save.

Sunderlandmoneyman.com & Sunderlandmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited registered in England, registered number 6789312 and registered office 10 Consort Court, Hull, HU9 1PU.

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