Leasehold Houses in Sunderland

What is a Leasehold House?

Off the back of Help to Buy in Sunderland, many builders started selling houses on a leasehold basis when traditionally homes had always been freehold. Over time this became a debatable topic at which the Government felt the need to step in.  

Some of the country’s housebuilders got pointed the finger of putting profits before their social conscience while they are aware that they need to build homes for families they also have shareholders to answer.

Land Banking

The media had made it publicly known that there was a situation with land banking.

Land banking is a real estate investment scheme that involves buying large blocks of undeveloped land with a view to selling the land at a profit when it has been approved for development.

Thanks to consolidation, some builders have inherited land into their organisations which is on a leasehold basis.

It’s a debatable topic that they offer both leasehold and freehold properties for sale so that buyers can make an informed choice.

What About the People?

Many people had felt that the market had swayed much too far towards leasehold when it came to light how much profit the Builders had been making off the back of the leases.

Things came to a head when the Chief Executive of one of the UK’s most prominent Builders received a bonus of over £100m. At the time, this was one of the most substantial bonuses paid in corporate history.

Some Leasehold Homeowners were shocked when they were being quoted thousands of pounds in fees when they sought permission to make alterations to their homes. The fees were being charged by their Leasehold Management Companies.

Some of the annual ground rents were to double every ten years and owners could see that selling their home in the future once these increases have kicked in would be more difficult.

In Parliament

After notifying their MP’s and getting the subject debated in Parliament, the Government agreed that if you were buying a house (not a flat or apartment), then it is reasonable that you should own the freehold.

What Can You Do?

If you are in the situation of owning one of these houses and you didn’t realise if it was leasehold, then you should have been made aware. If you feel that the Solicitor acting for you did not give you the full facts about the lease you signed, you should re-contact them immediately to investigate why.

You can contact the freeholder at any time if you are interested in buying the freehold from them.

In Addition to Leaseholds, There is The Issue of Service Charges.

When Councils grant permission for Housebuilders to build on the land, they don’t always agree to adopt the common areas (such as grass verges) and roads.

That means that the upkeep of these areas needs to be outsourced, usually to a private company. The owners in the area then make a financial contribution to this maintenance work on top of their council tax. By the way, this can happen whether the house is leasehold or freehold.

Service Charges

The costs of the service charges can go up, which infuriates homeowners who are affected. Sometimes the residents in the area get together to form an association which might allow them to choose a different service provider.

If you are considering buying a leasehold property, take advice from your Solicitor regarding the lease. It’s straightforward to get carried away with the excitement of purchasing a home, but you also need to realise it’s a significant investment decision that you need to think about carefully.

What is a 95% Mortgage?

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. 

95% Mortgage Advice in Sunderland

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.

Can I get a 95% mortgage?

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.

Improving your credit score

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 

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.

Can my family help me get a 95% 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. 

How do I choose the right 95% 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.

How can a bigger deposit help with my mortgage? 

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. 

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

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?

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:

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.

Different Help to Buy Schemes in Sunderland

Help to Buy Mortgage Advice in Sunderland

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.

Help to Buy Shared Ownership Scheme

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.

Help to Buy Armed Forces Scheme

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. From 1 January 2023, The Forces Help to Buy Scheme will become an enduring policy, ensuring its availability to all service personnel now and in the future. 

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.

Bonus: Lifetime ISA

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.

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:

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.  

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: 

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.

Mortgages for Newly Qualified Teachers (NQT’s) in Sunderland

Newly Qualified Teacher Mortgage Advice in Sunderland

So you have passed all of your exams and have successfully achieved your goal of becoming a Newly Qualified Teacher. The next thing for you to do is to put your skills to use and find yourself a job that utilises your well deserved qualifications!

You may find that due to the nature of your new career, you will need to start taking a look at what your options are for moving home in Sunderland, if perhaps you currently have a home that is a bit further away than where your new place of work is situated.

Fairly soon you’ll find yourself on the hunt for somewhere else to live, potentially finding it difficult to balance both homeownership and finding your footing within your newfound teaching role.

You are not alone in this endeavour, however, as over the years we have helped lots of home buyers and homeowners who are under just as much stress in the same situation, needing someone to take on their mortgage whilst they keep their minds focused on their new career.

Newly Qualified Teacher Mortgages

It can be a little complicated trying to find a mortgage lender who is happy to offer a mortgage to a newly qualified teacher. The main reasons that issues tend to arise is either due to the fact that they don’t have work history to go off or because the contract is only a temporary one.

Even bearing these in mind, you do still have options out there if you’re looking to obtain a mortgage as a Newly Qualified Teacher. Our Mortgage Advice team have helped lots of customers with these over our time as a mortgage broker in Sunderland.

Every so often, you may come across some mortgage lenders who have preferrable deals specifically suited to people who are working within the public sector. The secret to finding success here, is making sure you go with the best mortgage lender for your circumstances, which in this case is generally the most difficult part of the mortgage process.

It is when situations like this arise, that our experienced mortgage advice team in Sunderland can search through thousands of mortgage deals on your behalf, working hard to find the perfect deal for your individual circumstances, with preferable rates.

What mortgages for NQT teachers may be available?

You should remember that whilst yes, the process may be challenging sometimes, you are not restricted altogether in the options that you may be able to take. Here are some of the mortgage types that we find are commonly associated with cases referring to Newly Qualified Teachers:

The lender may consider a few different factors as well when it comes to an NQT mortgage. There are mortgage lenders who will not need to look at previous employment, as well as allowing you to access up to a 95% LTV (loan-to-value). Depending on lender, a 12-month first contract may be considered as being the same as a permanent job role, as opposed to being seen as a temporary contract.

Last of all, you may find that there are some lenders out there who are willing to make a start on your mortgage prior to your start date, though this will require evidence of a signed contract and a confirmed start date. This can be very useful, as you could be ready to start making your first mortgage payments with your first lot of income from your new job by the point of mortgage completion.

How a Mortgage Advisor in Sunderland may Help

Our hardworking team of open & honest mortgage advice experts in Sunderland have a great deal of knowledge and experience of working in and amongst the world of mortgages, helping a large variety of home buyers with their mortgages.

There are many different perks to using a trusted Mortgage Broker in Sunderland. We aim to take the stress away, searching through thousands of unique mortgage deals of your behalf, suggesting potential conveyancing solicitors and doing so much more.

Find out what options are available to you as a home buyer, by booking yourself in online for a free mortgage appointment with one of our fantastic mortgage advisors in Sunderland, who will gather some initial information from you and guide you onto the next step in your mortgage journey.

Should I Overpay My Mortgage in Sunderland?

Mortgage Advice in Sunderland

The majority of mortgage lenders out there will allow their customers to make ‘over-payments’ on their mortgage. Overpaying on your mortgage will provide you with an opportunity to clear your mortgage debt quicker, saving money on interest payments.

The fact of the matter is, if you have the ability to overpay on your mortgage, you could potentially save yourself thousands of pounds. On top of that, you will clear your mortgage quicker and save money on the amount of interest that is paid overall.

Any experienced homeowner will know that overpaying, even if it’s only by a little, can make such a difference to your mortgage amount. The sooner you are able to start overpaying, the better it will be for you.

The only real downsides to overpaying your mortgage, is that if you are in your fixed or introductory period, you usually have a cap. Also, unlike an Offset Mortgage, it does not work like a savings account. This means you can’t withdraw anything you put in if you need it; your overpayments are locked in.

Whilst it is a great habit to get into, as an experienced Mortgage Broker in Sunderland, we know that a lot of homeowners cannot afford to make the extra mortgage payments. Generally the reason for this, is that life simply gets in the way of it. On one hand, we know that it’s probably in our best interest to overpay. On the other hand, look at all the other things we could be spending our money on!

Put Your Mortgage Plan Into Action

Right off the bat, part of the issue is making sure that you remember to make those overpayments. We know that the likelihood of something like that crossing your mind is pretty slim, perhaps only cropping up when your mortgage is due to end. At this point, you’ve missed out on a lot of the benefit of doing this.

So with that in mind, if you can relate to those circumstances and want to get ahead of the curve, to prepare yourself to overpay, what should you do?

Well first of all, you are going to want to make sure that your lender will allow overpayments. The majority of them will, but it’s always better to be certain in advance. You will also want to clarify that there are not any penalties or associated costs.

For the most part, you will be capped for up to 10% of your mortgage, without penalties, if you’re still in your fixed, discounted or introductory period. If you are beyond that, happen to be on a tracker mortgage or have gone onto the lenders Standard Variable Rate, usually you will have no limit and no penalties when it comes to overpaying.

How to Set Up Your Mortgage Overpayments

We would definitely recommended that if you are able to set up a standing order to overpay the lender each month, that you do so. The best practice would be to set it up so that the extra amount goes out on the same day as your monthly mortgage payment does.

For example, let’s say your payment goes out on the 1st of every month and is (if we round up for example purposes) £500 each month. Your wage has increased and you now have £75 extra disposable income per month. Set up the standing order for £75 to the mortgage lender, and have it go out on the 1st as well.

Doing so will get you into the habit of feeling like your mortgage balance is £575 per month anyway, and you’ll be able to budget the rest of your income accordingly.

If you’re not able to guarantee a set amount each month, you don’t just have to set up a standing order. Technology has advanced so much that these days, you could simply load up your banking app or online portal, and just transfer the amount in that you’d like.

Alternatively, for those who prefer to speak with a real person, you can also phone up your lender and make an overpayment with your debit card.

You’re Still In Control of Your Mortgage

Of course the big advantage for those setting up a standing order, is that you are in control. If you can’t afford to overpay that month, you can log into your online banking to pause that standing order until you’re able to overpay again, at which point you can resume it and carry on.

For those who are just paying as and when, it’s as simple as just not overpaying that month.

Even if you do have to stop the payments for a time, you have at least benefited from those additional payments up until that point. You have significantly reduced the amount of interest you will have to pay overall, and that can only be a positive.

Depending on your lender, if you have been overpaying for a long time, they may allow you to make a few reduced payments or even take a payment holiday. It is crucial to ask the lender before doing this though, as it could look bad on your credit report.

Book Your Free Mortgage Appointment in Sunderland

Regardless of if you are a first time buyer in Sunderland or you are going through a remortgage in Sunderland, overpaying your mortgage is an amazing habit to get yourself into. Who wouldn’t want to reduce their overall debt?

You don’t need to go too far with it either. Making some casual, affordable overpayments each month could actually mean knocking a year or two off your mortgage overall, so you’ll really notice the benefits!

If you have any further questions regarding this strategy or have another mortgage query that you would like to discuss, book your free mortgage appointment today. You can select a time and date that best suits you, subject to availability, and speak to a qualified Mortgage Advisor in Sunderland. We look forward to hearing from you!

Armed Forces Help to Buy Scheme Explained

Forces Help to Buy Mortgage Advice in Sunderland

If you happen to be a member of any type of military personnel, you are in luck!

When last reviewing the scheme, as of January 2023, The Forces Help to Buy Scheme will become an enduring policy, ensuring its availability to all service personnel now and in the future.

The current Help to Buy Scheme was made to function as a means of helping eligible military personnel in
getting onto the UK property ladder, with a bit of government assistance. It was introduced back in 2014 and has helped many of our nation’s heroes in finding a home of their own.

Though it has a great purpose and has done a lot of good in repaying those who have served for us, it was actually meant to finish back in 2019, though thankfully this was extended by the government.

Who Can Apply For Forces Help to Buy Scheme?

If you have served in the British military at any point previously and you match up with the criteria, you can use this incredible government scheme. The scheme allows you to borrow an amount that is up to half your annual salary (with a maximum of £25,000), without any further interest being added on.

Eligible applicants can use it to cover both the deposit for purchasing their first ever home, as well as to cover the costs of moving into a new home, if they are already a homeowner. One of the most favourable aspects of the Help to Buy Armed Forces Scheme is that home buyers will not need to have any current savings of their own in order to purchase a home with this scheme.

The Forces Help to Buy loan gives you the funds to cover anything on a property purchase, from the deposit to any other costs that may crop up during your process. Other costs that you may encounter include, but are not limited to, the costs of Stamp Duty, fees from an estate agent or even the costs of finding yourself a suitable solicitor.

This government scheme is typically seen as a much less stringent home buying scheme, as using a Forces help to buy Mortgage in Sunderland allows you to pay back your loan over the course of a 10 year term. You’ll have the freedom to breathe a little easier knowing you aren’t necessarily rushed to pay back your loan every month. This doesn’t affect your monthly mortgage payments, however, as you will still need to pay these per month.

Bearing this benefit in mind, the Forces Help to Buy loan can be a truly amazing tool for helping prospective first time buyers in Sunderland who have served in the military, in getting onto the property ladder. Of course it is important to remember that you still have to qualify for this mortgage scheme. Your eligibility will be based on if you have served your country and if you are able to meet the necessary criteria (length served, service term left and medical categories).

Click here to read further information on the Forces Help to Buy Scheme.

How a mortgage advisor in Sunderland may be able to help

By taking on the services of a trusted team of mortgage advisors in Sunderland, you will be one big step closer towards achieving mortgage success and owning the home of your dreams. Your dedicated mortgage advisor in Sunderland will support and guide you throughout every single step of the mortgage process, ensuring you are always up-to-date and taken care of.

From the start of your mortgage journey, until completion and even further afield than that, a trusted and loyal mortgage broker in Sunderland will be by your side, with a top tier level of service. We’re proud of the customer experience we bring to our customers, always working hard to reduce their stress levels and most importantly, show love and respect to those who work to make our great nation even greater.

Book your free mortgage appointment online with a member of our team today and we will see how we are able to help you.

Please note; the Forces Help to Buy is not the same home buying scheme as the standard government Help to Buy Scheme.

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