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Life Insurance Cover For Homeowners in York

Life insurance is a vague term as there are numerous different types of life insurance. We put together this mortgage protection guide to explain what it is and why we always recommend any homeowner to take out life insurance.

If you’re in the market and looking to take out life insurance, it’s worth speaking with a mortgage & protection specialist in York. We offer life insurance Advice in York, and we would urge that you take up our offer on a free insurance consultation that we provide to new/existing customers. 

That said, if you are confused about the differences between the many various types of life insurance, you need to learn the most suitable policy that covers you best and how long it lasts before making any radical decisions, as not all policies will match your circumstances.

What is Life Insurance?

Life insurance pays out a lump sum of money to the deceased loved one/ friend in the event of their passing. With regards to your mortgage, you can choose how the payout gets distributed. Also, the person who took out the cover can decide to either payout through regular payments or a whole sum. Life insurance helps provide:

  • Additional financial support for loved ones.
  • Act as a replacement for lost income.
  • Pay off the outstanding balance on debts owed in the person’s name like a mortgage.

Different Types of Life Insurance Policies

As stated, there are various types of life insurance policies to choose from, and affordability will always play a large part in our lives. Whilst it would be wonderful to cover yourself for every potential opportunity, that’s not always possible. 

Here we have listed the different types of life insurance available. If you want to find out more, speak with one of our protection specialists in York today.

Level Term Life Insurance

With level term life insurance, you will only get covered for a fixed term as the payout is only valid within the time frame stated inside the policy.

People usually take out this policy that’s in line with their mortgage term. So a level term typically runs between 5-25 year terms in 5-year increments.

Decreasing Term Life Insurance

Why would you want to take out a policy that decreases in value? Well, this policy targets homeowners with repayment mortgages. Homeowners choose to take out this policy to pay off the outstanding mortgage balance should they die.

The policy’s value mirrors the outstanding balance remaining on your mortgage. As the amount owed on your mortgage decreases, so does the sum insured.

Increasing Term Life Insurance

This type of life insurance works in the opposite way to decreasing term life policy. The difference with Increasing the life insurance is that you are covered for increases as your term goes on. It will increase by a fixed amount until your policy term ends.

Increasing term life insurance can help protect the policy’s total value against inflation and is usually in line with the retail price index.

Whole of Life Insurance

The whole of Life policy helps cover you throughout your entire life. The costs of Whole of life insurance will be costly. However, if you keep up-to-date with your payments, you will be covered for your whole life.

This type of insurance is usually used for family protection and is part of inheritance tax planning.

Joint Life Insurance

If you are in a relationship/married, you could consider taking out a Joint life insurance policy that will pay out if one of you dies. You could still have two separate life insurance policies if you want to, but it is often cheaper than taking out two separate ones.

Death in Service

This type of life insurance cover may be offered to you by your place of employment. Your company is not obligated to provide Death in Service cover. However, some do as part of their employee benefits package.

Death in service is usually a lump sum of cash paid out to an employee’s family or a person of their choice if they die, and this sum can be up to 5 times their annual salary.

Taking out Life Insurance as a Single Homeowner

Just because you are a single homeowner doesn’t mean that you should disregard all life insurance options.

If you have settled into a new place and are currently living on your own without children or a partner, it’s not unusual for people to forget about life insurance. People also sometimes choose to ignore it, and this is because it doesn’t always apply to single homeowners.

This doesn’t mean you shouldn’t think about it though as your circumstances could change in the future, and if they do, then life insurance could become an essential thing to have.

Our Insurance Advice Service in York

We want to make sure that you have the right policies in place to allow you to leave your family in the best position possible if you die. Taking life insurance will give your family financial certainty and take a little stress off them in an already difficult time.

As a Mortgage Broker in York, we know that life insurance, no matter the type of cover, is highly beneficial and can put you at ease knowing that your family won’t have to pay for your debt payments.

If you want to learn more about life insurance, take up our free Insurance consultation in York. We will explain the policies available to you and why they could benefit your family’s personal and financial situation in the future. 

But don’t just take our word for it. Why not check our reviews to see what our trusted customers say about Mizna, one of our mortgage protection and specialist

We always ask our customers to review us. We do this because our reviews reflect a complete picture of our service from start to finish and highlight how amazing our team is. 

Some people didn’t know that life insurance can combine with other policies, depending on your situation. The other Insurance articles we cover include:

Rent vs Buy: The Benefits of Owning a Property in York

First Time Buyer Mortgage Advice in York

Why should I rent if a Mortgage is Cheaper? | MoneymanTV

Is renting a “wasted money?”

Such a controversial topic; some say renting your home is a waste of money and they have saved up for a housing deposit instead. In any case, not everyone has an equal chance to put their foot on the property ladder and become first time buyers in York; for some, it takes slightly longer. Here we will weigh the benefits of buying or renting a property in York. 

Discuss all possible eventualities

Speaking to one of our dedicated mortgage advisors in York before committing to purchase, they can not only find you a suitable mortgage but recommend mortgage protection insurance as well. That said, taking out a mortgage is a big commitment, and priority is finding you a fair deal to match your circumstances.

Will a mortgage be cheaper than renting?

We tend to find that for some, their mortgage payments are cheaper than the rent they were previously paying, depending on the area. Interest rates vary, which means your mortgage payments can go up and down unless you take out a fixed-rate mortgage, so your payments stay the same for a set period. On the other hand, if you are renting your landlord may choose to increase your monthly rental.

Being in control of your living arrangements

Some people enjoy the security of home ownership with no landlord telling them what they can and cannot do in the property. Whereas if you are renting, your landlord could choose to sell the property and you may have to move out.

However, in some cases, if your landlord does choose to sell the property you are renting they may offer you first refusal. As this will save time and some fees such as estate agents fees.

The Flexibility

Of course, renting is more flexible than purchasing a property. Nothing is stopping you from giving your Landlord notice to leave if you decide to move to another area.

Whereas if you own a property and decided to move you will usually have to arrange the sale, which can take time. Alternatively, you could look to rent out the property however, this will be subject to your financial position whether this is possible or not.

If you think you may not be around in an area for very long, you should consider whether it is worth buying. Buying somewhere should be viewed as a long-term investment whereas renting is a short-term investment.

Maintenance

As a tenant, your landlord should be responsible for any significant repairs. Some Letting Agents and Landlords are better than others when it comes to repairs; however, you might end up doing some minor maintenance of the property yourself, even if you are renting.

If you are a Homeowner, then all this is down to you, insuring the property will be a condition of any mortgage you take out.

How our Mortgage Advisors in York can help

Contrary to what some people might say, owning your own home is not for everyone. Suppose you are young and moving in with your partner for the first time. There’s nothing wrong with renting for a while. Unfortunately, things don’t always work out the way we plan, and it can be tough to get removed from a mortgage.

Buying a home is an enormous financial commitment, and everyone should consider all the options before diving in if you decide to rent though it may take you much longer to save up for a deposit.

Ultimately, most people decide they would prefer to buy over renting. Whether you are renting or paying a mortgage, you are making monthly payments to live somewhere, and most would rather see this go towards their benefit than someone else’s. It is sometimes just a case of getting your timing right and being in the correct financial position to proceed.

If you are looking to purchase a property in York, we are more than happy to help and offer our mortgage advice service in York.

Why Should I Use a Mortgage Broker in York?

Fast & Friendly Mortgage Advice in York

Why use a Mortgage Broker in York? | MoneymanTV

Your best interests at heart

First Time Buyers and Home movers in York use a Mortgage Broker to help purchase a property go as efficiently as possible. Buying a home can be a highly stressful experience, and our customers like to know they have got someone by their side, on hand to answer all their mortgage-related queries and questions. 

Our Mortgage Advisors in York will ensure you obtain the most affordable mortgage that suits your circumstances. We take complete responsibility for advising the most suitable mortgage for you and package your application to the Lender to provide you with the best chance of success. The same applies if you choose to come back to us when looking to Remortgage in Hull too, we like to know our customers are on the cheapest deal for the entire mortgage period. 

When to get Mortgage Advice in York?

We think talking to an experienced Mortgage Advisor in York early in the process is a great idea. We may help you work out what you could afford to pay and how much different Lenders will let you borrow. You would be amazed at the vast differences between each Mortgage Lenders to the maximum mortgage amount you are likely able to borrow.

Straightforward Mortgage Advice in York can play a large part. We keep all new and existing customers notified about their application’s progress by email. It’s good to know that we are also at the end of the phone when you need us, or something goes wrong during the process, our Mortgage Advisors in York can keep you updated on every step.

No Ties to Estate Agents, Banks, or Building Societies

Mortgage Brokers work for the customer, not the Lender. We are in your corner throughout your entire Mortgage journey, sometimes having to argue the strengths of an application to ensure it goes through. We understand our customers’ financial situation inside out. By requesting and checking your proof of income and bank statements well in advance of a Lender seeing them, we look to avoid any potential hurdles before we hit then carefully. 

We can also help you choose the right type of survey for your transaction and instruct a Solicitor on your behalf to carry out the legal aspects. We are experts in completing application forms on behalf of our clients to ensure accuracy and give your application the best chance of completion.  

Building Customer Relationships

Finally, a great Mortgage Advisor will love to build up an ongoing relationship with a client. It frequently starts with an affordability assessment and Agreement in Principle before even finding a house. Even after the purchase is complete, we keep regular contact via email and re-engage by phone in the six months running up to the initial mortgage product coming to its end. We then compare the market on your behalf once again to obtain the best remortgage deal available.  

Expert Mortgage Broker in York

Divorce & Separation Mortgage Advice in York

Trusted Mortgage Broker York

Divorce & Separation Mortgage Advice | MoneymanTV

What happens to your Mortgage when you are going through a divorce or separation?

Divorce or separation from a partner is always a daunting experience. However, if you and your ex-partner have finally decided to part ways and bear a joint mortgage, you would be worried or confused about how to work around a solution.

Here are three main questions that most ex-couples thinks of while receiving Divorce & Mortgage Advice in York regularly:

  • How can I remove my ex-husband/wife from my Mortgage?
  • How can I remove my name from my ex-partner’s Mortgage?
  • Can I have two mortgages?

To help you understand the basics of working around a solution, we’ve put together the following guide to make things a little clearer and, hopefully, a little easier for all concerned. Often the case gets complicated if there are kids involved. It’s often the mum who stays in the property, but there may come a moment that whoever is in position wants to take over the Mortgage in their own hands.

When you are trying to remove your ex-husband’s name from the Mortgage, you’ll need to provide sufficient evidence that you’ll be able to meet your mortgage payments successfully on your own. Lenders are instructed to review your salary and your disposable income and then decide if you are financially strong enough to manage the load of instalments or not.

Similarly, the lenders will evaluate your ex-partner’s affordability and decide whether he’ll be able to afford mortgage payments forward or not.  So a thorough check will be performed on both parties regardless of whether you have stayed up to date with your mortgage payments in the past or not.

Quite often in these situations, someone can intervene to replace the ex-partner such as a family member or indeed your new partner. You can also reach out to Mortgage Lenders for help.

How do I remove my name from my ex-partner’s Mortgage?

If you decide to remove your name from the Mortgage, it’s a more similar process to how you removed your ex-partner’s name. But since you choose to vacate yourself from the property and move on, it might create difficulties for you at times.

This might need consent from your partner that you want to call off your name from the Mortgage. Your lender will also perform an affordability check on your partner to find out if he can afford the future mortgage payments or not.

Once you get given consent to remove your name from the Mortgage, you’ll undoubtedly start looking for a new house of your own. The mortgage payment for your old property will be considered if you want to buy a new property in the future. Hence, it’s essential in these instances that you take Specialist Mortgage Advice in York before making an offer. You’ll find some lenders as more generous while others are strict.

Can I have two mortgages?

The answer to this one is yes, you can. Lenders & their credit scoring systems consider many factors before they offer you a mortgage. Continuous and timely financial payments are just one of these. The lenders will scrutinize how much you are contributing to the existing mortgages and whether you will be able to manage additional mortgage payments on top of them or not.

They will also consider the risk factor, for instance, how likely your home gets repossessed because you could not afford your mortgage payments. They will not take any risks either. The monthly payment of the Mortgage you still hold with your ex will need to be input alongside any other loans & credit commitments you may have.

Once we have keyed all this in for you the various Lenders’ systems will confirm the maximum amount you can borrow so you know your budget at the outset & how much deposit you will need to put down.

Mortgage Advisor in York

How Much Can I Borrow For A Mortgage in York?

How Much Can I Borrow For A Mortgage | MoneymanTV

Your income, expenditure and the lenders’ affordability calculations determine the amount you can borrow for a mortgage. Over the years, the amount that Banks have been prepared to lend for mortgages has ebbed and flowed. This can be linked to the market conditions and appetite for risk at that time.

There was a time in the mid-2000’s when more than seven times annual income may have been acceptable. However, it has also been as low as three times annual salary in the past.

Since the Mortgage Market Review of 2014, it is seldom that they apply this “multiple of salary” rule. The Lenders now look much more deeply into your personal finances before deciding how much you can borrow. Thus, the factors you need to consider are:

  • How much will the lender say I can borrow for my mortgage?
  • How do I know if it’s affordable?
  • What if interest rates go up in the future?

How much will the lender say I can borrow for my mortgage?

As mentioned above, the way lenders calculate your borrowing capacity (affordability) is now generally much more sophisticated. Lenders used to work off simple income multiples of, say three times your gross annual salary. However, nowadays they all have affordability calculators which are often quite different from lender to lender.

With increasing complexities in the way people are paid, there have been changes in what income lenders do and don’t accept. For example, if you’re in a job where you earn a lot of overtime or bonus or commission, some lenders will take much more of this into account than others; some lenders will take certain benefit income such as child tax or working tax credits into account where others won’t.

Similarly, if you’re Self-Employed in York or own a limited company, lenders will assess your income in different ways. This can result in the same customer being assessed to have widely varying affordability levels from different lenders.

Finally, factors such as the product that you want to take and the term of years you want to borrow the money over can all impact upon the overall affordability. Lenders will also deduct regular outgoings such as personal loan payments, maintenance payments or credit card bills from your salary. Thus, whilst many lenders or brokers will have a “rule of thumb” this is just a quick guideline. Therefore, you should always check with your mortgage broker for more accurate figures based on your specific circumstances.

How do I know if it’s affordable?

Lenders generally aren’t daft. They don’t want to be seen to be lending you more money than you can realistically afford which could put you under unnecessary financial strain. Therefore, if you pass a lender’s affordability calculator that’s a pretty good indicator that you should be OK.

That said, we’ve already seen that the assessment of affordability can vary significantly between lenders, so it’s always worth completing your own budget planner to ensure that you have the security of knowing that, whatever the lender may say, you’ve done your own assessment. Remember, owning your own home is not just about paying the mortgage.

Factor in associated costs such as council tax, utility bills and any other committed payments such as personal loans or insurance premiums and your regular food and drink bill at the supermarket. Be realistic and include everything that you’ll want to retain in order to maintain your chosen lifestyle.

Deduct your other outgoings from your monthly pay and, if what you have left is more than enough to meet your mortgage payments, then you should be OK. If it’s not, you have a choice; either make savings or sacrifices from your outgoings in order to help you buy the home you want, or look for something smaller!

What if interest rates go up in the future?

The UK has seen an unprecedented period of interest rate stability in recent times. It is over seven years since the Bank of England has amended its Base Rate but with recent events many people fear the uncertainty that may come with future rate increases. If you complete a budget planner, you should be able to gain some idea of how much you can afford and you could, therefore, factor in possible increases to ensure your mortgage will be affordable both now and in the future.

If you’re in any doubt, the key to future stability can be found in fixed-rate mortgages. As the name implies, the rate you pay, and thus your monthly repayment, is fixed for a defined period of time. Generally speaking, the longer you fix for, the higher the rate (and monthly repayment) is likely to be, but you might consider that to be a price worth paying for the peace of mind it brings.

Yorkmoneyman Christmas Message During Covid-19

Have a safe Christmas

We want to hope this year ends on a positive note and continues into a safe and prosperous New Year for everyone from me and my team here at Birminghammoneyman and we hope for a healthy 2021 for all of us.

Property values have held up remarkably well during the pandemic due to the fact of a shortage of stock, undiminished consumer demand, and the Stamp Duty Holiday (which is due to end in March).

If 2020 has proved nothing else, it has confirmed you’ll never stop the Brits from wanting to put their foot onto the property ladder and be homeowners.

Purchase & Remortgage Predictions

In terms of my predictions for 2021, despite rising unemployment, I fully expect the consumer demand for buying property to continue.

More people are continuing to spend more time at home, and, naturally, people might look for something larger, better, or with a lot more land.

We will also see lots of remortgage activity from customers who are happy where they are living but would like to invest in their homes by extending them or creating home offices.

Things are looking up

Interest rates are still low, and off the back of Brexit, the Government will be keen for the property sector to thrive given that it is one of the “wide multipliers”, e.g. it sustains lots of jobs.

Once the vaccine gets rolled out entirely, and life gets back to some form of normality. I believe there will be many people who adopt a “life’s too short” outlook, and this should be good for the economy as a whole, especially those involved in the property market.

If you need expert mortgage advice in Birmingham and would like to speak with one of our dedicated mortgage advisors about taking out a mortgage or life insurance in 2021 please do get in touch, we’ll be happy to help.

Why Speak to a Mortgage Advisor in York?

Providing Mortgage Advice in York for over 20 years

Whether you are new to this game or have played it before, we still highly recommend that you get Mortgage Advice in York.

We include all the different types of mortgage scenarios in York, no matter what your situation, we are determined to try and assist you!

We would love to help You! Anyone who needs Mortgage Advice in York, know that your expert Mortgage Broker will be available. Get in touch for a free mortgage consultation today.

First-Time Buyer Mortgage Advice in York

Taking that first step up the property ladder can often prove challenging, particularly if you don’t know where to start! Your expert Mortgage Broker in York is here to provide you with a helping hand and will be at your side each step of the way.

Yorkmoneyman will search through thousands of mortgage deals in your best interests to attempt to find the perfect one for you.

Save you time and your money, we have been in the broker industry for 20 years and giving loads of expert First-Buyer Mortgage Advice in York.

Remortgage Advice in York

So, you are getting closer to the end of your current mortgage term, and you need to leap onto another deal. However, you are trying to find competitive deals. Not a problem, we are here to help!

We have a large variety of lenders to hand that we can access to find your perfect deal. We want to try and save you money, and that is why we will search through thousands of deals to try and find one that is better than yours.

The majority of the time, we can find a better deal too, why not consider Remortgage Advice in York in York today!

Moving Home Mortgage Advice in York

Are you at the thought of moving on from your current Home? Want to take an additional step up the property ladder? Getting Moving Home Mortgage Advice in York could be your best choice.

We help hundreds of home movers every single year; you could be next! We believe that Moving Home is comfortable with your expert Mortgage Advisor in York.

Buy to Let Mortgage Advice in York

Whether you are an on-going landlord in search of a new Buy-to-Let Mortgage in York or an aspiring landlord looking to get into the world of Buy to Lets, we are sure that you will be able to benefit from our service.

As a Mortgage Broker in York, we have worked with hundreds of Buy to Let landlords, and we would love to help you too. Get in touch for a free Buy to Let mortgage consultation.

Specialist Mortgage Advice in York

Got a slightly complicated mortgage situation? Need expert Specialist Mortgage Advice in York? If so, do not hesitate to get in touch, even if you think that your problem is too complicated! We have probably dealt with a similar or if not, the same situation before.

If you come across a bump in the road. Do not be afraid to contact us and claim your free mortgage consultation.

Self Employed Mortgage Advice in York

We know that it can be hard being Self-Employed in York whilst trying to get a mortgage. That is why we are offering a friendly helping hand!

Your Self Employed Mortgage Advisor in York is available from 8 am-10 pm, seven days a week to answer any questions that you may have. Do not hesitate to get in touch, and we are more than happy to try and help.

Help to Buy Mortgage Advice in York

Choosing the right Help-to-Buy scheme in York can be tricky, especially if you don’t even know how to qualify for them.

Each one is unique in their way, so to get a full outline of each one, it may be within your best interests to speak to an expert Help to Buy Mortgage Advisor in York.

We offer a free Help to Buy mortgage consultation to all customers remember. If you are interested in this route, do not be afraid to get in touch.

Right to Buy Mortgage Advice in York

Do you want to find out whether you have the Right to Buy your council home in York? We can help with that!

Speak to a Right-to-Buy Mortgage Advisor in York today. They will check if you qualify for the Right to Buy scheme.

How to Negotiate on a Property Price in York

How to make an offer on a property?

The first thing First-Time Buyers in York need to remember when making an offer on a property is to remember that there are other potential buyers. Therefore, it is vital to get your portfolio looking as good as possible to get yourself ahead. Additionally, this will give you the advantage of getting your offer accepted.

Despite all your best efforts, if a cash buyer makes an offer, they will gain priority. The reason for this is because there are fewer variables that can go wrong, and the process can get completed faster. Luckily, cash buyers seem to be not as apparent these days.

The most recommended pathway is to send over a copy of your Mortgage Agreement in Principle to the Estate Agent. Additionally, this will get you ahead of the other potential buyers who are also in the running if they haven’t yet got theirs sorted.  We can produce an Agreement in principle very quickly. If it appears that you have a straightforward case, then we are also able to offer a “same day service”.

What’re the best ways to go about offers?

Getting a mortgage is about negotiating. It will most likely turn out that your initial offer will get rejected but rest assured, this gets expected. If this happens, you will be given an option by your Estate Agent to increase the bid. It is best to be sensible and go for the amount, which seems the most reasonable price to which you can afford.

If your second offer is also not accepted, one of the reasons could be down to willingness towards the payment of the asking price. Therefore, if the property is new to the market and the asking price seems too high, sometimes the best option is to be prepared to find another property.

“Sold” prices on Property websites such as Zoopla and Rightmove can be a great insight to giving you a right estimate on correct asking prices depending on the area. A lot of this data is compiled from the Land Registry, meaning it should be reliable.

Individual properties may stand out because they may seem much lower in price compared to the other houses that surround them; there will be an underlying reason for this. The most common causes include:

  • The house has been repossessed.
  • The landlord has sold it for a discounted price.
  • It was sold between family members.

In our service, we will guide you with your offering strategy. It may seem nerve-wracking, but it is also a fascinating part of the process.

How to make an offer on a property?

Making a reasonable offer is an integral part of getting the property you liked, but there are certain things you need to consider when you are making an offer on any property that you wish to purchase. It is not enough just to be giving asking price to be the right buyer and stand out from other buyers, but there are other things the seller considers while deciding on choosing the buyer.

Make An Offer On a Property | Submitting an offer:

While you can get submit a verbal offer either in person or on the phone, most of the agents now ask for you to send your request via email these days, for records for both parties. This offer is then taken to the seller who chooses to accept or reject your bid. An agent is liable to pass any offer he received to the seller for their consideration.

How to Stand Out:

The all-set buyer

The seller will take you more seriously if you come across as a well-prepared buyer who can show evidence that they can afford the property with a ‘mortgage agreement in principle’. It would help if you also had a solicitor in place. So you can advance their details when the offer on the property is accepted.

Chain-Free Buyers

Any buyer without the baggage of previous mortgages, first-time buyers in York or buyers with pre-organised mortgages will have a benefit of preference from the seller.

Swift and Easy Processing

Your transactions and agreements will process more swiftly if you are a chain free and organised house, the buyer.

Tip: If the seller is in a hurry to sell or has been trying to sell the property for some time. They might accept a lower offer than the asking price as well. Especially if your purchase will pass through quickly.

Property Value

Some sellers are not constricted by time or other factors and hence will wait for the buyers who can offer a higher price to maximise the value of the property.

Confidence

No matter what price you are offering for the property, do it with assertiveness and confidence. Most negotiations include several rounds of offers and counter-offers.

Things to Remember When Making an Offer:

While you might be attracted to a particular property, you should always have a budget ceiling in mind. Additionally, this will help you decide the maximum you can offer for a property and if the investment is worth for you in the long term. An agent is required to be transparent and will let you know if other parties are interested in the properties. To help you make your case.

Once the offer is made:

Ensure that it is clear to all parties that the offer is:

  • Subject to Contract (STC) – the final sale gets made when lawyers have exchanged and signed contracts.
  • Subject to Survey – allows any cost for faults and issues to be taken into account.

Once the Offer is Accepted:

Ensure that the agent has taken the property off the market; otherwise, you risk a chance of being gazumped.

Trusted Mortgage Advice in York

The Costs of Buying a House and Moving in York

What Are the Major Upfront Costs of Buying a House in York?

There’s no doubt that buying a home can be an expensive business. It gets even more costly when you are buying and selling at the same time. In this article, we broke down for you some of the costs and further down the line which things become due for payment, this article will benefit First-Time Buyers in York let alone anyone interested in purchasing a property or looking to Remortgage in York to a new property.

Estate Agency Fees

You only need to pay for an Estate Agent if you are planning on selling a property. The fees vary widely from Agent to Agent. We tend to find that the cheapest agents tend to be online ones who don’t carry the expense of maintaining offices. If you are not as sensitive to fees and you would prefer a more personalised local service, then that might cost 1-2% of your selling price. The charges are usually negotiable, especially in a “seller’s market” – that means when Agents are fighting to get your instruction because there aren’t many houses on the market.

Valuation Fees

If you are taking out a mortgage, then the lender needs to know the property is worth what you re paying for it. Some Lenders offer this for free, although they may not send you a copy of the report. If the Lender is not offering a free valuation, then this could cost a few hundred pounds.

You can expect to pay roughly double that if you want to upgrade that to a more in-depth HomeBuyer’s Report. The top of the range survey is the most expensive option, and you can expect to pay a four-figure sum for one of those.

Your Mortgage Advisor in York can explain what each different survey consists of so you can make an informed choice. The older/worse condition the house is in, the more likely you should consider upgrading the survey. Whilst a useful review is indeed expensive, and it’s a fraction of the cost of buying a property blind and having to spend much money on repairs over the years.

Mortgage Arrangement Fees

By rule of thumb, the mortgages with the lowest interest rates tend to come with the highest fees. Fees to set up mortgages can range from zero to a few thousand pounds. Your Mortgage Advisor will recommend the cheapest product to meet your needs, calculating the total amount to pay over the product term, including all fees.

The higher the amount you are borrowing, the more likely it is that you will want to keep the interest rate as low as possible. If you are borrowing a small amount, then it’s usually cheaper to take out a mortgage without fees as a rule. Lender arrangement fees can often get added to your mortgage. If you elect to add a fee, then interest will be charged on the fee, and this can add up over the term of the mortgage. Being an expert Mortgage Broker in York, we compare mortgage deals with all prices added so we could compare on a like for like basis.

Solicitor’s Fees

You’ll need to engage the services of a solicitor, the fees quoted by various firms can differ enormously. Estimation for a straightforward purchase with a local company is £600 for a low-value property. You will need to give the property address, whether it’s leasehold or freehold and the purchase price to obtain quotations. Again your Mortgage Advisor in York can help you decide whom to go for The key points to cover when asking for a quote are:

  • Ensure the firm includes VAT
  • Ensure the firm includes the cost of any “disbursements.” These are fees such as Land Registry Fees and Local Authority Search Fees
  • Is your Solicitor on your mortgage lenders panel?

Stamp Duty

In addition to your Solicitor’s fees and disbursements, you’ll get required to pay this tax which the Solicitor collects on completion of the property purchase. Full details can get found here: – a residential purchase of £180000, the Stamp Duty would be £1100.

Mortgage Broker Fees

Most Mortgage Brokers charge fees for their work, the amount that you will pay will often depend on how much the Lender pays the Broker for the work they do on their behalf. Most Brokers will only charge a fee if they are successful in obtaining a formal mortgage offer for you. Check your Mortgage Brokers in York online reviews to see what other customers are saying about them.

Removal Fees

The cost of moving your furniture can vary significantly and will depend on the level of service you are expecting. If you are quite happy to hire a van and roll your sleeves up, this can cost less than £200. On the other hand, if you are looking for a company that provides the full service, this can be £1,000 plus.

First-Time Buyer Mortgage Advice in York

Reasons Your Mortgage Application Has Been Declined

Failing a Credit Score for a Mortgage in York

For First-Time Buyers in York applicants passing a credit score for a mortgage can be quite hard for some applicants. Some Mortgage Lenders credit scores are harder to catch than others. If you fail, a credit score Lenders can sometimes seem unhelpful in terms of why you have failed the credit score. In any case, your application might not have been a success due to a mixture of reasons.

Having a Mortgage Broker in York can come in handy, If you can obtain a copy of your credit file, your Advisor we can assign you to will go through it and try and work out which Lenders criteria you most likely fit into these categories. Another handy tip is the more deposit you can put down the easier it is to give a credit score for a mortgage.

Improve your credit score

There are things you can do to improve your credit score. Malcolm has done do a video on our MoneymanTV YouTube Channel regarding things you can do to improve your credit score. We rely on user-generated content for our videos, so if you are like Lynn and have a question, please feel free to send a message using the email address provided, and don’t forget to like and subscribe.

How Can You Improve Your Credit Score? | MoneymanTV

If you have a credit card, you should use it regularly and ideally pay the balance off in full each month. It would be best if you were on the voter’s roll where you live, that helps. You can also close old bank accounts and credit and store cards you are no longer using.

Do not give up just because you fail one Lender’s credit score – there is a chance another Lender may accept you but do be careful about having too many hard credit footprints registered against you. Having too many credit searches can affect your credit score.

Declined for a Mortgage on Affordability

All Lenders have different ways of calculating how much you can borrow. You could approach ten different Lenders and get ten different answers. Some Lenders are more generous than others, for example, when an applicant is self-employed.

Some Mortgage Lenders can consider assessing 100% of an employee’s overtime and bonuses, whereas others do not. Some Lenders accept “unearned” income such as tax credits, child benefit and maintenance.

A Mortgage Broker in York like us can approach several different Lenders without the need for a credit check to perform an affordability assessment. If you are looking to buy a home, it’s a good idea to have an affordability assessment carried out before you start viewing properties to avoid potential disappointment.

Proving that you have maintained mortgage or rent payments in the past does not necessarily mean that you will pass a Lender’s affordability test.

Outside of Lending Policy

All Lenders have strict mortgage lending criteria. Some Lenders are better than others in certain situations. Lenders look to carve out niches for themselves to attract good quality mortgage borrowers who might not tick all the right boxes for their competitors.

Some examples of why your application has been getting declined for being outside of policy are:

  • Length of time in employment or self-employment
  • Adverse credit history
  • Not enough deposit
  • Non-standard property construction
  • A married applicant applying for a sole mortgage
  • Minimum/maximum age or mortgage term
  • Minimum/maximum loan amount

In any case, a Mortgage Broker in York like us can use our experience of Lenders and criteria tools to recommend the most suitable mortgage for you, tailored to your circumstances. If your situation is outside of the norm, then you should look for mortgage advice as being declined elsewhere may affect your chances of being accepted.

Yorkmoneyman.com & Yorkmoneyman 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.

© 2021 Yorkmoneyman

Yorkmoneyman, York Hub, Popeshead Court Offices, Peter Lane, York, YO1 8SU.

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