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What do Lenders Look for When Assessing my Bank Statements?

During your mortgage process, you will need to provide evidentially documentation to prove that you can afford your mortgage repayments. The documents that you’ll be asked to provide, include bank statements, proof of address, latest P60, payslips and photographic ID.

What Do Lenders Look For On My Bank Statements? | MoneymanTV

Why do lenders ask to see my bank statements?

Lenders need to be certain that you are financially stable to afford your monthly repayments. If given an Agreement in Principle this will signify that you have been agreed in principle you providing substantial documentation to back up everything that you’ve said about yourself.

Your bank statements can say a lot about a person, they highlight your latest spending habits like the commonness of going to the pub, making gambling transactions, going shopping on a betting app. Everything transaction, even bank transfers to and from different accounts will need to be shown.

The lender needs to know whether they are lending to dependable applicants or not. For example, if the lender can see that an applicant spends too much money or exceeds their arranged overdraft limit every month, they will question whether you will be able to afford a mortgage or not.

It’s all down to risk. If the lender thinks that you are going to struggle with your mortgage payments due to how you spend your money, they are unlikely to accept your application.

What specifically will they be looking for?

The question is, what exactly are they looking for? What do lenders not want to crop up on my bank statements during your mortgage application?

1 – Gambling transactions

The first thing your lender will look for on your bank statements is any gambling transactions. 

Gambling transactions are one of the first things that your lender will look for on your bank statements. Believe it or not, depending on how frequently and how much money you gamble, gambling can affect your chances of getting a mortgage.

Don’t worry, the occasional gambling will be harmless. That said, if you are continually gambling enormous quantities of money, you will not be in the lender’s favour and you may be seen as irresponsible.

This is because lenders need to trust you and know that you will be able to meet your repayments on time.

2 – Exceeding your overdraft

Lenders need to know that you can afford a mortgage, so going in and out of your overdraft and reaching its limit every month is something that lenders won’t take lightly. 

That said, there is nothing wrong with going into your overdraft, we have seen it happen with different applicants all the time. But if you have to do this every month, it might stop you from getting accepted.

3 – Bounced direct debits

Be aware that lenders will look out for any bounced direct debits. A bounced direct debit is when a company tries to take money from your account through direct debit, but your account doesn’t have the necessary funds to cover the bill, this usually occurs with monthly bills/subscriptions. 

Whether this is a complete accident but if you accidentally missed a mortgage payment, this will be more detrimental than missing a Netflix subscription. But having repeated bounced direct debits will reflect badly on your credit file, so be wary in the future.

4 – Failing to pay off loans and credit cards

Lenders will be making a note to check for any personal loans and credit card commitments. You need to make sure to declare any expenditures and that you will still be able to meet your mortgage payments on time with these expenditures.

What can I do to show my lender that I’m a reliable applicant?

Here at Yorkmoneyman, we have worked with many First Time Buyers and Home Movers in York. We tend to find that most lenders will ask for at least three months worth of bank statements from their applicants. 

Now, you can’t alter what your past bank statements show, but you can change what appears on them in the future. Before you decide to submit your final mortgage application, you need to get prepared and be mortgage ready so your finances mirror you in the right way. Here are some of our recommendations:

  • If you are a regular gambler, we would recommend that you take a break for a little while. This may also benefit your mental health as well as your financial situation.
  • Saving money and showing the lender that you have been trying to show ways of being able to afford a mortgage. This will help help you out massively.

Speak to a Mortgage Advisor in York Today

If you need help with making your application stand out, book your free mortgage appointment today with one of our expert Specialist Mortgage Advice in York. We have worked in the industry for over 20 years and helped many First Time Buyers in York achieve their mortgage goals.

We are confident to say that we know exactly how to help. You could be next, so if you have any mortgage questions, we have likely helped many applicants in your situation before.

The Pros & Cons of Using a Mortgage Broker in York

First Time Buyers in York who are looking to put their foot onto the property ladder, or finding themselves once again at the end of their fix term, might find the process a little daunting.

Depending on the homeowner and homebuyer circumstances there are many different routes to take. Ideally, you’ll want a service that gets it right the first time, saving you time and money.

Here at Yorkmoneyman, we firmly believe that First Time Buyers in York like yourselves will find our service beneficial during the entire process.

Rest assured, you are in safe hands with us, we have absolute confidence in our ability to help customers. We also understand that some people may be wondering how a Mortgage Broker in York can actually help.

This is why we felt it was best to put together a balanced summary of why speaking with a Mortgage Broker in York will be beneficial, as well as why others instead choose to directly to a mortgage lender.

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

Cost-Effectiveness

We promise to try our best to save money by going direct and finding your own mortgage deal. This isn’t entirely untrue, as a mortgage broker in York may charge a fee, though this is very much circumstantial.

If you’re experienced in doing it yourself, have a straightforward case and knowledge of lender criteria, by all means, this will be easier and more cost-effective. The downside to this comes with more complex cases and people who don’t understand the lending criteria.

If you have the basic understanding of doing it by yourself, have a simple case and have knowledge of the lending criteria, by all means, this will be a walk in the park and more cost-effective.

However, those with a complicated case and people who don’t understand the lending criteria could either end up on the wrong deal or unsuccessfully apply for a mortgage deal.

Both situations could poorly result in you spending more money than what’s needed, or harming your credit score, resulting in your overhaul chances of obtaining a mortgage in the future.

Our Mortgage Advisors in York aim to recommend the most suitable deal for your circumstances. Whilst again, this may come with a service fee, you could be saving yourself a lot more money in the long run.

Local Bank Branch Relationships

Another point that many more senior customers think works in their favour of going directly to the bank, is the way the mortgage process was previously run. Before online banking and the ever-increasing popularity of technology, you would be a loyal customer of your nearest branch regularly, often communicating to the same people.

Back then before credit scoring, you would sit with the bank manager themselves, who understand your finances inside and out, and would accept you for a mortgage. Whereas in the present, a lot has changed since.

Now, the bank manager won’t run through your case personally. Instead, it goes through an online system, to determine if you are eligible to qualify for a mortgage. These days, more people get given a good chance to apply for a mortgage, it no longer matters which company you bank with for years.

Exclusive Mortgage Products

You may have heard that you can get better access to better deals by going direct. This may be somewhat true, they can offer good deals, but these deals are only exclusive from their own company.

Not all mortgage lenders are banks and there are many other deals out there to choose from. The most suitable deal your bank can offer, might not be the best deal overall that you could have got, by going elsewhere.

At this point, seeking Mortgage Advice in York will be very beneficial. Our Mortgage Advisor in York will go through your case and find you the most suitable deal with one of the many lenders we have on the panel, rather than from just one source.

It’s also worth noting on the topic of exclusivity, that you may also find deals with a mortgage broker in York, that you can’t find anywhere else. Whether you are a First Time Buyer wanting to put your foot onto the property ladder, looking to Remortgage in York or have a specialist case, there will be more options for you when going with a Mortgage Broker in York.

Changes to Regulation & Consumer Protection

Prior to the 2007-08 credit crunch, as summarised in the 2014 Mortgage Market Review, lenders were no longer allowed to sell mortgages to their customers on a non-advised basis.

What we mean is, you cannot just walk into a bank, tell them you want a mortgage and be accepted without any background checks.

These modifications also brought about consumer protection, that a bank otherwise would not have given you. Nowadays you are now in a position to complain to the Financial Ombudsman if you feel misadvised in any way. You also can make a claim via the Financial Services Compensation Scheme.

Whichever journey you are going down, going to either a mortgage broker or mortgage lender, you will be in safe hands, secure and professionally advised.

Booking an Appointment with a Mortgage Advisor in York

What gives a Mortgage Broker in York an upper hand is it can sometimes take time to try and speak with an advisor at the bank. Once you have made that contact and started your process with your bank, you’re not always guaranteed to be kept in the loop.

A benefit of using a Mortgage Broker in Durham is that we work around your busy schedule and arrange a time that suits you. Our dedicated teams of Mortgage Advisors in York are here from morning until late, every single day of the week, including weekends and certain bank holidays too.

Not only can you book yourself on a day and time that suits you, but sometimes we offer same-day appointments, subject to availability.

Don’t panic if you work a 9-5 job and need to speak with a qualified Mortgage Advisor in York. We’ve got you covered! With the help of our booking feature, it’s never been easier to speak with a Mortgage Advisor in York!

Here at Yorkmoneyman, we pride ourselves on being open and honest with our customers. All new and existing customers will always be kept in the loop no matter what stage of the mortgage process they’re in. Any changes made, you will be notified as soon as possible.

Over time the public perception of Mortgage Broker in York has changed. It’s thanks to our high level of customer service, had led to more people choosing brokers over going to a bank for Mortgage Advice in York.

Handling of Complex Scenarios

Everyone’s mortgage situation can be more challenging than the ‘average’ case. Recurring examples of this that our team have encountered over the years working in the industry include (but are not limited to):

  • Putting down a deposit from various sources.
  • Zero-hour contract workers want to know if they are eligible for a mortgage.
  • Existing homeowners looking if they can take out a second mortgage.
  • Self employed applicant with no fixed income.
  • Being declined for a mortgage due to having a poor credit history.
  • Most importantly affordability, can you afford a mortgage in your current situation?

Previously, mortgage lenders could easily compete with one another by offering deals that were better than the other. Times have changed since then, and now the main difference in which deal you go with, is whether or not you match their lending criteria.

You may come across a cheap deal you aren’t eligible for. The lender will either do a hard or soft credit search, to see if you are eligible to have a mortgage.

If you apply for the mortgage and the lender declined you an agreement in principle, this may damage your credit file. The worst part is you will be given no reason as to why you were declined.

A Mortgage Broker in York like ourselves will be able to run through your case beforehand, ensuring that everything is good to proceed and inform you of anything you need to increase your odds of being accepted for a mortgage.

Utilising the vast amount of lenders of our pane, we can match you with deals that fit your eligibility and supply you with an Agreement in Principle. We aim to supply you with an Agreement in principle within 24 hours after your free mortgage appointment.

However, this doesn’t mean you’re guaranteed to be agreed, but it’s much safer for your credit file to be organised and get everything sorted beforehand. As expert Mortgage Advisors in York, we aim to get our recommendation right the first time.

In Conclusion; Should I use a mortgage broker in York?

As an expert Mortgage Broker in York, who has been in the industry for over 20 years, we have helped many customers achieve their mortgage goals. From First Time Buyers in York getting onto the property ladder for the first time, to people at the end of their fixed period, looking to Remortgage in York, it’s safe to say you are in safe hands with us.

As you can see, there are indeed pros and cons to going with a Mortgage Broker in York. Likewise, there are also pros and cons to going direct as well. It comes down to how quick you want your service to be, and how secure you want to be.

If you would like to speak with one of our Mortgage Advisors in York, feel free to book yourself in for a free mortgage appointment or remortgage review. Everyone here at Yorkmoneyman is here to help with all your mortgage needs, around a time that is most suitable for you, subject to availability.

For more information, please feel free to take a look at our genuine customer reviews. They are a reflection of the high-end levels of service that we provide to all new and existing customers.

Why use a Mortgage Broker | MoneymanTV

Lifetime ISA Explained in York

What is a Lifetime ISA?

Back in 2017, the government introduced the Lifetime ISA Scheme. A Lifetime ISA can help you build up savings for your first property or save for later in life. In this article, we will show you how a Lifetime ISA can help First Time Buyers in York get onto the property ladder.

Lifetime ISA Explained UK | MoneymanTV

Mortgage Advice in York

The purpose of the scheme is to help First Time Buyers in York either raise additional funds for their first property or save additional cash for a bigger deposit. ISA stands for Independent Savings Account, so the Lifetime ISA works like a savings account and the best part about the Lifetime ISA is the money you grow is tax-free.

There are no limits to how much you can save each month, only a £4,000 a year cap. As an additional bonus, the government top up your total annual savings by an extra 25%. Therefore, if you manage to hit the £4,000 mark, you will receive an additional £1,000. This brings your total yearly savings to £5,000.

Worry not if you only can afford to save £720 a year (£60 per month), you will receive a £180 free bonus from the government. Please be aware that once the money is inside the saving accounts, there is no way to withdraw the cash without paying a fee.

How can I spend my savings?

You have two different ways how you choose to spend your savings. Ether use it to purchase your first property or save it up for a bigger deposit. If you choose to use your Lifetime ISA savings to purchase your first property.

This has to be your first purchase, it does not affect you if you are currently renting. If you want to withdraw from the Lifetime ISA without using it to purchase your home, you will have to pay a 25% withdrawal charge. So, make sure to be extra careful of how much you are putting into your savings account.

As an open and honest Mortgage Broker in York, we have worked in the industry for over 20 years. We recommend looking at the Lifetime ISA when you are either struggling to afford a small deposit or you are planning to buy your first home within the next five years or more.

You can keep building up your ISA until you want to withdraw the funds for your property purchase. We tend ot find, so many homeowners get onto the property ladder by utilising the government’s Lifetime ISA scheme. You can find more information on the government’s official webspage by clicking here.

Are there any restrictions?

There are a few things that you need to consider when it comes to qualifying for the Lifetime ISA. If you are looking to use a Lifetime ISA to purchase a property, here are the conditions:

Lifetime ISA Requirements:

  • This has to be your first property purchase.
  • You can only add a total of £4,000 a year into your savings account.
  • The property that you are buying must cost £450,000 or less.
  • You must be under the scheme for at least a year before you can make a purchase
  • You must be aged between 18-40.

If you are eligible for a mortgage and looking to utilise the Lifetime ISA scheme, please don’t hesitate to book your free mortgage appointment to speak to a Mortgage Advisor in York today, we will try our best to find you a suitable mortgage and get onto the property ladder.

Mortgage Advisors in York

If you are interested in the Lifetime ISA and want to begin your mortgage journey, or want to know if you are eligible for any Help to Buy Mortgage. Now is the perfect time to speak with one of our experienced Mortgage Advisors in York. We would love to try and help you make that first step onto the property ladder.

9 Questions To Ask When Buying A House in York

First Time Buyers in York like yourself may find the process of stepping into the mortgage world a bit daunting. If you have zero experience or knowledge of what to do, we put together this handy guide to help you out when you’re next viewing a property. Below are 9 questions to ask yourself when looking to buy a house in York to make sure you make the most of your home buying experience.

Home Buying Questions You Should Ask:

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

If you can find out what level of interest the property is generating, you’ll be able to get a better gauge of how long you have to make a final decision.

It’s always best to be prepared to react quickly, especially if the property is getting a lot of interest, you need to have a final answer pretty soon.

2. Is there a property chain involved?

A property chain can happen when there are a number of transactions occurring at the same time for every sale and purchase to be completed.

If the property is a part of a chain, this will have a significant impact on your buying experience. For example, if there’s no onward chain, it’s likely the homebuying process will move more swiftly.

If you’re in a position whereby you don’t need to sell your property, then you’ll have much more leverage as a buyer. Because you won’t hold up the buying process and this is appealing to sellers.

3. What’s included in the sale of your home?

You might find the previous owner has left some items behind. This can be great news for buyers. These items include electronic goods like fridges, washing machines, freezers or things like sheds.

We tend to find that this doesn’t apply to new build properties as they come as standard or agreed upon prior to being built and the additional items you buy can be fitted and ready on moving in day.

This can save the buyer can save time and money, however, can be an issue for those who don’t want these items as you will have to find a way to dispose of them.

4. What are the neighbours like around your property area?

Having great neighbours can make an average property a great place to call home. If you are looking into an area in which you have no knowledge or experience it’s worth asking people around for their point of view. If you move into a new build, then you and your neighbours will be the ones building a nicer community.

5. How much does it cost to run?

Running costs vary on the property and the location which is why it’s useful to do your research and ask the right questions. You should be looking into things like how much the Council Tax, utilities or asking the seller. By knowing these factors, you can help budget for each property.

6. Which direction does the building face?

If you enjoy basking in natural light, the direction the house faces can make a big difference. You’ll often pay a premium for a south-facing garden as they receive the most sun throughout the day.

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

This can have a significant impact on your budget. With this in mind, below are some key things to enquire about are:

  • Looking at how energy efficient the house is
  • Notifying of any damp issue
  • Altering the furnishing

8. Are you open to offers?

Negotiation is a common part of the house-buying process. To find out how to make an offer if you’re interested in the property so that you can act quickly once you decide.

If the seller or estate agent is open to it, think about discussing what may be deemed too low or too high as well as finding out if any other offers have been made and rejected.

9. When can we move in?

If you’re set on a particular property, the next thing you need to know is when you can start making the place your home.

You may have gained an inclination by asking some of the earlier questions, but by setting a date in your diary, you can plan your other jobs, such as instructing a conveyancing solicitor, packing your belongings and arranging a removal van.

Moving Home Mortgage Advice in York

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. For further Life Insurance Advice in York, feel free to get in touch with our great team.

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 Life Insurance Specialist 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.

Yorkmoneyman.com & Yorkmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
Should you have cause to complain and you are not satisfied with our response to your complaint, you may be able to refer it
to the Financial Ombudsman Service, which can be contacted as follows

The Financial Ombudsman Service, Exchange Tower, London, E14 9SR
www.financial-ombudsman.org.uk

© 2022 Yorkmoneyman

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

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