Our 10 Step Mortgage & Home Buying Guide for First Time Buyers in York

To assist first time buyers in York, we have outlined the 10 steps involved in the mortgage process. This comprehensive guide is designed to provide you with the necessary information and preparation for your upcoming mortgage journey.

Here are the 10 steps involved in the process of purchasing a home and obtaining a mortgage:

• Free Mortgage Appointment
• Mortgage Affordability Assessment
• Agreement in Principle 
• Find A Solicitor
• Make an Offer
• Submit Your Documents
• Formal Mortgage Application
• Valuation/Survey
• Mortgage Offer
• Completion

First Step: Get in Touch for Your Free Mortgage Consultation

As a first time buyer in York, you have taken a major step in purchasing a home and securing a mortgage. This can be a daunting experience, especially if you are unfamiliar with the process. That’s where we come in. As a dedicated mortgage broker in York, our goal is to take the stress out of the process and help you secure a favorable mortgage deal for your first home.

When you reach out to us, we’ll schedule a free initial consultation with one of our experienced mortgage advisors in York. During this consultation, we’ll gather your information and understand your goals, before starting the process. Let us help you make this exciting step a smooth and stress-free experience.

Second Step: Mortgage Affordability Assessment – How are you doing Financially?

During your free mortgage appointment, your dedicated mortgage advisor in York will conduct a mortgage affordability assessment. This evaluation involves reviewing your monthly income and expenses to determine if you can afford the monthly mortgage repayments for the amount you wish to borrow.

This assessment is critical, as it helps us ensure that you are able to afford your repayments and avoid the risk of default and potential repossession. This is something that both the lender and we strive to avoid.

Typically, the lender will conduct their own affordability assessment, but our initial check will save time for everyone involved, including the lender, us, and most importantly, you. It also helps prevent any potential declined applications due to affordability issues.

Third Step: Obtaining a Mortgage Agreement in Principle

As part of your free consultation, obtaining a Mortgage Agreement in Principle is the next step. If you’ve been researching mortgages before seeking first time Buyer mortgage advice in York, you might have come across various names for this, such as ‘Decision in Principle’, ‘Mortgage in Principle’, or the abbreviations ‘DIP’ and ‘AIP’. Regardless of the name, these all refer to the same thing.

A Mortgage Agreement in Principle serves as proof that you have cleared a lender’s initial credit assessment, either through a hard credit search (which leaves a record) or a soft search (which does not leave a record).

This agreement is not a guarantee of mortgage approval, but it is a crucial step towards your ultimate goal. Having this document also demonstrates to a property seller that you are sincere in your intentions, potentially leading to better negotiation opportunities. An AIP typically lasts 30 to 90 days and can be easily renewed if it expires. Our team can usually provide you with an AIP within 24 hours of your initial appointment.

Fourth Step: Finding the Right Solicitor

Having secured an Agreement in Principle, the next step in your home buying journey is to find a Conveyancing Solicitor, also known as a Conveyancer. This professional is responsible for handling the legal aspects of transferring ownership of the property from the seller to the buyer.

Your Conveyancing Solicitor will be responsible for several key tasks, including reviewing and negotiating contracts, providing legal advice as needed, conducting local council and authority searches, working with the Land Registry, and finally, transferring the funds needed to purchase the property. Given the critical role that this professional will play in the process, it’s important to choose wisely.

It’s worth noting that there are two types of Conveyancing professionals: Licensed Conveyancers and general Solicitors. Licensed Conveyancers are specialists in property law but may not be equipped to handle more complicated legal issues. On the other hand, general Solicitors offer a full range of services, but their services may be more expensive. While your mortgage advisor in York may not offer these services in-house, they have a list of trusted companies that they can refer you to.

Fifth Step: Making an Offer on a Property

You have successfully taken several crucial steps in your journey towards homeownership. After speaking with a mortgage broker in York, passing the Mortgage Affordability Assessment, and finding a Conveyancing Solicitor, you now have an Agreement in Principle in hand. This agreement, which confirms that a lender is willing to provide you with a mortgage for a certain amount, puts you in a much stronger position as you move forward to make an offer on the property you have your eye on.

When making your offer, it’s important to keep in mind that you don’t want to offend the seller by making an offer that is too low. However, don’t hesitate to negotiate the price. Having an Agreement in Principle in hand demonstrates to the seller that you are a serious buyer and that you have the financial capability to follow through with the purchase. This could increase the likelihood of the seller accepting your offer over others who may be willing to pay the full asking price, but lack the same level of preparation.

In the event that the seller declines your offer, it’s not the end of the road. You can either make a revised, more reasonable offer or choose to move on and find another property. If your offer is accepted, it’s time to return to your mortgage advisor and take the final steps towards securing your mortgage and completing the purchase of your dream home.

Sixth Step: Submit Your Documents 

 With the legal side of the home buying process taken care of, it’s time to focus on the mortgage aspect. One of the key steps in this process is submitting the required documentation to the mortgage lender. Given the large sum of money involved, the lender will need to ensure that they are lending to the right person and that they are able to repay the loan.

To verify your identity, financial status, and ability to repay the loan, you will need to provide a range of documentation, this includes:

• Proof of your ID.
• Proof of your address.
• The last three months of your payslips.
• Your latest P60 (if you are employed).
• The last three years of proof of earnings and Tax Year Overviews (if self-employed).
• Proof of any additional income you may receive, proof of your deposit.
• Last 90 days of your bank statements.

If you are obtaining a joint mortgage, this documentation will be required from both parties.

Seventh Step: We’ll Progress Your Mortgage Application

With your mortgage offer being accepted, it’s time to move forward with the submission of your full mortgage application. Our dedicated mortgage advisor in York and their team of Mortgage Administrators have thoroughly reviewed and prepared all the necessary documents, so we are ready to submit your application to the lender.

Your advisor will send the collected evidential documentation to the lender, and then it’s just a matter of waiting for their decision. Although there is no set timeline for a response, our Mortgage Administration team will be monitoring the progress of your application and will follow up with the lender to ensure a prompt resolution. They will keep you informed of any updates and will be there to help if the lender decides to accept or decline your mortgage application.

Eighth Step: Property Valuation / Survey

Between the submission of your mortgage application and being offered a mortgage, the lender will require a property valuation survey to be conducted. This survey is usually performed by a trusted and accredited company nominated by the lender.

The purpose of the survey is to determine the true value of the property compared to the agreed purchase price. If the purchase price exceeds the actual market value, the lender may be less inclined to approve the mortgage, as in the case of default, they may not be able to recover the full borrowed amount. This scenario is commonly referred to as a “Down Valuation”.

There are various types of surveys available, each with different levels of detail and varying costs. Some surveys simply determine the property’s value, while others provide information about potential structural issues and necessary repairs for the future. Your mortgage advisor in York will assist you in selecting the appropriate survey for your needs.

Ninth Step: Receiving Your Mortgage Offer

The time has finally arrived – after your lender has reviewed your case and evaluated all the supporting documentation, they will present you with a mortgage offer.

At this point, our team of knowledgeable and friendly mortgage advisors and administrators in York, whom you have become familiar with throughout the process, will review the offer to ensure accuracy and completeness. Upon receipt of the mortgage offer, your Conveyancing Solicitor will then take over and guide the purchase to completion.

Tenth Step: Completing The Process 

As a new homeowner in York, you have reached a significant milestone in your life. You have successfully navigated the complex process of purchasing a home for the first time, and we extend our heartfelt congratulations to you. With the stress and uncertainty of the buying journey now behind you, it’s time to settle into your new home and enjoy the rewards of your hard work and dedication.

The next step in your journey is to obtain the keys to your new home and begin the process of moving in. This is an exciting time, filled with anticipation and the possibility of creating new memories and experiences in your new surroundings.

We are proud to have been a part of your journey and to have provided you with the support and guidance you needed along the way. Our team of mortgage experts in York is committed to delivering a fast and friendly service that is tailored to your unique needs and circumstances. We understand that purchasing a home is a big commitment, and we strive to make the process as seamless and stress-free as possible.

If you have chosen a fixed-rate mortgage, rest assured that we will be in touch with you at the end of your term to assist you with your Remortgage needs. Our goal is to ensure that you continue to enjoy the benefits of homeownership for years to come, and we look forward to serving you once again in the future.

Why Do People Remortgage in York?

A remortgage is where you take out a new mortgage to pay off and replace your existing mortgage. There are plenty of reasons to do so. Remortgaging will not always be the right decision for every homeowner but could be an effective way to achieve the next step in your home ownership goals. 

Reaching The End of Your Fixed-Period in York

We tend to find, homeowners usually set their rate for 2-5 years, enabling them to keep the same consistent interest rates for that period.

A homeowner will typically look to take out their remortgage towards the end of their fixed period. Here at Yorkmoneyman, we tend to contact our customers about 6 months earlier, so we can go through the background process, allowing a smooth transition when a mortgage ends and your new one starts.

It is important not to remortgage any earlier than this, to avoid any potential early repayment charges.

Alternatives to a Remortgage 

It is also important to understand the alternatives before considering remortgaging. For example, some homeowners may want to remortgage to create more space in their homes. Whilst this could be one option, other homeowners may simply look to move elsewhere.

Another option is doing a product transfer. While a remortgage usually takes out a mortgage with a new lender, a product transfer switches to a new deal with the same mortgage lender.

Finally, if you are above the age of 55 and own a property that is worth at least £70,000, you may have the possibility of taking out an Equity Release plan. We recommend you speak with a qualified later life mortgage advisor in York to see if this is the right option for you.

Ask for a personalized illustration to understand the characteristics and risks of a lifetime mortgage. A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means tested benefits. The loan plus accrued interest will be repayable upon death or moving into long term care.

That is why seeking remortgage advice in York might be a good option and speaking to a remortgage advisor in York can help in many ways. Below we listed some of the most popular reasons we hear why homeowners choose to remortgage.

Remortgage for a Better Term or Deal

One of the most common cases where a homeowner might want to remortgage their home is so that they can get a better mortgage term or mortgage deal.

When your introductory or fixed-period ends, you will switch onto your mortgage lenders Standard Variable Rate (SVR), which is typically a higher rate of interest and therefore more costly.

It is exceedingly rare that this will be a better option for you, so the vast majority will instead look to remortgage onto a much better deal. Using the equity that is in their property, they will have access to a lower loan to value deal, lowering their interest rates and overall costs.

If you prefer to pay off your mortgage quicker instead, you may also have the option of keeping your monthly mortgage payments the same, whilst reducing the overall length of your term. This will also possibly save you money, as you will be paying less interest overall.

Remortgage to Release Equity

Every home will have an amount of equity built up. This equity is the difference between the property’s value and the remaining mortgage balance. As the balance decreases, equity increases. If the value of the property increases, so does the equity too.

Homeowners may have the option to remortgage to release equity, to use for a variety of means. Here we listed some of the main reasons you may want to look into equity release in York.

Home Improvements

Over time, you may need to make some necessary changes to your home, especially if you prefer to live there rather than move elsewhere. Our mortgage advisors in York often speak to customers who are looking for remortgage advice in York, to discuss their options to remortgage for home improvements.

These home improvements can be from a home extension to create some extra space, make some improvements to the existing rooms or completely remodel your kitchen, it can be a great option for homeowners to make these changes and sometimes adds value to your property.

Keep in mind that most mortgage lenders will want to see quotes for the work that is to be carried out if this option is something you are looking to do.

Energy Saving Alterations

More important than ever before, a homeowner may want to spend now and save later by making energy-saving alterations.

The installation of solar panels has become popular for some as an energy source, as well as devices that can convert wind into energy. Insulating your walls, replacing doors and windows. These can be great options for those who want not only to be greener but also to save money.

Debt Consolidation

Whilst a remortgage to consolidate debts can be a great option for some, it is not a decision to be made lightly, and we would recommend taking remortgage advice in York ahead of time.

Debt consolidation will typically see you combine your unsecured debts with your mortgage, into o a single manageable monthly outgoing. Although it will hopefully reduce your expenses, it will cost more overall on interest, as it will extend throughout your term.

You should think carefully and speak with a mortgage advisor in York before securing other debts against your home. By adding your unsecured debts to your mortgage, which is secured on your home, you are potentially putting your home at risk if you cannot make the required repayments. 

Although the total monthly cost of servicing your debt may have reduced, the total cost of repayment may still have risen as the term of your mortgage is longer than it may have taken to repay the debts originally.

Gifted Deposit

Other reasons why a homeowner may look to remortgage to release equity, to provide someone they know with a gifted deposit. This is more common with parents who will release part of their equity so that their child can get onto the ladder of the property.

This gifted deposit can be used as all or part of the deposit for a house that their child wants to buy. You will also have to sign a form stating that this is a gift, not a loan, and evidence of where the funds came from.

Free Remortgage Review in York for all Customers

If you are heading towards the end of your fixed-period and are looking at remortgaging advice in York for either one of the options mentioned above, or even perhaps another reason altogether, please feel free to get in touch or book your free remortgage review to speak with one of our remortgage advisors in York today.

You will benefit from their expert remortgage advice in York. They will search thousands of remortgage deals to help you find the most suitable deal for what it is you are looking to achieve. 

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.

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.

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.

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:

• Mortgage Protection Insurance Explained
• Income Protection Insurance Advice in York
• Critical Illness Insurance Advice

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

First Time Buyer Mortgage Advice in York

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

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

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