How to Improve your Credit Score in York?

When you apply for a mortgage, having a high credit score improves your chances of being successful. That being said, a high credit score alone won’t guarantee that the financial institution will approve your mortgage.

Every mortgage lender has its own unique mortgage lending criteria, meaning a high credit score in the eyes of one, might not necessarily be a high score in the eyes of another.

Speaking to a mortgage broker in York, like ourselves, is just one of the great ways to improve your chances of success. Using our knowledge of mortgages, we’ll look to get you matched up with a suitable lender for your circumstances.

If you want to get a much more in-depth knowledge of your credit score, you can take a look at a wide variety of credit scoring agencies. For people seeking mortgage advice in York, you will probably come across the bigger names, such as Experian or Equifax.

It is important to check more than just one of these though, so you can get a more accurate look at how your credit file is currently. It also helps to spot any mistakes or inconsistencies amongst the different platforms.

Limit Your Credit Search to a Reasonable Amount 

Of course if you’re doing multiple credit searches, you may also harm your chances of getting a mortgage approved by a mortgage lender, especially if you are doing too many.

Instead, try to limit it to a small selection of trusted credit scoring websites, in order to prevent doing any potential harm to your mortgage chances.

Ensure That You’re on the Voters’ Roll 

People on the voters’ roll are considered to be much more stable and organised than people who are not, and it is something that will reflect positively on your credit score.

If you have not done this before or have not updated your information, it may be worth doing so in order to possibly improve your credit score and consequently, your chances of being accepted for a mortgage.

Don’t Max Out Your Credit 

Another way to improve your credit score is to know your maximum credit limit and make sure you don’t go over that amount.

Maxing out your credit limits your credit score may not help with your mortgage lenders perception of your ability to stabilise your finances.

A mortgage lender will prefer to work with individuals of whom they know can maintain their finances responsibly, with minimal to no risk of falling into arrears.

Ensure to Update Your Address History Properly 

It is very important to update your address history to ensure that your provider knows where exactly you live at a given time. Failure to do so could give the impression that you’re living in two places at once.

Ensure that the details are correct, especially if you live in a flat- which could be quite difficult due to different address formatting.  

Terminate Dormant Credit Accounts 

If you have any old credit accounts that you no longer use, contact the providers to close the accounts. Doing so will be sure to streamline your finances, protects you from fraud and reduces the risk of harming your credit score.

End Your Financial Links to Others  

If you have family, an ex-wife or husband, or any other person that you are financially linked to, it is important to sever those ties prior to a mortgage application.

The truth is, those links may potentially harm your credit score, especially if that person develops a poor credit score of their own. Due to the link, your score will also go down.

Get in Touch with a Mortgage Broker in York

Whether you’re a first-time buyer in York, looking to remortgage in York, moving house in York or any other kind of mortgage scenario, your credit score should always be one of your top priorities.

Book online to speak with a mortgage broker in York. A dedicated advisor will talk you through any necessary steps for you to take.

Getting Prepared For A Mortgage in York

First Time Buyer Mortgage Advice in York

If you have been saving up for a property and are ready to finally put a deposit down on a potential new home, it is now time for you to get prepared for a mortgage!

You may be a first time buyer in York, jumping into the world of mortgages with no experience. You could be moving home in York, looking to get a mortgage on another property you have your eye on.

In any case, obtaining open and honest mortgage advice in York will be beneficial ahead of your mortgage process, as one of our trusted mortgage advisors will guide and support you all throughout.

Below are some helpful tips on how to get mortgage ready, including information that can help you be prepared for the mortgage application process.

Get Mortgage Ready in York

Here at Yorkmoneyman, a member of our dedicated mortgage advice team in York will be on hand to provide you with help and guidance all throughout your journey.

They will be there to answer all of your mortgage questions, suggesting the most appropriate course of action for you to take.

A true benefit of obtaining mortgage advice in York is that you will be able to take a look into the amount you will be able to borrow for a mortgage, as well as gaining an understanding of your monthly costs.

Once we have carried out an affordability and borrowing capacity assessment, your designated mortgage advisor in York will take a look through 1000’s of mortgage products in order to find the best one for your circumstances.

In order to do this, they will request that you provide them with an up-to-date credit report, so that they can understand your current financial position.

Agreement in Principle

In the beginning of your mortgage process, you will need to look at obtaining an agreement in principle. This should be a priority for you, as you won’t be able to make an offer without one.

As a mortgage broker in York, we are typically able to obtain this for you, within 24 hours of your initial mortgage appointment. This will hopefully mean you have one less thing to stress about.

In addition to this, you will need to provide some proof of your identity. This includes your name, where you live and how much you earn.

With a lot of paperwork required, it is best that you keep organised. Collect documents in advance and create a file for these, so that you don’t lose them.

Proof of ID

As mentioned, you will need to prove who you are in order to get started with the mortgage process. It needs to be photographic like a driver’s license or a passport.

A driver’s license can also be used for proof of address, though if you use it for this, you will need a separate document as proof of ID.

Proof of Address

Once again, as discussed above, you will also need to provide evidence of where you currently live. You can do this by sending in a utility bill or original bank statement that is dated within the last 3 months.

Last Three Months Bank Statements

Other big factors in whether or not you qualify for a mortgage, are your spending habits and how well you manage your finances.

Bank statements will be able to showcase both of these to your lender, going into detail about what comes in and what goes out of your account.

Lenders will prefer looking at your bank statements as it shows you would be able to meet your monthly mortgage payments along with your other expenses.

Another factor that lenders may look at, is if you have any gambling transactions on your bank statements.

If you are a frequent gambler, this is something lenders will not like seeing because it is a spending habit that could potentially cause issues in the future.

If you happen to be a regular gambler, the lender likely won’t want to risk it affecting your ability to pay back a mortgage. Exceeding your overdraft on a regular basis or having consistent bounced direct debits will also be detrimental.

Proof of The Deposit For Your Mortgage

Further to the above point, you will also need to evidence where your deposit funds have come from. Doing this is important, and keeps everything in line with anti-money laundering regulations.

You will be required to answer questions about your deposit and how exactly you were able to raise the funds to cover that amount.

To avoid questions and looking suspicious, we would highly recommend that you avoid moving larger funds around from account to account. This would confuse the audit trail and flag up to the lender.

They like to see that you saved up your money for the deposit, preferably inside a savings account of some kind.

Gifted Deposits

Throughout our time working as a mortgage broker in York, we have seen an large increase in the popularity of gifted deposits, especially amongst first time buyers in York, looking to find their footing on the property ladder.

When it comes to gifted deposits, you need to evidence this correctly, regardless of your mortgage scenario.

Gifted deposits are typically donated from a family member or friend. Whomever the donor is, they must verify in writing that this is strictly a gift and not a loan to be paid back.

Proof of Income

In order to prove that you actually can afford a mortgage, you must also evidence your income. You will be required to show your last 3 months’ payslips and your most recent P60.

Elements such as regular overtime, commission, shift allowance and bonuses are something else that a mortgage lender will need to know about ahead of time.

If you are self employed in York, proving income is a little different to other applicants, as you will need help from your accountant by requesting a tax year overview.

A List of Your Expected Outgoings

It is recommended that you look into what your estimated outgoings are as this can help you with being prepared for a mortgage in York.

Looking at your outgoings, such as council and utility bills. This will be helpful when comparing with your other monthly expenses such as food and drink.

Bearing all of this in mind, you will be able to get a rough estimate of the amount of disposable income you will need to pay out mortgage payments.

If you are at the point of applying for your mortgage in York, it can be challenging to do alone. Going through the mortgage journey with an expert mortgage advisor in York can make this easier for you.

Book your free mortgage appointment using our online booking feature today. Choose a time slot that suits you, and speak to an experienced mortgage advisor in York, subject to availability.

Armed Forces Help to Buy Scheme in York

Help to Buy Mortgage Advice in York

It’s great news for any military personnel! This is because according to Army Families Federation Defence Secretary, Ben Wallace, the current Armed Forces Help to Buy Scheme has been extended until the end of 2022!

It was originally introduced way back in 2014, this £200 million scheme was brought in as a means of helping those in the military to get onto the property ladder. It was meant to go away in December of 2019, but thankfully it stuck around!

How does this help to buy work?  

Eligible military personnel will be able to borrow a deposit that is up to half their annual salary (a maximum of £25,000), without any interest added on. This can either be used to purchase their first home as a first time buyer, or move into a new home.

The best part of using this scheme is that you won’t need to have any current savings in order to get a home. A portion of the money that is raised from the loan can be put towards either your deposit, or something else, such as: 

• Stamp duty 
• Estate agent fees 
• Solicitors fees 

This is amazing for forces personnel and even better yet, the majority of mortgage lenders will accept the loan as your deposit for a new home.

The Forces Help to Buy Scheme is a lot more laid back than other schemes, allowing you to pay back your loan over a period of 10 years. This means you don’t have to feel so rushed and can enjoy life in your new home.

Once before, you may not have thought you could ever own your own home. Times have changed though and so long as you have served your country and can meet the right criteria (length served, service term left and medical categories), you will meet the eligibility criteria for purchasing a home using this scheme.

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

How a mortgage advisor in York may be able to help

Our fast & friendly mortgage advice team in York will support you from day one. From your first call, until completion and beyond, your dedicated mortgage advisor in York will be there to make sure you end up with the best deal for your circumstances.

As a company, we are proud of the levels of customer experience we provide, reducing stress levels and getting results. Book your free mortgage appointment and we will see how we are able to help you with your Forces Help to Buy mortgage.

Please note, the Forces Help to Buy is not the same as the standard UK Help to Buy scheme.

The Different Types of Mortgages Explained

The Different Types of Mortgage

Whether you are looking to buy a home as a first-time buyer in York, are moving home in York, or are ready to remortgage in York, you’ll quickly begin to realise there are a lot of options out there for you when it comes to taking out your mortgage.

In this article we have put together a comprehensive list of the most popular types of mortgages available to customers on the mortgage market.

If you have any questions regarding any of the mortgage options that we talk about below, then please do not hesitate to get in touch with a dedicated mortgage advisor for expert, open & honest mortgage advice in York & surrounding areas.

What is a Fixed-Rate Mortgage?

A fixed-rate mortgage will mean that your monthly mortgage payments will remain unchanged for the duration of your mortgage term.

The length of which you want to fix your payments for is your choice, with typical choices being somewhere around 2, 3 or 5 years or longer.

No matter what happens with inflation, the interest rates or the nationwide economy, you know that your mortgage payment, which is usually a person’s single biggest outgoing, will always be routinely consistent.

What is a Tracker Mortgage?

A tracker mortgage will serve the purpose of providing you with a mortgage interest rate that basically mimics the Bank of England’s base rate.

This means that neither yourself or the mortgage lender will set the rate and it will change as and when the base rate does. If the base rate goes up, your interest rate goes up. If it goes down, yours will go down too. Of course, this happening is beneficial to you.

You will be paying back at a percentage that is above the Bank of England base rate. If we use this in an example; Let’s say the base rate is 1% and you are tracking at 1% above base rate, that means you will be paying back your interest a rate of 2%.

What is a Repayment Mortgage?

When you take out a repayment mortgage this means that each month you will be paying back a combination of both the interest and capital. This is the standard mortgage people think of when looking to buy a home.

Going off the basis that you are able to keep your payments going for the mortgage term duration, you will be guaranteed to have paid it off in full and own the home of your dreams by the end of it.

This is generally, across the industry and wider world, considered the most risk-free way to pay your capital back to the mortgage lender. Early on in your term, the amount you’ll be paying will be mostly the interest, with your balance reducing at a slower rate. This is especially the case if your term is 25, 30 or 35-years.

The process quickens up within the last ten years or so of your mortgage, where you will be paying back more capital than interest, with the balance reducing at a far quicker rate.

What is an Interest-Only Mortgage?

Whilst we do still regularly encounter many buy-to-let mortgages being set up on an interest-only basis (this is an option that works out much better for many landlords), it is increasingly more difficult these days to get a residential property on an interest-only mortgage.

The reason for this is because once you reach the end of your term, you will still have the full mortgage amount to pay off all in one go, with no additional income to fund the amount you’re required to pay.

That being said, there are various unique circumstances where this can be a suitable option for customers, including downsizing when you are older or if you happen to have other investments you are able to use to pay back the capital.

Lenders are often incredibly strict when it comes to offering these products now and the loan to values tend to be much lower than they were in previous years.

What is an Offset Mortgage?

The way an offset mortgage works is that your mortgage lender will set you up a savings account that will work in tandem with your mortgage account.

To explain this using an example, let’s say that you have a mortgage balance of £100,000 and you deposit £20,000 is into your savings account, you will only be paying interest on the difference between those figures, which in this instance would work out at £80,000.

This can be a very efficient way of managing your finances, especially if you are wont to be paying higher rates of tax.

Should I Go With a Product Transfer or a Remortgage?

Open & Honest Remortgage Advice in York

What is a Product Transfer?

When the mortgage deal that you are on initially finally reaches the point of confusion, your mortgage lender may wish to offer you a new deal for you to accept, ensuring that you stay with them. This kind of deal is known as a product transfer.

Are you rewarded for being loyal?

Although it would be nice, you will not be rewarded by a mortgage lender for your loyalty. The offer that they make you may not be competitive with the kinds of deals you could have access to elsewhere.

What also tends to be an annoyance for customers, is that the mortgage rates for these product transfers are not as good as the types of rates they would be offering their new customers. Great for a first-time buyer, not so much for an existing homeowner.

Tempted by an online switch?

It may look like a fairly simple, straightforward process to just swap onto your current lenders new deal, but please always bear in mind that it will be in your interest to at least have a look at what other deals you may be eligible for.

You might find that your lender tries to sway you onto their deal, without providing any mortgage advice.

This can be a really risky process, because if you go into their new deal without advice, you are essentially saying goodbye to all the valuable consumer protection you would otherwise have benefitted from by speaking to a Remortgage broker in York.

You’ll Be Giving Up Your Mortgage Rights

Over the years we have seen numerous examples of customers just agreeing to go onto these “follow-on” deals and locking themselves into a deal that is not appropriate for their circumstances.

The kicker here, is that because they agreed to move onto the deal out without taking any mortgage advice, they have waived a lot of their rights in terms of making a complaint about the lender or the deal.

We once had a mortgage case where a customer who was pregnant opted to take this route and was declined for a small further advance to fund some necessary home improvements a couple of months down the line. 

She was then left with having to pay quite a large early repayment charge in order to swap from her existing lender onto a new one who was willing to lend her the necessary funds to accomplish her home improvement goals.

Always Seek Mortgage Advice in York

After we have taken a look at your case, if we think a product transfer is the most suitable deal for you we will absolutely recommend that as a course of action for you. If we don’t think so, then we’ll look at where to go next.

When we arrange the mortgage for you as a mortgage broker in York, then all the regulation and consumer protection will apply to you.

In short, even if the mortgage process seems pretty quick and straightforward, we will still always recommend that you seek expert mortgage advice. A second opinion costs nothing and making a mistake when taking a new product can be something that ends up costing more than you thought it would.

If you are looking to remortgage in York, you’ll find that the mortgage market is highly competitive and savings can typically be made by a dedicated mortgage advisor scanning the market for a new and more favourable mortgage deal.

What is a 95% Mortgage?

A 95% mortgage is as simple as the name would suggest; you are borrowing against 95% of the price of a property, and then you are covering the remaining 5% with your deposit. An example of this is if you looked at buying a property that was worth £150,000 with a 95% mortgage, you would be putting down £7,500 as your deposit and borrow the remaining £142,500 from the lender. 

95% Mortgage Advice in York

Off the back of the March 2021 Budget, Boris Johnson announced a Mortgage Guarantee Scheme for mortgage lenders, making 95% mortgages more readily available from the bigger high street banks.   

This is fantastic news for First-Time Buyers and Home Movers alike, as this scheme will continue running until December 2022. Certain terms and conditions will apply though, which is something your Mortgage Advisor in York will be able to look at, to see if you qualify.    

All our customers who opt to Get in Touch will receive a free, no-obligation mortgage consultation where one of our dedicated mortgage advisors will be able to make a recommendation on the best possible route for you to take.

Can I get a 95% mortgage?

95% mortgages are usually accessible by both First-Time Buyers in York & those who are Moving Home in York. Whilst saving for a 5% deposit sounds like a pretty straightforward concept, you’ll still need to have an acceptable credit score and prove that you are able to afford your monthly mortgage repayments, in order to access a 95% mortgage.

Improving your credit score

A good credit score is essential in the process of obtaining any mortgage, especially a 95% mortgage. Things like paying any current credit commitments on time, ensuring your addresses are updated and checking that you’re on the voters roll, can all help with your credit score.

Affordability 

Affordability is another one that is important to take note of. By giving the lender details of your income and monthly outgoings (things like your bank statements will be necessary for this) and any pre-existing credit commitments, your lender will be able to get a general overview of whether or not you are able to afford this type of mortgage.

Can my family help me get a 95% mortgage?

Nowadays we see lots of family members helping each other get onto the property ladder, especially parents looking to further their children’s lives. The way this usually happens is by gifting the person looking to find their home, the deposit required. Known through the industry as the “Bank of Mum & Dad, Gifted Deposits are only intended to be a gift, and not as a loan. The lender will need proof that this has been agreed, before it can be used towards your mortgage. 

How do I choose the right 95% mortgage?

When looking for a 95% mortgage, you want to make sure you have the right type of mortgage. Each mortgage type works differently, with that choice allowing you to find one that is most appropriate for your personal and financial situation. 

Some homeowners and home buyers prefer Fixed Rate or Tracker Mortgages, mortgage types which mean you either keep interest rates at a set amount for the term given or have your interest rates tracking the Bank of England base rates.

Alternatively, you might find that Interest-Only or a Repayment Mortgages are more your style. Interest-Only allows cheaper payments until you need to pay a lump sum at the end (mostly now used for Buy-to-Lets), whereas a Repayment mortgage (a normal mortgage if you’d like) means you’ll be paying interest and capital combined per month.

How can a bigger deposit help with my mortgage? 

Seeing as a mortgage is such a large financial outgoing, you need to be prepared and need to be aware. You might find things like higher interest rates, remortgaging difficulties due to less equity and then negative equity all cropping up if you’re not. 

There is no need to worry though, as all these can be avoided if you’re savvy enough with your process to begin with. The more deposit you put down for a property, the less risk the lender will see you as. 

A larger deposit, of say 10-15%, would not only reduce the rates of interest by a noticeable amount, but would also give the property more equity and reduce the risk of negative equity, thanks in part to you borrowing less against the property. 

So, whilst the risks may seem intimidating, planning ahead and saving for a bigger deposit to access something like a 90% or even an 85% mortgage will be a massive help in your mortgage journey and something you’ll be able to reap the rewards from in the future. 

Information on Agreements in Principle and Credit Searches

Mortgage Advice in York for First-Time Buyers

Nowadays, First-Time Buyers in York are becoming more attentive to their credit score than they used to be. The public seems to be more conscious of their credit score role in obtaining a mortgage, so most people who contact us for Mortgage Advice in York seem to have already checked their credit report.

Credit Reporting Agencies

Credit reporting agencies like Experian, Equifax, and many others have come in handy in helping people get their credit report. However, for first-time homeowners, we often recommend Check My File. They offer a 30-day free trial and monthly £14.99 subscription package, which you can cancel at any time. Check My File provides a detailed credit report arranged in color-codes for ease of reference and understanding.

When offering clients Mortgage advice in York, they always inquire to know if we will check their credit score. We understand that excessive credit search could reduce one’s credit score, so we do not do any search unless with their permission.  

What is Hard Credit Search?

A hard credit search entails detailed scrutiny of your credit report. Financial institutions should seek a client’s permission before conducting a hard credit search. Lenders always want to get a more exact and in-depth knowledge of your financial history to know if you meet their requirements.

Meeting their credit criteria after a hard credit search highly improves your chances of getting your credit approved. You need to ensure that you can provide evidentiary support of the satisfactory documentation and ensure that there is no falsification or error in the details contained therein.

The downside of hard search is that it will be indicated in your credit report, which would be evident whenever someone performs a credit search on your account in the future. This isn’t such a bad thing, but when lenders see that you have multiple credit searches on your report within a short time, they could misinterpret it to mean that you’re applying for different credits concurrently.

They may not inquire to know the circumstances that led to these hard credit searches. Instead, they may conclude that other lenders performed these searches, and after their investigations, they threw away your application, so you had to move on to other lenders.  

What is Soft Credit search?

Soft credit search only assesses your finances to know what you can afford with your available credit. It basically applies to price comparison websites and identity verification.

In recent times, some lenders prefer to conduct a soft credit search, although it doesn’t provide them as much information about a client’s financial history as a hard credit search does. However, obtaining an Agreement in Principle from the lenders is a strong pointer that your mortgage application will be approved.

The significant advantage of soft searches is that banks and other financial institutions will not see how many soft searches have been done on your account. However, the number of soft searches will be visible to only you- and you’d be amazed at how many have been carried out on your account. Since banks and lenders cannot see this information, you can apply for an Agreement in Principle for a mortgage- and it won’t damage your credit score irrespective of the outcome of the application.

Speak with a Mortgage Advisor in York

Every aspiring homeowner wants to present themselves as financially responsible individuals. Therefore, it is pertinent to explore all legal routes of improving your chances of getting the property you desire at the lowest possible price.

This is the reason why the bulk of our mortgage advice in York revolves around helping people increase their credit score and keep their record in good standing to make them attractive for lenders and other financial institutions.

Sales Tactics of Estate Agents & Builders

Regardless of whether you are a potential First-Time Buyer in York actively seeking out your first home or a Home Mover in York with your house on the property market, you may have noticed that some of the larger estate agents and builders would prefer that you use their in-house mortgage advisor and conveyancing services.

Estate Agent Sales Tactics For Pushing You To Take Their Mortgage Advice

We have spent many years working as a dedicated and individual mortgage broker in York. We don’t work with banks, building societies or estate agents, we work solely for the customer. As such, we do often find ourselves speaking with customers who have been pressured by some estate agents to use their own in-house financial services. Some of the stories we have heard include;

Refusal To Put Forward an Offer

Many estate agents out there have track records of refusing to put an offer forward if you choose to use a different mortgage advisor instead of their own. At times they have also refused to put offers forward to the vendor, because someone who has used their in-house mortgage advice service has also made an offer that they’d rather show favouritism towards, even if it’s lower.

Overpriced Service Costs

Another sales tactic we see often, is the estate agents quoting immensely overpriced conveyancing fees. In the past we have had clients who have unfortunately had this happen to them. One was quoted more than £1,500 for a regular purchase.

With our dedicated mortgage advisors helping out, we got this cost down. Following this, we suggested that the client use another conveyancer in the nearby area and were able to get this down to £750. That’s exactly half of the quoted price.

Demanding Information & Being Pushy

Once you’ve made an offer, you might then expect a phone call detailing whether or not you’ve been accepted. It seems like the next logical step right? However, what tends to happen with some cases, is the estate agent will call up and demand to know which conveyancer you have used.

What follows is the estate agent refusing to take the property off the market, unless you agree that you will use their own in-house service. As you might imagine, their quotations will be extortionately overpriced and completely unfair to the customers, but they will put you on the spot and make you feel like you have no choice to take enlist their services. This is something a mortgage broker in York can absolutely help you be prepared for. So the questions that need answering then are…

Are These Tactics Legal? Do I Have To Use My Estate Agents In-House Mortgage Advisor?

Absolutely not, they are highly illegal. You have the freedom to go wherever you wish when it comes to your mortgage process. You can use any broker, any conveyancing or any other financial service. It’s all down to what you would personally prefer. You are under no obligation to use the services on offer from the estate agent, as their job is simply to foresee the sale between yourself and the vendor.

Popular Estate Agent & Builder Sales Quotes Include:

• “Keeping everything under one roof is easier with one point of contact”
• “If you use our services it will give the vendor peace of mind that everything will go through smoothly”
• “We will do all of the chasing of the solicitors for you and they’ll be more responsive to us due to the amount of work we send them”
• “You need to come in and see our mortgage advisor for your offer to be qualified”
• “Everything is likely to go through quicker if you use us”
• “We’ll give you a free carpet/washing machine if you use our (extortionately priced) recommended conveyancing service”
• “Your offer is more likely to be accepted if you use our mortgage advisor”
• “We get better deals than most brokers”

Be Careful & Stand Your Ground

Always remember, when negotiating a purchase price… Is it really within your best interests for the person selling the property you’re interested in buying, to know your personal financial situation and potentially know how much you’re able to borrow in order to pay for that property? Something which they can then use against you to convince you to use their own financial services?

Stay vigilant and make sure that if you don’t want to use it, they know this and do not guilt you into a trap. It’s your mortgage, your offer, your potential home. Getting in touch with a trusted mortgage advisor in York will help you be as prepared as possible, in advance of encountering these tactics.

Fast & Friendly Mortgage Advice in York

What is a Gifted Deposit Mortgage in York?

When it comes to Gifted Deposits, we often find that we are asked lots of questions. Below we will answer these questions in the simplest way we can, so you’re more up to speed when it comes to the mortgage process.

What is a gifted deposit?

Your gifted deposit can be either the full amount or a portion of the deposit gifted by someone who is able to confirm, with an agreement that you do not need to pay the gifter back in the form of a loan.

How can gifted deposits help?

Gifted Deposits are incredibly useful when customers have enough money for their monthly repayments but can’t afford the initial deposit for their home. You may also open yourself up to better rates if you are able to put down more deposit.

A Gifted Deposit can also be really helpful if you’re on a lower salary and can afford the monthly mortgage repayments but are unable to save your deposit upfront.

Who can gift the deposit?

Generally speaking it is your parents who can gift you the deposit, though this can be extended beyond just birth parents, to adopted parents and legal guardians. You may see this mentioned online as the “bank of Mum & Dad”.

You do have the possibility of using other family members for a Gifted Deposit, though this completely depends on individual lenders, so would require care when trying to find the right mortgage lender.

Do your parents know you need help?

We commonly find that clients aren’t aware that their parents can help with their mortgage, or don’t feel like they can approach them and ask for help. In truth, most parents are extremely willing to help their children get onto the property ladder.

Statistically, taking out a mortgage works out better than renting, due to you being able to potentially pay less per month on a property. Gifted Deposit can often come from inheritance, although parents have been known to gift it earlier on in life if they have saved enough already or have released a certain amount of equity from their own home.

Gifted deposit vs loans

Most lenders won’t accept a loan as a method of paying for your deposit, as this is an additional credit commitment and leaves the lender with uncertainty that you’d have enough disposable income to pay back both the loan and the mortgage at the same time.

Is there a maximum or minimum gifted amount?

There is no maximum limit on the amount of gift you can receive, though there are lenders out there that will insist that you put in at least 5% deposit from your own savings.

Who can benefit from a gifted deposit?

The people who benefit the most from this tend to be First-Time Buyers in York and Home Movers in York. It can also be useful when in conjunction with the Help-to-Buy Scheme, as the required 5% deposit, depending on the lender, can be paid via a gifted deposit.

What proof is required?

The majority of lenders will require a gifted deposit form. Depending on the lender, you may be asked to provide additional proof and ID (things like donor ID or bank statements).

Our Past & Present Apprentices | National Apprenticeship Week 2020 | NAW2020

For National Apprenticeship Week 2020, we thought we’d pause for a minute to think about to reflect upon our younger employees who recently completed their apprenticeships, as well as those who are currently working their way through one.

Following the success of earlier apprentices Thomas Bowes (formerly of the Customer Care team, now a Mortgage Advisor in York) and Laura Aves (a Dedicated Case Handler who assists our Mortgage Advisors in York), we decided that apprenticeships were the way to go when looking to hire new employees.

It gives us a feeling of pride and accomplishment, allowing youngsters to encounter an opportunity in what is likely their first employment, allowing them to learn and grow with skills they wouldn’t otherwise learn. We’re helping to build their futures whilst they’re also able to earn a living.

Recently Completed Apprenticeships

Former apprentice Michael Sallabank undertook a Digital Marketing Apprenticeship with the company.

Two years after his starting date and Michael is very much still a part of the Moneyman team. It’s been several months since he completed his apprenticeship and he’s now a fully-fledged digital marketer.

As a collective, the Marketing team helps create brand awareness, allowing potential home buyers to take their first steps towards Mortgage Advice in York.

Next, we have Chloe Masters, who is celebrating her 1st work anniversary today. Chloe is one of the youngest members of the Yorkmoneyman team, now becoming a Dedicated Case Handler.

Finishing her apprenticeship recently, Chloe now joins fellow former apprentice Laura in assisting the Mortgage Advisors in York with their work.

Current Apprenticeships

At this present time, the Yorkmoneyman group has three Apprenticeships. Lee Underwood, Daniel Beardsmore and James Lawson all joined the group in late 2019, undertaking a Digital Marketing Apprenticeship, the marketing disciples hope to take the mortgage head-on and create even more brand awareness for budding home buyers looking to find expert Mortgage Advice in York.

Here at Yorkmoneyman, we appreciate everyone who walks through our doors and we always enjoy watching our apprentices grow over time as both workers and people. We look forward to seeing who joins our team in the future!