Here at Yorkmoneyman, we understand that getting onto the property ladder for the first time can be a daunting process for many, in particular, when you’re planning to purchase a property by yourself. Through our experience in dealing with first time buyer in York, we find a number of them look to buy a property with a friend or partner if it is appropriate to do so. This is because having two applicants can result in increasing the likelihood of being offered a mortgage as the costs will be split between the two of you.
When it comes to working out your maximum mortgage amounts, lenders will take into account the two incomes. It’s important to understand that if one defaults, the other could also be responsible for the full mortgage. Below we are going to talk about a few points we recommend as a Mortgage Broker in York to be aware of when moving into a property with someone else:
Many lenders will allow a maximum amount of four people to co-own a property. This might sound appealing to some as you will be paying a lot less towards the mortgage, however, there is a higher risk of someone backing out. This is why you need to be careful when choosing who you are purchasing a property with.
You may consider increasing your mortgage further down the line, however, all borrowers will need to agree. From this, it’s important to consider your future and establish the duration you are looking to stay within the property.
This option is commonly popular with civil partnerships or married couples. In the unfortunate event of one of you passing away, then the property will automatically be passed to the other owner. The law treats joint tenants act like one. Because of this, joint tenancy can be favoured amongst married couples or applicants.
In instances where you are looking to remortgage or sell the property, both parties need to agree to the decisions prior to proceeding with anything. ‘Tenants in Common’ can be a potential option to choose if you are sharing with a friend or relative. This option is where you both equally own the property.
You aren’t obliged to do so in shares. This is where one party makes a more significant financial input than the other. As a ‘Tenant in Common’, you can act of your own volition. For example, you do have the right to sell or give away your share of the property to another person.
In the case where one of you fails to pay their share of the mortgage, the other(s) will have to contribute to the shortfall in order to pay the full amount. From the start, a mortgage lender will state that all borrowers are mutually and severally liable.
When you buy a house with a partner it isn’t with the intention of splitting up in the future. It’s a big financial commitment, therefore, any potential changes you want to make in the future can often become a complex situation.
In the circumstance where children are involved, only one person will be staying in the home. There might be a point in time when that person would like to manage the mortgage on their own so will need to seek expert Mortgage Advice in York.
Regardless of whether you have been paying the mortgage without the assistance of your ex, this doesn’t change the point of the application being processed in joint names. Therefore, in the case of mortgage arrears, both of you will be responsible despite only one person keeping up with the payments.
Prior to removing a party from a mortgage, the lender will need to be sure that the remaining applicant can keep up the affordability on their own going forward which will then lead to a full assessment of income. This will still be carried out regardless of whether you have kept up mortgage payments in the past or not.
In some cases, someone can step in to replace the ex-partner such as a family member or a new partner. Through this change, an expert Mortgage Advisor in York is able to help you with this change.
Remember, all parties remain responsible for any joint financial commitment, even in the case of a separation/divorce. This is regardless of whether a person leaves the family home and even if both parties come to an agreement that one person will make up the payments.
In terms of purchasing a new property, the mortgage payments on the old property will be accounted for. This means that it’s key that a person should get Mortgage Advice in York before making an offer if you are in this situation. When it comes to the amount you could borrow does depend on how generous the lender is. Here at Yorkmoneyman, we will keep this in mind when recommending the most appropriate lender to apply for a Mortgage Agreement in Principle with.
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.
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.
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 webpage by clicking here.
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:
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.
If you are interested in the Lifetime ISA and want to begin your mortgage journey. 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.
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.
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.
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.
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.
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.
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.
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.
This can have a significant impact on your budget. With this in mind, below are some key things to enquire about are:
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.
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.
It’s great news for any military personnel! From 1 January 2023, The Forces Help to Buy Scheme will become an enduring policy, ensuring its availability to all service personnel now and in the future.
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!
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:
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.
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 mortgages in York is not the same as other standard UK Help to Buy Scheme.
There are lots of different types of mortgages, and some of them will be more suited to you than others. This is because each of them are different and can benefit you in different ways.
Here we are looking at the cashback mortgage and how it works. Will it benefit you and how does it compare to other mortgage options?
First of all, if you would prefer to watch our cashback mortgage YouTube video, make sure to watch it below. We regularly post helpful mortgage guides and tips on our YouTube channel MoneymanTV. Make sure to subscribe if you enjoy our content!
To put it simply, with a cashback mortgage, after you complete your term, you will get some money back.
The way that this is worked out is through a percentage of what you have borrowed. It’s usually something small like 1%-2%. In some cases, lenders will state a fixed amount in your mortgage contract.
Like all types of mortgages, Cashback Mortgages have both advantages and disadvantages. For example, you may be offered a free property valuation with your Cashback Mortgage, it all depends on your lender.
They are very popular amongst those looking to borrow lower mortgages. This is because you will get some money back along with some benefits on the side. If you get offered a competitive percentage on your Cashback Mortgage, it is worth considering as an option. You may get a lot of money back upon the completion of your term.
The disadvantage to Cashback Mortgages is that they often come with high-interest rates.
Cashback Mortgages, although they sound great, aren’t at the forefront of the mortgage market. They were more popular in the early 2000s.
It’s not a mortgage option that should be shoved under the rug, however. We still find customers taking out Cashback Mortgages; it’s not like they’re a bad choice. Quite a lot of buyers choose them as their backup option.
If you want specialist mortgage advice in York and want to speak with an expert, get in touch with our team. We have experience with lots of different types of mortgages and can help you find one that suits you the best. A mortgage advisor in York will be right by your side during the whole moving home process.
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.
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 is your choice, with typical choices being somewhere around 2, 3 or 5 years or longer.
No matter what happens with inflation, 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.
A tracker mortgage will serve the purpose of providing you with a mortgage interest rate that mimics the Bank of England’s base rate.
This means that neither you nor 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 the base rate, that means you will be paying back your interest at a rate of 2%.
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 can 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 the 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.
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 that 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 can use to pay back the capital.
Lenders are often incredibly strict when it comes to offering these products now and the loan values tend to be much lower than they were in previous years.
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 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.
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.
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 the priority is finding you a fair deal to match your circumstances.
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.
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. This will save time and some fees such as estate agents fees.
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 decide 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.
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.
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 as a first time buyer York, we are more than happy to help!
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.
Off the back of the March 2021 Budget, Boris Johnson announced a Mortgage Guarantee Scheme for mortgage lenders, making 95% of 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.
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 can afford your monthly mortgage repayments, to access a 95% mortgage.
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 voter’s roll, can all help with your credit score.
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 can afford this type of 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 upon before it can be used towards your 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 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.
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 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.
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 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.
Try it FREE for 30 days, then £14.99 a month – cancel online anytime.
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.
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.
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.
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.
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.
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 can afford to pay and how much different Lenders will let you borrow. You would be amazed at the vast differences between each mortgage lender 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 if something goes wrong during the process, our mortgage advisors in York can keep you updated on every step.
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 them 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.
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.
Speak to an Advisor – It’s Free!
7 Days a Week, 8am – 10pm