You may find that there are a lot of different circumstances wherein you are eligible for a second mortgage, as well as certain situations where a second person may be required to have more than one mortgage.
Some of these reasons for this can include:You are wanting to take out a second mortgage so that you can raise money for your existing home.
Maybe your name is already on an existing mortgage and you are looking at buying a new property?
If you have any existing equity that is in your home and you are looking to possibly take out a second mortgage as a means of releasing some funds, then our dedicated team of mortgage advisors in York will work hard to try and help you out.
In this kind of setting, a second mortgage is also called a secured loan.
You’ll likely discover that if you are currently on a lenders standard variable rate, a trusted mortgage broker such as ourselves will have the ability to shop around and find a more competitive deal for you, whilst helping you to release some capital.
A further advance with your current lender may also be an option that works well for you.
Perhaps you are wanting to move hold but would like to still retain ownership of your existing property, aiming to utilise it as a buy to let. Speaking with a specialist buy to let mortgage advisor in York will definitely work in your favour if this is the case.
The second mortgage that you end up with will be a new residential mortgage. Doing this is what is referred to in the mortgage world is a let to buy, which is always growing in popularity.
In some cases you might actually be exploring what options could potentially be available to you for helping your children or grandchildren in achieving their own goals of getting on the property ladder.
This is again something that is quite common these days and there are lots of products for people to choose from. Get in touch and this is something we will be quite happy to run through with you.
Perhaps you are looking to purchase a property that is a buy to let in York. In this circumstance you will be asked to put down a much larger deposit than you otherwise would’ve with a residential mortgage.
A lot of the customers who get in touch, tell us that they are currently named on another mortgage and are maybe looking to purchase another property.
Our mortgage advisors in York have come across this often enough to say we are well versed in dealing with a situation like this. A regular comment we hear is that this is due to divorce or separation. A member of our mortgage advice team will work hard to help in any way they can.
No matter the situation you find yourself in that would require a second mortgage, as an experienced, open & honest mortgage broker in York, we are able to take a look through 1000s of mortgage deals for you and on your behalf.
We will do all this so that we are able to recommend the most suitable product for you based on your personal and financial circumstances.
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 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.
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%.
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.
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.
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.
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.
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.
When applying for a mortgage, having a high credit score improves your chances of being successful. But then, a high credit score alone doesn’t guarantee that the financial institution will approve your mortgage because different lenders have their internal grading system that determines the approval of mortgage applications.
Because each lender has its unique set of criteria for approving a mortgage, another could accept you if one lender rejects your application. This trial and error kind of occurrence is the reason why you need a Mortgage Advisor that can direct you to the right lender that will approve your application. A good mortgage advisor will also help you assess your chances with the different lenders and help you get the best deal.
If you want to get an explicit knowledge of your credit score, you can contact lots of credit reference agencies to know your credit scores. For people seeking mortgage advice in York, we always recommend consulting Equifax, Experian, and several other credit reporting agencies to get your credit report. It is necessary to consult more than one, just if any of these agencies make an error in your credit report.
To get a higher credit score, below are some recommendations we have for people seeking mortgage advice in York:
If you’re always searching for credit multiple times, you could ruin your credit score and chances of having your mortgage application approved. Instead of damaging your credit score with repeated searches, it is best to use approved price comparison websites to get the best prices and know what’s available for you.
The truth is, if you’d be applying for a mortgage soon, it may not be wise to do credit searches within that period. Although lenders know that you will repay your credit, they do not want you to have debts when applying for your mortgage.
People on the voters’ roll are considered more stable and organized than people who are not, and it reflects positively on their credit score. To improve your credit score, you may need to update your current address and provide correctly every necessary information to enlist yourself on the electoral roll. This enlistment will improve your credit score, and lenders will rank you higher.
Another way to improve your credit score is to know your maximum credit limit and make sure you don’t get there. Maxing out your credit limits your credit score and makes lenders regard you as one who can’t manage their resources. Lenders want only to do business with financially responsible people, so exceeding a card limit or overdraft is considered a red flag.
It is necessary to update your address history to ensure that your provider knows where exactly you live at a given time. Ensure that the details are correct, especially if you live in a flat- which could be quite tricky due to different address formatting.
If you have old credit accounts that you no longer use, contact the providers to close the accounts. At first, lenders may be skeptical in the bid to determine if you requested for the termination or if the providers closed it themselves. However, it will be beneficial in the long run as it streamlines your credit score and protects you from fraud.
If you have family, an ex-wife or husband, or any other person connected to the spending of your finances, you need to remove those links. The truth is, those links weaken your credit score without making it obvious. Reach out to reference agencies and request to terminate the connections between you and these persons. Doing this will surely improve your credit score.
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. Get in Touch with a Mortgage Broker in York and a dedicated advisor will talk you through any necessary steps for you to take.
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.
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;
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.
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.
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…
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.
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.
COVID-19 has had a noticeable effect on the mortgage market thus far, but that won’t stop us from providing the same level of Mortgage Advice in York our customers know and love. At Yorkmoneyman, we are still working the same way we were before these hardships.
We still have hardworking Mortgage Advisors in York working remotely from their homes in order to answer all of your mortgage questions. Our number one aim is to ensure all customers have the option to speak to a Mortgage Advisor in York if they need to.
You may be worried you’re unable to meet your monthly mortgage payments or you’ve reached the point where you are looking for a better deal when you choose to remortgage in York. We have noticed that these two situations have been mentioned by quite a few customers.
As a Mortgage Broker in York, we would highly recommend speaking with one of our advisors before you go directly to the bank or lender. We’re able to assess your personal and financial situation, in order to recommend the best route for you to take.
We’ll do our best to help all those who come to us for help with their mortgage during these difficult months. We’re all in this together and look forward to it if you choose to get in touch.
Our Mortgage Advisors in York are still working through various different situations every day, keeping our business at our Mortgage Broker in York flowing normal as usual. We won’t let anything get in the way of us providing expert Mortgage Advice in York.
Customers have still been leaving excellent reviews over the last few weeks, something we’re incredibly proud of. We take great pride in our work and it warms our hearts to know that as a Mortgage Broker in York, we’ve done right by our customers.
Here is what a few customers have recently said about our service here at Yorkmoneyman:
“Absolutely fantastic service from Chris setting up my application, to Kayleigh sorting out the right remortgage for me, nothing was too much trouble. Cannot recommend them enough for sorting this out in a timely manner and during this pandemic. Thank you to each and every one of you.” – Mandy H
“Brilliant service from Jonathan and Megan, very smooth process and they have secured me a great mortgage deal. Will highly recommend Yorkmoneyman. Thank you.” – Daniel D
Remember, our Mortgage Advisors in York are still available for you to get in touch from 8am until 10pm, all 7 days of the week. Sincerely from everyone here at Yorkmoneyman, we hope you’re safe and well and we look forward to hearing from you soon to help with all of your mortgage needs.
We won’t let anything get in our way, especially during the COVID-19 outbreak. It’s still our aim to help with all your mortgage problems, it wouldn’t be fair to just leave you confused and concerned. Our Mortgage Advisors in York will do their best to get you over these hurdles and through the mortgage process with ease so that you get the property that you have your sights set on.
With the October 31st Brexit deadline behind us, it begs the questions as what our next move is as a country. With everyone in despair and uncertain about the things they hear in the news, it can be hard to find reliable advice.
Many people have been pondering on what the right path is to go down in terms of the property market, potentially losing out on chances which may have benefitted them in the future.
By overviewing the property market for many years and seeing how external factors have influenced it over previous years such as politics, our Mortgage Advisors in York are projecting their own ideas on the potential outcomes for customers post-Brexit. It would seem that there is a lot of pent-up demand at the moment.
It is for this reason that we are advising our clients to make sure they get the full advantage of all the options available to them, especially if they’re just waiting for the right time which may not work out in their favour. If you are thinking of moving in 2020, then we would advise you to come in and have a chat with us at your earliest convenience. We’ll try and get your home valued whilst Estate Agents are quiet.
The process of making sure your home is prepared and getting it on the market can take a few weeks. This is including the 2 or 3 valuations providing a secured opinion, the adequate time for you to decide on an Estate Agent, finalise your agency agreement and get the photos finalised.
Furthermore, if many other people thinking in the same way as you, waiting may hold you back. By the time new year approaches and your home is on the market – so is theirs. The more houses that are available on the market, the more options there are for potential homebuyers, which has the possible effect of lowering house prices.
By staying ahead of the market and not waiting to get your home valued now will mean many things, to list a few:
When the decision of Brexit is finally announced you have all the information there available at your fingertips.
The decision to sell is all yours, it is not a means to an end but it’s giving you a head start.
If you do decide to sell you have the incentive to spruce up your property but if you choose not to, you already know the figures and the feedback to possibly get the figure higher by carrying out a remortgage for home improvements.
So if you’re thinking of moving home in 2020 or the near future, contact us to discuss your mortgage options and if you are after Mortgage Advice in York. We offer all customers a free no-obligation consultation.
People who are married and seeking to be First-Time Buyers in York tend to opt for a joint mortgage rather than a sole name mortgage. This is because the combined salaries help them qualify for larger mortgages. This is beneficial because house prices have been increasing at a faster rate than wages.
Despite this, there are cases where it is best to only have one name on the application. Our Mortgage Advisors in York have provided information so we are able to explore these scenarios further in this article.
If one applicant has had a previous credit problem which is stopping them getting a mortgage, a sole name mortgage could be the right option. This is providing that the spouse or partner is not connected to the issue.
It is worth noting that the person applying would need to be careful to try and avoid creating a financial association with their partner. This is to guarantee that their own credit score remains unaffected by the issue.
When one applicant is not working, you might also want to consider making a sole name mortgage application. This is because the maximum borrowing capacity of the couple will, generally, be lower than if the working applicant opted for a sole name mortgage.
Age can also come into the calculation if you have one applicant in their 50’s. For example, if you buy with a younger partner who is a good earner, then it’s possible they could borrow more like a sole applicant.
It may simply be that there are stamp duty or other tax implications which would lead to an applicant preferring to apply on their own.
Some lenders are quite strict about married applicants having to apply for mortgages in joint names. Luckily not all lenders share this view, but it can be an exhaustive task identifying which ones hold this view.
When you have an offer accepted on a property your next job as a First-Time Buyer in York is to arrange a survey to establish the condition of the property and to ensure that it is worth what you are going to pay for it. If something is found on the survey you are then in a position by law to approach the seller to negotiate a price for the works required.
There are 3 main types of property survey available to you.
This is the basic valuation type and you will be required to pay for a mortgage valuation in order to secure a mortgage offer – this should not be confused with a full survey. The mortgage valuation confirms to the lender that the property is worth at least what it is lending you.
A Mortgage Valuation will not highlight any repairs that are needed, but it may point out any obvious defects and recommend that you investigate further. You will be required to pay for this investigation.
This survey will cover structural safety and highlights problems, including damp, as well as anything that doesn’t meet current building regulations. This kind of report will give you an independent report of your property by an expert.
To ensure you are not paying for two surveys it is advisable to ask the mortgage companies surveyor to carry out this report for you – it will usually take a couple of hours to complete.
This survey is advisable for older properties and those of a non-standard construction.
Depending on the property size and type – a full structural survey can take as long as a day to complete.
A full structural survey provides a detailed report on the condition of the property and highlights issues that should be investigated further before going ahead with the purchase, providing you with peace of mind about the condition of your property.
You can find a surveyor to carry out a Homebuyer’s report or building survey through the Royal Institution of Chartered Surveyors.
In the event that you have a current Buy-to-Let in York portfolio, it is conceivable to exchange ownership from your own names to a limited company if that suits your necessities and conditions.
If you choose to exchange your property portfolio with a limited company, you will trigger a deal and repurchase. Doing as such will bring about capital gains tax, stamp duty and the legal, Mortgage and valuation charges.
It is likewise imperative to take note that limited companies do have running expenses and lawful necessities, for example, documenting accounts. In any case, you will pick up the upside of tax-deductible costs, for example, Mortgage broker fees and lender arrangement fees.
This is a very specific territory and if you are thinking about making this move, it’s important that you seek specialist buy to let Mortgage Advisor in York, who will be ready to help you with the arrangement of top quality mortgage advice, backed up by introductions to appropriately experienced accountants and lawyers, if needed.