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How to Improve your Credit Score in York?

Way to improve your credit score | moneymanTV

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.

Mortgages for Newly Qualified Teachers (NQTs) in York 

Newly Qualified Teacher Mortgage Advice in York 

Congratulations, you have now passed all of the necessary exams and now class yourself as a Newly Qualified Teacher. Now it’s time for the next step, which is for you to now make use of your new skills and find yourself a teaching job using your well-earned qualification.

Depending on where you’ll be working, you will need to start looking into the different options that are available for you with Moving House in York, as you could be working further away from where you currently live.

Later down the line, you may find yourself looking to move somewhere else, perhaps maybe finding it a little more challenging between finding the balance between homeownership and getting into your new role.

Throughout our time as a mortgage broker in York, we have worked with a lot of home buyers and homeowners, all of whom benefitted from speaking with one of our expert Mortgage Advisors in York, to take the stress away whilst they keep their minds focused on their new career.

Newly Qualified Teacher Mortgages York

We tend to find, that it’s not always so straightforward to search for a mortgage lender who will be happy to offer a mortgage to someone who is a newly qualified teacher. Problems tend to appear when there isn’t any work history they can look at or because they only have a non-permanent contract.

Although these can be an issue, there are still many options out there for Newly Qualified Teachers who are looking to obtain a mortgage. Over our time as a mortgage broker in York, our responsive team of Mortgage Advisors in York has helped many newly qualified teachers (NQTs) obtain a mortgage.

We aim to make the process goes smoothly, we have access to many mortgage lenders, whose criteria will be suitable for your situation, which in this case is usually what would be the most challenging part of the mortgage process.

When issues like these crops up, our experienced mortgage advice team in York will search through 1000’s of mortgage deals for you, doing everything we can to find you the most suitable deal for your situation. 

What mortgages for NQTs may be available? 

Make sure to bear in mind that whilst yes, mortgages can sometimes be complicated for Newly Qualified Teachers, it doesn’t mean you are restricted in what is available to you on the mortgage market.

Below we have listed some of the different types of mortgages that crop up when working with cases alongside Newly Qualified Teachers: 

  • Help to Buy Mortgages York – The Help to Buy Schemes was created by the government to help first time buyers in York who are in the market for purchasing a new build home get onto the property ladder.
  • Fixed-Rate Mortgages – A fixed-rate mortgage allows you to make sure that your mortgage payments are the same throughout your mortgage term. 
  • Shared Ownership Mortgages – If you’re a First Time Buyer in York, saving a big deposit can be tricky. That’s where shared ownership mortgages can help. You buy a share of the property, then pay a mortgage on your share, then pay rent on the rest.
  • Tracker Mortgages – A variation of a variable rate mortgage, where the movement of interest on your mortgage matches with the Bank of England’s base rate, regardless of whether that is up or down.  

Matching you to a Suitable Lender

There are some known mortgage lenders out there who do not need to see previous employment and may allow you to obtain up to a 95% LTV (loan-to-value).

Depending on the mortgage lender that you go with, you may find that a 12-month first contract is treated the same as a permanent job role, rather than just being seen as a temporary contract.

We tend to find, that there may be a selection of mortgage lenders around the country who are willing to get started on your mortgage before you officially start your job, though to do this you will have to provide evidence of a signed contract and a confirmation of your start date. 

This can come in quite handy, as you may potentially be prepared to start making your first mortgage payments at the time when you are due your first month’s wages from your new job, by the time your mortgage has been completed. 

How a Mortgage Advisor in York may Help 

Our open & honest team of dedicated mortgage advice experts in York have extensive knowledge and experience of helping customers across the mortgage and property markets, providing help to lots of first time home buyers with their mortgage needs.

There is a great deal of benefits to using the services of a trusted Mortgage Broker in York. We always strive to take away your stress, looking through thousands of different and tailored mortgage deals for you, our customer, suggesting possible conveyancing solicitors for you to use and more.

Find out what you may have available to you as a first time home buyer, by getting booked in online for a free mortgage appointment with an experienced and reputable mortgage advisor in York, who will collect information from you and help you onto the next step of your journey. 

Do Gambling Transactions Look Bad on My Bank Statements?

When lenders are requesting your bank statements, they will be looking into various things. By assessing these bank statements, the lender can get an idea of the type of person you are and how well they would be able to manage their mortgage payments. Through our experience, we have encountered numerous enquiries asked by applicants wondering if gambling transactions look bad on their bank statements.

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

Mortgage Questions to Consider

What has it got to do with the lender whether I gamble or not?

As much as gambling can be a risky activity, we are not saying that it is an illegal act, however, lenders do judge applicants in a less favourable light if there are a large amount of gambling transactions in a shot space of time on their bank statements. You might have seen many gambling adverts on TV where they always urge customers to ‘gamble responsibly’, this is something in the mortgage industry we persuade too.

Obviously, it’s not the lender’s job to tell you what to do with your life with your finances or to lecture you on the rights and wrongs of gambling but, they do have a duty to lend responsibly.

Lenders need to demonstrate to the regulators that they are making judicious lending decisions. Therefore, it isn’t entirely unreasonable of them to have similar expectations of the people who are looking to borrow from them. Put it in this perspective, if you were to lend your own money, would you lend money to the individual who gambles or the one who doesn’t?

Is it still possible to get a mortgage if I’ve got gambling transactions on my recent bank statements?

It is not illegal to gamble, therefore, the odd gambling transaction on your bank statement does not automatically mean you will be declined for a mortgage. On the other, these transactions will be judged by the lender as to whether these transactions are rational. Along with this, they will look at the frequency of these transactions, the size of the transactions in relation to the applicant’s income and the overall impact on the balance.

When the transactions are infrequent small amounts that make no big impact on a regular credit bank balance, then they are not likely to be regarded as important. On the other hand, if an applicant gambles most weeks and is constantly in their overdraft, the lender will see this as irresponsible and decline your application.

Is there anything else lenders wouldn’t want to see on my bank statements?

The reason lenders like to look at your bank statement is for them to understand your financial behaviour with managing money and can conclude whether or not they are confident in lending to you.

Lenders are financial institutions that, either directly or as part of a wider group, often sell current accounts, overdraft facilities credit cards and personal loans. With this in mind, you need to understand that these all factor in prudent financial planning. It’s important for a mortgage applicant to look into how these facilities work.

For example, if you occasionally find yourself in overdraft, this is not inherently a bad thing. Whereas regularly exceeding the overdraft limit is not so good. Furthermore, lenders will look for excess overdraft fees or returned direct debits as these would usually show that the account is not well conducted.

Credit transactions from pay-day loan companies; “undisclosed” loan repayments (e.g. if you said on the application that you have no other loans but here appear to be regular loan payment, this could be an issue) is just some of the things to look out for. They would also look out for outstanding missed payments and they might see how much of a typical month is spent overdrawn – i.e. if you only just go into credit on payday and for the rest of the month is overdrawn, how sustainable is this mortgage?

What can I do to improve things?

Be sensible and plan ahead, if possible. Usually, a bank would request up to three months of your most recent bank statements. This will show the lender your salary credits and regular bill payments. Therefore, if you are thinking of applying for a mortgage in the distant future make sure that you avoid any of the above pitfalls. It’s best that you take a break from gambling for a short time and work on presenting your bank account in the best possible light.

There are a number of lenders out there who may ask for fewer bank statements than others or some may not ask them at all, this is something a mortgage broker could help you with. Despite this, these lenders do still have the right to request bank statements in particular circumstances so it’s best you are prudent in the run-up to any mortgage application. It’s important you if you do gamble, please gamble responsibly!

Get in Touch With a Mortgage Broker in York

Getting some specialist mortgage advice in AREA will benefit First time Buyer in York like yourselves, especially if you have little knowledge about mortgages. They can provide a helping hand with your application and look impressionable to lenders. Simply book online your free mortgage appointment to speak with one of our mortgage advisors in York today.

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.

What Do Lenders Look For On Bank Statements | MoneymanTV

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.

What do Lenders Look for When Assessing my Bank Statements?

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

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

Why do lenders ask to see my bank statements?

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

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

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

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

What specifically will they be looking for?

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

1 – Gambling transactions

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

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

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

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

2 – Exceeding your overdraft

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

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

3 – Bounced direct debits

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

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

4 – Failing to pay off loans and credit cards

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

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

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

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

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

Speak to a Mortgage Advisor in York Today

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

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

The Pros & Cons of Using a Mortgage Broker in York

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

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

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

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

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

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

Cost-Effectiveness

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

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

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

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

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

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

Local Bank Branch Relationships

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

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

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

Exclusive Mortgage Products

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

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

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

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

Changes to Regulation & Consumer Protection

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

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

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

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

Booking an Appointment with a Mortgage Advisor in York

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

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

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

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

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

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

Handling of Complex Scenarios

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

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

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

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

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

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

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

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

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

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

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

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

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

Why use a Mortgage Broker | MoneymanTV

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?

What is a Fixed-Rate mortgage? | MoneymanTV

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?

What is a Tracker mortgage? | MoneymanTV

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?

What is a Repayment mortgage? | MoneymanTV

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?

What is an Interest-Only mortgage? | MoneymanTV

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?

What is an Offset mortgage? | MoneymanTV

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.

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.

Why use a Mortgage Broker | MoneymanTV

Fast & Friendly Mortgage Advice in York

How Much Can I Borrow For A Mortgage in York?

How Much Can I Borrow For A Mortgage | MoneymanTV

Your income, expenditure and the lenders’ affordability calculations determine the amount you can borrow for a mortgage. Over the years, the amount that Banks have been prepared to lend for mortgages has ebbed and flowed. This can be linked to the market conditions and appetite for risk at that time.

There was a time in the mid-2000’s when more than seven times annual income may have been acceptable. However, it has also been as low as three times annual salary in the past.

Since the Mortgage Market Review of 2014, it is seldom that they apply this “multiple of salary” rule. The Lenders now look much more deeply into your personal finances before deciding how much you can borrow. Thus, the factors you need to consider are:

  • How much will the lender say I can borrow for my mortgage?
  • How do I know if it’s affordable?
  • What if interest rates go up in the future?

How much will the lender say I can borrow for my mortgage?

As mentioned above, the way lenders calculate your borrowing capacity (affordability) is now generally much more sophisticated. Lenders used to work off simple income multiples of, say three times your gross annual salary. However, nowadays they all have affordability calculators which are often quite different from lender to lender.

With increasing complexities in the way people are paid, there have been changes in what income lenders do and don’t accept. For example, if you’re in a job where you earn a lot of overtime or bonus or commission, some lenders will take much more of this into account than others; some lenders will take certain benefit income such as child tax or working tax credits into account where others won’t.

Similarly, if you’re Self-Employed in York or own a limited company, lenders will assess your income in different ways. This can result in the same customer being assessed to have widely varying affordability levels from different lenders.

Finally, factors such as the product that you want to take and the term of years you want to borrow the money over can all impact upon the overall affordability. Lenders will also deduct regular outgoings such as personal loan payments, maintenance payments or credit card bills from your salary. Thus, whilst many lenders or brokers will have a “rule of thumb” this is just a quick guideline. Therefore, you should always check with your mortgage broker for more accurate figures based on your specific circumstances.

How do I know if it’s affordable?

Lenders generally aren’t daft. They don’t want to be seen to be lending you more money than you can realistically afford which could put you under unnecessary financial strain. Therefore, if you pass a lender’s affordability calculator that’s a pretty good indicator that you should be OK.

That said, we’ve already seen that the assessment of affordability can vary significantly between lenders, so it’s always worth completing your own budget planner to ensure that you have the security of knowing that, whatever the lender may say, you’ve done your own assessment. Remember, owning your own home is not just about paying the mortgage.

Factor in associated costs such as council tax, utility bills and any other committed payments such as personal loans or insurance premiums and your regular food and drink bill at the supermarket. Be realistic and include everything that you’ll want to retain in order to maintain your chosen lifestyle.

Deduct your other outgoings from your monthly pay and, if what you have left is more than enough to meet your mortgage payments, then you should be OK. If it’s not, you have a choice; either make savings or sacrifices from your outgoings in order to help you buy the home you want, or look for something smaller!

What if interest rates go up in the future?

The UK has seen an unprecedented period of interest rate stability in recent times. It is over seven years since the Bank of England has amended its Base Rate but with recent events many people fear the uncertainty that may come with future rate increases. If you complete a budget planner, you should be able to gain some idea of how much you can afford and you could, therefore, factor in possible increases to ensure your mortgage will be affordable both now and in the future.

If you’re in any doubt, the key to future stability can be found in fixed-rate mortgages. As the name implies, the rate you pay, and thus your monthly repayment, is fixed for a defined period of time. Generally speaking, the longer you fix for, the higher the rate (and monthly repayment) is likely to be, but you might consider that to be a price worth paying for the peace of mind it brings.

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

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

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

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

© 2022 Yorkmoneyman

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

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