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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.
If you are a first time buyer in York or are moving home in York with your house on the property market, you may be aware of the bigger estate agents and builders that have an in-house mortgage advisor and conveyancing solicitors that they would want you to utilise.
Over the years as a mortgage broker in York, we have worked as a trust and strived to provide a personal, caring service for all our customers. To provide this type of service, we don’t work with banks, building societies or estate agents meaning we work solely for you as our customer.
When speaking to customers, we find that they are affected by increasing pressure from their estate agents to use their in-house financial services. Below are just some of the stories we have encountered:
It’s known that many estate agents out there are known to refuse to put an offer forward if you decide to use a different mortgage advisor instead of their own. In some cases, they have refused to forward an offer to the vendor due to someone who has utilised their in-house mortgage advice service and has an offer they’d rather show favouritism towards, even if it’s lower.
A reputation that we have heard about estate agents is how they quote ridiculously high when it comes to conveyancing fees. This is something many of our customers have experienced before. One significant case had the customer being charged £1,500 for a regular purchase with a particular estate agent.
The good news was our expert mortgage advisors helped with lowering this cost. From this, we recommend that the client approaches another conveyancer within the area and they were able to get this down to £750 which is half the quoted price.
When you have made an offer, you would expect to get a phone call confirming whether or not you’ve been accepted which seems logical. Unfortunately, this isn’t always the case. The estate agent will get in touch and demand to know which conveyancer you have used.
Furthermore, the estate agent will refuse to take the property off the market until you agree that you will use their own in-house service. As you probably have guessed, their quotation will be very overpriced and very unfair to the customers, however, they will put you on the spot and make you feel it’s your only choice to take. A Mortgage Broker in York can very much help you prepare for this. One question that you may be thinking at this point is…
They are highly illegal. As an individual, you have the freedom to use whichever companies you feel best suit you in the process. You choose which broker, conveyancing or another financial service you want to use.
If you haven’t explicitly signed a contract in the beginning that you will only use their services (which you won’t be offered anyway), there is no obligation to use their services for anything besides the process between yourself and the seller of the property.
It’s good to keep in mind that when negotiating a purchase price think if the people selling the property you’re looking to buy need to know your financial situation and know the amount you’re able to borrow to pay for that property. This is something that they will use to their advantage when pushing their in-house service.
You need to be vigilant stand your ground and not fall under pressure. Your future dream home and financial situation lie in how well your mortgage process goes.
Here at Yorkmoneyman, our team always have your best interests at heart, keeping you updated in the process and helping you overcome any hurdles you may encounter to try and relieve any stress you may have.
If you are looking for support on your mortgage journey, please get in touch and our team will see how they can help in the hopes of achieving your mortgage goals.
Prior to present day of credit scoring, mortgage were manually assessed by your Building Society Manager. The 1990s bought lenders moving towards more uniform income assessments as a way to make the process more consistent and reliable.
In order to reduce people who couldn’t a mortgage getting accepted, a lending cap was introduced. By doing this, the number of people borrowing a lot more than they could actually afford was reduced with some borrowing more than 3 or 4 times more than their income.
As time went on, lenders were starting to be more generous with this lending cap along with their conditions which resulted in receiving more mortgage applications. A number of lenders were even granting their customers a mortgage without looking into the customer’s financial history and payslips.
As you may have anticipated, this cause the economy to collapse and became the catalyst for the Credit Crunch of 2007. At this time, lenders were only pursuing cases to those who could afford 20-30% deposit which made the mortgage process challenging for both a First Time Buyer in York as well as those Moving Home in York.
When it comes to the amount you could borrow for a mortgage, your income, expenditure and the lenders’ affordability calculations factor into this. Throughout the years, the number of banks that are able to lend for mortgages has ebbed and flowed. This can be due to the market conditions and appetite for risk at that time.
In the mid-2000’s, seven times annual income was more acceptable, however, it has also been as low as three times annual salary in the past.
The events after the Mortgage Market Review of 2014, it is rare that they apply this “multiple of salary” rule. These days, Lenders take a more thorough approach to your personal finances before working out the amount you are able to borrow. Below are the factors a lender would consider:
As stated before, how lenders calculate your borrowing capacity (affordability) has changed to be a lot more refined. From lenders working off simple incomes multiple of, say three times your gross annual salary to now having affordability calculators that range from lender to lender, it’s definitely evident of how lending has changed.
When it comes to income, lenders do have criteria for what they do and don’t accept because of the complexities in the way people are paid. You might be in a job where you earn a lot of overtime or bonus or commission, lenders may factor much more of this compared to others. A number of lenders will take in particular benefit income like child tax or working tax credits into account whereas some won’t.
When it comes to applicants who are Self Employed in York or own a limited company, lenders will assess your income in different ways. Due to this, the same customer would be assessed to have widely varying affordability levels from different lenders.
A final factor that can affect the overall affordability is the product that you want to take along with the term of years you want to borrow the money over. Furthermore, lenders will take out regular outgoings like personal loan payments, maintenance payments or credit card bills from your salary. Even though many lenders or brokers will have a ‘rule of thumb’ this is just a quick guideline. With this in mind, it’s key that you check with your mortgage broker for more accurate figures based on your specific circumstances.
Obviously, lenders will take a sensible approach when it comes to the amount they will lend to you. They won’t lend you more money than you can realistically afford which could put you under a lot of financial stress. This is why a lender’s affordability calculator is helpful for providing an accurate answer on whether lending to you an amount is viable or not.
When it comes to assessing affordability, this can vary from lender to lender, therefore, it’s helpful to complete your own budget planner as you can almost second guess whether you will pass the assessment or not. Something to remember is that owning your own home is not just about paying the mortgage.
You need to consider additional costs like council tax, utility bills and other committed payments like personal loans or insurance premiums as well as your regular food and drink bill at the supermarket. This is where you need to look at your lifestyle and how the costs will affect your affordability.
It may be best to look at your monthly income and deduct any of your other outgoings from this. If after this you have left what is more than enough to meet your mortgage payments, then you should be all good. If this isn’t the case, you can either make savings or sacrifices from our outgoings as a way to help you buy your dream home or look for something smaller!
Pre-planning can be beneficial with the overall mortgage process and can put you in a serious position to proceed. Here at Yorkmoneyman, we encourage our customers to be ‘mortgage ready’ and you can achieve this by checking out our article on ‘getting prepared for a mortgage‘.
Recently, the UK has had a reputation for frequent interest rate changes. It’s been many years since the Bank of England changed its Base Rate, however, there may still be some uncertainty among many people because of future rate increases. The best way to combat this fear is to complete a budget planner. These will allow you to have a good idea of the amount you can afford which means you can factor in possible increases in order for your mortgage to be affordable both now and in the future.
Fixed-rate mortgages can be good if you are in doubt and are looking for future stability. As the name suggests, the rate you pay along with your monthly repayment is fixed for a specific period of time. Usually, the longer you fix for, the higher the (and monthly repayment) is likely to be, however, you might consider that to be a price worth paying for the stability it provides.
When it comes to gifted deposits, we often find that we are asked lots of questions. Below we will answer these questions in the simplest way we can, so you’re more up to speed when it comes to the mortgage process.
Your gifted deposit can be either the full amount or a portion of the deposit gifted by someone who can confirm, with an agreement that you do not need to pay the gifter back in the form of a loan.
Gifted deposits are incredibly useful when customers have enough money for their monthly repayments but can’t afford the initial deposit for their home. You may also open yourself up to better rates if you can put down more deposits.
A Gifted Deposit can also be really helpful if you’re on a lower salary and can afford the monthly mortgage repayments but are unable to save your deposit upfront.
Generally speaking, it is your parents who can gift you the deposit, though this can be extended beyond just birth parents, to adopted parents and legal guardians. You may see this mentioned online as the “bank of Mum & Dad”.
You do have the possibility of using other family members for a gifted deposit, though this completely depends on individual lenders, so would require care when trying to find the right mortgage lender.
We commonly find that clients aren’t aware that their parents can help with their mortgage, or don’t feel like they can approach them and ask for help. In truth, most parents are extremely willing to help their children get onto the property ladder.
Statistically, taking out a mortgage works out better than renting, due to you being able to potentially pay less per month on a property. Gifted deposit can often come from inheritance, although parents have been known to gift it earlier on in life if they have saved enough already or have released a certain amount of equity from their own home.
Most lenders won’t accept a loan as a method of paying for your deposit, as this is an additional credit commitment and leaves the lender with the uncertainty that you’d have enough disposable income to pay back both the loan and the mortgage at the same time.
There is no maximum limit on the amount of gift you can receive, though there are lenders out there that will insist that you put in at least a 5% deposit from your savings.
The people who benefit the most from this tend to be first time buyers in York and home movers in York. It can also be useful when in conjunction with the different mortgage schemes, as the required 5% deposit, depending on the lender, can be paid via a gifted deposit.
The majority of lenders will require a gifted deposit form. Depending on the lender, you may be asked to provide additional proof and ID (things like donor ID or bank statements).
The process of buying a property can be the most exciting but expensive commitment of your life. Therefore, it’s key you have a good understanding of the expenses that come with it. Be aware that all the varying costs can combine if you’re not cautious for instance you might find you are paying more for certain parts of the process than you initially thought.
Below we explore the different costs when it comes to buying a property in York.
As a first time buyer in York, this article is brilliant if you are looking for a breakdown of all the costs you need to consider as well as what they mean.
If you are moving home in York, this is brilliant to read if you need to refresh on the costs that come with moving into a new property for you to prepare.
When you have put down an offer on the property in York and it’s been accepted, it’s then time for your lender to carry out a valuation on the property. By doing this, they can see if your offer truly reflects the value of the property. Factors that may impact your valuation include structural damage, property age, the local market, etc.
The cost of these surveys will vary depending on the type of valuation which can be from free to several hundreds of pounds. In some cases, you will be offered this for free, however, the price is usually incorporated into another cost or it may be part of a package when taking out a particular product.
There are many different types of valuations available and will vary in price depending on which one you choose. For instance, if you are looking at purchasing an older property, you will likely need to have a full structural survey which means you may need to pay a lot more compared to someone with a new build.
To find out more information about the range of surveys out there, check out our article here.
You may find that your lender will charge you for taking out a mortgage with them. This fee usually comes with the products with the cheapest rates. Keep in mind that not all mortgages will come with an arrangement fee but if they do, it may be a large fee like £999. This all comes down to the lender and the product.
Sometimes, customers are asked to pay this upfront or may have the option to add these to their mortgage balance. For those who choose to add them to their mortgage, this could attract further interest charges. Being a Specialist Mortgage Broker in York, we have access to a large panel of lenders which allows us to search through thousands of mortgage deals for you to find you the perfect product for your circumstance with as few additional costs.
It’s key that you seek the services of a solicitor who can sort out the legal arrangement of the mortgage process. When it comes to the fees, these will be quoted differently depending on which firm. Usually, a low-value property is around £600. Whether it’s leasehold or freehold, you will need to show the solicitor the new property’s address as well as the purchase price to get quotations.
You need to make sure that:
If you are selling a home in York, you’ll need to factor in estate agency fees. Currently, Estate agency fees are increasing along with property prices, it’s likely that you will be paying between 1-2% of the property price. You will be paying at least £500 to sell your home. Keep in mind that this may rise if you are looking for a more personalised service.
When you complete the process of a property purchase, the solicitor will collect a tax called Stamp Duty along with any solicitor’s fees and disbursements.
For more information regarding stamp duty check out the link here.
A Mortgage Broker in York will likely charge a fee for their service. The good news is that you will be aware of the amount you’re paying and the amount it will cost before going ahead with the process.
Find a reputable company that charges upon completion only. Stay away from application fees where your money will be at risk.
Removal fees can vary depending on the service you want, how far you’re moving and the amount of stuff you have! Either way, this will involve moving all your household items from your old property to your new property.
There is also the option to hire a van which can be a cheaper alternative as it will just be yourself moving the items. In some cases, this can cost less than £50. On the other hand, many people do like to pay for the full service so someone will pick up your belongings and help you move. This can be up to £1,000 for this type of service.
Get in touch with our team today who can book you in for a free mortgage appointment with a moving home mortgage advisor in York.
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 can explore these scenarios further in this article.
If one applicant has had a previous credit problem which is stopping them from 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 50s. 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 to identify which ones hold this view.
Off the back of Help to Buy Scheme in York being put into action, many major Builders began selling houses by leasehold, when traditionally they were freehold. Over time this became a controversial issue leading to the government feeling inclined to intervene.
Some of the country’s major housebuilders had been accused of putting profit before social conscience. Although homes were being built for families, shareholders were also being involved in the process. The media made sure to shed light on the ‘land-banking’ process that was happening, that is when they own the land for a while and wait until favourable conditions in the market.
Inheritance means consolidation is constant throughout the industry, the inheritance by Builders often goes into their organisations which come as a leasehold basis. Although they state to buyers that both leasehold and freehold properties are available to project that they have access to an informed choice.
The general public saw that the market was swaying too much towards leasehold after it was becoming clear how much profit the Builders were making off the back of the leases that were being offered. Such things came even more clearer when the Chief Executive of one of the UK’s largest Builders received a bonus of over £100m. At the time this was one of the largest bonus paid in corporate history.
Some Leasehold Homeowners became shocked when Leasehold Management Companies quoted fees of up to thousands of pounds when they sought permissions for home alterations.
Some of the annual ground rents even appeared to double every 10 years and owners were starting to see that selling their home in the future after these increases have kicked in would become a lot more difficult. After the topic was subject to a debate in parliament after MP’s being notified, the government agreed that if you were buying a house then it is only reasonable that you should in fact own the freehold.
If it surfaces that you are actually in ownership of a house which you didn’t realise was a leasehold then you should have been made aware at the start. If you feel that the Solicitor was not upfront about the lease that you signed, then you should get in touch with them immediately to find a reason why. Although it is not advised, you do have the option to contact the freeholder at any time, if you are interested in buying the freehold from them.
Aside from the leaseholds, there is also the matter of service charges. When Councils grant permission to Housebuilders to build on land, it is not always agreed that they will adopt the common areas and roads. Private companies are usually outsourced for the upkeep of these areas.
The owners in the nearby areas then make a financial contribution towards the involved maintenance on top of their council tax. By the way, this can happen whether the house is freehold or leasehold.
The cost of the service charges can spiral upwards, unsettling homeowners who are involved. Sometimes the residents who are affected by this form an association which might allow them to choose a different service provider.
If you’re considering buying a leasehold property, make sure to heed the advice from your solicitor when they inform you of the lease and what this entails. It’s very easy to get carried away in the excitement of buying a home but you need to also take into account that it’s a major investment decision that you need to think about thoroughly with care.
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 surveys available to you.
This is the basic valuation type and you will be required to pay for a mortgage valuation 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 highlight problems, including dampness, 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 company 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 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.
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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
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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
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