To assist first time buyers in York, we have outlined the 10 steps involved in the mortgage process. This comprehensive guide is designed to provide you with the necessary information and preparation for your upcoming mortgage journey.
Here are the 10 steps involved in the process of purchasing a home and obtaining a mortgage:
As a first time buyer in York, you have taken a major step in purchasing a home and securing a mortgage. This can be a daunting experience, especially if you are unfamiliar with the process. That’s where we come in. As a dedicated mortgage broker in York, our goal is to take the stress out of the process and help you secure a favorable mortgage deal for your first home.
When you reach out to us, we’ll schedule a free initial consultation with one of our experienced mortgage advisors in York. During this consultation, we’ll gather your information and understand your goals, before starting the process. Let us help you make this exciting step a smooth and stress-free experience.
During your free mortgage appointment, your dedicated mortgage advisor in York will conduct a mortgage affordability assessment. This evaluation involves reviewing your monthly income and expenses to determine if you can afford the monthly mortgage repayments for the amount you wish to borrow.
This assessment is critical, as it helps us ensure that you are able to afford your repayments and avoid the risk of default and potential repossession. This is something that both the lender and we strive to avoid.
Typically, the lender will conduct their own affordability assessment, but our initial check will save time for everyone involved, including the lender, us, and most importantly, you. It also helps prevent any potential declined applications due to affordability issues.
As part of your free consultation, obtaining a Mortgage Agreement in Principle is the next step. If you’ve been researching mortgages before seeking first time Buyer mortgage advice in York, you might have come across various names for this, such as ‘Decision in Principle’, ‘Mortgage in Principle’, or the abbreviations ‘DIP’ and ‘AIP’. Regardless of the name, these all refer to the same thing.
A Mortgage Agreement in Principle serves as proof that you have cleared a lender’s initial credit assessment, either through a hard credit search (which leaves a record) or a soft search (which does not leave a record).
This agreement is not a guarantee of mortgage approval, but it is a crucial step towards your ultimate goal. Having this document also demonstrates to a property seller that you are sincere in your intentions, potentially leading to better negotiation opportunities. An AIP typically lasts 30 to 90 days and can be easily renewed if it expires. Our team can usually provide you with an AIP within 24 hours of your initial appointment.
Having secured an Agreement in Principle, the next step in your home buying journey is to find a Conveyancing Solicitor, also known as a Conveyancer. This professional is responsible for handling the legal aspects of transferring ownership of the property from the seller to the buyer.
Your Conveyancing Solicitor will be responsible for several key tasks, including reviewing and negotiating contracts, providing legal advice as needed, conducting local council and authority searches, working with the Land Registry, and finally, transferring the funds needed to purchase the property. Given the critical role that this professional will play in the process, it’s important to choose wisely.
It’s worth noting that there are two types of Conveyancing professionals: Licensed Conveyancers and general Solicitors. Licensed Conveyancers are specialists in property law but may not be equipped to handle more complicated legal issues. On the other hand, general Solicitors offer a full range of services, but their services may be more expensive. While your mortgage advisor in York may not offer these services in-house, they have a list of trusted companies that they can refer you to.
You have successfully taken several crucial steps in your journey towards homeownership. After speaking with a mortgage broker in York, passing the Mortgage Affordability Assessment, and finding a Conveyancing Solicitor, you now have an Agreement in Principle in hand. This agreement, which confirms that a lender is willing to provide you with a mortgage for a certain amount, puts you in a much stronger position as you move forward to make an offer on the property you have your eye on.
When making your offer, it’s important to keep in mind that you don’t want to offend the seller by making an offer that is too low. However, don’t hesitate to negotiate the price. Having an Agreement in Principle in hand demonstrates to the seller that you are a serious buyer and that you have the financial capability to follow through with the purchase. This could increase the likelihood of the seller accepting your offer over others who may be willing to pay the full asking price, but lack the same level of preparation.
In the event that the seller declines your offer, it’s not the end of the road. You can either make a revised, more reasonable offer or choose to move on and find another property. If your offer is accepted, it’s time to return to your mortgage advisor and take the final steps towards securing your mortgage and completing the purchase of your dream home.
With the legal side of the home buying process taken care of, it’s time to focus on the mortgage aspect. One of the key steps in this process is submitting the required documentation to the mortgage lender. Given the large sum of money involved, the lender will need to ensure that they are lending to the right person and that they are able to repay the loan.
To verify your identity, financial status, and ability to repay the loan, you will need to provide a range of documentation, this includes:
If you are obtaining a joint mortgage, this documentation will be required from both parties.
With your mortgage offer being accepted, it’s time to move forward with the submission of your full mortgage application. Our dedicated mortgage advisor in York and their team of Mortgage Administrators have thoroughly reviewed and prepared all the necessary documents, so we are ready to submit your application to the lender.
Your advisor will send the collected evidential documentation to the lender, and then it’s just a matter of waiting for their decision. Although there is no set timeline for a response, our Mortgage Administration team will be monitoring the progress of your application and will follow up with the lender to ensure a prompt resolution. They will keep you informed of any updates and will be there to help if the lender decides to accept or decline your mortgage application.
Between the submission of your mortgage application and being offered a mortgage, the lender will require a property valuation survey to be conducted. This survey is usually performed by a trusted and accredited company nominated by the lender.
The purpose of the survey is to determine the true value of the property compared to the agreed purchase price. If the purchase price exceeds the actual market value, the lender may be less inclined to approve the mortgage, as in the case of default, they may not be able to recover the full borrowed amount. This scenario is commonly referred to as a “Down Valuation”.
There are various types of surveys available, each with different levels of detail and varying costs. Some surveys simply determine the property’s value, while others provide information about potential structural issues and necessary repairs for the future. Your mortgage advisor in York will assist you in selecting the appropriate survey for your needs.
The time has finally arrived – after your lender has reviewed your case and evaluated all the supporting documentation, they will present you with a mortgage offer.
At this point, our team of knowledgeable and friendly mortgage advisors and administrators in York, whom you have become familiar with throughout the process, will review the offer to ensure accuracy and completeness. Upon receipt of the mortgage offer, your Conveyancing Solicitor will then take over and guide the purchase to completion.
As a new homeowner in York, you have reached a significant milestone in your life. You have successfully navigated the complex process of purchasing a home for the first time, and we extend our heartfelt congratulations to you. With the stress and uncertainty of the buying journey now behind you, it’s time to settle into your new home and enjoy the rewards of your hard work and dedication.
The next step in your journey is to obtain the keys to your new home and begin the process of moving in. This is an exciting time, filled with anticipation and the possibility of creating new memories and experiences in your new surroundings.
We are proud to have been a part of your journey and to have provided you with the support and guidance you needed along the way. Our team of mortgage experts in York is committed to delivering a fast and friendly service that is tailored to your unique needs and circumstances. We understand that purchasing a home is a big commitment, and we strive to make the process as seamless and stress-free as possible.
If you have chosen a fixed-rate mortgage, rest assured that we will be in touch with you at the end of your term to assist you with your Remortgage needs. Our goal is to ensure that you continue to enjoy the benefits of homeownership for years to come, and we look forward to serving you once again in the future.
A remortgage is where you take out a new mortgage to pay off and replace your existing mortgage. There are plenty of reasons to do so. Remortgaging will not always be the right decision for every homeowner but could be an effective way to achieve the next step in your home ownership goals.
We tend to find, homeowners usually set their rate for 2-5 years, enabling them to keep the same consistent interest rates for that period.
A homeowner will typically look to take out their remortgage towards the end of their fixed period. Here at Yorkmoneyman, we tend to contact our customers about 6 months earlier, so we can go through the background process, allowing a smooth transition when a mortgage ends and your new one starts.
It is important not to remortgage any earlier than this, to avoid any potential early repayment charges.
It is also important to understand the alternatives before considering remortgaging. For example, some homeowners may want to remortgage to create more space in their homes. Whilst this could be one option, other homeowners may simply look to move elsewhere.
Another option is doing a product transfer. While a remortgage usually takes out a mortgage with a new lender, a product transfer switches to a new deal with the same mortgage lender.
Finally, if you are above the age of 55 and own a property that is worth at least £70,000, you may have the possibility of taking out an equity release plan. We recommend you speak with a qualified later-life mortgage advisor in York to see if this is the right option for you.
Ask for a personalized illustration to understand the characteristics and risks of a lifetime mortgage. A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means-tested benefits. The loan plus accrued interest will be repayable upon death or moving into long-term care.
That is why seeking remortgage advice in York might be a good option and speaking to a remortgage advisor in York can help in many ways. Below we listed some of the most popular reasons we hear why homeowners choose to remortgage.
One of the most common cases where a homeowner might want to remortgage their home is so that they can get a better mortgage term or mortgage deal.
When your introductory or fixed period ends, you will switch to your mortgage lender’s standard variable rate (SVR), which is typically a higher rate of interest and therefore more costly.
It is exceedingly rare that this will be a better option for you, so the vast majority will instead look to remortgage onto a much better deal. Using the equity that is in their property, they will have access to a lower loan-to-value deal, lowering their interest rates and overall costs.
If you prefer to pay off your mortgage quicker instead, you may also have the option of keeping your monthly mortgage payments the same, whilst reducing the overall length of your term. This will also possibly save you money, as you will be paying less interest overall.
Every home will have an amount of equity built up. This equity is the difference between the property’s value and the remaining mortgage balance. As the balance decreases, equity increases. If the value of the property increases, so does the equity.
Homeowners may have the option to remortgage to release equity, to use for a variety of means. Here we listed some of the main reasons you may want to look into equity release in York.
Over time, you may need to make some necessary changes to your home, especially if you prefer to live there rather than move elsewhere. Our mortgage advisors in York often speak to customers who are looking for remortgage advice in York, to discuss their options to remortgage for home improvements.
These home improvements can be from a home extension to create some extra space, make some improvements to the existing rooms or completely remodel your kitchen, it can be a great option for homeowners to make these changes and sometimes add value to your property.
Keep in mind that most mortgage lenders will want to see quotes for the work that is to be carried out if this option is something you are looking to do.
More important than ever before, a homeowner may want to spend now and save later by making energy-saving alterations.
The installation of solar panels has become popular for some as an energy source, as well as devices that can convert wind into energy. Insulating your walls, and replacing doors and windows. These can be great options for those who want not only to be greener but also to save money.
Whilst a remortgage to consolidate debts can be a great option for some, it is not a decision to be made lightly, and we would recommend taking remortgage advice in York ahead of time.
Debt consolidation will typically see you combine your unsecured debts with your mortgage, into o a single manageable monthly outgoing. Although it will hopefully reduce your expenses, it will cost more overall on interest, as it will extend throughout your term.
You should think carefully and speak with a mortgage advisor in York before securing other debts against your home. By adding your unsecured debts to your mortgage, which is secured on your home, you are potentially putting your home at risk if you cannot make the required repayments.
Although the total monthly cost of servicing your debt may have reduced, the total cost of repayment may still have risen as the term of your mortgage is longer than it may have taken to repay the debts originally.
Another reason why a homeowner may look to remortgage to release equity is to provide someone they know with a gifted deposit. This is more common with parents who will release part of their equity so that their child can get onto the ladder of the property.
This gifted deposit can be used as all or part of the deposit for a house that their child wants to buy. You will also have to sign a form stating that this is a gift, not a loan, and evidence of where the funds came from.
If you are heading towards the end of your fixed period and are looking at remortgaging advice in York for either one of the options mentioned above or even perhaps another reason altogether, please feel free to get in touch or book your free remortgage review to speak with one of our remortgage advisors in York today.
You will benefit from their expert remortgage advice in York. They will search thousands of remortgage deals to help you find the most suitable deal for what it is you are looking to achieve.
It can make a significant difference if you do overpay your mortgage even if it is in small increments as well as the interest you pay back during your mortgage. The quicker you begin paying this, the sooner these extra payments can take effect.
As a first time buyer in York, you may be aware of the difference when you overpay your mortgage and the impact it can have on interest when you pay it back regardless of whether you are only over by small amounts. The reason why overpaying early can be better is because the extra payments have a longer period to take effect.
In some cases, homeowners may not be able to make these extra payments but you could say that many decide not to overpay as they would instead use the remaining money on something more interesting and exciting!
With this in mind, we suggest you arrange a standing order payable to your lender each month. It would be wise if you do organise this standing order to go out on the same date as your standard mortgage repayment, this additional payment will hopefully start to feel a part of your standard mortgage payment.
The advantage of going for a standing order is that, instead of a direct debit, you can manage this, not the receiver. Therefore, if you have a financial emergency you can easily log into your online banking and cancel the standing order as this doesn’t go out the next month. As much as it’s not the best to stop overpaying, you still will be able to benefit from the overpayments made up until that point.
Getting into the routine of overpaying your mortgage is a great habit, the amount you overpay doesn’t have to be a large amount, however, you’ll be happy when you are at the end of your mortgage repayments and find you have taken off a year or two.
Sometimes, lenders will allow you to make reduced mortgage repayments or take a payment holiday if you provide evidence of a history of overpaying. Before taking a payment break, however, it’s key that you check with your lender that you are eligible. If you don’t, this could mean you end up with a negative mark on your credit report and this is something you should strive to avoid.
If you are looking to overpay your mortgage, you should speak to your mortgage lender to see if this is doable.
Another option for people who have already been overpaying and are seeking remortgage advice in York ahead of releasing their equity to remortgage onto a better deal, take advantage of our free remortgage review. Here at Yorkmoneyman, a designated remortgage advisor in York.
The coronavirus pandemic meant restricted guidelines with one being people must work from home. Fast forward to today, this event in time has created a new wave of workplaces offering either hybrid working (working from home or the office) or working remotely on a permanent basis.
Even though working from home has been around for many years before the pandemic, this has been something people never imagined they would prefer doing. In terms of the mortgage industry, as a Mortgage Broker in York, we found that many people look into converting their kitchen, living room, or even a bedroom into a home office.
As mentioned, many people were already working from home prior to the pandemic and a few businesses have let their employees work from the comfort of their home, rather than commuting to the office. One of the benefits of doing this is that many people would be saving money in commuting to and from work.
Many homeowners who are working remotely on a permanent basis usually look at having a space in their home dedicated to work which can provide them with a somewhat work-life balance. As mentioned, many people look at updating a certain room in their home to achieve this goal and this is where Remortgaging in York can help. Creating a space for work or a home office has many benefits including:
With excellent technological advancements, many homeowners have benefitted from remortgage advcie in York when looking for extra funding to be put towards revamping a room or even a garage in to a new home office. This can be done through manageable payments, for example an interest rate of 2% that is manageable over 25 years may cost you:
You might find that it is not too much more than what you are paying at the moment which means it could be better for you to approach the route of improving your home, instead of moving, which can be a stressful and costly process.
When it comes to the amount you will need to pay back per month, this all comes to the the amount you can borrow overall, what your remortgage goals are and how you are going to do it e.g the size of an extension. Furthermore, you will need to keep in mind that you will need to undergo another affordability assessment, in spite of if you go to the dame lender and just switch deals.
If you are thinking of remortgaging for home improvements, this is the best time to look for a remortgage deal. If you are still unsure about Remortgaging in York, check out our article ‘top reasons to a consider a remortgage‘. Here at Yorkmoneyman, we can provide you with an expert Mortgage Advisor in York who get to know your remortgage goals and find you the best product perfect for your financial needs.
As a Mortgage Broker in York, we have a knowledgable team who have years of experience in the mortgage industry and can provide you with the help you need to look through your options and provide a friendly, helpful service that will support you through the remortgage journey.
With any remortgage, when you have come to the end of your term, you will automatically be placed on your lender’s standard variable rate of interest (SVR). If you do end up in this situation, it’s likely that your mortgage payments have increased due to the rate being higher than your original one. Therefore, having a mortgage review prior to your fixed term ending could save you money which further supports the idea of getting your mortgage reviewed in York.
When approaching the end of your mortgage term, it’s wise that you begin thinking about remortgaging in York. We offer all our customers a free remortgage review where you can speak to a qualified Remortgage Advisor in York giving you access to a better and more competitive product.
Many people decide to stay in their current property instead of moving home. This is when they will look at remortgaging in York to proceed with their mortgage journey.
The option to remortgage can be perfect if you are looking to remain in your current property in York with more pleasing interest rates. The way it works is by transferring from your existing deal to a more appropriate deal. With many years of providing open and honest mortgage advice in York under our belts, our team of knowledgeable mortgage advisors in York are here to help.
Usually, the banks rely on their customers being unaware of the fact that they can shop around for a more appropriate deal. This can result in many people missing out on the cheaper deals that may be out there. By having one of our expert remortgage advisors in York by your side who can help you compare deals, you can be sure you are on a competitive deal that is right for you.
You could seek better deals through a comparison site, however, these only find you the best deal on an interest basis.
If you have been on your current mortgage deal for a while, you may be able to go on a low Bank of England tracker deal. In some cases, you may be paying less than 1% in interest which suggests that it may be best for you to stick with that mortgage deal. One issue with this is if the base rate rises over time along with your payments.
This is a possibility, however, it all comes down to whether you can pass the affordability assessment and you have an efficient amount of equity in the property. If this is an option you are interested in pursuing, you may be able to increase your remortgage to fund these future home improvements.
If you decide to go for the option of remortgaging for home improvements on your property in York, this will provide you the opportunity to give your home a makeover which could increase the price of your
property. So if you are looking for financial support with updating your kitchen, converting a loft or creating a home office, remortgaging could be the option for you!
Not only can you borrow more money for home improvements, but you may have the option to borrow additional funds for other things such as:
Increasingly building on debt to your mortgage is not a good idea. It will result in you having to pay back more interest altogether by extending the term of your debts to make the payments manageable.
This route would involve you taking debt, which is not secured, and securing it on your home. This is a major risk and could involve you having your home repossessed. One problem that could happen would be consolidating debts that you can afford or credits that are 0% interest.
This is just another reason why it’s important to get in touch with an expert mortgage advisor in York before securing any debt against your home. There may be an option for you to reduce your outgoings to avoid missed payments. If you decide to take this route, you will be reducing the risk of your credit rating being in a bad state.
You may that the lender would offer a “Product Transfer” or “Retention” product. This gives you the opportunity to stay with your current lender who will provide you with a new deal. Keep in mind that this option isn’t always guaranteed, however, there is no harm in contacting your provider to see what is available to you.
Usually, some lenders will allow you to make a product switch online without needing to get further information or advice.
As much as sticking with the same provider and just switching products seems like the simpler option, you may save yourself more money if you put forward a new application to a different lender.
In many cases, banks would offer favourable rates to new borrowers over existing ones. As a mortgage broker in York, we hope there will be a point in the future when lenders will take a more ethical approach that could have a positive impact on customer loyalty.
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.
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.
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.
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.
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.
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.
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.
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.
There is the option out there for someone to have a second mortgage, however, this all depends on the individual’s circumstances with some situations requiring a person to have a second mortgage. Like with any mortgage, you need to know if you are eligible to do this.
Many people decide to go for this option for a number of reasons like:
In the circumstance where you have built some existing equity in your home, you may look at taking out a second mortgage. You might look to do this so you can release some of the equity to fund another purchase. Our expert Mortgage Advisors in York can help you out with this.
In this situation, a second mortgage is also referred to as a secured loan.
If you are currently on a lenders standard variable rate, you might find that a dedicated mortgage broker, like us, will be able to look around in the hopes to find you a more competitive deal for you along with helping you to release some capital.
Another option that may benefit you is further advancement with your current lender.
When people move home, usually they onto their new mortgage leaving their existing one behind by simply transferring to another deal. On the flip side, you may find that some people prefer to keep on to their current mortgage and property as a way to rent it out. As a result, your new second mortgage will now be your residential one. This is known as a Let to Buy and will only occur when you are moving home in York.
This has become an option that has become increasingly popular. In the current climate of property prices and inflation constantly rising, many First Time Buyers in York have found getting on the property ladder a challenge.
Because of this, many parents and grandparents see their challenging situation and provide a helping hand. You could see this as a different form of a gifted deposit, they could even give them their property and move out themselves.
Sometimes, people look for a second mortgage for a Buy to Let. This is perfectly acceptable, with landlords having multiple mortgage. Through our time providing buy to let mortgage advice in York, we have helped many landlords and built strong relationships with them to find them the best Buy to Let mortgage product. Our team are happy to help do the same for you!
Some of our customers are in situations in which they are currently named on another mortgage and are looking to purchase another property.
Normally, these types of customers are going through a divorce or separation. The good news is that we have extensive experience and rich knowledge in dealing with these cases. Therefore, one of our open and honest Mortgage Advisors in York will work hard to help you with this.
Whatever situation you are in that would lead to enquiring about a second mortgage, we can help you as a fast & friendly Mortgage Broker in York. We have access to a large panel of lenders which allows us to search through 1000s of mortgage deals for you.
This means you will be provided with a service where you will be recommended the most appropriate product that is perfect for your situation.
When it comes to removing a name from a mortgage, it isn’t as straightforward as it sounds. Many look at this option if they are going through a break-up, marital or otherwise, leaving joint ownership, or a rare case where you rather have the mortgage in one name.
Whatever the reason is, we have a team of mortgage advisors in York who work around the clock to help you out by using their extensive experience as well as support you through financial separation.
This circumstance is one that we find is the most common. In some cases, a couple were tied to the mortgage but are looking to remove a name because they are getting divorced/separating. Financial commitments should be a priority to sort out when going through a breakup.
If you do leave this until the last minute can create a lot of added stress that could have been avoided. You need to factor in time for the different companies you are financially tied to, like your mortgage lender, to process everything. This is something that will take time so be patient.
From your mortgage lender’s point of view, they will need to be sure that both parties will be financially comfortable with only one income to draw from. For the remaining one on the property, lenders will need to be sure that they will be able to manage the monthly mortgage payments by themselves.
When it comes to taking a name from a mortgage, both parties will need to agree. Therefore, if one party disagrees, you will have to go through court proceedings. This can be costly, time-consuming and cause unnecessary negativity.
You will find specialist mortgage advice in York helpful if you are going through a difficult divorce or separation. Our team will be available to help sort out your mortgage.
This type of process is surprisingly more simple than you would think, especially, with the assistance of a mortgage broker in York.
This would involve the homeowner transferring equity to whomever they wish, whether it’s a family member or a friend. The mortgage will get transferred with the equity still inside of the home. As the new owner of the home, you will have to pass the lender’s eligibility and affordability checks.
When a member of the party isn’t keeping up with their end of the deal, the financial association can cause you problems. As an experienced Mortgage Broker in York, we have encountered this often and it’s usually because some of the parties have fallen out.
If one person misses their bills, this may affect you also. One vital point you need to keep in mind is that signing for a mortgage with multiple names does mean you need to put your trust in their ability to manage their payments. If they miss any payments, it won’t only affect their credit score, but yours too.
If you find yourself in this situation, it’s wise that you get in touch with your lender. Another option that could be helpful to you is getting in touch with a mortgage advisor in York to see what you can do before the problem gets worse.
It may be clear that you can manage your monthly payments and have a good track record, but it’s that view your current situation from a lender’s perspective. You are still asking the lender to trust one income rather than two (or more if it’s a joint mortgage) that they had originally.
A mortgage lender would favour the idea of both names being on the mortgage to improve financial security. Furthermore, they will want some form of a financial blanket if mortgage arrears or repossession occurs, as they will be able to chase two parties for payments. As well as this, the chances of being paid are reduced if there is only one party.
Removing a party comes down to affordability. In the case where you would like the home to be in your name, without your ex-partner or housemate, you will have to go through all the criteria checks that you would’ve done initially, so you can demonstrate that you can keep up with the monthly repayments by yourself.
It depends on the lender and your situation as to whether this will be possible. It may be beneficial for you to seek help and support from a reputable mortgage broker in York.
You may find that, after speaking to an advisor, it is more suitable for you to switch mortgage lenders for a better deal in your sole name to ease any ongoing problems.
If you are struggling with this situation, we can help by providing specialist mortgage advice in York in the hopes of relieving some of your stress. Get in touch today to see how we can help with your situation.
First time buyers in York who are looking to put their foot onto the property ladder, or find themselves once again at the end of their fixed 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.
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, and 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.
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 managers themselves, who understood 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.
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 to 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.
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.
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 York 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!
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):
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 declines 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.
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.
Whether you are looking to buy a home as a first time buyer in York, are moving home in York, or are ready to remortgage in York, you’ll quickly begin to realise there are a lot of options out there for you when it comes to taking out your mortgage.
In this article, we have put together a comprehensive list of the most popular types of mortgages available to customers on the mortgage market.
If you have any questions regarding any of the mortgage options that we talk about below, then please do not hesitate to get in touch with a dedicated mortgage advisor for expert, open & honest mortgage advice in York & surrounding areas.
A fixed-rate mortgage will mean that your monthly mortgage payments will remain unchanged for the duration of your mortgage term.
The length of which you want to fix your payments is your choice, with typical choices being somewhere around 2, 3 or 5 years or longer.
No matter what happens with inflation, interest rates or the nationwide economy, you know that your mortgage payment, which is usually a person’s single biggest outgoing, will always be routinely consistent.
A tracker mortgage will serve the purpose of providing you with a mortgage interest rate that mimics the Bank of England’s base rate.
This means that neither you nor the mortgage lender will set the rate and it will change as and when the base rate does. If the base rate goes up, your interest rate goes up. If it goes down, yours will go down too. Of course, this happening is beneficial to you.
You will be paying back at a percentage that is above the Bank of England base rate. If we use this in an example; Let’s say the base rate is 1% and you are tracking at 1% above the base rate, that means you will be paying back your interest at a rate of 2%.
When you take out a repayment mortgage this means that each month you will be paying back a combination of both the interest and capital. This is the standard mortgage people think of when looking to buy a home.
Going off the basis that you can keep your payments going for the mortgage term duration, you will be guaranteed to have paid it off in full and own the home of your dreams by the end of it.
This is generally, across the industry and the wider world, considered the most risk-free way to pay your capital back to the mortgage lender. Early on in your term, the amount you’ll be paying will be mostly the interest, with your balance reducing at a slower rate. This is especially the case if your term is 25, 30 or 35 years.
The process quickens up within the last ten years or so of your mortgage, where you will be paying back more capital than interest, with the balance reducing at a far quicker rate.
Whilst we do still regularly encounter many buy-to-let mortgages being set up on an interest-only basis (this is an option that works out much better for many landlords), it is increasingly more difficult these days to get a residential property on an interest-only mortgage.
The reason for this is that once you reach the end of your term, you will still have the full mortgage amount to pay off all in one go, with no additional income to fund the amount you’re required to pay.
That being said, there are various unique circumstances where this can be a suitable option for customers, including downsizing when you are older or if you happen to have other investments you can use to pay back the capital.
Lenders are often incredibly strict when it comes to offering these products now and the loan values tend to be much lower than they were in previous years.
The way an offset mortgage works is that your mortgage lender will set you up a savings account that will work in tandem with your mortgage account.
To explain this using an example, let’s say that you have a mortgage balance of £100,000 and you deposit £20,000 into your savings account, you will only be paying interest on the difference between those figures, which in this instance would work out at £80,000.
This can be a very efficient way of managing your finances, especially if you are wont to be paying higher rates of tax.