Mortgage Hurdles you Could Face in Newcastle

Mortgage Hurdles and Specialist Advice

In the mortgage process, it can be common for hurdles to arise. Through our experience as a mortgage broker in Newcastle, we often see applicants encounter a variety of mortgage hurdles. Some of them are more well-known than others, meaning we can advise you on these quickly. On the other, there may be some that are more complex and will mean looking further into an option that will solve the problem.

Here at Newcastlemoneyman, we love a challenge! Our team are here to offer a helping hand to overcome these mortgage hurdles in Newcastle. As mentioned, there are a variety of mortgage hurdles out there, however, there are some that we encounter on a daily basis.

Childcare costs

In our 20-plus years in the mortgage world, we have found that being declined a mortgage because of childcare costs is a very rare occurrence. This expenditure may be expensive, but lenders will usually be flexible when it comes to childcare costs and mortgage affordability. The lender’s job is to make sure that you can afford a mortgage while raising a child and they will combat this by potentially offering you a lower mortgage amount.

This is in comparison to an individual in the same financial situation as you, who does not have children may be offered a higher mortgage amount. This may seem unfair, however, lenders should still lend to you, it’s likely that they’re just factoring in child benefits and state benefits into account.

Mortgages following a divorce or a separation

One of the most popular mortgage hurdles that we encounter regularly in Newcastle, is a mortgage following a divorce or separation. In the majority of cases, finances are the first thing that you need to manage following a divorce or separation.

Below are common questions we get asked about this mortgage hurdle:

• How do I remove my ex’s name from my mortgage?
• Can I remove my name from my ex’s mortgage?
• Can I have more than one mortgage?
  
  

The answer to all of these questions is yes, all of these are possible but, you may require assistance from a mortgage expert to do so. These situations are very specialist and you may need a professional to help you get by them.

Our team understand these situations are hard and you want it to ver sorted as quickly as possible but, it’s also key that we get it right and that you overcome the hurdles with no repercussions and a new mortgage deal that you’re happy with.

Starting a new job & getting a mortgage in Newcastle?

When customers get in touch for mortgage advice in Newcastle, it can be common for them to want to take out a mortgage when they start a new job. The deposit is not an issue here. Normally, the applicant will have either built up savings or is looking at moving home in Newcastle and will keep the funds from the sale to help with the deposit.

In the case where you are starting a new job soon, there is a possibility that you can get a mortgage pre-hand if you have already signed a contract and had a job offer. Usually, lenders are okay with probationary periods, although, they will be cautious.

Having gaps n employment can often be a worry. This is because it’s best to show your lender that you’re reliable and are trusted to meet your monthly payments. Normally, being unemployed with no income is a warning sign for them.

Proving your deposit

Sometimes, your mortgage deposit can be the most challenging but the most straightforward part of the process. This is due to strict anti-money laundering measures. You will be required to evidence of where you got your deposit from as this is an important part of your mortgage process.

Depositing large amounts of cash into your bank will be questioned by your lender. If you cannot prove how you received this money, your application may be rejected. Your application may get rejected if you cannot prove how you received this money.

In the case your deposit or a portion of it has been gifted to you, it’s advised that the money is kept inside the gifter’s account. By doing this, your lender can easily monitor the money to see exactly where the money is coming from.

Specialist Mortgage Broker in Newcastle

Can I port my mortgage to a new property in Newcastle?

Mortgage Advice for Porting a Mortgage Newcastle

Usually, you’ll find that most high street mortgages are portable. Having a portable mortgage means that you will be able to move the mortgage from one property to another, avoiding any kind of penalty.

A benefit of having a portable mortgage is that it can allow you to potentially avoid any early repayment charges that otherwise would have come up. This can be helpful if you are looking to move into a new home and are currently tied into a contract with a fixed rate.

Are all mortgages portable?

Even though it’s true that lots of mortgages available to customers are portable, this doesn’t apply to every mortgage. This is definitely evident with some specialist lenders. Contacting our team and speaking to your mortgage lender for a quick discussion can give you some confirmation on this.

Should I port my mortgage?

Despite it being an option in many common cases, homeowners may simply not go for this option. This could be due to the lender not being willing to lend them the necessary additional funds required to move home.

Along with this, it’s key to keep in mind that the additional funds will on a different rate to the rate that your existing mortgage deal is already on. It may even be helpful for you to take on those early repayment chargers instead of staying where you are this is subject to the deal that your lender offers you.

What is a Sub Account?

When you decide to port your mortgage, a sub-account will be created at this point. The additional funds will be placed onto a different deal than the one you have on your current mortgage.

Because of this, you technically have a single mortgage and a single direct debit in your name. There are different rates of interest that will apply to each.

Further down the line, having sub-accounts can cause a bit of grief for some. This is because different products will eventually overlap with one another. You will need to make sure they are aligned once again as this could risk your sub-accounts falling onto the lenders standard variable rate for a set period of time.

If you are looking for further information regarding the option to port mortgages onto new property, please get in touch to speak to an expert mortgage advisor in Newcastle. We offer all our customers a free mortgage appointment where you can talk about your situation to an expert and find out the best option for you.

Whether you’re looking at moving house in Newcastle, dealing with a buy to let mortgage in Newcastle or are in need of assistance with a self employed mortgage in Newcastle, our team are more than happy to get you booked in for an appointment to explore your options.

Mortgage Broker in Newcastle

Buying a Property With a Partner or Friend in Newcastle?

Mortgage Advice in Newcastle | Purchasing with a friend/partner

In some cases, a practical way to get on the property ladder as a first time buyer in Newcastle or home mover in Newcastle could be buying a home with a friend or partner. One benefit is that the deposit would be raised quicker and may increase your deposit amount more than if it was from a single income.

As well as this, the costs will be shared, because of there being two incomes. Despite this benefit, it’s key to know that if one defaults, then there is the risk of the other having to be responsible for the full mortgage.

The facts

How many people can jointly own a property?

The maximum amount of people that can jointly co-own a property is four. When you jointly co-own a property, you have a legal right to stay in your home unless a court rules otherwise. In the circumstance where one of the parties would like to sell or take out extra borrowing against the property, this is a matter all parties have to consent to unless a court state otherwise.

Joint tenancy or tenancy in common – what’s the difference?

Civil partnerships or married couples usually prefer joint tenancies. In the unfortunate event that one of the parties passes away, the property will be in possession of the other owner on the mortgage. The law sees joint tenants as one unit, which means you can’t remortgage or sell the property without the agreement of the other owner. 

Tenants in common are a more favourable choice for relatives or friends who are buying together. You may jointly own the property, but you do not have to own equal shares. Therefore, you can act individually. This means that you have the right to sell or give away your share of the property. There is a way you can mortgage your share of the property, but it would be difficult to find a lender that will lend in these circumstances. 

Joint mortgages & removing names

What happens if you have a joint mortgage, but the other parties stop meeting the mortgage payments?

All borrowers are jointly and severally liable, which is something a mortgage lender will highlight to you. If one of you stops paying your share of the mortgage, then the other(s) will make up the shortfall and pay the full amount.

How do I remove my name from my ex-partner’s mortgage?

In the case where a divorce/separation might occur, it’s crucial to understand that all parties are still responsible for any joint financial commitments. It applies even if a person leaves the family home, and this is also the case when the two parties come to an agreement where one person will make all the payments.

It’s best to speak to a specialist mortgage advisor in Newcastle to understand what your options might be. To look into this further, check out our article, “divorce & separation mortgage advice.”

If the consideration of buying a new property in the future should occur, the mortgage payment on the old property would be taken into consideration. In this circumstance, a person must seek out Mortgage Advice in Newcastle. It does depend on how generous the lender is as to how much they will lend, however, our mortgage broker in Newcastle will take this into account when recommending the most appropriate lender to apply for a mortgage agreement in principle. 

Mortgage Broker in Newcastle