Can You Get a Mortgage With Bad Credit in Newcastle?

Bad Credit Mortgage Advice  in Newcastle

Unsecured credit is a topic that should not be taken lightly. We regularly speak with customers who are in dire need of specialist mortgage advice in Newcastle. Having things like missed payments, low credit scores, CCJ’s, and defaults, will have an impact on the maximum amount you can borrow for a mortgage.

If you have too many missed payments on something like a mobile phone contract, you may find yourself with a default attached to your credit file. If you are looking for a mortgage in the future, this can cause you trouble because it shows that you may be unreliable with payments.

That said, missing a couple of payments or defaults is not the end of the world. While talking to a specialist mortgage advisor in Newcastle can help navigate the mortgage process, there may find some suitable choices for you.

If you have a lower deposit, your chances of being declined are more than likely. If you have a suitable size deposit though, even if you have bad credit, a mortgage may still be an option for you, but you could face high-interest rates.

A specialist mortgage lender wants to know when and why your default was registered against you. The further away it is and depending on whether there is a good enough reason, the more likely you are to achieve mortgage success.

People do make mistakes and if it is a genuine, honest mistake that your default was issued, the mortgage lender may be a little more sympathetic during your application.

Bad Credit Mortgage FAQs 

We have compiled a list of frequently asked questions and answers in addition to bad credit mortgages.

If your questions or situation cannot be found below, feel free to book your free mortgage appointment and we will see how we can help. Our team can provide great mortgage advice in Newcastle and have a lot of experience in dealing with complex mortgage situations and may have met something similar before.

What will my mortgage advisor in Newcastle need to see? 

No matter what type of credit problems you have had in the past, your mortgage advisor in Newcastle will need to see an up-to-date copy of your credit report, which you can typically obtain online for free.

You must get your credit report before applying for a mortgage, especially if you have a poor credit history. Multiple failed credit searches can affect your credit rating and potentially prevent you from getting a mortgage altogether.

I have a good income but bad credit. Can I still get a mortgage? 

The answer to this question depends on your individual circumstances. We find that many clients can be quite confused by their credit score and need help understanding why it may be a problem.

To some customers, their credit score may not look the best, but in their eyes, they might have a good enough deposit to lower the rate and a consistent income. Even so, because of the risk, a mortgage lender may not like them to borrow anything at all.

The mortgage lender must have absolute certainty that you can keep up with your mortgage payments without the possibility of falling into arrears. If you do fall into arrears, the mortgage lender may need to repossess your home. Contrary to widespread belief, they will want to avoid this if they can.

While it may sound challenging, there are still options for bad credit mortgages, though we tend to find they come with higher rates. At this point, the most beneficial step is to book an appointment with an experienced mortgage broker in Newcastle.

I’ve had mortgage problems before. Will that stop me from getting a mortgage?

In many situations, you may struggle to keep afloat financially for reasons you cannot control. This can leave you unable to make mortgage payments you had no trouble paying.

Unfortunately, such circumstances happen. Even if it could only be a momentary blip, you can repay quickly enough, a missed payment may still appear on your record.

No matter what credit problems you face, you may face a challenge when it is time to remortgage, buy your first home, or move home.

Providing nothing but open and honest, specialist mortgage advice in Newcastle, we have had a lot of experience in helping customers who were previously tied to a mortgage and have since found themselves with a bad credit history.

If you are in a comparable situation, it will be beneficial to talk to a mortgage broker in Newcastle on your way to finding future mortgage success.

What other types of adverse obstacles are customers faced? 

Customers may face all kinds of bad credit issues, all of which can cause great grief during the mortgage process. Some of these issues include but are not limited to; 

• Missed Mortgage Payments 
• Credit Card or Loan Defaults
• County Court Judgement (CCJ’s) 
• Bankruptcy

Although none of these are particularly great circumstances, it is not necessarily the end of the road for you. With higher mortgage rates, you may have a longer, more challenging process, but there are specialist mortgage lenders who can help.

You need to focus on improving your credit score to increase your chances of mortgage success and access to better interest rates. We have a useful article that we have written on How to Improve Your Credit Score in Newcastle, which will hopefully help you to obtain a mortgage in the future.

Get in Touch for Bad Credit Mortgage Advice in Newcastle

If you are need of some expert mortgage advice in Newcastle regarding bad credit mortgages, book your free mortgage appointment online and one of our mortgage advisors in Newcastle will see how they can help.

We have over 20 years of mortgage knowledge and experience on our side, working hard to make sure that we have a definite plan of action regarding you credit score, ahead of your mortgage process. It’s our hope that the eventual outcome has you with your own mortgage. 

What to do If I Miss a Mortgage Payment?

Mortgage Advice in Newcastle

Any homeowner in Newcastle wouldn’t dream that they’ll miss a mortgage payment, but something like an illness or family emergency can occur, causing a financial struggle, especially for those with low-income and minimal savings.

It can be more challenging for those who don’t have any insurance policies in place that could cover their mortgage payments should any unforeseen circumstances occur. 

Here, we felt it was best to answer the following questions: what should you do if you are in this situation and think you will miss a mortgage payment, and how can you improve your credit score afterwards? 

Notify your lender Immediately 

If you think or know you’re going to miss an upcoming payment on your mortgage, you must inform your lender immediately. Once you have missed a payment, this will instantly show on your credit record, which will heavily impact your ability to remortgage when your old mortgage is coming to its end. 

Depending on your lender’s criteria and circumstances, there may be an alternative that can help you avoid missing a payment. Your lender will offer their support and guidance to borrowers going through a difficult time.

There is nothing wrong with feeling embarrassed. Chances are you are not alone – other people will be in a similar or worse situation. You won’t be the last or the first to contact their lender about being in this position. 

What happens when I miss a payment? 

If you miss one payment on your mortgage then this isn’t the end of the world, although this may have a negative impact on your credit rating, depending on how quickly this is resolved and how well you communicate with your lender.

Generally, if you fail to pay your mortgage, your lender will inform the credit referencing agencies, and this will have a negative impact on your credit score. However, as mentioned above, lenders will usually have a grace period after the payment due date. This will vary from lender to lender.

Your lender will usually try to work with you and help. In some instances they will set up a payment plan, a short term solution that can get you back on track with your payments.

Falling behind on multiple mortgage payments can lead to defaulting on the loan agreement, meaning that your lender could take repossession action. Repossession and eviction is the last resort for any lender, they will usually negotiate with you and help make a repayment agreement. It is recommended to reach out to a Mortgage Advisor in Newcastle prior to taking any payment plans etc.  

The Importance of Taking Out Protection Insurance 

Our Specialist Mortgage Protection Advisors in Newcastle will give you the option and recommend taking out the relevant insurance to protect you and your family from financial burden during any unforeseen health issues.

Depending on which protection insurance you take out, these will help pay for your mortgage and bills in the event you are off work sick or critically ill.

If you need any additional support or guidance, please get in touch to speak to one of our Specialists Mortgage and Protection Advisors in Newcastle and find out which insurance will benefit you. 

Buy to Let / Offset Mortgages Newcastle

Offset Mortgage Advice in Newcastle

Planning your pension

Many people like the idea of creating a property portfolio to fund their retirement and not everyone is a fan of pension plans, but they do understand the property. I know that over the past 20 or 30 years it has been a sound long-term investment despite the peaks and troughs.

In this case study, we look at one way we helped a client take her first step on the road to being a Landlord.

Remortgaging for a Buy to Let Mortgages in Newcastle

Tracy is a Self Employed mum of two, who is a Director of two small businesses. She and her partner had a fair amount of equity in their home and were interested in raising some capital to buy a low-value buy to let property, possibly at auction.

Tracy felt she could get some bargains at auctions, but she never had enough money to attend and be a cash buyer. She had looked into Remortgage Advice in Newcastle before but had been told it wasn’t possible unless they could provide an address for the onward property they wanted to purchase – the proverbial “chicken and egg” scenario.

Tracy also mentioned that once or twice a year, she received a dividend in the region of £3000 from one of the companies she was a sleeping partner in, and she has been prone to wasting some of that cash when it arrived, perhaps unexpectedly.

Surplus Funds Allowing you to Gain Lower Rates of Interest

I could tell that Tracy was a very busy person but also an astute businesswoman. The dividends she received could be put to better use as she never had it earmarked for anything specific. I recommended an offset Remortgage in Newcastle for Tracy and her partner to secure their home.

I found a Lender who was happy to release funds on completion to be assigned to a future buy to let purchase without insisting on a specific property. Tracy simply deposited the additional funds into the offset savings account that comes as part of the mortgage, and these monies simply sit there until she needs them.

The offset savings accounts do not attract interest but instead are offset against the mortgage balance. To clarify, Tracy had £85,000 surplus funds from a total remortgage of £215,000. While the money is in the savings account, Tracy only pays mortgage interest on the £130,000 difference between the two figures. The £85,000 is on instant access and was available whenever she needed it

Choosing the Right Property and the Right Amount of Investments

Three months after completion Tracy identified a suitable property that was in a state of disrepair. It was probably not mortgageable itself but of course, Tracy had access to liquid funds to buy the house outright. Tracy secured the property at a knock-down price of £55,000 but this amount needed to rise to a total of £70,000 to fund legal costs and a refurbishment program of works.

A further nine months went by and with the works, all done Tracy had no trouble finding a tenant. The house was now worth £90,000 and we raised a remortgage of £67,500 against it to fund the purchase of property number two.

The Successful Outcome of a Well-Constructed Investment Property Portfolio

Tracy has no intention of becoming a full-time Landlord but she can now see a way forward to owning three or maybe even four properties in the future to fund her planned retirement lifestyle.

She loves the flexibility that her offset mortgage brings and whilst she still “squanders” some of her dividend which is her right to do, without fail half of it at least is deposited back into her offset savings account, her money working “for her” to reduce the total amount of interest repayable.

If you are interested in offset mortgages or building your investment property portfolio, it’s our job to find you the most suitable purchase or remortgage for your circumstances. The first step is to get you booked in for a free mortgage consultation with a qualified Mortgage Advisor in Newcastle.

When is The Right Time to Remortgage in Newcastle?

Is now a good time to remortgage in Newcastle?

If you have made the decision to stay in your current property as appose to moving home. Then Remortgaging in Newcastle will be the next step in your home buying journey.

Choosing to remortgage is a good way to stay in your current property with more favourable interest rates. This can be done by being transferred from your existing deal to a more suitable deal. As an expert Remortgage Broker in Newcastle, our team of experienced Mortgage Advisors in Newcastle can help.

If I can already afford my current mortgage, why should I remortgage?

The banks rely on their customers not knowing that they can shop around for a much more suitable deal. We tend to find in some cases you will find cheaper offers elsewhere. By speaking with one of our knowledgeable Mortgage Advisor in Newcastle, they can help compare deals or you can seek these out yourself through a price comparison site.

Going forward, you will find a suitable remortgage deals for your circumstances. However, price comparison sites usually look for your best deal on an interest basis.

As long as you have been on your current mortgage deal for some time, there is a chance that you could be on a low Bank of England tracker deal. You could even be paying less than 1% so, it may be best for you to stay with that mortgage deal. This could become an issue if the base rate eventually rises as well as your payments. 

Can I borrow more money for home improvements? 

You can, depending on if you pass the affordability checks and there is a reasonable amount of equity in the property. Going forward, you may be able to increase your remortgage for future home improvements.

Remortgaging for home improvements gives you an updated home and the chance to increase the value of your property. Remortgaging can help customers in the process of updating their kitchen, converting a loft, or creating a home office. 

Can I borrow more money to fund other means? 

As well as for home improvements, you may be eligible to borrow additional funds, this could include: 

• Debt Consolidation 
• Property Investment (e.g., a Buy to Let) 
• Consumer Purchases 
• Gift to relative 

Is adding unsecured debt to my credit a bad thing? 

Adding more debt to your mortgage is not the best idea. Because, you will end up paying back more interest overall through extending the term of your debts to make the payments lower. 

Another risk of this is that you are taking debt, which is not secured and securing it on your home. It could create the potential risk of having your home repossessed. Something that will likely be a problem would be consolidating debts that you can afford or credit cards that are 0% interest. 

That said, this highlights the importance of speaking to a qualified Mortgage Advisor in Newcastle prior to securing any debts against your home. An option you could take is to reduce your monthly outgoings to avoid missed payments. By doing this, you are decreasing the risk of your credit rating being in a bad state. 

Will I be offered a remortgage by my current provider? 

A lender may offer a “Product Transfer” or “Retention” product. This allows the lender to provide you with a new deal to stay with them. You would need to contact your provider directly to see what is available to you, however, this option isn’t guaranteed.

We tend to find some lenders will allow you to make a product switch online without providing further information or advice. 

Staying with the same provider and switching products might be an easier option, however, putting a new application to a different lender may save you a lot of money. 

You will find that many banks would offer favorable rates to new borrowers over existing ones. There will be a time when lenders will take a more ethical approach that could have a positive change in customer loyalty. 

Remortgage Advice in Newcastle

What is a Cashback Mortgage?

Cashback Mortgage Advice in Newcastle

We tend to find we receive loads of enquiries regarding the many different types of mortgage available one of them being cashback mortgages. We aim to answer the most frequent questions about cashback mortgages. These include; will it benefit me in the long term or short term, and how does it compare to my other mortgage options?

With the sheer amount of requests, Mortgage Advisor in Newcastle and managing director Malcolm ‘the Moneyman’ decided to make a video regarding cashback mortgages.

What is a Cashback Mortgage?

Cashback mortgages are pretty self-explanatory. After paying off your mortgage or after finishing your mortgage term, you will get some cash back.

The amount you get back is a percentage of what you have borrowed like 1 or 2%. Some lenders like to have a fixed price in the contract. Even if you have a long mortgage term, this is a fixed amount, and it will not increase over time.

Will a Cashback Mortgage benefit me?

Cashback mortgages come with both advantages and disadvantages. Such as, some Cashback Mortgages might come with a free property valuation or some fringe benefits.

Cashback Mortgages can be very attractive to customers that are borrowing lower mortgages. You will get some money back plus some benefits on the side. If you are offered a reasonable percentage on your Cashback Mortgage, you should consider taking it up as it may be worth it in the long term.

The only real disadvantage to a cashback mortgage is that they sometimes come with high-interest rates.

Different Types of Mortgages in Newcastle

Compared to other mortgage options available, Cashback Mortgages are not the most popular. However, they are still worth considering. We still see customers at Newcastlemoneyman looking for Cashback Mortgages, and they are a great backup option if you don’t qualify for your first choices.

If you want a more in-depth viewpoint, be sure to book your free mortgage appointment online or give us a call To speak with a Specialist Mortgage Advisor in Newcastle. Our team will be more than happy to explain the benefits of taking out a Cashback Mortgage and why they could be a suitable option for you.

The Costs of Buying a Home in Newcastle

It is known that buying a property can be one of the most significant financial commitments of your life which is why you must be aware of what you’re expecting to pay for. All the additional costs can accumulate to a large lump sum and if you aren’t careful, you could be overpaying in some areas than you initially thought.

Below we have provided a full breakdown and look into the costs of buying a property in Newcastle along with the costs involved with property investment.

Mortgage Advice in Newcastle for First Time Buyers

If you are a first time buyer in Newcastle and are looking for a simple breakdown of each cost and given estimated value to each. On the flip side, those who are looking to move home in Newcastle will benefit from this as it can be a great refresher to prepare accordingly.

Valuation Fees

When you’ve had an offer accepted, your lender will perform a valuation on the property, this assessment will determine multiple factors like structural damage, property age, location etc. By doing this, they can ensure that your offer matches the ‘actual’ value of the property.

Valuations can differ with some business models offering a free valuation whereas others may charge hundreds of pounds. Sometimes, a free valuation may be included in another cost or a freebie for taking out a certain product.

As well as this, there is a large variety of valuations, some being more expensive depending on which one you need. For instance, a full building survey will be required for those purchasing an older property and will be more expensive than someone who’s bought a new build.

Mortgage Arrangement Fees

In some situations, a lender may charge you for taking out a mortgage with them. This is usually the case with products with the cheapest rates. Not all mortgages come with an arrangement fee, however, this comes down to the product and lender you could be charged up to £2,000.

Some applicants can choose between paying the arrangement fee upfront or adding them to the mortgage balance. If you choose to add them to your mortgage, you may incur further interest charges. As a Specialist Mortgage Broker in Newcastle, we can search 1000’s of mortgage products to find you the most suitable deal for your circumstances with minimal additional costs.

Solicitor’s Fees

You’ll need a solicitor to arrange the legal side of the mortgage process. The fees quoted by various firms may differ significantly. An estimated amount for a low-value property could set you back £600. You will provide the solicitor with the new property’s address, whether it’s leasehold or freehold. You’ll also need to provide the purchase price to obtain quotations. Additionally, make sure that:

• The firm includes VAT.
• The cost of any “disbursements are included.” These are fees such as Land Registry Fees and Local Authority Search Fees.
• Is your solicitor on your mortgage lenders panel?

Estate Agency Fees

Only when you decide to sell your property in Newcastle you’ll be faced with estate agent fees. Alongside property prices these fees are rising, you may expect to be paying between 1-2% of the property price.

If you are looking to sell your property, the lowest amount is usually £500. If you are looking for a more personalised service you may be expected to pay more.

Stamp Duty

Stamp duty is a tax that the solicitor will collect upon the competition of the property purchase, in addition to your solicitor’s fees and disbursements. More information regarding stamp duty can be found here.

Broker fees

A Mortgage Broker in Newcastle will usually charge a fee for their service. These fees will be discussed upfront so that you know what you’re paying for and how much your case is going to cost. We recommend trying to use a trusted pen and honest Mortgage Broker in Newcastle that charges upon completion only. Avoid any application fees where your money will be at risk.

Book your free appointment online to speak to a Mortgage Advisor in Newcastle today

Removal Fees

The cost of moving all of your household items to another property can vary depending on the service you want, how far you’re moving and how much stuff you have.

If you are happy to hire a van and transport your belongings to your new house by yourself, the service will cost significantly less. Whereas if you prefer to pay for the full service and get someone to pick up their belongings and help them move. Some local services may charge several hundred depending on circumstances.

Moving Home Mortgage Advice in Newcastle

Buying vs Renting a Property in Newcastle

Mortgage Advice in Newcastle for Home Buyers and Renters

Deciding between renting and buying a home, especially as a first time buyer in Newcastle, requires careful consideration and evaluation of your financial situation. Both options have their pros and cons, so it’s important to weigh them against your specific circumstances and priorities.

One of the key factors to consider when deciding between renting and buying is affordability. If you have enough savings for a substantial down payment, you may find that your monthly mortgage payments are lower than the average rent in some areas of Newcastle. In this case, owning a home may be a more cost-effective option for you.

However, if you do not have a substantial down payment, it may be more financially feasible to rent a home in Newcastle. Additionally, owning a home also involves additional costs such as property taxes, insurance, and maintenance expenses. So, it’s crucial to factor in these costs when evaluating the affordability of owning a home.

Ultimately, the decision between renting and buying a home in Newcastle will come down to your personal financial situation, future goals, and lifestyle preferences. By taking the time to carefully consider all of these factors, you can make an informed decision that best suits your needs.

Buying a House in Newcastle

Many parents, particularly among the younger generation, advise their children to start saving early towards a housing deposit. While this approach has several advantages, it is important to consider the potential disadvantages as well. By carefully weighing the pros and cons, individuals can make an informed decision on whether this approach is right for them

Mortgage Payments

The cost comparison between monthly mortgage repayments and renting depends on several factors, including the type of mortgage and the location.

In some areas of Newcastle, a tracker mortgage may provide lower monthly payments than renting. Tracker mortgages follow the Bank of England’s base rate, which means that you will know each month what your payments will be. However, it’s important to note that the base rate is subject to change, and if it rises, your monthly mortgage repayments may increase.

On the other hand, a fixed-rate mortgage offers stability and certainty, as your payments remain the same each month for the duration of the fixed term. This can provide peace of mind, as you won’t have to worry about changes to the Bank of England’s base rate affecting your monthly payments.

It’s important to consider both the type of mortgage and location when comparing the cost of monthly mortgage repayments and renting, as each situation is unique and will have different factors to consider.

Owning Your Own Home

As a homeowner, you enjoy a unique sense of security and comfort within the walls of your own home. You have the ability to live your life as you see fit, without the threat of eviction or interference from others. The ownership of the property gives you a sense of control and stability that cannot be found as a tenant.

However,as a tenant, you are in the hands of the property owner, who holds the ultimate power in deciding whether or not you can continue to reside in the rented space. Although landlords are legally obligated to give tenants proper notice before eviction, it is important to recognize that the property belongs to the landlord and not to the tenant. In this sense, the level of protection and security afforded to tenants is significantly less than that of homeowners.

Uncertainty

The property market can be unpredictable, and it can be challenging to predict its behavior. On one hand, you may be pleasantly surprised to find that your home’s value has increased, providing you with financial benefits.

On the other hand, the value of your property may also decrease, leading to financial loss. In either scenario, it is important to understand the market forces at play and make informed decisions about buying, selling, and investing in property.

Mortgage Advice in Newcastle

Before making a major financial commitment like buying a home, it’s important to see if you’re ready. If in doubt, consult with a mortgage advisor in Newcastle to determine your eligibility. If you’re eligible, consider speaking with a protection advisor in Newcastle to explore your options for insurance coverage.

For instance, if you have critical illness insurance and become unable to work due to a covered illness, you’ll be protected. For the best guidance, seek advice from a protection & mortgage advisor in Newcastle.

Renting a property in Newcastle 

Renting may be a more suitable option for you, depending on your current situation. It is worth considering whether you prefer to save for a large deposit to buy a property, or whether you would like to explore the possibility of sharing a mortgage with someone else. Before making your decision, it is important to consider the advantages and disadvantages of renting versus owning a property through a mortgage.

Flexibility 

When considering a mortgage, it’s important to think about your future plans for the next 5 years. Renting, on the other hand, only requires a commitment of 6 months to a year.

This can provide an opportunity to save for a down payment or move into a new property when your lease ends or when you receive the keys. If you don’t see yourself living in Newcastle long-term, renting may be a better option rather than taking on a mortgage.

Repairs

The responsibility for repairs on a property depends on the severity of the issue. Repairs can take anywhere from a few days to several months, so it’s important to research and read comments and recommendations before choosing an estate agent.

The property owner is responsible for major repairs, while minor repairs are the tenant’s responsibility. If you are the property owner, you will be responsible for all repairs and damages related to the property.

Moving Home in Newcastle with a friend(s) / family member? 

When you decide to buy or rent with a friend or partner, as a Mortgage Broker in Newcastle, we suggest you only obtain a mortgage if you have had experience living with your friend or partner before.

Being tied into a mortgage deal with a new friend or partner will likely cause problems down the line, especially if you have a change of thought and want to move out of the property. It’s not always as easy as it seems to get your name removed from a mortgage.

Removing a name can often require Specialist Mortgage Advice in Newcastle to get this sort of thing moving.

We’re Here to Help

Now that you know some of the pros and cons of buying and renting, you should now weigh up your options. Which is right for you? Which will benefit you most? Where do you see yourself in 5-10 years?

These are questions to consider during any big decision in your life. Some people prefer to make a list of the pros and cons, that seems to always help!

When it comes down to the numbers, the majority of people choose to buy over rent, they see it as an early opportunity to get themselves onto the property ladder as First Time Buyers in Newcastle.

We tend to find others would also rather the money go towards their mortgage rather than paying somebody else’s. If you need more renting vs buying advice in Newcastle, book your free mortgage appointment today to speak with one of our Mortgage Advisors in Newcastle today. 

Mortgages for NQTs in Newcastle

Mortgage Advice in Newcastle for NQT’s

Congratulations, you have recently passed your exams and now a newly qualified teacher. All you have to do is find that perfect teaching position and get yourself started teaching that specialist subject, But First, your new job requires you to relocate to Newcastle.

By now, you are experiencing that stressful yet overwhelming time of searching for a property to move to and balancing the struggle of homeownership whilst starting your new role. Rest assured, we have confidence that you are not the only individual in this situation, and we may be able to help take that stress away.

Mortgages for NQTs

It can be challenging to find a lender willing to offer a mortgage to newly qualified teachers, reasons being having no work history or having temporary contracts. But despite all this, you still can obtain a mortgage as a newly qualified teacher.

There are Lenders out there that can lend fairer deals with those working in the education section. However, finding the correct Lender can be a daunting task; this is where our Mortgage Advisors in Newcastle can help search thousands of deals to find you the best deals and rates tailored to your circumstances.

What mortgages for NQTs are there?

The different types of mortgage available for NQTs can include:
???? Shared ownership.
???? Variable-rate mortgages.
???? Help to Buy in Newcastle.
???? Fixed-rate mortgages.

Here are some of the reason why previous First Time Buyers in Newcastle choose Newcastlemoneyman as their go-to open and honest Mortgage Broker in Newcastle:

???? No previous employment history required.
???? A 12-month first post-contract can get treated the same as a permanent role.
???? Mortgages available up to one month before the start of the first contract (so you can apply in August, for example).
???? You qualify up to 95% loan to value.

How we can help | Mortgage Advisors in Newcastle

Our dedicated team of Mortgage Advisors in Newcastle know the Lending criteria inside and out; they have years of experience helping people with their mortgage situations and trying their best. 

To book your free mortgage consultation, get in touch, and our team will take some details from you to find out what your option(s) are and whether your circumstances make you eligible for a mortgage. 

How Much Deposit Do I Need To Buy A House in Newcastle?

Deposit Mortgage Advice in Newcastle

Your mortgage deposit will generally need to be for at least 5% of the value of the property you are buying in. For example, if you are looking to purchase a home in Newcastle that costs £180,000, you will need to save up a minimum deposit of £9,000.

Ideally, however, you should aim to save more than 5%, as the more significant the deposit you can build up, the more comprehensive your choice of mortgage options will be. You may also benefit from lower and often better mortgage rates.

Why is a deposit necessary when buying in Newcastle? 

In the past, it was common to find 100% mortgages. Back then, Northern Rock were offering 125% loan to value mortgages, meaning if you were purchasing a property valued at £180,000, they would lend you up to £225,000.

The reason why lenders need a deposit is to reduce the risks when they are lending. If they lend you 100% of the purchase price and you happened to fail to keep up monthly repayments, they would then have to take possession of the property. All it takes is a slight dip in house prices for them to be at a loss.

Look at it from a Lender’s perspective, if you can’t save up for, or get help to make up at least a 5% deposit for a property, then you probably aren’t quite ready to take that step onto the property ladder.

Is a 5% deposit enough?

Generally, 5% is enough for most mortgage types. Although it does vary on the lender, some will accept only a 5% deposit. To access a 95% deal, 9 times out of ten you’ll need to have a good credit score. There are lenders out there that may consider you for a 95% mortgage with a lower credit score, but the interest rate might be higher.

How much deposit do I need for a Buy-to-Let property?

It has always been necessary for the Landlord to put down a larger deposit for Buy-to-Let Mortgages, and most lenders at the moment are looking for at least 25%.

Can I take out a loan for the deposit?

In theory, this could be possible, but most lenders won’t let you do this, as essentially, this would still be 100% lending, which no longer exists due to the aforementioned risk involved with such a venture.

Can someone gift me a deposit?

Yes, this happens constantly. You might have heard the term the “Bank of Mum and Dad” (both birth and adopted parents, as well as carers & legal guardians) gifting the deposit or other family members such as Aunties & Uncles. 

As long as they can evidence the funds, prove who they are and confirm they are not expecting repayment of the gift at any point in time. For more information, we check out our article all about Gifted Deposit in Newcastle. 

Are there any circumstances where I don’t need a deposit?

If you are buying as a sitting tenant and your Landlord or family member has given you a discount from the open market value, or if you qualify for a discount under the Right to Buy scheme. Then typically, you don’t need to put any of your own money in as a deposit. This is due to the equity being already “built-in” in the deal.

Why use a Mortgage Broker?

The benefits of using a Mortgage Broker in Newcastle

Some key points we would like to make to why to use a Mortgage Broker in Newcastle, we believe there are a lot of more positives if you came to us rather than going straight to a Mortgage Lender.

Considered, it’s worth exploring your options, and we find that most people use a Mortgage Broker in Newcastle. However, this article will balance the pros and cons of both paths.

Broker vs Lender | Mortgage Advice in Newcastle

A Mortgage Broker in Newcastle like us, we likely charge a broker fee on top of other costs, whereas Lenders don’t require this payment saving you money.

You argued that “The Bank Manager knows my finances inside out,” but when credit scoring came in those statements were made redundant, you might find that the Lenders offers exclusive direct deals.

They did this to attract businesses from both consumers and brokers alike. These deals are sometimes available only via the Mortgage Broker and not the branch.

Mortgage Advice Then vs Now

Back in the day, Lenders would be allowed to let any member of staff away from you towards a potential mortgage (that likely wouldn’t benefit you), without any proper mortgage advice or consumer protection.

By 2014 this got banned, with only experienced Mortgage Advisors allowed to provide Mortgage Advice and make recommendations for their products; customers ended up waiting on an extended period just for an initial appointment.

Sometimes this can happen, which isn’t great when you’ve had an offer accepted for a property. With issues like this application via Mortgage Brokers started to climb.

We offer a same day service, aiming to put you through to a qualified Mortgage Advisors in Newcastle within the same day or immediately after making a call.

The Challenger Nowadays

Now the challenge is finding a lender whose criteria and features can be personalized based on your circumstances. Bear in mind, though, that the deals with the lowest rates tend to carry arrangement fees.

No matter how good a Lenders deal is, you’ll have to take note of the affordability, and this is such a big deal. Many people choose to go with a Mortgage Broker in Newcastle as we can compare the criteria and find something tailored to your circumstances.

Newer Regulations

These days, thanks to regulations post Credit Crunch, mortgage applications are no longer straightforward. There are a variety of things that could potentially be a hindrance when you’re making your application. These can include:

• You having a poor credit history.
• You are receiving a self-employed income.
• I am having a mixed deposit source, i.e. Gifted & Savings.
• Opting for Let to Buy. Renting your current home to buy another.
• Being a contractor or working under a zero-hours contract.
• You’re striving on the affordability front.

Lending Criteria’s

Over the years, Mortgage Lenders would show their competitive side, often trying to offer better deals than the next Lender. Nowadays, because of tightened margins, their differences come from their lending criteria.

Examples of these include the amount some would lend to the self-employed compared to others, as well as being slightly more lenient to previous adverse recordings on your credit report.

Why you should come to us?

Whatever the situation, it is unique to you. When you explain this to an experienced Mortgage Broker in Newcastle, they will likely have encountered something similar before. Hopefully, they’ll use this experience to recommend the most appropriate mortgage for you at the lowest rate available to you.

Our service we go above and beyond to our customers, they rely on us, even if the application is straightforward. We can discuss how much they’re planning to offer on a property, recommend services such as solicitors and property surveys, and go through any available protection.

Still need more convincing?

Another significant aspect of the service a Mortgage Broker in Newcastle provides is the ability to be more responsive than the lenders’ direct propositions. Out of hours and weekends, appointments are commonplace, as are our Mortgage Advisors in Newcastle working late on an evening to respond to customers’ emails.

Overlooked factors on why most applicants prefer a mortgage broker is that everyone seems to be busy, and you just might need someone to handle the full transaction and take away your stress. Professional applicants will see the benefits of this as they have clients of their own that they’re able to charge their services.

Maybe in the future, lenders will want to take back more clients from brokers. If this happens, it’s relatively unlikely they’ll staff-up their branch networks. It’s more than likely they will make investments in technology to transact with customers online.

Contact us now

For clients who want to do business that way, with say a straight forward product switch, it’s great. Generally, whether they’re First Time Buyers in Newcastle, Self-Employed in Newcastle, or looking to Remortgage in Newcastle contact us now and speak to experienced Mortgage Advisor in Newcastle today.