How to Get a Mortgage if You’re Over 40

Specialist Mortgage Advice in Newcastle

Please bear in mind that the below information is intended solely for reference purposes and should not be taken as any kind of personal, financial or mortgage advice in Newcastle.

Can I get a mortgage at 40?

Looking at this with an initial view, the answer to this question is yes, there may be a possibility that you could get a mortgage if you are aged 40+. This entirely depends on what your situation is, however.

According to an old survey that taken out on mortgage brokers by the Nottingham Building Society, a large selection of those surveyed had said that they had seen a rise in mortgage applications being turned down for customers who were in this age bracket.

When speaking directly to these customers who were between the ages of 45 & 54 and had been declined during the time period that was being analysed, once again it all came down to age as the biggest factor.

In this article we will take a look at why we feel that these home buyers are experiencing this, and the positive steps you might be able to take if you would like to take out a mortgage over the age of 40.

Why are over 40s having mortgage applications denied?

To gain a much deeper insight into the position these mortgage applicants are in, it’s important that we look at previous years, way back to before the introduction of computerised credit scoring and increased industry regulation.

If you were to go and speak to someone at your local building society, asking for a mortgage, you will probably have been interviewed by the building society branch manager or one of their own in-house mortgage advisors in Newcastle.

They would individually make review all of the personal information you have provided, including how well you conduct your finances in your current account, before making a decision on whether or not your mortgage application should be approved.

If you were fortunate to be approved, then you would be provided with information on how much earners in similar positions to you, were able to borrow for a mortgage. This would been given to you as a multiple of your gross annual salary.

To provide you with an example of this, if you were earning a figure of approximately £20,000 per annum and the mortgage lender’s income multiple was 3.5x, then you would be obtaining a mortgage of around £70,000. 

What this method of income multiplier didn’t factor in, however, was how old you are. Because of this, it didn’t matter what your age actually was, whether or you were 30, 40 or 50, you would typically be able to borrow the same amount on a mortgage.

That sounds quite fair actually, doesn’t it? No signs of ageism.

At face value, this is what it might look like, however, if two mortgage applicants were both set to retire at the age of 65, then one of these applicants might have a term upwards of 35 years, whilst the other may only have a 15 year term, meaning they will have higher monthly payments.

Using the previous example of a £70,000 (capital and interest) mortgage, with a national interest rate of say, 5%, it could look like this: 

  • Applicant one mortgage payments on £70,000 over 35 years: £252pm approx. 
  • Applicant two mortgage payments of £70,000 over 15 years: £395pm approx. 

So in this example, we have two earners that are more or less identical, with the same amount of mortgage debt, but applicant two has much higher monthly mortgage payments than the other applicant.

If the national interest rates were to suddenly rise up, then there would be an much higher risk of arrears occurring for applicant who has higher monthly payments. At the end of the day, risk is what trying to be minimised in all of this.

With this in mind, modern mortgage calculators tend to now factor in the maximum length you could take a mortgage term for (or in simple terms, your age), as well as your income and your expenditure.

Our Thoughts

In the past, the BBC got in touch with our very own “Moneyman” Malcolm Davidson for his thoughts on the Nottingham Building Society study. His perspective was not so much that older customers are being declined, but that they cannot borrow as much as they perhaps hoped they’d be able to.

Of course, the irony in this situation, is that we are in a repeated cycle of being reminded by our own government that we will have to work until a later age, as they raise the retirement age for us to be able to qualify for our state pension.

It’s a shame that the high street lenders don’t necessarily take this into account when they look at granting customers their mortgage. Below we look at this a bit more in-depth.

Why It’s Hard to Get A Mortgage Over 40 Years Old

First and foremost, there are a various industries in the country that are manual labour focused. The likelihood of anyone continuing to work in that industry as they head into their seventies and maybe even beyond, is small.

In addition to this, mortgage lenders are pretty closely regulated when it comes to repossessions and arrears cases, as these look bad and they want to avoid them if possible. Taking a property into possession is a fairly costly process and can attract bad press for these mortgage lenders.

Regarding the topic of mortgages for much older mortgage applicants, they certainly don’t want to have to kick a pensioner out of their own home just because they can’t afford their mortgage anymore.

Thankfully, many mortgage lenders out there have started to consider granting mortgages to applicants beyond the typical retirement age, so long as you are able to show that you can afford a mortgage post-retirement.

In order to do this, you would usually give your mortgage lender with a letter from your pension provider that would project what your future income is going to be. The problem in this regard, is that even with this, your income will probably be lower at the point of retirement than it used to be.

This means when seeing if you can afford a mortgage, a mortgage lender would need you to prove that you are able to do so, even with a reduced income at the point of your retirement and beyond.

Whilst great in theory, this doesn’t always work well in practice, unless you are only looking to take out a smaller mortgage, at which point you probably don’t need to take out a mortgage past that point.

If you cast your mind back, you may remember that in 2011, they scrapped the default retirement age, as well as making it so that your employer cannot make you retire anymore, if you do not wish to do this.

Because of this, though there will be some mortgage lenders who use the state retirement age as the general guide for when a mortgage should be fully repaid, it is becoming much more common for customers to be allowed to self-declare their retirement age.

They will want to check the plausibility of this though, so if you had a highly physical job such as a firefighter, and you aimed to declare 72 as your retirement age, this wouldn’t necessarily be seen as realistic.

With The Help of a Mortgage Broker

We previously had a case where one of our mortgage advisors in Newcastle where a mortgage lender was actually in agreement to make a 9-year mortgage for a 66-year old accountant, who had declared they were going to retire at the age of 75.

That of course is a pretty extraordinary circumstance that won’t apply to most people, and is not a guarantee that you could do the same thing, though it shows that mortgage lenders can be flexible. To better your chances, you should prove how you are able to afford a mortgage at retirement.

Consumer protections and regulations are in place nowadays to protect consumers and encourage careful lending.

As you get older, there are also many different paths you could take to protect you and your home, such as equity release in Newcastle via taking out a lifetime mortgage, or even an alternative to this such as a retirement interest only or perhaps a term interest only.

A trusted and qualified later life mortgage advisor in Newcastle will be able to take a look at your circumstances and start a conversation with you and your family, if you are nearing the qualifying ages for these mortgage types and would like to go ahead, or even look at alternatives routes.

If you are a first time buyer in Newcastle, or are looking at moving home in Newcastle, please do not hesitate to contact us, or book your free mortgage appointment online, and get in touch with a trusted member of our fast & friendly mortgage advice team.

To understand the features and risks of equity release in Newcastle, lifetime mortgages and later life lending, ask for a personalised illustration.

A lifetime mortgage in Newcastle 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 repayable upon death or moving into long term care.

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Main Reasons for People Moving Home in Newcastle

As an open & honest mortgage broker in Newcastle, we have come across an array of different reasons as to why someone may look to move home in Newcastle. We have also seen our fair share of similar reasons too.

Below we have compiled a comprehensive list of the main reasons why someone may wish to move home in Newcastle; perhaps you may find one similar to yours:

For More Living Space

This tends to be the most frequent we find crops up for home movers. Usually we will see first time buyers in Newcastle finding a smaller more convenient house to begin with, opting to move into a new home further down the line once their circumstances have changed.

It is also quite common amongst people who are considering starting a family of their own. Once you become a parent, that small house suddenly becomes much smaller. This can make it difficult to feel like you have your own space.

On the flip side to this, there are other alternative means of creating more living space. Some people may look at a remortgage in Newcastle to raise some capital as a way of funding any potential home developments, extensions or alterations.

Remortgage is a popular option for homeowners who aren’t quite keen on the idea of moving out, instead choosing to make an investment on their home. This allows for you to create the space you need without leaving your home.

Doing this may also add to the properties value which could be incredibly useful if you are ever looking to sell your home in the future.

A Change of Scenery

Sometimes people may just be looking to find a change of scenery. There is nothing wrong with that, as it is something quite common. We would argue that it is one of the largest factors outside of space, as to why people may want to move home.

As a mortgage broker in Newcastle, we often hear from prospective home movers in Newcastle that they had a low budget when they first bought their home, though now that has changed and they’d like to invest in a higher-end property in a different location.

It is very likely that those types of borrowers are on a much higher income than they were previously and are looking to find a home that is in a much more affluent area than the one that they are currently living in.

When you buy your first home, it is not likely that you would consider a choice of schools if you didn’t already have a family. That can change though once a family is formed, and so you may consider moving home to be closer to better education options.

To Be Closer to Family & Friends

We also find that many who are moving home in Newcastle will look to do so, as a way of living closer to family and friends. Once again, this is much more common with couples starting a family of their own.

If both parents are to be working full time, then it is more than likely that they will ask their own parents to help them out with childcare. Private nurseries are usually quite expensive and may not always be close by.

Moving home in Newcastle can be a tricky decision to make. If you perhaps don’t want to leave but need more space, maybe it’s time to speak to one of our remortgage advisors in Newcastle. They will talk you through your options for raising capital for home improvements.

Moving Home Mortgage Advice in Newcastle

For any customer who is looking at moving home in Newcastle, we believe you will benefit from taking out expert mortgage advice in Newcastle. Book your free mortgage appointment today and a dedicated mortgage advisor in Newcastle will be in touch.

They will be able to calculate your maximum borrowing capacity and give you a rough estimate on the costs you will be possibly looking at paying per month, once you have moved home.

Even if you are swaying more towards your options for a remortgage in Newcastle, get in touch today and benefit from a free remortgage review with one of our expert remortgage advisors in Newcastle.

How Much Can I Borrow For A Mortgage in Newcastle?

https://www.youtube.com/watch?v=wLCS7aOhxQ8
How Much Can I Borrow For A Mortgage | MoneymanTV

Experienced Mortgage Advisors in Newcastle

“Can I get a mortgage in my situation?” and “How much can I borrow?” are two of the most frequent questions we find that we are asked by First Time Buyers in Newcastle & people who are Moving Home in Newcastle.

In this article, we take a look at the latter of those two questions;

How Much Can I
Borrow?

It would be nice to sit and draw out some specific guaranteed figures, but that of course can’t quite work in this setting.

Everybody has a unique case to them and this amount will usually be different depending on what your situation is.

We can however reflect upon how this may be worked out by the mortgage lender, compared to how it was worked out in the past.

Nowadays Approach

In 2014, following on from the mortgage and property markets recovering, the regulator launched the Mortgage Market Review (MMR).

This was a set of brand new guidelines that lenders had to follow, factoring in things like household spending habits.

Prior to 2014, two applicants who were earning the same income could borrow more or less the same amount, no matter what they were each spending.

Once it had changed, it was more about looking in-depth at what you were spending each month and why.

As an example of this, you could be earning the same amount, but have additional costs like childcare costs, which your counterpart may not.

This means they are likely to have access to more than you would from most lenders. There is still a “cap” to prevent the majority of mortgage lenders from going past so much of your annual income.

We regularly find ourselves being surprised by the variations between mortgage lenders. For example, some lenders have been known to penalise low earners, whilst others see pension contributions as a fixed outgoing.

Both of these factors can have an impact on the amount you’re able to borrow for your mortgage.

Of course, whilst it may be more streamlined nowadays, how did we get this far? Why is it the way it is?

Historic Rules

Way back when, in the 80s and 90s, there was not a whole lot of technological intervention in the way the mortgage process worked.

How you would go about it, is you would make an appointment with your Building Society Manager who would then encourage you to a bank and save with them if you already weren’t doing so.

This would allow them to gauge if you were creditworthy. If you were, they would give you something akin to an Agreement in Principle, followed by mortgage advice and an outline of how much you could borrow.

You could argue this was a highly personalised, common-sense approach. The issue, however, was the inconsistent decision-making as the Building Society Manager would interpret the guidelines and the criteria in their own way.

Looking to get rid of the inconsistencies and to cut the costs involved, lenders moved to automated affordability calculations. This resulted in multiplier caps being applied so that managers could no longer lend more than a specific amount.

As the 2000s continued onwards, mortgage lenders were becoming more generous in how much they would lend an applicant. Some even offer self-certified mortgages, which required no background checks at all.

In 2008, as we likely all remember, the market crashed. This eventually led to a difficult couple of years for those trying to buy a home. Mortgage lenders tightened up on lending and became a lot more cautious in their lending habits.

This leads us back to the aforementioned 2014 MMR and where we thankfully are today.

Fast & Friendly Mortgage Advice

If you are looking to maximise your borrowing capacity to buy your home, you will benefit from taking on the services of an experienced mortgage broker in Newcastle.

Our team of expert mortgage advisors in Newcastle will be able to analyse your situation and work out your finances to ensure that the repayments feel comfortable to you.

Adverse Credit Mortgages Newcastle

Adverse Credit Mortgage Advice in Newcastle

Start Getting Prepared

It can be more harder to get a mortgage if you have had credit problems in the past but Dave and Sally’s situation was made even trickier in that Dave had not long since departed from his job to pursue his hobby as a blogger as a new career.

In this case study, we talk about the importance of taking Specialist Mortgage Advice in Newcastle as early as possible to give your application the best possible chance of success.

Multiple Finance Issues? Extra Reasons for Lenders to Avoid

Dave couldn’t stand his job, but the salary was excellent, and he felt he couldn’t afford to quit. He started moonlighting on the weekend as a blogger, and he began to see this as a viable career in itself. He eventually took the plunge into looking at self-employment mortgages in Newcastle, to improve his work/life balance and could finally enjoy his work.

With the additional hours he could now devote to his former “sideline,” Dave’s business quickly showed a profit. In fact, after the very first year of trading, it was profitable enough for him to consider buying a home for himself, Sally, and their children and get out of the trap of renting.

Sadly, finances have never been Dave’s strong point, and his negligence on such matters when he was younger led to a couple of defaults on his credit record. His credit score had improved in recent years, but the old defaults were still showing on his credit report.

Therefore, there were two issues at hand when the customers approached our Mortgage Broker in Newcastle for Specialist Mortgage Advice in Newcastle. These appeared to consist of finding them a Lender who would take a more forgiving view on his historic poor credit while also lending to him based on the year’s trading figures.

The Help of Specialist Lenders & the ‘Bank Of Mum & Dad’

Dave knew that handling his mortgage wouldn’t be easy, and took the sensible step of engaging with us early on, well before they started viewing houses. He felt that his chances of getting a mortgage might even be impossible.

Looking at Dave’s Experian report, it is evident that he would absolutely need a Specialist Lender. Luckily his blogging business didn’t need much cash to get going, and he had been able to raise a 15% deposit in no time at all, with just a little help from the “Bank of Mum and Dad.” giving me the reason for some optimism.

Don’t be put off by High Rates of Interest.

Some of the less well-known “specialist” Lenders have carved out a real niche for themselves when it comes to lending to customers who have not long been Self Employed In Newcastle.

There is some additional risk for them in this area when so many businesses go bust in their infancy, thus to mitigate this, they insist customers put down a fat deposit. 15% was just enough, and we obtained an Agreement in Principle for Dave and Sally, who went on to buy a family home.

Because these specialist lenders are working in carefully selected niches, they tend to charge higher rates of interest than you might see advertised with High Street Banks. That said, these higher rates are by no means extortionate, and in many cases, it’s still cheaper than renting.

Some of the less well-known “specialist” Lenders have carved out a real niche for themselves when it comes to lending to customers who have not long been Self Employed In Newcastle.

There is some additional risk for them in this area when so many businesses go bust in their infancy, thus to mitigate this, they insist customers put down a fat deposit. 15% was just enough, and we obtained an Agreement in Principle for Dave and Sally, who went on to buy a family home.

You’re not Stuck With the Mortgage Options you Choose

Just because your first mortgage ends up being with a specialist Lender, it doesn’t mean that you are frozen out of more competitive mortgage rates forever. While it’s likely that you’ll have to sign in for at least two years, if you can prove a good payment history, then a remortgage to a more well-known Lender offering a better deal after a while should be achievable.

Specialist Lenders don’t mind you seeking another deal elsewhere, and they expect that’s what will happen in a large number of cases. They see themselves as “stepping stone” Lenders, and when you come to leave them in the future, they simply take the funds you have repaid and look to lend it back out to new customers.

In a nutshell, specialist Lenders play an instrumental role in the mortgage market. They will take a different view to mainstream Banks but don’t get fooled into thinking they lend to just anyone, and you have to fit precisely within their published lending guidelines.

Speak to a Mortgage Advisors in Newcastle Today

Once you’ve contacted us via telephone call or book yourself in for a free mortgage appointment with our Mortgage Broker in Newcastle, you’ll then be able to speak to a qualified Mortgage Advisors in Newcastle. We will always be open and honest with you, having your best interests at heart at all times. It’s our job to deliver the same exceptional service to every single customer that reaches out to us for help.

What is Gazumping? Should home buyers be afraid of it?

You may have heard the term Gazumping before, but you may not be familiar with what exactly it is. Gazumping, is a term that is used to describe an instance in which the seller of the property you are interested in, accepts another offer from someone else before the sale of the property to you is completed.

The word “Gazumping” is believed to be derived from the Yiddish word “Gezumph”, meaning to swindle or cheat someone out of something, used back in the 1920’s. When relating to house buying, the term was much more commonly used during the 1970-80’s.

Is Gazumping illegal?

When we have spoken to customers about this in the past, we have heard outcries from people who think surely, this must be illegal? Unfortunately, this is not the case at all and Gazumping is very much legal, as immoral as it is.

It’s quite a common occurrence, regularly cropping up during peoples home buying process across England and Wales. Why is it the case though? How can a practice like this be legal?

The reason is because until written contracts are exchanged by lawyers, the deals you make with a seller are not legally binding, they have no obligation to hold onto the property for you. Until your deal is completed, everything is essentially just a verbal agreement.

The idea of being Gazumped can understandably be quite a daunting concept for many first time buyers in Newcastle, even if there’s no guarantee of it happening. It’s the idea of possibly losing your dream home. Nobody wants it to happen, especially if you are a part of a property chain.

An aspect that can make it sting even more, is the prospect of you potentially losing money because of Gazumping. You may have paid for property surveys, conveyancing fees and mortgage arrangement fees, which are likely non-refundable.

How does Gazumping happen?

As touched upon above, the agreement between parties to buy or sell a property will not become a legally binding one, until lawyers perform an exchange of contracts.

This isn’t always quick, as there could be a several week delay between the point of having your offer accepted and the exchange of contracts taking place.

During this particular period, other prospective first time buyers in Newcastle may jump in to make the seller a much better offer on the property, either through speaking to an estate agent or by going directly to the seller.

These deals may be much more preferable, whether it’s a higher purchase price, the promise of a faster sale, or that particular buyer not having the pressure of a property chain. Gazumping as a term, covers any of these offers that the seller accepts whilst you’re going through your mortgage process.

Buyers Market vs Sellers Market

Whether or not the market is a buyers or sellers market may have an impact of your likelihood of being Gazumped by a seller.

If the market is currently a sellers market, that means the market is hot. There’s a strong demand, fewer properties, people want to buy and there may be bidding wars between buyers, thus driving prices up. In this case, Gazumping is more likely, as someone may drop in with a much higher offer.

On the other hand, if the market is currently a buyers market, there’s more houses than buyers, a seller may not be receiving as many offers, therefore you have less chance of someone Gazumping you and you have much more room to negotiate on price.

Ways to Avoid Being Gazumped

The delay that occurs between offer acceptance and the exchange of contracts between two parties can be due to having a property survey taken out. This is where your conveyancer will carry out the appropriate searches and you will receive your mortgage offer.

With this in mind, there are a few helpful tips you can use in order to help increase your chances of furthering yourself to mortgage success and avoiding being Gazumped.

  • Find a conveyancing solicitor or surveyor in advance, to reduce the wait time.
  • Provide all the necessary information as quickly as you can, to speed up your mortgage process.
  • Obtain a mortgage agreement in principle to show the seller that you are ready to proceed, unlike other sellers who may try to swoop in without confirmation of their mortgage eligibility.

There are also a selection of other potentially useful mortgage tips that could really benefit you during your mortgage process and further your chances of obtaining a mortgage.

Other Helpful Gazumping Tips

First of all, as a part of your mortgage offer to the seller, you should ask them to remove the property from the open market. Doing so limits how many people can see the property is for sale, which in turn reduces additional offers being made and thus reduces your chances of being Gazumped.

The seller doesn’t have to agree to do this for you, as once again there is no obligation. That being said, it is quite commonplace these days for sellers to respect this request from a buyer, especially if they haven’t been too fortunate in receiving offers as it is.

Second of all, you could look at putting a lock-in agreement in place, which would see both sides putting down a deposit towards their binding agreement. This would mean that if any one party chose to withdraw or change the deal, the other party would take their deposit.

There can be legal fees involved in setting something like this up, so it may be a costly decision, but you may feel like having this in place is worth the cost for the security it would provide you with during your mortgage process.

Lastly, there may be potential insurance options that you could take out as a means of protecting yourself against the prospect of Gazumping. These policies will pay out if you are Gazumped, protecting you against the possible loss of money, due to fees you have potentially paid throughout your process.

How a Mortgage Broker in Newcastle Can Help

Whilst Gazumping is never guaranteed to be prevented, there is a lot as you have seen, that can help protect a buyer from a higher likelihood of being Gazumped. As a trusted and knowledgeable mortgage broker in Newcastle, we may be able to offer some help.

We pride ourselves on our responsive service, working hard to get our customers through their process as quickly and efficiently as possible, whilst keeping them informed at every stage. This is a benefit to home buyers, as at least as far as things we can control are concerned, we can speed up your process.

In addition to this, we also have the ability to obtain a mortgage agreement in principle for you, typically within 24 hours of your initial appointment. Depending on the time of day you speak to your mortgage advisor, you may even be lucky enough to get this back the same day!

As mentioned above, having this AIP gives you and the seller the confidence that you are able to proceed with a mortgage, as opposed to someone who may have a better deal, but cannot confirm whether they’ll even be eligible for a mortgage.

Book your free mortgage appointment today and we’ll help you along with your mortgage journey, as a first time buyer in Newcastle.

First-Time Buyer Mortgage Advice in Newcastle

10 Factors to Help You Decide Where to Live in Newcastle

Home Buyer Mortgage Advice in Newcastle

Whether you are local or not, one of the main factors when moving home in Newcastle is the location you have in mind and knowing the area.

Of course, you will have to think about more than just where you want to live, but what the area currently looks like, what nearby facilities are there and what do you want to look out for when looking for your dream property.

To help you get a better understanding of the sort of street you would like to live in, we have compiled a detailed list of the different types of factors home buyers need to look out for when finding their new property in Newcastle. 

1. Busy city or relaxing countryside? 

Make sure to come up with an idea of the type of area you would like to make your residence in, after all you are going to be living on this property for a very long time.

If you feel more comfortable surrounded by a thriving urban scene, city life is better suited for yourself. Whereas if you prefer the quiet life, living in the countryside might be more suitable for you.

Remember, you will find pros and cons everywhere. Give yourself plenty of time to think careful before you get your heart set on a location that could be based in an area that you might not enjoy.

2. Transport Links 

The nearest transport links to and from your potential new home base are important factors to pay attention to, especially if you don’t drive.

If you don’t drive but want to go out and socialise with friends or family, or make your way to work, going shopping for essentials then you will need to know the available transport links.

If you drive your own vehicle, it’s worth making a note of how long will it take for you to reach different places? How much will fuel be? Are where are the closest fuel stations?

3. Schools & Education 

For home buyers who have kids, you should take a look at the nearest schools that are close by. Looking at the league tables and Ofsted report can give you a good idea of what schools are like.

If you don’t have any children now, whether you are planning for the future or have no plans at all, it may be beneficial to at least look it up, just to future proof yourself. 

4. Nearby Facilities – What You Need Vs What You Want 

When you are planning to live in a particular area to cater for the facilities that you are after. We recommend writing a list and separating those that you want from those that are essential.

For example, if you really want to have a gym nearby but doing so could mean that you have to live in an area without the shops you need within a reachable distance.

You probably need the shops more for your general living, so that might be something to prioritise, whilst leaving the gym as an added bonus if you can make it work.

5. Friends and Family 

The difference between where you might be living and where your family and friends currently live can have an impact on where you move to. Some prefer keeping family and friends close by.

Whereas others prefer to keep to themselves with their loved ones at a distance, prioritising peace and quiet over going out and socialising with people on a regular basis.

6. Is the property good value for money? 

Everyone wants good value for money. Which is why determining this for your home will depend on the area that you’re looking to live in.

Sometimes, it may be a better option for you to look for a cheaper property to start out with, though this might mean compromising various features or nearby facilities that you would have preferred to have had.

7. What is the community like? 

It’s the local community that makes the area what it is. Those who prefer a quiet life tend to keep to themselves. Others may prefer a thriving busy community.

Have a word with your estate agent and find out what the area is like. Community Facebook pages or locally run websites tend to be quite common these days, so they’re worth looking up to get a rough feel for the location. 

8. Career Changes 

Some home buyers may be moving because of a new job or career plan. Remember to review the distance between your new home and workplace.

If you’re going to be working in a home office and only visiting the office occasionally, would you be okay with living a bit further out? What is the space like within the property? Does your property have scope for a home office?

9. Property Type 

There are a lot of different property types available in the market, with these properties can vary in the area you are looking.

Some prefer end-terrace properties with a garden to enjoy, whilst others prefer a modern flat or studio apartment.

Make sure you have a good look at all the options available to you. Look at the viewings to get a good idea of the type of property you would prefer to live in. 

10. Local Developments 

Any information regarding future improvements in the area is handy to know, especially if you’re looking to build a life within that home and stay there for quite a while.

Online research will be the best port of call when looking to find any future investments. It’s important to consider whether these will be a benefit or a detriment to your lifestyle.

If you prefer a quiet country life, you might find their dream scenario turned into a nightmare if a big new housing development is planned within close by. 

Moving Home Mortgage Advice in Newcastle

When the time comes for making offers on property and getting yourself a mortgage, get yourself booked in for a free mortgage appointment. Our friendly Mortgage Advisors in Newcastle will be more than happy to help!

We work from early until late, all throughout the working week and weekend, subject to availability. 

No matter if you need some assistance with a First Time Buyer Mortgage in Newcastle or are Moving Home in Newcastle, we can’t wait to hear from you and help you Start your mortgage journey. 

The Pros & Cons Of Using A Mortgage Broker in Newcastle

Finding your footing on the property ladder for the first time, or jumping in once again at the end of your fixed term, can feel a little daunting at times.

There are plenty of routes these days for homeowners and home buyers to take for themselves, but you ideally want to get it right first time, especially with so much money involved.

Of course, we firmly believe that our service as a mortgage broker in Newcastle, will benefit all during their mortgage process, especially first-time buyers in Newcastle.

Whilst we are confident in our ability to assist our customers, we also understand that it is not for everyone and some may still be unsure of how we can help.

As such, we have put together a balanced overview of why coming to a mortgage broker in Newcastle may benefit you in some cases, as well as why sometimes you may prefer to go direct to the mortgage lender instead.

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

Cost-Effectiveness

In the minds of many, you are much more likely to save money by going direct and finding your own mortgage deal. This isn’t entirely untrue, as a mortgage broker in Newcastle may charge a fee, though this is very much circumstantial.

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

Without the know-how, you could either end up on the wrong deal, or unsuccessfully applying for a mortgage deal. Both of these situations could result in you spending more money than you have to, or damaging your credit score, harming your chances of applying for a mortgage in the future.

A trusted mortgage advisor in Newcastle will always aim to get their recommendation right first time, at the cheapest deal they can find. Whilst again, this may come with a service fee, you could be saving yourself a lot more money in the long run.

Local Bank Branch Relationships

Another point that many older customers think works in the favour of the bank directly, is the way the mortgage process was previously run. Before the rise of technology and online banking, you would be a loyal customer of your local branch regularly, often speaking to the same people.

When it came to a mortgage, you would sit with the bank manager themselves, who would “know your finances inside and out”, and they would be the one to approve a mortgage for you. A lot has changed since then though, and credit scoring is now all done digitally.

That means the bank manager won’t personally run through your case. Instead your case will be run against a complex online system, to determine whether or not you qualify for a mortgage. These days, everyone gets a fair shot, no matter which bank you are with.

Exclusive Mortgage Products

Tying into the previous point, many believe that you can get better, exclusive deals only by going direct. Once again, this is somewhat true, but only part of the story. See, they can offer great deals, but only from their own company.

The problem here is that not all mortgage lenders are banks and there are lots of different options out there to choose from. The best deal your bank can offer, might not be the best deal overall that you could’ve gone with.

That’s once again, where it is beneficial taking out mortgage advice in Newcastle. A dedicated mortgage advisor will be able to run through your case, and match you up to a suitable deal with one of the many lenders they have on 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 Newcastle, that you can’t find anywhere else. Whether you’re a first-time buyer, looking to remortgage in Newcastle or have a more specialist case, there will be more options for you when going with a mortgage broker.

Changes to Regulation & Consumer Protection

Following the 2007-08 credit crunch, the mortgage market needed an overhaul. As outlined in the 2014 Mortgage Market Review, lenders were no longer able to sell mortgages to their customers on a non-advised basis.

What this meant, was that you couldn’t just walk into a bank, tell them you want a mortgage and be granted it without any checks. You also couldn’t be granted a mortgage by anyone in the bank, as this was something that would happen regularly, whether they were qualified to do so or not.

In addition to this, these changes also brought about consumer protection, that a bank otherwise wouldn’t have given you. You now have the right to complain to the Financial Ombudsman if you feel mis-advised in any way. You also can make a claim via the Financial Services Compensation Scheme.

This is a tick in the column for both mortgage broker and mortgage lender alike, as it means no matter which journey you take, you’ll be safe, secure and professionally advised.

Booking an Appointment with a Mortgage Advisor in Newcastle

One area where the mortgage lenders fall short and the mortgage brokers excel, is that it can sometimes literally take months to try and speak with someone at a bank. Once you have made that contact and started your process, you’re not always guaranteed to be kept in the loop.

A unique selling point of our own, is that we are able to speak with you at times that best suit you and your schedule. Our mortgage advisors in Newcastle are here from morning until late, every single day of the week, including weekends. You might also find us working on some bank holidays too!

If you’re lucky, you might find yourself with an appointment on the same day, but that also doesn’t have to be the case. Want to speak with someone in a few days time? You are more than welcome to do so!

These advisors have time slots that best suit your lifestyle. Work 9-5 and need to speak with someone later that evening? We’ve got you covered! The best part is that with our online booking feature, it’s never been easier to speak with a qualified mortgage advisor!

Further to this, we pride ourselves on being responsive with our customers. This means no matter what stage of the mortgage process you’re in, you will always be kept in the loop. If there are any changes, your advisor will let you know as soon as they are able to do so.

It’s because of mortgage brokers in Newcastle like us, offering this level of customer service, that the public perception of mortgage brokers has changed. This has led to more people than ever getting in touch with their local experts, rather than going to the big banks.

Handling of Complex Scenarios

Sometimes a mortgage situation might be a bit more difficult than the average case. Frequent examples of this that we’ve encountered over the years, include (but are not limited to);

  • Mixed Deposit (Savings & Gift) – This means auditing two different sources.
  • Zero Hour Contract Workers – Will there be a consistent income?
  • Wanting to Make a Second Purchase – Can they afford to make that additional purchase?
  • Self-Employed with No Fixed Income – This is always a challenge for Self-Employed applicants.
  • Poor Credit History – A lender will not look favourably upon an applicant who has mismanaged payments in the past.
  • Affordability – Can they afford a mortgage full stop?

In the past, 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 the criteria.

A deal might well be cheaper, but you may not be eligible for it. The mortgage lender will run either a hard search (leaves a footprint on your credit file) or soft search (leaves less of a footprint on your credit file), to see if you are indeed able to have that mortgage.

If you apply for the mortgage with a lender and are declined an agreement in principle, this will likely damage your credit file. Worst of all, it is very unlikely you will be given a reason as to why you were declined, which can be understandably frustrating.

On the flip side to this, a mortgage broker in Newcastle will be able to run through your case beforehand, making sure you’re good to go, and informing you of anything you need to do to better your chances of being accepted.

Using the lenders they have on panel, they’ll be able to match you with deals that you may well be eligible for and look to get you agreed in principle. Obtaining your agreement in principle through Newcastlemoneyman, will usually take no more than 24 hours of your free mortgage appointment.

Of course, this doesn’t mean you’re guaranteed to be agreed, nor does it guarantee a mortgage at the end, but it’s much safer for your credit file to have an expert comb through beforehand. As expert mortgage advisors in Newcastle, we always aim to get our recommendation right the first time.

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

Ultimately, it’s your choice. As you can see, there are indeed pros and cons to going with a mortgage broker in Newcastle. Conversely, there’s also plenty of pros and cons to going direct as well. It basically comes down to how quick you want your service to be, and how secure you want to be.

As a mortgage broker in Newcastle, led by 20+ year industry veteran Malcolm Davidson, we have helped thousands of customers with their mortgage goals. From first time buyers in Newcastle getting onto the property ladder, to people at the end of their fixed period, looking to remortgage in Newcastle, it’s safe to say we’ve done it all.

If you would like to speak with a responsive, open & honest, FCA regulated mortgage expert, feel free to book yourself in for a free mortgage appointment or remortgage review, with one of our fantastic mortgage advisors. We’re here to help with all your mortgage needs, with time slots that best suit you, subject to availability.

To learn more about our service, please feel free to take a look at our genuine customer reviews. They are a wonderful reflection of the levels of service we give to our happy customers, on a regular basis. If you would like to learn more about the world of mortgages, check out our YouTube Channel, MoneymanTV.

Buying Your Home as a Sitting Tenant in Newcastle

Through our years of giving our customers expert mortgage advice in Newcastle, our dedicated mortgage advisors have found that enquiries from renters interested in becoming First-Time Buyers in Newcastle are always on the rise. They can achieve this by purchasing their rental property from their landlord.

Newcastle has always been a popular place for people to call home and enjoy their life, however, many tenants who are already living there find it quite a bit challenging to own their own home there.

With changes always happening to taxes, it’s looking ever positive for tenants of properties who are looking to purchase the place they already occupy.

Many landlords look to sell properties in their portfolio through various standard means like an estate agent, though you’ll find that there are some out there who are also willing to sell their houses to the whoever is already living in the property in question.

If you are living in a rental property and would like to purchase it from your buy-to-let landlord, it is definitely recommended that you discuss the offer with them directly on a priority basis.

Why are landlords happy to sell their houses to the existing tenants?

One of the main factors as to why more tenants now have the ability to purchase their home from their Landlord, is because of changes the government made previously, in order to crack down on tax relief relating to Buy to Let purchases.

The changes that they made took effect over the course of 4 years, and the impact of these changes are now being seen as Landlords receive their tax bills.

The temptation of the profit margins in buying and selling properties has always been something that attracts landlords as joining the property industry can come with great reward.

This profit is why a lot of different property investors chose to instead tackle the taxes head on and enjoy the the great profits that came from being involved in the property market.

Though there are positives regarding the industry, there are also negatives, with these changes being a major factor as to why some landlords have previously and still continue to leave the world of property investing and move onto something else.

A lot of the reasons have been noted for this happening including complications with tax, financial demands, and even the mental stress of trying to take on such risky deals.

If you are a tenant of a property owned by a landlord and are willing to buy your home, your landlord may very well be open to selling the property to you. Often these sales come with deals too.

These deals occur as there will be generally be no need for estate agents to get involved, as well as various other external services, meaning the landlord is likely to save some money.

Benefits For The Landlord

Maintaining Steady Rent Income

Perhaps a landlord is looking to sell his house, and the tenant takes quite a long time to leave the property. Whilst this is going on, it can mean that there may be a lapse in income for the landlord, due to no rent.

If a sitting tenant agrees to buy the property from the landlord, the transition of ownership will be a lot smoother and so will be flow of income to the landlord.

This is because the landlord will keep getting rent from the tenant until the deal is finalised, at which point he will receive the full payment for the property.

Decreased Refurbishment Costs

If the tenant of the property decides to move out and takes everything with them, the landlord will have to inspect every little detail of the house and make any necessary repairs.

If you consider the various costs of bringing in painters and cleaners, as well as anyone else that is needed to make repairs, this can be quite financially draining to the landlord.

They can save a lot of money on all of these expenses if the tenant decides to buy the house, because they already live there and will be willing to buy the property as is. Because of this, the landlord won’t have to fork out on many of the expenses they otherwise would’ve.

Benefits For The Tenant

With this sort of process, there are many different perks for the tenant. You know the property inside and out, knowing exactly what needs work.

Any non-tenant purchases run a risk of any issues going unfixed and unreported, only cropping up once they’ve already bought it.

In those cases, you can end up spending a lot of money to fix any of the problems with the property.

Freedom Of Choice

Buying the property allows you the freedom to make any of the changes (so long as planning permission is approved when required) that your landlord may have otherwise not agreed to.

Again, you may require authorisation from the council to make additions to your land, but for the most part you will be able to do whatever you want.

No Stress Of Moving

If you have been a tenant for years on end, always moving between properties, you know about the difficulties of waiting for the person in front of you to move, so that you can move in.

In these instances, the previous tenants may have struggled to find another house, or are ready to move but they too are waiting on someone else. Buying the property you already live in can be a way to avoid this.

First-Time Buyer Mortgage Advice in Newcastle

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

Mortgage Advice for Porting a Mortgage Newcastle

Generally you’ll find that the majority high street mortgages are portable. What this means is that you will have the ability to move it from one property to another, without incurring any kind of penalty.

Portable mortgages are especially useful if you are looking to move into a new home and are currently engaged in a contract with a fixed rate, as it can allow you to potentially avoid any early repayment charges that otherwise would have occurred.

Are all mortgages portable?

Whilst it’s true that a lot of mortgages available to customers are portable, this doesn’t apply to every mortgage. Some specialist lenders for example, won’t allow this to happen. Getting in touch with and speaking to your mortgage lender for a quick discussion can give you some confirmation on this.

Should I port my mortgage?

Even though more often than not it will be there as an option, in lots of cases, homeowners may simply choose not to. Perhaps the lender isn’t willing to lend them the necessary additional funds needed to move home.

It’s important to know as well, that the additional funds will be on a different rate to the rate that your existing mortgage deal is currently on. Depending on the deal that your lender offers you, it may even be more beneficial to you to take on those early repayment charges, rather than staying where you are.

What is a Sub Account?

A sub-account on your mortgage is created at the point where you decide to port your mortgage, with the additional funds being placed onto a different deal than the one you have on your current mortgage.

This means that although you have only 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 into the future, having sub-accounts can be known to cause a bit of grief. The reason for this, is because different products will eventually overlap one another. Working to get them aligned once again could mean that one of the sub-accounts has to fall onto the lenders standard variable rate for a particular amount of time.

For more information on the option to port mortgages onto new properties, please contact us to speak with a mortgage advisor in Newcastle and we’ll see how we are able to help you.

No matter if you’re moving house in Newcastle, working with a buy to let mortgage in Newcastle or are in need of help with a self employed mortgage in Newcastle, we’d love to get you booked in for an appointment to discuss your options.

Mortgage Broker in Newcastle

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

Authorised and Regulated by the Financial Conduct Authority.
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The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
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www.financial-ombudsman.org.uk

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