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Planning to Get a Mortgage in Newcastle?

Securing a mortgage is likely to be one of the most substantial financial decisions you’ll ever take. Everyone wants to secure their dream home on the best possible terms. The great thing is, you have the opportunity to outpace other buyers by preparing in advance to boost your chances of mortgage approval – One such tactic is securing a Agreement in Principle ahead of beginning your property search.

In some cases, it may be challenging to prepare for a mortgage, for instance, if you and your partner decide to separate. It’s distressing when this occurs, but if it does, you may need to transfer from a joint mortgage to a single one.

Why Planning for a Mortgage is Important

We advise all our new clients to start planning their mortgage process six months ahead of their planned move in Newcastle. Your mortgage application will be better positioned to navigate all potential hurdles if you prepare systematically in advance. If you encounter any issue, you ideally should be prepared to resolve it.

Leveraging more than 20 years of industry experience has enabled us to troubleshoot various mortgage-related issues, and help any first time buyerd and home movers in Newcastle. When in the final phase of the mortgage process, if any obstacles appear, our team of Mortgage advisers in Newcastle can rectify these if you’ve prepared adequately. Here are some common challenges our clients often face:

With up to six months of preparation and planning, you may be able to avoid some of these problems.

Deposit

The precise amount needed for a ‘5% down payment’ may vary since you can’t determine the exact amount till you find a suitable property. For clients who struggle with the initial down payment, it’s relatively common to receive support from parents via a gifted deposit.

This lump sum, provided with the understanding that it need not be repaid, can facilitate the property purchase. If eligible, another viable option would be one of the schemes, designed explicitly for individuals who need assistance to buy a newly constructed home. This could be particularly helpful for first time buyers in Newcastle, seeking support on their way to becoming homeowners.

Credit Score

Credit Ratings Your credit rating is crucial in the mortgage application process. A poor credit rating can hamper your ability to secure approval for a mortgage. The reason for your low credit rating could influence this. A history of CCJ or bankruptcy would further lower your chances of approval, depending on how recent these issues were.

We suggest referring to Check my File to review your credit score. This site enables you to access your credit report to identify any potential obstacles to securing a mortgage. Once you’ve sourced this information, feel free to share it with us; we’ll be glad to examine it at no cost.

Bank Accounts

In the run-up to your mortgage application, be mindful of how you’re managing your finances. Lenders will closely inspect your bank statements and notice all transactions. Two potentially contentious issues to look out for are:

Self Employment

Securing a mortgage can be slightly more challenging for self-employed applicants, as they may be required to provide more comprehensive evidence than their regularly-employed peers. You’ll need to present at least a year’s accounts and three months’ bank statements to verify your income and affordability. Depending on the lender, you may be asked for additional documents if they have doubts about your financial health.

Other Mortgage Hurdles

For any unanticipated scenarios, remember that a Newcastle-based Mortgage Broker like us is here to assist. Every individual may encounter different mortgage hurdles, and we’re here to guide you through the process. We’ve helped numerous clients who have had to navigate complicated and specialist scenarios to secure their mortgage. We provide support and guidance throughout the process, ensuring you never have to go it alone.

First Time Buyer Buy to Let Mortgages Explained in Newcastle

For some first time buyers in Newcastle, entering the property market as landlords through buy to let mortgages offers a strategic pathway to homeownership. This approach allows them to leverage rental income to cover mortgage repayments or generate additional income, making property ownership more financially feasible. Additionally, investing in buy to let properties can provide a foothold in the property market while navigating the challenges of purchasing a primary residence.

Why are lenders so limited for first time buyers to be first time landlords?

Lenders typically impose stricter criteria on first-time buyers seeking buy-to-let mortgages due to the higher risk associated with this demographic. First time landlords may lack experience in property management and rental market dynamics, raising concerns for lenders about their ability to manage rental properties effectively. As a result, many lenders require higher deposits, impose lower loan-to-value ratios, and may have specific eligibility criteria for first-time buyers venturing into the buy-to-let market.

Can you do an interest-only mortgage as a first time landlord, first time buyer?

While interest-only are available for buy to let mortgages in Newcastle, they are less common and often come with stricter eligibility criteria. As a first time buyer in Newcastle and landlord, securing an interest-only mortgage may be challenging due to the perceived risk associated with this type of loan. Lenders may require larger deposits, robust evidence of rental income potential, and a comprehensive financial assessment to ensure borrowers can afford the interest payments throughout the mortgage term.

Additionally, first time landlords may face limited options and higher interest rates compared to seasoned investors with a proven track record in property investment. Therefore, it’s essential for first time buyers considering interest-only mortgages for buy to let properties to conduct thorough research and seek expert advice to navigate the complexities of this financing option.

How to Save For a Mortgage in Newcastle

As a first time buyer in Newcastle, making that first step onto the property ladder may seem overwhelming. It goes without saying, that ensuring a good credit score and providing a sufficient deposit for a mortgage is a huge part of this process.

Working out how much you need to save for a mortgage in Newcastle

To estimate how much you need to save for a mortgage in Newcastle, begin by calculating your monthly disposable income. This is done by subtracting your monthly expenses from your income.

The result gives you an idea of how much you can allocate towards your mortgage savings each month. It’s a great way to set tangible and attainable savings goals.

Most high street lenders will require a minimum deposit of 5% of the property value. However, some first time buyers set their sights on saving around 20% of the property’s cost or more if possible.

A larger deposit usually decreases your monthly payments and can open you up to more favourable interest rates. If you have bad credit in Newcastle, you may be required to put down a higher deposit anyway. This is could be around 10%-15%.

Keep in mind that a mortgage is borrowed money, hence the more borrowed, the more interest to pay back. To figure out how much you’ll borrow for your mortgage, speak with a mortgage advisor in Newcastle.

Don’t forget to set some money aside for the additional costs of buying a property. Along with this, your mortgage and protection advisor will provide you with various insurance or coverage options for your property.

Are there any mortgage schemes in Newcastle?

A host of government schemes are available to assist first time buyers in Newcastle. For example, the Shared Ownership Scheme provides for those not able to afford a mortgage on 100% of the home. This unique scheme allows you to purchase a share of your property (typically between 10% and 75% of the home’s value), with the remaining share covered via rent. More detailed information can be found on the government’s OwnYourHome website or by scheduling a free mortgage appointment with us.

There are more initiatives that you can benefit from, such as the Lifetime ISA, RIght to Buy and many more. Each scheme differs and can help different types of applicants. You will not meet the criteria for every scheme, so you must look at each criteria before applying.

Help from elsewhere 

A gifted deposit can also be a big boost in your homeownership journey as a first time buyer in Newcastle.

A gifted deposit is exactly what you would expect it to be. It is a lump sum of cash gifted to you from a family member or friend to use towards your housing deposit.

A gifted deposit is strictly a gift, not a loan to be repaid at a future date. The person providing the gift will have to sign an agreement that this is a gift and not a loan.

Review your outgoings

Evaluate how you use your current income. There might be an opportunity to reduce expenses like mobile phone and broadband packages or discretionary services like gym membership or streaming services. Cutting down on these can free up more resources for your deposit.

Buying a property in Newcastle with a friend or partner

Don’t hesitate to rely on purchasing property together with a friend or partner. This approach can essentially half the time it would take you to accumulate a deposit.

Be aware that in cases of default, the other party will be responsible for the entire mortgage. Options like Joint Tenancy and Tenancy in Common exist for individuals considering this route.

Saving for a mortgage with bad credit in Newcastle

Should you have bad credit, you might face higher interest rates and could be required to provide a larger deposit.

It may be a smart move to focus first on improving your credit score. There are many different ways to improve your credit score in Newcastle, such as sticking within your maximum credit limit, meeting payment deadlines, building a credit history, closing down unused credit accounts and removing financial ties with over parties.

Getting mortgage advice in Newcastle

We at Newcastlemoneyman are ready and willing to provide guidance and advice on your mortgage journey.

We offer a free mortgage appointment to all our clients where we’ll work hand-in-hand to achieve your mortgage goals. Simply book your free mortgage appointment online and select a date and time that suits you! We have weekend and evening availability also.

How long does it take to get an agreement in principle in Newcastle?

Typically, a mortgage agreement in principle can be secured within a day of discussion with a mortgage advisor. An AIP remains valid between 30-90 days post issuance. In case your AIP expires, you can easily have it renewed when you are ready to proceed.

What is an Agreement in Principle?

The term “mortgage agreement in principle”, also often referred to as “Agreement in Principle (AIP)”, or “Decision in Principle”, is where a lender confirms that based on your creditworthiness, you qualify for a specified mortgage. As soon as you have this agreement in principle and have considered some advice tailored for first time buyers in Newcastle, you can start house hunting.

As a first time buyer in Newcvastle, having an agreement in principle could aid negotiations, potentially leading to a reduced asking price, as sellers generally view those with an AIP more seriously, giving them confidence that you have the financial means to complete the purchase.

Will obtaining an agreement in principle affect my credit score?

Many clients are becoming more aware of what activities can negatively impact their credit rating. Applying for credit invariably involves a credit check. Any application for credit, be it a mortgage, personal loan, mobile phone contract, or car finance, necessitates these checks.

As an established and trusted mortgage broker based in Middlesbrough here at UK Moneyman Ltd, we do not conduct credit checks ourselves. However, with your permission, the mortgage lender will run such a check on your credit background.

Credit checks typically fall into two categories: a soft search or a hard search.

What is a hard credit search?

A hard search provides an extensive overview of your credit history, which can potentially affect your credit rating. All institutions that conduct a hard credit check are obliged to seek your consent prior to initiating the check.

The benefit of a hard search is that it provides the lender with a comprehensive insight into your financial status. If you meet their requirements, you stand a better chance of securing your mortgage, although it is not a guarantee. The downside is that hard checks leave a footprint on your credit file indicating that a hard credit check was undertaken. Multiple hard checks, especially in a short period, can negatively impact your credit rating and consequently, your chances of approval.

What is a soft credit search?

Contrarily, a soft credit check offers limited information about your credit status and is often used to verify your identity or by websites for offering quotes. Soft checks are less likely to impact your credit rating and increasingly, lenders are opting for soft checks initially. Soft checks are only visible to the person they are run against and therefore don’t carry the same risk of negatively impacting your potential mortgage application.

Is an agreement in principle a guarantee that I will get the mortgage?

While a mortgage agreement in principle does provide comfort, there is no absolute guarantee that your formal mortgage application will be approved. You will still be required to submit various documentation like identification, payslips, and bank statements for full review by the lender. Especially for self-employed applicants, the requirements may differ slightly.

Can I make an offer without an agreement in principle?

While there is no legal requirement, making an offer without a mortgage agreement in principle might not look favourable to the estate agent handling the transaction.

What Credit Score Do I Need For a Mortgage in Newcastle?

In our practice as mortgage broker in Middlesbrough, the question that frequently comes up is: What is the ideal credit score to have in procuring a mortgage? It’s irrefutable that your credit history and score play a significant role when you’re looking to secure any form of financing.

Various online platforms like Experian, Equifax, and TransUnion may provide certain benchmarks for good and bad credit scores, offering a general indication of what may be acceptable for obtaining a mortgage. However, these should only be viewed as mere guides since each mortgage lender has its own stringent qualifying conditions. Therefore, a score deemed ideal in general terms, may not necessarily satisfy a mortgage lender’s criteria.

On the flip side, what might appear as a poor score could be just ample for securing a mortgage, with higher interest rates. A credit score exceeding 900 is often regarded positively and could afford you a multitude of mortgage options. However, some situations might call for higher scores, even upwards of 950, in meeting specific mortgage lender’s exacting requirements.

This is the point where advice from a mortgage advisor in Newcastle comes into play. A mortgage advisor can assess your credit history, your financial goals, income, and more, to align you with a mortgage lender who can cater to your specific needs. Booking your free mortgage appointment with our team, can equip you with the most suitable mortgage deal to fit your personal circumstances.

Is it possible to get a mortgage with a low credit score?

The probability of securing a mortgage with a low credit score is another recurring question. It is indeed feasible, contingent on individual circumstances. Every applicant’s situation is exclusive, meaning it’s very much possible for someone with a lower credit score to procure a mortgage while another might not be as fortunate.

Young applicant with low credit score

Contrarily, as a young applicant with a low credit score, you still stand a chance to achieve mortgage success. We frequently encounter this scenario with first-time buyers who seldom have an extensive credit history. While many perceive this as an obstacle, particularly prospective applicants, it doesn’t imply that they’re financially careless or have a record of missed payments or defaults.

They may simply be first time buyers in Newcastle, without a substantial credit score. Although not all mortgage lenders consider this desirable, if you manage to meet the affordability checks, certain lenders might be willing to accept applicants in such circumstances. An experienced and reliable mortgage broker can help assess if you meet mortgage lender’s criteria.

Mortgage with a CCJ or Default

Issues like County Court Judgements (CCJs) or defaults can significantly lower the credit score, thus decreasing borrowing capacity or even entirely obstructing the mortgage procedure. However, even under such challenging conditions, it’s sometimes conceivable to secure a mortgage. While a CCJ is undesirable, often making it tough to even procure a credit card or open a bank account, there’s still a possibility for a person with a small, 4 to 5-year-old CCJ to obtain a mortgage potentially. The pivotal factor lies in the mortgage lender’s criteria and the individual circumstances of the applicant.

Remortgage with bad credit

Even homeowners looking to remortgage in Newcastle may face hurdles if they have bad credit. While handfuls of specialist lenders may accept such cases, a specialist mortgage broker’s guidance can prove utterly beneficial during the remortgage journey.

How does a low credit score impact interest rates?

There’s no denying that applicants with a lower credit score might find the mortgage application process more arduous, potentially ending up with higher interest rates. However, younger applicants with lower scores may not necessarily fall under the same bracket as they don’t have adverse credit. Contrarily, those with adverse credit might need a larger deposit and face higher interest rates.

Ways to Improve Your Credit Score

To augment your possibilities of mortgage success, it’s wise to put efforts into improving your credit score before initiating a mortgage-related enquiry. Updating your addresses on the electoral roll, closing redundant or old credit accounts, severing financial ties with ex-partners or friends, maintaining low usage of credit cards, making timely payments, and ensuring your credit report is error-free are some ways to enhance your credit score.

Booking in for a free mortgage consultation can yield further advice on maximizing your mortgage possibilities in the future. As Malcolm Davidson, the managing director of UK Moneyman LTD and a prominent name in the mortgage advisory sector, would assert, it’s essential to deliver a 5* customer experience and comprehensive, tailored advice to every applicant.

Contractor Mortgages & The Gig Economy in Newcastle

Contractor Mortgage Advice in Newcastle

In the rapidly evolving job market, over a million individuals are now employed in the ‘freelance economy’. This burgeoning group includes professionals offering services on a contract basis, manual labourers possessing varying degrees of skills, and a substantial number of couriers, fuelled by the recent surge in e-commerce. However, unlike their counterpart ‘traditional’ employees, these workers usually don’t receive pay during sick days or holidays.

Increase Your Chance at Mortgage Application Success

For those working within the freelance economy, securing a mortgage can pose unique challenges as they’re often categorised as self employed in Newcastle by financial institutions. To increase the likelihood of a successful mortgage application, it’s important for such individuals to show a consistent employment history – ideally, one spanning over a year unless the contract extends for a longer period.

Should the lender classify you as a sole proprietor, you’ll have to provide proof of your net earnings after deducting expenses. In such cases, employing the services of an accountant might prove helpful. On the other hand, if you operate a Limited Company, lenders typically take the paid salary and any declared dividends into account.

Mortgage Lender Flexibility

Given the rise of gig economy workers, some mortgage lenders have adopted a more flexible approach when determining their income. If you’ve been operating as a freelance contractor and have an active contract, certain lenders may base your income assessment on your daily rate. This calculation involves multiplying the daily rate by 5 and then by 46 weeks. The assumption is that even full-time freelance workers do not typically work for 52 weeks per annum due to unpaid vacations. This model is particularly favoured by IT contractors who usually hold out for lucrative business contracts.

Self Employed Mortgage Advice

Just like freelancers or gig economy workers, self employed in Newcastle applicants must plan ahead before applying for a mortgage. Paying the minimal taxes may seem attractive, but bear in mind that lenders prefer to see a strong, sustainable earnings record. It’s advisable to start building a rapport with a mortgage advisor in Newcastle as early as possible. Furthermore, if you’re on a zero-hours contract, mortgage lenders typically require a year’s worth of earnings, and usually consider the average earnings for that period.

Can You Get a Mortgage With Bad Credit in Newcastle?

As a mortgage broker in Newcastle, we frequently collaborate with clients seeking assistance with bad credit, arising from issues like missed payments, low credit scores, CCJs, and defaults, among others.

Frequently missing payments, such as on a mobile phone contract, may result in a default being associated with your credit record. This can present challenges when contemplating a future mortgage application, hinting at potential payment unreliability.

Fortunately, having missed payments or defaults doesn’t render it impossible to secure a mortgage. To enhance your prospects, we strongly recommend seeking specialist mortgage advice in Newcastle from a professional.

It’s important to note that obtaining a mortgage with bad credit in Newcastle may require a substantial deposit, potentially ranging from 10% to 15% of the property’s value. Mortgage lenders will seek detailed information on why you have bad credit.

They will also assess the duration of your bad credit history; if the default occurred recently, your chances may be significantly impacted. However, if the default happened years ago, and you haven’t missed payments for an extended period, your chances could be more favourable.

Everyone encounters setbacks, and having bad credit in Newcastle shouldn’t deter you from pursuing your mortgage goals. Specialised mortgage products designed for applicants with bad credit exist, and these deals could align with your personal and financial circumstances.

Bad Credit Mortgage FAQs in Newcastle

Drawing on our two decades of experience, we’ve encountered nearly every type of specialist mortgage situation. Regardless of the scenario, we always strive to provide assistance where possible.

Individuals with bad credit in Newcastle often have numerous questions, adding to the complexity of the mortgage process. To address these concerns, we’ve compiled a list of the most common questions asked by applicants with bad credit in Newcastle.

I have been declined by my bank for a mortgage in Newcastle, can you help?

As a trusted mortgage broker in Newcastle, many clients come to us after facing rejection from their bank for a mortgage. We strongly advise against repeated applications to your bank, as each rejection may negatively impact your credit.

Instead, we recommend reaching out to our mortgage advisors in Newcastle to discuss your current mortgage options. Even if you believe your situation is complex, we may be able to provide assistance.

What will my mortgage advisor in Newcastle need to see?

Regardless of the nature of your past credit issues, your mortgage advisor in Newcastle will require an up-to-date copy of your credit report. Obtaining this report before initiating a mortgage application is crucial, especially if you’re unsure about your credit history.

Our mortgage advisors in Newcastle can perform a complimentary credit check for you, ensuring it doesn’t affect your credit score. Multiple credit checks can potentially hinder your mortgage eligibility, so it’s advisable to avoid unnecessary checks.

Can I still get a mortgage in Newcastle with a good income but bad credit?

The answer to this question hinges on individual circumstances. Some individuals with less-than-ideal credit scores may still secure a mortgage with a substantial deposit and a stable income. However, despite these factors, a mortgage lender might decline the application due to perceived risk.

Mortgage lenders seek evidence of consistent mortgage payment capability to mitigate the risk of arrears. Repossession is a last resort for them, and they prefer to avoid such scenarios.

Although securing a mortgage with bad credit might involve a higher interest rate, viable options exist. Consultation with a professional mortgage advisor in Newcastle can help explore these options.

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

Regrettably, some individuals do miss mortgage payments, impacting their credit negatively. Even a single missed payment, with a plan to repay promptly, can register on your credit record.
If missed payments become recurrent, it can significantly affect your credit.

When the time comes to remortgage in Newcastle, purchase a new home, or invest in a buy to let property, challenges may arise. It’s crucial to recognise that mortgage lenders prioritise reliability and trustworthiness in your credit history.

What other types of adverse obstacles are customers facing?

As applicants navigate the realm of bad credit mortgages, they may encounter various scenarios that present substantial challenges during the mortgage application process. Some of these issues include, but are not limited to:

While these circumstances are less than ideal, they do not necessarily preclude you from obtaining a mortgage. Although the process may be more challenging, potentially leading to higher mortgage rates, specialist mortgage lenders are available to provide assistance.

Get in Touch for Bad Credit Mortgage Advice in Newcastle

In need of specialist mortgage advice in Newcastle? Look no further than our team at Newcastlemoneyman. We understand that navigating the mortgage process with bad credit can be intimidating, and we’re here to lend a helping hand.

Every customer is entitled to a free mortgage appointment. Simply book online or give us a call to arrange a date and time that suits you.

Why Get Mortgage Advice in Newcastle?

Ever had a situation where you’re reserving a flight, only to realise that you’ve chosen the wrong date or location? Despite seeming simple, these tasks can often become time-consuming, complex, and maybe even more expensive than anticipated.

Scenarios like these can bring about unnecessary stress. What was supposed to be an exciting endeavour, has now turned stressful due to a minor error. In such situations, you might consider seeking the assistance of a travel agent to alleviate the pressure of the process.

Similarly, the realm of mortgages can evoke the same worries and stress. Much like a travel agent, a mortgage broker in Newcastle, like us, can step in to lighten your burden.

Essential Mortgage Guidance in Newcastle

You might have recently come across a fixed rate deal, but later discovered that it doesn’t align with your circumstances.

As is the case with all advertising, the goal is to pique your interest and entice you to explore further. Typically, such deals are targeted at clients with substantial equity and stellar credit scores.

There is almost always a more appealing offer out there, but it might not necessarily be the most fitting for your personal or financial situation.

It’s crucial to remember that when you opt for a specific lender, you are restricted to their products and advisors. Be cautious of estate agents and their price comparison websites. You can learn more about estate agents’ sales tactics in our article.

At Newcastlemoneyman, our customers’ best interests are always our priority. We have the ability to provide a variety of products from diverse lenders, some of which are more specialised, depending on your goals.

Additionally, our dedicated team of mortgage advisors in Newcastle will never pressure you into anything you don’t want – our aim is to support you on your journey.

Schedule Your Free Mortgage Appointment Today

Book your free mortgage appointment today with one of our mortgage advisors in Newcastle. They will explore your options and suggest the most appropriate mortgage deal for your current situation.

They might also recommend features like a fixed interest rate, offset options, or variable rates for flexibility.

Our job is to know these criteria thoroughly, which is why we strive to guide you onto the most suitable path for your circumstances.

If we’ve done our job well – and we have a solid track record of doing so (refer to our Customer Reviews) – you’ll secure a deal that lets you borrow your desired amount at reasonable interest rates, saving you both time and money.

We’ve helped numerous first time buyers in Newcastle, those inquiring about their options for a remortgage in Newcastle and even self-employed individuals seeking mortgage advice in Newcastle.

If you’d like to benefit from our free initial mortgage consultation and speak with a mortgage advisor in Newcastle, please get in touch and we’ll see how we can help you.

Do Gambling Transactions Look Bad on My Bank Statements in Newcastle?

Gambling Transaction Mortgage Advice in Newcastle

When a lender reviews your bank statements, they are looking for various indicators. Their main objective is to assess your financial responsibility and your ability to maintain timely mortgage payments.

Recently, many applicants especially first time buyer in Newcastle have been asking a common question: ‘Do gambling transactions negatively affect my bank statements?

Mortgage Questions to Consider

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What has it got to do with the lender whether I gamble or not?

While engaging in licensed gambling is not illegal, there’s no need to worry if you’ve occasionally placed bets on events like the Grand National or used online betting platforms. For many, gambling is simply a common pastime, much like any other hobby.

However, it’s essential to heed the message often seen in gambling advertising: ‘please gamble responsibly.’ This is a crucial consideration when applying for a mortgage. Lenders are not in the business of dictating how you lead your life, spend your money, or passing judgment on the ethics of gambling. Nevertheless, they do have a responsibility, as underscored by mortgage regulations, to make lending decisions prudently.

If lenders must demonstrate to regulators that they are making sound lending choices, it’s not unreasonable for them to expect borrowers to approach their personal finances in a similar responsible manner. Put yourself in their shoes: if you were lending your own money, would you lend it to someone with a serious gambling addiction?

Is it still possible to get a mortgage if I’ve got gambling transactions on my recent bank statements?

Having occasional gambling transactions on your bank statements is not inherently a barrier to mortgage approval, as gambling itself is legal. However, lenders will assess the reasonableness and responsibility of these transactions. They will pay close attention to their frequency, size in relation to your income, and their impact on your account balance.

If your gambling transactions are infrequent and involve small amounts that have minimal impact on your overall account balance, they are unlikely to raise concerns. However, if you engage in daily gambling or frequently overdraft your account, lenders may view this as irresponsible behavior, which could lead to a mortgage application denied.

Is there anything else lenders wouldn’t want to see on my bank statements?

Lenders look at your bank statements to gauge your financial management, aiming to determine your level of responsibility or the presence of financial red flags. For instance, having an overdraft facility and occasionally using it isn’t necessarily a concern, but consistently surpassing the overdraft limit is less favorable. Hence, lenders pay close attention to excessive overdraft fees and bounced direct debits, as these may indicate poor account management.

Additional items lenders watch for include credit transactions from payday loan companies, undisclosed loan repayments (when you claimed no existing loans on your application but regular loan payments appear), and noticeable missed payments.

Moreover, they assess the duration of time your account remains in overdraft throughout a typical month. If you’re only using it briefly after payday and spend the rest of the month in overdraft, lenders may question the sustainability of the mortgage.

What can I do to improve things?

Keep in mind the importance foresight. In most cases, a bank may request your three most recent bank statements, which encompass your salary deposits and recurring bill payments.

If you anticipate applying for a mortgage in the near future, it’s wise to steer clear of the potential issues mentioned above. Consider taking a temporary break from gambling and focus on optimising the presentation of your bank account to enhance your prospects.

Mortgage Broker in Newcastle

Whether you’re a first time buyer in Newcastle, feeling a bit overwhelmed by the process, or you have a complex case requiring a specialist mortgage advisor in Newcastle, our team is here to provide expert guidance. We’ll navigate you through the entire mortgage process, assist with your application, and set you on the right path.

Our team is available 7 days a week, ready to address your mortgage queries. We’re eager to assist you on your mortgage journey. Schedule a free call with one of our mortgage advisors in Newcastle today.

Our 10 Step Mortgage & Home Buying Guide for First Time Buyers in Newcastle

Here is a rundown of the 10 steps that make up the mortgage process for first time buyers in Newcastle. This will help you be well-prepared for the journey ahead as you venture into the world of mortgages.

First Step: Get in Touch for Your Free Mortgage Consultation 

So, you’ve made the exciting decision to buy a home and venture into the world of mortgages as a first time buyer in Newcastle. This is undoubtedly one of the most significant financial choices you’ll ever make, and realising the weight of it, especially without prior experience, can be a bit overwhelming.

That’s where a dedicated mortgage broker in Newcastle comes in – to guide you through the process. Our aim is to alleviate your stress and work diligently to ensure that you emerge on the other side with a mortgage and your first home, all while securing a favourable deal.

Upon reaching out to us, we’ll arrange a complimentary initial mortgage consultation with a knowledgeable mortgage advisor in Newcastle. During this session, we’ll gather your information, assess your plans, and kickstart your journey.

Second Step: Mortgage Affordability Assessment – How are you doing Financially? 

During your complimentary mortgage consultation, one of the topics your dedicated mortgage advisor in Newcastle will cover is a mortgage affordability assessment.

In this assessment, your appointed mortgage advisor in Newcastle will review your monthly income and regular expenditures (your typical expenses) to ascertain whether you have the capacity to comfortably manage the monthly repayments for the mortgage amount you’re seeking to borrow.

This evaluation holds immense significance because, prior to presenting your case to a lender, it’s essential that we are confident in your ability to meet the repayments.

This precaution is taken to prevent the potential risk of falling into arrears and the unfortunate prospect of repossession, which both the lender and you would want to avoid.

Typically, the lender conducts their own mortgage affordability assessment. However, our preliminary assessment serves to streamline the process, saving time for the lender, us, and most importantly, you.

This proactive step prevents the submission of an application that could potentially be declined due to affordability constraints.

Third Step: Obtaining a Mortgage Agreement in Principle

Moving forward in your consultation, the subsequent stage involves obtaining a mortgage agreement in principle. If you’ve been delving into mortgage information prior to seeking advice as a first time buyer in Newcastle, you might have come across this step with a few variations in names.

You might have encountered terms like ‘decision in principle’, ‘mortgage in principle’, or the abbreviations ‘DIP’ and ‘AIP’. Rest assured, these names are interchangeable and carry the same meaning.

The purpose behind securing a mortgage agreement in principle is to formalize the fact that you have successfully passed a preliminary credit assessment conducted by a lender.

This assessment can be based on either a hard credit search (which leaves a trace on your credit history) or a soft search (which doesn’t leave any mark).

It’s important to note that while this agreement doesn’t guarantee your mortgage approval, it’s an essential milestone on your journey to securing a mortgage.

An additional advantage is that possessing this document demonstrates to the property seller that you are genuinely committed, potentially opening the door for negotiations on the property price.

Typically, your agreement in principle remains valid for a period of 30 to 90 days, and it can be easily renewed if it expires. Our team usually strives to generate an agreement for you within 24 hours of your initial consultation.

Fourth Step: Finding the Right Solicitor 

After obtaining your agreement in principle, the next step involves securing the services of a conveyancing solicitor, sometimes referred to simply as a conveyancer. This professional will assist you with the legal aspects of the homebuying process.

Conveyancing pertains to the legal transfer of property ownership between parties, whether you’re the buyer or the seller.

Your chosen conveyancing solicitor will manage various tasks, including handling contracts, providing legal guidance if needed, conducting local authority searches, managing land registry matters, and facilitating the transfer of funds required for property payment.

Given the critical role they play, it’s imperative to select your conveyancing solicitor with care.

It’s worth noting that licensed conveyancers are specialists in property matters and may not handle intricate legal issues, while more general solicitors offer a broader range of legal services and might appear relatively more expensive.

Although we don’t offer these services in-house, we maintain a list of trusted firms that your dedicated mortgage advisor in Newcastle can recommend to you.

Fifth Step: Making an Offer on a Property 

Having consulted a mortgage broker in Newcastle, successfully undergone the mortgage affordability assessment, secured an agreement in principle, and enlisted the services of a conveyancing solicitor for the legal aspects, you’re now halfway through the process.

The next step is to submit an offer for the property you intend to purchase. As previously mentioned, armed with an agreement in principle, you’ll be in a favourable position for price negotiations.

While you should avoid making an excessively low offer that might offend the seller, don’t hesitate to propose a lower price that reflects your interests.

With an AIP in hand, the seller is more likely to consider your offer over someone who is willing to meet the asking price but lacks the same level of preparation.

In the event that the seller declines your offer, it’s not the end of the road. This presents an opportunity to explore a more reasonable offer that suits both parties or to consider other property options.

Upon acceptance of your offer, your next step is to reconnect with your mortgage advisor in Newcastle, marking the commencement of the final phase in your mortgage journey.

Sixth Step: Submit Your Documents 

Now let’s turn our focus back to the mortgage process, specifically the vital step of providing the necessary documentation. Given the substantial financial commitment involved, mortgage lenders exercise caution and require thorough verification before extending a loan.

To establish your eligibility, you’ll be asked to furnish a range of documents that verify your identity, income, residence, and financial responsibility. In cases of joint mortgages, both parties will need to provide these documents.

The documentation you’ll need to provide encompasses: proof of identification, verification of your address, your most recent three months’ payslips and latest P60 (if employed), evidence of earnings and Tax Year Overviews for the past three years (for self-employed individuals in Newcastle), confirmation of any additional income like state benefits or maintenance, substantiation of your deposit, and your bank statements for the last 90 days.

Seventh Step: We’ll Progress Your Mortgage Application 

With your mortgage agreement in principle secured and your offer on a property accepted, the next step is to move forward with submitting your complete mortgage application.

Having meticulously reviewed and prepared all the necessary documents, your dedicated mortgage advisor in Newcastle, along with their team of skilled mortgage administrators, is ready to compile and send off the application to the lender.

This involves sending all the collected supporting documentation, and then it’s a waiting game for the lender’s response, indicating whether the application has been approved or declined.

While there’s no fixed timeframe, our proficient mortgage administration team can actively follow up with the lender to expedite the process for you.

Eighth Step: Property Valuation / Survey 

In the interim between submitting your mortgage application and receiving an offer, the lender typically arranges a valuation survey of the property. Accredited firms, chosen by the lender based on their trustworthiness, usually conduct these surveys.

The aim of this survey is to ascertain the property’s true value in relation to the agreed purchase price. If you’ve agreed to pay more than its market value, the lender might hesitate to accept, since they could face financial loss in case of payment defaults, unable to recover the full loan amount.

This scenario is commonly referred to as a ‘Down Valuation’. Different types of property surveys are available, varying in complexity and cost. Some assess solely the property’s value, while others provide insights into structural issues and potential repairs needed in the future.

Your mortgage advisor in Newcastle can guide you in choosing the most suitable survey for your situation.

Ninth Step: Receiving Your Mortgage Offer 

The long-awaited moment arrives when your mortgage lender completes their assessment of your case and the supporting documentation, resulting in the issuance of your mortgage offer.

At this juncture, our friendly team of mortgage advisors and administrators in Newcastle, who have supported you throughout the process, will review the offer to ensure its accuracy and alignment with your needs.

Once the mortgage offer is in your hands, your conveyancing solicitor takes over to navigate the final steps toward property ownership.

Tenth Step: Completing The Process 

Congratulations! From being a first-time buyer in Newcastle, you’ve successfully transitioned into a first-time homeowner. With the majority of stress now behind you, we hope you’re excited and prepared to embark on this new chapter in your new home.

Now, it’s simply a matter of collecting the keys and making the move. We trust you found value in interacting with our team and receiving swift and amiable mortgage advice in Newcastle.

If you opted for a fixed-rate mortgage, as your term approaches its end, we’ll be there to assist you again, ensuring a smooth transition with your remortgage in Newcastle!

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UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.

We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

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