If you are a first time buyer in Newcastle, it is likely that you will have a whole load of questions on your mind regarding the mortgage process and how each step works. If you have managed to get your head around the first few stages, you will now start wondering about the final stages such as mortgage approval.
As a mortgage broker in Newcastle, we get frequently get first time buyers asking questions like “what is a mortgage approval” and “how long does a mortgage approval take?”; these types of questions involve an important part of the mortgage process and you will need to know exactly what a mortgage approval is. Within this article, we are going to cover mortgage approvals and how long you should expect to get one once submitting your formal mortgage application.
Here, we are going to discuss how the process works and how you would reach a mortgage approval in Newcastle.
The first step of your mortgage process would be to get in touch and book a free mortgage appointment with a mortgage advisor in Newcastle. Once you have a date and time for your free appointment, you are ready to get the ball rolling with your mortgage journey!
During your mortgage appointment, your mortgage advisor in Newcastle will take some information from you to discuss your current mortgage situation and what you are trying to achieve. They will also ask for some personal and financial information to support your income, affordability etc.
Using the details that you have provided, your advisor will be able to go and find the perfect mortgage product for you. They will look for a competitive mortgage product that matches your personal and financial circumstances.
We have a variety of lenders on panel that we are able to search through in order to try and find the best deal for you. We will search through 1000s of mortgage products on your behalf before selecting a product.
Once your mortgage advisor in Newcastle finds you a suitable product, they will feed back and present their recommendation. This deal will be presented in a mortgage illustration, which will outline the whole product. Your advisor will go into the details of the product and cover aspects such as monthly payments, interest rates, how long your term is, etc.
You will need a mortgage agreement in principle (AIP) to be able to make any offers on Newcastle properties. As a mortgage broker in Newcastle, we will be able to arrange an AIP for you completely free of charge so that you are in the best position possible when it comes to making an offer on a property.
An agreement in principle just shows that the lender is willing to let you borrow for them based on the personal and financial information that you provided to your mortgage advisor. You will need to provide supporting documents, such as bank statements and source of deposit, once you advance with your mortgage product.
No, an AIP does not guarantee a mortgage; it only helps you through the first few steps of the mortgage process. They roughly last between 30-90 days, therefore, you may need to renew them if you get one prior to looking at houses. This is no issue, as your mortgage broker in Newcastle, we can renew this within 24 hours of it expiring, just get in touch with your mortgage advisor for them to arrange this!
So, you have found a property and have used your AIP to make an offer on it. You also want to continue with us and take the mortgage product that we have offered you. Now, it is time to supply some evidential documents and submit your mortgage application to the lender!
If you do not want to continue with us, unfortunately, we will not be able to offer you the recommendation your advisor initially presented you with.
Once your application has been sent off, the lender will start to carry out checks on your file and the documentation that you have supplied.
They will thoroughly check your bank statements, monthly outgoings, current financial commitments, etc., to be adamant that you can afford the mortgage product that you are looking to take out. They will also need your ID and current address to make sure that you are, who you say you are.
If you were given a gifted deposit, they will also need to check where it can come from and complete an audit trail to support this.
A mortgage valuation survey will be carried out on the property that you are looking to buy in order to confirm the house is worth what you are paying for it. If you need to, our team will recommend any additional surveys you should have carried out.
If the price of the property is not worth what you are paying for it, the lender may lower the mortgage lending amount they are willing to give to you. In their eyes, they will be lending more than they need to. You have two main choices, you can either try and negotiate with the seller to lower the value of the home, or you can make up the difference with your own money or through a gifted deposit.
After their checks are complete and everything looks good to go, the lender will let our team know that your application has been approved and successful. Your first time buyer mortgage advisor in Newcastle will be straight in touch to let you know the great news!
From here, it’s off to your solicitor for the exchanging of contracts and the rest of the legal side of things. Now the last step; pick up your keys to your new home!
This is the usual process for a standard mortgage case, although, in some different and complex situations, the steps may differ.
You can get started on your process today! Get in touch by using our free appointment booking system. Tap the enquire online button to get started.
We can’t wait to hear from you soon!
Unsecured credit is a topic that should not be taken lightly. We regularly speak with customers who are in dire need of specialist mortgage advice in Newcastle. Having things like missed payments, low credit scores, CCJ’s, and defaults, will have an impact on the maximum amount you can borrow for a mortgage.
If you have too many missed payments on something like a mobile phone contract, you may find yourself with a default attached to your credit file. If you are looking for a mortgage in the future, this can cause you trouble because it shows that you may be unreliable with payments.
That said, missing a couple of payments or defaults is not the end of the world. While talking to a specialist mortgage advisor in Newcastle can help navigate the mortgage process, there may find some suitable choices for you.
If you have a lower deposit, your chances of being declined are more than likely. If you have a suitable size deposit though, even if you have bad credit, a mortgage may still be an option for you, but you could face high-interest rates.
A specialist mortgage lender wants to know when and why your default was registered against you. The further away it is and depending on whether there is a good enough reason, the more likely you are to achieve mortgage success.
People do make mistakes and if it is a genuine, honest mistake that your default was issued, the mortgage lender may be a little more sympathetic during your application.
We have compiled a list of frequently asked questions and answers in addition to bad credit mortgages.
If your questions or situation cannot be found below, feel free to book your free mortgage appointment and we will see how we can help. Our team can provide great mortgage advice in Newcastle and have a lot of experience in dealing with complex mortgage situations and may have met something similar before.
No matter what type of credit problems you have had in the past, your mortgage advisor in Newcastle will need to see an up-to-date copy of your credit report, which you can typically obtain online for free.
You must get your credit report before applying for a mortgage, especially if you have a poor credit history. Multiple failed credit searches can affect your credit rating and potentially prevent you from getting a mortgage altogether.
The answer to this question depends on your individual circumstances. We find that many clients can be quite confused by their credit score and need help understanding why it may be a problem.
To some customers, their credit score may not look the best, but in their eyes, they might have a good enough deposit to lower the rate and a consistent income. Even so, because of the risk, a mortgage lender may not like them to borrow anything at all.
The mortgage lender must have absolute certainty that you can keep up with your mortgage payments without the possibility of falling into arrears. If you do fall into arrears, the mortgage lender may need to repossess your home. Contrary to widespread belief, they will want to avoid this if they can.
While it may sound challenging, there are still options for bad credit mortgages, though we tend to find they come with higher rates. At this point, the most beneficial step is to book an appointment with an experienced mortgage broker in Newcastle.
In many situations, you may struggle to keep afloat financially for reasons you cannot control. This can leave you unable to make mortgage payments you had no trouble paying.
Unfortunately, such circumstances happen. Even if it could only be a momentary blip, you can repay quickly enough, a missed payment may still appear on your record.
No matter what credit problems you face, you may face a challenge when it is time to remortgage, buy your first home, or move home.
Providing nothing but open and honest, specialist mortgage advice in Newcastle, we have had a lot of experience in helping customers who were previously tied to a mortgage and have since found themselves with a bad credit history.
If you are in a comparable situation, it will be beneficial to talk to a mortgage broker in Newcastle on your way to finding future mortgage success.
Customers may face all kinds of bad credit issues, all of which can cause great grief during the mortgage process. Some of these issues include but are not limited to;
Although none of these are particularly great circumstances, it is not necessarily the end of the road for you. With higher mortgage rates, you may have a longer, more challenging process, but there are specialist mortgage lenders who can help.
You need to focus on improving your credit score to increase your chances of mortgage success and access to better interest rates. We have a useful article that we have written on How to Improve Your Credit Score in Newcastle, which will hopefully help you to obtain a mortgage in the future.
If you are need of some expert mortgage advice in Newcastle regarding bad credit mortgages, book your free mortgage appointment online and one of our mortgage advisors in Newcastle will see how they can help.
We have over 20 years of mortgage knowledge and experience on our side, working hard to make sure that we have a definite plan of action regarding you credit score, ahead of your mortgage process. It’s our hope that the eventual outcome has you with your own mortgage.
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.
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.
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.
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:
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.
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.
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.
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.
Getting an up-to-date version of your credit report is something that we always recommend doing before starting your mortgage process. As your Mortgage Broker in Newcastle, we will need an up-to-date credit report from you to get an idea of your current financial situation. This will help them pick out the perfect mortgage product for you!
We also suggest using Checkmyfile to obtain your credit report. Checkmyfile cross reference your data between four credit agencies to give you an in-depth detail into your profile.
Sending your Credit Report by email may slightly differ depending on what device you are using e.g. iPhone, Android, Desktop PC.
Once we’ve obtained your credit report, we can get your mortgage process running. First of all, this will allow us to look further into your mortgage situation and try to find you a deal that matches your personal and financial situation.
Your dedicated Mortgage Advisor in Newcastle will be able to search through 1000s of mortgage deals. On our panel, we have access to both high street and specialist products. Once we find the perfect product, it’s up to you whether you want to continue with us and the deal.
If you are a First Time Buyer in Newcastle or are looking at Moving Home in Newcastle, we would strongly recommend obtaining your credit report as early on in the process as possible. Head over to Checkmyfile today and get your mortgage process started!
Especially if you are new to the scene, the mortgage process can sometimes seem a little complicated. There are no loopholes or quick ways to do things! This is because it needs to be done right and in order.
When starting the mortgage process as a first time buyer, home mover or landlord, you will undergo your free mortgage appointment with us where we will talk you through your mortgage options and gather some information from you regarding your personal and financial circumstances. This is standard procedure for a Mortgage Broker in Newcastle, like us. On the other hand, what would happen if you were not buying a property and you wanted to remortgage or simply check up and see whether you are on the best deal? How would the process differ for an applicant looking to purchase a property?
The difference is that this process starts with a mortgage review and not a mortgage appointment. And, in a lot of cases, those which have taken a mortgage review have ended up saving a lot of money further down the line… Sometimes hundreds!
Primarily, you will hear ‘mortgage review’ over names such as ‘mortgage check-up’; in reality, they all mean the exact same thing. A mortgage review is simply a look at your current deal to make sure that you’re on the best product available to you. This comparison can sometimes save you lots of money in the long run, especially if interest rates are low and you are able to switch products.
Typically, your mortgage review will be carried out by your Mortgage Advisor in Newcastle, although, some people like to do it by themselves and compare products online. As a Mortgage Broker in Newcastle, we would still recommend speaking with an advisor so that you can get an accurate representation and make sure that you are looking at the right products that match your personal and financial situation.
A mortgage review works similarly to your typical remortgage appointments. Your credit will be examined, your income and affordability will be assessed, and your personal and financial situation will be considered. Don’t forget your current mortgage deal too.
With all of this information, your Remortgage Advisor in Newcastle will be able to compare your deal with others on the market that are currently on offer. Some products will not be suited to your circumstances. And, if there is not a suitable product, your advisor will be transparent and tell you so.
Getting your mortgage reviewed every 6 months does no harm. Some people review their mortgage within even shorter timeframes. There is nothing wrong with this either, in fact, there are tools out there that monitor your mortgage in live time, giving you 24/7 updates to whether you are on the best deal available. This is exactly what our free mortgage club offers!
If you are within the last year of your fixed mortgage term, we would always recommend checking every couple/few months so that if a deal that you want becomes available, you are able to action it right away.
As a Mortgage Broker in Newcastle, we advise our customers to set up a mortgage review reminder so that they are always on top of their mortgage.
In some cases, it will be possible to take out the deal that you have found following your mortgage review. If you want to pursue the deal that you have found, you may need to pay an early repayment charge (ERC), although, this does depend on how long you have left on your fixed term.
For example, if your deal is coming to its end and you find a competitive deal following a mortgage review, as long as that deal is still available when your term ends, you could switch onto that deal and avoid an ERC. In another example, if you found a deal following a mortgage review but you are 8 months from your fixed term ending, if you switch deals, you will face an ERC.
When signing on for a mortgage, you are stating that you will meet set payments until the end of your fixed term, therefore, if you decide to take out another deal mid-term, you are breaking this agreement and will receive a charge (ERC).
Sometimes this can be worthwhile if the rates are competitive and it will save you lots of money further down the line.
Some people will save more than others when taking a mortgage review and switching deals. Potentially, some people could save hundreds! It depends on how far you are into your deal, current products in the market, your personal and financial situation etc.
If you were to take a review at a time when interest rates are low, you could potentially find lots of competitive deals out there.
If you are looking to switch over to a new mortgage product online, we would still recommend consulting with a professional first. Online switching could potentially put you on the wrong deal and you would have to face numerous charges to revert back to another deal more suited to your circumstances.
If you choose to get Remortgage Advice in Newcastle, you will have a point of contact all the way through the journey. We have helping clients find competitive mortgage deals for over 20 years now too, and you could be next!
To contact us, simply give us a call or book a free appointment online. This way, you will be in safe hands when switching your mortgage deal and you’ll know that you are on the best deal for you and your circumstances.
Any homeowner in Newcastle wouldn’t dream that they’ll miss a mortgage payment, but something like an illness or family emergency can occur, causing a financial struggle, especially for those with low-income and minimal savings.
It can be more challenging for those who don’t have any insurance policies in place that could cover their mortgage payments should any unforeseen circumstances occur.
Here, we felt it was best to answer the following questions: what should you do if you are in this situation and think you will miss a mortgage payment, and how can you improve your credit score afterwards?
If you think or know you’re going to miss an upcoming payment on your mortgage, you must inform your lender immediately. Once you have missed a payment, this will instantly show on your credit record, which will heavily impact your ability to remortgage when your old mortgage is coming to its end.
Depending on your lender’s criteria and circumstances, there may be an alternative that can help you avoid missing a payment. Your lender will offer their support and guidance to borrowers going through a difficult time.
There is nothing wrong with feeling embarrassed. Chances are you are not alone – other people will be in a similar or worse situation. You won’t be the last or the first to contact their lender about being in this position.
If you miss one payment on your mortgage then this isn’t the end of the world, although this may have a negative impact on your credit rating, depending on how quickly this is resolved and how well you communicate with your lender.
Generally, if you fail to pay your mortgage, your lender will inform the credit referencing agencies, and this will have a negative impact on your credit score. However, as mentioned above, lenders will usually have a grace period after the payment due date. This will vary from lender to lender.
Your lender will usually try to work with you and help. In some instances they will set up a payment plan, a short term solution that can get you back on track with your payments.
Falling behind on multiple mortgage payments can lead to defaulting on the loan agreement, meaning that your lender could take repossession action. Repossession and eviction is the last resort for any lender, they will usually negotiate with you and help make a repayment agreement. It is recommended to reach out to a Mortgage Advisor in Newcastle prior to taking any payment plans etc.
Our Specialist Mortgage Protection Advisors in Newcastle will give you the option and recommend taking out the relevant insurance to protect you and your family from financial burden during any unforeseen health issues.
Depending on which protection insurance you take out, these will help pay for your mortgage and bills in the event you are off work sick or critically ill.
If you need any additional support or guidance, please get in touch to speak to one of our Specialists Mortgage and Protection Advisors in Newcastle and find out which insurance will benefit you.
Following the discontinued Help to Buy scheme in 2019, home buyers began exploring other schemes that could help them get onto the property ladder. One of these was the Lifetime ISA.
Introduced in 2017, the Lifetime ISA gives First Time Buyers an easy approach to raising money to buy a property. Alternatively, it can also be used to save for later in life. We are a Mortgage Broker in Newcastle, therefore, this article will focus on how you the Lifetime ISA can be used to save for a property. It will also show the scheme requirements and how it can benefit you as a First Time Buyer in Newcastle.
Our YouTube channel features an in-depth explanation of the Lifetime ISA. Feel free to watch the video below or visit the channel and check out more of our free educational content!
The Lifetime ISA is only available to First Time Buyers. This is because you are expected to have the funds available when it comes to selling and moving home. The government specifically wanted to help First Time Buyers get onto the property ladder.
The way the scheme works is that you have an interest-free independent savings account which you build up and put money into (just like a typical savings account). There are no limitations to how much can you deposit into your ISA, there is only a £4,000 yearly cap. Whatever you manage to save in the year will also be topped up by the government by 25% of your savings.
The savings are worked out every tax year, therefore, you will receive a 25% bonus every year around April. If you manage to save £4,000 in the tax year, you will receive £1,000 in your Lifetime ISA account. This makes your yearly savings sum up to £5,000.
You must be aware that once your money has been deposited into your Lifetime ISA, it cannot be withdrawn without a 25% charge. If you want to take out £1,000, you will only receive £750.
When you are using the Lifetime ISA to fund your first property purchase, do not withdraw from your ISA to use the funds as a deposit. When you are starting your mortgage process, simply tell your Mortgage Advisor in Newcastle that you have a Lifetime ISA and they will explain how this part of the process works.
The Lifetime ISA is still available to those currently renting. This does not affect your application as you have never owned a property before. We recommend building up your Lifetime ISA for a couple of years prior to buying a property. This way you are able to benefit from a few yearly government bonuses.
If you are wanting to use this scheme to save for later in life, check out the government’s official webpage: https://www.gov.uk/lifetime-isa.
There will be some requirements that you will have to pass before being able to open your Lifetime ISA. Here is what you will need to look out for:
If you fit into the scheme’s criteria or are unsure whether you qualify, feel free to get in touch. As a Mortgage Broker in Newcastle, it is our job to help you through the mortgage process from the very beginning, even at this stage. We say that the earlier that you get started the better!
The Lifetime ISA is a great way for First Time Buyers in Newcastle to get onto the property ladder. With time and investment, the ISA could boost your deposit which could open you up to a higher loan to value mortgage deals (also dependent on a good credit score and affordability).
If already have a Lifetime ISA in place, now is a great time to get in touch and speak to one of our Mortgage Advisors in Newcastle. We have helped many First Time Buyers with Lifetime ISAs before, and you could be next.
Interest-free, tax-free and simple! What more could you want as a First Time Buyer looking to save for your first housing deposit?
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:
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.
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.
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.
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.
“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;
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.
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?
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.
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.