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.
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!
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?
“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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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?
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.
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.
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.
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.
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.
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?
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.
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.
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.
We tend to find we receive loads of enquiries regarding the many different types of mortgage available one of them being cashback mortgages. We aim to answer the most frequent questions about cashback mortgages. These include; will it benefit me in the long term or short term, and how does it compare to my other mortgage options?
With the sheer amount of requests, Mortgage Advisor in Newcastle and managing director Malcolm ‘the Moneyman’ decided to make a video regarding cashback mortgages.
Cashback mortgages are pretty self-explanatory. After paying off your mortgage or after finishing your mortgage term, you will get some cash back.
The amount you get back is a percentage of what you have borrowed like 1 or 2%. Some lenders like to have a fixed price in the contract. Even if you have a long mortgage term, this is a fixed amount, and it will not increase over time.
Cashback mortgages come with both advantages and disadvantages. Such as, some Cashback Mortgages might come with a free property valuation or some fringe benefits.
Cashback Mortgages can be very attractive to customers that are borrowing lower mortgages. You will get some money back plus some benefits on the side. If you are offered a reasonable percentage on your Cashback Mortgage, you should consider taking it up as it may be worth it in the long term.
The only real disadvantage to a cashback mortgage is that they sometimes come with high-interest rates.
Compared to other mortgage options available, Cashback Mortgages are not the most popular. However, they are still worth considering. We still see customers at Newcastlemoneyman looking for Cashback Mortgages, and they are a great backup option if you don’t qualify for your first choices.
If you want a more in-depth viewpoint, be sure to book your free mortgage appointment online or give us a call To speak with a Specialist Mortgage Advisor in Newcastle. Our team will be more than happy to explain the benefits of taking out a Cashback Mortgage and why they could be a suitable option for you.
Purchasing a property will be one of the biggest financial commitments of your life, therefore you must know exactly what you’re expecting to pay for. All the additional costs can add up to a large lump sum and if you aren’t careful, you might be overpaying in some areas than you orginally thought.
In this article, we break down and look into the costs of buying a property in Newcastle, as well as the costs involved with property investment.
This article will be beneficial mostly to First Time Buyers in Newcastle as we have broken down each cost and given an estimated value to each. On the contrary, if you’re Moving Home in Newcastle, then this guide will act as a reminder of the cost involved so you can prepare accordingly.
Once you’ve had an offer accepted, your lender will carry out a valuation on the property, this assessment will consider multiple factors such as structural damage, property age, location. This is to make sure that your offer matches the ‘actual’ value of the property.
Valuations can vary some business models offer a free valuation whereas others may charge several hundred pounds. In some cases, a free valuation may be incorporated into another cost or a freebie for taking out a specific product.
They are also various types of valuations, some cost more than others depending on which one you need. For example, if you need a full building survey as you’re purchasing an older property, you may have to pay a lot more than someone who’s bought a new build.
You might be expecting a lender to charge you for taking out a mortgage with them. This is common with products with the cheapest rates. Not every mortgage comes with an arrangement fee, but depending on the product and lender you could be charged up to £2,000, although the average is about £1,000.
Some applicants can choose between paying the arrangement fee upfront or adding them to the mortgage balance. If you choose to add them to your mortgage, you may incur further interest charges. As a Specialist Mortgage Broker in Newcastle, we can search 1000’s of mortgage products to find you the most suitable deal for your circumstances with minimal additional costs.
You’ll need a solicitor to arrange the legal side of the mortgage process. The fees quoted by various firms may differ significantly. An estimated amount for a low-value property could set you back £600. You will provide the solicitor with the new property’s address, whether it’s leasehold or freehold. You’ll also need to provide the purchase price to obtain quotations. Additionally, make sure that:
Only when you decide to sell your property in Newcastle you’ll be faced with estate agent fees. Alongside property prices these fees are rising, you may expect to be paying between 1-2% of the property price.
If you are looking to sell your property, the lowest amount is usually £500. If you are looking for a more personalised service you may be expected to pay more.
Stamp duty is a tax that the solicitor will collect upon the competition of the property purchase, in addition to your solicitor’s fees and disbursements. More information regarding stamp duty can be found here.
A Mortgage Broker in Newcastle will usually charge a fee for their service. These fees will be discussed upfront so that you know what you’re paying for and how much your case is going to cost. We recommend trying to use a trusted pen and honest Mortgage Broker in Newcastle that charges upon completion only. Avoid any application fees where your money will be at risk.
Book your free appointment online to speak to a Mortgage Advisor in Newcastle today
The cost of moving all of your household items to another property can vary depending on the service you want, how far you’re moving and how much stuff you have.
If you are happy to hire a van and transport your belongings to your new house by yourself, the service will cost significantly less. Whereas if you prefer to pay for the full service and get someone to pick up their belongings and help them move. Some local services may charge several hundred depending on circumstances.