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Lifetime ISA Explained in Newcastle

Mortgage Advice in Newcastle

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!

What is the Lifetime ISA?

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You must be aware that once your money has been deposited into your Lifetime ISA, it cannot be withdrawn without a 25% charge.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.

How can I spend my savings?

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.

Are there any restrictions?

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:

  • You need to be a First Time Buyer in Newcastle, buying your first home
  • You can only save a maximum of £4,000 per year
  • The property that you are buying must cost £450,000 or less
  • You must be under the scheme for a least a year before you can make a purchase
  • You must be over the age of 18 but under 40


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!

Mortgage Advice in Newcastle

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?

How Much Can I Borrow For A Mortgage in Newcastle?

How Much Can I Borrow For A Mortgage | MoneymanTV

Experienced Mortgage Advisors in Newcastle

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

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

How Much Can I Borrow?

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

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

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

Nowadays Approach

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

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

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

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

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

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

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

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

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

Historic Rules

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

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

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

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

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

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

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

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

Fast & Friendly Mortgage Advice

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

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

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

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

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

Is Gazumping illegal?

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

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

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

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

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

How does Gazumping happen?

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

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

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

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

Buyers Market vs Sellers Market

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

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

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

Ways to Avoid Being Gazumped

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

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

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

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

Other Helpful Gazumping Tips

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

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

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

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

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

How a Mortgage Broker in Newcastle Can Help

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

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

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

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

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

First-Time Buyer Mortgage Advice in Newcastle

10 Factors to Help You Decide Where to Live in Newcastle

Home Buyer Mortgage Advice in Newcastle

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

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

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

1. Busy city or relaxing countryside? 

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

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

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

2. Transport Links 

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

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

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

3. Schools & Education 

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

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

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

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

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

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

5. Friends and Family 

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

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

6. Is the property good value for money? 

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

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

7. What is the community like? 

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

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

8. Career Changes 

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

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

9. Property Type 

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

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

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

10. Local Developments 

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

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

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

Moving Home Mortgage Advice in Newcastle

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

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

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

What is a Cashback Mortgage?

Cashback Mortgage Advice in Newcastle

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

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

What is a Cashback Mortgage? | MoneymanTV

What is a Cashback Mortgage?

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

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

Will a Cashback Mortgage benefit me?

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

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

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

Different Types of Mortgages in Newcastle

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

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

The Costs of Buying a Home in Newcastle

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.

Mortgage Advice in Newcastle for First Time Buyers

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.

Valuation Fees

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.

Mortgage Arrangement Fees

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.

Solicitor’s Fees

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

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

Estate Agency Fees

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

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

Stamp Duty

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

Broker fees

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

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

Removal Fees

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

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

Moving Home Mortgage Advice in Newcastle

The Pros & Cons Of Using A Mortgage Broker in Newcastle

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

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

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

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

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

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

Cost-Effectiveness

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

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

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

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

Local Bank Branch Relationships

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

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

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

Exclusive Mortgage Products

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

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

That’s once again, where it is beneficial taking out mortgage advice in Newcastle. A dedicated mortgage advisor will be able to run through your case, and match you up to a suitable deal with one of the many lenders they have on panel, rather than from just one source.

It’s also worth noting on the topic of exclusivity, that you may also find deals with a mortgage broker in Newcastle, that you can’t find anywhere else. Whether you’re a first-time buyer, looking to remortgage in Newcastle or have a more specialist case, there will be more options for you when going with a mortgage broker.

Changes to Regulation & Consumer Protection

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

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

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

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

Booking an Appointment with a Mortgage Advisor in Newcastle

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

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

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

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

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

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

Handling of Complex Scenarios

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

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

In the past, mortgage lenders could easily compete with one another by offering deals that were better than the other. Times have changed since then, and now the main difference in which deal you go with, is whether or not you match the criteria.

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

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

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

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

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

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

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

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

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

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

Buying Your Home as a Sitting Tenant in Newcastle

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Benefits For The Landlord

Maintaining Steady Rent Income

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

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

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

Decreased Refurbishment Costs

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

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

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

Benefits For The Tenant

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

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

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

Freedom Of Choice

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

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

No Stress Of Moving

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

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

First-Time Buyer Mortgage Advice in Newcastle

Mortgage Hurdles you Could Face in Newcastle

Mortgage Hurdles and Specialist Advice

Mortgage hurdles are more common than you think. As a Mortgage Broker in Newcastle, we frequently see applicants facing all different kinds of mortgage hurdles. Some of them will be more common than others, therefore we can advise how to solve these quickly, whereas others can be more complicated and require an in-depth look to solve the problem.

Our team loves a challenge. We’re offering you a helping hand to get you over your mortgage hurdles in Newcastle. Your mortgage hurdles may not be the same as someone else’s, however, we do regularly see some of the situations:

Childcare costs

From 20+ years of industry experience, we can say that it’s extremely rare to be declined a mortgage due to childcare costs. Although expensive, lenders will usually give you some leeway when it comes to childcare costs and mortgage affordability. You have to remember that they have a duty to make sure that you can afford a mortgage and raise a child; to combat this, they may offer you a lower mortgage amount.

Someone in the same financial situation as you but does not have children may be offered a higher mortgage amount. Don’t see this is as unfair; lenders should still lend to you, it’s likely that they’re just factoring in child benefits and state benefits into account.

Mortgages following a divorce or a separation

Unfortunately, one of the most common mortgage hurdles that we come across in Newcastle, is a mortgage following a divorce or separation. In most cases, finances are the first thing that you need to sort out following a divorce or separation.

There are three questions we’re frequently asked about this mortgage hurdle:

  • How do I remove my ex’s name from my mortgage?
  • Can I remove my name from my ex’s mortgage?
  • Can I have more than one mortgage?

The answer to all of these questions is yes, you can do all of these, however, you may need assistance from a mortgage expert to do so. These subject areas are very specialist and it may take a professional to help you get by them.

We know that these situations are hard and you want it to be over as quickly as possible, however, it’s also important that we get it right and you get over the hurdles with no repercussions and a new mortgage deal that you’re happy with.

Starting a new job & getting a mortgage in Newcastle?

It’s not unusual for someone to want to take out a mortgage upon starting a new job. The deposit is not the problem. Usually, the applicant has either built up savings or are moving home in Newcastle and will have the funds from the sale to put towards the deposit. It’s the recurring monthly payments that the lender will be wary about.

If you are due to start a new job soon, you may be able to get a mortgage pre-hand if you have already signed a contract and had a job offer. Typically, lenders are okay with probationary periods, although, they will be cautious.

Gaps in employment can often be a worry. You want to show your lender that you’re reliable and will be able to meet your monthly payments. Regularly being unemployed with no income is a warning sign for them.

Proving your deposit

Proving your mortgage deposit can sometimes be the hardest yet simplest part of the process. This is mostly down to strict anti-money laundering measures. You will always be asked to evidence where you got your deposit from, it’s an essential part of your mortgage process.

Depositing large amounts of cash into your bank will be questioned by your lender. If you cannot prove how you received this money, your application may be rejected.

If your deposit or a portion of it has been gifted to you, it’s advised that the money is kept inside the gifter’s account. This allows your lender to easily monitor the money see exactly where the money is coming from.

Specialist Mortgage Broker in Newcastle

Buying a Property With a Partner or Friend in Newcastle?

Mortgage Advice in Newcastle | Purchasing with a friend/partner

In some cases, a practical way to get on the property ladder as a first time buyer in Newcastle or home mover in Newcastle could be buying a home with a friend or partner. One benefit is that the deposit would be raised quicker and may increase your deposit amount more than if it was from a single income.

As well as this, the costs will be shared, because of there being two incomes. Despite this benefit, it’s key to know that if one defaults, then there is the risk of the other having to be responsible for the full mortgage.

Should I Buy A House With A Friend? | MoneymanTV

The facts

How many people can jointly own a property?

The maximum amount of people that can jointly co-own a property is four. When you jointly co-own a property, you have a legal right to stay in your home unless a court rules otherwise. In the circumstance where one of the parties would like to sell or take out extra borrowing against the property, this is a matter all parties have to consent to unless a court state otherwise.

Joint tenancy or tenancy in common – what’s the difference?

Civil partnerships or married couples usually prefer joint tenancies. In the unfortunate event that one of the parties passes away, the property will be in possession of the other owner on the mortgage. The law sees joint tenants as one unit, which means you can’t remortgage or sell the property without the agreement of the other owner. 

Tenants in common are a more favourable choice for relatives or friends who are buying together. You may jointly own the property, but you do not have to own equal shares. Therefore, you can act individually. This means that you have the right to sell or give away your share of the property. There is a way you can mortgage your share of the property, but it would be difficult to find a lender that will lend in these circumstances. 

Joint mortgages & removing names

What happens if you have a joint mortgage, but the other parties stop meeting the mortgage payments?

All borrowers are jointly and severally liable, which is something a mortgage lender will highlight to you. If one of you stops paying your share of the mortgage, then the other(s) will make up the shortfall and pay the full amount.

How do I remove my name from my ex-partner’s mortgage?

In the case where a divorce/separation might occur, it’s crucial to understand that all parties are still responsible for any joint financial commitments. It applies even if a person leaves the family home, and this is also the case when the two parties come to an agreement where one person will make all the payments.

It’s best to speak to a specialist mortgage advisor in Newcastle to understand what your options might be. To look into this further, check out our article, “divorce & separation mortgage advice.”

If the consideration of buying a new property in the future should occur, the mortgage payment on the old property would be taken into consideration. In this circumstance, a person must seek out Mortgage Advice in Newcastle. It does depend on how generous the lender is as to how much they will lend, however, our mortgage broker in Newcastle will take this into account when recommending the most appropriate lender to apply for a mortgage agreement in principle. 

Mortgage Broker in Newcastle

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

Authorised and Regulated by the Financial Conduct Authority.
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The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
Should you have cause to complain and you are not satisfied with our response to your complaint, you may be able to refer it
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www.financial-ombudsman.org.uk

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