Can You Get a Mortgage With Bad Credit in Newcastle?
Bad Credit Mortgage Advice in Newcastle
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.
Bad Credit Mortgage FAQs
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.
What will my mortgage advisor in Newcastle need to see?
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.
I have a good income but bad credit. Can I still get a mortgage?
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.
I’ve had mortgage problems before. Will that stop me from getting a mortgage?
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.
What other types of adverse obstacles are customers faced?
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;
- Missed Mortgage Payments
- Credit Card or Loan Defaults
- County Court Judgement (CCJ’s)
- Bankruptcy
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.
Get in Touch for Bad Credit Mortgage Advice in Newcastle
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.
What is a Mortgage Illustration?
Mortgage Illustration Newcastle
What is included in a mortgage illustration?
Main details
Costs of taking out a product
Monthly repayments
Legal fees
Valuation fees
Do I have to agree to your mortgage recommendation?
Does a mortgage illustration guarantee me a mortgage?
Is a mortgage illustration the same as an agreement in principle?
Speak to a Mortgage Broker in Newcastle
Obtaining an Up-to-Date Credit Report in Newcastle
Credit report Mortgage Advice in Newcastle
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.
How to get your up-to-date credit report:
- When you head to Check My File, you will be offered a free 30-day trial. If you start this, you will be able to get a copy of your credit report. Once your 30-day free trial ends, it will cost £14.99 a month to continue using this service. Bear in mind that this can be cancelled at any time, even after your 30-day free trial.
- When you have logged in, filled in some details and can see your credit report, go to the bottom of the page where you will have the option to ‘Download Printable Version’. From this, you will then download a local copy of your credit report to the device you are using.
- Your downloadable PDF will be password protected by your 6-figure date of birth ‘DDMMYY’.
- When you have downloaded this, feel free to send your credit report to enquiries@ukmoneyman.com, along with your date of birth.
What happens when I send my credit report to a Mortgage Broker in Newcastle?
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!
Main Reasons for People Moving Home in Newcastle
As an open & honest mortgage broker in Newcastle, we have come across an array of different reasons as to why someone may look to move home in Newcastle. We have also seen our fair share of similar reasons too.
Below we have compiled a comprehensive list of the main reasons why someone may wish to move home in Newcastle; perhaps you may find one similar to yours:
For More Living Space
This tends to be the most frequent we find crops up for home movers. Usually we will see first time buyers in Newcastle finding a smaller more convenient house to begin with, opting to move into a new home further down the line once their circumstances have changed.
It is also quite common amongst people who are considering starting a family of their own. Once you become a parent, that small house suddenly becomes much smaller. This can make it difficult to feel like you have your own space.
On the flip side to this, there are other alternative means of creating more living space. Some people may look at a remortgage in Newcastle to raise some capital as a way of funding any potential home developments, extensions or alterations.
Remortgage is a popular option for homeowners who aren’t quite keen on the idea of moving out, instead choosing to make an investment on their home. This allows for you to create the space you need without leaving your home.
Doing this may also add to the properties value which could be incredibly useful if you are ever looking to sell your home in the future.
A Change of Scenery
Sometimes people may just be looking to find a change of scenery. There is nothing wrong with that, as it is something quite common. We would argue that it is one of the largest factors outside of space, as to why people may want to move home.
As a mortgage broker in Newcastle, we often hear from prospective home movers in Newcastle that they had a low budget when they first bought their home, though now that has changed and they’d like to invest in a higher-end property in a different location.
It is very likely that those types of borrowers are on a much higher income than they were previously and are looking to find a home that is in a much more affluent area than the one that they are currently living in.
When you buy your first home, it is not likely that you would consider a choice of schools if you didn’t already have a family. That can change though once a family is formed, and so you may consider moving home to be closer to better education options.
To Be Closer to Family & Friends
We also find that many who are moving home in Newcastle will look to do so, as a way of living closer to family and friends. Once again, this is much more common with couples starting a family of their own.
If both parents are to be working full time, then it is more than likely that they will ask their own parents to help them out with childcare. Private nurseries are usually quite expensive and may not always be close by.
Moving home in Newcastle can be a tricky decision to make. If you perhaps don’t want to leave but need more space, maybe it’s time to speak to one of our remortgage advisors in Newcastle. They will talk you through your options for raising capital for home improvements.
Moving Home Mortgage Advice in Newcastle
For any customer who is looking at moving home in Newcastle, we believe you will benefit from taking out expert mortgage advice in Newcastle. Book your free mortgage appointment today and a dedicated mortgage advisor in Newcastle will be in touch.
They will be able to calculate your maximum borrowing capacity and give you a rough estimate on the costs you will be possibly looking at paying per month, once you have moved home.
Even if you are swaying more towards your options for a remortgage in Newcastle, get in touch today and benefit from a free remortgage review with one of our expert remortgage advisors in Newcastle.
10 Factors to Help You Decide Where to Live in Newcastle
Home Buyer Mortgage Advice in Newcastle
Whether you are local or not, one of the main factors when moving home in Newcastle is the location you have in mind and knowing the area.
Of course, you will have to think about more than just where you want to live, but what the area currently looks like, what nearby facilities are there and what do you want to look out for when looking for your dream property.
To help you get a better understanding of the sort of street you would like to live in, we have compiled a detailed list of the different types of factors home buyers need to look out for when finding their new property in Newcastle.
1. Busy city or relaxing countryside?
Make sure to come up with an idea of the type of area you would like to make your residence in, after all you are going to be living on this property for a very long time.
If you feel more comfortable surrounded by a thriving urban scene, city life is better suited for yourself. Whereas if you prefer the quiet life, living in the countryside might be more suitable for you.
Remember, you will find pros and cons everywhere. Give yourself plenty of time to think careful before you get your heart set on a location that could be based in an area that you might not enjoy.
2. Transport Links
The nearest transport links to and from your potential new home base are important factors to pay attention to, especially if you don’t drive.
If you don’t drive but want to go out and socialise with friends or family, or make your way to work, going shopping for essentials then you will need to know the available transport links.
If you drive your own vehicle, it’s worth making a note of how long will it take for you to reach different places? How much will fuel be? Are where are the closest fuel stations?
3. Schools & Education
For home buyers who have kids, you should take a look at the nearest schools that are close by. Looking at the league tables and Ofsted report can give you a good idea of what schools are like.
If you don’t have any children now, whether you are planning for the future or have no plans at all, it may be beneficial to at least look it up, just to future proof yourself.
4. Nearby Facilities – What You Need Vs What You Want
When you are planning to live in a particular area to cater for the facilities that you are after. We recommend writing a list and separating those that you want from those that are essential.
For example, if you really want to have a gym nearby but doing so could mean that you have to live in an area without the shops you need within a reachable distance.
You probably need the shops more for your general living, so that might be something to prioritise, whilst leaving the gym as an added bonus if you can make it work.
5. Friends and Family
The difference between where you might be living and where your family and friends currently live can have an impact on where you move to. Some prefer keeping family and friends close by.
Whereas others prefer to keep to themselves with their loved ones at a distance, prioritising peace and quiet over going out and socialising with people on a regular basis.
6. Is the property good value for money?
Everyone wants good value for money. Which is why determining this for your home will depend on the area that you’re looking to live in.
Sometimes, it may be a better option for you to look for a cheaper property to start out with, though this might mean compromising various features or nearby facilities that you would have preferred to have had.
7. What is the community like?
It’s the local community that makes the area what it is. Those who prefer a quiet life tend to keep to themselves. Others may prefer a thriving busy community.
Have a word with your estate agent and find out what the area is like. Community Facebook pages or locally run websites tend to be quite common these days, so they’re worth looking up to get a rough feel for the location.
8. Career Changes
Some home buyers may be moving because of a new job or career plan. Remember to review the distance between your new home and workplace.
If you’re going to be working in a home office and only visiting the office occasionally, would you be okay with living a bit further out? What is the space like within the property? Does your property have scope for a home office?
9. Property Type
There are a lot of different property types available in the market, with these properties can vary in the area you are looking.
Some prefer end-terrace properties with a garden to enjoy, whilst others prefer a modern flat or studio apartment.
Make sure you have a good look at all the options available to you. Look at the viewings to get a good idea of the type of property you would prefer to live in.
10. Local Developments
Any information regarding future improvements in the area is handy to know, especially if you’re looking to build a life within that home and stay there for quite a while.
Online research will be the best port of call when looking to find any future investments. It’s important to consider whether these will be a benefit or a detriment to your lifestyle.
If you prefer a quiet country life, you might find their dream scenario turned into a nightmare if a big new housing development is planned within close by.
Moving Home Mortgage Advice in Newcastle
When the time comes for making offers on property and getting yourself a mortgage, get yourself booked in for a free mortgage appointment. Our friendly Mortgage Advisors in Newcastle will be more than happy to help!
We work from early until late, all throughout the working week and weekend, subject to availability.
No matter if you need some assistance with a First Time Buyer Mortgage in Newcastle or are Moving Home in Newcastle, we can’t wait to hear from you and help you Start your mortgage journey.
The Costs of Buying a Home in Newcastle
It is known that buying a property can be one of the most significant financial commitments of your life which is why you must be aware of what you’re expecting to pay for. All the additional costs can accumulate to a large lump sum and if you aren’t careful, you could be overpaying in some areas than you initially thought.
Below we have provided a full breakdown and look into the costs of buying a property in Newcastle along with the costs involved with property investment.
Mortgage Advice in Newcastle for First Time Buyers
If you are a first time buyer in Newcastle and are looking for a simple breakdown of each cost and given estimated value to each. On the flip side, those who are looking to move home in Newcastle will benefit from this as it can be a great refresher to prepare accordingly.
Valuation Fees
When you’ve had an offer accepted, your lender will perform a valuation on the property, this assessment will determine multiple factors like structural damage, property age, location etc. By doing this, they can ensure that your offer matches the ‘actual’ value of the property.
Valuations can differ with some business models offering a free valuation whereas others may charge hundreds of pounds. Sometimes, a free valuation may be included in another cost or a freebie for taking out a certain product.
As well as this, there is a large variety of valuations, some being more expensive depending on which one you need. For instance, a full building survey will be required for those purchasing an older property and will be more expensive than someone who’s bought a new build.
Mortgage Arrangement Fees
In some situations, a lender may charge you for taking out a mortgage with them. This is usually the case with products with the cheapest rates. Not all mortgages come with an arrangement fee, however, this comes down to the product and lender you could be charged up to £2,000.
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.
Mortgage Hurdles you Could Face in Newcastle
Mortgage Hurdles and Specialist Advice
In the mortgage process, it can be common for hurdles to arise. Through our experience as a mortgage broker in Newcastle, we often see applicants encounter a variety of mortgage hurdles. Some of them are more well-known than others, meaning we can advise you on these quickly. On the other, there may be some that are more complex and will mean looking further into an option that will solve the problem.
Here at Newcastlemoneyman, we love a challenge! Our team are here to offer a helping hand to overcome these mortgage hurdles in Newcastle. As mentioned, there are a variety of mortgage hurdles out there, however, there are some that we encounter on a daily basis.
Childcare costs
In our 20-plus years in the mortgage world, we have found that being declined a mortgage because of childcare costs is a very rare occurrence. This expenditure may be expensive, but lenders will usually be flexible when it comes to childcare costs and mortgage affordability. The lender’s job is to make sure that you can afford a mortgage while raising a child and they will combat this by potentially offering you a lower mortgage amount.
This is in comparison to an individual in the same financial situation as you, who does not have children may be offered a higher mortgage amount. This may seem unfair, however, 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
One of the most popular mortgage hurdles that we encounter regularly in Newcastle, is a mortgage following a divorce or separation. In the majority of cases, finances are the first thing that you need to manage following a divorce or separation.
Below are common questions we get 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, all of these are possible but, you may require assistance from a mortgage expert to do so. These situations are very specialist and you may need a professional to help you get by them.
Our team understand these situations are hard and you want it to ver sorted as quickly as possible but, it’s also key that we get it right and that you overcome the hurdles with no repercussions and a new mortgage deal that you’re happy with.
Starting a new job & getting a mortgage in Newcastle?
When customers get in touch for mortgage advice in Newcastle, it can be common for them to want to take out a mortgage when they start a new job. The deposit is not an issue here. Normally, the applicant will have either built up savings or is looking at moving home in Newcastle and will keep the funds from the sale to help with the deposit.
In the case where you are starting a new job soon, there is a possibility that you can get a mortgage pre-hand if you have already signed a contract and had a job offer. Usually, lenders are okay with probationary periods, although, they will be cautious.
Having gaps n employment can often be a worry. This is because it’s best to show your lender that you’re reliable and are trusted to meet your monthly payments. Normally, being unemployed with no income is a warning sign for them.
Proving your deposit
Sometimes, your mortgage deposit can be the most challenging but the most straightforward part of the process. This is due to strict anti-money laundering measures. You will be required to evidence of where you got your deposit from as this is an important 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. Your application may get rejected if you cannot prove how you received this money.
In the case 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. By doing this, your lender can easily monitor the money to see exactly where the money is coming from.
Specialist Mortgage Broker in Newcastle
Can I port my mortgage to a new property in Newcastle?
Mortgage Advice for Porting a Mortgage Newcastle
Usually, you’ll find that most high street mortgages are portable. Having a portable mortgage means that you will be able to move the mortgage from one property to another, avoiding any kind of penalty.
A benefit of having a portable mortgage is that it can allow you to potentially avoid any early repayment charges that otherwise would have come up. This can be helpful if you are looking to move into a new home and are currently tied into a contract with a fixed rate.
Are all mortgages portable?
Even though it’s true that lots of mortgages available to customers are portable, this doesn’t apply to every mortgage. This is definitely evident with some specialist lenders. Contacting our team and speaking to your mortgage lender for a quick discussion can give you some confirmation on this.
Should I port my mortgage?
Despite it being an option in many common cases, homeowners may simply not go for this option. This could be due to the lender not being willing to lend them the necessary additional funds required to move home.
Along with this, it’s key to keep in mind that the additional funds will on a different rate to the rate that your existing mortgage deal is already on. It may even be helpful for you to take on those early repayment chargers instead of staying where you are this is subject to the deal that your lender offers you.
What is a Sub Account?
When you decide to port your mortgage, a sub-account will be created at this point. The additional funds will be placed onto a different deal than the one you have on your current mortgage.
Because of this, you technically have a single mortgage and a single direct debit in your name. There are different rates of interest that will apply to each.
Further down the line, having sub-accounts can cause a bit of grief for some. This is because different products will eventually overlap with one another. You will need to make sure they are aligned once again as this could risk your sub-accounts falling onto the lenders standard variable rate for a set period of time.
If you are looking for further information regarding the option to port mortgages onto new property, please get in touch to speak to an expert mortgage advisor in Newcastle. We offer all our customers a free mortgage appointment where you can talk about your situation to an expert and find out the best option for you.
Whether you’re looking at moving house in Newcastle, dealing with a buy to let mortgage in Newcastle or are in need of assistance with a self employed mortgage in Newcastle, our team are more than happy to get you booked in for an appointment to explore your options.
Mortgage Broker in Newcastle
Buying vs Renting a Property in Newcastle
Mortgage Advice in Newcastle for Home Buyers and Renters
Deciding between renting and buying a home, especially as a first time buyer in Newcastle, requires careful consideration and evaluation of your financial situation. Both options have their pros and cons, so it’s important to weigh them against your specific circumstances and priorities.
One of the key factors to consider when deciding between renting and buying is affordability. If you have enough savings for a substantial down payment, you may find that your monthly mortgage payments are lower than the average rent in some areas of Newcastle. In this case, owning a home may be a more cost-effective option for you.
However, if you do not have a substantial down payment, it may be more financially feasible to rent a home in Newcastle. Additionally, owning a home also involves additional costs such as property taxes, insurance, and maintenance expenses. So, it’s crucial to factor in these costs when evaluating the affordability of owning a home.
Ultimately, the decision between renting and buying a home in Newcastle will come down to your personal financial situation, future goals, and lifestyle preferences. By taking the time to carefully consider all of these factors, you can make an informed decision that best suits your needs.
Buying a House in Newcastle
Many parents, particularly among the younger generation, advise their children to start saving early towards a housing deposit. While this approach has several advantages, it is important to consider the potential disadvantages as well. By carefully weighing the pros and cons, individuals can make an informed decision on whether this approach is right for them
Mortgage Payments
The cost comparison between monthly mortgage repayments and renting depends on several factors, including the type of mortgage and the location.
In some areas of Newcastle, a tracker mortgage may provide lower monthly payments than renting. Tracker mortgages follow the Bank of England’s base rate, which means that you will know each month what your payments will be. However, it’s important to note that the base rate is subject to change, and if it rises, your monthly mortgage repayments may increase.
On the other hand, a fixed-rate mortgage offers stability and certainty, as your payments remain the same each month for the duration of the fixed term. This can provide peace of mind, as you won’t have to worry about changes to the Bank of England’s base rate affecting your monthly payments.
It’s important to consider both the type of mortgage and location when comparing the cost of monthly mortgage repayments and renting, as each situation is unique and will have different factors to consider.
Owning Your Own Home
As a homeowner, you enjoy a unique sense of security and comfort within the walls of your own home. You have the ability to live your life as you see fit, without the threat of eviction or interference from others. The ownership of the property gives you a sense of control and stability that cannot be found as a tenant.
However,as a tenant, you are in the hands of the property owner, who holds the ultimate power in deciding whether or not you can continue to reside in the rented space. Although landlords are legally obligated to give tenants proper notice before eviction, it is important to recognize that the property belongs to the landlord and not to the tenant. In this sense, the level of protection and security afforded to tenants is significantly less than that of homeowners.
Uncertainty
The property market can be unpredictable, and it can be challenging to predict its behavior. On one hand, you may be pleasantly surprised to find that your home’s value has increased, providing you with financial benefits.
On the other hand, the value of your property may also decrease, leading to financial loss. In either scenario, it is important to understand the market forces at play and make informed decisions about buying, selling, and investing in property.
Mortgage Advice in Newcastle
Before making a major financial commitment like buying a home, it’s important to see if you’re ready. If in doubt, consult with a mortgage advisor in Newcastle to determine your eligibility. If you’re eligible, consider speaking with a protection advisor in Newcastle to explore your options for insurance coverage.
For instance, if you have critical illness insurance and become unable to work due to a covered illness, you’ll be protected. For the best guidance, seek advice from a protection & mortgage advisor in Newcastle.
Renting a property in Newcastle
Renting may be a more suitable option for you, depending on your current situation. It is worth considering whether you prefer to save for a large deposit to buy a property, or whether you would like to explore the possibility of sharing a mortgage with someone else. Before making your decision, it is important to consider the advantages and disadvantages of renting versus owning a property through a mortgage.
Flexibility
When considering a mortgage, it’s important to think about your future plans for the next 5 years. Renting, on the other hand, only requires a commitment of 6 months to a year.
This can provide an opportunity to save for a down payment or move into a new property when your lease ends or when you receive the keys. If you don’t see yourself living in Newcastle long-term, renting may be a better option rather than taking on a mortgage.
Repairs
The responsibility for repairs on a property depends on the severity of the issue. Repairs can take anywhere from a few days to several months, so it’s important to research and read comments and recommendations before choosing an estate agent.
The property owner is responsible for major repairs, while minor repairs are the tenant’s responsibility. If you are the property owner, you will be responsible for all repairs and damages related to the property.
Moving Home in Newcastle with a friend(s) / family member?
When you decide to buy or rent with a friend or partner, as a Mortgage Broker in Newcastle, we suggest you only obtain a mortgage if you have had experience living with your friend or partner before.
Being tied into a mortgage deal with a new friend or partner will likely cause problems down the line, especially if you have a change of thought and want to move out of the property. It’s not always as easy as it seems to get your name removed from a mortgage.
Removing a name can often require Specialist Mortgage Advice in Newcastle to get this sort of thing moving.
We’re Here to Help
Now that you know some of the pros and cons of buying and renting, you should now weigh up your options. Which is right for you? Which will benefit you most? Where do you see yourself in 5-10 years?
These are questions to consider during any big decision in your life. Some people prefer to make a list of the pros and cons, that seems to always help!
When it comes down to the numbers, the majority of people choose to buy over rent, they see it as an early opportunity to get themselves onto the property ladder as First Time Buyers in Newcastle.
We tend to find others would also rather the money go towards their mortgage rather than paying somebody else’s. If you need more renting vs buying advice in Newcastle, book your free mortgage appointment today to speak with one of our Mortgage Advisors in Newcastle today.
