Generally you’ll find that the majority high street mortgages are portable. What this means is that you will have the ability to move it from one property to another, without incurring any kind of penalty.
Portable mortgages are especially useful if you are looking to move into a new home and are currently engaged in a contract with a fixed rate, as it can allow you to potentially avoid any early repayment charges that otherwise would have occurred.
Whilst it’s true that a lot of mortgages available to customers are portable, this doesn’t apply to every mortgage. Some specialist lenders for example, won’t allow this to happen. Getting in touch with and speaking to your mortgage lender for a quick discussion can give you some confirmation on this.
Even though more often than not it will be there as an option, in lots of cases, homeowners may simply choose not to. Perhaps the lender isn’t willing to lend them the necessary additional funds needed to move home.
It’s important to know as well, that the additional funds will be on a different rate to the rate that your existing mortgage deal is currently on. Depending on the deal that your lender offers you, it may even be more beneficial to you to take on those early repayment charges, rather than staying where you are.
A sub-account on your mortgage is created at the point where you decide to port your mortgage, with the additional funds being placed onto a different deal than the one you have on your current mortgage.
This means that although you have only 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 into the future, having sub-accounts can be known to cause a bit of grief. The reason for this, is because different products will eventually overlap one another. Working to get them aligned once again could mean that one of the sub-accounts has to fall onto the lenders standard variable rate for a particular amount of time.
For more information on the option to port mortgages onto new properties, please contact us to speak with a mortgage advisor in Newcastle and we’ll see how we are able to help you.
No matter if you’re moving house in Newcastle, working with a buy to let mortgage in Newcastle or are in need of help with a self employed mortgage in Newcastle, we’d love to get you booked in for an appointment to discuss your options.
A Gifted deposit can be either a portion of or the full amount of a deposit that is Gifted to you by a family member or friend, with an agreement that it is a loan and you don’t need to repay the money.
Gifted Deposits are useful for when you have enough money to cover your monthly repayments but can’t afford the initial deposit on the property, maybe down to a smaller salary or possibly something else. Having more Gifted Deposit available may present you with options for better rates from a lender.
Generally speaking, it is your parents who can gift you the deposit. This is acceptable both birth and adopted parents. You may see this mentioned online as the “Bank of Mum & Dad”, though there are potential other family members who could also be considered as options for a Gifted Deposit. This depends on individual lenders though, so would require care when trying to find the right mortgage lender.
If the person gifting you a deposit is over the age of 55, they may be able to help you out through taking out a Lifetime Mortgage and an Equity Release in Newcastle.
We often find that clients don’t always know that their parents can help with their mortgage, or if they do, they don’t feel like they can ask them for help. The truth of the matter is that most parents are more than happy to help their children in any way they can in getting on the property ladder.
It’s widely believed that taking out a mortgage is a better option than renting, due to you being able to potentially pay less per month. Your deposit can often come from inheritance, although parents have been known to gift it earlier on in life, especially if they already have enough saved or have released equity from their own home.
The majority of lenders won’t accept a loan as a means of funding your deposit. This is down to the uncertainty that you’d have enough disposable income to pay back both the loan and the mortgage at the same time.
There is no maximum limit on the amount someone can gift you, though there are at least a few lenders that will insist you put in at least 5% deposit from your own funds.
If you are a First-Time Buyer in Newcastle or Moving Home in Newcastle, a Gifted Deposit will be greatly beneficial to you. It can also be useful when in conjunction with a Help-to-Buy in Newcastle. This is because the required 5% deposit, depending on the lender you go with, is acceptable to be paid via Gifted Deposit.
Typically, all lenders will require a Gifted Deposit form. Depending on your lender, you may be asked to provide further proof of these funds, such as the donor’s ID or bank statements.
Part of the mortgage process includes providing evidential documents to prove that you can afford a mortgage and you are who you say that you are. There are lots of different documents that you’ll be asked to provide, this includes photographic ID, payslips, latest P60, proof of address and your bank statements.
Lenders need to be certain that you can afford a mortgage. Yes, you may have been given an Agreement in Principle (AIP) to say that they are willing to lend to you, however, you are only agreed in principle of you providing evidential documents to back up everything that you’ve said about yourself.
Bank statements show a lot about an applicant, they will show your latest spending at the pub to gambling transactions on your go-to betting app. Everything you spend will be on them, even bank transfers to and from different accounts.
Seeing how someone spends their money will show the lender whether the applicant is a trustworthy applicant or not. For example, if the lender can clearly see that an applicant spending too much money and is exceeding their overdraft limit every month, they will question whether you will be able to afford a mortgage or not.
It’s all down to risk. If the lender thinks that you are going to struggle with your mortgage payments due to how you spend your money, they are unlikely to accept your application.
The question is, what exactly are they looking for? What do I not want to pop up on my bank statements during my mortgage application?
Gambling transactions is actually one of the first things that your lender will look for on your bank statements. Believe it or not, depending on how frequently and how much money you gamble, gambling can affect your chances of getting a mortgage.
Occasional gambling will be harmless, however, if you are frequently gambling large amounts of money, no matter if you are returning a profit or not, lenders will not be impressed.
Remember, lenders need to trust you and know that you’ll be able to meet your mortgage payments each month. If you are gambling, you may be seen as unreliable.
Lenders need to know that you can afford a mortgage, so dipping into your overdraft and exceeding its limit every month is something that they won’t take lightly. We aren’t saying to never step into your overdraft, as a Mortgage Broker in Newcastle, we see it happen all of the time. We are suggesting that if you do it every month, it may be a little trickier to get accepted.
Another thing that lenders will look for on your bank statements is bounced direct debits. A bounced direct debit is a payment that fails to go out of your account, this usually occurs with monthly bills/subscriptions. This may sometimes be a complete accident, so one or two may not hurt depending on what you are paying for, for example, a missed mortgage payment will more detrimental effect than a missed phone contract payment. However, repeated bounced direct debits will reflect badly on your credit file, so be wary of agreeing to credit commitments when you can’t really afford them.
Furthermore, lenders will be checking for personal loans and credit card commitments. They need to make sure that you’ve declared these expenditures and that you’ll still be able to meet your mortgage payments as well as these outgoings.
After having worked with thousands of First Time Buyers in Newcastle and Home Movers in Newcastle, we have learnt that most lenders will want to see at least three months worth of bank statements from their applicants.
In light of this, you now know that you can’t change what your past bank statements show, however, you can change what appears on them in the future. Before you officially submit your final mortgage application, you should get prepared and make sure that your finances reflect you in the right way.
As a Mortgage Broker in Newcastle, here are some recommendations that we have to show that you are a reliable applicant:
For help with making your application stand out, you should get in touch with a broker like us for Specialist Mortgage Advice in Newcastle. We have been helping people achieve their mortgage needs for the last twenty years, it’s safe to say we know exactly how to help. You could be next!
We also offer a free mortgage consultation, so if you have any mortgage questions, it’s likely that we’ve helped many applicants in your situation before, so feel free to get in touch.
From First-Time Buyer Mortgages in Newcastle to Moving Home in Newcastle, to Remortgages in Newcastle – When you start out looking for a mortgage it will quickly become apparent that you have a whole array of mortgage types available for you to choose from.
Below you will see a list of the most popular types of mortgages we encounter on a regular basis that are available on the market. If you have any questions regarding one of these mortgage options, then please do not hesitate to contact us and an experienced mortgage advisor in Newcastle will be in touch to see how they can help you get the ball rolling.
A fixed rate mortgage means that your mortgage payments are going to remain as they were for the length of time that has been agreed on between you and the lender. You are the one who can set the length of which you want to fix your payments for, with the usual options customer opting for being 2, 3 or 5 years or longer.
Regardless of what happens to inflation, interest rates or the economy, you can rest assured that your monthly mortgage repayments, usually your biggest financial outgoings each month, will remain as you are used to, providing financial stability for you.
A tracker mortgage means that your interest rate will follow along with the Bank of England’s base rate. What this basically means, is the lender that you are with is not the one who sets your mortgage rate and you will be paying a percentage above the Bank of England base rate.
In an example, if the base rate is 2% and you are tracking at 1% above base rate, that means you will be paying a rate of 3%.
When you take out a repayment mortgage this means that each month you are paying a combination of both interest and capital.
So as long as you are able to keep up your monthly mortgage repayments for the full length of the mortgage term, the mortgage balance is guaranteed to be paid off at the end and the property will then become yours completely.
This is the most risk-free way to pay your capital back to a mortgage lender. In the early years of your mortgage term, it is mainly the interest that you are paying and your balance will reduce at a very slow rate, especially if you have taken out a mortgage that stretches over 25, 30 or more years.
This situation then changes in the last ten years of your mortgage, where your payments are paying off more capital than interest and the balance will be reducing at a much quicker rate than it was at first.
Most buy to let mortgages are set up on an interest-only basis, however, landlords may find it much more difficult to get a residential property with this type of mortgage.
Nowadays, finding a lender who is willing to offer this will be hard to come by, though there are certain circumstances where this can be an option. These include downsizing your home when you are older or have other investments what you will use in order to pay back the capital.
Lenders are very strict when it comes to offering these products now and the loan to values are a lot lower than they were in previous years.
With an offset mortgage, the lender will set you up a savings account to go alongside your existing mortgage account.
How this works is that let’s say you have a mortgage balance of £100,000 and £20,000 is deposited into your savings account, then you will only pay interest on the difference, which in this case would be £80,000.
This can be a very efficient way of managing your money, especially if you are a taxpayer that pays much higher rates than others.
For a First Time Buyer in Newcastle, many applicants have gotten in touch with our Mortgage Advisors in Newcastle. Explaining to us that, getting a mortgage is like being stuck in a labyrinth. All lenders have their unique lending criteria. One customer even felt like an “unsolved Rubik’s cube”. Particularly when trying to obtain a mortgage directly with their local Lender. That is just one of the many reasons why people get in touch and speak to one of our trusted Mortgage Advisors in Newcastle.
We know from experience some lenders’ credit scores are more accessible to pass than others. They are all targeting specific parts of the market. Often the Lenders with the lowest rates have the tightest lending criteria. As such, most customers do not match the requirements of every Lender out there.
When Lenders offer very competitive deals, their margins are very tight. To remain profitable, it is crucial to these Lenders that their customers do not fall into arrears. As such, it can be not easy to qualify with them, so don’t expect to pass their criteria the first time, using a Mortgage Broker in Newcastle we can help find you the best mortgage deal tailored to your circumstances.
High Street Lenders, have a reputation having very cheapest deals, have other ways of trying to maximize their earnings from borrowers. Once your mortgage got agreed, they will undoubtedly try and cross-sell your other products that they offer that make them more commission. These products include Bank Accounts, unsecured loans, credit cards, and Insurance.
Sometimes the mortgages with the lowest rates of interest come with high set up fees. Sometimes it’s better to ignore these products. As your friendly Mortgage Broker in Newcastle, we search thousands of deals to recommend the best product that represents the best value for money for you taking everything into account.
Lenders can also look to take advantage of their customers when their initial deals are coming to an end. Some lenders still let borrowers drift onto Standard Variable Rate hoping clients stick with them. More often these days, the Lender will offer a “follow-on” deal, also known as a “product transfer.” While these deals are easy to take up, they are rarely the most competitive and sometimes not as reasonable as the deals made available to new customers.
Also, about Standard Variable rate mortgages, of course, not all customers are eligible to Remortgage in Newcastle elsewhere. Perhaps their circumstances have changed, such as a relationship breakdown. Maybe there is less income coming into the household now than at the point of application. If an applicant has had a default or CCJ since they took the mortgage out or the value their home has dropped since they bought it.
Returning the Lenders’ criteria, depending on how the economy is performing. Can affect on how easy or hard it is to get a mortgage. When the economy has been suffering lenders can tighten the purse-strings and vice versa when things are going well. Some would say sometimes it is too hard to qualify for a mortgage, and in other years it can arguably be straight forward.
Sub-Prime and Self Cert mortgages were readily available to many people in the mid-2000’s. At that time, new lenders were regularly launching with ever more relaxed lending criteria. In the USA, the phrase ‘Ninja Mortgages’ was bandied, which meant no Income, no Job, or Assets.
Lenders took a completely different view and tightened criteria. Often a 25% deposit was required, and for many people, it became seemingly impossible to get on the property ladder. Interest rates were high as well, making it tempting for customers to continue renting.
Having industry knowledge, it is an invaluable experience and deep insight into what the lenders are looking for in mortgage applicants. Referring to Credit Scoring. Which most High Street lenders do now to save them time and money and also produce consistent decisions.
Lenders are very cagey about disclosing what influences their “Computer Says No” decisions. Still, having seen thousands of customers literally over the years. We can share with you some simple steps you can take. To improve your chances of your mortgage application being successful.
Some of these steps are straightforward, things you can do in one evening that will make a difference. Such as ensuring the formatting of your address is consistent across your accounts.
If you do not qualify for a mortgage yet. You can put in the foundations so that when the time is right. You are in a much stronger position to go ahead.
A divorce or separation is never planned when you move in with your partner, so if things to go unexpectedly and this happens, things can get complicated very quickly, particularly your mortgage commitments.
As your expert Specialist Mortgage Advisors in Newcastle, we know exactly what to do in order to get things rolling smoothly. We know that these times can be hard, especially if you are trying to sort everything on your own, and that’s why we always offer a helping hand.
As a Mortgage Broker in Newcastle, a day doesn’t go by where we don’t deal with a specialist case. Over our many years of working within the mortgage industry, we have provided our expert help and guidance to many customers who have needed Mortgage Advice in Newcastle through their divorce or separation. When people come to us asking for advice on their mortgage regarding a divorce or separation, we usually get asked the same three questions:
1. How do I remove my ex-husband/wife from my mortgage?
2. How do I remove my name from my ex-partner’s mortgage?
3. Can I have 2 mortgages?
Once you have joint financial commitments with somebody, removing their name can sometimes be difficult. When you first moved in, you both put your names on the mortgage and taking one-off isn’t as easy as you may think.
Things can become just a little more tricky when there are children involved. It’s more common for the mum to remain within the household with the children but obviously, it can go either way. There may come a time that whoever is “in situ” wants to take over the mortgage in their own right. You never know, maybe both parents may want to move out and move on.
Even if you are able to prove that you have been paying your mortgage payments without any help from your ex, this will still not change the fact their name is tied into your mortgage with you.
When you approach your lender or a Mortgage Broker in Newcastle trying to remove a name, they must ensure that the remaining applicant on the deal has the means to able to afford a mortgage on their own going forward. It is also important that you know that both you and your ex-partner will have to go through a full affordability assessment, even if you have been keeping up with your mortgage payments.
During this point in the process, we normally see that there is already someone who can step in and replace the ex-partner. We usually find that this is a family member or a new partner.
Every lender has their own different way of assessing your affordability for a mortgage, so don’t give up if your existing lender is unable to help because there are other options available. One is to approach us, your expert Mortgage Broker in Newcastle and we will see what we can do.
The same rules apply for this situation for if you were trying to remove someone else’s name. Both names are still tied into your mortgage so even if you decide to leave the household, you are still responsible for any joint financial commitments you took out with your ex-partner. It’s important that you know that this is still the case even if you have made an agreement with your ex-partner that they will make all of the payments.
The mortgage payments for your old property will be taken into account by your lender if you want to buy a new property in the future so it is important that you take this into consideration before making an offer. This is why we always recommend getting help from an experienced Mortgage Advisor in Newcastle.
In situations like this, people can get themselves stressed and need some expert help from an expert Mortgage Advisor in Newcastle. We are here to offer a helping hand; at Newcastlemoneyman, a Mortgage Advisor in Newcastle will sort everything out for you and recommend you with your best options as a person moving out of the family home. We will always have your best interests at heart!
You will find that some lenders are more generous than others in regards to how much they’ll lend you. Although, some are strict and some may be more lenient. If you come to us for Mortgage Advice in Newcastle, we will take your personal and financial situation into account when recommending you the most suitable lender to apply for a Mortgage Agreement in Principle with.
Yes, you can have more than one mortgage, you can even get more than two! Lenders and their credit scoring systems will take in lots of different factors when you apply for a second mortgage. The main one will be your current financial commitments. There are still lots more that need to be considered though. Before applying, make sure you can afford a second mortgage, as getting declined could potentially damage your credit score.
A Mortgage Broker in Newcastle, like Newcastlemoneyman can perform a search for you without damaging your credit file. Once we have evaluated all of your information, we can confirm the maximum amount that you will be able to borrow. This will allow you to get an idea of your budget and how much your monthly mortgage payments are going to be on top of your current financial commitments.
We know that it can be hard to move on from your current financial commitments, this is why having an expert advisor by your side could prove highly beneficial. Moving Home is already stressful enough and when you add that to a complex situation like a divorce or a separation, it can sometimes all get a bit too much. Speak to a Mortgage Advisor in Newcastle today and we will see how we can help you!
COVID-19 has had a noticeable effect on the mortgage market thus far, but that won’t stop us from providing the same level of Mortgage Advice in Newcastle our customers know and love. At Newcastlemoneyman, we are still working the same way we were before these hardships.
We still have hardworking Mortgage Advisors working remotely from their homes in order to answer all of your mortgage questions. Our number one aim is to ensure all customers have the option to speak to a Mortgage Advisor in Newcastle if they need to.
You may be worried you’re unable to meet your monthly mortgage payments or you’ve reached the point where you are looking for a better remortgage deal. We have noticed that these two situations have been mentioned by quite a few customers.
As a Mortgage Broker in Newcastle, we would highly recommend speaking with one of our advisors before you go directly to the bank or lender. We’re able to assess your personal and financial situation, in order to recommend the best route for you to take.
We’ll do our best to help all those who come to us for help with their mortgage during these difficult months. We’re all in this together and look forward to you getting in touch.
We’re still working through various different situations every day, keeping our business flowing as usual. We won’t let anything get in the way of us providing expert Mortgage Advice in Newcastle.
Customers have still been leaving excellent reviews over the last few weeks, something we’re incredibly proud of. We take great pride in our work and it warms our hearts to know that as a Mortgage Broker in Newcastle, we’ve done right by our customers.
Here is what a few customers have recently said about our service here at Newcastlemoneyman:
“Absolutely fantastic service from Chris setting up my application, to Kayleigh sorting out the right remortgage for me, nothing was too much trouble. Cannot recommend them enough for sorting this out in a timely manner and during this pandemic. Thank you to each and every one of you.” – Mandy H
“Brilliant service from Jonathan and Megan, very smooth process and they have secured me a great mortgage deal. Will highly recommend Newcastlemoneyman. Thank you.” – Daniel D
Remember, we’re still available for you to get in touch 7 days of the week. Sincerely from everyone here at Newcastlemoneyman, we hope you’re safe and well. We look forward to hearing from you soon.
We won’t let anything get in our way, especially during the COVID-19 outbreak. It’s still our aim to help with all your mortgage problems, it wouldn’t be fair to just leave you confused and concerned. We’ll do our best to get you over these hurdles and through the mortgage process with ease.
Business owners, directors and self-employed individuals deal with a lot of stresses that many employees don’t see or understand.
From the day-to-day running of a business and keeping employees happy to not knowing how much you might be taking home at the end of the week, there are also effects on your non-work related life.
Mortgages being a big part of that. Many people in these roles worry about how much they can borrow and if they’ll qualify. Here, we take a look at self-employed mortgage advice, including business owners and directors.
No matter how well people are doing, they tend to try and keep their tax liability as low as possible. This is usually as a result of Accountants encouraging you to put your expenses through as high as possible to keep profits low.
The issue with this is that it causes a problem when it comes to borrowing money because it looks like you’re not earning much. And, unfortunately, you can’t have it both ways! Generally, you have to decide whether you want a lower tax bill or better borrowing credentials.
Luckily though, there are lenders out there that will assess your income in several different ways. Some lenders will lend more than others and our role is to find the one most suited to your requirements.
For example, most lenders average the last two years earnings, but we have access to others that only consider the latest year. This can be beneficial if you’ve seen an upturn in business over the last year.
Again, if you’re the Director of a Limited Company, lenders can assess this in different ways. Some will average the last two years of salary, plus dividends.
However, others class you as employed unless you own a certain percentage of the company. In these circumstances, even if you are a Director, they might consider going off your payslips for the last three months.
This, similar to above, can be beneficial if the last three months have been more favourable.
As well as the above, some business owners run highly profitable organisations but only feel the need to take a low dividend in order to keep cash in the business.
This type of applicant can be disadvantaged by the salary plus dividend method as their earnings will appear low. As a result, they will seem less attractive as a borrower.
However, there are lenders out there that will consider using the net profit of the Limited company to solve this problem.
If your business is due to complete a set of accounts, you can contact us with the projected figures. We can then use that information to calculate what your maximum borrowing would be.
However, if this seems the best route, then accounts would need to be finalised prior to a formal mortgage application being made.
In summary, calculating maximum borrowing capacity for a self-employed mortgage applicant really is a minefield – you could easily go to 10 different lenders and get 10 different answers!
In fact, I would quite expect exactly that to happen. If you need to maximise your borrowing capability, I would urge you to use a Mortgage Broker. Their knowledge and experience will mean that they can get the best deal for you.
With the Brexit deadline once again being extended, we’re thinking about what the next move is. With everything up in the air and uncertainty becoming the norm, it can be hard to find reliable advice about anything, including mortgages.
We have found that many people are sitting on their hands when it comes to property. No-one is quite sure what right path is. As a result, people are potentially missing out on golden opportunities which could have benefitted them in the long-term.
With previous experience of how the market has been influenced by external factors such as national political issues, our Mortgage Advisors are looking towards the future to evaluate the potential outcomes for customers post-Brexit. And in our opinion, there is lots of pent-up demand out there.
Because of this, we are advising clients to research all their options. Especially if their current plan is to “wait and see” because that approach may not work out in their favour.
If you’re planning to move in 2020, then it would be advisable to chat with us sooner rather than later. Now is a great time to reach out to us and to look at getting your home valued because Estate Agents are quiet.
Getting your home prepared to go on the market typically takes a few weeks. This is because time is needed for 2 or 3 valuations, choosing your preferred Estate Agent, signing your agency agreement and getting the photos finalised. This can be a timely process and could, unfortunately, be delayed at any stage.
Furthermore, if everyone else looking to enter the market has the same “wait and see” mindset, it will work against you. By the time your home goes live, so will theirs. This means there are more houses on the market, meaning there are more options for a potential home buyer, therefore driving prices down.
There a few benefits to getting ahead of the market and getting your home valued now.
So, if you’re thinking of moving home in 2020 or the near future but are concerned about Brexit, contact us to discuss your mortgage options. We offer all customers a free no-obligation consultation.
Whether you are a first time buyer actively viewing properties or a home mover with your house on the market, you may have noticed that some of the larger estate agents and builders are very keen for you to use their in-house mortgage advisor and conveyancing services.
Being part of a stand-alone mortgage business we receive lots of feedback as to what sales tactics can be used, examples of this are;
Remember, when negotiating a purchase price, do you really want the seller of your property having access to your personal financial situation and potentially knowing your maximum borrowing?
Here at Newcastlemoneyman, we work solely for you!
We are open and honest and only have your best interests at heart. As first-time buyers, we know it can be stressful. We’re here to save both your time and money.