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!

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.

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.

Can I port my mortgage to a new property in Newcastle?

Mortgage Advice for Porting a Mortgage Newcastle

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.

Are all mortgages portable?

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.

Should I port my mortgage?

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.

What is a Sub Account?

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.

Mortgage Broker in Newcastle

What is a Gifted Deposit Mortgage?

What is a Gifted deposit?

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. 

How can Gifted deposits help?

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.

Who can gift the deposit?

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.

Do your parents know you need help?

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.

Gifted Deposit v loans

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.

Is there a maximum or minimum gifted amount?

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.

Who can benefit from a Gifted Deposit?

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.

What proof is required?

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.

What do Lenders Look for When Assessing my 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.

What Do Lenders Look For On My Bank Statements? | MoneymanTV

Why do lenders ask to see my 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.

What specifically will they be looking for?

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?

1 – Gambling transactions

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.

2 – Exceeding your overdraft

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.

3 – Bounced direct debits

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.

4 – Failing to pay off loans and credit cards

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.

What can I do to show my lender that I’m a reliable applicant?

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:

  • Gambling – If you are a frequent gambler, we would suggest that you take a break for a little while. This may also benefit your mental health as well as your financial situation.
  • Save money – Even saving money and showing the lender that you’ve been trying to show ways of being able to afford a mortgage will help you massively.

Speak to a Mortgage Advisor in Newcastle

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.

The Different Types of Mortgages Explained

The Different Types of Mortgage

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.

What is a Fixed Rate Mortgage?

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.

What is a Fixed-Rate Mortgage? | MoneymanTV

What is a Tracker Mortgage?

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%.

What is a Tracker Mortgage? | MoneymanTV

What is a Repayment Mortgage?

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.

What is Repayment Mortgage? | MoneymanTV

What is an Interest Only Mortgage?

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.

What is an Interest-Only Mortgage? | MoneymanTV

What is an Offset Mortgage?

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.

What is an Offset Mortgage? | MoneymanTV

Mortgage Advice for After Divorce / Seperation in Newcastle

It can be unfortunate if you decide to separate from your partner and go through the divorce or separation process. It can also be a stressful time and something that couples never foresee. If you have a joint mortgage and other finances, this can make the situation even worse.

Below, we have compiled just a few of the most common questions we are asked when we deal with customers in this situation who need to rearrange their mortgage commitments.

Do I need to keep paying my half of the mortgage?   

No matter what situation you are going through right now, you still must keep paying your mortgage. This is still the case, even if you live elsewhere.

You still have an agreement with your now ex-partner to take equal responsibility for your joint mortgage. Because of this, you are equally liable for any debts until the mortgage is paid off, regardless of your situation and whether you live there.

If you do not pay your mortgage on time, you can be at risk of causing a lot of harm to both you and your ex-partner’s credit history. This applies equally if your ex-personal partner does not pay on time, you will be affected. This will result in the risk of your home being repossessed if you do not meet your monthly repayment date or other debts you have secured.

When should I inform my lender?

Once your separation is for definite, you should contact your lender as soon as possible to inform them. If you have trouble paying your monthly mortgage, this is even more important to notify your lender.

What are my options?

1. Sell The Property 

In this situation where you have both decided to move out of the property, sell and repay your remaining mortgage balance. The remaining equity will be split between you both. It is something to discuss between you and your ex-partner about who gets what from this remaining equity.

Here at Newcastlemoneyman, we have a team of specialist mortgage advisors in Newcastle. We worked around the clock to see if we can find you a suitable option to buy a new home under a single name.

Your dedicated mortgage advisor in Newcastle will work hard to find you the most appropriate mortgage deal for your situation. We will also provide you with appropriate and expert mortgage advice in Newcastle.

2. Continue to Make Those Payments

In the case where a homeowner has separated from their ex-partner but is on better terms with them. Sometimes one chooses to stay in the property and continue to pay the remaining mortgage amount.

This can be a convenient route, especially for those with fixed rate mortgage terms, if it works with your personal situation.

3. Stay in The Property  

Taking a remortgage in Newcastle out in either your own name or your ex-partners can be helpful if you or your partner decides to remain to live in the property.

Being the sole owner of the property means you will need to take out a Remortgage if there is an outstanding mortgage to pay off in both you and your ex-partners’ names. This will work with the new mortgage in your sole name and involve the lender making another assessment of your affordability.

Can I get a second mortgage? 

It may be possible for someone to have more than one mortgage; You can find that credit scoring systems can majorly vary from lender to lender. Applying for a second mortgage would mean you will be analysed on several factors.

Looking at your current financial commitments is one of the main factors they will consider. That is why you need to be sure you can afford a second mortgage with your financial commitments. You need to be sure that you can afford a second mortgage because being rejected for this could have a negative impact on your credit file.

Here at Newcastlemoneyman, we do have an expert team of mortgage advisors in Newcastle who can help you out with credit searches that will have less of an effect on your credit file. Once our team has collected the necessary information, you can get an idea of the maximum amount of mortgage you could borrow.

This allows you to learn more about your budget and estimate the amount your monthly mortgage payments will be with your current financial commitments.

Getting away from your current financial commitments can be a tough process which is why having a trusted mortgage advisor in Newcastle by your side is beneficial as they will be able to provide a helping hand throughout the process.

If you are moving home in Newcastle, you may find the experience stressful, especially those going through a divorce or separation. Contact a mortgage advisor in Newcastle today, and our team will be happy to see how they can help.

What if I am in negative equity?  

If you divorce in the house that both jointly own in negative equity, it can be difficult to sell the house and pay off the remaining mortgage balance. In terms of the remaining debt, you may need to divide this between the two of you or come to an agreement with your current mortgage provider. 

Nothing But Open & Honest Mortgage Advice in Newcastle

Mortgage Advisor in Newcastle

Business as usual

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.

Recurring situations

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.

Customer service

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

Speak to your Mortgage Advisor in Newcastle

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.

Mortgage Advice in Newcastle

Self-Employed Mortgage Advice in Newcastle

Mortgage Advice in Newcastle for the Self-Employed

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.

Mortgage Advice for the Self-Employed

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.

Mortgage Advice for Directors

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.

Mortgage Advice for Low Dividend Business Owners

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.

Open & Honest Mortgage Broker

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.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

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
to the Financial Ombudsman Service, which can be contacted as follows

The Financial Ombudsman Service, Exchange Tower, London, E14 9SR
www.financial-ombudsman.org.uk

© 2022 Newcastlemoneyman

Newcastlemoneyman – Clavering House, 1 Clavering Place, Newcastle Upon Tyne, NE1 3NG.

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