Unsecured credit is a topic that should not be taken lightly. We regularly speak with customers who are in dire need of specialist mortgage advice in Newcastle. Having things like missed payments, low credit scores, CCJ’s, and defaults, will have an impact on the maximum amount you can borrow for a mortgage.
If you have too many missed payments on something like a mobile phone contract, you may find yourself with a default attached to your credit file. If you are looking for a mortgage in the future, this can cause you trouble because it shows that you may be unreliable with payments.
That said, missing a couple of payments or defaults is not the end of the world. While talking to a specialist mortgage advisor in Newcastle can help navigate the mortgage process, there may find some suitable choices for you.
If you have a lower deposit, your chances of being declined are more than likely. If you have a suitable size deposit though, even if you have bad credit, a mortgage may still be an option for you, but you could face high-interest rates.
A specialist mortgage lender wants to know when and why your default was registered against you. The further away it is and depending on whether there is a good enough reason, the more likely you are to achieve mortgage success.
People do make mistakes and if it is a genuine, honest mistake that your default was issued, the mortgage lender may be a little more sympathetic during your application.
We have compiled a list of frequently asked questions and answers in addition to bad credit mortgages.
If your questions or situation cannot be found below, feel free to book your free mortgage appointment and we will see how we can help. Our team can provide great mortgage advice in Newcastle and have a lot of experience in dealing with complex mortgage situations and may have met something similar before.
No matter what type of credit problems you have had in the past, your mortgage advisor in Newcastle will need to see an up-to-date copy of your credit report, which you can typically obtain online for free.
You must get your credit report before applying for a mortgage, especially if you have a poor credit history. Multiple failed credit searches can affect your credit rating and potentially prevent you from getting a mortgage altogether.
The answer to this question depends on your individual circumstances. We find that many clients can be quite confused by their credit score and need help understanding why it may be a problem.
To some customers, their credit score may not look the best, but in their eyes, they might have a good enough deposit to lower the rate and a consistent income. Even so, because of the risk, a mortgage lender may not like them to borrow anything at all.
The mortgage lender must have absolute certainty that you can keep up with your mortgage payments without the possibility of falling into arrears. If you do fall into arrears, the mortgage lender may need to repossess your home. Contrary to widespread belief, they will want to avoid this if they can.
While it may sound challenging, there are still options for bad credit mortgages, though we tend to find they come with higher rates. At this point, the most beneficial step is to book an appointment with an experienced mortgage broker in Newcastle.
In many situations, you may struggle to keep afloat financially for reasons you cannot control. This can leave you unable to make mortgage payments you had no trouble paying.
Unfortunately, such circumstances happen. Even if it could only be a momentary blip, you can repay quickly enough, a missed payment may still appear on your record.
No matter what credit problems you face, you may face a challenge when it is time to remortgage, buy your first home, or move home.
Providing nothing but open and honest, specialist mortgage advice in Newcastle, we have had a lot of experience in helping customers who were previously tied to a mortgage and have since found themselves with a bad credit history.
If you are in a comparable situation, it will be beneficial to talk to a mortgage broker in Newcastle on your way to finding future mortgage success.
Customers may face all kinds of bad credit issues, all of which can cause great grief during the mortgage process. Some of these issues include but are not limited to;
Although none of these are particularly great circumstances, it is not necessarily the end of the road for you. With higher mortgage rates, you may have a longer, more challenging process, but there are specialist mortgage lenders who can help.
You need to focus on improving your credit score to increase your chances of mortgage success and access to better interest rates. We have a useful article that we have written on How to Improve Your Credit Score in Newcastle, which will hopefully help you to obtain a mortgage in the future.
If you are need of some expert mortgage advice in Newcastle regarding bad credit mortgages, book your free mortgage appointment online and one of our mortgage advisors in Newcastle will see how they can help.
We have over 20 years of mortgage knowledge and experience on our side, working hard to make sure that we have a definite plan of action regarding you credit score, ahead of your mortgage process. It’s our hope that the eventual outcome has you with your own mortgage.
Please bear in mind that the below information is intended solely for reference purposes and should not be taken as any kind of personal, financial or mortgage advice in Newcastle.
Looking at this with an initial view, the answer to this question is yes, there may be a possibility that you could get a mortgage if you are aged 40+. This entirely depends on what your situation is, however.
According to an old survey that taken out on mortgage brokers by the Nottingham Building Society, a large selection of those surveyed had said that they had seen a rise in mortgage applications being turned down for customers who were in this age bracket.
When speaking directly to these customers who were between the ages of 45 & 54 and had been declined during the time period that was being analysed, once again it all came down to age as the biggest factor.
In this article we will take a look at why we feel that these home buyers are experiencing this, and the positive steps you might be able to take if you would like to take out a mortgage over the age of 40.
To gain a much deeper insight into the position these mortgage applicants are in, it’s important that we look at previous years, way back to before the introduction of computerised credit scoring and increased industry regulation.
If you were to go and speak to someone at your local building society, asking for a mortgage, you will probably have been interviewed by the building society branch manager or one of their own in-house mortgage advisors in Newcastle.
They would individually make review all of the personal information you have provided, including how well you conduct your finances in your current account, before making a decision on whether or not your mortgage application should be approved.
If you were fortunate to be approved, then you would be provided with information on how much earners in similar positions to you, were able to borrow for a mortgage. This would been given to you as a multiple of your gross annual salary.
To provide you with an example of this, if you were earning a figure of approximately £20,000 per annum and the mortgage lender’s income multiple was 3.5x, then you would be obtaining a mortgage of around £70,000.
What this method of income multiplier didn’t factor in, however, was how old you are. Because of this, it didn’t matter what your age actually was, whether or you were 30, 40 or 50, you would typically be able to borrow the same amount on a mortgage.
At face value, this is what it might look like, however, if two mortgage applicants were both set to retire at the age of 65, then one of these applicants might have a term upwards of 35 years, whilst the other may only have a 15 year term, meaning they will have higher monthly payments.
Using the previous example of a £70,000 (capital and interest) mortgage, with a national interest rate of say, 5%, it could look like this:
So in this example, we have two earners that are more or less identical, with the same amount of mortgage debt, but applicant two has much higher monthly mortgage payments than the other applicant.
If the national interest rates were to suddenly rise up, then there would be an much higher risk of arrears occurring for applicant who has higher monthly payments. At the end of the day, risk is what trying to be minimised in all of this.
With this in mind, modern mortgage calculators tend to now factor in the maximum length you could take a mortgage term for (or in simple terms, your age), as well as your income and your expenditure.
In the past, the BBC got in touch with our very own “Moneyman” Malcolm Davidson for his thoughts on the Nottingham Building Society study. His perspective was not so much that older customers are being declined, but that they cannot borrow as much as they perhaps hoped they’d be able to.
Of course, the irony in this situation, is that we are in a repeated cycle of being reminded by our own government that we will have to work until a later age, as they raise the retirement age for us to be able to qualify for our state pension.
It’s a shame that the high street lenders don’t necessarily take this into account when they look at granting customers their mortgage. Below we look at this a bit more in-depth.
First and foremost, there are a various industries in the country that are manual labour focused. The likelihood of anyone continuing to work in that industry as they head into their seventies and maybe even beyond, is small.
In addition to this, mortgage lenders are pretty closely regulated when it comes to repossessions and arrears cases, as these look bad and they want to avoid them if possible. Taking a property into possession is a fairly costly process and can attract bad press for these mortgage lenders.
Regarding the topic of mortgages for much older mortgage applicants, they certainly don’t want to have to kick a pensioner out of their own home just because they can’t afford their mortgage anymore.
Thankfully, many mortgage lenders out there have started to consider granting mortgages to applicants beyond the typical retirement age, so long as you are able to show that you can afford a mortgage post-retirement.
In order to do this, you would usually give your mortgage lender with a letter from your pension provider that would project what your future income is going to be. The problem in this regard, is that even with this, your income will probably be lower at the point of retirement than it used to be.
This means when seeing if you can afford a mortgage, a mortgage lender would need you to prove that you are able to do so, even with a reduced income at the point of your retirement and beyond.
Whilst great in theory, this doesn’t always work well in practice, unless you are only looking to take out a smaller mortgage, at which point you probably don’t need to take out a mortgage past that point.
If you cast your mind back, you may remember that in 2011, they scrapped the default retirement age, as well as making it so that your employer cannot make you retire anymore, if you do not wish to do this.
Because of this, though there will be some mortgage lenders who use the state retirement age as the general guide for when a mortgage should be fully repaid, it is becoming much more common for customers to be allowed to self-declare their retirement age.
They will want to check the plausibility of this though, so if you had a highly physical job such as a firefighter, and you aimed to declare 72 as your retirement age, this wouldn’t necessarily be seen as realistic.
We previously had a case where one of our mortgage advisors in Newcastle where a mortgage lender was actually in agreement to make a 9-year mortgage for a 66-year old accountant, who had declared they were going to retire at the age of 75.
That of course is a pretty extraordinary circumstance that won’t apply to most people, and is not a guarantee that you could do the same thing, though it shows that mortgage lenders can be flexible. To better your chances, you should prove how you are able to afford a mortgage at retirement.
Consumer protections and regulations are in place nowadays to protect consumers and encourage careful lending.
As you get older, there are also many different paths you could take to protect you and your home, such as equity release in Newcastle via taking out a lifetime mortgage, or even an alternative to this such as a retirement interest only or perhaps a term interest only.
A trusted and qualified later life mortgage advisor in Newcastle will be able to take a look at your circumstances and start a conversation with you and your family, if you are nearing the qualifying ages for these mortgage types and would like to go ahead, or even look at alternatives routes.
If you are a first time buyer in Newcastle, or are looking at moving home in Newcastle, please do not hesitate to contact us, or book your free mortgage appointment online, and get in touch with a trusted member of our fast & friendly mortgage advice team.
To understand the features and risks of equity release in Newcastle, lifetime mortgages and later life lending, ask for a personalised illustration.
A lifetime mortgage in Newcastle may impact the value of your estate and it could affect your entitlement to current and future means tested benefits. The loan plus accrued interest will repayable upon death or moving into long term care.
Any homeowner in Newcastle wouldn’t dream that they’ll miss a mortgage payment, but something like an illness or family emergency can occur, causing a financial struggle, especially for those with low-income and minimal savings.
It can be more challenging for those who don’t have any insurance policies in place that could cover their mortgage payments should any unforeseen circumstances occur.
Here, we felt it was best to answer the following questions: what should you do if you are in this situation and think you will miss a mortgage payment, and how can you improve your credit score afterwards?
If you think or know you’re going to miss an upcoming payment on your mortgage, you must inform your lender immediately. Once you have missed a payment, this will instantly show on your credit record, which will heavily impact your ability to remortgage when your old mortgage is coming to its end.
Depending on your lender’s criteria and circumstances, there may be an alternative that can help you avoid missing a payment. Your lender will offer their support and guidance to borrowers going through a difficult time.
There is nothing wrong with feeling embarrassed. Chances are you are not alone – other people will be in a similar or worse situation. You won’t be the last or the first to contact their lender about being in this position.
If you miss one payment on your mortgage then this isn’t the end of the world, although this may have a negative impact on your credit rating, depending on how quickly this is resolved and how well you communicate with your lender.
Generally, if you fail to pay your mortgage, your lender will inform the credit referencing agencies, and this will have a negative impact on your credit score. However, as mentioned above, lenders will usually have a grace period after the payment due date. This will vary from lender to lender.
Your lender will usually try to work with you and help. In some instances they will set up a payment plan, a short term solution that can get you back on track with your payments.
Falling behind on multiple mortgage payments can lead to defaulting on the loan agreement, meaning that your lender could take repossession action. Repossession and eviction is the last resort for any lender, they will usually negotiate with you and help make a repayment agreement. It is recommended to reach out to a Mortgage Advisor in Newcastle prior to taking any payment plans etc.
Our Specialist Mortgage Protection Advisors in Newcastle will give you the option and recommend taking out the relevant insurance to protect you and your family from financial burden during any unforeseen health issues.
Depending on which protection insurance you take out, these will help pay for your mortgage and bills in the event you are off work sick or critically ill.
If you need any additional support or guidance, please get in touch to speak to one of our Specialists Mortgage and Protection Advisors in Newcastle and find out which insurance will benefit you.
You may have heard the term Gazumping before, but you may not be familiar with what exactly it is. Gazumping, is a term that is used to describe an instance in which the seller of the property you are interested in, accepts another offer from someone else before the sale of the property to you is completed.
The word “Gazumping” is believed to be derived from the Yiddish word “Gezumph”, meaning to swindle or cheat someone out of something, used back in the 1920’s. When relating to house buying, the term was much more commonly used during the 1970-80’s.
When we have spoken to customers about this in the past, we have heard outcries from people who think surely, this must be illegal? Unfortunately, this is not the case at all and Gazumping is very much legal, as immoral as it is.
It’s quite a common occurrence, regularly cropping up during peoples home buying process across England and Wales. Why is it the case though? How can a practice like this be legal?
The reason is because until written contracts are exchanged by lawyers, the deals you make with a seller are not legally binding, they have no obligation to hold onto the property for you. Until your deal is completed, everything is essentially just a verbal agreement.
The idea of being Gazumped can understandably be quite a daunting concept for many first time buyers in Newcastle, even if there’s no guarantee of it happening. It’s the idea of possibly losing your dream home. Nobody wants it to happen, especially if you are a part of a property chain.
An aspect that can make it sting even more, is the prospect of you potentially losing money because of Gazumping. You may have paid for property surveys, conveyancing fees and mortgage arrangement fees, which are likely non-refundable.
As touched upon above, the agreement between parties to buy or sell a property will not become a legally binding one, until lawyers perform an exchange of contracts.
This isn’t always quick, as there could be a several week delay between the point of having your offer accepted and the exchange of contracts taking place.
During this particular period, other prospective first time buyers in Newcastle may jump in to make the seller a much better offer on the property, either through speaking to an estate agent or by going directly to the seller.
These deals may be much more preferable, whether it’s a higher purchase price, the promise of a faster sale, or that particular buyer not having the pressure of a property chain. Gazumping as a term, covers any of these offers that the seller accepts whilst you’re going through your mortgage process.
Whether or not the market is a buyers or sellers market may have an impact of your likelihood of being Gazumped by a seller.
If the market is currently a sellers market, that means the market is hot. There’s a strong demand, fewer properties, people want to buy and there may be bidding wars between buyers, thus driving prices up. In this case, Gazumping is more likely, as someone may drop in with a much higher offer.
On the other hand, if the market is currently a buyers market, there’s more houses than buyers, a seller may not be receiving as many offers, therefore you have less chance of someone Gazumping you and you have much more room to negotiate on price.
The delay that occurs between offer acceptance and the exchange of contracts between two parties can be due to having a property survey taken out. This is where your conveyancer will carry out the appropriate searches and you will receive your mortgage offer.
With this in mind, there are a few helpful tips you can use in order to help increase your chances of furthering yourself to mortgage success and avoiding being Gazumped.
There are also a selection of other potentially useful mortgage tips that could really benefit you during your mortgage process and further your chances of obtaining a mortgage.
First of all, as a part of your mortgage offer to the seller, you should ask them to remove the property from the open market. Doing so limits how many people can see the property is for sale, which in turn reduces additional offers being made and thus reduces your chances of being Gazumped.
The seller doesn’t have to agree to do this for you, as once again there is no obligation. That being said, it is quite commonplace these days for sellers to respect this request from a buyer, especially if they haven’t been too fortunate in receiving offers as it is.
Second of all, you could look at putting a lock-in agreement in place, which would see both sides putting down a deposit towards their binding agreement. This would mean that if any one party chose to withdraw or change the deal, the other party would take their deposit.
There can be legal fees involved in setting something like this up, so it may be a costly decision, but you may feel like having this in place is worth the cost for the security it would provide you with during your mortgage process.
Lastly, there may be potential insurance options that you could take out as a means of protecting yourself against the prospect of Gazumping. These policies will pay out if you are Gazumped, protecting you against the possible loss of money, due to fees you have potentially paid throughout your process.
Whilst Gazumping is never guaranteed to be prevented, there is a lot as you have seen, that can help protect a buyer from a higher likelihood of being Gazumped. As a trusted and knowledgeable mortgage broker in Newcastle, we may be able to offer some help.
We pride ourselves on our responsive service, working hard to get our customers through their process as quickly and efficiently as possible, whilst keeping them informed at every stage. This is a benefit to home buyers, as at least as far as things we can control are concerned, we can speed up your process.
In addition to this, we also have the ability to obtain a mortgage agreement in principle for you, typically within 24 hours of your initial appointment. Depending on the time of day you speak to your mortgage advisor, you may even be lucky enough to get this back the same day!
As mentioned above, having this AIP gives you and the seller the confidence that you are able to proceed with a mortgage, as opposed to someone who may have a better deal, but cannot confirm whether they’ll even be eligible for a mortgage.
Book your free mortgage appointment today and we’ll help you along with your mortgage journey, as a first time buyer in Newcastle.
We tend to find we receive loads of enquiries regarding the many different types of mortgage available one of them being cashback mortgages. We aim to answer the most frequent questions about cashback mortgages. These include; will it benefit me in the long term or short term, and how does it compare to my other mortgage options?
With the sheer amount of requests, Mortgage Advisor in Newcastle and managing director Malcolm ‘the Moneyman’ decided to make a video regarding cashback mortgages.
Cashback mortgages are pretty self-explanatory. After paying off your mortgage or after finishing your mortgage term, you will get some cash back.
The amount you get back is a percentage of what you have borrowed like 1 or 2%. Some lenders like to have a fixed price in the contract. Even if you have a long mortgage term, this is a fixed amount, and it will not increase over time.
Cashback mortgages come with both advantages and disadvantages. Such as, some Cashback Mortgages might come with a free property valuation or some fringe benefits.
Cashback Mortgages can be very attractive to customers that are borrowing lower mortgages. You will get some money back plus some benefits on the side. If you are offered a reasonable percentage on your Cashback Mortgage, you should consider taking it up as it may be worth it in the long term.
The only real disadvantage to a cashback mortgage is that they sometimes come with high-interest rates.
Compared to other mortgage options available, Cashback Mortgages are not the most popular. However, they are still worth considering. We still see customers at Newcastlemoneyman looking for Cashback Mortgages, and they are a great backup option if you don’t qualify for your first choices.
If you want a more in-depth viewpoint, be sure to book your free mortgage appointment online or give us a call To speak with a Specialist Mortgage Advisor in Newcastle. Our team will be more than happy to explain the benefits of taking out a Cashback Mortgage and why they could be a suitable option for you.
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.
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.
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.
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.
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.
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.
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);
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.
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 are more common than you think. As a Mortgage Broker in Newcastle, we frequently see applicants facing all different kinds of mortgage hurdles. Some of them will be more common than others, therefore we can advise how to solve these quickly, whereas others can be more complicated and require an in-depth look to solve the problem.
Our team loves a challenge. We’re offering you a helping hand to get you over your mortgage hurdles in Newcastle. Your mortgage hurdles may not be the same as someone else’s, however, we do regularly see some of the situations:
From 20+ years of industry experience, we can say that it’s extremely rare to be declined a mortgage due to childcare costs. Although expensive, lenders will usually give you some leeway when it comes to childcare costs and mortgage affordability. You have to remember that they have a duty to make sure that you can afford a mortgage and raise a child; to combat this, they may offer you a lower mortgage amount.
Someone in the same financial situation as you but does not have children may be offered a higher mortgage amount. Don’t see this is as unfair; lenders should still lend to you, it’s likely that they’re just factoring in child benefits and state benefits into account.
Unfortunately, one of the most common mortgage hurdles that we come across in Newcastle, is a mortgage following a divorce or separation. In most cases, finances are the first thing that you need to sort out following a divorce or separation.
There are three questions we’re frequently asked about this mortgage hurdle:
The answer to all of these questions is yes, you can do all of these, however, you may need assistance from a mortgage expert to do so. These subject areas are very specialist and it may take a professional to help you get by them.
We know that these situations are hard and you want it to be over as quickly as possible, however, it’s also important that we get it right and you get over the hurdles with no repercussions and a new mortgage deal that you’re happy with.
It’s not unusual for someone to want to take out a mortgage upon starting a new job. The deposit is not the problem. Usually, the applicant has either built up savings or are moving home in Newcastle and will have the funds from the sale to put towards the deposit. It’s the recurring monthly payments that the lender will be wary about.
If you are due to start a new job soon, you may be able to get a mortgage pre-hand if you have already signed a contract and had a job offer. Typically, lenders are okay with probationary periods, although, they will be cautious.
Gaps in employment can often be a worry. You want to show your lender that you’re reliable and will be able to meet your monthly payments. Regularly being unemployed with no income is a warning sign for them.
Proving your mortgage deposit can sometimes be the hardest yet simplest part of the process. This is mostly down to strict anti-money laundering measures. You will always be asked to evidence where you got your deposit from, it’s an essential part of your mortgage process.
Depositing large amounts of cash into your bank will be questioned by your lender. If you cannot prove how you received this money, your application may be rejected.
If your deposit or a portion of it has been gifted to you, it’s advised that the money is kept inside the gifter’s account. This allows your lender to easily monitor the money see exactly where the money is coming from.
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.
In some cases, a practical way to get on the property ladder as a first time buyer in Newcastle or home mover in Newcastle could be buying a home with a friend or partner. One benefit is that the deposit would be raised quicker and may increase your deposit amount more than if it was from a single income.
As well as this, the costs will be shared, because of there being two incomes. Despite this benefit, it’s key to know that if one defaults, then there is the risk of the other having to be responsible for the full mortgage.
The maximum amount of people that can jointly co-own a property is four. When you jointly co-own a property, you have a legal right to stay in your home unless a court rules otherwise. In the circumstance where one of the parties would like to sell or take out extra borrowing against the property, this is a matter all parties have to consent to unless a court state otherwise.
Civil partnerships or married couples usually prefer joint tenancies. In the unfortunate event that one of the parties passes away, the property will be in possession of the other owner on the mortgage. The law sees joint tenants as one unit, which means you can’t remortgage or sell the property without the agreement of the other owner.
Tenants in common are a more favourable choice for relatives or friends who are buying together. You may jointly own the property, but you do not have to own equal shares. Therefore, you can act individually. This means that you have the right to sell or give away your share of the property. There is a way you can mortgage your share of the property, but it would be difficult to find a lender that will lend in these circumstances.
All borrowers are jointly and severally liable, which is something a mortgage lender will highlight to you. If one of you stops paying your share of the mortgage, then the other(s) will make up the shortfall and pay the full amount.
In the case where a divorce/separation might occur, it’s crucial to understand that all parties are still responsible for any joint financial commitments. It applies even if a person leaves the family home, and this is also the case when the two parties come to an agreement where one person will make all the payments.
It’s best to speak to a specialist mortgage advisor in Newcastle to understand what your options might be. To look into this further, check out our article, “divorce & separation mortgage advice.”
If the consideration of buying a new property in the future should occur, the mortgage payment on the old property would be taken into consideration. In this circumstance, a person must seek out Mortgage Advice in Newcastle. It does depend on how generous the lender is as to how much they will lend, however, our mortgage broker in Newcastle will take this into account when recommending the most appropriate lender to apply for a mortgage agreement in principle.
Here are some of the reasons why a homeowner might be needing two different mortgages:
If you have a substantial amount of equity built-up in your home and are looking for a second mortgage to release some of this, as a means of funding the purchase of a new home, or home improvements on another property in your portfolio, then this is definitely something an experienced mortgage advice team in Newcastle, like ourselves, can take a look at.
Quite often you’ll find towards the back end of your mortgage, you’ll be heading onto, or potentially already are on a lenders Standard Variable Rate (SVR). Our team of advisors are able to shop around and find a potentially more competitive deal, whilst also giving you the option to release capital. A further advance with your current lender could also potentially be an option for you.
If you are looking at the possibility of moving house but maintaining ownership of your existing property with the purpose of letting it out, this is another instance wherein a second mortgage would be applicable. Your second mortgage will be a new residential one, taken out on a property after raising the funds from renting out the previous home. This particular type of process is known as a Let to Buy and has become particularly popular over time.
In some cases, a homeowner may look to release the equity that is sitting in their property, using that supplemented income to either buyan additional property to add to their portfolio. We have spoken to many customers over the year who have been looking to do this and are ready, willing and able to help you out with a mortgage for this purpose.
Rules vary on taking out a second mortgage to purchase a home for your child. The more commonly seen situation is where a homeowner may wish to take out a remortgage to release equity as a means of gifting their child a substantial deposit. This is a widely popular option that has seen many First-Time Buyers who otherwise wouldn’t have gotten on the property ladder, find their dream homes and settle down.
Other circumstances where a second mortgage may apply, could be through financial complications present with a divorce or separation. You may not always be able to get out of your joint mortgage straight away, if at all, but may wish to take out a mortgage on a home of your own once you’ve moved out. This is a situation that we come across on a regular basis and often have the ability to help with.
Whatever the circumstances surrounding your financial position and need for a second mortgage, being an Experienced Buy-to-Let Mortgage Broker we may be able to help you achieve what you’re looking to do. Our mortgage advisors in Newcastle will search through thousands of mortgage deals to find the right one for you and your personal situation.