Shared Ownership is a Government scheme that allows homebuyers to take out a mortgage on a percentage of a property. The government introduced the scheme to help those struggling to save for a mortgage deposit.
If you are hoping to move up the property ladder within the next year, this scheme could provide the boost that you need.
When you purchase a home using the Shared Ownership Scheme, you’ll only be purchasing a percentage of the property value, which can vary from 10-75%. The mortgage you take out will only cover the percentage you are purchasing, not the full value of the property.
The costs balance out; think that your mortgage payments are going towards a percentage of the property that you own. If you own 25% of the property, your repayments are based on this amount and your rent is based on the 75% that you do not own.
A bonus to the Shared Ownership Scheme is that you only put down a deposit on the percentage that you are buying. If you are looking to take out a 25% share in a property valued at £200,000, you would be taking out a £50,000 mortgage and therefore, your initial deposit could be as little as £5,000.
This is a great perk to utilising Shared Ownership in Newcastle; it helps those struggling to save for a deposit move into a new property.
To qualify for the Shared Ownership Scheme, your household income must be less than £80,000. You must also not be able to afford all of the deposit and mortgage payments for a home that meets your needs.
Unlike other Government schemes, Shared Ownership is available to all types of buyers, not just exclusively first time buyers in Newcastle. This means that if you are moving home in Newcastle and need help saving for a deposit, you could utilise this scheme to give yourself the boost that you need.
If you are looking to own 100% of your property, you should consider ‘staircasing’. Staircasing is where you increase your percentage share in the property over time. Usually, you can increase the percentage that you own as and when you come into the funds.
Remember that because your share is increasing, your rent payments will reduce but your mortgage payments will increase.
If you have found that living in a Shared Ownership property is not right for you and you want to move out, selling up is not as easy as it is when you have 100% ownership over a property.
Whether or not you can sell your home entirely depends on how many shares of the property you own. Typically, you need to own the whole 100% before being able to sell it.
It is important to note, however, that the housing association will usually have ‘first refusal’ rights, for the first 21 years after you have bought the home. This means they are, by law, able to make an offer to buy the property themselves, before you put it on the open market.
If you do not own 100% of the property, you will have to look at purchasing the remaining shares of the property in order to then look at selling it.
Everyone’s situation is different and there is no way for us to determine your suitability without you getting in touch. Our mortgage advisors in Newcastle have been working with Shared Ownership applicants for many years now, and we are able to our full support throughout your entire mortgage journey.
Shared Ownership in Newcastle can be made easier when conversing with a mortgage broker in Newcastle. You can book your free mortgage appointment with a mortgage advisor in Newcastle for free! Head to our online booking area and select a date and time that suits you best.
A mortgage broker in Newcastle is a type of business that specialises in arranging or negotiating mortgages on behalf of customers who are homeowners, home buyers, or landlords.
Essentially, they act as intermediaries between the borrower and the mortgage lender, working to secure the most suitable mortgage for their customers’ needs.
When someone takes out a mortgage, they are borrowing money from a mortgage lender, which is then secured against their property. The borrower then pays back the loan over a set period of time through monthly payments.
A mortgage broker in Newcastle’s role is to help their customers look at the various types of mortgages available, compare rates and terms from different mortgage lenders, and ultimately secure the best possible deal for them.
When it comes to obtaining a mortgage, a homeowner, home buyer or landlord can choose to search for and arrange their own mortgage, though generally it is more common for them to seek the help of a mortgage broker in Newcastle, due to the broad range of services they offer.
One of the most important services provided by a mortgage broker in Newcastle is the ability to compare your circumstances against thousands of products, from various mortgage lenders. In contrast, going directly to a bank limits you only to their specific deals.
Although the best deal with that mortgage lender may be the best option for you, though this is not always guaranteed. A mortgage broker in Newcastle can often offer exclusive deals and make comparisons for you, ensuring that you obtain the best deal available, across all mortgage lenders.
The responsibilities of a mortgage broker in Newcastle extend beyond that, as they are involved in various tasks before, during and after the mortgage process. The services provided may differ from one broker to another.
At our company, for example, we specialise in recommending suitable insurance options for homeowners. While it is an optional extra cost, our mortgage and protection advisors have a responsibility to guarantee that you can remain in your home, regardless of any unforeseen circumstances.
When you first start the mortgage process, you will usually be in contact with a mortgage broker in Newcastle’s appointment booking team. They will gather some initial information from you and help you find a suitable time to speak with a mortgage advisor in Newcastle that works around your busy schedule.
Alternatively, you can book an appointment directly through the website of many mortgage brokers in Newcastle, including our own.
This is often done through a user-friendly appointment booking system where you can choose between telephone or video calls, bypassing the need to speak with anyone before your appointment.
During your appointment with your mortgage advisor in Newcastle, you will provide them with more detailed information to help them better understand your financial situation and goals. They will then look at a range of mortgage deals and recommend the most suitable option for you.
Some mortgage brokers in Newcastle have access to a limited number of niche mortgage lenders, while others have a larger panel of mortgage lenders, like us.
Although we’re not whole of market, we have a wide range of mortgage products available, from standard to specialist. Once your mortgage advisor in Newcastle has found a deal you’re happy with, they will look to secure you an agreement in principle (AIP), which confirms your mortgage eligibility.
An AIP is typically required by estate agents when you make an offer on a property and shows the seller that you are committed to your offer and financially capable of proceeding with the sale.
At this point, you will also need to submit your documents to your mortgage broker in Newcastle, which can vary depending on the mortgage lender and your individual circumstances.
Standard documents usually include proof of ID, income, and deposit, as well as the last three months’ bank statements and payslips. If you are a foreign national, you will also need to provide proof of VISA or the right to work in the UK, which can typically be done with a share code, if you migrated from the EU.
Depending on your circumstances, you may also need to provide additional documents such as a P60, business bank statements and tax calculations/year overviews if you are self-employed, or an employment contract if it is applicable to your line of work.
Once the previous steps have been completed, a mortgage broker in Newcastle will typically review and verify your documents before providing you with a mortgage illustration that outlines the agreed-upon deal, before submitting it to the mortgage lender.
After the submission, the waiting game begins for you until the mortgage lender gets back in touch with your mortgage broker in Newcastle to confirm whether or not you have been approved for the mortgage.
The work doesn’t stop there, as mortgage advisors in Newcastle and administrators still have their own steps to complete. They’ll send copies of your documents to the mortgage lender and work with solicitors
During this time, our mortgage advice team will be available to advise you on property surveys. You can typically choose from three types of property surveys: basic valuation, homebuyer’s valuation, and full structural survey.
Similar to how they recommended a mortgage deal during your initial mortgage appointment, our team will be able to best recommend which property survey you will need to take out.
Whilst you wait for the end result of your mortgage application process, you may have questions or concerns about what is happening. A mortgage advisor in Newcastle will keep you regularly informed, often via email, so that you are never left in the dark regarding your mortgage progress.
In due course, the mortgage lender will provide you with the outcome of your mortgage application, hopefully, a positive one. If your application is approved, you will receive a formal mortgage offer.
After this, your solicitors will take over to complete the necessary legal work and finalize your mortgage deal, allowing you to enjoy your new property. Nevertheless, a mortgage broker in Newcastle can still offer further assistance.
At Newcastlemoneyman, we go the extra mile by getting in touch with our clients about six months before their mortgage deal expires. If you previously took out a mortgage with us, we will offer you remortgage advice and assist you in taking the next step towards owning a property.
There are various ways in which a mortgage broker in Newcastle can help a mortgage applicant. For instance, they can save them both time and money by streamlining the mortgage process and minimising stress levels.
Additionally, mortgage brokers in Newcastle can offer a broader range of mortgage deals, including exclusive and specialised options. At Newcastlemoneyman, we prioritise our customers’ best interests and work hard to save them money and to help secure their financial future.
Our customer reviews show our commitment to building long-lasting relationships and going above and beyond for our customers. We also strive to reduce our customers’ costs and fees by negotiating with mortgage lenders or incorporating fees into their mortgage balance.
During our free mortgage appointment, our mortgage advice team will discuss all costs and fees involved in the mortgage process to ensure transparency and avoid surprises down the road.
If you are looking to save time, money, stress, and worries by having an experienced mortgage professional handle the bulk of the work, then hiring a mortgage broker in Newcastle may be the right choice for you.
At Newcastlemoneyman, we specialise in providing expert mortgage advice in Newcastle to a diverse range of applicants, including those looking at first time buyer mortgages in Newcastle, buy to let mortgages in Newcastle, and more.
To speak with one of our mortgage advisors in Newcastle, simply use our online booking feature to schedule a free mortgage appointment or remortgage review with a dedicated expert. Contact us today to see how we can help you achieve your mortgage goals.
The government found that these schemes were becoming more and more popular so began creating more schemes to try and help struggling applicants get onto the property ladder. Although most of the schemes target first time buyers, they created a new scheme that was exclusively aimed at armed forces personnel. This scheme also comes under the ‘Help to Buy’ umbrella, being named the Help to Buy Armed Forces scheme.
The scheme is quite simple. It allows regular or retired armed force personnel to borrow up to 50% of their salary, interest-free, to buy a home. This can be used to purchase your first home or to move home if you are assigned to a different location or your family circumstances have changed.
From 1 January 2023, The Forces Help to Buy Scheme will become an enduring policy, ensuring its availability to all service personnel now and in the future. The scheme has an aim to address the low rate of homeownership amongst armed forces personnel.
However, there are some limitations to the scheme. You can only access the scheme if you’ve completed your pre-requisite length of service, have more than 6 months left to serve at the time that you apply or if you match the correct medical categories.
There may be some scenarios where there are exceptions to the who can and who can’t access the scheme. Usually, this relates to personal circumstances or other medical conditions.
Strictly, you can only borrow up to 50% of your annual salary, with the maximum being £25,000. It’s likely that this is going to be more than enough for a deposit, so you can use the rest on other expenses, e.g. solicitor, surveyor or estate agency fees.
As a mortgage broker in Newcastle, we do offer our help in getting a mortgage through the Help to Buy Armed Forces scheme. Alternatively, you can seek advice by approaching your chain of command or personnel agency.
If you are interested in the Armed Forces scheme, feel free to get in touch with our team for Help to Buy mortgage advice in Newcastle. If you’ve previously owned a property, it may be worth getting in touch to see whether you qualify or not. Even if you are a first time buyer in Newcastle, it may be worth checking anyway!
Following the credit crunch in 2008, the government proposed a plan to help the mortgage market get back up on its feet. Part of the plan included the introduction of the Help to Buy schemes.
Help to Buy schemes are quite self-explanatory, they are government-led schemes that Help you to Buy a property. There are limitations to each scheme and you’ll have to qualify for them first before you can take advantage of them.
Each scheme is different in its own way. Depending on your personal and financial situation, you may match for more than one scheme, however, you’ll probably only ever find one most beneficial for you.
The Help to Buy Shared Ownership scheme is very different to the rest of the government schemes. The scheme allows applicants to own part of a property and then pay the rest back on rent.
For Shared Ownership, you will usually own between 25% and 75% of the property. In some cases, we’ve seen applicants being allowed to purchase as little as 10%. Whatever the percentage is that you don’t own, it will likely be owned by the housing association. The share that you own can be increased earlier. we usually find applicants wanting to do this once they have more money or have settled in.
Shared Ownership lets you pay your mortgage as well as rent. The way that this works is that you essentially pay 100% of the ground rent and service charge on the property. This is still the same, even if you only own a 25% share of the property.
From 1 January 2023, The Forces Help to Buy Scheme becomes an enduring policy, ensuring its availability to all service personnel now and in the future. Introducing this scheme created an even better way for Armed Forces personnel to get onto the property ladder, as the scheme is specifically targeted at them.
You have to qualify for the scheme first before you can access it. The requirements are as follows:
– You have to have completed the pre-requisite length of service
– You can also apply if you have at least 6 months of serving time left
– However, you can also get accepted if you fit into the right medical categories
– Your personal circumstances will also be considered
The scheme allows you to borrow up to 50% of your annual salary; the maximum that you can borrow being £25,000. If you want to learn more about the Armed Forces Helpt to Buy scheme, you should check on the government’s website. Alternatively, you get in touch with a Mortgage Broker in Newcastle like ourselves.
We’ve considered this more of a ‘bonus’ scheme because it isn’t a Help to Buy scheme it’s a government-led scheme. The scheme can be used for one of two, to buy your first home or to save for later in life. As a Mortgage Broker in Newcastle, we offer help and guidance to those looking to utilise this scheme to buy their first property. The video below explains how the scheme can help a first time buyer in Newcastle like you.
The Lifetime ISA (Independent Savings Account) is simply a savings account where your money grows tax-free. The total amount that you put in each year will be topped by the government up by an extra 25%. The maximum that you can put into the account each year is £4,000. This means that you get an extra £1,000 if you manage to save £4,000 each year.
If you want to withdraw your money, as long as you’ve had the ISA for a year, you can do so. However, if you take money from the account and don’t use it to purchase your first home, you’ll be charged a 25% withdrawal fee. Although, if you decide to use it on your first home, you won’t be charged a single penny.
Of course, you have to pass the scheme’s criteria before you can start your Lifetime ISA account. To find out more, feel free to check out the government’s Lifetime ISA page, or contact us at Newcastlemoneyman. We can’t wait to hear from you and help you through your process.
As a first time buyer in Newcastle, you may find yourself competing with other potential buyers who are looking at the same properties. With this in mind, it is always best to ensure that you are in the best possible position to have your offer accepted.
When it comes to purchasing your home, you will rarely beat a cash buyer – Even if the cash offer is lower than your offer, they are likely to go with this as it means a quicker process and less paperwork. Luckily, you may not come across many cash buyers when searching for your dream home. If you are looking to make the mortgage process even quicker than it otherwise would be, sending the Estate Agent a copy of your Mortgage Agreement in Principle is your safest option.
By doing this, you possibly put yourself ahead of other potential buyers who are less prepared and don’t have this document ready. An Agreement in Principle can be turned around very quickly, often resulting in same day service if your circumstances are straightforward. If you would like assistance in getting this document, Get in Touch and a mortgage advisor in Newcastle will be able to help you out with this.
When buying a house you may find there is a lot of back and forth negotiation. Be very careful as your first offer, if accepted straight away, will most likely be too high! On this basis, we often find that our customers’ original offer will be turned down by the seller. It’s always a good idea to offer a bit less than you’d be happy to pay, as Estate Agents have been known to push an increase on your offer.
If the seller won’t budge from their original asking price, it’s up to you to decide whether or not you are willing to meet their asking price. If the property you are applying for is new to the market and you can’t negotiate a deal with the Estate Agent, then it may be worth your time to walk away and look for another property.
If you are unsure about whether the asking price is right or not, you can always check sold prices on Zoopla and Rightmove to get a rough idea of what it should be. These websites draw data from the Land Registry which means that they are providing you with reliable information. Sometimes, you may see a house on the same street at a much lower price than the one you are looking at purchasing. Don’t worry though, as there will be a reason that this house sold for less.
These can include;
As part of our service, we offer expert first time buyer mortgage advice in Newcastle regarding your offering strategy. We know that this process may be nerve-wracking, though it can also be exciting, and we are here to help you along this journey.
Maintaining a good credit score is essential when applying for a mortgage, as it demonstrates to the mortgage lender that you are a responsible borrower and can manage your finances well.
A credit score is a numerical representation of your credit history, taking into account your payment history, credit, length of credit history, and types of credit accounts.
As a first time buyer in Newcastle, it’s important to check your credit score before applying for a mortgage. You can obtain a copy of your credit report for free from credit reference agencies like Experian and Equifax.
It’s a good idea to review your credit report and check for any errors or discrepancies that could negatively impact your score. If you have a low credit score, it may be more difficult to get approved for a mortgage, or you may be offered a less favourable rate of interest.
That said, it’s still possible to get a mortgage with a low credit score. You will need the help of a trusted and dedicated mortgage advisor in Newcastle, however, who can help you understand your options and find a lender that is willing to work with you.
In addition to maintaining a good credit score, there are other factors that mortgage lenders will consider when assessing your application, such as your income, employment history, and the amount of deposit you have available.
At Newcastlemoneyman, our experienced mortgage advisors in Newcastle can help guide you through the mortgage application process, including checking your credit score and finding the most suitable mortgage deal for your individual circumstances.
We work with a wide range of mortgage lenders and can help increase your chances of getting approved for a mortgage, even if you have a low credit score.
During the mortgage application process, it’s important to be aware of the impact of credit searches on your credit score. Mortgage lenders may conduct either a hard search, which is more detailed and may impact your credit score, or a soft search, which has no impact on your credit score.
It’s also worth noting that price comparison sites may conduct their own credit searches, which could further affect your credit score. It’s recommended to be cautious when using such sites and to avoid applying for additional credit during the mortgage application process.
While having a credit history and making regular repayments can have a positive impact on your credit score in the long run, it’s a good idea to cancel any unused credit cards.
This can streamline your finances and prevent the amount of credit you have from working against you when it comes to the mortgage application process.
Being registered on the electoral roll is a key factor in improving your credit score and increasing your chances of getting approved for a mortgage.
This is because it shows mortgage lenders that you have a level of personal stability and a permanent residence. By being registered, you are confirming your identity and address, which helps prevent fraud and identity theft.
It’s important to ensure that your details are correct and up to date on the electoral roll, as errors or inconsistencies can negatively impact your credit score. You should check that your name is spelled correctly and that your address is accurate and complete.
If you’re not already registered on the electoral roll, it’s a simple process that can be completed online in just a few minutes. You can visit the official government website to register, and you’ll need to provide some personal information, such as your name, address, date of birth, and national insurance number.
Once you’ve registered, it’s important to keep your details up to date, especially if you move house or change your name. You can update your details online or by contacting your local council’s electoral registration office.
Overall, being registered on the electoral roll is a small but important step towards improving your credit score and increasing your chances of getting approved for a mortgage. It’s a simple process that can be completed quickly and easily, and it can make a big difference in your financial life.
Using a credit card can be a convenient and efficient way to manage your finances. It can also be beneficial for your credit score if used responsibly. That being said, it is important to avoid maxing out your credit card as this can negatively impact your credit score.
If you constantly max out your credit card each month, mortgage lenders may see this as a red flag and view you as a high-risk borrower. This can lead to a rejection of your mortgage application or result in you receiving less favourable interest rates.
On the other hand, if you have a higher credit balance and are not using too much of your available credit, it may seem like you are being responsible with your finances. This may not always be the case, however.
Mortgage lenders will also assess your ability to make repayments and manage your finances responsibly. If you have exceeded your agreed card limits or gone into overdraft, it may signal to mortgage lenders that you are not financially responsible.
In summary, using a credit card can be beneficial for your credit score, but it’s important to use it responsibly and avoid maxing out. Mortgage lenders will look at your overall financial situation and assess your ability to manage your finances responsibly before approving your mortgage application.
Having outdated or inconsistent address information can create confusion and raise red flags for mortgage lenders.
If you have failed to update your address everywhere, it may give the impression that you are living in two different places at the same time, which can be a cause for concern for lenders.
It’s important to keep your address information up to date not only on official documents such as your driving license, but also with all of your creditors, such as credit card companies, banks, and utility providers.
Inconsistencies or outdated information can cause delays or even lead to a rejection of your mortgage application.
When updating your address information, make sure to spell everything correctly and include the full address, including apartment or unit numbers if applicable.
This can be especially tricky if you have previously lived in a flat or apartment, as the address format may vary depending on the system used by different lenders or credit reference agencies.
To avoid any potential issues, it’s a good idea to double-check all of your address information with each creditor and credit reference agency, and to make sure that all of your accounts are linked to the correct address.
Keeping your address information consistent and up to date will help to ensure a smooth and successful mortgage application process.
To ensure the security of your finances, it’s recommended to close any older credit cards or store cards that are no longer in use. Contacting the providers and closing these accounts will streamline your finances and minimise the risk of fraud.
It’s important to note though, that closing these accounts may have a short-term impact on your credit score, as the mortgage lender won’t be able to see who initiated the account closure.
This could raise some initial concerns for the mortgage lender, as it’s possible that the account was closed by the provider rather than you.
In the long run, closing these accounts is still the best option as it helps to prevent any unauthorised activity on these accounts.
Additionally, having too many open accounts can also negatively impact your credit score. Therefore, it’s best to keep your accounts to a minimum and only keep the ones that you use regularly.
Having financial ties with family members or ex-partners can negatively impact your credit score. If the other party fails to make payments, your credit score will be affected due to the shared financial responsibility.
Removing the financial association is important to protect your credit score. Whilst this is the case though, this may not be possible to do so if the account is still active. In such cases, contacting the credit reference agencies and requesting to remove the association is crucial.
The sooner you remove the financial link, the better it is for your credit score. It is essential to keep your credit report up to date when applying for a mortgage, especially if you are a first time buyer in Newcastle. This increases your chances of getting approved for a mortgage.
While some customers may view credit scoring as an unfair way to evaluate applications, it simplifies the process for mortgage lenders and provides consistent outcomes. It is a cost-effective and reliable way to assess applications.
To streamline your mortgage application process, provide your specialist mortgage advisor in Newcastle with as much relevant information as possible. This allows them to provide you with the best deal available, increasing your chances of a successful application.