Buying a Property With a Partner or Friend in Durham?

Buying a Property with Others in Durham

Stepping into the mortgage world for the first time can be an intimidating but exciting experience for a number of home buyers even more for those looking to purchase a property on their own.

As an alternative, we do find that many First Time Buyers in Durham look at purchasing a property with a friend or partner if they are able to do so.

Lenders will factor in both your income as well as your co-borrowers’ so they can work out your maximum mortgage amount. The benefit of having two applicants is that the mortgage costs will be split between you both which, in turn, can help increase your chance of getting offered.

In the event that you default, your co-borrower could be responsible for the full mortgage, and vice versa.

With the help and expertise of being a First Time Buyer Mortgage Broker in Durham, we have collated a guide of helpful tips we recommend you take into account when into a property with a friend or partner.

How many people can jointly own a property?

Some lenders may allow you to co-borrow with up to four people jointly.

This may seem like a safe option with multiple parties creating more financial security when paying the mortgage, however, the chances of someone pulling out before the term ends can be higher. Because of this, it is wise to be selective with who you buy a property.

If you decide that you want to increase your mortgage further down the line, you and your co-borrowers will all have to agree to this. Therefore, it’s good to plan ahead for your future and your plans for the property.

Joint tenancy or tenancy in common – what’s the difference?

Normally, joint tenancies are utilised by many civil partnerships or married couples. In the case where half of the party dies, the property would instantly be given to the other half. From a legal perspective, joint tenants are two halves of one whole, one borrower.

When it comes to remortgaging or selling the property, both of you will need to agree before proceeding with the mortgage.

For applicants that have co-borrowers that are friends or family, it is likely that you will go for the option of ‘Tenancy in Common’. This means that you both own your part of the property.

You do not need to split your share equally so if one of you is making a lot more income than the other, you will own more of the property than the other.

With this in mind, as a ‘Tenant in Common’, you have the right to act independently. This gives you the option to sell or give away your share if you wish.

Joint mortgages & removing names

What happens if you jointly own a mortgage, but your co-borrower(s) stop meeting the mortgage payments?

A mortgage lender will stress the fact that all borrowers are jointly and severally liable which means that if one of your bo-borrowers decides not to pay their part of the mortgage, it’s your responsibility to keep up the payments.

How do I remove my ex-husband/wife from my mortgage?

The intention of looking to buy a home with your then other half doesn’t come with the assumption that you’re going to split before the term is up. It is a large financial commitment to make anyway and can become complex if you are wanting to make any changes.

This can become even more of a challenge when children are involved. In most cases, the parent who will stay with them usually stays in the current property whilst their ex-partner moves out to look possibly look for their own mortgage. Regardless of if you are staying or going, both parties will need the help of a Mortgage Advisor in Durham for divorce and separation.

Whether the situation is that you pay for the mortgage with the assistance of your ex or you pay the mortgage on your own, it doesn’t alter the joint financial commitment you have with them. Therefore, in the event of arrears, the lender will chase both parties.

Removing anyone from a mortgage means that only you will be in charge of paying and managing the payments. From a lender’s point of view, they will need to be confident that you are able to manage these mortgage payments so will reassess your income to make sure this is achievable before they will proceed.

We do find that applicants who are unable to afford a mortgage on their own will go down the route where they apply jointly again with a friend, family member or new partner. These situations will be best with the assistance of Mortgage Advice in Durham.

How do I remove my name from my ex-partner’s mortgage?

As mentioned, when it comes to divorcing or separating your partner whilst on a mortgage, both parties are still jointly liable for the property and its mortgage payments.

In the circumstance where you are the one to leave and wanted to remove your own name from their mortgage, it’s not as simple as coming to an agreement between the two of you, they would need to get in touch with their lender.

For those looking to get a mortgage on their own, the lender would take into consideration the property you are currently tied to, so it’s key to make sure that you are removed from the previous mortgage.

In these circumstances, you should always seek Mortgage Advice in Durham.

When it comes to the amount they will be willing to lend you, you will find that some lenders will be more generous than other lenders. This is something your designated Mortgage Advisor in Durham will factor in when recommending the most appropriate mortgage lender to apply for a Mortgage Agreement in Principle with.

First Time Buyer Mortgage Advice in Durham

Fixed-Rate Mortgages | Mortgage Advice in Durham

Fixed-rate mortgage advice in Durham

When you enter the mortgage world, you will find that there is not just one mortgage for everyone. They vary depending on different circumstances with some being more complex than others. In this article, we will be looking at just one of the types of mortgage, fixed-rate mortgages. This one has increased in popularity over the years and is seen to be the most common one.

What is a fixed-rate mortgage?

As stated in the name, a fixed-rate mortgage is where you are taking out a fixed-rate mortgage where your interest will be consistent throughout your mortgage term.

The duration of the mortgage term can vary depending on the deal you are on. It also depends on how long you fix your deal.

For example, the lowest-terms usually have the lowest interest rates. Even though this is good, it does mean you will need to renew your mortgage product via a Remortgage in Durham more often.

This is one of the reasons why fixing your mortgage deal over a lengthy period on a fixed-rate mortgage can be more beneficial.

Medium & long term fixed mortgages

It’s all down to whether or you are willing to look for a new fixed-rate deal every two to three years or not. A medium to long-term product is perfect for those who don’t want to frequently search for new deals. Like with many financial commitments, you will need to look at your current and future financial circumstances when deciding the duration you’re going to fix your mortgage for.

One of the popular choices amongst fixed rates is five-year fixed rates with one of the reasons being the security of consistent monthly payments. On the other hand, there are some negatives to this. If the interest rates drop when you are locked in, this will result in paying more than you would’ve been had you taken out a product with a shorter term.

It can be possible for you to fix in your mortgage for an even longer period of time if you feel this is the best option for you. In many cases, the options are limited, but you can find seven to ten-year fixed products. You may find these types of products aren’t usually very popular because you’re committing to a product for a whole decade! Within this time, better rates are usually to come available. Keep in mind that these are usually the most expensive fixed-rate products available to customers.

Fees to consider

Booking and mortgage arrangement fees

Along with interest rates and payments, you will have to factor in mortgage arrangements and booking fees.

It is likely that a booking fee would be charged if you do attend an appointment with a Mortgage Advisor in Durham. Unlike some mortgage brokers, we do not charge a booking fee, we offer all our customers a free mortgage appointment.

You will be charged upon completion, therefore, for those you take out short, fixed-term products, it could result in you accumulating a large number of costs just for sorting your mortgage. Whereas, with a medium fixed-term mortgage, you won’t be required to constantly pay for arrangement fees.

Early repayment charges

Also known as ERC’s, you can receive an Early Repayment Charge when you overpay your mortgage or pay back your mortgage too early.

In some cases, people forget about ERC’s or overpay by accident, while some overpay on purpose. This is just one of the cases where the positives of overpaying can sometimes outweigh the negatives.

When your fixed-mortgage term is coming to an end, you may find that there are much better interest rates already available. This where overpaying and receiving an ERC can be beneficial as you are accessing them better rates. In circumstances where it’s a limited product offer that you have received or a deal that you have found and you want to lock into right away, this is where an ERC can be helpful in the long run.

Normally, ERC’s aren’t too costly. The amount you will be charge is calculated by the remaining amount left on your mortgage. For example, if you have a total of £80,000 left on your mortgage and the ERC is 2%, you’ll receive a £1,600 early repayment fine. Overall, this figure does not seem too bad.

Our advice

Before you fo jump into a deal, as an expert Mortgage Broker in Durham, we do recommend you carry out some research. One thing that is best to avoid doing is going for ‘headline’ deals as these are a way to mislead with their cheap rates but the high arrangement fees!

Seeking Remortgage Advice in Durham can help you secure great fixed-rate mortgage products. As well as this, it can also provide you with further information on ways to save costs on various fees that are a part of getting a mortgage. Contact us to speak to one of our hard-working Mortgage Advisors in Durham.

To learn more about the other mortgage types out there, check out our article on the ‘different types of mortgage in Durham’.

The Pros and Cons of Using a Mortgage Broker in Durham

There are many reasons why you should use a Mortgage Broker in Durham. It can be helpful if you are taking that first step into the mortgage world, or going through the process the second time as you come towards the end of your fixed term as the process can be daunting sometimes.

With many options available for homeowners and home buyers, you ideally want to get it right first time, even with a lot of money involved.

Obviously, we believe that our tailored service as a Mortgage Broker in Durham would be helpful during the mortgage journey, in particular, First Time Buyers in Durham.

Even though we are experts in assisting customers through the process, it’s also understandable that the service is not for everyone and some may still wonder how we can help.

With this in mind, we have created a helpful guide about why approaching a Mortgage Broker in Durham could benefit you in your situation and why some people decide to go direct to the mortgage lender instead.

What are the pros & cons of using a mortgage broker in Durham?

Cost-Effectiveness

Deciding to go direct with the mortgage lender and finding your own mortgage deal can save you more money than approaching a Mortgage Broker in Durham. However, mortgage brokers may charge a fee but can be based on circumstances.

Being experienced in going through the process, having an easy case and lengthy knowledge may mean that it’s best and cheaper to go through the process yourself. This can be an issue if you have a more complicated case and people who don’t understand the lender criteria.

Going through the mortgage process with little to no knowledge could either result in you being on the wrong deal or ending up unsuccessful when applying for a mortgage deal. Either circumstance could mean spending more money than you have to, or damage your credit score which could negatively effect your chances of applying for a mortgage further down the line.

A dedicated Mortgage Advisor in Durham strives in getting your recommendation right the first time by finding you the best and cheapest deal on offer. As much as this service comes with a fee, you could find that you save a lot of money in the end.

Local Bank Branch Relationships

One of the reasons why many older customers decide to approach a bank is due to how the mortgage process was previously run. Prior to the introduction of online banking apps and modern technology, as a loyal customer, you may approach your local branch a lot where you would speak to the same people.

If you were looking to get a mortgage, you would go through the bank manager and speak to them. They had extensive knowledge of your finances and would be the ones to approve a mortgage for you. Now, many things are done digital including credit scoring.

Because of advanced technology within these banks, it means that the bank manager would not personally go through your case. It would be carried out through an online system which will determine if you are eligible for a mortgage or not. Regardless of what bank you are with, everyone is treated fairly.

Exclusive Mortgage Products

Following on from the previous point, there is an assumption amongst people that going direct would mean they are open to the best and exclusive deals. This is true to an extent, however, they will offer the best deal from their own company.

Not every mortgage lender is a bank and there is a large variety of options to choose from. Therefore, the most suitable deal your bank can offer, might not be the best one for you outside that bank.

This is another reason why taking out tailored Mortgage Advice in Durham can be a huge benefit to you. With an expert advisor by your side, they will be able to go through your case and find you the deal amongst our large panel of lenders that is perfect for your circumstance.

On the topic of exclusivity, approaching a Mortgage Broker in Durham can give you access to deals that you can’t find anywhere else. If you are a first time buyer, looking to remortgage in Durham or have a specialist case, there are many options available to you through an expert mortgage broker.

Changes to Regulation & Consumer Protection

After the 2007-08 credit crunch, the mortgage market needed to change. The 2014 Mortgage Market Review, stated that lenders could not sell mortgages to their customers without regulated advice.

This policy meant you couldn’t just approach a bank to tell them you want a mortgage and be accepted without the important checks. Furthermore, it meant that you couldn’t be granted a mortgage by any member of the bank, which was a regular occurrence, regardless of if they were qualified to do so or not.

Along with these new policies, consumer protection was introduced which was initially not provided to you by the bank. This means that you, as the customer, as the right to complain to the Financial Ombudsman if you feel misadvised in any way. The Financial Services Compensation Scheme is also available to you to make a claim.

Having this in place can assure customers who approach both mortgage brokers and mortgage lenders that they are in safe hands and are receiving professional and regulated advice.

Booking an Appointment with a Mortgage Advisor in Durham

One factor which can be a disadvantage to mortgage lenders but is beneficial to mortgage broker is that it can sometimes take months to try and speak to an individual at a bank. Whereas, getting in touch with a Mortgage Broker in Durham, like ourselves, can provide you with a more quick and responsive service that keeps you updated constantly about your mortgage process.

We are proud to offer a tailored service where a member of our team will contact you at a time that is best for you and your lifestyle. From morning, until late, 7 days a week, our expert Mortgage Advisors are here to help. This can sometimes include bank holidays!

Depending on availability, you may be able to book yourself in and have the appointment on the same day! However, it’s up to you if you want to speak to someone today or in a few days time.

As a part of our tailored service, our advisors have flexible availability. This means you can book yourself in around your 9-5 or around any other commitments. Our quick and simple book online system is great if you are on the move and need to book an appointment.

Responsiveness is an important part of Durhammoneyman. Whatever mortgage process you are going through, our friendly team will keep you in the loop. Your advisor will let you know of any changes that could arise.

The public’s views on mortgage brokers has changed due to Mortgage Brokers in Durham, like ourselves, providing an open and honest service to all customers looking to start their mortgage journey.

Handling Complex Scenarios

Through our time providing Mortgage Advice in Durham, we sometimes speak to customers who have a more complex situation than your average case. Below are just a few common situations we have encountered over the years;

• Mixed Deposit (Savings & Gift) – This means auditing two different sources.
• Applicants, who are on zero hour contracts – Will there be a consistent income?
• Making a Second Purchase – Can they afford to make that additional purchase?
• Self-Employed with No Fixed Income – A common 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 previous years, mortgage lenders could easily offer you deal that was better than any other lenders. Now, it’s not all about which deal you go with, it’s if you match the criteria or not.

Even if you find a deal that is reasonable, it doesn’t mean you match the criteria for it. In order to determine this, the lender will perform either a hard search (resulting in a footprint on your credit file? or soft search (leaves less of a footprint on your credit file).

One thing that could damage your credit file is being declined for an agreement in principle when applying for a mortgage. On top of that, if you are declined, it’s very unlikely that you will be given a reason for this which can be frustrating.

If you do speak to a Mortgage Broker in Durham like Durhammoneyman, we will be able to go through your case before, so you are prepared and in a position where you have a better chance of being accepted.

Here at Durhammoneyman, we have a large panel of lenders who offer a range of mortgage products. We will be able to match you up with deals and look to get you an agreement in principle. If you get your agreement in principle through Durhammoneyman, it will usually take no more than 24 hours after your free mortgage appointment.

Remember, having an agreement in principle doesn’t always mean you’re guaranteed to be agreed, nor does it guarantee a mortgage in the end, but it does provide safety for your credit file to have an expert go through your file beforehand. As a Mortgage Advisor in Durham, we always aim to get your recommendation right the first time.

In Conclusion; Should I use a Mortgage Broker in Durham?

At the end of the day, it’s your decision. As mentioned, there many advantages and disadvantages of going with a Mortgage Broker in Durham. On the other hand, there is many pros and cons to going direct as well. It all depends on how quick you want your service to be, and how secure you want to be.

Through our time as a Mortgage Broker in Durham, we have built up a positive reputation and strong relationship with many customers looking to begin their mortgage journey. If you are a first time buyer in Durham, coming to the end of your fixed term, looking to remortgage in Durham, we have done it all!

Here at Durhammoneyman, we offer fast & friendly advice that is FCA regulated. Simply book online or get in touch to book yourself for a free mortgage appointment or remortgage review with one of our brilliant advisors. Our goal is to fulfil your mortgage needs, by providing you with advice, at a time that best suits you, subject to availability.

For more information about our service, check out our fantastic customer reviews. You can have a customer insight on how our service has helped many individuals on their mortgage journey. We also offer free financial education through our YouTube Channel, MoneymanTV.

A Guide to Remortgages in Durham: Top Reasons to Consider

Remortgage Broker in Durham

The mortgage journey can come with its highs and lows, however, the ultimate goal will either involve you settling down in your dream home to start a family perhaps, a step up to get you further up the property ladder or an investment purchase to provide another income source.

Whatever route you may go down, both will eventually come to a point where your mortgage term will end. You might sell up and upsize/downsize into a new property. If you are a landlord, you might want to sell your portfolio to the tenant or another buyer and look at other options. One option that is the most popular is a Remortgage.

What is a Remortgage?

It’s best to start by understanding what a remortgage is. This term is the act of paying off a pre-existing mortgage using a new mortgage. There is a range of options when taking out a Remortgage, some being more major than others.

Below is a quick guide that we compiled that includes all the options you could when it comes to taking out a Remortgage utilising the 20 years plus knowledge of our resident “Moneyman” Malcolm Davidson (host of our YouTube channel MoneymanTV).

Remortgage For Better Interest Rates

So, your initial mortgage deal will usually last 2-5 years and include low fixed rates or possibly discounted rates. There might be a possibility that you will be placed on a tracker mortgage which means the interest rate will go off the Bank of Englands’ base rate.

If you aren’t on a tracker mortgage, you will likely be on the lenders Standard Variable Rate when your term ends. Also known as SVR, this is a mortgage with an interest rate that might change depending on how much the lender wants to charge. Unlike tracker mortgage, this will not follow the Bank of England’s base rate.

These can be seen as more expensive routes to take, which is why a lot of people may look at Remortgaging for better rates in order to potentially save money on their monthly repayments.

Remortgage for Home Improvements

You might find yourself in a position where you are 2-5 years into occupying your home and feel something isn’t right. It might be that you need an extra room or bigger living space for your kids/belongings. It might be some form of renovation such as getting a kitchen, office or loft conversion. In this situation, many look into releasing their equity with a Remortgage to cover the costs instead of to moving into a larger house.

The option to release equity in order to fund/manage your own projects might seem quite intimidating especially when getting planning permissions, however, it can be seen as more rewarding and less stressful in comparison to finding your new home, selling your current one and moving your belongings.

Furthermore, funding towards home projects that could make the house look a lot more impressive and appealing can be beneficial if you will sell it up or rent it out in the future as the property could increase in value.

Remortgage for Changes to Your Term

In some circumstances, many might look at getting a better mortgage term by reducing the length or switching to a more flexible product which is where they could Remortgage in Durham. The longer your term, the lower the payments will be over time. Therefore, reducing the length does mean you won’t be paying back your mortgage for as long so you aren’t exactly tied down forever, however, your monthly repayment will be a lot higher.

An option that provides benefits that can prove endearing to some homeowners is having a more flexible mortgage when they remortgage. This could give you the chance to overpay which could result in paying your mortgage off as quick as you’d like also being able to pass the same mortgage and rates over to another property, if you decide to move at any point in the future.

Although a flexible mortgage might sound perfect, it likely will come in the form of a tracker mortgage. As mentioned before, this mortgage follows the Bank of England base rate. This means that payments could fluctuate on a monthly basis depending on interest, therefore making them a little unreliable.

Remortgage to Release Equity

Equity is something that is in any property. The way the amount is worked out is through the difference between what is still owed on the mortgage and the current property value.

Like we mentioned before, this equity can be used to fund home improvements, however, there are more options for you out there.

You may equity is used to cover long-term care costs, to supplement their income, to have a holiday, to pay off an interest-only mortgage or to have free spending money.

If you are a Buy to Let landlord, you might remortgage to release equity as a way of covering your deposit for buying a future property for an addition to your portfolio.

For customers who are over the age of 55 and have a property that is worth at least £70,000, it may be worth looking at your options for Equity Release in Durham. Speak to a qualified later life mortgage advisor to learn more about Equity Release & Lifetime Mortgages.

Remortgage to Consolidate Debt

Some people use Equity Release for paying off any unsecured debts that they have accrued over time.

Paying off unsecured debts may sound like a simple solution, Debt Consolidation not only bases both on the amount you’re owed and the value of the property but also on your credit rating. Therefore, it could mean you are limited in the amount you can borrow.

On top of this, you will need to borrow more than your outstanding mortgage amount in order to pay off your previous mortgage and your debts. Because of this, your monthly repayments will potentially be higher. This may not be the best situation to be in, you can be assured in knowing that there are some options out there should you find yourself in an unfortunate situation.

In the case where you have damaged credit, there are still options to choose from, however, these may be difficult and require very Specialist Remortgage Advice in Durham before proceeding. Be aware that this might not be guaranteed.

You should always get mortgage advice before choosing to consolidate and secure any debts against your home.

Experienced Mortgage Advisors in Durham – Get in Touch

Getting in touch with an experienced and trusted Mortgage Broker in Durham would be very beneficial if you are reaching the end of your term and are exploring the options when it comes to Remortgaging.

With an advisor by your side, they can provide you with the support you need when looking into your circumstances and future goals so then you have the best route for you ready in the next step of your mortgage journey. We always aim for this process to be smoother and quicker than your first time.

Top 5 Mortgage Hurdles People Experience in Durham

Experienced Mortgage Advisor in Durham

Through our experience as a mortgage advisor in Durham, we have heard of our many clients’ different mortgage hurdles. Although these challenges are not entirely impossible to resolve, it’s vital to know that they can become a major factor in stalling the speed and flow of the process.

 These challenges could include:

• The effects that divorce and separation could have on a mortgage
• Unemployment and getting a new job
• Costs relating to childcare  
• Evidencing a deposit source
• Understanding benefit income

Effect of Divorce and Separation  

Divorce and separation can be hard to deal with and is very unfortunate. When this occurs, many divorced partners are then faced with more than just marriage challenges, with one of these being the joint financial endeavours that were taken out together. 

An option that initially sounded endearing to many married couples, due to the fact it can allow them to achieve their goal quicker, can quickly turn sour in the event of a separation. 

We tend to hear a handful of commonly asked questions from one half of the former happy couple when they get in touch. These include;

• What is the possibility of being excluded from their ex-partner’s mortgage?
• Could they possibly obtain a second mortgage?
• Is there a way to exclude their ex-partner from the mortgage, in order to keep it for themselves?

Considering the affordability of your mortgage payments is paramount. As well as having an expert Durham mortgage advisor, you need to ensure that you are fulfilling necessary income requirements that make the obstacle of divorce and separation easier to overcome.

Effect of Employment Gap and New Job on Mortgage Payments 

In some cases, getting a new job comes with a greater income level than your previous job. However, a gap between going from your previous job to your new job can become a complication with your mortgage, and it’s especially the case for mortgage lenders.

If you are starting a new job, some lenders are always willing to factor in the new job either in the first month or as soon as you are about to start it. Furthermore, you will find periods of probation are acceptable.

Childcare-related Expenses 

When dealing with mortgage-related issues, we have found that the mortgage amount can change depending on if you are a family with children or not. A family with children, for example, will be offered much less compared to a family without children.

This is especially true in cases where the parents have just started back at work and are in the process of managing childcare, which are known for having notoriously high monthly costs. Many mortgage lenders will view these the same way they view other large monthly outgoings such as car payments.

It is best to mention, however, that a number of mortgage lenders operate in a different way. In some cases, lenders dismiss childcare-related expenses as part of the outgoing costs. This is due to the fact they strictly operate based on the data presented by the Office of National Statistics for outgoing costs. This can potentially increase the mortgage amount.

Evidence of Deposit Source 

Anti-Money Laundering laws, put in place in the UK, tend to be quite strict. Because of this, it needs to be known where all funds deposited by the mortgage borrower are coming from. Evidence of the deposit source will be required by your mortgage broker and lender. Sometimes, it may even be required by estate agents and solicitors.

Due to this, the entire mortgage application becomes a lot more complicated. Regardless of the source of deposit (either gift, personal savings, property sale, premium bonds, or personal loans), there must be documents detailing how the funds were obtained.

What to Know About Benefit Income? 

Benefit income can have its challenges too! With the help of an expert mortgage broker, this can be easily tackled. In fact, all forms of benefit incomes can be taken into account from disability benefits to child tax credits, however, this depends on the views of the mortgage lender.

Get in Touch with a Mortgage Advisor in Durham

It doesn’t matter if you are a first time buyer in Durham, looking to move home in Durham, or looking to remortgage in Durham, challenges can come about and cause unnecessary stress. Get in touch with a mortgage broker like ourselves and we will try and help take the stress away. 

Why isn’t it easier to get a Mortgage in Durham? | Mortgage Advice in Durham

Getting a Mortgage in Durham

Durhammoneyman has had more than 20 years of experience in the mortgage business. In this time, our heaps of experience and knowledge through the years have allowed us to help many different and unique customers get through difficult mortgage obstacles.

Therefore, no matter what personal situation you are in, we have probably encountered a similar one before. A few of our services include first-time buyers, remortgage, and self-employed mortgage advice in Durham.

Getting a mortgage can become complex if you are unsure of what you are doing. The reason for this is that there are thousands of different lenders with their own individual lending criteria, and it can be difficult to find the right one.

You’ll find that by instead opting to speak with a mortgage broker in Derby, you’ll be opened up to a wider variety of mortgage options, with criteria that your dedicated advisor will be able to match you up to.

Going to a lender for a Mortgage in Durham

Sometimes, you will find you can pass a lenders credit scoring system easier than you would from another, it all just depends on the lender. There are parts of the market that different lenders love to focus on, specific niche markets.

It’s common to find that the stricter the lending criteria are, the lower the supply rates are. The criteria can be stricter to match than others. Therefore, don’t feel disheartened if you are struggling to find a lender that will accept you.

It can be hard to qualify with lenders who have strict criteria. When a competitive deal has been offered to you, it will always have a tight margin. This is due to the fact that the lender needs to know the customer will be able to afford the mortgage and lenders want to make a profit off this and not lose money.

Lenders with Low Rates

When it comes to high street lenders offering the cheapest rates, you will find they will always increase their earnings from their borrowers. As soon as a mortgage has been accepted, they will gain more profit by selling you more of their products. Some of the products include bank accounts, unsecured loans, credit cards, and Insurance.

A common occurrence that you may find with mortgages, is the lowest rate of interest often comes with expensive set-up costs. This is why people often stay away from these products. When a lender grants you a mortgage, the main thought they have will be about their profit.

On the contrary, a Mortgage Broker in Durham will always have your best interest. Our knowledgeable and caring team knows all the secrets to save both your time and your money. We will work hard to find the best deal available that fits your circumstances.

Difficulties When Looking to Remortgage in Durham

In some cases, not everyone can just remortgage somewhere else and this is due to many reasons:

• Breakup with a partner
• Your household income may be less than it was at the start of the application
• Since taking out a mortgage, the applicant has had a default or CCJ
• There has been an decrease in value of the home since it was bought

Lending Criteria and the Economy

Matching lenders’ criteria, depending on the current performance of the economy, can affect how easy or hard it is to get accepted a mortgage. If the economy is suffering, lenders will tighten the margins and vice versa when the economy is doing well. Depending on when you are applying, it can sometimes be hard to obtain a mortgage, yet previously, mid-2000’s, it was too easy. This was prior to the credit crunch where lenders were granting ridiculous mortgages to people who couldn’t afford one at all.

As well as matching the lender’s criteria, the current state of the economy is another factor that can affect your chances of being accepted for a mortgage. If the state of the economy isn’t doing well, lenders will tighten the margin and vice versa when the economy is performing well.

There are times when obtaining a mortgage can be difficult. It just depends on when you have applied for it, whereas, in the mid-2000s, it was too easy. Before the credit crunch, lenders were granting ridiculous mortgages to people who couldn’t afford one at all.

Lenders took a completely different view and tightened their criteria after the credit crunch. The requirements included a 25% deposit which meant getting on the property ladder was unattainable. This tempted customers into renting due to the brisk increase in interest rates.

Mortgage Broker in Durham

We have become knowledgeable about what lenders are looking for in mortgage applicants through our valuable experience. Credit scoring is something many high street lenders now do to try and save time and money. Furthermore, this method gives the lender confidence in their ability to lend. 

Speaking to a Mortgage Broker might be the best option if you are struggling to match the lender’s criteria. As a Mortgage Broker in Durham, we can provide you with options that we know will increase your chances of your mortgage application being successful.

With a range of simple ways to achieve this, giving us a call could bring up a step closer to securing a mortgage deal. Get in touch and speak to an experienced Mortgage Advisor in Durham and potentially start your journey on the property ladder. 

Lending Criteria Mortgage Advice in Durham

Reasons Why People Choose to Move House in Durham

Home Mover Mortgage Advice

There are a plethora of reasons why a homeowner may instead look to move home. Here, we will be discussing the most common reasons that we have come across through our experience as a mortgage broker in Durham.

More Living Space

It is known that many homeowners to look at the option of moving home when they are in need of more living space. This is quite a common case with many first time buyers in Durham as it’s very likely they went for a smaller home when they initially applied.

As well as this, your circumstances may be different now from what they were when you moved into your first home which has resulted in you needing more living space. This may be because you are looking at starting a family or are wanting extra space for things like a home office.

With this in mind, if you are looking at revamping the home you are living in currently instead of moving home in Durham, you may benefit from raising capital through a remortgage to fund building the space you need.

This route is very popular with growing families and could give you the opportunity of developing the home you are already happy with.

Normally, we find parents will convert their loft into a bedroom for one of their children, meaning there is extra an extra room that could be a home gym, home office or guest room to name a few!

From a selling point of view, remortgaging for home improvements can also build up the value making it a long term investment. If you are looking for more information regarding this, contact our team for remortgage advice in Durham.

Change of Scenery

A change of scenery may be the reason why you are looking to move home in Durham and this is especially the case for those who initially had first time buyer mortgages in Durham.

This is because they may have had a limited budget before meaning they settled for a cheaper property as a way to achieve their homeowning goals. Now, they may have a higher budget to work with and can explore properties in a more affluent area.

When moving into a first home, it’s unlikely for people to be exploring aspects like schools and parks in that area because starting a family wasn’t their goal at the time. With this in mind, individuals who are looking at starting or planning to have a family will take this into account when looking at places to move to.

Family & Friends

Our team of mortgage advisors do find that another common reason that they encounter is those looking to move home to be closer to friends and family. This can happen when couples are looking to start their own family or after a significant loss.

A more popular case of this is when both parents are working full time and are in need of child care. This is when reaching out to a family member or friend can not only be convenient, but cheaper with costs of nurseries being a lot more expensive and not as flexible.

Get in Touch for Mortgage Advice in Durham

Contact a trusted mortgage broker in Durham if you are looking at exploring options for moving home in Durham. Our team will be able to go through the costs with you of the moving home process.

Here at Durhammoneyman, we can search through 1000s of mortgage products as a way to find out the best deal for your personal and financial goals. Book your free mortgage appointment today!

On the other hand, if you are looking at remortgaging for home improvements instead of moving home in Durham, our team can utilise their expertise on this. Simply book yourself in for a free remortgage review to get started towards revamping your dream home.

Types of Mortgages Explained in Durham

Mortgage Advice in Durham

If you are looking at moving home in Durham or are a first time buyer in Durham and are looking at starting your home owning journey, you will find there is a large variety of mortgages out there. There are some types of mortgage that are more popular than others and not all lenders will provide every different mortgage type.

Below is a list of the most popular mortgage types you will encounter and a YouTube video providing further insight on these. These videos are from our YouTube channel, MoneymanTV and there is a playlist on this channel with each type explained.

What is a fixed-rate mortgage?

If you are on a fixed-rate mortgage, your mortgage payments will stay the same for a certain period of time. When it comes to the duration you want to fix in for, this is normally a 2,3 or 5 years or longer. Regardless of inflation, interest rates or the economy, your mortgage payments will stay the same throughout.

What is a tracker mortgage?

With a tracker mortgage, the interest rate you pay follows the fluctuations of the Bank of England’s base rate. This means that the lender will not be setting the rate themselves. The percentage you will be paying is just above the Bank of England base rate. For instance, if the base rate is 1% and you are tracking at 1% above base rate, this means that you will be paying a rate of 2%.

What is a repayment mortgage?

Having a repayment mortgage means that every month you are paying capital and interest combined. Therefore, as long as you keep your payments going for the full duration of the mortgage term, the mortgage balance is guaranteed to be paid off at the end and the property becomes yours.

This is known to be the most risk-free option to pay your capital back to the lender. In the early years, it is primarily the interest that you are paying and your balance will reduce very slowly, in particular, if you have taken out a 25, 30 or 35-year term. This circumstance switches in the last ten years or so if your mortgage, where your payments are paying off more capital than interest and the balance will decrease more rapidly.

What is an interest-only mortgage?

Even though many buy to let mortgages are set up on an interest-only basis, it is a lot more challenging to get a residential property on an interest-only basis.

It is a lot less likely for lenders to offer an interest-only product now. On the other hand, there are particular circumstances where this can be an option. These involve downsizing when you are older or have additional investments that you will use to pay the capital back. Lenders are very prudent when it comes to offering these products now and the loan to values are a lot lower than in the past.

What is an offset mortgage?

Having an offset mortgage means that the lender will create a savings account to work alongside your mortgage account. For example, if you have a mortgage balance of £100,000 and £20,000 is deposited into your savings account, you only pay interest on the difference, so in this case, £80,000. This can be a very effective option for managing your money, in particular, if you are a higher rate taxpayer.

The Importance of Changing Your Address

Mortgage Broker in Durham

If you are looking at applying for a mortgage in Durham, it is key that you pay close attention to your credit score. The general rule is the higher that your credit score is, the higher chance you have of being accepted for a mortgage by a mortgage lender.

There are many aspects of keeping a good credit score including maintaining monthly payments, limiting gambling transactions and many more. A main factor that is usually left is making sure that all of your addresses are up to date.

Having too many addresses on your record can be seen as a negative factor to many. This is true to an extent, however, many people have approached this in a way that could cause their credit score more harm than good.

On a regular basis, we see mortgage applicants especially younger First Time Buyers in Durham who have moved out of their parents’ home to move into their own rented accommodation and haven’t changed their address. This has resulted in many of their post being delivered to their family address instead.

This includes things like bank statements, credit cards and electoral roll information and more. Usually this is accidental but we do find that it’s intentional. This isn’t a good idea as they will always be a record of your address somewhere.

Think about it, if you are setting up new contracts or getting post delivered from Amazon or eBay, it will be shown your new address on your credit file. As a result, when a mortgage lender carries out credit checks on you, they will see that this address exists and will show them that you’re living in two places at once.

Check Before You Apply!

Make sure that before you look at applying for a mortgage where you will be credit search, you have thoroughly checked that nothing has been left which could create a negative impact on your credit and harm your chance of getting a mortgage.

This will involve you logging into all of your accounts like credit cards, current accounts, shipping details, water and electric bills and importantly, the electoral roll (this has a significant impact!) to check that they are all updated with your new residential address.

Obviously, this only applies to those who have moved out and are living in their own place first. This is because people who are still living with their parents and haven’t moved yet can’t change to a new address they don’t have yet. In the case that you’re a First Time Buyer in Durham, don’t worry!

Whatever circumstance you are in, you need thoroughly check all these things before applying for your mortgage. We do find that many people forget about the electoral roll information which is something that you need to do as it can make a big difference.

Furthermore, check if the dates are correct too, that you know the specific dates you moved into your rented property and the day you left it.

You need to get the dates right too, knowing the exact date you moved into your rented property and the day that you left it. In the case that you make a mistake with this and there are time that overlap, a mortgage lender may feel like you are living in two places at once.

Impress Your Mortgage Lender

Through making sure that every bit of information you have on your accounts is up to date, you are demonstrating to a mortgage lender that you are serious about your mortgage journey and understand what you are doing. As well as this, you are making sure that you only have one consistent address at any given time.

By doing this, you are having a more open and honest approach when getting your mortgage application going. The goal for you is to try and impress your mortgage lender as best you can, put yourself in a good position so it’s key you keep these points in mind.

If you are still needing assistance with your mortgage advice process, book online for a free mortgage appointment and our team will connect you with a trusted Mortgage Advisor in Durham today!

Through our experience as a Mortgage Broker in Durham, we find that a First Time Buyer in Durham gets in touch with our team because they have no mortgage experience and are finding the process daunting so are looking for a helping hand.

When you book your free mortgage appointment in Durham you will be able to speak to an expert Mortgage Advisor in Durham and they will be your guide throughout your mortgage journey.

Mortgage Advice in Durham

How to Make an Offer on a Property in Durham?

The Basics

When you have come to the end where you are ready to make an offer on your first home, it is key to make sure you have got in touch with a knowledgeable mortgage advisor in Durham where you can talk about your personal and financial situation.

By doing this, you are able to get the best advice you need to progress throughout your mortgage and home buying journey. Along with this, your dedicated mortgage advisor will be able to find the most suitable deal for you as soon as your offer has been made.

A Mortgage Agreement in Principle

Majority of the time you will find that a cash buyer has more of an advantage when it comes to buying a home. The mortgage process involves time and careful handling of paperwork, which can usually be avoided by paying for a property outright.

With this, you will need to have a lot of disposable income, which you may not afford to do. If you’re going for the mortgage route, it is important to obtain a mortgage agreement in principle beyond making an offer.

By having a mortgage agreement in principle to hand you are presenting yourself as being a serious buyer and have been prepared to start the mortgage process ahead of time.

Not having this documentation to hand can show a seller that you aren’t prepared as another potential buyer who may have one. As well as this, any credible estate agent will want to see that you have an agreement in principle.

Situations like these can be the reason why speaking to a mortgage broker in Durham could help you during the home buying process.

As soon as you have found a property that you are interested in making an offer on, our team will be able to sort out your agreement in principle within 24 hours of your initial appointment, in some cases, the same day!

Don’t Give Up On Finding Your Dream Home

The negotiation process is paramount in buying a property. If your first offer is rejected, don’t worry, as this can be common and there may still be lots of other opportunities out there for you like making a revised offer.

In the case where your increased offer is also rejected, you may need to increase it even more or call it a day. As a mortgage broker in Durham, we do find that newly listed properties will come with sellers who aren’t likely to budge in comparison to a long-listed property that isn’t selling.

To get an overall idea of the price you could be paying for a property, it may be best to check property sale websites to get an insight into sold house prices from that area. You may be able to find these prices from Land Registry which means they are reliable for comparison.

On some occasions, you may find that some houses may end up selling for far less than they are actually worth, because of repossessions, being sold to a tenant for a discounted price or something else like an inter-family sale.

Speak to a Mortgage Advisor in Durham today

If you are wanting further information regarding the best ways to make an offer on a property and are looking for some assistance with starting your mortgage journey as a First Time Buyer in Durham, you may benefit from getting in touch with a dedicated mortgage broker in Durham.

Our team are available 7 days a week to answer your questions and we have appointments on offer at times that best suit you. Book your free mortgage appointment today to discuss your options with a mortgage advisor in Durham.

Mortgage Broker in Durham