If you’re seeking to streamline the mortgage process, save time and money, and minimise stress, enlisting the assistance of a seasoned mortgage broker in Durham offers numerous advantages.
With our wealth of professional experience, we have access to an extensive array of mortgage deals, allowing us to meticulously select the one that aligns perfectly with your unique circumstances.
In contrast, approaching a bank directly restricts you to that single lender’s mortgage offerings, denying you the opportunity to explore multiple options.
Our team is here to accommodate your schedule, offering appointment bookings seven days a week, with flexible hours from early morning to late evening. We understand that your time is valuable, and we’re committed to working around your busy schedule.
For your convenience, you can also make use of our website’s booking form. This allows you to easily schedule a video or telephone consultation with a mortgage advisor in Durham at a time that suits you best.
We aim to provide you with the flexibility you need to receive expert mortgage guidance on your terms.
To begin the process of securing a mortgage as a first time buyer in Durham, the first step is to arrange an appointment with a mortgage advisor in Durham.
During this meeting, you’ll have the opportunity to provide additional information that will help the advisor gain a deeper understanding of your unique circumstances and plans. Subsequently, they will explore a wide range of mortgage deals to identify the one that best suits your needs.
Both first time buyers in Durham and moving home in Durham who decide to proceed with the recommendation of their mortgage advisor will benefit from obtaining an Agreement in Principle (AIP). Our goal is to secure this for our customers within 24 hours of their initial appointment.
An AIP is a valuable document, often requested by estate agents when you make an offer on a property. It demonstrates your commitment to the purchase and verifies your financial capability to proceed, with a mortgage lender ready to provide financing.
Additionally, we offer guidance and support throughout the offer process, assistance with property surveys, and can provide optional insurance recommendations. These insurance options act as a safety net to protect your family and home from unforeseen circumstances.
Furthermore, you will need to supply your mortgage advisor with the appropriate documentation to accompany your mortgage application. The specific requirements may vary depending on your circumstances and the lender you choose to work with.
Rest assured, as a mortgage broker in Durham, we will help you with this paperwork, ensuring a smooth and informed application process.
After we’ve received your documents, as a mortgage broker in Durham, we will carefully verify them.
Following this verification, we will provide you with a mortgage illustration that outlines the details of the agreement you’ve chosen with the mortgage lender we’ve recommended. This step occurs just before we formally submit your mortgage application.
Once you’ve approved our recommendation, your mortgage application is submitted. Your dedicated mortgage advisor in Durham will forward copies of your documents to the chosen mortgage lender.
Throughout this process, we maintain regular communication with you to ensure you stay informed about the progress of your application.
We’ll promptly reconnect with you as soon as the mortgage lender reaches a decision on your application. If your application is approved, this is when you will receive a formal mortgage offer.
At this point, the responsibility shifts to your solicitor, who will oversee the final steps to complete the transaction, ultimately allowing you to move into your new home.
Being a mortgage broker in Durham, we consistently prioritise your best interests in every aspect of our service. If there are opportunities to save you time, money, and alleviate stress, we are dedicated to seizing them.
Our primary aim is to help you in achieving the strongest possible financial position.
Our customer reviews provide genuine insights into the enduring relationships we foster with those who reach out to us. These testimonials underscore the positive transformations individuals experience through homeownership, facilitated by our mortgage advice service.
We take pride in the meaningful impact we have on our clients’ lives.
Purchasing a house is a significant milestone, especially for first time buyers in Durham. The process can be both exhilarating and overwhelming, with numerous factors to consider. To ensure a smooth and informed home-buying journey, it’s essential to ask the right questions. Here’s a comprehensive guide to the nine questions you should definitely ask when purchasing a house in Durham.
Before committing to a house, it’s crucial to gauge the level of interest it has generated in the market. This information can give you valuable insights into the property’s desirability, helping you make an informed decision about its potential resale value and investment potential.
Understanding the presence of a property chain is vital. A property chain refers to the sequence of buyers and sellers linked together because they are buying and selling properties from each other. Knowing whether a chain is involved can impact the timeline of your purchase, so it’s essential to inquire about this early on.
Don’t assume that everything you see during a house viewing is automatically included in the sale. Clarify with the seller or agent about what fixtures, fittings, and appliances are included. This will help you avoid any misunderstandings later on and plan accordingly.
Your neighbors can significantly influence your living experience. Take the time to ask about the neighborhood’s ambiance, the types of people who reside nearby, and any communal activities. This information can provide valuable insights into the community you’ll be joining.
Beyond the initial purchase price, consider the ongoing costs of maintaining the property. Inquire about utility bills, property taxes, homeowners’ association fees, and any other expenses. This will give you a comprehensive understanding of the financial commitment involved.
The orientation of the house can impact natural light and energy efficiency. Knowing which direction the house faces can help you assess its comfort level throughout the day and potentially save on energy costs.
Get a clear picture of any potential renovations or repairs that might be needed after moving in. Ask about the condition of essential systems like plumbing and electrical. This information will help you plan your budget and timeline accordingly.
While some sellers are firm on their asking price, others might be open to negotiation. Inquire whether the seller is willing to entertain offers and if there’s room for negotiation. This can potentially help you secure a more favorable deal.
The timeline for moving in is crucial, especially if you have specific deadlines to meet. Discuss the potential move-in date with the seller to ensure it aligns with your plans.
Moving home in Durham requires careful consideration and the right questions. By addressing these nine essential queries, you’ll be well-equipped to make an informed decision that suits your needs, preferences, and budget. Remember, a well-informed buyer is a confident buyer, and taking the time to gather information will undoubtedly pay off in the long run.
Saving for a mortgage deposit can be challenging in today’s economic climate. As experienced mortgage broker in Durham, we understand that first time buyers in Durham often feel overwhelmed by the homebuying process.
It’s crucial to ensure a good credit score, save enough for the deposit, and provide evidence of affordability.
In this article, we will explore valuable tips on saving for your mortgage deposit and important considerations to keep in mind before applying for a mortgage. Our goal is to provide you with the guidance and knowledge necessary to navigate the process with confidence.
To effectively save for a mortgage deposit, it’s important to assess your monthly disposable income. Begin by carefully evaluating your average monthly expenses to determine how much you can realistically allocate towards your savings.
This assessment will provide you with a clear understanding of the amount you can save each month. While the minimum deposit required is typically 5% of the property’s value, many first time buyers in Durham aim to save even more, aspiring for deposits of up to 20% of the property’s value.
There are several advantages to saving a larger deposit. Firstly, it results in lower monthly mortgage payments, making homeownership more affordable. Moreover, if you have bad credit, lenders may require a deposit of around 15-20% to mitigate risk.
It’s crucial to recognise that a larger deposit reduces the loan-to-value (LTV) ratio, which improves your standing with lenders. It showcases your ability to save and highlights your financial dependability as a mortgage applicant.
In addition to the deposit, it’s essential to consider other costs associated with obtaining a mortgage, such as arrangement fees, solicitor fees, property survey fees, and potential expenses related to using a mortgage broker in Durham.
By accounting for these expenses, you can gain a comprehensive understanding of the financial commitment involved in the homebuying process.
Effective planning and wise budgeting will empower you to save for your mortgage deposit with confidence, bringing you closer to achieving homeownership in Durham.
There are numerous government-led schemes available that can help you in boosting your mortgage deposit or saving for one. It is worthwhile to explore your eligibility for these schemes.
One of the popular options is the Shared Ownership scheme, which allows you to secure a mortgage for a percentage of a property, reducing the initial deposit required.
Through this scheme, you can obtain a mortgage for 10-75% of the property’s value, making it a helpful option for starting your first time buyer mortgage journey in Durham.
Additionally, there are several other schemes available, including the Lifetime ISA, first homes scheme, and the mortgage guaranteed scheme.
If you are interested in any of these schemes or would like to gather more information, feel free to reach out to us or book a free mortgage appointment online with one of our experienced mortgage advisors in Durham.
For further details, you can also visit the government’s OwnYourHome website, which provides comprehensive information on the available schemes and their respective benefits.
Receiving a gifted deposit can provide a valuable boost to your mortgage deposit, enabling you to enhance your homebuying prospects.
A gifted deposit refers to a generous contribution towards your mortgage made by a family member or friend. It’s important to note that a gifted deposit is not a loan but a genuine gift, meaning it is not expected to be repaid in the future.
This type of financial support can make a significant difference in helping you achieve your homeownership goals. It increases your available funds for the deposit, making it easier to meet the required amount and potentially access more favourable mortgage terms.
When receiving a gifted deposit, it’s essential to ensure that all parties involved, including the lender, are aware of the source of the deposit and the nature of the gift. This will ensure compliance with any legal and regulatory requirements associated with the mortgage application process.
If you have the opportunity to receive a gifted deposit, it can be a valuable asset in your homebuying journey, enabling you to achieve your dream of homeownership.
It is important to review your current monthly bills and subscriptions to identify potential areas where you can save money. By conducting an audit of your expenses, you can identify opportunities to reduce costs and allocate more towards your mortgage deposit savings.
Take a close look at each bill and subscription to evaluate if there are more cost-effective alternatives available. Consider comparing prices and exploring different providers to ensure you are getting the best value for your money.
By finding cheaper alternatives or negotiating better deals, you can increase your monthly savings, contributing more towards your mortgage deposit.
Additionally, it is beneficial to assess any memberships you currently hold. Determine if there are more affordable alternatives available or if you can reduce the number of memberships you maintain.
Cutting back on unnecessary subscriptions can free up additional funds that can be directed towards your mortgage deposit.
Remember, the more money you are able to save each month, the faster you can accumulate the necessary funds for your deposit. By being proactive in identifying areas to save, you can make meaningful progress towards your homeownership goals.
Purchasing a property with a friend or partner is a common choice among many first time buyers in Durham. This option is popular because it allows you to combine your savings, effectively doubling your purchasing power.
It is important to exercise caution when creating financial links with others. If your friend or partner has a poor credit history, it could potentially impact your own eligibility for a mortgage.
For instance, if they have a default on their credit record, it may hinder their ability to secure a mortgage, which could impact your joint application.
Fortunately, there are specific mortgage options available for individuals who wish to buy a property jointly with a friend or partner. These mortgages are designed to accommodate such arrangements and provide suitable financing solutions for joint buyers.
It’s essential to explore these mortgage options and consult with a mortgage advisor to understand the specific requirements and benefits associated with each type of joint mortgage.
A mortgage advisor can guide you through the process and help you choose the most appropriate mortgage product based on your unique circumstances.
By making informed decisions and carefully considering the financial implications, you can navigate the process of buying a property with a friend or partner successfully.
With this type of mortgage, both parties jointly own the entire mortgage and have equal ownership rights over the property. In the unfortunate event of one party passing away during the mortgage term, the full ownership of the home will automatically transfer to the surviving owner.
Lenders view both parties as a single entity, and any decisions regarding the sale or remortgage of the property will require mutual agreement and cooperation from both joint owners.
This means that if you and your co-owner decide to sell or remortgage the property, you will need to come to a consensus and act together.
It’s important to maintain open communication and discuss any plans or decisions related to the property with your co-owner. By working together, you can ensure a smooth and mutually beneficial process for selling or remortgaging the property in the future.
This type of mortgage allows for multiple owners, each with their own specific shares in the property. The ownership shares do not necessarily have to be equal and can be determined based on each owner’s contribution or agreement.
In the future, as individual shareholders, you have the flexibility to sell or transfer your shares in the property. This means that you can potentially sell your share to another party or gift it to someone else, subject to any legal agreements or restrictions in place.
It’s important to consult with legal professionals and follow the necessary procedures when transferring or selling shares in the property. They can guide you through the process and ensure that all legal requirements are met to protect your interests and rights as a shareholder.
Having bad credit may require you to save a larger deposit to meet the requirements set by lenders. In many cases, lenders may ask for a deposit ranging from 10% to 15% if you have a less-than-ideal credit history.
Consequently, you may need to dedicate more time to saving up for your deposit, which can be challenging but necessary, however, it’s not all discouraging news.
There are steps you can take to improve your credit score, which can ultimately enhance your borrowing prospects. Consider implementing the following tips to work towards improving your creditworthiness:
Ensuring you are registered on the electoral roll is essential as it provides proof of your current address and establishes your reliability in the eyes of lenders.
To enhance your creditworthiness, double-check that all your personal information, including your name and address, is accurately spelled and consistent across various platforms.
This consistency applies not only to your electoral registration but also to your banking records, store cards, billing addresses, and other relevant accounts.
By aligning your address information across different platforms and verifying its accuracy, you present a cohesive and trustworthy profile to lenders. It reinforces your reliability as a borrower and instils confidence in your financial responsibility.
Regularly reviewing and updating your personal information, particularly your address, ensures that your records remain up-to-date and aligned. This proactive approach helps maintain a strong credit file and further strengthens your credibility with lenders.
Utilising your credit card to its maximum limit and carrying a balance without paying it off each month can have a negative impact on your credit score. To maintain a healthy credit profile, it’s advisable to use your credit card responsibly by paying off the balance in full every month.
By paying off your credit card balance in full, you demonstrate responsible credit management and financial discipline. This shows lenders that you can effectively handle credit without accumulating excessive debt.
Moreover, consistently paying off your credit card balance helps establish a positive credit history, which is crucial for future credit applications and favourable terms on loans and mortgages. It portrays you as a reliable borrower who can manage credit obligations effectively.
Therefore, it’s recommended to use your credit card judiciously, keeping your balances low and paying them off in full each month. This practice contributes to a healthy credit score and improves your overall creditworthiness.
It’s crucial to prioritise meeting payment deadlines and ensuring that you have sufficient funds in your account when credit card payments are due. Consistently adhering to these practices has a positive impact on your credit rating.
By consistently making timely payments, you demonstrate financial responsibility and reliability to lenders. This contributes to building a positive credit history, which is a key factor in determining your creditworthiness.
To ensure timely payments, consider setting up automatic payments or setting reminders to help you stay organised. By doing so, you can avoid late payments, which can negatively affect your credit rating.
Consistency in meeting payment deadlines and maintaining a strong payment record demonstrates your ability to manage your financial obligations effectively. This responsible behaviour enhances your credit rating and increases your chances of obtaining favourable terms on future credit applications.
By making payment punctuality a priority and managing your finances diligently, you can foster a positive credit rating and establish a solid foundation for your financial well-being.
It’s important to consider closing any credit accounts that you no longer use or have no intention of using. Keeping unused accounts open can potentially have a negative impact on your credit file.
Having an old address linked to an account can create discrepancies and affect your credit score. Therefore, it’s advisable to update your address information and ensure that all accounts reflect your current and accurate details.
This advice also applies to store accounts. If you have store accounts that you are no longer using, it’s beneficial to close them down. By doing so, you can streamline your credit profile and prevent any potential negative impact on your credit score.
Taking proactive steps to close unused accounts and update your address information helps maintain a clean and accurate credit file. This contributes to a healthier credit profile and improves your overall creditworthiness.
Being financially linked to someone with a poor credit history can have a detrimental effect on your own credit score. This situation often arises in cases of divorce or separation, where both individuals remain financially connected and their actions can mutually impact each other’s creditworthiness.
When you are financially connected to someone with bad credit, their financial behaviour, such as missed payments or defaults, can potentially affect your creditworthiness. This can make it more challenging for you to secure credit or obtain favorable terms on loans and mortgages.
To protect your credit score, it’s important to sever any financial connections with individuals who have bad credit. This may involve closing joint accounts, removing your name from shared loans, or taking other necessary steps to ensure your financial independence.
By taking proactive measures to disentangle yourself from these connections, you can safeguard your own credit score and maintain a strong financial standing. It’s always best to consult with a financial advisor or credit expert for guidance tailored to your specific situation.
If you’re embarking on the journey of saving for a mortgage and seeking expert advice in Durham, our team at Durhammoneyman is here to help you.
We understand that starting the mortgage process can feel overwhelming at times. That’s why we’re dedicated to providing a helping hand and easing your concerns. With over 20 years of industry experience, we have the knowledge and expertise to guide you through the process.
To get started, you can conveniently book your free mortgage consultation with one of our experienced mortgage advisors in Durham. Whether you prefer to book online or give us a call, we’ll ensure that you receive personalised guidance tailored to your specific needs and circumstances.
At Durhammoneyman, we’re committed to helping you navigate the complexities of the mortgage journey and making informed decisions. Contact us today to arrange your free mortgage appointment and take the first step towards achieving your homeownership goals in Durham.
For individuals seeking specialist mortgage advice in Durham, a common scenario we encounter involves tenants who are interested in purchasing the property they currently rent from their landlord.
From the perspective of landlords, selling a property to their sitting tenant can actually present several advantages, and it’s worth exploring this option before the property hits the open market.
From a landlord’s standpoint, selling a property to a sitting tenant can be a straightforward process. They may offer the tenant the opportunity to buy the property before considering other buyers. Let’s delve deeper into the reasons why landlords might opt for this route and the benefits it brings.
One key factor driving landlords to sell their properties is government’s tax relief changes. With the introduction of new regulations, many landlords have found themselves now paying more tax than they did in previous years.
Consequently, some landlords decided to exit the housing market and seek alternative investments in different sectors.
Committed landlords who are passionate about their role and believe in the long-term value of their properties tend to weather the storm of legislative changes. Their perspective revolves around the idea that property is a sustainable, long-term investment.
On the other hand, more casual or amateur landlords may have entered the market with a short-term profit mindset, prompting them to sell if circumstances don’t align with their expectations.
There are several benefits for landlords who choose to sell their property to their sitting tenants:
Now let’s consider the advantages for sitting tenants who are contemplating buying the property from their landlord:
While buying a property as a sitting tenant in Durham offers various advantages, it’s important to approach the process with due diligence and seek professional specialist mortgage advice in Durham.
Speaking with a mortgage advisor in Durham with expertise in the local market can help you navigate the intricacies of the transaction and ensure you make well-informed decisions.
A qualified mortgage advisor in Durham will assess your individual circumstances, financial position, and aspirations, and guide you towards suitable mortgage options available in Durham.
They will provide valuable insights and expert advice throughout the process, ensuring a smooth and efficient home buying experience. In conclusion, if you find yourself as a sitting tenant considering the purchase of the property you currently rent in Durham, it is a unique opportunity worth exploring.
With potential cost savings, familiarity with the property, and the chance for advantageous mortgage arrangements, this route can offer a smooth transition from tenant to homeowner.
By seeking professional mortgage advice in Durham and carefully considering your options, you can make the most of this opportunity and embark on a rewarding homeownership journey.
One of the more often encountered questions that we hear from prospective first time buyers in Durham is them curious about how much their mortgage process would cost them.
Responding to this, we have put together a short list of all the fees you can expect to pay when you are looking to buy a new home, and when it will become payable.
This would apply only if you are planning to sell your home. With an increase in the popularity of online estate agencies, you can be seeing hundreds of standard website listings.
That being said, for a more localised service, you could be looking at a fee of around 1-2% of the property price.
Your mortgage lender will need you to have a valuation conducted on the property you are purchasing to make sure that the property is worth the amount you are looking to borrow from them.
Prices for a property survey can cost anywhere from hundreds of pounds, this can depend if you want just a basic valuation, a lot more in-depth Home Buyers’ Report, or a Full Building Survey.
A key thing to remember when to working around the cost is that you always have some element of choice in the level of detail your survey goes into, with your decision by age and property type, as well as any questions.
Sometimes you can have a product with a cheaper rate, but the advantage can be outweighed by the payable arrangement fee to a mortgage lender.
This cost doesn’t exist with every mortgage lender, so you may not have to pay for anything at all, but in some cases, it could be upwards of 3 figures, depending on how the mortgage lender is in question.
You can find that these costs can be paid upfront, though you may also be able to add these onto the balance of your mortgage. Noteworthy though, that this would mean incurring further interest charges.
Here at Durhammoneyman, our team of Mortgage Advisors in Durham, has helped many first time buyers and home movers in Durham alike, we can compare deals for you in order to find you the most suitable one for your circumstances.
You will have to hire the services of a qualified solicitor. The cost of this service can be quoted very differently depending on the firm you are speaking to. An estimation for a straight forward purchase with a local company is likely within the mid-hundreds.
You will need to give the property address, whether it’s leasehold or freehold and how much you are purchasing it for, in order to receive accurate quotations.
The key points to cover when asking for a quote are:
In addition to the costs and disbursements involved in paying your solicitor, depending on your circumstances, you may also be required to pay this tax which the solicitor collects on completion of the property purchase.
This doesn’t apply to everyone. The government have been known to change the criteria on Stamp Duty, with the latest change being in favour of First Time Buyers in Durham. The latest Stamp Duty updates can be found here.
A Mortgage Broker in Durham will typically charge for their service. The cost of this will vary from company to company.
In our case, your dedicated mortgage advisor in Durham will discuss this in more detail with you during your free initial mortgage appointment.
We would definitely recommend choosing a local company such as ourselves, rather than a big organisation. They are more likely only to charge on completion, as opposed to any application fees and additional costs that could be incurred.
Of course if you are Moving Home in Durham, the cost of doing so in regard to the actual moving aspect, can be quite costly. This will depend on the level of service you are looking for.
Hiring your own van and doing the work yourself can be quite cheap. Opting for a local man with a van can be only slightly more than hiring your own van. A professional van service can be in the high hundreds, early thousands.
To further discuss the costs involved in buying a home, including anything we may have missed, book your free mortgage appointment today. A trusted mortgage advisor in Durham will be more than happy to discuss this with you.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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’.
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.
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.
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.
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.
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.
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.
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;
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.
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.
After the unfortunate event that was the 2008 credit crunch, our government opted to create a backup plan, in a bid to try and restart the pulse of the mortgage market. Their focuses were on first time buyers, introducing ways to help them get onto the property ladder, referring to these as government ‘Help to Buy Schemes’.
There are various different Help to Buy Schemes available in Durham, some that you might find you are better suited for and others you won’t qualify for. Here is a list of the Help to Buy Schemes available to home buyers and a bonus scheme that might be useful.
The Help to Buy Shared Ownership scheme was introduced as a means of allowing applicants to purchase a percentage of a property and then pay back the remaining amount as rent.
You will usually have to own between 25-75% of the property in question. The remaining percentage will be owned by an outside party, namely the local housing association or council. This share can possibly be increased further down the line, if you happen to find yourself in possession of some more money.
The way that your payments work is that you will be paying back your monthly mortgage payments, but also a monthly rental cost. This basically means you are paying 100% of the ground rent and service charge on your new home. This will still apply, even if your share is the minimum amount.
The Armed Forces Help to Buy scheme was introduced in 2014 after the roaring the success of the Help to Buy Equity Loan scheme. This scheme aimed to utilise the same basic concept as the one that came before it, however, this one was focused in on members of the armed forces.
If you do fit into the criteria of the scheme, this is something that could provide a real advantage to you when trying to get onto the property ladder. The government has made this an enduring policy and we have high hopes that it stays around, as the scheme is incredibly helpful to existing armed forces members who are in need of the extra help.
The Lifetime ISA is often a scheme that people forget. It’s not everyone’s immediate go-to scheme, however, it’s still useful to have some knowledge of it, as it could be the scheme that helps you secure a property as a first time buyer in Durham.
A Lifetime ISA is more or less a savings account where your money grows, completely free of tax. The government will also provide you with a top-up to your savings with an extra 25%. This means that if you meet the £4,000 maximum amount, you will receive a rather welcomed £1,000 bonus to your savings.
You have to pass specific mortgage criteria in order to gain access to this mortgage scheme. All of these details are readily available on the Lifetime ISA website.
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:
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;
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.
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.
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.
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.
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.
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.
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Durhammoneyman.com & Durhammoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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Durhammoneyman.com & Durhammoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
