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Securing a mortgage presents challenges, especially for first time buyers in Durham, those considering a move, exploring remortgage options, or entering the buy to let market. An important aspect of this process is your credit score.
Put simply, a higher credit score improves your chances of mortgage approval. However, it’s important to note that each mortgage provider has its unique credit scoring policy.
A rejection from one bank doesn’t necessarily mean the same outcome with others. To enhance approval odds, it’s advisable to explore multiple lenders.
The journey to secure a mortgage often involves the challenge of determining which credit reference agency a lender uses.
Unfortunately, lenders don’t always disclose this information, making it wise to check multiple credit reference agencies. Discrepancies among agencies can impact your credit score and, consequently, your mortgage eligibility.
Elevating your credit score is key, as it opens doors to better interest rates and terms. This translates into lower monthly payments and reduced overall repayment costs.
Before checking your credit score, it’s vital to refrain from applying for new credit until you’ve officially registered with a credit reference agency. Each credit application triggers a credit search, potentially affecting your credit score.
Lenders often use the electoral roll to verify your identity during credit applications. Ensuring your details are up-to-date is an important step, as not being registered can impact your credit score. Registration is easily done online or through a paper form submitted to your local council.
Improving your credit score involves maintaining “active credit,” like a credit card that sees regular use and is paid off in full each month. This demonstrates responsible financial management.
However, acquiring new credit can have a short-term impact, so it’s advisable to defer new credit pursuits if a mortgage application is imminent.
Consistently maxing out your credit card or exceeding the credit limit can negatively impact your credit score and should be avoided.
Accurate recording of previous addresses is crucial to prevent discrepancies and the appearance of simultaneous residency in two locations.
Cancelling unused credit or store cards may momentarily impact your credit score but can simplify your credit portfolio, making it easier to manage and potentially improve over time.
If you had joint financial accounts with an ex-partner, their credit score might affect yours. To address this, inform credit reference agencies of the separation and remove any links.
To position yourself optimally for the right mortgage in Durham, maintaining an up-to-date credit report for your mortgage broker is key. This empowers them to thoroughly understand your financial situation and recommend suitable mortgage options.
As committed mortgage brokers in Durham, our mission is to find the best mortgage or remortgage solutions tailored to your unique circumstances. Begin your journey with a free mortgage appointment led by our knowledgeable advisor, who will delve into your financial situation.
With this insight, we navigate diverse lenders to pinpoint the most fitting mortgage product from the available deals. Our team’s deep understanding of mortgage criteria ensures a smooth voyage through the entire mortgage journey.
Are you a first time buyer in Durham looking to buy your first home and are undecided on a location? Have your living circumstances changed and you are looking at moving home into a new area in Durham? However, where are you going to move to?
To help sway your decision, we have come up with our top list of places to live in Durham.
The city center is a captivating blend of history and contemporary living. With its cobbled streets, medieval architecture, and the iconic Durham Cathedral, the city center exudes a timeless charm. Residents enjoy easy access to a plethora of shops, restaurants, and cultural attractions. The city’s transport links make it convenient for those working or studying at Durham University, contributing to the vibrant and diverse community.
For those seeking a more tranquil setting while still being close to the city’s amenities, Nevilles Cross is an excellent choice. This residential area boasts tree-lined streets, parks, and excellent schools, making it an ideal location for families. With convenient access to the A167, commuting to neighboring cities is straightforward, and the nearby university facilities add an academic touch to the community.
The Viaduct area offers a picturesque setting along the River Wear, providing residents with stunning waterfront views. The Riverside Walk and Wharton Park are popular spots for outdoor activities, creating a peaceful and relaxing atmosphere. The neighborhood is well-connected by public transport, and the blend of modern housing and natural beauty makes Viaduct a sought-after location for those who appreciate the outdoors.
Framwellgate Moor is known for its affordable housing options and strong sense of community. With local shops, schools, and parks, residents find everything they need within reach. The community atmosphere is further enhanced by regular events and activities organised by local groups. Proximity to the city center, combined with the affordable housing market, makes Framwellgate Moor an attractive option for many.
Situated to the east of Durham, Gilesgate has become a popular choice for students due to its close proximity to the university campuses. The area offers a lively atmosphere with diverse amenities, including pubs, cafes, and recreational facilities. While it has a youthful energy, Gilesgate is also home to families and professionals who appreciate the vibrancy of the neighborhood.
As you embark on the journey to find your dream home, consider these seven outstanding locations, each contributing to the vibrant tapestry of Durham’s diverse and welcoming communities. As your trusted mortgage broker in Durham, we are here to guide first time buyers and home movers in Durham through the process and help you secure the suirable purchase or remortgage deal that fits your needs.
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.
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.
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.
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.
A 95% mortgage is as simple as the name would suggest; you are borrowing against 95% of the price of a property, and then you are covering the remaining 5% with your deposit. An example of this is if you looked at buying a property that was worth £150,000 with a 95% mortgage, you would be putting down £7,500 as your deposit and borrow the remaining £142,500 from the lender.
Off the back of the March 2021 Budget, Boris Johnson announced a Mortgage Guarantee Scheme for mortgage lenders, making 95% mortgages more readily available from the bigger high street banks.
This is fantastic news for First-Time Buyers and Home Movers alike, as this scheme will continue running until December 2022. Certain terms and conditions will apply though, which is something your Mortgage Advisor in Durham will be able to look at, to see if you qualify.
All our customers who opt to get in touch will receive a free, no-obligation mortgage consultation where one of our dedicated mortgage advisors will be able to make a recommendation on the best possible route for you to take.
95% mortgages are usually accessible by both First-Time Buyers in Durham & those who are Moving Home in Durham. Whilst saving for a 5% deposit sounds like a pretty straightforward concept, you’ll still need to have an acceptable credit score and prove that you are able to afford your monthly mortgage repayments, in order to access a 95% mortgage.
A good credit score is essential in the process of obtaining any mortgage, especially a 95% mortgage. Things like paying any current credit commitments on time, ensuring your addresses are updated and checking that you’re on the voters roll, can all help with your credit score.
Affordability is another one that is important to take note of. By giving the lender details of your income and monthly outgoings (things like your bank statements will be necessary for this) and any pre-existing credit commitments, your lender will be able to get a general overview of whether or not you are able to afford this type of mortgage.
Nowadays we see lots of family members helping each other get onto the property ladder, especially parents looking to further their children’s lives. The way this usually happens is by gifting the person looking to find their home, the deposit required. Known through the industry as the “Bank of Mum & Dad, Gifted Deposits are only intended to be a gift, and not as a loan. The lender will need proof that this has been agreed, before it can be used towards your mortgage.
When looking for a 95% mortgage, you want to make sure you have the right type of mortgage. Each mortgage type works differently, with that choice allowing you to find one that is most appropriate for your personal and financial situation.
Some homeowners and home buyers prefer Fixed Rate or Tracker Mortgages, mortgage types which mean you either keep interest rates at a set amount for the term given or have your interest rates tracking the Bank of England base rates.
Alternatively, you might find that Interest-Only or a Repayment Mortgages are more your style. Interest-Only allows cheaper payments until you need to pay a lump sum at the end (mostly now used for Buy-to-Lets), whereas a Repayment mortgage (a normal mortgage if you’d like) means you’ll be paying interest and capital combined per month.
Seeing as a mortgage is such a large financial outgoing, you need to be prepared and need to be aware. You might find things like higher interest rates, remortgaging difficulties due to less equity and then negative equity all cropping up if you’re not.
There is no need to worry though, as all these can be avoided if you’re savvy enough with your process to begin with. The more deposit you put down for a property, the less risk the lender will see you as.
A larger deposit, of say 10-15%, would not only reduce the rates of interest by a noticeable amount, but would also give the property more equity and reduce the risk of negative equity, thanks in part to you borrowing less against the property.
So, whilst the risks may seem intimidating, planning ahead and saving for a bigger deposit to access something like a 90% or even an 85% mortgage will be a massive help in your mortgage journey and something you’ll be able to reap the rewards from in the future.
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.
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.
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.
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.
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.
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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
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