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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.
*Please note this information is outdated, and revelant during the start of the Covid pandemic*
At the start of the Covid pandemic, the Government promised that all borrowers would be allowed a three-month mortgage payment holiday if they needed it. Most lenders followed the Government’s guidelines and did their best to help their borrowers during these hard few months.
We feel that it is best to create a summary of what mortgage payment holidays are, what lenders are doing and who can provide you with help and guidance through the coming months.
On that note, we feel like this is a good time to talk about what mortgage holiday payments are and how they can help you with your mortgage payments.
They are quite simple. A mortgage payment holiday is a set-period, agreed upon between you and your lender, bank or building society, where your mortgage payments are deferred. In this situation, the set period should be around three months.
You will still have to pay back these payments. Over the period, you will receive interest which will be added onto your loan at the end of the payment holiday whilst your capital balance will not decrease. So, your overall mortgage loan will slightly increase. So you save money in the short term but in the long term, it may prove expensive.
Once you feel like you are ready to start paying back your monthly mortgage payments, either your monthly mortgage payments will be recalculated at a higher level or your mortgage term could be increased. Lenders prefer to not increase your mortgage term as it could put you past their standard retirement ages.
You may even be allowed to pay off a lump sum later on in the year to get your monthly mortgage payments back on track to how they were prior to your payment holiday.
Mortgage payment holidays are available for borrowers with both residential or Buy to Let Mortgages in Durham. This really helps out landlords as they now have help if rental payments are affected.
Here is the Government’s proposal following the COVID-19 outbreak:
Even if you had a mortgage payment holiday before, we always recommend speaking to your Mortgage Advisor in Durham. They will sort out everything out for you and work out whether you actually need to take a mortgage payment holiday. You can also go directly to your mortgage lender and enquire about taking one but this may not benefit you as you may not even need one. The main thing is not to panic and explore all of your options before rushing into anything.
Here are the steps you need to take if you won’t meet/aren’t meeting your monthly mortgage payments and have been directly affected by the COVID-19 outbreak:
For more useful information on how the coronavirus could affect your mortgage click here.
In most cases yes, they can give a negative effect to your credit score. However, you are taking one because of a virus so lenders shouldn’t let it damage your score.
To ensure that this is the case, before taking out a mortgage payment holiday, you must contact them. You need to record their answer as well as the date, time and the name of the person that you spoke with. This will avoid any confusion down the line if anything changes. It all depends on your lender, there is no guarantee that every lender will say the same thing.
You would’ve thought that everything would continue as normal, however, all lenders are now avoiding all remortgages and product transfers during a mortgage payment holiday.
This will affect borrowers approaching the end of their existing product as they may be forced to move on to a higher lenders variable rate. This could mean that borrowers who act too early and jump into a mortgage payment holiday deal straight away could end up accruing interest on a costly variable rate.
This is another reason why we say don’t rush into anything! Take it slow and evaluate your options with an expert Mortgage Advisor in Durham first, they will make sure that you actually need to take out a payment holiday first before diving in headfirst. There are lots of mortgage options out there so have a look first with your mortgage Broker in Durham.
Some lenders could offer you a temporary switch over to interest-only in order to reduce your monthly payments but not to add any more to the loan amount by still servicing the interest payments each month.
You don’t need to put all of your mortgages onto interest-only, but doing so could help you out financially.
If you have savings, remortgaging onto an offset basis could really help you out, you will be cutting down on monthly payments massively. For example, if you have a £250,000 loan and £50,000 in your savings, you would only pay interest on £200,000.
This may all may seem a bit stressful and it this may have come around faster than expected, however, you should try to take it slow and calm down. As your Mortgage Broker in Durham, we are still here to help and relieve you of all of that stress. Remember, we are still open as usual operating 7 days a week. Receive a free mortgage consultation with a Mortgage Advisor in Durham today, we hope that we can help you out!
A credit score is a tool that lenders use to measure an applicants ability to afford a mortgage. The higher your score, the more likely it is that you’ll be accepted for a mortgage. Which means that if you have a lower score, your chances of being accepted decrease.
Even though having a good credit score may look good on the outside, you must know that each lender has their own individual lending criteria and it’s more than likely that you won’t meet all of them. So sometimes it’s also down to your circumstances and not just your score.
Most lenders’ criteria are completely different from one another, lenders have almost developed their own niche market. You could end up matching to a handful of them or maybe only a couple. As long as you end up securing a great mortgage deal that is all that matter though and it’s your advisor’s job to help you do that.
Whether you go with your bank’s in-house advisor or a Mortgage Broker in Durham, your personal and financial situation will be evaluated and then compared with lenders’ and their mortgage products.
We would always recommend approaching a Mortgage Broker in Durham before going straight to your bank’s in-house advisor and this is because your bank can only offer you their own products. If you choose a broker like us, we are able to access thousands of different mortgage deals through our large panel of lender’s. Once we have your details, we will try our hardest to match you to a lenders’ criteria.
If you are struggling to match a lenders’ criteria, it could be down to numerous different things. The most common reason why people don’t meet lenders’ criteria and get declined for a mortgage is because of their low credit score. If this is the case, then you need to try and improve it.
Having unnecessary credit searches on your file could have a negative effect on your credit score. Lenders’ don’t like seeing that you are repeatedly checking your score, they may think that there is a reason for it and they could even start asking you questions about it during your application process. Even using price comparison websites could damage your score.
On a side note, if you are applying for a mortgage, we strongly recommend that you avoid applying for any form of extra credit in the meantime. Paying back owed credit before your application will look good on your application, however, borrowing/paying back credit during your application will have a reverse effect. If you borrow credit, some lenders’ could think that you cannot afford the deposit and are relying on the credit to help you.
A great way to improve your credit score is to register onto the Electoral Roll, it indicates stability and lenders really like that. It’s really easy to get yourself registered and the fact that it can increase your credit score, you’re missing out if you don’t take the opportunity.
If you are already registered, you should check that all of your information is correct as lenders will easily spot misspellings and an incorrect address.
Maxing out your card each month will negatively impact your credit score. If you are using a credit card, a lender would much rather that you pay off the balance in full each month as it shows that you are good at managing your money. If you are exceeding your credit limits or overdrafts, your lender won’t think that you take your finances seriously. This could massively impact your credit score, especially if you get declined by a lender due to this reason.
When people move home, especially from their parent’s house, people often forget to update all of their address’. When you forget to update your address with a previous credit provider, it can appear that you live in two different properties at the same time. This can hurt your credit score once lenders see this so make sure that you are keeping on top of what address’ are linked with each of your accounts.
Do you have any store/credit cards that are no longer in use? If you do, then you should contact the provider and get them to fully close your account(s). Having these accounts open could be doing your credit score more harm than good. However, this could also still have a negative effect on your credit score as the credit reference can’t really tell if it’s you closing the account or the provider. Don’t worry though, it’s a good thing to check up on as if you have lost a card and didn’t realise then fall victim for fraud, you could end up having a worse effect on your score.
If you are financially linked to a family member or ex-partner your credit score could be affected without you even knowing. However, if the account is still live, you cannot remove your link just yet. If you want to remove any of these links, then you should get in touch with the credit reference agencies and make a request.
More often than not, applicants see credit scoring as an unfair way of determining the success of a mortgage application. For example, you may have a low score due to personal circumstances, which applicants think is unfair. As a Mortgage Broker in Durham, we mostly see that it’s people that are Moving Home in Durham or Self Employed applicants who struggle with their credit score. However, if this isn’t your mortgage situation and you still need help with improving your credit score, you know to get in touch with.
Sending an up-to-date credit report to your expert Mortgage Broker in Durham could prove extremely beneficial to your mortgage journey. A great tool that we always recommend to our customers is checkymyfile.com.
Try it FREE for 30 days, then £14.99 a month – cancel online anytime.
The more your advisor knows about your finances the better. Also, there are still some lenders that prefer to operate the old-fashioned way and will manually assess your application. They will still have rules that they stick by about the number of defaults and CCJ’s that they will allow.
A Mortgage Broker in Durham, like us, likes to do things the new way and will always aim to deliver you the same Fast and Friendly Mortgage Advice service that you are all used to. We hope to hear from you soon.
As a Mortgage Broker in Durham, we often have First Time Buyers in Durham considering their first move onto the property ladder as they ponder whether to buy a home or continue renting.
When deciding whether to rent or buy, the most common thing that you will hear is that renting is a waste of money. You have to ask yourself, is it a waste of money? The answer completely relies on your personal circumstances.
In fact, times have changed and it’s now a lot more common to find people who are renting. As an expert Mortgage Broker in Durham, we thought that with all of our mortgage experience we should talk about whether you should buy or rent a property.
The property market has been dipping up and down for quite some time now, you can never tell when it’s going to drop again. So if you decide to buy a property and the market plummets, your property value could too.
This has happened to many unfortunate homeowners over the years, although, history suggests that even if you buy at the very peak of the market as long as you can afford to keep the property eventually prices tend to go back up.
For example, during the period of the credit crunch sold values dipped. Before the coronavirus outbreak in 2020, the credit crunch was one of the lowest economic periods of recent times. Surprisingly, less than a decade later these sell values shot up to a new all-time high, meaning that if you bought a property between 2005-2010, it was more than likely that your property value had increased.
What we are trying to say is that if you invest in a property, in the future your sell price could increase which shows that it was worth buying over renting.
On the other hand, you could lose money if you are forced to sell your home at the wrong time, for example, this could be down to a relationship breakdown or a reduction in your income.
If you are concerned about the risks that come with buying a home, talking to a professional Mortgage Advisor in Durham could put you at ease. Before rushing into anything, it could benefit you to know where the market is currently sitting. We have been working within the mortgage industry for over 20 years now, we know exactly how the market is performing and what deals will be available based on what it’s like.
Buying a home is a huge financial commitment and you want to make sure that you get it right the first time. It also needs to be 100% right for you, the most important factor is that it matches your circumstances.
Applicants tend to think that mortgage payments are more expensive than renting, however, this is usually not the case. Also, depending on the mortgage that you take out, your payments may fluctuate; this is due to the interest rates changing. If you don’t want an inconsistent interest rate (can sometimes go down if you are lucky), you may want to look into fixed-rate mortgages. A fixed-rate mortgage could be the best option for you as your mortgage payments stay at the same rate through your whole mortgage term.
When renting, you’ll usually find that your monthly payments stay the same. Sometimes your lender may increase your rent for one reason or another but it’s unlikely that they’ll ever reduce it.
People like buying a home for a sense of security. No one can force you out of the property unless you fail to keep up with your mortgage payments. Whereas if you rent, if something goes wrong on the landlord’s end, they could ask you to move out.
Of course, you have some protection when you are renting and get asked to move out; you will always get a notice period. This is a disadvantage to renting, you are living in someone else’s property so if they want you to move out, there isn’t much that you can do. This is certainly not ideal, especially if you have family or work nearby or you have children in a local school.
Sometimes landlords give their tenants the first refusal to buy the property if they are selling it so they can save on estate agents fees.
Renting can be more flexible than owning. If at any time you want to move out of the property, you have the complete right to; you can give your landlord notice whenever you want. This may be because of a job offer in another area or that you simply want to move somewhere new, etc.
This is made more difficult as a homeowner as you have to decide whether you want to keep your home and rent it out as a Buy to Let in Durham or sell it. The process of selling a home and buying a new one is time-consuming and expensive, so if you are considering going down this route, it may be best to get Mortgage Advice in Durham. Speaking to a Mortgage Advisor in Durham could take all of the stress off your back and it could allow you to access competitive mortgage rates.
If you think that you may not be around in a particular area for very long you should consider whether the property is worth buying. Buying a property should definitely be seen as a long-term investment.
If you are renting, your landlord should be responsible for any major repairs. There will always be some letting agents and landlords better than others, however, as a tenant you should expect to do some minor maintenance of the property yourself.
If you are a homeowner then all of this is on your own shoulders, and so is insuring the property which will be a condition of any mortgage you take out.
Despite what some people might say, we know that owning a home is not for everyone. If you are a First Time Buyer in Durham applicant maybe you should consider renting first, especially if you are young or are moving in with a partner for the first time. If you move in with a partner, it could end up favouring you to rent just in case the worst happens and things don’t work out. Getting a name removed from a mortgage can be tricky and complicated whereas if you are renting, it can be a much easier process as you can move out whenever you want.
Before diving headfirst into buying a home, it could benefit you most to look at all of your options and see which route benefits you most. Buying a home is a huge financial commitment, you need to be certain that this is right for you and your circumstances. If you decide to rent though it may take you much longer to save up for a deposit.
As a Mortgage Broker in Durham, we see that most applicants end up deciding to buy over renting. People see getting a mortgage as an investment and they would much rather see their monthly payments going towards their own benefit rather than someone else’s. It’s sometimes just a case of getting your timing right and also being in the right financial position to be able to proceed.
To see what route could be best for you based on your personal circumstances, get in touch with your experienced Mortgage Advisor in Durham. Durhammoneyman will hold your hand through the whole renting/home buying process and we will provide our full help and support at all times. We have been doing this for 20 years now, we know exactly how to help you!
For first time buyers in Durham, in today’s mortgage market, you’ve got lots of options to choose from. But don’t worry, we’re here to help you figure out which one is right for you.
All mortgages work in a similar way, but they can be a bit different when it comes to things like interest rates, how you pay back the money, and any extra fees. So, finding the most suitable deal isn’t just about picking the one with the lowest interest rate. It’s more about finding the mortgage that fits your situation the best.
To make things clearer, we’ve put together this guide to explain the different types of mortgages you can get in Durham. We’ll explain the difference between repayment and interest-only mortgages – these are the two main types you should know about. After that, we’ll move on to tracker and fixed-rate mortgages, which are both ways to pay back your mortgage.
A repayment mortgage is a type of home loan where you make regular monthly payments that cover both the interest on the loan and a portion of mortgage amount. With each payment, you’re gradually paying off the borrowed money along with the interest that the lender charges.
As time goes on, the balance of your loan decreases because you’re steadily repaying both the interest and the mortgage. This means that over the course of the mortgage term, you’ll eventually pay off the entire loan, assuming you keep up with your monthly repayments.
Repayment mortgages are designed to ensure that by the end of the mortgage term, usually 25 to 30 years, you’ll have fully paid off the loan and own the property outright. Because you’re consistently reducing the principal balance, the interest you owe also decreases over time.
Repayment mortgages provide the benefit of a clear and structured path to full homeownership. With each payment, you’re building equity in your property and working towards owning it outright.
An interest-only mortgage is a type of home loan where your monthly payments cover only the interest charges on the loan, and you’re not required to repay the original amount borrowed during the initial phase of the mortgage. This means that while you’re making payments, the amount you owe doesn’t decrease, and the mortgage balance remains the same.
With an interest-only mortgage, your payments are generally lower than those of a repayment mortgage because you’re not paying off the principal. However, it’s important to note that this type of mortgage typically has a specific term during which you’re allowed to make interest-only payments. After this initial period, you’ll need to start repaying both the principal and the interest, often leading to higher monthly payments.
Interest-only mortgages might appeal to landlords who are looking for lower initial payments or who anticipate a significant increase in their income in the future like with a buy to let mortgage in Durham, which would allow them to start repaying the principal later.
Interest-only mortgages can be complex and come with potential financial risks. It’s crucial to thoroughly understand the terms, risks, and potential consequences before considering this type of mortgage and to have a clear plan for how you’ll eventually repay the principal.
A fixed-rate mortgage is a type of mortgage where the interest rate remains constant, or “fixed,” for a predetermined period. This means that the interest rate you start with when you take out the mortgage will stay the same throughout that set timeframe, regardless of any changes in the Bank of England’s base interest rate.
The fixed-rate period can vary, typically lasting for 2, 3, 5, or even 10 years. Once this period ends, the mortgage usually switches to your lenders standard variable rate, unless you decide to remortgage in Durham beforehand.
The main advantage of a fixed-rate mortgage is stability. Since your interest rate remains constant, your monthly payments won’t change, making it easier to budget and plan for your housing expenses.
A tracker mortgage is a type of variable-rate mortgage that is linked to a specific financial index, typically the Bank of England’s base interest rate. The interest rate on a tracker mortgage “tracks” or mirrors the movements of the chosen index, meaning that when the index rate goes up or down, the interest rate on your mortgage will also adjust accordingly.
For example, if you have a tracker mortgage that is set at “Base Rate + 1%,” and the Bank of England’s base interest rate is 0.5%, your mortgage interest rate would be 1.5% (0.5% + 1%). If the base rate increases to 1%, your mortgage rate would then become 2% (1% + 1%).
Tracker mortgages usually come with certain conditions, such as a “tracker period” during which the interest rate follows the index closely. After this period, the mortgage might switch to a different interest rate structure, like the lender’s standard variable rate (SVR).
One advantage of a tracker mortgage is that it provides transparency and predictability since your rate changes are directly tied to a publicly available index. However, just like any variable-rate mortgage, there’s the potential for your payments to increase if the rate goes up.
An offset mortgage is a type of home loan that allows you to link your mortgage account to your savings and/or current accounts. The balances in these linked accounts are “offset” against the outstanding balance of your mortgage. This means that the amount of money you have in your linked accounts is subtracted from the amount you owe on your mortgage, and you only pay interest on the difference.
For example, if you have a mortgage of £200,000 and you have £20,000 in your linked savings account, you would only be charged interest on £180,000 (£200,000 – £20,000). This can lead to potential interest savings over the life of the mortgage.
Offset mortgages often come with slightly higher interest rates compared to standard mortgages, so it’s important to weigh the potential interest savings against the higher interest rate.
They can be particularly advantageous for individuals with substantial savings or those who receive irregular income, like freelancers or business owners. They provide a way to use your savings to offset the cost of your mortgage while keeping your funds accessible. As with any mortgage type, it’s crucial to carefully read and understand the terms and conditions to ensure it aligns with your financial goals and circumstances.
If you are looking at applying for a mortgage in Durham, it is key that you pay close attention to your credit score. The general rule is the higher that your credit score in Durham is, the higher chance you have of being accepted for a mortgage by a mortgage lender.
There are many aspects of keeping a good credit score including maintaining monthly payments, limiting gambling transactions and many more. A main factor that is usually left is making sure that all of your addresses are up to date.
Having too many addresses on your record can be seen as a negative factor to many. This is true to an extent, however, many people have approached this in a way that could cause their credit score more harm than good.
On a regular basis, we see mortgage applicants especially younger First Time Buyers in Durham who have moved out of their parents’ home to move into their own rented accommodation and haven’t changed their address. This has resulted in many of their post being delivered to their family address instead.
This includes things like bank statements, credit cards and electoral roll information and more. Usually this is accidental but we do find that it’s intentional. This isn’t a good idea as they will always be a record of your address somewhere.
Think about it, if you are setting up new contracts or getting post delivered from Amazon or eBay, it will be shown your new address on your credit file. As a result, when a mortgage lender carries out credit checks on you, they will see that this address exists and will show them that you’re living in two places at once.
Make sure that before you look at applying for a mortgage where you will be credit search, you have thoroughly checked that nothing has been left which could create a negative impact on your credit and harm your chance of getting a mortgage.
This will involve you logging into all of your accounts like credit cards, current accounts, shipping details, water and electric bills and importantly, the electoral roll (this has a significant impact!) to check that they are all updated with your new residential address.
Obviously, this only applies to those who have moved out and are living in their own place first. This is because people who are still living with their parents and haven’t moved yet can’t change to a new address they don’t have yet. In the case that you’re a first time buyer in Durham, don’t worry!
Whatever circumstance you are in, you need thoroughly check all these things before applying for your mortgage. We do find that many people forget about the electoral roll information which is something that you need to do as it can make a big difference.
Furthermore, check if the dates are correct too, that you know the specific dates you moved into your rented property and the day you left it.
You need to get the dates right too, knowing the exact date you moved into your rented property and the day that you left it. In the case that you make a mistake with this and there are time that overlap, a mortgage lender may feel like you are living in two places at once.
Through making sure that every bit of information you have on your accounts is up to date, you are demonstrating to a mortgage lender that you are serious about your mortgage journey and understand what you are doing. As well as this, you are making sure that you only have one consistent address at any given time.
By doing this, you are having a more open and honest approach when getting your mortgage application going. The goal for you is to try and impress your mortgage lender as best you can, put yourself in a good position so it’s key you keep these points in mind.
If you are still needing assistance with your mortgage advice process, book online for a free mortgage appointment and our team will connect you with a trusted Mortgage Advisor in Durham today!
Through our experience as a Mortgage Broker in Durham, we find that a First Time Buyer in Durham gets in touch with our team because they have no mortgage experience and are finding the process daunting so are looking for a helping hand.
When you book your free mortgage appointment in Durham you will be able to speak to an expert Mortgage Advisor in Durham and they will be your guide throughout your mortgage journey.
If you have saved up for a deposit either with the help from ‘the bank of Mum and Dad’ or have accumulated the amount from your savings, it’s time to kickstart your mortgage journey! On the contrary, you may be wondering where to start which is where we can help.
Whether you are a first time buyer in Durham and are stepping into this experience for the first time or a home mover in Durham who is looking for a different property, below are some top tips on how to get mortgage ready.
As a Mortgage Broker in Durham, we always recommend getting Mortgage Advice as early on in the process as possible. This way you will know how much you can borrow for a mortgage and how much it will all cost. There is nothing better than having a professional Mortgage Advisor in Durham by your side to help guide you through the whole process.
Obtaining an up to date credit report should also be at the top of your list, you want to know exactly where you stand in terms of your credit score. You don’t want anything holding you back from buying a home. Taking the above two steps will give you a good insight into how possible this is going to be and what your budget is.
Your Mortgage Broker in Durham, like us, will be able to obtain a fully credit-checked agreement in principle on your behalf. In order to get this, you will have to provide some proof of who you are to us, this includes your name, where you live and how much you earn. There is a lot of paperwork for you to get together so it’s a good idea to open a file for yourself and start collecting everything in advance.
In terms of proving who you are you’ll need to produce some photo ID such as a Driving license or passport.
In addition to the above, you’ll need to prove where you live. You’ll need to produce a utility bill or original bank statement dated within the last 3 months.
The analysis of your spending habits is one of the most important determining factors in whether you’ll qualify for a mortgage or not. Lenders need to ensure that you’re going to be able to meet your mortgage payments every month. Your bank statements should evidence your income and monthly expenditures. Lenders will not be too happy to see gambling transactions on your account, neither will they like it if you go over an agreed overdraft limit or if your direct debits bounce regularly.
You will have to provide evidence that you have the funds in place for the deposit, this is also for anti-money laundering purposes. Try not to move monies around your various accounts too much as it will make evidencing the audit trail much more difficult. All lenders will like to see that your savings account has been built up over time in order to afford the deposit. It shows you are taking this seriously and managing your money well.
Gifted deposits are becoming increasingly more popular, we are seeing that most of our applicant’s 5% deposit is made up of these. These gifted deposits are often gifted by family members or friends. These funds can’t just be handed over, they need to be evidenced; meaning the “donor” will need to sign a letter to confirm that this is a gift and not a loan.
In terms of affordability, the most important thing is to be able to prove your income. If you are employed this tends to be by way of your last 3 months’ payslips and most recent P60. Lenders can take into account regular overtime, commission, shift allowance and bonus. If you are Self Employed in Durham then you’ll need your accountant’s help. This will be to request your tax year overview.
It’s always a good idea to do some research and make a note of an estimate of your anticipated outgoings after you move house. You can work out an idea of how much the council tax and utility bills will be. In addition to that, you can work out your regular expenditures, such as food and drink. This will demonstrate how much disposable income you have available to pay your mortgage from.
When applying for a mortgage, things can get slightly complicated if you are doing everything by yourself. This is why having a Mortgage Advisor in Durham by your side could prove extremely beneficial. You want to do your best to impress your lender and show them that you have done all you can within your power to get everything ready for your mortgage application.
Durhammoneyman can help you with this and depending on your circumstances, we could have everything arranged within 24 hours of your free mortgage consultation. Get in touch today, we can’t wait to hear from you!
No one plans a divorce or a separation when you are buying a house, however, they do happen and things can turn the other way and become complicated. One thing that may turn complicated is your mortgage commitments with your ex-partner. If things do get out of hand and you’re struggling to manage everything on your own, just know that your expert Mortgage Broker in Durham is here to help.
Here at Durhammoneyman, we have dealt with thousands of specialist cases over our 11 years of working within the mortgage industry. This includes helping our customers overcome their mortgage doubts through a divorce or separation and trying to help them remove their name or their ex-partner’s name off of their joint mortgage. When our clients reach out to us for help with their mortgage and their divorce or separation, we usually get asked the same three questions:
1. How do I remove my ex-husband/wife from my mortgage?
2. How do I remove my name from my ex-partner’s mortgage?
3. Can I have two mortgages?
It can be tricky trying to make changes to your mortgage, especially during a divorce or separation. You have to remember that both yours and your partner’s names are on the mortgage and you can’t just take one off like that.
The situation can get a little more complicated if there are children involved as there are the questions of who will live with the children and will it be in the current or a different home. We usually see that it is the mum that stays in the current household but it can be either.
There may come a time that whoever is “in situ” wants to take over the mortgage in their own right. Sometimes, both parents may want a fresh start in new homes of their own.
You need to be aware that even if you are able to prove that you have been paying your mortgage payments without any help from your partner, it will not change that their name is still tied into the mortgage deal. Even if they have moved out and aren’t helping out with any of the payments, their name is still on the mortgage and you need to get it removed.
You can do this one of two ways. You can either go directly to your lender to ask about removing a name by yourself or get the help of an expert Mortgage Broker in Durham, like Durhammoneyman.
Either way, they will have to be certain that the remaining applicant on the mortgage will be able to afford a mortgage on their own in the future. The way that this will be checked is through an affordability assessment, you will have to take one of these regardless of whether you have been keeping up with your mortgage payments or not.
Normally, during this point in the process, there is already someone who can step in and replace the ex-partner. This is typically a family member, friend or another partner.
You need to remember that every lender has their own unique way of assessing your affordability so don’t worry if your current lender says no. There are other options available, for example, you should approach a Mortgage Broker in Durham, like us who will try their absolute best to help you!
Removing your own name is similar to removing someone else’s, the basic ground rules apply for both. Firstly, both of your names are on the mortgage, so even if you decide to leave the family home, you are still responsible for any joint financial commitments you took out with your ex-partner. The only way to get your name off the mortgage is by going directly to your lender or with the help of a Mortgage Broker in Durham.
The mortgage payments for your old property will be taken into consideration if you want to buy a new property in the future so it is important that you take this into consideration before making an offer. This is why we always recommend getting help from a professional Mortgage Advisor in Durham.
Before you make an offer in the future, you must consider that your mortgage payments for your existing property will be taken into account. This is why we advise that you get Specialist Mortgage Advice in Durham; you may have forgotten this and your income may have changed meaning that you can’t really afford a mortgage as of yet. If you apply and get declined, you could potentially leave a negative effect on your credit file.
You will always find that some lenders are stricter than others which will affect how much they will lend you. If you come to us for Mortgage Advice in Durham, we will take this into account when recommending the most suitable lender to apply for a mortgage agreement in principle with.
Yes, you can have multiple mortgages and even more than two if you want! Lenders and their credit scoring systems will take different factors into account when you apply for a second mortgage. One of the main deciding factors will be your current financial commitments.
If you still have ongoing commitments and you fail the lender’s affordability assessment, you could potentially damage your credit score. This is why we always recommend that before you apply directly with a lender you should go to a Mortgage Broker in Durham.
A Mortgage Broker in Durham, like Durhammoneyman, can perform a search for you without damaging your credit file to check whether you will be able to afford a mortgage. We can calculate your maximum borrowing capacity which can allow us to get an idea of your budget and how much your monthly mortgage payments are going to be on top of your current financial commitments.
Having an expert Mortgage Advisor in Durham by your side every step of the way could prove highly beneficial. Moving Home in Durham can already be stressful enough!
An Advisor will be available to answer any questions that you may have along the way and be recommending you with the best route to take at all times. We want the best for you through these tough times! Contact your Mortgage Advisor in Durham at Durhammoneyman today and receive a free mortgage consultation!
We do find that many people don’t consider having a second mortgage, having one already stresses them out enough! If you are looking at having more than one mortgage can become a pretty costly option in some cases. Contrary to this, they are an increase in people looking at getting two or more mortgages. Below are some reasons why people may want to invest in more than one mortgage:
In some cases, people who have built up equity in their home may begin looking for a second mortgage and this is due to wanting to release some of their equity to fund another purchase or something else.
If you are in this same circumstance and are thinking about releasing equity for a second mortgage then you are going to need another mortgage deal to transfer onto. Your choices are to either search a deal yourself or contact a mortgage broker in Durham and they will sort it for you.
We have over 38 different lenders on the panel as a mortgage broker in Durham, each with unique mortgage deals. This means we can search through 1000s of different deals until we found a product that is fitting for you and your circumstances. Keep in mind that lenders do not reward loyalty and will and it’s likely they will offer favourable deals to first time buyers in Durham instead of you.
This is known as a Let to Buy mortgage. Some people want to keep their existing property and the mortgage so when they move home, they keep it with the purpose to rent it out. If you are looking to move home in Durham and exploring the Let to Buy option, your second mortgage will become your new residential one.
Our expert mortgage advisors in Durham do find that many first time buyers seek help when starting the mortgage journey for the first time. Our team see many parents and grandparents helping out in this situation. The most common case we see if that either the parents or grandparents of the applicant give up their home and move out to get a second mortgage or they actually purchase the second home for them (kind of like a gifted deposit)
For those interested in a second mortgage for a buy to let in Durham, we do strongly recommend you get in touch with a buy to let mortgage advisor in Durham like ourselves. Here at Durhammoneyman, we have helped many buy to let landlords find mortgage deals that achieve their mortgage goals.
Contact our team to kickstart your process of getting a buy to let second mortgage in Durham.
In the situation where you named on another mortgage and are looking to a buy a new property to live in, we may be able to help. Many people look into this option because they are going through a divorce or separation. We strongly recommend you seek the services of a specialist mortgage advisor in Durham who can help you out in this difficult time.
We are to search through 1000s of second mortgage deals on your behalf and your dedicated mortgage advisor in Durham will work hard in finding the product that is perfect for your situation. Book online or get in touch with your expert mortgage broker in Durham for your free mortgage appointment today.
We know that everyone is stressed in the UK. We are here to help with some of that and help you with anything mortgage-related. In Durham, we are still here to provide the same amazing mortgage advice service that you know us for!
We are not trying to scare you, we just want to help you. A lot of problems have come up because of the coronavirus and you are most likely questioning where it may leave you financially. Here is what we are going to talk about in this article:
Here at Durhamoneyman, everything is exactly the same. We still have Mortgage Advisors in Durham waiting to take your phone call 7 days a week. Give us a call and receive a free initial mortgage consultation. Our excellent service isn’t changing.
We are still continuing at the same pace we always do working hard to deliver you fast and friendly Mortgage Advice in Durham. We are determined to keep everything the same as it was prior to the outbreak.
Now that the Bank of England has reduced its rates, lenders have followed their actions and decreased their standard variable rates too. On the light side, this is really helpful for first time buyers in Durham as the low rates allow you to get onto the property ladder much easier.
The outbreak of coronavirus could potentially impact your monthly income, especially if you have to be isolated. This could really affect the Self-employed in Durham and small business’.
If it is getting harder and harder to pay your recurring payments, you may need to contact your lender. Sometimes, they can be understanding and agree on a mortgage payment holiday period to help you out.
Now that the interest rates have dropped and lenders are giving no hints of them rising back up, now has never been a better time to get a mortgage. First-Time Buyers, the Self-Employed and Home Movers have never had an opportunity like this in a long time.
We recommend that you stick with your purchase only if you know that you will be able to afford the payments. For example, if you are worried about losing your job, backing out of the purchase might be your best option. You need to remember, you are not committed to completing your purchase until the contracts are exchanged.
At the moment, nothing has changed at Durhammoneyman. Speak with your Mortgage Broker in Durham and we can advise you on what to do once we have assessed your requirements. We hope to hear from you soon!
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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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