As a mortgage broker in Essex, we’ve seen many first time buyers in Essex and home movers struggle to start their mortgage journey. Whether this is due to their total deposit size, affordability or credit score, when we see an applicant in need of support, we will always offer a helping hand.
If this is also your situation and you can’t seem to get going with your mortgage application, you may need to contact a professional. As mortgage experts ourselves, we have seen lots of different reasons why applicants have been declined for a mortgage. Here are some of the most common scenarios that we come across:
Every lender will have their own, individual credit scoring criteria and you’ll find that some will be easier to match than others. You won’t be able to match every single lender’s criteria as most of them, especially specialist lenders, have carved out their own niche audiences. Furthermore, if you are an applicant with a high credit score and good affordability, you will not need to look for a specialist product or lender who normally works with applicants with lower credit scores.
You’ll also find that lenders offering the lowest rates will likely have the strictest lending criteria. To pass their criteria, you’re going to need a higher credit score and a clean credit history, etc.
Lenders need to know that you’re reliable and that they can trust you. They’ll never take on an applicant that has the potential to fall into areas over the course of their mortgage term. If you’re suffering from bad credit issues, you may need to look for a specialist over a high street lender.
In fact, we are a specialist mortgage broker in Essex and we have access to lots of different specialist lenders on our panel. We can compare each lender’s products and see whether you match any of them. It’s our job to help struggling customers take that first step onto the property ladder, even when they think that it’s impossible.
How much do I need to put down for my initial deposit? Is it 5%, 10%, 15%?
Usually, the lower that your credit score is, the higher your initial deposit will have to be. Remember that a deposit total will also vary from property to property. An increase in property price means an increase in the deposit amount.
If you don’t have a deposit, it’s very unlikely that you’ll be able to get a mortgage. There’s only a couple of scenarios where you may be able to get a mortgage without a deposit. One example would be if you’re taking out a right to buy mortgage in Essex.
You should take a look at government-led schemes, there are many different ones available that could help you get a mortgage with a small deposit. The schemes were brought in to help mortgage applicants struggling to get onto the property ladder. A couple of the ones at the forefront of the market include the Help to Buy Equity Loan, Shared Ownership or the Mortgage Guarantee scheme?
Find out more here: ownyourhome.gov.uk
As a mortgage broker in Essex, in some cases, we see that the applicant was not told the reason why their mortgage application was declined. Sometimes, your lender can just decline your application.
You may need to get mortgage advice in Essex if you find yourself in this situation. It could be anything from that you’ve tried to take out the wrong product to that you simply didn’t match the lender’s criteria. We tend to call this scenario “the computer says no”.
Essexmoneyman will never put your application in front of a lender when we know that you won’t pass their lending criteria.
As a mortgage broker in Essex, our job is to try and pick out a perfect mortgage product that suits your personal and financial situation. During the first stage of our process, we will measure your affordability. This is a huge part of the mortgage process, we need to know that you can afford a mortgage before continuing.
Once you pass through the first couple of stages of the mortgage process, the rest of your journey should be stress-free and easy-going. You may need a mortgage advisor in Essex by your side throughout the whole journey.
You will now no longer need to ask yourself “why can’t it be easier to get a mortgage?”, you can use a mortgage broker in Essex and get all of the help that you need.
Advisors in Essex are available 7 days a week. Book your free mortgage appointment online today.
Once you’ve had an offer accepted on a property, your lender will need to make sure that the house is worth what you said that you’d pay for it. They will do this by performing a property survey on the house.
A property survey will also show the overall condition of a property. If the property is in poor condition needs lots of work doing on it, your lender may lower the original amount that they were going to offer you as their mortgage offer doesn’t match the property price.
From minor damages to repairs that need action taken on them straight away, a property survey will show everything you need to know about a home before you move in.
There are three main types of property survey:
Each survey type is different in how they work, pricing and how long they take to carry out. In some cases, your mortgage lender may include a free property survey in your offer. This entirely depends on the lender that you’ve used as not every lender will offer this service free of charge. If a survey is included within your deal, you may end up paying slightly more for set-up/arrangement fees etc.
Each survey works differently, for example, one survey may go more in-depth than another. If your survey report shows something about your property that you weren’t told about, by law you are allowed to approach the seller and work out an alternative price if necessary.
These are the simplest types of property surveys. Mortgage valuations are performed to measure how much a property is actually worth.
If a Mortgage Valuation is carried out and it’s found that the property is not worth the amount that you’ve agreed to pay for it, your lender may withdraw their offer as they’ll be lending you more than the property’s worth. You can either try and re-negotiate the price with the owner or pay the difference between the offer and how much the lender is now going to lend you. This situation is called a down valuation.
This survey is the cheapest property survey; however, it won’t go into much detail. The survey will focus on obvious repairs and defects such as structural damages. It will not, however, show small, minor damages on the property.
For a report with further detail, you’ll need to upgrade your survey. Although this may be costly, in the long run, this could be worth it as you may find out everything that needs preparing in your home before further damage is done.
A Homebuyer’s Report will determine how safe the property is to live in. The survey looks at issues such as mould, damp walls and ceilings or things that do not pass the current building laws.
The property will be examined from top to bottom, inside and out. The surveyors will look at everything. This process could take up to a day on a large property.
As a mortgage broker in Essex, we would always recommend a Full Structural Survey if you want a detailed report of the home that you’re buying. We would particularly advise those buying an older house to take up this survey too as it will highlight major repairs and damages in the property. Older buildings are more likely to come with defects and damages.
Although a Full Structural Survey is the most expensive property survey, it will provide you with the most information about the property. The report will go in-depth, highlight the overall condition of the property, and show what changes will need to be made if the property purchase goes through.
A Full Structural Survey can take as long as a whole day depending on the size of the property.
If you are buying a new build property, property surveys work a little different. You’d think that since the property is new, you wouldn’t have to get a property survey carried out on it, however, it’s always best to do one just in case.
There is a property survey designed for new builds called a Snagging Survey. This survey will break down the property’s overall condition, pointing out both minor and major issues. The survey can point out something as simple as a missing door hinge to a crack in the ceiling (which is unlikely to find in a new build).
If you’re moving into a new build that’s already been built, it would be wise to get a snagging survey carried out on the property before you move in. This will give you the power to negotiate pricing if there is anything wrong with the property.
If you’re struggling to choose a property survey, our mortgage advisors in Essex are always here to help!
Get in touch with our mortgage team. We’ve helped thousands of First Time Buyers in Essex and Home Movers in Essex choose the best property survey for their new home, let us help you next.
You can obtain the services of a surveyor to carry out a Homebuyers report or building survey through the Royal Institution of Chartered Surveyors.
If you haven’t checked on your mortgage payments and rates in a while, perhaps it’s time for a change. We are regularly approached by customers who are checking to see whether they can access a better mortgage rate or not, and the majority of the time… they can!
In fact, most applicants show that they’ve been able to access a better deal for much longer than expected; this is why you should get your mortgage reviewed, especially when it’s for free.
Firstly, a mortgage review is a simple look over your current mortgage situation and personal and financial circumstances to see whether you can access a better mortgage rate or not.
A mortgage review is carried out by your lender, building society or mortgage broker in Essex. The process will work similarly to the way your original mortgage process did, starting with your enquiry through to completion.
During the process, you will also have to supply evidential documents such as Identification, bank statements, payslips and proof of address. This will allow your mortgage situation to be evaluated effectively as you have documents to back up factors like your income and how you are managing your current mortgage payments.
If you go through the mortgage review process and it turns out that you can’t access a better rate or you’re already on the best rate, you should know that you won’t be charged at this point if you use our services. So, you should take advantage of our free mortgage review, just to get an idea of what your current mortgage situation is.
A mortgage review is always worth it if you end up being on a better rate from it. Even though you’ve already been through the process before, doing it again could save you lots of money, further down the line.
Getting a mortgage review from time to time (usually every time your fixed mortgage term ends), may prevent you from slipping onto your lender’s standard variable rate on interest (SVR). Their SVR can usually be quite high. It’s likely to be higher than your current rate, meaning that you may see your monthly mortgage payments go up by quite a bit.
If your mortgage review concludes that you can access a better rate, it’s now time to remortgage or transfer products. If your remortgage advisor in Essex can see that there are deals out there that you match the criteria to, they will try and pick one out that perfect for you through a remortgage or product transfer.
A remortgage is when you take out a new mortgage product with another lender and a product transfer is when you take out a new mortgage product with your existing lender. Either route will help you obtain a new mortgage deal at a new rate (hopefully more competitive!).
Taking out a new mortgage product and avoiding your lender’s SVR could save you a lot of money further down the line, and that’s why a mortgage review can be so important.
Equity release can be a specialist subject, so before trying to take equity from within your home, we would advise that you speak to an expert for equity release advice.
During your mortgage review, you may get the option to take out a new mortgage product and take equity out too. You can release equity from your property for home improvements, to pay off debt or to even go on holiday, it’s completely up to you what you do with the money.
Releasing equity is a specialist subject remember, so if you are looking for a new mortgage deal and wanting to release equity too, we would recommend that you speak to a mortgage broker in Essex, like ourselves.
For a free mortgage review in Essex, get in touch with our team today. We have helped thousands of customers in the past achieve a better mortgage rate, even when they thought that they couldn’t!
For expert mortgage advice in Essex, contact Essexmoneyman today; open 7 days a week.
Firstly, what is a remortgage? Remortgaging is simply switching to a new mortgage product. This can also be known as a product transfer. The difference between a remortgage and a product transfer is that when you remortgage, you change products and lenders, whereas when you complete a product transfer, you change mortgage products but stick with the same lender.
The reasons for people wanting to remortgage can be different, it all depends on what the homeowner wants. They may want to look for a better rate of interest, consolidate their debts, or raise capital for things such as home improvements.
In this article, we are going to focus on remortgaging/transferring products for home improvements.
Before you remortgage, you will have to work out the estimated costs for the home improvements. Home improvements could be anywhere from extensions to conversions, so depending on how you want to improve your home, the costs may increase.
Once you have worked out your estimated costs, they will be incorporated into your mortgage. This will slightly increase your overall monthly payments as you are now paying off your mortgage as well as your home improvements. In some cases, your payments may barely increase. Again, this all depends on the home improvements being carried out. As a Mortgage Broker in Essex, we’ve seen some customers go up by an extra £50, to an extra £200.
Estimated costs include:
We would also advise that you have some spare savings aside from the remortgage, as if things go wrong or the costs don’t quite add up, you may have to cover them.
The most common reason for people remortgaging for home improvements is to make more space. Whether it’s because they’re starting a family or just want a bit of extra room within their home, the whole process is easily done and it also saves you moving home in Essex.
Rather than going through the whole moving process, if you already love the home that you live in… why move? It often works out that it’s much cheaper to remain inside your current home too!
You can remortgage for various different types of home improvements, some include:
If you are thinking of improving your home and want to go down this route, feel free to get in touch with our team for remortgage advice in Essex. Whether it’s because you need more room or just because you want to modernise your home, there is always a good reason to remortgage.
Our team works 7 days a week, so make sure to get in touch whenever you want to have a chat about your remortgage options. There are other reasons to remortgage, so if you want to go down another route, we would be more than happy to help with that too.
No matter your mortgage situation, we are sure that you’ll find our mortgage advice service in Chelmsford extremely beneficial. In the past, we have helped thousands of First Time Buyers and Home Movers secure exceptional mortgage deals, and you’re next!
Our mortgage broker process condenses into four simple steps, each one bringing you closer to securing a great mortgage deal.
Step 1 – Once we get in touch with our team in Chelmsford, we will get a few bits of information from you so that we can paint the picture of your mortgage situation. After we have evaluated your details, we will assign you to one of our Mortgage Advisors in Chelmsford and get you booked in for a mortgage consultation with them.
Step 2 – You will undergo your free mortgage consultation with a dedicated Mortgage Advisor in Chelmsford. During the consultation, your Mortgage Advisor in Chelmsford will get to learn even more about your personal and financial situation. This new information will allow your advisor to start searching for mortgage deals that they think will suit you best as well as save you money.
Step 3 – After your free mortgage consultation, your Mortgage Advisor in Chelmsford will begin looking for a mortgage deal for you. They will look at your personal and financial situation and compare deals that will only do anything but benefit you. They will always be open and honest with you, so don’t hesitate to ask any questions if you need to.
Step 4 – Your Mortgage Advisor in Chelmsford will recommend a deal to you and if you are happy to proceed with the product, we can help you prepare your mortgage application and submit it for you. Once this is all sorted it’s now time to property hunt and search for your dream home!
We always aim to above and beyond for you, no matter your situation. We will hold your hand throughout the whole mortgage journey, making every stress-free and simple.
Using a Mortgage Broker in Chelmsford like us could give your mortgage application that boost that it needs, especially if you’ve already been declined by your bank already. We have been working in the mortgage broker industry for over 20 years now, so we know exactly what lenders look for in your mortgage application. We also have experience in helping applicants increase their credit scores!
It’s not just our job to help you get a competitive mortgage product, it’s our job to provide our full help and guidance throughout the whole mortgage process.
We aim to deliver the same amazing Mortgage Advice in Chelmsford to every customer that comes our way. No situation is too complicated or tricky for us to deal with. Our Specialist Mortgage Advisors in Chelmsford have dealt with thousands of complex mortgage scenarios, nothing is too much of a challenge to take on.
We pride ourselves on our high levels of customer service, we love it when customers leave a review of their experience with us. During our time spent working within the mortgage industry, we have collected lots of amazing customer reviews, feel free to take a look!
Unlike other Mortgage Brokers in Chelmsford, we work late so that you can get in touch at a time when you feel most comfortable. If you want a quick chat before work or afterward, not a problem, we are still open.
Receive a free mortgage consultation with one of our Mortgage Advisors in Chelmsford when you get in touch with your expert Mortgage Broker in Chelmsford from 8 am – 10 pm, 7 days a week. We can’t wait to hear from you!
In some cases, you are able to get two mortgages; sometimes you can get even more. Depending on an applicant’s situation and their reason for applying for another mortgage, a second mortgage should always be considered.
There are lots of different things to consider when applying for a second mortgage. You will have to have a valid reason why you are applying for a second mortgage, here are the most common reasons that we come across as a Mortgage Broker in Essex:
People who have built up equity in their home may want a second mortgage to release some of their equity to fund another purchase or something else. When people release equity for another mortgage, they could be doing it to fund a Buy to Let property, fund a deposit on a new home… it could be for a lot of different things.
When transferring equity onto another property, you must know that it’s like starting fresh. You will need to obtain another mortgage for the property that you are transferring equity to. If you are currently on your lender’s standard variable rate of interest (SVR) you should look around for different products, it’s likely that you’ll be able to access a competitive rate.
Whatever the reason is for you wanting to transfer equity to get a second mortgage, you should be aware that it can be a specialist subject and if you get things wrong, it could be costly down the line. This is why it could be within your best interests to approach a Mortgage Broker in Essex for mortgage advice. They will help you through the whole process and will even try and get you a great second mortgage deal to accompany your property.
It’s not unusual for people to move out of an existing property with plans to rent it out. Yes, they will have two mortgages, however, they will have some income coming in from the property’s tenants.
If you are looking at getting a second mortgage and Moving Home in Essex, you must know that your previous home is still a huge financial commitment. Before you are accepted for a second mortgage, your lender will have to confirm whether you will be able to afford two mortgages or not. They must be certain that if a tenant suddenly moves out, you’ll still be able to afford both sets of mortgage payments.
This works the same as a Buy to Let mortgage, however, since you are doing it the other way around, it’s known as a Let to Buy.
If parents see that their children are struggling to get onto the property ladder, they may sometimes gift their children a mortgage through a second mortgage.
Due to the rapid increase of homebuyer demand, parents are offering a helping hand to their children. It’s mostly struggling First Time Buyers in Essex that we see benefit from this situation the most, although, it could be home movers too.
It’s kind of like a gifted deposit, but the mortgage is in the parent’s name. Sometimes it’s grandparents who offer to help out too, it depends on your situation and whether you are lucky enough to be offered this option or not.
Similarly to Let to Buy, Buy to Let is owning a second mortgage on a property for the pure intent of renting it out. There is nothing wrong with doing this if you want to pursue your Buy to Let landlord journey. we have worked with thousands of Buy to Let landlords before so we know the process extremely well.
For Buy to Let Mortgage Advice in Essex, make sure to get in touch with our Buy to Let team, we know how to help!
Is your name linked to a mortgage on an existing property but you want to move out and get your own place? If so, you must know that it can be quite difficult to get your name removed from this mortgage deal, it may require Specialist Mortgage Advice in Essex.
Usually, this situation comes around when a relationship breaks down in the property. Whether it’s a friendship or a relationship, it’s always unfortunate when it happens. In situations like these, more often than not a Mortgage Broker in Essex like ourselves can help out.
If you want stress taking off your back or any help at all with securing two or more mortgages, make sure to get in touch with us. Trying to get one mortgage can be hard enough in some cases, never mind two or more!
We are here to help and will always have your best interests at heart. Speak to a Mortgage Advisor in Essex today.
The question that every First Time Buyer in Essex will ask… “should I rent or should I buy?”.
As opposed to putting them both up against each other, you should consider the pros and cons to both and then decide on which option suits you and your future best. Of course, everyone has their own different things going on in their life and that’s why you should consider both options. You don’t know which one will suit you best until you take a look at the main differences.
More often than not, especially if you are younger, parents will encourage you to invest in property sooner rather than later. There are pros to doing this, but there are cons too.
In terms of monthly payments, you’ll often find that paying for a mortgage will be cheaper than renting. The Bank of England’s interest rates may fluctuate from time to time, so your mortgage payments could change and go up.
There are ways around this though, for example, if you secure a fixed-rate mortgage, your payments will remain the same until your term is over. Here’s an overview of fixed-rate mortgages:
If you were renting, your payments may also change. With increasing maintenance costs and Buy to Let Mortgage interest rates, you may find that your landlord may bump up your rent. It’s unusual for a landlord to want less from you, it’s a rare situation.
As long as you can manage to keep up with your mortgage payments, you will always have that sense of security within a home. No one can force you to move out as you are the property owner.
Being a tenant leaves you with little protection against things like this, you can get asked to move out whenever your landlord wants you out. Yes, they will give you notice; however, you can’t really argue with them as it’s their property. Some landlords may consider your personal circumstances and give you a longer notice period, however, not every landlord is as lenient and you may have to move out as fast as you can. All of this worry doesn’t come with owning a home.
The property market loves to reshuffle things now and again, it’s often a surprise when it happens too – you never know when a market boom or crash is around the corner. It’s great news when you find out that your house is going to go up in value, however, this works both ways and unfortunately, your property price can also go down in value.
History suggests that even if you purchase a property during the very peak of the market, as long as you can afford to keep hold of the property, eventually property prices will go back up. During the credit crunch in 2008, sold values dipped dramatically. After a few years and backing from the government, the market shot back up and before you know it, property values had reached an all-time high.
If you are forced to sell your home at the wrong time, you may end up losing money. You may have to sell your home quickly because of a relationship breakdown, a reduction of income or another personal situation.
You shouldn’t rush into a property purchase; buying a home is a huge financial commitment and you should only go forward with one if you are ready to do so.
Considering your future capabilities of being able to afford your mortgage payments is always smart too. You can protect yourself from some of these things, for example, if you are unable to work due to an illness, you could look at Critical Illness cover to help down the line.
You can always get the help from a First Time Buyer Mortgage Advisor in Essex if you are unsure on whether or not to purchase a property over renting one.
Now that you know a little more about the pros and cons of buying a home, now let’s talk about renting in Essex. Depending on your situation, renting could be the best option for you. There are a lot of different questions to ask before rushing into renting.
Buying a home is a long-term investment, you should be thinking about where you can realistically see yourself in the next 5-10 years. Whereas, when you are renting, you can consider the fact that you can move out whenever you want. For example, you could have been renting, but saving for a mortgage in the background. Once you have saved up enough for your deposit or you receive a gifted deposit, you can move out whenever you want to and get your process started in Essex, you just have to give your notice.
If you can’t see yourself living within your particular area for a very long time, you should think about the idea of renting. There is no point in buying if living in a certain area is only a temporary part of your life.
When you are renting, your landlord should be responsible for any major repairs on the property. You will find that some landlords are better than others, for example, some may take their time in getting back to you, and some may be great and get right back to you. You should do your research and check out reviews before you go ahead with anything.
You will have to contribute to some repairs though. The major repairs should be handled by the landlord and minor repairs should be taken care of by you. In Essex, if you choose to buy a home you will have to take care of all of the repairs and damages inside of the property.
When deciding whether to buy or rent with a friend or family member, as a Mortgage Broker in Essex, we would recommend that you look at renting first. Renting is a fantastic and more beneficial option is this is the route that you want to go down.
If you get tied into a mortgage deal and get yourself financially linked with your friend(s)/family, it can cause problems down the line when you want to move on and out of the property. It’s not always as easy as it seems to get your name removed from a mortgage.
It can often require Specialist Mortgage Advice in Essex to get this sort of thing moving. So, if you are looking at renting or even purchasing with a friend(s) or family, you should seek out an expert advisor’s help to assist you along the way.
Now that you know some of the pros and cons to buying and renting, you should now weigh up your options. Which is right for you? Which will benefit you most? Where will you be in 5+ years’ time?
These are questions to consider during any big decision in your life. You could even make a list of the pros and cons, that seems to always help!
When it comes down to the numbers, the majority of people choose to buy over rent, they see it as an early opportunity to get themselves onto the property ladder. People would also rather the money go towards their own benefit rather than someone else’s.
If you need more renting vs buying advice in Essex, feel free to get in touch with our friendly team today and claim your free mortgage consultation.
If you haven’t worked with mortgages before, you should know that they can be a tricky thing for most people as they sometimes require a specialist’s attention. The mortgage process can sometimes be a daunting adventure and that’s why it could be your best option to go to Mortgage Broker in Essex.
You need specific things when it comes to applying for a mortgage, a Mortgage Broker in Essex will give you all the tips, tricks, and documents which you will need to produce in order to aid your mortgage application.
One of the main things that you will need is an up-to-date credit report. Before you get a copy, make sure that you’ve paid off any outstanding amounts in terms of mobile phone bills and instalments. Even if it is only £50, your Mortgage Advisor in Essex will require various reports with no outstanding money.
Through our First Time Buyer Mortgage Advice in Essex, we can also give you ways to improve your credit score if you have low credit, for example, one way to boost your score could be to get enrolled onto the voters’ roll.
You need to provide photographic ID to confirm who you are. Most people use their passport as their proof of ID and their driving license as proof of address. If you are from outside of the UK, you will need to provide your Visa as proof to make your application eligible.
You will also need to provide your proof of address. An original bank statement of the previous three months and/or your driving licence will do the job.
As mentioned above you cant use the same form of photographic ID for your proof of ID and proof of address.
Your bank statements should evidence your income and regular expenditures. Lenders want to make sure that you are the person who takes your financial matters seriously.
Your lenders will specifically look for gambling transactions and regular bounced direct debits. These are things that could put your mortgage application at risk of being declined.
The Bank Statements you need to produce tend to be the ones where your salary goes in and your bills go out.
You will have to prove that you have the funds for your deposit for anti-money laundering purposes. It is important that your lender knows where your money has come from.
During your application process, don’t move around your money through various accounts as it could look strange and your lender may question why you’ve done this. Always be prepared to be accountable for your extensive credits and try to build up your savings into a single account.
Nowadays it’s not unusual for part of the deposit to come from a family member or friend through a gifted deposit. If you go down this route, the donor will need to provide a piece of written evidence to show that these funds are a non-refundable gift and it is not any kind of loan.
You will also need to prove that you can afford a mortgage and all of the other costs that come with owning a home. As an employee, you will need to provide your last three months’ payslips. Some lenders would like to see you P60 as well. They will also consider any regular overtime commission, some shift allowance, or bonuses. If you have a part-time job or are a self-employed applicant, some lenders will also factor these situations into consideration.
The mortgage process is becoming more and more difficult for the self-employed. If you are Self Employed, you will need your accountant’s help to provide you with the 2 or 3 years proof of earning from Revenue. If you submit your own Accounts, please contact us and we will advise you what to download from the Government Gateway.
Before moving into your new house, it is imperative to determine your estimated expenses every month. This will allow you to get an idea of your council tax and utility bills plus food, drinks, and regular monthly expenditures. This can help you work out a rough monthly disposable income. This will be the amount that you’ll be left with at the end of the month for paying the mortgage.
We can send you a budget planner before we continue towards our appointment and help you with the process.
The mortgage process isn’t easy, and through our First Time Buyer Mortgage Advice in Essex, we should be able to help you through the whole process and take some stress off of your back.
If you want your application to provide you with promising results during the first attempt, you should get some of these documents ready and listen to some of our helpful tips and tricks that we have mentioned in this guide. For further queries, don’t hesitate to get in touch for Mortgage Advice in Essex today. We will be pleased to hear from you So you can get what you have dreamt of in Essex.
Annabel contacted us looking for her first mortgage, buying with her partner. She had a clean credit history and a healthy deposit courtesy partly of an inheritance from her late grandma.
Annabel was a post-graduate, and when we first spoke, she was in the process of interviewing for her first job. She had two job offers on the table – one was for a permanent position, so getting a mortgage on that would have been no issues whatsoever. However, she also had another interview lined up for a role that would only offer her an initial 12-month contract.
Getting a mortgage for a contractor is no problem at all if the applicant can demonstrate at least 12 months’ history, but in Annabel’s case with it being her first job she wasn’t able to evidence that.
She didn’t want to take the permanent employed role but got torn because it was of equal importance to her (and her partner) to get onto the property ladder and she knew it would be more comfortable that way.
I was able to present Annabel with two High Street lender options: firstly, we had access to a lender who would grant her a mortgage on her first contract as long as there was 12 months’ remaining on it. It was a very narrow window of opportunity for her because immediately after the job commenced. Then there would be less than 12 months remaining which would push the case outside of criteria.
There was also a second lender who would grant her a mortgage on a first contract but only after she had been in the job for three months. Annabel started the career (which she loved) and after 3 months re-contacted me to ask if the mortgage was still available. It was, and now the clock started ticking again as she and her partner had a further 3 months to find a suitable property always to meet the “6 months’ remaining” element of the lender’s criteria.
Luckily the had kept their eyes on the market and made an offer, sent all their documents over which included three months’ payslips for Annabel and a copy of the contract to evidence there were>6 months remaining on the deal. The mortgage offer was swiftly produced at a competitive rate of interest, and indeed by a stroke of good fortune, it happened to be the cheapest mortgage deal on the market at that time.
When it comes to buying a home, there are that many different costs that you need to consider. Whether you are completely new to this or have been through the moving home process before you will know that buying a home can be very stressful. It can get even more stressful and expensive when you are buying and selling at the same time.
As a Mortgage Broker in Essex, especially amongst first time buyers in Essex, we always get asked the question of “how much does it cost to buy a home”. In response, we decided to make a video to give applicants an easy way of understanding all of the costs that they have to consider:
When you are thinking of buying a home, your lender will want to know whether the property is worth what you are paying for it. To do this, they will perform a property survey on the property that you are interested in. If you are lucky, your lender may provide this service for free, although, if this is the case, they may not show you the report.
If you don’t get offered a free property survey, you will have to pay for one; usually, you will have to pay a few hundred pounds for one. Of course, this depends on the property survey that you go for as they range in price. There are lots of different ones to choose from, your price will double each time you go higher up the property survey scale.
If you want to find out what each survey consists of, you should approach a Mortgage Advisor in Essex. They will advise you on what property survey to take and tell you the exact differences between each one.
If the property that you’re looking at buying is old or has been on the market for a long time, you may want to go for a higher property valuation. An older property has a higher chance of having something wrong with it and there could be a reason why a property has been on the market for a long time. It’s better to find out if there is anything wrong with the property before committing to it. Upgrading your property survey would be costly at the time, but thinking long term, it may be a fraction of what it would cost you for repairs over the years.
By rule of thumb, the mortgages with the lowest interest rates come with the highest arrangement fees. It may sound unfair that you have to pay for your mortgage to be set up, but it’s a long process that can sometimes cost you up to £1000. If you go down the Mortgage Broker route, your Mortgage Advisor in Essex will recommend you with the cheapest and best-suited way to go about it whilst also considering your personal and financial situation.
If your total purchase price is high, you want to make sure that your interest rate is low. However, you may want to borrow a smaller amount of money, if you are, then you should know it’s usually cheaper to take out a mortgage without fees as a rule.
Lender arrangement fees can often be added to your mortgage. If you elect to add a fee, then interest will be charged on the fee and this can really add up over the term of the mortgage.
You will need a solicitor to carry out all of the legal aspects of your purchase. Here are the things that your solicitor in Essex will check:
These are all things that may affect your ability to sell your house in the future.
Solicitor fees can usually be quite expensive, you will need to check whether their quoted price includes VAT and local searches.
Normally, all purchases require you to pay an extra amount to the government, this is known as stamp duty. This amount does vary from time to time so it may be worth checking the government’s stamp duty website to check what you may have to pay:
Full details can be found here: https://www.gov.uk/stamp-duty-land-tax
If stamp duty is due you will normally pay this upon completion to your solicitor who will make the payment to the government on your behalf.
You must know that the only case where you’ll be dealing with an estate agent would be if you were looking to sell a property. Estate agency fees can vary. As a Mortgage Broker in Essex, we would recommend that you look around and do your research before picking the first estate agent that you see. If you’re looking for a quick online service, finding an online-only estate agent could benefit you. They also tend to be cheaper as their service is all online.
If you want a more personalised experience with your estate agent, you will probably end up paying an extra 1-2% of your selling price. Estate agency fees are usually negotiable, if you go with a Mortgage Broker in Essex, they will sort all of this out for you, trying to cut prices wherever they can.
Most mortgage brokers will charge you for their service. The amount that they charge you is usually based on a percentage of what the lender pays the broker for the work they do on their behalf. Things such as property prices, etc all come into play too.
You should only be charged if you choose to continue with them once they have found you a deal. Most will allow you to part without paying after the consultation process.
People always try to find a cheaper alternative with anything, however, sometimes it may just be easier and safer to hire a professional to get the job done. People think that hiring their own van and moving their furniture by themselves is the better option, when in fact this can be a hassle and it could be made so much simpler by using a removal company. They are experts at manoeuvring furniture remember.