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.
Fantastic! You have passed all of the required exams and have found great success in becoming a newly qualified teacher. Now it’s time for you to find a teaching job and get started in the classroom to rack up some experience.
In some cases, to be closer to that job, you may be required to look at moving home in Essex. If you own your own home already, you may benefit from the assistance of a mortgage broker in Essex.
Soon after you’ll be needing a new home to start a life in. Once here, you’ll be trying to balance the struggle of homeownership whilst finding comfort within your newfound role in the education system. This isn’t something you’ll be alone in, as we’ve dealt with many customers who feel this same way.
Hopefully with the help of a dedicated mortgage advisor in Essex, your process will go a lot smoother and quicker, reducing your stress.
The process of finding a lender who will be willing to offer a mortgage to newly qualified teachers can prove to be a little challenging. The reason for this is down to having little to no work history or being on a temporary contract.
Even though this is the case, you can worry less knowing that you may still be able to obtain a mortgage as a newly qualified teacher.
From time to time, some lenders may even offer good deals with those working within the teaching industry. The key to this is finding the best lender for your personal and professional circumstances.
This is usually the difficult part, though by enlisting the help of a mortgage advisor in Essex, you will be working with someone who can search thousands of deals and match you to the right lenders criteria.
The different types of mortgage available for newly qualified teachers generally include:
Here are some things that lender may consider during your process:
Our trusted and knowledgeable team of mortgage advisors in Essex have a lot of experience working throughout this industry, helping various people with the situations they are in relating to their mortgage. You’ll find there are lots of different benefits to home buyers using a trusted first-time buyer mortgage broker in Essex.
To take a look at your mortgage options, get in touch, and our dedicated team will take some details from you to determine whether or not you have the possibility of obtaining a mortgage suitable to your personal and financial circumstances.
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.
Once you are ready to move home in Essex and progress further up the property ladder, you need to start thinking about selling your existing home on the property market. The amount of equity in your home (the amount it sells for minus your current mortgage balance) post-sale, can be put towards your deposit for your next property purchase.
You will have the ability to top up your deposit of course, through a variety of different means, including the use of your personal savings, as well as a Gifted Deposit from a family member or friend. The latter is an incredibly popular way for many first time buyers in Essex to get onto the property ladder, though it’s still acceptable for homeowners looking to move house in Essex.
A seller will always have an idea of the lowest asking price they’re willing to accept, though a lot of them keep an open mind and are willing to at least entertain other offers. The way that you market and present your home to potential buyers will play a big factor in the speed of sale.
From both a buyer and sellers viewpoint, you’re going to need to do some research to be prepared for this process. Let’s start with a look at how to sell your home quickly:
When figuring out what your asking price is going to be, you need to make sure that you’re not going far over what the average price is nearby. Try not to be unreasonable; just because the estate agent has told you that the property could possibly sell for this crazy amount, doesn’t mean that it will actually get sold at that price.
Within the initial few weeks of your listing, you ideally want to draw in as much attention as you possibly can. If you are struggling to get a lot of viewings for your property, it might be worthwhile dropping your asking price.
If you have already found a home that you have now set your heart on, whilst still living at your current house, you need to try and sell it as quick as you can. That is the benefit of a fair asking price, as you are more likely to attract a potential sale early on into listing it on the market.
Our experience as a fast & friendly mortgage broker in Essex spans over 20 years. When looking at properties, the primary feature that always stands out, is the exterior of the property (generally the front).
Making sure your home looks easy on the eyes from the outside is your best bet for getting buyers interested in your home. This is all about nailing that first impression, so you need to be aware of how your home would look to someone not accustomed to their surroundings like you no doubt will be.
Sometimes, it’ll be as simple as having a driveway nicely jet-washed and a front lawn that is well kept and neatly mowed. This shows the buyer that you have taken good care of your home and you genuinely want people to be impressed by the way it looks.
This also creates intrigue with the person viewing your home. If the outside is this good, what might the inside be like? this creates a good feeling on their journey around, which could be enough to encourage a sale.
Remember, nobody ever gets a second chance to make a first impression on someone. Ensure your house has a great “kerbside appeal” in order to make the most out of each viewing you receive.
Although it’s always a chore to do, the first key step in trying to impress your viewer is to tidy everything up! This will help them feel welcome and comfortable when walking around your own home.
Remove anything that is unnecessarily cluttering the place, especially from the front area of the property. When your viewer walks in, you want them to get a sense that you’ve really looked after this home. Anything from a new doorbell to a new doormat can make a big difference.
Once you have sorted out your hallway, you should look around and clean your house room by room. Always take extra care when cleaning your kitchen and bathroom as these are some of the most important parts of a house. Cupboards and wardrobes should have everything neatly arranged within them.
If you are a smoker, the smell of smoke can often linger around the home, so it may be worth your time giving the house a good airing before any viewers show up. Anything that smells smokey and can be removed, take it out of the property.
All interior doors should be painted, clean all the brass fixtures and make sure all the doors can open as close as they are supposed to.
Make sure that each room has good lighting, preferably natural light if you can. Open all curtains and blinds in any of your darker rooms. Your home should feel nice and warm but not too hot that it makes the viewer uncomfortable.
All lightbulbs should be tested before the viewing to be certain that they are working properly. Despite what people claim about “baking bread” smells, this is an old-fashioned approach and could be detrimental to your viewings, so ensure there are no cooking smells around your home at all.
Although you may find doing so difficult, it’s important to try and avoid having your children or pets getting in the way whilst your viewers are taking a look around the property. Your goal is to make them to feel as relaxed as possible and not be stressed out, tripping over small children and animals.
It has to be said though, that it’s not inherently a bad thing to have them around, especially if the people looking around are considering starting their own family. It’s all about finding that balance between cute and homey, to annoying.
Another helpful tip in trying to help them feel at home, is to display any family pictures or paintings that you have laying around to decorate the house. It provides them with another friendly reminder that it is a cherished family home with lots of fond memories attached to it.
Definitely let your home viewer explore on their own and don’t crowd them too much. If they are a couple, they will likely want to discuss between themselves at various points throughout their look around.
As touched upon previously, your kitchen and bathroom should be impeccably cleaned and presented. Anything that isn’t in daily use should be put away into storage containers or cupboards. Your towels should be neatly stacked away as well and not left dangling on hooks or piled on the floor. The same goes for your clothes.
Consider washing your curtains and blinds, wiping your walls down and cleaning your floors and windows. On the topic of windows, they should be shining inside and out. Replace old bedding with fresh, new bedding and also carry out any repairs that need to be done.
Investing in new carpets for smaller rooms can be a cheaper alternative route for impressing your viewer. Carpets make rooms feel like they are welcoming and can show your viewer that you have truly taken care of the place.
A lot of homeowners who are selling their home often don’t realise that creating some open space can actually be rather helpful during viewings. The reason for this is because it allows your viewer to get mentally creative and consider the potential inside the property.
Anything currently being stored outside of cupboards should be put away or thrown away if it doesn’t need to be out. This can also be quite handy for moving, as anything that doesn’t immediately need to be out, can be packed away ready to be transported to your own new home.
Make lots of room on your kitchen worktops too and ensure that you haven’t left any pots out and about.
The type of garden attached to a property can often be the deciding factor for lots of people viewing a property. This is especially important as it’s generally the last thing they will see when touring your home.
Remove any excess rubbish outside and put away anything that is cluttering the view. Don’t take this as a call to stuff the shed though, as homebuyers will likely want to see inside that too.
Make sure that your fences have their slats properly in place and are given a fresh coat of paint or are creosoted. People really enjoy looking around colourful gardens, so adding some bright flowers (blues, pinks, yellows etc.) could lighten the place up and appeal to the viewer.
Anything you can do to liven up your garden could really give you the edge in pushing for a potential sale. Removing weeds and dead flowers, cutting the grass, removing grass clippings are all tasks you should definitely do to present it in it’s best light!
The truth is, people love other people, they like things that are relatable. You’ve got to make a good impression on your viewers too, so remember to be welcoming, honest and most importantly, be authentically yourself. At the end of the day, each viewer is just one of hopefully many, so where one declines to offer, another might.
Create a balanced perspective on every problem going on within your home. For example on this, if you had a problem with a leak in the past, say how you easily fixed it and that it’s not likely to happen again any time soon.
If you’re working with an estate agent, they will want to earn their commission by talking to the property viewers as much as possible. Always remember though, that no one knows as much about the house as you do… You lived there yourself! So don’t be afraid to jump in and give out more information to the viewer.
Last of all, remember the emotions attached to buying a home, especially if you’re dealing with a first time buyer in Essex. If you have a family, make sure you let them know how important and memorable this home has been during your tenure, as this is sure to leave an impression on any viewers who already have a family or are looking to start their own.
A fixed-rate mortgage is a mortgage that has been fixed for a particular set length of time, with the interest rates remaining the same for the entire duration.
Generally speaking, people within the mortgage world believe that the longer you fix your mortgage for, the higher that interest rate is probably going to be. With that in mind, if you are looking for the lowest rate possible, you should really look at taking out a short term fixed-rate mortgage.
The downside to a short-fixed term, is that you will be reaching the end of your term a lot quicker, meaning you will need to renew a lot sooner than you might have wanted. When the time comes to take out a remortgage in Essex, your monthly mortgage payments might be a lot more than they were before your term finished.
If you would rather not be searching for new fixed-rate deals every two years, but also have a preference to not reach the point where interest rates go too high, you might be better suited for a medium-term fixed rate mortgage.
Five-year fixed rates are some of the more popular choices that we come across when speaking to first time buyers in Essex, as they will provide you with the security of consistent monthly payments for the rest of your term. The downside with this one, is that if interest rates drop whilst you’re locked into that fixed deal, you will end up paying more overall than you otherwise would have had if you had gone with a shorter term.
The flip side to that, is if interest rates go up during your term, you’ll be sat comfortably at that lower rate for the duration. It’s because of this, that lenders may increase the interest rates on shorter terms, to future proof themselves, just in case. Usually, the longer your term, the more expensive it is going to be.
There are only a select number of 7 to 10-year fixed rates available to home buyers on the property market. These have always been the least popular of the choices, due to how long they are overall. Many feel that having a decade-long term is too long to be fixed in for a mortgage.
On top of interest rates, you will also need to consider the booking and arrangement fees that are involved.
A booking fee is payable upfront, whereas an arrangement fee is only payable on completion of the mortgage. You might know people who have added fees to the total of their mortgage amounts, but this of course increases the total amount you’d be paying off at the end.
Sometimes you might also find that your financial circumstances can suddenly change and you might need to repay your mortgage balance a lot earlier than had initially been planned for. When this happens, you will likely end up being charged for it.
This charge is known as an Early Repayment Charge (ERC for short). The ERC is calculated as a percentage of the amount that remains on the mortgage balance. If we say as an example, the mortgage amount you have remaining is £200,000 and you are able to pay that off earlier on into your term, with a percentage that is 2%, you would end up having to pay back £4,000 to cover the broken fixed contract.
Many homeowners aren’t aware of the Early Repayment Charge and think it’s as simple as paying off their fixed mortgage early. You are tied into a contracted deal and you can’t just jump out of it and pay it off early, unless you are quite content having additional large charges added to your account.
People who know about the charge may opt to just pay it off early anyway, in order to get a better deal that is currently on the market, especially if it is a limited offer that may not be available a few months down the line.
As an experienced mortgage broker in Essex, we would highly recommend that you avoid chasing after “headline” deals. Always make sure you remember that the lowest rates tend to come with the highest setup fees. Please get in touch today for any further fixed-rate mortgage advice in Essex.
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!
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 Essex 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 Essex & those who are Moving Home in Essex. 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.
Every mortgage lender has their own different way of deciding who gets accepted and who doesn’t. Some lenders criteria are hard to match up against and some are a little easier, it all depends on how strict they are and the quality of your credit score.
Often we see that mortgage applications are declined simply because a customer does not meet the right criteria. It’s reasons like this why we feel you’ll truly benefit using a Mortgage Broker in Essex, like ourselves. Our team of dedicated advisors will work hard to get you the most appropriate lender for you and your circumstances.
Firstly, before you apply, you should check your credit file to see whether or not it is in a good state. If it is not, then you may need to try and improve your credit score. There are lots of different ways that this may be possible, as listed in our article, though we will always recommend that you speak to a Mortgage Advisor in Essex to know exactly what to prioritise when working to improve your credit score.
It’s worth noting that only very few people are realistically eligible for every deal that is available on the market. This means that most of the time, people are just searching for the wrong deals for what they’re looking to do. Just because you have seen a cheap deal, doesn’t mean that you will pass the lenders criteria and qualify for it.
As an experienced and dedicated Mortgage Broker in Essex, we advise that do some research into the different types of mortgages available or Get in touch to benefit from a free mortgage consultation.
Something else we see regularly is customers using price comparison websites to find a mortgage. Whilst there may be nothing wrong with this, you need to remember that the price comparison websites can only check the different costs of a deal, not match you to all the nuances of a lenders criteria.
You can end up wasting a lot of time, as it can be weeks down the line of an application sometimes when a mortgage lender finally declines your case. Because of this, you may end up losing your property and/or breaking down a property chain. You may also find yourself getting declined because of picking the wrong mortgage, which in turn could damage your credit score due to a failed application.
Customers may find themselves being eligible for various deals, but in order to match the criteria for them, may end up being offered reduced deals. This seems to happen quite often, as the lender will first say that you can borrow a set amount and then later on change their mind and find a way to reduce the mortgage that were previously available to customers.
As mentioned, lenders all have their own unique way of doing things. You will often find that there is a huge difference between lenders and it’s very unlikely that you are going to match up against all of their criteria. You need to narrow down your options and work out what your best option will be.
Whether you’re a First-Time Buyer in Essex or Moving Home in Essex, we believe that getting in touch for some expert mortgage advice will be incredibly beneficial to you and your mortgage process. Not only will we support you from start to finish, through your journey, but we will also try to find you the most appropriate mortgage deal for your personal circumstances.
Over the years we have worked with thousands of specialist mortgage cases and been able to help customers who maybe feel down on their luck, find a level of success with mortgages that they never thought they’d achieve.
Approaching a trusted and dedicated Mortgage Broker in Essex, like Essexmoneyman, you’ll also be able to learn how best to improve your credit score, in the event of any unfortunate financial circumstances.
Need help with a Specialist Mortgage situation? Get in Touch today with a Mortgage Broker in Essex for a free initial mortgage consultation.