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What is a 95% Mortgage?

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. 

95% Mortgage Advice in Essex

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.

Can I get a 95% mortgage?

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.

Improving your credit score

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 

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.

Can my family help me get a 95% 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. 

How do I choose the right 95% 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.

How can a bigger deposit help with my mortgage? 

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. 

The Pros & Cons Of Using A Mortgage Broker In Essex

Have you ever thought of using a mortgage broker in Essex? Well, you may not realise it initially but the fact is there are some good reasons for it. Although, it is quite possible to proceed by directly contacting the lender, most people prefer dealing with a mortgage broker.

What Are The Pros & Cons Of Using A Mortgage Broker?

People often consider it a great chance to save money by not hiring a mortgage broker. It seems a cost-effective idea to proceed with everything on your own.

So you may also be one of those who prefer going directly to the Bank or Building Society. Another pro that was previously in the minds of the people was that “the Bank Manager knows my finances inside out”, although this changed when credit scoring was introduced.

It is also true that some lenders have various mortgage products only for the people who directly reach out to them. The main intention behind such ideas is to attract the consumers directly and grab their attention with exclusive offers.

Ultimately, it serves as a great tool to spread the business. The interesting part is that it is equally enticing to speak with a mortgage broker as well. Some offers can be found only through a mortgage broker.

From 2014 onward, it was not possible for the lenders to sell mortgages to anyone on a non-advised basis. At that time, it was a common perception that non-advisors were forcing their advice on the customers and not letting them benefit from consumer protection benefits that should come with speaking to a professional mortgage advisor in Essex.

There’s also the fact that taking an appointment with a bank can sometimes take months to happen. A mortgage broker in Essex can often get you booked in within that week.

Now you can easily understand how these kinds of issues gave rise to the importance of mortgage brokers and diverted the minds of the people towards them. As a result, more and more applicants started relying on the mortgage brokers and were quite willing to pay their fees.

Now they had more trust for the mortgage brokers who are often able to offer their services the same day, like ourselves. We are always ready to help you, so Get in Touch and we will put you through the qualified mortgage advisors either immediately or within the same day if we can.

Handling Difficult Cases

You might be wondering: what can be the reasons that make some mortgage applications far more difficult than they should. So let’s have a look at some of the examples: 

  • The applicant has the poor credit history  
  • They are self-employed and the income is not fixed 
  • The deposit source is mixed that contains both gifts as well as the savings 
  • They want to keep their current house and want to buy another 
  • Zero hours contracts of the contract workers
  • And the most important is affordability 

In the past years, it was much easier for the lenders to get the competitive edge by just presenting more enticing offers than their competitors. But it is not as simple now and the thing that distinguishes one lender from the other is the lending criteria.

To make all this easier, all you need to do is to discuss your situation with an experienced and professional mortgage broker and ask them whether they encountered a similar situation in the past or not. After a lot of research and hard work, a mortgage broker will hopefully be able to help you through and recommend the most suitable mortgage that matches with your budget and does not break the bank.

Here it is worth mentioning that even if the application is simple, we have more experience and knowledge that will surely help you in getting the most appropriate deal. For example, we have a professional team of mortgage advisors in York that will guide you about other professional options and services such as solicitors. When you keep yourself in touch with us, we will also update you about the surveys and protection information available to you.

Responsive Service

Our distinguishing feature is that we are far more fast and responsive compared to the other mortgage brokers. The biggest reason why customers often need the mortgage help is that everyone nowadays is very busy and needs someone who can lift off the weight. Our mortgage advisors will do that for you quite smoothly and you will definitely appreciate the benefits of having an expert on board.

Ready to discuss your mortgage plans? Feel free to Get in Touch with your specialist mortgage broker in Essex. We are available from 8am until 10pm, 7 days a week, to help you out in finding the right mortgage deal. 


We cover Essex and surrounding areas: Mortgage Broker in ChelmsfordMortgage Broker in BrentwoodMortgage Broker in Southend-on-Sea

Leasehold Houses in Essex

Leasehold House Mortgage Advice in Essex 

After the introduction of the Help to Buy Mortgage Scheme, a lot of home builders started putting up their newly built homes for sale on a leasehold basis other than a freehold one. After a while, the government decided to intervene after seeing how wrong the system was.

Some of the major housebuilders in the UK have been accused of neglecting social conscience in a bid to make profit. These housebuilders tend not to care that the country needs new houses, but are rather interested in making profit. The media have accused them of intentionally waiting for the market to be favorable without building new homes, a term referred to as “land banking”.

The consolidation of the industry has made builders inherit lands that are on leasehold into their organization. They claim to provide both leasehold and freehold properties up for sale to buyers to help them make informed decisions.  

Property market for leasehold houses 

Alot of persons began feeling as though the property market had shifted a lot towards leasehold houses as soon as they got an idea of how much the builders have been making from the leases. Alot was exposed after it was discovered that a chief executive of one of leading builders in UK made about a £100m in bonus.

After asking for permission to make certain alterations in their homes, some of the leasehold owners discovered that they had received thousands of pounds in quotes. The fees were charged by leasehold management companies.

The owners also discovered that the annual ground rents would double after ten years and they would find it difficult to sell their homes in the future after this increase.

They were able to notify their MPs and the subject was debated in parliament; it was agreed by the government that anyone buying a house (not an apartment or a flat) will most likely be a freehold.

So, if you own one of these houses and you are not aware it is a leasehold then it’s important you know that you can inform the free holder of your house if you have interest in purchasing the freehold off them.

You will have to negotiate a deal with the free holder if you’re interested in buying. The length of time that you have lived in the property would have to be factored in as well.  

Problems with leasehold houses 

Service charges are also another major issue alongside leasehold house. When housebuilders get permission from the council to build on a plot of land, certain areas such as roads, grass verges are usually left out.

These areas would then need to be outsourced to other companies, saving money for the homeowners and builders. The owners of the leasehold property would then have to contribute on top of their council tax. This could happen to either leasehold or freehold houses.

The costs of service charges may rise as well and this is another expenditure that will be added on your taxes as well. In some case, the residents would have to come together into an association that would allow them pick another service provider.

As trusted Help to Buy Mortgage Advisors in Essex, it’s important you consult your solicitor first concerning the lease if you intend to buy leasehold houses. It’s quite easy to get excited about buying a home, it’s important you realise that this is a major investment and the decision should be done carefully.  

The Different Types of Mortgages in Essex Explained

Mortgage Advice in Essex

Regardless of whether you are a First Time Buyer in Essex looking to make that initial jump onto the property ladder, or are going through the process of Moving House in Essex, it will soon become apparent that there are multiple different types of mortgage available to customers.

Some options are a little more popular than others and some are quite hard to come across. We put together a list of mortgage types we find that we encounter the most frequently and that you will likely come across in your search for a mortgage. You will also see each section accompanied by one of our MoneymanTV episodes, which we hope you will find very useful ahead of the mortgage process.

We have a collection of Helpful Mortgage Guides on moneymanTV here, as well as our “Mortgages Explained” playlist here.

What is a Fixed-Rate Mortgage?

A fixed-rate mortgage means that your mortgage payments, for a specific period of time, will stay the same, giving some consistency to your process. The length of your fixed payments is completely your choice, with generally homebuyers choosing common lengths of anywhere around 2, 3 or 5 years or longer.

Regardless of any changes to inflation, interest rates or the economy you can rest easy knowing that your mortgage payment, often your single biggest outgoing, will not drastically change, giving you some normality.

What is a Fixed-Rate Mortgage? | MoneymanTV

What is a Tracker Mortgage?

A tracker mortgage means that the interest-rate of your mortgage will follow the base rate of the Bank of England. What this means is that the lender that you are with do not choose interest-rate and neither will you. Instead, you will be paying a percentage above the Bank of England base rate, something which can change slightly. A prime example of this, is if the base rate is 1% and you are tracking at 1% above base rate, that means you will be paying a rate of 2% on interest.

What is a Tracker Mortgage? | MoneymanTV

What is a Repayment Mortgage?

When you take out a repayment mortgage you will be paying back capital and interest combined each month of your term. So long as you keep your payments going for the full length of the mortgage term, you will be guaranteed to have your mortgage balance paid off by the end, with the property then becoming yours to own.

In regards to mortgage payments, this is considered to be the most risk-free way to pay your capital back to the mortgage lender. Early on into your mortgage term, you will primarily be paying back the interest portion of the payments, and your balance will start to go down really slowly. This is especially the case if you have taken out a longer term of around 25, 30 or more.

Where this changes for you, is when it comes to the last ten years or so of your mortgage. Your monthly mortgage payments will be more capital than interest, with the balance coming down much faster.

What is Repayment Mortgage? | MoneymanTV

What is an Interest-Only Mortgage?

Whilst many modern day buy-to-let mortgages are set up on an interest-only basis, you’ll find it a lot harder trying to get a residential property on the same basis. The likelihood of a mortgage lender offering an interest-only product to customers these days is not very high, though in some cases it is possible.

Situations where this might apply to a customer include downsizing when you are older or have other investments that can be used to pay back the capital. Lenders have strict rules when it comes to offering these products now and the loan to values are a lot lower than they used to be back in the day.

What is an Interest-Only Mortgage? | MoneymanTV

What is an Offset Mortgage?

With an offset mortgage, the lender will set you up a savings account that will function alongside your mortgage account. The way that this works is that, for example, let’s say you have a mortgage balance of £100,000 and £20,000 is deposited into your savings account, you only pay interest on the difference between this, which in this case is £80,000. This can be a very efficient way of managing your finances, especially if you pay a higher rate of tax usually.

What is an Offset Mortgage? | MoneymanTV

Should I Use My Estate Agent’s In-House Mortgage Advisor?

Estate Agent Mortgage Advice in Essex

In the beginning of your mortgage process, if you choose to use a large estate agent, they will likely try to persuade you to use their in-branch Mortgage Advisor and their recommended conveyancers. You are under no obligation, however, to use their in-house advisor and you can still get the same or better deals from elsewhere! Unfortunately, First Time Buyers are often the ones that get caught out and end up being tricked into using services that they don’t want or need.

Searching for your own Mortgage Advisor in Essex could ultimately be the best path for you to take. An estate agent’s advisor will be biased to only their products, whereas a dedicated mortgage broker in Essex will be able to give you more perspective of each side.

If you do your research and still end up back with your in-house advisor, that’s your call and is far enough, though you should always remember that you have other options you can choose from, should you want that.

Our view consists of both transparency and efficiency, as we want to provide the best possible customer experience and also the best advice for your individual financial situation, whilst still delivering both a fast & friendly mortgage advice service.

Sales tactics of estate agents

If you do go down the route of using your estate agent’s in-house mortgage advisor and conveyancer, you need to take a look at where the cost of their service is coming from. They could be charging you for their services without asking you and adding it to additional fees, with the hope that you don’t notice.

Speaking with a trusted mortgage broker in Essex will eliminate these concerns, as you get exactly what you paid for, no strings attached. Your dedicated advisor will gladly break each cost down for you and relieve any uncertainty you may be feeling.

Even though it is a highly illegal tactic, if you choose not to take the estate agents in-house mortgage advice, they may refuse putting your offer forward on a property you are fully capable of being accepted on. For example, you could be using a broker and they may push another offer to completion over yours, simply because you aren’t using their services. Again, please note that these situations are illegal.

Estate agents may try even more underhanded tactics by doing things like trying to charge you with extortionate in-house conveyancing fees. Even with a straightforward purchase, they have been known to try and charge you with fees upwards of £1,500. If something like this happens during a purchase, you have full rights to ask them where they have got these prices from and for them to provide a full breakdown of where the costs have come from.

A trusted mortgage broker in Essex only has your best interests at heart, meaning a lot of the problems caused by going with an estate agent can be avoided.

How can I get a Mortgage in Essex?

Finding the right Mortgage Advisor

Trying to choose the right Mortgage Advisor can be hard; but is there a way to make it easier?

Sometimes you will have a specific case that might require specialist care and attention. An estate agents in-house advisors will only care about making money off you. When you Get in Touch with a mortgage broker in Essex, you can be matched up with an experienced advisor relative to that field.

An example of this, is that in our company we have specialist buy-to-let mortgage experts who are able to help out buy-to-let enquiry is presented to them. Once you’ve had a free mortgage consultation and an agreement in principle (often turned around in 24 hours or less), you could be linked with your perfect advisor and get started on the mortgage process.

We have been providing mortgage advice for years now and have been helping struggling customer take that leap into the mortgage market for over 15 years. You can find out more about our expert mortgage advice service by looking at our incredible customer reviews.

Getting behind the wheel to start your own mortgage journey

If you would rather take matters into your own hands, you should know that it’s perfectly okay to do so. Most of the process can now be done online! Along with the use of price comparison websites, you may be able to find yourself the best deal for what you need.

The benefit of doing things online is that you have the chance to save money on additional fees. As long as you are confident in what you are doing and know what you are looking for, you could complete the process quicker than initially anticipated.

One thing to bear in mind is shopping around and comparing online may be a little trickier than you think. You will need to make sure that you’ve found the best deal before agreeing to something. Here are some things you should be careful of when choosing to find a deal by yourself:

  • Are you able to match the criteria for the “Best Buy” rates? Check before applying, as if you are declined, this could damage your credit score.
  • Have you conducted proper research? Many of these comparison sites earn a commission from lenders and where there is no commercial relationship with a lender, they may choose to exclude various deals that could benefit you.
  • If it goes wrong, you might end up losing some money. Be aware of valuation and applications fees if you are not 100% certain that you have been accepted. You will not be refunded these fees.
  • It is completely your responsibility to progress your application and also sorting out any problems if you encounter any problems down the line.

Should I use my Bank or a Mortgage Broker?

Using your bank’s Mortgage Advisor

Making an appointment with your bank’s Mortgage Advisor isn’t exactly a hard task, however, it may not be the right choice for you to make. If you do opt to do this, here are a few things you should keep an eye out for:

  • They won’t shop around for the best deal; they can only offer their own deals; some of their deals may not suit you at all! They also won’t tell you about other mortgage lenders rates that might be cheaper!
  • You may find yourself being declined, even if you’ve been a longtime customer of that bank. We’ve seen customers of 20 years still get turned away for “lack of information”.
  • There can often a long waiting list for a mortgage appointment, with some lenders making customers wait around 6-months for a mortgage appointment.
  • Your bank may have inexperienced advisors on their team and therefore are unable to work on more complex cases. This is why many people get declined, as instead of solving the issue, banks instead choose to just not work with those customers.

Using a Mortgage Broker in Essex

Getting in touch with a mortgage broker that is not associated with the estate agent ensures you have someone working purely on your behalf as an inexperienced First Time Buyer in Essex. This also reduces any conflict of interest risks.

The process will be kept between you and your designated Mortgage Advisor in Essex. We have no external ties to any building societies, banks or estate agents, working solely for you. Whilst we have lenders on panel, they’re purely there for the deals they offer, allowing us to find the best deal for your personal circumstances.

Our team of advisors and administrators only have your best interests at heart. Managing Director Malcolm Davidson is here to explain the pros & cons of using a trusted mortgage broker:

Why Should I Use A Mortgage Broker? | MoneymanTV

Get an Agreement in Principle for a Mortgage in Essex

First-Time Buyer Mortgage Advice

What is an Agreement in Principle | MoneymanTV

What is an Agreement in Principle?

First and foremost, what is an Agreement in Principle? You may see this online shortened to AIP or under the name Decision in Principle (worry not, it’s exactly the same thing), an Agreement in Principle is a certification of passing a lenders credit score, allowing you to qualify for a potential mortgage.

Once you have obtained yourself an Agreement in Principle, you are ready to support any offers you make as a First-Time Buyer in Essex. Having one of these on hand may put you in a better place to negotiate a lower price, as it is a demonstration to the seller that you are making a serious enquiry and have the financial means to proceed.

Do Agreements in Principle affect my Credit Score? 

More commonly these days we see lenders using soft searches as their primary method of credit scoring, however hard searches still do occur and it’s not impossible for either to affect your credit score. Generally it’s a hard search rather than a soft search that will do this, though it’s not unheard of completely. Remember with soft searches, whilst they don’t go as in-depth, they’re still valid forms of credit scoring.

Are hard credit checks something I should avoid? 

If you infrequently have a hard search performed on you, then for the most part you should remain unaffected. Where this becomes an issue, is if you continuously have these done in a short space of time, as hard searches leave a credit footprint.

On the other side of the coin, if have a good credit rating and you know this, you should not be put off by a hard search, especially if it’s your best chance of obtaining a mortgage.

Does having an Agreement in Principle guarantee a mortgage?

Whilst in theory this would be really nice, there are unfortunately no guarantees in the world of properties and mortgages, even if having an Agreement in Principle does make you look really good. At the end of the day, the mortgage lender will still need to see all your documents and only then will a decision be made by an underwriter.

We regularly encounter customers who have gotten to the point of a mortgage application and been declined, even with their AIP. This is usually down to some missed or misexplained small print in the Agreement in Principle itself.

You will be required to provide ID to prove that you are genuine, payslips to prove the amount you claim to earn is in fact true and bank statements to prove you conduct your finances. Once all this has been submitted, then a lender will offer your case.

If I don’t have an Agreement in Principle, can I still make an offer?

Though you are able to make an offer without an Agreement in Principle, it is not something we would recommend. An Estate Agent with credibility will want you to prove you can proceed as expected.

Is it easy to get an Agreement in Principle?

It is possible to obtain an Agreement in Principle within 24 hours of speaking with a trusted Mortgage Advisor in Essex.

Will my Agreement in Principle run out?

Typically speaking, an Agreement in Principle will expire after 30-90 days. The good news for you, is this does not mean you should just apply for the first house you see. If your Agreement in Principle expires, you can quite easily have it refreshed for when you are ready to make an offer on a property.

Getting declined on a mortgage can understandably be disappointing. As such, we recommend getting an Agreement in Principle as early on into the process as you can.


Agreement in Principle Mortgage Advice in Chelmsford, Mortgage Advice in Clacton-on-Sea, Mortgage Advice in Colchester

What do Lenders Look for When Assessing my Bank Statements?

How a mortgage lenders in Essex may assess bank statements

Whether you are a First-Time Buyer in Essex, Home Mover in Essex or someone looking to Remortgage in Essex, the lender is going to want to see your bank statements. The lender will analyse them, looking at all aspects of this, though at the end of the day, their aim is to determine whether you can manage your money responsibly and maintain regular monthly mortgage payments.

You need to be aware that your bank statements will say a lot about you. Something that often crops up and causes a fair amount of trouble, is gambling.

Why does the lender care if I gamble?

Whether you’re a regular user of gambling sites or spend money on the Grand National once a year, there is nothing illegal about gambling. With many bookmakers advertising on the mainstream media, to many people gambling is simply a fun hobby.

However, even the bookmakers and gambling advertisers themselves urge customers to ‘please gamble responsibly’, a message that also applies when it comes to the world of mortgages. Whilst the lender can’t tell you how to live your life, how you spend your money or indeed to moralise on ethical rights and wrongs of gambling, it is their job (underscored by mortgage regulation) to lend responsibly to their customers.

Lenders need to prove to their regulators that they are in-fact lending responsibly and being careful. As such, it isn’t entirely unreasonable of them to expect the people to whom they lend to adopt a similar approach when it comes to their own finances. If you think about it; Would you really lend your own money to someone who you know gambles?

Can I still obtain a mortgage in Essex if I’ve been gambling?

As previously touched on, gambling is not an illegal form of entertainment. With that in mind, just because you have a few gambling transactions on your bank statements doesn’t mean you will be automatically declined for a mortgage. That being said, it is up to the lender whether or not some of these are deemed reasonable or responsible, checking how frequent they occur and the impact they have on your income.

If the transactions are small and infrequent, with no major impact to your overall regular credit bank balance, then the lender is likely to ignore these and proceed as normal. On the flip side, if you gamble frequently and are always overdrawn, the lender will likely see you as irresponsible and decline your application.

What else would lenders rather not see when applying for a mortgage in Essex?

As you’ve read, lenders are basically looking at your bank statements to give themselves confidence in whether or not you are smart with your money.

Remember that these mortgage lenders are financial institutions that, either directly or as part of a wider group, often sell current accounts, overdraft facilities credit cards and personal loans. As such, they are well aware that these things can also be an issue.

When applying for a mortgage, the key is how the things are managed. For example, having an overdraft facility and occasionally using it isn’t necessarily a bad thing. If you regularly go over your overdraft limit, this will be a problem. Lenders keep their eye out for excess overdraft fees or returned direct debits because these would normally show that whoever owns the account is not great at managing their money.

Other things to bear in mind include;

  • Credit transactions from payday loan companies.
  • Undisclosed loan repayments (If you lied about not having any loan repayments going out).
  • They would look out for any obvious missed payments.
  • Analysing how often you’re overdrawn (if you are overdrawn soon after payday and spend the month with no income, this could be a problem).

How can I improve my bank statements ahead of the mortgage process?

Be smart and plan ahead. Generally speaking, a bank would ask for up to three months of your most recent bank statements, which will show your salary credits and all your regular bill payments. If you know you would like to apply for a mortgage in the future, try to make sure that you avoid any of the aforementioned issues.

Take a break from gambling for a short while and work on making sure your account is in the best shape for a future mortgage transaction. Your Mortgage Broker in Essex may be able to help, as there are some lenders who may ask for fewer bank statements than other lenders might want.

It is worth remembering that even these lenders would reserve the right to request bank statements in certain circumstances, so your best bet is to be careful and always gamble responsibly.

Armed Forces Help to Buy Scheme in Essex

Help to Buy Mortgage Advice in Essex

Armed Forces Help to Buy Scheme | MoneymanTV

Good news for anybody working in the military, according to Ben Wallace, the Army Families Federation Defence Secretary. The Help to Buy scheme that was designed to help military personnel find themselves a home to own has now been extended.

When it was introduced back in 2014, the intention of this £200 million scheme was to provide a financial boost to anyone from the forces who needed help buying a home. The scheme was initially intended to end back during December 2019, as a thank you for their commitment to their service and dedication to the United Kingdom, the government has opted to carry this on until the end of 2022.

How does this help to buy work?  

Those who are eligible will have access to borrow up to half their annual salary (a maximum of £25,000), without the application of any interest on this. They are able to use this for either a first home purchase, to move into a new home, as well as other related property costs such as estate agent fees.

One of the more appealing parts of this is that you won’t need any current savings to start the process of what you’re looking to do on the property market. Some of the money raised from the loan you’ll receive via the scheme can be used to put towards your deposit or other costs, such as: 

  • Stamp duty 
  • Solicitors fees 
  • Estate agent fees 

Something that is fantastic for forces personnel, is that the majority of lenders will accept the loan towards the deposit for a new home. A scheme that is more relaxed than some of the others, the Forces Help to Buy loan can be paid back over a period of 10 years, so you’re in no rush to pay it back.

No matter whether you have thought about the property-owning route or not, if you have served your country in any form of military and can meet the right criteria (length served, service term left and medical categories), you are eligible to purchase your home using this scheme.

Click here to read through the details on this from the government.

How a mortgage advisor in Essex may be able to help

Our dedicated and trusted mortgage advice team in Essex are here to support you from day one. Right from the beginning of your process when you call up, right through until competition and beyond, your mortgage advisor in Essex will make sure you are looked after, ensuring that you end up with the most appropriate result for your personal situation.

We pride ourselves on a fast and friendly customer experience that is stress-free, contact us today and we’ll see how we are able to help.

Please remember, the Forces Help to Buy is not the same as the standard UK Help to Buy scheme.

Getting Prepared for a Mortgage in Essex

First Time Buyer Mortgage Advice in Essex

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.

Get mortgage ready!

Up to date credit report

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.

Proof of ID

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.

Proof of address

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.

Last 3 months’ bank statements

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.

Evidence of deposit

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.

Proof of income

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.

Budget planner

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.

Get Mortgage Advice in Essex

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.


We provide First Time Buyer Mortgage Advice in other areas in Essex too.

Mortgage Advice in HarlowMortgage Advice in IpswichMortgage Advice in Chelmsford

How Much Deposit Do I Need To Buy a House in Essex?

First Time Buyer Mortgage Advice in Essex

As a Mortgage Broker in Essex, the question of “How much deposit do I need?” is commonly asked, especially by First Time Buyers. The answer to this question changes depending on your personal and financial situation and your credit history, so there is no real straight answer. Typically, the minimum deposit for a mortgage is 5%, however, this could change depending on your financial circumstances and credit history. Here we explore how much you might need given your own personal situation.

Why do I need a deposit anyway?

Prior to the credit crunch, 100% mortgages were available all around, in fact, at the time Northern Rock were offering 125% loan to value mortgages. Nowadays, you wouldn’t see these flying about. You can see how the credit crunch came about after lenders were giving away mortgages left right and centre!

This is why you started needing a deposit for a mortgage, lenders needed to be certain that you could afford one before accepting your application. It’s not just the fact that you have met the 5% minimum deposit, it shows that you have saved and managed your finances to get the correct amount, lenders really like seeing this.

If you’re trying to get a mortgage without 5% of the property’s value, you will most likely be turned away. Other buyers may already have the minimum 5%, or sometimes more than that, at the ready and are then more likely to be accepted. You could argue that if you are not reaching that 5% mark, then you’re not quite ready to get onto the property ladder.

Will the government help me out?

The government won’t help you out unless you have a 5% deposit and qualify for one of their Help to Buy schemes (find out more at https://www.ownyourhome.gov.uk/). The most popular scheme is the Help to Buy Equity loan scheme, it has been helping First Time Buyers and Home Movers secure newly built properties since it was introduced in 2013. The government will loan you up to 20% for your deposit to make up a total of 25% (e.g. 7% deposit = 18% loan).

You will have to pay back this loan, it is not a gift. If you don’t meet the deadline of 5 years, you will start receiving interest on the remaining sum that you owe. It originally starts at 1.75%, and then increases yearly after that.

Is a 5% deposit enough?

Again, this is all down to your financial circumstances and your credit history. Generally speaking, yes, a 5% deposit is accepted by most lenders. Although, If you have had credit problems in the past, some lenders may want a higher percentage which could be anywhere from 10-15%.

Poor credit history?

If you are in a situation where you have a negative credit history and are struggling to get accepted for a mortgage, you may need to look into how to improve your credit score. This can be done in numerous ways; some are easier than others.

Lenders have to be careful before accepting applicants for a mortgage, especially if they have a bad credit history. They want to reduce all risks in case a repossession occurs.

If you want help from a Specialist Mortgage Advisor in Essex, we are always available, plus we offer a free mortgage consultation to all customers! Feel free to get in touch when the time suits you.

What about Buy to Let

Buy to Let mortgages require a larger deposit. For example, most lenders operate at the 25% mark.

Can I take out a loan for the deposit?

This is possible but as a Mortgage Advisor in Essex, we do not recommend it. Most lenders will reject your application straight away when they see that you haven’t actually saved for the 5%, it’s just a loan. You are essentially borrowing 100% of your whole mortgage which will also double your monthly outgoings. Lenders will rarely accept applicants trying to do this, they would prefer borrowers to save up.

Can someone gift me a deposit?

This is the most common situation amongst First Time Buyers. If you are lucky enough, your parents may gift you the 5% deposit or a portion of it. In some cases, it raises the applicant’s deposit to greater than 5%, which actually increases the chances of you getting accepted.

Family members or friends that gift the money to the applicant, must sign a form to confirm that this is a gift and not a loan. They must also evidence where the money has come from before it can be used on the deposit.

Are there any circumstances where I don’t need a deposit?

Yes, you can, there are two main scenarios where this can take place:

  • You are buying as a sitting tenant at a discounted price of the original open market value from a family member
  • You qualify for a discount under the government’s Right to buy scheme and the equity that is already in the home is used as your deposit


If you need any further information regarding mortgage deposits and qualifying for different government schemes, get in touch with Essexmoneyman for a free mortgage consultation. We have Specialist Mortgage Advisors available 7 days a week from 8am -10pm.

Essexmoneyman.com & Essexemoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited registered in England, registered number 6789312 and registered office 10 Consort Court, Hull, HU9 1PU.


Essexmoneyman, Elizabeth House, 28 Baddow Road, Chelmsford, Essex, CM2 0DG.

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