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.
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.
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.
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.
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.
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.
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:
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.
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 7 days a week, to help you out in finding the right mortgage deal.
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.
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.
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.
Originally introduced in 2014 as a response to the low rate of home ownership among Tri-Service members in the UK, the Forces Help to Buy Scheme aimed to address the unique challenges faced by military personnel when it came to accessing affordable housing.
This government initiative was inspired by the success of the Help to Buy Equity Loan Scheme and sought to provide a pathway to home ownership for service members.
The scheme is available to members of the Royal Navy, Royal Marines, Army, and Royal Air Force, provided they meet the specific eligibility criteria set by the government.
It takes into account the Ministry of Defence’s Defence Accommodation Strategy, which recognises the importance of ensuring access to quality accommodation for all military personnel.
The Defence Accommodation Strategy acknowledges the positive impact that owning a home can have on individuals with inherently mobile careers. It considers factors such as partner employability, stable education for children, and continuity during the transition from active service to civilian life.
By facilitating home ownership, the scheme aims to support service members in establishing a stable and secure living environment for themselves and their families.
Originally slated to end in 2019, the Forces Help to Buy Scheme has been extended and transformed into an enduring policy.
This means that it will remain available to all service members, both current and future, ensuring that they have the opportunity to benefit from the scheme’s provisions and support in achieving their home ownership goals.
Forces Help to Buy (FHTB) in Essex offers service personnel the opportunity to borrow up to 50% of their annual salary, up to a maximum of £25,000, interest-free. This loan can be used towards purchasing their first home or a new family home, without the requirement of having existing personal savings.
The scheme is currently open to regular personnel who meet specific eligibility criteria, including completing the necessary length of service, not being a reservist or a member of the Military Provost Guard Service, having at least 6 months of service remaining at the time of application, and meeting the appropriate medical categories.
That said, there may be exceptions to these criteria based on unique medical and personal circumstances, which can be further explored through the government guidance website.
One of the key advantages of the FHTB Scheme is that it can be utilised for various costs associated with buying a home, including the deposit, solicitors’ fees, estate agents’ fees, and stamp duty land tax.
Furthermore, the majority of mortgage lenders accept funds from FHTB for the purpose of the deposit. The repayment terms for the FHTB loan are also more flexible, with a repayment period of 10 years.
Overall, Forces Help to Buy in Essex provides a valuable opportunity for service personnel to access financial support and achieve their aspirations of homeownership, even without significant personal savings.
As a highly experienced and respected mortgage broker in Essex, we deeply value and honor our service members nationwide, and we are committed to providing support throughout your home buying journey.
From your initial contact with us until the successful completion of your mortgage and beyond, our dedicated mortgage advisor in Essex will prioritise your needs and work tirelessly to ensure the best possible outcome that meets your goals.
To explore how we can help you on your home buying journey, we invite you to book a complimentary mortgage appointment. Together, we will assess your requirements and determine how we can best support you in achieving your homeownership dreams.
Note; Forces Help to Buy in Essex is not the same as the standard UK Help to Buy Scheme or Shared Ownership in Essex.
If you are an active service member and homeowner considering utilising Forces Help to Buy for moving home in Essex, and you are aged 55 or above, exploring options such as equity release in Essex or retirement interest-only mortgages (RIO Mortgages) could be beneficial, especially considering the potential benefits of forces pensions in this context.
To understand the features and risks of equity release and lifetime mortgages, ask for a personalised illustration.
A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means-tested benefits. The loan plus accrued interest will be repayable upon death or moving into long-term care.