The mortgage process can come with its highs and lows with many people encountering challenges on the way. You may find that people fail to match the lending criteria in situations like failing to match lending criteria or going through a divorce/separation.
Mortgages can be complex! You can’t get a mortgage instantly. First of all, you will be required to pass lender credit checks and affordability assessments to show that you’re eligible for a mortgage. In the case that you come across a hurdle around this time, we do recommend that you seek the assistance of a mortgage specialist to progress your application. As a First Time Buyer in Scunthorpe, the issue may be complicated but we can explain these problems and direct you towards the best solution.
Below is a list of the most popular mortgage hurdles that home buyers may encounter through the mortgage process.
You may find that applicants are turned away because you have children, however, it is an unlikely case. If you are in this situation, your overall offer may be a little higher than if you didn’t have them.
Lenders will account for childcare costs in your expenditures when they are assessing your affordability. The reason why they do this is to be sure that you can afford a mortgage so they need to consider all your outgoings. When it comes to childcare costs, (depending on the number of children you have) they can go into the hundreds each month and they don’t go down! They’ll see these costs as recurring payments and will treat them as they treat a car loan or hire a purchasing agent.
Regardless if you don’t pay for childcare, like a nursery, you still may be offered less than other buyers who don’t have children.
It’s a sad case when this happens, however, when you and your partner go your separate ways and you’re both linked to a mortgage, you may need to solve your financial situation first. Keep in mind that the longer you leave it, the more complicated it can get.
If you’re still financially linked to someone else, lenders may find it difficult to carry on your application, especially if you’re linked through a mortgage. Because of this, you will be managing two sets of mortgage payments each month, which could be difficult to take on.
For those in this situation, it’s best to approach us for Specialist Mortgage Advice in Scunthorpe. This is something many customers have approached us for and below is the most common questions we get:
Speak to a professional advisor if these are the type of topics you are wondering about because they may be able to help you with these problems. Going through a divorce is stressful enough so adding extra stress of your mortgage can make it worse. Get in touch with our team if you are looking to obtain Divorce & Separation Mortgage Advice in Scunthorpe.
A variety of lenders will have different perspectives on benefit income and will assess it differently. Additional benefits that could be assessed include child tax credit, working tax credit, disability benefit or pension. Every lender will differ in what they choose to assess.
We have a variety of different specialist lenders that all have their own unique lending criteria and will measure a range of income. This type of lender may benefit your case.
Starting a new job, generally, will mean you are on a higher salary. Having more money will mean you can afford finances like a new mortgage. Because of your new higher salary, you may feel like getting a mortgage will be easier, but this isn’t always the case.
Probation periods may not work in your favour when it comes to the lenders and will depend on the likelihood of you staying on. On the flip side, others may not be bothered by this. To fully get an idea of how committed you are to a job, lenders may look into your work history to see how long you were employed in the previous workplace, making sure that you are not the type to jump between workplaces.
Lenders want to be sure that you are an applicant who will not be employed within months so gaps in employment can have a negative effect on a successful mortgage application.
Depending on the lender, you may be qualified for a mortgage before even starting the job. This will be no more than a month in advance.
When you’re applying for a mortgage in Scunthorpe, you will need to make sure you evidence your deposit and be able to prove where you obtained it from. In the circumstance where you’ve simply built it over time, you will need to show this through your bank statements. We do find customers are given a gifted deposit meaning the person gifting you the money will need to prove where they have got the money from.
By doing this you are keeping in line with the anti-money laundering regulations which will show a lender that the funds have been legally raised. As well as the lender, your solicitor and estate agent may also ask for this evidence.
We do find many applicants can easily slip up on this part of their mortgage application. Not evidencing your funds correctly can put you at risk for the lender to begin questioning where the money actually came from. Having a Mortgage Broker in Scunthorpe by your side will guide you through how to evidence your deposit correctly. We can provide support through this step with you so you are in the best position for mortgage success.
When lenders look at your bank statements they will be highlighting various factors. They do this to establish whether you are the best applicant to lend to. Generally, an ideal applicant will be able to show how well they manage their finances and prove that they can keep up to date with their monthly payments.
If you are wondering what lenders look for on your bank statements, check out below how one aspect of your bank statement can impact your ability to get a mortgage in Scunthorpe.
If you enjoy gambling once every couple of months or it’s a daily occurrence, be aware that gambling in a massive amount usually impacts your mortgage application. Being a frequent gambler, regardless of losing money or not, you may be declined because of your gambling habits.
Obviously, no one can dictate how you live your life, however, the media does advise that you ‘gamble responsibly’. Keep in mind that a lender needs an applicant that doesn’t oppose risk to them. They want to lend to someone who will keep up with their mortgage payments so there is less risk of repossession.
Looking at the perspective of the lender, would you want to lend some money to someone who frequently gambles with a large amount of money or someone who’s always on top of their payments and doesn’t gamble?
Gambling is not an illegal act, however, the one-off gambling transaction on your bank statements will not mean that you’ll get automatically declined. They will assess the gambling transactions to if they are reasonable and responsible. The things they will look out for are how frequently you gamble, the number of transactions and how they relate to your income.
For those who are infrequently gambling in small amounts, this shouldn’t impact significantly to if you get accepted or not. On the flip side, if you are a regular gambler, this could affect your application. Going into your overdraft because of gambling can reflect badly on your application.
Lenders will take a thorough approach to your bank statements. There are a variety of things they will look into, however, generally, they want to look at your bank statements and be confident that you are a reliable applicant to lend to.
In the case where you exceed your overdraft limit every month, your lender might conclude that you are finding it difficult to manage your finances. We would always advise that you are always aware of this even though it’s likely that you will be okay doing so. As well as this, they will look at additional credit commitments that you have like like credit card or loan payments, etc. This is a key point as you will need to put aside a set amount every month to pay back the loan just like you would a mortgage payment.
We strongly recommend that you look out for credit transactions from pay-day loan companies or known as ‘undisclosed’ loan repayments. This can raise issues if you told them that you had no additional loans to account for but it is evident on your bank statements. With this in mind, you need to be fully honest with your lender and tell them everything before they view your bank statements.
As a Mortgage Broker in Scunthorpe, our team always suggest that the best way to improve things is to be rational and organised.
First of all, plan ahead! Normally, your lender will ask for a minimum of three months’ bank statements.
Therefore, before you apply, put yourself in a position where you are financially able and slow down on things like gambling and dipping into your overdraft. Little changes in your finances can help.
Approaching a Mortgage Broker in Scunthorpe, like ourselves, our team will help you with this process and find you the product that will help you the most. We do find there is some specialist lenders out there who will request fewer bank statements than others, a mortgage might be able to access one of these deals.
As a first time buyer in Scunthorpe and you are stepping into the mortgage world for the first time, we strongly recommend that you seek specialist mortgage advice from a mortgage advisor in Scunthorpe.
If you are a homeowner with a mortgage to your name, you may notice that a certain amount of high street mortgages that are on the market are portable.
A portable mortgage in Scunthorpe works by taking your mortgage from one property to another if you decide to move home and want to avoid the penalty charge for doing so.
For those looking to move into a new home and are already going through your fixed rate mortgage deal, a portable mortgage could be helpful as you will have the potential to avoid having an Early Repayments Charge (ERC) for moving.
Remember, not every mortgage deal that is available on the market is portable. This is even less likely if you are on a mortgage with a specialist mortgage lender because their mortgage is probably more complex to qualify initially and they would discourage you to port it.
In order to find out if porting a mortgage will be available to you, we would highly suggest that get in contact with your mortgage regarding this.
In some cases, a homeowner may decide that option is not fit for them and choose not to even if their mortgage is flexible enough to achieve this.
There is a range of reasons why customers may not look to port their mortgage. For instance, the mortgage lender may not be willing to provide the additional funds or the different interest rate in those funds.
With this in mind, it may be best to accept the Early Repayment Charge (ERC) and move to a different mortgage lender altogether, however, this only applies if it works out cheaper to go to that new deal.
This is when an account will be attached to your mortgage when you look to port it and the extra funds will move onto a deal different from your original mortgage.
Due to this, each of these will be on two different rates of interest that are applied on both the mortgage and the direct debit.
Keep in mind that because products can overlap, it can become an issue further down the line which means it might need looking into in the future so they are realigned. With this, it may mean one of the sub-accounts falls onto a lender’s variable rate briefly.
For those looking to Move Home in Scunthorpe or are looking for a Buy to Let in Scunthorpe, contact and speak to a mortgage expert.
Through our 20-plus years of experience as a Mortgage Broker in Scunthorpe, we take pride in helping thousands of mortgage applicants in circumstances like this and will work hard in supporting you towards achieving your mortgage goals.
Once you are all ready to make your first offer on a property, it is important that the seller or the estate agent knows all about your personal and financial circumstances. Telling them all of your details give you a higher chance of being accepted.
99% of the times, you will never beat a cash buyer, lenders love less paperwork and a quick home buying process, which wouldn’t be the case if they had accepted someone wanting a mortgage. If you can’t afford to go down this route, to improve your chances of being accepted for a mortgage, you should get a mortgage agreement in principle prepared before you make your offer.
Having a mortgage agreement in principle at the ready shows that you have planned ahead and really want to secure this property. Whereas, if you don’t have one, your lender will know that you weren’t prepared and that you aren’t fully aware of how to apply, which could go against you.
This is why approaching a Mortgage Broker in Scunthorpe could really benefit you during the home buying process. Once you find a property that you are interested in making an offer on, Scunthorpemoneyman can quickly get you together with a mortgage agreement in principle. Depending on your situation, we can sometimes offer the same day service.
Buying a property is a negotiation process. If your first offer gets rejected, don’t worry, it’s perfectly normal to not be accepted first time round, you will get another chance to increase your original offer.
If your increased offer is also rejected, you may have to raise your offer again to match the asking price. If the property has just been listed on the property market, it’s unlikely that the seller is going to budge from their asking price. If you aren’t prepared to match their asking price, you may have to walk away and start looking for more properties.
To get a rough idea of what you may have to pay for your property, you should check out Zoopla and Rightmove and take a look “sold” prices of houses that are similar to the one that you are looking at. These prices are pulled from the Land Registry so they are reliable and can be used as a comparison.
You will sometimes see that some houses end up selling for less than their actual worth and this is because they could’ve been repossessed, sold to a tenant at a discounted price or an inter-family sale.
If you are still unsure about how to make an offer on a property and need help getting on the property ladder as a First Time Buyer in Scunthorpe, you should get the help off an expert Mortgage Advisor in Scunthorpe. They will do all they can in order to try and get that dream home of yours secured.
We are available 7 days a week, so if you ever have any mortgage questions, you know who to call. Receive a free mortgage consultation today with your expert Mortgage Broker in Scunthorpe.
It may be complicated when you want to divorce or separate and have a joint mortgage, you are both tied into a huge financial commitment. The divorce and separation process is one thing that nobody would wish to undergo, for it is very daunting. Your mortgage commitments may end up being very complicated with your ex-partner.
Our mortgage experts in Scunthorpe are here to ensure you do not struggle to manage everything alone. They have handled so many specialist cases for longer periods of working within the mortgage industry. Some of the cases they have handled involve assisting customers to do away with their doubts about mortgage by divorcing or separating and assist them in removing their ex-partners or their names off their mortgage.
As a Mortgage Broker in Scunthorpe, when people contact us, they will always ask these questions regarding a divorce or separation and their mortgage: how to remove their ex-husband or wife from the mortgage, ways of removing their name from an ex-partner’s mortgage, and whether or not you can possess two mortgages.
It is not that easy to make some changes to your mortgage after a divorce or separation as both your names are included on the mortgage. You cannot just go ahead and write off one of the names. This may be more difficult when children are involved too. In most cases, mothers are usually the ones to remain with the children, but it can be different sometimes. So as long as your partner’s name is in the mortgage together with yours, it will never matter if you were paying for it alone without his or her help.
Dealing with this involves two ways; first, you can head directly to your lender to question about removing a name on your own, or secondly, you may get some assistance from an expert Mortgage Broker in Scunthorpe. Nevertheless, they have to be sure that the applicant left on the mortgage will be in a position to afford a mortgage independently in the coming days.
This can be carefully confirmed through an affordability assessment. This assessment is mandatory even if you have always been maintaining your mortgage payments or not. Sometimes, there is a replacement to step in for your ex-partner at this point, who can be a member of the family or a different partner.
You should have it in mind that all lenders usually have their own ways of assessing your affordability, and therefore, you should not be worried or surprised if you get declined as there is still chance to get accepted elsewhere. This is where a Mortgage Broker in Scunthorpe will be of great help to you.
The basic rules used in removing your name and removing a different person’s name is equally the same. Both names are included in the mortgage in that when you decide to leave the family home; you remain answerable for any joint financial commitment you performed with your ex-partner.
A Mortgage Broker in Scunthorpe will play a big role in helping you remove your name. Once your name is removed, the payment of your mortgage will be considered in the future if you are planning to purchase a new property. Therefore, it is very key to consider this before making an offer.
This is the point where a professional Mortgage Advisor from Scunthorpe is highly recommended. You should always have in mind that your current property’s mortgage payment will be considered before making an offer in the future. This is why it is very important to get Specialist Mortgage Advice in Scunthorpe. Sometimes, you may encounter lenders that are very strict compared to others, having a helping hand could benefit you greatly.
It is possible to have two and in some cases more mortgages. After the lenders and their credit scoring tools have considered various factors during your application for your second mortgage, they ill choose whether to let you have another one or not.
One of the main things that will contribute to the lender’s decision is your current financial commitments. In a case where you have other ongoing credit commitments, and you fail the lender’s affordability assessment, this may end up damaging your credit score. So be wary of your other commitments before rushing into it and applying.
You can always consult the Mortgage Broker in Scunthorpe like us before you take the step of applying directly with a lender for your safety. Scunthorpemoneyman can search for you without interfering with your credit score to confirm if you will be in a position to afford a mortgage or not.
We can calculate your maximum borrowing capacity and can give you a rough estimation on your budget. The total cost of your monthly mortgage payment will be added to your current financial commitments.
To conclude, it is very important to always have an expert Mortgage Advisor in Scunthorpe by you in every process when you have separated or divorced, and you have a mortgage together with your ex-partner.
Our Mortgage Broker in Scunthorpe offers you a free mortgage consultation. A divorce or a separation is very stressful, and hard to tell what will happen to your finances; you do not have to be stressed anymore about how you will split the mortgage you built together with your ex-partner. Contact us today, our Specialist Mortgage Advisor in Scunthorpe have got you covered.
Many schools now only offer Newly Qualified Teachers (NQT’s) a 12-month initial contract as standard.
This can prove a problem for many teachers if they want to buy a property because most of the High Street Mortgage Lenders will class them as a “Contract Worker” and as such will require you to have 12 months in the role.
Fortunately, some smaller lenders are more sympathetic to this situation and will consider an application without the 12-month history.
If you are a newly qualified teacher and would like to discuss your mortgage options then please don’t hesitate to contact us. Sometimes, things can get complicated and it may be best to get the help from a Specialist Mortgage Advisor in Scunthorpe to take some stress off your back.