When you successfully navigate a lender’s credit assessment for a mortgage, you receive a document known as a mortgage agreement in principle (AIP). Often abbreviated as AIP, this essential document empowers you to confidently make offers on properties you’re interested in.
It serves as tangible proof of your serious intent as a first time buyer in Leicester and can bolster your negotiating position when discussing house prices with sellers.
The distinction between a hard credit search and a soft credit search plays a pivotal role in the mortgage application process. Here’s a breakdown of their disparities:
Hard searches delve deeper into your credit history compared to soft searches. Notably, hard searches have the potential to impact your credit score. However, if you possess a healthy credit rating, undertaking a hard search shouldn’t cause undue concern, particularly as a first time buyer in Leicester.
Presently, lenders predominantly favour conducting soft searches. These inquiries typically require less detailed information and typically have minimal to no impact on your credit score.
Despite the significance of a mortgage agreement in principle, securing one doesn’t guarantee mortgage approval. Lenders require thorough documentation to facilitate a final decision by the underwriter.
It’s essential to scrutinise the fine print of these agreements, as overlooking important details could lead to setbacks during the full mortgage application process.
Customers often seek our guidance when faced with challenges at the full mortgage application stage, emphasizing the importance of meticulous preparation.
Documents typically requested include identification, payslips, bank statements, and other relevant financial records. As your trusted mortgage broker in Leicester, we’re dedicated to helping clients, whether they’re moving home in Leicester or self employed in Leicester.
While it’s possible to bypass this step, most estate agents will insist on evidence of your financial readiness to proceed with a property purchase.
Mortgage agreements in principle typically have a validity period of 30 to 90 days. While this timeframe may seem fleeting, it’s advisable to secure an AIP early to prevent missing out on preferred properties.
Having an AIP in hand also affords you the flexibility to explore multiple housing options without feeling pressured to rush into a purchase. Should your AIP expire, obtaining a new one is a straightforward process.
We frequently receive inquiries from private tenants who are considering buying the property they currently rent from their landlords. This interest often stems from landlords extending the courtesy of first refusal, granting tenants the opportunity to purchase before the property hits the open market.
Even if this privilege isn’t initially offered, it’s worth exploring with your landlord whether they’d be open to such an arrangement in the event of a sale.
Recent governmental changes have tightened tax relief previously accessible on buy to let mortgages in Leicester. Implemented over a four-year period, these alterations are now manifesting in landlords’ tax bills, marking a significant shift in the landscape.
Property ownership has traditionally offered landlords a steady income stream and a promising investment avenue. While some landlords have weathered the tax adjustments, viewing property ownership as a long-term commitment, others have opted to divest.
Selling the property to existing tenants presents several advantages, driving many landlords to choose this path. Here are a few key benefits:
From the perspective of tenants purchasing from landlords, several advantages emerge:
These factors collectively make purchasing the rented property an appealing prospect for tenants, fostering a mutually beneficial arrangement for both parties involved.
A mortgage agreement in principle (AIP), also known as a decision in principle or agreement in principle, serves as a valuable tool for homebuyers in Leicester. It provides an estimate of the potential borrowing amount before formally applying for a mortgage.
To secure an AIP, a soft credit check is conducted, minimally impacting your credit score. Obtaining an AIP comes with no obligation to proceed with a mortgage application.
At Leicestermoneyman, our goal is to deliver an AIP within 24 hours of your initial mortgage appointment. The agreement is valid for 30-90 days, ample time for property search, and can be easily renewed if it expires.
When seeking a mortgage agreement in principle, you have two options. You can directly contact a mortgage lender or enlist the assistance of a trusted mortgage broker in Leicester, such as us.
Our experienced mortgage advisors can liaise with the lender on your behalf, ensuring a swift AIP process.
We offer a complimentary mortgage appointment for every customer, where expert advice is provided, and your AIP is delivered within 24 hours.
To progress with the application, proof of income, employment details, credit history, and other personal information are required, offering an estimate of the borrowing amount.
Obtaining a mortgage agreement in principle before starting your property hunt is advisable. It provides a general idea of your borrowing capacity, allowing you to focus on properties within your budget.
Additionally, having an AIP can enhance your position when making an offer, as sellers and estate agents often view it as a sign of a serious buyer.
However, it’s important to understand that an AIP doesn’t guarantee mortgage approval; further assessments occur during the full application process.
When applying for an agreement in principle, the mortgage lender will need specific personal information to assess your eligibility and determine the lending amount.
This includes details like income, employment status, credit history, and relevant personal information. Additional documents may be requested, such as bank statements or proof of income, to inform the lender’s decision.
An AIP outlines the potential lending amount based on provided information, without forming a legal contract. A mortgage offer, on the other hand, is a formal, legally binding agreement from a lender, confirming their willingness to lend after thorough checks.
Understanding the distinction is key; an AIP aids in estimating borrowing capacity, while a mortgage offer comes with legal implications.
Obtaining an AIP usually has minimal impact on your credit score, often involving a soft credit check. While some lenders may perform a hard credit check, visible on your report, during the AIP process, it’s essential to note that the mortgage application itself typically involves a hard credit check.
Limiting applications and applying for an AIP when serious about a property purchase is advisable.
An AIP offers benefits in the mortgage journey, providing clarity on borrowing capacity, helping focus on suitable properties, and potentially expediting the application process.
It can enhance offer acceptance chances, as sellers and agents often favour buyers with an AIP, showcasing commitment and active mortgage efforts.
Typically, obtaining an AIP is free of charge, representing a lender’s willingness to lend based on provided information. Our mortgage advisors in Leicester can arrange your AIP at no cost; reach out for a free mortgage appointment.
Rejection for an AIP doesn’t guarantee rejection for a full mortgage application. Understanding reasons for rejection, exploring alternatives, and avoiding multiple AIP applications are advised. A mortgage broker can help in finding the right lender and navigating the process.
For first time buyers in Leicester or those moving home in Leicester, speaking with a mortgage broker like us for an AIP before making offers is recommended.
Our experienced mortgage advisors in Leicester aim to provide an AIP within 24 hours, guiding you through the mortgage journey. Book a free mortgage appointment to start your journey with a trusted broker in Leicester.
No matter your specific mortgage scenario, whether you are a first time buyer in Leicester, in the process of moving home in Leicester, or considering a remortgage in Leicester, your lender will invariably request a copy of your bank statements.
These bank statements serve as a window into your financial habits, allowing the lender to assess your capacity to manage your finances responsibly and sustain regular mortgage payments.
It is important to reflect upon your statements and consider the broader implications of your banking history. One emerging trend that has garnered attention is the scrutiny of gambling transactions appearing on bank statements.
Engaging in an occasional flutter on events like the Grand National or using licensed gambling platforms is well within the bounds of legality. Nevertheless, it’s worth noting that even bookmakers and gambling advertisers emphasise the importance of ‘gambling responsibly.’
This very message holds true when considering a mortgage application. Lenders do not assume the role of dictating how you should lead your life or manage your finances, nor do they offer moral judgments on matters such as gambling. However, they do have a duty to ensure responsible lending practices.
In an environment where lenders must demonstrate to regulators that they make prudent lending decisions, it’s not entirely unreasonable to expect those they lend to also take responsibility for their financial affairs.
It’s a mutually beneficial approach where both parties exercise responsibility, thereby promoting sound financial decisions and lending practices.
As previously mentioned, it’s important to understand that the presence of occasional gambling transactions in your bank statements doesn’t automatically result in your mortgage application being rejected. Lenders will assess whether these transactions align with reasonable and responsible financial conduct.
The primary factors under scrutiny include the frequency of these transactions and their overall influence on your account balance.
If these gambling-related expenditures are infrequent and of a modest scale, with no substantial adverse impact on your typical credit account balance, they are more likely to be disregarded.
Conversely, if you engage in frequent betting activities and consistently maintain an overdrawn account, the lender may perceive this as financially irresponsible behaviour, potentially resulting in a decision to decline your application.
It’s essential to strike a balance between occasional leisure activities and maintaining a stable financial standing to bolster your mortgage application prospects.
It’s vital to bear in mind that lenders often operate as comprehensive financial institutions, offering a range of products including current accounts, overdraft facilities, credit cards, and personal loans. The manner in which you manage these accounts significantly influences your eligibility for obtaining a mortgage.
For instance, possessing an overdraft facility and using it occasionally is a reasonable practice. However, consistently exceeding the overdraft limit is less advisable.
Lenders will scrutinise your accounts for signs of excess overdraft charges or returned direct debits, as these could indicate that the account is not being prudently managed. Additionally, it’s important to remain vigilant regarding credit transactions from payday loan companies and any undisclosed loan repayments.
Lenders will also pay attention to any instances of missed payments and evaluate the extent to which your account remains overdrawn throughout a typical month. These considerations collectively impact your financial standing and, consequently, your mortgage prospects.
The solution is straightforward: exercise prudence and, when feasible, plan proactively. Generally, banks request up to three months of your latest bank statements. These statements offer insights into your income deposits and the consistent payments of your regular bills.
It’s important to ensure that your bank account exhibits a responsible and well-managed financial approach. For individuals who engage in regular gambling activities, it might be wise to consider a temporary break or implementing self-imposed limits.
Most gambling apps provide features to help with this. Beyond the potential benefits for your mortgage application, such measures can also positively impact your mental well-being.
Whether you find yourself as a first time buyer in Leicester, a homeowner looking at moving home in Leicester, or in search of guidance for a remortgage in Leicester, it’s advisable to seek expert assistance from a dedicated mortgage advisor in Leicester.
Our experienced advisors are well-equipped to provide comprehensive support throughout the entire mortgage journey. They will help you in navigating the application process and ensuring that your application aligns with the expectations of lenders, ultimately improving your prospects for a successful outcome.
Lenders have a very important reason for requesting access to your bank statements: they aim to gain a deep understanding of your financial habits and recent financial conduct.
Your financial management, as revealed by your bank statements, plays a central role in determining the amount a lender is willing to lend you, if they are willing to lend at all. This assessment primarily revolves around managing risk.
Lenders need to be confident that you exhibit financial responsibility and can manage your financial commitments reliably. This becomes especially significant because a mortgage represents one of the most significant financial commitments you will make in your lifetime, and it requires thoughtful consideration.
Acquiring your bank statements is a straightforward process, and there are various methods to obtain them. These include receiving physical copies by post from your bank, visiting your local bank branch to collect them, or accessing printable versions through your bank’s online platform, a convenience widely available in today’s digital banking landscape.
Now, let’s dive into the central question: What specific elements will lenders closely examine on your bank statements, and what might raise concerns from their perspective?
As previously mentioned, the primary goal is to assess your financial responsibility. One critical aspect under scrutiny is the presence of overdrafts. Occasional use of your overdraft facility isn’t necessarily a cause for concern. However, if you consistently exceed your overdraft limit, this could raise doubts about your financial prudence and reliability.
Lenders also pay attention to returned direct debits, which might suggest inconsistent reliability in meeting financial commitments. Additionally, it’s important to be transparent about any existing loans during the application process.
Failing to disclose them could erode trust with the lender, especially if they uncover undisclosed financial obligations on your bank statements. Trust plays a pivotal role throughout this evaluation.
Furthermore, it’s essential to maintain a track record of timely payments for personal loans and credit cards. Demonstrating your ability to manage your finances responsibly and meet monthly payment deadlines is likely to make lenders more inclined to approve a loan amount closer to your desired borrowing amount.
This is a frequent question that we encounter quite often. Many customers face challenges when they have a history of gambling activities.
While the occasional bit of entertainment through betting is harmless, engaging in frequent high-stakes gambling, whether it results in profits or not, can have a notable impact on how a lender perceives your financial situation. In such situations, lenders are unlikely to view your circumstances in a positive light.
Leveraging our extensive experience in helping first time buyers in Leicester and home movers in Leicester, it’s worth noting that most mortgage lenders typically request a minimum of three months’ worth of bank statements from applicants.
Given this requirement, it presents an ideal opportunity to shift your focus from the past to the future. You now have a dedicated period of at least three months to enhance your financial situation. One prudent step to consider is taking a hiatus from frequent visits to local bookmakers or online gambling platforms.
This break can have a positive impact not only on your financial health but also on your overall well-being. Additionally, we recommend exploring strategies to save money during this timeframe.
Simple adjustments, such as choosing to cook at home instead of dining out, trimming unnecessary expenses, and discontinuing redundant subscriptions, can free up extra funds to ensure that your bills are promptly settled.
In essence, the key here is to exercise sound financial judgment and engage in proactive planning well in advance of your intended financial endeavours. The farther you distance yourself from periods of financial instability and debt, the greater your prospects will be when engaging with a lender.
No matter if you’re a first time buyer in Leicester, currently in the midst of moving home in Leicester, or are self employed in Leicester, maintaining a strong handle on your financial situation is consistently important.
If you happen to be facing challenges related to a less-than-ideal credit history and are uncertain about the way forward, we strongly recommend seeking specialised mortgage guidance in Leicester by reaching out to us today.
Our dedicated team is fully committed to offering the most comprehensive advice to help you throughout your mortgage journey. Please don’t hesitate to get in touch; we are here to help you in effectively navigating your financial path.
Saving for a mortgage deposit can pose challenges in the current economic climate. As trusted mortgage brokers in Leicester, we empathise with the concerns of first time buyers in Leicester who often find the homebuying process daunting.
To embark on a successful mortgage journey, it’s essential to prioritise a good credit score, accumulate an adequate deposit, and demonstrate affordability through supporting documentation.
In this article, we will delve into effective strategies for saving towards your mortgage deposit and provide valuable insights on key factors to consider before applying for a mortgage.
Our aim is to empower you with the knowledge and guidance necessary to make informed decisions and navigate the process with confidence.
With our expertise and experience, we’re committed to supporting you on your path to homeownership in Leicester. Let’s explore the strategies and considerations that will help you achieve your goal of owning a home.
In order to save effectively for your mortgage deposit, it’s crucial to carefully evaluate your monthly disposable income. Take a close look at your average monthly expenses and determine how much you can realistically set aside for savings.
This evaluation will provide you with a clear understanding of the amount you can save each month. While the minimum deposit requirement is typically 5% of the property’s value, it’s common for first time buyers in Leicester to aim for higher deposits, reaching up to 20% of the property’s value.
Saving a larger deposit offers several benefits. Firstly, it leads to lower monthly mortgage payments, making homeownership more affordable. Additionally, if you have bad credit, lenders may require a deposit of around 15-20% to mitigate risk.
It’s important to note that a larger deposit reduces the loan-to-value (LTV) ratio, which improves your standing with lenders. It demonstrates your ability to save and showcases your financial reliability as a mortgage applicant.
In addition to the deposit, it’s essential to consider other costs associated with obtaining a mortgage, including arrangement fees, solicitor fees, property survey fees, and potential expenses related to working with a mortgage broker in Leicester.
By accounting for these expenses, you’ll gain a comprehensive understanding of the financial commitment involved in the homebuying process.
With effective planning and careful budgeting, you can save for your mortgage deposit with confidence, bringing you closer to your goal of achieving homeownership in Leicester.
There are various government-led schemes designed to help with boosting your mortgage deposit or saving for one. It’s worth exploring your eligibility for these schemes to determine if they can support your homeownership goals.
One popular option is the Shared Ownership scheme, which enables you to secure a mortgage for a portion of a property, thereby reducing the initial deposit required.
Through this scheme, you can obtain a mortgage for 10-75% of the property’s value, making it a valuable tool for first time buyers embarking on their mortgage journey in Leicester.
In addition, there are several other schemes available, including the Lifetime ISA, first homes scheme, and mortgage guaranteed scheme.
If you’re interested in learning more about these schemes or would like to discuss your options, don’t hesitate to contact us or book a free mortgage appointment online with one of our knowledgeable mortgage advisors in Leicester.
For further information, you can also visit the government’s OwnYourHome website, which provides detailed insights into the available schemes and the benefits they offer.
Receiving a gifted deposit can be a significant advantage when it comes to boosting your mortgage deposit and enhancing your chances of buying a home.
A gifted deposit refers to a generous contribution towards your mortgage made by a family member or friend. It’s important to understand that a gifted deposit is not a loan but a genuine gift, meaning it does not need to be repaid in the future.
This type of financial support can have a profound impact on your ability to achieve your homeownership goals. It increases the funds available for your deposit, making it easier to meet the required amount and potentially opening doors to more favourable mortgage terms.
When receiving a gifted deposit, it’s crucial to ensure that all parties involved, including the lender, are fully informed about the source of the deposit and the nature of the gift. This ensures compliance with any legal and regulatory requirements associated with the mortgage application process.
If you have the opportunity to receive a gifted deposit, it can be a valuable asset in your journey towards homeownership, helping you turn your dreams into reality.
Taking the time to review your monthly bills and subscriptions is essential to identify potential areas where you can save money and allocate more towards your mortgage deposit savings.
Begin by conducting an audit of your expenses, carefully examining each bill and subscription to evaluate if there are opportunities for cost reduction. Compare prices, explore different providers, and negotiate better deals to ensure you are getting the best value for your money.
Finding cheaper alternatives and securing more affordable options can significantly increase your monthly savings, allowing you to contribute more towards your mortgage deposit.
Additionally, it is beneficial to assess your current memberships. Consider if there are more cost-effective alternatives available or if you can reduce the number of memberships you maintain.
By cutting back on unnecessary subscriptions and memberships, you can free up additional funds to be directed towards your mortgage deposit.
Remember, every amount you save brings you closer to achieving your homeownership goals. By taking proactive steps to identify areas to save, you can make meaningful progress towards accumulating the necessary funds for your deposit.
Buying a property with a friend or partner is a popular choice among many first time buyers in Leicester. This option allows you to combine your savings, effectively increasing your purchasing power and widening your options in the housing market.
It is important to approach joint ownership with caution, particularly when it comes to financial matters. It’s important to be aware that your friend or partner’s credit history can have an impact on your own eligibility for a mortgage.
If your potential co-owner has a poor credit history, such as defaults or late payments, it could affect your joint mortgage application. Lenders will assess both applicants’ creditworthiness and may take the lower credit score into consideration when determining the terms of the mortgage.
Fortunately, there are specific mortgage products designed to accommodate joint ownership scenarios. These mortgages are tailored to meet the needs of individuals purchasing a property with a friend or partner.
In this type of mortgage, both parties share joint ownership of the entire mortgage and have equal rights over the property. In the unfortunate event that one party passes away during the mortgage term, the full ownership of the home will automatically transfer to the surviving owner.
Lenders consider both parties as a single entity, meaning that any actions related to the property, such as selling or remortgaging, require mutual agreement and cooperation from both joint owners.
It’s crucial to maintain open and transparent communication with your co-owner to discuss and make decisions regarding the property. By working together, you can ensure a harmonious and effective process when it comes to potential future transactions involving the property.
Remember, mutual understanding and cooperation are key in successfully managing joint ownership and navigating any future changes or decisions related to the property.
This type of mortgage enables multiple owners to have distinct shares in the property, with the flexibility to determine the proportion of ownership based on individual contributions or agreements. The ownership shares do not need to be equal and can be tailored to each owner’s specific circumstances.
As individual shareholders, you have the freedom to sell or transfer your shares in the property in the future. This means you have the option to sell your share to another party or even gift it to someone else, within the parameters of any applicable legal agreements or restrictions.
It’s essential to seek guidance from legal professionals who specialise in property law to ensure a smooth and legally compliant process when transferring or selling your shares. They can provide the necessary advice and assistance to protect your interests and uphold your rights as a shareholder.
By following the proper procedures and seeking expert advice, you can navigate the process of transferring or selling your shares in the property with confidence and ensure a fair and transparent transaction.
If you have a less-than-perfect credit history, it’s likely that lenders will require a larger deposit from you. Typically, they may ask for a deposit ranging from 10% to 15% of the property’s value.
While saving a larger deposit can be challenging, it’s an important step to meet the requirements set by lenders. It’s important, however, to note that there are ways to improve your credit score and enhance your borrowing prospects.
Here are some tips to work towards improving your creditworthiness:
It is crucial to be registered on the electoral roll as it serves as proof of your current address and demonstrates your reliability to lenders.
To improve your creditworthiness, it is important to double-check the accuracy of your personal information, including your name and address, across various platforms.
Ensure that your information is correctly spelled and consistent not only on the electoral roll but also on your banking records, store cards, billing addresses, and other relevant accounts.
By maintaining consistency in your address information across different platforms and verifying its accuracy, you present a unified and dependable profile to lenders. This reinforces your trustworthiness as a borrower and instils confidence in your financial responsibility.
Regularly reviewing and updating your personal information, particularly your address, ensures that your records are current and aligned. Taking a proactive approach in this regard helps maintain a robust credit file and further enhances your credibility with lenders.
Using your credit card to its maximum limit and carrying a balance without paying it off each month can have adverse effects on your credit score. To maintain a strong credit profile, it’s important to use your credit card responsibly by paying off the balance in full every month.
Paying off your credit card balance in full showcases your responsible credit management and financial discipline. This demonstrates to lenders that you can effectively handle credit without accumulating excessive debt.
Consistently paying off your credit card balance establishes a positive credit history, which is essential for future credit applications and favourable loan and mortgage terms. It highlights your reliability as a borrower who can manage credit obligations effectively.
To maintain a healthy credit score and enhance your overall creditworthiness, it is advisable to use your credit card wisely. Keep your balances low and aim to pay them off in full each month.
By practicing responsible credit card usage, you contribute to a positive credit score and improve your financial standing.
It is of utmost importance to prioritise meeting payment deadlines and ensuring that you have sufficient funds in your account when credit card payments are due. Consistently adhering to these practices has a significant positive impact on your credit rating.
By consistently making timely payments, you demonstrate financial responsibility and reliability to lenders. This helps in building a positive credit history, which plays a crucial role in determining your creditworthiness.
To ensure timely payments, consider setting up automatic payments or reminders to help you stay organised. This will help you avoid late payments, which can have adverse effects on your credit rating.
Consistency in meeting payment deadlines and maintaining a strong payment record showcases your ability to manage your financial obligations effectively. This responsible behaviour not only enhances your credit rating but also increases your chances of securing favourable terms on future credit applications.
By prioritising payment punctuality and diligently managing your finances, you establish a solid foundation for your financial well-being and pave the way for a positive credit rating.
It is important to consider closing any credit accounts that are no longer in use or that you have no intention of using. Keeping unused accounts open can potentially have a negative impact on your credit file.
Having an old address linked to an account can create discrepancies and affect your credit score. Therefore, it is advisable to update your address information and ensure that all accounts reflect your current and accurate details.
This advice also extends to store accounts. If you have store accounts that you no longer utilise, it is beneficial to close them. By doing so, you can streamline your credit profile and prevent any potential negative impact on your credit score.
Taking proactive steps to close unused accounts and update your address information helps maintain a clean and accurate credit file. This contributes to a healthier credit profile and enhances your overall creditworthiness.
Being financially linked to someone with a poor credit history can have adverse effects on your own credit score. This situation commonly occurs in cases of divorce or separation, where both individuals remain financially connected and their actions can mutually impact each other’s creditworthiness.
When you are financially linked to someone with bad credit, their financial behaviour, such as missed payments or defaults, can potentially harm your creditworthiness. This can make it more challenging for you to obtain credit or secure favourable terms on loans and mortgages.
To safeguard your credit score, it is crucial to sever any financial connections with individuals who have bad credit. This may involve closing joint accounts, removing your name from shared loans, or taking other necessary steps to ensure your financial independence.
By proactively disentangling yourself from these connections, you can protect your own credit score and maintain a strong financial position. It is recommended to seek guidance from a financial advisor or credit expert who can provide personalised advice based on your specific circumstances.
If you’re embarking on the journey of saving for a mortgage and need expert advice in Leicester, our team at Leicestermoneyman is ready to help you.
We understand that starting the mortgage process can feel overwhelming, but we’re dedicated to providing a helping hand and easing your concerns. With over 20 years of industry experience, our knowledgeable team has the expertise to guide you through the process.
To begin, you can easily book your free mortgage consultation with one of our experienced mortgage advisors in Leicester. Whether you prefer to book online or give us a call, we’ll ensure that you receive personalised guidance tailored to your specific needs and circumstances.
At Leicestermoneyman, our goal is to help you navigate the complexities of the mortgage journey and make informed decisions. Contact us today to arrange your free mortgage appointment and take the first step towards achieving your homeownership goals in Leicester.
Whether you’re a first time buyer in Leicester or looking to remortgage in Leicester, choosing the right property survey is very important.
Our team of experienced mortgage advisors in Leicester are here to help you navigate this process and select the best survey option for your needs.
When you apply for a mortgage, the mortgage lender will conduct a property valuation to assess its value and evaluate the associated risk. There are two main types of valuations: physical and automated.
Physical valuations involve a surveyor visiting the property to assess its condition, which is particularly beneficial if the property has undergone renovations or has specific features that need closer examination.
On the other hand, automated valuations rely on an online database to compare the property to similar ones in the area. While automated valuations are faster, they may not always provide the same level of accuracy as physical valuations.
It’s worth noting that some mortgage lenders may offer a free valuation, although this can vary.
Mortgage valuations are generally the least expensive option as they provide a basic assessment and don’t delve into extensive property details like other types of surveys, which may identify potential concerns or issues.
If you’re considering purchasing a property, it’s highly recommended to obtain a homebuyer report to ensure its safety and overall quality.
During the inspection, a thorough examination of each room in the property will be conducted to identify any potential issues that may require further investigation or immediate attention, such as dampness, mold, or problems with the ceilings.
The homebuyer report will also assess the property’s compliance with current UK property regulations and highlight any legal matters that should be addressed prior to finalising the purchase.
It’s important to note that homebuyer reports offer more comprehensive insights compared to basic mortgage valuations, which is why they come at a higher cost.
Some mortgage lenders may provide the option to include a homebuyer report for an additional fee, while you can also choose to obtain an independent homebuyer report from a qualified and accredited surveyor.
It’s worth mentioning that a homebuyer report may not be suitable for certain types of properties, such as listed buildings, older properties, properties that have undergone extensive modifications, or those in need of significant modernisation.
Please be aware that a homebuyer report typically does not include a market valuation, but this service may be available for an additional fee if required.
A building survey is the most comprehensive and detailed property report available, suitable for all types of properties and particularly beneficial for older ones. It provides a thorough assessment of the property’s condition, identifying necessary repairs and potential upgrades.
During the building survey, you will receive information regarding any legal issues, areas of concern, possible defects, and expert advice on how to address these issues. The report may also include a repair timeline, comments on energy efficiency, and details on the construction of the property.
Furthermore, the building survey encompasses a comprehensive visual inspection of broader aspects such as the roof space, ground floors, and services. Due to the extensive level of detail provided, this type of survey typically comes with a higher cost compared to other surveys.
It’s important to note that your mortgage lender may not automatically offer a building survey, but you can inquire about adding it to your valuation for an additional fee.
Similarly to homebuyer reports, a building survey usually does not include a market valuation, although this service may be available at an additional cost.
Obtaining a building survey ensures a thorough understanding of the property’s condition and any potential issues, allowing you to make informed decisions regarding necessary repairs or upgrades.
During the process of a homebuyer report or building survey, certain issues may be identified that require additional investigation and specialised reports.
There are several types of specialist surveys and reports that can be conducted, depending on the specific concerns raised. These include damp and timber reports, roof inspections, drainage assessments, gas and electric evaluations, asbestos inspections, and central heating assessments, among others.
If any of these issues are flagged during your property inspection, we can help you in finding a local specialist who can conduct the necessary investigations and provide detailed reports on the specific areas of concern.
It’s important to address these issues promptly to ensure the safety, functionality, and longevity of the property.
Unsecured credit requires careful consideration. We frequently speak with customers seeking specialised mortgage advice in Leicester due to issues like missed payments, low credit scores, CCJs, and defaults.
Even a series of missed payments on a mobile phone contract can result in a default on your credit file, which can complicate future mortgage applications and suggest a lack of payment reliability.
Fortunately, having missed payments or defaults doesn’t necessarily spell the end of your mortgage prospects. While it may require specialised mortgage advice in Leicester to navigate the process, there are still potential options available to you.
While a lower deposit may decrease your chances of approval, having a sufficient deposit size can make a mortgage feasible, even with bad credit. When applying with a specialist mortgage lender, they will inquire about the timing and reasons behind any defaults registered against you.
The further in the past the default occurred, and if there is a valid explanation, such as a significant life event, the higher your chances of achieving mortgage success.
Everyone makes mistakes, and if your default was a genuine and honest error, the mortgage lender may show more understanding and leniency during the application process.
Here is a selection of commonly asked questions about bad credit mortgages along with their corresponding answers. If you don’t find your specific question or situation addressed below, please don’t hesitate to reach out to us.
Our experienced mortgage advice team has dealt with a wide range of complex mortgage scenarios and may have encountered a situation similar to yours before. We are here to help you in any way we can.
Prior to applying for a mortgage, it is important to provide your mortgage advisor in Leicester with an up-to-date copy of your credit report. You can typically obtain this report online for free.
Obtaining your credit report is especially important if you have concerns about your credit history. It helps you assess your financial standing and prevents multiple unsuccessful credit searches, which can negatively impact your credit rating and potentially hinder your mortgage application.
The answer to this question varies based on your specific circumstances. Many customers find themselves puzzled by their credit score and seek assistance in understanding why it may pose an issue.
While some customers may have a favorable deposit and a steady income despite a less-than-ideal credit score, mortgage lenders may still be hesitant to approve their borrowing due to the associated risk.
Mortgage lenders need assurance that you can consistently meet your mortgage payments without the risk of falling into arrears. Repossessing your home is something they aim to avoid whenever possible.
Despite the challenges, options for bad credit mortgages do exist, albeit with higher interest rates.
To navigate this process effectively, it is highly advisable to schedule an appointment with an experienced mortgage broker in Leicester who can guide you through the available options and help you make informed decisions.
Financial difficulties can arise unexpectedly, leaving you struggling to meet your mortgage payments despite previously having no issues. Unfortunately, even temporary setbacks can result in missed payments being recorded on your credit history.
When it comes time to remortgage in Leicester, buy a home as a first time buyer in Leicester, or move to a new property, these credit challenges can present obstacles. Mortgage lenders assess the risk involved and determine whether they can trust you to avoid similar situations in the future.
As experienced providers of transparent and specialised mortgage advice in Leicester, we have helped numerous customers who were previously tied to a mortgage and now face a poor credit history.
If you find yourself in a similar situation, consulting with a fast and friendly mortgage broker in Leicester can greatly benefit your journey toward achieving future mortgage success.
During the mortgage process, customers may encounter various bad credit issues that can lead to significant challenges. These issues include, but are not limited to:
While these circumstances are less than ideal, they don’t necessarily mean the end of the road for you. Although you may face a longer and more arduous process with higher mortgage rates, there are specialist mortgage lenders who can potentially offer assistance.
To improve your chances of mortgage success and gain access to better rates, it’s important to focus on enhancing your credit score. By taking steps to improve your creditworthiness, you can pave the way for a more favorable mortgage outcome.
If you require expert and transparent mortgage advice in Leicester on bad credit mortgages in Leicester, we invite you to book your free mortgage appointment online. Our team of experienced mortgage advisors in Leicester is here to help you.
With over 20 years of mortgage knowledge and expertise, we are dedicated to developing a clear plan of action for your credit score prior to the mortgage process. Our ultimate goal is to help you secure a mortgage of your own.
Take advantage of our experience and schedule your appointment today. We look forward to guiding you towards a successful mortgage journey.
It’s essential to plan your mortgage journey, it’s that first step to take before starting the process. Doing so could give you the upper hand and put you in front of other buyers. Preparing a mortgage agreement in principle should be at the top of your list before you start viewing properties.
It’s always to consider every possibility. In this unfortunate situation, you may have planned a mortgage to the last detail but ended up separating. This will require you to take out a mortgage as the sole applicant with no time to plan.
As an expert Mortgage Broker in Leicester, when you are looking at moving house in Leicester. We do recommend that you start planning your mortgage six months prior.
In some circumstances, the mortgage process can throw many hurdles which is why planning is essential. By preparing for any hurdles you may encounter, you should be able to work out what to do to overcome them.
Having worked in the mortgage industry for over 20 years, we have witnessed a large variety of mortgage problems. Even in the final stages of the mortgage journey, some occurrences can negatively impact the process, however, they can sometimes be solved if you prepare enough, or have a Mortgage Advisor in Leicester by your side.
Below are some common problems we have found customers encounter during their mortgage process:
By preparing six months before starting your mortgage journey, you may be able to avoid some of these problems.
For some first time Buyers in Leicester, saving up for a deposit can be the most difficult part, especially for those who aim to achieve their mortgage goals while currently renting. Will understand that saving for a deposit is a timely goal.
In the circumstance where you are struggling to reach the initial deposit total, you may be able to get financial support from your family through a gifted deposit. This amount gifted can be either the entire amount or a contribution.
Maybe one of the schemes can help give you a small deposit boost. There are many schemes available that are designed for applicants needing support with deposits. These are usually popular with many first time buyers in Leicester as a way to get them on the property ladder. There could be a scheme out there that suits your circumstances.
Credit scores are a huge benefactor when it comes to applying for a mortgage. If you have a poor credit score, this can lower your chances of a lender accepting you for a mortgage.
We recommend you use Check My File to see your insights into your credit score. By doing this, you will be able to obtain a copy of your credit report which our team will be able to look at free of charge.
On your mortgage application, you must look after your finances. Every lender will carry out a thorough analysis of your bank statement and will look at all your income and outgoings. Gambling transactions are something that will catch Lender’s eye especially if they are frequent and erratic outgoings.
In the fortunate case where you can receive a gifted deposit, make sure to keep that sum of money in the gifter’s account. That way, you will not have a large bank transfer in your account that lenders would question about.
Therefore, it’s wise to keep this gifted deposit inside of your family member’s or friend’s account.
We tend to find some self employed applicants in Leicester, you may find the mortgage journey a little bit different compared to a regular full time employment applicant.
The evidence you will need to provide as self employed will include at least one year of accounts and three months of bank statements to show your income and affordability. In some cases, you may need to provide additional evidence, however, this just depends on the lender.
Through the mortgage journey, you may come across a range of mortgage hurdles that could stall your purchase completely. One of these includes a break in the property chain. A mortgage broker in Leicester like us will be able to help you overcome these hurdles. We are here to support you 7 days a week.
If you have a specialist or complex case, look at getting mortgage advice in Leicester. Our team can provide you with a helping hand through your mortgage journey.
A gifted deposit is either a portion of or the entire amount of deposit you need to put down on a property and obtain a mortgage, given to you purely as a gift (agreed in official documentation) and with an understanding that you will not repay it.
Gifted deposits in Leicester are very useful if you are financially capable of covering the monthly mortgage repayments, but are struggling to save up for the initial deposit as a first time buyer in Leicester.
This can occur perhaps due to a lower income or frequent larger outgoings, such as rental payments and home energy bills. We hear of this a lot when we speak to first time buyers in Leicester.
In receiving a gifted deposit, you may also allow yourself to gain access to much better rates of interest during your mortgage process, especially if that gift is above the minimum 5% deposit requirement.
Generally it will mainly be parents (birth and adopted) and carers who are able to gift you the deposit. This is often discussed online using the terminology “Bank of Mum & Dad”.
Other extended family members may also be able to help out with a gifted deposit. This entirely depends on the mortgage lender that you end up with though, so it is worth speaking to a mortgage advisor in Leicester ahead of time, if that is the case.
We’re often quite surprised at the amount of customers who have no idea their parents are able to help with their mortgage! We also encounter a good portion who feel like they maybe can’t ask their parents for help.
The truth is, the majority of parents out there are more than happy to help their children to find a home of their own, comfortably living as opposed to struggling whilst living in a rental property.
Typically speaking, taking out a mortgage may save you more money per month than you would get from renting, as depending on the conditions of your mortgage, you could be paying much less per month.
The deposit that is gifted often comes from inheritance, although parents can sometimes gift it much earlier if they have enough money saved or have released equity from their own home.
The majority of mortgage lenders won’t agree to accept a loan as a means of paying off your deposit. It will be often relate to the lender not being so sure if you have the ability to afford paying both back at the same time.
Whilst there aren’t limits to the amount that can be gifted to a home buyer, it’s worth remembering that some lenders will want you to have at least 5% from your own savings.
In general, the more you can afford to put down, perhaps combining savings and gift, the better the deals you are going to have access to.
It will usually be first time buyers and people moving house in Leicester who will benefit the most from gifted deposit.
Your donor will be required to sign a gifted deposit form stating that it is not a loan and is in fact a gift. Additional proof such as ID, address and bank statements may be required.
As an open & honest mortgage broker in Leicester and surrounding areas, we always aim to provide our customers with the highest level of customer service, through a fast and friendly mortgage advice service.
We always rise above for our loyal customers, no matter the mortgage situation they are currently going through. When someone gets in touch with us for mortgage advice in Leicester, we will consider all cases, no matter how complex.
A trusted and experienced mortgage broker in Leicester is available seven days a week, from early on until late. Our advisors will be ready and waiting to offer their support at all times.
Book your free mortgage appointment today with an expert mortgage advisor in Leicester and we’ll see how we are able to help you on your mortgage journey.