Gifted Deposit FAQ’s | Mortgage Advice in Leicester

Gifted Deposit Explained | MoneymanTV

What is a gifted deposit?

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.

How can gifted deposits help out?

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.

Who can gift the deposit?

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.

Do your parents know you need help?

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.

Gifted Deposit vs Loans

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.

Is there a maximum or minimum gifted amount?

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.

Who could benefit from a gifted deposit?

It will usually be first time buyers and people moving house in Leicester who will benefit the most from gifted deposit.

You may also be able to use a gifted deposit to cover the initial 5% deposit for the Help to Buy Equity Loan Scheme, though this will again depend on the mortgage lender.

What proof is required?

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.

Our Mortgage Advice Service in Leicester

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.

Availability of a Mortgage Advisor in Leicester

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.

Buying a Property with a Friend or Partner in Leicester

Buying a Property with a Friend or Partner | MoneymanTV

Mortgage Advice in Leicester | Purchasing with a Friend or Partner

Property price inflation has majorly overruled the increases in standard wages over the years. These days, a home buyer may look at the option to purchase a property with a friend or partner in order to be able to afford a property.

It all comes down to looking at affordability. Having two parties within the process, lenders will be calculating two incomes instead of one, which could lead to an increase in the maximum mortgage amount. Obviously, the mortgage will be more affordable between two people because the costs will be split between two people.

How many people can jointly own a property?

You may that many mortgage lenders will let up to four people co-own a property together. With many parties being involved, it can result in some debate with changes in circumstances. Let’s as one borrower decided to stop their contributions to the group mortgage payments, the lender will still go to the rest of the group for payment.

Therefore, it’s important that you are careful with who you buy with. All joint owners still hold a legal right to stay within their home unless a court rules otherwise. Because of this, the person failing to put forward their contribution doesn’t have to leave as they are still a part-owner of the property.

In the case where one of the parties is looking to increase the mortgage at any point in the future, then you need permission from all borrowers to do this. Planning ahead for the future is good practice just in case circumstances change.

Joint Tenancy or Tenancy in Common?

Many couples who are married, in civil partnerships or simply cohabiting to go for joint tenancy for a mortgage. If you are looking to buy with a relative or friend, you may look at a Tenancy in Common. In the case that you are wanting to sell or remortgage the property in the future, you will need the consent of the other applicant.

When it comes to a tenancy in common, you will still jointly own the property, however, there is no legal requirement to do so in equal shares. Having this option is helpful if one party is earning a lot more per month than the other. As well as this you can act individually if you are a tenant in common. You can freely sell or give way your share of the property to another person, if you wish to remove yourself from the agreement.

If one of you were to, unfortunately, pass away, the property will be in possession of the other owner on the mortgage. We do recommend taking out life insurance to protect yourself from this in the future. The mortgage would be repaid at that point.

What happens if one party stops making mortgage payments?

It’s important to know that all mortgage borrowers are jointly and severally responsible for mortgage payments. With this in mind, if one of the parties stops paying, then the other parties involved have to help with the shortfall to avoid the mortgage falling into arrears. This can stop you from getting another mortgage in the future. See it as you not owning 50% of a property but 100% of it jointly.

How do I remove my ex-partner from my mortgage?

No one who buys a home with a partner does so with the intention of things not working out. If you are looking to remove a mortgage, it can be very challenging. This is because a mortgage is a big financial commitment so making changes to it later is not always straightforward. Before you can proceed with this, lenders will need to be certain that you can manage the mortgage payments on your own.

Regardless of if you can show that you have managed to maintain mortgage payments since your ex moved out does not always mean that a lender will agree to your request to put the mortgage into your sole name. Lender do prefer two people to pursue in case of arrears occurring.

When it comes to removing someone, they will carry out a brand-new affordability assessment, in the exact way as they would at the point of purchase if the lender declines the request. It’s best that you get in touch with a Mortgage Advisor in Leicester to look at if other lenders would agree to your request to transfer the mortgage into your name.

How do I remove my name from my ex-partner’s mortgage?

In the circumstance where you and your partner split up and you leave the family home, you are still responsible for mortgage payments with them. Regardless if you agree with your ex that they will make all the payments it’s still your responsibility. If you are sending your partner money each month, you should keep an eye on your credit report to ensure they are paying the mortgage.

Choosing to default, will impact your score. If you get connected to an old mortgage, then the payments for that will be considered if you subsequently want to buy a new home of your own. That will mean Lenders might not lend you as much as you would like. Buying a home with anyone is a risk, so you need to go into it with your eyes open.

It’s always better to agree on what would happen to the house should things not work while you are all still getting along well! It can be helpful to speak to an expert specialist mortgage advisor in Leicester to look at what your option might be. If you are looking for more information, check out our article ‘divorce & separation mortgage advice.’

Top 5 Mortgage Hurdles You May Come Across

Hurdles Obtaining a Mortgage in Leicester

When you are going through the mortgage journey, there is a small chance that you will encounter some kind of issue. Sometimes, these can be challenging to deal with!

Having worked in the mortgage industry for over 20 years, we have a vast amount of experience as a trusted Mortgage Broker in Leicester, and have encountered a vast range of mortgage hurdles throughout the years.

This means that it’s very likely we have encountered your situation before and will have an idea of how to overcome it.

On the rare occasions that we haven’t encountered your circumstance before, we will work hard in finding the best solution to help you along the mortgage journey. The hurdles you may face can be ones you are unaware of especially if you are First Time Buyer in Leicester, however, we hope to help you with this.

With a plethora of mortgage hurdles out there, it would be a challenge to cover them all. Below highlights the top five hurdles you may encounter in the midst of your mortgage process.

Common Mortgage Hurdles

Childcare fees

Having your mortgage application turned away due to you having children is a rare occurrence, however, it can put you at a bit of a disadvantage if do.

The lender wants to be fully certain that you can manage all your mortgage payments as well as current expenditures. Childcare costs do come under the expenditure umbrella each month.

The reason why lenders have to factor this in is because these costs can often go into hundreds of pounds per month. Generally, childcare costs never decrease, they are always going up! From a lender’s point of view, childcare costs are the same as a car loan or hire purchase agent cost.

Regardless of if you don’t pay nursery fees, having children can mean you are offered less than other buyers who don’t have children. One advantage is that this type of family can usually be in receipt of tax credits and some lenders will acknowledge this along with child benefits.

Divorce/separation

In the unfortunate circumstance that you decide to separate from your partner, you may encounter some problems relating to finances, especially if you have one together.

If you are still financially linked with someone else, lenders may struggle to accept your application. This is because they don’t want you to have two different sets of mortgage payments to meet each month as it might be a lot to handle.

Our team often get asked the same questions when people reach out to us for Specialist Mortgage Advice in Leicester, below are just a few:

  1. How can I remove my ex’s name from my mortgage?
  2. How do I remove my name from my ex’s mortgage?
  3. Can I get a second mortgage in Leicester?

If you are faced with mortgage hurdles like these, it can get very challenging, very quickly. The good news is that there is often a solution to these scenarios, it’s just working out the steps to overcome them. Having a Mortgage Broker in Leicester to provide a helping hand, you will have a lot of weight lifted in these difficult times.

Benefit income

When it comes to benefit income, different lenders will have varying viewpoints, one is how they are going to assess it. The good thing is that all benefit income like child tax credit, working tax credits, disability benefits and pensions can all be factored in one way or another. The lender decides whether to consider it or not.

Feel free to contact our team if you are looking for more information about mortgages and benefit income. Here at Leicestermoneyman, we will look over your situation for you and try to match you with a lender that will consider your benefit income, our goal is to get it right first time!

New Job

In many cases, a new job includes a larger salary. This additional income is usually put towards something like a new mortgage. You may think this means you have a higher chance of getting a mortgage, but this is not always the case.

It’s common to have a probationary period when you start a new job. Probationary periods are usually okay, but there will no doubt be some uncertainty there. You might a lender will only accept you when you have job security, it depends on the lender and mortgage costs.

To determine your work patterns, lenders will look at your previous places of employment. They need to know you aren’t jumping in and out of work. Gaps in employment can hurt your application.

You might find some lenders who will work from a newly signed employment contract even in month one or if your new job is about to begin.

Evidencing a deposit for a mortgage in Leicester

All mortgage lenders and mortgage brokers legally need evidence of where the borrowers’ deposit funds come from. This is to prove that the applicant has raised funds legally and to combat money-laundering. Your solicitor and estate agent may request evidence of your deposit also.

This is the part of the process we feel is the most complicated when applying for a mortgage and can result in some mistakes if not carried out correctly.

Your deposit might be from savings, premium bonds, the sale of another property, gifted from a family member or friend, from family overseas, or from a personal loan, either way, you need to have the paper audit trail for the accumulation of funds.

Can I Get a Mortgage With Bad/Adverse Credit in Leicester?

Can I Get a Mortgage With Bad Credit? | MoneymanTV

Bad Credit Mortgage Advice in Leicester

It is a common practice nowadays to seek Specialist Mortgage Advice in Leicester when clients have bad credit or not paying off their bills on time. 

Something as small as a missed or late payment from your bills may result in a default attached to your credit report. Which may harm your capability to obtain a mortgage because it implies that you cannot keep up with repayments on time.

But that doesn’t mean it’s impossible, having any missed payments or defaults in your credit file may require some additional help from a Mortgage Broker in Leicester like ourselves. This is because most High Street Banks will reject your application for a mortgage, especially if you only have a small deposit.

Your lender will need to know the date the default was registered against you and how long ago it was. The more details are given, the more likely it is that the lender will be able to help you. Especially if it was down to a life-related event such as ill-health, redundancy or separation.

We tend to find that clients often make mistakes in the past, and these financial mistakes can come back to haunt them. We may also be able to help you if you have had historic mortgage arrears or a CCJ (County Court Judgement).

Bad Credit Mortgage FAQs

Below are some helpful responses to frequently asked questions about Bad Credit mortgages in Leicester and nearby areas. If you can’t find what you need in our bad credit FAQs, one of our Mortgage Advisors in Leicester will be more than happy to get back to you. 

What will my mortgage advisor in Leicester need to see?

Your advisor will need to see an up-to-date copy of your credit report and show any previous credit problems you had in the past. You can find a copy of your recent credit report online for free.

Before applying for any mortgage, doing multiple credit searches can damage your credit rating. However, it’s still vital that you obtain an up-to-date copy of your credit report. 

I have a good income but bad credit. Can I still get a mortgage?

This all comes down to your circumstances and affordability. Some customers find themselves a little perplexed by their credit reports. It might look bad, they may have had issues, but they have a stable income and enough deposit to reduce a rate and obtain a decent mortgage deal. It makes you wonder if you are in that same position but the lender still won’t let you borrow the amount you’ll like or need. That’s because it all comes down to risk. 

After all, your lender needs to be convinced that you afford all your repayments on time without a likelihood of any arrears occurring. In the event of these arrears, the lender may need to repossess the home, which is something that everybody wants to avoid. 

There may be a chance for those who are looking to get a mortgage while having bad credit, you just may have to pay higher rates. For more information, it’s best to speak to a Specialist Mortgage Advisor in Leicester, with their help they can hopefully find you a potential mortgage.

I’ve had mortgage problems before. Will that stop me from getting a mortgage?

One day you may find yourself in financial trouble and no longer able to keep up with the mortgage payments. These circumstances are unfortunate, and whilst it could be a short blip that you can pay back not too long after, the damage is done, and it will be on your credit report as a missed payment.

You may be faced with other credit issues too, and when it comes to getting a Remortgage or a new mortgage after Moving Home in Leicester, you may find yourself struggling to obtain a new mortgage. As previously stated, this always comes down to risk. Can the lender trust you? Will you be in the same position again?

The good news is, with the help of Specialist Mortgage Advice in Leicester, we have had helped previous customers who have had a mortgage and have since ended up with Bad Credit. If you are in a similar situation, speak to a Mortgage Broker in Leicester like ourselves, we may be able to help you achieve your mortgage goals.

What other types of adverse problems are customers faced with?

Customers may find themselves in a position to have adverse issues regarding their credit, all of which can impact your affordability for a mortgage. These issues vary from, but are not limited to;

  • Bankruptcy
  • Credit Card or Loan Defaults
  • Missed Mortgage Payments
  • County Court Judgements (CCJ’s)

Whilst this is an awful situation to be in, it’s not the end of the world. Your mortgage process may be longer, more challenging, and you may end up on a higher rate, but there are lenders out there, who might have a mortgage deal on their panel, who will accept your mortgage application.

To boost your chances of success and open yourself up to better rates, you need to focus on improving your credit score. We have a handy guide on different ways to improve your credit score, which will hopefully put you in a much better place for obtaining a mortgage in the future.

Get in Touch for Bad Credit Mortgage Advice

If you require any Mortgage Advice in Leicester regarding a Bad or Adverse Credit situation. Don’t hesitate to get in touch with a member of our team. Utilising their knowledge working in the industry, working extra hard to try and put you in the best possible position to eventually obtain you a mortgage.

Different Help to Buy Schemes for Buying a Home in Leicester

It can be tough saving money for a deposit, particularly if you’re paying rent as well. To help those struggling to get on the property ladder in Leicester, the government introduced various Help to Buy Mortgages

This article will include the following:

  • Help to Buy Equity Loan
  • Help to Buy Shared Ownership
  • Help to Buy Armed Forces
  • Lifetime ISA Scheme

All aimed to help First Time Buyers in Leicester who are struggling to save for a larger deposit to get onto the property ladder.

Help to Buy Equity Loan

The Help to Buy Equity Loan scheme is popular amongst first time buyers in Leicester. To qualify for this scheme, you will need a minimum of a 5% deposit, and you can only purchase a new-build property. 

How does the scheme work?

Once you have saved up for a 5% deposit or more, the government will loan you 20%; if you have a 10% deposit, which makes up a 25% deposit. 

You will be left with a 75% mortgage and a government equity loan to pay off. You get five years to pay off this equity loan interest-free.

If you can’t meet the 5-year cut off point, you will start receiving interest in the outstanding loan amount. 

How our mortgage advisors in Leicester help

As a mortgage broker in Leicester, we understand the challenges of balancing your mortgage payments and the equity loan repayment at the same time. 

There are ways around this. For example, you may be eligible to remortgage to raise capital for this loan, however, doing so may lead to your mortgage payments increase.

Help to Buy Shared Ownership

The Shared Ownership scheme allows applicants to purchase a percentage of a property and then pay the rest back on rent.

The percentage of the property that you own usually needs to be between 25-75%, though this can change. The remaining portion is likely to be owned by the housing association. 

The way that your payments work is that you will have both your mortgage plus rent outgoings. So, you are paying 100% of the ground rent and service charge on the property. 

Help to Buy Armed Forces Scheme

Following the success of the Help to Buy Equity Loan scheme, this scheme had a similar concept as its predecessor, except you have to work in Armed Forces.

If you fit into the criteria, it could be an excellent option for you. The good news is that the government has now extended the deadline/review date of the scheme to December 2022.

Lifetime ISA

The Lifetime ISA can be still beneficial, and it can help you secure a property as a First Time Buyer in Leicester. Essentially it’s a savings account where the money grows tax-free. 

The government will also top up your savings by an extra 25%, so if you meet the £4,000 maximum amount, you will receive a nice £1,000 bonus.

You have to pass specific criteria to gain access to this scheme. All of the details will be on the Government Lifetime ISA page.

Getting Prepared For A Mortgage In Leicester

Looking to Get Prepared in Leicester

Once you have gotten past the hurdle of saving the deposit, the next steps you’ll be faced with will be providing the necessary paperwork for your Mortgage Broker in Leicester.

Here we have put together a list of tips and tricks on how to be best prepared for your mortgage process, hopefully making it quicker and smoother.

Up-to-Date Credit Report

An up-to-date credit report is something that is vital to the process and should be something that you prioritise. By doing this you’ll make sure that you’re not caught off guard by any previously unpaid payments that could stop you from progressing your mortgage.

Our Mortgage Advisors in Leicester will take a look at which lender will be right for you to go with, so it’s best to make sure all your information is up-to-date and accurate, so that you can be placed with the appropriate one.

You can improve your standing on your credit report by making sure that you are on the voters roll and cancelling any old or unused credit cards that you still have in your name.

Proof of ID

You’ll need to prove to your Mortgage Broker that you are exactly who you claim to be, by providing them with photo ID. You have the option of either using a Driving license or Passport.

If you are choosing to use your Driving Licence for your proof of address, you won’t be able to use it for your proof of ID and will have to use something else.

For those who are currently working within the country and using a Visa, then this is something you will also be required to provide.

Proof of Address

As touched upon in the previous point, you will also need to provide your mortgage advisor with a proof of address. If you are using your Passport for photo ID, you will be able to use your Driving License for this.

Otherwise you can use either a utility bill or a bank statement that has been dated within the last 3 months.

Last 3 Months Bank Statements

The bank statements you provide will also help to prove how much money you earn, as well as giving some insight as to what your regular spending habits are like.

This is something that again, highlights just how important it is to prepare ahead of time and be careful as to how much money you’re spending and what you’re spending it on.

Not all mortgage lenders will want to see your bank statements, though the majority will, so it is important to make sure that you have these to hand just in case.

Evidence of Deposit

Whilst you may have already saved up your deposit for the property you’re looking to buy, you will still have to provide proof of how this was saved for anti-money laundering purposes and demonstrate that you have everything in place for it.

A useful tip that we would suggest here, is to make sure your finances are stable and in one place, so that when it comes to the audit trail, everything is simple and can be checked over quickly.

Proof of Income

To show the mortgage lender that you can in fact afford their mortgage payments, you will need to prove your income.

For customers in regular employment, as touched upon before, you’ll need the last 3 months payslips. On top of this though, some lenders will want to see the most recent P60.

Lenders may also consider various other factors such as overtime, commission, bonuses and any earnings you have gained from other employers.

If you happen to instead be a self-employed mortgage applicant, then you will also need the help of your accountant who will obtain for you, your last 2 or 3 years proof of earnings.

For those of you who submit your own accounts, we will be more than happy to advise you on what you’ll need to obtain from the Government gateway.

Budget Planner

By creating a solid plan of what your budget will be, you will be able to gain a wider perspective of where you will need to spend your money and what everything is.

It is best to make a list of things such as your council tax, utility bills, and anything that you have to regularly spend money on, such as food and drink. Doing this will help to determine how much disposable income you have overall once those payments have gone out.

If you are struggling with this, then we would be happy to send you a budget planner template so that you can get started.

In summary, preparation is crucial for a First Time Buyer in Leicester to get their mortgage sorted as quickly and efficiently as they possibly can, and this will only be made simpler by seeking out expert Mortgage Advice in Leicester.

The quicker you put in the time and effort to collect all of the essential information you need, the easier it will be to speed up your process and get an extra step further to achieving your mortgage goals.

Mortgages for Newly Qualified Teachers (NQT’s) in Leicester

Newly Qualified Teacher Mortgage Advice in Leicester

Congratulations are in order! You have passed all of the required exams and have successfully reached your career goal of becoming a Newly Qualified Teacher. The next step is for you to find yourself a job within the classroom, making use of your teacher qualifications!

You may find that you’re in a particular circumstance that puts you in need of starting to look at your options for Moving House in Leicester, if say you are currently living in a property a bit further away than the opportunity you have been given.

Soon enough you will be on the hunt for a place to move, struggling to balance homeownership and trying to make sure that you’re comfortable in your newfound teaching role.

This is not something that you are alone with though, as we have helped a lot of customers over the years who are under an equal amount of stress, needing help with their mortgage whilst they focus on their career.

Newly Qualified Teacher Mortgages

It may be quite difficult trying to find a mortgage lender who will want to offer a mortgage to a teacher who is newly qualified.

The main reasons for this will either be due to the fact that there is no work history or because they will be on a temporary contract.

Even with this in mind, it is not impossible to find a mortgage for a Newly Qualified Teacher, which is something that our team of dedicated Mortgage Advisors in Leicester have helped a great deal with in our lifespan as a mortgage broker.

From time to time, there will be some mortgage lenders who may have preferrable deals on offer to people who are working within this particular work sector.

The key to success is finding the best mortgage lender to go with, which can often be the most difficult part of that process.

It is here where our experienced mortgage advice team in Leicester can sit and take a look through thousands of mortgage deals, doing everything they can to find the perfect one for your circumstances, with favourable rates.

What mortgages for NQT teachers may be available?

It’s important to remember that whilst it can be difficult, you are not completely restricted in the options that are available to you.

That being said, here are some of the more common mortgage types that we find are available to Newly Qualified Teachers:

  • Help-to-Buy Schemes – A government scheme designed to help with first-time buyers looking to purchase a new build property.
  • Fixed-Rate Mortgages – One of the most common mortgages, allowing your payments to stay the same for a length of time.
  • Shared Ownership Mortgages – Turning your mortgage payments into part rent, part mortgage. Making repayments potentially easier.
  • Tracker Mortgages – A form of variable rate, where interest will follow the Bank of England’s base rate, whether that is up or down.

The lender may take a few different factors into consideration too. There are mortgage lenders who do not need to see previous employment, as well as letting you have access to up to a 95% loan-to-value.

Depending, a 12-month first contract may be recognised as the same as a permanent job role, as opposed to being recognised as a temporary one.

Lastly, there may be some lenders out there who are willing to start the mortgage process prior to your start date, so long as you can provide evidence of a signed contract and a start date.

This can be helpful, as you may find that you are ready to start making your first mortgage payments with first months pay from your new job by the time that the mortgage has completed.

How a Mortgage Advisor in Leicester may Help

Our trusted team of hardworking and loyal mortgage advice experts in Leicester have a wealth of experience working within the mortgage industry, helping various home buyers with their mortgage situations.

You’ll find there are a lot of benefits to using a Mortgage Broker in Leicester. We will take the weight off your shoulders, search thousands of deals of your behalf, recommend conveyancing solicitors and so much more.

To take a look at all of the mortgage options available to you, use our online form and book yourself in for a free mortgage appointment with a dedicated mortgage advisor in Leicester, who will take some information from you and let you know what your next step will be.

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

Estate Agent Mortgage Advice in Leicester

During the start of your mortgage journey, you’ll most likely have to deal with an estate agent. If you end up in conversation with a larger estate agent, they will want you to use their own in-house team of mortgage advisors & conveyancers.

A lot of first time buyers in Leicester fall into this and are persuaded to use their services, usually spending more money than they otherwise would’ve had to.

The good news is that you don’t need to use their advisor at all, a point we’ll expand upon later on, and you may also open yourself up the either the same deals or better by going elsewhere.

Speaking to a Mortgage Advisor in Leicester outside of the estate agent could be a much better route for you to follow. The advisor working for the estate agent will give you a biased view that only benefits them and their profit.

A dedicated mortgage broker in Leicester will help you see the positives and negatives of each side. If you do still choose to go with the estate agents mortgage advisor, that is okay, though it’s important to remember that you have options.

We always aim to be transparent & efficient, looking to give the best possible experience and the best advice for our customers personal and financial circumstances, whilst providing a fast & friendly mortgage advice service.

Sales tactics of estate agents

If you do opt to use the services of your estate agent’s in-house mortgage advisor and conveyancer, have a good think about where their service cost is coming from.

They could potentially be charging you for their services without asking you and adding it onto the costs of other services, hoping you won’t notice.

Taking on expert mortgage advice in Leicester will reduce your concerns of this, as you will be well informed and aware of what you’re paying for. Your dedicated advisor will break down the cost of everything for you.

Even though it is highly illegal for them to do so, if you have opted not to use their services, they may refuse to put your property offers forward.

For example, you could be instead using the services of a mortgage broker and they may push forward someone else’s offer to completion over yours, purely out of spite that you didn’t use their services. Once again, this type of practice is illicit behaviour.

Estate agents may get even attempt to charge their customers extortionate fees for in-house conveyancing. Even with a straightforward purchase, you may find yourself being charged somewhere within the realm of £1,500, which is far too much.

Any time this occurs, you have full consumer rights to be given a full breakdown of exactly why it costs this much and where their calculations came from.

An experienced mortgage broker in Leicester will only want to do right by the customer. By coming to us for mortgage advice, you can avoid the tactics mentioned above.

How can I get a mortgage in Leicester?

Finding The Right Mortgage Advisor

Making sure you use the right Mortgage Advisor can be difficult; but can you make it easier?

From time to time, mortgage cases may require specialist care from a trusted mortgage advisor in Leicester. The in-house mortgage advisors from the estate agents don’t care for the details, so long as they can make a profit from it, even if it’s detrimental to you.

Speaking to an expert mortgage broker in Leicester you’ll find yourself matched up with an appropriate advisor with experience in a situation that’s at least similar to yours. They will work with you to ensure you get the right outcome.

An example of this would be the buy-to-let mortgage experts we have on hand for any landlords, new or experienced, looking to get a mortgage.

Once you’ve completed your free mortgage appointment and obtained an agreement in principle (we can normally get this for you within 24 hours of your appointment), your mortgage process can finally get underway.

We utilise our many collective years of providing open & honest mortgage advice in Leicester, helping thousands of customers achieve their home owning goals and dreams. Our customer reviews are a great inside look at how much of a difference our service makes to homeowners.

Kickstarting Your Own Mortgage Journey

Some people would rather take on the world of mortgages by themselves, and this is okay! The internet is a wonderful place and you can now do most of what you would need to do, by yourself on your browser.

By utilising price comparison websites, you may be able to find the best mortgage deal for your circumstances through your own research and understanding.

An obvious benefit to doing this would be that you’d save money on additional fees. Providing you have confidence in what you’re doing and understand the process, you could get through it awfully quick, more so than someone going to their bank.

The catch is that online mortgage shopping is quite difficult to do. Before you make any agreements, you should always make sure you have the best fit for your circumstances. Here are some tips if you’re doing this;

  • Can you match the criteria for the “Best Buy” rates? Check before you apply for anything, to reduce the risk of harm to your credit score.
  • Have you conducted the right research? A lot of comparison sites have commission based relationships with lenders. It’s their job to direct you to these companies for a payday. If they do not have a commercial relationship with a certain lender, they may just leave that deal off the list.
  • In the event you encounter a problem along the way, you could be at a financial disadvantage. Pay attention to valuation and applications fees if you are not 100% sure you have been accepted, as they won’t be refundable.
  • Progressing your application and sorting out any future concerns is solely your responsibility.

Should I Use My Bank or a Mortgage Broker?

Using Your Bank’s Mortgage Advisor

Making an appointment with a bank to speak to a mortgage advisor may be challenging. This isn’t always the case, though it also may just be the wrong choice for you to make. Here are a few things to look out for;

  • The bank won’t shop around for the best deal, they will only present their own products, some of which may not even be suitable for you.
  • No matter how long you’ve banked with them, you may find yourself getting declined. We’ve had genuine instances where 20 plus year customers have been turned away for lack of information.
  • Mortgage appointments with a bank tend to have a long waiting list, with some lenders’ waiting lists being almost 6-months long.
  • Your bank may have inexperienced mortgage advisors and struggle to help with difficult circumstances. Instead of solving problems, they have been known to just turn people away.

Using a Mortgage Broker in Leicester

Taking on the services of a mortgage broker that has no association with any estate agents ensures that you, as an inexperienced first time buyer in Leicester, have someone there to do the hard work for you, without any conflict of interest risks.

We work for you and only you, with no external ties. Whilst we do have mortgage lenders on panel, we don’t work for them, we simply match customers up to their various unique deals.

Our team do what they can to make sure you’re happy with your mortgage journey and the outcome you end up with. Managing Director Malcolm Davidson is here to explain both the positives and negatives of using a trusted mortgage broker:

Why Should I Use A Mortgage Broker? | MoneymanTV

Lifetime ISA Explained in Leicester

ISA Mortgage Advice in Leicester

The Lifetime ISA (independent savings account) is a great addition to the government-led mortgage schemes. In theory, it’s not really a scheme, it’s an independent savings account that builds up overtime through help from the governement. These funds can help you purchase your first home.

The Lifetime ISA is not to get confused with the Help to Buy ISA, they are similar but there are some differences. Let’s take a look at the Lifetime ISA, how it works and why it could benefit you.

What is a Lifetime ISA?

In your Lifetime ISA, your savings will grow interest-free. Each year, your total amount saved in the ISA will be increased by the government by 25%.

The maximum that you can deposit each year is £4,000. This may seem like a lot, however, at the end of the year, you’ll receive an extra £1,000 in your ISA account.

ISA Infographic

Where can I use my savings?

Your ISA savings can be used for two different things. Firstly, you can use it to buy your first property. If you are thinking about starting your buying a home journey as a First Time Buyer in Leicester, this scheme could be perfect for you. Lifetime ISAs can especially be useful if you’re thinking of holding off your mortgage journey for a little while longer.

Alternatively, you can use the Lifetime ISA for later in life savings. Unfortunately, as a Mortgage Broker in Leicester, we can only help clients looking to utilise the savings account to fund a deposit for their first home. If you are thinking of using the Lifetime ISA for this second reason, you can find out more information on the Lifetime ISA government website.

Are there any restrictions?

Like most government schemes, you will have to qualify for the ISA before you can use it. Here are the requirements:

Buying a home

  • This has to be your first home purchase
  • You can only save a total of £4,000 a year
  • The house that you’re purchasing must cost £450,000 or less
  • You must be under the scheme for a least a year before you can make a purchase
  • You must be over the age of 18 but under 40

Further information on the Lifetime ISA can be found on the official government’s official page here: https://www.gov.uk/lifetime-isa.

If you’re already feeling as if this is right for you, get in touch with a Mortgage Broker in Leicester like us and we can help you get your Lifetime ISA journey started.

Trusted Mortgage Advice in Leicester

If you’re curious about more government-led mortgage schemes, now could be the perfect time to take a look and find out what’s available. There are lots of different schemes available, so it’s definitely worth the look! Starting off your mortgage journey through a government scheme could massively boost your chances of being accepted for a mortgage.

Get in touch with our brilliant Mortgage Advisors in Leicester and book your free mortgage appointment today. We don’t just specialise in Lifetime ISAs, we work with the Self Employed, Remortgages and Buy to Lets; any mortgage situation, we will try our best to help! We love a good challenge and we would love to try and help you make that first step onto the property ladder.

The Importance of Changing Your Address in Leicester

Mortgage Advice for First-Time Buyers

As a first time buyer in Leicester applying for a mortgage, you need to be aware of your credit score. You will find that the least amount of addresses you have on your record, the better, though this seems to be something that people are more knowledgeable and aware of nowadays.

The Importance of Keeping Consistent With Your Addresses

Our experienced mortgage advisors in Leicester have found they are many applicants who have moved out of their parent’s address into rented accommodation, yet believe that it is a good idea to keep their previous address registered on bank statements, credit cards, and electoral roll.

People believe this is beneficial despite being a flawed strategy. Almost every time, if you have moved to a new address, there will be some record of this on your credit report. Your address could be recorded from a delivery address when you have ordered something online or car/home insurance search and many more.

Getting all your accounts (credit cards/ current accounts) and electoral roll changed over to your new address can be the best strategy when you are thinking of taking out a mortgage. At the time of updating your address on your credit file and electoral roll, it’s best to double-check the date in and date out. The consequence of making mistakes with these dates is that it may appear on your records that you are living in two places at once. 

This will show a more open and honest way of trying to apply for a mortgage which will benefit you greatly in your Mortgage application and when it comes to approaching a Mortgage Advisor in Leicester.

Get in Touch For Mortgage Advice in Leicester

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The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
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