No matter the mortgage route that you end up taking, you could be a first time buyer in Doncaster, home mover or looking to remortgage, your mortgage lender will always request a copy of your bank statements. In fact, they will ask for numerous pieces of evidence to support your affordability for a mortgage.
Lenders look at bank statements for multiple different reasons. They will need to measure your mortgage affordability, reliability and determine whether you are someone who manages their finances responsibly.
The planning stage of your mortgage journey matters the most. As a mortgage broker in Doncaster, we would strongly advise that you think about your bank statements and consider what you want to show on them in the months leading up to your mortgage application.
Furthermore, when it comes to what a lender is looking for on your bank statements, a big thing that will catch their eye is gambling transactions.
Although gambling is not illegal, lenders do seem to judge your mortgage application less favourably if they can see large amounts of gambling transactions on your bank statements.
There’s a big difference between spending a little bit here and there when the grand national is on to frequently betting lots of money every weekend. This is why, especially during your mortgage application and the months leading up to it, you should remember to ‘gamble responsibly’.
A mortgage broker in Doncaster like us, nor a lender can ever tell you how to live your life, all we can do is ask for you to be careful. Lenders do have a duty to lend responsibly.
Lenders need to prove to regulators that they’re lending to responsible applicants, therefore they will never lend to someone who can’t take care of their own finances. Would you lend to someone who is constantly gambling over an applicant who hardly gambles?
The odd gambling transaction here and there shouldn’t affect your ability to get a mortgage. Lenders will look at the size of the transactions and how frequent they are.
They will also look at how these transactions affect your overall account balance. Do they make you dip into your overdraft? Are you borrowing money to gamble/gambling money that you don’t have?
If you’re acting irresponsibly with your money in the lead up to your mortgage application, the lender will notice all of these transactions straight away.
It’s not just gambling transactions that lenders will look for, they will also be looking for different things on your bank statements:
They need to be sure that you are the type of applicant that they want to lend to. From monitoring your accounts to asking you questions about your transactions, they need to be certain that they can trust you.
On the other hand, if you do happen to dip into your overdraft now and again, it shouldn’t have too much detrimental effect on your mortgage application. It’s when you are constantly dipping into your overdraft and are struggling to get out of it.
Being reliable and sensible is exactly what a lender is looking for. Plan ahead, show the lender that you’re serious about the mortgage process and want to present yourself the best that you can.
Usually, you will be asked to provide up to three months of your most recent bank statements. With this in mind, during these months, make sure that you take care of finances and be responsible and sensible.
If you gamble regularly, perhaps it could be an idea to take a break for a little while. Betting apps often hold betting limit features; this could be something to think about. As well as aiding your mortgage application, this may also be good for your mental health.
Our job as a mortgage broker in Doncaster is to help you through your whole mortgage process, from the very start! We will take a look at your evidential documents with you, making sure that you are presenting yourself in the best way possible for your situation.
Our mortgage advisors in Doncaster will hold your hand throughout your application. We have availability 7 days a week, so don’t hesitate to get in touch.
When it comes to choosing which mortgage product to take out, it can become a bit of a minefield as there are so many choices available. If you’re a First Time Buyer in Doncaster, all of these different options can get a little bit confusing. Each type will work very differently from another too, therefore, it’s best to know how each one works.
In this article, we are going to focus on the Cashback mortgage and look at how they work. Also touching on how it can benefit you and your mortgage situation.
Before we dive into the article, if you’d prefer to watch Malcolm’s video on cashback mortgages, that option is available. Take a look at the moneymanTV YouTube video just below:
They’re as simple as they sound. Taking out a Cashback mortgage would allow you to get some cash back at the end of your whole mortgage term. They’re usually taken out over long-medium mortgage terms.
The amount that you’ll get back at the end of your term is usually calculated from a percentage of what you have borrowed. Typically, the percentage will be something like 1 or 2%.
In other cases, lenders may state a fixed price in your contract that you signed when you originally took out the mortgage. The amount stated on your contract will not increase over time, this is a fixed price.
Like all mortgage options, the Cashback mortgage comes with both positives and negatives. Sometimes, it can be down to the lender that you’ve chosen to take out the mortgage with. For example, some lenders may offer a free mortgage valuation or some sort of fringe benefits with your product.
Cashback mortgages tend to appeal to customers that are borrowing lower mortgages. You will get money back at the end of your term and possibly some benefits on the side. If you manage to get offered a competitive percentage on a Cashback mortgage in Doncaster, it may be worth considering as it will be worth the investment in the long term.
There is only really one downside to these types of mortgages, and that’s that they tend to come with high interest rates.
When compared to other mortgage options, the Cashback mortgage isn’t at the forefront of the market; it’s not the most popular amongst homeowners. This doesn’t mean that it’s not an option worth considering.
As a mortgage broker in Doncaster, we do occasionally see Cashback mortgages being taken out, therefore if you are interested in them, they’re still available!
If you don’t quite qualify for your first mortgage option, they make a great backup option. If you want to find out more about the Cashback mortgage and the other types of mortgages that are available, you should get Specialist Mortgage Advice in Doncaster from our advisors. We will be more than happy to go through all of your mortgage options with you.
Get in touch by booking your free mortgage appointment online today.
Firstly, Congratulations! You have passed all of the necessary exams and are now a newly qualified teacher. Now all you have to do is find a teaching position and start gaining some teaching experience.
For some, to be closer to that job, you may be required to look at relocating to Doncaster. If you already own your own home, you may benefit from the help of a mortgage broker in Doncaster.
We have dealt with many customers who feel stressed trying to balance the strain of homeownership whilst settling down within your newfound role in teaching.
Hopefully, with the help of a mortgage advisor in Doncaster, your process will go a lot smoother and quicker, reducing your stress levels.
The challenging part is finding a lender willing to offer a mortgage to newly qualified teachers. Mian reason being NQT having little to no work history or being on a temporary contract.
The good news is, some lenders may even offer good deals with those working within the teaching industry from time to time and always a good idea to go to a mortgage broker. For instance, with the help of a mortgage broker in Doncaster, they can search thousands of deals and match your situation to the right lender’s criteria.
The different types of mortgage available for newly qualified teachers commonly include:
Here are some things that lenders may consider during your process:
Our team of mortgage advisors in Doncaster have much experience working throughout this industry, helping various people with similar situations such as yourself.
Most importantly, there are lots of benefits to home buyers using a trusted first time buyer mortgage broker in Doncaster.
For more information get in touch, and we can book you in for a free mortgage consultation. From there, we take some details from you to determine whether or not you have a chance of obtaining a mortgage suitable to your circumstances.
Looking for specialist mortgage advice in Doncaster to boost your credit score? The higher your credit score, the more chance you have of your mortgage application will be accepted. No one is guaranteed to get taken though, and Lenders have their internal scoring systems.
Each Lender has developed its system of scoring over the years. Don’t worry if you fail with one Lender. Other mortgage lenders may be more forgiving. It is your Mortgage Advisor in Doncaster’s job to match you to the right Lender, hopefully, first time, but this is not an exact science. Both you and your Mortgage Advisor in Doncaster want the same thing, which is that you end up with the best deal available to you.
There are several different credit reference agencies in the UK, including Experian and Equifax. It is a good idea to check as many of these agencies as possible to get a rounded picture of your credit score. Also, one of the agencies may be holding incorrect data. Checking with several agencies will help you identify any such discrepancies.
There are some excellent practices listed below regarding things you can be doing
Multiple credit searches can harm your score. Be careful when using price comparison websites which are significant culprits of credit searching on individuals. If you know you want to apply for a mortgage soon, it is wise to avoid using for any other credit. While having some credit and paying it back is a good thing for your score, in the long run, Lenders do not like to see you increasing your borrowings just before making a mortgage application.
Being on the electoral roll adds many points onto your score. It indicates stability and Lenders like that. Ensure your names spelt correctly and that it’s your current address registered at, not an old one. If you are not logged, it’s easy to do so online.
If you max out your card each month that will reduce your score. Using a credit card and paying off the balance in full each month is preferable. In any case, this indicates that you are good at managing your money. Worst of all would be exceeding an agreed card limit or overdraft. Lenders want to know that you take your finances seriously.
Quite often it can appear that you are living in two places at the same time on your credit report. In any case, this occurs because you may have forgotten to tell one of your credit providers that you have moved to a new house. Check all addresses are spelt correctly. If you have lived in a flat, this can be tricky as the flat/apartment number can be formatted in different ways.
You should contact the providers of store/credit cards you no longer use and get the account closed. In the short term, this can harm your score briefly as the credit reference can’t tell if it’s you closing the account down or the provider. Don’t worry, though, and it’s one step back to take two forward. This is also a good thing to do to reduce your chance of falling victim for fraud should you not notice you have lost a card you don’t use regularly.
If you have a family member or ex-partner connected to you, then this could be affecting your score. You won’t be able to get the financial association removed if the account is still live though. To remove one of these links, you should contact the credit reference agencies and make a request.
Many consumers feel that credit scoring is an unfair way of Lenders assessing applications. Lenders feel differently. It is much cheaper for them to operate this way and computers give more consistent outcomes.
Send an up to date copy of your credit report to your Mortgage Advisor in Doncaster upfront, and you will increase your chances of being accepted the first time. The more your Advisor knows about your finances, the better. Also, there are still some smaller Lenders out there that do not credit score. These Lenders do it the old-fashioned manual way, although they will even have specific rules about the number of defaults and CCJ’s they will allow.
First time buyers in Doncaster making an offer on a property is an exciting part of the process. However, it’s a little tricky. You want to be able to obtain the house at the lowest possible price. But then again, you might feel uncomfortable about making an offer so low as to upset the seller.
The first thing to understand is that this is a negotiation process. It’s unlikely that your first offer will be accepted unless you go in at very close to the asking price.
Most sellers (aka Vendors) aim to maximize their selling price. They have plans of their own, and perhaps they need every penny possible to secure a new home for themselves. Whatever their intentions, you are also trying to find the “magic number.” That is to say, the lowest possible price they are willing to accept so that you can move forward.
This number is often slightly lower than they ideally wanted to achieve and slightly more than you ideally wanted to pay!
To help you get to this point before you offer, you need to get organized to give yourself the best possible chance of success. The matter of being organised is especially important if the property is new to the market or you are in competition with another prospective purchaser.
Any decent Estate Agent will want to check whether you are a cash buyer or if otherwise, that you have funds in place. No one wants an agreed sale to fall through, so it’s reasonable for them to check you have the means to proceed.
They also have their anti-money laundering checks to run, so you may also get asked to prove your identity and address. Some corporate Estate Agents exploit this diligence (aka Offer Qualification) to cross-sell other products and services to you.
They prey on purchasers who have fallen in love with a property by intimidating them by stating they have a greater chance of success by using an in-house Mortgage Advisor in Doncaster. However, this isn’t true; most people see right through it, and it is a poor practice that ought to be banned.
Sending in your Agreement in Principle and other documents should be proof enough that you can go ahead, and if not, tell the Estate Agent, you will bypass them and approach the vendor directly.
If you have a property to sell to raise a deposit for your purchase, it is far more effective to have sold it before making an offer. The issue sometimes is that you might not be looking for a new home until a specific one comes up for sale!
If this happens to you, then go ahead and view the property and express an interest. At this point, sellers are trying to agree on a price at this point, though it is to negotiate from a position of weakness. Even if you ignore this advice and agree on a purchase price, the vendor will be advised by their Estate Agent to keep the property on the market, so it doesn’t achieve very much.
Make sure to get all your paperwork in order. When you apply for a mortgage, you will get asked to provide proof of income, ID, address, deposit, and three months’ bank statements.
Start to pull all your documents together into a folder, so that the second your offer is accepted, you can put the wheels of your formal mortgage application in motion.
Emotions can run high when it comes to selling a home. If you are buying a house for your family and the seller has raised their own family in that house, then it might well resonate with them if you tell them your plans. It will help build empathy.
Telling them about all the shortcomings of the property is unlikely to get you very far when negotiating. For example, if the property is not double-glazed, the vendor already knows that so pointing out the obvious will not help you.
Finding out a little bit about the seller’s plans doesn’t do any harm at all within reason. Have they already found a house to buy themselves? What are the reasons they are moving? Have they had many offers?
Answers to these questions and others may signal how likely the vendor is to take a low offer. Generally, people can’t wait to talk about themselves, and if you listen carefully, you could easily find yourself in a better negotiating position.
One final thing – if your first offer is accepted, then chances are your opening bid was way too high! Always offer less than you are truly willing to pay.
Equity Release mortgages can help people in a number of ways. Many people have heard of them, but are unsure as to whether they would be eligible and what benefits they may obtain, so in this article, we’re going to look at:
Firstly, your “equity” can be summarised as the value of your stake vested in the bricks and mortar of the property. So, if you already own your home, then your “equity” is the open market value of your house less the balance of any mortgage outstanding on it. If you’re a buyer, your “equity” is the amount of cash deposit you are putting into the transaction.
Secondly, Equity release Mortgages are aimed at older borrowers. Thus, you’d need to be at least 55 years old to be considered for an Equity Release plan and for some types that increase to age 60.
In general, it’s fair to say that the older you are, the better terms you’re likely to be offered from a lender. Other factors that would be considered in a traditional mortgage application, however – for example, earned income, pension income, number of dependents etc. – do not come into it. It is purely based on the value of your property.
The answer to this question is not entirely straightforward. Put simply, the amount you can borrow on this type of deal will be dictated by a combination of how old you are and how much equity you have?
Most providers have their own calculators and these can vary, but it’s fair to say the older you are, the more equity can be released. Your Equity Release Advisor will be able to accurately calculate this figure for you when you meet up.
The uses of Equity Release are many and varied, here are just a few examples:
In short, most legal reasons can be accommodated. Don’t forget, Equity Release mortgages are not necessarily suitable for everyone and in some of these instances there may be other, more suitable courses of action, but your Advisor will help you with this.
At Doncastermoneyman.com, we have a history of providing you with bespoke, detailed, mortgage advice as to what may be the most suitable way forward in your particular circumstances.
To add to this local service, we’ve now teamed up with Equity Release Specialist and between us, we’d be happy to come to meet you in the comfort of your own home to discuss any questions you may have on anything mentioned above.
With the October 31st Brexit deadline behind us, people are left to wonder what the next move is for the country. With everything up in arms and uncertainty in the minds of many, it can be hard to find reliable advice.
Many people have been sitting on their hands deciding upon which is the right path to go down in terms of the property market, potentially missing out on golden opportunities which could have benefitted them in the long run.
Due to previously experiencing how the Property Market has shifted by external factors like political situations affecting the country, our Mortgage Advisors are looking towards the future to evaluate the potential outcomes for customers post-Brexit. It feels like there is lots of pent-up demand out there now.
It’s why we strongly recommend our clients to at least get the full scope of their possibilities, especially if they’re planning on just waiting and seeing, which may not work out in their favour. If you’re planning on moving to a new house in 2020, then now’s the time. It would be advisable to have a chat with one of our friendly and experienced advisors sooner rather than later
Around this period now is the time to reach out to us and possibly get your home valued while Estate Agents are quiet.
Getting your home prepared for sale and on the markets takes time, including the 2 or 3 valuations to get a secured opinion, the time for you to choose your preferred Estate Agent, sign your agency agreement and get the photos finalised.
Furthermore, if many other people are in the same mindset as you, waiting will not work in your favour. By the time your home is on the market in the new year – so will theirs. The more houses that are on the market means, the more options there are for the potential homebuyers, possibly driving prices down.
By getting ahead of the market and getting your home valued now will mean many things, to list a few:
When the decision of Brexit is settled, you have all the information there available at your fingertips.
The decision to sell is all yours, and it is not a means to an end. It’s giving you a head start.
If you decide to remortgage to sell, you’ll have many reasons to spruce up your property, and there are many tips for selling your home. But if you prefer not to, you’ll already know the figures and the feedback to possibly get the best value by carrying out home improvements.
If you’re thinking of moving home in 2020 or the near future, contact us and speak to one of our friendly Mortgage Advisors to discuss your mortgage options. We offer all customers a free no obligation consultation.
Considering consolidating credit card debt into your mortgage may see like an easy way of dealing with your debt.
You will be moving unsecured credit card debt into a mortgage. Consider this move wisely and in detail before you decide. You may be reducing your monthly repayments with a lower rate of interest in a single mortgage repayment. But the lower interest rate and new loan (a mortgage) is not like credit card debt – debt which is unsecured. A mortgage is secured against the home.
You also will probably be aware that you will end up paying back more interest because you are likely to be paying this back over a longer period of time.
However, by consolidating your debt into a mortgage you will be reducing your monthly outgoings, lowering your monthly replaymets, which is usually the objective most people are seeking.
Debts can have been accumulated due to home improvements. In most instances this may also have increased the value of your home. Other times it’s just that the debt has been outstanding for several years with additional expenditure in different areas and it can be hard to reduce this debt.
You could consider taking out zero % credit cards and take the sensible step of looking for a new card when the zero % period ends. However, it’s not guaranteed that you can always get a transfer and it’s when that happens that homeowners decide to take action. Consolidate rather than pay a double-figure interest rate is often preferable and more manageable.
A debt consolidation remortgage is not something most people would want to arrange without taking advice. With a broker you will benefit from the consumer protection which is in place and a suitable tailored mortgage will be recommended for you. Note that the Mortgage Broker in Doncaster works for you and not the Lender so will ensure you get the right outcome.
The savings some people make are hundreds per month if they are carrying large debts and some people prefer to have everything within one monthly payment too.
The ‘gig economy’ has an ever-growing portion of the general public working within this section and working over short term contracts, because of this it means, they are not eligible for some benefits which employees might be such as sickness or holidays. The professions within this economy are varied, ranging from both skilled and unskilled workers, with the highest percentage being in professional services.
Because of the basis of the gig economy, it’s marginally harder for these workers to get a Mortgage in Doncaster as Lenders perceive these people to be self-employed. If you’re working within this type of economy to give yourself an increased chance of gaining a mortgage is to build up a track record of self-employment. You’ll most likely need one year’s history to qualify for a mortgage unless your contract has gone on for a longer duration.
If a Lender decides to view you as a Sole Trader, you will then need to produce evidence of your net profit – this is the amount you have earned minus your expenses in which you may need an Accountant to help you with this.
However, If you have set up your own Limited Company, then most Lenders will focus on the salary that you have paid yourself plus any dividends that are declared.
In contemporary times, Lenders are now becoming more flexible in the way they assess contract workers now that there are so apparent within the economy.
If you have been operating this way for a while and are currently in a contract. Then they will consider your ‘day rate’ as a way to assess your income, depending on the industry.
How Lenders will assess day rates will typically be that they will times the given rate by five then 46 weeks. They won’t include a full 52 weeks as contract usually doesn’t work the entire year, and neither do they get paid holidays. This method works well for IT contractors who tend to have a selection of contracts which they want to take.
Additionally, it is a good idea for any gig workers and self-employed applicants in Doncaster to get organized ahead of time before they start the mortgage application process. Tax can be a bother, but Lenders like to see a healthy level of sustainable earnings.
It’s also possible to get a mortgage on zero-hour contracts. Again, Lenders will want 12 months’ earnings before you can apply and will consider taking an average of your earnings over a full year.
When your introductory mortgage deal comes to an end your mortgage lender may offer you a new deal to stay with them, this is known as a product transfer.
Unfortunately, lenders do not always reward your loyalty and the offer they make you may not be competitive with deals you could get elsewhere. Even more annoyingly, these product transfer rates are not as good as the deal they offer new customers either!
Whilst swapping to a new deal with your current Lender may well be fairly easy online, it is always in your interest to see what other deals you may be eligible for. Lenders will also tempt you to effect a new deal online without taking advice.
This can be really dangerous because if you do this without advice you are waving goodbye to all the valuable consumer protection you would otherwise have benefitted from.
We have seen numerous examples of customers affecting these “follow-on” deals and locking themselves into an inappropriate deal. Because they opted out of advice then they have waived a lot of their rights in terms of making a complaint.
We did have a recent case where a customer who was pregnant did this and was declined for a small further advance to fund some necessary home improvements a few months later. She then had to pay a hefty early repayment charge to swap to a new Lender who would grant her the additional funds.
If we think a product transfer is the most suitable deal for you we will recommend that as a course of action for you and if we arrange the mortgage for you as a mortgage broker then all the regulation and consumer protection will apply.
In short, even if your requirement seems straightforward we recommend you always take advice – a second opinion costs nothing and making a mistake when taking a new product can be costly.
The remortgage market is highly competitive and savings can generally be made by searching the market for a new deal.