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Right to Buy Mortgages Explained in Sheffield

Right to Buy Mortgage Advice in Sheffield

Right to Buy, a mortgage option that can help you out when you’re wanting to purchase your council property.

The scheme was introduced to help individuals living in council properties purchase the property they’re living in. As a Right to Buy mortgage applicant, depending on how long you’ve lived in the property, you may receive a discount on the property that you’re applying for.

This discount is likely to be used as your deposit, meaning you can organise your remaining savings to help with the rest of the process.

You may also be able to borrow money if you want to make home improvements for the property. Some lenders may allow this, but you will need permission from the Local Authority beforehand.

The Right to Buy process

The Right to Buy scheme is simply a way to help council house owners take a mortgage out on the property they’re living in.

The first step to getting a Right to Buy mortgage is completing a RTB1 and finding out whether you’re eligible or not. If you’re unsure of how to do this, you can contact your local authority or a mortgage broker in Sheffield like us. We can help you get your right to buy process in Sheffield started.

Following this step, someone will arrange for a property survey to be carried out on your property. This means that the local authority can get a true value for your home and can work out the mortgage amount. You should also be able to access a Right to Buy discount on the property. This discount can be used for your deposit or used on solicitor, legal or arrangement fees.

Like the usual mortgage process, you’ll have to provide evidence that you can afford a mortgage and pass affordability assessments prior to being accepted. This is why it’s essential that you’re managing your finances well and being sensible with your money during the months leading up to your Right to Buy mortgage in Sheffield.

What fees are included?

When taking out a Right to Buy mortgage, you’ll come across similar fees and costs that applicants taking out a regular mortgage come across:

  • Lender’s valuation fee (some lenders do this for free, proving helpful to save on finances)
  • Lender arrangement fee (sometimes this isn’t necessary)
  • Mortgage broker’s fee (an experienced advisor in Sheffield will be able to support you through the process)
  • Solicitor’s and legal costs

Right to Buy in Sheffield

In summary, Right to Buy presents a great opportunity to council house owners and gives them chance to get onto the property ladder. A scheme like this is something to look into if you’re thinking of buying out your council property.

You will, however, have to live within the property for a certain amount of time before you can sell it, otherwise, you’ll be issued with a penalty. This will be in the form of repaying a sum of money linked to the original property discount generously presented at the start of the process.

If you can afford to purchase your council home and can compensate for new costs such as property damages and repairs, the scheme could be for you. Remember that an affordability assessment will be carried out before you take one out, so make sure that you’re as prepared as you can be.

What is a Property Chain & How Can You Avoid Them?

Moving home mortgage advice in Sheffield

When you’re moving home in Sheffield, you may come across all sorts of different hurdles and obstacles along the way. Whether it’s something to do with your offer not being accepted straight away or your application being stuck in the pipeline, there’s always something.

A common problem that homebuyers come across are property chains. Getting stuck in a property chain can often slow down, if not put to a halt, your home moving journey.

What is a property chain?

A property chain is a string of house purchases that rely on one another to complete the chain. If you’re a first time buyer in Sheffield, you will always be at the start of the chain, whereas, if you are selling a property, you’ll be at the end.

Picture it as an actual chain linking houses together. For a buyer to move into the property that they’re buying, they need to wait for the seller to move out first. However, the seller is in the same situation as you! They too are waiting for their seller to move out so that they can move in.

Depending on the property chain that you’re linked with, the link could go on and on. If you’re lucky, you may only have a couple of purchases linked with your property chain or even just one!

How long will the process take in a property chain?

The answer to this question is completely situational. You don’t know what situation that your seller’s seller is in (complicated… we know).

You may not even know that you’re in a property chain, the whole process could run smoothly, and you wouldn’t know any different. Everyone hopes for this situation, who doesn’t want a quick and simple moving home process.

If things don’t go your way, you may be stuck in a waiting scenario. As a mortgage broker in Sheffield, we recommend that you begin your process at least six months of preparation. This means that you have plenty of time to search for that dream home and allowed time just in case you get stuck in a property chain.

What happens if my property chain breaks?

Unfortunately, if you’re linked with a property chain and one purchase doesn’t go through, the whole chain behind it could suffer. When a property chain breaks, you will have to wait or look for another property.

If the property chain breaks at your purchase, if you act quickly, you may be able to stop it from breaking the entire chain. If you’re selling, you could contact the people planning to buy your property by contacting your estate agent; this way, you can inform them of the situation sooner rather than later.

Whether it’s something wrong on the seller’s level or on your level, there are still ways to prepare for a break in the property chain. For example, you could try and buy a property that isn’t in a chain or in a small chain, sell your property and rent temporarily or buy a new-build property, etc.

For more moving home mortgage advice in Sheffield, contact our expert mortgage advisors in Sheffield today.

How can a property chain break?

A property chain can break for many different reasons. It could happen at your’s, your seller’s or even your buyer’s level:

  • The buyer’s mortgage application was declined
  • A seller decides that they don’t want to sell their property
  • A buyer/seller loses their job or becomes ill
  • The property survey that was carried out on the property highlighted some major damages and structural issues

These are just a few examples, there are many more reasons. Depending on the length of the property chain that you’re in will depend on how drastically these situations impact your ability to move home.

How can I avoid a property chain?

It can be hard to avoid a property chain; especially if you’re buying a busy time of year or when the market is hot, for example, January.

Moreover, you could do your research and talk to your estate agent so that you know exactly what your position is during the application stage. Arranging your finances as early in the process as possible would be smart. The more that you are prepared for things that could wrong, the better.

If you manage to avoid a property chain (also known as ‘chain-free’) you should be able to continue straight through the moving home process. This is assuming that you provide evidence that you can afford a mortgage and provide a deposit for the property.

Thinking of moving home in Sheffield?

If you are buying and selling your home, let our moving home mortgage advisors in Sheffield help you through your process.

You can book your own mortgage appointment for free online. Get started today and we can help you get through the moving home process stress-free. We can’t wait to hear from you.

The Importance Of Having Your Mortgage Reviewed in Sheffield

Mortgage review advice in Sheffield

One of the biggest financial commitments in your life will be a mortgage, therefore, from the moment that you take one out, you must be aware of the things that come with getting one.

People tend to think that once you get a mortgage, you can forget about it and just keep paying it off one month at a time, however, this is not the case. When you take out a mortgage, you will be fixing yourself into a term and your term could be between 2 and 10 years (It’s usually 2-3 years).

Once this term is over, you will fall straight onto your lender’s standard variable rate of interest and it’s likely that this rate will be higher than your current one, therefore your mortgage payments will increase. This is why you should keep on top of your mortgage and make sure that you know when your term ends. It’s also why you should be getting your mortgage reviewed towards the end of every term.

You may be able to access a better rate or deal; you will never know unless you get your mortgage reviewed and find out.

What is a mortgage review?

It’s exactly what it sounds like!

To get one, you need to approach your mortgage broker in Sheffield, lender or building society and let them know that you want to re-evaluate your mortgage product and see whether you can access a better rate. From here, you will start your journey to remortgage in Sheffield.

Overall, the process works just like how your first mortgage process did. You will be asked to provide evidential documents to support your affordability, you are who you say that you are, etc. With this information, they’ll see what sort of products you can access.

Since you’ve been paying off your mortgage and have hopefully been keeping up to date with your payments, your credit score should be well above fair/good and maybe even excellent. A higher credit score can potentially open you up to competitive mortgage products.

Some of our applicants can’t access a better product than they’re already on. In this situation, you can maybe think about renewing your mortgage product with your lender. As a mortgage broker in Sheffield, we only charge for our services past the point where you move forward with your mortgage deal, not whilst searching for one. It’s completely up to you if you continue with us or not.

Why is a mortgage review important?

Going through the mortgage process again can be tiring, but would it be worth it if you ended saving money on your monthly mortgage payments? We think so…

Getting a mortgage review and evaluating your mortgage product could prove financially beneficial further down the line. If you manage to get a better rate, you could end up saving lots of money.

Taking a mortgage review at the end of every mortgage term would prevent you from slipping onto your lender’s standard variable rate of interest (SVR).

Standard variable rate (SVR)

Your lender’s SVR is likely to be much higher than your current rate. This is because lenders SVR is tracked from the Bank of England’s base rate plus their own percentage. If you end up on your lender’s SVR you can choose to either stay on it if you’re happy paying their rates or can take a mortgage review and try to access a better deal.

You can’t switch mortgage products mid-way through your fixed mortgage term without paying an ERC (early repayment charge), so you’ll have to wait until the term finishes. Even though you can’t switch right away, it can still be worth looking at what sort of deals that you can access to get an idea of what you could move onto after your mortgage term is over.

Remember that you are not required to stay with the same lender/remortgage in Sheffield, if you want to shop around elsewhere to find a better deal, you can do so.

Equity Mortgage Advice in Sheffield

Lots of equity in your home

Due to the constant rising in house prices, if you’re lucky enough to have built up equity within your home, you may be able to access more competitive mortgage deals.

Mortgage rates are based on loan to value ratios. By rule of thumb, the more equity you have, the lower the interest rates you will be able to access.  

There may also be some capital raising options available to you. If you are interested in this, please speak with an expert mortgage broker in Sheffield like us.

Little equity in your home

If you haven’t owned a home for long or your property hasn’t increased in value yet, there may still be money-saving options with your current mortgage lender. 

If you’ve kept up to date with your mortgage payments, you may find that you’ll be able to access product transfer deals.

The true cost of a mortgage deal

The mortgage deal that carries the lowest interest rate may not be the best deal. This is because these types of deals often come with high set-up/arrangement fees.

As a mortgage broker in Sheffield, we will consider all the costs that come with getting a mortgage and try to find a deal that saves you money in places that you didn’t think you could.

We will consider your personal and financial situation when it comes to trying to find you the perfect mortgage deal. And, we will also take your credit history, the property being mortgaged, valuation fees and any arrangement fees into account.

Get in touch for Remortgage Advice in Sheffield today.

Can I get a mortgage as a student?

Student mortgage advice in Sheffield

University is a place to enjoy some of the greatest things that come with adult life; for example, freedom and independence Although, University costs a lot of money, and sometimes it can be hard to see exactly what you’re putting your money into, especially when it comes to accommodation fees.

Student accommodation can be a hit or miss situation. You may get an amazing landlord in Sheffield that takes care of you and your housemates, regularly checking in and taking care of property repairs and damages. On the other hand, you could get a landlord who does the opposite and leaves you with something like a broken washing machine for 4 weeks!

When you’re raking out money for rent month on month and getting the minimal back, it can be hard to ignore the fact that you should be getting treat better. Why don’t you look at becoming your own landlord? This way, you will be in charge of things and manage your property your way.

This can be made possible through a student mortgage. Taking out a mortgage as a student may not only save you money in the short term, but also in the long run.

Why should I get a student mortgage?

Getting a student mortgage will allow you to save costs on your accommodation and will also give you an early opportunity to get yourself onto the property ladder. They are more popular amongst higher education students who plan to continue their education through to their masters/PhD.

If you’re not planning to live in the property in the future, you can always sell up when you’re ready to move on. You could even keep it as a buy to let in Sheffield to rent out to other students!

By the time that it comes to the end of your course, you should have built up a bit of equity within your home. You can withdraw this equity if you would like. Equity can be turned into cash, and you can spend it however you want, it’s your money after all. It could be anyway from a wedding to a new car. The more equity in your home, the more money you can withdraw.

There are lots of things you could do with your property in the future!

How can I get a student mortgage?

Student mortgages can sometimes be hard to obtain. The reason behind this is that you need to have funds in place to afford one, and as a student, that can be difficult.

As a mortgage broker in Sheffield, when we come across a student mortgage application, we have to ask the applicant a set of questions so that we can find out whether they qualify for one or not. Firstly, we will need to know if you have a deposit for the property. This can be something like a gifted deposit, a Lifetime ISA or even as simple as funds from a savings account.

Secondly, we need to know that you can actually afford a mortgage. Your mortgage advisor in Sheffield will measure your affordability right off the bat. You will need some sort of income to take out a student mortgage. Some lenders will accept a part-time job, whereas others will only accept a full-time job.

Showing reliability

Your lender needs to know that you’re a reliable applicant. You can show this in multiple different ways. Here are a few examples:

Increased deposit amount – Putting down a higher deposit would mean that the total amount that you borrow would decrease, hence also decreasing your mortgage payments.

Using government schemes – Using government-led schemes under the “Own Your Home” program, you may be able to access a larger deposit for your student mortgage. A few of the schemes included are the Help to Buy Equity Loan, Lifetime ISA and the Shared Ownership scheme; there are many more if you visit https://www.ownyourhome.gov.uk/all-schemes/.

Have an AIP ready – An agreement in principle can benefit your student mortgage application. It proves that a lender has already agreed to lend to you providing that you can supply documents to evidence your income, affordability, etc.

This is just naming a few. For further ways to appear more reliable during your student mortgage application, get in touch with our mortgage advisors in Sheffield today.

What type of property can I buy with a student mortgage?

Like most mortgage options, you have to meet certain requirements before getting the green light:

  • The property that you’re taking the mortgage out on has to be within a 10-mile radius of your University.
  • The property has to be 3-4 bedroom house.


With this in mind, you’ll also have to think about what you’re going to do with those spare rooms. To help you manage your money, the best idea could be to look into renting them out.

What happens if I can’t afford my payments?

Lenders will be aware of all of the risks that come with lending to a student. This is why they always take precautions.

When signing the papers for your student mortgage, you’ll have to declare a guarantor. This is someone who will cover your payments if you fail to pay them at any time. There are some limitations to who your guarantor can be:

  • They cannot be over 65 at the point of your application.
  • The guarantor must own a property in the UK.
  • They must live inside this property in the UK.


Lenders have to have a backup just in case anything happens. This situation is in the worst possible scenario of course.

For help achieving your student mortgage dreams and first time buyer mortgage advice in Sheffield, get in touch today. We can help you see whether you match the criteria for a student mortgage or not.

First time buyer mortgage advice in Sheffield

What Are The Main Reasons People Decide To Move House?

Moving Home Mortgage Advice in Sheffield

Moving home can be a stressful, time consuming and costly process, which begs why so many homeowners choose to do it? From lack of space to a new change of scenery, this article will explain the top reasons people decide relocating to Sheffield is the best option.

Bigger living space

We often foresee this with customers, as first time buyers in Sheffield usually go for a smaller property to start with, only for a situation to change down the line that leaves them needing a much bigger living space. 

An example of this is that they may start a family and require some extra room. That said, they might generally want a bigger home than they currently have.

Rather than moving home in Sheffield, some homeowners look to raise capital by taking out remortgage to fund home improvements, such as building an extension, conversion or a home office. 

An increasingly popular option, especially with growing families and could give that extra bit of space you need whilst retaining a place that no doubt has grown in sentiment over time.

People may also take out a remortgage for home improvements to raise the property’s value, just in case they ever look to create an opportunity for turning a significant profit from the sale.

Change of scenery

We hear that some homeowners wanted a change of scenery and were quite intrigued to try out completely different areas.

You’ll commonly find that this section of borrowers tends to be once again first time buyers who had a limited budget and stuck with a lower-end property for the time being due to slightly more reasonable house prices. 

It’s likely that these borrowers now have a higher income than they used to and want to live in a more affluent location.

Family & friends

Other customers tell us that they wanted to move to be closer to both their friends and family. This sort of situation comes up when couples start their family.

If both parents work, this would mean that childcare services are needed. But, seeing as many Private nurseries nowadays are seemingly expensive, parents reach out to relatives for help with childcare.

Speak to a Mortgage Advisor in Sheffield

If you are thinking of moving home in Sheffield, you will need to know roughly how much moving home will cost. Get in touch with a mortgage advisor in Sheffield, and they will help you calculate your maximum borrowing capacity. Giving you an estimated quote on what your monthly payments could be.

For those looking at remortgage, get in touch today and speak to an expert remortgage advisor in Sheffield.

Shared Ownership – What is it? How does it work?

Introduced off the back of the credit crunch in 2012, the Shared Ownership scheme gives first time buyers and home movers the opportunity to buy a share of and rent a property.

Shared Ownership Mortgage Advice in Sheffield

What is shared ownership?

Utilising the Shared Ownership scheme will allow you to take out a mortgage on/purchase a percentage of a property and then pay the remainder back on rent. The percentage that you take out will usually be between 10%-75%. Although, in some cases, you may be allowed to take out a 10% share.

As a result of taking out a mortgage in this fashion, you’ll be able to put down a smaller deposit. This makes your task of getting onto the property ladder a whole lot easier!

Perhaps partial homeownership is the route that you need to take.

How does the scheme work?

Since it’s likely that you’ll only be purchasing a 25%-75% share in the property, the minimum required deposit should be lower; although, this can still differ depending on your credit history.

You’ll be accessing Shared Ownership through the ways of a mortgage, meaning that you’ll only need to take out a mortgage on the percentage that you’re buying. For example, if you’re buying a share of 50% on a £250,000 house, you’ll only need to take out a £125,000 mortgage. Plus, rather than producing a deposit that’s based on the full property price, you’ll only have to supply a deposit based on the percentage that you’ve taken out; in this example, if you were required to put down 5% or more, you’d only have to supply £6,250.

After you’ve put down your deposit and your offer is accepted, you’ll start paying back your mortgage month on month; just like any other mortgage. As an additional cost, you’ll also be paying rent to the housing association. Your rent plus your mortgage payments shouldn’t be as expensive as had you taken out a 100% mortgage.

Costs and fees

There are lots of different costs to consider when taking out any type of mortgage. In terms of Shared Ownership costs, you will have the obvious set-up/arrangement fees and maybe some booking fees. Also, you are likely to receive stamp duty tax if your property is above the stamp duty threshold and you’ll have to consider legal solicitor fees too.

Costs will vary depending on the property that you’re buying. Factors such as deposit size, monthly payments, arrangement fees will differ from property to property.

How can I apply?

To qualify for Shared Ownership, you will have to meet certain requirements:

  • You have to be at least 18 years of age.
  • If you live outside of London, your combined household annual income must be less than £80,000. If you live in London, this is upped to less than £90,000.
  • You cannot own another property during your Shared Ownership mortgage application. You must either be a first time buyer in Sheffield or in the process of selling your current property.
  • If you can afford a house on the open market, you will not be able to access this scheme. It was designed to help struggling homebuyers.
  • You must prove that you are not in any kind of arrears, this includes mortgages and rent.
  • You’ll have have to provide evidence that supports a good, clean credit history. This means that you will struggle if you have a CCJ (county court judgement) associated to your name or have had previous credit problems.

This may seem like quite a lot, however, it’s only the same as most other Help to Buy schemes. Some requirements differ, but at the end of the day, the scheme was made for a specific target audience. For example, if you do have bad credit problems, there are different ways to go about getting a mortgage rather than trying to use the Shared Ownership scheme.

Speak to a Shared Ownership Mortgage Advisor in Sheffield

We have been working within the mortgage industry for over 20 years now and have successfully helped many applicants get through their Shared Ownership journey.

Shared Ownership sometimes comes under the umbrella of ‘Help to Buy’, so for Help to Buy mortgage advice in Sheffield, you should get in touch with our fantastic team.

We offer a free Shared Ownership mortgage consultation to all customers; take advantage of this 7 days a week! We hope to hear from you soon.

How a Mortgage Broker in Sheffield can take away the stress of Moving Home

Moving home has built up a reputation of being stressful and daunting, however, it isn’t like that at all!

With the help from a mortgage broker in Sheffield, your moving home journey can be made stress-free. It’s our job to handle the mortgage side of the process, trying to find you a great mortgage deal whilst you search for your dream home.

Whether you’re thinking about moving home, taking up property viewings or are ready to make an offer on a house, we can help you get your mortgage process started.

Why a Mortgage Broker in Sheffield?

How can a mortgage broker in Sheffield help? How can we help you through your moving home journey?

Taking care of the ‘stressful’ parts of the process

It’s our job to search through mortgage deals on your behalf. You won’t have to shop around for thousands of mortgage products, trying to find one that matches your financial situation and the property that you’re making an offer on… that’s our job!

We only need some documents from you to evidence your income, who are you etc. Then we can search for the perfect deal for you. If we find one that matches your personal and financial situation that comes with a competitive rate and you want to continue with it, we can get ready to submit your mortgage application for you.

Fast and friendly process

We have been in the mortgage industry for over 20 years now, we know what we are doing. If you’ve already a property that you want to make an offer on, we can quickly help you find a mortgage offer that matches your situation so that you can continue with your purchase.

Our mortgage advisors in Sheffield are experienced in finding a quick but competitive mortgage product. Once you’re in contact with our team, we’ll pass your straight onto your dedicated mortgage advisor so that they can arrange your free mortgage consultation and get some information from you.

We can also arrange an agreement in principle for you within 24-hours of your application. Potentially, this can aid your property offer as it shows that a lender is willing to let you borrow for them.

Or an easy-going process

You may be a first time buyer in Sheffield or moving home in Sheffield, and want your journey to completion to be a little slower, and that’s completely fine!

If you want a simple, easy-going process, your mortgage advisor can slow things down for you. Don’t be afraid of asking lots of questions and taking your time during the process. Your mortgage advisor in Sheffield will be open and honest with you at all times, they will tell you exactly what’s going during every step of the process.

Speak when it suits you

Our team work during out of office hours so that you can speak to us at a time that suits you best.

We want you to be able to communicate with us when you feel most comfortable. Whether this is early or late, we’ll be available. This doesn’t just apply to our customer care team, your mortgage advisor in Sheffield will be able to book an appointment during the same working hours.

It’s all about taking the stress out of the mortgage process. We feel that we can help take away the stress from the process if you can contact your mortgage advisor in Sheffield at a time that is best for you.

Mortgage Advice in Sheffield

Our superb mortgage advice team can help you through the whole moving home process – from start to finish.

We offer a free mortgage consultation to every single customer, no matter their mortgage situation, so feel free to get in touch today.

Remember, as a mortgage broker in Sheffield, it’s our job to take away the stress from the whole moving home process. We work 7 days to ensure this!

Buying a Property with Cash – Better than a Mortgage?

When buying a home, you can choose one of two options: to buy it upfront or take out a mortgage on the property and pay it off over a fixed term.

Both ways are costly, however, buying a house with cash is the obvious most expensive option. Paying upfront requires you to pay the price that’s on the tag, whereas, taking out a mortgage allows you to pay off the property over a long period of time.

Why should I buy with cash if I can?

If you have the funds in place to do so, buying a property with cash could be a great investment. Whether it’s to live in yourself or to use as a buy to let in Sheffield, it can put you ahead of people on the property ladder who have taken out a mortgage.

Reliability

9 times out of ten, when making an offer on a property, if you’re a cash buyer you’ll have an advantage over other applicants who are taking out a mortgage. One of the reasons is due to your reliability.

A property seller who is looking for a quick purchase will love a cash buyer. Having a cash offer eliminates the probability of getting caught up in the property chain. This is where a property is being sold to a buyer, however, they can’t move in yet as they’re still trying to sell their current home and sort out their mortgage. This can go on and on, ending in repeated homeowners struggling to move out as they’re waiting on their buyer to move out.

This shows your reliability. You don’t have to wait around for your buyer, they can proceed straight away. Also, you won’t have to pass any affordability checks as you already have the funds in place and you won’t need a valuation to be carried out on the property.

Easy and fast process

Everyone wants a quick and simple process when moving home in Sheffield. It’s more than likely that if you were to make a cash offer, you’ll see the process through within no time at all as opposed to having you taken out a mortgage.

You won’t have to take out a mortgage if you choose the cash route. However, as a mortgage broker in Sheffield, we can say that sometimes it’s just as quick to take the mortgage route. It’s our job to provide a fast and friendly service in Sheffield.

You don’t owe anthing

Taking out a mortgage is the same as taking out a loan. You’re committing to around 25+ years of potential mortgage payments. If you buy a property with cash, you won’t be making this commitment.

You also won’t receive any interest. Your mortgage payments may increase each month due to interest, whereas if you’re buying with cash this can never happen as you’ve already paid it all off.

Why should I get a mortgage and save my cash?

If you don’t have the funds in place to make a cash payment, you’ll have to take out a mortgage on the property you’re looking to buy.

Cheaper in the short term

Rather than using all of your life savings to purchase a property upfront, you could save money short term by taking out a mortgage instead. Usually, depending on your credit score, getting a mortgage will only require a minimum of a 5% deposit (5% of the property’s value).

A mortgage allows you to pay off your home in monthly payments. Monthly payments allow you to pay little back each month not the whole of it in one go.

Something wrong with house

If you’re looking at a property and the listing says “cash buyers only”, it’s likely that the property needs lots of repairs doing on it. If this is the case, you are unlikely to be able to get a mortgage on this property. You may be dodging a bullet if you are choosing a mortgage over cash here.

Even though it’s not required, we’d always recommend getting a property survey carried out just in case. This applies to both cash buyers and mortgage applicants.

A mortgage advisor in Sheffield by your side

Going into a cash purchase blind may put you at a slight disadvantage to someone who has a mortgage advisor in Sheffield by their side. Things are as simple as possible when you have your own mortgage advisor in Sheffield.

As a mortgage broker in Sheffield, it’s our job to deliver a fast and friendly mortgage advice service. Get in touch today and we can help you through the moving home process. We can help you make an offer on a property, arrange an AIP within 24-hours and perform a free affordability assessment on you.

Get in touch today for a free consultation.

Fixed-Rate Mortgages | Mortgage Advice in Sheffield

Fixed-rate Mortgage Advice in Sheffield

What is a fixed-rate mortgage?

Generally, you’ll find that the longer that you fix your mortgage for, the higher your interest rate is going to be. This is why you should look for a shorter fixed term, so that you can access lower rates.

Even though short term fixes could eventually save you money, your mortgage will need to be regularly reviewed and renewed more frequently. When it comes to your remortgage in Sheffield, it can depend on how the economy is performing and what sort of deals of available to what sort of rate you’ll pay on your new product.

Sometimes, you may end up paying more than your previous months’ mortgage payments, and then sometimes you may end up paying less.

What is a Fixed-Rate Mortgage | MoneymanTV

Medium & long term fixed mortgages

If you would prefer to fix your rate for a longer period, you can take out a medium to long term fixed mortgage if you want to.

The most popular fixed rates are 5-year terms. These deals are sort of in the middle, not too short nor too long. They also add the security of constant monthly payments for the foreseeable future.

The only negative to fixing into a 5-year term is that your overall payments may be more than if you were to had fixed a 2-year product and then a 3-year product, but not by much.

If you wanted to go even further and try and secure a 7 to 10-year fixed-rate product, you may need to try and access specialist lenders as there are a limited number of these products on the market. They aren’t the most popular of choices amongst home buyers and owners, due to the length of the term. You won’t get much flexibility with a mortgage in the long term; they may also come with expensive setup fees and rates.

Fees to consider

In addition to interest rates and monthly mortgage payments, you’ll also have to consider booking and arrangement fees. A booking fee will be charged upfront and an arrangement fee will be charged at completion. Sometimes these fees can be incorporated into your mortgage payments, however, this can increase the total amount paid in the end.

If you’ve got the funds in place to do so, you may want to pay off a chunk of your mortgage early. Usually, people do this after they’ve received a large lump sum of money for something.

If you do this, you may be charged with an ERC or otherwise known as an early repayment charge. You are tied into a deal for a set period of time, so jumping out of the deal early will cost you. You can continue with repaying early if you are okay with paying the ERC.

An ERC is calculated as a percentage of the amount that is still owed on the whole mortgage, not your term. For example, if you have £200,000 left on your mortgage, you may get an ERC of 2% which is £4,000. If a current deal is available on the market that you want to access, it may benefit you more to take the ERC and remortgage early.

Remortgage Advice in Sheffield

As a mortgage broker in Sheffield, we would recommend not chasing after ‘headline’ deals. You need to remember that the deals with the lowest rates come with the highest arrangement/setup fees.

For remortgage advice in Sheffield, please contact us today. We have helped 1000s of customers fix excellent mortgage rates in the past, and you could be next!

Get in touch for a free mortgage review today.

What is a property survey and which one should I choose?

Property Survey Mortgage Advice in Sheffield

Once you’ve had your offer accepted on a property, you are going to move onto the next stage of the mortgage process… getting the property surveyed.

A property survey is carried out to determine whether the true value of a home correlates to the amount that a buyer has offered for it. The survey will also show the overall condition of a property, highlighting defects and damages (if there is any).

Types of property survey

There are lots of different types of property surveys, however, three stand out as the most popular amongst the crowd:

  • Mortgage Valuation
  • Homebuyer’s Report
  • Full Structural Survey

A property survey may be carried out free of charge depending on the lender that you use. If you are offered a free survey, you may be limited to what you can see on the report, or sometimes the lender may not give you a copy.

Each survey differs, some will provide great detail and tell you everything that you need to know about your property, whereas others will not. Usually, the more that you pay for a survey, the more in-depth the report will be.

If your survey shows something about the property that you weren’t told about, by law you are allowed to approach the seller and work out a price reduction is necessary.

Mortgage Valuation

A Mortgage Valuation is the simplest property survey and usually the cheapest. They are carried out to find out the true value of a property.

Before committing to lending to you, your lender will need to find out whether the property’s value matches how much you are set to borrow from them. If you put in an offer above the property’s value and it gets accepted by your seller, it’s good for them but not for your lender, therefore it’s unlikely that your lender will accept your application. This is because they will have to lend more than the property is actually worth; this is called a down valuation. If you can make up the difference between what you said you’d pay and the mortgage amount, you’ll be able to go ahead with your lender, although, if you can’t then the lender will pull out of the deal.

Unfortunately, a Mortgage Valuation survey will not point out minor damages or repairs, it will just show clear structural defects that will require attention as soon as possible. If you want a report that goes further in-depth, you will have to pay more to upgrade to a different survey.

Homebuyers Report

A Homebuyers Report focuses on the safety of the property and how safe it is to live inside of it. The report will include problems such as mould, dampness or something that does not pass the current building laws.

This survey will be carried out by an expert. They will thoroughly examine the property from top to bottom so that they know exactly how safe it is to live in.

Full Structural Survey

As a Mortgage Broker in Sheffield, we usually recommend a Full Structural Survey, especially to those who are purchasing an older building. You sometimes need to be aware of everything.

This survey is the most expensive of the three and usually them all. This is because your surveyor will look at the whole property, often spending a whole day to determine its worth and to find out what’s wrong with it.

If the purchase goes through and you now know everything about the property, you may have saved yourself a lot of money in the long run as if you didn’t know about the damages, you couldn’t act on them meaning that they could worsen overtime.

Do I need to get a survey on a new build?

New builds usually requires a different type of survey called a snagging survey. This will highlight both minor and major issues. It could be from a missing door hinge to cracks in the ceiling.

If the new build has already been built, it would be wise to have a property survey carried out on it before you move into it. Just because the property is a new build doesn’t mean that there is nothing wrong with it. As a Mortgage Broker in Sheffield, we would always advise that you have some sort of survey carried out on a property.

Mortgage Advice in Sheffield

Whether you are a first time buyer in Sheffield or moving home in Sheffield, if you are struggling to choose the right property survey or just need general mortgage advice, feel free to get in touch with our team. Sometimes, it can be difficult to get the ball rolling when it comes to moving home, so make sure to get in touch if you need any help!

You can obtain the services of a surveyor to carry out a Homebuyers report or building survey through the Royal Institution of Chartered Surveyors.

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