So, you are now ready to take a further step up the property ladder and further your mortgage goals. Whether you are a first time buyer in Sheffield, new to the experience or a home mover in Sheffield looking to sell your current home and live somewhere else, you will still need to start getting prepared for your mortgage.
Here are some expert tips from an open and honest mortgage broker in Sheffield:
As an experienced and well trusted mortgage broker in Sheffield, we always recommend taking advantage of mortgage advice as early on in the mortgage process as you can. This will allow you to get an idea of how much you could possibly borrow and what your estimated monthly costs may be.
You need to prioritise getting an up-to-date credit report, as you will need to know what your current credit score is and what you could potentially do to improve it, if necessary. The better your credit score is, the higher chance you have of your mortgage application being accepted.
There are a lot of different ways that you could potentially improve your credit score in Sheffield and to the surprise of many, it isn’t always too difficult to do so. In some cases, it is even possible to obtain a mortgage deal despite having a low credit score, though this ultimately depends on your lender and the way they look at your circumstances.
By ensuring you have both a mortgage advisor in Sheffield by your side and an up-to-date credit report to hand, you could increase your chances of being accepted for a mortgage in the future. A trusted mortgage advisor in Sheffield will be able to work through everything on your behalf, guiding you throughout the process.
Here at Sheffieldmoneyman, we have the ability to obtain a fully credit-checked agreement in principle for you, something we can turn around within 24 hours of your initial appointment.
A dedicated mortgage advisor in Sheffield will help you to get prepared for everything prior to submitting your mortgage application.
In doing this, your mortgage lender will want to see some proof of identification, so that you can prove you are who you say you are, along with where you are living and the amount that you earn from your job.
In knowing this, you can now prepare for all the necessary documents you’ll need. These are as follows;
In terms of proving who you are you’ll need to produce some photo ID. Acceptable types of ID include a driving license or valid passport.
In addition to the above, you’ll need to prove where you live. You’ll need to produce a utility bill or original bank statement dated within the last 3 months.
Lenders will always have a keen interest in what your spending habits are, compared to anything else.
They need to be absolutely sure that you will have the ability to regularly maintain your monthly mortgage payments on top of everything else you have going out. They will analyse your bank statements very carefully and take everything into consideration.
Lenders aren’t too fond of seeing gambling on your bank statements. It’s something we often see catching people out, as they haven’t realised that it can harm your chances of obtaining a mortgage down the line. They also don’t like seeing customers go over their overdraft limit, as this basically means your spending money that isn’t there.
It’s reasons like this why we always advise that you be careful and make sure that your statements are going to appeal to a mortgage lender, rather than put them off from lending to you.
You will have to prove you have the funds in place for the deposit and also be able to evidence this for anti-money laundering purposes. Try not to move money around your various accounts too much as it will make evidencing the audit trail a more complex process than it needs to be.
Lenders take a preference to applicants who are able to evidence that they have been saving for their deposit. It shows that you have a good understanding of how to put money aside every month and not spend money you don’t have. You’ll also need to factor in any large credits into your accounts.
Quite often we find that the money for a deposit has been gifted by family members. These funds will also need to be evidenced, with the “donor” being required to sign a letter for the lender. This will be to confirm that the funds are strictly a gift and not something they will be needing back from the mortgage applicant.
In terms of affordability, the most important thing is to be able to prove your income. If you are employed this tends to be done by providing the lender with your last 3 months’ payslips and most recent P60. Lenders often take into account regular overtime, commission, shift allowance and bonus.
Make sure that you do plenty of research ahead of time. Preparing for your mortgage and making a note of your anticipated outgoings after you move house puts you in a great position prior to starting the application process.
You can work out an estimate of how much the council tax and utility bills will be. In addition to that, you can also work out your regular expenditures, such as any food and drink you will be buying. This will demonstrate how much disposable income you have available to pay your mortgage from.
You need to accommodate lots of time to prepare for your mortgage application. It can sometimes be a lot quicker and much easier to approach a mortgage broker in Sheffield who can take the bulk of the process and do it on your behalf.
A mortgage advisor in Sheffield will be able to work out how much everything is potentially going to cost you and guide you through the entire mortgage process, doing their best to work hard and try to secure you a competitive mortgage deal.
Getting ahead and planning early will always impress your mortgage lender. Let an expert mortgage broker in Sheffield help you out. Get in touch to book your free mortgage appointment with a trusted mortgage advisor in Sheffield.
The higher that your credit score is, the higher the likelihood that your application will be accepted by the mortgage lender. This is different to the likelihood of someone with a poor credit score finding the same success. A mortgage lender will study your application carefully in order to make sure you can definitely afford their mortgage.
That being said, there are still no guarantees when it comes to mortgages, even if your credit score is pretty high. Each mortgage lender will have their own specific criteria that you need to match in order to obtain their deal, and it is unlikely that you will meet all of those.
Each lenders criteria could be vastly different to another and they have developed their own unique ways of figuring out whether you match what they’re looking for or not. In some cases, you might actually find yourself matching up with the majority of them and in some cases, maybe you only match up with a few of them.
It is the job of your dedicated mortgage advisor in Sheffield to work alongside you and find the right lender who is offering the best deal for your personal circumstances, with criteria that you can meet. Whether your advisor is from your bank, the lender or a trusted mortgage broker in Sheffield like us, they will match you up to your mortgage needs as best they can.
Getting in touch with a mortgage broker in Sheffield will be of a great benefit to you, as our experienced mortgage advisors will work their hardest to find you the best deal for your personal situation, always having your best interests at heart.
You will be updated on a regular basis with exactly what is going on, so you’re not left stressed and confused about the process. It’s one of our many aims during your mortgage journey to make sure everything goes as smoothly and stress-free as it possibly can.
Whether you are a First Time Buyer in Sheffield, planning on Moving Home in Sheffield or Self Employed, we will do our best to provide you with helpful tips and tricks to help you improve your credit score and eventually, secure an amazing mortgage that you’ll be thrilled to be walking away with.
There are a variety of different credit reference agencies in Sheffield you could go with, though the most popular ones are Experian and Equifax. Before you rush into anything, make sure that you do some research into each agency as it is possible that some of them may be holding incorrect data and it could help you identify any discrepancies.
We personally would suggest using a platform called Check My File, as this collates data from all the major ones like the aforementioned two, giving you a wider overview of how your credit file is looking. In signing up, you will receive a free 30-day trial, followed by a monthly fee of £14.99. Your account can be cancelled at any time prior to the end of the trial should you see fit.
There are lots of different things you can do to improve your credit score. Here we have some for you to have a look at:
You will find that having multiple credit searches taken out against you could actually end up having a negative effect on your credit score in the long run. Even the use of price comparison websites is a factor that could harm your credit score.
If you are planning to apply for a mortgage, we strongly suggest that you avoid applying for any other credit in the meantime. Paying your credit back is a good thing for your score in the long run, providing that you can show lenders that you are able to maintain your monthly repayments.
That being said, borrowing during a mortgage application is something that could make the lender think that you cannot afford the deposit and are relying on the credit to give you a financial boost.
A great yet very simple way for you to get a boost to your credit score, is to register yourself for the electoral roll. It can demonstrate stability and this is something that the lenders like to see. You must make sure that your name is spelled correctly, and you must include your current registered address, not your previous one.
If you are not registered on the voters’ roll, you should definitely sign up for it. It is very easy to do online and it is something that could contribute well to improving your credit score.
Maxing out your card each month is something else that can actually reduce your credit score. The lender will prefer to see that you are using a credit card and paying off the balance in full each month, as this will show that you are good with your money management.
If a lender sees that you are exceeding credit card limits or overdrafts,it might give them the impression that you don’t take your finances seriously. This once again could drastically harm your chances of getting accepted for a mortgage.
Sometimes, if you have forgotten to tell a previous credit provider that you’ve moved into a new property, it can come across like you are actually living in multiple properties at the same time. Lenders don’t like to see this so you must make sure that you are on top of your address history so that it displays correctly on your credit report.
If you have a family member or ex-partner financially linked to you, this could be affecting your score without you even being aware of it. If the account is still live, then you won’t be able to get the financial association removed. If you want to remove any of these links, you should absolutely get in touch with the credit reference agencies and make a request.
Applicants see credit scoring as an unfair way to assess a mortgage application. Your mortgage lender would disagree with that, as at the end of the day, they are in the business of making money and they need to be sure you will be able to keep up your payments. It’s also much cheaper for them to operate through a computer-generated credit scoring system, as this keeps the process consistent and efficient.
Send an up-to-date copy of your credit report to your dedicated mortgage advisor in Sheffield ahead of time to increase your chances of being accepted the first time. The more your in-the-know your advisor is regarding your finances, the better it will be.
Also, there are still some lenders that prefer to operate the way companies used to and will manually assess your application. They will still have rules that they stick by regarding the number of defaults and CCJs that they will allow customers to have.
It’s unfortunate but true, that many people, to a greater or lesser extent, are in debt at some point throughout their lives. Sometimes due to your own personal situation, debt can spiral out of control. When you reach this point in life, it can feel like there’s no hope, especially once you have paid all your bills at the start of the month, because this can leave you with little or no disposable income left.
When this happens, we find that most applicants choose to go down the route of a debt consolidation remortgage. As an experienced and knowledgeable Mortgage Broker in Sheffield, we have opted to explore this case study on debt consolidation.
Amber had been dealt a rough hand of cards, going through a divorce and her children moving out to start their own journey in life. Over time, her debt built up with legal bills from the divorce and over the years they slowly increased. She was now having to live on one income with unreliable maintenance from her ex-partner. Her daughter then became pregnant quite early on into adulthood, and as any loving parent would, she tried to help her daughter out with her finances, even though she couldn’t really afford it herself.
Luckily by this point, Amber had paid her mortgage off, so she had the potential to borrow against her home as a asset. Her take-home pay was £1100 per month, and her credit commitments were taking up the majority of this amount.
She had not missed any of her monthly payments on her credit commitments, but she had no emergency fund. Amber’s credit score wasn’t too bad, but because of her past, she was no longer able to obtain new zero% credit cards to transfer her balances. She was recommended to me to see if there were any options available to improve the quality of her financial and in turn, personal life.
When I met Amber, she was feeling pretty low. She had cut back on all of her luxury spending, and it was evident that she was desperate to take ownership of her financial situation before it got completely out of hand.
We explored the possibility of a personal loan, but the debts had gotten too high for that. Amber had no family members with a means or willingness to help and downsizing was not an option she could take. We agreed the right way forward would be to remortgage the house, to try pay off these debts and reduce her regular outgoings.
We managed to find a lender that could meet Amber’s requirements. Given her low income, finding a lender who would let her borrow enough was quite a difficult task. We managed to get her an agreement in principle, but regrettably, when we submitted the formal mortgage application, she found herself being declined.
The reason the case was declined was that the Underwriter who assessed the situation felt that Amber had been using cards to pay off other cards, followed by not closing down the cards. When she had transferred balances, there was a high risk that she should re-offend and rack up debts once again.
Amber was, to put it bluntly, utterly devastated. She understood the concerns, but in her eyes, she had accepted she had a problem. By getting in touch with us, Amber felt she had taken a positive step to sorting her financial life out, making her a minimal risk. The loan to value was under 40%, she had never missed any payments, and if the remortgage was successful, she could be a whopping £500pm better off.
Whilst the above was indeed correct, a lot of clients don’t always appreciate that taking a property into possession is the last thing a lender wants or needs to do. This process reflects poorly on the numbers they are required to report each year, and even more to that point, in the event of repossession, they have the stress of securing the property, insuring it, marketing it, selling it, and paying the surplus of equity (if any) back to the previous owner.
With this in mind, if there is reasonable doubt, then an Underwriter has the discretion to decline an application, even if the case technically is within their published lending criteria.
We pride ourselves on getting our recommendation right the first time, though we have to hold our hands up on this one and say that it didn’t quite work out the way we would’ve liked, due to the Underwriter’s adverse comments at the full application stage. We knew with our knowledge and experience as a mortgage broker in Sheffield, that this remortgage wasn’t as risky as the lender had made out. It was almost certainly going to be the right outcome for her.
Amber perhaps felt like she was ready to call it quits. Still, we went back to the drawing board to find a different lender who would accept her. Sure enough, we found a suitable candidate. Now armed with the information we had from the previous lender, we were able to provide better supporting comments this time around. Thankfully this time, it was successful.
Amber didn’t take this for granted and understood the potential downsides. She has now secured debt that was previously unsecured, but overall may end up paying back more interest, depending on how quickly she can get the mortgage paid off.
The good news, is that in the short term this has worked wonders for her. She now has had the burden of debt relieved from her shoulders, an improved credit score, and she can save a little money for herself each month.
The savings we were able to help her make amounted to over 50% of her net take-home pay monthly. Upon completion of the remortgage, her life was changed. Amber destroyed all of her credit cards besides one to use in emergencies only. Now she has now got her financial life back on the right path.
If you are like Amber, struggling with accumulated debt, but are a homeowner with equity, please do get in touch. We’ll put you through to a mortgage advisor in Sheffield and see what we can do to help. We would rather that you contact us before the situation gets out of hand, as the earlier you take back control of your finances the better you will feel about things. We offer debt consolidation Remortgage Advice in Sheffield & surrounding areas along with a free initial mortgage consultation.
Once you have passed the necessary exams and have achieved your goal of becoming a newly qualified teacher, it’s time to find yourself a teaching position and get started in the classroom. You may find though, that if you aren’t close enough to that particular school, you may need to look at Moving House in Sheffield.
What is about to follow, is a stressful stretch of time that may feel, even if only a month or so, like it goes on forever. You’ll be looking for a place to move and balancing the struggle of homeownership whilst getting comfortable in your newfound role as a teacher. You are not alone in this situation though, as we have helped many customers with this in the past.
You may find it difficult trying to find a Lender willing to offer a mortgage to newly qualified teachers. This is because of reasons such as having no work history, or being on a temporary contract. Even though this is the case, do not worry, as it is still possible to obtain a mortgage as a newly qualified teacher.
On occasion, some lenders will offer reasonable and deals with those working in this particular sector. The key to this is finding the right lender, which is usually the hard part; this is where our dedicated mortgage advice team in Sheffield can help search thousands of deals to find you the most appropriate mortgage deals and rates.
The different types of mortgage available for NQTs can include:
Here are some of the critical things that can get considered:
Our loyal, hardworking and experienced Mortgage Advisors in Sheffield know lending criteria like the back of their hand; they have years of experience in helping people with their mortgage situations. You’ll find there are many benefits to using a trusted Mortgage Broker in Sheffield.
To find out your options, Get in Touch and our team will take some details from you, to find out whether or not you can get a mortgage suitable to your personal circumstances.
Nowadays, a lot more people are paying closer attention to their credit rating. Consumers are now a lot more aware of credit scoring, and we find that lots of first-time customers who get in touch, have already looked at their credit report online.
When speaking to customers, we often find that we get asked if we will be doing a credit search on them, as they know that too many searches can have a negative effect on their credit score. Lenders always run credit checks but we will ask the customer for their permission first, before doing so.
The purpose of a hard credit search is to analyse your credit report in-depth. Any financial institution carrying out a hard credit search should ask your permission to do so. The positive of being hard searched is that the lender is looking at your situation quite closely, so if you pass the credit score then there’s a high chance that your application will be successful.
If for some reason you cannot provide satisfactory documentation to backup the information you have disclosed or you have provided false details, then this might not be the case. Otherwise, it is likely.
The main negative about a hard search though is that it leaves a credit footprint. This means that any lender can see you have had a search carried out. Whilst at first this isn’t a bad thing, if you have several footprints registered in a short period of time, it could look like you’re applying for lots of credit at once.
The footprint does not provide a record of whether your application was successful or not, but lenders can often assume that if you you have had multiple, you must have also been declined for the previous one. Logically, why else would you be getting another one done?
The occasional hard footprint on your record isn’t too bad, so there’s no need to worry too much about this, especially if you know you have a good score. Just be wary about how many you have taken out.
A soft credit search is a much lighter approach to looking at your financial situation. This type of search are often carried out on price comparison websites to give you an idea of what products might be available to you. They can also be used to verify your identity.
Some mortgage lenders are now opting to use this type of search, as whilst it shows less information than a hard search, if you already have an Agreement in Principle alongside this, it can actually show the lender you’re in a much better position than others.
The good news is that these soft searches don’t leave a footprint on your credit file, meaning other banks and institutions can’t see that you have had one. You can then apply for an agreement in principle or for a mortgage, without it damaging your credit score, whether it is successful or not.
If you are in the market to make an offer on a potential new home, it is a good idea to have your mortgage Agreement in Principle in place prior to contacting the estate agent. By doing this, you’ll put yourself in the best possible position for obtaining a mortgage down the line. Having the Agreement in Principle can also at times put the agent off trying to “cross-sell” their own in-house mortgage services to you if you don’t want or need them.
You may be a First Time Buyer in Sheffield or you might be thinking of Moving Home in Sheffield and are seeking expert mortgage advice. If so, we think that you may benefit from our dedicated mortgage services and speaking to a mortgage advisor in Sheffield. Get in Touch for a free initial mortgage consultation.
Have you ever experienced the process of buying a home? Well, it is a very complicated, long and hard task, if we’re being honest. It is also very expensive. The costs are way too high and they increase even more when you are selling a house and buying at the same time. If you are a First Time Buyer in Sheffield and want Mortgage Advice in Sheffield, this guide will help you. Let’s take a look at some of the costs of buying a home that you need to know about:
The only time you will require an estate agent is when you want to sell a property. The fees of the estate agents differ from an agent to another. The fee of an estate agent is not cheap and the ones that can be hired for a low rate are based online so they do not have their own established offices.
If you don’t care about a high fee and you want a perfect service, then you should go for a local estate agent that has an office so that you can get more of a personalised service. However, this can cost you around 1 to 2% of your overall selling price. But if you can afford it, then it will be very beneficial.
The estate agents fee is mostly negotiable, especially in the “seller’s markets”. This is when many agents are competing to get instructions from you because there are not many houses left on the market for them to deal around with. So, if you are a Moving Home in Sheffield, consider the estate agency fees wisely.
If you are a First Time Buyer in Sheffield, you should know that if before you take out a mortgage, the lender will need to know that what you are paying is actually the worth of the property. Most of the lenders will offer this service for free but they might not share with you a copy of their reports then.
If your lender is not offering a free valuation service, then you’re going to have to fork out more money to pay for one. This fee can be as high as a few hundred pounds, which can be way above budget for many people. If you want a more detailed and informative report, it’s most likely that you’ll have to pay double the fee. Believe it or not, there is even a top of the range option which costs a big four-figure sum!
If you have a Mortgage Advisor in Sheffield, they can explain what these different types and ranges of surveys consist of so that you’ll be able to make a decision that will be best for you.
Depending on the condition that the house is in, you may have to upgrade the survey accordingly so that you get all information you need in the report. A good survey is very expensive, but at the same time it can provide important information about the property. If you end up buying a property without getting it checked, you could end up paying a lot more for the repairs you’ll have to deal with in the future.
The general rule of thumb is that the mortgages that have the lowest minimum interest rates are the ones that come with the highest fees. Fees required to set up a mortgage can actually range from zero to more than a few thousand pounds! If it’s an option, you may want to add your lender’s arrangement fee to your mortgage.
Your Mortgage Advisor in Sheffield will always aim to recommend the cheapest product that will meet your needs perfectly without any issues. They will also be able to calculate your total mortgage amount that will be required over a term.
Here’s a top tip: if you are borrowing a higher amount, you are going to want to try and keep the interest rate as low as possible.
If you are starting the process of buying a home in Sheffield, you will need to have a solicitor as well so that all of the legal work can be taken care of. For example, the legal aspects include who owns the property, who’s selling it and so on. Without a solicitor, people can sometimes get caught in illegal issues as well. So, you need to have one to successfully carry out your moving home journey.
Solicitor fees vary, some may appear quite expensive and this is because their quotes include the VAT as well. Though remember that not all solicitors are on “panel” for all lenders, so you need to be careful and choose the right one for your needs. Once again, your Mortgage Advisor in Sheffield will be able to help you make the right decision in this regard as well.
There are purchases that will be subject to Stamp Duty. Stamp Duty is a tax that you pay to the government when you are buying a house. Often, First Time Buyers in Sheffield can get a bit confused about this fee. The rules regarding which purchases will have this tax change frequently so you can check it here: https://www.gov.uk/stamp-duty-land-tax
If you are a First Time Buyer in Sheffield who wants mortgage advice, you should also know about mortgage broker fees. Almost every mortgage broker will charge some sort of fee for their services and the amount that you will have to pay will mostly depend on how much the lender is paying the broker for the work that they will be doing on their behalf.
A lot of the Mortgage Brokers in Sheffield will only charge you a fee you if they are able to get a formal mortgage offer for you. You better check the online reviews about your chosen Mortgage Broker in Sheffield before you hire them.
You need to know about the removal fees too. There are lots of people who hire a van and move themselves, however, we advise against this idea. Removal companies will charge you more money, but their service is worth the money. They will make your moving day a lot less stressful in many ways.
So, these are the main costs of buying a home in Sheffield. If you are a First Time Buyer and are looking for Mortgage Advice in Sheffield, get in touch with us and we will help you get everything done in the simplest and the most effective manner!
Buying a house is a very complicated and tough task, however, if the right steps are taken, the process could be completed smoothly with ease.
Mortgage Protection Insurance a term used to encompass various types of cover. They were designed to protect borrowers from events that could severely impact their ability to maintain mortgage payments.
However, there are different variations, but when connected to a mortgage, they are all there. To help provide peace of mind and usually fall into the following categories:
As a rule, if the policyholder dies within the term. Then the sum assured should be enough to pay off the outstanding mortgage balance. They are ensuring borrower’s dependents left with no debt. They might not otherwise be able to manage.
Our advisors can run through all the different types of life cover and recommend the most suitable plan for you.
Critical Illness Insurance works similarly to Life Assurance. In that, it can usually taker a specific term of years. That can have different options, such as level/increase. They got designed to pay out a lump sum and, like Life cover, for borrowers. It typically has taken on a decreasing term basis in line with the reduction of your mortgage balance.
The key is that the benefit gets paid if you fall victim. To one of several specified critical illnesses and pays out. Whatever the long-term prognosis of that illness. The type of illnesses covered vary from company to company. That’s why this type of insurance cannot be solely price-driven, and we high;y recommend seeking advice.
In practice, many companies will offer Life and Critical Illness Critical cover. As a combined policy and would usually payout on the “first event.” For example, whatever happens first – either death or a severe illness – the payout is made. They can also get written on a single or joint life basis
Income Protection pays out a monthly amount designed to replace your wages in the event of you being unfit to work. Unlike Critical Illness cover, there are no restrictions on the illnesses or injuries covered. The only factor is whether they make you unsuitable to work. There are, however, restrictions on how much you can cover and how quickly benefits would start to get paid.
Like Life and Critical Illness Cover. These policies are underwritten based on your health and lifestyle at the time you apply. All income protection policies got written on a single life basis.
Probably the least common of the mortgage protection type policies but can often be valuable. Particularly for those with young families. These plans can get taken to cover Life and Critical Illness. They get underwritten on an application in the same way as mentioned above.
Rather than pay out a lump sum, the cover would pay an annual or monthly income for the remainder of the term of the plan. Thus, it can replace the income of the primary breadwinner for several years. Dependent upon a particular client’s circumstances. It can usually get written on a level or basis, or an index-linked basis designed to keep up with inflation.
There’s an adage that says you can never have too much insurance. Indeed, many people have one or more of the different types of policy. However, it would be wrong to think of Mortgage Protection Insurance as just an “either/or” choice. However, in the real world, affordability plays a massive part. So while it would be fantastic to cover yourself for every potential opportunity, our Mortgage Advisor in Sheffield will sit down with you and tailor the type of cover—the most suitable combination to your family’s priority and budget.