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Have you ever wondered how much the costs of buying a home in Sheffield are? If you are a First Time Buyer in Sheffield, there is a list of fees to consider when buying a new home, including the fees and your deposit.
Make sure you have saved plenty to cover all the upfront costs. 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 one agent to another. The fee of an estate agent may not be cheap and the ones that can be hired for a low rate are online-based because they don’t have their own established offices.
If you can afford it and don’t mind paying a high fee, then you should go for a local estate agent that has an office as they can provide you with a personalised service. However, this can cost you around 1 to 2% of your overall selling price.
The estate agent’s fee might be up for negotiating, 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.
First Time Buyer in Sheffield like yourself, will be made aware that before you take out a mortgage, the lender will need to know that what you are paying is actually the worth of the property. Some lenders might will offer this service for free but they might not share with you a copy of their reports.
If your lender is not offering a free valuation service, then you’re going to have to pay a fee. 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 an even higher fee.
Here at Sheffieldmoneyman, our Mortgage Advisor in Sheffield will explain the different types and ranges of surveys consist of so that you’ll be able to make a decision that will be the most suitable for your current circumstances.
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 the 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.
You might be a first time buyer in Sheffield who are looking to take that initial step on the property ladder or looking to move into a different property through moving home in Sheffield, or your mortgage term is coming to an end so are looking to remortgage in Sheffield. Either way, you’ll quickly find that there are a lot of options available for you when it comes to taking out your mortgage.
Below, we have put together an extensive list that highlights the most popular types of mortgages out there to customers on the mortgage market.
If you are interested in any of the mortgage options mentioned below and are looking for more information, then do get in touch as we will be able to connect you with a knowledgeable mortgage advisor for expert, fast & friendly mortgage advice in Sheffield & surrounding areas.
This type of mortgage means that your monthly mortgage payments will stay the same throughout the duration of your mortgage term.
You have the choice in the duration you want to fix your payments. It’s common for people to choose a fixed term of around 2,3 or 5 years or longer.
The benefit of this option is that your outgoings will probably be the biggest one in your finances, regardless of what happens with inflation, the interest rates, or the nationwide economy.
A tracker mortgage will mean you will have a mortgage interest rate that usually reflects the Bank of England’s base rate.
Because of this, the lender nor the mortgage lender will set the rate and it will fluctuate when the base rate does. For example, if the base rate goes up, your interest goes up. Therefore, if it goes down, yours will go down too which obviously would be beneficial to you.
It will require you to pay at a percentage that is higher than the Bank of England base rate. For example, if the base is 1% and you are tracking at 1% above the base rate, this will result in you paying back your interest at a rate of 2%.
A repayment mortgage will involve you paying back a combination of both the interest and capital each month. This is the mortgage people looking to buy a home usually go for.
If you have been able to keep your payments going for the mortgage term duration, you will be guaranteed to have paid it off in full and achieve the goal of owning your own home by the end of it.
This option can be seen across the industry and wider world as the most risk-free way to pay your capital back to the mortgage lender. When you begin your term, the amount you’ll be paying will be mostly the interest with your balance reducing at a slower rate. This is particularly the case if your term is 25,30 or 35 years.
Within the last ten years or so of your mortgage, the process speeds up. This means you will be paying back more capital than interest, with the balance reducing at a far quicker rate.
As a Mortgage Broker in Sheffield, we do find many buy to let mortgages being set up frequently on an interest-only basis ( this option does benefit many landlords), it is progressively more difficult these days to obtain a residential property on an interest-only mortgage.
This is due to the process because when you reach the end of your term, you are still required to pay the full mortgage amount to pay off all in one go, with no additional income to fund the amount you’re required to pay.
With this in mind, there a range of unique circumstances where this can be an appropriate route for a customer to go down such as downsizing when you are older or if you are in a situation in which you have other investments you are able to use to pay back the capital.
When it comes to offering these products, it’s common to find that lenders can be incredibly strict. Furthermore, the loan to values usually is much lower than they were in previous years.
An offset mortgage is where your mortgage lender will create a savings account that will work simultaneously with your mortgage account.
To put this in an example, if you had a mortgage balance of £100,000 and you deposit £20,000 into your savings account, you will be required to only pay interest on the difference between those figures which in this case would result in £80,000.
This option can be a very efficient way of controlling your finances, especially if you won’t be paying higher rates of tax.
There are many different types of mortgages available, and most of them are entirely different. In this article, we will talk about the cashback mortgage and how it works.
Does it benefit you in the long term or short term? How does it compare to my other mortgage options in Sheffield? Let’s take a look and answer the most frequently asked questions regarding cashback mortgages.
Firstly, if you prefer to watch our moneymanTV video on cashback mortgages, feel free to watch it below. As a Mortgage Broker in Sheffield, we receive many questions about cashback mortgages, so mortgage advisor and our managing director Malcolm ‘the Moneyman’ decided to make a video to make cashback mortgages easier to understand:
Cashback mortgages are pretty self-explanatory. To put it simply, after paying off your mortgage or after finishing your mortgage term, you will get some money back.
The sum you get back gets based on a percentage of what you have borrowed. It usually’s something small like 1 or 2%. Some lenders like to have a fixed price in the contract. Even if you have a long mortgage term, this is a fixed amount, and it will not increase over time.
Cashback mortgages come with both advantages and disadvantages. For example, some Cashback Mortgages might come with a free property valuation or some fringe benefits.
Cashback Mortgages can be very attractive to customers that are borrowing lower mortgages. You will get some money back plus some benefits on the side. If you are offered a reasonable percentage on your Cashback Mortgage, you should consider taking it up as it may be worth it in the long term.
The only real disadvantage to a cashback mortgage is that they usually come with high-interest rates.
Compared to other mortgage options available, Cashback Mortgages are not the most popular. However, they are still worth considering. We still see customers at Sheffieldmoneyman looking for Cashback Mortgages, and they are a great backup option if you don’t qualify for your first choices.
If you want a more in-depth viewpoint, be sure to book your free mortgage appointment online or give us a call to speak with a Specialist Mortgage Advisor in Sheffield. Our team will be more than happy to explain the benefits of taking out a Cashback Mortgage and why they could be a suitable option for you.
First and foremost as a first time buyer in Sheffield who is looking to make offers on a potential new home, you have to bear in mind that there will be lots of other possible buyers all looking to buy the same home.
Because of this, it is very important for you to make sure that you are as prepared as you possibly can be ahead of time. This helps to speed the process up and get you a higher chance of getting the offer accepted.
Something else that you should also remember is that you could be doing everything by the book, have a great credit score and everything saved, but if a cash buyer gets involved you’ll probably not be the one to get the property.
The reason that this is likely to be the case is that cash buyers are easier and quicker to take along through the process, as they won’t be needing a mortgage. Luckily for first time home buyers out there, you don’t tend to find a lot of cash buyers anymore.
Getting yourself an Agreement in Principle is major factor in the home buying process. Your AIP (as it is often shortened to) is a written statement of approval that is given by the mortgage lender to confirm that in principle, that subject to further checks later down the process, they are willing to lend you the amount you need for your property purchase.
It’s because of this that you are always better off having one of these to your name, as a home seller or estate agent will definitely want to know conclusively that you have the funds to go forward with the process, avoiding the possibility of both of your times being wasted.
Back during the COVID-19 lockdown periods in 2020, you were even required to have an Agreement in Principle in order for you to view a property, not just buy it. This was to restrict the amount of people viewing or making offers who weren’t in a position to proceed straight away.
As a reputable, open & honest mortgage broker in Sheffield and surrounding areas, we would always highly suggest getting prepared for your mortgage ahead of time and putting yourself ahead of other home buyers, by obtaining an Agreement in Principle as soon into your journey as you can.
We touched upon cash buyers at the beginning. Whilst they are few and far between these days, if and when you encounter one, you will be hard pressed to outdo them as they are probably more favourable to the seller of the home.
Even with that in mind, you may still find that having an AIP to hand will put you in a much stronger position against a cash buyer or any other possible buyers. In many cases, having an Agreement in Principle can be a difference maker.
By obtaining an Agreement in Principle, you are able to prove to the seller of the property in question that you are in-fact a serious buyer and have the necessary funds to proceed with the purchase.
You may also find yourself in a much higher position than other potential home buyers who maybe do have the ability to afford the property purchase, but have yet to obtain their own Agreement in Principle.
This is one of the many perks of speaking to a trusted mortgage broker in Sheffield like ourselves. Our dedicated and loyal team of hard working mortgage advisors in Sheffield will be able to obtain one of these within 24 hours of your free mortgage appointment (of which you can book in a time slot of your choosing, using our online appointment booking system).
Purchasing a property is all about negotiation. If your initial offer is rejected by the seller of the property that you are looking to buy, you will be asked about whether or not you would like to increase your price offer.
If you are firmly in the belief that the property is definitely worth the increase in price and you want to call it home, you may have to be prepared to spend more money than you had initially planned for.
Don’t be worried though if the seller declines your first offer, as this is something that has happened to lots of first time buyers in Sheffield over the years and they are still able to find a property for themselves in the future.
If your second offer also happens to be declined, you will most likely have to pay the asking price, something that you’ll have to be prepared for ahead of time. It’s here where it will benefit to do plenty of research beforehand.
Prior to making any offers on a property, you should always take a look around at the other properties in the local area and scout what their sales prices are on reputable property sale websites like Zoopla or Rightmove. This can help give a general idea of what to offer the property seller.
You should also check out the length of time that the property has been actively on the open market. If it is a newer listing, the seller may not be so willing to budge, whereas if it has been listed for quite a while, the seller may be more inclined to accept a lower offer.
If you come across houses that may have gone for lower amounts than the property is worth there is probably a good reason for it. There’s a chance it has possibly been repossessed, perhaps sold to at a discounted price to a tenant living in, or maybe an inter-family sale.
To gain any mortgage advice relating to this specialist subject, please feel free to get in touch and speak to one of our brilliant mortgage advisors in Sheffield today.
If you require any form of assistance when it comes to making an offer as a first time buyer in Sheffield or maybe would just like a mortgage advisor in Sheffield to guide you towards a fantastic deal, we’ll always be there to offer you guidance and support all throughout your process.
Our fast & friendly team of mortgage advisors in Sheffield are here to provide mortgage advice every day of the week, so book your free mortgage appointment online and make a start on your very own mortgage journey.
One critical factor when moving home in or around the Sheffield area is to consider where you want to locate. If you’re looking for this dream home or something to let out, you also need an ideal area. It would help if you considered what the area is like, what is there, and what is a priority.
To help you better understand the kind of place you want to find, we’ve compiled a list of different factors that some first time buyers in Sheffield, home movers, and landlords looking for buy to let mortgage advice in Sheffield when trying to find their ideal property.
It is important to develop an idea of the type of area you want to move to, as this is somewhere you will live for a good time, maybe even turning it into a family home further down the line. If you are someone who enjoys being at the heart of it all, city life is more suited for you. Otherwise, living in the countryside may be more appropriate if you prefer a quiet life.
In all areas, you’ll find pros and cons to either choice, so be sure to think a lot and research the location before you put your heart into a potential new home.
Transport links to and from your potential new location are crucial factors to consider. For example, if you are socialising with friends or family, do not work from home, or go out shopping, you may need easy access to the transport links needed.
Not to mention the price of each means of transport, depending on the location and regular use. How long does it take for you to get to each destination if you have a car? How much fuel will be? Where are the nearest gas stations?
For those who have children, you should see what schools are available nearby. Every parent wants to find the right school for their child. It is essential to learn about the various schools nearby to determine which school is most suitable.
If you do not have children now, but plan for the future or have no plans at all, it may be beneficial to look for it, just to prove yourself in the future.
When you plan a place to live, you may have certain facilities near you. We recommend writing down a list and separating what you need from what you want.
An example of this would be looking to have a gym in the vicinity but doing so could mean you have to live in an area without the essential shops you need regularly. You probably need more shops for your general life, so it could be something to priorities while finding an area near a gym is an additional bonus.
The distance between where you could live and where your family and friends are currently living can affect where you are. Some prefer to keep them nearby, so they have this support network if they need it.
On the other hand, some prefer to keep to themselves with their loved ones at a distance, prioritising staying at home over going out and socialising with people regularly.
When making purchases, we all want to know we are getting substantial value for money. Figuring out this for your home will depend on the area that you are looking to move to.
Sometimes a better option is for you to look for a cheaper property to start with, although this could mean compromising various features or nearby facilities that you would have preferred to have had.
The local community can have a significant impact on your home life experience.
As established, some people prefer a quiet life. This may require a few nearby residents who keep themselves. Others like to have a thriving and busy community, usually where everyone knows and communicates regularly.
Talk to your real estate agent and find out what the area is like. Community Facebook pages or locally run websites are usually quite common these days, so they are worth looking for to get a rough feel for the area.
Some home buyers may be moving because of a new job or career plan. This is what we have heard from customers a lot and is a huge factor. You need to look at the distance between your new home and your workplace.
If you are working in a home office and only visiting the office sporadically, would you be fine with life a bit further out? What is the space in the property? Is there even a room for the home office?
Those who will be looking for a job once they have already moved, do some research on local companies, and compile a list of leading employers to apply for.
You will find many different types of real estate available to you in the open real estate market, with these varying depending on where you are looking. Some prefer end-item properties with a garden to enjoy, while others prefer a modern apartment or studio apartment.
Make sure you have a good look at all the available options, undertake some property viewing and get a promising idea of the type of property you would prefer to live in.
Any proposed local investment would be helpful to find information on, especially if you are looking to build a life within that home and stay there for quite a while. Online search will be the best port of call when looking to find any future investments. It’s important to consider whether these will benefit or detriment your lifestyle.
Again, those who prefer quiet life in the country could find their dream scenario turned into a nightmare if an important new housing development is planned nearby.
Hopefully, you are now better equipped to find a place to call your home by reading our list. When the time comes to make offers on property and get yourself a mortgage, get yourself booked for a free mortgage appointment. We would be happy to help!
We have a dedicated team of mortgage advisors in Sheffield available from early until late throughout the working week and weekend, subject to availability. Whether you are a first time buyer in Sheffield or home mover, we can’t wait to hear from you.
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.
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!
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.
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.
A property chain can break for many different reasons. It could happen at your’s, your seller’s or even your buyer’s level:
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.
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.
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.
If you are considering buying a house, don’t be spontaneous. Taking out a mortgage requires careful planning and preparation over a long period.
That said, you will be surprised at the number of people we deal with regularly, who are more accustomed to their buying behaviour and have therefore neglected to prepare for a mortgage in advance.
Many reasons why a first time buyer in Sheffield like yourself jump into such a significant financial commitment on a whim. Some of the most common including;
Disadvantages include leaving buyers open to various potential issues with their mortgage. Some common mortgage hurdles we have faced with customers include:
Savings can be pretty tricky. Especially if you are renting at the moment, balancing a constant income and significant outgoings and essential purchases each month limit what you can save in-between.
The good news is that family members can help via the use of a Gifted Deposit. Some first time buyers in Sheffield ask family members to try and help whenever they can. If a family member is looking to help. We recommend it’s best to give them as much notice as possible to get their finances in order!
Getting an up to date credit report is not an incredibly difficult task. You may have seen TV adverts for various credit reference agencies, but we recommend Check My File, as they can collate the data from these sources into one for you to compare.
Once you have downloaded your credit report, you can send it across to a mortgage advisor in Sheffield, who will look at this for you. We see these reports daily, and we know what sort of things the lenders like to see and what they do not want to see.
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When a lender looks at your bank statements, lenders would rather not see lots of unnecessary bank charges or gambling transactions on your bank statements. You will need to provide the lender with a reasonable explanation as to what has been happening on your account and how you plan to resolve this going forward if any issues arise.
For customers who are self employed in Sheffield, we understand that Accountants try to minimise the tax liability for their customers. That said, if your year-end has come around, then there is nothing to stop you from submitting another set of accounts earlier than you might typically do.
Especially if you think your business has grown in the last 12 months. Some lenders consider ignoring previous years’ figures if the latest ones are favourable.
No matter your circumstances! If you are still facing one of the problems above, it’s possible that we may be able to help you get in touch. Our team of expert mortgage advisors in Sheffield are here to try and help.
First time buyers in Sheffield are relying on gifted deposits to get a mortgage. Find out what a gifted deposit is and how it can help your get onto the property ladder.
While the market has gotten tighter with rules, making it more challenging than it used to be to obtain a mortgage. It can still be possible to buy a property in certain situations.
For example, after spending over three years in the same rental property from the local authority, be that a housing association or council. You may be eligible to buy a property under the Right-to-Buy Scheme in Sheffield. We have seen that they may allow you to use the equity from that property in place of a deposit in some cases.
In most cases, people get around the long and stressful process of saving up their deposit by being given a Gifted Deposit. A gifted deposit is when a homebuyer receives money to use as a down payment on a property. Depending on the amount given, it could be used for the whole deposit or just a portion of it.
Most lenders will have specifications on who can and cannot gift a deposit. If you consider buying a house with your parent’s money ‘bank of mum and dad’, this is the source of funds people often ask. Other family members such as grandparents and siblings are usually allowed.
That said, More distant family members such as aunties and uncles are much less likely to be permitted. A mortgage deposit gift from friends, meanwhile, is improbable to be accepted.
If you’re a parent looking to get your children on the property ladder, a gifted deposit is a good way of doing so!
If the person gifting to you is aged over 55, they may look to take out Equity Release in Sheffield as a means of gifting you a deposit.
In most situations, it will need to be a gift, with the lender requiring that the donor sign a letter (which we can help prepare) to confirm the funds are non-refundable, and they will not put a “charge” on the property you are buying. There are exceptions out there, with at least one notable lender who will accept this.
That said, you must be careful, as taking out a personal loan just before applying for a mortgage will most likely negatively affect your credit score, which could lead to a mortgage application being rejected.
Also, the mortgage lender will have to take the monthly payments for the loan when they are calculating how much they will lend you.
There is no maximum limit on the amount of gift you can receive. But most lenders will insist you put in at least a 5% deposit from your funds.
As an open and honest mortgage broker in Sheffield, we can utilise our extensive panel of lenders to search through 1000’s of Right to Buy Mortgage deals for you.
We aim to offer help and guidance during the process, answering any questions you may have along the way. We even aid with other services when necessary, such as conveyancing.
So, you are now ready to take a further step up the property ladder and be one step closer to achieving 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.
As a open and honest mortgage broker in Sheffield, here are some expert tips:
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 today.
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.
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!
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.
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 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.
Like most mortgage options, you have to meet certain requirements before getting the green light:
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.
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:
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.
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UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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Sheffieldmoneyman.com & Sheffieldmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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