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The Main Reasons People Decide To Move House in Sheffield

Home Mover Mortgage Advice in Sheffield

There are many reasons why some may choose to move home. That said, this article will highlight some of the most popular scenarios that we have seen as a mortgage broker in Sheffield:

More Living Space

Some borrowers look at wanting to move home simply because they wish to live somewhere bigger. It makes sense, considering that some first time buyers in Sheffield look for a smaller property to start small and then move when their circumstances change down the line, i.e. ready to settle down and start a family.

Another option to making more living space is to raise capital through a remortgage to build an extension/conversion. This option is popular amongst growing families.

Others choose to remortgage for home improvements to raise their property value for when they sell it in the future.

Change of Scenery

We also hear that some wanted a change of scenery and looking to move to a different area. These will likely be first time buyers again as they usually have a restricted budget and settle for an affordable property for a reasonable price. The chances are that these borrowers now have a higher income coming in that they can afford to live in a more affluent area.

Not everyone considers schools as they may have not even thought about starting a family yet. Those who have started a family or are planning to will always factor in accessible education within the area when they are looking at where to move.

Family & Friends

Some look at moving closer to their friends and family. If you have children at a young age and both parents work full-time then it is more than likely that you will ask their family to help them out with childcare as private nurseries can be costly.

Buying Vs Renting

Those looking to get on the property ladder will always consider buying over renting. That said, when it comes down to costs, no matter if you are renting or buying, the monthly payments are roughly the same, depending on the area, but you need to save up for a deposit.

As we mentioned before, if you prefer more living space but do not want the hassle of moving, then book your free mortgage appointment today to speak to one of our remortgage advisors in Sheffield, who will help you find a great deal to raise money for home improvements.

Speak to a Mortgage Advisor in Sheffield

Why hesitate? Book your free mortgage appointment now to speak to a Mortgage Advisor in Sheffield. Our mortgage advisors can calculate your maximum borrowing capacity and give you a quote on your monthly payments.

Even if you are looking at remortgaging, you can get in touch today, and we can pass you on to our expert remortgage Advisor in Sheffield, and they will be able to answer all of your mortgage enquiries.

Tenants buying from landlords in Sheffield

Buy-to-Let Mortgage Advice in Sheffield

As a mortgage broker in Sheffield, we find that we get an ever-increasing amount of enquiries from tenants looking to buy from their landlords. This could be due to the fact that landlords are offering their tenants ‘first refusal’, which provides tenants a chance to buy the house before it goes onto the open market.

If you are wondering if your landlord may offer you the same chance to buy your rented home, it’s worth asking the question as they may be very willing to do so.

Why are so many Landlord selling their property to tenants?

Landlords selling their property to tenants has become increasingly popular over the years because the government cracked down on tax relief previously available on buy to let and some of those changes were introduced over a 4 year period. Property has always been viewed as a solid investment, so many decided to get through the tax changes as they have looked at their properties as a long-term investment.

Maintaining their investment over time is something landlords, old and new, find difficult. As a result, they look to sell up and leave the property market. In the circumstance where your landlord is looking to sell, then there is a possibility that they would sell to you as the current tenant because they will be aware of the number of advantages by doing this instead of the market. Some of these include:

  • Avoiding estate agents fees – Because they are going directly to you and not the open housing market, they are cutting the costs by avoiding any estate agent fees. It makes the landlord’s job easier and cheaper through having no advertising costs and no costs for undertaking viewings.
  • Loss of rent – A tenant going out their way to do property viewing is very unlikely, therefore, arranging this with a sitting tenant can become a problem for the landlord. Alternatively, some tenants decide to move out which creates a ‘rental void’ where there are no payments until someone else moves in. Therefore, selling to the tenant benefits the landlord as they keep a steady income all through until completion.
  • No refurb costs –The landlord will have to make the house look presentable should the tenant decide to leave. Things like a fresh coat of paint, minor repairs, etc. can build up costs. Whereas selling the property to their tenant cuts this cost as they know the tenant is already happy with the house they live in and are willing to buy it.

The advantages for the tenant buying the property they rent

Tenants aren’t the only ones who benefit from this, tenants do too. Advantages include:

  • Property Knowledge – You will have a broader understanding of the property because you have already lived in it. As well as this, you will know the condition of the house and if there need to be any improvements.
  • Quicker Process – There is no need to sort out a moving date, pack up belongings, or anything like that because you already live there.
  • No Chains – Because you already live there, there are no property chains to worry about. If you were in a property chain, you would have to wait for someone else to move before you can, but in this case, you are not waiting for anyone.
  • Money Saved – Sometimes, landlords may offer you some discount off the asking price. This isn’t guaranteed but, you may find yourself saving money if this is the case. From a landlord’s point of view, selling to you benefits them by cutting additional costs in an open market.

If you are in need of some help with your mortgage after agreeing with your landlord to buy the property, please get in touch with your buy to let mortgage broker in Sheffield today.

Critical Illness Insurance Advice in Sheffield

What is critical illness cover? | MoneymanTV

Here’s our handy guide to understanding the importance of critical illness insurance — what it is, how it works and how it varies from other types of insurances. 

What is critical illness insurance?

Critical illness cover is insurance that pays you a lump sum if you are diagnosed with a particular illness. 

Critical illness provides financial support for you and your family while dealing with your diagnosis, allowing you to concentrate on getting better without worrying about how you will be able to pay the bills.

How does critical illness cover differ from life insurance?

As we stated earlier, critical illness cover helps support you and your loved ones financially if you’ve been diagnosed with a particular illness listed in your policy.

When you are diagnosed with a critical illness covered by your policy, you will receive a lump sum payment, which could help financially with bills/mortgage payments should you be unable to work.

Critical illness insurance doesn’t payout if you pass away. That is where life insurance comes in.

In most cases, life insurance only pays out if you pass away during the policy term. Taking out life insurance can act as a financial safety net to support your family in the event of your death. 

How much cover do you need? 

Policies can differ in terms of which illness they cover, and this all depends on which insurer you choose. It’s good to speak to a protection specialist in Sheffield, as they can advise you on which policy goes well with your circumstances.

Critical illness insurance is a lot more expensive than life cover because you are more likely to make a claim.

That said, ensure you disclose any underlying health problems when taking the policy to avoid the risk of your claim being denied.

Our Critical Illness Insurance advice service

We aim to provide equal opportunity to all our customers when taking insurance out through ourselves.

Here at Sheffieldmoneyman, we offer all of our customers a free, no-obligation protection review, which involves us looking at any existing policies you have in place and assessing their suitability. 

From this, we will look for critical illness, income protection and other mortgage protection insurance products that will meet your needs, and we will try and personalise this to your budget.

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.

Planning to get a Mortgage in Sheffield

How to Plan & What to Expect

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; 

  • I am buying from a family member who is now moving home.
  • My landlord decided to sell their property but offering me the first refusal.
  • I saw a for sale sign outside a house and am currently interested in buying.

The Drawbacks with not Planning for a Mortgage

Disadvantages include leaving buyers open to various potential issues with their mortgage. Some common mortgage hurdles we have faced with customers include:

  • Not having any savings or not having enough for the deposit (an easy solution could be a Gifted Deposit!)
  • Having a low credit score that went unchecked (I had no reason to check it at the time.)
  • Inconsistent bank accounting and overdrawn/late payments.
  • Being self employed in Sheffield and having poor recent accounts.

Saving for a Deposits

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!

Credit Rating

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.

Bank Accounts

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.

Self Employed

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.

Gifted Deposit Mortgage Advice in Sheffield

How to get a mortgage with a gifted deposit?

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.

What is a Gifted Deposit? | MoneymanTV

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.

Gifted Deposits FAQs

Who can gift the deposit?

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.

Can it be a loan rather than a gift?

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.

How much can be gifted for a deposit?

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.

Are you looking for a Mortgage Advisor in Sheffield?

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.

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.

Getting Prepared for a Mortgage in Sheffield

Moving Home Mortgage Advice in Sheffield

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:

Know Where You Stand Ahead of Your Mortgage

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.

Getting Organised for a Mortgage

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;

Proof of ID

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.

Proof of address

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.

Last 3 months’ bank statements

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.

Proof of deposit

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.

Proof of income

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.

A list of your expected outgoings

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.

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

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