Tracker mortgages are just one of the many different types of mortgages out there. Some mortgages will be more beneficial to you than others, it entirely depends on your personal and financial situation. Just because a Tracker Mortgage is perfect for someone else, doesn’t necessarily mean that it will be right for you.
As a mortgage broker in Sheffield, we recommend that you enquire or do your research first before taking out any products. You need to make sure that it benefits your circumstances. If you get locked into a deal that isn’t right for you, you may have to wait until the end of your fixed term to switch products or research your option for a Remortgage in Sheffield.
In this article, a Tracker Mortgage will be the primary focus, looking at how it works and why it may be a good option for you. Feel free to watch our Tacker Mortgage YouTube video below, where Malcolm explains what Tracker Mortgages are and the pros and cons that come with them:
When you take out a Tracker Mortgage, you’ll be tracking the Bank of England’s base interest rate percentage. This percentage will be used to work out your mortgage payments.
Usually, on top of the tracked percentage, your lender may add another percentage to slightly further increase your interest rate. The extra percentage of interest that they add is normally around 1%-2%. So, your interest rate should always be another percentage over the Bank of England’s.
Since a Tracker Mortgage tracks your interest rate percentage from the Bank of England, if their base rate is low, then your mortgage payments should be lower. Typically, their base rate lies around the 0%-1% mark, however, this will change month to month.
During the credit crunch crisis in 2008, the Bank of England’s interest rate shot right up. It even reached 5% at one point, which meant that customers were potentially paying their mortgage with a 6% interest rate. We all thought that a similar situation would happen again during the coronavirus pandemic in March 2020, although, this time the rates went down. If you had a Tracker Mortgage in this period, you’d be tracking the Bank of England’s base rate at 0.1%! At the time, you couldn’t take out a Tracker Mortgage as the rates were too good to be true. Lenders would be losing money if they kept handing them out.
A Tracker Mortgage can be a gamble sometimes. You’re depending on the economy performing well so that your base rate maintains its percentage. The base rate may fluctuate now and again, however, in most cases, it should stay at a similar rate.
There are lots of different types of mortgages, and some will be much more beneficial to you than others. It all comes down to your personal and financial situation.
If you want to find out more about Tracker Mortgages and how they work, feel free to get in touch with our brilliant team. If you want to discuss your other mortgage options, that’s completely fine too!
Our mortgage advisors in Sheffield have been helping first time buyers in Sheffield, home movers and people looking to remortgage for over 20 years now – we know what we’re doing.
Book your own free mortgage appointment online today and we can discuss all of your mortgage options in Sheffield.
Whether you’re a First Time Buyer in Sheffield, a Home Mover or a Landlord looking to invest in a Buy to Let in Sheffield, there will be a point in the mortgage process where you will come across a mortgage illustration. Your dedicated Mortgage Advisor in Sheffield will bring this up once they have presented you with a suitable product.
A mortgage illustration is exactly what it sounds like. It outlines your mortgage product and goes into detail so that you are aware of all of the costs involved, your term length and how much you will be paying each month.
You will be presented with a mortgage illustration before you submit your application to your mortgage lender. This part of the process cannot be skipped.
During a run-through of your mortgage illustration, you will look at the costs of taking out the mortgage product. These costs include mortgage repayments, your lender, broker and sometimes valuation fees.
However, these do not cover solicitor fees and insurances, they are separate. It will only cover the mortgage and what’s included.
There will also be details of your chosen lender and Mortgage Broker in Sheffield. This includes legalities and general information too.
You are under no obligation to take out your mortgage recommendation. Your Mortgage Advisor in Sheffield will be open and honest with you and make you are of this. In the rare occurrence that you are unhappy with your product recommendation, your advisor can try and find you another deal.
You also have the right to walk away if you want to. You will avoid paying broker fees, as we only charge on results, however, you will not be able to continue with the deal that we found you.
You are never guaranteed a mortgage. A mortgage illustration is simply an outline of your mortgage deal and the costs and details that come with it. Your Mortgage Advisor in Sheffield can present you with a mortgage illustration before submitting your application with you.
After outlining the mortgage product, if you are happy with the deal, you will then be able to start preparing your mortgage application.
Your advisor will have previously measured your eligibility and affordability before your free mortgage appointment, therefore, you will just need to provide evidential documents to support your income.
A mortgage illustration and a mortgage agreement in principle are not the same. A mortgage agreement is issued after your appointment and confirms whether your lender is willing to lend to you. These come in handy before making an offer on a property.
For further Mortgage Advice in Sheffield, make sure to book your free mortgage appointment online. We have slots available 7 days a week, mornings and evenings.
Many people find the moving home to be a stressful, time consuming and costly experience, however, it’s process people do decide to go through. It could be for many reasons like a lack of space, a career change or a change in scenery. Below is the most popular reasons why people move and relocate to Sheffield.
This can be a common reason amongst First Time Buyers in Sheffield as they usually start with a smaller property due to living either on their own or with another person. Then they find in the future they need a bigger space due to personal changes in their lives.
It could be that you are looking to start a family and need more room which could lead to them wanting to look for a bigger home.
Alternatively, you might enjoy your current home so look to raise capital by taking out a remortgage to fund home improvements, like a building extension, conversion or a home office in instead of Moving Home in Sheffield.
We do find the remortgage option to be a popular one, in particular, with growing families as this gives them the opportunity to have that extra bit of space whilst staying in a house they have grown attached to through the years.
Another reason why people take out a remortgage for home improvements is to increase the property’s value. This can be beneficial in the future if you are looking to turn a significant profit from the sale.
If you are looking for a change in scenery, moving home can be perfect for this and can be the top reason why homeowners look to move.
First Time Buyers commonly choose this option because they were likely to have a limited budget so go for a lower end property. Due to having a higher income, they now have the opportunity to live in a more prosperous location.
A different location may open up the opportunity to be closer to both their friends and family. This usually occurs when couples start having a family.
Being close to family can be helpful when it comes to childcare. With many private nurseries being expensive, it can be handier for parents to seek help from their families for childcare.
When it comes to Moving Home in Sheffield, you will need to have a rough idea of the cost of moving home. Speaking to a Mortgage Advisor in Sheffield would help with finding out how much you would be able to borrow which will give you an estimated quote on what your monthly payments could be.
For more information, contact us today and we will connect you with a knowledgeable remortgage advisor in Sheffield.
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.
First time buyers, home movers, landlords and the self employed will always ask the same question when it comes to applying for a mortgage – “how much can I borrow?”.
The answer varies depending on your individual situation. For example, how much you can borrow could change depending on your credit score, income, bank statements and your personal situation.
Let’s take a look into ‘how much you can borrow for a mortgage’ and how things have changed following the credit crunch.
Long before the credit crunch, credit scoring was non-existent and mortgages were manually assessed by your local building society manager. Then, during the 1990s, lenders started performing income assessments to provide a consistent approach across applicants.
Maximum lending caps were also introduced. This meant that customers couldn’t borrow more than three to four times their annual income. Scary to think that before people could!
Despite these lending caps in place, in the early 2000s, lender’s income multipliers grew more generous. This meant that more and more people were borrowing more than they can afford to pay back. Furthermore, some lenders were even allowing some of their customers to ‘self-certify’ their income with minimal/no background checks such as payslips.
Of course, all of this went very wrong. Lenders were lending to applicants that couldn’t afford to pay them back, therefore the market crashed and all of sudden, it became extremely hard to get a mortgage from 2008-2010. Lenders tightened their margins and created a cautious (over-corrected) lending environment.
In 2014, the Mortgage Market Review (MMR) was introduced. This initiative helped the market get back up on its feet; it brought a new set of guidelines for lenders to adhere to. The old income multiplier method was scrapped and replaced with new, more sophisticated affordability calculators.
These new affordability calculators provided a closer look into an applicant’s spending habits and net disposable income. This meant that the lender could have an in-depth look at your bank statements to ensure unaffordable mortgages were not granted as they were before the Mortgage Market Review.
There is still a “lending cap” in place at about 4.75 times your annual income but your expenditures are also analysed. For example, lenders seem to penalise low-earners and even things like gambling showing up on your bank statements can sometimes affect your chances of being accepted. Some take pension contributions as a fixed outgoing so would often lend, say a public sector worker with a big pension deduction less than a private sector and so on.
If you are currently trying to work out how much that you borrow, we would recommend trying our online free affordability calculator or speaking to us for a more accurate measure. A Mortgage Advisor in Sheffield will research the market on your behalf and try to find a lender that will lend you the amount you need.
Before you take out a mortgage you should sit down with a First Time Buyer Mortgage Advisor in Sheffield and work out your finances together to ensure that the repayments feel comfortable to 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.