What Are The Main Reasons People Decide To Move House?

Moving Home Mortgage Advice in Sheffield

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.

Bigger living space

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.

Change of scenery

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.

Family & friends

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.

Speak to a Mortgage Advisor in Sheffield

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.

Can I Have Two Mortgages in Sheffield?

Second Mortgage Advice in Sheffield

Depending on your income, affordability and the amount of equity built up inside your property, you may be able to take out a second mortgage.

People take out a second mortgage for various reasons, such as for a Buy to Let, Let to Buy, Holiday Let, family purchase, specialist situation or Commercial purposes. If you are considering one of these options, watch the video below or read on to find out how second mortgages work and why one could be the best option for you.

Reasons to take out a second mortgage

In our twenty years of working as a Mortgage Broker in Sheffield, we have come across many different types of customers that are looking to take out a second mortgage. Here are some of the most common customer scenarios that we come across.

Buy to Let

Current or budding landlords may want to invest in another property to climb the property ladder. If you are a landlord and already have more than one Buy to Let in Sheffield, you may find it slightly easier to take out a second mortgage as you’ve already demonstrated that you can afford more than one set of mortgage payments. This does not mean that you are guaranteed a mortgage though. You will still have to pass usual credit checks and affordability assessments.

If you are a First Time Buyer landlord in Sheffield, you will have to prove that you are able to manage two sets of monthly mortgage repayments. Lenders will factor in the equity in your current property, the type of property that you’re buying, the rental income from the Buy to Let and your personal and financial circumstances.

Let to Buy

Similarly to Buy to Let second mortgages, If you are planning to Move Home in Sheffield to become a landlord/grow your Let to Buy portfolio, your lender needs to make sure that you can manage both sets of mortgage payments. Some of our customers have already had tenants for their Let to Buy lined up during their second mortgage application process.

Lenders will assess your income, affordability, equity in your current home and personal and financial circumstances before accepting your second mortgage application.

Holiday Let

Holiday Let properties are great investments for those looking for an extra source of income. As a bonus, you will also have a place to stay at no added cost!

They work in the same way as Buy to Lets, however, your income from the Holiday Let may be more infrequent. Peak times, e.g., summer or Christmastime may provide you with more income; the lender will factor this into your Holiday Let second mortgage application as there will be times when you will have no rental income to contribute to your repayments.

You will need a large deposit for a Holiday Let as most of the properties in holiday locations are expensive.

Family purchase

Are you looking to take out a second mortgage to help a family member move into a new property?

Housing prices have skyrocketed, and First Time Buyers are struggling more than ever to get onto the property ladder. With this in mind, family members are offering a helping hand and taking out a mortgage in their own name so that their loved ones can move onto a property.

An alternative for parents or grandparents would be to gift their family members a gifted deposit. This can take off some of the pressure of saving up for that 5% mark and could help boost the overall deposit when combined with the applicant’s own savings.

You must be aware that the donor of the gifted deposit must declare in writing that this is not a loan it is a gift that should not be paid back in the future. The donor must also provide bank statements and proof of where the deposit has come from.

Specialist situation

If you are in a complex situation and you need to take out a second mortgage, we are here to try and help. A common situation that we come across involves applicants separating or going through a divorce and one party needs to take out another mortgage so that they can move out of the property.

In this situation, your lender will need to make sure that you afford two sets of mortgage payments as you will still be accountable for the repayments on your’s and your ex-partner’s mortgage. When you move out of the property, until your ex-partner can afford the repayments on their own, you will have to contribute towards them.

If you are in a complicated situation and you need to obtain a second mortgage, don’t hesitate to get in touch and we can take a look at your situation. We offer expert Mortgage Advice in Sheffield to all types of customers, struggling with all different kinds of mortgages.

Equity Release for a second mortgage in Sheffield

Equity Release is a way to release funds in your home to gain a lump sum of cash. There are different reasons why someone would want to release their equity; some people will use this cash to fund a second mortgage, take out a lifetime mortgage to replace their current mortgage or spend on something else of their choice. The lump sum that you release can be spent on anything you want to. We have seen customers use the money to pay for weddings, buy a new car and even to pay off debt.

Equity release is a very complicated subject, therefore, we would recommend getting in touch with our team to help you through the process. Getting a second mortgage can be difficult enough, never mind getting a second mortgage by releasing equity in your property.

Book your free mortgage appointment online or over the phone today by contacting a member of our team. We can’t wait to hear from you!

The Costs of Buying a Home in Sheffield

Buying a Home Mortgage Advice 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 Costs of Buying a Home UK | MoneymanTV

What mortgage fees will you pay?

Estate Agent Fees

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.

Survey fees

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.

Mortgage arrangement fees

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.

Solicitor’s fees

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.

Stamp duty

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

Broker fees

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.

Removal fees

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.

Mortgage Advice in Sheffield

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.

What are The Different Types of Mortgages Available in Sheffield?

The Different Types of Mortgage

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.

What is a Fixed-Rate Mortgage?

What is a Fixed-Rate mortgage? | MoneymanTV

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.

What is a Tracker Mortgage?

What is a Tracker mortgage? | MoneymanTV

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%.

What is a Repayment Mortgage?

What is a Repayment mortgage? | MoneymanTV

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.

What is an Interest-Only Mortgage?

What is an Interest-Only mortgage? | MoneymanTV

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.

What is an Offset Mortgage?

What is an Offset mortgage? | MoneymanTV

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.

What is a Cashback Mortgage?

Cashback Mortgage Advice in Sheffield

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:

What is a Cashback Mortgage?

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.

Will a Cashback Mortgage benefit me?

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.

Different Types of Mortgages in Sheffield

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.

10 Factors to Help you Decide Where to Live in Sheffield

Moving Home Mortgage Advice in Sheffield

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. 

Are you looking to move to the countryside or the city?

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. 

Public Transport in Sheffield

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? 

Schools & Education

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. 

Nearby Facilities – What You Need Vs What You Want

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. 

Friends and Family

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. 

Is the property good value for money?

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. 

What is the community like?

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. 

Career Changes

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. 

Property Type

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. 

Local Developments

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. 

How a Mortgage Broker in Sheffield Can Help You

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.

How much deposit do I need to put down?

First Time Buyer Mortgage Advice in Sheffield

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.

Historic rules when borrowing for a mortgage

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.

Nowadays approach to how much I can borrow

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.

Mortgage Broker in Sheffield

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.

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.

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.

Sheffieldmoneyman.com & Sheffieldmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited registered in England, registered number 6789312 and registered office 10 Consort Court, Hull, HU9 1PU.

© 2022 Sheffieldmoneyman

Sheffieldmoneyman, Courtwood House, Silver Street Head, Sheffield, S1 2DD.

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