Acquiring a property is a significant financial commitment, and it’s natural to have numerous questions about the mortgage process. As seasoned mortgage brokers in Sheffield, we’ve helped a diverse range of buyers, almost all of whom have asked us, “How long does mortgage approval take?”
If you’re a first time buyer in Sheffield with queries like these, seeking expert mortgage advice is of high importance. However, it’s important to note that not every question has a one-size-fits-all answer, especially when it comes to timelines, as they depend on individual circumstances.
For those with a clean credit history, mortgage approval could take approximately 2-3 weeks. This timeframe is illustrative and may vary. Issues with current or past credit can extend the approval process considerably.
Lenders meticulously scrutinise credit files to assess the applicant’s reliability and ability to afford a mortgage. If there are credit challenges, approval might take months.
It’s essential to understand that there’s no universal timeframe for mortgage approval; it hinges on the lender’s policies and your unique financial situation.
Mortgage approval today is a more intricate process compared to the pre-credit crunch era. Gone are the days of easily accessible mortgages. The current process involves a thorough examination of an applicant’s personal and financial details.
Lenders analyse credit history, income, including occupation, and outgoings via bank statements to evaluate the applicant’s financial capacity. The goal is to ascertain the type of borrower you are and whether you can comfortably manage a mortgage on a Sheffield property.
Given the volume of applicants, this process naturally takes time.
As your mortgage broker in Sheffield, our process is structured to guide you seamlessly through each stage leading up to your mortgage application.
We aim to make your mortgage journey stress-free, allowing you to focus on discovering your ideal Sheffield property while we handle the intricacies of the mortgage process.
To initiate your mortgage journey, schedule your complimentary mortgage appointment with one of our experienced mortgage advisors in Sheffield. You can choose a convenient date and time online or contact our team directly.
With availability seven days a week, we provide flexibility for appointments tailored to your schedule. During this free session, lasting approximately 30-45 minutes, your mortgage advisor will gather essential information to understand your goals and guide you along the mortgage process.
Upon completion of your mortgage appointment, your dedicated mortgage advisor in Sheffield will furnish you with a key document: the mortgage agreement in principle (AIP).
This document becomes essential when making an offer on a property, serving as evidence to the estate agency that you’ve secured pre-approval from a mortgage lender.
With the AIP in hand, you can actively start searching for your desired property. If you’ve already identified your dream home, we can swiftly progress to the next step.
Once you’ve successfully secured an offer on the property, we’ll match it with the ideal mortgage deal from our diverse panel of lenders, encompassing both high street and specialist products.
The details of this chosen mortgage deal will be clearly outlined in a comprehensive mortgage illustration document, ensuring you have a complete understanding of the terms.
If you’re satisfied with our service and the proposed mortgage product, it’s time to prepare your mortgage application. Your mortgage advisor will help you in gathering the necessary documents to demonstrate your affordability for the mortgage.
Once everything is in order, we’ll submit your application to the mortgage lender.
With your mortgage application submitted, the process now rests in the hands of the mortgage lender. It’s important to note that we never recommend a mortgage product that’s likely to be declined.
The lender will scrutinise your attached documents to verify your affordability, check your identification, and confirm your current registered address. If you’ve received a gifted deposit, the lender may require the last three months’ bank statements from the donor and a signed gifted deposit form.
Distinguishing itself from a house survey, a mortgage valuation survey is conducted by a property surveyor sent by the lender to assess the property’s true value.
Different types of property surveys are available, and your mortgage advisor in Sheffield will guide you on the most suitable one for your property type. The survey aims to establish the actual value of the property, ensuring that your requested mortgage aligns with the property’s true worth.
Following the lender’s checks, successful applicants will receive formal mortgage approval. Your mortgage advisor in Sheffield will promptly convey this positive news.
At this point, the process transitions to solicitors for the exchange of contracts and completion of remaining legalities, bringing you one step closer to collecting your keys.
Whether you’re a first time buyer in Sheffield, looking to move home, remortgage in Sheffield, or venture into buy to let properties, understanding the mortgage process is important. As your trusted mortgage broker in Sheffield, we recommend initiating the process up to six months in advance.
This proactive approach allows for the arrangement of an agreement in principle and early property exploration within your budget. If you’re considering a property purchase in Sheffield, seize the opportunity to start your mortgage journey now.
Book your free mortgage appointment online or by contacting our team today.
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.
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 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.
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:
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.
First time buyers in Sheffield are relying on gifted deposits to get a mortgage. Find out what a gifted deposit is and how it can help your get onto the property ladder.
While the market has gotten tighter with rules, making it more challenging than it used to be to obtain a mortgage. It can still be possible to buy a property in certain situations.
For example, after spending over three years in the same rental property from the local authority, be that a housing association or council. You may be eligible to buy a property under the Right-to-Buy Scheme in Sheffield. We have seen that they may allow you to use the equity from that property in place of a deposit in some cases.
In most cases, people get around the long and stressful process of saving up their deposit by being given a Gifted Deposit. A gifted deposit is when a homebuyer receives money to use as a down payment on a property. Depending on the amount given, it could be used for the whole deposit or just a portion of it.
Most lenders will have specifications on who can and cannot gift a deposit. If you consider buying a house with your parent’s money ‘bank of mum and dad’, this is the source of funds people often ask. Other family members such as grandparents and siblings are usually allowed.
That said, More distant family members such as aunties and uncles are much less likely to be permitted. A mortgage deposit gift from friends, meanwhile, is improbable to be accepted.
If you’re a parent looking to get your children on the property ladder, a gifted deposit is a good way of doing so!
If the person gifting to you is aged over 55, they may look to take out Equity Release in Sheffield as a means of gifting you a deposit.
In most situations, it will need to be a gift, with the lender requiring that the donor sign a letter (which we can help prepare) to confirm the funds are non-refundable, and they will not put a “charge” on the property you are buying. There are exceptions out there, with at least one notable lender who will accept this.
That said, you must be careful, as taking out a personal loan just before applying for a mortgage will most likely negatively affect your credit score, which could lead to a mortgage application being rejected.
Also, the mortgage lender will have to take the monthly payments for the loan when they are calculating how much they will lend you.
There is no maximum limit on the amount of gift you can receive. But most lenders will insist you put in at least a 5% deposit from your funds.
As an open and honest mortgage broker in Sheffield, we can utilise our extensive panel of lenders to search through 1000’s of Right to Buy Mortgage deals for you.
We aim to offer help and guidance during the process, answering any questions you may have along the way. We even aid with other services when necessary, such as conveyancing.
So, you are now ready to take a further step up the property ladder and be one step closer to achieving your mortgage goals. Whether you are a first time buyer in Sheffield, new to the experience, or a home mover in Sheffield looking to sell your current home and live somewhere else, you will still need to start getting prepared for your mortgage.
As a open and honest mortgage broker in Sheffield, here are some expert tips:
As an experienced and well trusted mortgage broker in Sheffield, we always recommend taking advantage of mortgage advice as early on in the mortgage process as you can. This will allow you to get an idea of how much you could possibly borrow and what your estimated monthly costs may be.
You need to prioritise getting an up-to-date credit report, as you will need to know what your current credit score is and what you could potentially do to improve it, if necessary. The better your credit score is, the higher chance you have of your mortgage application being accepted.
There are a lot of different ways that you could potentially improve your credit score in Sheffield and to the surprise of many, it isn’t always too difficult to do so. In some cases, it is even possible to obtain a mortgage deal despite having a low credit score, though this ultimately depends on your lender and the way they look at your circumstances.
By ensuring you have both a mortgage advisor in Sheffield by your side and an up-to-date credit report to hand, you could increase your chances of being accepted for a mortgage in the future. A trusted mortgage advisor in Sheffield will be able to work through everything on your behalf, guiding you throughout the process.
Here at Sheffieldmoneyman, we have the ability to obtain a fully credit-checked agreement in principle for you, something we can turn around within 24 hours of your initial appointment. A dedicated mortgage advisor in Sheffield will help you to get prepared for everything prior to submitting your mortgage application.
In doing this, your mortgage lender will want to see some proof of identification, so that you can prove you are who you say you are, along with where you are living and the amount that you earn from your job. In knowing this, you can now prepare for all the necessary documents you’ll need. These are as follows;
In terms of proving who you are you’ll need to produce some photo ID. Acceptable types of ID include a driving license or valid passport.
In addition to the above, you’ll need to prove where you live. You’ll need to produce a utility bill or original bank statement dated within the last 3 months.
Lenders will always have a keen interest in what your spending habits are, compared to anything else.
They need to be absolutely sure that you will have the ability to regularly maintain your monthly mortgage payments on top of everything else you have going out. They will analyse your bank statements very carefully and take everything into consideration.
Lenders aren’t too fond of seeing gambling on your bank statements. It’s something we often see catching people out, as they haven’t realised that it can harm your chances of obtaining a mortgage down the line. They also don’t like seeing customers go over their overdraft limit, as this basically means your spending money that isn’t there.
It’s reasons like this why we always advise that you be careful and make sure that your statements are going to appeal to a mortgage lender, rather than put them off from lending to you.
You will have to prove you have the funds in place for the deposit and also be able to evidence this for anti-money laundering purposes. Try not to move money around your various accounts too much as it will make evidencing the audit trail a more complex process than it needs to be.
Lenders take a preference to applicants who are able to evidence that they have been saving for their deposit. It shows that you have a good understanding of how to put money aside every month and not spend money you don’t have. You’ll also need to factor in any large credits into your accounts.
Quite often we find that the money for a deposit has been gifted by family members. These funds will also need to be evidenced, with the “donor” being required to sign a letter for the lender. This will be to confirm that the funds are strictly a gift and not something they will be needing back from the mortgage applicant.
In terms of affordability, the most important thing is to be able to prove your income. If you are employed this tends to be done by providing the lender with your last 3 months’ payslips and most recent P60. Lenders often take into account regular overtime, commission, shift allowance and bonus.
Make sure that you do plenty of research ahead of time. Preparing for your mortgage and making a note of your anticipated outgoings after you move house puts you in a great position prior to starting the application process.
You can work out an estimate of how much the council tax and utility bills will be. In addition to that, you can also work out your regular expenditures, such as any food and drink you will be buying. This will demonstrate how much disposable income you have available to pay your mortgage from.
You need to accommodate lots of time to prepare for your mortgage application. It can sometimes be a lot quicker and much easier to approach a mortgage broker in Sheffield who can take the bulk of the process and do it on your behalf.
A mortgage advisor in Sheffield will be able to work out how much everything is potentially going to cost you and guide you through the entire mortgage process, doing their best to work hard and try to secure you a competitive mortgage deal.
Getting ahead and planning early will always impress your mortgage lender. Let an expert mortgage broker in Sheffield help you out. Get in touch to book your free mortgage appointment with a trusted mortgage advisor in Sheffield today.
For prospective first time buyers in Sheffield, as well as home movers in Sheffield, credit scoring often appears as an unfair way for mortgage lenders to evaluate their applications. Conversely, from the perspective of these lenders, credit scoring is perceived as a cost-effective and consistent to minimise their risk.
If you’re feeling apprehensive about the credit scoring system when applying for a mortgage, there’s no need to worry. The good news is that a multitude of mortgage lenders out there, each with their own unique scoring systems and criteria.
To alleviate your concerns and improve your chances of accepted, it’s a smart move to obtain a copy of your credit report when applying for a mortgage.
By providing your mortgage advisor in Sheffield with an up-to-date credit report right from the start, you offer them a clearer insight into your financial standing, thereby increasing the likelihood of a successful application.
Keep in mind that having this credit report in hand will also enable your mortgage advisor in Sheffield to identify any potential issues or areas that could benefit from improvement, allowing you to address them before applying for the mortgage.
This proactive approach not only bolsters your chances of approval but also grants you with more confidence and peace of mind throughout the entire mortgage process.
Always remember, each mortgage lender has its own set of criteria, so don’t feel disheartened if one lender turns down your application. Your mortgage advisor in Sheffield will work with you to find the best fit among the various options available in the market.
When it comes to checking your credit report for mortgage purposes, you’ll find various credit reference agencies, including well-known names like Experian and Equifax. Our top recommendation is to go with CheckMyFile, as it provides a comprehensive overview based on information from multiple credit agencies.
The good news is that CheckMyFile offers a 30-day free trial, giving you ample time to review your credit report without incurring any costs during this period. The best part? You have the flexibility to cancel the trial whenever you like, if you so choose.
This approach allows you to make well-informed decisions regarding your creditworthiness, ensuring that your mortgage application rests on a solid foundation.
By using the link below, you’ll enjoy the added benefit of receiving a free, instant PDF download of your credit report. Take advantage of this opportunity to pave the way towards a successful mortgage journey!
Try it FREE for 30 days, then £14.99 a month – cancel online anytime.
Improving your credit score is a cricial step when applying for a mortgage, and there are several steps you can take to boost your creditworthiness. First and foremost, be cautious when using price comparison websites, as they may trigger credit searches that could have a negative impact on your score.
To avoid any potential red flags for mortgage lenders, it’s best to refrain from applying for other types of credit in the immediate future.
One effective method to positively impact your credit score is by registering on the electoral roll. Ensuring that your name and address are accurate and up-to-date can have a positive impact on your score. Address errors can inadvertently give the impression of multiple residencies, potentially affecting your creditworthiness.
Moreover, handling your credit card usage wisely can significantly impact your credit score. Maxing out your credit card every month may lead to a reduction in your score, so it’s advisable to use it responsibly and pay the balance in full each month.
Though closing unused store or credit card accounts might cause a short-term dip in your score, it can be beneficial in the long run and reduce your vulnerability to fraud.
Furthermore, financial ties to family members, friends, or ex-partners can affect your credit score, especially if their credit history is poor. If you no longer have active financial connections with these individuals, you can request that credit reference agencies remove these links.
When seeking mortgage advice in Sheffield, providing our trusted and experienced mortgage advisors with comprehensive information about your finances will enable them to offer the best possible guidance and support throughout the mortgage application process.
With their expertise and your improved credit score, you’ll be well-positioned to secure the ideal mortgage that suits your needs and financial situation. It’s a step towards achieving your homeownership goals with confidence!
Introduced off the back of the credit crunch in 2012, the Shared Ownership scheme gives first time buyers and home movers the opportunity to buy a share of and rent a property.
Utilising the Shared Ownership scheme will allow you to take out a mortgage on/purchase a percentage of a property and then pay the remainder back on rent. The percentage that you take out will usually be between 10%-75%. Although, in some cases, you may be allowed to take out a 10% share.
As a result of taking out a mortgage in this fashion, you’ll be able to put down a smaller deposit. This makes your task of getting onto the property ladder a whole lot easier!
Perhaps partial homeownership is the route that you need to take.
Since it’s likely that you’ll only be purchasing a 25%-75% share in the property, the minimum required deposit should be lower; although, this can still differ depending on your credit history.
You’ll be accessing Shared Ownership through the ways of a mortgage, meaning that you’ll only need to take out a mortgage on the percentage that you’re buying. For example, if you’re buying a share of 50% on a £250,000 house, you’ll only need to take out a £125,000 mortgage. Plus, rather than producing a deposit that’s based on the full property price, you’ll only have to supply a deposit based on the percentage that you’ve taken out; in this example, if you were required to put down 5% or more, you’d only have to supply £6,250.
After you’ve put down your deposit and your offer is accepted, you’ll start paying back your mortgage month on month; just like any other mortgage. As an additional cost, you’ll also be paying rent to the housing association. Your rent plus your mortgage payments shouldn’t be as expensive as had you taken out a 100% mortgage.
There are lots of different costs to consider when taking out any type of mortgage. In terms of Shared Ownership costs, you will have the obvious set-up/arrangement fees and maybe some booking fees. Also, you are likely to receive stamp duty tax if your property is above the stamp duty threshold and you’ll have to consider legal solicitor fees too.
Costs will vary depending on the property that you’re buying. Factors such as deposit size, monthly payments, arrangement fees will differ from property to property.
To qualify for Shared Ownership, you will have to meet certain requirements:
We have been working within the mortgage industry for over 20 years now and have successfully helped many applicants get through their Shared Ownership journey.
We offer a free Shared Ownership mortgage consultation to all customers; take advantage of this 7 days a week! We hope to hear from you soon.
Once you’ve had your offer accepted on a property, you are going to move onto the next stage of the mortgage process… getting the property surveyed.
A property survey is carried out to determine whether the true value of a home correlates to the amount that a buyer has offered for it. The survey will also show the overall condition of a property, highlighting defects and damages (if there is any).
There are lots of different types of property surveys, however, three stand out as the most popular amongst the crowd:
A property survey may be carried out free of charge depending on the lender that you use. If you are offered a free survey, you may be limited to what you can see on the report, or sometimes the lender may not give you a copy.
Each survey differs, some will provide great detail and tell you everything that you need to know about your property, whereas others will not. Usually, the more that you pay for a survey, the more in-depth the report will be.
If your survey shows something about the property that you weren’t told about, by law you are allowed to approach the seller and work out a price reduction is necessary.
A Mortgage Valuation is the simplest property survey and usually the cheapest. They are carried out to find out the true value of a property.
Before committing to lending to you, your lender will need to find out whether the property’s value matches how much you are set to borrow from them. If you put in an offer above the property’s value and it gets accepted by your seller, it’s good for them but not for your lender, therefore it’s unlikely that your lender will accept your application. This is because they will have to lend more than the property is actually worth; this is called a down valuation. If you can make up the difference between what you said you’d pay and the mortgage amount, you’ll be able to go ahead with your lender, although, if you can’t then the lender will pull out of the deal.
Unfortunately, a Mortgage Valuation survey will not point out minor damages or repairs, it will just show clear structural defects that will require attention as soon as possible. If you want a report that goes further in-depth, you will have to pay more to upgrade to a different survey.
A Homebuyers Report focuses on the safety of the property and how safe it is to live inside of it. The report will include problems such as mould, dampness or something that does not pass the current building laws.
This survey will be carried out by an expert. They will thoroughly examine the property from top to bottom so that they know exactly how safe it is to live in.
As a Mortgage Broker in Sheffield, we usually recommend a Full Structural Survey, especially to those who are purchasing an older building. You sometimes need to be aware of everything.
This survey is the most expensive of the three and usually them all. This is because your surveyor will look at the whole property, often spending a whole day to determine its worth and to find out what’s wrong with it.
If the purchase goes through and you now know everything about the property, you may have saved yourself a lot of money in the long run as if you didn’t know about the damages, you couldn’t act on them meaning that they could worsen overtime.
New builds usually requires a different type of survey called a snagging survey. This will highlight both minor and major issues. It could be from a missing door hinge to cracks in the ceiling.
If the new build has already been built, it would be wise to have a property survey carried out on it before you move into it. Just because the property is a new build doesn’t mean that there is nothing wrong with it. As a Mortgage Broker in Sheffield, we would always advise that you have some sort of survey carried out on a property.
Whether you are a first time buyer in Sheffield or moving home in Sheffield, if you are struggling to choose the right property survey or just need general mortgage advice, feel free to get in touch with our team. Sometimes, it can be difficult to get the ball rolling when it comes to moving home, so make sure to get in touch if you need any help!
You can obtain the services of a surveyor to carry out a Homebuyers report or building survey through the Royal Institution of Chartered Surveyors.
An Agreement in Principle (AIP) is a statement or certificate from a lender to say that, in principle, they would lend you a certain amount and proves a First Time Buyer in Sheffield like yourself that you are credit-worthy.
If you are looking to get one, you need to get in touch and provide us with information about your mortgage needs and situation. Then, once we have processed your details, we can suggest how much you may be able to borrow.
As a devoted mortgage broker in Sheffield, we can usually turn around an agreement in principle for you within 24 hours of your enquiry. Your Agreement in Principle can last anywhere between 30 and 90 days, depending on the lender. If your Agreement in Principle expires before you use it, it can be easily refreshed by speaking to your mortgage advisor in Sheffield.
When applying for an Agreement in Principle, the lender will run a credit check to evaluate your eligibility. You will need to ask what level of credit survey they do. If the lender runs a hard credit search, it will leave a ‘footprint’ on your credit file visible to other lenders.
A search footprint is a record left by a credit reference agency every time your credit report gets searched, either by yourself or by others. If there are a high number of hard searches in a short period, it can harm your credit score as it could signal that you’re struggling to get accepted by other lenders.
However, if the lender has chosen to run a soft search, it won’t leave a footprint, and it won’t impact your credit score.
An AIP cannot guarantee that you will get a mortgage offer – you will still need to go through the entire mortgage application process when you find a property you want to buy, but this will help strengthen your chances.
An AIP usually is valid for up to 30 – 90 days, and our mortgage adviser in Sheffield will be able to use the information as part of your mortgage application process. However, they will want to make sure the details are still correct.
Some factors may affect the lender’s decision when making a complete application, such as their lending criteria or personal circumstances that have changed.
You may be a First Time Buyer in Sheffield, or you might be thinking of moving to the area and are looking for excellent mortgage advice. If this is your situation, we believe that you will benefit from our dedicated mortgage advice service in Sheffield.
We offer a free initial mortgage consultation with one of our expert mortgage advisors in Sheffield, so please get in touch today and let us get the ball rolling on your mortgage application so that we can secure you an agreement in principle.
Lenders will look at various aspects when it comes to your bank statements. Their main job is to decide whether or not you are the kind of person that they are going to want to lend to. They want an applicant who can manage their finances responsibly and is going to be able to keep up-to-date with their mortgage payments.
Regarding your bank statements and what lenders look for on them, let’s take a look at gambling transactions and how they can sometimes affect your ability to get a mortgage in Sheffield.
Whether it’s a once every couple of months or a regular occurrence, gambling in large amounts can often trip your mortgage application up. This also applies to you if you are frequently gambling. Whether you are losing money or not, you may be declined due to your gambling habits.
At the end of the day, no one can tell you how to live your life, although, it is always advised that you ‘gamble responsibly’. Remember that a lender needs an applicant that doesn’t oppose risk to them. They need someone who’s going to meet their mortgage payments month on end; they want no risk of repossession.
Put yourself in your lender’s shoes, would you lend money to someone who has the tendency to gamble frequently with large sums of money or someone who’s always on top of their payments and doesn’t gamble their money?
It is in no way illegal to gamble, therefore, the occasional gambling transaction on your bank statements will not mean that you’ll get automatically declined. They will assess the gambling transactions though, looking at whether they are reasonable and responsible. They will look at how frequent you gamble, the size of the transactions and how they relate to your income.
If you are infrequently gambling in small amounts, it should make no significant difference to whether you get accepted or not. Lenders may even just brush it under the rug. On the other hand, if you are a regular gambler, their viewpoint may be the opposite. You can’t be eating into your overdraft due to gambling either, it will reflect badly on your application.
Lenders will examine your bank statements carefully. They will be looking for lots of different things, but ultimately, they want to see your bank statements and get the confidence that you are a reliable applicant that they’d be willing to lend to.
If you are exceeding your overdraft limit month on month, your lender may begin to think that you struggle to take care of your finances. It’s likely that they’ll be okay with you doing so, however, we always advise that you be wary. They will also look for any other existing credit commitments that you have; it could be a credit card or a loan, etc. This is an important factor as you need to compensate a set amount each month to pay back the loan – the same as mortgage payments.
You should also look out for credit transactions from pay-day loan companies or otherwise known as “undisclosed” loan repayments. These can cause problems if you told them that you had no further loans to account for but then they appear on your bank statements. You need to be transparent with your lender and tell them everything prior to them viewing your bank statements.
As a mortgage broker in Sheffield, we will always say that the easiest way to improve things is to be sensible and if it’s possible, plan ahead.
Usually, your lender will ask for a minimum of three months bank statements. So, in theory, before you apply, you can get yourself prepared and maybe tone down on things such as gambling and dipping into your overdraft. All the little things can sometimes help.
If you use a mortgage broker in Sheffield like ourselves, they will help you with this whole process and recommend the option that will benefit you the most. There are some specialist lenders out there that will ask for fewer bank statements than others, a mortgage broker may be able to help you access one of these deals.
At the end of the day, the message to remember is to gamble responsibly and take care of your finances!
If you are a first time buyer in Sheffield and this is your first hands-on experience with the mortgage world, you should definitely get specialist mortgage advice from a mortgage advisor in Sheffield. They will guide you throughout the whole mortgage process and help you with your application and get you on track.