A “mortgage in principle,” which is also called an “agreement in principle” or a “decision in principle,” is a helpful tool when you’re thinking about getting a mortgage in Sheffield. It gives you an idea of how much money you could potentially borrow before you officially apply for a mortgage.
To get an agreement in principle, the lender usually checks your credit information. This is called a “soft” credit check, which doesn’t really affect your credit score. The good thing is, you’re not committed to anything after you get this information.
At Sheffieldmoneyman, we can usually arrange this for you within a day after your first mortgage meeting. Remember, an agreement in principle is valid for about 30 to 90 days. This gives you enough time to search for a suitable property.
If this period ends and you haven’t found a property yet, don’t worry. We can help you renew your agreement in principle so you’re all set for your mortgage journey.
To secure a mortgage agreement in principle in Sheffield, you typically have two main routes. You can directly communicate with a mortgage lender, or you can reach out to a trusted mortgage broker in Sheffield, like us.
As an experienced mortgage broker in Sheffield, we can liaise with the lender on your behalf to obtain this important document. Reaching out to our mortgage advisors in Sheffield is simple. You can either fill out our Get Started form online or give us a call.
This initial contact will allow you to schedule a complimentary mortgage appointment. During this appointment, you’ll have the opportunity to talk to an expert and receive your agreement in principle within just 24 hours.
To progress and secure this document, you’ll need to provide evidence of your income, employment details, credit history, and other personal information.
These details will be used to evaluate your eligibility for a mortgage in Sheffield. Additionally, this process will give you an estimate of the amount you might be able to borrow.
Before you start searching for properties in Sheffield, it’s a wise step to consider obtaining a mortgage agreement in principle.
This preliminary document gives you a rough idea of how much you could borrow. This helps you avoid wasting time looking at properties that might be beyond your budget.
Furthermore, having an agreement in principle can provide you with an upper hand when it comes to making an offer on a property. Sellers and estate agents often perceive applicants with an agreement in principle as committed and serious buyers.
This could give you an edge over other potential buyers who haven’t taken this step. It’s important to understand that an agreement in principle doesn’t guarantee that you will definitely get a mortgage, but it’s an invaluable tool during the home-buying process.
It helps you navigate the journey with a clearer understanding of your potential budget and demonstrates your seriousness to sellers and agents alike.
When a mortgage advisor in Sheffield helps you in obtaining an agreement in principle, they will require specific personal details from you. This information is needed to relay to the mortgage lender, helping them determine the feasible amount they can lend you. The key details include:
It’s worth noting that mortgage lenders might also request additional information from you, such as bank statements or proof of income, particularly if you’re self employed in Sheffield. These documents could be required before the lender makes a final decision regarding your loan application.
An Agreement in Principle (AIP) is a document from a mortgage lender in Sheffield that provides an indication of the amount they might be willing to lend you, based on the details you’ve supplied.
However, it’s important to understand that an AIP doesn’t guarantee a mortgage offer, and it doesn’t establish a legal contract. On the other hand, a mortgage offer is an official commitment from a mortgage lender in Sheffield.
It signifies their intent to provide you with a mortgage, after conducting the necessary checks. This offer is a significant step in the mortgage process, as it indicates that you’re nearing the final stages. Once you receive a mortgage offer, it becomes legally binding when accepted.
The offer outlines the terms and conditions agreed upon for your mortgage, encompassing the interest rate, mortgage term, and any associated fees.
To reach this stage, you’ll need to furnish the mortgage lender (potentially through your mortgage broker in Sheffield, if you’ve taken that route) with more comprehensive information and undergo a thorough credit check. Additionally, the mortgage lender will usually require a property valuation.
Upon receipt of your mortgage offer, you’re positioned to proceed with your property purchase, as long as you fulfil any conditions specified in the offer.
In essence, an Agreement in Principle is a valuable tool for understanding your potential borrowing capacity, while a mortgage offer is a formal commitment from the lender, binding both parties to the stipulated mortgage terms and conditions.
In nearly all situations, obtaining an agreement in principle for a mortgage is unlikely to significantly affect your credit score. This is primarily because the vast majority of mortgage lenders opt for a soft credit check during the AIP process.
This type of check doesn’t leave a visible mark on your credit report. It’s important to be aware that some mortgage lenders might conduct a hard credit check as part of the agreement in principle procedure. Unlike soft checks, hard checks can leave a visible record on your credit report.
This can potentially impact your credit score, particularly if you’ve applied for multiple AIPs with different mortgage lenders within a short timeframe. It’s crucial to remember that an actual mortgage application typically involves a hard credit check, which can indeed influence your credit score.
Given these considerations, it’s generally advisable to be cautious about the number of mortgage applications you submit.
It’s a good idea to apply for an agreement in principle only when you are genuinely committed to moving forward with your property purchase. This approach can help you manage and maintain your credit score effectively.
Obtaining an agreement in principle comes with several advantages when you’re applying for a mortgage in Sheffield.
First and foremost, having an agreement in principle provides a clear picture of the amount you could potentially borrow. This enables you to narrow your property search to a realistic price range.
By doing so, you avoid wasting time and potential disappointment that might arise from considering properties beyond your means. Secondly, an AIP grants you a significant edge over other potential buyers when it comes to making an offer on a property.
Sellers are more inclined to consider offers from buyers with an AIP, as it demonstrates genuine commitment and active pursuit of mortgage approval. Lastly, having an AIP in Sheffield can streamline the mortgage application process once you’ve identified a property you wish to purchase.
This is because the mortgage lender has already conducted an initial evaluation of your financial situation and eligibility. As a result, they may be able to expedite your mortgage application in a more efficient manner.
Overall, possessing an agreement in principle proves highly advantageous for anyone seeking to buy a property. It not only clarifies your borrowing capacity, but also positions you ahead of other potential homebuyers and can expedite the mortgage process significantly.
Acquiring a mortgage agreement in principle usually comes at no cost. It’s essentially a statement provided by a mortgage lender, offering an estimate of the amount they might lend you based on the details you’ve supplied.
It’s important to note that obtaining an agreement in principle doesn’t involve any financial commitment on your part.
If you discover that your application for a mortgage agreement in principle has been declined, it indicates that the mortgage lender has determined you ineligible for the requested mortgage amount. Various factors can contribute to this outcome.
When faced with this situation, it’s crucial to understand the reasons behind the decision. You might need to evaluate your financial status or credit history, and in some cases, furnish additional information to the mortgage lender.
In certain instances, it could entail exploring other options and seeking a mortgage lender who is more aligned with lending close to, if not the full amount you intend to borrow. Importantly, being declined for an AIP doesn’t automatically translate to rejection for a full mortgage application.
During a complete application, the mortgage lender conducts a more comprehensive assessment of your financial situation and credit history. This might lead to an offer for a different amount or a distinct mortgage type.
Additionally, it’s worth noting that making multiple agreement in principle applications with different lenders can have an adverse impact on your credit score. Thorough research prior to applying is essential.
Having a mortgage broker in Sheffield by your side can greatly help in finding the right mortgage lender, potentially saving you from multiple attempts.
Whether you’re considering first time buyer mortgages in Sheffield or home mover mortgages in Sheffield, it’s advisable to engage with a mortgage broker in Sheffield. This will enable you to secure your agreement in principle before making any property offers.
Normally, we’re able to secure an AIP for you within a mere 24 hours after your initial mortgage consultation. This swift process can provide valuable assistance as you embark on your mortgage journey.
Book your free mortgage appointment today, and we’ll work diligently to ensure you obtain your agreement in principle as promptly as possible. Begin your mortgage journey with the support of a mortgage broker in Sheffield by your side.
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.
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.
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.
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.
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 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.
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.
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 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!
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.
One critical factor when moving home in or around the Sheffield area is to consider where you want to locate. If you’re looking for this dream home or something to let out, you also need an ideal area. It would help if you considered what the area is like, what is there, and what is a priority.
To help you better understand the kind of place you want to find, we’ve compiled a list of different factors that some first time buyers in Sheffield, home movers, and landlords looking for buy to let mortgage advice in Sheffield when trying to find their ideal property.
It is important to develop an idea of the type of area you want to move to, as this is somewhere you will live for a good time, maybe even turning it into a family home further down the line. If you are someone who enjoys being at the heart of it all, city life is more suited for you. Otherwise, living in the countryside may be more appropriate if you prefer a quiet life.
In all areas, you’ll find pros and cons to either choice, so be sure to think a lot and research the location before you put your heart into a potential new home.
Transport links to and from your potential new location are crucial factors to consider. For example, if you are socialising with friends or family, do not work from home, or go out shopping, you may need easy access to the transport links needed.
Not to mention the price of each means of transport, depending on the location and regular use. How long does it take for you to get to each destination if you have a car? How much fuel will be? Where are the nearest gas stations?
For those who have children, you should see what schools are available nearby. Every parent wants to find the right school for their child. It is essential to learn about the various schools nearby to determine which school is most suitable.
If you do not have children now, but plan for the future or have no plans at all, it may be beneficial to look for it, just to prove yourself in the future.
When you plan a place to live, you may have certain facilities near you. We recommend writing down a list and separating what you need from what you want.
An example of this would be looking to have a gym in the vicinity but doing so could mean you have to live in an area without the essential shops you need regularly. You probably need more shops for your general life, so it could be something to priorities while finding an area near a gym is an additional bonus.
The distance between where you could live and where your family and friends are currently living can affect where you are. Some prefer to keep them nearby, so they have this support network if they need it.
On the other hand, some prefer to keep to themselves with their loved ones at a distance, prioritising staying at home over going out and socialising with people regularly.
When making purchases, we all want to know we are getting substantial value for money. Figuring out this for your home will depend on the area that you are looking to move to.
Sometimes a better option is for you to look for a cheaper property to start with, although this could mean compromising various features or nearby facilities that you would have preferred to have had.
The local community can have a significant impact on your home life experience.
As established, some people prefer a quiet life. This may require a few nearby residents who keep themselves. Others like to have a thriving and busy community, usually where everyone knows and communicates regularly.
Talk to your real estate agent and find out what the area is like. Community Facebook pages or locally run websites are usually quite common these days, so they are worth looking for to get a rough feel for the area.
Some home buyers may be moving because of a new job or career plan. This is what we have heard from customers a lot and is a huge factor. You need to look at the distance between your new home and your workplace.
If you are working in a home office and only visiting the office sporadically, would you be fine with life a bit further out? What is the space in the property? Is there even a room for the home office?
Those who will be looking for a job once they have already moved, do some research on local companies, and compile a list of leading employers to apply for.
You will find many different types of real estate available to you in the open real estate market, with these varying depending on where you are looking. Some prefer end-item properties with a garden to enjoy, while others prefer a modern apartment or studio apartment.
Make sure you have a good look at all the available options, undertake some property viewing and get a promising idea of the type of property you would prefer to live in.
Any proposed local investment would be helpful to find information on, especially if you are looking to build a life within that home and stay there for quite a while. Online search will be the best port of call when looking to find any future investments. It’s important to consider whether these will benefit or detriment your lifestyle.
Again, those who prefer quiet life in the country could find their dream scenario turned into a nightmare if an important new housing development is planned nearby.
Hopefully, you are now better equipped to find a place to call your home by reading our list. When the time comes to make offers on property and get yourself a mortgage, get yourself booked for a free mortgage appointment. We would be happy to help!
We have a dedicated team of mortgage advisors in Sheffield available from early until late throughout the working week and weekend, subject to availability. Whether you are a first time buyer in Sheffield or home mover, we can’t wait to hear from you.
When you’re moving home in Sheffield, you may come across all sorts of different hurdles and obstacles along the way. Whether it’s something to do with your offer not being accepted straight away or your application being stuck in the pipeline, there’s always something.
A common problem that homebuyers come across are property chains. Getting stuck in a property chain can often slow down, if not put to a halt, your home moving journey.
A property chain is a string of house purchases that rely on one another to complete the chain. If you’re a first time buyer in Sheffield, you will always be at the start of the chain, whereas, if you are selling a property, you’ll be at the end.
Picture it as an actual chain linking houses together. For a buyer to move into the property that they’re buying, they need to wait for the seller to move out first. However, the seller is in the same situation as you! They too are waiting for their seller to move out so that they can move in.
Depending on the property chain that you’re linked with, the link could go on and on. If you’re lucky, you may only have a couple of purchases linked with your property chain or even just one!
The answer to this question is completely situational. You don’t know what situation that your seller’s seller is in (complicated… we know).
You may not even know that you’re in a property chain, the whole process could run smoothly, and you wouldn’t know any different. Everyone hopes for this situation, who doesn’t want a quick and simple moving home process.
If things don’t go your way, you may be stuck in a waiting scenario. As a mortgage broker in Sheffield, we recommend that you begin your process at least six months of preparation. This means that you have plenty of time to search for that dream home and allowed time just in case you get stuck in a property chain.
Unfortunately, if you’re linked with a property chain and one purchase doesn’t go through, the whole chain behind it could suffer. When a property chain breaks, you will have to wait or look for another property.
If the property chain breaks at your purchase, if you act quickly, you may be able to stop it from breaking the entire chain. If you’re selling, you could contact the people planning to buy your property by contacting your estate agent; this way, you can inform them of the situation sooner rather than later.
Whether it’s something wrong on the seller’s level or on your level, there are still ways to prepare for a break in the property chain. For example, you could try and buy a property that isn’t in a chain or in a small chain, sell your property and rent temporarily or buy a new-build property, etc.
For more moving home mortgage advice in Sheffield, contact our expert mortgage advisors in Sheffield today.
A property chain can break for many different reasons. It could happen at your’s, your seller’s or even your buyer’s level:
These are just a few examples, there are many more reasons. Depending on the length of the property chain that you’re in will depend on how drastically these situations impact your ability to move home.
It can be hard to avoid a property chain; especially if you’re buying a busy time of year or when the market is hot, for example, January.
Moreover, you could do your research and talk to your estate agent so that you know exactly what your position is during the application stage. Arranging your finances as early in the process as possible would be smart. The more that you are prepared for things that could wrong, the better.
If you manage to avoid a property chain (also known as ‘chain-free’) you should be able to continue straight through the moving home process. This is assuming that you provide evidence that you can afford a mortgage and provide a deposit for the property.
If you are buying and selling your home, let our moving home mortgage advisors in Sheffield help you through your process.
You can book your own mortgage appointment for free online. Get started today and we can help you get through the moving home process stress-free. We can’t wait to hear from you.
If you are considering buying a house, don’t be spontaneous. Taking out a mortgage requires careful planning and preparation over a long period.
That said, you will be surprised at the number of people we deal with regularly, who are more accustomed to their buying behaviour and have therefore neglected to prepare for a mortgage in advance.
Many reasons why a first time buyer in Sheffield like yourself jump into such a significant financial commitment on a whim. Some of the most common including;
Disadvantages include leaving buyers open to various potential issues with their mortgage. Some common mortgage hurdles we have faced with customers include:
Savings can be pretty tricky. Especially if you are renting at the moment, balancing a constant income and significant outgoings and essential purchases each month limit what you can save in-between.
The good news is that family members can help via the use of a Gifted Deposit. Some first time buyers in Sheffield ask family members to try and help whenever they can. If a family member is looking to help. We recommend it’s best to give them as much notice as possible to get their finances in order!
Getting an up to date credit report is not an incredibly difficult task. You may have seen TV adverts for various credit reference agencies, but we recommend Check My File, as they can collate the data from these sources into one for you to compare.
Once you have downloaded your credit report, you can send it across to a mortgage advisor in Sheffield, who will look at this for you. We see these reports daily, and we know what sort of things the lenders like to see and what they do not want to see.
When a lender looks at your bank statements, lenders would rather not see lots of unnecessary bank charges or gambling transactions on your bank statements. You will need to provide the lender with a reasonable explanation as to what has been happening on your account and how you plan to resolve this going forward if any issues arise.
For customers who are self employed in Sheffield, we understand that Accountants try to minimise the tax liability for their customers. That said, if your year-end has come around, then there is nothing to stop you from submitting another set of accounts earlier than you might typically do.
Especially if you think your business has grown in the last 12 months. Some lenders consider ignoring previous years’ figures if the latest ones are favourable.
No matter your circumstances! If you are still facing one of the problems above, it’s possible that we may be able to help you get in touch. Our team of expert mortgage advisors in Sheffield are here to try and help.
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.