Lee Underwood, Author at Doncastermoneyman

10 Factors to Help you Decide Where to Live in Doncaster

Home Buyer Mortgage Advice in Doncaster

If you are local to the Doncaster area or are considering moving outside of Doncaster, one of the important factors when Moving Home in Doncaster is knowing the area you are hoping to live in. 

It isn’t as easy as just picking a random property on the street say “that ‘ll do”. You need to look at how the area currently looks, what facilities are close by, and if the property has everything you need.

To help give you a better understanding of things to look out for when picking the ‘right’ area, we have put together a detailed list of the different types of factors that you, as a home buyer, need to look into when purchasing a property in Doncaster.

1. Busy town or relaxing countryside?

First thing you need to do is come up with a list of the type of area you would like to start living in, the way you need to look at it is you’ll be living within that property for a long time, so the area is very crucial.

Since Doncaster is a minster town, it’s ideal for those who prefer an urban lifestyle. But, if you prefer country life, you’ll need to move slightly further towards the outer areas of Doncaster.

2. Transport Links

If you were planning to move more to the outside of Doncaster, rather than closer to the town center and don’t drive, then you’ll need to make sure there are plenty of transportation links to choose from.

Transportation links are key for the area especially if you rely on them for work, seeing family or friends, or going away for a night out. Doncaster has plenty of transportation links, you have the choice to go on foot, by taxi, train, bus, and cycling. Each option will allow you to commute to and from the town itself.

Whilst having those link are positive, there is a cost element. What type of public transport are you taking? How much does it cost to get there and which method is the most cost-effective? Especially when you’ll soon have to pay off your mortgage monthly.

If you are driving, how much fuel will you need to pay per week? Especially with rising fuel costs, but luckily Doncaster is a minster town, but all these are important factors still need to be taken into consideration when making a decision.

3. Schools & Education 

If you have any kids or planning to start a family, you should do some research on the closest school area. Review the school league tables and any Ofsted reports, this will help you get a better idea of what the school is like.

4. Nearby Facilities – What You Need Vs What You Want 

Always make a note of the facilities close by, epseically the ones you particually like. For example if you would like to have a particular shop, take a look at the local area to see what is there. Closer to the center of Doncaster, you are likely to find most of what you are looking for.

Of course if you’re living further away from Doncaster, you may need to prioritise what is essential, but you will have the benefit of these possibly costing less. Remember that essential shopping probably outweigh treats like a gym.

5. Friends and Family 

Depending on how far away or close you are to family or friends, that will be a huge factor in the area you live in. Many will want their family and friends nearby, especially if they have kids. Whereas others may prefer a quiet life, only socialising occasionally.

Going back to transport links, even if you are a little bit away from family and friends, you may still be within traveling distance, due to the number of transport options around the area.

6. Is the property good value for money? 

Depending on the area you are looking to live in, will dictate Doncasters property prices. Some choose to look to go for a cheaper property initially, compromising on features and facilities they would’ve liked, in order to save some money, before moving later down the line.

7. What is the community like? 

It’s the people that make the area, some may prefer a quieter life, staying to themselves, whereas others may prefer to have a much busier community. We recommend speaking with an estate agent to learn more about what it’s like.

With the uprise of technology, most places have a community Facebook page or local newsletter to take a look at, you can normally find a lot of information online.

8. Change of Career 

If you are moving to Doncaster because of a career change, make sure to look at the level of distance between your new home and your new workplace. You may find that most people do commute to work in Doncaster from the outskirts, with plenty of transport links to choose from.

This makes quieter, more affordable living a much more viable option. Whereas others prefer to work from home, so this may reduce the need to travel to work.

9. Property Type 

Many different types of property are available on market, with the area you are looking to buy in is a factor in which type is more widespread. Some may prefer to live on an end-terrace with a garden to chill, while others would choose to live in a new build, flat or studio apartment.

Just double-check to make sure you’ve reviewed all of the different options. Attending viewings is a good way to get a feel for the property and the sort you would prefer to live in too.

10. Local Developments 

Make sure to see if there are any future improvements in the area you’re hoping to live in, especially if you’re looking to live there for a number of years.

Online research will definitely be worth your while when you are looking to find any future investments. It’s important to consider whether or not these will be beneficial to you and your lifestyle.

If you prefer a quiet country life, your ideal perfect world may be turned upside down if there’s any plans for a sudden big housing development nearby.

Moving Home in Doncaster

When the time comes to start making offers on a property and getting yourself a mortgage, it is worth getting yourself booked in for a free mortgage appointment. Our fast & friendly Mortgage Advisors in Doncaster will be glad to help!

We work from early until late, every day of the week and including some weekends and bank holidays, subject to appointment availability. Whether you need help as a First Time Buyer in Doncaster or are Moving Home in Doncaster, we will be more than happy to help you along with your mortgage journey.

Debt Consolidation Remortgage Advice In Doncaster Case Study

Remortgage to Consolidate Debt | MoneymanTV

Debt Consolidation Mortgage Advice in Doncaster

What is debt consilidation?

To a greater or lesser extent, some people will find themselves in debt. For whatever reasons, it can quickly turn into a dire situation. When you find yourself in these circumstances and have paid all your bills off at the beginning of the month, it can often mean there isn’t much disposable income left.

One option that some applicants may have the option of is a debt consolidation remortgage in Doncaster. As an open and honest Mortgage Broker in Doncaster, we’ll take a look at one of these in practice, via a case study.

Know Your Limits – This Will Help in the Long Term

Nicole was a divorcee who was living by herself, with her children having left home to start their lives. Her debt had started to gradually build its way up because of her legal bills after the divorce. This grew over the years, leaving her with few options outside of living on one income with unreliable maintenance from her ex-partner.

Sometime after, her youngest daughter became pregnant. As any loving parent would, she wanted to try her best to help her out financially, although it could be strongly argued that she wasn’t in the best position to do so.

Luckily by this point, Nicole had already paid off her mortgage years prior, so she had the property there as an asset to potentially borrow against. She was bringing home around £1,100 per month, and her credit commitments were taking up the majority of this income.

She always kept up her payments on credit commitments, but she had no emergency fund to rely on. Whilst Nicole’s credit score wasn’t as bad as it could’ve been, she was no longer able to obtain new 0% credit cards to transfer her balances.

One of Nicole’s friends recommended that she speak to a qualified Mortgage Advisor in Doncaster to figure out if there was any way that they could help to improve the quality of her finances, and by proxy, her life, this is where we came in. 

A Personal Loan isn’t Always the Easiest Option

When I spoke to Nicole, her mood was low and she wasn’t particularly motivated. She had cut back on all of her luxury spending, and it was abundantly clear that she was desperate to take ownership of her financial situation before it got any further out of hand.

Our team explored the possibility of Nicole taking out a personal loan, but her debts had crawled too high for that to work. Nicole had no family members who she could turn to for help and she wasn’t able to downsize. After much discussion, we agreed the right way forward would be to Remortgage in Doncaster on her property to pay off the debts and reduce her outgoings.

Reliability – A vital Trait for Lenders

After some searching, we managed to find a lender that was a right fit for Nicole’s requirements. It has to be said though, that because of her low income, it was rather difficult to find a lender who was willing to lend her enough. We managed to help her obtain an Agreement in Principle, but regrettably, when we submitted the formal mortgage application, it was declined.

The case was declined because the assigned Underwriter who was assessing their situation felt that Nicole had been using cards as a means of paying off her other cards and not then closing down the cards in question. When she had transferred balances, there was considered to be a high risk that this would keep occuring and she would rack up debts again.

Nicole was understandably devastated. She understood the concerns, but to her, she had accepted that she had a problem, and by getting in contact with us, she’d taken the best step forward to fixing her situation. To her, their risk was minimal – the loan to value was under 40%, she was reliable with her monthly payments, and if the remortgage was successful, she could have ended up an amazing £500pm better off.

All of the above may have been true, but unfortunately clients don’t always appreciate that repossessing a proper is the last thing a lender ever wants to do. It reflects poorly on the numbers they are required to report on a yearly basis. In the event of this happening, they have a major stress in having to secure the property, insuring it, marketing it, selling it, and paying the equity surplus (if any) back to previous owner of the property.

Because of these reasons, if there is reasonable doubt, then an Underwriter has the discretion to decline an application, even if the case technically falls within their published lending criteria.

Being Declined Doesn’t Mean Failure – Always Room for Improvements

We are proud of our hard work and always aim to get our recommendation right the first time, though this time it didn’t go as we’d hoped. This was due to the Underwriter’s adverse comments at the full application stage. That being said, we still knew that this remortgage wasn’t as risky as the mortgage lender had said it was, and that with the right lender on side, it would be the right path to take.

Nicole perhaps felt like she wanted to give up, but still we went back to the planning table and began the search for a new mortgage lender. Sure enough, we found one who fit what we needed. Utilising the information we had gathered from the previous mortgage lender, we were able to provide better supporting comments this time around and thankfully, our efforts were met with great success.

We’ll keep you on track after you’re back on track.

Nicole didn’t take this step lightly. In doing this, she has secured debt that was previously unsecured, though she may end up paying back more interest overall, depending on how quickly she can get the mortgage paid off.

On a positive note though, in the short term, this has worked out a treat for Nicole. She now has had the burden of debt firmly relieved from her shoulders, she has an improved credit score to her name, and she now has the ability to start saving a bit more money per month.

The savings we were able to help her make amounted to over 50% of her net take-home pay monthly, and it has drastically changed her life. Upon the completion of the remortgage, Nicole made sure that she cut up all of her credit cards except one to use for emergencies only and nothing else. After hard work and perseverance, her financial life is finally back on track.

Speak to a Mortgage Advisor in Doncaster Today

If you are like Nicole and are struggling to deal with debt, but are a Homeowner with equity, please do get in touch to discuss your options, ideally before the situation gets too far out of hand. We are available from early until late, all throughout the week.

Book your free mortgage appointment to speak with a Mortgage Advisor in Doncaster today. Why wait, the earlier you take back control of your finances and look into Remortgage Advice in Doncaster, the better your personal and financial life will be.

The Pros & Cons of Using a Mortgage Broker in Doncaster

Taking that first step into the mortgage world, or starting the mortgage process for the first time, you may find the entire experience a bit daunting. There are many options for homeowners and homebuyers to take for themselves, which is why it’s best to get it right the first time. This is something that can be achieved with the help of an expert Mortgage Broker in Doncaster.

Depending on what you are looking to achieve and the current situation, we will provide open and honest Mortgage Advice in Doncaster to help First Time Buyers in Doncaster through their mortgage journey. We understand the process can be complicated, which is why obtaining expert Mortgage Advice in Doncaster will be very beneficial. Here at Doncastermoneyman, we are confident in our ability to search 1000’s of deals to find you the most suitable mortgage.

In this article, we have gathered information on why approaching a Mortgage Broker in Doncaster will be more beneficial, rather than going directly to a mortgage lender themselves or their local bank. 

Why go to a Mortgage Broker in Doncaster? 

Cost-Effectiveness 

You may believe that going direct and finding your mortgage deal will save you money, but that’s not the case. Some Mortgage Brokers in Doncaster may charge a fee on the end result; however, this does depend on the company.

It might be more cost-effective if you have a straightforward case, however, for those with a complex case, it’s worth going to speak to a Mortgage Broker in Doncaster like ourselves. Not going to an expert can result in you ending up on the wrong deal or being declined for a mortgage. Having constant rejection will harm your credit score which can impact your chances of applying for a mortgage next time.

Having a devoted Mortgage Advisor on your case will be benifical, our team well be by your side throughout the entire mortgage journey, to try and achieve your mortgage goals. We aim to recommend you the most suitable deal first time, saving you time and money. 

Local Bank Branch Relationship

Having brand loyalty can be one of the reasons why many customers decide to turn to their local bank directly, instead of going elsewhere. Previously before the increase in technology and online banking, customers would approach their local bank to obtain a mortgage.
 
Their branch would provide an expert and someone knowledgeable to supply them with the help and guidance they needed. Nowadays, the process is a lot different with credit scoring being introduced.

Because of this, your branch manager won’t physically go through the case themselves. Instead, a complex online system will determine whether or not you are eligible for a mortgage. Now, regardless of which bank you are with even being a loyal customer, your local bank may still decline your application. 

Exclusive Mortgage Products

Going direct will only give you access to limited products. Because they can only offer you deals from their own company, nobody else’s. Not to mention, you don’t find mortgage lenders in banks, there are many more mortgage options available to choose from. That’s why the deal that the bank offers you might not be the most suitable deal, there could be a much better deal elsewhere.

Receiving expert Mortgage Advice in Doncaster will be the best way to find the most suitable deal. One of our expert Mortgage Advisors in Doncaster will be able to go through your case and find you the most suitable deal from our large panel of lenders. This is another benefit of approaching a Mortgage Broker in Doncaster instead of just a bank.

Approaching a Mortgage Broker in Doncaster can provide you with exclusive deals that you can’t find elsewhere. There will be a good selection of options when you go to a Mortgage Broker in Doncaster, we have helped many first time buyers, home movers, or applicants who are wanting to know their Remortgage options.

Changes to Regulation & Consumer Protection 

After the effects of the 2007-08 credit crunch, a massive improvement in the mortgage market needed to happen. One of these changes was stated in the 2014 Mortgage Market Review, which instructed lenders to no longer sell mortgages to their customers without extensive, expert Mortgage Advice in Doncaster.

People could no longer approach a bank to tell them they wanted a mortgage and be instantly granted with no background checks. Not every staff member in the bank could grant you a mortgage, which was something that happened regularly regardless of if they were qualified to do so or not.

The new changes also bought in consumer protection, which a bank wouldn’t have given you. Now, you can place a complaint with the Financial Ombudsman in the event you feel misadvised. Another way to make a claim is through the Financial Services Compensation Scheme.

Having this in place means reassuring a customer that they will be safe and advised accordingly regardless of what mortgage journey they take. This applies to both mortgage brokers in Doncaster and other mortgage lenders. 

Book an Appointment with a Mortgage Advisor in Doncaster 

Approaching a bank instead of a Mortgage Broker in Doncaster might be more time-consuming. If you approach a bank, it can take days, weeks, or months to try and talk with someone at a bank. Furthermore, when you do begin the process, you’re not updated as much through the mortgage journey.

Here at Doncastermoneyman, our dedicated team of Mortgage Advisors in Doncaster will get in touch with you at the time that is best for you, we understand that you may have a busy schedule. This is why our team works, from early until late, 7 days a week, including weekends and evenings. Our Mortgage Advisors in Doncaster will be available to answer any of your questions and keep you updated. You might find us contactable on some bank holidays.

We tend to find sometimes you may find yourself attending your appointment on the same day, however, this doesn’t have to be the case. You can speak to a member of our time around a time and day that suits your availability.

Every customer is entitled to a busy lifestyle. This is why our Mortgage Advisors in Doncaster are available throughout the week, so you can book your free mortgage appointment around the day and time that suits you best, subject to availability.

Providing open and honest Mortgage Advice in Doncaster is a core value within our company. If you are at the very start of the process or towards mortgage completion, our friendly team will always keep you in the loop. If any changes arise, your Mortgage Advisor in Doncaster will get in touch as soon as they can. 

Handling of Complex Scenarios 

Through our expertise in the mortgage industry, we have found some cases can be slightly more complex than others. Below are just some popular scenarios that can be a bit more difficult than a straight forward case: 

  • Mixed Deposit from saving and gift.
  • Zero Hour Contract Workers, will there be a consistent income?
  • Looking to Make a Second Purchase, can they afford to make that additional purchase? 
  • Self Employed Mortgage with No Fixed Income, this can be challenging for Self-Employed applicants. 
  • Poor Credit History, a lender will not look favorably upon an applicant who has mismanaged in the past. 
  • Affordability, can they afford a mortgage full stop? 

Back in the day, mortgage lenders could easily compete with one another by providing exclusive deals that were better than the others. Now, the main change in which deal you go with is if you match their lending criteria or not.

You might find a cheaper deal but it may not match your criteria. In order to see if you are eligible to obtain a mortgage, the mortgage lender carries out a hard search, which will result in leaving a footprint on your credit file.

When you apply for a mortgage with a lender and were declined an agreement in principle, this may harm your credit file. The most frustrating thing about it all is that it’s very unlikely you will be given zero reasons as to why you were declined in the first place. As an open and honest Mortgage Broker in Doncaster, our team will be able to go through your case and advise you on ways to increase your chances of being accepted.

Our mortgage Advisors in Doncaster

With access to a vast range of lenders, our team should be able to find you the most suitable deal that perfectly matches you up with its criteria and then begins to obtain you an agreement in principle. If you obtain an agreement in principle through Doncastermoneyman, this will usually be sorted for you within 24 hours of your free mortgage appointment.

Just remember, having an agreement in principle doesn’t guarantee you have secured the property you were after. It does, however, make your credit file much safer by having an expert go through it beforehand. Our team of Mortgage Advisors in Doncaster aims to get their recommendation right the first time. 

In Conclusion; Should I use a Mortgage Broker in Doncaster? 

There are advantages and disadvantages of approaching a Mortgage Broker in Doncaster. The difference is how efficient you want your service to be, as well as what you are hoping to achieve.

As a devoted Mortage Broker in Doncaster, our team has extensive experience in dealing with a wide range of customers who go through the mortgage journey. Whether you are taking your first step into the mortgage world, coming towards the end of their fixed period, or looking at your remortgage options in Doncaster, our team are more than happy to help!

Book yourself in for a free mortgage appointment or remortgage review to speak with an expert Mortgage Advisor in Doncaster. Our team are here to help with your mortgage goals, with availability that suits you, subject to eligibility. 

Do I need a Mortgage Advisor in Doncaster? 

No matter, if you are a First Time Buyer in Doncaster looking to put your foot on the property ladder or wanting to know your remortgage options. It’s always beneficial to look into Mortgage Advice in Doncaster as it can help you in the long run to obtain a mortgage, saving you time and money.

Speaking to a Mortgage Broker in Doncaster can help make up the difference between an application getting accepted. Whereas going independent could lead to your application getting rejected. Here at Doncastermoneyman, we search 1000’s of deals, saving you time and your money to make sure you get the most suitable deal to tie in with your circumstances.

What does a mortgage advisor in Doncaster do? 

A devoted Mortgage Advisor in Doncaster’s job is to find you the most suitable mortgage deal tailored for your circumstances. Here at Doncastermoneyman, our advisors are flexible around your work and family which is why we’re open 7 days a week until later.

Our Mortgage Advisors in Doncaster will be with you every step of the way, they’ll help you overcome hurdles that crop up, like for example, taking the stress away from property surveys and valuations.

Why look into mortgage advice in Doncaster? 

First Time Buyer in Doncaster may find the experience daunting. That’s why our teams of Mortgage Advisors in Doncaster can walk you through every step, from initial mortgage enquiries to completion. You’ll be kept in the loop at all times.

Perhaps you are looking for Mortgage Advice in Doncaster because you are wanting to know your remortgage options. Some people choose to remortgage for home improvements, purchase their next property, or look to borrow additional funds.

If you’re wanting to take the initial leap and become a landlord or are experienced in doing this already, our Mortgage Advisors in Doncaster have a lot of industry knowledge on Buy to Let Mortgage Advice in Doncaster too.

Benefits of using a mortgage broker in Doncaster 

The main advantage when using a Mortgage Broker in Doncaster is to help the entire process of buying a home go as efficiently as possible. As sometimes buying a home can be an extremely stressful experience for some applicants.

Our customers like to know they have got someone on their side. On hand to respond to all their questions and queries, we will also help you with:

  • Provide detailed information about the various mortgages available and the different types of deals. 
  • Give you expert mortgage advice in Doncaster on the maximum amount you can borrow. 
  • Have access to special mortgage deals that are not available on the open market. 
  • Help you get ready for your application to increase your chances of success. 
  • Try and save your money by searching for a mortgage with lower interest rates and fees.

Our mortgage advisors in Doncaster aim to help try to maximise your chance of being accepted the first time.

Free Mortgage Appointment 

Open & honest Mortgage Advice in Doncaster 7 days a week, our team are proud to have the quality of service we provide to our customers. We put our people at the heart of our business and always aim to exceed their expectations. Book your free mortgage appointment to speak to a Mortgage Advisor in Doncaster today. 

Self Employed Mortgage Criteria Advice in Doncaster

Self Employed Mortgages in Doncaster

Self employed applicants can sometimes encounter hurdles when obtaining a mortgage.

The good news is with the support of an experienced Mortgage Broker in Doncaster working by your side, we may be able to overcome these mortgage hurdles together.

First things first, there are specific lending criterias that fit sole traders and Limited Company Directors. Each lender has its own policy and the maximum amount they will allow you to borrow can vary between lenders.

Sole Traders or Partners 

The maximum amount you can borrow for a mortgage will be assessed on your net profit, this can be confirmed by speaking to your Accountant, or direct from the Inland Revenue.

Some lenders average your last two or three years’ net profit but other lenders use your latest year. If your net profit has decreased the lender will usually base everything on the latest year and you will have to explain why it has dropped.

Limited Company Director (20-25% or more shareholder) 

Any Limited Company Director who owns 20-25% or more of the shares in the business, will be deemed by lenders as a self employed applicant.

The same rules are applied with the averaging too, as the average figure will be worked out by your salary and declared dividends.

At some point, your Limited Company will be performing well in terms of net profit but the Directors are not drawing their dividend – these types of applications can impact the maximum borrowing capacity because they aren’t able to declare as much income.

There are some lenders out there that will consider using your share of the net profit, as opposed to salary and dividends.

Minimum Trading Period 

The minimum trading period for any applicant who are Self Employed in Doncaster or Limited Company Directors is one year. That being said, some lenders will want to see two or three years more.

If you have recently formed a Limited Company after a period as a sole trader under the advice of your Accountant, then there are other lenders out there who can look into this, depending on if it’s the same line of work.

If you would like to further discuss your options, don’t hesitate to get in touch and book your free mortgage appointment today to speak with a Mortgage Advisor in Doncaster today.

They’ll guide you through your process. We can also send you a form for your Accountant to complete, which will help us tailor-make a recommendation designed to meet your personal situation. 

Self Employed Doncaster

Buying a Property with a Partner or Friend(s) in Doncaster?

Tips for Buying a House/Apartment with a Partner or Friend(s)

First Time Buyers in Doncaster who struggle to get onto the property ladder by themselves may feel that the most practical solution is to move in with a partner or friend. There can be many benefits to doing so. It will take less time to save for a deposit, and lenders prefer two or more people to buy a property together, sharing the equity in it and the responsibility for the mortgage payments.

How many people can jointly own a property?

In some cases, you’ll find that some mortgage lenders may allow up to four people to co-own property together. But, because multiple parties are involved, this can cause some discussion with changes in circumstances. If one borrower decides to stop their contributions to the mortgage payments, the lender will still pursue the rest of your group for payment.

All the joint owners still hold a legal right to stay within their home unless a court rules otherwise. Even if someone is withholding their contribution, they’re still part-owner of the property.

With this in mind, you need to be very selective about whom you buy with.

If one of the co-owners wishes to increase the mortgage further down the line, all borrowers need to consent. It is best practice to plan for down the line, just if someone ends up with a different plan in mind or a change in circumstances.

Joint tenancy or tenancy in common?

It is familiar for couples who are married, in civil partnerships or simply cohabiting to opt for joint tenancy on a mortgage. Tenants are often relatives or friends looking to buy a house together. You will need the other applicant’s consent if you want to sell or remortgage the property further down the line.

Both co-owners will jointly own the property for a tenancy in common, but there is no legal requirement to do so in equal shares even if one party earns significantly more per month than the other.

If you are a tenant in common, you can freely sell or give away your share of the property to someone else if you wish to remove yourself from that setting.

In these cases, if one of you were to pass away, the property will own the other owner on the mortgage. We always recommend taking out life insurance during their mortgage process. The beneficiary can use life insurance to pay off a mortgage.

What happens if one party stops making mortgage payments?

All mortgage borrowers are jointly and equally liable for keeping up to date with the mortgage payments. If one party stops paying, the remaining parties have to make up for the remaining to prevent possible mortgage arrears.

It’s essential to keep on top of every payment. The reason for this is that falling into arrears could stop you from getting another mortgage further down the line. If you interpret it to view your mortgage situation like this, you don’t own 50% of a property. You own 100% of it jointly.

Removing a Name From Your Mortgage

If things don’t mainly go how you’d intended them to, whether it be a disagreement with your co-owners or the breakdown of a marriage/relationship, you may look to either remove others from your mortgage or remove yourself from their mortgage.

When this happens, it is worth speaking to a trusted Specialist Mortgage Advisor in Doncaster to see what your options might be. Please see our article “divorce & separation mortgage advice for more information on divorce and mortgages.”

Agreement in Principle: Frequently Asked Questions

A Brief Summary of an Agreement in Principle

An Agreement in Principle is the first step to getting a mortgage. You can obtain one of these from a mortgage lender. As the name implies, the lender will agree in principle to let you take out a mortgage with them.

Any Agreement in Principle gets carried out before the final checks, and whilst it is not a guarantee that you will get accepted for a mortgage, it is a good sign that you are on the right track on your mortgage journey.

Despite what people say, a Mortgage in Principle, a Decision in Principle, and the abbreviations AIP and DIP all mean the same thing.

Once armed with your Agreement in principle, you will be fully prepared to increase your odds of having your offer accepted on a property against any other potential First Time Buyer in Doncaster.

You may also even open yourself up to the chance of negotiating with the seller at a lower price. As you have demonstrated to the property seller, you are looking to purchase that you are a serious buyer and do have the funds to proceed.

Frequently Asked Agreement in Principle Questions:

Will obtaining an agreement in principle affect credit score? 

We regularly see more lenders choose to go with soft searches instead of hard searches. The main reason is that a soft search won’t affect your credit score, as they don’t usually leave a footprint, whereas a hard search does.

Having too many hard searches can cause more harm than good, especially if you don’t pass each time. That’s not to say a soft search will not affect you, but it can happen.

A soft search does not go as in-depth as hard searches. However, no matter which one the lender chooses to use, they will have their reasons for selecting either a soft or hard search.

Should I avoid hard credit checks? 

If you do not have hard searches done regularly, then having one done shouldn’t make too much difference. The main issues are when you start having loads of hard searches taken out on you within a short space of time.

It’s essential to understand that if you are well aware that you do have a good credit rating, you should put off on the idea of getting one done, especially if a mortgage lender says that a hard credit search is the most suitable option for you.

Is an Agreement in Principle a guarantee that I can get a mortgage? 

Unfortunately, even armed with an Agreement in Principle in hand, we cannot guarantee you’ll be successful as other factors come into play. For example, the lender still needs to see all your documentation and evidence to make a final decision.

We receive regular phone calls from customers after getting declined during their application process, as they have failed to read the small print in their Agreement in Principle.

On top of always reading the small print, you will need to provide your mortgage lender with proof of ID, the last 3 months payslips and bank statements to show evidence that you can handle money responsibly, all before a lender will offer your case.

Please remember that the required documentation for a Self Employed Mortgage Applicants in Doncaster is slightly different.

Can I make an offer without an Agreement in Principle? 

You can make an offer without an Agreement in Principle to hand. However, we believe you would be much better off having one with you.

Any credible estate agent will ask you for one of these, as they will want to know that you can go ahead with the mortgage process.

How long does it take to get an Agreement in Principle? 

One of our team of Mortgage Advisors in Doncaster can usually obtain you with an Agreement in Principle within 24 hours of your initial appointment.

How long does an Agreement in Principle last for?

An Agreement in Principle expires between 30-90 days after being obtained. That said, you don’t just have to jump at the first house you see. Take your time when looking for a home. A mortgage will be one of our most significant financial commitments.

If your Agreement in Principle has expired, one of our Mortgage Advisors in Doncaster can quickly get you a new one.

Finding your dream home only to be declined by a lender can be both frustrating and disheartning. This is why we always recommend to new/existing customers to get an Agreement in Principle as early as possible, to ensure you are prepared for the mortgage process.

Agreement in Principle Mortgage Advice in Doncaster

For more information regarding an Agreement in Principle and how they can help improve your chances of getting an offer accepted, Malcolm has put this video together.

What is an Agreement in Principle? | MoneymanTV

Shared Ownership – What is it? How does it work?

Shared Ownership Mortgage Advice in Doncaster

The Pro’s and Con’s of Shared Ownership Mortgages | MoneymanTV

What is shared ownership?

Help to Buy Shared Ownership is a government scheme that helps First Time Buyers in Doncaster and Home Movers purchase a percentage of your home (usually from 10% to 75% of the home’s value), and pay rent on the remaining share. Later on, you can buy more significant shares when you can afford to do so.

If eligible for this scheme, partial homeownership is an excellent way for First Time Buyers in Doncaster to get onto the property ladder and a way of owning your home without the need for a heavy deposit upfront. 

How does the scheme work?

Firstly, a deposit needs to be put down on the property. The minimum deposit that you need to put down can vary. For example, the percentage can change for better or worse depending on how good your credit score and financial situation is.

This scheme will still require you to take out a mortgage, but only on the percentage that you’re buying. For example, if you plan to buy 40% on a property worth £170,000, you’ll only need to take out a £68,000 mortgage.

Furthermore, rather than providing a deposit based on the full house price, you only have to put down a deposit based on the mortgage you have taken out. So, in this example, a 5% deposit would be £8,500.

You will start paying off your mortgage once the offer you put down gets accepted and you have moved in the property. As mentioned before, you will also have to pay rent on the remaining share of the property.

Despite having two sets of payments, your overall monthly costs should not be as expensive as taking out a ‘regular’ mortgage.

Costs and fees

When taking out a mortgage, you will need to consider lots of different costs. Shared Ownership mortgages will likely come with set-up/arrangement charges, booking and solicitor fees. Make sure to double-check that you are aware of these additional costs.

Of course, the costs can vary depending on the property that you are buying. As well as the deposit size, monthly payments, arrangement fees can differ from property to property.

How can I apply?

To make sure you are eligible to qualify for the Help to Buy Shared Ownership Scheme, here are the requirements:

  • You have to be at least 18 years of age.
  • Living outside of London, your total household annual income must be less than £80,000.
  • You are a First Time Buyer, you used to own a home but can’t afford to buy one now or are an existing shared owner looking to move.
  • If you can afford to purchase a property on the open market, you will not access this scheme. 
  • You must prove that you are not in any arrears, such as mortgages and rent.
  • You must provide evidence supporting a good, clean credit history—having a CCJ on your credit file or any other credit-related issues will look bad. 

Although this may appear like a lot, it’s the same as most Help to Buy Schemes. Each schemes’ differ from the other, as they are targeting applicants in different situations.

If you have credit problems, you may need to look at other ways to get a mortgage. There are lots of different government mortgage schemes out there that could help you get a mortgage.

For more information on these schemes, feel free to navigate to our website’s Help to Buy Mortgage Advice service page.

Get in touch with a Mortgage Broker in Doncaster today

Our mortgage advisors in Doncaster have helped many buyers secure a mortgage through the Shared Ownership scheme. We have been helping First Time Buyers for over 20 years now!

If you are looking for Help to Buy Mortgage Advice in Doncaster, we can check whether you match any schemes’ requirements.

Please take advantage of our free mortgage consultation by booking yourself in for a mortgage appointment today.

The Different Types of Mortgages Explained

Mortgage Advice in Doncaster

Whether you are a first time buyer in Doncaster looking to buy a property, moving house, or are ready to remortgage, you’ll soon begin to realise there are many options out there for you when it comes to taking out your mortgage.

This article will feature a comprehensive list of the most popular mortgages available to customers currently on the mortgage market.

If you have any questions regarding any of the mortgage options below, please do not hesitate to get in touch. You can now book yourself in for a free mortgage appointment to speak with a dedicated mortgage advisor in Doncaster, at a time that suits you and your lifestyle.

What is a fixed rate Mortgage?

What Is A Fixed-Rate Mortgage?

A fixed-rate mortgage will mean that your monthly mortgage payments will stay the same for the duration of your mortgage term.

The length you want to fix your payments is your choice, with typical options being around 2, 3 or 5 years or longer.

No matter what happens to inflation, interest rates or the nationwide economy, you know that your mortgage payment, which is usually your single biggest outgoing, will not change.

What is a tracker mortgage?

What Is A Tracker Mortgage?

A tracker mortgage will provide you with an interest rate that mimics the Bank of England’s base rate.

That means neither you nor the mortgage lender will set the rate and change as and when the base rate does.

You will be paying back at a percentage that is above the Bank of England base rate. If we use this in an example, the base rate is 1%, and you are tracking at 1% above the base rate, which means you will be paying back your interest rate of 2%.

Even though these deals aren’t as popular anymore, consider that your mortgage payments will increase if the base rate increases. If it goes down, yours will go down too. Of course, this will benefit you.

What is a repayment mortgage?

What Is A Repayment Mortgage?

When you take out a repayment mortgage, you will be paying back a combination of both the interest and capital each month.

Going off the basis that you can keep your payments going for the mortgage term duration, you will be guaranteed to have paid it off in full and own the home of your dreams by the end of it.

That said, this is generally considered the most risk-free way to pay your capital back to the mortgage lender across the industry. Early in your term, the amount you’ll be paying will be mostly the interest, with your balance reducing at a slower rate, especially if your period is 25, 30 or 35-years.

The process quickens up within the last ten years or so of your mortgage, where 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 A Interest Only Mortgage?

While we do still regularly encounter many buy to let mortgages being set up on an interest-only basis (this is an option that works out much better for many landlords), it is increasingly difficult to get a residential property on an interest-only basis mortgage.

The reason for this is because once you reach the end of your term, you will still have the entire mortgage amount to pay off all in one go, with no additional income to fund the amount you’re required to pay.

There are various unique circumstances where this can be a suitable option for customers, including downsizing when you are older or if you happen to have other investments you can use to pay back the capital.

Lenders are often stringent when offering these products now, and the loan to values tend to be much lower than they were in previous years.

What is an Offset Mortgage?

What Is An Offset Mortgage?

The way an offset mortgage works is that your mortgage lender will set you up with a savings account that will work in tandem with your mortgage account.

For example, let’s say that you have a mortgage balance of £100,000 and you deposit £20,000 into your savings account, you will only be paying interest on the difference between those figures, which would work out at £80,000.

This can be a very efficient way of managing your finances, especially if you want to be paying higher rates of tax.

What is a capped rate mortgage?

What Is A Capped Rate Mortgage?

Like fixed-rate mortgages, capped rates have a maximum amount that a customer will pay each month with a maximum interest rate. With that in mind, if you’re capped at, say, 5%, you’ll never go higher than 5%.

These can be more beneficial if interest rates start to drop, so, for example, if the rates drop to 4%, 3% or 2%, then your mortgage will do the same.

What is a flexible mortgage?

What Is A Flexible Mortgage?

Flexible mortgages allow you to underpay and overpay by unlimited amounts. Underpayments are only allowed if you’ve overpaid first and have agreed with a lender to do so.

Overpayments can be reasonably beneficial, though, as you could end up paying off the mortgage early and with significantly less interest. Mortgage flexibility is usually a feature of offset mortgages.

Mortgage Broker in Doncaster

What do Lenders Look for When Assessing my Bank Statements in Doncaster?

What Do Lenders Look For On My Bank Statements?MoneymanTV

Why does the lender need my bank statements?

Your mortgage lender will want to see your bank statements to use as evidence to help them assess how much you can borrow if anything at all.

The lender will look at your bank statements to confirm your income and regular monthly outgoings. In order to view how your financial commitments will affect your ability to repay your monthly mortgage payments.

After all, a mortgage is one of the most significant financial commitments you will ever make in your life. This is why a lender needs to know that you can handle your finances and be responsible. 

How do I obtain my bank statements? 

There are different ways you can obtain your bank statement, such as receiving your bank statement through the post from your bank or going into your local branch and getting it over the counter. It’s common to see that people will retrieve a printable version from their online banking application.

What will lenders be looking for on my bank statement? 

Again, a lender needs to know you are responsible and reliable with your income. They will consider some factors. For example, using an overdraft occasionally is not necessarily a bad thing. However, exceeding your limit quite often is going to affect the lender’s trust in you.

Additional factors a lender will look out for are potential returned Direct Debits, which can indicate you are not reliable, especially if you don’t disclose any loans during the application stage. 

Another factor that you need to be aware of missing any payments for personal loans and things such as credit cards. It’s more likely that a lender will lend an amount closer to what you would like to borrow if you can meet your monthly payment deadlines. 

Will gambling affect my chances of getting a mortgage? 

For some, customers end up stuck due to a history of gambling behind them. Gambling now and again is relatively harmless but constantly throwing large amounts of money. The lender will look at your case less than favourably. Regardless if you are making your money back or more.

for more information, read our ‘Do Gambling Transactions Look Bad on my Bank Statements?‘ article.

What can I do to show the lender I am reliable? 

Various first time buyers in Doncaster and home movers in Doncaster have found that most lenders prefer to have at least three months bank statements from a mortgage applicant. Maybe, it’s time to change your lifestyle to have at the very least three months to improve your handling of finances. 

Firstly, we recommend taking a very long break from the bookmakers and/or online gambling scene. This will benefit you mentally and give your finances some breathing space. 

Secondly, do your best to pay off any current debts you have without using an additional credit card. Even the more minor things like reducing unnecessary purchases can help free up the extra cash to ensure you can pay all your bills on time.

Thirdly, for you to be more sensible, create a plan for yourself with plenty of time ahead of what you’re looking to achieve. The further away you go from debt and financial troubles, the better your chances with a lender.

Speak to a Dedicated Mortgage Advisor in Doncaster

If you’re a first time buyer, moving home, or self-employed, it’s always essential to keep your finances on track. Getting in touch for specialist mortgage advice in Doncaster can help you if you’re feeling unsure when it comes to bad credit history. We are here to further your mortgage journey by advising the best we can.

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Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
Should you have cause to complain and you are not satisfied with our response to your complaint, you may be able to refer it
to the Financial Ombudsman Service, which can be contacted as follows

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© 2022 Doncastermoneyman

Doncastermoneyman, 3 Cavendish Court, South Parade, Doncaster, DN1 2DJ.

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