It is an easy task when it comes to a credit score for a mortgage. The only thing that can make it difficult is if you cannot meet the lender’s criteria. The common reason for this is that particular mortgage lenders have a strict set of requirements that need to be met by the applicant. If you have been unable to meet the credit score for the mortgage and the lender is not providing a reason why you have failed, we know it can be frustrating.
A Mortgage Broker in Doncaster can be really beneficial if you are wondering why your application for a mortgage may have been declined. They will have the extensive experience and knowledge you need for your questions to be answered. Here at Doncastermoneyman, we have a team who will take a thorough look at your file and will be able to recommend you the most suitable lender to go with.
A way to improve your credit score is by meeting certain requirements. For example, paying off a credit card balance in full can help with this. Being on the voters roll in your local area can also massively help with improving your credit score. As well as this, getting rid of any bank accounts, store cards and credit cards that you no longer use can be helpful. Overall, having a cleaner record can help.
If you are looking for more ways to improve your credit score, check out our article on ‘how to improve your credit score‘.
Don’t feel defeated if your application is rejected by one lender, there may be a possibility that you will be accepted by another lender. This does require you to have the least amount of credit footprints registered in your name. This should be as clean as possible in the systems and should not have any pending balance in order for the lender to trust you and your credit score easily.
Looking for Specialist Mortgage Advice in Doncaster will mean that you need to keep in mind that every mortgage lender has different ways they calculate the amount they can borrow. It is possible to have 10 different approaches from 10 different lenders for the same mortgage application.
If you are self-employed, you might find that one lender will be more lenient with your overtime and bonuses counting towards 100% of your income. On the flip side, you might find some lenders will not look at bonuses as income and some might accept tax credit, maintenance and even child benefit.
When it comes to looking for Specialist Mortgage Advice in Doncaster, there are plenty of benefits. With an expert mortgage broker by your side, you will be able to get the knowledge you need when approaching the lender as well as discussing the chances of your application getting through.
We do suggest that you get Specialist Mortgage Advice in Doncaster before filing an application. Getting the relevant mortgage experts will highly pay off as they will be able to guide you on the right path organise yourself and avoid being disappointed by approaching the wrong lender.
All lenders work around their rules and emphasise borrowers meeting their lending criteria. You might find that some of the requirements in the criteria are tougher to meet than the others and this is what causes many applications to be declined. Below are some of the reasons why an application may be turned down as it does not reside inside the lending policy.
A Specialist Mortgage Broker in Doncaster by your side can be best when it comes to selecting the best mortgage plan for you. If you feel you are in any of the situations that have been mentioned above, it’s good to get in touch with a dedicated mortgage advisor to receive help through the process.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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:
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.
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.
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.
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.
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.
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.
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:
Our mortgage advisors in Doncaster aim to help try to maximise your chance of being accepted the first time.
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 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.
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.
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.
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.
After the events of the unfortunate credit crunch back in 2008, the government introduced backup as a means of boosting the damaged mortgage market.
They introduced a variety of methods to help First Time Buyers in Doncaster find their spot on the property ladder. The methods brought in were called Help to Buy Schemes.
There are a few different Help to Buy Schemes that are available, each with varying eligibility criteria to meet. Here is a list of the most common schemes you’ll come across for a Help to Buy in Doncaster.
The Help to Buy Shared Ownership Scheme allows people to purchase only a share of a property, paying the remaining amount owed as a monthly rental fee to your local authority, who will own the remaining share.
You’ll generally be earning a percentage that is somewhere between 25-75%, though this is not always the case. If you come into more money, you may have the option to potentially increase your shares.
Regarding your rental income, you will essentially be paying 100% of the ground rent and service charge on the property.
The Armed Forces Help to Buy Scheme was brought in by the government back in 2014, following on from the success of the Help to Buy Equity Loan Scheme.
It is similar in concept to the original Help to Buy Scheme, helping first time home buyers who have served in the military, to find their own place on the property ladder.
If you happen to meet the criteria for this particular mortgage scheme, it could be a great way to help home buyers get onto the property ladder when they otherwise may not be able to.
The government has made this now an enduring policy. We are hoping this stays around, as not only a way to thank the armed services with a financial boost, but to also help them to own their own home.
Whilst technically not a Help to Buy Scheme variation, the Lifetime ISA is often a scheme that people forget about. The reality is, is that it can be a very helpful tool for helping you to purchase your first home as a First Time Buyer in Doncaster.
The function of this, is that it is basically a savings account for finances to grow, free of tax. You’ll get a yearly government top-up of 25%, with a capped amount of £4,000. This means if you go with the maximum amount, you’ll get a nice £1,000 bonus!
In order to access this, you will need to meet very specific lending criteria. Full information can be found on the Lifetime ISA website.
The overall desire for using offset mortgages has dwindled since the 1990’s, though they are still viable options for customers who are looking to put aside a portion of disposable income.
They’re also really handy if you believe at some point you are going to come into a lump sum of money.
In order for a mortgage lender or any kind of loan provider to be able to lend money to clients, they need to have a source of funds to draw from.
That is the point of savings, and is why you gather interest on what you pay in. In exchange for having an account with them, you are rewarded.
The way that an offset mortgage works, is that you will be given a savings account by a mortgage lender (typically one who is a bank or building society), alongside your mortgage balance.
When you pay into your savings, your mortgage balance decreases by how much you paid in. If you take out of your savings, that mortgage balance increases by how much you took out.
You still pay a monthly mortgage payments towards reducing your balance, as you would on a standard mortgage, but you only pay interest on what is remaining on your balance, not your savings.
For example, if your mortgage is worth £100,000 and you have £50,000 in savings, then you pay interest on the remaining £50,000.
If, hypothetically, after a while you were able to pay off some of your mortgage, bringing that amount down to £45,000, but then draw £15,000 out of your savings, your balance increases to £65,000 and you receive a new set of mortgage payments per month.
This also means you’ll be paying more on interest, as there is a higher amount remaining in your mortgage balance. In addition to this, the general interest on the mortgage side of things, will typically be higher than a standard mortgage anyway.
Offset mortgages don’t tend to be that popular anymore, but they are still really handy to have in certain situations. Perhaps you are due a lump sum at some point in the future, such as a future inheritance from a family member.
Because this account allows you to freely deposit and withdraw your money as you see fit and is interest-free, it’s a handy place to store any additional savings until you know what you want to do with them.
Another circumstance where these can be very beneficial, is if you have a well-paying career and are due monthly, quarterly or annual sizeable bonuses from your job, that don’t factor into day-to-day living expenses.
You can place this disposable income into your savings account, lower your monthly payments, meaning you are paying interest on a lower amount.
An offset is also an excellent opportunity for First Time Buyers in Doncaster who want to overpay on their mortgage.
Overpaying allows you to reduce your mortgage payments for your next mortgage term, leading to a reduction on your interest rates too, with any additional mortgages you take out.
The difference with regular overpayments, is that you won’t have a savings account, you’ll just be paying off your balance. This means you can’t dip into it as an emergency fund if you need to, or if you change your mind on that overpayment.
Offsets are great for people who want to do this as you do have a savings account. This means if you want to overpay and reduce your balance, you can just pay into that savings account. If you want to take out some of what you paid in for any reason, you have the freedom to do so.
So, if you’re looking to make regular additional payments on your mortgage over time, we would absolutely recommend taking advantage of an offset savings account as you go.
Speaking to a trusted and experienced mortgage broker in Doncaster like us, is a good way to understand what options are available to you ahead of time.
Offset mortgages are great, but they might not be right for you, which is something a mortgage advisor in Doncaster will check before you proceed.
Generally speaking, we find that customers who have offset mortgages, won’t remortgage in Doncaster, as they will just keep their current mortgage going.
If you have any questions or need any help regarding offset mortgages, book your free mortgage appointment today using our online booking feature, and we’ll see how we can help you out. We are here from early until late every day, subject to appointment availability.
Whether you’re a first time buyer or are moving home in Doncaster, buying a property can be stressful and overwhelming. It shouldn’t be this way though, you should be able to enjoy the whole experience.
It would be extremely beneficial if you could prepare yourself during the lead-up to your home buying journey. You should start by asking questions about the property and where it is located.
New build properties tend to be more popular and in higher demand. If you come across a new build that you’re interested in, take a property viewing before you go any further.
You need to find out how many people have been interested in the property; you have to ask the question, or it may show you online. If there’s been no interest in the property, there may be a reason for it, e.g. it could be overpriced or there’s something wrong with it.
A property chain is where you are waiting for your seller’s purchase to go through before you can move in. This can go on and on; your seller’s seller could always be in the same situation as you. If you aren’t in a chain, you may be able to move through your process quickly.
It can sometimes be hard to find out if there is a property chain, however, it’s always worth asking the question as the seller may tell you.
If you are a first time buyer in Doncaster, you will not be part of a chain as you are not selling a property, only buying.
Some homes may come with ‘extras’ or incentives to persuade you to buy the house. This could be something like them asking what appliances you would like in your kitchen.
Older homes may come with unwanted appliances owned by the seller. It’s wise to check with the owner what these appliances are and whether they are included in the sale or offered at an additional price.
It’s wise to clarify as you may be left with unwanted items that you then need to remove and dispose of.
Try to speak with the neighbours and get a feel for how they are and their opinion on the area.
On new building developments, this may be a little more difficult.
You will want to find out about the running costs that are involved with the property too. What are the costs for gas, heating, electricity, water (particularly if it’s a newer home with a water meter). Also, things like Council Tax charges.
When viewing the property, get a good look at the garden, make sure that it’s what you’re looking for. Everyone enjoys spending time in the garden, even if it is mostly in summer!
Ask whether the garden is southern-facing and check how well natural light enters the garden etc.
During your property survey, damages and repairs should be highlighted, however, it depends on which survey you took out. Ask lots of questions, particularly with older properties, as you want to make sure that you aren’t buying a property that’s going to need lots of repairs.
As with any property purchase, in the future, you may need to make improvements to energy efficiency, insulation, garden work etc.
Whenever you get the chance to, ask lots of questions before you buy a home. You want to learn everything about the property you could spend your whole life in!
Estate agents and the seller should be happy to answer your questions, and if they are, maybe it could be a warning sign if they are withholding information. If you do find out information about the property that could reduce its overall price, don’t be afraid to negotiate. Don’t be too keen and offer to high to start with and remember to take into consideration other factors such as when you would be able to move in and that fits your expectations.
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.
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.
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.
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.
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.”
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.
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.
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.
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.
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.
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.
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.
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.
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