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.
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 Equity Loan Scheme is the most popular one that we find customers look to use. If you are a First Time Buyer in Doncaster and looking to find a way to get started with your mortgage process, this could be the one for you.
First of all, you must be a First Time Buyer in order to take out a Help to Buy in Doncaster. Additionally, it is only accessible on New-Build properties and you must have a minimum 5% deposit.
The Help to Buy Equity Loan Scheme works in a way that allows you to put down at least 5% of your own deposit, which will be topped up by a maximum of 20% by the government, bringing you up to 25% deposit overall.
This applies in multiples of 5, so if you put down a 10% deposit, you’ll get 15%, if you put down 15%, you’ll get 10% and so on. The intention here is to bring it up to 25%, opening you up to much better deals.
With a 75% mortgage and a government equity loan to pay back, you’ll be in a much better place to get onto the property ladder. You have 5 years to pay off your equity loan interest-free. After this point, you start paying interest, starting at a rate of 1.75%.
As a Mortgage Broker in Doncaster, we know that sometimes it may be difficult to pay both your equity loan and mortgage payments at the same time.
A possible solution to this, may be remortgaging to raise capital. It is important to note that this option will likely increase your mortgage payments.
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 set in place a review date of December 2022, for when the scheme is likely set to end. 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.
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.
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.
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.
To make sure you are eligible to qualify for the Help to Buy Shared Ownership Scheme, here are the requirements:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Some really great news for any personnel of the military, as according to Army Families Federation Defence Secretary Ben Wallace the current Help to Buy scheme that was created as a means to help military personnel get onto the property ladder has been extended.
It was originally introduced back in 2014, with a huge £200 million put into the scheme. The intention was to provide a boost to anyone from the forces who needed some help in purchasing a home. The project was supposed to be brought to an end in December 2019.
To show their gratitude for the military’s commitment to their Queen and country, our government chose to extend this scheme further, choosing instead to bring it to an end in December 2022.
Anyone who has served some time in the military may be able to access the scheme and borrow a deposit of up to half their annual salary (a maximum of £25,000), free of any interest.
Of course you do have to be eligible, with this all depending on the length of the term served, how much you have left to serve and medical categories.
The Armed Forces Help to Buy Scheme can be used to either purchase their first home purchase or to move into a new home if you already own one.
Whether you previously thought you could or not, you now have a home buying lifeline if you are indeed eligible for it.
One of the best parts about this mortgage scheme, that is appealing to many home buyers, is that you don’t actually need any current savings in order to find your footing on the property ladder.
The funds will be raised from the loan that you receive via the Armed Forces Help to Buy Scheme and can be used to put towards your deposit as well as any other costs, including but not limited to;
This scheme is a lot more relaxed than some other schemes available, and the Forces Help to Buy loan can be paid back over a duration of around 10 years, so you have no reason to feel rushed about paying it back.
For more information on this scheme from the government, click here.
As an experienced mortgage advice team in Doncaster, we will have your back from the first time you call up, right through until competition and even beyond that.
Your dedicated advisor will take care of you all throughout your mortgage journey, ensuring that you end up with the most appropriate mortgage result for your personal and financial circumstances.
We truly do pride ourselves on being able to provide a fast and friendly customer experience that is free of stress and worry. Get in touch with us today and we will see how we are able to further you and your home owning dreams.
It is important to remember that the Forces Help to Buy is not the same as the typical UK Help to Buy scheme.
There seems to be a rise in awareness of credit scoring from first time buyers and other consumers. This is from the increasing attention credit rating is getting from the general public. Our team has also found that when people get in touch with us, the majority have already viewed their credit reports online.
Experian or Equifax seems to be the two most common credit reference agencies but there are more out there. Check My File is something we do recommend to new clients. When they sign up, they get a 30 day free trial and after the 30 days will then be £14.99 a month, however, this can be canceled anytime. The color-coded report provides an easy-to-follow document that collates a range of information.
We find that clients have become more aware of the fact that too many credit searches can negatively impact their credit score. Therefore, our clients often ask if our mortgage advisors in Doncaster will do a credit search on them. Even though lenders always carry out credit checks, your dedicated advisor will require the client’s permission before doing any checks.
Banks provide two types of credit searches; hard search or soft search.
A hard credit search is when they take an in-depth look at your credit report and any financial institution carrying it out soon as you permit the financial institution to do so. The advantage of a hard credit search would be that the lender is looking into your situation quite carefully and if you pass the credit score, you increase your mortgage application’s chance of success.
As long as you have provided satisfactory documentation to back up the information you have disclosed and you haven’t provided false details, the search can be a success.
The footprint doesn’t state if your application was successful or not, however, if you have carried out a number of searches over a few weeks, this could cause the lenders’ system to decline.
Another benefit is that your credit file will have a record kept stating that you have carried out a hard credit search which is good when someone needs to look at your report. However, a credit file that states that there have been multiple searches carried out in a short period of time isn’t great because it could looks like you have applied for a vast amount of credit at the same time.
Having the odd hard footprint on your record isn’t bad. That’s why you shouldn’t worry too much about it, it’s just best to be cautious in having too much.
Unlike hard searches, a soft credit search provides a ‘lighter’ look at your financial situation. This type of search would normally be used on price comparison websites to provide which options you have or it could be used as a source to verify your identity. You may find some mortgage lenders carry out soft searches and it seems that more lenders are changing to this type of search.
With soft searches, you don’t get offered as much information as you would if someone carried out a hard search. A soft search wouldn’t leave any impact on your credit file if you fail. A lender will obtain less information compared to if they carried out a hard credit search. If you come out with an agreement in principle, the difference between the two doesn’t matter.
One factor that is helpful is that even though you would be able to see soft searches that got carried out on you, these searches are not visible to other financial institutions like banks. Therefore, you can apply for an agreement in principle without damaging your credit score regardless of if it is successful or not.
In the case where you are wanting to make an offer on a property, our mortgage advisors would suggest having an agreement in principle in place prior to you contact the estate agent. You should give yourself the chance to get the property you want at the lowest possible price.
A big advantage you can have on your part is if you have demonstrated that you have finances in the right place. Having an agreement in principle can also deter the agent from attempting to ‘cross sell’ their in-house mortgage services to you.
It is possible to get a mortgage with a 5% deposit of a property’s value, although, you’ll find that some lenders may require no less than 10%. If you have come across this, you’re not the only one to have experienced it.
Our team of mortgage advisors in Doncaster are here to help. Here are some suggestions we recommend to help increase your chances of getting onto the property ladder with a small deposit.
Take advantage of government schemes under the ‘Own Your Home’ project. One of these schemes might offer the extra boost you need to continue through your mortgage journey.
With a handful of government schemes to choose from, buying a home is now more affordable than in previous years. These schemes have allowed first time buyers in Doncaster and home movers the opportunity to get themselves onto the property ladder.
This government scheme allows you to increase your total deposit size. First, you take out a Help to Buy mortgage with a minimum of a 5% deposit, and the government tops up your total deposit to make a total of 25%. The percentage that they give you is the ‘Equity Loan’. This amount will eventually need paying back as it is a loan and not a gift.
The loan will be interest-free for the first five years. Then, if it hasn’t been paid off, the remaining loan will begin to gain interest, starting at 1.75%.
Lastly, this scheme is only available for new-build purchases and for first time buyers. Therefore, if you’re a first time buyer in Doncaster, this scheme could be perfect for you and help improve your chances of securing a property with only a 5% deposit!
Shared Ownership lets you take a mortgage out on a percentage share of a property (usually anywhere between 25%-75%) and then pay the rest back via rent. Also, it’s worth knowing that you can increase the share of the property that you own further down the line if you want to.
If you want to go down this route, we recommend that you speak to an expert mortgage advisor in Doncaster before diving headfirst into the scheme.
A Lifetime independent savings account is a savings account where your money grows year on year interest-free. You can put as much money in it as you’d like each month, as long as it doesn’t exceed a total of more than £4,000 over the year. This is the maximum that you can save each year.
Each year, the government will top up what you’ve saved by 25%. So, if you save up to the maximum, you will get an extra £1,000 for free.
Right to Buy is a government scheme that lets you buy your home at a substantial discount if you’re a council tenant. You may be able to use your discount as a mortgage deposit so you can buy your home with fewer savings.
A 95% mortgage is when you borrow against 95% of a property’s price, covering the remaining 5% with your deposit. Of course, getting a mortgage is not guaranteed in any way, shape or form. You’ll still be required to pass things such as credit checks and affordability assessments.
There are other ways besides using government schemes to get a mortgage with a smaller deposit.
A mortgage in principle (AIP), also known as a decision in principle, is a written estimate from a bank or building society that indicates how much money you can borrow.
It can prove you’re a serious buyer and can, in theory, get a mortgage. We can usually turn around an agreement in principle for our customers in 24 hours.
In this situation, it’s not really about the deposit. An AIP indicates to the seller that they’ll be able to continue through the process quicker by choosing you as you will speed up their process!
Another alternative would be to carry on saving up. Even pushing back your home buying journey for a further couple of months could boost up the total amount of your mortgage deposit.
Your small deposit could become much more prominent if you knuckle down and save for just a little longer. Suppose none of the houses on the market are appealing to you in that area; even more reason to save up and wait!
Taking out a loan to cover your deposit can sometimes affect your ability to get accepted, and this is because you are essentially borrowing 100% of the mortgage.
Lenders will question whether you’ll be able to afford it or not. They can’t risk lending to you if that loan affects your ability to keep up to date with your mortgage payments.
This is a specialist topic, and we would advise that you speak to a mortgage advisor in Doncaster and get in touch with us first.
Firstly, Congratulations! You have passed all of the necessary exams and are now a newly qualified teacher. Now all you have to do is find a teaching position and start gaining some teaching experience.
For some, to be closer to that job, you may be required to look at relocating to Doncaster. If you already own your own home, you may benefit from the help of a mortgage broker in Doncaster.
We have dealt with many customers who feel stressed trying to balance the strain of homeownership whilst settling down within your newfound role in teaching.
Hopefully, with the help of a mortgage advisor in Doncaster, your process will go a lot smoother and quicker, reducing your stress levels.
The challenging part is finding a lender willing to offer a mortgage to newly qualified teachers. Mian reason being NQT having little to no work history or being on a temporary contract.
The good news is, some lenders may even offer good deals with those working within the teaching industry from time to time and always a good idea to go to a mortgage broker. For instance, with the help of a mortgage broker in Doncaster, they can search thousands of deals and match your situation to the right lender’s criteria.
The different types of mortgage available for newly qualified teachers commonly include:
Here are some things that lenders may consider during your process:
Our team of mortgage advisors in Doncaster have much experience working throughout this industry, helping various people with similar situations such as yourself.
Most importantly, there are lots of benefits to home buyers using a trusted first time buyer mortgage broker in Doncaster.
For more information get in touch, and we can book you in for a free mortgage consultation. From there, we take some details from you to determine whether or not you have a chance of obtaining a mortgage suitable to your circumstances.
No matter your mortgage situation, it’s essential to seek mortgage advice in Doncaster at the start of your mortgage journey, whether you are a first time buyer or looking to remortgage in Doncaster.
Getting expert mortgage advice can be the difference between an application getting accepted and being rejected. Taking matters into your own hands can work against you as you aren’t as experienced in looking for certain things.
Our team can search through thousands of mortgage deals for you, which will hopefully save both your time and money during your mortgage process.
It’s the job of your dedicated Mortgage Advisor in Doncaster to find you the mortgage deal that is the most appropriate for your circumstances. Some say that there’s no significant difference between an advisor and a broker, which is partially true and untrue.
Mortgage advisors are trained professionals working either for a mortgage broker, independently or for more prominent banks or building societies. The difference comes into play when looking at the companies those advisors work for, compared to Doncastermoneyman.
However, here at Doncastermoneyman, we can tell you our team of specialist mortgage advisors in Doncaster are authorised and regulated by the Financial Conduct Authority and have access to a large panel of various mortgage lenders pick and choose a deal depending on how appropriate it is.
Many of those advisors working directly for the lender will only offer their products, along with biased advice.
Our mortgage advisors in Doncaster have in-depth knowledge of lending criteria and experience providing expert advice to customers with all types of individual situations.
For first time buyers looking to take that first step onto the property ladder, the process can be confusing.
It’s here where our dedicated mortgage advisors can take the reigns and walk you through every step, supporting you through the most stressful moments, leading up to when you get your keys and, if necessary, beyond.
It may be that you need mortgage advice in Doncaster because you are looking to remortgage for home improvements/release equity or purchasing your next property to move into or add to your portfolio.
Our team of specialist mortgage advisors in Doncaster in Doncaster can help find suitable mortgages for a landlord looking at buy Let mortgages.
One of the many benefits of using a mortgage broker in Doncaster is that the process will likely go a lot smoother than it would’ve been if you had opted to go alone. Buying a home can be a very stressful experience, and our customers like to know they have got someone on their side to answer all their questions and queries. Here are some other ways we are also able to help:
Our mortgage advisors in Doncaster job is to ensure you have the highest chance of being accepted the first time possible. Nothing is ever guaranteed, but with our help, you’ll hopefully be one step closer.
We are proud to have the quality of service we provide to our customers seven days a week.
We put our people at the heart of our business and always aim to exceed their expectations. Get in touch with your mortgage broker in Doncaster today and benefit from a free mortgage consultation with a member of
In this article we have put together a comprehensive list of the 10 steps involved in the mortgage process for First-Time Buyers in Doncaster, allowing for you to be as prepared as possible heading into your oncoming mortgage journey.
The 10 steps to the process of home buying and obtaining a mortgage are as follows;
So, you’ve decided to purchase your first home and obtain a mortgage as a First-Time Buyer in Doncaster. Without a doubt going to be one of the biggest financial commitments you make throughout your life. Once you realise this, the notion can be a little jarring, especially when you have no experience in the property market.
Once you’ve reached this point, a dedicated mortgage broker in Doncaster will be able to step in and help you along your mortgage process. It is our goal to reduce your stress and work hard to ensure you come out the other side with a mortgage and your first home, happy and with a deal that benefits you.
When you Get in Touch with us, we’ll get you booked in for a free initial mortgage consultation with an experienced mortgage advisor in Doncaster. Here we’ll take some information for you and look at what you’re planning to do, prior to starting your process.
One thing your dedicated mortgage advisor will be able to run through in your free mortgage consultation, is a Mortgage Affordability Assessment. This is where they will run through your monthly income and regular expenditures (the things you spend your money on), to determine whether or not you are able to afford the monthly repayments of the amount you are looking to borrow from the lender for a mortgage.
The importance of this comes from us needing to be absolutely confident that you can afford your repayments with the lender. This will hopefully help avoid arrears and potential future repossession, something the lender will desperately try to avoid.
A Mortgage Affordability Assessment is something the lender will usually do their own checks on, so our initial check will help save the time of the lender, ourselves and more importantly you, from an application that you may find being declined on due to failed affordability.
The following step in your consultation will be the process of obtaining a Mortgage Agreement in Principle. If you’ve been reading up on mortgages prior to getting in touch for First-Time Buyer Mortgage Advice in Doncaster, it is likely you will have noticed this is a polyonymous term, also found under various similar names. These names often include ‘Decision in Principle’, ‘Mortgage in Principle’, as well as the abbreviations ‘DIP’ & ‘AIP’. There isn’t any difference between these besides this, they are all the same thing.
The intended purpose of a Mortgage Agreement in Principle is to document that you have passed the initial credit scoring system of a lender, either via a hard credit search (which can leave a credit footprint) or a soft search (which usually will not leave a credit footprint).
Obtaining this does not guarantee you will be accepted on a mortgage, but is something you must do on your way to the final goal. One of the other benefits of getting this document, is that it will show the seller of a property that you are very serious about purchasing the property, possibly creating room for price negotiations.
A typical Agreement in Principle will usually last somewhere between 30-90 days, and if it is not used before you make an offer on a property, it can easily be renewed once expired. Our team of dedicated mortgage advisors can usually get one of these turned around for you within 24 hours of your first appointment.
After you have gotten your Agreement in Principle, you will need to look at finding yourself a Conveyancing Solicitor (also known simply as a Conveyancer) to provide assistance to you with the legal proceedings of the homebuying process. The term Conveyancing is used to describe process of transferring legal ownership of a property between parties, for both the buyer or seller.
Your Conveyancing Solicitor will be able to handle contracts, provide you with any legal advice that you may need, conduct local council/authority searches, help sort things out with Land Registry and lastly process the transfer of the funds that you have acquired in order to pay for your new home. You must choose carefully as this is a very important part of your process.
It’s also key to remember that Licensed Conveyancers are property specialists and therefore cannot deal with complex legal issues, whereas more general Solicitors offer a full range of services so can often seem more costly. Whilst we do not offer these services ourselves in-house, we have collated an internal list of companies we trust, that your dedicated Mortgage Advisor in Doncaster is able to refer you to.
Now you’ve taken that step of getting in touch with a Mortgage Broker in Doncaster, passed the Mortgage Affordability Assessment, gotten yourself an Agreement in Principle and found yourself a Conveyancing Solicitor to deal with the legal element. You’re halfway through the process now and your next course of action is to make an offer on a property that you have your eye and heart on.
As touched upon earlier in this informational guide, by having an Agreement in Principle you will be in a much better place to negotiate on price with the seller. You have to find the balance of going low, but not to low as to offend the seller and create tensions, whilst still asking for a lower price. The seller will be more likely to sell to you than someone who is willing to pay the asking price but is unprepared, if you have an Agreement in Principle with you.
The worst-case scenario is that the seller will not accept your offer, but it’s at that point you can work out a more reasonable offer for both of you or walk away and find somewhere else that you’d like to live. Once your offer has been accepted, it’s back to your mortgage advisor and onto the last steps of your mortgage journey.
Now heading back to the mortgage side of things and a cardinal next step; you need to submit the required documents. As can probably be expected when such a large amount of money is involved, a mortgage lender will not just lend to any person.
Your lender will in fact need you to provide various documentation to prove that you are who you say you are, the income you earn from your job, where you are currently living and how well you conduct your finances. If you’re obtaining a joint mortgage, this documentation will be required from both parties individually.
The documents you will need to submit to the lender, include; proof of ID, proof of address, the last 3 months’ pay slips and latest P60 (employed), the last 3 years’ proof of earnings and Tax Year Overviews (self-employed in Doncaster), proof of any other income like state benefits or maintenance, proof of deposit and the last 90 days worth of your bank statements.
With your mortgage agreed in principle, and your offer accepted, we are now able to go forth and submit your full mortgage application. With all the things you needed to prepare now ready and checked by your dedicated Mortgage Advisor in Doncaster & their hard working team of Mortgage Administrators, we are ready to submit an application to the lender for your future mortgage.
Your advisor will send off all the collected documentation you have provided for evidence in order to achieve this, and then it’s just a matter of waiting for them to respond with whether or not your mortgage application has been accepted or declined. Whilst there is no specific time frame in which this can come back, our Mortgage Administration team will be able to chase the lender to find out the answer on your behalf.
In-between your mortgage application and being offered a mortgage, the lender will require your property to have a valuation survey. These surveys are usually carried out by accredited companies nominated by the lender, as they will have a list of companies they trust.
The purpose of such a task is to understand how much a property is truly worth, against what you’ve agreed to pay for it. If you’re paying above its actual market value, it’s more likely that the lender will not want to lend you the funds you wish to borrow, as in the event of arrears, they will most likely be out of pocket and unable to make back the full borrowed amount. This is something that is known as a ‘Down Valuation’.
There are various types available when it comes to surveys, with different prices for each of these. Some will just want to check the properties worth, whereas some will also give you any necessary information on any structural concerns as well as possible repairs that may need your attention in the future. Your Mortgage Advisor in Doncaster will be able to help you find the right survey for you and your property.
Almost there now, as finally, we’re reaching the moment you’ve been waiting for. Once your lender has analysed your case and assessed all the evidencing documentation, you will be presented with your Mortgage Offer.
With this point now upon us, our team of friendly Mortgage Advisors and Administrators in Doncaster, that you’ve become friendly with over the course of your process, will be able to review the offer for you to ensure everything is correct and suitable for you. Once your mortgage offer has been received, it’s then down to your Conveyancing Solicitor to take your purchase from your offer, through to completion.
Congratulations, you have now officially transitioned from First-Time Buyer in Doncaster to a First-Time Homeowner in Doncaster. With any prior anxieties now firmly in the rear view mirror, we hope you’re happy and ready to begin your new life, in that new home you are the proud new owner of.
The final little steps are simply to go get the keys and move in! We hope you had a a fast & friendly Mortgage Advice service in Doncaster with our dedicated team. If you have chosen a fixed rate mortgage, at the end of your term, we will get in touch with you once again to offer our assistance with your Remortgage!
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