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?

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?

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?

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?

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?

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?

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?

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

Agreement in Principle: Hard & Soft Credit Searches

As more and more time goes on, consumers seem to becoming much more savvier when it comes to their credit score. This is increasingly the case in those who are applying for first time buyer mortgages in Doncaster.

Of course the media contributes to this, with finances becoming much more publicly discussed. We actually find regularly that most of the customers who have contacted us for mortgage advice in Doncaster, have actually already taken a look at their credit report online.

Popular websites/apps for credit referencing are always Experian and Equifax, though there are plenty of them out there. We personally would recommend Check My File to new customers, as they can benefit from a 30-day free trial, which can be cancelled at anytime, otherwise going out at £14.99 a month.

They offer a colour-coded report that is easy to follow and can provide an overview of your credit, with information pulled from various sources, such as the aforementioned Experian or Equifax.

We usually find that customers are also now much more aware of the things that can negatively impact their credit score, one of which we will discuss in this article, that being having too many credit searches.

Of course, everyone gets credit searches taken out on them when they apply for any credit. Mortgages, loans, phone contracts, everything.

As a mortgage broker in Doncaster, we personally do not carry out any credit checks on you, though your mortgage advisor will ask for permission from you, as the mortgage lender will be conducting one of these.

Credit searches will usually come in one of two forms, those being a soft search or a hard search.

What is a hard credit search?

A hard credit search is where a mortgage lender will take a much more in-depth look at your credit report. Any company taking one of these out on you must seek permission before doing so, as they can (although not always) impact your credit score.

The bonus for customers having a hard credit search taken out on them is that your mortgage lender will already have a more complete overview of your financial state. If you are able to pass this, you are likely to achieve mortgage success.

This is not always a guarantee in any situation, but it is certainly a good sign. Hard searches leave a credit footprint on your file, which is a record that a hard credit search was taken out. A successful one can boost your credit score.

The issue is, the footprint doesn’t actually show whether it was successful or not. This means that if you are having multiple taken out on you (whether you failed previous ones or are just having multiple done for some reason), this can actually go against you and cause you to be declined.

The reason for this, is that multiple credit searches taken out in a small amount of time can make it seem like you’re applying for lots of credit in one time, which not only harm your credit score but put off a mortgage lender.

This isn’t to say that having a few will be too detrimental, there’s no need to worry too much, just always make sure you are cautious when having credit checks.

What is a soft credit search?

Quite the contrary to a hard search, soft searches are much less in-depth and would most likely be found with say, a price comparison website or as a means to verify your identity. More and more mortgage lenders these days, are also swapping to soft credit searches.

When a soft search is taken out on you, the company conducting the check will not be getting as much information as would’ve been the case if someone else had carried out a hard search. That being said, soft searches are incredibly unlikely to have any impact on your credit file.

Whilst less information is taken from these searches, if the end result is you obtaining a mortgage agreement in principle from the mortgage lender, the difference between hard and soft searches doesn’t necessarily matter, as an AIP is the goal anyway.

Further to these benefits, whereas a hard search can be seen by both yourself and other financial institutions, soft searches are not, only being able to be seen by you and nobody else. That means you can be unsuccessful in one instance and not worrying so much about the ramifications.

Benefits of an Agreement in Principle

If you would like to look at making an offer on a property, we would always recommend having an AIP to hand, as they will become a big help in your quest for mortgage success. These documents showcase to the estate agent and seller, that you’re in a position to proceed and have a mortgage lender waiting.

This puts you head and shoulders above anyone else who doesn’t have this, except maybe a cash buyer. As a mortgage broker in Doncaster, we are typically able to obtain a mortgage agreement in principle for you within 24 hours of your initial mortgage appointment.

Can I Buy a Property in Doncaster With a Small Deposit?

Guide to low deposit mortgages

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.

Utilising the various Government Schemes

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.

Help to Buy Equity Loan

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

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.

Lifetime ISA

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

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.

95% mortgage guarantee scheme

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.

Alternative to using government schemes

There are other ways besides using government schemes to get a mortgage with a smaller deposit.

Have an agreement in principle at the ready

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!

Keep saving!

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

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.

Mortgage Advice in Doncaster: Should I use a Mortgage Advisor?

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.

What does a Mortgage Advisor in Doncaster do?

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.

Why do people get Mortgage Advice in Doncaster?

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.

Benefits of using a Mortgage Broker in Doncaster

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:

• Elaborate On the various mortgages available and the different types of deals.
• Help you get ready for your application to increase your chances of success.
• Try and save you money by searching for a mortgage with lower interest rates and fees.
• Give you advice on how much you could afford to borrow.
• Have access to special mortgage deals that are not available on the open market.

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.

Opening Times

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 

Our 10 Step Mortgage & Home Buying Guide for First-Time Buyers

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;

• Free Mortgage Consultation
• Mortgage Affordability Assessment
• Agreement in Principle 
• Find A Solicitor
• Make an Offer
• Submit Your Documents
• Formal Mortgage Application
• Valuation/Survey
• Mortgage Offer
• Completion

First Step: Get in Touch for Your Free Mortgage Consultation 

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.  

Second Step: Mortgage Affordability Assessment – How are you doing Financially? 

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.

Third Step: Obtaining a Mortgage Agreement in Principle

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.

Fourth Step: Finding the Right Solicitor 

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.

Fifth Step: Making an Offer on a Property 

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. 

Sixth Step: Submit Your Documents 

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.

Seventh Step: We’ll Progress Your Mortgage Application 

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.

Eighth Step: Property Valuation/Survey 

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. 

Ninth Step: Receiving Your Mortgage Offer 

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. 

Tenth Step: Completing The Process 

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! 

Mortgage Advice in Doncaster | Mortgage Payment Holidays

At the beginning of the Coronavirus pandemic, the Government made a promise that all borrowers would be allowed a three-month mortgage payment holiday if deemed necessary. Most lenders followed along with the Government’s guidelines and did what they could to help their borrowers during what was a difficult few months.

We felt it appropriate to write a summary of what mortgage payment holidays are, what lenders are doing and who will be able to provide help and guidance through these next few months.

We feel that it is best to summarise what mortgage payment holidays are, what lenders are doing, and who can provide you with help and guidance through these next few months.

What is a Mortgage Payment Holiday?

Mortgage payment holidays are an agreement entered into with your bank, building society or mortgage lender to defer your monthly mortgage payments for a set period. In this case, 3-months.

It does not mean you never have to pay the amount back, but the interest you defer is added back onto the loan amount, while your capital balance will not decrease. In other words, your mortgage amount will increase slightly, and you will continue to attract interest on the whole amount.

When you are ready to continue the payments, this could mean that either your monthly payments are recalculated at a slightly higher level, or your mortgage term is increased somewhat. Most lenders will probably prefer not to extend your mortgage term as this could take you past their standard retirement ages, but the detail on this will follow in due course.

Dependent on your mortgage deal, you may be able to pay off a lump sum later in the year to bring your mortgage back to where it would have been.

Mortgage Payment Holidays are available both for those with residential or buy-to-let mortgages, which means landlords also have assistance if rental payments are affected.

What is the Government Proposal?

The full proposal is in detail below:
• Mortgage lenders will offer an automatic 3-month mortgage payment holiday for customers impacted, directly or indirectly, by COVID-19.

• The mortgage payment holiday will apply to customers who are up to date on their payments, not in arrears, and wanting to self-certify that COVID-19 impacts them.

• This means that lenders will not complete an income and expenditure assessment, or evaluation of alternate payment options as ordinarily required under MCOB.

• This proposal will allow lenders to be more responsive to customer needs and offer forbearance in a simple way to customers in an environment where COVID-19 also impacts the operation of collections teams made.

• Customers will be made aware that interest will accrue in the holiday period and they will need to make up deferred payments in the future.

• Customers who wish to undertake a full assessment of their ability to pay or financial difficulty may still do so.

Mortgage Payment Holidays | How do I apply?

We would recommend speaking to your Mortgage Advisor in Doncaster. They will asses your financial situation first before looking to defer your payments as your situation may not yet be pressing.

Approaching a Mortgage Broker in Doncaster like us will allow you to explore all of your current mortgage options and could make things feel a lot less stressful.

For a customer, up to date with payments, not in arrears and impacted by COVID-19:

• The customer would contact the lender and inform them that they are affected by COVID-19.

• The lender would accept these details from the customer and offer an automatic 3-month mortgage payment holiday.

• no evidence will be sought from the customer.

• The lender makes the customer aware that interest will accrue and will be contacted at the end of the three months to complete an assessment of the customer’s circumstances.

• At the end of three months, an arrangement to pay will be agreed with the customer according to their circumstances to recover any shortfall, while ensuring that the mortgage remains affordable and sustainable.

• The lender notifies the customer that if they wished to complete a full assessment now, there might be other forbearance options more suitable to the customer.

Mortgage Payment Holidays | What does this mean for my Credit Score?

In some cases, a mortgage payment holiday can have a negative impact on your credit score, but most lenders have now said that for cases linked to the virus, they will ensure that this is not the case.

You must ask this question to your lender directly and record the response, including the date and the name of the person you are speaking to avoid confusion later. Different lenders are doing different things.

Will I still be able to remortgage or take a Product Transfer with my lender?

At first, everything seemed like it would remain exactly the same and you would still be able to make changes to your mortgages as normal. This has changed in the last couple of days and lenders have been asking borrowers to avoid making changes whilst you are within a mortgage holiday period. So, at the moment they are not allowing mortgages and product transfers.

Borrowers nearing the end of their existing product may be forced to move on to the higher lenders variable rate. This could mean that borrowers who act too early could find themselves on a mortgage payment holiday that accrues interest on a costly variable rate.

We would highly recommend speaking to your Mortgage Advisor in Doncaster they will determine the best course of action based on your personal and financial situation. If possible, arranging your mortgage transfer first then asking for the holiday would seem to be the most sensible way forward.

My Mortgage got Offered Will my Lender Withdraw the Offer?

At the moment, no Lenders have withdrawn mortgage offers; in fact, some are extending offers past the standard six-month expiration date. 

Should I Pull out of my Purchase?

You should not pull out of your purchase unless, for example, you are worried about losing your job as a result of Coronavirus. We are advising everyone to proceed as usual for now and “wait and see” – you are not committed to completing your purchase until contracts get exchanged.

What “Other Options” are available?

In some cases, lenders can offer you a temporary switch to interest-only in order to reduce your monthly payments but not to add any further to the loan amount by still servicing the interest payments each month.

It may not be necessary to convert all your mortgage to interest only, and it may be that putting part of the mortgage on this basis could give you the breathing space you need.

People with savings may find that remortgaging onto an offset basis could give them a helping boost they were looking for, they will be cutting down on their monthly payments whilst keeping hold of their savings.

For example, someone with a £400,000 loan and £100,000 in savings would only pay interest on £300,000. This will massively reduce their monthly mortgage payments.

For others, a straight remortgage to another lender, calculating the cost of any early repayment charges, may well be enough to ease the burden or simply extending the term of your mortgage.

If you still have any other questions on mortgage payment holidays or just want general Mortgage Advice in Doncaster, give us a call today. We want to help you and your mortgage journey through these tough few months ahead. Speak to an experienced Mortgage Advisor in Doncaster today.

Why use a Mortgage Broker in Doncaster?

Benefits of Using a Mortgage Broker in Doncaster

The main reason home movers and first time buyers in Doncaster like yourself choose to contact a mortgage broker in Doncaster is to have someone trusted by your side to help the process of buying a home go as smoothly and as quickly as it can go. 

After all, the home buying process can be a stressful experience, and for our customers, it’s a soothing relief to know they have got someone on their side to deal with the complex parts, with availability to answer any questions they may have.

Your mortgage advisor will work hard to try and ensure that you obtain the cheapest or at least most beneficial mortgage outcome for your personal needs. This level of dedication and passion for our work applies no matter the mortgage type. 

Whether you’re making your first purchase, a second purchase, or you wish to remortgage, we put everything into our service to ensure our customers have the best outcome available to them.

When should I get mortgage advice in Doncaster?

If you’re looking at taking out mortgage advice when buying a home, we would personally recommend talking to a mortgage advisor in Doncaster as early on in the process as you can.

Your committed member of the Doncastermoneyman team will be able to help you work out roughly how much you’ll be able to pay per month, as well as how much you may be able to borrow.

Different lenders each have other criteria, so speaking to an expert in the field with a wealth of knowledge surrounding these criteria will significantly benefit you. If you know what you can afford well in advance of making an application, it may help you avoid any potential future disappointment. 

Communication and responsiveness are also a large part of what we do. We aim to ensure all of our customers are kept informed about the progress of their mortgage application, making sure you are fully aware of what is going on and where the process is headed next. 

If something ever goes wrong or you have any questions, we are always available at the end of the telephone, ready to help you out in any way we can.

We Work For You

We will work for the customer and not the lender. This is important to remember throughout your process. Our team is firmly in your corner, sometimes having to argue how strong an application may be to ensure it goes through. Thanks to our initial checks, we find that we get an in-depth understanding of our customer’s financial situation. 

Additionally, the company process of requesting and checking your proof of income and bank statements ahead of time allows us to avoid any hurdles that may arise carefully, hopefully before they can become a factor. 

We also can help you choose the right type of survey for your property transaction, as well as instruct a Solicitor on your behalf to carry out the legal aspects of your final transaction. 

We have completed a lot of application forms on behalf of our brilliant customers, again working hard to ensure complete accuracy and giving your application the best chance of achieving in the end. 

Building Customer Relationships

Finally, our motivated and caring Mortgage Advisors love to build up customer relationships, to assist with future mortgage enquiries, be this as a buy-to-let landlord with your portfolio or to remortgage when your term ends. 

Your journey starts with an affordability assessment and Agreement in Principle before you even get to the part where you find a house.

Once your purchase is complete, your advisor will still keep in regular contact via email, and in the six months running up to the initial mortgage product coming to its end, we will get in touch once more to discuss your Remortgage options. 

We are then able to compare the market on your behalf as we did before, to help you obtain the best remortgage deal available for your circumstances.