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Acquiring a property is a considerable financial commitment, often the largest in one’s lifetime. It’s natural to have questions about the mortgage process.
As a mortgage broker in Doncaster, we’ve helped a diverse range of buyers, frequently encountering queries like, “how long does mortgage approval take?” For first time buyers in Doncaster wrestling with such questions, seeking expert mortgage advice in Doncaster is key.
It’s important to acknowledge that not every query has a straightforward answer, especially regarding timelines, as it depends on individual personal and financial circumstances.
If your credit history is good, mortgage approval could take approximately 2-3 weeks. However, this timeframe is illustrative, and the actual duration may vary. Approval processes may extend if there are current or past credit issues.
In such cases, the mortgage lender meticulously examines your credit file to assess your reliability as a mortgage applicant. For those with adverse credit or a history of credit problems, the approval process might span several months.
It’s imperative to understand that there’s no fixed timeframe for mortgage approval; it is contingent on both the mortgage lender’s policies and your unique financial circumstances.
Securing mortgage approval today is a more intricate process compared to the days before the credit crunch. The current process is careful and time-consuming, aiming to gain a comprehensive understanding of your personal and financial situation.
Mortgage lenders will check various aspects, including your credit, income (including occupation), and outgoings (examined through bank statements) to gauge your suitability for a mortgage.
This thorough evaluation is essential for lenders to determine the level of risk involved. It’s important to bear in mind that you are just one of many applicants in the process.
As a mortgage broker in Doncaster, our approach involves structured stages that guide you through the mortgage application process.
The goal is to make your mortgage journey stress-free, allowing you to focus on finding your dream property in Doncaster while we handle the intricacies of the mortgage side.
Starting your mortgage process is easy; simply book a free mortgage appointment with one of our mortgage advisors in Doncaster. This can be done online by selecting a suitable date and time or by contacting our team directly.
With appointments available seven days a week, you can choose a time that suits your schedule. During the appointment, which typically lasts 30-45 minutes, your mortgage advisor in Doncaster will gather essential information to understand your goals and guide you along your mortgage journey.
Following your mortgage appointment, your mortgage advisor in Doncaster will provide an important document – the mortgage agreement in principle (AIP). This document is vital when making an offer on a property.
It serves as proof to the estate agency that you’ve received pre-approval from a mortgage lender. If you’ve already identified your dream property, we can swiftly proceed to the next step.
Once your offer on the property is accepted, we’ll align it with the ideal mortgage deal from our extensive panel of lenders, encompassing both high street and specialist products.
The details of this tailored mortgage deal will be presented in a comprehensive mortgage illustration document, providing you with all the essential information.
If you’re satisfied with our service and the identified mortgage product, it’s time to initiate your mortgage application. Preparing this application involves attaching several documents to demonstrate your affordability for a mortgage.
Rest assured, we’ll help you in gathering all the necessary paperwork to ensure your application is complete. Upon readiness, we’ll submit your application to the mortgage lender.
Once your mortgage application is submitted, it’s now in the hands of the mortgage lender. Importantly, we’ll never propose a mortgage product that is likely to be declined. The lender will scrutinise the attached documents to verify your mortgage affordability.
They’ll also verify your ID and current registered address, and scrutinise the source of your deposit. If your deposit is a gifted one, the lender will require the last 3 months’ bank statements from the donor and a signed gifted deposit form.
Distinct from a house survey, a mortgage valuation survey entails the lender sending a property surveyor to assess the actual value of the property you intend to purchase. Different property surveys are available in Doncaster, each suitable for different property types.
Your mortgage advisor in Doncaster will recommend the appropriate survey for your situation. The purpose of the survey is to ensure the property’s value aligns with your offer. This step safeguards the lender in case of repossession, assuring they can recover their funds by selling your home.
As long as you consistently meet your monthly repayments, there’s no need to worry about losing your home.
After the lender completes their checks, successful applicants should receive formal mortgage approval. Your mortgage advisor in Doncaster will promptly share this positive news with you.
Subsequently, you’ll be handed over to the solicitors to finalise the legalities, exchange contracts, and prepare for key collection.
Whether you’re a first time buyer in Doncaster, looking to move, remortgage in Doncaster, or invest in a buy to let property, understanding the mortgage process is key. As a mortgage broker in Doncaster, we recommend commencing your mortgage process up to six months in advance.
This allows for the arrangement of your agreement in principle and early property searching within your budget. For instance, if you plan to move home in January, starting the process in the summer aligns with your timeline.
If you’ve had an offer accepted or are considering buying a property in Doncaster, take action now! Book your free mortgage appointment online or by contacting our team today.
Help to Buy was introduced in the 2010’s, off the back of the UK government’ previous FirstBuy Scheme. With a series of pre-existing and new schemes placed under that banner, it was designed to help first time buyers get onto the property ladder.
Over the years we have seen schemes under this banner disappear, whilst others have carried on without that branding. The most popular and well-known of these was the Help to Buy Equity Loan Scheme, which was closed to new applicants towards the end of 2022.
What this means is that first time buyers are no longer able to use a Help to Buy in Birmingham or anywhere in the UK, though this doesn’t necessarily mean that support for home buyers has ended. There are still a variety of schemes that can help to buy in Birmingham!
The Shared Ownership Scheme is an excellent option for first-time buyers in Doncaster who may not have the means to purchase a property outright. This scheme allows you to buy a share of a property (typically between 25% to 75%) and pay rent on the remaining portion. Over time, you can increase your share in the property through a process known as “staircasing.”
Benefits of the Help to Buy Shared Ownership Scheme in Doncaster:
For members of the armed forces looking to settle in Doncaster, the Armed Forces Help to Buy Scheme offers unique advantages. This scheme is designed to make homeownership more accessible for those serving in the military.
Key features of the Forces Help to Buy Scheme:
While not a Help to Buy scheme, the Lifetime Individual Savings Account (LISA) is another useful tool for first-time buyers in Doncaster looking to save for a deposit. With a LISA, you can save up to £4,000 each year, and the government will add a 25% bonus to your contributions.
Key benefits of a Lifetime ISA for first time buyers in Doncaster:
Doncaster offers a vibrant housing market, but the journey to homeownership can be challenging, especially for first time buyers in Doncaster. With expert mortgage advice in Doncaster, provide valuable tools and resources to make this dream a reality.
Whether you’re interested in shared ownership, are a member of the armed forces, or want to explore options like the Lifetime ISA, there are ways to navigate the housing market in Doncaster with confidence.
Shared Ownership is a government scheme that helps First Time Buyers in Doncaster and home movers in Doncaster 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 Shared Ownership Scheme, here are the requirements:
Although this may appear like a lot, it’s the same as most 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 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 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 in Doncaster, or are ready to remortgage in Doncaster, 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 in Doncaster.
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 make this an enduring policy.
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 in Doncaster is not the same as the typical UK Help to Buy scheme in Doncaster.
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.
Try it FREE for 30 days, then £14.99 a month – cancel online anytime.
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.
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.
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.
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.
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 and home movers in Doncaster the opportunity to get themselves onto the property ladder.
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 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:
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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Doncastermoneyman.com & Doncastermoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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Doncastermoneyman.com & Doncastermoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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