Every mortgage lender works in a different way as well as utilising their own approaches to determine whether an applicant gets accepted for a mortgage and who doesn’t. You may find that some lenders’ criteria are more difficult to match than others might be. It all comes down to how rigorous they are and how good your credit score is.
Through our extensive experience, we regularly find that mortgage applications are declined for no other reason than the applicant struggling to meet the right criteria for that specific deal. Because of this, we do highly recommend you seek the help and advice of a Mortgage Broker in Halifax. We have a team of expert and friendly advisors who will work hard in getting you the most suitable lender for you and your personal circumstances.
Prior to applying, you should look at your credit file to check if it’s mortgage ready! In the situation where you feel it’s not up to standard, you will need to look into ways to improve your credit score. If you are struggling with improving this, get in touch with a Mortgage Broker in Halifax who will be able to provide the information you need to help your credit score.
One thing to keep in mind is that there will be a small group of people who are eligible for every deal that is available to them. The genuine reason for this is likely to be that you are searching for the wrong mortgage deals. You may have found a deal that is cheap and tempting, however, it doesn’t mean that you will pass the lender’s criteria and qualify for that particular deal.
As a dedicated and trust Mortgage Broker in Halifax, we would strongly suggest that you research the different types of mortgages available or contact our team and take advantage of the free mortgage appointment we offer.
When speaking to customers who are looking for mortgage advice is that many look to comparison websites to find a mortgage in Halifax. There is no issue going down this route, however, you need to be aware that the price comparison sites will only analyse the different costs of mortgage deals instead of matching you to the lender’s criteria.
Going through this process isn’t as time efficient because the mortgage lender may end up declining your case weeks down the line. This could result in you losing the property you were looking to buy or impacting the property chain that you were a part of. In some cases, you may get declined because you picked the wrong mortgage which can negatively affect your credit score with a failed application.
On the flip side, applicants may find that they are eligible for a large range of mortgage deals, however, in order to match the criteria of those deals, lenders may look to only offer you a reduced deal. This can be a common occurrence with lenders being known to sometimes declare that you can borrow a set amount but change their mind and look to reduce the previously available mortgage.
As previously mentioned, each lender has their own way of managing the mortgage process. There can be a distinct differences between mortgage lenders and there is a low chance that you are going to match up against all of their individual criteria. Therefore, you need to pin down your options and work out what the most suitable option will be.
Whether you’re a First Time Buyer in Halifax or looking at Moving Home in Halifax, our team believe that trusted mortgage advice can be the best way to feel supported and informed throughout your mortgage experience. We have a fantastic team that provides a tailored service that aims to make you feel supported throughout and achieve your mortgage goals.
Throughout the years we have had the opportunity to help thousands of customers, helping out with specialist mortgage cases to help them find a level of success with mortgages that they otherwise thought they never achieve.
By getting in touch with an expert and hard-working Mortgage Broker in Halifax, you’ll be able to know what the best way is to improve your credit score in the event of any unfortunate financial circumstances.
If you are looking for a helping hand with a specialist mortgage situation in Halifax, contact our team today with a Mortgage Broker in Halifax for your free initial mortgage appointment.
Within your mortgage journey, you will need to show the lender your bank statements for them to find out certain things regarding your financial management. The reason lenders pay close attention to this is that your bank statements show them how well you conduct your finances and conclude whether you are a responsible borrower or not.
A common question we do come across when speaking to mortgage applicants is if gambling transitions look bad on their bank statements.
You may be one to throw your money on the Grand National once a year or you may be a regular user of internet betting websites. Either way, properly licensed gambling is not illegal. This is obviously evident in the many advertisements you may see about gambling these days.
Many people gamble as a hobby or pastime, however, it’s also key to keep in mind that the general ethos surrounding gambling is to gamble responsibly. This is something you need to do before applying for a mortgage.
Even though it’s not up to a mortgage lender to tell you how to spend your money or that you should gamble responsibly, it is their job to lend responsibly and follow the mortgage regulations.
From a lender’s perspective, they need to be careful who they lend to and prove to regulators that they are responsible, they do expect applicants to have a similar attitude from an applicant and their finances.
Furthermore, if you were to lend money to someone, you would want to know that person to who you are lending is a reliable person who will pay you back.
As mentioned at the beginning of the article, a mortgage lender cannot stop you from gambling as it is a legal activity. If you do gamble, it doesn’t automatically mean you are going to get declined, there is a chance you can get a mortgage!
It can be difficult for applicants with gambling habits but a mortgage lender can decide whether your transactions are reasonable and responsible or not.
One way they could determine this is by working out the number of times these transactions happen as well as comparing how big the transaction is and the applicant’s income. From this, they will look into how much of an effect this has on their account balance.
In the case where you only make smaller transactions on an occasional basis, with little impact on your credit score, it’s likely that a mortgage lender won’t have an issue with them. On the other hand, bigger, recurring transactions are likely to be more irresponsible which could result in your application being rejected.
The overall purpose of submitting your bank statements to a mortgage lender is for them to look at how well you manage your finances and to see if you are a reliable borrower.
Keep in mind that mortgage lenders are financial institutions that usually sell current accounts, overdraft options, credit cards, personal loans and more. Therefore they will be significant in your mortgage application.
As a mortgage applicant, you need to show how you utilise these facilities. For instance, having an overdraft and using it now and again isn’t an issue constantly going over it could go against you.
Furthermore, they will look out for any missed payments on any personal loans you have and any undisclosed loans you have. An applicant could be managing their payments well but have not mentioned a regular outgoing which won’t look good.
Lastly, some mortgage lenders look at the length of time you are overdrawn over the month. Are you the type who goes to credit on payday and finds it difficult to get through the month? Would a mortgage make you struggle even more?
Your main job is to be sensible and plan ahead if you can. Usually, a mortgage lender would like to see the last 3 months’ bank statements which show your income and regular outgoings.
With this in mind, you need to be careful before you look to apply for a mortgage in the future. Step away from gambling for a while and get your bank account looking good for the lender.
As a Mortgage Broker in Halifax, our team can provide a helping hand throughout the mortgage process and you may find that there are mortgage lenders willing to take fewer bank statements.
It is key that you are sensible before applying for a mortgage as even lenders who are willing to accept less at first, still have a right to request more if necessary.
Please make sure you gamble responsibly! It can have an impact on your financial and mental state.
As a first time buyer in Halifax, you may have little to no knowledge about mortgages which is why we strongly recommend that you get in touch with an expert mortgage advisor.
Through our experience, we have built a brilliant reputation on helping a plethora of customers from varying circumstances. Therefore, it’s ver likely we have encountered your situation before.
The lender will conduct a property survey when the offer you put forward has been accepted. The property will be examined for its condition, will bring up any structural issues, and will notify you of any repairs or maintenance needed.
If you have found a property that has some structural issues surrounding it and will need a lot of work, the lender may decrease the initial amount they were going to offer to match the price with the condition of the property.
A property surveyor will carry out this job and will let you know of any minor damages that need to be done and any repairs that need to be fixed before your move-in date.
If you are looking for a place that provides property surveys and homebuyers report, there is many reputable organisation in the UK to choose from. The more well-known is the Royal Institution of Chartered Surveyors. We do recommend that you hire a surveyor who is an accredited member. There are many types of surveys so it’s key you find the one that is right for you:
Each survey type varies in terms of what each highlights, pricing and how the duration of time it takes to be completed. Sometimes, mortgage lenders will add a free property in your offer.
On the flip side, not all lenders will offer this service for free. We do find that the a deal that offers a free survey will usually come with paying a lot more for set-up/arrangement fees.
For example, one survey could be more detailed than the other. If you are in a situation where you weren’t notified about something in your survey report you have the legal right to work out an alternative, if necessary.
As mentioned, each type of property survey differ from the other, one of the simplest ones is a Mortgage Valuation and is carried out to see how much a property is worth.
A Mortgage Valuation work by finding out the property worth and if they find the amount they valued it at doesn’t weigh up to the you agreed to pay for it, there could be a chance that your lender would withdraw your offer as you will be lending more than the property’s worth. If you are in this case, you can either attempt to re-negotiae the price with the owner or pay the different between the offer and the value the lender is going to lend you.
It won’t provide an in-depth report, therefore, it is the cheapest property survey. The report will mentioned any obvious repairs and defects like structural damages. One thing to keep in mind is that it will not show small, minor damages on the property.
If you are wanting a more detailed report, you will need to upgrade your survey. This will come with a cost, however, it could be beneficial in the long run. With this report, you will find out everything that need to be sorted before any further damage could be done.
A Homebuyer’s Report will highlight how safe the property is to live in. It will detail issues like mould, damp walls and ceiling or anything that isn’t in line with the current building laws.
A thorough inspection will carried out in the property will every room. The surveyor will check everything including the little details which could take them up to a day on a big property.
As an expert Mortgage Broker in Halifax, we would strongly advise that you sort out a Full Structural Survey if you are looking for an in depth report of the home you’re buying. This does particularly apply to those who are buying an older house because it will let you know of any minor repairs and damages that are on the property. There is more of a chance with this with an older property.
This will come with a price, however, because of the detailed that goes into the report, however, it will provide you with the most information about the property. You will be given a comprehensive report that will let you known about the overall condition of the property and notify you of any changes that need to be made if the property carries through to purchase.
It can take up to a full day to have a Full Structural Survey carried out, however, this does depend on the property size.
For First Time Buyer in Halifax with a new build, property surveys are carried out slightly different. You may think that you don’t need a property survey carried out because the house is new, however, it’s good to have one done just in case.
A Snagging Survey is a property survey that is designed for new builds. The information in this survey will include the property’s overall condition, highlighting both minor and major problems. Examples of these include missing door hinge or a crack in the ceiling (which isn’t always the case with a new build).
In the case where you are moving into a new build that’s already been built, it would be good to get a snagging survey sorted on the property prior to moving in. With this, you can be able to negotiate the price should they find anything wrong with the property.
Our Mortgage Advisors in Halifax are happy to help if you are wondering which property survey is the best one for you. To speak with one of our fantastic advisors, book your free mortgage appointment or get in touch with our team today!
Through our experience we have helped many people who are taking that first step onto the property ladder as well as Home Movers in Halifax.
The mortgage journey can come with its ups and downs, however, it can be fulfilling. Going through the process turn into one of the following positive outcomes:
Whatever route you go down, in the future, you will eventually come to the end of your mortgage term. You can either sell up and upsize/downsize into a new property.
Remortgage is a popular option for customers who are looking to sell their portfolio to the tenant or another buyer and look at other opportunities.
In the case where you use the proceeds from a new mortgage to pay off a pre-existing mortgage, this is a Remortgage. It can be beneficial when you are looking to find lower interest rates and better mortgage terms.
With the 20 years or so experience with Malcolm Davidson (Director / Mortgage Advisor), we felt it would be helpful to collate all the options you can choose from when it comes to taking out a Remortgage and create a guide.
Typically, your initial mortgage deal will usually last 2-5 years and include low fixed rate or possibly discounted rates. You might get placed on a tracker mortgage which means your mortgage will follow the Bank of England’s base rate.
It’s likely you will get moved along to the lenders Standard Variable Rate (SVR) as soon as your term ends. This type of mortgage has an interest rate that can fluctuate because it depends on what the lender wishes to charge.
Unlike a tracker mortgage, this doesn’t follow the Bank of England’s base rate. Many choose to look at Remortgaging for better rates to save money on their monthly payments due because SVR and tracker mortgages are a more expensive route to choose.
You might find that 2-5 years into occupying your home that something isn’t quite right. It could be you are wanting an extra room/larger living space for your kids/belongings, a new kitchen, a new office or loft conversion.
Instead of moving into a larger house, it might be best you look into advice in order to release equity so you can fund any renovation costs. Obtaining planning permission and funding can seem like a nerve-wracking concept, however, it can be a less stressful option compared to finding a new home.
Furthermore, it can reap rewards when going through the process of a development in your current home and can pay off in the future with a potential increase in the value of the property if you look to sell up or rent out in the future because of the expansion of space.
Another reason why some may look into Remortgage in Halifax is for a better mortgage term through reducing the length or switching to a more flexible product.
Even though reducing the size of your term can mean you aren’t tied down to your term for as long, it does mean your monthly repayments will be a lot higher. The longer your term, the lower the payments will be over time.
In some cases, you might look into getting a better mortgage term by looking into a more flexible mortgage term when they remortgage. This option can be appealing to many homeowners because of the benefits like having the option to overpay.
Furthermore, homeowners also have the ability to move the same mortgage and rates over to another property if they decide to move at any point in the future. As mentioned, you are able to overpay which means you can pay off your mortgage as quickly as you’d like.
Despite a flexible mortgage sounding a lot more appealing, they usually come in the form of a tracker mortgage. Again, this type of mortgage follows the Bank of England base rate which means your payments may change depending on interest, this can make them a little unreliable.
There is a level of equity in everyone’s properties. This is summed up by finding out the difference between the remaining total on the mortgage, and the current value of the property.
As mentioned previously, you do have the choice to use the equity to fund home improvements, however, there is a number of options out there for you.
Other options you could use the equity to cover long-term care costs, so cover their income, to pay off an interest-only mortgage, or to have free spending money.
Sometimes, Buy to Let landlords will use a remortgage to release equity so they can cover their deposit for buying another property in the future as an addition to their portfolio.
For homeowners who are aged 55+, with a property worth at least £70,000, it may be beneficial to take a look at your options for Equity Release in Halifax. Speak to a trusted later life mortgage advisor to learn more about later life lending.
Using a remortgage to release equity in order to pay off any unsecured debts that you may have accumulated over time is a more popular options people go for.
Debt Consolidation is based on your credit rating as well as amount on how much you’re entitled to and the value of the property. Furthermore, this could result in the limitation of the amount you can have.
In order to pay off your previous mortgage and your debts, it’s required that you borrow more than your outstanding mortgage amount. Either way, your monthly repayments will most likely be higher.
As much as this isn’t the most perfect situation, it’s very helpful that the option is out there should an unfortunate situation arises.
There is options out there is you do have a significantly damaged credit rating, however, this situation will not be as simple. Therefore, it’s important that you seek Specialist Remortgage Advice in Halifax before progressing.
Even doing this doesn’t mean it’s guaranteed. Before consolidating and securing any debts again your home, you must seek Mortgage Advice in Halifax.
If you are coming to the end of your term and are wanting to look into the option available for Remortgaging, get in touch with an open and honest Mortgage Broker in Halifax.
Having an advisor by your side can allow you to discuss your situation and future in order to get the best plan of action when going forward on your mortgage journey. We always work hard to make this process quick and smooth.
Income Protection provides the opportunity for people who are out of work due to illness or accident through a monthly payment to provide financial security. When it comes to the amount of cover to take out, this can be determined with the help of an Advisor as well as the amount of time they are prepared to work before they are eligible to put a claim in.
Comparing it to life cover, Income Protection Insurance can be expensive. This is due to the fact that you are more likely to claim on your Income Protection Insurance than claiming on your Life Insurance policy, but the payment of monthly benefit will carry on until you return to work. This only applies to the cheaper version of the policy which only pays out over 24 months.
There are some differences between Income Protection Insurance and Critical Illness Cover. Income Protection Insurance pays out for anything that stops you from working whereas. Critical Illness cover prevents you from working have specified illnesses they apply to.
Applicants who are employed by companies that do not offer generous sick pay schemes or are self employed usually look at this type of policy.
Here at Halifaxmoneyman, we believe in equal opportunity in the situation of a customer taking out insurance. We wouldn’t be doing our jobs if we didn’t mention it!
Our mortgage advice team offers all our customers a free, no-obligation protection review. From this, we will then recommend which products like critical illness and income protection match your circumstances. If necessary, we will then work out the plan that fits well with your available monthly budget.
Providing Income Protection Insurance Advice in Halifax & Surrounding Areas
So you have passed all the exams you need and have reached your goal of becoming a newly qualified teacher. Your next step is finding your dream teaching job and start in the classroom. If you are located too far from the particular school you are looking to work at, you may find yourself looking at the option of moving house in Halifax.
You may find juggling a place to move and the struggle of homeownership alongside settling into your new job as a teacher to be stressful, however, this situation is common. As a Mortgage Broker in Halifax, we have helped numerous customers in this situation.
As a newly qualified teacher, it can be tough finding a lender that will offer you a mortgage. This is due to the fact that you will have no history of employment or being on a temporary contract. Despite this being a constraint, don’t worry, getting a mortgage as a newly qualified teacher can be achievable.
In some circumstances, lenders may offer good deals that benefit individuals in this particular sector. Finding the most suitable lender is important, but can be a struggle, however, this is where we can help. Our expert mortgage advice team in Halifax can find you the most suitable deals and rates by searching through 1000s deals.
Depending on cirNewly Qualified Teachers can be offered a range of types of mortgages such as:
Below is the following point lenders may factor in:
Through our countless years of experience working in the industry, our knowledgeable and dedicated Mortgage Advisors in Halifax have helped people with various mortgage situations. Having a trusted Mortgage Broker in Halifax by your side can be massively beneficial.
Contact us and our team can help look at your options and find out more about your situation to see if you will be eligible to get a mortgage that fits your circumstances.
Life insurance can act as a financial safety net to support your family in the event of your death. There are different types of Life Insurance to choose from and in this article, we will discuss what types are out there and explain why they are essential to take out.
Speaking with a Mortgage and Protection Specialist in Halifax might be very beneficial. Here at Halifaxmoneyman, we offer a free insurance consultation that we highly recommend you take prior to commiting to any insurance policies because you want to find the best one that matches your circumstances.
The reason we offer this is because life insurance can get complex, especially if you are not sure what you’re doing. As well as the different types of life insurance, you also need to choose what your policy covers and how long it will last.
Life insurance is a type of policy that financially supports your family in the event of death. This is through a lump sum of money that is passed down, usually to a family member or friend.
In the event of a claim, you can decide if the cover is paid out all at once or through regular payments.
As well as providing financial support for a family member, it also was introduced to replace lost income or payout outstanding debts owed in the person’s name e.g. a mortgage.
The amount that is paid out alters depending on the type of cover that was taken out. The advantage of life insurance is that you decide what your payout goes towards. For example, you could specify that you want your payout to be used only on debts like a mortgage or car loans.
There are several different types of life insurance policies. Below are the policies that we commonly see people take out as a mortgage broker in Halifax:
A Level Term Life policy provides you with a payout that will remain constant throughout your policy’s duration. This means whether a claim is made 5 years into the policy, or 20 years into the policy, the amount paid will be the same. The duration of the policy is usually between 5-25 years in 5 year increments.
A policy that is usually used to cover a mortgage is Term Life Insurance. It’s common for people to take out this policy that’s in line with their mortgage term. If you do pass away and still have your mortgage to pay off, the policy will pay out. Due to this, the mortgage payments will not have to be relied on by a family member or any other name attached to the mortgage.
Through our experience as a mortgage broker in Halifax, this type of life insurance seems to be the type that is the most popular.
It might be a surprise to some as you may be thinking, why would you want to take out a policy that decreases in value? This policy is targeted at homeowners with repayment mortgages – which is most people. When you do pass away, the policy works by paying off the outstanding mortgage balance.
The policy’s value mirrors the outstanding balance remaining on your mortgage. Therefore, as the amount owed on your mortgage decreases, so does the sum insured.
Decreasing life insurance is usually taken out alongside other insurance products depending on your circumstances. It’s best that you speak to a Mortgage & Protection Specialist in Halifax to give you guidance on what they recommend to be the most suitable insurance for your needs.
This type works in the opposite way to Decreasing Term Life Policy. Increasing Term Life Insurance will payout should you die within your fixed term.
Furthermore, the amount that you have covered increases as your term goes on. Through the duration of your policy term, the fixed amount increases. As you can see, this is different from Decreasing Term Life Insurance.
The reason why this policy was introduced was to protect the policy’s total value against inflation and is usually in line with the retail price index.
We find that Whole of Life Insurance is not the one at the top of the insurance market. Despite this, Whole of Life Insurance may still be helpful as well as being the perfect policy that suits your circumstances.
As stated in the name, Whole of Life Insurance is the type of cover that lasts your whole life. In the event of your death, the policy you took will payout. You will find that Whole of Life Insurance will be a higher cost compared to a Level Term Life Insurance. This is because you are covered for your whole life instead of a fixed term.
As long as you have kept up-to-date with your life insurance payments, your cover will apply for your whole life. This type of insurance is commonly used for family protection and is part of inheritance tax planning.
Joint Life Insurance is the type of policy that you may choose if you are in a relationship or married. This policy will payout in the event of one of you dying. Joint Life Insurance is often cheaper in comparison to both parties having two separate Life Insurance policies. It’s you and your partner’s decision if you want to take one out jointly or two separate ones.
The policy pays out then ends in the event of one of you passing away. This may seem like a drawback to the policy, however, if you intended to take out the policy to pay off your mortgage then you would still be able to do so because the money will be released following the death of one of the policyholders.
In some cases, your place of employment may offer you Death in Service cover as part of their employee benefits package. This is something that not all workplaces offer as they are not obligated to do so.
The cover works by paying out a lump sum of cash to the employee’s family or a person of their choice if they die. Usually, this sum is up to 5 times their annual salary. Unlike the other types of policies, there is a specific limitation on what can be done with the employee’s money.
The payout is not associated with if an employee dies in the workplace.
Life Insurance options is something you shouldn’t disregard just because you’re a single home owner.
It’s not unusual for people to forget life insurance when they have settled into a new place and are currently living on their own without children or a partner. Unfortunately, Life Insurance doesn’t always apply to single homeowners which is why people choose to ignore it.
Even if it might not apply to you now, your circumstances could change in the future, which is why you should think about it because Life Insurance could become a crucial thing to have.
To find out if it’s worth taking out Life Insurance as a single homeowner, get in touch with one of our Mortgage Protection and Insurance Specialist in Halifax.