The Shared Ownership Scheme is a variation of a Help to Buy Scheme made by the government, with the purpose of helping people onto the property ladder. It is available to permanent residents of the UK who are either first time buyers in Halifax or former homeowners, perhaps struggling to buy a property.
The criteria for being eligible for Shared Ownership in Halifax is that your household income must be less than £80,000, with your new home almost always being a leasehold property. Leasehold means you will be buying your home for a specific amount of time.
The Shared Ownership Scheme allows people to purchase a home as part mortgage (usually between 25-75% of the property) and also as part rent. The rent (which may include service charges and ground rent) will typically be a lower rent cost than market value, with you paying that to a housing association.
If you have some familiarity with the Shared Ownership Scheme and how it used to work in years gone by, there have been important updates as of April 2021. These changes were introduced as part of the government’s Affordable Homes Programme.
One of the first changes made to this scheme is that whilst the previous minimum property share purchase amount was 25%, in some cases it can now be as low as 10%. Furthermore, you can now buy 1% instalments, as opposed to the former 5-10% share instalments.
Last of all, the fees that you pay when you purchase additional shares is now lower. Instead of you also being responsible for maintenance or repair costs, for the first 10 years of your home ownership, it is actually up to your landlord to cover these.
If you took out a Shared Ownership mortgage in Halifax before these rule changes came into play, these rules may actually apply to you going forward, though it’s always important to check with your mortgage provider first, as this might not always be the case.
Before you tackle your mortgage process, you’ll first need to make sure that you definitely qualify for a Shared Ownership mortgage in Halifax. This requires you to get in touch with a local Help to Buy agent in your area, to find out if you meet the criteria.
When you contact this person, they will usually need a selection of information from you, such as how much income you have, what your budget is, where exactly is your preferred area and what your credit history is like. Once your eligibility is confirmed, it’s on to your mortgage application.
A trusted mortgage broker in Halifax is best when applying for a mortgage, as not every mortgage lender out there has products that work alongside the Shared Ownership Scheme. The amount you can borrow will most likely depend on factors such as income and other fees included, such as what the rent will be.
Of course as tends to be the case with any type of mortgage, there are pros and cons to having a Shared Ownership mortgage in Halifax. To look at it fairly, it’s important to remember, as said above, not every mortgage lender will offer products that work with a Shared Ownership mortgage in Halifax.
Even with that in mind though, there are still lots of mortgage lenders available, including ones we have on our panel, who offer mortgages to those looking to use Shared Ownership in Halifax. These types of mortgages can offer a sense of long-term stability as you become both owner and occupier.
Having the money for a deposit can sometimes be seen as a concern for home buyers, as saving money can be challenging. Thankfully, Shared Ownerships in Halifax tend to require deposits that are lower than open market purchases, making them much more accessible.
Whilst these are certainly great positives, remember you would be paying 100% of the ground rent and service charges, even if you have the minimum share. You are usually able to do something called “staircasing”, which allows you to buy more shares as time progresses, up until you hit 100%.
When you do this, there will no longer be the need for you to pay rent, though your mortgage, ground rent and service charges will still apply. Once your owned share exceeds 80%, Stamp Duty costs may apply, though this won’t always apply to first time buyer mortgages in Halifax.
Even though Stamp Duty costs can be quite expensive, especially when you are factoring in other elements, your monthly mortgage payments can still be a lot cheaper than outright having a mortgage would be. Sometimes it may even be cheaper than privately renting.
Speaking of privately renting, you will benefit from having a secure time in your home, unlike you would renting private. Providing you can keep up your monthly mortgage payments, you are able to stay for the length of your lease, which is often between 99 and 125 years.
Because your home is also part owned by another party, you will need to make sure you get permission from the appropriate housing provider before you look at making any alterations to your new home. This can remove some of the freedom that owning the home outright would have.
After you have owned your home for a while, you may feel like you would rather not remain there and look to sell your home. With other mortgages, so long as your fixed period has ended, this would be fairly straightforward. With a Shared Ownership mortgage in Halifax, this is different.
Whether or not you are able to actually sell your home with a Shared Ownership mortgage in Halifax attached to it, depends on how much of the property shares you own personally. You’ll typically need to own 100% of your home, before you can sell it.
It is important to remember though, that the housing association will in most cases have ‘first refusal’ rights, for the first 21 years following your initial purchase. This means they are, by law, able to make a property purchase offer to you, before you put it on the open market.
If you are not the sole 100% owner of the property, you will need to first look at purchasing your remaining shares, before you look at selling the property.
A Shared Ownership mortgage in Halifax is an option that can prove really useful for first time buyers in Halifax who are determined to get onto the property ladder, but only have a small deposit. This mortgage scheme can help you achieve your home owning goals!
That being said, having a Shared Ownership mortgage in Halifax can prove to be quite complex, as you are taking a lot on. This is even more so the case when you look at the costs involved. Make sure you are fully prepared and know the contract terms.
At the end of the day, it’s all about what you would prefer. By booking in for a free mortgage appointment with a trusted and experienced mortgage broker in Halifax, you’ll get to speak with a mortgage advisor in Halifax and prepare for your mortgage future.
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.
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.
Whether you happen to be a First Time Buyer in Halifax hoping to find your footing on the property ladder, or you are currently Moving House in Halifax, it will become apparent soon enough that there are many different types of mortgages for customers to utilise.
There will be some options that are more popular than others, whilst some may be less common to come across. We have put together a comprehensive list of the different mortgage types we come across the most.
You can watch many more Helpful Mortgage Guides on moneymanTV here or go directly to our “Mortgages Explained” YouTube playlist here.
A fixed-rate mortgage allows for a customer to keep their mortgage payments consistent for a that your mortgage payments are going to remain consistent for a chosen period of time.
You have full control over the length of time in which you can fix your payments for, with people typically choosing 2, 3 or 5 year fixed rates, though possibly longer.
Regardless of any changes to the economy, inflation or interest rates, you can stay comfortable in your home knowing that your mortgage, arguably your biggest ever financial commitments, will stay the same for your fixed period.
A tracker mortgage is where the interest-rate of your mortgage will follow along with the Bank of England’s base rate.
To simplify this for you, the mortgage lender that you end up with will not be the one to choose your interest-rate, and you won’t be deciding that either.
Instead, the interest-rate on your mortgage will be set at a percentage above the Bank of England base rate. For example, if the base rate is 1% and your mortgage is tracking at 1% above base rate, you will be paying a rate of 2%.
A repayment mortgage is the standard type of mortgage you will come across, paying back both a combination of interest and capital each month.
So long as you continue paying your mortgage per month, for the duration of your mortgage term, you will be guaranteed to have paid off your mortgage balance in full by the end of your term, owning the property.
This is all considered to be the most risk-free way to pay back the capital on your mortgage balance. In the early stages of your mortgage term, you’ll mainly be paying back the interest, with your balance reducing slowly, especially with a 25-30 year term.
Your mortgage will alter slightly towards the last ten years or so, as you will be paying off much more capital from your balance than you will be with interest, meaning your balance will come down a lot quicker.
Though you will see a lot of modern buy-to-let mortgages being set up as interest-only mortgages, it is a lot more difficult to obtain a residential interest-only mortgage.
It is not entirely impossible, though it is a lot harder to find these, as mortgage lenders may not offer these to customers.
They do become helpful though in relevant situations, such as potentially downsizing when you are only, or if you have external investments you can use to pay back the capital on the mortgage.
There are much stricter rules with interest-only mortgage products these days, with the loan-to-values on these being much lower than they would be in the past.
By taking out an offset mortgage, your mortgage lender will be assigning a savings account to you, to run alongside your mortgage term.
The way that this works is that if you were to have a mortgage balance of £100,000 and £20,000 is deposited into your savings account, you would only be paying interest on the difference between that, which would be £80,000.
This is often considered to be a very efficient way of managing your money, especially if you are paying higher rates of tax.
The amount of deposit you will need for a property and the process of what you are trying to do, will be completely dictated by your own personal circumstances.
Here we explore how much deposit may be required for you and your situation.
In the past, it was quite common to come across 100% mortgages. Before they were nationalised, even Northern Rock was offering 125% loan-to-value mortgages.
What that means, is if you were buying a property valued at £100,000 they would lend you up to £125,000, and yet they were shocked when everything went wrong.
The reason that lenders require you to provide a deposit, is to reduce their lending risk. If they lend you 100% of the purchase price and you end up in any kind of debt, they would then have to take possession of the property. All it takes then is for house prices to change, for them to be at a loss, which of course they don’t like.
There is also a perception that if you haven’t invested some of your own or your family’s money into your home, then you might be more inclined to call it quits if things get tough and you can’t afford your monthly repayments.
It could also be argued that if you can’t save up for or with help, make up at least a 5% deposit for a property, then you likely aren’t ready for a jump into the property world.
Directly, no they are not able to do this. That being said, if you can find 5% of the deposit from your own funds, then there is still a chance you could qualify for the government’s Help to Buy Equity Loan Scheme.
With this scheme only applying only to new build properties, the concept is that you put in 5% and the Government loans you up to 20%, making up a 25% deposit.
After 5 years you need to start looking at paying the equity loan back possibly by way of a remortgage or from savings you have been able to make over the length of time that has elapsed since the start of your term.
Generally speaking, yes 5% is enough for the majority of mortgage types. It does vary between lender though and some will accept only a 5% deposit, limiting the paths you can take.
To combat this, you will normally need a reasonable credit score to qualify for a mortgage in Halifax. There are the odd lenders out there that may consider you for a 95% mortgage with an average credit score, but the rate of interest would also be higher than other mortgages.
Most specialist lenders will require at least 15% deposit if you have a less than favourable credit history. As touched upon earlier in this article, this is simply to reduce their risk in the event of a repossession.
It is a lot harder to obtain this type of mortgage than it was in the mid-2000s but in some cases may still be a possibility.
It has always been a requirement to put down a larger deposit for Buy-to-Let Mortgages in Halifax and most lenders at the moment are looking for around a minimum of 25%.
Technically this could be possible, but almost all lenders will not allow this, as essentially this would still be 100% lending, which no longer exists due to the aforementioned risk involved with this type of deal.
Yes, this happens all the time. Generally, it’s what the industry affectionately has titled the “Bank of Mum and Dad” (both birth and adopted parents, as well as carers & legal guardians) gifting the deposit, or other members of your family, such as Aunties & Uncles.
We have even seen cases where family friends are allowed to gift money too. These are all valid options, as long as they can evidence the funds, prove who they are and confirm they are not expecting you to pay them back at any point in the future.
If you are looking at buying as a sitting tenant and your landlord or family member has given you a discount from the open market value, or if you qualify for a discount under the Right to Buy Mortgage Scheme, then normally you won’t be required to put any of your own money in as deposit.
This is due to the equity being already “built-in” to the deal that is being made.
Please note that the above information and guidance is for reference purposes only and is not to be viewed as personal financial or mortgage advice.
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.
First and foremost, one of the key factors that people look to when considering moving in or to Halifax in search of their dream home, is the location.
Often though it’s about more than just where, but also what is there and what you look to prioritise when deciding on what may be the perfect home.
To help you in your quest, we have put together a comprehensive list of the things many home buyers consider when looking to decide where to live.
It is important to figure out the type of setting you would like to live in, as this is somewhere you are going to live for at least a good few years, potentially even starting a family there.
If you’re the sort who likes thriving urban settings, the city life is definitely for you. If you prefer peace & quiet, being out of the way of others, you may be better suited for country life.
There are pros and cons to either of these options, so it is worth carefully thinking about before you get your heart set on a home in an area you perhaps won’t enjoy.
Transport links are a very important factor to many. Make sure whether it’s for hanging out with friends/family, your chosen profession, shopping and other general leisure activities, that your home has the appropriate transport.
Also make a note of how much these modes of transport are going to cost. If you are a driver, how long is it going to take you to travel to your different destinations? What will fuel costs be and do you have nearby stations to refill at.
For those of you who are parents, definitely check what schools are in the area. Research what the local catchment areas are for the homes you looking at, so you can see what the schools are like. School league tables are a good source of information for this.
For those of you who may not have any children now, whether you have a plan to have kids or not, it’s best to at least have a look to future proof yourself.
You may have a couple of different ideal nearby facilities in mind when planning for where to live. A helpful tip would be to make a note of which ones are necessary and which ones are just your preference.
For example, you may really want to have a gym nearby but also need a shop nearby for all your general needs. If you’re debating two areas and each only have one of those facilities, you’ll probably lean more towards the one with the shop.
For a lot of those looking to find their new home, having friends and family nearby can be an important factor. This is generally preferred as they can live comfortably knowing they have a support network close to them.
On the other hand, some prefer a solitary life, prioritising peace and quiet over regular social activity.
Finding that property that you feel is worth the money you’ll be paying for it can be dependent on the area that you are looking to buy in.
You ideally want to make the most out of your property purchase, so it may be worth your while finding somewhere cheaper as a starting property, though this might mean compromising features and facilities you may have wanted initially.
The local community can have an impact of your experience living in your home. You might prefer the quiet life, with a selection of residents who keep to themselves, or you may prefer a thriving busy community where everyone knows each other.
Speak to the estate agent and find out what it is like around that area. Community Facebook pages or locally run websites are common occurrences, so they’re worth looking up to get a general feel for what it may be like.
You may be moving home due to a new job or to kickstart a career. This is a huge factor we have heard from many customers in the past. It’s important to take a look at the distance between your new workplace and your new home.
If you’re going to be mostly working from home, is a longer commute for the few times you do go into the workplace something you’d be okay with, can you live further out? What about the space inside the property, will there be room for a home office?
For those who are looking at job hunting, do some research on the types of companies within the area and make a list of who all the top employers are.
In terms of the types of property available, home buyers will find a good selection on the open market to choose from. Some prefer end-terrace properties that have a nice garden, some prefer modern apartments within the city limits.
Check out all the options available to you, undertake some viewings and get a good feel for the type of property you are after.
Any potential investment that has been proposed within the local area can be handy information to get ahold of, especially if you’re looking to live there for a while and settle down.
Online research will serve you well here when looking to find any future investments in the local area. It’s important to consider if these will be beneficial to you and your lifestyle.
For example, those who would prefer to have a quiet life in the countryside might find their ideal living situation being impacted by a potential nearby housing development being planned.
By now you’ll hopefully have a good list of factors to look out for in the quest for finding your perfect home location. When the time comes for making offers and obtaining a mortgage, feel free to get in touch to book a free mortgage appointment.
Our dedicated mortgage advice team are here from morning until late evening, seven days a week, subject to availability. Whether you’re in need of help with a first time buyer mortgage in Halifax or are moving home in Halifax, we’d love to get the ball rolling on your mortgage process.
A gifted deposit is the name given if someone were to bequeath unto you either a portion of or the full amount of the deposit. This has to come with an agreement between the two parties that this is not to be paid back as a loan.
Gifted deposits are very beneficial for instances where perhaps you are financially capable enough to afford your monthly mortgage repayments but are struggling to find the means to afford the initial deposit, be that because of a lower salary or otherwise.
Depending on the amount you are gifted, you may open yourself up to potential better rates from the mortgage lenders, as the more that goes down initially, the less you’re having to pay back overall.
For the most part we find that it is an applicants’ parents who are able to gift you the deposit. This applies to both natural-born and adopted parents, being referred to across the mortgage world as the “Bank of Mum & Dad”.
Depending on the lender that you go with, you may also be able to receive a gifted deposit from another family member, maybe even from a friend. Finding the right lender who would accept this would require care and is where a mortgage advisor can help.
Sometimes, if the person helping you is aged 55 or over, they may have the potential option of gifting you a deposit by utilising Equity Release in Halifax.
It often becomes apparent that customers don’t always realise that their parents have the ability to help with their mortgage. In other cases they may not believe that their parents would be willing to help, so don’t ask them.
What we actually find, is that the majority of parents are always willing to provide their children with financial support if they can, wanting to help them find a means of owning their dream home that they one day might start their own family in.
Taking out a mortgage, to many people, is a much preferred option to living in a rental property. This is because you may potentially be able to pay less money to your mortgage than you would’ve with rent.
With this comes a point mentioned earlier, wherein the more you are gifted, the less you are borrowing and the less you have to pay back overall. If you’re paying less back over a longer term, your monthly payments will be greatly reduced.
The deposit that you are gifted can sometimes come from inheritance, although there have been instances where parents have gifted it to their children earlier on in life, especially if they have already saved enough or have released any equity.
Pretty much all lenders won’t accept a loan as a way for you to pay off your deposit. This is because they won’t have the confidence that you would be able to afford payments for both the loan and the mortgage at the same time.
You are not limited in the amount that someone will be able to gift you, though there are some lenders out there that insist on applicants having at least 5% from their own funds.
The types of applicants who benefit the most from having a gifted deposit are First Time Buyers in Halifax and Home Movers in Halifax.
Gifted deposits can also be incredibly helpful when used alongside the Help to Buy Scheme, as depending on the lender, the 5% required deposit for the scheme can be paid via gift.
As a rule, all lenders will require you to fill out a gifted deposit form. Some lenders will also want you to provide additional proof and ID (things like donor ID or bank statements).
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.