What Does a Mortgage Broker in Halifax Do?

A mortgage broker in Halifax is a professional who arranges and negotiates mortgage loans for customers. In Halifax, a mortgage broker in Halifax provides services to homeowners, home buyers, and landlords who need mortgages for their properties.

A mortgage is a loan that is secured against a property, and it is repaid through monthly payments over several years.

Roles of a Mortgage Broker in Halifax

Although homeowners, home buyers, and landlords can search for and arrange mortgages themselves, many choose to hire a mortgage broker in Halifax for the range of services they offer. This is especially the case with first time buyers in Halifax.

A mortgage broker in Halifax can cross-reference customers’ information against thousands of mortgage products from multiple lenders, while banks limit customers to their own deals. Mortgage brokers in Halifax can also provide exclusive deals not available elsewhere.

Mortgage brokers in Halifax perform a variety of jobs before, during, and after the mortgage process. These jobs may vary between mortgage brokers.

For example, some mortgage brokers in Halifax offer a limited supply of niche mortgage lenders, while others provide a broader range of lenders, known as the whole-of-market.

Additionally, mortgage brokers in Halifax may recommend suitable insurance options to ensure homeowners can remain in their homes, regardless of what happens.

Before Applying for a Mortgage

At the start of the mortgage process, customers typically speak with a mortgage broker in Halifax’ appointment booking team to schedule an appointment with a mortgage advisor in Halifax.

Alternatively, many mortgage brokers in Halifax, such as ourselves, offer a user-friendly appointment booking system on their website for telephone or video calls.

During the appointment with the mortgage advisor in Halifax, customers provide additional information to help the mortgage advisor in Halifax understand their situation and find the most suitable mortgage deal.

Brokers may offer a limited supply of niche mortgage lenders or a larger panel of mortgage lenders. After recommending a deal, the mortgage advisor in Halifax can provide an agreement in principle within 24 hours.

Customers may also need to submit various documents, such as proof of identity, income, deposit, and VISA or right to work in the UK for foreign nationals.

During the Mortgage Application

After submitting documents, the mortgage broker in Halifax verifies them and provides a mortgage illustration that details the agreed deal.

The mortgage broker in Halifax also acts as an intermediary between the customer and the mortgage lender, handling communication and paperwork to ensure a smooth mortgage application process.

After Your Application

Once your mortgage application has been submitted, the mortgage broker in Halifax’s role changes somewhat. Now, the focus will be on liaising with your chosen mortgage lender to get your application processed as quickly as possible.

A mortgage broker in Halifax will generally have a dedicated processing team who will ensure your application is processed as quickly as possible, and will also be your primary point of contact throughout the process, should you have any questions or concerns.

Your mortgage advisor in Halifax will also be there for you if you have any queries or questions as well, but if it’s a specific question about your application, the processing team will be the ones to speak to.

Once your application has been approved, you’ll move on to the next stage, which is the exchange of contracts. This is where you and the seller of the property sign the contract that legally binds you to the purchase.

You’ll also need to provide your deposit at this point, which is usually a percentage of the purchase price (typically 5-10%). Your mortgage lender will then provide the funds for the rest of the purchase price.

Following exchange of contracts, you’ll enter the completion stage. This is when, if you’re moving home in Halifax or are a first time buyer in Halifax, the purchase is finalised and you become the legal owner of the property.

Your mortgage lender will transfer the funds to the seller’s solicitor, and once received, the seller will leave the property and hand over the keys to you.

Whilst it’s unlikely that you’ll need to contact your mortgage broker in Halifax during this final stage, they’ll still be there to help if you need them. For example, if there are any last minute issues with the transfer of funds, they’ll be able to help you in resolving them.

In Conclusion

So, as you can see, the role of a mortgage broker in Halifax goes beyond just finding you the best deal. They’re there to help you every step of the way, from the very beginning of the process, right through to completion.

They’ll help you to find the most suitable mortgage for your needs, and will ensure that the process is as smooth and stress-free as possible.

So if you’re looking for a mortgage broker in Halifax, be sure to choose one that offers a wide range of services, and has a team of experienced and knowledgeable mortgage advisors in Halifax who can guide you through the process.

Forces Help to Buy Scheme (FHTB) in Halifax Explained

Originally brought forward to the country back in 2014, following on from the then successful Help to Buy Equity Loan Scheme, the government introduced a brand new scheme that would seek to reduce the low rate of forces home ownership across the UK.

This Forces Help to Buy Scheme is available to members of the Tri-Service, the Royal Navy, Royal Marines, Army and Royal Air Force, so long as they are able to meet the criteria for it.

Further to this, the Ministry of Defence’s Defence Accommodation Strategy is also taken into account with this scheme, as it aims to make sure that everyone under its watch has access to a good level of accommodation.

Outlined throughout this strategy, is the salubrious impact that home ownership can have to those who have inherently mobile careers. The incontrovertible positives include partner employability, stable education for children, as well as continuity for members of the services, as they move out active service.

Though it was previously intended to cease existing back in 2019, we have seen extensions for the Forces Help to Buy Scheme in Halifax, with the government eventually turning it into an enduring policy, allowing service members now and in the future to use it.

How does the Forces Help to Buy Scheme in Halifax work?  

The way that the FHTB Scheme functions, is that service personnel have the ability to borrow up to 50% of their annual salary, which will be capped at £25,000 and does not have any interest charged on it. This can be used to purchase either a first home or a new one.

This scheme is accessible to all active personnel who have fulfilled the necessary service requirement, are not reservists or members of the Military Provost Guard Service, have over 6 months remaining in their service when they apply, and meet the appropriate medical categories.

Of course, there may well be individuals who are exceptions to the criteria, especially when factoring in things like special medical and personal state of affairs. To gain a better understanding of this and more relating to Forces Help to Buy in Halifax, please take a look at the government guidance website.

The area of FHTB that is most appealing to many people, is that you don’t need to have any current savings, in order to use this scheme and purchase a home. You can also use this towards your deposit, as well as any fees you are charged for, such as solicitors, estate agents & stamp duty fees.

The good news from a deposit standpoint too, is virtually all mortgage lenders will accept the funds from FHTB for your deposit. It is typically a much more relaxed scheme too.

Whereas the Help to Buy Equity Loan saw you being required to pay back your loan within 5 years, Forces Help to Buy in Halifax only needs to be paid back within 10.

How a Mortgage Advisor in Halifax May Be Able To Help

As a dedicated and trustworthy mortgage broker in Halifax, with a great love and admiration for our services in the UK, we are here to support and help you with the mortgage side of your home buying process, in any way that we are able to do so.

From the first time you contact a member of Halifaxmoneyman, all the way through until your mortgage completes and even beyond that point, your dedicated mortgage advisor in Halifax will look to make sure your process is as stress-free as possible, with all your needs taken care of.

For more, you are welcome to book yourself in for a free mortgage appointment and we will take a look at your case and best advise on the steps you need to take, whilst also finding you a great mortgage deal, if we can do so!

Note: The Forces Help to Buy is not the same as the standard UK Help to Buy Scheme in Halifax or Shared Ownership Scheme in Halifax.

If you are a currently serving service member and homeowner looking to utilise Forces Help to Buy in Halifax aged 55+, it could be worthwhile looking at your options for equity release in Halifax or retirement interest-only mortgages (RIO Mortgages), as forces pensions may actually be beneficial for this.

To understand the features and risks of equity release in Halifax and lifetime mortgages, ask for a personalised illustration.

A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means-tested benefits. The loan plus accrued interest will be repayable upon death or moving into long-term care.

What is a Shared Ownership Mortgage in Halifax?

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.

Updates to The Shared Ownership Mortgage Scheme

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.

How do I apply for a Shared Ownership mortgage in Halifax?

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.

Pros & Cons of Shared Ownership Mortgages in Halifax

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.

Can I sell my home if I have a Shared Ownership mortgage in Halifax?

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.

Is a Shared Ownership mortgage in Halifax right for me?

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.

What Can I Do If I’ve Been Declined For a Mortgage in Halifax?

Mortgage Advice in Halifax For Complex Situations

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.

How can I avoid disappointment from a mortgage?

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.

What are other mortgage applicants doing?

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.

Reduction in your mortgage loan amount

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.

Accepting help from a dedicated mortgage broker in Halifax

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.

Different Types of Property Surveys in Halifax

Property Survey Mortgage Advice in Halifax

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.

What sort of house survey suits you?

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:

• Mortgage Valutation
• Homebuyer’s Report
• Full Structural

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.

Mortgage Valutation

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.

Homebuyer’s Report

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.

Full Structural Survey

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.

Do I need to get a survey on a new build?

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.

How can our mortgage advisors in Halifax help you?

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 Different Types of Mortgages Explained

Mortgage Advice Covering The Different Types of Mortgages

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.

What is a Fixed-Rate Mortgage?

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.

What is a Tracker Mortgage?

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%.

What is a Repayment Mortgage?

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.

What is an Interest-Only Mortgage?

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.

What is an Offset Mortgage?

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.

How Much Deposit Do I Need To Buy A House in Halifax?

Deposit Mortgage Advice in Halifax

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.

Why do I need a deposit for a mortgage in Halifax?

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.

Can the government pay the deposit for me?

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.

Is a 5% deposit enough?

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.

How much do I need to put down if I have a poor credit history?

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.

How much deposit do I need for a Buy-to-Let property?

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%.

Can I take out a loan for the deposit?

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.

Can someone gift me a deposit?

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.

Are there any circumstances where I don’t need a deposit?

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.

A Guide to Remortgages in Halifax: Top Reasons to Consider

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:

• You are now settled in your dream property, and are maybe looking to start a family.
• A step up to progressing further up the property ladder.
• Getting an extra income through an investment purchase

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.

What Is Remortgage?

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.

Remortgage for Better Interest Rates

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.

Remortgage for Home Improvements

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.

Remortgage for Changes to Your Term

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.

Remortgage to Release Equity

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.

Remortgage to Consolidate Debt

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.

Experienced Mortgage Advisors in Halifax – Get in Touch Today

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.

10 Factors to Help you Decide Where to Live in Halifax

Analysing Common Home Buyer Needs

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.

1. Busy city or relaxing countryside?

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.

2. Transport Links

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.

3. Schools & Education

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.

4. Nearby Facilities – What You Need Vs What You Want

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.

5. Friends and Family

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.

6. Is the property good value for money?

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.

7. What is the community like?

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.

8. Career Changes

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.

9. Property Type

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.

10. Local Developments

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.

Moving Home Mortgage Advice in Halifax

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.

Gifted Deposit FAQ’s | Mortgage Advice in Halifax

What is a gifted deposit?

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.

How do gifted deposits work?

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.

Who can gift the deposit?

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.

Do your parents understand that you need additional help?

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.

Gifted Deposit vs Loans

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.

Is there a maximum or minimum gifted amount?

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.

Who could benefit from a gifted deposit?

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.

What proof is required?

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).