Tips to Improve Your Credit Score in Halifax
For many first time buyers in Halifax and home movers in Halifax, the credit scoring system used by mortgage lenders can seem like an unfair way to assess their applications. However, from the perspective of mortgage lenders, credit scoring offers a cost-effective and consistent method to reduce risks.
If you’re concerned about how the credit scoring system might affect your mortgage application, there’s no need to worry. The reassuring news is that numerous mortgage lenders employ their own unique scoring systems and criteria.
To minimise your concerns and enhance your chances of mortgage approval, obtaining a copy of your credit report when applying for a mortgage is a prudent step.
By providing your mortgage advisor in Halifax with an up-to-date credit report, you offer them a clearer insight into your financial standing, increasing the likelihood of a successful application.
Additionally, having a copy of your credit report helps your mortgage advisor in Halifax to pinpoint potential issues or areas that may need improvement. This proactive approach allows you to address any concerns before applying for a mortgage.
Taking these measures not only enhances your approval chances but also provides you with increased confidence and peace of mind throughout the entire mortgage process.
Keep in mind that every mortgage lender has its specific criteria, so if one lender declines your application, your mortgage advisor in Halifax will work hard to identify the best-fit options from the diverse range available in the market.
Obtaining a Copy of Your Credit Report in Halifax
When it comes to checking your credit report for mortgage purposes, there are various credit reference agencies at your disposal, such as Experian and Equifax. However, we highly recommend considering CheckMyFile, primarily because it provides a comprehensive overview based on data from multiple credit agencies.
The advantage of choosing CheckMyFile is that it offers a 30-day free trial period, allowing you to review your credit report at absolutely no cost during this timeframe. What’s even better is that you have the flexibility to cancel the trial whenever you wish.
This approach empowers you to make well-informed decisions about your creditworthiness and ensures that your mortgage application is built on a strong foundation.
To make things even more convenient for you, we’ve provided a link below that grants you access to a free, instant PDF download of your credit report.
Try it FREE for 30 days, then £14.99 a month – cancel online anytime.
Tips to Improve Your Credit Score
Enhancing your credit score is a pivotal step when it comes to applying for a mortgage. Fortunately, there are several effective measures you can undertake to bolster your creditworthiness.
Firstly, exercise caution when using price comparison websites, as they have the potential to generate credit searches that might have an adverse impact on your credit score. To maintain a clean slate for mortgage lenders, it’s advisable to refrain from applying for additional credit in the near term.
One proactive way to positively influence your credit score is by ensuring you are registered on the electoral register. Confirming that your name and address details are accurate and current can play a significant role in elevating your creditworthiness.
Errors in your address records can create the impression that you reside in multiple locations simultaneously, potentially affecting your creditworthiness. Furthermore, prudent management of your credit card usage can have a substantial impact on your credit score.
Consistently maxing out your credit card each month can lead to a reduction in your score. Hence, it’s prudent to use your credit card responsibly and clear the balance in full on a monthly basis.
While closing inactive store or credit card accounts may initially cause a temporary dip in your score, it can prove beneficial in the long run and reduce susceptibility to fraudulent activity.
In addition, financial ties to family members, friends, or former partners can have repercussions on your credit score, particularly if their credit history is less than stellar. If these financial associations are no longer active, you can request credit reference agencies to sever these links.
When seeking mortgage advice in Halifax, providing comprehensive financial information to our seasoned and trustworthy mortgage advisors in Halifax is essential. This enables them to offer you the most precise guidance and support during the mortgage application process.
With their expertise and your enhanced credit score, you’ll be optimally positioned to secure the perfect mortgage that aligns with your specific needs and financial circumstances.
The Pros & Cons of Using a Mortgage Broker in Halifax
Taking your first steps into the world of mortgages, whether you’re a first time buyer in Halifax, a home mover, or a buy to let landlord, can feel like a daunting task.
The myriad of options available might leave you wondering about the best path to take. Ensuring that you make the right choice from the start can save you both time and money.
No matter your mortgage aspirations and individual circumstances, our dedicated and approachable service aims to guide you seamlessly through your mortgage journey.
We understand that the mortgage process can be intricate, and we hold strong confidence in our ability to help our customers, providing expert mortgage advice tailored to both new and existing clients in Halifax.
This article compiles a comprehensive overview of the advantages and disadvantages associated with seeking assistance from a mortgage broker in Halifax. It aims to shed light on why many individuals prefer turning to us for reliable mortgage advice in Halifax.
Why use a mortgage broker in Halifax?
Cost-Effectiveness
Many individuals assume that by directly searching for and securing their own mortgage deal, they will inevitably save money. This isn’t always the full picture, however. While some mortgage brokers in Halifax might charge a fee, this cost varies based on your circumstances and the chosen company.
If you possess ample knowledge and have a straightforward case, you might find it easier and more cost-effective to proceed independently. Yet, the situation could become intricate based on your specific circumstances. In such cases, seeking guidance from a mortgage broker in Halifax becomes valuable.
Lacking in-depth knowledge might lead you to select an inappropriate deal or face difficulties in your mortgage application process. Either scenario could potentially result in unnecessary expenditure or harm your credit score, impacting your future mortgage prospects.
Having a dedicated mortgage advisor in Halifax at your side ensures their commitment to helping you attain your mortgage objectives. Their aim is to provide the right recommendation from the outset, at an optimal price point.
While this might involve a service fee, it could ultimately translate into substantial overall savings.
Local Bank Branch Relationship
Loyalty has historically driven many customers to approach banks directly, reflecting the way the mortgage process used to operate.
In the pre-technology era, individuals would frequently visit their local branch, often interacting with the same staff member. Back then, securing assistance from the bank manager, who held a comprehensive understanding of one’s finances, was a common practice.
In terms of the mortgage procedure, the optimal approach involved having the bank manager personally review and approve your mortgage application.
This provided the advantage of receiving personalised guidance and support from an expert who possessed a deep grasp of your financial situation. The landscape has significantly transformed with the advent of digital technology and online banking.
Presently, the mortgage process functions quite differently, largely due to the digitisation of credit scoring. The bank manager’s direct involvement in evaluating your case has been replaced by a sophisticated online system.
This system determines your eligibility for a mortgage by analysing various factors. Importantly, this digital approach is unbiased and applies uniformly, irrespective of the specific bank you are associated with.
Exclusive Mortgage Products
Many believe that you are open to better, exclusive offers by going directly. Again, this is true, though, it can be limited. That is because they only offer their company the best deals.
Not all mortgage lenders are banks, and there are many more options available. Therefore, the deal that the bank considers suitable for you may not be the best deal beyond the bank you could have gone with.
Getting specialist mortgage advice in Halifax can be the best way to get a competitive deal that is suitable for you. One of our expert mortgage advisors in Halifax will be able to go through your case and find you the best deal from our large panel of lenders.
This is another advantage of approaching a mortgage broker in Halifax rather than just a bank. After the topic of deals, you can find approaching a mortgage broker in Halifax can provide you with exclusive deals that you cannot find anywhere else.
There will be a broad range of options when you are with a mortgage broker regardless of if you are a first time buyer in Halifax, moving house, or looking to remortgage in Halifax.
Changes to Regulation & Consumer Protection
The aftermath of the 2007-08 credit crunch necessitated significant reforms within the mortgage market. One pivotal change emerged through the 2014 Mortgage Market Review, which directed lenders to refrain from selling mortgages to customers without comprehensive expert guidance.
Consequently, the days of simply walking into a bank and obtaining a mortgage without thorough checks were put to an end. The process was no longer as straightforward, as not every bank employee possessed the authority to grant mortgages.
This rectified a common occurrence where individuals, regardless of their qualifications, could authorise mortgages. Beyond these alterations, the changes ushered in a layer of consumer protection that was previously absent from traditional bank interactions.
Today, a dissatisfied customer can seek recourse by lodging a complaint with the Financial Ombudsman or making a claim through the Financial Services Compensation Scheme.
These reforms have instilled a sense of security for customers, ensuring that they receive proper guidance and protection throughout their mortgage journey. This newfound assurance applies uniformly to both mortgage brokers in Halifax and lenders.
Book an Appointment with a Mortgage Advisor in Halifax
Opting for a bank over a mortgage broker in Halifax comes with its own drawback, particularly in terms of timing. Engaging with a bank often involves waiting for months to speak with a representative. Additionally, throughout the process, updates can be infrequent and lacking.
At Halifaxmoneyman, we pride ourselves on our responsiveness. Our dedicated team reaches out to you at your convenience, accommodating your schedule and daily routine.
Our mortgage advisors in Halifax are available seven days a week, from early morning to late evening, even on weekends and certain bank holidays.
While some scenarios might allow for same-day appointments, this isn’t always the norm. We respect your readiness and availability, ensuring that you can engage with us at a time that suits you best.
Recognising the diversity in our clients’ lifestyles, our mortgage advisors in Halifax maintain extended availability beyond traditional 9-5 hours, including weekends. Our user-friendly online booking system allows you to easily schedule a conversation with a mortgage advisor in Halifax.
Responsiveness stands as a cornerstone of our service philosophy. Whether you’re embarking on the initial steps or nearing the conclusion of your mortgage journey, our approachable team will keep you well-informed.
Should any changes arise, your dedicated mortgage advisor in Halifax will promptly reach out to you. It’s this commitment to providing exceptional service that makes mortgage brokers in Halifax, like us, a preferred choice.
The popularity of such experts over national banks is a testament to the value we offer to the public.
Handling of Complex Scenarios
Our wealth of industry experience has revealed that certain cases present more complexity than others. Below, we outline scenarios that deviate slightly from the norm:
- Mixed Deposit: This involves assessing two distinct sources, such as a gifted deposit and savings.
- Zero Hour Contract Workers: The consistency of income becomes a pivotal concern.
- Second Purchase Intentions: Evaluating affordability for an additional property purchase.
- Self Employment without Fixed Income: Self employed individuals in Halifax face unique challenges.
- Poor Credit History: Past mismanagement could impact the lender’s view of the applicant.
- Affordability Assessment: The fundamental question is whether the applicant can afford the mortgage.
In the past, mortgage lenders competed primarily through enticing deals. The landscape has shifted, focusing more on whether applicants meet specific criteria.
While a cheaper deal might be available, it might not align with your requirements. To ascertain your mortgage eligibility, lenders conduct a hard search, which leaves a footprint on your credit file.
It’s worth noting that if you apply for a mortgage, and a lender declines a deal in principle, this could negatively affect your credit file. The frustrating aspect is the lack of transparency in receiving a rejection reason, which can leave applicants perplexed.
Agreement in Principle
Mortgage advisors in Halifax possess the expertise to thoroughly review your situation and provide guidance on enhancing your acceptance prospects.
Leveraging an extensive network of lenders, they can identify the most fitting deal that aligns seamlessly with your criteria. Subsequently, they initiate the process of securing an agreement in principle tailored to your needs.
When obtaining an agreement in principle through Halifaxmoneyman, you can expect it to be arranged within 24 hours following your complimentary mortgage consultation.
It’s essential to note that this preliminary agreement doesn’t automatically translate into a guaranteed mortgage at the conclusion. It does contribute to safeguarding your credit file by having a specialist review it beforehand.
Our team of dedicated mortgage advisors in Halifax is committed to delivering accurate recommendations from the outset.
Should I use a Mortgage Broker in Halifax?
When it comes to choosing between a mortgage broker in Halifax and going directly, there are pros and cons to both options. The decision often boils down to the speed of service you desire and the level of security you prioritise.
As a dedicated mortgage broker in Halifax, our extensive experience encompasses a diverse range of clients embarking on their mortgage journeys.
Whether you’re a first time buyer in Halifax taking that initial step into the mortgage realm, an individual nearing the end of a fixed term, or someone considering a remortgage in Halifax, our team is ready and willing to help.
Schedule a free mortgage appointment or a remortgage review to engage with a knowledgeable mortgage advisor in Halifax. Our team is committed to helping you achieve your mortgage objectives, with flexible availability tailored to your schedule, subject to availability.
To gain deeper insights into our service, explore our exceptional customer reviews that showcase the consistently high level of service we provide to our satisfied clients.
You can also find valuable information on our YouTube channel, MoneymanTV, if you’re seeking further understanding of the mortgage landscape.
How a Mortgage Advisor in Halifax Can Help You Navigate the Home Buying Journey
Navigating the complexities of the mortgage market and finding the right mortgage can be a daunting task, whether you’re a first time buyer in Halifax or looking to moving home in Halifax. That’s where a mortgage advisor in Halifax can be your trusted partner.
In this article, we will explore the invaluable role of a mortgage advisor and how they can help you in finding the perfect mortgage solution, while alleviating any anxieties you may have along the way.
Understanding Your Unique Needs
A mortgage advisor in Halifax understands that every individual’s financial situation and homeownership goals are unique. They take the time to listen to your needs and aspirations, creating a personalised approach to help you find the right mortgage product that fits your circumstances.
Expert Guidance through the Mortgage Market
The mortgage market is vast and ever-changing, making it challenging for first-time buyers or even seasoned homeowners to keep up. A mortgage advisor in Halifax possesses in-depth knowledge and experience in the local market.
They stay updated with the latest mortgage products, interest rates, and lender criteria. By partnering with them, you can benefit from their expertise and gain access to a wider range of mortgage options than what is available through direct lenders.
Finding the Best Mortgage Deal
One of the key advantages of working with a mortgage advisor in Halifax is their ability to search the market on your behalf. They have access to a wide network of lenders, including both high street banks and specialist lenders.
This means they can help you find the most competitive mortgage deals tailored to your specific circumstances, potentially saving you time and money.
Navigating Complex Financial Situations
If you have a unique financial situation, such as being self-employed, having a less-than-perfect credit history, or considering a buy to let investment, a mortgage advisor can be your guiding light.
They have the expertise to assess your situation, understand the intricacies of different lender criteria, and identify suitable mortgage options that meet your needs.
Saving You Time and Effort
The process of securing a mortgage involves paperwork, documentation, and liaising with mortgage lenders.
A mortgage advisor in Halifax takes on the administrative burden for you, streamlining the application process and ensuring that all necessary documents are submitted correctly and on time.
This saves you precious time and effort, allowing you to focus on other aspects of your home buying journey.
Supporting You Beyond Mortgage Approval
A mortgage advisor’s role extends beyond securing mortgage approval. They provide ongoing support, answering your questions, and offering guidance throughout the home buying and mortgage processes.
From explaining complex terminology to liaising with solicitors and surveyors, they act as a trusted advisor, supporting you at every step of the way.
Partnering with a mortgage advisor in Halifax can be a game-changer in your mortgage journey. Their expertise, personalised approach, and access to a wide range of mortgage options can help you find the perfect mortgage solution for your unique needs.
From navigating the market to securing the best deal and providing ongoing support, they are your ally in achieving your homeownership goals. Contact a reputable mortgage advisor in Halifax today and take the first step towards making your dream home a reality.
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.
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.
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).
What is a 95% Mortgage?
A 95% mortgage is as simple as the name would suggest; you are borrowing against 95% of the price of a property, and then you are covering the remaining 5% with your deposit. An example of this is if you looked at buying a property that was worth £150,000 with a 95% mortgage, you would be putting down £7,500 as your deposit and borrow the remaining £142,500 from the lender.
95% Mortgage Advice in Halifax
Off the back of the March 2021 Budget, Boris Johnson announced a Mortgage Guarantee Scheme for mortgage lenders, making 95% mortgages more readily available from the bigger high street banks.
This is fantastic news for First-Time Buyers and Home Movers alike, as this scheme will continue running until December 2022. Certain terms and conditions will apply though, which is something your Mortgage Advisor in Halifax will be able to look at, to see if you qualify.
All our customers who opt to Get in Touch will receive a free, no-obligation mortgage consultation where one of our dedicated mortgage advisors will be able to make a recommendation on the best possible route for you to take.
Can I get a 95% mortgage?
95% mortgages are usually accessible by both First Time Buyers in Halifax & those who are Moving Home in Halifax. Whilst saving for a 5% deposit sounds like a pretty straightforward concept, you’ll still need to have an acceptable credit score and prove that you are able to afford your monthly mortgage repayments, in order to access a 95% mortgage.
Improving your credit score
A good credit score is essential in the process of obtaining any mortgage, especially a 95% mortgage. Things like paying any current credit commitments on time, ensuring your addresses are updated and checking that you’re on the voters roll, can all help with your credit score.
Affordability
Affordability is another one that is important to take note of. By giving the lender details of your income and monthly outgoings (things like your bank statements will be necessary for this) and any pre-existing credit commitments, your lender will be able to get a general overview of whether or not you are able to afford this type of mortgage.
Can my family help me get a 95% mortgage?
Nowadays we see lots of family members helping each other get onto the property ladder, especially parents looking to further their children’s lives. The way this usually happens is by gifting the person looking to find their home, the deposit required. Known through the industry as the “Bank of Mum & Dad, Gifted Deposits are only intended to be a gift, and not as a loan. The lender will need proof that this has been agreed, before it can be used towards your mortgage.
How do I choose the right 95% mortgage?
When looking for a 95% mortgage, you want to make sure you have the right type of mortgage. Each mortgage type works differently, with that choice allowing you to find one that is most appropriate for your personal and financial situation.
Some homeowners and home buyers prefer Fixed Rate or Tracker Mortgages, mortgage types which mean you either keep interest rates at a set amount for the term given or have your interest rates tracking the Bank of England base rates.
Alternatively, you might find that Interest-Only or a Repayment Mortgages are more your style. Interest-Only allows cheaper payments until you need to pay a lump sum at the end (mostly now used for Buy-to-Lets), whereas a Repayment mortgage (a normal mortgage if you’d like) means you’ll be paying interest and capital combined per month.
How can a bigger deposit help with my mortgage?
Seeing as a mortgage is such a large financial outgoing, you need to be prepared and need to be aware. You might find things like higher interest rates, remortgaging difficulties due to less equity and then negative equity all cropping up if you’re not.
There is no need to worry though, as all these can be avoided if you’re savvy enough with your process to begin with. The more deposit you put down for a property, the less risk the lender will see you as.
A larger deposit, of say 10-15%, would not only reduce the rates of interest by a noticeable amount, but would also give the property more equity and reduce the risk of negative equity, thanks in part to you borrowing less against the property.
So, whilst the risks may seem intimidating, planning ahead and saving for a bigger deposit to access something like a 90% or even an 85% mortgage will be a massive help in your mortgage journey and something you’ll be able to reap the rewards from in the future.
Buying a Property with a Friend or Partner in Halifax
Mortgage Advice in Halifax
Over time, the inflation of property prices has far outweighed the increase in wages. People nowadays are looking to build their own house rather than stay at rent somewhere and spend much money on paying rentals. The move from renter to homeowner needs proper planning and takes time. Therefore, many people, especially first time buyers in Halifax due to their low affordability levels, plan to buy a property with a friend or a partner. This is because the dual-income sources lead to a sufficient pool of income that convinces a lender to offer a higher mortgage amount.
When you jointly pool in your income, you decide mutually to divide the cost between the two, thereby making it more affordable. However, this is a Specialist Mortgage and comes with some risk. This article will answer some questions we often receive and shed some clarity on buying a property with a friend or partner in Halifax.
How many people can jointly co-own a property?
Owning a property involves a lot of regulations and technicalities. This is even more apparent in joint properties as one owner might want to sell the property, whereas the others do not. However, in Halifax, lenders allow up to four people to co-own a property at one time. If anyone owner stops contributing to the monthly mortgage payments, the other owners still have a right by law to stay in the property unless the court states otherwise. With this in mind, you need to be cautious with whom you choose to buy a property.
Any plans to increase the Mortgage down the line, require consent from all involved. With this in mind, it is also essential to discuss long term plans for owning your property if someone opts for a different route or situation change.
Joint Tenancy or Tenancy in Common?
This concept is associated with couples who are married or are in a civil partnership. Such people are usually involved in joint tenancy. In case any one of the applicants pass away, the ownership will already be transferred to the other owner. This is where mortgage life insurance comes in handy, as at that point, the Mortgage would be repaid. However, you’ll require consent from other applicants if you want to sell or remortgage the property in the future.
Tenants in Common is usually chosen by the likes of relatives or friends buying a property together. This option allows you to own the property jointly, but it does not need equal shares. If one party is making more money than the other is, this works out well.
You can also act individually if you are a Tenant in Common, so you could realistically sell or give away your share, without the other person losing their stake in the property.
What happens if one party stops making mortgage payments?
All parties involved in joint ownership or have relevant shares in the property are liable for the mortgage repayments. Generally, if one member fails to make the payments, the other covers the cost to prevent any debt from building up.
Any arrears made on a mortgage may stop you from getting one in the future. An ideal way to think of joint mortgages is that you don’t own 50% of a property, you own 100% of it conjointly.
How do I remove an ex-partner or myself from a mortgage?
Removing someone from Mortgage can be challenging as lenders need to do a vigilant check on your affordability level to confirm that you can pay the Mortgage all by yourself.
None who has applied for a mortgage together ever thought of separation in the longer run, but unfortunately, time does not always stay the same. Therefore, it is vital to remember how big a financial commitment to getting a mortgage is and how challenging it gets when all of a sudden, you decide to make changes. So it’s always recommended to assess your personal life thoroughly before agreeing to something big.
Handling over the evidence to a lender that you have been managing mortgage payments since your ex moved out, does not qualify the fact that you alone can make it a sole name mortgage.
Lenders would much rather there be a second income if one person is unable to afford their half. The process of removing someone involves a brand new affordability assessment, much like they would when you first applied for a mortgage.
If your lender declines your request to do so, you should get in touch with your mortgage advisor in Halifax to see if any other lenders would agree to let you transfer into your name.
It may also be worth your time to see if any family members can help you out with this. They can often gift a lump sum amount to reduce the amount owed or even replacing your ex-partner on your Mortgage.
Things to remember when removing yourself from a mortgage
Even if you and your partner are set apart, and you end up moving home in Halifax, you are still responsible for repayments. Even if you agree with your ex that they will pay the payments responsibly, there might be a time when your ex cannot pay thereby making you liable for costs.
If you promise to send them money every month, you need to be watchful of your credit report because if he defaults, it will negatively affect your credit score.
Being tied up to an older mortgage also limits your ability to borrow for any new homes you might be looking to buy, as the lender will take your current repayments into account, seeing them as existing credit commitments.
Lenders might not always agree to your demand, because rendering such a vast amount comes with a risk. So always plan carefully whom you need to get into agreement with. It is better to agree on a plan in advance, to avoid difficulty if things ever go wrong in the future.
Mortgage Advisor in Halifax
