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.

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.