James Lawson, Author at Cardiffmoneyman

Gifted Deposit FAQs in Cardiff

Gifted Deposit Mortgage Advice in Cardiff

If you are struggling to make up a deposit for a property as a First Time Buyer in Cardiff, you may be looking at ways to help you build it up. There are ways to help you get onto the property ladder, such as the Help to Buy Equity Loan, Lifetime ISA, Shared Ownership scheme etc. However, if you are offered a gifted deposit, you may not need to utilise a scheme and can use this instead.

This article covers the most common questions regarding gifted deposits and how receiving one could benefit your mortgage application.

What is a gifted deposit?

A gifted deposit is a lump sum of cash that is given to you to use towards or cover your mortgage deposit.

More often than not, homebuyers combine their savings with their gifted deposit to try and access competitive loan-to-value products. These products may also include better rates of interest.

A gifted deposit is strictly a gift and cannot be a loan. When accepting a gifted deposit, the person gifting you the deposit will need to sign a declaration form stating that is not a loan, it is a gift.

Who can gift the deposit?

Usually, it will be the applicant’s parents/carers, family or friends that offer gifted deposits. Depending on the relation to the applicant, it will be down to the lender as to whether or not the gifted deposit is allowed.

If the person gifting the deposit is over 55, they will have the option to take out the equity in their home to use as a gift. If this is the route that the gifter is taking, it is important that they opt for Equity Release advice in Cardiff before doing so.

Do your parents know you need help?

We’ve seen many cases where First Time Buyers are struggling to save for a deposit and they don’t realise that their parents can help them out or they don’t want to ask. In truth, most parents are more than happy to offer a helping hand and want to help them get onto the property ladder.

Depending on your personal and financial situation, buying a property may be more beneficial for you and could save you money in the long run. If this is the case, your parents may prefer you to be in this situation rather than you waiting longer to save for a deposit.

Gifted deposit vs loans

In most cases, you will not be able to use a loan as your deposit. There are rare cases where this is allowed, such as when you use the Help to Buy Equity Loan scheme.

If you take out a loan and try to use it as your deposit, your lender will be able to see this. They will view it as another large financial commitment in your name. This is also why a gifted deposit has to strictly be a gift and not a loan. If you received a gifted deposit due to struggling to save up for a deposit, you are likely to struggle to pay back two sets of loans.

Is there a maximum or minimum gifted amount?

There is no limit to how much you can receive as a gifted deposit. Remember, a higher deposit can often lead you to access better rates of interest due to your loan-to-value lowering.

Most applicants receive an average 5% gifted deposit or less. Usually, this is also combined with the applicant’s current savings to boost their overall amount.

Who can benefit from a gifted deposit?

Mostly, it is only First Time Buyers in Cardiff that we see with a gifted deposit. However, it is not uncommon to see those moving home with deposits in place too.

If you don’t receive a gifted deposit, remember that there are also schemes in place to help you boost your mortgage deposit, e.g. Lifetime ISA.

What proof is required?

You will always need evidence of where your deposit has come from when applying for a mortgage. This works the same with gifted deposits.

You may also need to provide additional proof of ID or bank statements. Your lender and Mortgage Broker in Cardiff will ask for this upon your inquiry.

We would also advise that you keep the gifted deposit inside of the gifter’s account until you start your process. Lenders do not like seeing lots of money being transferred between accounts; especially during the months leading up to your mortgage application.

The Importance of Changing Your Address in Cardiff

Get Mortgage Ready in Cardiff

When it is time to prepare your mortgage application, you must consider your credit file and how it will look to a lender. Remember that a lender is looking for reliability; someone who will be able to meet their repayments.

It’s not just reliability that lenders are looking for though, they will also be looking at your credit file, and even more specifically, what is linked to it. This includes credit accounts, store cards and even your Amazon account! What all of these have in common is they hold your personal details, such as your address. And, believe it or not, lenders pay very close attention to this address…

Why do lenders look at your address?

Lenders want all of your addresses to match across all of your credit accounts, store cards, billing information, etc. They will look at this once you have submitted your mortgage application.

A wrong address linked with a credit card will be more serious than your billing information on your amazon account, as it could be a sign of identity theft.

They also want to know that you are reliable and you are who you say that you are. If you have your name registered to different addresses, then how do they know you live where you say that you live? It will appear to them that you are living in two places at once.

Does it affect me as a First Time Buyer in Cardiff?

As a first time buyer in Cardiff, if you are still living with your parents/carers, lenders will expect all of your addresses to link back to their home address.

If you are a tenant, you are expected to have updated your address to your current rented property. You should have done this upon moving into the new property.

As a mortgage broker in Cardiff, we often find that the majority of people that slip up on this are home movers.

Does it affect me as a Home Mover in Cardiff?

We find that it is those moving home that are most affected by an old address on their application. This is because the applicant is likely to have their addresses registered to the property before their current one. This could be their parents’/carers’ address, and they have forgotten to update their details since moving into their first home.

For example, if a bank card is still registered to your parent’s address, your parent’s address will not match the current address on your bank statements. Lenders will pick up on this.

Are fewer addresses better?

Yes, having fewer addresses on record is better overall, however, do not make this a reason to not change your details to your current address before moving.

If you are moving home in Cardiff, remember to double-check that you updated your details before submitting your mortgage application.

How can a Mortgage Broker in Cardiff help?

As a Mortgage Broker in Cardiff, our job is to guide you through the mortgage process, even helping you prepare your application. We will check over your credit file and make sure that everything is aligned.

We will alert you of any bits that need changing out that will boost your chances of being accepted by your lender. Remember that it’s not just your credit file that lenders will look at. For example, lenders will analyse your bank statements, payslips and your most recent P60. They will also need photographic identification to support that you are who you say that you are.

You can book a free mortgage appointment online via our ‘get started’ form. There are plenty of appointments available, 7 days a week. We have appointments early in the morning and late in the evening.

Get in touch as our team can’t wait to help you!

Reviews

array(2) { [0]=> array(2) { ["total_pages"]=> int(1) ["reviews_ids"]=> array(4) { [0]=> int(9198893) [1]=> int(9198807) [2]=> int(9198808) [3]=> int(9198809) } } [1]=> array(2) { ["total_pages"]=> int(1) ["reviews_ids"]=> array(0) { } } }

Top 5 Mortgage Hurdles You May Come Across in Cardiff

Specialist Mortgage Advice in Cardiff

There’s a high chance that you could encounter difficulties during your mortgage application. This could be anything from failing to match lending criteria to your application being affected due to a divorce/separation.

Mortgages are complicated! You won’t be able to obtain one just like that. Firstly, you’ll have to pass lender credit checks and affordability assessments to show that you’re eligible for a mortgage. If you encounter a hurdle during these stages, you may need a mortgage specialist to help progress your application. If you are a First Time Buyer in Cardiff, these problems may seem complex; we can explain these problems and will try to help you get by them.

Here is a list of the most common mortgage hurdles that home buyers come across during their mortgage process.

Common mortgages hurdles

Childcare fees

It’s very unlikely for you to be turned away due to you having children, however, your overall offer may be a little higher than if you didn’t have them.

When assessing your affordability, lenders will factor childcare costs into your expenditures. They have to be sure that you can afford a mortgage, therefore, they have to consider all of your outgoings. Childcare costs (depending on how many children you have) can run into the hundreds each month, and they don’t go down! They’ll treat these costs as recurring payments and will treat them as they would treat a car loan or hire purchase agent.

Even if you don’t pay for childcare, such as a nursery, you still may be offered less than other buyers who don’t have children.

Divorce/separation

It’s unfortunate when it happens, but when you and your partner decide to call it a day and you’re both linked to a mortgage, you may need to solve your financial problems first. Things can get complicated the longer that you leave it.

Lenders may struggle to progress your application if you’re still financially linked to someone else, especially you’re linked through a mortgage. This would mean that you would be accountable for two sets of mortgage payments each month, which could be too much for you to manage.

When customers in this situation come to us for Specialist Mortgage Advice in Cardiff, we are usually asked the same type of questions:

  • How can I remove my ex’s name from my mortgage?
  • How do I remove my name from my ex’s mortgage?
  • Can I have two mortgages?

If you are asking these questions, it may be best to try and speak with a professional advisor who may be able to assist you with these problems. A situation like this is already stressful enough, never mind the worries of your mortgage.

Benefit income

Different lenders will have different views on benefit income and will assess it differently. Other benefits that could be assessed include child tax credit, working tax credit, disability benefit or pension. Each lender will differ with what they choose to assess.

We have access to many different specialist lenders that each have their own unique lending criteria and will measure different types of income. These types of lenders could help you with your case.

New job

When you get a new job, more often than not, it will come with a higher salary. This would mean that you have more money for things like a new mortgage. You would also think that because of your new higher salary, you should be able to get a mortgage easier, however, this is sometimes not the case.

Some lenders may consider probationary periods as an issue (depending on the likelihood of you staying on), whereas others may not be bothered at all. They will also look at your previous line of work and see whether you were employed for a while before your new job or if you were jumping in and out of work. Lenders need to make sure that you are a reliable applicant and not someone who will be unemployed within months. Gaps in employment can negatively impact your chances of being accepted.

On the other hand, some lenders may even qualify you before you’ve even started the job. This will be no more than a month in advance.

Evidencing a deposit for a mortgage in Cardiff

In Cardiff, when you’re applying for a mortgage, you need to correctly evidence your deposit and show exactly where you obtained it from. If you’ve simply built it up over time, you will need to evidence this through your bank statements and if you’ve received a gifted deposit, the person gifting you the money will have to prove where they have got the money from.

This is all for anti-money laundering purposes and so that your lender knows that the funds have been legally raised. Your solicitor and estate agent may also ask for this evidence.

Applicants can easily slip up on this part of their mortgage application. If your funds have not been evidenced correctly, your lender could start to question where the money has actually come from. If you use a Mortgage Broker in Cardiff like us, we will help you evidence your deposit correctly. We can go through this step with you so that you have the best chance of being accepted by your lender.

Shared Ownership – What is it? How does it work?

Shared Ownership Mortgage Advice in Cardiff

https://www.youtube.com/watch?v=n1Q-Ejl9eWs

What is shared ownership?

Shared Ownership is a help to buy scheme designed by the government to help first time buyers and home movers get onto the property ladder.

The scheme allows you to buy a share of a property (usually between 10% to 75%) and then pay the remaining share back on rent. If you situation changes, such as getting a higher paid job, you could look at increasing the percentage share that you own. Sometimes, you can increase your share to 100% and take full ownership of the property, whereas, some building societies may not allow you to do this and put a limit on the amount that you can own.

If you meet the requirements for this scheme and are a First Time Buyer in Cardiff, it can be a great mortgage option to look at, especially since it helped you get onto the property ladder.

How does the scheme work?

First of all, like any mortgage, you’ll need to put down a deposit. The minimum amount that you need to put down can vary from property to property; it can also change depending on your credit score.

You will be taking out a mortgage based on the percentage that you own. For example, if you are wanting to own a 50% share of a property that is worth £200,000, you will need to take out a mortgage worth £100,000.

Furthermore, you will not need to provide a deposit based on the price of the property, it will be based on the share that you took out. If you’re required to meet a minimum of 5%, on a £100,000 mortgage, you will need a £5,000 deposit.

Once your offer has been accepted and you’ve moved into your property, you will start paying off your mortgage and also receive rent based on the remaining percentage of the property.

Even though you have two sets of payments, your overall monthly costs shouldn’t add up to as much if you had taken out a ‘regular mortgage.

Costs and fees

There are lots of different types of costs and fees that come with taking out a mortgage. When taking out a Shared Ownership mortgage, you may face set-up/arrangement fees, legal fees and possibly booking fees. Double-check with your Mortgage Advisor in Cardiff about other costs before you continue.

Property to property, costs can vary. This will be factors such as deposit size, monthly payments arrangement fees and even stamp duty.

How can I apply?

First of all, if you want to check whether you qualify for the Shared Ownership scheme or not, you can get in touch with our team and we can arrange this for you. All you have to do is book your free mortgage appointment online!

Here are the schemes basic requirements:

  • You have to be at least 18 years of age.
  • If you are living outside of London, your total household annual income must be less than £80,000.
  • You are a First Time Buyer, you used to own a home but can’t afford to buy one now or are an existing shared owner looking to move.
  • If you can afford to purchase a property on the open market, you will not access this scheme. 
  • You must prove that you are not in any arrears, such as mortgages and rent.
  • You must provide evidence supporting a good, clean credit history—having a CCJ on your credit file or any other credit-related issues will look bad. 

Each of the help to buy scheme requirements will vary. Some will be harder to match than others, however, when this is the case, it could mean that you are not suited to that scheme.

If the Shared Ownership scheme doesn’t seem like the right fit for you, you can always check out other government schemes on ownyourhome.gov.uk.

Get in touch with a Mortgage Broker in Cardiff today

If you’re a First Time Buyer in Cardiff, we would recommend getting in touch with our mortgage advice team. We can work out your mortgage affordability, how much you can borrow and whether you’re eligible for a help to buy scheme.

We have helped many customers in Cardiff access this scheme and other help to buy options. If you’re looking for Help to Buy Mortgage Advice in Cardiff, you’ve come to the right brokers!

Book your free mortgage appointment online today,

Top Tips on how to Sell Your Home Quickly in Cardiff

Moving home mortgage advice in Cardiff

Whilst moving home may seem straightforward, you also have to remember that you have to sell your home at the same time. Moving and selling at the same time can be stressful, and sometimes it can feel like all you want to do is quickly sell your home.

So how can you do it? How can you quickly get your house on and off the market and sell it for the price that you want to? Here are some tips that could maybe help you sell your home quickly:

Top tips for selling your home & moving in Cardiff

1. Realistic asking prices

There’s always a magic number when it comes to choosing what price you should put your property on the market; it can sometimes be hard to find, but once you do, you’ll know right away. Getting the perfect balance between what you want for it and what a buyer is willing to pay is what you need to try and get to.

To get this number, it’s likely that you’ll need to get your property surveyed. Your estate agent will suggest the highest potential sale price, however, just because it’s a suggestion, doesn’t mean that it’s the right thing to do.

As a mortgage broker in Cardiff, we would recommend using sites like Zoopla and Rightmove. These sites can be used to compare houses that are similar to yours. For example, you could compare their prices to what your estate agent suggested you could list yours at. Once you have a feel of what other people are doing, it may be time to set a price. You’ll know right away whether you’ve set the right price or not, as you’ll start receiving property viewings right away.

If your property receives no initial interest, then it may be time to reevaluate your asking price. Even though you’ve done your research and you want a certain amount, if no one is interested in your property and you want a quick sale, you’ll have to lower your starting price.

2. Perception of your home

Thinking of how your home looks in another person’s shoes can be difficult, but we definitely suggest that you try it.

Think about how your house looks from the outside and the inside. What is the first thing that they will see when they walk up to your house? What’s the first thing they’ll see when they walk into your house? It’s likely that the way that you view your house will be the same way that everyone else does.

3. Cleaning the house, inside and out

Linking to the last point, before you invite people into your home, the first thing that they’ll see is the front garden and the exterior of the property. With this in mind, it may be a good idea to make your front garden presentable and tidy to welcome house viewers into the property. This could be from replanting flowers to jet washing the drive and cleaning your windows – every little helps.

Cleaning the inside of the property is a must when it comes to selling your home. You want to show people that you look after the house and have kept everything in shape in your time living there. Make sure that clean all throughout the property, in particular, the kitchen and the bathroom.

We also recommend that you remove clutter and obstructions that will avoid people walking around the house easily. The last thing you walk during a house viewing is for your guests to be squeezing through doorways and steeping over clutter.

It’s also not a bad idea to make things look coordinated, e.g. towels in order. Little things like this can often catch people’s eye, again referring to the fact that you look after the property.

4. Ensuring the viewer feels comfortable

Every guest should feel relaxed and welcomed as soon as they enter your home. You want them to get the feeling that the property could be their new home. It can be difficult for it not to happen, however, having pets or children around during a house viewing could potentially put off buyers.

On the other hand, a great way to send out a message that this is a ‘family home’ would be to have children around and pictures up on the wall of your family. Believe it or not, having family pictures up around your home can make the viewer feel welcome and comfortable. This will especially help if the person viewing the house has a family or is planning to start one.

Sometimes, it can also be a good idea to let your guests view the property themselves. You could let them have a wander around on their own if it’s appropriate. In some cases, we’ve also seen people leave the house or go for a walk so that your guests can have time to explore the house without it being too crowded.

Here are some other simple ways to make your guests feel more comfortable:

  • Make sure that your home is well-lit. Make sure that curtains and blinds are open to allow sun light into rooms. You can also make sure that darker rooms have their lights turned on.
  • Spraying rooms with air freshener could make your guest feel more welcome. People associate air freshener with clean houses; doing this in every room will make your guest aware that you take care of your home form top to bottom!
  • Sometimes it can be nice to have empty shelves and plain walls so that the viewer can resonate with their potential future home. They may already be thinking of decorations in their head once they see this.
  • Last but not least, as a mortgage broker in Cardiff, we always recommend that you give them as much time as they need. Some may want more than an hour, some may want less. To allow time for you guest, make sure that you don’t rush them and let them know that they can take as much time as they want.

5. Making your back garden presentable

The back garden is usually the last stop of the house viewing, therefore you want to make it as presentable as you can.

This means replanting flowers, tidying hedges and trees, running the lawnmower over the grass, painting your fences, etc. Anything that makes your garden look relaxing and welcoming could positively boost their overall opinion of your house.

We also advise that you don’t just put clutter and rubbish inside of your garage because it’s likely that your house viewers could ask to see inside of it to see what sort of space there is in it. The last thing that they’ll want to see is a garage full of random things that you’ve tried to hide away.

Summary

In summary, make your home feel welcoming, make the person viewing the house comfortable and try to think “what would I think if I were in their shoes?”. A potential buyer may become a guaranteed buyer if they are pleased with your home!

Minor damages and repairs may need to be carried out on the property, however, we do advise that you get this arranged prior to putting the house on the market. If you’re moving home in Cardiff, you’ll know what to look for in a new home, so apply it yours too.

For moving home advice, speak to a moving home mortgage advisor in Cardiff today. Our team are highly experienced when it comes to helping people move home – we’ve been doing it for 20 years!

Get in touch for a free moving home consultation today.

Budget 2021 Mortgage Market Overview

The March 2021 Budget provided lots of positives to take in; the mortgage market was particularly blessed with great news. Chancellor Rishi Sunak introduced a new government led scheme called the “Mortgage Guarantee Scheme” and also annoced that the Stamp Duty Holiday will be extended to an even later date.

The UK’s mortgage market needed a boost like this. The government clealry see the mortgage market playing a vital part in the plan to get the UK’s economy back on track.

https://www.youtube.com/watch?v=xeR8CoTVjfA
95% Mortgages Returning & Stamp Duty Holiday Extended | Budget 2021

95% mortgages are coming back!

During late last year in October 2020, 90% mortgages made their way back into the forefront of the mortgage market, but there were still no signs of 95% mortgages returning. It looked like there was no end in sight, not until the recent Budget anyway…

In the recent 2021 Budget, we saw that 95% mortgages were going to be coming back sooner than we expected. Sunak announced a new way for First Time Buyers and Home Movers to get themselves up the property ladder, this was introduced as the “Mortgage Guarantee Scheme”. This name, however, is a bit misleading as you are never guaranteed a mortgage. Lenders will take lots of different things into account before accepting your mortgage application, they ill assess your credit score, make sure that you’ll be able to meet your monthly payments and various other things. Lenders won’t lend to someone who carries a risk of their home being repossessed, although repossession is the last resort, lenders will never risk it just in case.

Lenders have recently been worried about the idea of home values decreasing, so this new scheme should alleviate that concern although of course, the chances of negative equity occurring will naturally reduce should property prices increase as a result of these announcements.

Sunak included that both First Time Buyers and Home Movers will be able to take advantage of this scheme. It can also be used on any property too, not just new builds.

This new scheme will be available from April 2021 and will run until December 2022. We also learnt that many credible lenders are already backing the scheme.

As a Mortgage Broker in Cardiff, this news comes to us with nothing but positivity. We can only go upwards from here!

Stamp duty holiday extension

In the Budget, we also learnt that the stamp duty holiday has been extended until 30th June 2021.

When the stamp duty holiday was extended last year, we were all in the mindset of “it’s just a phase”, but we quickly learnt that things were going to take a while to change back to how they were. When the stamp duty holiday was introduced, people gained a bit more confidence in the market and it made people continue through with their purchases. We are hoping that this further extension, makes people do the same and continue with their purchase, even despite the current circumstances. The stamp duty holiday and the 95% mortgage scheme go hand in hand, we are hoping for the confidence amongst homebuyers in the UK to come back.

The stamp duty holiday has been extended, which means that property purchases up to £500,000 will remain tax-free until 30th June 2021 and those up to £250,000 will stay tax-free until September 30th 2021.

Current stamp duty rates

  • Property value < £500,000 – no stamp duty costs
  • Property value £500,001 – £925,000 – 5% of the property purchase price
  • Property value £925,001 – £1,500,000 – 10% of the property purchase price
  • Property value > £1,500,000 – 12% of the property purchase price

If this news is music to your ears and you are thinking that it’s time to look at Moving Home in Cardiff, it may also be time to start weighing up your mortgage options. You can always evaluate your mortgage options by approaching a Mortgage Broker in Cardiff, they will talk you through the entire process step-by-step. We are just one call away and would love to help you with this.

Mortgage market update

Now that the mortgage market is looking more and more positive each week, it may be time to start getting mortgage ready. With 95% mortgages on the horizon, you may be able to bag yourself a great mortgage offer within weeks of your initial enquiry. Now that the stamp duty holiday has also been extended, you should hopefully expect to pay fewer fees upon your completion.

Furthermore, lenders are still dealing with a lot of applications and have quite a backlog of mortgage applications to process and mortgage appointments to book. So if your nat to take advantage of the new 95% mortgage scheme and the stamp duty holiday extension, you should contact our Mortgage Broker in Cardiff and we will put you straight through to a Mortgage Advisor. Our responsive team will always be available for a chat 7 days a week.

This will be very useful to you if you are a First Time Buyer in Cardiff, we can help you compare deals and check whether you match the scheme or not. For your free mortgage consultation, get in touch with our expert Mortgage Broker in Cardiff today. We can’t wait to try and help you!

Two Generations Working Together

Meet our new Mortgage Advisor in Cardiff

Meet Joe, our newest addition to the Cardiffmoneyman team. He’s starting as a Mortgage Advisor in Cardiff, he can’t wait!

Joe is the sun of the 40-year mortgage veteran Mortgage Advisor Wayne Dewsbury. If you know Wayne, you will know that he is a great advisor and we are very proud to have him as one of our own. We are sure that Joe will follow in his fathers footsteps.

Joe had previously worked in a high street bank for 3 years before he decided to take the jump to the Mortgage Advisor role. He is looking forward to getting involved and becoming a member or the moneyman team.

Mortgage Advisors in Cardiff

Wayne never thought he’d end up working with his son, but here he is on their first day working together. As you can tell, Joe is happier to be working with his dad than he is!

Product Transfer & Remortgage Advice in Cardiff

What is a Remortgage?

A Remortgage is when a mortgage deal comes to an end and you have to either renew your deal or switch onto another one. If you are approaching the end of your mortgage term and you need a new deal to switch onto, perhaps it’s time to get Remortgage Advice in Cardiff.

If you leave a Remortgage too late, you could find yourself dipping straight onto your lenders’ standard variable rate (SVR). A lenders’ variable rate will always be a higher rate than your current fixed-rated, so make sure that you know when your deal is coming to it’s end and it’s time to remortgage.

https://www.youtube.com/watch?v=H2KyH_10MMY
Why Should I Remortgage UK | MoneymanTV

What should I do when it’s time to Remortgage?

When it’s time to remortgage, you should consider all of your available options:

  • You could stick with your lenders’ SVR if you don’t want the hassle and are happy with the rate.
  • Maybe you want to renew your current deal and continue at your usual rate
  • You could shop around for different deals to see whether you can access a better rate or not (also known as a product transfer/switch).

Lenders’ Standard Variable Rate

More often than not, your lenders’ standard variable rate will have a greater interest rate than most of their fixed-rate mortgage deals. If you want to save the hassle of searching for another deal or are more than happy to match their payments, this could be an easy option for you. It depends on your lenders’ standard variable rate.

As a Mortgage Broker in Cardiff, we must inform you that in the majority of cases, applicants who are on their lenders’ SVR are able to access much better rates.

The only real positive to being on your lenders’ standard variable rate is that you are not tied into any particular mortgage deal, therefore you can shop around and look elsewhere for other mortgage options whenever you want to. You can’t do this whilst linked with a fixed-rate product. You are essentially overpaying for freedom.

Renew your current deal

If you were happy with your mortgage payments, you may be able to renew your current deal. Your lender will know that you are coming to the end of your deal, however, they may not tell you. It’s your job to know when it’s coming to an end and you must get in touch with them if you want to discuss teh possibility of renewing your deal.

When a deal suits your circumstances, we know that there is rarely a reason to swap products. The only time it really happens is when someone can get the same product from another lender for slightly cheaper.

Shop elsewhere

In our opinion, this is your best option if you are looking at Remortgaging in Cardiff. Most of the time, there’s a better deal out there that’s available for you, it’s just the case of finding it. Remember that you are under no obligation to stay with your current lender, so when we say to “shop around”, you can look anywhere.

Lenders will never reward you for your loyalty, they are more likely to offer better rates to First Time Buyers in Essex. No matter how long your term was, they will never offer you discounted rates or products.

When you are looking for external deals, you have to be careful where you look. For example, if you choose to switch everything over online, you need to make sure that you pick a deal that is right for you. If you end up with the wrong deal, you will have to deal with consequences as you chose not to take Mortgage Advice in Cardiff and did everything yourself. If this results in you paying more than your previous rate, you can’t do anything about it, you will still have to pay.

There are ways to get out of a wrong deal, however, they include high fees and a lot of trouble. If you take Mortgage Advice in Cardiff you will avoid all risks of getting it wrong, as a Mortgage Broker like ourselves aim to get it right the first time!

Remortgage completion

Once you have chosen your Remortgage route and have a new/the same deal in place, you are free to continue as you were prior to remortgaging. You will continue paying your mortgage payments as usual.

Hopefully, you managed to get a competitive rate out of your remortgage and are happy with the product that you now have. Until your term is over, you don’t have to worry about remortgaging for a while now. On the other hand, if your personal or financial circumstances change in Cardiff, you should know that you can remortgage again if you need too. If your situation has changed, your lender will take it into consideration and may be able to work something out for you.

If your situation is complicated, approaching a Specialist Mortgage Advisor in Cardiff could your best option. You can also Remortgage for home improvements and to raise capital, so don’t hesitate to get in touch if you need help with this.

Getting Prepared for Your Mortgage in Cardiff

Mortgage Advice in Cardiff

Once you have saved for your deposit and you have enough money for a mortgage, it’s time to get prepared for your mortgage application. There are lots of different things that you will need to provide alongside your mortgage application, so we thought that we would give you a handy list so that you know what you need:

Document Checklist in Cardiff

Up to date credit report

This item should be at the very top of your list; ideally, it would be handy if you can obtain this before you approach your Mortgage Broker in Cardiff. Your credit report will show you how your credit score is looking, which is what lenders will use to determine whether you’ll be accepted for a mortgage.

They are going to look at everything on your credit file, this will allow them to match you up with a lender that will be best suited to you. If your credit score is low you may need to look at a way to improve your credit score, for example, getting yourself on the voter’s roll seems to really help in terms of your credits score.

Proof of ID

ID Icon

In terms of proving that you are, who you say you are, you will need to provide some in date photographic ID. Most of our customers use a driving license or passport for this part of the process.

However, you can’t use driving licence for ID though if you are also using it for proof of address. If you are a non-UK national working over here on a Visa, you’ll need to produce that too.

Proof of address

Home Icon

In addition to your ID, you’ll have to prove where you live. As mentioned above, you can’t use your driving licence or passport if you are already using them for your proof of ID.

We usually advise people to use a utility bill or an original bank statement dated within the last 3 months.

Last 3 months’ bank statements

Document Icon

Your bank statements are needed to evidence your income and regular expenditures. When your lender analyses your bank statements, they are going to look for a variety of different things. For example, if a lender notices gambling transactions on your statements, they may not be so happy, it depends how often you gamble. They will also look at whether you stick to your agreed overdraft limit and if your direct debits bounce regularly. They need to be confident that you are going to be able to meet your monthly mortgage payments.

The Bank Statements you need to produce tend to be the ones where your salary goes in and your bills go out.

Evidence of your deposit

Deposit Icon

You will need to prove where your deposit has come from and show that you have the correct amount needed. This is all for anti-money laundering purposes; your lender will need to be certain on everything. I always think it’s best not to move monies around your various accounts too much. If you do, it will make evidencing the audit trail more difficult. Lenders also like to see that you’ve saved up for the deposit, so be careful on transferring large sums of money close to your application.

It’s not unusual for a portion of or the whole of the deposit to be covered by a gifted deposit from a family member or friend. These funds will also need to be evidenced and the person who has gifted you the deposit will need to sign a letter to confirm that it was a gift and not a loan.

Proof of income

Payslip Icon

In terms of affordability, the most important thing that you will need to evidence is your income. If you are employed this tends to be through your last 3 months’ payslips and some may even want your most recent P60. Lenders can consider regular overtime, commission, shift allowance and bonus. If you are lucky, your lender may accept earnings from more than one employer. This situation comes around when the applicant has a part-time job or is Self Employed.

Many of our customers in Cardiff are Self Employed. If this is you, then you’ll need your Accountants’ help to request your last 2 or 3 years’ proof of earnings from the Revenue. If you submit your own Accounts’ please contact us and we will advise you what to download from the Government Gateway.

Budget planner

As an experienced Mortgage Broker in Cardiff, we always advise that you do your homework and write down an estimate of your anticipated outgoings after you move to a new house. You can then work out a rough idea of how much your council tax and utility bills will be plus your regular expenditures such as food and drink. You will then be able to demonstrate how much disposable income you have available to pay your mortgage from.

Before we carry out an appointment with you we can send you our version of a Budget Planner to help you with this.

As you can see from the above, preparing for a mortgage isn’t easy. Think of it like the “Tortoise and the Hare” – if you want your application to run like clockwork, you’ll need to put the time aside to get everything together. You’ll get there much quicker if you put in the work at the outset!

Cardiffmoneyman.com & Cardiffmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
Should you have cause to complain and you are not satisfied with our response to your complaint, you may be able to refer it
to the Financial Ombudsman Service, which can be contacted as follows

The Financial Ombudsman Service, Exchange Tower, London, E14 9SR
www.financial-ombudsman.org.uk

© 2022 Cardiffmoneyman

Cardiffmoneyman, 4th Floor, 14 Museum Place, City Centre, Cardiff, CF10 3BH.

Moneyman Logo







Moneyman Logo




Moneyman Logo

Ask Your Question





    Moneyman Logo

    Moneyman Logo







    Moneyman Logo

    Book your Free Consultation

    7 Days 8am - 10pm

    Moneyman Logo

    Moneyman Logo