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Well done! You have completed all of the necessary exams and have successfully achieved your career goal of becoming a Newly Qualified Teacher in Cardiff. The next step for you to take is to find yourself a job within the classroom, using your newly gained qualifications!
Depending on your circumstances, you may actually need to start looking at the options you have for moving house in Cardiff, if say you are currently residing within a property that is situated further away from your new job.
Sooner rather than later, you will find yourself on the lookout for a new place to live, finding it difficult to maintain the balance between owning a new home, as well as trying to ensure that you remain comfortable in your new role within the education industry.
You are certainly not alone in this endeavour, however, as we have helped a great many customers over our years working with mortgages, helping people like you to reduce their stress and take on the weight of their mortgage process, whilst they focus on their career.
Sometimes you may find it to be quite challenging looking for a mortgage lender who is willing to offer a mortgage to a newly qualified teacher in Cardiff.
The main reasons why this will be the case, is because as a newly qualified teacher you will have either no work history or you will be on a temporary contract.
Even bearing this in mind, it’s not totally impossible to find a mortgage for an applicant who is a newly qualified teacher. Our team of open & honest mortgage advisors in Cardiff have helped many customers with this during our time as a mortgage broker in Cardiff.
Occasionally, you will come across some mortgage lenders who actually have specific specialist deals, that are on offer to applicants who work within this particular sector.
The key to finding mortgage success is finding the most appropriate mortgage lender for your circumstances and what you are looking to achieve. This is often the most difficult part of the process and if you can get that far, you’re generally on the right path.
It is times like this where an experienced and trusted team who provide expert mortgage advice in Cardiff, can take a look at thousands of mortgage deals, in order to find the most suitable one for you, with favourable interest rates.
You must always remember that whilst it can be a complicated process for some, you are not entirely restricted in what it is you can do and what mortgage options are present for you.
Below are just a selection of the most frequently encountered mortgage types that we have seen when working through the mortgage process with newly qualified teacher:
The mortgage lender may also review various other factors as well when you are applying for a mortgage as a newly qualified teacher. There are some mortgage lenders who will not need to see previous employment history, whilst still letting you access up to a 95% loan to value.
Depending also on the mortgage lender, a 12-month first contract may be treated as the same as a permanent job role, rather than treating it as temporary work, which other mortgage lenders may very well do.
Last of all, there could be some lenders out there who are willing to begin the mortgage process with you prior to your official work start date, so long as you can provide them with suitable evidence of a signed contract and a planned start date.
This can be incredibly useful to you, as you may find that you are ready to pay your very first mortgage payments with your first months wage from your new education job by the time that the mortgage application process has completed and your first bill is due.
Our open & honest team of hardworking and dedicated mortgage advice experts in Cardiff have an immense amount of experience working within the mortgage industry, helping a wide variety of home buyers with their unique and individual mortgage situations.
You will hopefully see that there are a lot of benefits to using the services of a mortgage broker in Cardiff. We will take on the process for you, searching through thousands of deals on your behalf, reducing your stress, recommending conveyancing solicitors and much more.
To take a look at the various different mortgage options that could be available to you, book yourself in for a free mortgage appointment with a fast & friendly mortgage advisor in Cardiff, who will take initial information from you and help you on your way to the next step of your mortgage process.
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.
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.
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.
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.
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.
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.
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.
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.
Every now and again we come across a customer who would like to remove someone else’s name from a mortgage. As a mortgage broker in Cardiff, the main reason we hear for this is divorce or separation.
When encountering an instance such as this, sorting out your joint financial commitments should be your primary focus, to prevent any challenges down the line. Unfortunately, they’re often left until last.
Doing so makes the process a lot more difficult, stressful and much more time-consuming, so you should always do this ahead of time. Speaking to a mortgage broker in Cardiff is a good way to get on top of this.
Leaving your name tied to someone else financially can be problematic for you in the long run, due to a few reasons.
The first being that because your name is still tied, you will still be chased for missed mortgage payments, whether you live there or not. There is no getting out of that situation once you are in it, as you are legally responsible until removed.
Additionally, your credit score will also be affected by the financial association. If the other person’s credit score drops, so too will yours. Furthermore, if you were looking to take out a mortgage of your own, in your own name, you would be finding yourself in a difficult process.
For one, it will affect your affordability, as the mortgage lender will see it as an already large financial outgoing. This means you will not be able to borrow as much for your property purchase.
On top of this, you could be faced with higher Stamp Duty tax implications because you will be purchasing a new property whilst technically still owning one already. This can end up being quite costly.
All in all, it is best practice to remove your name from someone else’s mortgage as soon as you possibly can.
If you are the person who will be taking on the property and full responsibility for mortgage payments, the first step is to find out whether or not you are eligible for a remortgage onto a new deal as a sole name applicant.
Speaking directly with your mortgage lender/building society or getting in touch with a mortgage broker in Cardiff will help you to determine this.
Prior to removing someone else’s name from a mortgage, it is important that you both agree who will be getting the property. If you disagree, you may end up forking out on court costs to come to some sort of decision.
If you are currently experiencing divorce or separation, it will definitely be worth your while in seeking specialist mortgage advice in Cardiff. An expert mortgage advisor in Cardiff will be able to help you with your mortgage process.
If you require any help removing someone else’s name from your mortgage, it is absolutely worth your time getting help from a specialist mortgage broker to help you remortgage in Cardiff.
We are here to provide expert mortgage advice in Cardiff, 7 days a week including weekends and some bank holidays, to provide support and guidance throughout your remortgage process. Book your free remortgage review today and we will see how we can help.
If you are only planning on living for a short period, renting makes more sense. However, if you are going to stay in a particular area for a long time, saving for a deposit and buying would be more suitable.
If you had parent(s) who took out a mortgage, this might encourage you to be a first time buyer in Cardiff once you saved enough for a deposit or have been fortunate enough to receive a gifted deposit. This article will take a look at the benefits and drawbacks of buying a home.
The property market fluctuates, leaving people unsure whether when is the best time to start putting your foot onto the property ladder. Before committing to a purchase, you should speak with a mortgage advisor in Cardiff to discuss all your options.
With that said, this is more than just an investment. It’s a home. The most important factor is finding the most suitable one for your circumstances.
More often than not, your repayments on the mortgage can sometimes be cheaper than rent. Interest rates tend to fluctuate, too, meaning your mortgage payments can do the same. Alternatively, you could look a taking out a fixed-rate mortgage.
A fixed-rate mortgage will ensure your payments remain the same for a set period. On the flip side, rental properties typically see prices stay the same or increase.
Owning a home creates a sense of stability for them and their families. Providing you can keep up your payments, nobody can force you to leave your home if you don’t want to.
As a tenant, you get some protection with things like how much notice you need to be given, and if they want the house back, your hands are firmly tied. However, when you factor in family, work or schools nearby, this isn’t ideal for you.
At times, Landlords give their tenants the first refusal to buy the property if they are selling, as this saves them on Estate Agent fees.
Renting can be a more flexible option than owning a property. There’s nothing to stop you from giving your landlord notice if you want to leave for a job in a different area.
As a homeowner, this becomes awkward as you have to decide whether or not they want to rent out your home or sell it. The process of selling a home and buying a new one is both expensive and time-consuming.
If you’re unsure of your commitment to a set area and feel you may move again, you should consider whether or not it’s worth buying a property. It should be viewed as a long term investment.
Landlords should be responsible for all major repairs that a tenant needs. Some are better than others when it comes to this, and you still might end up doing some repairs yourself.
If you are a homeowner, then all of this is down to you, ensuring the property (a condition of any mortgage you take out).
Contrary to popular belief, owning your own home is not for everyone. If you are young and moving in with a partner for the first time, renting may very well be the perfect option for you.
There’s nothing wrong with renting for a while. However, life is unpredictable, and for one reason or another, you may need to remove someone’s name from a property, which can be difficult on a mortgage.
There are not many more extensive financial commitments than buying a home, so everyone should consider the options before diving in. If you decide to rent through, it may take you much longer to save up for a deposit.
Overall, most folks tend to decide on buying over renting. However, no matter whether you’re paying rent to a landlord or paying for a mortgage, you’re still making monthly payments to live somewhere.
The consensus is that people would much rather their payments go towards their benefit than someone else. It’s often just a matter of timing and being in a better financial position.
Home movers in Cardiff are often in two minds whether to move or not (e.g. “I like my neighbours, but I’d like an extra bedroom). However, most potential first time buyers in Cardiff, if asked, would likely say they want to be on the property ladder.
They are often unphased by and disinterested in external factors such as ongoing political events. So whilst the housing market does go through fluctuations, this hardly ever puts people off wanting to get onto the property ladder.
It should always be classed as a long-term investment, and whilst it might not be ideal if your home drops in value, history suggests that when that does occur, the prices go back up in the long run.
95% mortgages are an option if you fit the criteria, if you are more than halfway to having the 5% deposit available, it’s worth trying to get an agreement in principle in place. To make sure you are eligible for a mortgage when the time comes.
As an experienced and hard working team of mortgage advisors in Cardiff, we always aim to make sure that our customers are kept informed, up-to-date and prepared for the mortgage journey that lies ahead.
In this article we have put together a detailed list of the 10 steps that first time buyers in Cardiff will go through during their mortgage process. It’s our hope that in this, you are closer to being ‘mortgage ready’.
After putting in some very careful thought and consideration, you’ve now decided to take on the world of properties and purchase your very first home, obtaining a mortgage as a first time buyer in Cardiff.
We can say with near certainty that this is going to be one of the most important decisions you ever make regarding your financial state. Once you come to terms with this, it can be anxiety inducing, especially when you are inexperienced with this sort of thing.
It is here where a dedicated mortgage broker in Cardiff can help you with the oncoming mortgage process. We always work hard to reduce our customers stress, doing everything that we can to ensure you come out the other side with a mortgage, positive and ready to enjoy your new home!
Once you have booked your free mortgage appointment with one of our open & honest mortgage advisors in Cardiff, we’ll gather some information from you and take a look at your future plans, before starting off your mortgage.
Whilst your free mortgage appointment is underway, your trusted mortgage advisor in Cardiff will take the time to go through a Mortgage Affordability Assessment with you.
This is generally a fairly quick process. Here your dedicated mortgage advisor will take a look at your monthly income, analysing any of your regular expenditures (the things that you spend your money on), to gain a better understanding of whether or not you are financially capable of paying back a mortgage.
This is crucial to your process and is something we must do before presenting you to a lender, as we need to be completely confident that you are able to afford your monthly repayments. This helps you to avoid potential debts and any future repossessions that could occur. Your mortgage lender will really want to avoid this too if they can.
A Mortgage Affordability Assessment will typically be taken out by a lender too, so our initial checks help to save the lenders time, your time and ours, from an application that could be declined if you happen to fail their affordability checks down the line.
Once this has been done, the next step in your free mortgage appointment will be helping you to obtain a very key document called a Mortgage Agreement in Principle.
If you have been looking up mortgages prior to enquiring for first time buyer mortgage advice in Cardiff, it is likely you will have heard of this, albeit under a few different names.
Some of these include ‘Decision in Principle’, ‘Mortgage in Principle’, as well as being shortened to ‘DIP’ & ‘AIP’. Don’t worry about this, as although it may be confusing at first, they are all actually the same thing.
The reason why making sure you have a Mortgage Agreement in Principle is so important, is because it proves that you have passed a lenders primary credit scoring system, whether that be from a hard credit search (this leaves a footprint on your personal credit file) or performing a soft credit search (which typically does not leave a footprint on your personal credit file).
Having this still doesn’t mean you are 100% going to get a mortgage, but it is definitely a step you will have to take on your mortgage journey. Another reason why it could be so beneficial, is that it shows the property seller that you are very serious, possibly leading to price negotiations when the time comes to make an offer.
Generally speaking, you will find that an AIP tends to last somewhere between 30-90 days. If your Agreement in Principle expires before you have chance to use it, we can easily renew this for you. Our expert team of mortgage advisors are usually able to obtain this for you within 24 hours of your mortgage appointment.
After you have obtained an Agreement in Principle, the next step will be to find yourself a Conveyancer who can help you with the legal aspects of home buying. The term Conveyancing is the term that is used for the process of transferring of legal ownership for a property between two parties, from seller to buyer.
Your Conveyancing Solicitor will help you out with contracts, provide you with any required legal advice, conduct local council or authority searches, deal with Land Registry arrangements and finally, the most important part, the transfer of the funds to pay for the property in question.
As you are able to see from the above information, this is a very crucial role in your mortgage process, so it’s important for you to decide carefully on who you use.
Another important thing to bear in mind, is that Licensed Conveyancers are property specialists and are not able to deal with more complex legal issues, whereas a more general Solicitors will be able to offer a wide range of services, though as such may appear to cost more.
Whilst we do not offer any of these services in-house, we do have some select companies that we know and trust, and will gladly be able to refer you to them if you would like us to.
Up until this point, you’ve now spoken to a Mortgage Broker in Cardiff, passed the Mortgage Affordability Assessment, obtained an Agreement in Principle and found an appropriate Conveyancing Solicitor to help with arranging the legal side of your purchase. You’re almost done now, all that’s left is to make an offer!
As previously touched upon, with an Agreement in Principle to your name, you will be in a much better place for making any property price negotiations with the seller. Don’t be afraid to ask for a lower price, but be wary not to insult the seller with a price that is too low!
If the seller knows that you have an AIP to your name, they will be much more likely to accept any offers you make that are slightly lower than they might receive from someone who is quite happy to pay the asking price but hasn’t even started the mortgage process yet.
If you look at the worst case scenario here, the seller might say no, but it’s here where you can take a step back and either discuss a reasonable offer that you can both agree on, or take a step back and find a more affordable property that you wouldn’t mind calling home.
Once you have had your purchase offer accepted, it’s back to your mortgage advisor and onto the final few steps of the mortgage journey!
The next step you will be taking is very important. Every step of your journey is important anyway, but this one is especially, as you’ll be submitting the necessary documents to be able to continue with a mortgage.
As can probably be expected when you are dealing with such a vast amount of funds, a mortgage lender will be incredibly meticulous as to who they will lend money too, and we can’t blame them for it. There have been lots of different instances in the past where lenders were a little less strict on the rules and it didn’t go well for them.
Your mortgage lender will require you to give them the proper documentation to prove your identity to them. They will also need to see your current earnings, where your current place of residence is and how well you are handling your finances on a regular basis.
If you’re obtaining a joint mortgage, the mortgage lender will require the same documentation that you will be providing, from the other applicant as well. This is to once again confirm their identity, address and earnings.
The types of documents that a lender will need to see include; proof of ID, proof of your home address, the last 3 months’ of your pay slips and latest P60 (employed).
They also need to see the last 3 years’ proof of earnings and Tax Year Overviews (if you are Self-Employed in Cardiff), proof of any additional income such as state benefits or maintenance, proof of your deposit and the last three months of your own personal bank statements.
When you have had your mortgage agreed in principle, and you have also had an offer accepted, we are now able to go ahead and help you with submitting your full mortgage application to the mortgage lender!
With everything checked and prepared by your dedicated Mortgage Advisor in Cardiff & their trusted team of Mortgage Administrators, we are ready to put forward your application to the lender and begin the waiting process of (hopefully) receiving confirmation that the mortgage is good to go.
Your mortgage advisor in Cardiff will send the lender all of the evidential documentation they have collected for this, and then all that is left is to wait and see what the outcome of this whole process is going to be!
Whilst there is specific time frame of which you can get a response, our Mortgage Administration team will be able to chase the lender to find out the answer for you, keeping on until we know for sure whether or not you have the mortgage.
In-between the point where your mortgage application is submitted and when you are offered a mortgage, the lender will need you to have a valuation survey taken out on the property. These types of service tend to be carried out by accredited companies nominated by the lender (someone that they trust to be fair and honest).
The reason they do this is to accurately figure out how much the property is actually worth overall, compared to the amount that you have agreed to pay for it with the properties seller. If the lender believes you are paying more than the properties true value, they may be less likely to accept your offer.
This is because in the event of arrears and repossession, selling the property would result in them being out of pocket, as they’d be making back less than they had let you borrow in the first place. This is known in the world of mortgages as a ‘Down Valuation’.
There are a lot of different property survey types available, with the prices of these varying on which one you choose.
Some will just look at the properties value, whereas some will also document any structural concerns that you perhaps should look at, as well as any potential repairs that could require your attention down the line. Your trusted Mortgage Advisor in Cardiff will help you to decide on the right one.
Now it’s time to face the moment you have been waiting patiently for. Your mortgage lender has thoroughly gone over your case and performed an in-depth assessment of all the evidence that was documented. You are now ready to be presented with your formal mortgage offer.
Our fast & friendly team of dedicated Mortgage Advisors and Administrators in Cardiff, that you have conversed with frequently and surely gotten to know quite well over your mortgage journey, will review this offer on your behalf to ensure that nothing is wrong and as you want it.
The next step after your formal mortgage offer has been received, will be for your Conveyancing Solicitor to take your purchase all the way to completion.
A big congratulations is in order, you have gone from an unsure and inexperienced First-Time Buyer in Cardiff, all the way to confident and mortgage ready First-Time Homeowner in Cardiff!
From this point forward, we hope that your worries are eased and that any past anxieties and concerns you had have been put to rest. With sincerity, we hope that you are thrilled with your new home and excited to start the next chapter in your life.
The only thing left for you to do is to grab your keys and start moving in your possessions! We genuinely hope you received a top tier Mortgage Advice service in Cardiff and enjoyed speaking to our team throughout your mortgage journey.
If you have opted to go forward with a fixed rate mortgage, at the end of your particular fixed period, we will Get in Touch once again to assist with either your remortgage, or any future property plans you may have!
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.
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.
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:
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.
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.
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.
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.
If you have your heart set on a property and are ready to make an offer to purchase it, you may be left scratching your head, unsure of what exactly you should do next.
It’s not as simple as just approaching a seller and asking to buy the property, there is a lot you need to do ahead of time in order to prepare for this step.
Obtaining an Agreement in Principle is a key part in the process of buying a home. It is a written statement of approval from the mortgage lender that confirms that in principle, they are willing to lend you the desired amount to purchase the property, subject to further checks.
It’s for this reason why you will need to make sure that you have one to hand, as a home seller or estate agent will want to know that you actually have the funds to proceed, avoiding any possible wasted time on both their end and yours.
During the COVID-19 lockdown periods in 2020, you even needed an Agreement in Principle to view a property, let alone buy it. This was to limit the viewings only to people who could proceed there and then if they wanted to make a purchase.
As an experienced mortgage broker in Cardiff, we always recommend preparing ahead of time and putting yourself in a better position than other buyers, by obtaining an Agreement in Principle as early as you can.
In most cases, you will never be able to compete with a cash buyer of a property. Lenders love it when someone can make a payment on the spot, without having to wait for a mortgage to complete.
That being said, by obtaining your AIP, you may be able to increase your odds against cash buyers and even other possible home buyers.
If you have an Agreement in Principle to hand, you are demonstrating to the seller that you are very serious and do have the funds to proceed.
It also puts you in a higher position than other buyers who maybe do have the funds, but haven’t gotten an AIP of their own.
This is one of the benefits of getting in touch with a dedicated mortgage broker in Cardiff. Our dedicated mortgage advisors in Cardiff will be able to obtain one of these within 24 hours of your initial free mortgage appointment.
Buying a property is all a matter of negotiation. If the offer that you put forward to the seller is rejected, you will be asked about potentially increasing your offer.
If you believe that the property is indeed worth the increase and you want it, you may have to be prepared to spend a little more than you had planned.
Don’t be worried though if your first offer is declined, this has happened to lots of First Time Buyers in Cardiff in the past and they are still able to secure a property down the line at some point.
If your second offer is also declined, you possibly have to be prepared to pay the asking price. This is where it pays to make sure that you have done plenty of research ahead of time.
Before you make any offers, you should always have a look at the other properties in the local area and see what they are selling for on sites like Zoopla or Rightmove. This may give you a general idea of what to offer the property seller.
You should also look for how long the property has been on the open market. If it is a new listing, the seller may want the asking price, whereas if it’s a long-time listing, the seller may accept a lower offer just to have it taken off their hands.
If you come across houses that have gone for amounts that are less than they are worth, there is usually a very good reason for it. It may have possibly been repossessed, sold to at a discounted price to a residing tenant or an inter-family sale.
For any mortgage advice relating to this specialist subject, feel free to contact our expert mortgage advisors in Cardiff today.
If you are in need of any help with making an offer as a First Time Buyer in Cardiff or perhaps just want a mortgage advisor in Cardiff to walk you through it and get a great deal, we’ll always be on hand to guide you throughout the process.
Our team of mortgage advisors in Cardiff are available all throughout the week, so book your free mortgage appointment online and get your journey started today.
The Shared Ownership Scheme is a government-initiated mortgage programme in the United Kingdom, designed to facilitate individuals in their pursuit of homeownership.
This scheme is open to permanent UK residents, encompassing both first time buyers in Cardiff and former homeowners who may be facing challenges in acquiring a new residence.
To be eligible, your household income must not exceed £80,000, and the property you intend to purchase is typically a leasehold. In a leasehold arrangement, you acquire the property for a predetermined period.
Participating in a Shared Ownership in Cardiff allows you to buy your home through a combination of a mortgage (usually covering a portion ranging from 25-75% of the property) and rental payments.
The rent, which may encompass service charges and ground rent, is generally set at a more affordable rate compared to market prices and is paid to a housing association.
From April 2021 onwards, the Shared Ownership Scheme underwent significant updates as part of the government’s Affordable Homes Programme. These modifications introduced several notable changes.
Firstly, the minimum requirement for property share purchases, previously set at 25%, has been revised. In certain cases, it can now be as low as 10%.
Additionally, when acquiring additional shares, the previous requirement of 5-10% minimum shares has been replaced, and individuals can now purchase them in 1% increments. Furthermore, the fees associated with buying these additional shares have seen a reduction.
Notably, the responsibility for maintenance and repair costs, which were previously borne by the homeowner, has shifted. Your landlord will now cover these expenses for the initial 10 years of ownership.
If you secured a Shared Ownership Mortgage in Cardiff before this timeframe, these new regulations may potentially apply to your situation moving forward. However, it’s advisable to confirm these specifics with your provider, as the applicability could be determined on a case-by-case basis.
Before delving into the mortgage aspect of the process, your initial step involves confirming your eligibility for Shared Ownership in Cardiff. To accomplish this, your first point of contact should be your local Help to Buy agent in the area where you intend to make your purchase.
During this conversation, you will typically be required to furnish specific details, including your income, available budget, preferred location, and your credit history. Once your eligibility is established, you can proceed with the mortgage application.
Engaging the services of a mortgage broker is highly recommended in this phase, as not all mortgage lenders extend their services to individuals seeking Shared Ownership in Cardiff.
The amount you can borrow will typically be determined by various factors, including your income and additional costs such as rent.
When considering a Shared Ownership Mortgage in Cardiff, it’s essential to weigh the pros and cons. It’s important to note that, as previously mentioned, not all mortgage lenders extend their services to applicants using the Shared Ownership Scheme.
However, there are numerous mortgage lenders, including those within our panel, who do offer these types of mortgages. Additionally, Shared Ownership Mortgages in Cardiff can provide a sense of long-term stability, as you become both an owner and occupier simultaneously.
Deposits can be a stumbling block for many homebuyers, given the challenge of saving a substantial sum. Fortunately, Shared Ownership Mortgages typically require lower deposits compared to open-market purchases. This accessibility aspect makes mortgages more attainable for individuals with modest incomes.
While these advantages are notable, it’s important to keep in mind that you are responsible for 100% of the ground rent and service charges on your property, regardless of the share you have purchased. A feature called “staircasing” typically allows you to gradually acquire more shares over time, ultimately reaching 100%.
Upon achieving full ownership, you will no longer be obligated to pay rent, but your mortgage, ground rent, and service charges will persist. However, when your owned share surpasses 80%, you may be subject to Stamp Duty on the entire property value. It’s worth noting that this land tax might not apply in the case of a first-time purchase.
Despite potential Stamp Duty costs, monthly mortgage payments are often more affordable than traditional mortgages, and in some cases, even cheaper than private rent.
Additionally, Shared Ownership offers tenure security, ensuring you can remain in your home for the duration of your lease, which typically spans between 99 and 125 years.
As your home is jointly owned, you will need permission from the housing provider before making any structural alterations. This requirement may affect the sense of autonomy you would have if you owned the property outright.
Should you decide that homeownership is no longer the right fit for you and you wish to sell your property in order to relocate, the process differs somewhat with a Shared Ownership Mortgage in Cardiff.
While selling a property with most other mortgage types is typically straightforward, provided your fixed period has concluded, Shared Ownership entails a unique approach.
The feasibility of selling your property with a Shared Ownership Mortgage in Cardiff hinges on the proportion of the property you own in shares. Generally, you will need to possess 100% ownership of the property before considering a sale.
It is important to understand that the housing association typically holds ‘first refusal’ rights for the initial 21 years following your property purchase. This legal provision grants them the prerogative to make an offer to acquire the property themselves before you proceed to place it on the open market.
If you do not hold 100% ownership of the property, the initial step would be to explore the acquisition of the remaining shares of the property, subsequently allowing you to contemplate its sale.
Shared Ownership in Cardiff offers a promising opportunity for first-time buyers with aspirations of stepping onto the property ladder, particularly when their deposit may be on the smaller side. This mortgage scheme can serve as a valuable tool in realising your homeownership goals.
However, it’s important to acknowledge that embarking on a Shared Ownership Mortgage journey can be intricate, involving various fees and contractual nuances. To ensure you’re adequately prepared and well-versed in the contractual particulars, it’s essential to be thorough and well-informed.
Ultimately, the decision revolves around personal preference and your specific circumstances. By scheduling a complimentary mortgage appointment with a reputable mortgage broker in Cardiff, you can engage with a trusted mortgage advisor and adequately prepare if you’re contemplating this route.
For an in-depth understanding of the Shared Ownership Mortgage Scheme, you can explore further information on the government’s OwnYourHome website.
Critical illness cover is an insurance policy that supports you financially if you are diagnosed with a severe illness.
When taking out the policy, it’s important that you mention any underlying medical conditions you have. The conditions you have disclosed may not be covered by the policy. Furthermore, if you have failed to mention the underlying medical condition, this could potentially mean your policy would be voided in the event of a claim.
The financial support will be from a lump sum of money that is a one-off payment to help pay your mortgage, medical, or if needed, modifications to your home.
The insurance will cover you in the event that you are diagnosed with a particular medical condition or injury that is stated within the policy.
It’s important that you read the policy thoroughly to understand which specific conditions are covered. This is due to the fact that the policy will not cover all instances of a certain illness.
It’s common for customers to confuse critical illness cover with life insurance. They are two insurances that can be purchased together, however, what they cover is very different.
The following that might not be covered within the policy could include more severe forms of cancer and other conditions. Health problems you knew you had before you took out the insurance will probably not be covered. Furthermore, this type of insurance doesn’t payout if you pass away.
What will and won’t be covered will be stated in the policy details therefore make sure you understand the policy and check all the documentation protects your needs.
Other types of insurance can provide support should something unfortunate happen to you. Below, are a list of some you might want to look into:
At Cardiffmoneyman, we offer all our customers a free, no-obligation protection review where we will look into any existing policies you have in place and check if they are appropriate for you. It’s important to know that insurance is massively beneficial.
Affordability is key when looking into insurance. That’s why a protection specialist in Cardiff, like ourselves, can provide you with the best cover that is suitable to your circumstances and priorities your budget and family.
For first time buyers in Cardiff statistics show that in recent years property prices have increased at a faster rate than wages. We have found that many people look to purchase in joint names with a partner or friend in order to be able to afford a suitable home at a more reasonable price.
Purchasing in joint names usually will increase your maximum borrowing capacity, as the lender will look at all party’s income and take this into account when running the affordability calculations.
Surprisingly, we work with some lenders who will accept up to 4 people co-owning a property.
If for any reason, one of the co-owners of the property decides to no longer contribute to the mortgage repayments, any joint owners will still have the legal right to reside in the property unless this is ruled otherwise by a court.
If you would like to increase the mortgage at a later date, you must gain consent from all co-owners involved. It’s therefore essential that you make long term plans about what will happen in the future should you end up wanting different things.
We find the most popular tenancy for married couples or those in civil partnerships is ‘joint tenancy’. With this type of tenure, if either party were to pass away, the property would be handed over to the co-owner. If you have taken out relevant life insurance, at this point, your mortgage would be repaid.
With ‘joint tenancy’, when looking to remortgage or sell the property in the future. It would be required that all names on the tenancy agree to this.
When purchasing with relatives or friends, we find that ‘tenants in common’ is the most popular tenure. You will still jointly co-own the property but are have the flexibility to do so not with equal shares. This works well if one party is making a more significant financial contribution than the other.
With ‘tenants in common’, another positive aspect, is that you can act independently. For example, you can choose to sell or give away your share of the property to someone else without the need to consult other parties.
All mortgage borrowers are jointly and severally liable for mortgage payments. If you find yourself paying all future payments without a co-owner, you will still be liable. You are preventing the mortgage from falling into any debt.
As mortgage arrears showing on your credit file could have the potential to stop you from obtaining a mortgage in the future.
It is best to think of it like this: You don’t own 50% of a property, you own 100% jointly.
Lenders will need to be confident that you can keep up with monthly payments on your own before they can approve of this happening.
When purchasing a home with a partner, it’s a whole new chapter starting in your life and can be a great way to start fresh with another individual. In all the excitement of moving home, it can make you wonder about the justifications if things go sideways.
As seen from above, a mortgage is a big financial commitment and making changes is going to be a challenge.
With physical proof that you can maintain mortgage payments since your old partner moved, the lender may agree to your request to put the mortgage into your single name. However, lenders like the idea that there are two people to pursue in the event of arrears occurring.
To remove someone, you will need to take out a remortgage in Cardiff, where they will carry out a brand-new affordability assessment, precisely in the same way as they would at the point of purchase.
Whilst a lender may not accept a request, it’s always beneficial to speak with a mortgage advisor in Cardiff beforehand, as there may be other lenders who could agree to your transfer request.
It can also be worth talking to family members to see if they can help you out to make life a little bit easier. They can do so by replacing your ex on your mortgage or by gifting you a lump sum to reduce the amount owed, meaning your savings can contribute to easing your future mortgage payments.
If you and your partner split up and you leave the family home, then your responsibility is still shared for mortgage payments even if an agreement was settled with your ex that they will make all the payments.
If you are sending your partner money each month, you should keep an eye on your credit report to ensure they are paying the mortgage. If they default, then it will impact your own score.
Is your name still linked with an existing mortgage? Then the payments for that will be considered if you buy a new home of your own. That will mean lenders might not lend you as much as you would like.
Buying a home with someone is different from renting with them. It’s always better to agree on what would happen to the house should things not plan out as expected.
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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
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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
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