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A Guide to Remortgages in Cardiff: Top Reasons to Consider

A Guide to Remortgaging | MoneymanTV

The mortgage journey is a rewarding process. Owning your own home can give you many achievements further in life, like a sense of financial security and getting into a better position to start having children/starting a family. For some, First Time Buyers in Cardiff felt that owning their own home was one of their top financial goals.

Suppose your reason for wanting to own a home was that it provided a sense of security. Others felt that taking out a mortgage was cheaper than renting. Despite and any hurdles you might have come across along the way, you will end up with a stepping stone to further boost you up the property ladder or in a position to make an investment purchase to provide some extra income.

What is a Remortgage, and how does it work?

Remortgaging is where you take out a new lender’s product on a property you already own to either replace your existing mortgage or borrow additional money against your property. Suppose you decide to stay with your current lender and negotiate a new deal with them. Then this is called a product transfer.

Whether you are looking to remortgage or take out a product transfer, you will notice that many products out there each have their own set of different deals and rates available. Further down, we listed the most popular remortgage products accessible to most homeowners, along with why remortgaging may be beneficial to you.

When is a good time to remortgage? Whether it is to secure a better deal, for home improvements, consolidate debts, to release equity or because your circumstances have changed.

Remortge Advice in Cardiff Reasons to Consider

Remortgage for a Better Rate

A fixed mortgage term lasts between 2 and 5 years for the vast majority. During that period, you will be paying off some interest and capital. 2-5 years later, when it comes to your remortgage, you may be in a position to be in a lower loan-to-value bracket, allowing you to access better rates.

If you decide further down the line not to remortgage, you risk yourself going onto a lender’s standard variable rate of interest (SVR). Which could be much higher than what you are currently on. However, if you remortgage before this happens and you fit into a better loan-to-value bracket. You could be moved onto a much better rate, resulting in saving you money each month.

If you have been placed on a tracker mortgage, you will find that your monthly payments and interest rate corresponds with the Bank of England’s base rate, which can fluctuate depending on the economy’s performance. For example, if the economy has dipped, base rates may lower, and vice versa. Lenders may also add an extra percentage onto this base rate so that you are usually tracking a rate between 2-4%.

Remortgage for Home Improvements

Once you are on the property ladder and settled into your new home, you may feel that the place needs some home improvements – whether that’s a new extension, conversion, or redecorating. If you choose to remortgage, there’s a possibility that you can get this work done for a reasonable price.

You will need to have the estimated costs of the improvements to get an idea of how much it will cost you. Then you can incorporate these costs into your mortgage upon taking out a new product. You will find that your monthly payments will increase depending on what you hope to achieve.

If you are looking to start having children/starting a family, want to add value to your home or add some home improvements, we would recommend remortgaging instead of going through the process of having to sell and buy a property simultaneously. In some circumstances, it’s easier to improve your current home.

Remortgage for Changes to Your Term

If you are looking to extend or shorten their whole term to try and switch to a more flexible product shorten your term will lead to paying off your mortgage quicker. But, it can also mean higher repayments. Whereas extending your term can reduce your payments but you will be paying off your mortgage a lot longer.

During the process, you can decide whether to extend your term or not. Choosing to shorten your term will lead to the option of overpaying, which can help pay off your mortgage faster.

Although a flexible mortgage sounds like a good idea, they usually coincide in the form of a tracker mortgage. A tracker mortgage matches the Bank of England’s base interest rate, which changes depending on how the economy performs.

Equity release

Equity is the difference between what is still owed on the mortgage and the property’s current value. The longer you’ve owned property, the more equity you’re likely to have in it. At some point, you’ll be able to remortgage and release some of this equity to turn it into a lump sum of cash.

You can spend this cash however you want to. Some choose to use the equity to put down another deposit on another home to help a family member.

As a Mortgage Broker in Cardiff, we often see that Buy to Let landlords release equity to put down a deposit onto another property to expand their portfolio.

Equity release can also come in the form of a lifetime mortgage. A lifetime mortgage is aimed at older homeowners looking to take a large lump sum out of their home(s).

Debt consolidation

If you’ve built up some unsecured debt and want to incorporate it into your mortgage, this can be made possible in some cases. However, you will need to get in touch and speak to Mortgage Advisor in Cardiff, as debt consolidation is a ‘complex’ subject.

Debt consolidation is based on how much you owe, your property value, and your credit rating. You need to consider that you’re trying to incorporate large sums into your mortgage. Therefore, your total mortgage amount will increase.

If you have bad credit and need help from a mortgage expert, don’t hesitate to contact us. We have debt consolidation experts at Cardiffmoneyman that will be happy to help you with your needs.

Expert Remortgage Advisors in Cardiff

It may be time to start your remortgage journey if you are coming towards the end of your fixed mortgage term. If you aren’t quite ready for that stage yet, we can take that stress away and do it for you!

We would advise that within 6 months of your deal ending, it may be time to start looking around for deals.

Book your own free remortgage appointment online today. We have advisors who are experts in giving Remortgage Advice in Cardiff. It’s our job to help you through your process and try and find you the most suitable deal that matches your personal and financial situation.

Armed Forces Help to Buy Scheme in Cardiff

Forces Help to Buy Mortgage Advice in Cardiff

If you are a member of any form of military personnel, there is some great news for you, courtesy of Army Families Federation Defence Secretary Ben Wallace.

The current Help to Buy Scheme that was created with the purpose of helping out military personnel to find their place on the property ladder, has been extended to a later date.

The scheme originally came into the world way back in 2014, with the £200 million scheme being put out with the aim to provide a boost to anyone who is a member of the forces and is in need of help buying their own property.

Though created for great reasons, the project was not created to be around for a long though, originally slated to end in December 2019.

As opposed to just bringing it to an end though, to give out a thank you to the forces’ commitment to their Queen and country, the UK government made the decision to extend this scheme further, right up until the end of 2022.

Who Can Apply For Forces Help to Buy Scheme?

If you have served in the military at some point in the past and you are able to meet the right criteria, you will be able to utilise this government scheme, which will allow you to borrow a deposit that is up to half your annual salary (with a maximum of £25,000), without additional interest on top.

You will be able to use this scheme as a way of buying your first home or to cover the costs of a new property to move into. You could argue that the most appealing aspect of this, is that you are not required to have any current savings in order to make the leap onto the property ladder.

The funds that you will be able to use is raised from the Forces Help to Buy loan and you are able to use it for pretty much anything, from your deposit on a property, to any other costs that come up.

These costs may potentially include, but are not limited to, the costs of stamp duty, estate agent fees or even the costs of locating a suitable solicitor.

This government scheme is considered to be a little more relaxed than the other schemes available to home buyers, as the Forces Help to Buy loan can be taken out and paid back over a 10 year term. This allows you to breathe and not feel like your impending payments are breathing down your neck every month.

Bearing this in mind, the Forces Help to Buy loan can be an incredible lifeline to those who never even thought the prospect of owning a home would ever be a reality.

Once again, remember that you will still have to qualify for eligibility, the terms of which are based on if you have served your country and are able to meet the necessary criteria (length served, service term left and medical categories).

Click here to read further details on this helpful scheme from the government.

How a mortgage advisor in Cardiff may be able to help

By enlisting the help of a dedicated team of mortgage advisors in Cardiff, your journey to mortgage success may go quicker and smoother than it otherwise could have done.

Your assigned advisor will guide you throughout every part of the process, ensuring you are taken care of and well informed.

From the beginning of your journey, until your mortgage completes and beyond, your trusted mortgage advisor in Cardiff will be by your side, hopefully allowing you to end up with a favourable outcome.

We’re proud of the reliable and efficient customer service we provide, always working hard to reduce customer stress and most importantly, show love and respect to our nations forces.

Book your free mortgage appointment online today and we will see how we can help.

Note; the Forces Help to Buy is not the same as the standard government Help to Buy Scheme.

How to Make an Offer on a Property in Cardiff

Getting Prepared to Make an Offer

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.

Tips For Making an Offer on a Property

Get a Mortgage Agreement in Principle

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.

Be Prepared to Negotiate with The Seller

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.

Speak to a Mortgage Advisor in Cardiff today

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.

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

Shared Ownership Mortgage Advice in Cardiff

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,

Is Critical Illness Insurance Essential?

Critical Illness – Are you Covered? | MoneymanTV

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.

What does critical illness cover? 

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.

Examples of critical illnesses that might get covered include: 

  • Stroke 
  • Heart Attack 
  • Certain types and stages of cancer 

    Permanent disabilities resulting from injuries and other illnesses that are not stated might still be considered in the policy.

What isn’t covered? 

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 you might need 

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:

Our Critical Illness Insurance Advice service in Cardiff

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.

Buying a Property in Joint Names in Cardiff

Mortgage Advice in Cardiff 

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. 

How Many People Can Co-Own a Property? 

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.  

Joint Tenancy or Tenancy in Common? 

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. 

Do I have to pay the mortgage if we separate? 

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. 

How do I remove my ex-partner from a Joint Mortgage? 

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, 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. 

Can I remove my name from a Joint Mortgage? 

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. 

Why Mortgage Protection Insurance is Helpful to Have in Cardiff

Mortgage protection insurance is a term used to encompass various types of cover designed to protect borrowers like first time buyers in Cardiff from events that could severely impact their ability to maintain mortgage payments. 

There are different variations, but when connected to a mortgage, they are all there to provide peace of mind and usually fall into the following categories: 

  • Life Cover 
  • Critical Illness Insurance 
  • Income Protection 
  • Family Income Benefit 

Life Cover 

As a rule, if the policyholder dies within the term, then the sum assured should be enough to pay off the outstanding mortgage balance and ensure the borrower’s dependents aren’t left with a debt they might not otherwise be able to manage.

How we can help you

Our protection specialists in Cardiff can run through all the different types of life cover and recommend the most suitable plan for you. 

Critical Illness Insurance 

Critical Illness Insurance works similarly to life insurance in that it is usually taken for a specific term of years and can have different options such as level/increasing. 

It pays out a lump sum, and, like life cover, it is taken on a decreasing term basis in line with the reduction of your mortgage balance for borrowers.  

The key is that the benefit is paid if you fall victim to one of several specified critical illnesses and pays out whatever the long-term prognosis of that illness. The type of illnesses covered vary from company to company. 

That’s why this type of insurance cannot be solely price-driven and always recommended advice. 

In practice, many companies will offer life and critical illness cover as a combined policy and would usually payout on the “first event”, i.e. whatever happens first – either death or a severe illness – the payout is made. They can also be written on a single or joint life basis. 

Income Protection 

Whereas life and Critical Illness cover pay out a lump sum, income protection pays out a monthly sum designed to replace your wages if you are unfit to work. 

Unlike critical Illness cover, there are no restrictions on the illnesses or injuries covered, the only factor being whether they make you unfit to work. 

However, there are restrictions on how much you can cover and how quickly benefits would start to be paid. 

Like life and critical Illness cover, these policies are underwritten based on your health and lifestyle when you apply. All income protection policies are written on a single life basis. 

Family Income Benefit 

Unlike the traditional forms of policy, the cover would pay an annual or monthly income for the remainder of the plan’s term rather than pay out a lump sum. 

Thus, it can replace the primary breadwinner’s income for several years, dependent upon a particular client’s circumstances and, because of this, would usually be written on a level or basis or an index-linked basis designed to keep up with inflation. 

Summary

There’s an adage that says you can never have too much insurance. Indeed, many people have one or more of the different types of policy, and it would be wrong to think of Mortgage Protection Insurance as just an “either/or” choice. 

However, affordability plays a massive part in the real world, so whilst it would be fantastic to cover yourself for every potential opportunity, a good advisor will sit down with you and tailor the type of cover to be the most suitable combination to your family’s priority and budget. 

What do Lenders Look for When Assessing my Bank Statements?

What Do Lenders Look For On My Bank Statements? | MoneymanTV

Why does the lender need my bank statements and how do I obtain them? 

From a lender’s point of view, a bank statement provides an insight into your spending habits and determines if you’re trustworthy with paying on time. The presentation of your bank statements is essential because this evidence can be the difference in how much your lender will let you borrow or will lend you anything at all. 

Knowing how much a lender will let you borrow is all down to risk, however, a lender needs to know that you can handle your finances and be responsible. Remember, a mortgage is likely to be the biggest financial commitment you will ever make and is not something to be taken likely.

There are different ways you can obtain your bank statement, such as receiving your bank statement through the post from your bank or going into your local branch and getting it over the counter. It’s common to see these days that people will retrieve a printable version from their bank’s online platform.

What will lenders be looking for on my bank statement? 

Presenting your bank statement in a positive light is important, so the main question is, what are lenders looking for on your bank statement?

Again, the lenders want to know if you’re responsible when it comes to your finances. Therefore, overdrafts will be something they will look into. An overdraft is there for you to use and on occasions using it is not necessarily a bad thing, however, if exceeding your limit becomes a daily occurrence, this is going to affect the lender’s trust in you.

Another factor to be careful with is potential returned Direct Debits because this could show you are not consistently reliable. Furthermore, failure to disclose loans at the application stage will not make you look good to the lender because, as mentioned, this is a process of trust.

Another element that you need to be aware of is missed payments for personal loans and things such as credit cards. It’s more likely that a lender will aim to lend an amount closer to what you would like to borrow if you can meet your monthly payment deadlines. 

Will gambling affect my chances of getting a mortgage? 

This is a commonly asked question we hear from customers when they are looking at their bank statements. A history of gambling can be an issue many get themselves into. While the odd bet is harmless, frequent betting with large amounts of money can be an issue. Whether you’re making it back or not, a lender will see this as a disadvantage


To learn more, please see our article on “Do Gambling Transactions Look Bad on My Bank Statements? 

What can I do to show the lender I am reliable? 

When working with many first time buyers in Cardiff & home movers in Cardiff, we have found that the majority of mortgage lenders will require the applicants to obtain at least three months’ bank statements from an applicant. This can differ for the self-employed

With this in mind, you theoretically have three months to work on your finances. Start to think more about the future and begin working on your finances at this time. We recommend that you take a break for a while if you are a regular customer of the local bookmakers or online gambling scene. This can be a benefit to your financial state as well as your mental health.

Another step we would suggest is to try to save money. Reducing the number of times you eat out, cancelling unneeded subscriptions, and reducing your purchases on unnecessary items can all help. By doing this, you can free up additional cash to pay your bills on time. 

This is all down to you being sensible and planning ahead of time to what you’re looking to do. Reducing the risk of bouts of debts and financial uncertainty will put you in a good situation with a lender.

Speak to a Dedicated Mortgage Advisor in Cardiff

If you’re a first time buyer, moving home, or self-employed, it’s always important to keep your finances on track. Getting in touch for specialist mortgage advice in Cardiff can help you if you’re feeling unsure when it comes to bad credit history. We are here to further your mortgage journey by advising the best we can.

Do Gambling Transactions Look Bad on My Bank Statements?

When it comes to your bank statement, lenders will be looking at various factors to see if you can keep up the mortgage payments. Over the years, we have seen an increase in inquiries regarding if gambling transactions look bad on their bank statements. 

What Do Lenders Look For On My Bank Statements? | MoneymanTV

Mortgage Questions to Consider

What has it got to do with the lender whether I gamble or not?

There is nothing illegal about licensed gambling so an occasional bet on the world cup or regularly using internet betting sites isn’t a problem. However, like a lot of gambling adverts, they do urge customers to gamble responsibly and these principles are the same when applying for a mortgage.

The role of the lender is not to tell you how to live your life or spend your money or even lecture you about the ethical rights and wrongs of gambling, however, they do have a duty (underscored by mortgage regulation) to be responsible when accepting customers for a mortgage.

Lenders may need to prove to the regulators that they are making well-thought decisions. Therefore, it isn’t unreasonable for the lender to have expectations of the people they lend to when it comes to their finances.

Think about it. If you were lending your own money to a ‘friend’, would you lend it to someone who frequently gambles or the one who doesn’t?

Is it still possible to get a mortgage if I’ve got gambling transactions on my recent bank statements?

Having the odd gambling transactions on your recent bank statement doesn’t automatically mean your mortgage application would get declined. As mentioned before, it is not illegal to gamble.

However, the lender will look into these transactions to see if they are reasonable and responsible. The factors that they will look at are the frequency of the transactions and the size of the transactions. Furthermore, they will take a deeper look into the individual’s account and the impact upon the account balance.

When it comes to these transactions, infrequent small amounts that make no impact on your regular credit bank balance are not likely to be regarded. If you’re in a situation where you bet most weeks or you have constantly overdrawn money, the lender is expected to see you as irresponsible and may decline your application

What else do lenders want to see on my bank statements?

Providing bank statements to your lender is required as it’s a way to show how you manage your money and helps the lender when deciding if you are financially reasonable or not through your bank statements.

Lenders are financial institutions that, either directly or as part of a wider group, often sell current accounts, overdraft facilities, credit cards, and personal loans. Because of this, they have an understanding that these things can all play a role in financial planning. 

You may find yourself using your overdraft, however, if maxing out your overdraft becomes a regular occurrence, this is not ideal. Lenders will look for things that could show your account is not handled well such as overdraft fees or returned direct debit.

Credit transactions from payday loan companies are another thing lenders will want to see (i.e. , if you put on your application that you have no other loans but regular loan payments appear then this could be a problem.)

As well as looking for any missed payments, they might also consider how much of a typical month gets spent overdrawn – i.e., measuring the sustainability of the mortgage by looking at situations such as if you only go into credit on payday and the rest of the monthly earnings get stretched.

What can I do to improve things?

The best way to improve things is to be sensible, and if possible, plan ahead. A bank would ask for up to three months of your most recent bank statements. This evidence will show your salary credits and all your regular bill payments.

If you know you’re likely to apply for a mortgage in the near future, it can be good to try to make sure that you avoid any of the above issues. Work on presenting your bank account in the best light and take a break from gambling.

You can find help from your mortgage broker in Cardiff as some lenders may ask for fewer bank statements than others or some may not even ask for them at all.

Being careful in the run-up to any mortgage application is best as lenders reserve the right to request bank statements in certain circumstances. Remember, if you do gamble, please gamble responsibly!

Get in Touch With a Mortgage Broker in Cardiff

A mortgage advisor in Cardiff can provide specialist advice if you are a first time buyer in Cardiff. They will be there to help you through your mortgage application and guide you through the whole mortgage process as well as getting you on track so that a potential lender may be impressed with your credit history.

Divorce & Separation FAQ’s

We understand that going through a divorce or separation with your partner when you have a joint mortgage together can be difficult. This guide provides you with a list of frequently asked questions that you may want to know when it comes to divorce and separation.

Do I need to keep paying my half of the mortgage?  

In any case, you still need to keep paying your half of the mortgage even if you are living elsewhere in the meantime.

Regardless if only one of you is living there at the moment, you are both held equally liable for the debt as you and your ex-partner both agreed to take out a joint mortgage. Therefore, you need to keep paying half of your mortgage until it gets paid off.
  
If you fail to pay your mortgage on time, it can harm both you and your ex-partner’s credit history. Failed mortgage payment could lead to repossession of the house if you do not keep up with repayments on your mortgage or any other debt secured on it.

When should I inform my lender?  

It’s best to inform your lender sooner rather than later. We recommend you mention this to your lender when you know you are separating. 

What are my options? 

1. Sell the property

If you have both agreed it is best to move out, sell up and pay off the mortgage, any equity left after the mortgage has been paid off will be split between you and your partner. In terms of who gets what in the leftover funds is a matter between yourselves.
 
Our trusted mortgage advisors in Cardiff are here if you decide to move out and look to purchase a new property. They can recommend you with the best deal, offering honest mortgage advice.

2. Continue to make those payments 

In some cases, where the divorce is on good terms, you can decide to stay and pay the existing mortgage. This option can be beneficial if your mortgage is fixed for a couple of years.

3. Stay in the property 

In the situation in which you or your ex-partner will live in the property, then the remortgaging of the property would be under the current resident in their sole name.

You will need to remortgage if you decide to become the sole owner of the property because there is an existing mortgage in joint names. From this, you will then need to take out a new mortgage in your sole name, meaning your affordability will be reassessed.

Can I get a second mortgage? 

Depending on your circumstance, yes you can get a second mortgage. When applying for a second mortgage, each lender will have different credit scoring systems they use and consider a range of factors. One main factor to look at when applying for a second mortgage is your current financial commitments. From this, you can determine if you can afford the second mortgage as there could be a risk of your application getting declined which could negatively affect your credit file.
  
The good news is that, here at Cardiffmoneyman, we can perform a search for you that won’t damage your credit file. The maximum amount you will borrow will be confirmed when we have the necessary information gathered.

From this, you can have a good idea of your budget and how much your monthly mortgage will be on top of your current financial commitments.

Moving away from your current financial commitments can be a challenge, however, this is why having an expert Mortgage Advisor in Cardiff by your side could be beneficial.

An experience like moving home can be stressful, especially when a complex situation like divorce or separation is added to the mix. Our caring and knowledgeable Mortgage Advisors in Cardiff will do their best to help you with this process.

What if I am in negative equity? 

Negative equity can happen when the value of your property falls. In the situation where your joint home is in negative equity and you are divorced, it can become a challenge to sell the house and pay off the mortgage in full.

The outstanding debt might have to be split between the two of you or follow and agree with your mortgage provider’s advice. 

Cardiffmoneyman.com & Cardiffmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited registered in England, registered number 6789312 and registered office 10 Consort Court, Hull, HU9 1PU.

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