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.
As a homeowner with a mortgage to your name, you may find that will find that a significant amount of high street mortgages that are on the market are portable.
To explain how portable mortgages in Cardiff work, a portable mortgage is where you move home, from one property to another, taking your mortgage with you and avoiding the need to pay a penalty charge for doing so.
If you are looking to move into a new home and are currently going through your fixed-rate mortgage deal, a portable mortgage could come in handy as you will have the potential to avoid having an Early Repayment Charge (ERC) for moving.
No, not every mortgage deal that is available on the market is portable. This is less likely when you are on a mortgage with a specialist mortgage lender, as their mortgage was probably quite complex to qualify for in the first place and they won’t want you to port it.
To determine whether or not porting your mortgage will be available to you, we would recommend that you get in touch with your mortgage lender and ask them this.
Some homeowners may decide that option is not for them and choose not to do so, even if their mortgage is flexible enough for this to be an option that is available to them.
The reason that these customers may not wish to proceed with porting their mortgage, can be down to a variety of factors. This can include situations where perhaps a mortgage lender isn’t willing to lend the extra funds, or differing interest rates in those additional funds.
It may be worth your while accepting the Early Repayment Charge (ERC) and move to a different mortgage lender altogether, if it works out cheaper to go to that new deal.
This is a type of account that will be attached to your mortgage when you look to port it and the additional funds will move onto a deal that is different to your original mortgage.
Because of this, each of these will be on two different rates of interest that are applied on both the mortgage and the direct debit.
In the future, the fact that the products can overlap may become problematic, and this might need looking at down the line, in order to get them realigned. This may mean one of the sub-accounts falling onto a lenders variable rate briefly.
If you are looking for moving home mortgage advice in Cardiff or you are looking for a buy to let mortgage in Cardiff, get in touch and speak to a mortgage expert today.
We are experienced in helping thousands of mortgage applicants in situations like this, and will do what we can to assist with all of your mortgage needs.
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.
When it is time to prepare your mortgage application, you must consider your credit file and how it will look to a lender. Remember that a lender is looking for reliability; someone who will be able to meet their repayments.
It’s not just reliability that lenders are looking for though, they will also be looking at your credit file, and even more specifically, what is linked to it. This includes credit accounts, store cards and even your Amazon account! What all of these have in common is they hold your personal details, such as your address. And, believe it or not, lenders pay very close attention to this address…
Lenders want all of your addresses to match across all of your credit accounts, store cards, billing information, etc. They will look at this once you have submitted your mortgage application.
A wrong address linked with a credit card will be more serious than your billing information on your amazon account, as it could be a sign of identity theft.
They also want to know that you are reliable and you are who you say that you are. If you have your name registered to different addresses, then how do they know you live where you say that you live? It will appear to them that you are living in two places at once.
As a first time buyer in Cardiff, if you are still living with your parents/carers, lenders will expect all of your addresses to link back to their home address.
If you are a tenant, you are expected to have updated your address to your current rented property. You should have done this upon moving into the new property.
As a mortgage broker in Cardiff, we often find that the majority of people that slip up on this are home movers.
We find that it is those moving home that are most affected by an old address on their application. This is because the applicant is likely to have their addresses registered to the property before their current one. This could be their parents’/carers’ address, and they have forgotten to update their details since moving into their first home.
For example, if a bank card is still registered to your parent’s address, your parent’s address will not match the current address on your bank statements. Lenders will pick up on this.
Yes, having fewer addresses on record is better overall, however, do not make this a reason to not change your details to your current address before moving.
If you are moving home in Cardiff, remember to double-check that you updated your details before submitting your mortgage application.
As a Mortgage Broker in Cardiff, our job is to guide you through the mortgage process, even helping you prepare your application. We will check over your credit file and make sure that everything is aligned.
We will alert you of any bits that need changing out that will boost your chances of being accepted by your lender. Remember that it’s not just your credit file that lenders will look at. For example, lenders will analyse your bank statements, payslips and your most recent P60. They will also need photographic identification to support that you are who you say that you are.
You can book a free mortgage appointment online via our ‘get started’ form. There are plenty of appointments available, 7 days a week. We have appointments early in the morning and late in the evening.
Get in touch as our team can’t wait to help you!
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. 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. Alternately, 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’.
There are 10 steps in the process of buying a home and obtaining a mortgage;
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.
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.
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.
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%.
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.
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 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 landlords with a Buy to Let in Cardiff release equity to put down a deposit onto another property to expand their portfolio.
If you are over the age of 55 and have a property valued around at least £70,000, it may be worth looking at your options for Equity Release in Cardiff. Speak to an expert later life mortgage advisor to learn more about this.
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.
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.
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.
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.
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.