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.
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 have your heart set on a property and are ready to make an offer to purchase it, you may be left scratching your head, unsure of what exactly you should do next.
It’s not as simple as just approaching a seller and asking to buy the property, there is a lot you need to do ahead of time in order to prepare for this step.
Obtaining an Agreement in Principle is a key part in the process of buying a home. It is a written statement of approval from the mortgage lender that confirms that in principle, they are willing to lend you the desired amount to purchase the property, subject to further checks.
It’s for this reason why you will need to make sure that you have one to hand, as a home seller or estate agent will want to know that you actually have the funds to proceed, avoiding any possible wasted time on both their end and yours.
During the COVID-19 lockdown periods in 2020, you even needed an Agreement in Principle to view a property, let alone buy it. This was to limit the viewings only to people who could proceed there and then if they wanted to make a purchase.
As an experienced mortgage broker in Cardiff, we always recommend preparing ahead of time and putting yourself in a better position than other buyers, by obtaining an Agreement in Principle as early as you can.
In most cases, you will never be able to compete with a cash buyer of a property. Lenders love it when someone can make a payment on the spot, without having to wait for a mortgage to complete.
That being said, by obtaining your AIP, you may be able to increase your odds against cash buyers and even other possible home buyers.
If you have an Agreement in Principle to hand, you are demonstrating to the seller that you are very serious and do have the funds to proceed.
It also puts you in a higher position than other buyers who maybe do have the funds, but haven’t gotten an AIP of their own.
This is one of the benefits of getting in touch with a dedicated mortgage broker in Cardiff. Our dedicated mortgage advisors in Cardiff will be able to obtain one of these within 24 hours of your initial free mortgage appointment.
Buying a property is all a matter of negotiation. If the offer that you put forward to the seller is rejected, you will be asked about potentially increasing your offer.
If you believe that the property is indeed worth the increase and you want it, you may have to be prepared to spend a little more than you had planned.
Don’t be worried though if your first offer is declined, this has happened to lots of First Time Buyers in Cardiff in the past and they are still able to secure a property down the line at some point.
If your second offer is also declined, you possibly have to be prepared to pay the asking price. This is where it pays to make sure that you have done plenty of research ahead of time.
Before you make any offers, you should always have a look at the other properties in the local area and see what they are selling for on sites like Zoopla or Rightmove. This may give you a general idea of what to offer the property seller.
You should also look for how long the property has been on the open market. If it is a new listing, the seller may want the asking price, whereas if it’s a long-time listing, the seller may accept a lower offer just to have it taken off their hands.
If you come across houses that have gone for amounts that are less than they are worth, there is usually a very good reason for it. It may have possibly been repossessed, sold to at a discounted price to a residing tenant or an inter-family sale.
For any mortgage advice relating to this specialist subject, feel free to contact our expert mortgage advisors in Cardiff today.
If you are in need of any help with making an offer as a First Time Buyer in Cardiff or perhaps just want a mortgage advisor in Cardiff to walk you through it and get a great deal, we’ll always be on hand to guide you throughout the process.
Our team of mortgage advisors in Cardiff are available all throughout the week, so book your free mortgage appointment online and get your journey started today.
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.
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.
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.
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:
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.
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,
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.
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.
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.
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.
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.
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.
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.
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.
Whilst moving home may seem straightforward, you also have to remember that you have to sell your home at the same time. Moving and selling at the same time can be stressful, and sometimes it can feel like all you want to do is quickly sell your home.
So how can you do it? How can you quickly get your house on and off the market and sell it for the price that you want to? Here are some tips that could maybe help you sell your home quickly:
There’s always a magic number when it comes to choosing what price you should put your property on the market; it can sometimes be hard to find, but once you do, you’ll know right away. Getting the perfect balance between what you want for it and what a buyer is willing to pay is what you need to try and get to.
To get this number, it’s likely that you’ll need to get your property surveyed. Your estate agent will suggest the highest potential sale price, however, just because it’s a suggestion, doesn’t mean that it’s the right thing to do.
As a mortgage broker in Cardiff, we would recommend using sites like Zoopla and Rightmove. These sites can be used to compare houses that are similar to yours. For example, you could compare their prices to what your estate agent suggested you could list yours at. Once you have a feel of what other people are doing, it may be time to set a price. You’ll know right away whether you’ve set the right price or not, as you’ll start receiving property viewings right away.
If your property receives no initial interest, then it may be time to reevaluate your asking price. Even though you’ve done your research and you want a certain amount, if no one is interested in your property and you want a quick sale, you’ll have to lower your starting price.
Thinking of how your home looks in another person’s shoes can be difficult, but we definitely suggest that you try it.
Think about how your house looks from the outside and the inside. What is the first thing that they will see when they walk up to your house? What’s the first thing they’ll see when they walk into your house? It’s likely that the way that you view your house will be the same way that everyone else does.
Linking to the last point, before you invite people into your home, the first thing that they’ll see is the front garden and the exterior of the property. With this in mind, it may be a good idea to make your front garden presentable and tidy to welcome house viewers into the property. This could be from replanting flowers to jet washing the drive and cleaning your windows – every little helps.
Cleaning the inside of the property is a must when it comes to selling your home. You want to show people that you look after the house and have kept everything in shape in your time living there. Make sure that clean all throughout the property, in particular, the kitchen and the bathroom.
We also recommend that you remove clutter and obstructions that will avoid people walking around the house easily. The last thing you walk during a house viewing is for your guests to be squeezing through doorways and steeping over clutter.
It’s also not a bad idea to make things look coordinated, e.g. towels in order. Little things like this can often catch people’s eye, again referring to the fact that you look after the property.
Every guest should feel relaxed and welcomed as soon as they enter your home. You want them to get the feeling that the property could be their new home. It can be difficult for it not to happen, however, having pets or children around during a house viewing could potentially put off buyers.
On the other hand, a great way to send out a message that this is a ‘family home’ would be to have children around and pictures up on the wall of your family. Believe it or not, having family pictures up around your home can make the viewer feel welcome and comfortable. This will especially help if the person viewing the house has a family or is planning to start one.
Sometimes, it can also be a good idea to let your guests view the property themselves. You could let them have a wander around on their own if it’s appropriate. In some cases, we’ve also seen people leave the house or go for a walk so that your guests can have time to explore the house without it being too crowded.
The back garden is usually the last stop of the house viewing, therefore you want to make it as presentable as you can.
This means replanting flowers, tidying hedges and trees, running the lawnmower over the grass, painting your fences, etc. Anything that makes your garden look relaxing and welcoming could positively boost their overall opinion of your house.
We also advise that you don’t just put clutter and rubbish inside of your garage because it’s likely that your house viewers could ask to see inside of it to see what sort of space there is in it. The last thing that they’ll want to see is a garage full of random things that you’ve tried to hide away.
In summary, make your home feel welcoming, make the person viewing the house comfortable and try to think “what would I think if I were in their shoes?”. A potential buyer may become a guaranteed buyer if they are pleased with your home!
Minor damages and repairs may need to be carried out on the property, however, we do advise that you get this arranged prior to putting the house on the market. If you’re moving home in Cardiff, you’ll know what to look for in a new home, so apply it yours too.
For moving home advice, speak to a moving home mortgage advisor in Cardiff today. Our team are highly experienced when it comes to helping people move home – we’ve been doing it for 20 years!
Get in touch for a free moving home consultation today.
When you’re inexperienced as a first time buyer in Cardiff and have never taken that initial step onto the property ladder, the process can sometimes be a stressful one. Luckily for you, it doesn’t have to be like that. To help put you in the best position for your next house viewing and to get ‘mortgage ready’, we’ve put together a list of nine questions that you should always ask when buying a house as a first-time buyer in Cardiff.
Taking out a mortgage will more than likely be the biggest financial commitment you ever make in your life. As such, you may find yourself wishing to take some time to think about your options and what you really want to do.
In enquiring with the vendor or estate agent about the amount of viewings that have taken place at the house, you’ll be able to more accurately predict how much time you have to properly think this through, before you make a definitive decision. Of course, if the property is receiving lots of interest, you need to be ready to make a final decision as soon as possible, so to avoid losing out to another buyer.
A property being tied up into a property chain can have a huge influence on how your mortgage process will go down the line.
If there’s no onward chain (e.g. new home, bereavement or emigration), you’ll more than likely be able to move fairly quickly, especially if you’re not part of a chain either. If there is no requirement for you to sell your own property in advance, then you’ll have more leverage as a buyer, as you won’t be holding up the home buying process for anyone else.
Be sure to use this to your advantage when entering into property price negotiations.
If you’re not buying a new build property, then the previous homeowner may have left some items behind when they moved out. We often hear about white goods (which can include things like washing machines, fridges, freezers etc.) or even garden sheds being left behind for the next person who moves in.
For home buyers this can be fantastic, as it can not only save you money on buying those same items, but it can also save your time, as you won’t need to spend time finding these items and awaiting delivery.
On the flip side of this, if you don’t want or need these items, you will have to factor in the costs and time of disposing them. If you are buying a new build property, you might find that there are optional extras you can buy which will be ready for you on the day you move into your new home.
When moving into an area that you don’t have any familiarity with, it’s worth doing some research to see what the neighbours are like, as a good or bad neighbour experience can often be the deal breaker in what your experience of living in the property is like.
That being said, if you’ve had the opportunity to move into a new housing site that has been or is being developed, you will be creating an entirely new neighbourhood with people who are more than likely unknown to you. This itself can be a risk, as you cannot prepare for what the locals will be like ahead of time.
The running costs of a property can significantly differ, depending on the house and the location, so it is very important to do your research on these and ask the right questions.
Make sure you find out how much the Council Tax is, along with how much on average you might be spending on utilities, by asking the seller or doing some of your own research online. Obtaining this information can help you budget for each property you have viewed accordingly.
This may seem like a bizarre one, but it can be an incredibly important factor to many people. If you are fond of relaxing in the garden on late summer evenings or reading books with a good source of natural light, you need to find out which way the property is facing.
What’s unfortunate here is that through looking for this, you’ll often pay a sizable, more premium price for a south-facing garden, due to the fact that they receive the most sun during the daytime.
This is again something that can have quite the impact on your budget. You should always look to see if there is any work required in the property for improving energy efficiency, changing any decorations and addressing any problems with damp that exists in the property.
Getting started on negotiation discussions for a property you’d like to buy is a pretty common home buying step. As such, it’s important to make sure you are as prepared as you possibly can be to make an offer on a property that you are interested in. Once you are ready for this, the next step is for you to go and start making offers on a property.
It is also worth initiating a conversation with the seller or estate agent to figure out roughy what the seller of the home you are after may consider to be a lowball amount, as well as find out the maximum amount it is worth. You should also look to find out if any other offers have been made and rejected prior to you making your offer.
By picking a date in your diary that you ideally would like to move at, you are able to plan your other jobs around that date. This will be tasks such as instructing a conveyancing solicitor, packing up what you own ready to move and arranging a removal van to bring your belongings to your new home.
Depending on the situation you happen to be in, a second mortgage may be a possible option for you to look at utilising. There are two different methods this can be achieved.
You may be able to obtain a Second Mortgage for buying an additional home or taking out a Buy to Let, allowing this to run alongside your existing mortgage. Alternatively, you may have the option of a Second Charge, where you take out an additional mortgage amount against the same property, with a different mortgage lender.
Below we’ve put together a guide on where this could be applicable, as well as a helpful video guide where Malcolm talks about the significance of taking out a second mortgage in Cardiff.
There are various different situations where someone might find themselves needing to have more than one mortgage. Through our experience as mortgage advisors in Cardiff we’ve heard of some fairly common recurrences, with these including, but not limited to;
1) Wanting a second mortgage to raise money for your existing home.
2) Looking to rent out your existing home and purchase a new one.
3) In the market to buy a new property with your name on another mortgage already.
4) Looking to help your children out with a second mortgage.
5) In need of a second mortgage to purchase a buy to let property.
Looking at the latter one, we feel it’s important to let you know that we have a vast wealth of knowledge on Buy to Let mortgages in Cardiff, having worked with many lenders including very specialist ones, all with their own unique lending criteria.
We also have a long history of helping Buy to Let Landlords with their properties. For more information on being a Landlord, please check out our Buy to Let Mortgage Advice in Cardiff page.
If you have equity in your home, you could have the option to take out a Second Charge to release this equity and fund the deposit for a potential additional purchase. It can also be just generally used for any purchase, such as a new car, a holiday or something else.
The way a Second Charge works is that if you still have equity sitting in your property, you may be able to take out a mortgage with a second lender, in order to release some of the equity in the property.
Usually, if you are on a lenders Standard Variable Rate, we are able to shop around for you and find a more competitive deal whilst also releasing Capital. A further advance with your existing lender may also be an option available to you.
In some cases, homeowners may be looking to keep hold of their existing property, with the intention of renting it out a taking out a second residential mortgage on a new property. This process is known as a Let-to-Buy Mortgage and has become increasingly popular over the last decade.
Sometimes your Children or even Grandchildren may be struggling to find their footing on the property ladder. As such we regularly see homeowners using either a Second Charge to release some equity to gift their loved one either a portion of, or the full amount of deposit.
We find that there are many landlords looking to purchase additional Buy to Let properties to add to their portfolio, by taking out a second mortgage. Our team are able to use our expert knowledge to recommend the most suitable Buy to Let mortgage product based on your personal circumstances. You will be asked to produce a higher deposit for this mortgage than a typical residential mortgage.
If you are currently named on another mortgage and unable to get your name taken off of it, you may still want to try your luck and apply for a mortgage of your own. This is a situation we come across often and have experience helping many different customers with.
No matter your situation, if you are looking to get a second mortgage, we may be able to help. As a fast & friendly mortgage broker in Cardiff, our Advisors are able to search thousands of mortgage deals on your behalf, following up with a recommendation on the most suitable product for you based on your personal situation.
For more information get in touch to book your free initial mortgage consultation, and speak with a dedicated mortgage advisor in Cardiff.
A 95% mortgage is as simple as the name would suggest; you are borrowing against 95% of the price of a property, and then you are covering the remaining 5% with your deposit. An example of this is if you looked at buying a property that was worth £150,000 with a 95% mortgage, you would be putting down £7,500 as your deposit and borrow the remaining £142,500 from the lender.
Off the back of the March 2021 Budget, Boris Johnson announced a Mortgage Guarantee Scheme for mortgage lenders, making 95% mortgages more readily available from the bigger high street banks.
This is fantastic news for First-Time Buyers and Home Movers alike, as this scheme will continue running until December 2022. Certain terms and conditions will apply though, which is something your Mortgage Advisor in Cardiff will be able to look at, to see if you qualify.
All our customers who opt to get in touch will receive a free, no-obligation mortgage consultation where one of our dedicated mortgage advisors will be able to make a recommendation on the best possible route for you to take.
95% mortgages are usually accessible by both First Time Buyers in Cardiff & those who are Moving Home in Cardiff. Whilst saving for a 5% deposit sounds like a pretty straightforward concept, you’ll still need to have an acceptable credit score and prove that you are able to afford your monthly mortgage repayments, in order to access a 95% mortgage.
A good credit score is essential in the process of obtaining any mortgage, especially a 95% mortgage. Things like paying any current credit commitments on time, ensuring your addresses are updated and checking that you’re on the voters roll, can all help with your credit score.
Affordability is another one that is important to take note of. By giving the lender details of your income and monthly outgoings (things like your bank statements will be necessary for this) and any pre-existing credit commitments, your lender will be able to get a general overview of whether or not you are able to afford this type of mortgage.
Nowadays we see lots of family members helping each other get onto the property ladder, especially parents looking to further their children’s lives. The way this usually happens is by gifting the person looking to find their home, the deposit required. Known through the industry as the “Bank of Mum & Dad, Gifted Deposits are only intended to be a gift, and not as a loan. The lender will need proof that this has been agreed, before it can be used towards your mortgage.
When looking for a 95% mortgage, you want to make sure you have the right type of mortgage. Each mortgage type works differently, with that choice allowing you to find one that is most appropriate for your personal and financial situation.
Some homeowners and home buyers prefer Fixed Rate or Tracker Mortgages, mortgage types which mean you either keep interest rates at a set amount for the term given or have your interest rates tracking the Bank of England base rates.
Alternatively, you might find that Interest-Only or a Repayment Mortgages are more your style. Interest-Only allows cheaper payments until you need to pay a lump sum at the end (mostly now used for Buy-to-Lets), whereas a Repayment mortgage (a normal mortgage if you’d like) means you’ll be paying interest and capital combined per month.
Seeing as a mortgage is such a large financial outgoing, you need to be prepared and need to be aware. You might find things like higher interest rates, remortgaging difficulties due to less equity and then negative equity all cropping up if you’re not.
There is no need to worry though, as all these can be avoided if you’re savvy enough with your process to begin with. The more deposit you put down for a property, the less risk the lender will see you as.
A larger deposit, of say 10-15%, would not only reduce the rates of interest by a noticeable amount, but would also give the property more equity and reduce the risk of negative equity, thanks in part to you borrowing less against the property.
So, whilst the risks may seem intimidating, planning ahead and saving for a bigger deposit to access something like a 90% or even an 85% mortgage will be a massive help in your mortgage journey and something you’ll be able to reap the rewards from in the future.