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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!
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 make this an enduring policy.
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.
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 Help to Buy mortgage appointment online today and we will see how we can help.
If you have your heart set on a property and are ready to make an offer to purchase it, you may be left scratching your head, unsure of what exactly you should do next.
It’s not as simple as just approaching a seller and asking to buy the property, there is a lot you need to do ahead of time in order to prepare for this step.
Obtaining an Agreement in Principle is a key part in the process of buying a home. It is a written statement of approval from the mortgage lender that confirms that in principle, they are willing to lend you the desired amount to purchase the property, subject to further checks.
It’s for this reason why you will need to make sure that you have one to hand, as a home seller or estate agent will want to know that you actually have the funds to proceed, avoiding any possible wasted time on both their end and yours.
During the COVID-19 lockdown periods in 2020, you even needed an Agreement in Principle to view a property, let alone buy it. This was to limit the viewings only to people who could proceed there and then if they wanted to make a purchase.
As an experienced mortgage broker in Cardiff, we always recommend preparing ahead of time and putting yourself in a better position than other buyers, by obtaining an Agreement in Principle as early as you can.
In most cases, you will never be able to compete with a cash buyer of a property. Lenders love it when someone can make a payment on the spot, without having to wait for a mortgage to complete.
That being said, by obtaining your AIP, you may be able to increase your odds against cash buyers and even other possible home buyers.
If you have an Agreement in Principle to hand, you are demonstrating to the seller that you are very serious and do have the funds to proceed.
It also puts you in a higher position than other buyers who maybe do have the funds, but haven’t gotten an AIP of their own.
This is one of the benefits of getting in touch with a dedicated mortgage broker in Cardiff. Our dedicated mortgage advisors in Cardiff will be able to obtain one of these within 24 hours of your initial free mortgage appointment.
Buying a property is all a matter of negotiation. If the offer that you put forward to the seller is rejected, you will be asked about potentially increasing your offer.
If you believe that the property is indeed worth the increase and you want it, you may have to be prepared to spend a little more than you had planned.
Don’t be worried though if your first offer is declined, this has happened to lots of First Time Buyers in Cardiff in the past and they are still able to secure a property down the line at some point.
If your second offer is also declined, you possibly have to be prepared to pay the asking price. This is where it pays to make sure that you have done plenty of research ahead of time.
Before you make any offers, you should always have a look at the other properties in the local area and see what they are selling for on sites like Zoopla or Rightmove. This may give you a general idea of what to offer the property seller.
You should also look for how long the property has been on the open market. If it is a new listing, the seller may want the asking price, whereas if it’s a long-time listing, the seller may accept a lower offer just to have it taken off their hands.
If you come across houses that have gone for amounts that are less than they are worth, there is usually a very good reason for it. It may have possibly been repossessed, sold to at a discounted price to a residing tenant or an inter-family sale.
For any mortgage advice relating to this specialist subject, feel free to contact our expert mortgage advisors in Cardiff today.
If you are in need of any help with making an offer as a First Time Buyer in Cardiff or perhaps just want a mortgage advisor in Cardiff to walk you through it and get a great deal, we’ll always be on hand to guide you throughout the process.
Our team of mortgage advisors in Cardiff are available all throughout the week, so book your free mortgage appointment online and get your journey started today.
The Shared Ownership Scheme is a government-initiated mortgage programme in the United Kingdom, designed to facilitate individuals in their pursuit of homeownership.
This scheme is open to permanent UK residents, encompassing both first time buyers in Cardiff and former homeowners who may be facing challenges in acquiring a new residence.
To be eligible, your household income must not exceed £80,000, and the property you intend to purchase is typically a leasehold. In a leasehold arrangement, you acquire the property for a predetermined period.
Participating in a Shared Ownership in Cardiff allows you to buy your home through a combination of a mortgage (usually covering a portion ranging from 25-75% of the property) and rental payments.
The rent, which may encompass service charges and ground rent, is generally set at a more affordable rate compared to market prices and is paid to a housing association.
From April 2021 onwards, the Shared Ownership Scheme underwent significant updates as part of the government’s Affordable Homes Programme. These modifications introduced several notable changes.
Firstly, the minimum requirement for property share purchases, previously set at 25%, has been revised. In certain cases, it can now be as low as 10%.
Additionally, when acquiring additional shares, the previous requirement of 5-10% minimum shares has been replaced, and individuals can now purchase them in 1% increments. Furthermore, the fees associated with buying these additional shares have seen a reduction.
Notably, the responsibility for maintenance and repair costs, which were previously borne by the homeowner, has shifted. Your landlord will now cover these expenses for the initial 10 years of ownership.
If you secured a Shared Ownership Mortgage in Cardiff before this timeframe, these new regulations may potentially apply to your situation moving forward. However, it’s advisable to confirm these specifics with your provider, as the applicability could be determined on a case-by-case basis.
Before delving into the mortgage aspect of the process, your initial step involves confirming your eligibility for Shared Ownership in Cardiff. To accomplish this, your first point of contact should be your local Help to Buy agent in the area where you intend to make your purchase.
During this conversation, you will typically be required to furnish specific details, including your income, available budget, preferred location, and your credit history. Once your eligibility is established, you can proceed with the mortgage application.
Engaging the services of a mortgage broker is highly recommended in this phase, as not all mortgage lenders extend their services to individuals seeking Shared Ownership in Cardiff.
The amount you can borrow will typically be determined by various factors, including your income and additional costs such as rent.
When considering a Shared Ownership Mortgage in Cardiff, it’s essential to weigh the pros and cons. It’s important to note that, as previously mentioned, not all mortgage lenders extend their services to applicants using the Shared Ownership Scheme.
However, there are numerous mortgage lenders, including those within our panel, who do offer these types of mortgages. Additionally, Shared Ownership Mortgages in Cardiff can provide a sense of long-term stability, as you become both an owner and occupier simultaneously.
Deposits can be a stumbling block for many homebuyers, given the challenge of saving a substantial sum. Fortunately, Shared Ownership Mortgages typically require lower deposits compared to open-market purchases. This accessibility aspect makes mortgages more attainable for individuals with modest incomes.
While these advantages are notable, it’s important to keep in mind that you are responsible for 100% of the ground rent and service charges on your property, regardless of the share you have purchased. A feature called “staircasing” typically allows you to gradually acquire more shares over time, ultimately reaching 100%.
Upon achieving full ownership, you will no longer be obligated to pay rent, but your mortgage, ground rent, and service charges will persist. However, when your owned share surpasses 80%, you may be subject to Stamp Duty on the entire property value. It’s worth noting that this land tax might not apply in the case of a first-time purchase.
Despite potential Stamp Duty costs, monthly mortgage payments are often more affordable than traditional mortgages, and in some cases, even cheaper than private rent.
Additionally, Shared Ownership offers tenure security, ensuring you can remain in your home for the duration of your lease, which typically spans between 99 and 125 years.
As your home is jointly owned, you will need permission from the housing provider before making any structural alterations. This requirement may affect the sense of autonomy you would have if you owned the property outright.
Should you decide that homeownership is no longer the right fit for you and you wish to sell your property in order to relocate, the process differs somewhat with a Shared Ownership Mortgage in Cardiff.
While selling a property with most other mortgage types is typically straightforward, provided your fixed period has concluded, Shared Ownership entails a unique approach.
The feasibility of selling your property with a Shared Ownership Mortgage in Cardiff hinges on the proportion of the property you own in shares. Generally, you will need to possess 100% ownership of the property before considering a sale.
It is important to understand that the housing association typically holds ‘first refusal’ rights for the initial 21 years following your property purchase. This legal provision grants them the prerogative to make an offer to acquire the property themselves before you proceed to place it on the open market.
If you do not hold 100% ownership of the property, the initial step would be to explore the acquisition of the remaining shares of the property, subsequently allowing you to contemplate its sale.
Shared Ownership in Cardiff offers a promising opportunity for first-time buyers with aspirations of stepping onto the property ladder, particularly when their deposit may be on the smaller side. This mortgage scheme can serve as a valuable tool in realising your homeownership goals.
However, it’s important to acknowledge that embarking on a Shared Ownership Mortgage journey can be intricate, involving various fees and contractual nuances. To ensure you’re adequately prepared and well-versed in the contractual particulars, it’s essential to be thorough and well-informed.
Ultimately, the decision revolves around personal preference and your specific circumstances. By scheduling a complimentary mortgage appointment with a reputable mortgage broker in Cardiff, you can engage with a trusted mortgage advisor and adequately prepare if you’re contemplating this route.
For an in-depth understanding of the Shared Ownership Mortgage Scheme, you can explore further information on the government’s OwnYourHome website.
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 mortgage advisor today, if you’re looking at moving home in Cardiff. 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.
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.
One of the most popular questions we get asked here at Cardiffmoneyman is “How much can I borrow for a mortgage?”. In this post, we will go into the details of affordability assessments and how they apply post-2014.
Whether you’re a first time buyer, moving home in Cardiff or looking to delve into buy to let mortgages, we hope that this article can help!
Back in the day, before the era of credit scoring, mortgages were assessed manually by your local Building Society Manager. Lenders moved towards more uniform income assessments to bring forward a more consistent approach in the 1990s.
Maximum lending “caps” were introduced to prevent budding homeowners from borrowing more than 3-4 times their income.
Around the time of the early noughties Credit Crunch, these income multipliers started to become more “generous”. Shockingly, lenders would allow some customers to self-certify, without the need for background checks!
As you can imagine, that went very wrong. Post-financial crisis, everything became stricter, with far more rules being put in place to try and protect the market from future disrepair. This made getting a mortgage significantly more difficult for some.
In 2014, the mortgage market had managed to recover, and we were introduced to the Mortgage Market Review 2014. This was a new set of guidelines for Lenders to follow in order for things to go smoothly. The old income multiplier method was no more, and we saw the emergence of more sophisticated affordability calculators.
With these new calculators, it became possible to delve deeper into how the applicant was spending their money and what their net disposable income would be.Mortgage advisers in Cardiff and lenders were assessing at bank statements more closely to make sure the customer could only get a mortgage they were able to afford. One of the many factors included regular large expenses such as childcare.
Lenders can get quite competitive with one another, on the likes of price and lending criteria. Because of this you will find that things like the maximum borrowing capacity can completely differ between lenders. You may fit into a different niche depending on the lender, so if you are unsuccessful with one it does not mean your journey is over.
Some Lenders will take into account state benefits such as tax credits for a mortgage. Others are more generous if you are self-employed and looking for a mortgage. Taking out the longest mortgage available also opens you up to a larger amount you can borrow.
As time went by throughout the noughties, Lenders were a lot more lenient with how much they would lend. Some would offer self-certified mortgages without bothering to do a background check to see if they were being honest! Yet they wondered why it went wrong… Predictably so, the market crashed and the time between 2008 and 2010 were very difficult indeed, making it harder to get on the property ladder.
When the market eventually recovered in 2014, we saw the regulator launch the Mortgage Market Review (MMR). There is still a “cap” on how much can be borrowed (the majority of lenders prefer to stay below 4.75 times your annual income) but spending habits now become a factor in the process. Examples of these include high childcare costs, credit commitments and student loans. If you have any of these, you could be offered a lot less than someone earning the same amount who does not need to worry about those things.
We are still regularly surprised by what some lenders will and will not accept. In some cases, lenders may penalise low-earners (it could be that they’re not the type of applicant they want), some take pension contributions as a fixed outgoing so if you were, for example, a public sector worker with a big pension deduction that is less than a private sector and so on.
Different people are often better suited for different things. If you need to maximise your borrowing capacity to secure your dream home, then you will definitely need the support of a Mortgage Broker in Cardiff. We will be able to work alongside you, seeing which lenders will be able to lend you the amount you were hoping to borrow.
It is important to sit down with an advisor prior to making any kind of offer, so you can figure out what is within the realms of affordability.
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Cardiffmoneyman.com & Cardiffmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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