An In-Depth Look at Specialist Mortgage Scenarios
When you are faced with a tricky mortgage situation and you are struggling to find products that you are able to match, it may be time to consider getting Mortgage Advice in Cardiff. We can go through your situation in step by step and try to work out a solution together.
It’s not unusual for us to encounter different, complex scenarios, however, most of the time we have already dealt with a similar situation before and are able to help. Here are some of the most common mortgage scenarios that we come across:
Property Down Valuation
When you make an offer on a property, you will need to take out a mortgage to cover the full costs of the sale. After a property survey is carried out, in some cases the results can show that the value of the property is not worth as much as your offer. This could be down to interior/exterior damages, other similar properties being valued lower or something else that the survey results will show.
This is called a property down valuation. The lender will see that the property is worth less than you originally offered and will not want to let you borrow as much as you want to. The lender could even pull out of the deal completely.
If you can make up the difference with your own savings or can come up with an agreement between you and the seller that’s great, however, sometimes the seller won’t budge their offer and you may have to move on.
Divorce & Separation Mortgage Advice
If your relationship unfortunately starts to break down and you divorce or separate, sorting out any joint finances, like your mortgage, can be quite difficult to work with. You need to make sure you get this sorted as soon as possible, as the longer you leave it, the more challenging it will be.
When going through a divorce or separation whilst living with your partner, things can get complicated. All of your joint finances, like your mortgage, will need sorting out. This should be done sooner rather than later.
Whether it’s you or your partner looking to get a new mortgage, we may be able to help form an agreement between both parties.
Remove a Name From a Mortgage
Following a divorce or separation, it’s most likely that someone is going to want to remove their name from the original mortgage. This could be you or your ex.
You can only remove a name if both parties are financially stable without one another. For example, if you want to remove your name from the mortgage but your ex cannot afford to meet the payments on their own, you may struggle to get your name removed right away, and vice versa.
Single Name Mortgages for Married Applicants
It is possible to achieve a sole name mortgage on a property, however, lenders would much prefer you to take out a joint mortgage under one roof. Applying for a joint mortgage would also make your ability to get accepted much easier.
The Shared Ownership scheme allows applicants to purchase a share in a property and then pay the remainder back through rent. The percentage share that you have to purchase has to be between 25%-75%, but in some cases, you can purchase as little as 10%.
The remaining share is likely to be owned by the local authority. In the future, you may get the option to purchase the rest of the property or just increase your percentage share.
Professional mortgages are limited to certain professions across the country. This area of the market is very niche, therefore, we would recommend getting in touch with a specialist like ourselves to learn more about this.
Second Home Mortgages
If you are thinking of purchasing a second property and need to take out a mortgage with it, you will first have to demonstrate your ability to afford two sets of mortgage repayments.
You will need to prove this through evidential documents; this will be your bank statements, P60 and payslips. We can help you prepare for this.
Holiday Home/Let Mortgages
Holiday let mortgages work similarly to Buy to Let mortgages, however, a holiday home will not generate regular income with long term tenants. Your income will generate in short periods and for the rest of the time, you will have to compensate for the repayments on your own.
During off-peak holiday times, you may see your holiday let income deplete. This is why the lender has to be certain that you can afford two sets of income before granting you a mortgage on the property.
New Build Mortgages
New builds can often come with high costs, especially because of the high demand for property in recent years.
If you’re struggling to save up for a deposit, there are various government schemes made for helping new buyers secure new build properties. You could utilise the Help to Buy Equity Loan scheme, Lifetime ISA or the Shared Ownership scheme.
Non-Standard Construction Property Mortgages
A ‘non-standard’ property is a property that has not been built in a conventional way, i.e., with bricks or mortar.
If you are planning to take out a mortgage on a ‘non-standard’ property, then you will need to search for a specialist deal. We would also recommend paying that bit extra to get a full structural property survey carried out on the property just in case there is something wrong with it.
Multiple Applicant/House of Multiple Occupation Mortgages
HMO mortgages are a type of Buy to Let. This type of mortgage allows you to have between 4-6 tenants in a property, similar to student housing.
Before obtaining a HMO mortgage, you may have to converse with the council to obtain a HMO license. This is only the case when there are 5 or more unrelated applicants living inside the property or there are 2 or more separate households living inside the property.
We would suggest seeking specialist Buy to Let Mortgage Advice in Cardiff if you are interested in HMO mortgages.
Mortgages Past Retirement Date/Lifetime Mortgages
A Lifetime Mortgage allows you to release equity within your home to create a lump sum of cash. You will have to be over the age of 55 to access this mortgage type.
It’s strongly recommended that you speak with a mortgage specialist before rushing into equity release, it can get complicated very quickly if you don’t quite know what you are doing.
Offset mortgages allow you to run a savings account parallel with your mortgage. It can be a really useful way to help you access competitive interest rates and mortgage products.
Do you Require a Specialist Mortgage Advisor in Cardiff?
We are always on hand to answer your mortgage questions, every day of the week! No question is a stupid question; feel free to get in touch anytime that you want to discuss your mortgage options.
20 Years of Experience
We’ve been working with complex mortgage situations for over 20 years now. Each of our Mortgage Advisors in Cardiff is fully qualified and trained to help you through your mortgage. They will try their best in every situation, no matter what they are faced with.
Over time, we have managed to learn the ins and outs of our lender’s products and how to find the perfect one for each client. We will evaluate your personal and financial situation and then take it from there.
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