If you are applying for credit, you will find that the fewer different addresses that are tied to your name and accounts, the better it will be for your credit score. When it comes to mortgages, having better credit can work in your favour when applying for a mortgage.
These days, a lot of First Time Buyers and Home Movers in Cambridge have gained a lot of knowledge and insight into the way credit scores work and generally use their current and previous addresses to their advantage.
Many of our customers are usually applicants who have moved out of their parent’s home into new rented accommodation. There are still applicants out there who believe that leaving their previous address on credit cards, electoral roll information and bank statements is acceptable.
There will always be a record on your credit repot showing if you have moved elsewhere which is why it’s important to update documents with your new address.
They will be evident on documents like car insurance, orders from online shopping all having ties with your previous address so it’s important to update each account.
If you are looking at options to buy a property in Cambridge and are wanting to take out a mortgage, it’s best that you make sure that all of our electoral roll, cards and other accounts have been updated with your current home address.
Furthermore, any other accounts that need an address are up to date and consistent with your current home address.
It’s good to double-check the date you moved in and out when you update your current home address on your electoral roll and credit score. If you don’t do this can give the lender the impression that you live in two different places simultaneously.
It’s always important that you are honest and transparent with the lender so updating your address and dates can work in your favour when applying for a mortgage.
Circumstances where you are gifted money to contribute towards part of or all of your deposit are called a Gifted Deposit. This sum of money can be given to you by a friend or family member, on the condition that they don’t need to repay the money.
The benefits of gifted deposits are that they can help you in the circumstance where you can afford monthly payments but not the initial deposit. Furthermore, having a gifted deposit can mean that you are offered a better rate if the gifted amount is a lot.
In the instance where you can’t afford the initial deposit due to being on a low salary but you can afford to pay the monthly repayments, this can help you.
It’s common that your gifted deposit is from your parents, be this birth or adopted. When this happens, the method is referred to as ‘The Bank of Mum and Dad’.
Family members besides your parents can gift you a deposit, however, this does depend on the individual lender. You need to be careful when trying to find the right lender who can do this for you.
Gifting a deposit can be done through an equity release in Cambridge. This can only happen if the person who is gifting you the deposit is over the age of 55.
As a mortgage broker in Cambridge, we find that many clients aren’t aware that there is an option available where their parents can help with their mortgage, or sometimes clients feel like they can’t ask their parents for help.
In many cases, parents are happy to support their children’s property dreams by lending a helping hand.
Taking out a mortgage compared to renting can be believed to be more beneficial. This might be due to the fact that you would potentially pay less per month.
It can be common for a gifted deposit to be from an inheritance, but parents may gift it earlier in life. Sometimes, the deposit may be from parents saving up enough or releasing a particular amount of equity from their property.
Paying a deposit by using a loan isn’t an ideal option and is something lenders don’t always feel comfortable with people doing. There is the risk that you won’t have enough for not only the mortgage but the loan at the same time which is why lenders don’t always feel comfortable with this option.
The choice is yours when it comes to the maximum amount of deposit you want to gift. Sometimes, you need 5% of the deposit to be from your own pocket, however, this can depend on the lender.
If you are a first time buyer in Cambridge or a home mover in Cambridge, you can benefit from a gifted deposit. The Help to Buy Scheme can be good to have with a gifted deposit but, this depends on the lender. This is due to the fact that the scheme requires a 5% deposit, therefore paying that using the gifted deposit could be a choice.
Obtain a gifted deposit form to provide to the lender is required. In some cases, you might need to show some other proof and ID (donor ID/bank statement and so on) again, this depends on the lender.
Critical Illness Insurance helps you financially in the case where you have been diagnosed with a particular illness. The insurance supports you by paying out a lump sum if you have been diagnosed with any of the conditions stated on the policy, such as cancer, heart attack, or stroke.
Make sure you do disclose any underlying health problems when you are taking the policy to avoid the risk of your claim being denied.
The lump sum is paid out in the event of a claim regardless of if the claimant returns to work or not. The important thing is establishing whether the illness had matched the definition on their policy.
The lump-sum can be used by the claimant for anything if it be repaying their mortgage, pay for medical care, or renovate their home.
Policies can be different in terms of which illness they cover and this all depends on which insurer you go to. It’s good to take advice on which policy is best for you to choose. Unlike life cover, critical illness insurance is a lot more expensive because you are more likely to make a claim.
The chances of surviving the types of conditions stated on the policy are a lot higher than they were 30 years ago. In the unfortunate event that you do contract one of the conditions, this often leads to financial consequences. This is one of the reasons why the cover is so popular especially for applicants who have mortgages or children to consider.
We strive to provide equal opportunity to all our customers when it comes to taking insurance out through ourselves. We wouldn’t be doing our job if we didn’t mention it!
Here at Cambridgemoneyman, we offer all of our customers a free, no-obligation protection review which involves us having a look at any existing policies you have in place and assess their suitability. From this, we will discuss any critical illness and income protection that will meet your needs and, if needed, we will try and personalise this to your available monthly budget.
The homebuyer experience can sometimes put a lot of pressure on first time buyers in Cambridge, like yourself. This is common, however, it doesn’t have to be that way. Preparation is key to help you make the most out of your house viewing experience. Below we have compiled a list of common questions to ask when you are interested in a property.
Buying a property is the most significant financial commitment in your life. Therefore, having a good think about committing to a property before buying it is understandable.
The amount of thinking time will depend on how long the property will be available. To establish this, ask about the number of people who have viewed or enquired about the same property and determine the amount of time you have to think. Furthermore, factoring in the amount of interest the property has had can be important because you will need to have a final answer pretty quickly.
Circumstances like a property chain can have a significant impact on a few areas of your mortgage process.
You will likely be able to move quickly in instances where there is no onward chain and if you are not part of a chain yourself. As a buyer, you will have a greater advantage if you don’t need to sell your property first. This is because you will not be holding up the home buying process.
Remember to use this tactic when negotiating a price.
It’s common that previous homeowners would leave items such as washing machines, fridges, etc behind to save on costs, which could be beneficial to you. This circumstance, however, doesn’t occur when it comes to new builds. In some cases where the property has a garden, they typically would leave a shed.
New buyers can save a bit of cash if the appliances work. It’s perfect for homebuyers to use these items until they get something new and modern. If you don’t want these items, you will have a factor in disposing of them.
If you are buying a new build property, you may have the option to purchase brand new extras that are ready for you on your moving day.
Finding out what your neighbours are like can be best when you’re moving into an area you are not familiar with because a good or bad neighbour can frequently make or break your experience living in the property.
Opting to move to a new build can be a risk initially. This is because it’s left to you and your neighbours to create the community. First impressions are not everything, however, it’s beneficial to get on with your neighbours as you may be living there for a while.
Running costs can differ depending on whereabouts the property is in Cambridge. Asking the right questions and researching can be helpful. Things to research could be how much the Council Tax is and the average spend on utilities which is something you could ask the seller or research yourself. By knowing this information, it can help you budget each property accordingly.
The direction that the house faces could be something you would like to know. Especially if you enjoy relaxing in the garden in late summer evenings or reading books in natural light. When it comes to south-facing houses, the property could have a premium price because the direction of the property allows you to have the most sun throughout the day.
Another thing that can have a significant effect on your budget. It’s best you find out information about the following:
A standard part of the home buying process is negotiating. Being as prepared as possible can play an essential part in making an offer on a property you like. When it comes to property price, it’s good to look at the best negotiating skills.
Speaking to the estate agent can help you determine if your offer will be considered too high or too low for a seller. See if there have been any other offers that have been rejected before you make your bid.
Working around a set date can allow you to set appointments like instructing a conveyancing solicitor and giving yourself time to pack and arrange removal to bring your belongings to the new property.
Mortgage Protection Insurance is a term that is used to surround different kinds of cover. The purpose of this cover is to limit financial stress on you and your loved ones from any unforeseen circumstances that may occur.
Below, Malcolm has put together a video highlighting the significance of having the correct insurance in place for your situation. Due to the past events of the coronavirus pandemic, the importance of health and getting insurance is more prominent than ever.
When it comes to protecting you and your family, there is a range of insurances to choose from. Cambridgemoneyman can compare lots of providers and tailor the appropriate policy to your circumstances. Here are the insurance policies that we can offer to you:
One of our experienced Mortgage and Protection Advisors in Cambridge is always at the other end of the phone or email. If you need more information, get in touch.
Life insurance is there to protect your loved ones financially in the circumstance that you or another joint policy holder pass away. Here at Cambridgemoneyman, we can talk you through all the different types of life cover accessible to you and advise the most suitable plan for you.
This type of policy covers serious illnesses detailed within a policy. Usually, this includes stroke, heart attack, certain types and stages of cancer, and more.
You will find some illnesses will not be covered, this will be detailed within your policy. Furthermore, if you have pre-existing health issues you knew you had before taking out the insurance, it’s unlikely they will be covered. In the policy, the specific illnesses covered and not covered will be stated.
If you fall victim to one of the several specified critical illnesses, the benefit gets paid and pays you whatever the long-term prognosis of that illness. Seeking specialist mortgage advice in Cambridge is key because the type of conditions covered vary from company to company, and this is why this type of insurance cannot be solely price-driven.
Usually, many businesses will offer Life and Critical Illness cover as a combined policy, and the order of pay-out would be dependent on which event happens first, either death or severe illness, the pay-out is made. They could also get written on a single or joint life basis.
Unlike Life and Critical Illness, where the cover pays out a lump sum, Income Protection pays out a monthly sum that acts as a replacement of your wages in the event of you being unfit to work. Furthermore, there are no limitations on the illnesses or injuries covered, except whether they make you unfit to work.
One restriction, however, is the amount you can cover and how quickly the benefit would start to get paid. The policies are underwritten on your health and lifestyle when you applied, just like Life and Critical Illness Cover. When it comes to Income protection, the policies are written on a single life basis.
A menu plan is when you combine your Life Insurance, Critical Insurance, and Income Protection. A discount is added by the providers each time you add a benefit which can make it cost-effective
Furthermore, a menu plan provides you with a range of cover and benefits that you can mix and match. This allows you to tailor a plan that is appropriate for your needs. Covering yourself and your family is something we strongly advise should the worst happen. Our mortgage advisors in Cambridge can help you with providing more information if you are unsure.
Family Income Benefit is the least common, but can often be useful. In particular, for households with young people. These plans can get taken to Life and/or Critical Illness Cover, and get underwritten in the same way.
Unlike the traditional forms of policy, rather than pay out a lump sum, the cover would pay an annual or monthly income for the remainder of the term of the plan. Therefore, it can replace the payment of the primary worker for several years, dependent upon a particular client’s situation and, because of this, would usually be written on a level or basis, or an index-linked basis designed to keep up with inflation.
You will find that many people have more than one different type of policy, and it wouldn’t be right to think of Mortgage Protection Insurance is something that is not needed because you are thinking the unexpected won’t happen.
Our Mortgage Advisors in Cambridge are here to discuss with you and tailor the type of cover to be the most suitable combination to your family’s priority and budget. To find out more, give us a call or fill out our enquiry form to speak with one of our Dedicated Protection Specialists Advisors in Cambridge today.
Our team of mortgage advisors in Cambridge are happy to help if any significant changes in your life have lead to removing a person from a mortgage. We have experience in helping people progress through what’s known as “financial separation”.
We have dealt with a plethora of different mortgage situations, ranging from straightforward to incredibly difficult. Therefore, it is very rare that we haven’t encountered a situation at least once before. If you are seeking any Specialist Mortgage Advice in Cambridge, we are here from early until late to be your helping hand through any difficult times you’ve found yourself in.
Gaining perspective from the mortgage lender’s point of view can be key in a situation like this. Lenders will have two people contracted in to give them security on the property. This method allows lenders to have multiple routes to go down when it comes to chasing payment if a circumstance like arrears and/or repossession occurs.
Security can be an issue when it comes to letting someone go from the property because you only have one option for payment. Preferably, they want to make sure that the person wanting to keep the property can afford it in their own right based on income and affordability. It may be best to switch lenders and take out a mortgage in your sole name.
In some cases, like financial separation, a lump sum may also be raised against the property. This allows you to ‘pay off’ the other person tied into the deal with you. Issues can occur, however, with one being that a person may not be able to afford the whole mortgage in their sole name. There are still various routes such as family guarantors to go down and a mortgage broker in Cambridge may be able to help you with that. If you are looking to put life insurance policies and any home insurance policies in sole names, our dedicated mortgage team is also able to help you with that.
Perhaps you have decided the time is right for a change of location, choosing to look at your options for moving home in Cambridge. In order to ensure you are happy with your new home, take a look at our list of the top ten factors to take into account when deciding where you would like to live next.
It’s important to understand your preferences when deciding on a set location to settle down and start a life in. Do you thrive in the busy atmosphere of the “big city”? Maybe you would much rather live the quiet life, looking out over the landscape? There are positives and negatives to both of these options, it’s all down to what you’d personally prefer.
Whether you regularly make a commute for work or enjoy spending your weekends exploring new areas, transport links can make or break a potential new location for many people. Make sure that you take a look into the transport links available and how much they’re all going to cost for you to use.
If you have any children or are planning to have some later down the line, then being within the catchment zone of either a specific high school or a variety of schools is something you may see as a high priority.
Local authority websites and school league tables are great places to find information on which schools are the best for the area in question.
Prioritising the facilities and local amenities that you would like nearby is something that could be helpful. Determine which ones must-haves, those that would be nice to have, and finally, those that aren’t too important if you can’t get them.
Some people prefer having a park nearby for the kids. Others maybe prefer to have a gym on their route home from work or a bank within the vicinity of their home.
How close would you rather be to friends and family and family? Would you rather be close enough to help them when they’re in need, or will you require any kind of help from them? Do you prefer peace and quiet or are you going to be spending time with people regularly?
Depending on the location you’re looking in, what is deemed as “good value for money” will be different. If you’re looking to get the most out of your money, then you might benefit from looking at somewhere that is a little cheaper. In doing this though, you might need to sacrifice some of those factors you were hoping for.
The way the local community is can have a huge impact on your experience of living in a house. If you would much rather have a small, tightly-knit neighborhood, then research the area and have a word with the estate agents.
You might find some areas even have a dedicated local website or community Facebook group. If a community is not so important to you, but you would still rather live somewhere that is more quiet, then maybe take some time to research the crime rates.
If you are moving because of your job or career, then it is important to think about how far that job is from where you are buying. That being said, if you’re going to be job hunting after your home move, do some minor research in advance as to what sort of businesses are in the local area and who the main employers may be.
There are lots of different types available on the market for home buyers nowadays. Whether you’re looking at an end terrace with a beautiful garden, or are looking for an inner-city, super modern apartment, make sure to look at different options available to you and see what property type best fits your needs.
If you’re looking for a property to settle down in for a very long time, then it’s worth taking a look online to see if there is any proposed investment for the local area. Make sure this is going to benefit you and the lifestyle you are after. If you’re after the quiet life and there’s a new housing development planned nearby, will this ruin your ideal housing scenario?
Whether you are looking at your options as an inexperienced first-time buyer in Cambridge searching the market for your first home or are looking to move home, it’s likely you will have discovered that some of the larger estate agents and builders would prefer it if you used their in-house mortgage advisor and conveyancing services.
As a standalone mortgage broker in Cambridge, we have spent many years working hard to help out our customers. We’ll hear from a large amount of customers who have felt themselves being pressured by an estate agent to opt into that companies personal financial services. Here are just some of the instances we’ve heard from people who get in touch;
A lot of estate agents across the industry have a reputation for refusing to put an offer forward if you pass up on their in-house mortgage advisor and go with an external mortgage broker instead.
As if this act wasn’t bad enough, some have even gone as far as to refuse putting an offer through because another client who actually said yes to their in-house service has also made an offer on the same property.
Something else we hear all too often is the ridiculous quotations they have been known to give for their services. Unfortunately there have been customers we’ve spoken to who weren’t aware these were overpriced and went forward with them. One notable customer was charged £1,500 for a simple purchase with a particular estate agent.
A member of our dedicated mortgage advice team got right onto this and we were able to get this cost down. Off of this incident, we recommended that the customer use another conveyancer in the area near the property and we were able to drop the cost of the service to a significantly less £750; the estate agent was charging double this amount!
Once you’ve made an offer on a property, the common train of thought would be that pretty soon you’ll get a phone call detailing whether or not your offer has been accepted. What often happens with estate agents instead, is they will call up and demand to know the conveyancer you have chosen.
Their questionable methods don’t end there, as following this they have a habit of refusing to take the property off the open market until you agree to use their in-house mortgage services.
As touched upon earlier, though these will be far overpriced, many crumble under the pressure and simply agree to please the agent and avoid losing their home (even though that shouldn’t happen). This is common with first-time buyers in Cambridge who want their first mortgage experience to go smoothly.
As you’ve seen here, estate agents are notorious for making the process difficult and bordering on near harassment. A dedicated mortgage broker in Cambridge can help you with these situations and in some cases, bring the costs of other services down to a level that is fair. Now to answer a question you may be thinking at this point…
Absolutely not. These are highly illegal ways to conduct business. As a customer, you have the right to use whichever companies you would like during your home buying process. You have full freedom to use any mortgage broker or conveyancing solicitor that you wish to, it’s your personal process and personal choice.
Unless you explicitly sign a contract in the beginning to say you will only use their services (which you won’t be offered anyway), you have zero obligation to use their services for anything other than the sale process between yourself and the seller of the property.
Please always remember, when negotiating on the purchase price of a property; Should the people selling the property you’re looking to buy really know your personal financial circumstances, as well as the amount a lender is willing to let you borrow? This is a fact they will use to their advantage when pushing their in-house services.
Be wary and if you definitely don’t want to use their service, put your foot down and do not succumb to the pressure. Your future family home and financial situation all depends on how well your mortgage process goes.
We will always have your best interests at heart, keeping you informed throughout and jumping through those hoops on your behalf, so you can stay relaxed and happy. The information provided here is based on a genuine history of tactics used, that we wouldn’t wish others to go through if they can avoid it.
For all your mortgage needs, please do get in touch and we’ll do our very best to help you out, hopefully securing a great deal and your future family home in the process.
If you are out of work due to ill health or an accident in the workplace, Income Protection Insurance is a monthly benefit paid out to you to support your financial needs. A Protection Specialist Advisor in Cambridge can be there for the applicant by helping them with the amount of cover the applicant wants to take out. They can also help determine how long you will be prepared to wait before being able to claim.
Income Protection Insurance can be expensive when comparing it to life cover. This is because there is a higher chance of you claiming on your Income Protection Insurance than claiming on your Life Insurance policy, however, the payment of monthly benefit will continue until you return to work. This only applies to the “budget” version of the policy. This is cheaper because it only pays out over 24 months.
In comparison to Critical Illness Cover, Income Protection Insurance pays out for anything that is stopping you from working whereas Critical Illness Cover pays out for whatever is preventing you from working and have specified illnesses they apply to.
This type of policy attract applicants who are employed by companies that do not provide generous sick pay schemes and is seen as very popular with the self employed.
We believe in equal opportunity when it comes to our customers taking out insurance. We wouldn’t be doing our jobs if we didn’t mention it!
All of our customers are offered a free, no-obligation protection review. We’ll then recommend which products, including critical illness and income protection that meet your needs. If needed, we’ll then design the plan to work well with your available monthly budget.
Some clients come to us for specialist mortgage advice in Cambridge when their credit score is lower than the acceptable amount or they have missed payments. Adverse credit is a frequent occurrence and this is something that our mortgage advisors in Cambridge might be able to help with.
A potential factor that could effect you when obtaining a mortgage is if you have either missed a monthly mortgage payment or any smaller payments such as your mobile phone contract. This can happen through an attachment on your credit score that states your missed payments. From this, the lender could see that you are a risk.
However, missing monthly payments doesn’t always mean you can’t get a mortgage, but there is the potential risk that the high street bank may turn you down. This is especially the case if you only have a small deposit for the property you are looking at, as it may not be enough to convince a lender to lend to you. To prevent this from happening, you may need specialist help.
The lenders will want to know when the default was registered against you. The likelihood of receiving the necessary help depends on how far away you are from that specific date. In certain circumstances, like ill health, separation or redundancy, the advisor may be able to help even if it is a recent occurrence.
We have provided further information below that answer any common mortgage scenarios regarding bad credit mortgages in Cambridge.
Your mortgage advisor in Cambridge will want you to provide an up-to-date copy of your credit report and you can obtain one of these usually free of charge (check with the providers T&Cs). It is advised you have your credit report before applying for a mortgage and even more so if you have had any doubts about your credit history, as it gives your advisor an exact snapshot of your financial situation.
This depends on your circumstances. When it comes to the impact of bad credit, some customers may become a little confused. Despite having bad credit, with a sufficient income & enough deposit, it may be possible to obtain a mortgage.
Reassuring the lender that you can pay back your mortgages without the possibility of any late payments happening is key, as the lender needs to proceed with confidence. If the worst happens, your home may get repossessed, which the lender would want to avoid. There are many routes to take when people who have bad credit are looking to get a mortgage, even if these routes may have higher rates of interest. The most appropriate next step when seeking a potential mortgage is to get in touch with a mortgage advisor in Cambridge (like ourselves) to help.
In some cases, you may find yourself struggling financially and are unable to keep up with mortgage payments you didn’t have trouble paying in the past. This isn’t an ideal place to be and even if this was a momentary lapse, it would still be on record as a missed payment.
Credit issues may occur during this period and this could become an issue for when it comes to getting a remortgage at the end of your term or a new mortgage after moving home in Cambridge. As mentioned before, this is based on risk. Can the lender trust you not to find yourself in that situation again?
Our mortgage advisors in Cambridge have a lot of experience when it comes to customers having bad credit, particularly when they have previously had or currently have a mortgage.
Other adverse problems customer could potentially run into regarding their credit are;
Even though these situations aren’t the best circumstances to find yourself in, it’s not the end of the road. The process may involve many challenges which involve you paying a higher rate of interest. There are many specialist lenders out there who may accept you depending on the nature of your circumstance.
We highly recommend that you work on improving your credit score. Our How to Improve Your Credit Score article is a helpful, in-depth mortgage guide that will hopefully put you on the right path to obtain a mortgage.