Burger Menu

Gifted Deposit FAQs

What is a Gifted Deposit?

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.

How can gifted deposits help?

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.

Who can gift the deposit?

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.

Do your parents know you need help?

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.

Gifted Deposit VS Loans

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.  

Is there a maximum or minimum gifted amount?

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.

Who can benefit from a gifted deposit?

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.

What proof is required?

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.

9 Questions to Ask When Buying A House in Cambridge

First Time Buyer Mortgage Advice in Cambridge

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.

The 9 most common questions:

1. How much interest has there been in the property/development?

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.

2. Is there a property chain?

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.

3. What comes with the sale?

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.

4. Are the neighbours friendly?

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.

5. How much does it cost to run?

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.

6. Which way does the house face?

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.

7. After moving in, how much work will be needed?

Another thing that can have a significant effect on your budget. It’s best you find out information about the following:

  • How engery efficient is the property?
  • If there is any damping issues (if any) that need sorting
  • Does the furnishing need changing

8. Are you open to offers?

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. 

9. When can we move in?

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.

Moving Home Mortgage Advice in Cambridge

10 Factors to Help you Decide Where to Live in Cambridge

Looking at the various needs home buyers have when moving home

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.

Hustle and bustle of the city or relaxing countryside

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.

Transport links

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.

Schools & education

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.

Facilities

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.

Friends and family

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?

Value for money

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.

Community

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.

Jobs

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.

Property type

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.

Investment

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?

Moving Home Mortgage Advice in Cambridge

Do I Have To Use My Estate Agents Mortgage Advisor in Cambridge?

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.

Sales tactics estate agents use so you go with their mortgage advice:

As a standalone mortgage broker in Cambridge, we have spent many years working hard to help out our customers. We are free from any business relationships with banks, building societies or estate agents.

This means we have no ulterior motive, we are here to help home buyers get their dream home and a favourable mortgage deal. That’s at the heart of our business and what drives us.

On a regular basis 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;

The agent refusing to put forward your offer

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.

Quoting extortionate service prices

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!

Demanding information & pushing other services heavily

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…

Are their tactics legal?

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.

Recurring comments we’ve heard from customers that their estate agent has said:

  • “If you use our service, we’ll thrown in a free carpet or appliance if you use our service for this (extortionate) price.”
  • “It’s much easier to keep everything under one roof, so you only have to deal with one company.”
  • “Using our services gives the seller the peace of mind that the process will be smooth and problem free.”
  • “Use our services, we’ll get you through the process quicker.” (this is often far from the truth)
  • “Your offer won’t be qualified until you come in and speak with one of our own mortgage advisors.”
  • “By using our mortgage advisor, you’re more likely to be successful.”
  • “We’re always sending work to the solicitor, so we can chase them and get back to you much quicker.”
  • “We have much better deals on offer than external mortgage brokerages”

Be vigilant and don’t let them push you around

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.

Why use a Mortgage Broker | MoneymanTV

Can I Get a Mortgage With Bad/Adverse Credit in Cambridge?

Can I Get a Mortgage With Bad Credit? | MoneymanTV

Bad Credit Mortgage Advice in Cambridge

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.

Credit Score Mortgage Advice

Bad Credit Mortgage FAQs

We have provided further information below that answer any common mortgage scenarios regarding bad credit mortgages in Cambridge.

What will my mortgage advisor in Cambridge need to see?

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. 

I have a good income but bad credit. Can I still get a mortgage?

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. 

I’ve had mortgage problems before. Will that stop me from getting a mortgage?

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. 

What other types of adverse problems are customers faced?

Other adverse problems customer could potentially run into regarding their credit are; 

  • Missed Mortgage Payments. 
  • Credit Card or Loan Defaults. 
  • County Court Judgements (CCJ’s). 
  • Bankruptcy. 

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. 

Forces Help to Buy Scheme Has Been Extended

Help to Buy Mortgage Advice in Cambridge

Armed Forces Help to Buy Scheme | MoneymanTV

Good news for military personnel, according to Army Families Federation Defence Secretary, Ben Wallace. The Help to Buy Scheme, that helps military personnel get onto the property ladder, has been announced as being extended.

The £200 million scheme was introduced in 2014 to offer a boost to anyone from the armed forces who needed help buying a home. Originally intended to end in December 2019, the government extended the scheme until the end of 2022, as a thank you for their commitment to their service and dedication to the country.

How does this help to buy work?  

This works by accessing a borrowed deposit that is summed up to half of your annual salary (a maximum of £25,000), without any interest involved, then the deposit can be used to purchase a first home or to move into a new home.

A benefit of the scheme is that you don’t need any current savings to get yourself on the property ladder. The money raised from the loan can partly be used to be put towards your deposit or other costs:

  • Stamp duty 
  • Estate agent fees 
  • Solicitors fees 

Another advantage that benefits forces personnel is that the majority of lenders will accept the loan towards the deposit for a new home. More relaxed than some other schemes, the Forces Help to Buy loan can be paid back over a period of 10 years, so you don’t have to feel as rushed.

Even if you were unsure that you would have a chance, if you are able to match the criteria (length served, service term left and medical categories), you are eligible to purchase your home using the Armed Forces Help to Buy Scheme.

Click here to read through further details from the government site.

How a mortgage advisor in Cambridge may be able to help

From the minute you call up until the completion and beyond, our knowledgeable mortgage advice team in Cambridge has your back. They will make sure you are taken care of and are determined to find you the best option for your circumstances.

For your fast and friendly customer experience, get in touch today and see how we might be able help you with seeking your dream home.

Please note, the Forces Help to Buy is not the same as the standard UK Help to Buy scheme.

The Main Reasons People Decide to Move House in Cambridge

Moving House Mortgage Advice in Cambridge

Moving house in Cambridge can create a great amount of stress with finances or personal issues which can make moving a difficult task. Many people move house for a number of reasons like finding a property with more space or starting new employment in a different location.

Here are some of the main reasons why people may find it appropriate to move house:

  • In need of a property with a larger amount of space
  • Seeking a change in scenery and/or lifestyle
  • Fitting within a school catchment area
  • Decided you no longer need a large space due to changes in your household i.e., children moving out
  • To be closer to friends and family
  • Relocating due to a new job opportunity
  • To move in with your partner or to move out away from your partner due to a breakup
  • To save money on home costs
  • Looking to upgrade to a property you desire

The appeal for buying can be recognisably higher due to it potentially saving you money compared to renting, however, this depends on certain factors. That being said, moving house in Cambridge can be difficult for people who have created an emotional attachment to their homes, with it being a place where memories were made. There are many pros and cons when it comes to either moving house or staying in your home for longer, however, this is down to your personal preference.

In most cases, those who do choose the option to remortgage rather than moving house, as a means of making home improvements to their current property. Common projects we hear of people of taking on are extensions, kitchen renovations, garage or loft conversions and home offices.

If you are looking to remortgage for home improvements, then getting in touch with our knowledgeable team of mortgage experts for a free mortgage consultation, may be beneficial. We are happy to book you in whenever you’re ready to speak to one of our trusted mortgage advisors in Cambridge.

They’ll be there to support you by comparing the potential cost of raising money to improve your home compared to how much it would cost you to move house. They are also there to help with calculating the maximum you can borrow.
To assist with thinking about your next step, you will be given a monthly payment estimate.

Mortgage Advice for Moving House in Cambridge

Top 5 Mortgage Application Hurdles You May Come Across

During the mortgage application process, you are bound to stumble across a hurdle or two. Whether this is a simple mistake or a factor that could risk your application getting declined, there is usually something that trips up mortgage applicants.

Here we focus on the types of hurdles to look out for when progressing through with your mortgage application and how a Mortgage Broker in Cambridge like ourselves can try and help you get by each one of them.

Mortgage Hurdles – Mortgage Advice in Cambridge

There are lots of different surprises that could pop up throughout your mortgage journey; here is a list of some of the most common mortgage hurdles that we come across as a Mortgage Broker in Cambridge.

Childcare fees

It’s extremely unlikely that you’ll be turned down for a mortgage just for having children. Although, it’s likely that you’ll receive a higher offer than if you didn’t have children.

Lenders will always have to factor in childcare costs. Before lending to a borrower, they have to be 100% certain that the applicant can afford their mortgage payments on top of their monthly expenditures – which includes childcare costs. Depending on how many children the applicant has, childcare costs could run into the hundreds each month, which could impact a persons ability to meet their mortgage payments. Childcare costs only ever seem to go up and never down, they will treat this financial commitment the exact same way that they would treat a car loan or hire purchase agent.

Even if your children are older and you don’t have nursery fees to pay for, you still may be offered less than other buyers who don’t have children. If you receive child benefit, this could benefit you as lenders often count it as a contribution towards your disposable income each month.

Divorce/separation

Unfortunately, a divorce/separation could get in the way of your mortgage and financial situation, especially if you share a joint mortgage. When applicants in this situation get in touch in desperate need of help, we are always willing to offer a helping hand so that we can get them over this tough mortgage hurdle.

Usually, if you’re financially linked to someone via a joint mortgage, you may find it harder to get your application accepted as you still withhold responsibilities for another set of mortgage payments. Lenders have to be sure that you can afford a mortgage before accepting your application.

When applying for a mortgage whilst going through a divorce/separation, getting Specialist Mortgage Advice in Cambridge may be your best option. As an expert Mortgage Broker in Cambridge, we’ve worked with applicants trying to remove their own name from a mortgage; wanting to remove their ex-partner’s name from a mortgage; wanting to obtain a second mortgage despite still being linked to another one.

If you need a hand getting over these mortgage hurdles, we will be more than happy to help. Mortgages after divorce/separation can often get complicated very quickly, so make sure that you have someone by your side every step of the way.

Benefit income

Different lenders have different opinions on benefit income. Some lenders may take everything into account e.g. child tax credit, working tax credit, disability benefits and pension; whereas some lenders may not even factor in one, it really depends on the lender.

In Cambridge, we have access to lots of specialist mortgage lenders, each with their individual, unique mortgage products. Once you get in touch with our team, we will see whether you’ll be able to qualify for any of these specialist mortgage products.

New job

You would usually find that a new job comes with a bigger salary, and this extra income is often used on something new, such as a mortgage. So you’d also expect your chances of getting a mortgage to increase due to this extra bit of cash? Unfortunately, this is not always the case.

Lenders normally want you to have job security; you will need to have an income every month to get a mortgage. If you’ve just started a job, you’re likely to have a probationary period. Even though probationary periods are usually okay with lenders, there will always be a little bit of uncertainty there.

Lenders will look at your previous places of employment to determine your working patterns. They will want to make sure that you aren’t just dipping in and out of employment. Employment gaps can have a negative impact on your mortgage application and may make lenders think that you are an untrustworthy applicant.

As a Mortgage Broker in Cambridge, we work with some specialist lenders who work from a newly signed employment contract. This could even be in month one or if your new job is about to start.

Evidencing a deposit for a mortgage in Cambridge

Legally, all mortgage lenders and mortgage brokers have to evidence the source or the borrowers’ deposit funds. This is for anti-money laundering purposes and must be done for all kinds of purchases. In some cases, your estate agent and solicitor may ask to see these evidential documents too.

Proving exactly how you built up your savings for a mortgage can often prove tricky. As a Mortgage Broker in Cambridge, we know that this is one of the most important parts of the mortgage application process, despite sometimes the hardest.

You will always need to show how you’ve saved money for a mortgage. You may have done it through savings, premium bonds, the sale of another property, gifted from a family member or friend, from family overseas, or from a personal loan, you are required to have the paper audit trail for the accumulation of funds.

What is a 95% Mortgage?

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. 

95% Mortgage Advice in Cambridge

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 Cambridge 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.

Can I get a 95% mortgage?

95% mortgages are usually accessible by both First-Time Buyers in Cambridge & those who are Moving Home in Cambridge. 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.

Improving your credit score

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 

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.

Can my family help me get a 95% 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. 

How do I choose the right 95% 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.

How can a bigger deposit help with my mortgage? 

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. 

What is a Mortgage Agreement in principle (AIP)?

Need a Mortgage Agreement in Principle in Cambridge?

What is an Agreement in Principle | MoneymanTV

Here you’ll find out the basics that you need to know about agreements in principle, including the pros and cons of getting one. For more information, get in touch and speak with one of our expert Mortgage Advisors in Cambridge today. An Agreement in Principle (also known as an AIP or Decision in Principle) is where you pass a Lender credit score to qualify for a mortgage.

By obtaining an Agreement in Principle, you prove that you are ready to support any offers you make as a First-Time Buyer in Cambridge. It may also help negotiate a lower price if you have one of these, as it shows the seller you are serious and have the means to continue with the process.

Will obtaining an Agreement in Principle affect Credit Score? 

The more commonly seen methods of credit scoring are via soft searches rather than a hard search. These may still affect your credit score, though a hard search will usually be more likely to do this than a soft search.

Reasons come down to a hard credit search that can leave a credit footprint, whereas a soft search does not. Regardless, you can rest assured that whichever is used by the Lender is done with the best intentions.

Should I avoid hard credit checks? 

Having your credit checked via a hard search every so often should not make too much difference. It becomes an issue if you take too many of these within a small amount of time. On the flip side, if you know you have a good credit score and the best path to take with a lender, this should not be a problem.

Is an Agreement in Principle a guarantee that I will get the Mortgage? 

Whilst the prospect of this would be excellent, there are no guarantees that having an Agreement in Principle will allow you to get a mortgage. The Lender will still require seeing all your documents, and only then will an Underwriter make the very final decision.

Often we find that customers contact us after they got declined at the application stage due to missing some small print in their Agreement in Principle. You will need to provide ID to prove that your identity, payslips to prove your income and bank statements to prove you are smart with money before a lender offers your case.

Can I make an offer without an Agreement in Principle? 

Though you can make an offer without an Agreement in Principle, we would not advise doing so. Any credible Estate Agent will want you to prove you can progress onward.

How Long Does it take to get an Agreement in Principle? 

It is possible to obtain an Agreement in Principle within 24 hours of getting in touch with an experienced mortgage advisor in Cambridge.

How Long Does an Agreement in Principle Last?

Typically, an Agreement in Principle will expire after 30-90 days. The good news is that this doesn’t mean you should apply for the first house you find. If your Agreement in Principle expires, it’s not difficult to obtain another ahead of making an offer.

Finding a mortgage only to be declined a mortgage can cause understandable disappointment. With this in mind, we recommend getting an Agreement in Principle as early as possible.

Cambridgemoneyman.com & Cambridgemoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited registered in England, registered number 6789312 and registered office 10 Consort Court, Hull, HU9 1PU.

© 2021 Cambridgemoneyman

Cambridgemoneyman, Nine Hills Road, Cambridge, CB2 1GE.

Moneyman Logo







Moneyman Logo




Moneyman Logo

Ask Your Question





    Moneyman Logo

    Moneyman Logo







    Moneyman Logo

    Book your Free Consultation

    7 Days 8am - 10pm

    Moneyman Logo

    Moneyman Logo