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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
It is possible to obtain an Agreement in Principle within 24 hours of getting in touch with an experienced mortgage advisor in Cambridge.
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.
A credit score is a numerical value that lenders use to determine your affordability for a mortgage, loan, credit card, etc. Although different lenders have different credit scoring models, the credit score that will be listed on your file will usually range from 300-800+.
If you have a credit score above 670, it’s likely that a lender will see no problem lending to you. On the other hand, if your score is less than 670, you may struggle to get the competitive deals that other applicant’s with a higher score are accessing.
As a Mortgage Broker in Cambridge, we deal with specialist cases all of the time. It’s often the case that mortgage applicants come to us after being declined by their bank due to a low credit score or something similar. Our job is to step in and help these struggling customers and their application back on its feet.
There are lots of different reasons why you could have a low credit score. The most common reason that we come across is that the applicant is the subject of a county court judgement (also known as a CCJ). If you fail to repay a loan/borrowed money, it’s likely that you will get a CCJ. A CCJ can leave a harmful dint on your credit file for 6 years or more, so we strongly advise that you make sure that you pay off your debt before applying for credit. It will undoubtedly pop up on your file and the lender will start asking questions.
Failing to stick to credit agreements can be bad too. Failing to keep up with your mobile phone contract payments will even cause damage to your file. Sometimes the little things can cause damage too, for example, dipping into your overdraft every month could cause a long term negative effect. Even using price comparison websites can sometimes impact your score.
These are just a few things that could negatively impact your credit rating, there are lots of other reasons to why you could have bad credit, however, our job is to help you improve your score so you get the chance to move into your dream home! There are multiple ways to improve your score to try and get you up into that next bracket that lenders will be looking for. Don’t give up just because you have a low score, it’s still possible to secure a mortgage in some cases!
Trying to improve your credit score can be a difficult task, but with the help of this handy guide, you may just be able to level it up a notch. We must warn you that every lender has their own lending criteria so your score may impact what deals you can access. This also means that just because you have a great score doesn’t mean that you’ll match every deal, it’s sometimes down to personal circumstances. At the end of the day, it’s all up to your lender and their criteria.
Every time that you go directly to a lender and their in-house mortgage advisor puts you through for a deal, they will perform a soft or hard credit search on you, and this search will leave an imprint on your credit file. If for any reason, your application is declined, the credit search performed could have a negative impact on your credit score. Multiple searches may lower your chances of getting accepted for a mortgage in the future.
This is where a Mortgage Broker in Cambridge will come in handy. Here at Cambridgemoneyman, we aim to get it right the first time, which means that we will take a look at your credit score and only approach lenders that hold criteria we know that you will pass.
Applying for credit can sometimes backfire on you, especially if you don’t have a reason for doing so. If you can pay back the credit that you’ve borrowed, it may look good on your application, however, flip the situation on its head, and your credit score could end up in trouble if you fail to meet the credit payment deadline.
During your mortgage application, we strongly advise that you hold off applying for credit. In some cases, you may be able to get away with it, but in other scenarios, lenders may believe that you are struggling for money. They could think that you are putting it towards your deposit or using it to aid your mortgage payments.
Here’s a nice and easy way to improve your credit score; make sure that you are registered on the voter’s/electoral roll. Being registered on the roll shows that you are who you say you are. All you need to do is go to the government’s electoral roll page, it’s easy to get registered from there. This could be a great way to boost your score!
You must provide accurate information when registering on the voter’s/electoral roll, so make sure that everything is filled out correctly. You will need to use your current living address, not your previous address.
During the mortgage application process, we always recommend that you check that all of your accounts and details are linked with your current address. This won’t affect you as much if you are a First Time Buyer in Cambridge and this is your first application. However, if you are Moving Home in Cambridge from rented accommodation and you still have your parents address linked with any of your accounts, your lender will pick up on it straight away. This is why it’s important to change your addresses and make sure that they’re up-to-date before applying. Being linked to a wrong address could impact your credit score.
If you go down the broker route, your Mortgage Advisor in Cambridge will help you out with this step. They will make sure that everything is updated with you to ensure that you have the best chance possible of being accepted for a mortgage.
Maxing out your credit card(s) each month will heavily impact your credit score. Your lender will like it if you can pay off your credit card balance each month as it shows that you can manage your money.
If a lender can see that you are exceeding credit card limits and always dipping into your overdraft, they may think that you don’t take your finances seriously. This could threaten your ability to get accepted by them.
If you are still financially linked to an ex-partner or family member, your credit score could be getting harmed without you even knowing. If the account is still active and live, you won’t be able to remove your links. The only way to remove your link is if you get in touch with the credit reference agencies and make a request.
Depending on the lender and how strict their lending criteria is, they may be lenient and allow some wiggle room. If there are some personal reasons involved, your lender may be considerate and factor them into your application, it’s entirely up to them what they do.
A Mortgage Broker in Cambridge like us will always be transparent with you and factor in every bit of detail. Even if you have a score that is on the lower end of the spectrum, our hardworking team of Mortgage Advisors in Cambridge are still determined to try and secure you a deal that will suit you. We have access to specialist mortgage deals through our huge panel of lenders; we are sure that we will find one that matches your mortgage needs.
If you need further assistance or Credit Score Mortgage Advice in Cambridge, feel free to get in touch with our team.
Divorce can wreak havoc on your emotions, finance, and of course, the home you embellish with love. But instructively speaking, it should not be taken as a stressful event, instead of a process that needs considerate handling. At times, it may be confusing and even daunting when legal implications get in the way. In the line of reasoning, the most important being managing your finance and mortgage. That’s why getting Specialist Mortgage Advice saves the day. So, let’s dive in and learn everything you need to know about divorce and separation when having a Mortgage Advice in Cambridge.
At Cambridgemoneyman, we believe in sharing our first-hand knowledge with our clients that helps them tackle their mortgage-related legal matters. This guide contains practical information about most of the queries that our clients are anxious to ask. Our Specialist Mortgage Broker in Cambridge has answered the 3 most important and commonly asked questions. We understand your hesitation and hope that the detailed answers will make it easier for you to take the first step towards settlement.
So, let’s get these questions answered one by one…
Joint investment in a home is a huge commitment on a financial basis and needs to be dealt with carefully. Similarly, removing a name from the mortgage or any other changes can be strenuous unless you come to the end of your mortgage term.
When you are a family and have children involved, things can get a bit more complicated. In most cases, the mother gets hold of the property. Whoever agrees to reside in the house is the most likely to take full responsibility for the mortgage.
If you want to remove your ex-partner’s name from the mortgage, you need to provide solid proof that you can afford your own mortgage payments by yourself. Lenders will keenly study your salary, expenses, disposable income and then decide if you can hold your own mortgage or not. Moreover, they will also check your ex-partner’s credentials to decide whether he/she will be able to go forward with their mortgage or not.
Finally, they will perform an assessment on your credit file before coming to a decision. More importantly, since the mortgage was in partnership, the lender can follow you both in the mortgage arrears list.
The same process follows if you want to remove your name from the mortgage. However, the scenario is a bit different and tough for those who prefer to vacate the house. Removing your name from the mortgage requires duly signed consent from you and your ex-partner. Again, the lender needs to carry out a detailed affordability assessment to confirm whether your partner can manage the installments on their own or not.
If your partner agrees to remove your name from the mortgage and can afford the payments, you are clean to look for your own place. When you move into a new place, your lender will consider your former mortgage payments. But the fact is not all lenders are the same as some are more strict than others and rarely consider your state of affairs.
Hence, you need to try and find the right lender for you, and that’s exactly where we come in. Cambridgemoneyman not only provides you with divorce and separation Mortgage Advice in Cambridge but also will help you find that perfect lender for your own circumstances.
Yes, you can have multiple mortgages and properties as long as you can afford to pay for them. Once you apply for a new mortgage, your lender has the power of decision. They will take an affordability test that includes checking your credit profile before acceptance. When checking your file, your lenders have full access to check all the mortgages that your name is under.
They will try to figure out how much you contribute to these mortgage payments. Finally, they will decide whether you can manage the new mortgage expenses or not. They make the final decision by even following the other financial commitments to your credit.
Furthermore, the lenders will also account for the likelihood and the risk factors for your house’s repossession. If they find you high risk, they won’t take the chance and you may be declined. On the other hand, as a Specialist Mortgage Broker in Cambridge, we have the solution to all your problems.
You can get an affordability check at our Mortgage Broker in Cambridge before connecting with a mortgage lender. At Cambridgemoneyman, we analyse your affordability first so that you can make a final decision.
We have Specialist Mortgage Advisors in Cambridge with years of experience with both class and professionalism. Reach us out for any divorce and separation Mortgage Advice and assistance. Our amazing team of dedicated field specialists will be more than happy to help.
If you are a First-Time Buyer in Cambridge or are looking at Moving Home, you will know that several forms of mortgages are available. Some of them are more common than others, and some may even be difficult to find. We have assembled a list of some of the most common forms of mortgages. You will also find one of our MoneymanTV episodes useful for learning more about these.
A fixed-rate mortgage means that for a specified time, the mortgage rates will remain the same. You should decide your period, usually 2, 3, or 5 years or more, for your payments. You know your mortgage balance will typically be the largest outstanding one, regardless of inflation, interest rates, or the economy.
Your interest-rate shall track the base rate of the Bank of England by using a tracker mortgage. In other words, the lender does not fix the rate itself. You pay a sum above the base rate of the Bank of England. An example of this is where the basic rate is 1%, and you are tracking at 1% more than the basic rate, you pay 2%.
If you carry out a repayment mortgage, you pay capital and interest together every month. So long as you carry the full term of the interest loan, you will pay the mortgage debt at the end, and the property shall be yours. This is the risk-free way of paying the lender back the money.
The interest you are paying in the early years, and particularly with a period of 25, 30, or 35 years, your balance would decrease very slowly. In the last 10 years or so, this scenario changes, where your payments pay more capital than interest and your balance falls even faster.
While some transactions allow mortgages on an interest-only basis, residential property is even more difficult to obtain on an interest-only basis. Lenders are also less likely to sell a product that is interest-only. However, it may be an alternative under some conditions.
This involves reducing the amount of money you pay out as you’re older or have other savings. When it comes to offering these items, lenders are very strict now, and the valuation loan is much smaller than before.
You can build a savings account alongside your mortgage account for an offset mortgage. How this works, is you pay interest on the difference, for example, you pay £80,000 for the balance of £100,000, and £20,000 is deposited in your bank account. This can be a very successful way to manage your capital.
Have you ever considered starting your mortgage journey over the Christmas period? Christmastime is becoming the best time of year to begin surfing properties; and this is all down to the new year rush.
As a Mortgage Broker in Cambridge, we see an influx of mortgage applications every single January.
So, what we advise is to get prepared and start the race ahead of everyone else, it may put you in front of other competitors trying to snatch up the same home as you.
The property market is always at its busiest during January, as everyone wants that “new year, new home” feeling. This means that in December, there are a lot more mortgage opportunities about for you to take advantage of. There are less people in the market as they are more focused on Christmas and are saving their mortgage application until January.
As a friendly and professional Mortgage Broker in Cambridge, we are very understanding, and we know that Christmas can be a stressful time of year… this is where we come in!
Cambridgemoneyman is a Mortgage Broker in Cambridge that will sort out your application for you and get everything in place so that the process is stress-free! Getting in touch and claiming your free mortgage consultation could potentially put you in front of thousands of other applicants in Cambridge.
You should consider that if you were planning to start your First Time Buyer mortgage journey in January, if you were to start in December instead, the process will still span into next year, it just gets you ahead of the game.
If you approach a Mortgage Broker like us for Mortgage Advice in Cambridge, our team will look after you from start to finish and provide full support and guidance during every step you take.
The process may also be a lot faster than it you were to start it in January; having a Mortgage Advisor in Cambridge by your side nice and early on could prove extremely beneficial.
If you are planning on Moving Home in Cambridge, we would still recommend sorting out the arrangements of selling your home in December.
This would lead to you having everything organised so that in January you will have your home photos finalised, your preferred estate agent chosen and a signed agency agreement – which are all key components to selling your home. We will help you with all of this by the way!
Now that all these things are sorted, you can now begin searching for a home between Christmas and new year straight away.
If you are lucky enough to receive a gifted deposit from a family member or friend for Christmas, you should get on with your application as soon as possible. From Christmas to the new year. You still have a week to get your application started and get ahead of the game.
As a Mortgage Broker in Cambridge seeing an increase in gifted deposit mortgages. We would expect that this Christmas they are going to be more popular than ever!
With house prices rising, there are also more hardships involved for people who are currently searching the property market whereas gifted deposits can help ease the stress of financial worries, specifically the deposit.
Therefore, people tend to get help from their family so they can take that first step onto the property ladder.
Now that you know that Christmastime could be the best time to start your mortgage application. You will receive full help and guidance from an expert Mortgage Advisor in Cambridge.
Are you considering approaching a Mortgage Broker in Cambridge? In Cambridge, we offer a free mortgage consultation to every single customer, no matter their mortgage situation.
So, don’t hesitate to get in touch with your expert Mortgage Broker in Cambridge this Christmas. We cannot wait to hear from you!
Believe it or not, your bank statements are some of the most important documents that you will need to provide for your mortgage application. They can be the deciding factor to whether or not you’ll be accepted for a mortgage.
When you give your lender your bank statements, you can expect them to look for a variety of things. However, their primary objective is to assess whether you are the sort of person who manages their money responsibly and is likely to keep up with their mortgage payments.
As a Mortgage Broker in Cambridge, we get a lot of different questions from applicants regarding their bank statements and what lenders will look for. Although, one question stands out the most: “Do gambling transactions look bad on my bank statements?”. Here are some of the most common questions we get asked about bank statements:
Whether you have an annual flutter on the grand national or regularly use internet betting sites, clearly there is nothing illegal about property licensed gambling. We are aware that a lot of people gamble as a hobby or pastime and there is nothing wrong with it. However, you still need to be careful with how much you gamble and that’s why the gambling agencies urge customers to “gamble responsibly”.
This is something to keep in mind when applying for a mortgage. A lender may be put off if they see that you are frequently gambling and risking losing your money. Of course, you shouldn’t let a lender tell you how to live your life and spend your money, but they do have a right to turn you away based on this factor. They also have a duty to lend responsibly.
If lenders need to prove to the regulators that they are making prudent lending decisions, it isn’t entirely unreasonable of them to expect the people they lend to adopt a similar approach when it comes to their personal finances. If you think that this is unfair, just think about it… If you were lending your own money would you lend it to the applicant who gambles or the one who doesn’t?
Like we mentioned above, it’s not illegal to gamble, so it’s very unlikely that the occasional gambling transaction on your bank statements will impact your mortgage application. Your lender will determine whether these transactions are reasonable and responsible. They are going to look at how often you gamble, the size of the gambling transactions in relation to your income and the impact that gambling has upon your account balance. If you are dipping into overdrafts from gambling, lenders will not be too happy.
If you gamble infrequently, these transactions will make no significant difference to whether or not your lender will accept you for a mortgage. They are likely to be disregarded by your lender. On the other hand, if you are constantly betting and going into your overdraft, it’s likely that a lender will see you as irresponsible and decline your application.
As a Mortgage Broker in Cambridge, we know exactly what lenders look for on bank statements and we know that you need to earn their trust. They are lending you their money after all. We never advise that you change how you spend your money, we just tell people to be responsible.
Your lender will examine everything on your bank statements, but what are they mainly looking for?
Remember, lenders are financial institutions that, either directly or as part of a wider group, often sell current accounts, overdraft facilities credit cards and personal loans, so understand that these things can all play a part in prudent financial planning. The key for a mortgage applicant is how these facilities are managed. For example, occasionally dipping into your overdraft, as long as you don’t overuse it, is not inherently a bad thing. However, regularly exceeding the overdraft limit is not so good. Thus, lenders will look for excess overdraft fees or returned direct debits because these would normally show that the account is not being well conducted.
Lenders will also look for large credit transactions from things such as loan agencies. Having “undisclosed” loan repayments on your record could be a problem, lenders will want to dig deep and try and find out how much you owe and how much will be going out each month. You will need to consider all of your other credit commitments before committing to another one.
Another important thing that lenders will look for is bounced direct debits. This is where a company tries to take money out of your account but you have insufficient funds so they can’t charge you. This usually happens when applicants forget about subscription services or memberships. So make sure that you avoid bounced direct debits in the months leading up to your mortgage application.
The most simple answer is to be sensible and, if possible, plan ahead. Most lenders ask for three months’ bank statements, so if you are applying for a mortgage in the near future, be wary of this.
These bank statements are going to show your salary credits and regular bill payments. So, you could even consider taking a break from gambling for a short time to make your bank statements stand out to lenders.
As a Mortgage Broker in Cambridge, it’s our job to help you through the mortgage process and view your application and bank statements before submitting them to a lender. If you go directly to a lender, they may decline you straight away and that’s why we recommend that you get a second pair of eyes on your application. We might spot something that you missed; a lender wouldn’t help you out with that!
If you are a First Time Buyer in Cambridge who doesn’t know a lot about the mortgage process and want to us to double-check your documents, you should get in touch and claim your free mortgage consultation. A Mortgage Advisor in Cambridge will be more than happy to try and steer you and your mortgage application in the right direction.