Top Tips – Things You Need know, to get yourself Pre-approved for a Mortgage

When you are thinking about buying your home it is a very exciting time, but it can also be a stressful one too. There are certain things to consider such as deposit amounts, fees, mortgage approval (a Mortgage Agreement in Principle). This article is a basic guide to help you and focuses on 5 things that you need to organize / arrange to help you get your mortgage approved and buy your new home.

Things You Need To Get Yourself Pre Approved For a Mortgage

Proof of your Income

You will no doubt be aware that you will need to produce recent wage slips if employed or tax calculations and overviews, if self-employed. The lender will want review and assess your income to ensure that the mortgage you need is affordable.

Top Tip – ensure that you can prove your income and have either your last 3 months pay slips and P60 available. Or is self Employed ideally 2 years tax calculations and overviews. Have your last 3 months pay-slips or tax calculations and overviews to hand before you apply.

Proof of Deposit

As a borrower, you will need a deposit to purchase your home. Typically, a minimum deposit of 5% would be needed (as a minimum). However, within the Covid 19 Pandemic, many lenders increased their minimum to 10 or even 15%. It is worth noting that the larger the % deposit generally the lower the interest rates on offer from the lenders.

Lenders will also accept gifted deposits from close family members, who would like to help you get on the property ladder.

Top Tip – be able to prove your deposit and where it has come from. All deposit funds will need to be verified from where the funds are coming from and who, so you will be asked to provide evidence of where the deposit has come from and identify the people gifting the money.

Your Credit Rating / Profile

The credit profile of all borrower(s) will usually be considered. However, this is dependent on the lender, most high street lenders will generally require your credit profile to be in good order. If your credit score has been affected by missed or late payments, defaults or    CCJs it is likely that you will not be accepted by high street lenders and you may need to approach a more specialist lender.

Top Tip – the higher your score, the better your chances of borrowing success. So, it is important to ensure that you maintain a good credit profile. Generally, the better you credit profile the more likely you are to gain a mortgage and potentially a lower interest rate. Register yourself with a credit reference agency, review your profile, correct any errors and work on improving your status (if needed).

signing documents for a new home

Employment

Lenders want to ensure that any mortgage offered is affordable both now and in the future. Stability of employment and income, as well as not trying to overstretch your borrowing requirements will assist in gaining your mortgage approval. This applies to both employed and self-employed mortgage applicants.

Lenders will generally be sceptical of 2nd jobs, especially where the new job has only been taken on recently. A short term 2nd job can be viewed by the lender as “staged Income”, meaning that the lender may suspect that a job has only be taken on to try and improve the size of the mortgage loan available.

Self-employed applicants will with most lender be required to provide 2 years tax calculations and overviews. So, you will generally have had to submit 2 years of Tax Assessments. There are though a few lenders who may consider 1 years of confirmed figures.

Top Tip – be realistic about how much you want to borrow. Lenders affordability calculations differ greatly, therefore speaking with My Mortgage & Protection Experts and getting them to confirm your maximum loan will put you in a more informed position.

Other Documentation

Other documentation will also be required, such as proof of identity and proof of address. A valid in date passport or Driving License are ideal, make sure the documents are valid.

Make sure that you are registered on the voter’s role where you live. Also, make sure that things like your driving license have your latest address on as well as other household bills.

Top Tip – make sure your ID and Proof of Address are in date. Proof of address supplied to support a mortgage application will be required to be dated within 3 months of the application. Get organised and have all your documents to hand prior to arranging your mortgage.

Typical Supporting Documents Required (per applicant, where applicable)

  • Latest 3 Months Bank Statements
  • Latest 3 month Pay Slips or 2 years Tax Calculations & Overviews (if self-employed)
  • Proof of your address (typically a household bill)
  • Proof of your Identity (Passport or Photocard Driving License)
  • Proof of Deposit Funds

Ultimately, if you have everything that the lender requires, and you are in a strong, solid situation financially, you have a good chance of getting your mortgage Agreed in Principle.

 Top Tip – get organised and get all you required documentation ready.

Final Top Tip – review all the Top Tips, get your documents organised and available. Then speak with a professional mortgage broker like My Mortgage & Protection Experts Ltd. A professional broker will be able to guide you on a wide range of lenders, meaning you get access to a wider range of products and rates. Equally all lenders have different lending criteria and affordability calculations. Speaking to us could improve your chances of getting the mortgage require.

If you would like to find out more about mortgages for you or would like to find the best mortgage deal for you, contact us today on 03300 949 409, or visit our mortgage calculator.

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Residential Property Review – March 2021

Stamp Duty holiday extension

In his Budget on 3 March, Chancellor Rishi Sunak confirmed an extension to the Stamp Duty holiday in England and Northern Ireland. Rather than ending on 31 March, as originally announced, the nil-rate threshold for Stamp Duty will remain at £500,000 until 30 June.

The extension means that buyers will save a maximum of £15,000 and an average of £4,500 each, if they complete their property purchase by the end of June.

To avoid a sudden cliff-edge, the tax will then taper to £250,000 until 30 September, before returning to £125,000. This means that those who finalise a property purchase between 1 July and 30 September will save up to £2,500 each. According to Zoopla, ‘the tapering move by the Chancellor means that nearly half of sales in England will be free of Stamp Duty. Last year, some 46% of all home sales were for properties of up to £250,000.’

The threshold for first time buyers will remain at £300,000. In Scotland, the LBTT holiday is due to end on 31 March and in Wales, the £250,000 LTT threshold will revert to £180,000 on 1 July.

Mortgage guarantee scheme set to launch

The government has pledged support to more people who want to buy a property with a smaller deposit by launching a new mortgage guarantee scheme.

The initiative, available to both first-time buyers and home movers, will be available from April and will run until 31 December 2022, operating in a similar way to the previous Help to Buy mortgage guarantee scheme. The scheme is available on properties up to £600,000.

The aim of the scheme is to increase the availability of 95% loan-to-value (LTV) mortgages, by allowing lenders to purchase insurance from the government to cover some of their losses if the property is repossessed, thereby reducing the associated risks of this type of lending.

A number of lenders, including Lloyds, NatWest, Santander, Barclays and HSBC have already signed up to the scheme.

Richard Donnell, research director at Zoopla, commented on the scheme, “Our analysis shows the scheme will have the greatest benefits for buyers in lower value housing markets in northern England and Scotland where a 95% mortgage is more attainable.”

Strongest spring housing market for a decade

According to Rightmove, the excess of buyer demand over supply is the largest seen in the last 10 years, which, it is suggested, could see one of the best-ever Easter periods for sellers.

In February, Rightmove recorded seven million online visits a day, which is an increase of 40% from February 2020. In addition, the number of sales agreed for the first week of March were 12% higher than a year ago, despite fewer properties coming to market and almost two out of three properties currently on estate agents’ books are currently sold, subject to contract.

Tim Bannister, Rightmove’s housing market expert said, “So many sales have been agreed in recent months that we now face a serious shortage of homes available for sale. There are lots of reasons why many homeowners have hesitated to come to market during the first two months of the year, but these do now seem to be dissipating.”

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Residential Property Review – February 2021

House Price Growth Slows

Several recent reports have confirmed that house price growth is slowing, but there are reasons to believe that the housing market will be more stable than last year.

According to Knight Frank, the third lockdown and the imminent end of the Stamp Duty holiday have played a major part in delaying a certain amount of activity until the spring, which could result in some short-term downward pressure on prices, as more sellers come to the market at the same time. Over the course of the year, Knight Frank expects prices to remain flat and for there to be steady, seasonal demand after the summer as the vaccination rollout nears completion.

In January’s ‘UK Residential Market Survey’, the Royal Institution of Chartered Surveyors (RICS) expects all UK regions will see prices rise to some degree over the next twelve months, with Northern Ireland, Wales and Scotland expected to see the highest rises.

Nationwide’s Chief Economist Robert Gardner commented on the rate of growth, “The slowdown probably reflects a tapering of demand ahead of the end of the Stamp Duty holiday.”

Nearly 750,000 buyers benefit from Stamp Duty holiday

Almost three-quarters of a million homebuyers are in line to benefit from the Stamp Duty tax break, assuming they beat the 31 March completion deadline. This represents total savings of almost £5bn.

The analysis, from Zoopla, is broken down further; 600,000 buyers will not pay any Stamp Duty, which is an average saving of £4,660 each or £2.8bn in total. A further 140,500 people whose homes cost over £500,000 are set to benefit from a Stamp Duty reduction and will save £15,000 each or £2.1bn collectively. This latter group will still have to pay tax on the portion of the property value above £500,000.

Rightmove have reported rumours that the tax break may be extended in England and Northern Ireland by a further six weeks. If this were to be the case, Rightmove estimate that between 120,000 and 160,000 extra property transactions in England could benefit.  

Property Data Expert at Rightmove, Tim Bannister commented “If there was a six week extension it should give the majority of the sales from last year the chance to complete in time”     

Regional variations in values of family homes

After three lockdowns and an increase in those working from home, many people have been reassessing their housing priorities.

Research by Zoopla has looked into which regions have seen the biggest jump in values of three to five-bedroom houses, finding that family homes in the Midlands have seen the biggest jump in value over the last four years. First place goes to East Midlands, with a sq ft price increase of 25.4%, or £43, to stand at £212. West Midlands takes second place, seeing a rise of 24.6% to reach £223.

Wales came third, with an increase of 23.6% per sq ft, followed by East of England (21.4%) and North West (21.3%).

London came ninth, with a percentage rise of only 14.6%, but unsurprisingly, also seeing the biggest monetary increase, with a jump of £71per sq ft to stand at an average £558.   

House Prices Headline Statistics
House Prices Price Change By Region
Average Monthly Price By Property Type - December 2020
The House Market And The Economy
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Contains HM Land Registry data © Crown copyright and database right 2017. This data is licensed under the Open Government Licence v3.0.

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.

2021 Spring Budget

We have sought to pick out all the key points from the Spring Budget on 3 March, including:

Economic forecasts

COVID-19 support measures

Personal taxation, wages and pensions

Business taxes

Housing

Environment and ‘Help to Grow’ initiatives

Other key points

Closing comments

We do hope that you find this update both interesting and informative. Should you have any queries or require more information on any of the areas covered or any other financial matter, please do not hesitate to contact us.

Mortgage Broker Versus Direct to Mortgage Lender

Let us have a look at the differences between seeking advice from a Broker versus direct to a lender.

There are many differences but let us explore the key ones.

Available Mortgage Schemes / Choice

Direct to Lender – Each lender will have access to their own products only they cannot advise all recommend another lenders products. After all, why would they?

Broker – Independent brokers will generally have what is called, “whole of market access”, this gives the broker access for their clients to many different Banks and Building Society Lenders. There are approximately 100 mortgage lenders in the UK.

Some lenders will not be available to all brokers as they may be direct to consumer only. However, an Independent Broker can advise you on the schemes that they may not have access to. There would generally be a small fee for this type of independent advice.

Accessibility

Direct to Lender – Lenders may often want you to attend mortgage appointments in branch at a time convenient to them. More lenders are adopting online processes to speed up the process, however it may still take a few days and sometimes weeks to arrange a suitable time.

Broker – Brokers are generally more accessible and therefore appointments can often be made for the same day. Many brokers will offer telephone or online meetings to make the process of assessing your requirements more convenient.

Mortgage Advice

Direct to Lender – A lender can only advise you of the products that they have available and are limited to their set criteria and affordability assessments.

A lender will generally only give advice on the mortgage product and term and assurance products most often from a single insurance provider.

Broker – A broker can advise you on the products available from the whole of market, therefore giving you access to a far wider range of available products and criteria.

A broker will advise on the home buying process, gaining a Mortgage Agreement, mortgage products, instructing conveyancers and insurance from generally a whole of market offering.

House on top of money

Saving you the most Money in Interest Payments

Direct to Lender – A lender can only offer their own products at every stage of your mortgage journey.

Broker – A Broker will generally review your mortgage options at key stages of your mortgage journey, these reviews normally take place when you are reaching the end of a scheme period, such as a fixed rate ending. Whilst a lender may initially have the best deal for you, it is unlikely that they will continue to have the most cost-effective scheme throughout your mortgage term, So, switching lenders can often save you £100’s if not £1000’s over the term of a mortgage.

What to Do If a Mortgage Application Is Declined?

Direct to Lender – a lender will only offer a mortgage based on the mortgage applicant(s), meeting their affordability and criteria checks in full, and provided that the property is suitable as security for the loan.

If the lender is not satisfied with any element of their robust checks, then even if you have had, an agreement in principle, the lender could still refuse to offer the mortgage. This means starting the mortgage application process again from the start.

Broker – when a broker carries out initial research and assessment. They will perform criteria and affordability checks. This means reviewing the mortgage applicant’s documentation and assessing which lenders would be suitable for the required mortgage and applicants.

If the lender does decline a mortgage application, then in most cases the broker will know why. This then makes it easier to find an alternative solution and lender that can/will assist with lending. This will generally make the reapplication process much quicker for the mortgagee.

Protecting your new home

Direct to Lender – when buying a freehold property a condition of your mortgage will be to arrange suitable buildings insurance. You may also consider important aspects such as life assurance.

Most lenders will have a sole tie arrangement with insurance companies and not a whole of market offering.

Broker – Protecting you and your new home is seen as an important aspect of the advice journey and process.

Brokers will generally have “whole of market”, access to insurance companies and can therefore provide you with recommendations and advice based on a range of different products and providers.

My Mortgage & Protection Experts are specialist Independent Mortgage Brokers. Our ethos is ensuring that our clients benefit from quality, professional mortgage & protection advice.

It is important to work with our clients on an ongoing basis to advise on suitable mortgage products that will focus on suiting their current needs and requirements plus focusing on reducing interest paid and repayment of their mortgage in as short a timescale as possible.

Protection of our clients is also a fundamental aspect of our advice process. Advising clients on how best to protect their home, their family, and their income.

Contact us today on 03300 94 94 09 to get started with finding the best mortgage for you.

The Value of Professional Independent Mortgage Advice

What are the benefits of professional Independent mortgage advice and how can you measure the value of advice?

We have put together a series of posts. focused on advice and how it will benefit mortgagees. We have broken down the key areas to focus key wins.

The Mortgage Market

The mortgage market is complex with all lenders having different market specialisations, product offerings, rates, types of property they will lend on and believe it or not even geography can play a part. Plus, lenders may often use more complex calculations to establish what they consider to be affordable and can have very differing criteria from each other.

Reviewing the best rates available on a comparison site will give information on potentially the best priced deal at that moment in time for individuals who match all the lenders criteria. This can often mean that when searching for the ideal product for your situation, it is not always about rate.

Finding the right mortgage for your personal situation is about taking into consideration your personal objectives and situation, then factoring in the differing lender criteria and establishing which lender and scheme will you fit with?

Equally, if you are fortunate enough to fit with the market leader. Another consideration could be your mortgage term. Your term is likely to be a period of perhaps 10-40 years. Is it likely that the market leader, be offering their existing client’s market leading rates at the end of the next specialised rate period such as a fixed rate ending or indeed for the next 10-40 years?

It is, almost guaranteed that the lender will not be the market leader for your mortgage term. Therefore, reviewing your options and benefiting from professional advice on a regular basis will in most cases assist you make the right decisions for you. Making sure that you benefit from savings on interest and overall payments made.

signing documents for a new home

What does an Independent Mortgage Broker do and how can they help?

A professional independent Mortgage Broker will assist you in many ways, examples being:

Listening to you and establishing your requirements and needs

Assessing your personal situation and helping you to find the lender who will lend to you, where you meet their criteria and offer you the loan amount you need.

Advising you on all aspects of your mortgage such as overall costs, term, and scheme period.

Helping to explain the jargon involved in home buying process and aspects such as the conveyancing process (the legal aspect of your purchase)

A good broker will generally speed up the process of finding the right lender for you and assist you in gaining a Mortgage Agreement in Principle. This is prior to making your mortgage application for you.

Recommending related insurance products to protect you and your new home. Insurances such as Buildings & Contents, Life Assurance, and Income Protection.

Listening, Assessing, Advising, Helping, Speeding up the Process, Recommending

My Mortgage & Protection Experts are specialist Independent Mortgage Brokers. Our ethos is ensuring that our clients benefit from quality, professional mortgage & protection advice.

It is important to work with our clients on an ongoing basis to advise on suitable mortgage products that will focus on suiting their current needs and requirements plus focusing on reducing interest paid and repayment of their mortgage in as short a timescale as possible.

Protection of our clients is also a fundamental aspect of our advice process. Advising clients on how best to protect their home, their family, and their income.

Contact us today on 03300 94 94 09 to get started with finding the best mortgage for you.

How Long Does a Mortgage Application Take?

Applying for a mortgage can be stressful enough for many people – however, it really doesn’t need to be! When looking around for the best mortgage deals, you’re going to need to make sure you compare and contrast between friendly services who can help guide you through the whole process. One of the most common questions mortgage lenders are asked from application to application is, of course, how long does the mortgage application process take?

There are many different factors which go into mortgage applications of all shapes and sizes. However, there are some routes through fast mortgage approvals which could help you claim the keys to your new home sooner than you might imagine. Fast mortgage loan approval might not always be guaranteed from lender to lender, however, it’s important to keep an open mind about how long the application process can generally take. 

How Long Will it Take for my Mortgage Application to be Approved?

On average, it will likely take a UK mortgage application up to one calendar month to process. This means, from end to end, it could take up to five weeks for you to hear whether or not you have been successful.

However, do keep in mind that this is purely an average or aggregate figure. You may find that from between applications to offer, you could have an answer in as quickly as three weeks.

The reason why this takes time to process is that there is plenty of paperwork to fill in and process! Not only will you need to undergo a credit check, but your application will be means-tested, and there will need to be various pieces of bureaucracy to complete along the way.

This is all necessary, however – as it means you can be sure your offer is protected, and that your lender has taken the time to understand your position. It is much better to give lenders time to consider your application than to accept a ‘no’ without any kind of background work!

signing documents for a new home

Is it Possible to Speed up the Process?

In some cases, it is entirely possible to speed up the mortgage application process. Your circumstances may dictate how quickly this will actually take effect; however, some lenders will be able to streamline the paperwork and bureaucracy for you.

At My Mortgage & Protection Experts, we work hard to make sure that all our applicants receive the smoothest, most efficient application process possible. While there are always going to be processes and red tape to cover, we work hard to ensure that you’re not kept waiting unnecessarily from step to step. It’s in everyone’s best interests to keep the mortgage application efficient, but just as important to ensure that it remains accurate.

Therefore – if you’re struggling to push ahead with a mortgage application, why not reach out to a leading mortgage lender who can help you get access to your dream purchase sooner rather than later? Let My Mortgage & Protection Experts help you access the best deals with accuracy and efficiency today.

Contact Us Today

Give us a call on 03300 94 94 09 or please feel free to fill in the enquiry form on our contact page today.

How Does a Remortgage Work?

Remortgaging is something that people go through all the time. But what does a remortgage mean in practice? What are the actual benefits of remortgaging a property – and when can you remortgage at all? Some of the processes can seem a little confusing at first, which is why we’re here to help break things down a little for you.

Continue reading “How Does a Remortgage Work?”

Why is an agreement in principle so important?

In this blog, we’ll explain what an agreement in principle is and how it can benefit you as you look to buy or move home.

The changes in government guidelines around social distancing are potentially making it easier to move home. So, if you are looking to move, it is a good time to speak with a professional mortgage broker.

A Mortgage Broker can assist you with reviewing your mortgage options in what is a challenging time with lending criteria. So, gaining a Mortgage Agreement in Principle has probably never been more important.

Why is an Agreement in Principle important?

An agreement in principle shows that you are serious about your intentions to buy and that you have done your homework. Both property sellers (vendors) and Estate Agents are far more likely to accept an offer on a property where the prospective purchaser has an agreement in principle.

Having taken steps to arrange your Mortgage Agreement in Principle will also generally speed up the mortgage process and gaining a mortgage offer.

You may have heard of an agreement in principle being called:

A Mortgage in Principle

Decision in Principle

Approval in Principle

Mortgage Promise

Agreements are a confirmation from a lender/broker stating that a lender will potentially lend a certain amount to you before you’ve finalised the purchase of your home. We say “potentially”, as a full mortgage application will involve a full underwriting assessment by the respective lender of all information, supporting documentation and a property survey / valuation. This cannot be achieved by completing a Mortgage Agreement in Principle.

It should be noted that many online agreement, systems and processes will take only basic information and do not request supporting documentation for review. These very basic assessments may be misleading as only basic information is assessed.

picture of a wooden house sitting on money

What are the Steps to gaining a Mortgage Agreement in Principle?

 A mortgage agreement can be gained from individual lenders; however, it is important to note that online systems will only take account of the information that you supply and give you access to the individual lenders decision-making and equally products.

 Mortgage brokers will give you access to a wide range of lenders and their differing criteria and affordability assessments. This will generally give the mortgagee a wider range of options to consider.

 Information required to undergo a full mortgage agreement are details, such as;

Address history

Employment information

Income

Family / Dependents

Financial Commitments / Existing Mortgage Commitments

Credit history

Supporting documents would also be required by most lenders when applying for a mortgage and it makes sense to get these reviewed by a professional during the Mortgage Agreement process.

By taking this step, it will make the accuracy of the research more exact. Equally, this will dictate which lenders will potentially accept an application based on the amount of loan required. Typically documents required will consist of the following (but are not limited to);

Proof of ID

Proof of address

Residency status

Proof of income, last 3 months wage slips or 2 years tax calculations for self employed (for variable pay this assessment is imperative to give an accurate assessment)

Last 3 months Bank Statements

Cutting out these important steps could provide you with inaccurate assessments being made and lead to disappointment. Especially if a mortgage application is subsequently declined.

Why, it’s a good idea to get an agreement in principle?

A full mortgage agreement process undertaken by mortgage brokers will generally give you a better understanding of;

Can you get a mortgage?

How much can you borrow?

What interest rates are available to you?

How much will your mortgage cost?

What other costs are involved?

Getting a mortgage agreement completed early in the home buying process is an important step. If completed accurately it will give you parameters as to what potential properties are within your grasp.

An agreement in principle will give you the comfort of knowing that you have been professionally assessed for criteria, affordability and the recommended lender will have performed a credit check.

It will also offer some reassurance that you’ll be able to buy a property, especially if you have any concerns regarding elements such as your credit history.

A mortgage agreement in principle will typically last between 60 and 90 days, dependent upon the lender. If it expires before you need it, you can always re-apply, but be careful about requesting too many agreements in principle. Lots of credit searches could damage your credit score.

To get an agreement in principle, you’ll either need to approach a mortgage lender directly or apply through a mortgage broker, like My Mortgage & Protection Experts. A lender will only be able to make an agreement based on their criteria, affordability calculations and their credit score assessment.

A broker will be able to assess your position across a broad range of lenders, who will all have very differing criteria, affordability assessments and attitudes towards a credit profile.

It should be noted that you do not need to go through the full mortgage application process to get an agreement in principle. This will come once you’ve had an offer on a property accepted.

Gaining your Mortgage Agreement in Principle

Our team of mortgage brokers and para-planners are mortgage professional and are experienced in assisting clients to gain a Mortgage. Our aim being to find you the most suitable mortgage to meet your needs and requirements. Then to gain you a mortgage agreement in principle quickly.

 One of the first steps with My Mortgage & Protection Experts in being able to gain you an Agreement in Principle, is understanding your personal requirements This can then progress to providing you with personalised research. This is an important step to ensure that you gain an agreement with the most appropriate lender to suit your needs and circumstances.

We have 2 routes, firstly the Full Assessment (recommended) and secondly an online Mortgage Eligibility Check.

The Full Assessment would be our recommended route as this we can help you follow the processes already described in the paragraph “What are the steps to gaining a Mortgage Agreement”. This method will give you the most accurate assessment and results, schedule a time to gain your Mortgage Agreement in Principle

The My Mortgage & Protection Experts “Mortgage Eligibility Check”, will give you a quick indication as to whether we believe we can get you a mortgage (this is subject to credit score and financial assessment). This quick and simple process generally only takes a couple of minutes to complete and will give you an instant result once you have completed the online form. This process does not conduct a credit check so will not leave a footprint on your credit file. At the end of the process you can download your personalised Mortgage Agreement Certificate.

Our recommendation would be to engage in our more detailed assessment. By doing this you will benefit from personalised research and a full assessment. This will provide you a greater assurance that the mortgage you need is achievable. As a minimum, we would suggest that you need to supply all relevant information that a lender would require to assess during a full mortgage application.

Working with a broker like My Mortgage & Protection Experts will offer you a professional and personal service and protect you from unnecessary Credit Checks.

Note that generally, My Mortgage & Protection Experts do not charge you for gaining a Mortgage Agreement

 Other tools available to help with questions you may have;

How much will my mortgage cost?

How Much an I borrow?

Search for a Mortgage

Mortgage Eligibility Check

Schedule an Initial Mortgage Consultation

To find out more about how we can help you secure an agreement in principle, get in touch today:

Contact Us Today

Give us a call on 03300 94 94 09 or please feel free to fill in the enquiry form on our contact page today or Schedule a convenient appointment.

“A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.” 

Purchasing a Property | What You Need to Know

From everyone here at My Mortgage & Protection Experts, we hope you’re staying safe during this time. As government guidance is allowing estate agents to go back to work, this means you can start thinking about moving house or buying your first property again. Hopefully, this will be sooner rather than later.

As things are moving so fast at this time, we wanted to create an informative blog about purchasing a property. One that will hopefully explain everything you need to know. From applying for a mortgage to house insurance. And remember, even if you don’t plan on purchasing a property soon, it doesn’t hurt to plan. Plan: this is one of the best tips we can offer you.

So, without further ado, let’s get started:

Mortgage deals may not be available and lending is subject to individual circumstances and status.

Applying for A Mortgage

If you want to buy anything you need to have the right amount of funds. Obvious, right? When it comes to purchasing a property, however, it isn’t so simple.

To buy a flat or a house will cost more than most of us will have in our bank account at one time ever. So, how does anyone buy a property at all? The answer is with a mortgage.

A mortgage is a type of loan you take out against the value of the property you’re purchasing. You can take out a mortgage to buy either land or a house or flat. We’re going to discuss the different types of mortgages on offer and the benefits available. But, the general idea is you pay back a certain amount of the loan monthly over time. How much will vary depending on the type of mortgage you have taken out.

This can sound daunting if you’re purchasing a property for the first time, right? Of course, such a big financial commitment is going to feel intimidating initially. However, there are First Time Buyer Mortgage Schemes available and Guarantor Mortgages to assist first-time buyers. Help is also at hand to guide you through the whole process by speaking with our qualified and professional Mortgage Broker team.

Deposits

Typically, mortgages are available from 95% i.e. you put in a deposit of 5% for the property that you want to purchase. The deposit funds need to be available but are only put into the transaction when completing the purchase transaction (so right at the very end).

There are also schemes available such as ISA’s to assist you with saving for a deposit.

It should be noted, that generally the higher the level of deposit, the better the interest rate offered by the lenders will be. So, therefore, if you have a deposit of 10% compared to 5%, the 10% deposit would generally attract a better deal from the lender.

It should be pointed out that during the Covid-19 pandemic; Lenders have been more risk-averse. This means that they have generally wanted to see higher levels of deposits i.e. 10-15% as a minimum. As the markets gradually return to normality, we should see the return of 95% loans in due course.

First-Time Buyer Mortgage

If you’re purchasing a property for the first time have a look at our mortgage eligibility checker. This allows you to have an instant indication on whether you’re eligible for a mortgage. Without even having to speak to someone. The decision will be based around your financial position and a financial assessment.

If you’re eligible, one of the mortgage schemes that can help you to purchase a home is Help to Buy. A lot of young people trying to break out on their own will need financial assistance to purchase their first property. This is the reality of the world today for first-time buyers.

Help to Buy is a government scheme to assist first-time buyers to get mortgages for new build homes. As long as the value of the property being purchased is below £600,000. The scheme allows a first-time buyer with a deposit equivalent to 5% of the property value to be eligible for a mortgage.

So as an example, if you had a 5% deposit you would arrange a mortgage for 95% of the property value. The Help to Buy loan scheme (if eligible) contributes a further 20% deposit to your purchase. You therefore only need to apply for a 75% loan, meaning generally a better deal and a higher chance of application success.

The remaining money is paid for by a government loan. This is an interest-free loan for the first five years. At the end of the five-year period, you will need to either repay the loan or start paying interest on it.

Please note that we have focused the information on the Government-backed scheme for those buying in England. There are different schemes available if you are purchasing in Wales, Northern Ireland or Scotland.

Please note, this is only available for new build properties. Speak to one of our experts if you need further information.

This scheme is available in England only. The Scottish Government, Welsh Government and Northern Ireland Housing Executive run similar schemes – check out their websites.

Home Movers

Definitely, there is positive movement in the market and a lot of activity with properties now available to view.

Again, generally, the biggest deposit that you have the better as this will generally benefit you with a lower interest rate.

Getting your finances in order and any mortgage requirements pre-agreed is sensible. Whatever the market conditions, it is really important to ensure that you are in the strongest possible position so that you can move quickly to strike a deal. We would highly recommend, complete our mortgage eligibility check or even better speak with one of our professional advisers to get your mortgage agreed in principle.

handing over keys to a new property

Life assurance

At My Mortgage & Protection Experts, we believe that it is important to protect you and your new home. You will have had to work and save for your deposit. Therefore, once you have bought your new home it is vitally important that you protect your most valuable asset. We can assist, by providing you with a full personal mortgage protection review.

Insurances to consider are, protecting your income, life assurance, critical illness, unemployment cover and home insurance. Just imagine a situation where for whatever reason yours or a partner’s income were to stop? What implications would this have? Insurance will give you valuable peace of mind, ensuring that if the worst happens, you have provisions in place to protect you.

Income protection insurance isn’t a conventional house insurance policy. This type of insurance plan is available in a variety of policies. The purpose of an income protection scheme is to cover your costs in the event your income falls. This could be due to an accident at work or becoming unemployed. This insurance policy will protect your interests and allow you to continue to repay your mortgage.

To find out more about purchasing a property, get in touch with us today:

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