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Month: January 2018

Getting a mortgage with bad credit
January 30, 2018

Getting a mortgage with bad credit

Bad Credit / Mortgage

Mortgages for bad credit

History of bad credit and struggling to get a mortgage, or a poor credit score and worried about your chances of being approved? Getting a mortgage with bad credit is possible and we can help!

When you apply for a mortgage, lenders look at a range of different criteria including your credit report. If you have a bad credit score, it is very unlikely that you will be able to get a mortgage from a high street bank, as you are considered a risk. Luckily, we specialise in finding customers the right mortgage at the best price, no matter their credit score.

We work with a number of bad credit mortgage lenders who unlike the high street banks, will assess your application on an individual basis, in order to determine your mortgage affordability.

Our bad credit mortgage specialists can help advise you on all your available options, and find the best possible mortgage deal available to you, to help make your dreams of becoming a homeowner a reality!

County Court Judgements (CCJs)

Getting a mortgage with CCJs is possible. However, your chances of being accepted and the amount you’ll be able to borrow are dependent on; whether the CCJs are still outstanding, if you have had any other credit issues and how much deposit you have, which we can help advise you on.

Defaults

There are a number of mortgage lenders who will consider your application with past or current defaults. If you have had no other credit problems, your chances of getting approved by a high street mortgage lender also vastly increase, so long as you meet the lender’s own individual criteria.

Late and missed payments

When you apply for a mortgage, lenders will check your credit report to see how you have managed your money. If you have a history of making late and/or missing payments, lenders will presume that you will also not pay your mortgage on time, and therefore be unwilling to accept your application.

Fortunately, we work with a number of specialist bad credit mortgage lenders who will consider your application. They might charge you a higher rate of interest and/or require a larger deposit. But, we can help ensure that you get the best deal available to you.

Payday loans

Taking out a payday loan can significantly reduce your chances of getting a mortgage. If you have had a payday loan within the past 12 months, mortgage providers will not be prepared to lend to you as they are associated with financial instability. If you took a payday loan out a few years ago, the options you have to get a mortgage will also be restricted. But, we can help you to maximise your chances of being accepted.

Debt management plans

If you are currently on or have previously had a debt management plan, you’re chances of getting a mortgage from a high street lender will be affected. However, there are a number of specialist mortgage lenders who will happily consider your application.

They will look at your; income, expenditure and the extent of your credit issues, in order to determine whether they will lend to you, and we can help you improve your chances by submitting your application to the right lenders.

Individual Voluntary Arrangement (IVA)

The majority of lenders will not lend to any individuals with an IVA. However, we have access to a number of bad credit mortgage lenders who will be willing to assess your application. You may have to pay a higher rate of interest and/or need a larger deposit. But, we can advise you on all your available options to ensure that you get the best deal possible.

Repossession

If your home has been repossessed within the past year, you will unfortunately struggle to get a mortgage. However, your chances of being accepted after this time do improve. If you apply for a mortgage in the initial few years following the repossession, you will probably need a fairly large deposit in order to be accepted. But, the longer you leave it, the better your rate and borrowing power will be.

Bankruptcy

If you have been made bankrupt in the past 6 years, there are mortgage options available and we can help! The rate of interest you pay may be slightly higher to begin with. But, if you keep up your repayments, your credit rating should improve and enable you to move to a more competitive mortgage deal after a few years.

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Complex income mortgages
January 23, 2018

How to get a mortgage with complex income

Mortgage / Overseas / Self-Employed

Complex income mortgages

If you earn your income through a combination of regular overtime, bonuses and commissions, stocks and shares or pensions, then proving your total pay can be difficult when applying for a mortgage. But, complex income mortgages are possible and we can help!

Many high street mortgage lenders will not accept applications from those who do not earn a standard PAYE salary, as pay earnt through additional revenue streams is generally not guaranteed and therefore considered risky.

As expert mortgage advisers we take the time to understand all of your various earned and/or investment income sources. We know which lenders will consider your application and ensure that they receive all the necessary documentation, in order to get the best loan amount available to you.

Mortgage with commission, overtime and bonus income

If you earn a low basic salary, but receive regular overtime, commission and/or bonuses, you can use these payments to help lenders determine how much they will be willing to let you borrow.

Some lenders will allow you to use the full amount, whilst others will take 50% or an average monthly or annual amount. Each lender is different, but if you need to borrow the maximum amount, then we know which lenders to approach to ensure you can achieve this.

Proof of income required: Generally your last 3 payslips and most recent P60.

Mortgage Car, shift and living allowances

Although car, shift and living allowances form a part of a growing number of people’s salaries, many lenders believe that these are used to support living costs, rather than a cash benefit that can be put towards your mortgage repayments. Thankfully, we have access to a number of mortgage lenders who will happily include your allowances as part of your income!

Proof of income required: Generally your last 3 payslips and most recent P60.

Mortgage on benefits and maintenance payments

Benefits and child maintenance payments can be used to support your mortgage application, if you receive a regular income from a job and/or pension. These can include:

  • Child Tax Credit
  • Child Benefit
  • Working Tax Credits
  • Disability benefits including; Incapacity Benefit, Disability Living Allowance, Attendance Allowance and Employment and Support Allowance.

Many banks and building societies won’t lend to you if your income is solely from benefits. However, there are other lenders who will consider your application, which we can help you with!

Proof of income required: An assessment from the relevant authority.

Self-employed mortgage

If you’re self-employed and struggling to get a mortgage from your local bank, there are other well-known and respected lenders who will view the entirety of your income, and may be willing to lend to you – Great if you only take a modest tax-free personal income from your business, rather than a regularly paid salary!

Proof of income required: SA302s and 2 – 3 years’ worth of accounts.

Second job mortgage

Income from a second job will generally be considered in addition to your main source of income, if you can prove that the work is regular.

Lenders will usually want to see that you have been able to hold both jobs for 2 years, in order to show that you are able to sustain them at the same time. A second job with no prior history, will be viewed as a risk.

Proof of income required: Your W2 form and confirmation from each of the employers you have worked for, during the requested time period.

Pension mortgage

As you’re no longer earning a regular salary, many mortgage lenders will not be willing to lend to you, as you are deemed too much of a risk. However, there are some lenders who will be willing to consider your application, based on the income received through your pension/s, if you have a good credit history and a pension income large enough to cover your repayments.

Proof of income required: Original copies of your pension documents and your annual pension statement.

Mortgage with rental income

Revenue from rental properties can be used to support your application. Not all lenders will accept this source of income. But we know who will, and will therefore approach the lenders most suited to your needs, to ensure that your application is a success!

Proof of income required: Accounts for your property business and/or tenancy agreements.

Overseas income mortgage

If you are looking to get a mortgage in the UK and earn your income in a currency other than pounds sterling, there are lenders who will consider your application.

If you application is successful, your chosen mortgage lender will however convert your mortgage loan into pounds, using either their own currency exchange rate or the daily rate.

Changes in the exchange rate may increase the sterling equivalent of your debt 

Proof of income required: Generally your last 3 payslips and most recent P60 or equivalent, if working outside the UK.

Getting a mortgage with a new job
January 16, 2018

Getting a mortgage with a new job

Mortgage / Self-Employed

New job mortgages

You’ve got a new job, congratulations! Getting a mortgage with a new job is possible. But, some mortgage lenders will consider you a risk, as you may find that you are unable to afford your mortgage repayments, if you don’t pass your probation period or are made redundant. However, there are lenders who will be happy to lend to you and we can help!

Each lenders’ rules on who they are happy to lend to vary, as your age, income and credit record, are all factors that are considered, when deciding whether they will lend to you or not.

As expert mortgage advisers, we know which mortgage lenders are most likely to accept your application, so no matter how long you’ve been in your job, we are here to help you get the best possible mortgage deal at a great price!

Had a pay rise

Although a new job can make getting a mortgage difficult, a higher salary can significantly improve your chances. You will need to provide evidence of your new income, so if you haven’t already received payslips or bank statements showing your increased pay, then make sure you receive written confirmation from your employer detailing this.

Earn less

If you have started a new role with lower pay, getting a mortgage is possible. But, the amount you can borrow and the type of property you can now afford to buy, is likely to be affected, which we can help you with.

Dependant on bonuses and/or commission

If you’re now on a lower basic salary, but receive regular bonuses, commission or overtime payments, then payslips or written confirmation of the additional income you could potentially earn, can help show lenders your earning power.

Gone self-employed

If you have recently decided to work for yourself, you can get a mortgage. But, as you’ll need to prove your income, you may not be able to buy a new home straight away. If you can however prove that you either have regular work, have recently left your previous job to start contracting or have regular, guaranteed work in the near future, there are still lenders who will consider you.

On probation

Getting a mortgage whilst you’re on probation in a new job can be difficult, as your employment is not guaranteed. Your chances of being accepted are therefore greater once you have completed your probation and have been in the role for six months or more. However, if you can’t wait, there are mortgage lenders who will happily accept your application.

Want a new mortgage deal

Switching your mortgage after getting a new job can be complicated, as lenders like to see a history of continuous employment. However, there are lenders who consider a range of different employment types, and will help you move to a better deal.

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Getting a mortgage after divorce
January 9, 2018

Getting a mortgage after divorce

Help to Buy / Mortgage / Moving Home

Divorce and mortgages

There is always a lot to consider when going through a divorce, and deciding what’s best to do with your home can be tricky. If you’re worried about how your divorce might impact your home and mortgage, don’t fear! There are options available to help with getting a mortgage after divorce and here’s what you can do:

Sole ownership

If the mortgage on your home is in your partner’s name only, you may be able to make a claim for a share of its value, if you can prove that you have paid towards the mortgage and/or improvements to the property – make sure you get professional advice from a solicitor if you need to go down this route!

Sorting out a joint mortgage

If you and your partner have a joint mortgage, there are several things you can do with your home when you separate:

  • Sell your home: the money raised can be put towards buying a new home for each of you, if you can afford to do this.
  • Apply for a single mortgage: one of you can take on the mortgage and remortgage the property to buy the other out.
  • Transfer ownership: If you have children, you can transfer part of the property’s equity to your partner. When the property is sold, you will then receive a percentage of its value.

Getting a mortgage on your own

When applying for a single mortgage, you will need to demonstrate to mortgage lenders that you can afford the mortgage by yourself, and keep up your monthly repayments, which we can help you with!

If you have children, be sure to check whether you’re eligible for any additional benefits, as these payments can be used to support your mortgage application.

Help buying a home

If you can’t afford to take over your existing mortgage by yourself, there are options available to help you get back on the property ladder:

  • Help to Buy: A government scheme that aims to help people who are struggling to buy a home. There are two options, Shared Ownership and Equity Loan:
  • Shared Ownership allows you to buy a share (between 25% and 75%) of a new or existing property
  • An Equity Loan enables you to borrow up to 20% towards the purchase cost of a new home, so you will only need a 5% deposit and a 75% mortgage.
  • Guarantor mortgages: A parent or close family member can guarantee either a percentage of, or the entire mortgage debt. However, as they will be liable for any missed repayments, they will need to either:
  • Prove that they can cover both yours and their own mortgage
  • Have the majority of their mortgage paid off
  • Have a number of years left in employment ahead of them.
  • Family Springboard mortgages: Allows a family member to provide 10% of the purchase price as security. If you keep up your repayments, they will get all their money back with interest.

Specialist divorcee mortgages

As professional mortgage advisors we aim to make the process of getting a mortgage after divorce as easy as possible. Our mortgage separation advice will help you discover what your options are and find the right divorcee mortgage deal for your needs.

If you decide that a single mortgage is the right decision for you, we will also handle your entire application, removing the stress and hassle form you.

How to pay off your mortgage faster
January 4, 2018

How to pay off your mortgage faster

Mortgage / Remortgage

Paying off your mortgage faster

For many of us, our mortgage is our biggest financial commitment. Reducing the amount you pay each month or your overall debt, could make a big difference to your finances and help you pay off your mortgage faster, and we have compiled a few handy tips to help you do just that!

Be savvy

Most of the best mortgage deals only last for a short time, so when your current deal is due to expire, speak to your current lender to see what they are prepared to offer you. But, make sure you also look at what else is on offer, or you could end up paying a lot more than you need to!

Get the best deal for you

Ensuring you pay the lowest interest rate possible is a great way to clear your mortgage debt quicker, without having to increase your repayments!

As expert mortgage advisers, we can help you compare thousands of exclusive deals from the UK’s leading mortgage lenders, to ensure you get the right product for your needs.

Reduce your term

When calculating your monthly repayments, most mortgage lenders use the standard repayment term of 25 years. But, if you find that you can afford to pay more, then increasing your payments is certainly worthwhile, as the shorter your term, the cheaper your mortgage will be overall!

Consider overpaying

Increasing your monthly payments, even just slightly, will help you to reduce both your mortgage term and rate of interest, with most mortgage lenders allowing you to make overpayments up to 10% of the outstanding loan value.

If you want to make overpayments or pay a lump sum off your mortgage, which will take you over this threshold, then remortgaging could be the best option. Your lender may charge you an exit fee for repaying your mortgage early. But, we can help you work out whether a new mortgage deal would be the best option for you.

Make your savings go further

If you’re a keen saver, then you can use your savings to reduce your mortgage. Offset mortgage deals deduct your total savings from your mortgage debt, and only charge interest on the remaining balance. You won’t earn interest on your savings. But, you’ll pay less interest and clear your mortgage faster, without having to increase your monthly repayments!

Speak to a professional

As expert mortgage advisers, we ensure you get the mortgage that’s right for you. We take the time to understand your individual needs, and compare thousands of exclusive deals from the UK’s top mortgage lenders, to find you the perfect mortgage.

If you choose to proceed with a new mortgage deal, we also manage your entire application for you; liaising with the appropriate parties and completing all the necessary paperwork, to remove the stress and hassle from you. Sound good? Get in touch for your free consultation!

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