10 Factors to Help You Decide Where to Live in Harrogate
Before you make a start on the process of moving home in Harrogate, you first need to come up with a plan of what you want. Many will want to move to a new location and have a fresh start, whilst others may want the same location but a bigger property, to name a few reasons.
You need to give some thought to the area you are in, what your current situation is and whether you expect that to change. In an ideal world, when you move home in Harrogate, you need to consider how things might change in the next 5 or 10 years, maybe more?
To give you a nudge in the right direction and give you plenty to consider ahead of the next step in your home owning journey, we have put together a list of 10 factors that could help you to decide where to move house in Harrogate.
1. Busy town centre or relaxing countryside?
First of all, we would suggest that you take a look at the area that you are looking to buy a house in. Do you want to live in the busy town centre of Harrogate or would you prefer something a little quieter, perhaps in the countryside?
Typically speaking, we find that first time buyers in Harrogate prefer to live closer to towns and cities, whereas people with families, who have perhaps been homeowners for a few years, may move out of the busier areas to settle down for a much quieter life.
There are no doubt pros and cons to both of these options, though at the end of the day, it’s all down to personal preference!
2. Transport Links
Transport links are quite a large factor to think about when you are considering where to live, which is even more so the case when you are working out where it is you want to live.
If you typically go to work via driving and have a job that is situated outside of where you are living, you should consider seeing how easy it is to get onto the motorway or busier roads.
If you are unable to drive and you happen to heavily rely on public transport to commute to and from your place of work, it may be worth your while looking at an area that is closer to where it is you work, to provide you with easier access to public transport.
You should also bear in mind the amount that it will cost to travel if you do, as those costs could run high. Additionally, it could be worth moving as close to your work as you can, maybe considering things like walking or biking as a way to reduce your carbon footprint.
3. Schools & Education
Families will need to take a look at all the nearby schools and education opportunities too, whilst they are property hunting. If your kids are still in school, you might find this a little challenging, as you will have to decide whether or not to keep them where they are or move them to another school.
It will mostly be dependant on how far it is you are planning to move away. If your children are younger, this might be a little easier for you.
If you currently don’t have a family of your own but are thinking about starting one, it will be worth your time looking at this ahead of time. When you eventually do have children and they are ready to start school, it will be much easier to already be aware of your options.
4. Nearby Facilities – What You Need vs What You Want
When moving to a new area, there will be many different things that you want nearby. Although, there is a difference between what you want nearby and what you need nearby.
We would advise separating nearby facilities with ‘what you want vs what you need’. For example, you want to have a gym nearby, however, having shops nearby is more important and something that you need.
Having a gym nearby is what we call ‘an added bonus’ and is not one of the main reasons why someone should live in an area.
5. Friends & Family
If you tend to see your family and friends more often, it may be challenging for you to even consider moving further away. We often find that conversely to this, people actually will often move closer to family and friends, as one of their primary reasons is to see them more.
This is a scenario that tends to be much more popular with young families in Harrogate who move closer to family and friends, as a way of getting help with raising their children. This a perk you lose if you move away, unfortunately!
6. Is the property good value for money?
When you look to buy a property, you first need to make sure that the properties you are looking at are actually worth what it is the seller is asking for it.
We would suggest that you take a look at recently sold house prices for that area on websites like Rightmove or Zoopla, as a way to double-check you aren’t paying over the odds for a property. If you are overpaying, a mortgage lender might down-value the property when they do their valuation.
If you are a first time buyer in Harrogate, you simply be looking to find something cheap and cheerful as your first home, so that you are at least on the property ladder. This still doesn’t mean you shouldn’t check house prices in the area, however, as you still need to make sure it is worth the costs.
7. What is the community like?
The way the local community of an area is like can have an impact on how your living experience will be as well. Some people love to live in busy, vibrant communities with regular events and celebrations. Others will prefer to be quiet and do very little.
As a mortgage broker in Harrogate, we would suggest that when someone looks at moving home in Harrogate, that they should look online to find out what the local area is like. Checking forum threads, Facebook groups and local news can help you to get a good idea of this.
8. Career Changes
A lot of home buyers will be moving home because they have actually decided to take a new job or even take on a new career altogether. This is a very common reason we hear for people moving home!
You will also have to bear in mind the various transport links when moving to a new area and how this could affect your job. Is it viable for you to move closer to work and yet also be within reach of friends and family?
There may very well be places that are easy enough for you to travel to your new place of work and aren’t too far from your new home.
Many home buyers will not be affected by this anymore, as the new modern approach to work is to actually just work from home. This could be a factor too, as you may require space for a home office, whilst factoring in still getting to your workplace, if they ever require you in person.
9. Type of Property
There are a wide variety of different property types that are available to property purchasers on the open market. Depending on the size of the property you are looking for, you may find that you don’t have as many choices for where you want to live.
For example, terraced and semi-detached houses are usually found in and around cities or towns, whilst you can find a larger property usually outside of those areas. If you have a particular property type in mind already, say a detached house, there may not be any near where you were hoping to buy.
It will also be quite dependant on your personal factors, such as how big your family is, how you might expect it to grow, what your future plans are and your financial circumstances. It is worth looking at other properties on the internet to gauge the average housing prices for a set area and property type.
10. Local Developments
If there has been a proposal for a local development, it is handy for you to be aware of this prior to committing to a property purchase, especially if you have high hopes and are looking to build your life around this new home.
An example of a local investment could be something like an entire housing estate that is either proposed or is set to be finished soon. Something like this could change the environment, altering what seems quiet to you at first, making for a much more active community.
Free Mortgage Appointment for Home Movers
When you have gone through all of the factors listed and have made plans for where you wish to live next, the next step for you to take is to get in touch with a mortgage advisor in Harrogate and get the ball rolling on your mortgage process!
We are an experienced and reputable mortgage broker in Harrogate, helping many home buyers in Harrogate over the years. We offer all of our customers a free home movers review or first time buyer mortgage appointment, with a qualified mortgage advisor in Harrogate.
Book online today and we will see how we can help you out with your home buying journey!
The Importance of Changing Your Address in Harrogate
Moving Home Mortgage Advice in Harrogate
When taking out any kind of mortgage, your lender will check your credit score to help them determine what sort of applicant you are. They often base it on trustworthiness so that they can work out whether you are the type of applicant that will be able to meet their mortgage payments month-on-month.
You may think that they just look at your income, and expenditures when assessing your credit file and finances, however, this is not the case, they will look at everything!
What can affect my credit score?
Your credit file is usually based on a score from 1-1000. This score is calculated through an in-depth analysis of your finances. They will look at your current financial situation such as your bank balance (including other accounts like your savings) and whether you are in debt. Usually, they will also factor in your monthly income, expenditures, and current financial agreements using your bank statements.
Amongst other small bits here and there, your recent addresses will also be factored in. It is quite clever actually!
How do my previous addresses affect my credit score?
On your credit file, there will be a list of your previous addresses; unfortunately, the more addresses that are on there, the more likely that your credit score will be affected. The reason for this is that lenders may see that you were unable to stick down a property. This could affect your more if you are a younger applicant too.
Don’t take this the wrong way though! As a mortgage broker in Harrogate, we have seen applicants deliberately leaving off addresses from their files to try and increase their chances of getting accepted for a mortgage; it is important that you do not do this.
For those who choose to leave off an address, it is usually where they have moved out of their parent’s home into rented accommodation. Normally, not changing to their new address on their bank statements, credit card and electoral roll.
So, why does this affect your credit score? If your lender can see on your credit file that half of your accounts are linked with one address and the other half are linked with a different address, where do you actually live? They need to know where you currently live and want everything to line up correctly.
Best practices when updating your address in Harrogate
All of our mortgage advisors in Harrogate would say the same thing – “check everything!”. From your delivery addresses in your Amazon account to your online car/home insurance search, anything where you have to enter an address in, use your current one.
We would also recommend double-checking that all of your credit cards and store accounts are linked to your current address. This way, when you are looking at moving home in Harrogate, everything matches up and your lender can’t pull you up on your addresses not matching.
As a mortgage broker in Harrogate, when going through the mortgage process with you, we will make sure that all of your addresses line up and help you make the correct changes so that you stand the best chance possible of getting the mortgage that you want.
Impress the mortgage lender
Remember that lenders are looking for reliability and someone who has their finances in order. Keeping your addresses up-to-date can sometimes be a painstaking task, however, it always pays off when you come to submitting your mortgage application and you don’t have any trip-ups.
Getting mortgage advice in Harrogate is always an option when it comes to situations like this. Our advisors would love to help you through your mortgage application to overcome any mortgage hurdles you may face along the way.
Moving home mortgages in Harrogate
We have been helping applicants in Harrogate for over 20 years prepare their mortgage applications. Whether you are a first time buyer in Harrogate or looking at moving home, we are here to help!
At Harrogatemoneyman, all situations are considered, and anyone can qualify for a free mortgage appointment with a mortgage advisor in Harrogate. Just give our team a ring or book your free appointment online, it’s up to you how you get in touch.
What is a Cashback Mortgage?
Cashback Mortgage Advice in Harrogate
We regularly receive enquiries from customers regarding a variety of mortgage types. One we come across every now and again is a cashback mortgage.
In this article, it is our goal to answer all the main questions we hear from customers regarding the topic of cashback mortgages. These include whether or not the mortgage type will benefit you in the long or short term, as well as how it may compare to other mortgage options.
What is a Cashback Mortgage?
Cashback mortgages are a rather self-explanatory type of mortgage available to applicants. After you have finally paid off your mortgage or once your mortgage term has come to an end, you will receive some cash back in your pocket.
The amount that you can get back is usually a percentage of what you have borrowed, say around 1 or 2%. Some lenders will prefer to have a fixed price written in the contract, meaning even with a longer term, your amount won’t change.
Will a Cashback Mortgage benefit me?
Cashback mortgages tend to have both advantages and disadvantages. For example, Cashback Mortgages may also bring along with them a free property valuation or some fringe benefits.
Cashback Mortgages are generally quite attractive mortgage types to customers that are borrowing much smaller mortgages. You will make back some money plus be granted some additional benefits on the side.
If your mortgage lender offers you a reasonable percentage on your Cashback Mortgage, it is worth considering, as this could be a benefit to you in the long term.
One of the main disadvantages to a cashback mortgage is that they have also been known to have rather high interest-rates with them as well.
Different Types of Mortgages in Harrogate
Compared to the other types of mortgages that are available, Cashback Mortgages are often not the most popular mortgages to go with, though they are absolutely worth considering.
We still see come across customers at Harrogatemoneyman every so often who are looking for Cashback Mortgages, and they are a great backup option if you perhaps don’t quite meet the criteria for other mortgage types.
If you would like to receive a much more in-depth viewpoint, be sure to book your free mortgage appointment online. Here you will be able to benefit from Specialist Mortgage Advice in Harrogate.
A member of our brilliant team of mortgage advisors in Harrogate will be able to take a look at your case and determine whether or not this is the right option for you, comparing everything else that may be available to you.
What is a 95% Mortgage?
A 95% mortgage is as simple as the name would suggest; you are borrowing against 95% of the price of a property, and then you are covering the remaining 5% with your deposit. An example of this is if you looked at buying a property that was worth £150,000 with a 95% mortgage, you would be putting down £7,500 as your deposit and borrow the remaining £142,500 from the lender.
95% Mortgage Advice in Harrogate
Off the back of the March 2021 Budget, Boris Johnson announced a Mortgage Guarantee Scheme for mortgage lenders, making 95% mortgages more readily available from the bigger high street banks.
This is fantastic news for First-Time Buyers and Home Movers alike, as this scheme will continue running until December 2022. Certain terms and conditions will apply though, which is something your Mortgage Advisor in Harrogate will be able to look at, to see if you qualify.
All our customers who opt to Get in Touch will receive a free, no-obligation mortgage consultation where one of our dedicated mortgage advisors will be able to make a recommendation on the best possible route for you to take.
Can I get a 95% mortgage?
95% mortgages are usually accessible by both First-Time Buyers in Harrogate & those who are Moving Home in Harrogate. Whilst saving for a 5% deposit sounds like a pretty straightforward concept, you’ll still need to have an acceptable credit score and prove that you are able to afford your monthly mortgage repayments, in order to access a 95% mortgage.
Improving your credit score
A good credit score is essential in the process of obtaining any mortgage, especially a 95% mortgage. Things like paying any current credit commitments on time, ensuring your addresses are updated and checking that you’re on the voters roll, can all help with your credit score.
Affordability
Affordability is another one that is important to take note of. By giving the lender details of your income and monthly outgoings (things like your bank statements will be necessary for this) and any pre-existing credit commitments, your lender will be able to get a general overview of whether or not you are able to afford this type of mortgage.
Can my family help me get a 95% mortgage?
Nowadays we see lots of family members helping each other get onto the property ladder, especially parents looking to further their children’s lives. The way this usually happens is by gifting the person looking to find their home, the deposit required. Known through the industry as the “Bank of Mum & Dad, Gifted Deposits are only intended to be a gift, and not as a loan. The lender will need proof that this has been agreed, before it can be used towards your mortgage.
How do I choose the right 95% mortgage?
When looking for a 95% mortgage, you want to make sure you have the right type of mortgage. Each mortgage type works differently, with that choice allowing you to find one that is most appropriate for your personal and financial situation.
Some homeowners and home buyers prefer Fixed Rate or Tracker Mortgages, mortgage types which mean you either keep interest rates at a set amount for the term given or have your interest rates tracking the Bank of England base rates.
Alternatively, you might find that Interest-Only or a Repayment Mortgages are more your style. Interest-Only allows cheaper payments until you need to pay a lump sum at the end (mostly now used for Buy-to-Lets), whereas a Repayment mortgage (a normal mortgage if you’d like) means you’ll be paying interest and capital combined per month.
How can a bigger deposit help with my mortgage?
Seeing as a mortgage is such a large financial outgoing, you need to be prepared and need to be aware. You might find things like higher interest rates, remortgaging difficulties due to less equity and then negative equity all cropping up if you’re not.
There is no need to worry though, as all these can be avoided if you’re savvy enough with your process to begin with. The more deposit you put down for a property, the less risk the lender will see you as.
A larger deposit, of say 10-15%, would not only reduce the rates of interest by a noticeable amount, but would also give the property more equity and reduce the risk of negative equity, thanks in part to you borrowing less against the property.
So, whilst the risks may seem intimidating, planning ahead and saving for a bigger deposit to access something like a 90% or even an 85% mortgage will be a massive help in your mortgage journey and something you’ll be able to reap the rewards from in the future.
How to Improve your Credit Score in Harrogate
Mortgage Advice in Harrogate
What is a credit score?
A credit score is a tool that lenders use to measure whether or not an applicant can afford a mortgage or not. The higher your credit score, the more likely it is that you’ll get accepted for a mortgage. Which means that if you have a low credit score, your chances of getting a mortgage are lowered.
Having a high credit score may sound great, however, it doesn’t guarantee you a mortgage in any way. Each lender has their own unique lending criteria and it’s more than likely that you won’t meet all of them. Sometimes it’s down to your circumstances and not just your score.
Matching lender’s criteria
It is more than likely that each lender will have completely different lending criteria. Lenders have almost carved out their own niche market. You could end up matching with lots of lenders or it may only be a couple, but all that matters is that you match with one and get an amazing mortgage deal from it!
Whether you receive help from a Mortgage Broker in Harrogate or go solo and use your bank, it’s their job to help you compare deals and match you with a lender.
As a Mortgage Broker in Harrogate, we would always recommend taking up our free mortgage consultation offer. This way, we can evaluate your situation and compare deals for you straight away. If you go to a bank, you could just be added to a waiting list.
If you are struggling to match a lender’s criteria, it could be down to multiple things or maybe just one. The most common reason why people don’t match their lender’s criteria is that they have a low credit score. If this is your situation, then you need to find some ways to improve your credit score.
Improving your credit score
Avoid unnecessary credit searches
Having unnecessary credit searches on your file could negatively impact your credit score. Lenders don’t particularly like seeing repeated credit checks; they may think that there is a reason behind it and they may even start asking you questions about it. Even using price comparison websites could damage your score.
On another note, if you are applying for a mortgage, it is unwise to apply for any form of extra credit in the meantime of your application.
If you manage to pay back owed money before your application, it will look good on your file, however, if you are borrowing/paying back money during your application, it will have a reverse effect. If you borrow credit, some lenders’ could think that you cannot afford the deposit and are relying on the credit to help you.
Are you registered on the Voter’s Roll?
A great way to improve your credit score is to register onto the Voter’s Roll. Lenders love seeing applicants that are registered on it as it indicates stability. It’s really easy to get yourself registered and the fact that it can boost your credit score surely means that you have to sign up if you haven’t before!
Even if you are already registered, it’s always a good idea to double-check that you have entered all of your information correctly. If you have an old address on their system, lenders will easily spot this mistake and it could go against your score.
Don’t run too close to your maximum limit
Maxing out your card each month will have a detrimental effect on your credit score. If you are using a credit card, a lender would much rather that you pay off the full balance each month rather than cutting it short. Showing you can meet set payments each month shows reliability and can help your chances of being accepted for a mortgage.
On the other hand, if you are doing the opposite and exceeding your credit limits or overdrafts, your lender will think that you don’t take your finances seriously. This could massively impact your credit score, especially if you get declined by a lender due to this reason.
Check that your address is up to date
Your address should always be up-to-date. People usually get caught out when they move out from their parent’s house and forget to update all of their address’.
If you forget to change your address on things such as credit accounts, it will appear that you are living in two separate places. This can hurt your credit score once lenders see this so make sure that you are keeping on top of what address’ are linked with each of your accounts.
Close down your unused credit accounts
If you have any store/credit cards that are no longer in use, you should contact the provider and get them to fully close down your old account(s). These types of accounts are probably doing more damage than you think.
However, if you manage to close your account(s) it could still have a negative effect on your credit score as the credit reference can’t really tell if it’s you closing the account or the provider.
Don’t worry about this, if they ask, you will have to explain and it could work in your favour as you are proving that you want to improve your chances of being accepted.
Remember that it’s always good to check up on these types of things just in case. For example, you could’ve lost a card and you didn’t realise, then you fall victim for fraud. This could end up having a worse effect on your score.
Remove your financial link to others
People often don’t know that they are still financially tied to a family member or ex-partner. If this is the case, it can have a negative effect on your credit score without you even realising.
If the account that you are still tied to is still active, you must know that you will not be able to remove your link just yet. If you want to remove any of these links, then you should get in touch with the credit reference agencies and make a request.
Summary
As a Mortgage Broker in Harrogate, we know that some applicants see credit scoring as an unfair way of determining whether or not you’ll get accepted for a mortgage. For example, you may have a low credit score due to personal circumstances that couldn’t be prevented.
As a Mortgage Broker in Harrogate, we mostly see that it’s people that are Moving Home or Self Employed struggle with their credit score. However, if this isn’t your mortgage situation and you still need help with improving your credit score, you know to get in touch with.
Sending an up-to-date credit report to your expert Mortgage Broker in Harrogate could prove extremely beneficial to your mortgage journey. A great tool that we always recommend to our customers is checkymyfile.com.
The more your advisor knows about your finances the better. There are still some lenders out there that prefer to do things the old-fashioned way and will manually assess your application. They will still have rules that they stick by about the number of defaults and CCJ’s that they will allow.
A Mortgage Broker in Harrogate, like us, likes to do things the new way and will always aim to deliver you the same fast and friendly mortgage advice service that you are all used to. We hope to hear from you soon.
In need of a Mortgage Agreement in Principle in Harrogate?
The purpose of an Agreement in Principle (AIP) is to determine whether or not you pass a Lender credit score to qualify for a potential mortgage. Sometimes this is also referred to as a Decision in Principle.
By obtaining yourself an Agreement in Principle, you are ready to support any potential offers you make as a First-Time Buyer in Harrogate. Having one of these may also put you in a place to negotiate a lower price as it shows the seller you are serious and have the means to proceed with the purchase.
Will obtaining an Agreement in Principle impact my Credit Score?
Common practice these days seems to lean more towards soft searches, though even these could still affect your credit score. Usually this would be more likely with a hard search, with soft searches generally leaving your credit score unaffected.
The difference between the two, is that a soft search won’t dig as deeply as a hard search. You can always rest assured though that the lender has chosen either with the best of intentions.
Should I stay away from hard credit checks?
Now and again a hard search or two should be fine. It becomes slightly more problematic if you start having multiple hard searches over a short amount of time. Soft searches won’t show up on your credit report, but a hard search will. This looks bad, especially if you don’t pass the different criteria.
Don’t let this put you off however, as if you know you know you have a good credit score and taking a hard search with that lender is the best deal, you’ll most likely be fine.
Does my Agreement in Principle a guarantee that I will get the Mortgage?
We really wish it were the case, but sadly no, there are no guarantees that having an Agreement in Principle will get you a mortgage. You still need to present the lender with your documents and it’s only then, that the underwriter will make the final decision on your case.
A regular occurrence here at Harrogatemoneyman, is customers getting in touch after being declined at application stage. This is often down to missing some of the small print mentioned in their Agreement in Principle. You will need to provide identification for proof of who you are, payslips for proof of income, and bank statements for proof of handle your finances the right way. Without these, your case won’t go to offer.
Can I make an offer without having an Agreement in Principle?
If we were to get technical, the answer is yes you can. However, it is highly unrecommended and any credible estate agent will not proceed without proof that you can proceed.
How long does is the process of getting an Agreement in Principle?
Within 24 hours of speaking with a mortgage advisor in Harrogate it is possible to obtain an Agreement in Principle.
How long will an Agreement in Principle last?
Generally speaking, an Agreement in Principle will expire around the 30-90 days mark. The good thing is though, that this doesn’t mean you should just apply for the first house you find. If your Agreement in Principle expires, it is relatively straightforward to have it refreshed when you are ready to make an offer on a property.
Finding a mortgage only to be declined a mortgage can be a major disappointment, we get that. We recommend getting an Agreement in Principle as early as you can to avoid that disappointment.
Why Isn’t it Easier to Get a Mortgage in Harrogate?
Mortgage Advice in Harrogate
During our multiple years of working as a Mortgage Broker in Harrogate, we have come across almost every single mortgage hurdle that you could think of. there are many different reasons to why a mortgage may be hard to obtain, let’s take a look at some of the most common reasons:
Passing lenders credit score
One of the first and many struggles of getting a mortgage is being able to pass a lenders credit score. Every single lender has their own individual requirements and criteria that you need to pass before they will offer you a mortgage. Each criteria is unique and it is more than likely that you won’t match every single one, even if you have a high credit score.
As a Mortgage Broker in Harrogate, we often find that people don’t realise that lenders have these strict criteria and end up applying to a lot of them. This can often have a negative effect as the more that you apply for, the more likely it is that you will get declined by some. If you are declined by a lender it can sometimes end up damaging your credits score.
This is why we always tell borrowers, especially First Time Buyers, not rushing into anything. If you are unsure on how to apply for a mortgage or don’t want to risk getting declined if you have had a bad credit history, it may be within your best options to approach a Specialist Mortgage Broker in Harrogate.
A second opinion from a mortgage expert may be exactly what you need to get the ball rolling. In fact, we have over 38 different lenders on panel that we can access for you, there is most likely a deal waiting for you amongst them!
Improving your credit score
Another mortgage obstacle that applicants commonly face is being declined a mortgage due to having a low credit score. What most people don’t realise is that having a low credit score is quite common and there are ways to boost it back up.
There are many different things that could cause someone to have a lower credit score, but remember, the only way is up! In some cases, it’s fairly easy to improve, however, in other cases it can be quite tricky and you may require a Specialist Mortgage Advisor in Harrogate to help you out.
Remortgaging
A First Time Buyer mortgage isn’t the only mortgage scenario out there, there are lots of different situations that we come across as a Mortgage Broker in Harrogate. Occasionally, it can be hard to get a mortgage arranged in all circumstances, however, one other mortgage situation that stands out is remortgaging.
Basically, remortgaging is just renewing your mortgage contract, this can be on the same deal or a completely different one if you are open to switching products. In most cases, people remortgage as their deal is approaching its end, however, it can be done midway through a deal if the homeowner wants to remortgage for home improvements, etc.
Remortgaging can be quite stressful, searching through lots of different deals can catch up on you. We do encourage in doing this though, searching through deals through external lenders could allow you to land an even better rate. We always recommend shopping around before rushing into renewing your deal.
If you are struggling to find a better remortgage deal or just don’t want to shop around, you can always try a Mortgage Broker in Harrogate like Harrogatemoneyman. We will sort out everything for you and search through 1000s of remortgage offers in order to try and find you a competitive deal that will be worth your time. 9/10 times we get it right and we find our customer a great mortgage deal that they thought they could never get.
It’s not always the applicant’s fault…
Sometimes, we find that it’s not always the applicant’s fault. A major factor that could determine the outcome of your mortgage is how the economy is performing during the time of your application.
For example, during the coronavirus pandemic, we saw 90% for several months which eventually eased towards 95% with time.
A suffering economy and getting a mortgage do not go hand in hand. In terms of saving money and making the most of your mortgage journey, it may be best to wait it out.
If you take a look back to the mid-2000s (just before the credit crunch), it was ridiculously easy to get a mortgage, anyone could get accepted. Now times have changed and the credit crunch has made lenders realise that they should be much more careful when accepting applicants for a mortgage.
Struggling yourself?
If you are struggling to get your mortgage application started and need some help from an expert Mortgage Advisor in Harrogate, we are always here to offer a helping hand. We know that the mortgage process can be daunting in sometimes scary, so don’t ever hesitate to call us.
Whether you’re a First Time Buyer, Home Mover, Self Employed, looking at Remortgaging or a Buy to Let landlord, we are here to help. Our amazing team of Mortgage Advisors in Harrogate are available 7 days a week and will be ready to answer all of your mortgage questions. Contact us today for a free mortgage consultation.
Which Property Survey to Choose? Mortgage Advice in Harrogate
What is a Property Survey?
When an offer is accepted on a property, usually the next step of to get a property survey sorted. Having this carried out will determine whether or not the property price is accurate or it needs adjusting due to the condition it is in. In the case where there is something found on the survey, the buyer does have the right by law to approach the seller to negotiate a price for the works required.
This is carried out by a property surveyor who will make you aware of any minor damages that need to be sorted
Property Survey Types
As a First Time Buyer in Harrogate, you may have been unaware of the different property survey types. Below are the three main types of property surveys available to you.
- Mortgage Valuation
- Homebuyer’s Report
- Full Structural Survey
Mortgage Valuation
The cheapest option available is a basic valuation. This is a regular survey that you need to have carried out before the mortgage offer is received and is different to a full survey. By doing this, it confirms to the lender that the property is worth at least what they are lending to the buyer. You may find that your mortgage lender will offer a free basic valuation as part of your deal.
One thing with mortgage valuation is that it will not make you aware of any repairs that are needed. On the flip side, it may mention obvious that is recommended to be investigated further.
Homebuyer’s Report
If you are wanting your property to be checked over for structural safety and let you know of any problems like dampness along with anything that doesn’t meet the current building regulations, a homebuyer’s report is perfect for this. This will provide you with an independent report of the property written by an expert.
You need to make sure that the two surveys aren’t being paid for by asking the mortgage companies surveyor who will carry out this report. Usually, this can take up to a day to complete if it’s a large property.
Full Structural Survey
A Full Structural Survey is suitable for older properties and those made from non-standard construction. The duration of a full structural survey depends on the property size and type, but it can take as long as a day to complete.
Even though a Full Structural Survey is the most expensive property survey, it will provide you with a detailed report. This report will highlight the overall condition of the property as well as highlight any major repairs that need to be carried out.
If you are looking for a surveyor to carry out a Homebuyers report or building survey through the Royal Institution of Chartered Surveyors.
Do I need to get a survey on a new build?
When it comes to new build property, surveys would work slightly differently. You may think that you won’t need a property survey carried out because it’s a new property. It can be best to do this just in case.
A Snagging Survey is designed for new builds. You will be provided with a report that gives insight on the property’s overall condition, highlighting both minor and major issues. The survey will mention something as simple as a missing door hinge to a crack in the ceiling (which is unlikely to find in a new build).
For those moving into a new build that’s already been built, it would be best to get a snagging survey carried out on the property prior you move in. Having this will support you further when it comes to negotiating the price if there are any issues with the property.
How can our Mortgage Advisors in Harrogate help you?
A Mortgage Advisor in Harrogate can help you find the most appropriate property survey for you. Book your free mortgage appointment online or give us a call to connect to an expert advisor.
Here at Harrogatemoneyman, we have helped lots of First Time Buyers and Home Mover in Harrogate find the most appropriate property survey for their new home.
Why Should I Use a Mortgage Broker in Harrogate?
There are multiple reasons as to why you should use a Mortgage Broker in Harrogate. However, there is still the chance to go direct to a lender if you wish to, with the added option of doing it either in branch or online. Within this article we will include the pros and cons of both methods.
Pros and cons
When choosing the option of going direct to your bank or building society, you won’t have to pay the Broker fee, so that is an advantage in itself. Years ago, the bank manager would know your finances better than anyone but that is not the case since credit scoring was introduced. Another advantage of doing this would be the fact that some lenders offer exclusive mortgage products that would only be available by going direct. They also use this technique with Brokers too, so that exclusive offers are only available through them. This is put into place to maintain a good spread of business from both customers and brokers.
From 2014, lenders were banned from selling mortgages on a non-advised basis when customer interaction is involved. Up until this point, some applicants were under the impression that they had received advice when in fact they hadn’t and as a result of this, they weren’t able to benefit from parts of the consumer protection that goes along with proper advised mortgage sales.
This change had meant that lenders had to get used to a different system which meant longer waiting times for an appointment and this can still be the case in contemporary settings. This can be a struggle if you’ve just had an offer accepted on a house. The frustration that came with waiting for an appointment led to a rise in applications being made via Brokers due to the same day mortgage service being available.
Before the days of credit scoring and such it was much more difficult to compare mortgages whereas nowadays it’s a lot easier to find a competitive mortgage online. On the other hand, there is an increased difficulty in finding a lender whose criteria and mortgage product is tailored to your circumstances. It is important to keep in mind that the deals with the lowest rates tend to carry high arrangement fees.
Affordability
Affordability is another key point to take on board. A lenders deal could be amazing for you but if they won’t lend you enough money then it’s useless. Most mortgage applications these days aren’t straightforward, for example, you may have:
· Poor credit history
· Self Employed Income
· Mixed source of deposit (savings/gift)
· Let to Buy (keeping your current house and buying another)
· Contract workers/zero-hours contracts
· Affordability
Will lenders be lenient?
Most lenders try to stay relevant in the mortgage market by offering a better deal than their competition. The way they do this is by differentiating themselves on Lending Criteria. For example, some will be more lenient with Self Employed applicants or take a more sympathetic view on faults on a credit report.
Every mortgage situation is unique but if you approach an experienced Mortgage Broker in Harrogate then they will be able to reflect on past cases to see if there is a similar solution to decide the best outcome and hopefully find the lowest rate that’s available.
But it’s not just about getting the mortgage. Even if an application itself is straightforward, we find that our customers rely on us for many other things. For example, we sit down and discuss how much they are going to offer on the property that they are buying. We often recommend other professional services too such as Solicitors and explain the different types of survey and protection available.
Speak to a Mortgage Advisor in Harrogate
Another key aspect which benefits customers is responsiveness which you are guaranteed with one of our Mortgage Advisors in Harrogate, with our Mortgage Broker in Harrogate we make sure that out of hours and weekend appointments are available along with responding to clients’ emails on an evening outside of office hours.
An overlooked factor of why a Mortgage Broker in Harrogate might be preferable is purely for the fact of time. Everyone is prone to have periods in their life when they’re just too busy and a mortgage application can sometimes be stressful and time-consuming.
Our Mortgage Advisors in Harrogate aim to take this stress away and handle the full transaction for you. Professional applicants see the real extent of the advantages of this as they have customers of their own that they charge out their services to so they see the reasons to have an expert on board.
Lenders are on par with Brokers in some departments but in others they are yet to step up. Perhaps lenders may want to advance ahead of Mortgage Brokers and will most likely avoid staffing up their branch networks and instead make investments in technology to transact with customers online which may be a disadvantage for customers who prefer a more face to face approach that’s available with our Mortgage Advisors in Harrogate.
Preparing for a Mortgage Application in Harrogate
Applying for a Mortgage | Mortgage Advice in Harrogate
So, you’ve saved up for your deposit (or got the green light from “Bank of Mum and Dad”) and made the decision to move home in Harrogate.
What’s the next step? It’s time to get prepared for your mortgage with our Mortgage Advisors in Harrogate.
Know where you stand
Speaking to an experienced Mortgage Broker in Harrogate as early on in the process as possible will be beneficial as you know how much you can borrow for a mortgage and how much it will all cost.
Obtaining an up to date credit report should also be at the top of your list, you don’t want a meaningless squabble with your mobile phone provider holding you back from buying a home.
Taking the above two steps will give you a meaningful expectation of how possible this is going to be and what your budget is.
Getting Organised
Your Mortgage Broker in Harrogate will obtain a fully credit-checked Agreement in Principle on your behalf but you’ll have to prove who you are, where you live and how much you earn.
There really is loads of paperwork for you to get together so it’s a good idea to open a file for yourself and start collecting everything in advance.
Proof of ID
In terms of proving who you are you’ll need to produce some photo ID such as a Driving license or passport, if you’re a non-UK national working over here on a Visa you’ll need that too.
Proof of Address
In addition to the above, you’ll need to prove where you live. You’ll need to produce a utility bill or original bank statement dated within the last 3 months.
Last 3 months’ bank statements
Further to the Mortgage Market Review of 2014 the analysis of your spending habits has become one of the most important determining factors in whether you’ll qualify for a mortgage or not.
Your bank statements should evidence your income and regular expenditures.
Lenders will not be happy to see gambling transactions on your account and nor will they like it if you go over an agreed overdraft limit or if your direct debits bounce regularly.
Proof of Deposit
You will have to prove you have the funds in place for the deposit and also evidence this for anti-money laundering purposes.
Try not to move money around your various accounts too much as it will make evidencing the audit trail more difficult. Lenders like to see your savings building up so you’ll need to account for any large credits into your accounts.
Quite often money for deposits has been gifted by family members. These funds need to be evidenced also and the “donor” will need to sign a letter to confirm it’s a non-refundable gift, not a loan.
Proof of Income
In terms of affordability, the most important thing is to be able to prove your income. If you are employed this tends to be by way of your last 3 months’ payslips and most recent P60. Lenders can take into account regular overtime, commission, shift allowance and bonus.
If you are Self Employed then you’ll need your Accountant’s help to request your tax year overview.
A list of your expected outgoings
It’s a good idea to do your homework and write down an estimate of your anticipated outgoings after you move house. You can work out an idea of how much the council tax and utility bills will be plus your regular expenditures such as food and drink and demonstrate how much disposable income you have available to pay your mortgage from.
As you can see from the above, it’s a real paper trail when you are applying for a mortgage but if you want your application to run like clockwork you’ll need to put the time aside to get everything together.
It’s better to get all this at the outset and collate everything that the Lender could possibly ask for. As this saves time and frustration later down the line if you’re subsequently asked for paperwork you could have had ready at the outset.
