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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

Ways to improve your credit score | moneymanTV

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.

How to Improve Credit Score Harrogate, UK

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.

Credit Report Harrogate

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?

What is an Agreement in Principle?

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 11 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.

How To Improve Your Credit Score | moneymanTV

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 from 8am-10pm, 7 days a week and will be ready to answer all of your mortgage questions. Contact us today for a free mortgage consultation.

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 monies 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.

Nine Top Tips for Selling Your Home Quickly in Harrogate

Helpful tips from your friendly Mortgage Broker in Harrogate

Most homeowners who are looking at Moving Home will need to sell their current property to proceed. The equity (the amount at which you sell for without your current mortgage balance added on) will contribute towards a security deposit for the next purchase. You can top this up from savings or a family gift if you wish.

There is always a “magic number”, the minimum that a seller (vendor) is willing to accept to agree on a sale. However, when a home is listed for sale, it is essential to market and presents it in the right way. It can make a big difference in terms of how quickly it sells.

1) Be reasonable

The asking price should portray that of its surrounding properties. Be reasonable, and some estate agents may suggest the highest possible price for the sake of it. With everyone now able to advertise on Zoopla and Rightmove, it’s a good idea to make the dive into the market and get as many viewings as possible, within the first two weeks.

If interest in your property seems to below, there’s a chance it was overvalued.

Before putting their current property on the market, people often like to research and visit other properties to identify which one might become their new home. If this is you and you need a quick sale, here are some tips to give yourself the best possible chance of selling it.

2) Attention to detail

The first tip can be challenging to imagine, but the first thing you need to do is inspect your own house as if you were viewing it for the first time yourself. If it has excellent “kerbside appeal”, (i.e. it looks beautiful as you drive up to it) that will be a great first impression.

Something simple like a freshly jet-washed drive and neatly cut front lawn indicates that you are the kind of person that looks after their home. It would help if you aimed for that feel-good factor, it’s more than likely that the potential buyer will think the inside is expected to be as nice as the outside.

3) Got kids?

If you have any kids, it’s best to put away any bikes or loose toys in the front garden. Make sure your front door looks appealing (clean), and the doorbell works. Spend a little bit of cash getting a nice new doormat or welcome sign.

4) Upkeep

Go around each room and caution around rooms like kitchen or bathrooms, pay much attention, ensuring that they are spotless and have a high hygiene level. Cupboards and wardrobes should be neatly stacked and free of clutter.

One of the critical things is to ensure your home is immaculately clean. Wash your curtains, blinds, wipe down your walls and clean all your floors and windows. All repairs should be up to date too and clean bedding on the beds. Windows should be sparkling clean inside and out. New carpets in smaller rooms can be an inexpensive way of creating the impression that your house is welcoming and has been well cared for.

If you are a smoker, it’s an excellent tip to air the rooms out before the potential buyer arrives. Ensure there are no bad smells lingering, buyers can be put off bad odours from pets or cigarettes.

5) Atmosphere

You will want your buyer to feel at home and relaxed as they view your property so try and avoid having pets or young children getting in their way as they move around. That said, if it’s a family home you are selling, then just a couple of family pictures and paintings can help as it will them envisage bringing up their family there too.

A buyer like to walk on their own, if there are two of them allow them some breathing space to talk amongst themselves but be ready to answer their questions honestly.

Your bathroom should be presented spotless declutter any items like cosmetics and co-ordinate your towels and flannels, maybe consider doing a small investment look at ways you could create a fresh feel with some minor renovations. Make the floor space spotless.

6) Lighting

A well-lit house is more appealing to potential buyers, this is achieved through making sure lights brighten up rooms, and all curtains and blinds are open. Plants often block out light so place these strategically throughout the house.

7) Fresh coat of paint

White walls look fresh and clean, and it also has the added benefit for the buyer of being extremely easy to work whenever they redecorate. It helps to buyer avoid scraping previous wallpaper off the walls.

Interior doors should all be freshly painted. Polish the brass fixtures and ensure all entries open and close nicely, no broken locks etc.

Buyers are looking at making the most of space, it’s recommended storing objects into cupboards and has clean and tidy worktops.

8) Gardening

In terms of your garden, the viewer may want to look inside your shed so don’t just throw everything in there, and it needs to look neat and tidy.

  • Maintain your lawn,
  • Weed the paths and walkways,
  • Spruce up your plants with more vibrant alternatives

Please pay attention to your fences, make sure all the slats are in place, and it’s nicely painted or creosoted. Tidy up any visible items such as outdoor barbecues. People do still like to see a colourful garden so ensure its beautifully turned out. Flowering plants are lovely to see if the season is conducive.

Make your garage space more efficient, therefore providing more space for a vehicle.

9) Another perspective

People buy from people, so it’s always better if you do the viewings yourself as the seller. You will no doubt feel very passionate about your home and can show it off in its best light, albeit pointing out any small issues that you have encountered over the years (“We leaked, we fixed it”) to present a balanced view.

Estate Agents do want to earn their commission, but they will have a certain amount of knowledge on your home compared to you.

Finally, remember the emotions attached to buying a home. If you have a family, it helps to accentuate it has been a happy home for you, and this is sure to rub off on the viewers if they are thinking of raising a family also.

Is Buying Better Than Renting in Harrogate?

When you reach that certain age and your parents are homeowners, then the chances are that they are encouraging you to Move Home. Before you rush into anything, you should investigate the differences between buying and renting. However, today history suggests more people rent now.

Here we will discuss some pros and cons and look at both sides of the debate. 

Should I investigate buying properties? 

The property market has shifted, although history suggests that even if you buy at the very peak of the market if you can afford to keep the property, eventually prices tend to increase or decrease.  

Consider discussing all possibilities with your Mortgage Advisor in Harrogate (and family) before being committed to the purchase; you could end up going through a rough time, and things don’t always plan how they should which could result selling the house. 

It’s always important to plan far ahead

That said, we are talking about a Home here, not merely an investment, and the most critical driver is finding a suitable one for you given all your circumstances.

Is a Mortgage cheaper than renting?

Bear in mind mortgage payments will be cheaper than rent. Interest rates go up and down, which mean your mortgage payments can go up and down too.; 

If you are worried about that then you should take out a fixed-rate mortgage, so your payments remain the same for a set period.

Then again rents either stay the same or go up – it’s a rare occurrence for a Landlord to reduce your rent.

Security

Some people feel in a more stable situation when they own their own home for them and their family. As the homeowner, there is no way that you can be made to leave if you can afford the mortgage payments. 

While you do have some protection as a tenant in terms of how much notice your landlord needs to provide to you. If they want the house back, the security is limited. 

It could be a very stressful situation, especially if you have a family, with children in the local school and work nearby. 

In some cases, when a landlord chooses to sell their property. They will often speak with their tenant first and offer them the chance to purchase the property before they put in on the open market. It can save the landlord money on estate agency fees.

Flexibility

Renting is more flexible than owning, nothing can stop you giving your Landlord notice to leave if you get a job offer in other areas, for example. 

It’s challenging for a Homeowner. You will have to decide whether you want to rent out your home or sell it, which can be time consuming and expensive. 

Consider this if you aren’t planning on being around the area for the long term, is it worth buying?

Buying somewhere needs to be viewed as a long-term investment. 

Repairs

As a tenant, your landlord should be responsible for any significant repairs. Some Letting Agents and Landlords are better than others when it comes to repairs, however, and even if you are renting, you might end up doing some minor maintenance of the property yourself.

It’s all down to the homeowner to ensure the property is in the best living condition of any mortgage taken out.

Consider the following 

Contrary to what some people might say, owning your own home is not for everyone. If you are young and moving in with your partner for the first time, there’s nothing wrong with renting for a while. Things don’t always work out the way we plan, and it can be tough to get removed from a mortgage.

Buying a home is an enormous financial commitment, and you need to consider all the options before going straight in if you decide to rent though it might take you much longer to save up for a deposit.

Everyone is entitled to their opinion, and most people end up seeing more upsides to buying rather than renting.

Whether you’re renting or paying a mortgage, you’re making monthly payments to live somewhere, and most would rather see this go towards their benefit than someone else’s. 

It’s sometimes just a case of getting your timing right and being in the correct financial position to be able to proceed.

The Main Reasons People Decide to Move House in Harrogate

Statistics taken from Dataloft has shown that there are a handful of main reasons homeowners decide to move to move house.

Increase in Room Size and family members

The main reason that was ranked 37% of responders, stated that they just wanted somewhere larger size room. It makes sense, generally only retirees or separating couples look for somewhere smaller. 

If we take into the average UK family, the children grow, they will accumulate belongings that fill the home. They’ll get bigger, need their own space and the struggle of who gets the bathroom first. Then the children turn 17 and get their first car.

Expanding the Property

A good tip to raise capital via a remortgage is to build an extension. Very popular today. Other options would be to turn a garage into a home office or gym or convert the loft into another bedroom. This type of improvements can sometimes add much value to your home when you come to consider selling it in the future.

Change of Scenery 

Dataloft had shown that 24% of respondents were looking for a better area. It could be that when they were first time buyer in Harrogate options were limited due to budget. 

Chances are they are now earning more money and would prefer to live in a more affluent neighbourhood. Another primary reason for the moving area is the choice of schools available to their children. 

People get particularly choosy about the schools on offer when their eldest child is due to move up to secondary school. 

Closer to Family/ Friends

Finally, 17% of home movers in Harrogate are looking to move closer to friends or family. Often occurs when couples start a family. If both applicants work, then the chances are they would look to lean on their parents for help with childcare. Private nurseries are expensive and in the early years, no free hours are available.

Buying for the very first time is a no-brainer for many people. Most would instead buy than rent, especially when the monthly cost of doing so is roughly the same (or sometimes less). 

Moving tends to be a trickier decision though. There is the emotional element of leaving behind your first home and the pros and cons of moving versus extending your current property.

If you fall into this demographic, then you might benefit from a Free Consultation with one of our Mortgage Advisors in Harrogate, we can help you compare the costs of raising money for home improvements versus the costs of moving. We will calculate your maximum borrowing capacity and give you a quote on monthly payments so you can think about your next step.

Talking to a Mortgage Advisor in Harrogate such as ourselves. Afterall were here for you. Also, we’ll also search the market for you, compare 1000’s of deals, answer your questions, and recommend the best deal for you, our Mortgage Advisors in Harrogate have good knowledge of the local area and share with you what options other clients have been taking recently.

Sales Tactics of Estate Agents & Builders

Mortgage Advice in Harrogate

Whether you are a First Time Buyer in Harrogate actively viewing properties or a Home Mover in Harrogate with your house on the market, you may have noticed that some of the larger estate agents and builders are very keen for you to use their in-house mortgage advisor and conveyancing services. 

Being part of a stand-alone mortgage business we receive lots of feedback as to what sales tactics can be used, examples of this are;

  • Refusing to put your offer forward to the vendor if you have not taken in-house mortgage advice or favouring another offer over yours because you already have your mortgage sorted. Please note these situations are illegal. 
  • Quoting extortionate conveyancing fees, A recent client was quoted more than £1,500 for a straight forward purchase with an estate agent.  They got this down to £750 with our help by using another conveyancer local to them.  
  • From the big well known colourful online agents, within minutes of making your offer they may call you wanting the name of your conveyancer, not just the company, the actual individual acting for you! At the same time pushing their extortionately overpriced quotations, and refuse to take the property off the market without this.  Don’t worry, we can help you be ready for this.

Don’t be fooled, popular Estate Agent & Builder sales quotes include:

“Keeping everything under one roof is easier with one point of contact”

“If you use our services it will give the vendor peace of mind that everything will go through smoothly”

“You need to come in and see our mortgage advisor for your offer to be qualified”

“Your offer is more likely to be accepted if you use our mortgage advisor”

“We get better deals than most brokers”

“Everything is likely to go through quicker if you use us”

“We will do all of the chasing of the solicitors for you and they’ll be more responsive to us due to the amount of work we send them”

“We’ll give you a free carpet/washing machine if you use our (extortionately priced) recommended conveyancing service”

Remember, when negotiating a purchase price, do you really want the seller of your property having access to your personal financial situation and potentially knowing your maximum borrowing?  

The Costs of Buying a Home in Harrogate

How Much Does Moving Home Cost?

One of the common questions we are asked by prospective clients is “How much will this all cost?” so here is a full list of the fees you can expect to pay when you are thinking about Moving Home in Harrogate.

Estate Agency Fees

This only applies if you have a home to sell.  With the rising of the online estate agent, the price to sell your home can be as low as £500 for a basic Rightmove listing. However, if you are looking for a more personalised local service and dedicated sales negotiator the fee will be in the region of 1-2%.

Valuation Fees

Your mortgage lender will have a requirement to have a valuation carried out on your chosen property to ensure they are lending against adequate security.

Prices can vary from nil (for a basic valuation with some lenders) up to several hundred pounds for a more detailed Home Buyers’ Report and even more for a full Building Survey.

The key is that you always have an element of choice in whether you wish to elect for a more detailed report or not, with your decision likely to depend upon the age and type of property you’re buying and any fears/concerns you have about it.

Mortgage Arrangement Fees

Some mortgage products offer comparatively cheap rates but this benefit can be outweighed by an arrangement fee payable to the lender. Not every product has one, so the cost can be nil but could for example, be £999 or even more depending upon the lender/product.

Sometimes these are to be paid up front or you can elect to add these to the balance of your mortgage, but clearly, you would then incur further interest charges.

Our Mortgage Advice in Harrogate team compare mortgage deals with all fees added so we can compare on a like for like basis.

Solicitor’s Fees

You’ll need to engage the services of a solicitor, the fees quoted by various firms can differ enormously. An estimation for a straight forward purchase with a local company is £600 for a low-value property.  You will need to give the property address, whether it’s leasehold or freehold and the purchase price to obtain quotations.

The key points to cover when asking for a quote are:

  • Ensure the firm includes VAT
  • Ensure the firm includes the cost of any “disbursements.” These are fees such as Land Registry Fees and Local Authority Search Fees
  • Is your Solicitor on your mortgage lenders panel?

Stamp Duty

In addition to your Solicitor’s fees and disbursements, you’ll be required to pay this tax which the solicitor collects on completion of the property purchase. Full details can be found here: https://www.gov.uk/stamp-duty-land-tax/ – a residential purchase of £180000, the Stamp Duty would be £1100.

Broker Fees

Your Mortgage Broker in Harrogate will usually charge a fee for their service.  Please try to avoid any application fees where your money will be at risk.

Removal Fees

The cost of moving your furniture can vary significantly and will depend on the level of service you are looking for. If you are quite happy to hire a van and roll your sleeves up, this can cost less than £200. On the other hand, if you are looking for a company that provides the full service this can be £1,000 plus.

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

© 2021 Harrogatemoneyman

Harrogatemoneyman – Workhub Harrogate, C/O Umbrella Property Group, 12 Station Parade, Harrogate, HG1 1UE.

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