Congratulations are in order! The hard work has paid off and you have recently passed your exams, becoming a newly qualified teacher.
From here you have found yourself a teaching position and are understandably very excited to get started in the classroom. The catch here, is that this start to your career also requires you to move to Nottingham.
Times are now equal parts exciting and stressful for you, as you now begin struggling to balance owning your own home s well as starting your brand new job role. Worry not, you are definitely not the only one to have been in this situation.
Finding a lender that is actually willing to offer a mortgage to someone who has become a newly qualified teacher can be a bit tricky. This comes down to a lack of work history or having temporary contracts, to name a few reasons.
Even still, it’s important to remember that with some care from a mortgage advisor in Nottingham searching for the right lender, you may still be able to obtain a mortgage.
There are indeed lenders out there who will lend to someone who is newly qualified, with some even potentially offering reasonable deals to those working within the education sector.
The tricky part is trying to navigate around the various mortgage lenders and finding one that you match up with the criteria of.
This is the benefit of working with a trusted team of mortgage advisors in Nottingham who will be able to search over thousands of deals on your behalf. It’s our hope that in doing so, we’ll open you up to better deals and rates.
The different types of mortgage available for NQTs can include:
The benefits of speaking with a fast and friendly mortgage broker in Nottingham.
Here are some of the critical factors that can be taken into consideration:
Our experienced mortgage advisors in Nottingham are extremely familiar with the workings of various lending criteria, utilising their many years of experience to help our customers with their mortgage circumstances.
Get in touch with us today to see what options you have available to you. Our dedicated team will take some details from you, using this information to work hard and see if we can get a mortgage suitable to your individual circumstances.
The amount of deposit you will be required to have in order to purchase a property is something that will be entirely dependant on your personal and financial circumstances, as well as looking at what you are trying to do. In this article we will take a look at how much deposit you may need.
The previous era of 100% and 125% mortgages are long gone, as is the infamous credit crunch. The Coronavirus did see certain deals pulled back, but nowadays we are seeing more and more lenders feeling confident about offering 95% mortgages to homebuyers.
Based on the history of mortgages and what went wrong, having to prove to a mortgage lender that you are a responsible borrower and have the means to maintain your monthly payments. Lenders need to have a confidence that they have invested correctly. This factors in with your deposit, as it also show that you have something to lose too.
The initial saving for a deposit can often be the difficult part for many, especially first-time buyers in Nottingham who have only been renting up until this point.
It can also be seen as one of the biggest obstacles in the property market and there are certain factors involved which could make the whole process seem even more daunting to someone who hasn’t experienced it before.
As an open & honest mortgage broker in Nottingham, we are always hearing questions from customers regarding deposit. In fact, we can safely say that it’s one of the most commonly discussed topics from first-time buyers. As such, we have compiled a list of the usual suspects and the answers to these.
In years gone by, 100% mortgages were on hand to most customers. There were even a selection of companies who were offering 125% loan to value mortgages. In hindsight, this sounds crazy, as it means if you were buying a property valued at £100,000, the mortgage lender would be willing to lend you up to £125,000.
Lenders require their customers to put down a deposit to reduce their risk of lending such a large amount of money. If they lend you 100% of the purchase price and for one reason or another you happen to fall into arrears, the lender would need to repossess the property in question and attempt to sell it.
If property prices dip even by a small amount, they have now not only made any profit, but have in fact lost money on this venture.
Also, there tends to be a school of thought that if you haven’t invested some money into a property, whether it be from your own savings or a gifted deposit, you might lack attachment and find it easy to “walk away” if you happened to struggle with your monthly repayments.
There is also the argument that if you are not in a position to save up at the very least, a minimum of 5% of the purchase price of a house for a deposit, then you likely aren’t ready for such a commitment at this current moment in time.
Putting down more deposit is generally a great thing to do!
If you are putting down a higher amount than the average home buyer, the lender may actually be willing to offer you a deal with lower interest rates than usual, as you will be borrowing less and therefore less of a risk.
For example; if you are looking to buy a £100,000 home and have only saved 5% deposit, you’re only able to access 95% mortgages and would be borrowing £95,000. However, if you were able to save a 20% deposit on that same property, you would be open to 80% deals and therefore only borrowing £80,000, which a lender would much prefer if an option.
It is important to know that products are offered in bands of 5% with 95% of Mortgages being the most expensive.
In some cases, very specific ones, using a personal loan for a deposit may be acceptable, though this depends on the lender.
It’s not widely accepted, because a mortgage lender will consider it as a monthly mortgage payment and therefore treat it is technically is, as an additional credit commitment. Because of this, you would be granted a smaller mortgage as opposed to the types of mortgage deals available to those who outright saved for the deposits themselves.
The reason why mortgage lenders don’t like to get involved with these circumstances, is because you are essentially borrowing 100% of the purchase price, which if we go back to mortgage history, is what caused problems in the first place.
The majority of mortgage lenders will accept gifted deposits as a source of your deposit towards a property.
Gifted deposits can pretty much come from anyone, though it is generally family and depending on criteria, friends too. There are certain obligations that the ‘donor’ will have to comply with, such as being willing to confirm it is a gift and not something you’re required to pay back.
They must also provide ID and proof of funds to keep in line with the lenders’ to anti-money laundering regulations.
As it pertains to modern society, if it weren’t for ever-rising popularity of gifted deposits, known by many as the ‘Bank Of Mum and Dad’, we believe that the property market landscape would look completely different to how we’ve come to know it.
Much like when using a gifted deposit, using your own savings to fund a deposit will require certain forms of ID and various documents in order to evidence how these funds came to be over time.
Lenders like to see how you have been saving over time. If it looks to the lender like you have had any large deposits moved into your bank account recently, then you will need to provide documentary evidence to show where it came from.
For example, if you have recently sold a car then you will need to provide the receipt and the amount you sold the asset for. The number present on this receipt should match that of the amount in your account.
Large cash deposits can sometimes prove to be problematic, especially when it comes to audit trails. When it comes to your application, audit trails can often be one of the hardest parts. The longer the funds have been in your account then the easier everything should be.
If you are selling a property, then the Memorandum of Sale provided by the Estate Agent will be sufficient proof.
If you happen to qualify for the government’s Help to Buy Scheme, then the minimum deposit required will still be 5%. The government will then loan you an amount of around 20%, which will be put towards your deposit, totalling 25% overall.
You must always remember though, that unlike when dealing with a gifted deposit, the government Help to Buy Equity Loan Scheme is just that, a loan. Eventually, that 20% needs to be paid back.
Not always. If it is a genuine discounted purchase, let’s say that the house is worth £100,000 and you have been offered it for £90,000, then some mortgage lenders will accept this discount as your deposit. This also can apply if you have access to the Right to Buy Scheme when purchasing from the local authority, such as council or housing association.
It’s completely your choice to go to a lender directly; some are a little more adept and can manage the process themselves. When it comes to this you can either go and visit a branch or do it online.
Whilst this sounds like the steps are easy enough, there are still many reasons as to why a person should use a mortgage broker in Nottingham. Our mortgage advisors in Nottingham have taken time out to put together a few pros and cons to help you decide between the two choices you’re faced with.
Some of the benefits of homeowners and home buyers going direct to their bank or building society means that you’ll be able to save some finances. In the past, you may have found that the bank manager knew your finances incredibly well, but that all changed when credit scoring came into place.
Other potential advantages are that you’ll find some lenders may offer exclusive products for your mortgage, ones that are only be able to be obtained from straight to the lender themselves. They do this so that it appeals to both customers and brokers alike, but these exclusive offers can be subject to change and can sometimes when they stop being available with the lender, can still be obtained by going to a mortgage broker in Nottingham instead.
From 2014 onwards, mortgage lenders were no longer allowed to sell mortgages on a non-advised basis, on a whim with any customer interaction. Up until that point, some applicants were under the impression that they were receiving advice when in fact they weren’t speaking with a qualified advisor. This meant that they had opted out unintentionally from consumer protection that they would’ve received by speaking with the right person.
Due to these changes, lenders had to change the way they ran their business, meaning that it could take up to a month to speak with an advisor. If you have had your offer accepted on a house, this is of course not a good thing, as obviously you really want it. Because of this, mortgage brokers became a more popular option. As a part of our mortgage advice service, we aim to give you same-day mortgage service. When you Get in Touch, we try and connect you with a dedicated mortgage advisor in Nottingham at a time that best suits you.
Back in the ’90s, it was a lot more challenging to compare mortgage deals. Through the advancement of technology, finding a competitive mortgage is now a lot easier, as everything is basically online now. The issue people are faced with, is not knowing whether you meet mortgage criteria and it’s hard to find products that are tailored to your individual circumstances. Wherever you’re searching, it is important to bear in mind that the deals with the lowest tend to carry high arrangement fees.
Another key factor that could determine where you go, is affordability. It doesn’t matter how good a deal might look to be, if you aren’t able to borrow the amount of money you need. Because of this and because of how serious of a financial commitment this type of process is, many prefer a mortgage broker to help them along the way.
As it can be seen with many lenders nowadays, there are various different factors that can make a mortgage application so much more complicated. For example, these may be:
As the years have passed, lenders have attempted to differentiate themselves from their competition by ways such as offering better deals than others. The main way they do this is through their differences in lending criteria. For example, some lend more towards those who are Self-Employed in Nottingham, whereas some might take a more relaxed to blips on your credit report.
Our mortgage advisors in Nottingham understand that your situation will be unique to you. Through our experience as an open & honest mortgage broker in Nottingham, we have seen various unique and complex scenarios in the past. It’s our hope that we will be able to draw from that experience in order to recommend a more suitable mortgage for you at the lowest rate possible.
However, it’s not just about the mortgage. Even if the application itself is straightforward, we’ve noticed our clients rely on us for much more, we strive further than just sorting your mortgage deal. Our mortgage advisors in Nottingham will be able to recommend other professional services such as Solicitors and the array of different surveys and protection available to you as a home buyer.
It has already been covered previously, but mortgage brokers in Nottingham tend to be far more responsive than high street mortgage lenders. It is not uncommon for our dedicated and hard working advisors to provide out of hours (beyond the standard 9-5 shift) and weekend appointments. They are also able to respond to clients’ emails during this time to offer a more responsive service as opposed to restricted working hours.
One factor which is often overlooked by many as to why a mortgage broker in Nottingham is a highly preferred option to a lot of home buyers and homeowners alike, is that a person may simply prefer to let someone else handle the full transaction and take the stress out of the situation. Professional applicants, such as those who run a Buy-to-Let in Nottingham, have seen this to be very beneficial as they have their own customers to handle, so find it to be much easier having a helping hand do the work for them.
If you are in need of expert mortgage advice in Nottingham, whether you’re a first-time homebuyer, moving house, looking to remortgage, are a buy-to-let landlord or even something else that hasn’t been touched upon, please do Get in Touch. Our team of mortgage advisors will do their very best to bring you one step closer to mortgage success, keeping the process as clear and simple as they possibly can.
Completing a credit score for a mortgage is not a difficult task, however, sometimes the applicants are unable to meet the lender’s criteria. This is due to the fact that certain mortgage lenders have a high set of requirements that must be met by the applicant. There are instances where you may be unable to meet the credit score for the mortgage and the lender is not able to communicate properly about the reasons why you failed. We know this can be frustrating.
If you want to know why your application for a mortgage was possibly turned down, using a mortgage broker is the best path for you. Approaching experts and professionals in the field of mortgages is going to be the best choice you make to get a desired result. Once your file is fully studied by the dedicated Mortgage Advisors in Nottingham, they will be able to recommend the most appropriate lender to go with.
In order to improve your credit score, you have to meet certain parameters. If you are paying off a balance on a credit card, you should try to pay the monthly balance in full. Another big help in improving your credit score comes if you are present on the voters roll in your local area. To make things even better, get rid of any bank account, store cards, and credit cards that are no longer used. A cleaner record really helps.
Remember, if your application is rejected by one lender, you may still have a chance of being accepted by another lender. For this, you need to have the least amount of credit footprints registered in your name. Your name in the systems should be as clean as possible and should not have any pending balance so that the lender can trust you and your credit score easily.
If you are looking for Specialist Mortgage Advice in Nottingham, you should keep in mind that every mortgage lender uses different methods to calculate the amount that you can borrow. As a matter of fact, you might find 10 different approaches from 10 different lenders for the same mortgage application.
You might find one lender being more lenient if you are self-employed, with your overtime and bonuses counting towards 100% of your income. While some lenders might not consider bonuses as income, others might be generous enough to accept the tax credits, maintenance, and even child benefit.
The benefits of looking for Specialist Mortgage Advice in Nottingham are pretty helpful. A trusted mortgage broker will have knowledge of how to approach the lender and discuss the chances of your application getting through. Consulting us for an expert opinion will help you find out if you meet the lender’s requirements. You can then get to work on meeting those requirements in order to move forward with your potential mortgage.
It’s highly recommended that you get Specialist Mortgage Advice in Nottingham before filing an application. Consulting the relevant mortgage experts will highly pay off as they will be able to guide you on the right path to organise yourself and avoid being disappointed by approaching the wrong lender.
Remember, that all lenders work according to their rules and emphasise borrowers meeting their lending criteria. Some of the requirements in the criteria are tougher to meet than the others and this is what causes many applications to be declined. Here are some of the reasons why an application may be turned down as it does not reside inside the lending policy;
The experience of a specialist mortgage broker in Nottingham can come in handy when selecting the best mortgage plan for you. If you find yourself in any of the above-mentioned situations, its best recommended that you get in touch with a dedicated mortgage advisor to receive support along the process.
From the set up of the Help to Buy Mortgage scheme being put into action, many major Builders started selling houses by leasehold, when houses were traditionally freehold. This had built up to be controversial issue overtime from which the Government felt the need to intervene.
Some of the major housebuilders within the country have been accused of prioritising profit over social conscience. They’re doing so by trying to balance the fact homes are needed for families and that shareholders are also tended to; this leads to the media regularly accusing them of ‘Land-Banking’, which is when they own land for a certain period of time and not build on it due to market conditions not being favourable.
Consolidation within the industry would often mean land gets inherited by Builders and their organisations which come as a leasehold basis. However, to appease buyers, they will state that both leasehold and freehold properties are available to appear that they have access to an informed choice.
The market appeared to be swaying too much towards leasehold for the publics liking, especially when observations of how much profit the Builders had been making off the back of the leases. Things became apparent when the Chief Executive of one of the UK’s largest Builders received a bonus of over £100m. At that particular moment in time, it was one of the largest bonus paid in corporate history.
Some Leasehold First Time Buyer Homeowners became shocked when quotes for home alterations were surfacing as thousands of pounds in fees, after seeking permission from Leasehold Management Companies.
Some of the annual ground rents were to double every 10 years and owners could see that selling their home in the future once these increases have kicked in would become a lot more difficult. After the topic was subject to a debate in parliament after MP’s were notified, the government agreed that if you were buying a house then it is only reasonable that you should, in fact, own the freehold.
If you come to realise that you are in ownership of a house and didn’t realise that it was leasehold then you should have been made aware at the start. If you as a First Time Buyer in Nottingham, feel that the acting Solicitor did not inform you of the full facts about the lease you signed, then you should re-contact them immediately to investigate why. Although it is not advised, you do have the option to contact the freeholder at any time, if you are interested in buying the freehold from them.
Looking past the leaseholds, there is also the issue of service charges. When permission is granted by Councils for Housebuilders to build on land, they don’t always agree to adopt the common areas and roads. That would mean that the upkeep of these areas would need to be outsourced, most usually to a private company. The owners residing in the area make a financial contribution to this maintenance work on top of their council tax. By the way, this can happen on both leasehold and freehold.
The costs of the service charges can rapidly increase which infuriates homeowners who are affected. Sometimes the residents in the area group together to form an association which might allow them to choose a different service provider.
If you’re thinking of buying a leasehold property, make sure to take advice from your Solicitor in regards to the lease and be informed as to what this entails. It’s so easy to get carried away with the excitement of buying a home but you need to also take into account that it’s a major investment decision that you need to think about thoroughly with care.
In contemporary settings, the general public are now paying more attention to their credit rating than ever before which makes them reconsider their financial decisions. Consumer awareness of credit scoring appears to be higher than ever before and the majority of people who get in touch with our team appear to have already reviewed their credit report online to get further ahead in the mortgage process.
There are multiple credit reference agencies that are available for a person to utilise. The most common are companies such as Experian or Equifax but we recommend new clients towards Check My File for a 30-day free trial, following this it comes to £14.99 a month but can be cancelled any time. This report offers our clients a collation of information produced in an understandable colour-coded report.
Clients usually ask if our First-Time Buyer Mortgage Advisors in Nottingham will be doing a credit search on them because they are aware that too many searches can have a downward effect on their credit score. Lenders always run credit checks but we make sure our Mortgage Advisors seek out a client’s permission before doing these.
Credit searches from banks come in two forms; hard searches and soft ones.
A hard credit search is one where it will offer a more in-depth look into your credit report, if any financial institution carrying out these should prioritise seeking your permission to do this before anything else. The benefit of a ‘hard’ search is that because the lender is looking into your situation closely, if you pass the credit score than your chances of your application being successful will improve drastically. The only thing at that stage that can go wrong is, if, for any reason, you cannot provide evidentiary support of satisfactory documentation to back up the information in which you have disclosed or it turns out that you have provided false details.
The flipside of the benefits is that the hard search leaves a ‘footprint’ on your credit file so that anyone who takes a look at your report can see that it has been carried out. This isn’t necessarily a bad thing but if for example, you have multiple searches included in your credit file in a short period of time then it could be perceived as you are applying for a vast amount of credit at the same time. The search will not state as to whether your application was successful or not but Lenders will sometimes wrongfully assume that you are being declined with the mind frame of “Why else would you go to Lender number 2 unless Lender number 1 had said no?”.
The odd hard footprint on your record is no big deal so this doesn’t give reason to worry too much about it; just take precaution in having too many.
The other form – a soft credit search – is a ‘lighter’ search which looks at your financial situation and would be the type of search that would be carried out on price comparison websites to let you know what may be available to you, or it could be used to verify your identity. Some Mortgage Lenders carry out soft searches and nowadays, even more lenders seem to be changing to this type of search. Whilst less information is offered to who is carrying out a soft search on you as opposed to what they would receive if it was a Hard search, if you obtain an Agreement in Principle from one of these Lenders, it’s usually still an extremely strong indication that your full application will be accepted.
One of the most beneficial things about soft searches is that whilst you will be able to see soft searches that have been carried out on you if you check your credit file (people are usually surprised by how many have been carried out on them) these searches are not visible to other Financial institutions like Banks. This means you can apply for an Agreement in Principle for a mortgage without it damaging your credit score irrespective of whether it is successful or not.
If you are going through the thought process of putting forward an offer on a property, our First Time Buyer Mortgage Advisors in Nottingham would recommend having a mortgage agreement in principle in place prior to contacting the Estate Agent and whilst gaining this, you will also have the option to obtain Specialist Mortgage Advice in Nottingham. You want to be able to give yourself the best possible chance of securing the property you want at the lowest possible price so if you present yourselves as having your finances in a good place then you are definitely giving yourself the upper hand in the situation. Being in possession of an Agreement in Principle could also mean that the Agent is put off trying to ‘cross-sell’ their own in-house mortgage services to you.
To qualify for a possible mortgage, you need an Agreement in it is referred to as a Decision in Principle.
Once you have obtained your Agreement in Principle, you are prepared and ready to support any offers you make as a First Time Buyer in Nottingham. There may even be potential to negotiate a lower price if you have one of these, due to it showing the seller you are serious and have the funds to proceed.
We tend to see more lenders using soft searches than those who don’t, however some lenders searches may still affect your credit score. This can be the case if it is a hard search, but generally speaking a soft search should leave your credit score more or less unaffected.
Soft searches are not as in-depth as hard searches, meaning you can trust that the lender made the correct choice either way.
If it is not a regular occurence, then a hard search should not make too much difference. It becomes problematic if you start having multiple hard searches within a short amount of time.
It’s worth remembering though that if your credit rating is good and you know it. Do not feel put you off by any of this. Especially if taking a hard search with that lender is the best deal for you.
Though it would be nice, unfortunately we cannot guarantee that having an Agreement in Principle will get you a mortgage. The Lender will still need to see all your documents and only after that will an Underwriter make a final decision.
Often we find that customers get in touch having been declined at application stage, as they have neglected to read any small print in their Agreement in Principle. You will need to provide ID to prove that you are genuine, payslips to prove you earn the amount you claimed and bank statements to prove you conduct your finances, before a lender will offer your case.
You can make an offer without an Agreement in Principle, though we really would not recommend it. An Estate Agent with credibility will want you to prove you can go onward with the process.
It is possible to obtain an Agreement in Principle within 24 hours of speaking to one of our Mortgage Advisors in Nottingham.
Usually, an Agreement in Principle will expire after 30-90 days. This does not mean you should just apply for the first house you find though, so don’t worry. If your Agreement in Principle expires. You can quite easily have it refreshed once you are ready to make an offer.
Finding a mortgage only to be declined a mortgage can understandably be disappointing. As such, we recommend getting an Agreement in Principle as early as you can.