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Your credit score assumes a pivotal role in the evaluation of your mortgage application. It’s important to note that there is no absolute guarantee, as different mortgage lenders employ their unique credit scoring systems to assess applicants.
If your application doesn’t align with the credit scoring system of one mortgage lender, there’s no cause for concern. Coventry’s mortgage landscape is diverse, featuring a variety of lenders, each with its specific criteria. If you don’t meet one lender’s requirements, you might find a better fit with another.
Our dedicated mortgage advisors in Coventry specialise in ensuring you’re matched with the most suitable mortgage lender from the outset, whenever feasible.
Whether you’re a first time buyer in Coventry or seeking remortgage advice in Coventry, both you and your mortgage advisor in Coventry share a common objective: securing the most advantageous deal.
For effective credit score monitoring and management, several credit reference agencies are at your disposal, including prominent ones like Experian and Equifax. As an additional resource, we recommend CheckMyFile, which consolidates information from various major agencies, including the aforementioned ones.
CheckMyFile extends a convenient 30-day free trial, offering the flexibility to cancel at any time. Following the initial period, a subscription fee of £14.99 per month applies. We believe it’s a valuable tool for assessing and comprehending your credit score, equipping you to make well-informed financial decisions.
Try it FREE for 30 days, then £14.99 a month – cancel online anytime.
It’s crucial to exercise caution when multiple credit searches are conducted on your financial history, as this has the potential to negatively impact your credit score.
Price comparison websites are often the primary culprits for initiating these searches. If you’re contemplating a mortgage application in Coventry in the near future, it might be prudent to refrain from seeking additional credit for the time being.
While having some credit and managing it responsibly can be beneficial for your credit score, an influx of new borrowings may not be viewed favourably by mortgage lenders.
Being registered on the electoral roll in Coventry can have a positive influence on your credit score, demonstrating stability to potential lenders.
Ensuring the accuracy and currency of your registration details is essential. If you’re not yet registered, the process is straightforward and can be completed online.
Prudent management of your credit card can have a significant impact on your credit score. Instead of maxing out your card each month, it’s advisable to use a credit card and regularly pay off the balance in full.
This illustrates your ability to handle finances responsibly, a trait that is viewed positively by lenders. Conversely, exceeding your card limit or overdraft can raise concerns about your financial prudence.
Occasionally, inaccuracies in your address information, such as disparities in the electoral roll, billing, or shopping accounts, can create the impression that you reside in multiple locations across Coventry simultaneously.
This situation often arises after a change of residence. Ensuring the accuracy of all your address details, including specific formatting for flats and apartments, is vital for a consistent credit report.
Closing unused store or credit card accounts may initially have a minor adverse impact on your credit score. The credit reference agencies may not differentiate whether you or the provider initiated the account closure.
However, this step is a prudent long-term decision. It reduces the risk of fraud, especially if you fail to notice the loss of a rarely used card.
Financial associations with family members, friends, or ex-partners, often arising from joint contracts or shared bills, can affect your credit score in Coventry.
While you can’t remove these associations if the accounts are still active, you can contact credit reference agencies to request their removal if the accounts are closed. Poor credit histories of those associated with you can influence your credit score.
Credit scoring may appear inequitable to certain consumers, especially in the context of mortgage applications. Nonetheless, lenders consider it a cost-effective and uniform means of evaluating risk.
Furnishing your mortgage advisor in Coventry with an up-to-date copy of your credit report from the outset can heighten your prospects of initial approval.
The greater the level of information that your proficient mortgage advisor in Coventry possesses regarding your financial circumstances, the more adept they become at helping you in the acquisition of a mortgage that is finely tuned to your requirements.
Are you a first time buyer in Coventry looking to buy your first home and are undecided on a location? Have your living circumstances changed, and you are looking for a change of location?
To help guide your decision, we have come up with our top list of places to live in Coventry.
Located 1 mile southwest of Coventry, Earlsdon offers the best of both upscale and most sought living areas. Earlsdon is an ideal location for all types of homeowners, with local schools for families, plenty of shops, bars, sports clubs and eateries at your leisure. You’ll find that all different types of people live around Earlsdon. You’ll find a bit of everything in Earlsdon, the trendy area is also becoming a popular location for first time buyers in Coventry.
Supported by excellent housing prices, Ecclesall is a great place to live in Coventry. Make sure that you don’t sweep this option under the rug.
Willenhall, Coventry is a charming suburban area that offers a fantastic quality of life to its residents. With its friendly community, affordable housing options, and excellent amenities, it’s no wonder that Willenhall has become a popular location for people looking for a peaceful yet vibrant neighbourhood to settle in.
One of the best aspects of living in Willenhall is the strong sense of community that exists in the area. The locals are incredibly welcoming, and there are many community groups and events that bring people together. This creates a friendly and inclusive atmosphere that makes it easy to meet new people and build meaningful relationships with your neighbours. The area is also well-connected, with good transport links to Coventry city centre and surrounding towns, making it an ideal location for commuters.
Whether you are a first time buyer in Coventry or are looking to move and want to call Willenhall home, get in touch with us as your expert mortgage broker in Coventry.
Stoke/Ball Hill is a vibrant and diverse neighbourhood located in the heart of Coventry, making it an excellent place to live for people who enjoy being close to the action. The area is home to a large student population due to its proximity to the University of Warwick, which adds to its lively atmosphere and makes it an exciting place to live. The neighbourhood is also well-connected, with easy access to public transport and major roads, making it an ideal location for commuters.
A significant advantage of living in Stoke/Ball Hill is the range of amenities on offer. The area has a wide selection of local shops, supermarkets, and eateries, providing residents with plenty of options for their daily needs. The neighbourhood is also home to a number of green spaces, including Stoke Green Park and Spencer Park, offering plenty of opportunities for outdoor recreation. Additionally, the city centre is just a short distance away, providing access to a wide range of cultural and entertainment venues, making Stoke/Ball Hill an ideal location for those who enjoy city living.
If Stoke/Ball Hill sounds like the perfect place for you, get in touch with our friendly team for trusted mortgage advice in Coventry.
Hillfields is a vibrant and multicultural neighbourhood located in the heart of Coventry, making it an exciting place to live for people who enjoy urban living. The area is rich in history and culture, and is home to a diverse mix of people from all over the world. This creates a unique and dynamic atmosphere that is hard to find anywhere else in the city.
One of the main advantages of living in Hillfields is its central location. The neighbourhood is just a short walk from Coventry city centre, providing easy access to a wide range of cultural and entertainment venues. There are plenty of local shops, cafes, and restaurants, offering a diverse range of goods and services. Hillfields is also well-connected, with good transport links to the rest of the city and beyond, making it an ideal location for commuters.
With several schools and healthcare facilities in the area, Hillfields is a brilliant place for families. As well as this, Hillfields provides a strong community feel which is perfect if you are new to the area. Overall, Hillfields offers a unique and exciting lifestyle that is hard to find elsewhere in Coventry.
Barras Heath in Coventry, is an excellent place to live for many reasons. Firstly, the area is conveniently located near the city centre, which means that residents have easy access to all the amenities and services that the city has to offer. This includes restaurants, cafes, shops, and entertainment venues, all of which are within walking distance or a short drive away.
Coombe Country Park is only a 10 minute drive down the road and provide an area full of green space and history with Coombe Abbey nearby! If you are looking to move to Barras Heath to start a family, the rea has many schools nearby as well as many play parks.
Get in touch with our friendly mortgage broker in Coventry if you are looking at obtaining a mortgage for a mortgage in Barras Heath.
Located a short distance away from the city centre, Bell Green provides a variety of amenities and transport links. The area incorporates the neighbourhoods of Bell Green, Hall Green and Alderman’s Green.
Riley Square and the Gallagher Retail Park is the main hub for shopping with the centre being home to many well-known retail shops. Moreover, the area is home to several beautiful parks and green spaces, such as the nearby Longford Park, providing residents with plenty of opportunities for outdoor activities and relaxation.
Bell Green also has a strong sense of community, with friendly locals who are welcoming to newcomers. This makes it an ideal place to live for those who enjoy building connections and feeling a part of a community. Overall, Bell Green offers a fantastic balance between convenience, amenities, and community, making it an excellent choice for anyone looking to settle down in Coventry.
Canley, located in Coventry, UK, is an excellent place to live for a variety of reasons. One of the most compelling aspects of this neighborhood is its affordability. Compared to many other areas in the UK, Canley offers more affordable housing options, which can be a significant advantage for those who are on a budget or looking to save money. Additionally, there are plenty of amenities available in the area, including a local shopping center, restaurants, and pubs, which makes it a convenient place to live.
Another benefit of living in Canley is its proximity to the University of Warwick, which is one of the top-ranking universities in the UK. This means that the area is home to a diverse and vibrant community of students and faculty, which can create a stimulating and intellectually engaging environment. The university also offers a variety of cultural and recreational activities, such as music concerts and sporting events, which can be enjoyed by residents of Canley.
Furthermore, Canley has excellent transportation links, with easy access to the M42, M6, and M40 motorways, which can be advantageous for those who need to commute to work or travel for leisure.
Furthermore, Spon End is a very diverse and multicultural area, with a thriving community that is welcoming to all. It is also known as one of the oldest areas in Coventry with the area being historically known as being an independent community that was located outside of the City Wall.
Spon End is where the Butts Park Arena where Coventry RFC is based as well as the Coventry Bears who play rugby league. Furthermore, the area is brilliant for amenities with Spon End being only a 10 minute drive to the city centre of Coventry which has plenty of shops and eateries.
There is plenty of transport links to get in and around Coventry including buses and trains. As well as this, Spon End is a short drive to the M6 which is great if you are looking to commute or travel further out of Coventry. If Spon End sounds like the perfect fit for you, get in touch with our friendly team who can help you with the mortgage aspect of the homebuying process.
Are you considering buying your first home or planning to move home in Coventry and need mortgage advice? If so, Coventrymoneyman is here to help!
Your mortgage journey is made easy with Coventrymoneyman – your Mortgage Broker in Coventry. Utilising over twenty years of expertise within the mortgage industry has allowed us to access a large panel of deals. We can search thousands of these deals and pick out one that matches your personal and financial situation.
Get in touch, and let’s get you booked in for a free mortgage consultation to speak to a mortgage advisor in Coventry today. We understand the mortgage process can be stressful, but it shouldn’t have to be. We want to offer a helping hand and assist you in the world of mortgages.
The Financial Conduct Authority does not regulate some types of commercial or buy to let mortgages in Coventry.
In the mortgage world, there are a wide variety of routes that someone buying a property in Coventry can go down. From first time buyer mortgages in Coventry, to remortgages in Coventry, holiday lets and even HMO properties, there’s a lot you could do!
One of the options that we come across most, that is incredibly popular for property buyers, is a buy to let mortgage in Coventry.
A buy to let in Coventry is a property purchased as an investment, it’s not a property you can live in, the sole purpose is to generate income. If you have been a private renter at some point in the past, it is incredibly likely that you have a buy to let mortgage in Coventry.
For a property to have the classification of a buy to let in Coventry, it has to be mortgaged as that type of property, with the landlord expressing their intent to rent. The tenant will be paying a monthly rental fee, that in theory should cover the monthly mortgage costs that the landlord has, plus extra.
There are many different factors to take a look into, before you are able to determine your eligibility for taking out a buy to let mortgage in Coventry.
Some of these factors will include the type of property you’re looking to purchase, how old you are (you need to be at least aged 21 and not all mortgage lenders will let you borrow past aged 75), as well as any prior experience you have of being a buy to let landlord.
The biggest factors to look at are affordability, the minimum required deposit for a buy to let mortgage in Coventry and lastly, your credit score.
For you to be able to prove that you are eligible for a buy to let mortgage in Coventry, you will need to prove to your mortgage lender that you can afford it. Most mortgage lenders base their criteria on what the projected rental income will be.
Projected rental income is the figure that your mortgage lender believes you should charge as rent, in order to cover the costs of your monthly mortgage payments, plus some more. There will be a set requirement for this, which is calculated based on the property value.
Further to this, there are some mortgage lenders that work with buy to let mortgages in Coventry, that will also have a minimum income requirement. This typically sits around £25,000, though this will entirely depend on your mortgage lender.
An expert mortgage broker in Coventry with experience in working with buy to let mortgages in Coventry, such as Coventrymoneyman, will look to find the most suitable mortgage lender for your plans, as well as with the best deal for your buy to let investment purchase.
As tends to be the case with most purchases, there will be a need for you to put down a deposit. For a buy to let mortgage in Coventry, you are typically looking at a 20-25% deposit on the property, though can be more or less, depending on your mortgage lender.
The reason that they require this deposit, is to reduce your risk to the mortgage lender, as a higher deposit means you borrow less against the property. You’d be giving yourself a 75-80% loan to value as well, which gives you much better interest rates.
If say you had bad credit when applying for a buy to let mortgage in Coventry, you would be seen as a higher risk to the mortgage lender than the standard applicant, perhaps warranting the need for an even bigger deposit.
It may be entirely possible to get a buy to let mortgage in Coventry even with a poor credit score or with a history of having bad credit, though your mortgage lender options may be much more limited. There may even be some who won’t lend to someone with bad credit at all, depending on severity.
Fortunately, there are mortgage lenders who are willing to consider buy to let bad credit mortgages in Coventry. Of those mortgage lenders, they will want to again look at how bad it is, possibly requiring a higher deposit than you otherwise might have saved up for.
In order to make an application for a buy to let mortgage in Coventry, you’ll first need to find a property that you would like to buy.
From that point, the next step is to get in touch with an open & honest buy to let mortgage advisor in Coventry, in order to confirm your eligibility. They will also check the market for the absolute best deals for you and arrange your mortgage agreement in principle.
Once you have this document, you will be able to make an offer on the property you wish to buy, which will lead on to your full mortgage application process, providing that offer is accepted.
Typically speaking, the majority of buy to let mortgage investors will take out an interest only mortgage on their property, as this means only paying interest per month, lowering your monthly outgoings.
Once the term comes to an end, you will owe the remaining capital balance. This is either covered by remortgaging it onto a repayment mortgage or by selling the property. You may be required to set up a repayment vehicle, to cover the costs.
Whilst this is mortgage type we come across the most with buy to let in Coventry (and is perhaps more tax-efficient for some), repayment mortgages are still valid options for buy to let landlords. This means your mortgage, much like a standard residential, would be interest and capital combined per month.
Even though this will likely increase your monthly mortgage payments, equity can grow quicker in your property. Furthermore, when your term ends, you will own your property outright, negating the need to pay back any large capital owed.
As discussed, a mortgage lender will want to stress-test your projected rental income, as a means to see how much you would have to earn in order for your monthly mortgage payments to be safely covered.
In terms of the amount that you are able to borrow, providing that your projected income can cover the amount you wish to borrow, you typically won’t have many limits. A mortgage lender may still want to see though that your projected rental income exceeds how much you owe per month, by a set amount.
You will need to provide your mortgage lender with a series of documents, before you are able to proceed with your buy to let mortgage process. This can include things like proof of income, deposit, your ID, address, any bonus or commission you earn and your current/most recent P60.
If you are a self employed mortgage applicant, you also typically need to provide your SA302 tax returns. Existing landlords may also be required to provide proof of rental income, which usually is found in the form of an ARLA-regulated report, as well as a mortgage statement for your other properties.
Having as much of this with you as you can, prior to starting your buy to let mortgage process, will allow you to move through your mortgage application much quicker, so we would absolutely recommend being as prepared as you can be.
Of course any mortgage will have a series of costs involved and a buy to let in Coventry is no different. There will be your deposit, you could have mortgage arrangement fees, application fees and even broker fees, plus your monthly payments, all things you may be expecting.
Further to this though, there may be additional fees such as solicitors fees, disbursement fees, stamp duty land tax, valuation fees, product fees and mortgage exit fees.
Your mortgage advisor in Coventry will be able to give you a more accurate look at the potential stamp duty rates. If you ever decide you wish to leave your buy to let mortgage in Coventry early, there may also be an early repayment charge (ERC), which are often very expensive.
Lastly, you’ll have to consider the different costs that exist beyond just a mortgage and mortgage process, such as landlords insurance, letting agent fees, income tax and then of course the standard property maintenance costs.
Over time you are likely going to have tenants that need something to be looked at or fixed. Depending on the works that will need to be carried out, as well as the contractors you are working with, this can vary from cheap to quite costly.
All of the various costs that are involved with a buy to let mortgage in Coventry will depend on both your mortgage lender and personal/financial situation. Not every cost will apply, though your mortgage advisor in Coventry will make sure you are aware of all these costs.
As a general rule, yes you will be able to remortgage a buy to let in Coventry. Common reasons we hear for landlords looking to remortgage a buy to let in Coventry, include releasing equity as a means of funding the deposit for a further property purchase.
The equity that is sitting within your buy to let in Coventry works a little differently than a standard residential property, if you happen to be on an interest only mortgage. Typically, your balance and interest would come down together, creating a much bigger gap between the balance and value.
With an interest only buy to let in Coventry, you would only see the interest come down. That means your equity depends on your deposit and if your property is now worth more than it was. Those who have an interest only mortgage may also decide they wish to pay their capital after all.
This is something that could be achieved, by remortgaging your buy to let in Coventry from an interest only mortgage onto a repayment mortgage. Whilst your mortgage payments would be higher, you would be able to pay both interest and capital together.
Though you may have limited options, you may actually be able to get a buy to let mortgage in Coventry, as a first time buyer in Coventry. With buy to let mortgages in Coventry as a first time buyer, you will most likely need to put down a bigger deposit, so you can access the amount you would like to borrow.
In addition to this, it is important to remember that you would be losing benefits that first time buyers get, such as stamp duty. This is because you will not be living there and buy to let landlords will have at least some level of stamp duty that they owe on their properties.
For some first time buyers in Coventry, you might find that being a landlord is actually a good way to create a boost to your income, prior to going on to find a property of your own with a mortgage.
Please bear in mind that when this happens, a mortgage lender will be assessing you on that second purchase with the knowledge that you already have taken out a mortgage in your name before. This could affect your affordability or lower the amount that you are able to borrow.
Originally brought forward in 2014, following the successful launch of the Help to Buy Equity Loan Scheme, the government introduced a scheme that by design had the purpose of reducing the low rate of forces home ownership across the country.
The Forces Help to Buy Scheme in Coventry is available to Tri-Service members, the Royal Navy, Royal Marines, Army and Royal Air Force, so long as they can meet the criteria.
Further to this, the Ministry of Defence’s Defence Accommodation Strategy also comes into play with this, aiming to make sure everyone has equal access to a good standard of accommodation.
Outlined in the MoD’s strategy, is the positive impact that homeownership can potentially have on people with inherently mobile careers, with these including partner employability, stable education for their kids and also continuity, as members of the services move out of being in active service.
Though it was supposed to end back in 2019, we have seen a few extensions for the Forces Help to Buy Scheme in Coventry, with the government eventually turning this into an enduring policy, which will allow it to remain available to all service members, both now and in the years to come.
The way that the FHTB Scheme will work, is that service personnel have the ability to borrow up to 50% of their annual salary, which will have a cap at £25,000, free from interest. They are able to use this, either as a means to buy their first home or if they are an existing homeowner, move home.
It is currently available to all regular personnel who have completed the required length of service, are not listed as a reservist or member of the Military Provost Guard Service, have more than 6 months of time left to serve at the time of application and that meet all of the correct medical categories.
That being said, there may still be exceptions to the criteria, especially when you are factoring in special medical and personal circumstances. To learn more about this and other information regarding a Forces Help to Buy in Coventry, please take a look at the government guidance website.
Possibly one of the best aspects of FHTB, is that you are not required to have any current savings of your own before you can use it to get onto the property ladder. You have the freedom to use this towards costs such as a deposit, solicitors fees, estate agents fees and even stamp duty land tax.
The handy news regarding deposit too, is that the vast majority of mortgage lenders will accept the funds from FHTB for doing so. It tends to be a much more relaxed scheme than other home buying schemes, with the loan from Forces Help to Buy in Coventry only requiring you to pay back over a period of 10 years.
As an open & honest mortgage broker in Coventry, that has a deep love and respect for our service members across the United Kingdom and in Coventry, we’re here to support and help you on your home buying journey in any way that we are able to do so.
From your initial point of contact, all the way through until you achieve mortgage completion and even beyond, your dedicated mortgage advisor in Coventry will work hard to make sure that you are taken care of and end up with the best result for what it is you wish to achieve.
To learn more, you are welcome to book yourself in for a free mortgage appointment and we will see how we are able to help you throughout your home buying experience.
Note; The Forces Help to Buy in Coventry is not the same as a standard UK help to buy in Coventry or shared ownership in Coventry.
If you are both a current service member and homeowner that is looking to use Forces Help to Buy in Coventry for moving home, and are aged 55+, it may be worth looking at your options for equity release or retirement interest-only mortgages (RIO Mortgages), as forces pensions may prove to be beneficial in this regard.
To understand the features and risks of equity release in Coventry and lifetime mortgages in Coventry, ask for a personalised illustration.
A lifetime mortgage in Coventry may impact the value of your estate and it could affect your entitlement to current and future means-tested benefits. The loan plus accrued interest will be repayable upon death or moving into long-term care.
As a Mortgage Broker in Coventry, we have had the opportunity to help many first time buyer in Coventry and those looking at moving home. Through this time we have found that the most common question we get asked is ‘How much will this all cost?’.
In this article, we have collated a list of the fees you can expect to pay to help you organise the costs accordingly when buying a new home (and when they become payable).
This cost is one for people who are looking at selling their house. These days, we have found a growing interest in online estate agencies with the price of a basic Rightmove listing being as low as £500. On the other hand, for a more tailored and local service with a dedicated sales negotiator, the fee will be roughly around 1-2% of the property price.
Having a valuation carried out on your chosen property will be something your mortgage lender will want you to do. The reason for those is so they know they are lending against adequate security.
When it comes to the price of a property surveys can differ starting from nil (for a basic valuation with some lenders) up to a few hundred pounds for a more in-depth homebuyers’ report. It could be even more for a Full Building Survey.
The importance of working around the cost is that you always have an element of choice when it comes to the level of detail your survey goes into. This is likely down to the age and the type of property you are looking to buy along with any fears/concerns you have about it.
For more information about property surveys, which survey is best for you and how we can help as a Mortgage Broker in Coventry, check our article on ‘what is a property survey’.
You might find that some mortgage products offer cheaper rates, however, keep in mind that this would come with an arrangement fee which could end up outweighing the benefit. This doesn’t apply to all mortgage lenders, so you may not need to pay anything.
In some cases, you may need to pay these fees upfront or you may be able to add these onto the balance of your mortgage. Keep in mind, that it would mean further interest charges.
Our Mortgage Advisors in Coventry have access to a panel of lenders all offering a range of mortgage products. From this, they will be able to compare mortgage deals with all fees added so we can compare on a like for like basis.
You will need to factor in the services of a solicitor with their fees varying between firms and largely differ. As an estimate, a straightforward purchase with a local company is £600 for a low-value property.
This will involve you to provide the property address if it’s leasehold or freehold and the amount you are purchasing for it to get accurate quotations.
The key points to cover when asking for a quote are:
Along with the costs and disbursements that come with paying your solicitor, depending on your situation, you may need to pay this tax that the solicitor collects on the completion of the property purchase. Full details can be found on the gov.co.uk stamp duty page.
Normally, a mortgage broker in Coventry will charge for their service. The amount you pay varies from company to company. Here at Coventrymoneyman where we provide open and honest Mortgage Advice in Coventry, your dedicated advisor will explain these in more detail within our free initial mortgage appointment.
We would suggest you approach a local company like ourselves instead of a big organisation. Usually, they will charge only on completion instead of any application fees and further costs that could be incurred.
If you are moving home in Coventry, the cost of moving your furniture can differ significantly and still can be pretty costly. A cheaper alternative is to hire a van and carry out the work yourself. Finding a local man with a van could be slightly more in price than hiring your own van. On the flip side, a professional van service could cost you high hundreds, early thousands.
Lenders will look out for a variety of things when it comes to assessing your bank statements. They do this in order to see what your spending behaviours are like to determine whether or not you will keep up with your mortgage payments or not. A common question first time buyers in Coventry crops up when speaking to customers is: “do gambling transactions look bad on my bank statements”.
You might enjoy putting down an annual bet on the grand national or regularly use internet betting sites, as you can tell, there is nothing illegal about properly licensed gambling. It is known to be a popular hobby or pastime with many bookmakers advertising it on mainstream TV and radio.
If you have seen these adverts, you have probably noticed that they always urge customers to ‘please gamble responsibly’ and this is an important point you should think about when applying for a mortgage. It’s not the lender’s job to dictate your spending habits or moralise the ethical pros and cons of gambling, however, they do have a duty (underscored by mortgage regulation) to lend responsibly.
Think about it this way, if lenders need to prove to the regulators that they are making well-judged lending decisions, it’s fair for them to expect a similar approach when it comes to their personal finances. If you were lending your own money would lend it to the applicant who gambles or the one who doesn’t?
As stated previously, it is not illegal to gamble. With this in mind, you will not be declined by a mortgage if you have the odd gambling transaction on your bank statements. The lender will decide whether these transactions are reasonable and responsible. They will look in detail of how frequent these transactions are, the size of the transactions in connection with the person’s income and the impact upon the account balance.
Having infrequent small gambling transactions that make little difference on a regular credit bank balance will not likely be seen as important. On the flip side, placing bets most weeks or being constantly overdrawn, the lender will view your spending behaviours as irresponsible and decline your application.
As you know, lenders will look at your bank statements to basically see how you manage your money and to help them determine whether they are confident in you managing payments or not.
Lender are financial institutions that either directly or as part of a wider group, usually sell current accounts, overdraft facilities credit cards and personal loans, therefore, you need to know that these factors all go towards wise financial planning. It’s good for a mortgage applicant to know how these facilities are managed. You might have an overdraft facility and occasionally use it, which is not essentially a bad thing, however, exceeding the overdraft limit regularly which is not so good. If you have excess overdraft fees or returned direct debits, these would be things lenders will look for and will show them that your account is not being managed well.
As well as this, lenders will also look for credit transactions from pay-day loan companies; “undisclosed” loan repayments (i.e. if you said on the application that you have no other loans but there is regular loan payments appearing, this could be an issue). They would also look out for any missed payments and they see how much of a typical month is spent in overdraft – i.e. you might go into credit on payday and for the rest of the month you are overdrawn, you need to wonder how you would manage with a mortgage.
You can be sensible and plan ahead if you can. Usually, a bank still request up to three months of your most recent bank statements. These documents will show your salary credits and all your regular bill payments. Because of this, it’s best that you avoid any of the situations above, especially if you are looking to apply for a mortgage in the near future. You could avoid gambling for short period and work on presenting your bank account in the best way.
Seeking help and support from mortgage broker in Coventry can be helpful because there are some lenders who may ask for fewer bank statements than others or may not request them at all. Despite this, lenders do still have the right to reserve the right to request bank statements in particular circumstances so it’s best that you be as prudent as possible when you are in the midst of any mortgage application. Remember, if you do gamble, please gamble responsibly!
In the circumstance where you are a first time buyer in Coventry who doesn’t have a lot of knowledge about mortgages, it’s you get some specialist advice from an expert mortgage advisor in Coventry. Throughout the process, your dedicated advisor will provide a helping hand with your application and work hard in getting you up to date so that lenders will be impressed.
Beginning the journey of finding a property and obtaining a mortgage can be daunting for many homebuyers, particularly if they are going through the process on their own.
As a Mortgage Broker in Coventry, we have spoken to a number of First Time Buyers in Coventry who have decided to buy a property with a friend or partner if they are able to.
A part of the process will involve the advisor carrying out an affordability assessment in which they will ask you about your financial situation. This will give us an idea of the maximum mortgage amount. In the case where there is two applicants, lenders will factor in both of the applicants’ income. Due to two sources of income being on the mortgage, it can increase your chance of getting a mortgage offer.
In the event that you were to default, your co-borrower could also be responsible for the full mortgage, and vice versa.
Below is a list of helpful tips we advise you consider when moving into a property with a friend or partner.
This all goes down to which lender you are with, however, you will usually be able to co-borrow with up to four people jointly.
As much as having more people involved can work well with getting accepted, it’s best to keep in mind that this does increase your chance of someone pulling out before the term ends. Therefore, you need to be mindful of the people are choosing to buy a property with.
There is the option to increase your mortgage later if you want to, however, all parties need to agree to this. Keeping this in mind, it’s best to plan ahead for your future and your plans for the property.
Joint tenancy is an option that is more popular with civil partnerships or married couples. In the eyes of the law, joint tenants are two halves of one whole, one borrower. Therefore, in a tragic event where one half of the party passes away, the property would automatically be given to the other half.
In the circumstance, where you are looking to remortgage or sell the property, both of you would have agreed prior to proceeding with the mortgage.
A ‘Tenancy in Common’ can be an option if you and your co-borrower are friends or family. This means that you both own your part of the property.
You don’t need to split your shares equally either. Therefore, if you find that one of you is on a higher income, for example, one of you will own more of the property than the other.
One benefit of being a ‘Tenant in Common’ is that you can have the freedom to act independently so it’s your choice if you want to sell or give away your share.
A mortgage lender will stress that all borrowers are jointly and severally liable. Due to this, you will be responsible to keep up the payments if one person decides not to pay their part of the mortgage.
If you are looking to buy a home with your other, you never really expect that you’re going to split up before the term ends. It is a big financial commitment to make, let alone with someone else, and can be a difficult process if you want to make changes.
This can be even more challenging if children are involved because it is likely that one parent will stay with them whilst you are the one who will move out and possibly find your own mortgage. Regardless of whether you are staying or going, both parties will need the help of a Mortgage Advisor in Coventry.
Even if the person has been paying the mortgage with the input of their ex or not, this doesn’t change the fact that it was applied for in a joint name. This means that in the event of arrears, they will still chase both parties.
Prior to removing your ex-partner from a mortgage, the lender will need to be sure that you will be able to maintain mortgage payments by reassessing your income before they proceed.
It can be common for people to apply jointly for the second time with a friend, family member or new partner if they are will struggle to afford a mortgage on their own. In this circumstance, it can be beneficial to obtain Mortgage Advice in Coventry.
As mentioned, in the circumstance where you may end up divorcing or separating from your partner while on a mortgage, you are both still responsible for the property and its mortgage payments.
Firstly, you would need to get in touch with your lender if you were the one who wanted your name removed from your mortgage. You can’t just make an agreement between the two of you.
In the situation where you are looking to get a mortgage of your own, the lender would take into consideration the property you are currently tied to. Therefore, it’s important to make sure that you are removed from the previous mortgage.
Circumstances like these will require you to look at getting Mortgage Advice in Coventry.
You will find that some lenders will be more generous than other when it comes to how much they will be willing to lend you. This is something your allocated Mortgage Advisor in Coventry will factor this in when recommending the best mortgage lender for you to approach.
Whether you are a first time buyer in Coventry who are viewing properties on the market you may have come across estate agents who are keen for you to use their in-branch mortgage advisors in Coventry and recommended conveyancers. We tend to receive a lot of feedback as to what sales tactics can be used. Examples of this are:
We’ve heard of cases where the agent has tried to insinuate that you could lose the property if you go with someone else. That is not the case. Some estate agents might even state that the seller would prefer you to arrange an in-house mortgage, but this is unlikely to be true either. The seller only cares that you are in a financial position to proceed.
Obviously, the estate agents earn extra commission from you when you use their additional services. So, there is an incentive for them to try and persuade you. If you don’t like being sold to, here are some of the tactics to look out for:
There are several other ways you can arrange a mortgage without using the in-house mortgage advisor at your estate agent. In this article, we will try and help you decide who to use for your mortgage and how to make sure you are receiving value for money.
Some people are confident using price comparison websites to get an idea of the rates available. And this is totally understandable from a cost-saving point-of-view. However, please remember that it’s important to take advice at some point in the process. This is because buying a house is a very big deal, especially as a first time buyer in Coventry, and it’s important you get it right.
Here are some things to look out for if you want to have a go at applying online:
You could arrange a mortgage directly with your bank. Lots of people used to do this but not so much anymore. People’s trust in the advice they receive from banks is much less than it used to be.
What do you need to be aware of?
Some buyers are reluctant to hand over their financial details to an Estate Agent. They are worried that the vendor might find out what financial position they are in.
If you use a Mortgage Broker in Coventry not connected to the estate agent, you can seek an agreement in principle. You can then provide this document to the estate agent to prove you are in a position to proceed. The agent will then most likely ask that you evidence your deposit too, along with ID.
A good Mortgage Broker in Coventry will guide you through the full process of buying a home and give you open and honest advice. Here at Coventrymoneyman, we can access 1000s of deals from across the market and aren’t tied to any particular lenders. Therefore, we can get the best deal most suited to you and your personal circumstances.
If you decide to find your own Mortgage Broker in Coventry, make sure to take up any offer of a free mortgage consultation. Taking the time to find an advisor you like and trust can have immeasurable benefits in the long run.
The first place we should visit is the question of what is exactly is gazumping? The term gazumping is used as a way to describe an instance where a property seller accepts accepts an offer from another buyer, even if you’ve already started applying for your mortgage.
A lot of people may understandably ask the question; “Surely this isn’t legal? Especially if the seller has already accepted your offer to buy the property?”
Whilst yes, it is highly immoral and we do not condone the act ourselves, the unfortunate case is that it is not illegal and thus nothing can be done if that happens.
Gazumping happens all too often and for better or worse is a regular occurrence across the English & Welsh property markets.
The reason for this, is because until there have been written contracts exchanged by the lawyers, the agreement is not legally binding. Verbal agreements will not hold up in the court of law.
For first time buyers in Coventry, being gazumped can be especially difficult and demoralising. You’re on your way to finally achieving your home owning dreams, when it all suddenly comes crashing down.
You may also find yourself caught up in a property chain that breaks, resulting in you having to push back your moving day. If you end up losing money because of this (perhaps you’ve already paid for non-refundable survey costs, conveyancing fees etc.), it can be even more frustrating.
As mentioned further up, until there has been a legal exchanging of contracts with your lawyers, any agreements made verbally won’t be legally binding. The seller is under no obligation to take the moral high ground and does not need to keep their word.
Between the point of having your offer accepted and exchanging deals, there can unfortunately be a good number of weeks. Whilst dedicated mortgage advisors in Coventry will aim to work as quick as they can, it’s not an instantaneous process and does take time.
The reason that the mortgage process can take as long as it does, is down to varying factors, such as having someone come out to do a property survey, arranging for a conveyancer to carry out the required searches and then also waiting to receive your mortgage offer.
Whilst you’re waiting for all this to go through, other first time buyers in Coventry may come in and make the seller a better offer than what you had both previously agreed on, leading them to accept and leave you without a property to buy.
It’s difficult to pinpoint a specific cause of gazumping, as it varies per situation. Sometimes it’s financial preference, but it can also be anything from a buyer who’s process may be quicker, to someone who isn’t reliant on a property chain.
The term ‘gazumping’ is used as an umbrella term for any of these situations, wherein the seller takes up another offer after already verbally agreeing to yours.
There’s not a lot that can be done initially. A lot of the steps that might occur may not even become factors until you have decided to make an offer on the property.
Those steps, for reaffirmation of the points mentioned earlier, are having someone take out a property survey, finding a conveyancer to do searches, and the point where your mortgage is offered.
Even though you have limits as to what you can do to start with, you may still be able to quicken the pace between making an offer and exchanging your contracts. These are a few ways in which you can do this:
Additionally, there are a few other tips and tricks that may be quite useful to you and give you some additional security prior to the point of making contract exchanges with the seller.
First of all, make sure you ask the seller if they can possibly take the property down from the open market whilst you’re sorting out your mortgage, as this will lower the chance of someone else jumping in with an offer the seller can’t refuse.
The property owner is not obligated to agree to this request, though we generally find that many homeowners will agree to this request out of respect, especially if they’ve struggled in getting offers on the property in the first place.
Second of all, you should definitely look up your options for setting up a Lock-in-Agreement, as this means the seller has something to lose too as they will have to put down a deposit down as well.
If one of the party decides to pull out of the deal with one of these agreements in place, the other side will take their deposit. Sorting this out on the legal front can cost a pretty penny, but for that added security you may find it to be very beneficial.
Last of all, you may have the option of taking out insurance in order to protect yourself against being gazumped. These policies will be an agreement that in the event you are gazumped, you will receive a lump sum payout.
The Shared Ownership scheme was introduced following the credit crunch in 2012, the scheme gives first time buyers and home movers the chance to buy a share of a property and then rent the remaining part of it.
Shared Ownership will let you take out a mortgage/purchase a share of a property. This is a percentage-based share; usually, you will have to own a share of at least 25%-75%. However, in recent times, some properties are letting you have a share as low as 10%.
You will also have to pay rent back on the remaining share of the property. Your mortgage bills should be lower as you’ve taken out a mortgage on a lower share, so you should be able to compensate for the rent payments.
Furthermore, since you’re taking out a lower share in the property, your initial mortgage deposit should be lower. Maybe partial homeownership is the route that will help you get onto the property ladder.
Although it can differ based on your credit history, since it’s likely that you’re only purchasing between 10%-75% of the property, the minimum deposit required should be lower.
Here’s an example of how Shared Ownership would work. If you take out a 50% share of a property that’s valued at £250,000, you’ll only need to borrow £125,000 for your mortgage. In addition to this, say that you’re required to put down a 5% deposit, you’ll only have to supply £6,250 rather than the whole £12,500 if you were to take out a 100% mortgage on the same property.
Once your Shared Ownership papers have gone through and you’ve put down your deposit, just like any other mortgage type, you’ll start paying back your mortgage each month. You’ll also be paying rent to the housing association that is linked to the property.
In theory, your combined mortgage and rent payments shouldn’t be as much as if you were to have taken out a 100% mortgage. Your mortgage advisor in Coventry can go through the costs with you.
With any type of mortgage, you’ll be faced with a few different costs and fees; the same costs should apply to Shared Ownership.
You’ll have to consider obvious set-up/mortgage arrangement fees and possibly booking fees. There may also be a stamp duty charge on your property, it depends on the property price and how much you’re buying it for. You can speak to your mortgage advisor in Coventry about stamp duty to find out which threshold your property is in. Don’t forget about solicitor and legal fees too.
Costs may vary depending on the property that you’re buying. Deposit size, monthly payments, arrangement fees will differ from property to property.
You’ll have to match the Shared Ownership criteria before you can move forward with your application:
Although this may seem like a long list of requirements, you must remember that most of the other home buying schemes are the same or have an even longer list! At the end of the day, the scheme was made for a specific target audience, so if you don’t match it, it probably isn’t for you.
Our team has been working as a mortgage broker in Coventry for over 20 years now. Along the way, we have helped many applicants secure Shared Ownership mortgage products – it’s one of our many specialities.
Shared Ownership fits within the government-led ‘Own Your Home‘ project. There are many different schemes available through this project; you can find out more information here. We offer a free Shared Ownership mortgage appointment to every customer. Book online today and speak with a mortgage advisor in Coventry at a time that suits you.
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UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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Coventrymoneyman.com & Coventrymoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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