Moving home can often be quite stressful for homeowners, as well as a process that takes a lot of time and money. It can beg the question of why so many people actually choose to do it?
From having little space to grow in, to wanting new scenery to look at, this article will look at some of the main reasons why some people instead look at moving home in Coventry.
We regularly find that our customers, especially those who are first time buyers in Coventry, will typically choose to live in a smaller property at first. Plans may change down the line though, leaving the homeowner in need of a bigger space to live in.
To give an example of this, you may decide in the future that you want to start a new family, something which may be difficult in your current smaller sized property. This isn’t always the case though, as some just simply want a bigger home to live in.
Although moving home in Coventry is a viable option here, it’s worth noting that some homeowners instead choose to raise capital by remortgaging to fund some necessary home improvements, perhaps an extension on the property, a loft conversion or a home office.
Remortgaging to fund home improvements is a very popular option these days, especially with growing families and could help to provide the desired extra space, whilst allowing you to keep the home you’ve built over time.
People may also take on these sorts of projects in order to raise the property’s value, just in case they ever decide to sell the property and want to make a nice profit from the sale.
Another one that we also regularly hear about in these situations, is that the homeowners had grown tired of the same sights and very much needed a change of scenery, choosing to seek out a possible new location altogether to live in.
This is again quite a common occurrence with a section of borrowers who are maybe first time buyers, as they may have been limited with where they could live due to budget and were stuck with a lower-end property until they could afford something better.
Chances are that these borrowers will have a much higher income than they did when they first applied for a mortgage and now they want to live in a much better area in a potentially bigger property that is more to their liking.
We also quite often hear from customers that one of the main reasons they were looking to move home, was so that they could be closer to their family and friends, who they maybe previously lived further away from. This is even more common with people who want to start a family.
If both parents are in regular employment, this would mean that they will probably need to enquire about childcare services. Unfortunately, many Private nurseries nowadays cost quite a lot of money, which results in a lot of parents reaching out to family for support.
If you are considering the prospect of moving home in Coventry, you will need to make sure that you are aware of all the costs involved with this sort of process.
Book a free mortgage appointment to speak with a mortgage advisor in Coventry. They will sit and work out what your maximum borrowing capacity might be, as well as an estimated cost of your monthly repayments.
If moving home doesn’t sound right and instead you would like to remortgage, get in touch today and book a free review with an expert remortgage advisor in Coventry.
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.
We tend to find that the majority of high street mortgages are portable. That said, you will have the capability to move it from one property to another without incurring any penalty.
Portable mortgages are beneficial if you are looking to move into a new home and are currently involved in a contract with a fixed rate. It may lead you to potentially avoid any early repayment charges that could have occurred.
While many mortgages available to customers are indeed portable. It doesn’t apply to all mortgages. For example, some specialist lenders will not allow this to happen. By getting in touch and speaking to your mortgage lender for a quick discussion can give you some confirmation on this.
Even though it will be there as an option more often than not, in many cases, homeowners may choose not to. Possibly the lender isn’t willing to lend them the necessary additional funds needed to move home.
It’s important to know that the additional funds will be at a different rate to the rate that your current mortgage deal is currently on.
Depending on what your lender offers you, it may even be more beneficial to take on those early repayment charges rather than staying where you are.
A sub-account on your mortgage gets created at the point where you decide to port your mortgage, with the additional funds placed onto a different deal than the one you have on your current mortgage.
In any case, although you have a single mortgage and a single direct debit in your name, different interest rates will apply to each.
Further down the line, having sub-accounts can be known to cause a bit of trouble. The reason for this is because different products will eventually overlap one another.
Managing to get them aligned once again could mean that one of the sub-accounts has to fall onto the lender’s standard variable rate for a particular amount of time. For more information, don’t hesitate to contact us to speak with a mortgage advisor in Coventry, and we’ll see how we can help you.
No matter if you’re moving house in Coventry, working with a buy to let mortgage or require help with a self employed mortgage. You can book yourself a free appointment around a time/date that suits you to discuss your options with a mortgage advisor further.
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 25%-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: www.ownyourhome.gov.uk
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.
Buying a home can be a stressful experience, which is why home movers and first time buyers in Coventry use a mortgage broker to help make sure their home buying process go as smoothly as possible. It’s comforting for our customers to know they have someone on their side, on hand to answer any enquiries they have.
A mortgage advisor in Coventry will ensure you obtain the cheapest mortgage to suit your needs. We take full responsibility for recommending the most suitable mortgage for you and package your application to the Lender in such a way to give it the best chance of success.
The same applies when you come to remortgage too, we like to know our customers are on the cheapest deal for the entire mortgage term.
If you’re looking at taking out mortgage advice when buying a home, we recommend talking to a mortgage advisor in Coventry. Your committed member of the Moneyman team will be able to help you work out how much your payments will be, as well as how much you may be able to borrow.
That said, different lenders have their own strict lending criteria, so it does help to speak to an expert. If you know what you can afford well in advance of making an application, it may help you avoid any potential future disappointment.
We aim to ensure all customers are informed about their mortgage application progress so you are fully aware of what is going on. If you have any questions, we are available seven days a week, ready to help you out in any way we can.
Mortgage Brokers work for the customer, not the Lender. This is something that is important to remember throughout your process. Our team are firmly in your corner, sometimes having to argue how strong an application may be, in order to ensure it goes through.
Our company process of requesting and checking your proof of income and bank statements ahead of time allows us to try and avoid any hurdles that may arise, hopefully before they can become a factor.
We also can help you choose the right type of survey for your property, as well as instruct a Solicitor on your behalf to carry out the legal aspects of your transaction.
We love to build up customer relationships and assist with future mortgage enquiries, whether as a Buy-to-Let landlord with your portfolio or remortgage when your term ends. This often starts with an affordability assessment and Agreement in Principle prior to even finding a house.
Once your purchase is complete, a member of our team will keep in regular contact, and we will get in touch once more to discuss your remortgage options. We can then compare the market on your behalf as we did before to help you obtain the best remortgage deal available for your circumstances.
If you are a first time buyer in Coventry, you may not aware of what a mortgage agreement in principle is. A mortgage agreement in principle (sometimes shortened to AIP or DIP – decision in principle) is a document that demonstrates the lender believes, so far, you are a good candidate for a mortgage and are ready to go.
This shows both the estate agent and the person selling their home, that you are creditworthy as you have passed the lenders initial credit score. It’s important to remember though that this is not a guaranteed mortgage, as going for a full application will require even more in-depth background checks.
However, it is a good idea to get one done at the earliest opportunity for the following reasons:
When you are at the point where you would like to make an offer on a new home, you’ll find that the majority of estate agents will undertake due diligence and ask you to provide them with proof that you do in fact have the means to proceed with the property purchase.
Your proof will usually come in the form of bank statements, but can also be done using an agreement in principle. This is something that we can provide for you, usually within 24 hours of your initial appointment.
Once you have provided them with all this documentation, the estate agent will generally cease marketing the property and put a “sold” or “sale agreed” board up outside of it.
If you already have a mortgage agreed prior to making an offer on a property, this will definitely appeal to the seller, as this proves you are not making an offer on the fly and have actually put a lot of thought into how you’re going to fund the purchase.
This might persuade a seller to accept an offers you make that could possibly be under their asking price.
When it comes to purchasing a new or additional home, some customers like to try and run before they can even walk. They charge ahead all guns blazing, making an offer on a property without actually making sure they can proceed in the first place.
If the application then goes ahead and fails, this can result in disappointment that could’ve been avoided. The last thing you want to be doing is having your heart set on a new family home and then feeling down when it doesn’t work out the way you had hoped.
This can all be prevented by getting in touch with us at an earlier stage. Sometimes there are factors that may cause an application to fail, that given time and care with the help of a mortgage broker in Coventry, can be solved over time.
An example of this is, let’s say you have a disputed mobile phone bill that keeps cropping up. This is something that can be sorted with the appropriate action. Some think they’re on the voters roll when they are not. Give it a few weeks and that can be sorted too.
In some cases you might not be able to get a mortgage at all. If that does happen to be the case, it’s better that you are made aware of that now rather than mess people about. One of our dedicated mortgage advisors will be able to tell you what you need to do to improve your credit-worthiness for the future.
Let’s say in theory, you know that you have got a good credit rating and have never been turned down for credit, you’re registered on the voters’ roll and you’ve always keep up your monthly credit payments. What could possibly go wrong?
Well the truth is, you could approach 10 different lenders these days and get 10 different results from each of them! They all have their own lending criteria and calculate affordability in their own unique ways.
If you are Self Employed in Coventry it can be complicated further, as some lenders may take your net profit, whilst others are known to use your salary and divided. In some cases, you’ll find that lenders may even use your latest year, whilst others prefer an average over 3 years.
Being mindful of your borrowing limits is important as this will help you determine what your ideal price range will be. Ou dedicated mortgage advice team will be able to advise you of the maximum mortgage available to you. Also, more importantly, together we’ll work out how much you can afford to pay back on a monthly basis.
Now and again, we receive calls from tenants when the landlord has notified them and is considering selling their properties.
That said, it is much easier for landlords to sell to existing tenants than the open market. Tenants sometimes have the opportunity of deciding whether to accept or reject it before the landlord offers it to others.
The Government has re-evaluated tax reliefs previously afforded to landlords, leading many landlords to pay more tax than before, hence selling their properties. A prevailing situation for landlords.
On the other hand, more severe investors often keep their properties as they view it as a long-term arrangement and a sound investment despite legislative changes.
There are various reasons why a landlord might choose to sell their property to you. These include and are not limited to:
Not only are there advantages to landlords, but there are potential advantages to sitting tenants who are considering buying the property as a first time buyer in Coventry:
Some lenders will allow any discount the landlord offers you as part/all of your deposit if the agreed price is well below the open market value. It may even be possible for a tenant not to have to put down any deposit at all.
We tend to find nowadays that more parents are gifting a deposit than ever before. Realistically, the “Bank of Mum & Dad” is now within the UK’s top 10 biggest lenders.
It’s no surprise how many younger people struggle to save enough for a deposit and lean on their parents or friends to help gift part of the entire housing deposit. Some parents or other family members, such as grandparents, are now gifting amounts upwards of £24,000.
Hundreds have become reliant on a family member every year, hoping to help them onto the property ladder. When speaking to some customers, we found that they felt a sense of personal responsibility.
It’s no surprise why many need that extra support, an increase of property prices, that has gone way over the average wage, leaving many unable to save for the deposit on their first home while coving the expenses of rent and utility bills. That said, it’s become more apparent if there is only one income supporting the household or being a sole applicant.
While renting may seem helpful in the short term, it can harm any chance people have to save for a mortgage deposit in the long run. Some decide to move back in with their parents to help save up the necessary costs for a larger deposit. Surveying 1600 parents who had helped their children out, many went on record as saying they had used their savings to do so.
Another concern is that some said they had withdrawn from their pension schemes or equity to gift a deposit. Essentially, this is them putting forward any inheritance their child would receive.
To read about what could be available to you, read our help to buy service page, or check out our first time buyer in Coventry service page. If you like to arrange to speak with a mortgage advisor in Coventry, please feel free to get in touch with us today.
If you are looking at buying a property in Coventry, choosing to do so is not something you should decide in a day. It requires careful planning and preparation over time.
You’d be surprised at the number of people we deal with regularly, who are more spontaneous in their buying habits and have therefore neglected to prepare for a mortgage.
First time buyers in Coventry have their reasons as to why they decide to jump into such a significant financial commitment, this includes:
By not preparing for a mortgage, you are leaving yourself open to potential issues with your mortgage application. Some of the standard mortgage hurdles we find customers face include:
Saving up your deposit for a mortgage can be a challenge, especially if you are renting at the moment from the council or private landlord.
As you have significant outgoings and essential purchases each month, limiting what you can save in-between.
Have you ever considered seeing if anyone can give you a hand with a gifted deposit? We find that this is a regular occurrence with first time buyers in Coventry, as family members or friends will try and help whenever they can.
That said, most lenders do prefer gifted deposits from family members rather than friends. If a family member or friend is looking to help, it’s best to give them as much notice as possible to get their finances in order! Just remember, a gifted deposit is a gift, not a loan.
Getting an up to date credit report is not an incredibly difficult task. We recommend Check My File, as they can collate the data from different sources into one for you to compare.
Once you have downloaded a copy of your credit report, you can send it to a mortgage advisor in Coventry, who will look at it for you.
They will know precisely what sort of things the lenders will like to see and what they do not want to see.
When lenders look at your bank statements, make sure there are not many unnecessary bank charges or gambling transactions. You will need to provide the lender with a reasonable explanation of what happened on your account and how you plan to resolve this going forward if any issues crop up.
We realise that Accountants try to minimise the tax liability for their customers. That said, there is nothing to stop you from submitting another set of accounts earlier than you might typically do.
Especially if your business has developed in the last 12 months, some lenders consider overlooking previous years’ figures if the latest ones are more beneficial to a lender.
If anything is covered related to you, we may be able to help. Our team of mortgage advisors in Coventry love a challenge, so do feel free to Get in Touch!
They say that homeowners rank moving home as one of the most stressful and daunting experiences to come across. But it doesn’t have to be this way!
Once we’ve assessed your situation, our job is to handle all the legwork of the process. For instance, with advice from a mortgage broker in Coventry, your mortgage journey can be made stress-free. We can utilise our extensive panel of lenders to make sure you come out with the most suitable deal.
Suppose you’re thinking about moving house in Covnetry, taking up property viewings or are ready to make an offer on the house. If you want trustworthy mortgage advice in Coventry, please feel free to get in touch with us. We can help you get your mortgage process started.
You won’t have to shop around. It’s our job to search through mortgage deals on your behalf to find one that matches your financial situation.
We will need some documentation like ID, proof of income etc. These will help back up who you are and if you can afford your mortgage payments.
We can get ready to submit your mortgage application for you. If we find one that matches your personal and financial situation that comes with a competitive rate and you want to continue with it.
Once you’re in contact with our team, we’ll pass your straight onto your dedicated mortgage advisor so that they can arrange your free mortgage consultation and get some information from you.
If you’re a first time buyer in Coventry who already found a property and are ready to put an offer, we can quickly help you find a competitive mortgage product to match your situation, allowing you to continue with your purchase.
We can also arrange an agreement in principle for you within 24-hours of your application. Not only can it help boost your application. But most importantly, it shows you’ll have a clear idea of your budget, and you’re a serious buyer.
Don’t be nervous about asking lots of questions. Your mortgage advisor in Coventry is here to be completely open and honest with you at all times. If you have any questions, your advisor will be sure to answer them and keep you posted on what’s going during every step of the process.
We want you to be able to communicate with us when you feel most comfortable. We’ll be available seven days a week and book you in for an appointment when there’s availability. You’ll be speaking to a mortgage advisor in Coventry in no time.
Our mortgage advice team are here to help you through the whole moving home process – from start to finish, seven days a week.
We offer a free mortgage consultation to new/existing customers, no matter their mortgage situation. Please feel free to get in touch with us. We can help you get your mortgage process started.