Forces Help to Buy Scheme (FHTB) Explained

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.

How does the Forces Help to Buy Scheme in Coventry work?  

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.

How a Mortgage Advisor in Coventry May Be Able To Help

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.

The Costs of Buying a Home in Coventry

Moving Home Mortgage Advice in Coventry

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).

Estate agency fees

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.

Valuation fees

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’.

Mortgage arrangement fees

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.

Solicitor’s fees

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:

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

Stamp duty

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 here:
https://www.gov.uk/stamp-duty-land-tax

Broker fees

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.

Removal fees

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.

Mortgage Advice in Coventry

Do Gambling Transactions Look Bad on My Bank Statements?

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 we find crops up when speaking to customers is: “do gambling transactions look bad on my bank statements”.

Mortgage Questions to Consider

What has it got to do with the lender whether I gamble or not?

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?

Is it still possible to get a mortgage if I’ve got gambling transactions on my recent bank statements?

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.

Is there anything else lenders wouldn’t want to see on my bank statements?

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.

What can I do to improve things?

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!

Get in Touch With a Mortgage Broker in Coventry

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.

Buying a Property With a Partner or Friend in Coventry?

Buying a Property with Other in Coventry

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.

How many people can jointly own a property?

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 or tenancy in common – what’s the difference?

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.

Joint mortgage & removing names

What happens if you jointly own a mortgage, but your co-borrower(s) stop meeting the mortgage payments?

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.

How do I remove my ex-husband/wife from my 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.

How do I remove my name from my ex-partner’s mortgage?

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.

First Time Buyer Mortgage Advice in Coventry

Do I Have To Use My Estate Agent’s In-House Mortgage Advisor in Coventry?

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 and recommended conveyancers. We tend to receive a lot of feedback as to what sales tactics can be used. Examples of this are:

Stories about in-house Mortgage Advisors

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.

Why do they push their in-house Mortgage Advisor?

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:

• A financial incentive for you if you use both their in-house mortgage and conveyancing services.
• The estate agent saying they are not putting your offer forward to the vendor if you have not taken in-house Mortgage Advice. This is an illegal practice!
• Quoting extortionate solicitor’s fees for a straightforward purchase.
  

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.

Do it yourself online

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:

• The rates advertised are ‘best buy’ rates – you might not qualify for this rate or meet the lender’s specific lending criteria
• Some websites only display deals where they have a commercial arrangement with those lenders. Deals from other lenders not visible may be more suitable for you.
• It can be expensive if you get this wrong. Check what fees are payable and when. If your application is declined can you get your money back?
• You will solely be responsible for progressing your application. If you apply without taking advice, you will not benefit from any consumer protection such as FOS.
  

Go to your own bank

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?

• Banks can only offer you their own products.
• If your application is declined Banks can be reluctant to tell you why.
• Appointments, especially ones out-of-hours, can be difficult to arrange.
  
  

Find your own Mortgage Broker in Coventry

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.

Mortgage Advice in Coventry

What is Gazumping & What Should I Be Aware Of?

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.

How does gazumping happen?

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.

Ways to Prevent Gazumping

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:

• Conduct some research and find yourself a conveyancing solicitor and surveyor ahead of time.
  
• Move swiftly at each step of your journey, presenting all the required information needed when asked for, with haste.
  
• Make sure that you obtain a mortgage agreement in principle prior to making offers. Be as prepared as you possibly can be!

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.

Shared Ownership – What is it? How does it work?

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 Mortgage Advice in Coventry

What is shared ownership?

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.

How does the scheme work?

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.

Costs and fees

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.

How can I apply?

You’ll have to match the Shared Ownership criteria before you can move forward with your application:

• You must be at least 18 years old.
• If you live outside of London, your household annual income must less than or equal to £80,000. If you live in London, this is upped to less than or equal to £90,000.
• You can’t have ownership over another property during your Shared Ownership mortgage application. You must be a first time buyer in Coventry or in the process of selling your current property.
• If you can afford a house on the open market, you will not be able to take out a Shared Ownership mortgage. It was introduced to help struggling homebuyers.
• You must prove that you are not in any kind of arrears, this includes both mortgages and rent.
• You’ll need to show evidence of a good, clean credit history. This means that you may struggle if you have a CCJ (county court judgement) in your name or have had past credit issues.
  

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.

Speak to a Shared Ownership Mortgage Advisor in Coventry

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.

Why Use a Mortgage Broker in Coventry?

We Aim to Take Your Stress Away

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.

When Should I Get Mortgage Advice in Coventry?

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.

Free From Estate Agents, Banks or Building Societies

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. 

Building Customer Relationships

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. 

What is a mortgage agreement in principle and how can it help with my mortgage?

Agreement in Principle Mortgage Advice in Coventry

First things first; What is a mortgage agreement in principle?

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:

1. Negotiating Power
2. Avoiding Disappointment
3. Knowing Your Limits

Negotiating Power with a Mortgage Agreement in Principle

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.

Avoid Disappointment with a Mortgage Agreement in Principle

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.

Knowing Your Limits with a Mortgage Agreement in Principle

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.

Expert Mortgage Advice in Coventry

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.

Buying as a Sitting Tenant in Coventry

Sitting tenant mortgage advice in Coventry

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.

Why is my landlord selling up?

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.

Why is it better for landlords to sell to sitting tenants?

There are various reasons why a landlord might choose to sell their property to you. These include and are not limited to:

1. They avoid paying commission with estate agents.
2. It avoids ‘loss of rent’ due to not having tenants in the residence until the sale goes through.
3. No refurb costs: If a tenant moves out, the property will have to be prepared for sale. With potential expenses needed to redecoration, e.g. new flooring.

Advantages for you

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:

1. You know the property inside out. No nasty surprises for you! If there are any faults, you’ll already be aware of them.
2. You won’t be caught up in a chain. You aren’t waiting for the property owner you’re after to finish their process, meaning you can do a deal faster.
3. Discounted price when purchasing. Given all the advantages listed above, it’s normal for a landlord to sell to a sitting tenant at a discounted price. More commonly known as a ‘sale undervalue’.

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.

Buy to Let Mortgage Advice in Coventry