For many first time buyers in Manchester and home movers in Manchester, the credit scoring system might seem like an unjust method employed by mortgage lenders to assess their applications. Conversely, mortgage lenders view credit scoring as a practical and consistent approach to mitigate risk.
If the credit scoring system raises concerns during your mortgage application, fret not. The reassuring news is that there exists a multitude of mortgage lenders, each employing their distinctive scoring systems and criteria.
To allay your concerns and enhance the likelihood of acceptance, obtaining a copy of your credit report when applying for a mortgage is a key step. Providing an up-to-date copy of your credit report to your mortgage advisor in Manchester at the outset offers a clearer snapshot of your financial standing, thereby increasing the chances of a successful application.
Importantly, having a copy of your credit report empowers your mortgage advisor to pinpoint potential issues or areas requiring improvement, enabling you to address them proactively before applying for a mortgage. This proactive approach not only improves your approval prospects but also instils confidence and peace of mind throughout the mortgage process.
It’s essential to remember that every mortgage lender adheres to its own set of criteria, so if one lender rejects your application, don’t be disheartened. Your dedicated mortgage advisor in Manchester will collaborate with you to identify the best fit from the diverse options available in the market.
When examining your credit report for mortgage purposes, various credit reference agencies, such as Experian and Equifax, are at your disposal. We recommend CheckMyFile for its comprehensive overview based on information from multiple credit agencies.
Opting for CheckMyFile provides access to a 30-day free trial, allowing you to review your credit report without incurring any costs during this period. The flexibility to cancel the trial at any time further empowers you to make an informed decision about your creditworthiness, ensuring a robust foundation for your mortgage application.
Utilise the link below to enjoy a free, instant PDF download.
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Enhancing your credit score is pivotal when seeking a mortgage, and several steps can positively influence your creditworthiness. Exercise caution when using price comparison websites, as they may trigger credit searches that could negatively impact your score.
To mitigate potential red flags for mortgage lenders, refrain from applying for additional credit in the immediate future.
Registering on the electoral roll stands out as a key method to boost your credit score. Accuracy in your name and address details is important to present a positive impression, avoiding any misinterpretation that may arise from inaccurate address information.
Careful management of your credit card usage holds significant sway over your credit score. Responsible usage, coupled with paying the balance in full each month, can contribute positively.
While closing dormant store or credit card accounts may momentarily affect your score, it can prove beneficial in the long run, reducing susceptibility to fraud.
Furthermore, severing financial connections with family members, friends, or ex-partners can positively impact your credit score, particularly if their credit history is less than stellar. If you no longer maintain active financial associations with these individuals, requesting credit reference agencies to remove these links is advisable.
When seeking mortgage advice in Manchester, providing our seasoned and trustworthy mortgage advisors with comprehensive financial information enables them to furnish the best possible guidance and support throughout the mortgage application process.
With their expertise complementing your improved credit score, you are well-positioned to secure the optimal mortgage for your needs and financial situation.
Whether you’re new to the world of mortgages or you currently own a property and have some past mortgage experience, you will have either heard of a “mortgage broker” or will have no clue what they are or what they do.
Using a mortgage broker in Manchester when moving home can not only make your job easier but can take all of the stress out of the process.
Here we will discuss the main differences between using a mortgage broker and your bank.
If you opt for your bank when looking for a mortgage, you will not have to pay a broker fee, which will save you money.
However, banks can only access their in-house mortgage products, whereas, a mortgage broker can search through various different types of lenders in order to find the best product for you. For example, as a mortgage broker in Manchester, we have access to a variety of different lenders that hold both high street and specialist deals. We can search through these lenders to try and find you a competitive mortgage product.
During your free mortgage appointment with us, we will perform a free affordability assessment on you to work out what sort of deals will be accessible to you.
Most high street banks are renowned for making you wait weeks to get an appointment with a mortgage advisor. This can be extremely inconvenient if you have just had an offer accepted on a property.
A mortgage broker in Manchester, like ourselves, offers flexible availability and allows you to book a mortgage appointment at a time that suits you. Sometimes, we even have same-day availability!
If you approach a high street bank and your mortgage application is declined, the chances are that most other high street banks will do the same.
There are many different reasons why a bank could decline your mortgage application, sometimes you are never told why. If it has something to do with your credit, if you apply to another bank and are declined, you could put more harm on your credit.
As mentioned earlier, mortgage brokers can access a large variety of mortgage lenders, including those from specialist lenders. If you have been declined by your bank, the best thing to do is to approach a mortgage broker in Manchester like us and we can explore options that are better suited to your personal and financial situation.
If your credit is the issue and you need help improving your credit score and getting your finances back on track, our mortgage advisors in Manchester can run through this with you.
Banks and brokers have a pretty similar turnaround time when it comes to getting you an agreement in principle (AIP). Our mortgage advisors in Manchester can usually secure you an AIP within 24 hours of your free mortgage appointment.
If your AIP expires, simply get back in touch with our team and we can renew it straight away for you.
Similar to their mortgage appointment availability, banks will never be available there and then for you to ask a quick question or give you an update on the progress of your mortgage application. Drop your mortgage advisor in Manchester a message whenever you want to speak to them and they will be back in touch right away. We know that the mortgage process is a stressful time, and we want to put you at ease.
As a mortgage broker in Manchester, our job is to help you through the entirety of your mortgage journey. No matter your situation, whether you’re a first time buyer in Manchester or a buy to let landlord in Manchester, we are here to offer our help.
Our responsive service is at the heart of our business. You can book your free mortgage appointment or arrange a call back online! This allows you to be in control of your mortgage appointment and schedule it around your busy working and personal schedule.
If you would prefer to, give our team at Manchestermoneyman a call and we can put you in touch with one of our expert mortgage advisors in Manchester.
Buying a property will likely be the biggest financial commitment of your life, therefore, it’s understandable that you have lots of questions regarding the mortgage process. As a mortgage broker in Manchester, we’ve had the pleasure of helping many different types of buyers; no matter what the applicant’s situation is, we are always asked “how long does mortgage approval take?”.
If you are a first time buyer in Manchester, and you have questions like this, you must get the necessary mortgage advice and speak with an expert. Not every question will have a straightforward answer, however. Most of the time, especially with questions like these, it will depend on the individual’s personal and financial situation.
If you have no problems with your credit you could find that it takes 2-3 weeks to receive mortgage approval. This timeframe is just an example, it could take longer or less time than this.
Mortgage approvals can take time if you have current or past issues with credit. The mortgage lender will need to search thoroughly through your credit file to determine whether or not you are a reliable applicant who can afford to take out a mortgage. If you have bad credit or past credit issues, the mortgage approval process can take months.
You need to know that there is no set timeframe for when a mortgage is or is not approved, it depends on the mortgage lender and your personal and financial situation.
Getting approved for a mortgage is not as simple as it used to be! You will never see mortgages being handed out like they were in pre-credit crunch days.
The process is timely and intricate to gain a complete insight into an applicant’s personal and financial situation. Mortgage lenders need to establish the type of applicant that you are. They look at your credit, income (including occupation), your outgoings (via bank statements) to get an idea of who you are and whether you are going to be able to afford a mortgage.
They need to know who they are lending to and whether they can afford a mortgage on the property in Manchester that they are looking at purchasing. This all takes time. Remember that there are also thousands of applicants, not just you!
As a mortgage broker in Manchester, our mortgage process involves stages that build you up to your mortgage application. This process is designed to make your mortgage journey stress-free and easy-going; we’ll take care of the mortgage side of things, and you can focus on finding your dream property in Manchester.
To get your mortgage process started, book your free mortgage appointment with one of our mortgage advisors in Manchester. You can do this by selecting a date and time online or giving our team a call. We have 7 days a week availability, allowing you to book an appointment around a time that suits you.
During your free mortgage appointment, your mortgage advisor in Manchester will take some information from you to get an understanding of what you are looking to achieve along your mortgage journey. This will roughly take 30-45 minutes.
Once you have completed your mortgage appointment, your mortgage advisor in Manchester will send you a mortgage agreement in principle (AIP). This document is a “must-have” when it comes to making an offer on a property. You will need one in order to prove to the estate agency that you have been pre-approved by a mortgage lender. At this point in the process, you should begin searching for a property you want to buy, if you have already found your dream property, we can move on to the next step right away!
Once you have had an offer accepted on the property, we will be able to pair this with the perfect mortgage deal. We have a large variety of mortgage lenders on panel, allowing us to access high street and specialist products. The product that your mortgage advisor in Manchester finds will be presented in a mortgage illustration document, outlining everything about the deal that you need to know.
If you are happy to proceed with our service and the mortgage product we have found you, it is time to prepare your mortgage application.
When preparing your mortgage application, you will need to attach several documents to evidence your affordability for a mortgage. We will help you gather all of these documents and make sure that your application has everything it needs. Once you are ready, we can send off your mortgage application to the mortgage lender.
As soon as we send off your mortgage application, everything is now in the mortgage lender’s hands. Just so you know, we will never put you forward for a mortgage product that you will be declined for!
They will look at the documents that you have attached to your mortgage application to verify your mortgage affordability. They will also check your ID and current registered address to make sure that you are who you say that you are, as well as looking at where your deposit has been sourced from.
If you received a gifted deposit they will need to see the last 3 months’ bank statements from the donor and have a gifted deposit form signed.
Not to be confused with a house survey, a mortgage valuation survey is where the lender sends out a property surveyor to determine the true value of the property that you are looking at purchasing. There are different types of property surveys in Manchester, with each one suited to different types of properties. Your mortgage advisor in Manchester will advise accordingly on which type of survey is recommended.
The reason the mortgage lender will want a survey taken out on a property is to determine the true value of the property. If your offer to the seller was above the actual value of the property, you may find that a mortgage lender will not allow you to borrow the amount you are asking for.
Essentially, they aim to ensure that, in case of repossession, they will be able to make their money back by selling your home. Rest assured, as long as you consistently meet your monthly repayments, there’s no need to worry about losing your home.
After the mortgage lender has carried out their checks, if all has gone well, you should receive your formal mortgage approval back. Your mortgage advisor in Manchester will be in touch straight away to give you the good news!
From here, we will hand you over to the solicitors for you to exchange contracts and complete the rest of the legalities. Once this is done, you’re ready to go and collect your keys!
Whether you are a first time buyer in Manchester, looking at moving home, remortgaging or wanting to invest in a buy to let property, it is important that you are aware of the mortgage process and what is expected and needed throughout.
As a mortgage broker in Manchester, we would always recommend starting your mortgage process up to 6 months in advance. This way, you can get your agreement in principle arranged and begin looking for properties within your budget nice and early. For example, if you were looking at moving home in January, starting your process in the Summer would benefit you more and tie in with your plans.
If you have had an offer accepted or are looking at buying a property in Manchester, now is the time to start your mortgage journey – act now! Book your free mortgage appointment online or by giving our team a call today.
The Shared Ownership Scheme is a government-initiated mortgage program in the UK, aiming to aid individuals in stepping onto the property ladder. It’s accessible to permanent UK residents who fall into the category of either first time buyers or previous homeowners struggling to acquire a new property.
Furthermore, your household income must not exceed £80,000, and the property you intend to purchase will predominantly be on a leasehold basis. Leasehold signifies that you’ll possess the property for a predetermined duration.
Through Shared Ownership in Manchester, you can secure your home through a combination of a mortgage and rental payments. The total of your rental payments will usually be lower than your mortgage payments.
When Shared Ownership was first introduced, the minimum share that you could own was 25%, whereas now, this has been brought down to 10% for some properties.
There is an option for homeowners to increase the percentage share that they own their home. This is called staircasing. This is usually done at the point of remortgage or when the homeowners have paid off the mortgage on the share that they own.
If you decide that you want to increase your shares, you can now purchase them in 1% instalments. This used to be in 5-10% increments.
Moreover, the charges increasing your extra shares have been lowered. Additionally, your landlord will cover the maintenance and repair expenses for the first decade of ownership.
The rules that apply to you and your Shared Ownership in Manchester may change depending on when you originally took out the mortgage. As a mortgage broker in Manchester, we recommend double-checking what you can and can’t do in relation to the new rules of Shared Ownership. Drop our mortgage advisors in Manchester a message if you are unsure about how your property is affected.
To access the Shared Ownership scheme in Manchester, you must first qualify for the scheme. The scheme is not for everyone, so it is worth checking that it is right for you before applying for it.
To check whether you are eligible for the Shared Ownership scheme in Manchester, you’ll first need to get in touch with your local Help to Buy agent in the area you are looking to purchase in.
You will need to give them information such as your income, budget, preference of where you would like to live in the area and your credit history. Once you have confirmed your eligibility, the next step is to begin preparing your mortgage application.
Using a mortgage broker in Manchester like us is your best bet from here. Not every mortgage lender will be able to offer their help with Shared Ownership mortgages, yet a mortgage broker has access to thousands of deals through various lenders.
There are pros and cons to Shared Ownership in Manchester, just like every Help to Buy scheme out there.
Saving for a mortgage deposit is often a worry among first time buyers, the Shared Ownership scheme usually only requires you to put down a deposit on the percentage of the property that you own. For example, if you are taking a mortgage out on 20% of a property valued at £200,000 (£40,000 mortgage) and you are required to put down a 10% deposit, you will only need to put down £4,000 deposit.
Numerous mortgage lenders, including those on our panel, provide Shared Ownership mortgage products. The scheme has become more popular over the last few years and first time buyers are opting for this scheme to help them get onto the property ladder. Moreover, Shared Ownership Mortgages can provide enduring stability as you become both an owner and occupant simultaneously.
You may get the chance to purchase your property in the future if that is something you are looking to achieve. If you want to eventually own the property, before taking out a Shared Ownership mortgage in Manchester, you should make sure that this is an option for you in the future because some building societies do not allow this. Whether you can purchase the property in the future or not will be in your contract.
You’ll enjoy secure tenure, unlike the uncertainty of the private market. As long as you can maintain your monthly mortgage payments, you can continue residing in your home for the duration of your lease, usually spanning from 99 to 125 years.
While there are many advantages to Shared Ownership, you also need to be aware of the cons. It’s important to note that you’ll be responsible for 100% of the ground rent and service charges for your property, regardless of the size of your purchased share.
As your home will be co-owned, you must seek approval from the relevant housing provider before making any structural alterations. This requirement might limit the sense of complete ownership freedom you’d typically have.
After a while of living within your Shared Ownership property in Manchester, you may decide that you want to move on and start looking at moving home. With most other mortgage types, this would be simple enough, however, with Shared Ownership, the process works slightly differently.
Whether you can sell your home depends on how much of the property you own. Usually, you are required to own 100% shares in the property before you are able to sell it.
Nevertheless, it’s important to recognise that the housing association usually retains ‘first refusal’ rights for the initial 21 years following your home purchase. Legally, this grants them the opportunity to present a purchase offer for the property before you consider selling it on the open market.
If you do not own 100% of the property, your first step is to try and purchase the remaining shares in the property and then look at selling it.
Shared Ownership is not for everyone by any means. Most of the time, as a mortgage broker in Manchester, we find that sole applicants and those struggling to save for a deposit most benefit from the scheme.
Taking out a Shared Ownership in Manchester requires you to meet a criteria. To see whether you qualify for the scheme, reach out to our mortgage advisors in Manchester and we can take a look at your circumstances.
To speak with the team, simply give our team a call or book a free mortgage appointment online. We would love to offer a helping hand to make your Shared Ownership process stress-free!
As a mortgage broker in Manchester, we regularly work with customers seeking help with bad credit due to issues like missed payments, low credit scores, CCJs, and defaults, among others.
Repeatedly missing payments, such as on a mobile phone contract, could lead to a default being linked to your credit record. This may pose challenges if you’re considering a future mortgage application, suggesting potential payment unreliability.
Fortunately, having missed payments or defaults doesn’t mean that it is impossible to get a mortgage. To increase your chances, we would always recommend getting specialist mortgage advice in Manchester from a professional.
You should know that you may have to provide a large deposit if you are looking to get a mortgage with bad credit in Manchester. This deposit may stretch to 10%-15% of the property’s value.
Mortgage lenders will want to know exactly why you have bad credit. They will also look at how long you have had bad credit; if you have bad credit because you received a default recently, your chances are significantly reduced, however, if you received the default years ago and haven’t been missing payments for a long period of time now, you may find that your chances are higher.
Mistakes happen, and having bad credit in Manchester should not make you stop pursuing your mortgage process. There are specialist mortgage products out there for bad credit mortgage applicants, these deals could be suitable for you and your personal and financial situation.
In our twenty years of experience, we have come across almost every single type of specialist mortgage situation. No matter the situation, we will always try and help when we can.
Every applicant with bad credit in Manchester will undoubtedly have lots of questions they want answers to – getting a mortgage can be complicated enough! Here we have compiled a list of the most common questions asked by applicants with bad credit in Manchester.
As a mortgage broker in Manchester, many of our customers have come straight from their bank after being declined for a mortgage. We advise that you do not keep applying to your bank because the more that you are declined, the more harm you are posing on your credit.
We advise that you get in touch with our mortgage advisors in Manchester to discuss your current mortgage options. We may be able to help, even if you think that your situation is too complicated!
Regardless of the nature of your previous credit issues, your mortgage advisor in Manchester will require a current version of your credit report.
Obtaining your credit report before initiating a mortgage application is crucial, particularly if you’re uncertain about your credit history. Our mortgage advisors in Manchester can perform a credit check for you that comes at no cost and will not affect your credit. If you keep performing numerous credit checks it can negatively impact your credit score and potentially hinder your mortgage eligibility.
The response to this question depends on your circumstances. For certain individuals, while their credit score might not be considered “good”, they may possess a substantial deposit to secure a lower rate and a steady income. Yet still, due to perceived risk, a mortgage lender could refuse to lend to this applicant.
Mortgage lenders require evidence that you can consistently meet mortgage payments, preventing any likelihood of falling into arrears. Repossessing your home becomes a necessity for them only in dire situations; it’s a scenario they prefer to avoid.
Although it may seem like it’s impossible, pathways for bad credit mortgages do exist. You may just have to settle for a higher interest rate on your mortgage. To discuss your options you should speak with a professional mortgage advisor in Manchester.
Unfortunately, some people do miss their mortgage payments and it can have a negative impact on their credit. Even if it was just once and there’s a plan to pay it back as soon as possible, a missed payment can still register on your record.
If this is more than just a one-time occurrence, then you may start to see your actions reflected in your credit. When the time arrives to remortgage in Manchester, purchase a new home, or invest in a buy to let property, challenges may arise. Remember that your mortgage lender is looking for reliability and trustworthiness in your credit history.
Applicants can encounter many different types of bad credit mortgage scenarios. Each are capable of introducing significant hurdles throughout the mortgage application journey. Some of these issues include, yet are not restricted to:
While none of these circumstances are ideal, they do not mean that you cannot get a mortgage. Although you may face a slightly more difficult process, potentially with increased mortgage rates, specialist mortgage lenders exist that can help.
For specialist mortgage advice in Manchester, you should reach out to our team at Manchestermoneyman. We know that having bad credit can make the mortgage process seem daunting, and that’s why we want to offer a helping hand.
We offer a free mortgage appointment to every customer, simply book online or give us a call and arrange a date and time.
Are you seeking valuable mortgage tips and advice to ease your path to homeownership? We fully understand the uncertainties and questions you may have that may arise during this process.
In this article, our primary objective is to address your most pressing questions and offer insightful guidance to empower you in navigating the mortgage landscape with confidence.
Whether you’re a first time buyer in Manchester or exploring remortgage in Manchester, we’ve got you covered. Let’s work together to transform your homeownership dreams into a gratifying reality!
Evaluating your borrowing capacity is a fundamental aspect of the mortgage process. Consider factors such as your income, expenses, and existing debts.
You can start with online mortgage calculators to get a rough estimate, but for a more precise and tailored assessment, it’s advisable to consult with a dedicated mortgage advisor in Manchester.
Their expertise will provide you with accurate insights based on your unique financial situation, empowering you to make well-informed decisions and set yourself on the path to securing your ideal mortgage.
Staying well-informed about interest rates is vital for making informed decisions during your mortgage journey.
Keep yourself updated by following financial news, reputable websites, or seeking advice from knowledgeable mortgage advisors in Manchester who can provide real-time updates on interest rates.
Having a clear understanding of the current market trends will give you the power to make the best choices for your mortgage. You can also explore our YouTube channel, MoneymanTV, where we regularly upload monthly market updates related to this topic.
By staying informed about the latest trends and insights, you’ll be better equipped to navigate your mortgage journey with confidence and make well-informed decisions.
It’s essential to take the time to explore the various mortgage types available, such as fixed-rate, adjustable-rate, and interest-only mortgages. Each option comes with its unique features, benefits, and considerations.
To make the best decision, conduct thorough research and seek mortgage advice in Manchester from mortgage experts. They can help you identify the most suitable mortgage type that aligns perfectly with your specific needs and financial goals.
By doing so, you’ll be better equipped to choose the mortgage that best fits your circumstances and sets you on the path to successful homeownership.
Building a strong credit score is essential for securing favourable mortgage terms. To achieve this, make sure to pay your bills on time, maintain a low credit utilisation ratio, and regularly review your credit report for any errors or discrepancies.
If you come across credit-related challenges, don’t worry. There are various agencies and resources available to offer assistance and guidance in improving your credit situation.
By taking proactive steps to manage your credit, you can enhance your chances of qualifying for a mortgage with better terms and conditions.
Typically, standard documentation required for a mortgage application includes proof of income, identification, bank statements, and employment history.
To ensure a personalised and seamless mortgage application process, it’s best to seek advice from mortgage lenders or experienced mortgage advisors in Manchester.
They can help you in preparing a tailored list of necessary documents based on your specific financial situation and individual needs. With their expertise, you can navigate the documentation process with confidence, increasing the likelihood of a successful mortgage application.
Both options present unique advantages. As a mortgage broker in Manchester, we can offer access to multiple lenders, enabling comprehensive comparisons to find the best mortgage offers tailored to your requirements.
On the other hand, approaching a mortgage lender directly establishes a direct relationship. We recommend considering your preferences, conducting thorough research, and seeking recommendations to make an informed decision that aligns with your specific needs and financial goals.
Whether you choose to work with a mortgage broker in Manchester or approach lenders directly, the key is to find a solution that suits you best on your home buying journey.
It’s essential to consider expenses beyond the mortgage amount, such as arrangement fees, valuation fees, legal fees, and potential early repayment charges. Take the time to carefully review fee schedules from different mortgage lenders to gain a full understanding of all the costs involved.
To ensure you are well-informed about these expenses, seek advice from mortgage professionals who can guide you through the details and help you make informed decisions. Being aware of the complete financial picture will enable you to plan effectively and avoid any surprises along the way.
Achieving a deposit for your home requires discipline and thoughtful preparation. Begin by creating a budget that helps you track your income and expenses. Look for areas where you can cut unnecessary spending to save more effectively.
Explore government schemes designed to help homebuyers, such as Help to Buy in Manchester or Right to Buy in Manchester, keeping in mind their specific eligibility criteria. These schemes can provide valuable support in your journey towards homeownership.
Consider opening high-interest savings accounts or first time buyer ISAs, which are designed to accelerate your savings with attractive interest rates and potential government contributions.
By implementing these strategies, you can take significant steps towards building your deposit and achieving your dream of owning a home in Manchester.
An agreement in principle (AIP) offers an initial estimate of the mortgage amount a lender may be willing to offer, based on fundamental information provided by the borrower.
In contrast, a formal mortgage offer represents a legally binding document, demonstrating the lender’s commitment to providing the loan under specific conditions.
It serves as a significant milestone in the mortgage process, as it outlines the terms and conditions of the mortgage and sets the groundwork for finalising the home purchase.
The timeline for processing a mortgage application can vary and typically takes several weeks on average. Various factors, such as the property type, credit history, and the efficiency of document submission, can influence the duration.
To ensure a smoother and more efficient process, it’s essential to work closely with your mortgage advisor in Manchester and be well-prepared for any potential delays that may arise.
By staying proactive and organised throughout the application process, you can help expedite the journey to securing your dream home.
Armed with these vital answers to your key mortgage questions, you are now ready to set off on your exciting mortgage journey.
Remember, seeking guidance from trustworthy mortgage advisors in Manchester, conducting thorough research, and staying proactive throughout the process are all crucial elements.
By following these steps, you can confidently pursue your dream of homeownership and take the necessary actions to make it a reality!
Please note that the information contained in this article is for general guidance purposes only and should not be considered as legal, financial, or tax advice.
All information regarding Stamp Duty is taken from the government website and is in-line with the September 2022 Mini-Budget. The laws and regulations related to Stamp Duty are subject to change, and the information in this article may not reflect the latest updates or changes in the law.
The amount payable for Stamp Duty will entirely depend on personal circumstances. Please speak with the solicitor acting on your behalf, who will be more appropriate to advise on this.
Information Source: MoneyHelper
Stamp Duty Land Tax is a tax that applies to residential property owners in England or Northern Ireland, including those with mortgages and those who have bought properties outright.
First time buyers in Manchester can benefit from Stamp Duty relief on properties valued at £425,000 or less, with a reduced rate applied to properties valued between £425,000 and £625,000. Properties valued over £625,000 do not qualify for first time buyer relief, and the standard rates of Stamp Duty apply.
These rules are currently in effect until March 2025, after which the previous thresholds will be reinstated.
In an effort to increase affordability in the property market, the government implemented changes to Stamp Duty regulations specifically aimed at first time buyers in Manchester.
As you may know, accumulating enough funds for mortgage applications, deposits, and conveyancing fees can already be a daunting task.
Unlike existing property owners who can rely on the equity in their homes, first time buyers in Manchester, often renters, may not have the same level of equity to help cover these expenses.
As mentioned earlier, there are exceptions to the Stamp Duty regulations. Properties valued between £425,000 and £625,000 incur a percentage of the amount exceeding £425,000, while properties valued over £625,000 do not qualify for first time buyer relief.
It’s important to note that even if you have inherited a property and have never owned a home before, you are not eligible for first time buyer relief.
The same applies if you are purchasing a property jointly with someone who is not a first time buyer in Manchester themselves or if you are considering a first time buyer buy to let property.
In the latter case, Stamp Duty will be applicable, and the amount will vary based on your specific circumstances, so it’s advisable to consult with your solicitor for more information.
Typically, your solicitor will take care of filing the Stamp Duty return and handling the payment process on your behalf. However, you have the option to handle it yourself if you prefer.
Regardless, it is your responsibility to ensure that the return is filed within the designated timeframe. Even if you are not required to pay Stamp Duty, you must still submit a return unless you qualify for an exemption.
It’s important to be aware that the rates and regulations for Stamp Duty may differ depending on the property’s location.
To ensure you have a clear understanding of the specific tax rules that apply to your property purchase, it is advisable to consult with your solicitor or conveyancer.
In addition to the Stamp Duty expenses, if you’re applying for a first time buyer mortgage in Manchester, it’s important to consider other potential costs involved.
One significant cost is your deposit, which is typically a minimum of 5% of the property’s value. If you have a history of poor credit or aim for better interest rates, a deposit of 10-15% might be more beneficial.
Furthermore, you should anticipate solicitors or conveyancing fees as a definite cost.
Additionally, there may be various fees and expenses that could apply to your specific case, such as a mortgage arrangement fee charged by your mortgage lender, valuation and survey fees, and potentially a fee from a mortgage broker in Manchester if you choose to use one.
Other general expenses to consider include removal costs, potential repairs, furnishing expenses, and home insurance.
It’s worth noting that not all of these costs are mandatory and can vary depending on your circumstances. To gain a more accurate understanding of the potential expenses you might encounter on your path to homeownership, consulting a mortgage advisor in Manchester is highly recommended.
For first time buyers in Manchester struggling to enter the property market, it’s reassuring to know that assistance is at hand. In addition to Stamp Duty relief, there are several schemes available to facilitate home ownership.
Shared Ownership mortgages, enabling the purchase of a share in a property with rent paid on the remainder, and Forces Help to Buy (FHTB) in Manchester, which offers interest-free loans of up to 50% of their salary, capped at £25,000, are among the most popular options.
If you are a council tenant looking to buy your property, a Right to Buy mortgage in Manchester can provide a discounted purchase price, potentially eliminating the need for a traditional deposit.
Another option to consider is a Lifetime ISA, where you can save up to £4,000 per year towards your deposit, with the government adding a 25% bonus of up to £1,000 per year. These options can greatly assist prospective home buyers in their journey towards homeownership.
For comprehensive information on the schemes mentioned above, as well as other specialised options, you can visit the official government’s Own Your Home website.
There, you can explore further details about these schemes and discover additional resources to assist you in your journey to homeownership.
If you prefer personalised guidance, reaching out to a reliable mortgage advisor in Manchester can be a valuable step towards starting your mortgage journey.
They can provide you with detailed information and help you in exploring the various options available, helping you take the necessary steps towards securing your own mortgage.
If you are looking to try and save both your time and money, reduce your stress levels and worry less about the process, there is a lot of upside to taking on the help of an expert mortgage broker in Manchester.
As professionals with a lot of experience, we have access to thousands of deals, able to pick and choose one that is best suited for your particular situation. Going directly to the bank, on the other hand, see’s you with access to only one lender’s mortgage deals, as opposed to a look at multiple.
Our team are available to get you booked in for an appointment, 7 days a week, from early until late, working around your busy schedule.
You are also able to utilise our website’s booking form, to select a video or telephone consultation with a mortgage advisor in Manchester, at a time that is convenient to you.
In order to progress with a mortgage as a first time buyer in Manchester, you will first need to look at having an appointment to speak with a mortgage advisor in Manchester.
Throughout the duration of this meeting, you will be providing them with additional information that will serve to help them better understand your circumstances and your plans. Following on from this, they will then take a look at a wide variety of mortgage deals in order to find the right one for you.
First time buyers in Manchester and people moving home in Manchester that are happy to proceed with the recommendation of their mortgage advisor, will benefit from receiving an agreement in principle (AIP). We look to get this for our customers, within 24 hours of their initial appointment.
This is a useful document to have, as estate agents will ask for this when you are making an offer on a property. It showcases that you are committed to the purchase and that you are in fact financially able to proceed with your purchase, having a mortgage lender on standby willing to lend.
We are able to support and guide you with your offer process, help with property surveys and also make any insurance recommendations (that are completely optional) that could act as a safety net to protect your family and your home from unforeseen circumstances.
You will also need to provide your mortgage advisor with appropriate documentation to go along with your mortgage application, with these varying depending on what it is you’re trying to do and who you will be working with. This is something we’ll also help you with as a mortgage broker in Manchester.
Once your documents have ben received, as a mortgage broker in Manchester, we will verify those documents and provide you with a mortgage illustration that will outline the deal that you have agreed to, with the mortgage lender we recommended. This is done just before we submit your application.
Your application is then submitted, following your approval of our recommendation, with your mortgage advisor in Manchester sending copies of your documents to the mortgage lender. We will keep in regular contact with you, to ensure you are kept up-to-date with the progression of your application.
We’ll be straight back in touch with you once the mortgage lender has made a decision on your application. If it is successful, this is where you will receive a formal mortgage offer. From here, it’s all up to your solicitor to complete the deal and allow you to move into your new home.
As a mortgage broker in Manchester, we always like to make sure that your best interests are at the hear of everything that we do. If we can save you time, save you money and save you stress, we will do so. We want to help put you in the best financial position you can be in.
Our customer reviews are a genuine look at the long lasting relationships we build with those who get in touch with us, showing the positive impact that owning a home, by way of our mortgage advice service, has had on them as individuals.
Those with a mortgage know the stress of taking one out, and how your process can be severely impacted by the economy.
For example, if mortgage rates fly through the roof where the economy is not performing, unfortunately, you could expect your monthly payments to go up, or in some cases, you may not be able to afford to take out that product now.
Rates have fluctuated massively over the years, and they likely always will. If you are looking to get a mortgage in Manchester, there is neither a best nor worst time to start your process!
It entirely depends on the market, and your application can take a month to prepare, therefore, you should get your process started right away.
Our mortgage advisors in Manchester will try to help you find a mortgage product with a competitive rate of interest; the best that they can at the time of your application.
Mortgage rates and interest rates are exactly the same. These are the rates that your lender will charge you on your mortgage repayments.
If you manage to seal a low interest rate on your mortgage deal, you could be paying a lot less each month on your mortgage repayments in Manchester.
There are a number of factors that can affect what mortgage rates you are able to access. Most of these factors can be influenced by your personal and financial situation. Examples can include your credit score or your total deposit amount. The lower your lender sees you as a risk, the better rates you may have access to.
At the end of the day though, it is down to the economy. For example, if you are on a tracker mortgage, your interest rate will be determined by the Bank of England’s base rate. The Bank of England’s interest rate is also dependent on the performance of the economy and the position of the mortgage market.
This could mean that the base rate fluctuates, sometimes resulting in higher mortgage repayments. This is something that you cannot control, however, sometimes it can work in your favour if the base rate goes down.
On the other hand, if you were on a fixed-rate mortgage, your interest rate would not change over your fixed term. Your fixed term usually lasts between 3-5 years, although you can take out products over a longer term if you find a deal that allows you to do so.
You may find that when you remortgage in Manchester, your rate may have increased, this will be the best that you are able to get in your personal and financial situation.
Whilst inflation is on the rise, so will the cost of living. During this incline, you will find that your mortgage rate may slightly rise. Again, this can depend on the type of mortgage product that you are able to take out.
The government try to keep a target for the Bank of England base rate and plans for it to remain at a steady rate, however, when the economy is performing badly, it can slightly rise to balance it out.
When the economy is performing badly and those with a fixed-rate mortgage have a deal that is coming to an end, unfortunately, they could end up on a higher rate. As a mortgage broker in Manchester, we would recommend that you speak with an expert like ourselves during times like these.
We will try to find you the best rate available with a product most suited to your personal and financial situation.
These two types of mortgages are usually the most popular among homeowners. Both tend to offer favourable interest rates, however, they both work very differently.
As you know, fixed-rate mortgages keep the same interest rate throughout your fixed mortgage term. Whether this is 3, 5, or 10 years, this percentage will remain the same. This means that your monthly repayments will be exactly the same, making it easier to manage your finances.
We can’t give a precise base rate percentage that you would expect a fixed mortgage to have because they are always changing and co-dependent on the economy. Most people look to “fix” in for 3 or 5 years, it is rare that we see people go as high as 10.
Say that you manage to secure a fixed-mortgage product with a 4% rate of interest for 5 years and during the 5 years, the interest rates shoot up to 5% or 6%, you will be happy knowing that your mortgage repayments are going to remain the same as your rate is fixed.
A tracker mortgage uses the Bank of England’s base rate to calculate your interest rate. This could mean that your repayments fluctuate month on month. Although this sounds like you are worse off, this also means that your repayments may reduce for some months.
It is all down to your preference and what you are able to access. Remember that lenders will look at your affordability (such as your deposit) and your credit rating to determine what deals you can access. The best advice that we can give is to speak with a mortgage advisor in Manchester.
They will be able to try and find a deal perfect for your personal and financial situation. They will also recommend the best option for you.
Sometimes it may not be plausible for you to access a fixed-rate tracker or a mortgage, and you may need to explore other options such as interest-only or variable rates. There are many different types of mortgage available to you and your property in Manchester, not just these two.
If you want to speak with experts with over 20 years of industry experience, we are here to help! Our remortgage advisors in Manchester would love to help you through your mortgage journey and help you find that perfect mortgage product.
We are knowledgeable and experienced; our team know how to pick out the perfect product for you. The key is to make sure that you find a product for you that is tailored to your personal and financial situation!
You can book a free mortgage appointment online today and speak with a mortgage advisor in Manchester. We have appointments available 7 days a week, during the morning, afternoon or late at night. Choose an appointment that best suits you!
We are looking forward to hearing from you!
A mortgage illustration is a document that you will receive during the mortgage process. You will be given one once your mortgage advisor in Manchester has found you a suitable mortgage product for your circumstances.
A mortgage illustration outlines every detail of a mortgage deal. Your mortgage advisor in Manchester will provide the illustration alongside the recommended mortgage product.
If you’re satisfied with the product and have read over the illustration to make sure that you know all about the mortgage deal, the mortgage application process can start.
At Manchestermoneyman, you will get a mortgage illustration following your free mortgage appointment. You can simply book a free appointment online and speak with a mortgage advisor in Manchester; we are available 7 days a week, so pick a date and time that best suits you.
For more information, watch the MoneymanTV video below or visit the channel for more tips and explanations.
The mortgage illustration you receive will cover the main product details, costs of taking out the product, monthly repayments, legal fees and sometimes valuation fees.
“Main details” include information such as the length of your fixed contract, who you are taking out the product with and the interest rate.
Most, if not all mortgage products come with arrangement fees. The cost of the arrangement fee (if applicable) will be stated in your mortgage illustration.
Your monthly mortgage payments are determined by your total mortgage amount, interest rate, and fixed term length. The amount that you will be paying per month will be shown in your mortgage illustration.
Legal fees include the services of a solicitor. As a mortgage broker in Manchester, we will talk you through these costs before passing you over to them.
In most cases, a property survey must be carried out on the property before obtaining a mortgage. If you need a property survey, the costs should be specified in your mortgage illustration. These costs can vary depending on the property value, property type and type of survey.
The product that is presented to you is only a recommendation, therefore you are under no obligation to take it out. However, you must know that your mortgage advisor in Manchester will have carefully selected this product for you and would have tried to find a deal specifically for your personal and financial situation.
Unfortunately, if you choose not to continue with us, you will lose out on the deal.
We cannot guarantee any applicant a mortgage, unfortunately. A mortgage illustration is provided after your free mortgage appointment, therefore, you have not yet submitted any documentation verifying your income, deposit source, and affordability.
An agreement in principle (AIP) is not the same as a mortgage illustration. While a mortgage illustration outlines the details of the recommended mortgage prior to application, an AIP confirms that the lender is willing to offer to you in principle that you can provide evidential documents to support your affordability.
An AIP can be used to demonstrate your readiness and commitment to purchase a property from the seller.
We have mortgage advisors in Manchester readily available to discuss your mortgage options. Whether you are a first time buyer in Manchester, moving home in Manchester or a landlord looking for a buy to let property, we will be more than happy to help you start your mortgage journey.