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Help to Buy was introduced in the 2010’s, off the back of the UK government’ previous FirstBuy Scheme. With a series of pre-existing and new schemes placed under that banner, it was designed to help first time buyers get onto the property ladder.
Over the years we have seen schemes under this banner disappear, whilst others have carried on without that branding. The most popular and well-known of these was the Help to Buy Equity Loan Scheme, which was closed to new applicants towards the end of 2022.
What this means is that first time buyers in Manchester are no longer able to use a Help to Buy in Manchester or anywhere in the UK, though this doesn’t necessarily mean that support for home buyers has ended. There are still a variety of schemes that can help to buy in Manchester!
This initiative was launched to permit prospective buyers to apply for a mortgage covering a portion of their dream property’s total cost, with the remaining percentage repaid monthly as rent. Most applicants end up owning between 25-75% of their home under this scheme, but there are exceptions where only 10% goes in their name. The remainder of the property is held by a local housing association, council, or other possible stakeholders.
Under the shared ownership structure, you’re required to make monthly rent payments to your landlord (the provider) as well as mortgage repayments on the percentage of the home you own. Please note, the property will be under leasehold tenancy, which typically entails ground rent and service charges billed monthly. Regardless of the proportion of the property you own, you’re responsible for 100% of these monthly fees.
In the future, you may have an opportunity to buy additional shares, which reduces your rental outlay, a process known as “staircasing”. You’re free to purchase a new property, a shared ownership resale home, or a property tailored to special needs, such as a long-term disability.
Hot on the heels of the Help to Buy Equity Loan Scheme success in 2014, the government rolled out the Armed Forces Help to Buy Scheme. This scheme, similar in design but with an emphasis on making it easier for UK armed forces personnel to secure property, is an efficient tool for those meeting the defined criteria.
The scheme was set to expire soon, but the government has extended its tenure to December 2022! We’re thrilled at this development, given the scheme’s immense benefits for armed forces personnel securing financing for a house.
While the Lifetime ISA often goes under the radar in discussions surrounding home purchasing assistance, it nonetheless could be a beneficial tool for certain first time buyers in Manchester.
Essentially, a Lifetime ISA in Manchester is a savings account where funds deposited grow tax-free. Moreover, the government boosts your savings by an additional 25%. If you achieve the maximum yearly deposit of £4,000, you stand to receive a handy bonus of £1,000.
There are specific requirements to qualify for the Lifetime ISA Scheme.
The Mortgage Guarantee Scheme is a significant initiative aimed at making homeownership more attainable, particularly for first time buyers and home movers in Manchester.
This scheme allows buyers to secure a mortgage with just a 5% deposit, providing a substantial boost to those struggling to save larger sums. The government backs 95% loan-to-value (LTV) mortgages, reducing the risk for lenders and encouraging them to offer these high LTV products.
Since its launch, the Mortgage Guarantee Scheme has helped many individuals and families achieve their dream of owning a home.
There are specific eligibility criteria to meet for the Mortgage Guarantee Scheme in Manchester. If you want to see whether you qualify, feel free to reach out to a member of our team of head to the OwnYourHome.gov.uk website.
With us, you’ll always have a dedicated mortgage advisor in Manchester dedicated to prioritising your needs. Your mortgage advisor will address any concerns or queries you have, ensuring you’re well-informed throughout the process and beyond.
By staying closely involved, we keep you updated on any changes and promptly request any necessary information to advance your mortgage application. Speaking to a mortgage broker in Manchester allows you to stay proactive in the mortgage process.
Our team of trusted mortgage advisors in Manchester are able to help with arranging your mortgage agreement in principle within 24 hours of your initial appointment, which is something you’ll benefit from having when it comes to property negotiations.
There exist numerous reasons why property owners decide to relocate; one prominent reason is the necessity for a property of a different size. Over the years, it’s common for families to gather items and as children grow and demand more space, there is an increasing desire for a more spacious abode. Conversely, individuals who are retiring or going through a separation may prefer to scale down to a less sizable property.
If you already own a property, you might consider other alternatives to increase your space without having to relocate. This could be through boosting your capital via remortgaging to fund home improvements such as building an extension or converting a garage to a home office or gym. You could also look at loft transformations. These kinds of remortgage for home improvements can enhance the value of your dwelling when you decide to put it on the market later.
Another compelling reason for homeowners to consider a move is the pursuit of a better location or a more prosperous neighbourhood. The standard of schools available within the area can sway such decisions, especially for families. Others might desire a move to be in closer proximity to friends or relatives, particularly when contemplating starting a family.
Exiting your first home can be an emotive decision, but our services are designed to aid you in understanding the merits and demerits of relocating and procuring a new mortgage versus remortgage advice in Manchester. Our mortgage consultants are on hand to work out your maximum borrowing potential and provide monthly payment quotations to ensure you’re making an educated decision.
Saving for a deposit can often pose a daunting hurdle on the road to homeownership, especially for first time buyers in Manchester making their first step into the property market. The persistent upward trend of house prices over the past two decades can make the initial deposit for a mortgage seem increasingly out of reach.
Typically, mortgage lenders require a minimum down payment of around 5% of the property’s total value. For instance, for a house priced at £200,000, you’d need to have £10,000 saved for your deposit. As a mortgage broker in Manchester, we can assess your income and financial capacity to determine whether a 5% deposit is feasible or whether you need to aim for a larger amount.
It can be achievable to secure a mortgage with a 5% deposit with bad credit in Manchester. However, it largely depends on the duration and extent of your credit issues. Usually, applicants with poor credit scores are asked to provide a higher deposit, generally in the range of 10%-15% of the property value.
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The government launched the Help to Buy initiative back in 2013, aimed at offering a financial lifeline for those aspiring to get a foot on the property ladder. Whilst Help to Buy no longer exists, varying forms of help are available for home buyers, each with their own unique advantages. Some of the more prevalent schemes include:
As a first time buyer in Manchester, this programme could aid you in securing a 95% mortgage, meaning you only need a 5% deposit. The applicability of this scheme will revolve around your economic condition and creditworthiness.
This popular scheme offers a practical and economical path to homeownership, allowing people to hold a portion of the property while renting the rest. You have the option to buy a share of the property, usually between 25% and 75%, and rent out the remaining portion. Over time, you can steadily increase your share until you take full ownership.
This is an incentive aimed at helping first time homebuyers accumulate a deposit. Suitable for those aged between 18 and 40 contemplating buying their first house, it allows savings of up to £4,000 per year, with the government kicking in a 25% bonus (£1,000 tops) to facilitate property purchases.
For a full rundown of these schemes, have a look at OwnYourHome. Alternatively, please get in touch with our team of mortgage advisors in Manchester for a chat about your possibilities. You might find that, based on your fiscal circumstances, a 5% deposit mortgage is already attainable, without the need for additional help. If you’re a first time buyer in Manchester, set up a no-obligation mortgage consultation and get the ball rolling on your purchasing journey today.
An Individual Voluntary Agreement (IVA) is a formal contract established between a debtor and the lending body, known as the creditor. The purpose of such an agreement is to formulate a manageable monthly repayment scheme that usually spans over five years.
This arrangement is guided by an Insolvency Practitioner, an expert in levering debts. They will act on your behalf, communicating with the creditors to warrant prompt payments.
Whilst possessing an IVA can present some challenges when seeking a mortgage, it isn’t entirely unattainable. Given the nature of the situation, it’s strongly advised to consult an Insolvency Practitioner prior to applying for a mortgage.
The reason behind this advice lies in the terms of your agreement. In certain instances, if you apply for credit that tops £500 during your IVA term requires written approval from the creditors agreeing to your IVA terms. This approach seems logical, given that the bedrock of an IVA is all about managing your finances and making feasible monthly payments.
Any extra credit obligations could harm your repayment of the IVA. After all, from the creditor’s perspective, surplus income should ideally go towards repaying your IVA.
Affordability is key when considering an IVA. The debt repayment plan must be manageable, but also leave sufficient disposable income to cover housing and other necessary living costs.
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An IVA may impact your mortgage application. While an IVA generally represents a more favorable option than missing payments, it’s highly likely to impair your credit score, which in turn may limit your chances of securing a mortgage. Furthermore, the mortgage lender needs assurance that you have enough disposable income left. If you were a mortgage holder prior to your IVA, this was factored into your agreement.
That said, if you’re pondering this option down the line, remember that you’ll already have basic living expenses and IVA repayments to consider, thus affording a mortgage on top may not be feasible. Extra income might be best used towards settling your IVA.
Even though the idea of home ownership once your IVA concludes may be attractive, it’s prudent to exercise caution. While you’re now free to manage your income as you please, your credit file will still need ample time to recuperate. Often, it’s advised to wait a few years to ensure your position is optimal.
Getting a mortgage or remortgage with bad credit is possible, but having a healthier credit file will yield much better interest rates.
The aftermath of the credit crunch has made lenders comfortable again, offering up to 95% mortgages to first time buyers in Manchester.
It’s only fair for lenders to see evidence that you can save on a monthly basis, not only does it build confidence, but it also assures lenders that you can afford your monthly repayments, even in challenging times.
We understand the difficulty of saving for a 5% deposit for many first time buyers in Manchester, often serving as a significant hurdle for those aiming to enter the property market. This challenge becomes especially pronounced for individuals with families or those currently residing in rented accommodation.
If you can afford to, you should aim for a higher deposit. A larger deposit works to your advantage, enabling you to secure a lower interest rate, saving you money in the long term. It also portrays you as a less risky borrower to lenders. The required deposit will vary, determined by several factors, including your financial status.
The proportion of mortgage you borrow will inform lenders about your commitment to your mortgage. However, bear in mind, greater interest rates equate to higher repayments costs. Therefore, a larger deposit not only helps in making your home buying process smooth but also assures your long-term satisfaction.
This option could work under certain circumstances. The lender will consider your monthly payments from your loan as an extra financial commitment, which could potentially reduce your approved mortgage amount. This essentially means you’d be borrowing the full purchase price, something most lenders are unwilling to support.
Lenders usually accept deposits in the form of gifts from family and friends. The benefactor, however, must vouch that the money gifted is not a loan and provide identification and proof of funds to fulfil anti-money laundering obligations. Some people receive generous gifts from the “Bank of Mum and Dad” to help towards a deposit.
Lenders need to see bank statements for Anti-Money Laundering reasons, showing how the deposit fund was accumulated. If you have made a large deposit, you may need to provide extra evidence supporting this. For instance, if you have sold a car, you would need a receipt reflecting the amount it was sold for corresponding to your bank deposit. Sellers could use the Memorandum of Sale drawn up by the Estate Agent as proof.
If you’re buying at a discount (If you’re being offered a £100,000 house for say £90,000), some lenders might consider this as your guaranteed deposit. Your eligibility for a right to buy in Manchester from a Local Authority or any other Social Landlord could help in such cases—our mortgage advisors in Middlesbrough are readily available to help you with this.
The world of homebuying presents a multitude of mortgage options. Each option carries its unique attributes, pros, and cons. This piece will shed light on the tracker mortgage, exploring its functionalities, popularity among homebuyers, and other essential considerations.
Selecting a mortgage deal isn’t a one-size-fits-all scenario. The utility of a mortgage relies heavily on the situations it’s applied to. For instance, acquiring a tracker mortgage initially may seem like a good idea, until you discover that fixed payments (fixed-rate mortgage) would have been more suitable down the line. Unfortunately, with a contractual agreement in place, it’s often too late to make changes.
That’s why we strongly advocate for upfront planning, research, and professional advice, especially for first time Buyers and home movers in Manchester. As a trusted mortgage broker in Manchester boasting wealth of experience, we can provide invaluable mortgage advice tailored to your unique needs.
Essentially, a tracker mortgage reflects the Bank of England’s base interest rate plus an additional percentage determined by your lender. Your lender has to adhere to this external rate, which invariably affects your interest rate.
For example, if the Bank of England’s base rate is 1%, and the lender adds an extra 1%, your interest rates ultimately resonates with the bank’s percentage.
A tracker mortgage is intimately linked to the health of the economy. If the Bank of England’s rate is high due to a struggling market, it may not be the best mortgage option. Conversely, if the base rate is low due to favourable economic conditions, a tracker mortgage might be an appealing choice.
Manchester offers a diverse selection of mortgages suitable for first time buyers in Manchester. To ensure you make an informed decision, consider seeking advice from a reputable mortgage advisor in Manchester on plausible options.
Having been in the mortgage industry for over two decades, we offer trustworthy advice to first-time buyers. Based on our exceptional understanding of the different types of mortgages, we can match your specific needs to the best possible mortgage type.
Our services also extend to existing homeowners looking to remortgage or move homes in Manchester. As an endearing and skilled mortgage broker in Manchester, we are committed to guiding you through the entire mortgage process, ensuring a smooth and satisfactory experience.
If you’re planning moving home in Manchester, you’re likely to encounter various hurdles and challenges. These might range from delayed acceptance of your property offer to your application being stuck in the popeline of the buying process.
A property chain is a series of home sales that are interdependent, forming a ‘chain’ of transactions. If you are a first time buyer in Manchester, you start this chain, however, if you are selling a property, you form the final link. Basically, it is akin to a real chain connecting houses. For a buyer to move in, they need to wait for their seller to vacate first, which is essentially the same situation you’re in. Depending on the complexity of the property chain, it can be an extensive and intricate process.
The duration is subjective to your specific situation – it is intertwined with the status of your seller’s seller (complicated… we know). Alternatively, you could be oblivious to being part of a property chain and everything could proceed like clockwork.
The ideal scenario is a fast and hassle-free moving home process. If that is not in your cards, you could be caught in a holding pattern. Being a mortgage broker in Manchester, we advise home buyers to set aside a minimum of six months for the entire exercise. This leaves you with ample time to find your dream abode and provides a buffer for potential hiccups, especially if you’re enmeshed in a property chain.
Regrettably, if a link in your property chain collapses, the entire subsequent chain could crumble too. If your link breaks, acting swiftly could save the entire chain. If you’re selling, immediately inform potential buyers through your realty agent to pre-empt any delay.
While you cannot predict everything, there are contingency plans for a break in the chain. You can opt for chain-free properties, temporarily rent after selling your property or invest in a new property under construction. For comprehensive relocating home mortgage advice in Manchester, reach out to our expert mortgage advisors in Manchester.
A property chain can break for many different reasons. It could happen at your’s, your seller’s or even your buyer’s level:
These are just a few examples, there are many more reasons. Depending on the length of the property chain that you’re in will depend on how drastically these situations impact your ability to move home.
It’s tough to sidestep a property chain during peak buying months or when the market trends upwards like in January. Conduct a detailed market study, liaise with your real estate agent and manage your fiscal matters promptly – this aids in averting pitfalls later on. If you are successful in avoiding a property chain, your relocation process could progress unfettered, assuming your income and down payment checks out.
Allow our team of expert mortgage advisors in Manchester to navigate you through the process. You may book a free mortgage appointment. Embark on your relocation journey today and let us ensure a stress-free transition. We look forward to assisting you.
University life is a phase of newfound freedom and growth, but it is also an introduction to financial responsibilities. Alongside tuition and housing costs, there is the natural aspect of fulfilling personal, social needs.
With respect to student accommodation, you could be fortunate and have a responsive landlord who tends to all maintenance issues promptly. Regrettably, the more common experience involves unresponsive landlords, taking weeks to resolve issues like a malfunctioning washing machine.
In such a scenario, your rent seems to be draining finances with no return. An alternative? Becoming your own landlord through obtaining a student mortgage on your place of residence. This path is not just about saving money; it’s a potentially profitable long-term investment.
A student mortgage is an effective way to decrease housing expenses while providing a head start on the property ownership journey. View it as an investment strategy, especially useful for students in their later years of study or contemplating postgraduate study.
Even if you plan on moving after graduation, the property could be sold, using those funds towards your next home. The equity accumulated over the years in the existing property could be reused as a deposit for a second home or even fund vacations or a vehicle purchase. Thus, a student mortgage offers both immediate as well as long-term benefits.
Securing a student mortgage might not be an easy task, but it’s indeed not impossible. In our experience as a mortgage broker in Manchester, students looking for mortgages have some finances, perhaps savings, a Lifetime ISA or gifted deposits, for the initial down payment. If you are unable to make this down payment, the process may not proceed further. Borrowing for this payment would mean juggling payments for the loan, the mortgage, and course costs.
Qualifying for a mortgage as a student generally requires a source of employment. Full-time employment is ideal, but part-time work can also suffice.
Effective strategies to establish your reliability for mortgage lenders might include a larger deposit to reduce monthly payments or tapping into a government programme like the “Own Your Home” scheme. Look for plans that assist with larger initial investments or a share in the ownership to lower monthly mortgage payments. An Agreement in Principle (AIP) could solidify your case early on by showing you have pre-approval from a lender based on income proof and a good credit history.
Mortgages often come with specific prerequisites, and student mortgages are no exceptions. A major condition for attaining a student mortgage is the requirement to sublet the remaining rooms in the house. The rent collected from these tenants can help cover monthly mortgage payments.
Lenders are aware of the risks associated with lending to students. In the event of being unable to make mortgage payments, the onus falls on the guarantor – someone declared during the application process to step in and handle payments if necessary. Guarantors are usually required to meet specific criteria.
As mortgage brokers, we understand that lenders take the necessary precautions for any mortgage applicant, always preparing for the worst-case scenario.
For assistance in applying for a student mortgage or seeking advice for first time buyers in Manchester, get in touch with us. We can help ascertain if you qualify for a student mortgage. We look forward to hearing from you soon.
First time buyers in Cardiff have been hit by a trend where real estate values are increasing more rapidly compared to wage rates. Consequently, numerous individuals are turning towards shared property purchasing wherein they team up with a partner or friend. This initiative allows for a more affordable housing option. Joint-purchasers are generally seen as more attractive to lenders since the combined income boosts their borrowing ability, factored in during mortgage affordability calculations.
Some lenders, surprisingly, are open to having up to four co-owners. If an owner stops contributing towards the mortgage, the remaining partners retain the right to live in the property unless a contrary court order is issued. Any intention to raise the mortgage amount later will require approval from all owners, enforcing the need for a long-term strategy.
When it comes to joint tenancy and tenancy in common, joint tenancy is popular among married and civilly partnered couples. This tenancy format hinges on survivorship rights; the surviving partner inherits the property if the other partner dies. It also requires unanimous agreement when remortgaging or selling the property.
On the other hand, ‘tenants in common’ ranked high among relatives and friends. This lets you individually own distinct yet unequal parts in the property, making it feasible if one owner has a larger financial contribution. This tenancy offers individual action privileges, allowing owners to sell or gift their share without needing the other owners’ consensus.
If partners separate, all mortgage payers remain jointly and individually liable for the mortgage. Hence, if one party exclusively funds future payments, they’re still fully responsible. You jointly own the entirety of the property, not just half.
Removing an ex-partner from a joint mortgage calls for evidence that you can handle the monthly payments alone. It’s an undoubtedly tricky scenario, hinged on the lender’s confidence in your repayment capability as a solo borrower despite the safety net offered by double ownership. If you show a history of single-handed payments post-separation, the lender might authorize a mortgage transfer to your name only. However, some lenders might reject your request, so it’s advisable to consult a mortgage advisor in Cardiff prior. Your family could also be a potential aid, either substituting for your ex-partner or donating lump-sum payments, thus reducing your owed amount.
Separately, even if you’ve relinquished the house to your ex, your name on the shared mortgage still renders you liable for payments. If you’re aiding your ex with the payments, ensure they are making good on their promise by checking your credit report. Any negligence on their part can dampen your score and if you’re planning a new purchase, the existing payments will affect the potential loan amount.
Ultimately, buying a home isn’t the same to renting; disagreements can get messy. So, it’s recommended to agree beforehand on the way forward, should things not plan out as expected.
An Agreement in Principle (AIP) is the first step for first time buyers in Manchester to get a mortgage. It’s sometimes called a Mortgage or a Decision in Principle, and lets you know how much you could borrow before you apply for a mortgage. It’s not a binding agreement but rather an indication of the maximum amount you can borrow for a mortgage. Obtaining an AIP can be a useful step in the home-buying process as it gives you an idea of your borrowing capacity, helping you narrow down your property search to homes within your budget.
A soft credit search, also referred to as a soft credit check or soft inquiry, is a type of credit check that does not impact your credit score. Soft searches are typically used for background checks, pre-approval processes, or when you check your own credit report. When you apply for an Agreement in Principle, lenders usually conduct a soft credit search to assess your creditworthiness without leaving a mark on your credit file. This allows you to shop around for mortgage deals without worrying about damaging your credit score.
In contrast to a soft credit search, a hard credit search, also known as a hard credit check or hard inquiry, does affect your credit score. Hard searches occur when you apply for a mortgage. Lenders conduct a comprehensive review of your credit history and financial background to assess your risk as a borrower. Each hard search leaves a record on your credit file, and multiple hard searches within a short period can lower your credit score temporarily.
Being a trusted mortgage broker in Manchester, we play a crucial role in helping you navigate the mortgage process and understand the implications of credit searches.
We have access to a wide range of lenders and mortgage products, allowing them to find deals tailored to your individual circumstances. During your free mortgage appointment with us, we can advise you on the most suitable lenders based on your financial situation and preferences.
Additionally, brokers can help you avoid unnecessary hard credit searches by matching you with lenders who are more likely to approve your application based on soft search criteria. By leveraging our expertise and industry knowledge, we can streamline the AIP process and ensure that you approach lenders who are most likely to offer you favorable terms.
Our mortgage advisors in Manchester can guide you through each step of the mortgage application journey, from initial assessment to final approval, providing invaluable support and advice along the way.
With our assistance, you can secure an Agreement in Principle within 24 hours after your appointment, and fill first time buyers in Manchester with confidence with knowing that you’re making informed decisions that align with your long-term financial goals.
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UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 9 Gallows Lane, Beverley, United Kingdom HU17 7FJ.
Authorised and Regulated by the Financial Conduct Authority.
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© Manchestermoneyman 2025.
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Manchestermoneyman.com & Manchestermoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 9 Gallows Lane, Beverley, United Kingdom HU17 7FJ.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk.
© Manchestermoneyman 2025.
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