The Pros & Cons of Using a Mortgage Broker in Manchester

It can be daunting taking that first step into the mortgage world for the first, second, or third time. With many options for first time buyers in Manchester, home movers and buy to let landlords’ to take for themselves, it is time and cost effective to get it right the first time.

Regardless of your mortgage goals and situation, we offer a tailored and friendly service to try and help you through your mortgage journey.

We understand the process can be complicated. Therefore, we have great confidence in our ability to help our customers through the mortgage process and provide expert mortgage advice in Manchester to new and existing customers.

In this article, we have collated an overview of the pros and cons of approaching a mortgage broker in Manchester which may help you, and why many people prefer coming to us for mortgage advice in Manchester. 

Why use a mortgage broker in Manchester?

Cost-Effectiveness

Many believe that by doing direct and finding your own mortgage deal, you are more likely to save money. This is not entirely the case, as most mortgage brokers in Manchester may charge a fee, however, this does base on circumstances and company you go towards.

It could be easier and more cost-effective if you have a lot of knowledge and have a simple case, but it can be more complex depending on your situation so approaching a mortgage broker in Manchester would be useful.

Not having much knowledge could result in ending up on the wrong deal or being unsuccessful on your mortgage application. Either of these conditions could end up you spending more money than you must or harming your credit score. Which can impact your chances of applying for a mortgage in the future.

With a dedicated mortgage advisor in Manchester by your side, they will aim to help you achieve your mortgage goals. Their goal is to get their recommendation right for the first time, at the best price. As much as this comes with a service fee, it could mean that you save much more money overall.

Local Bank Branch Relationship 

Loyalty can be one reason many customers approach the bank directly and how the mortgage process was previously run. This was the way before the rise of technology and online banking, in which loyal customers approached their local branch every day, usually talking to the same person.

In terms of the mortgage process, your best bet would have been to get the best person to approve a mortgage for you because you get help and guidance from the bank manager himself, who is an expert and has a thorough knowledge of your finances. Now, the process is significantly different with the credit scoring being digital.

Because of this, the bank manager will not physically go through the case themselves; it will go through a complex online system to see if you are eligible for a mortgage. Everything is fair regardless of which bank you are with.

Exclusive Mortgage Products 

Many believe that you are open to better, exclusive offers by going directly. Again, this is true, though, it can be limited. That is because they only offer their company the best deals.

Not all mortgage lenders are banks, and there are many more options available. Therefore, the deal that the bank considers suitable for you may not be the best deal beyond the bank you could have gone with.

Getting specialist mortgage advice in Manchester can be the best way to get a competitive deal that is suitable for you. One of our expert mortgage advisors in Manchester will be able to go through your case and find you the best deal from our large panel of lenders.

This is another advantage of approaching a mortgage broker in Manchester rather than just a bank.

After the topic of deals, you can find approaching a mortgage broker in Manchester can provide you with exclusive deals that you cannot find anywhere else. There will be a broad range of options when you are with a mortgage broker regardless of if you are a first time buyer, moving house, or looking to remortgage in Manchester.

Changes to Regulation & Consumer Protection  

In the wake of the 2007-08 credit crunch, a huge improvement in the mortgage market had to occur. One of these changes was stated in the 2014 Mortgage Market Review. Which instructed lenders without extensive expert advice to sell mortgages to their customers.

Because of this, people could not just approach a bank to tell them they wanted a mortgage and were promptly granted without checks. Not every employee in the bank could grant you a mortgage. Which was something that happened regularly regardless of whether they were qualified to do so or not.

As well as this, these changes also bought about consumer protection, which a bank would not have given you. Now, you can place a complaint with the Financial Ombudsman if you feel misadvised. Another way to make a claim is through the Financial Services Compensation Scheme.

This means reassuring a customer that they will be safe and advised accordingly regardless of their mortgage journey. This applies to mortgage brokers in Manchester and lenders.

Book an Appointment with a Mortgage Advisor in Manchester 

Another drawback you get approaching a bank instead of a mortgage broker in Manchester is the timing. When you approach a bank, it can take months to talk to someone in a bank. Moreover, when you start the process, you are not updated as much through the mortgage journey.

Here at Manchestermoneyman, our responsive team will contact you at a time that is best for you and your day to day life. From early to late, 7 days a week, including weekends, our mortgage advisors in Manchester will be available to answer any of your questions and keep you up to date. You might find us being contactable on some bank holidays.

In some cases, you may attend your appointment on the same day, but this should not be the case. You can talk to someone whenever you are ready and available.

We understand that the lifestyle of each customer is different. As a result, our advisors in Manchester are available throughout the day, which means you can book an appointment beyond 9-5 or even on weekends! Our online booking system is simple, where you can find a slot to speak to a mortgage advisor in Manchester.

Responsiveness is a fundamental value within our company. Whether you are at the beginning of the process or towards the completion of the mortgage, our friendly team will always keep you up to date. If there are changes, your mortgage advisor in Manchester will contact you as soon as possible.

Providing this high-quality service is why many mortgage brokers in Manchester, like us, are favoured in the public eye. With this popularity, many people prefer to approach local experts rather than national banks.

Handling of Complex Scenarios 

Thanks to our extensive industry experience, we have found that some cases are more difficult than others. Below are just some scenarios that are slightly more difficult than the usual case:

  • Mixed Depsoit – This means auditing two different sources like a gifted deposit and money from savings. 
  • Zero Hour Contract Workers – Will there be a consistent income? 
  • Looking to Make a Second Purchase – Can they afford to make that additional purchase? 
  • Self-Employed with No Fixed Income – This can be challenging for anyone who is self employed in Manchester
  • Poor Credit History – A lender will not look favourably upon an applicant who has mismanaged in the past. 
  • Affordability – Can they afford a mortgage full stop? 

Previously, mortgage lenders could easily compete by offering better deals than the others. Now, the main change in which deal you go with is if you match the criteria.

You can find a cheaper deal, but it may not meet your criteria. To see if you can have a mortgage, the mortgage lender carries out a hard search (resulting in a footprint on your credit file).

In the case where you apply for the mortgage with a lender and refuse a deal in principle, this could harm your credit file. The most frustrating thing about all this is that it is very unlikely that you will be given a reason you have been rejected.

Agreement in Principle

Mortgage brokers in Manchester will be able to go through your case and advise you on ways to increase your chances of being accepted. With access to a wide range of lenders, they can find you the most suitable deal that perfectly matches you with its criteria and then start getting an agreement sorted for you in principle.

If you get an agreement in principle through Manchestermoneyman, it will usually be sorted for you within 24 hours of your free mortgage appointment.

Keep in mind that this doesn’t automatically mean you agree or guarantee a mortgage at the end. However, it makes your credit file much safer by having an expert go through it in advance. Our team of Mortgage Advisors in Manchester will always aim at getting our recommendation right the first time.

Should I use a Mortgage Broker in Manchester? 

There are pros and cons of approaching a mortgage broker in Manchester. On the hand, there are many pros and cons to going direct too. The difference is how fast you want your service to be, as well as how safe you want to be.

As a dedicated mortgage broker in Manchester, we have extensive experience in dealing with a wide range of clients who go through the mortgage journey. Whether you are a first time buyer in Manchester taking that first step into the mortgage world. Somebody who is coming towards the end of their fixed period, or looking to remortgage in Manchester, our team are more than happy to help!

Book yourself in for a free mortgage appointment or remortgage review to speak with an expert mortgage advisor in Manchester. Our team is here to help with your mortgage goals, with availability that suits you, subject to availability.

For more information about our service, check out our brilliant customer reviews. These show the high level of service we give our happy customers daily. We also have a YouTube channel MoneymanTV if you are looking for more insight into the mortgage world. 

What Credit Score Do I Need For a Mortgage in Manchester?

When it comes to applying for any sort of finance, you will be asked to provide an up-to-date credit report. A credit report is essentially a summary of your finances and how you manage your money. It will be summarised by a score out of 1000 – your credit score.

As a mortgage broker in Manchester, we see different credit scores every day; some averaging low, some averaging high. Depending on an applicant’s financial situation, credit scores can differ from person to person. In a room of ten people, it would be very unlikely to find two people with the exact same credit score.

Credit scores range from 0-1000. Sites such as Experian, Equifax and TransUnion will give you a general guide as to what is classed as a poor, fair, good, very good and excellent credit score. These are based on averages over a period of time however, therefore, one lender’s impression of a “good” credit score could be completely different to another.

Getting a mortgage with a high credit score in Manchester

Reliability is the key to getting a mortgage, and having a good credit score can massively help in showing that you are reliable and someone who manages their finances sensibly.

Despite appearing as a reliable applicant, you should know that having an excellent credit score will never guarantee you a mortgage. As a mortgage broker in Manchester, we have seen that some lenders offer products that can only be accessed to customers with a credit score greater than 900.

We would recommend speaking with a professional mortgage advisor in Manchester like us before applying for these high-end products. If you do not match the product and you get declined, you could negatively impact your credit score.

Getting a mortgage with a low credit score in Manchester

If you have a low credit score, you still may be able to take out a mortgage. Yes, you could be limited to specialist deals that come with high-interest rates, however, at least you are still may be able to take out a mortgage!

Remember that everyone’s situation is different and that it is also down to people’s personal circumstances too. So one applicant with low credit may get a mortgage whilst another applicant with a similar credit score may not due to their complex personal situation.

Young applicant with low credit score

If you are a younger mortgage applicant with a low credit score, you may still be able to find success in your journey. As a first time buyer in Manchester, you may simply not have built up a sufficient credit score yet. Most of the time, this isn’t a problem, even more so if you are using a government-led scheme such as the Help to Buy Equity Loan or Shared Ownership.

If a first time buyer has low credit, it does not necessarily mean that they are bad with their money they just probably haven’t had the chance to increase it. If there is a record of missed payments and defaults, this will harm the chances of getting a mortgage.

Some lenders may only want buyers with good credit, no matter whether they are a first time buyer or not, it depends on the lender. Before applying to lots of different deals, it can be best to first get mortgage advice in Manchester and get the answer to all of your questions.

Mortgage with a CCJ or Default in Manchester

If you have missed your loan repayments on anything, for a particular length of time, a creditor may issue you a default notice. A default can severely impact your credit score, and even more so if you already have a low score. If your score declines to “poor”, you may be refused a mortgage altogether and may struggle to take out any loans in the near future.

You can pay back a default straight away, but it will still have already impacted your credit score. If you don’t pay it straight away, you will likely be issued with a County Court Judgement. This is the last resort for creditors; first trying to chase the debt and if this doesn’t work then work on an agreement to pay the debt back over time.

Having a CCJ on your credit file is very unappealing. Lenders may be completely put off if they see one in your name. Not to mention that they will also cause damage to your credit score. You could even find it difficult to get a new credit card or open a bank account.

CCJs remain on your credit file for 6 years, even if you settle the amount owed. You can protest a CCJ if you feel that it shouldn’t have been issued, however, you will need to have sufficient evidence to fight your claim.

You can “satisfy” your CCJ by paying it off. It will still appear on your file, although it will say “satisfied” next to the payment. Lenders will be able to see that your debt has been repaid in full. They will also be able to see when the CCJ was originally issued and how long it took you to pay it off.

Typically, the longer a CCJ has been on your file, the more likely you are to get a mortgage. If the CCJ has only been on your record for a year, you’ll be lucky to get your application moving.

This all again depends on the circumstance and the mortgage lender’s criteria. We would always recommend speaking with a mortgage broker in Manchester prior to submitting a mortgage application with a CCJ in your name.

Remortgage with bad credit in Manchester

If you already own property and were looking to remortgage your process should be straightforward enough. But, if you have bad credit and are trying to remortgage, you may slightly struggle depending on your situation.

Even though it is your own home, when you remortgage, you are taking out another mortgage product. When you take out a new product, you still have to undergo affordability assessments and credit score checks, therefore, if you have bad credit, you may struggle to remortgage. You may have to accept the fact that you are going to fall onto your lender’s standard variable rate of interest (SVR).

Speak to a specialist mortgage advisor in Manchester prior to remortgaging with bad credit. An expert can answer all of your remortgage questions and see whether you could qualify for any specialist deals.

How does a low credit score impact interest rates?

If you have a lower credit score, you may find it more difficult to access the lower rates of interest. The lower rate products usually come with a “very good”-“excellent” credit score requirement.

As mentioned earlier, you still may be able to access these better rates of interest if you are a first time buyer. This is because you may not have had the chance to increase your credit score yet.

On the other hand, if you have adverse credit, such as a default or CCJ, you will likely be incurring higher interest rates.

Usually, you are able to put down a higher deposit to gain a better rate of interest, however, if you have bad credit, you may already be asked to put down a higher deposit to show your reliability. In this scenario, you will still likely be on a higher rate.

A Guide to Offset Mortgages in Manchester

Offset Mortgage Advice in Manchester

The general popularity surrounding Offset Mortgages has dipped since their rise during the 1990s, though some of you may be pleased to know that they are still a great option for customers who have the ability to put some money aside every month.

They’re also quite good if you believe that you are due to receive a lump sum in the near future.

How can an Offset Mortgage help?

When you start out with your Offset Mortgage, you will be given a savings account by the mortgage lender that will run alongside your mortgage, for the sole purpose of aiding your mortgage. Rather than racking up interest, the money will offset against the balance of your mortgage.

As an example of how this works, let’s say that your mortgage is worth £100,000 and you have managed to save up £15,000 in savings, then you will only be paying interest on the £85,000 that is left.

Offset Mortgages tend to be rather flexible arrangements. Until you have completely offset your mortgage, you will have the ability to put as much money as you would like into it. You will always have instant access to the money that is in your savings, so if you need to dip in for any emergencies, you know that it is there.

One of the things that is really great about Offset Mortgages, is that it saves interest, as opposed to adding it on, so you won’t have to pay any tax on any savings that you put into your savings. Higher rate taxpayers are definitely big fans of these!

Things You Need to Know

An Offset Mortgage is a great option if you are due a lump sum for any reason, such as possible inheritance, as because it is interest-free, it allows you to store your money until you know what you want to do with it. This also applies to any annual or quarterly bonuses from your job that you have no dependance on.

Because your savings account will be freely accessible at any time, you are able to dip into your additional savings for other means if you need to, whilst leaving some in there for your mortgage. It is important to remember that you need a substantial amount in there though to make your Offset worth taking out!

An Offset Mortgage can work out really well for First-Time Buyers in Manchester who have any plans to overpay on their mortgage. Looking further down the road, once your current term ends, overpaying can potentially reduce your mortgage payments for the next term that you take, reducing interest rates in the process.

With other mortgage types, any money that you put towards your mortgage cannot be withdrawn at any point, with releasing equity being your option once your term has ended. This is a situation that is less than ideal if you have any second thoughts or need a short term boost to your income.

It’s times like this where Offset Mortgages are rather clever. Because you have a savings account, you will have the ability to take out the funds at any time, then put them back in when you are ready to do so.

So, if you’re looking to make any further payments on your mortgage over the term, we’d recommend making use of an Offset Mortgage savings account.

Conclusion

You should consider all of the options that are available to you when you get in touch with a Mortgage Advisor in Manchester.

Some consumers who like using Offset Mortgages tend to keep going with them and are less likely to Remortgage than another homeowner might be inclined to. The may seem a little complex though, so there are customers who may not use this option.

Your dedicated mortgage advisor will be able to show you the impact of how an Offset Mortgage can potentially save you money over the course of the full mortgage term.

If you have any further questions relating to the topic of Offset Mortgages or a Remortgage in Manchester, feel free to book online for your free mortgage appointment and we’ll happily talk you through whatever you need help with.

Sole Name Mortgage Advice for a Married Applicant in Manchester

Mortgage Advice in Manchester

When you start applying for a mortgage, we usually find that the vast majority of applicants in relationships will opt for a joint mortgage instead of applying for a mortgage in one of the couples’ sole names.

With property prices continually fluctuating ahead of wage increases, lenders prefer first time buyers in Manchester to have two incomes, rather than both of them living there, and only one person is liable for the mortgage. 

Sometimes there are situations where it’s acceptable for a sole name to apply for a mortgage. Be that it’s a personal choice or down to circumstances, it can be anything from one of the applicants not keen to have their name on the mortgage to a financial issue that cropped up.

Financial issues could be bankruptcy to county court judgment, factors like these that could affect the other applicant, and their chances of obtaining a mortgage. In situations like these, it’s much better than having no tied finances, and only one applicant applies for the mortgage in their name.

It’s worth noting that if one half of a couple gets into trouble financially, it can significantly harm the other half attempts to apply for credit, especially something as significant as a mortgage loan.

Mortgage Application Borrowing Capacity

The maximum borrowing capacity for a couple with only one applicant in employment will be lower than it would’ve been if the applicant who is employed had applied in their sole name.

Age is another factor that can affect the maximum amount you can borrow. For example, if you are over 50 and plan to take out a mortgage with a younger partner with a higher paid job, they have more time to pay off the mortgage. It’s then best to apply in their sole name, as they may have access to a much higher mortgage amount.

Implications on Tax

The effects of stamp duty or something else relating to tax may be a potential reason a couple may choose only to have one of them apply for the mortgage in their name rather than as a couple.

Speak to a Dedicated Mortgage Advisor in Manchester

You’ll find that there are many lenders with strict criteria regarding married mortgage applicants, as it is a mortgage that will involve two people who are connected firmly. Whilst applying under a joint name gives the lender security, it can have its problems.

The main reason is that if you happen to get divorced, it’s a complex process trying to remove one of your names from the property. Our team of mortgage advisors in Manchester can help with this, but you should give plenty of thought before jumping in headfirst with your partner.

Here at Manchestermoneyman, we have Specialist Mortgage Advisors in Manchester available 7 days a week to help you find the most suitable mortgage for your circumstances.

We are proud of the level of service we can provide home buyers and homeowners alike, so please do book yourself in for a free mortgage appointment, and we’ll see how we can help!

Plan Ahead to get a Mortgage in Manchester

Fast & Friendly Mortgage Broker in Manchester

Buying a home isn’t something that you decide in a day, there is planning that comes with it. Nevertheless, you’d be surprised at the number of people we have encountered on a daily basis who are more impulsive in their buying behaviour. By doing this, many people don’t plan for a mortgage ahead of time.

A First Time Buyer in Manchester might decide to jump into such a big financial commitment like purchasing a property if they are buying from a family member who is now moving home. Another reason might be as simple as finding a property with a ‘For Sale’ sign that has piqued their interest despite having no intention of buying in the past. You might already have your own rented property and your landlord is deciding to sell it and giving you first refusal.

The issues with not planning for a mortgage

Potential errors can occur because buyers have not planned in advance for a mortgage. Below are just a few hurdles we find customers are regularly faced with:

  • Not enough time to save money which means less deposit
  • Not seeing your credit score as important in the past leading to having a poor credit score
  • Conducting your bank account poorly
  • Your lastest accounts not looking their best as a self employed applicant

Deposits

When it comes to saving up your deposit for a mortgage, we understand that it can be challenging, in particular, if you are renting at the moment from a local council or private landlord. Large outgoings and essential purchases coming out each month can limit what you save, even if you have a constant income.

With the help of Gifted Deposit, family members have the chance to provide financial support. This can be a common option with First Time Buyers in Manchester, with a large number of buyers’ family members trying to help whenever they can. If this is something you are looking to do, it’s best to give the family member who’s gifting the deposit some notice in order for them to get their own finances sorted.

Credit Rating

Obtaining an up to date credit report is pretty simple. There is a range of credit reference agencies that you may be aware of, however, we personally would recommend Check My File. This is because they have the ability to collate the data from these sources into one, for you to compare.

When you have a copy of your report, you can send it to a Mortgage Advisor in Manchester to look over. Our team see these reports on a daily basis and have a good understanding of the sort of things lenders like to see, as well as identifying what they do not want to see.

Bank Accounts

Lenders look at your bank account to identify any unnecessary bank charges or gambling transactions. If you do have any on your statements, you need a good explanation of the goings-on with your account, as well as how you are going to resolve this going forward, should any issues arise again.

Self Employed

When it comes to self-employed applicants, we know that Accountants try to minimise tax liability for their customers. With this in mind, if your year-end has come around, then you can submit another set of accounts earlier than you might usually do. This can be beneficial if you feel your business has grown in the last 12 months. In some cases, lenders might disregard the initial years’ figures if the up to date ones are more favourable.

Regardless of your circumstances, if you feel your situation applies to any of the issues above, we are able to help. Here at Manchestermoneyman, we love a challenge, so don’t hesitate to Get In Touch!

What is a Gifted Deposit in Manchester?

First Time Buyer Mortgage Advice in Manchester

When you are looking at buying your first ever home, it can be challenging trying to figure out the cost of everything. From the cost of the property, mortgage arrangement fees and deposit size, to name but a few, there’s a lot to consider.

The latter is the primary focus of our topic here. For any purchase and subsequent mortgage, you will need to put down a deposit on the property. Be it a gifted deposit, your savings or a Help to Buy Scheme, there are many different ways to make up that deposit.

You can use any of the methods to achieve this, so long as you are able to evidence where that deposit came from, as though it will only be a portion of the much larger property purchase price, it will still be a considerable amount of money being put down.

We find that gifted deposits are typically the most popular forms of deposit for a first time buyer in Manchester. If you’re buying a property for the first time, this may be crucial in helping you to own your own home.

Gifted Deposit Mortgage Advice in Manchester

What is a gifted deposit?

A gifted deposit is a lump sum of funds that is given to you as a gift, allowing you to cover all of or make up some of your mortgage deposit. Gifted deposits are not loans, they’re strictly gifts that will not be repaid at a later date.

Your donors will need to sign an agreement confirming that this is to be the case, before you can proceed.

How can gifted deposits help?

Gifted deposits are useful when you’re struggling to save up for the deposit on your mortgage. You may be able to afford the monthly repayments with your income, but saving up a bulk of income for a deposit can be quite tricky.

If you receive a gifted deposit from somebody, combining it with some of your savings can help to raise your deposit even further, possibly allowing you to gain much better interest rates.

This minimum required deposit is typically around 5%, though some lenders may want to see 10-15%. If this has been gifted and you can make up a further 5% of your own, you could be going to the mortgage lender with a 15-20% deposit, which would be incredibly beneficial.

Lower interest rates are useful if you happen to be working on a lower salary.

Who can gift the deposit?

Generally speaking it will be the mortgage applicant’s parents that gift the deposit. This can be both birth and adopted parents, as well as carers and legal guardians in some cases. You will also sometimes find that friends can also gift this.

Depending on the mortgage lender that you are applying for a mortgage with, there may be some limitations to who can and who can’t gift you the deposit for purchasing a property.

If you already know who is gifting you the deposit prior to making any applications, it is worth speaking with a qualified mortgage broker in Manchester. They will be able to match up your circumstances with an appropriate mortgage lender and product.

Do your parents know you need help?

As a team of expert mortgage advisors in Manchester, we regularly find that not only are applicants hardly aware that a gifted deposit is an option, they don’t consider that their parents may actually be able to help.

Contrary to what you may believe, we find that most parents are more than willing to help their children finally get onto the property ladder and become a homeowner. It certainly doesn’t hurt to ask!

Many consider the concept of taking out a mortgage to be much better than renting a property, as you could be paying much less per month than you would be paying to a landlord.

A gifted deposit can sometimes come from inheritance, though this isn’t always later in life. Parents have been known to gift much earlier on in life if they already have enough in savings or have done equity release in Manchester.

Gifted Deposit vs Loans

Most mortgage lenders will dislike the idea of accepting loans as your deposit, as you’re essentially paying off two sets of large loans and are borrowing 100% of your mortgage.

You won’t be paying off your gifted deposit as this will only be a gift to you and you will not owe anyone any money, as per the agreement signed by your donor.

Is there a maximum or minimum gifted amount?

There is no limit to the amount that you are able to receive as a gifted deposit. We see that most people gift between the 3-5% mark, sometimes more.

Who can benefit from a gifted deposit?

If you are a first time buyer in Manchester or moving home in Manchester, a gifted deposit will be of a great benefit to you during your home buying process.

It can also be useful when in conjunction with a Help to Buy in Manchester, as the required 5% deposit, depending on the lender, can also be paid via gifted deposit!

What proof is required?

You will need to provide an audit trail of where you got your gifted deposit from and where the person who gifted it to you built up the funds from.

Proving your gifted deposit is also much easier if you leave the proceeding within the gifter’s account, as later into your application process, your mortgage advisor in Manchester will help you evidence this as a gifted deposit.

10 Factors to Help you Decide Where to Live in Manchester

Analysing Common Home Buyer Needs

Before you start with anything else, probably the main factor when moving home in or around the Manchester area, whether local or not, is what location do you have in mind.

Generally though you’ll have to think about more than just where you want to live, but what the area is like, what is there and what do you want to prioritise when looking for your dream home.

To help you get a better idea of the sort of place you’d like to live, we have compiled a detailed list of the different types of factors we have heard that home buyers look at when looking to find their new home in Manchester.

1. Busy city or relaxing countryside?

It is important to come up with an idea of the type of area you would like to make your residence in, as this is somewhere you are going to be living in for a good while, maybe even making it a family home.

If you’re the sort who feels a lot more comfortable surrounded by a thriving urban scene, the city life is definitely your best choice. If you have a preference for the quiet life, living in the countryside might be more your cup of tea.

You’ll find pros and cons to either choice, so give it a lot of careful thought before you get your heart set on a potential new home that could be based in an area that you might not enjoy.

2. Transport Links

The transport links to and from your potential new home base are important factors to pay attention to.

Make sure whether it’s to go out and socialise with friends or family, to make your way to work, to go shopping for essentials or anything else you like to do in your spare time, that your home has necessary transport links.

Also do some research as to how much each of these is going to cost you when travelling. If you drive your own vehicle, how long will it take for you to reach different places? How much will fuel be? Are there any nearby fuel stations?

3. Schools & Education

For home buyers who have some children, you should take a look at what schools are nearby. Find out what the local catchment areas are, so you can get a rough idea of what the schools are like. School league tables are handy learning tools.

If you don’t have any children now, whether you are planning for the future or have no plans at all, it may be beneficial to at least look it up, just to future proof yourself.

4. Nearby Facilities – What You Need Vs What You Want

There may be certain facilities that you would like to have close to you when you are planning on a place to potentially live. We would suggest writing a list and separating those that you want from those that are essential.

An example of this would be if you really want to have a gym nearby but doing so could mean that you have to live in an area without the shops you need within a reachable distance.

You probably need the shops more for your general living, so that might be something to prioritise, whilst leaving the gym as an added bonus if you can make it work.

5. Friends and Family

The distance between where you might be living and where your family and friends currently live can have an influence on where you move to. Many prefer keeping them close by, so they have that support network if they need it.

On the other hand, some prefer to keep to themselves with their loved ones at a distance, prioritising peace and quiet over going out and socialising with people on the regular.

6. Is the property good value for money?

When making purchases, we all would like to know that we’re getting good value for money. Determining this for your home will depend on the area that you’re looking to live in.

It may be a better option for you to look for a cheaper property to start out with, though this might mean compromising various features or nearby facilities that you would’ve preferred to have had.

7. What is the community like?

The local community can impact your home living experience quite a bit.

As established, some prefer the quiet life. This might entail having a few residents nearby who keep to themselves. Others like to have a thriving busy community, generally where everyone is known and communicates regularly.

Have a word with your estate agent and find out what the area is like. Community Facebook pages or locally run websites tend to be quite common these days, so they’re worth looking up to get a rough feel for the local vibe.

8. Career Changes

Some home buyers may be moving because of a new job or career plan. This is something we’ve heard from customers a lot and is a very big factor. You should review the distance between your new home and workplace.

If you’re going to be working in a home office and only visiting the office sporadically, would you be okay with living a bit further out? What is the space like within the property? Is there even the scope for a home office?

For those who will be job hunting once they have already moved, do some research on the companies in the local area and compile a list of the main employers to potentially apply with.

9. Property Type

You will find a lot of different property types available to you across the open property market, with these varying depending on where you’re looking.

Some prefer end-terrace properties with a garden to enjoy, whilst others prefer a modern flat or studio apartment.

Make sure you have a good look at all the options available to you, undertake some property viewings and get a good idea of the type of property you would prefer to live in.

10. Local Developments

Any proposed local investment would probably be helpful to find information on, especially if you’re looking to build a life within that home and stay there for quite a while.

Online research will be the best port of call when looking to find any future investments. It’s important to consider whether these will be a benefit or a detriment to your lifestyle.

To explain further, those who might have a preference for quiet country life might find their dream scenario turned into a nightmare if a big new housing development is planned within close proximity.

Moving Home Mortgage Advice in Manchester

Hopefully through reading our list you’ll now be better equipped for finding a place to call your home.

When the time comes for making offers on property and getting yourself a mortgage, get yourself booked in for a free mortgage appointment. We would be happy to help!

We have a dedicated team of mortgage advisors available from early until late, all throughout the working week and weekend, subject to availability.

No matter if you need some assistance with a first time buyer mortgage in Manchester or are moving home in Manchester, we can’t wait to hear from you and help you kickstart your mortgage journey.

Buying a Property with Cash – Better than a Mortgage?

When it comes to buying a property, you can go down one of two routes: you can either buy it upfront or take out a mortgage to pay off the property over time.

Both routes will be costly, but of course, you’d expect that when buying a house! Undoubtedly, paying upfront will cost you a lot more money at the time of purchase, however, getting a mortgage will cost you more money in the long run.

It’s likely that you’re going to have to pay the price that’s on the tag when purchasing with cash, whereas a mortgage will allow you to take out a loan and pay it back over a long period of time.

Why should I buy with cash if I can?

If you can afford it, buying a property upfront is a great investment. It doesn’t matter whether you’re planning to live in the property or use it as a buy to let in Manchester, getting yourself on the property ladder can put you in a great financial position in years to come.

Reliability

In the majority of situations, you’ll have the upper hand over someone who’s taking out a mortgage if you’re buying with cash. One of these reasons is down to your reliability.

From the viewpoint of a seller, if a cash buyer approaches you and makes an offer, it’s hard to say no. One reason behind this is that it would be a quick sale. There is no chance of your buyer getting caught up in the property chain as they have the money there and then.

‘Getting stuck in the property chain’ is when a property is being sold and the buyer cannot move in yet as they are waiting for their home to be sold. As you can imagine, this chain can go on and on.

Also, a cash buyer will not have to pass any affordability checks, as they already have everything in place. They can proceed right away!

Easy and fast process

Moving home in Manchester can already be stressful enough, especially when the process starts to slow down. A cash buyer can only speed up the process, not slow it down. The mortgage process can sometimes bring trip-ups and hurdles along with it, particularly in specialist situations.

Equally, buyers taking out a mortgage can speed up the process too if they’re prepared. This means having an agreement in principle in place, being credit checked and had an affordability assessment carried out and early as possible.

A mortgage broker in Manchester like us can help you with this. In a lot of cases, we see mortgage applicants shoot through the moving home process just as fast as a cash buyer would.

You don’t owe anything

When you take out a mortgage, you are taking out a loan. This loan is a huge financial commitment; it’s likely to last well over 20-25+ years. With a cash offer, you are avoiding owing money back.

You also won’t receive interest on your offer, as you’re paying with cash. If you had a mortgage, the interest would possibly push up your monthly payments.

Why should I get a mortgage and save my cash?

When you don’t have the funds in place to make a cash offer, your next choice is to take out a mortgage.

Cheaper in the short term

Instead of using your life savings on a property purchase, you have the choice to save that money and take out a mortgage. Both options result in the same thing! And, depending on your credit score, obtaining a mortgage may only require 5% of the property’s value as a deposit.

You’ll pay back a mortgage in monthly instalments. This allows you to pay back a bit at a time and in some cases overpay if you want to. Monthly costs will vary depending on your interest rate, mortgage product and the property that you’re purchasing.

Something wrong with the house

If you’re viewing properties and the listing says “cash buyers only”, you should be careful with this property. It’s quite likely that the property has something wrong with it. If it is the case that the property is damaged/need repairs, you probably won’t be able to get a mortgage on the property anyway. You could be dodging a bullet if you are choosing a mortgage over cash here, as a cash buyer may be buying into a bad property.

Despite not having to, we’d always recommend that you get a property survey carried out on the property you’re planning to buy. This applies to both cash buyers and mortgage applicants.

A mortgage advisor in Manchester by your side

Diving into a purchase blind could put you at a slight disadvantage to someone who has a mortgage advisor in Manchester by their side. Your advisor will make things as simple as possible when helping you through your moving home process.

We aim to deliver a fast and friendly advice service. A mortgage broker in Manchester could be the thing that you need to get you through your moving home process. Get in touch with our team for a free consultation.

What do Lenders Look for When Assessing my Bank Statements?

Why does a lender need my bank statements, and how do I obtain them? 

A lender will need to see your bank statements to learn more about your spending habits. They will analyse your bank statements to determine whether or not you are the sort of person who can manage your money responsibly and can afford to keep up regular mortgage payments.   

After all, a mortgage is likely the most significant financial commitment you will ever make in your life and is not something to be taken lightly. 

You have several ways to obtain your bank statements either by post, over the counter at your local bank or print from your online banking platform. 

What do lenders look for on bank statements | MoneymanTV

What will lenders be looking for on my bank statement? 

As stated above, they need to know you’re responsible with your money. One of the things they’ll be looking at is if there are any overdrafts. Using this often is not necessarily a bad thing; regularly exceeding the overdraft limit is not ideal. 

More factors to be careful with are potential returned direct debits, showing a lender you are not consistently reliable, and not disclosing loans at the application stage won’t look good if the lender finds any outgoings on your bank statements that you failed to mention.  

Another awareness is if you have missed payments for personal loans and things such as credit cards. What will impress the lender is demonstrating that you handle your money well and meet payment deadlines. 

Will gambling affect my chances of getting a mortgage? 

If you have a history of gambling, the occasional bit of fun is harmless, but if you are frequently wagering significant amounts of money, whether you’re making it back or not, the lender will consider whether or not these transactions are reasonable and responsible.   

For more information, check out our article “Do Gambling Transactions Look Bad on My Bank Statements?”  

What can I do to show the lender I am reliable?  

The answer is simple – be sensible. Typically, a bank would ask for up to three months of your most recent bank statements. These will show your salary credits and all your regular bill payments.  

Ensure that your bank account is conducted in a manner that shows you are reliable and manage your finances well.   
 

The first thing we’d suggest is that if you are a frequent big spender, you take a break for some time. During this break, you will find yourself in a better financial state and could improve your mental health. 

If you need to save some extra money, some choose to cook at home instead of takeaways, stop treating yourself to unnecessary large purchases, and limit your subscriptions; this will help free up additional cash to ensure you can pay bills on time. 

This boils down to simply being sensible and planning with plenty of time ahead of what you’re looking to do. The further away you find yourself from bouts of debt and financial uncertainty, the better your chances will be with a lender.  

Speak to a Dedicated Mortgage Advisor in Manchester 

Whether you’re a first time buyer, moving home, or self-employed in Manchester, it’s always essential to keep on top of your finances.  

If you have a history of bad credit history and are unsure of what to do next, you can always enquire about specialist mortgage advice in Manchester by getting in touch with us today. We’ll advise as best as we can to help you through your mortgage journey. 

Do Gambling Transactions Look Bad on My Bank Statements?

Why does the lender need my bank statements? 

Regardless of your mortgage situation, you could be a first time buyer in Manchester, a home mover or looking to remortgage. Your lender will always want a copy of your bank statements.  

They will analyse your bank statements to determine whether or not you are the sort of person who can manage your money responsibly and can afford to keep up regular mortgage payments.  

It would help if you thought about your statements and what other elements of your banking say about you. One trend that has come into highlight is the question of gambling transactions on bank statements. 

What do lenders look for on bank statements | MoneymanTV

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

There is nothing illegal about having an annual flutter on the grand national or regular use on licensed gambling sites. However, even the bookmakers and gambling advertisers urge customers to ‘gamble responsibly’.  

This is the same message to bear in mind when it comes to applying for a mortgage. It is not the lenders’ job to tell you how to live your life, how you spend your money or preach on moral rights and wrongs of gambling. They do however have a duty to lend responsibly. 

If lenders need to prove to the regulators that they are making careful lending decisions, it isn’t entirely unreasonable to expect the people they lend to be responsible for their finances.  

Will gambling affect my chances of getting a mortgage?  

As we mentioned above, just because you have the odd gambling transaction on your bank statements doesn’t mean your mortgage application will get declined. The lender will consider whether or not these transactions are reasonable and responsible.  

Your lender will mainly look at the frequency of transactions and the overall impact on the account balance. If these gambling transactions are small and infrequent, making no significant impact on your overall regular credit bank balance, then they are likely to be overlooked. 

On the contrary, if you bet most weeks and are constantly overdrawn, the lender is likely to view this as irresponsible and could decline your application. 

What will lenders be looking for on my bank statement? 

Remember, lenders are financial institutions that either directly or as part of a wider group often provide various products, such as current accounts, overdraft facilities, credit cards and personal loans. The way in which you conduct these accounts will impact your ability to obtain a mortgage. 

For example, having an overdraft facility and occasionally using it is not inherently wrong; regularly exceeding the overdraft limit is not ideal.  

Your lenders will look for excess overdraft fees or returned direct debits because these would generally show that the account is not being well conducted. 

Other things to look out for include credit transactions from pay-day loan companies; “undisclosed” loan repayments. They would look out for any missed payments and consider how much of a typical month is spent overdrawn. 

What can I do to show the lender I am reliable? 

The answer is simple – be sensible and, if possible, plan ahead. Typically, a bank would ask for up to three months of your most recent bank statements. These will show your salary credits and all your regular bill payments. Making sure that your bank account is conducted in a manner that shows you are reliable and manage your finances well.  

If you are a regular gambler, maybe think about taking a break or setting limits, there are features on most gambling apps that can help with this. As well as helping your mortgage application, this may also be good for mental health. 

Get in touch with a mortgage broker in Manchester 

If you are a first-time buyer, home mover or looking to remortgage in Manchester but need some support or guidance, you should get some specialist advice from a mortgage advisor in Manchester.  

Our advisors can guide you through the whole mortgage process and help you with your application and get you on track so that lenders will be impressed. 

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