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Leasehold Houses in Manchester

What is a Leasehold House?

After the government introduced the Help-to-Buy Scheme, many home builders opted to start selling newly built houses on a leasehold basis instead of a freehold one. Some people were wondering, though, what exactly is a leasehold house?

In simple terms, you own the property, but the freeholder owns the land on which the property’s built. These leases tend to span hundreds of years, usually beyond the lifetime of the original holder of the lease.

What’s The Catch With Leasehold Houses?

The catch with Leaseholds is that you only own the property and not the land. Meaning you may have to pay ground rent, various service fees, and at the end of your term, if the lease hasn’t been extended, the freeholder can choose to back control of the property if left unchallenged.

Regarding the end of the lease and the service charges, you should always have the right to extend your lease if that’s what you would like to do and challenge any fee changes, though, for more clarity, we consider speaking to a Conveyancing Solicitor, as it’s their job to cover the legalities of properties.

Some of the fees can fluctuate, too, as and when the leasehold management company wants to change it, so it’s always worth making sure a Conveyancing Solicitor reads over your agreement carefully and precisely to ensure it is fair and not too much.

Do I own the property? – Can I still obtain a Mortgage on it?

You own the property for the length of your lease term. As explained before, the freeholder may be able to take their property back at the end of a period if you don’t renew, but if your term gets taken out over the course of a few hundred years, that property is pretty much yours for the rest of your life, unless of course, you sell it.

One area that may require some consideration ahead of time is planning to make any home extensions or improvements. Whilst this may not always be the case with every freeholder, the majority will want you to seek permission for any changes on the land they own.

The process of obtaining a mortgage on a leasehold is an interesting one. You will find that not all lenders will accept this kind of deal. However, those who do usually will only get it if your term is at least 60 years. The reason for this is down to their ability to resale in the event of repossession.

If your term is shorter than 60 years, you most likely will have to discuss the possibilities of renewing the lease on the property with the freeholder, along with a legal representative.

Land-Banking Freeholders

There has been a particular issue with freeholding for some time and still ongoing, a practice known in the industry as “land-banking”. Referring to some freeholders holding onto land, whether they have a finished property or not and despite the need for more homes in the UK, purely because the market has changed and they’re waiting for a chance to make more money.

As you would expect, this kind of practice is not precisely well-received across the nation, many seeing it as unfair and leading people to request that the government abolish leasehold altogether, as a means of future-proofing against such a thing.

Along with the service fees involved, the need for renovation permissions and ground rent, it’s no surprise that leasehold housing can often seem like a bad deal; however, if handled correctly, it could still be an option that works out for you and your circumstances.

Get in Touch For Leasehold Mortgage Advice

If you are looking at leasehold houses and debating whether to buy one, you should prioritise speaking to your Conveyancing Solicitor regarding the lease and other legalities involved.

It’s straightforward to get carried away with the joys you may feel when buying a home, but you also need to realise that this is a significant investment decision that you need to put much time into thinking about if you would like to get started on a leasehold house mortgage, please Get in Touch.

Our 10 Step Mortgage & Home Buying Guide for First-Time Buyers

In this article we have put together a list of the 10 steps involved in the mortgage process for First-Time Buyers in Manchester, so that you can be as prepared as possible ahead of your very own mortgage journey.

There are 10 steps to the process of home buying and obtaining a mortgage. These are as follows;

First Step: Get in Touch for Your Free Mortgage Consultation 

You’ve decided to take the big leap and purchase a home, taking out a mortgage as a First-Time Buyer in Manchester. Without a doubt, this is going to be one of the biggest financial decisions you ever make in your life. Upon this realisation it can be a little jarring, especially when you have no experience in this area at all.

Here is where a dedicated mortgage broker in Manchester can jump in and help you along the process. The goal of our team is to take the stress away from you, working hard to ensure you come out the other side with a mortgage and your first home, happy and deal that works in your favour.

Once you Get in Touch with us, we’ll book you in for a free initial mortgage consultation with one of our very experienced and trusted mortgage advisors in Manchester. At this point, we’ll take your details and look at what you’re planning to do, before starting off your mortgage process.  

Second Step: Mortgage Affordability Assessment – How are you doing Financially? 

Something your advisor will be able to run through in your free mortgage consultation, is a Mortgage Affordability Assessment. This is a quick process where your dedicated mortgage advisor will run through your monthly income and regular expenditures (looking at what you spend your money on), to determine whether or not you have the financial means to afford the monthly repayments of the mortgage amount you’re looking to borrow from a lender.

It is very important for us to do this before putting you forward with a lender, as we need to be confident that you can definitely afford your repayments. This helps to avoid the risk of arrears and any future repossessions that could occur, something the lender will really want to try and avoid themselves if it can be helped.

A Mortgage Affordability Assessment will also usually be undertaken by a lender, so the initial checks we undertake will help save the time of the lender, ourselves and more importantly you, from an application that may be declined later down the line if you fail on affordability.

Third Step: Obtaining a Mortgage Agreement in Principle

Following on from this, the next step in your consultation will be to obtain you a document called a Mortgage Agreement in Principle. If you’ve been doing any research on mortgages prior to receiving First-Time Buyer Mortgage Advice in Manchester, you may have seen this under some different names. These usually include the names ‘Decision in Principle’, ‘Mortgage in Principle’, as well as the abbreviations ‘DIP’ & ‘AIP’. The only difference between them is the name. Other than that, they all do the same thing.

The reason you need a Mortgage Agreement in Principle is to provide a record that you have passed a lenders initial credit scoring system, either via a hard credit search (which leaves a footprint on your credit file) or a soft credit search (which does not leave a footprint on your credit file).

There is still no guarantee you will be accepted on a mortgage, but is a step you must take on your way towards your end goal. Another benefit to you having this document, is that it will show the seller of a property that you are very serious, possibly creating room for price negotiations with them when it comes to making an offer.

A typical AIP will usually last anywhere between 30-90 days, and once it has expired, can be easily renewed. Our team can usually get one of these turned around for you within 24 hours of your initial consultation with an advisor.

Fourth Step: Finding the Right Solicitor 

After you have obtained your Agreement in Principle, you will need to find yourself a Conveyancer to help you with the legal proceedings of the homebuying process. The term Conveyancing is given name for the transfer of legal ownership of property between parties, whether you’re the buyer or seller.

Your Conveyancing Solicitor will be able to handle contracts, give any necessary legal advice, conduct local council/authority searches, help sort out Land Registry and lastly transfer the funds you have acquired in order to pay for the property you wish to purchase. As is surely clear from the tasks involved here, this is a vital role in your process, so you must make sure you carefully make your choice.

Another point that should be made here, is that Licensed Conveyancers are property specialists and can’t deal with complicated legal issues, whereas more general Solicitors offer a full range of services so can often seem more costly. Whilst we do not offer these services ourselves in-house, we have a list of trusted companies that we will gladly be able to refer you out to, should you ask for this.

Fifth Step: Making an Offer on a Property 

You’ve now spoken to a fast & friendly Mortgage Broker in Manchester, passed the Mortgage Affordability Assessment, obtained an Agreement in Principle and found yourself a Conveyancing Solicitor to help process the legal side of your home buying journey. This means you’re halfway there! Your next step is to make an offer on a property!

As touched upon previously, with an Agreement in Principle in hand, you will be in a much better place to negotiate with the seller regarding price. Make sure not to “low-ball” the seller with an insulting offer, but don’t be afraid to ask for a lower price. Knowing you have an AIP with you, the seller will be more likely to accept your offer than someone who is willing to pay the asking price but hasn’t even begun to prepare themself.

The worst thing that can happen is if the seller says no, but it’s at that point you can work out a more reasonable offer for both of you or walk away and find yourself another property with a better suited price. Once you’ve had an offer accepted, it’s back to your mortgage advisor and onto the last leg of your mortgage journey.

Sixth Step: Submit Your Documents 

Onto an important step, in submitting the required documents to proceed with your mortgage. As you might have expected when such a large amount of money is involved, a mortgage lender will not just lend to anyone who asks for a mortgage. They’ve done this in the past and things didn’t work out too well.

The mortgage lender will need you to provide various documentation to prove that you are the right person, the amount you earn from your current career, where your current residence is and how well you conduct your finances monthly. If you’re obtaining a joint mortgage, they will require this same documentation from each parties involved.

The types of documents you will need to submit, include; proof of identification, proof of address, the last 3 months’ of your pay slips and latest P60 (employed), the last 3 years’ proof of earnings and Tax Year Overviews (self-employed in Manchester), proof of any income such as state benefits or maintenance, proof of deposit and the last 90 days of your personal bank statements. 

Seventh Step: We’ll Progress Your Mortgage Application 

With your mortgage agreed in principle, and having an offer accepted, we can now proceed to submit your full mortgage application. With everything prepared and checked by your hard working Mortgage Advisor in Manchester & their team of Mortgage Administrators, we are ready to submit an application to the lender in hopes of getting you a mortgage.

Your advisor will send off all the collected evidential documentation for this, and then all that is left is to wait for them to respond with either an accepted application or a declined one. Whilst there is no given time frame, our Mortgage Administration team will be able to chase the lender for an answer on this for you, until it has been made clear.

Eighth Step: Property Valuation / Survey 

In-between your mortgage application and being offered a mortgage, the lender will require that your property have a valuation survey taken out on this. These are usually carried out by accredited companies nominated by the lender (someone whom the lender will trust).

The reason they do this is to understand the true value of the property, versus what you’ve agreed to pay for it with the seller. If you’re paying above its actual market value, the lender may be less willing to accept your offer. This is because they will most likely be out of pocket and unable to make back the full borrowed amount, if you happen to fall into arrears at any point. This is usually referred to as a ‘Down Valuation’.

There are various types available when it comes to surveys, with variances in the prices of each of these. Some will just want to check how much the property is worth, whereas some will also provide information on any structural concerns, as well as possible repairs that you may need to lookout for in the future. Your Mortgage Advisor in Manchester will be able to help you out, choosing the right survey for you.  

Ninth Step: Receiving Your Mortgage Offer 

Now it is time for the moment you’ve been waiting for since Step One. Your lender has checked over your case and performed an assessment of all the evidencing documentation. Once this is done, they will present you with your Mortgage Offer.

Our team of friendly Mortgage Advisors and Administrators in Manchester, that you’ve no doubt become friendly with over the course of your process, will check over the offer on your behalf to ensure everything is correct and right for you. Then after your mortgage offer has been received, it’s down to your Conveyancing Solicitor to take your purchase from that point, through to completion. 

Tenth Step: Completing The Process 

Congratulations, you’ve now officially gone from First-Time Buyer in Manchester to a full fledged First-Time Homeowner in Manchester. With any prior stress and anxieties now firmly behind you, we hope you’re happy and ready to begin your new life, in your new home.

All you need to do is go get your keys and begin the process of moving in! We hope you received a fast & friendly Mortgage Advice service in Manchester and enjoyed speaking to our team along the way. If you have chosen a fixed rate mortgage, at the end of your term, we will Get in Touch again to help out with your Remortgage! 

Armed Forces Help to Buy Scheme in Manchester

Help to Buy Mortgage Advice in Manchester

Armed Forces Help to Buy Scheme | MoneymanTV

Good news for military personnel, according to Army Families Federation Defence Secretary, Ben Wallace. There has been an extension on the current Help to Buy scheme that was designed to help military personnel get onto the property ladder.

Originally introduced back in 2014, this £200 million scheme was intended to offer a boost to anyone from the forces who needed help buying a home. Though it was meant to end in December 2019, to thank them for their commitment to their service and dedication to this country, the government has extended this until the end of 2022.

How does this help to buy work?  

People who have served in the military have access to borrow a deposit of up to half their annual salary (a maximum of £25,000), without any interest applied. This can be used to either purchase their first home or to move into a new family home.

The best part is that you don’t need any current savings to get yourself onto the property ladder. Some of the money raised from the loan you’ll receive via the scheme can be used to put towards your deposit or other costs, such as: 

  • Stamp duty 
  • Estate agent fees 
  • Solicitors fees 

In fantastic news for forces personnel, the majority of lender will accept the loan towards the deposit for a new home. More relaxed than some other schemes, the Forces Help to Buy loan can be paid back over a period of 10 years, so you don’t have to feel as rushed.

Whether you thought you had a chance or not, if you have served your country and can meet the right criteria (length served, service term left and medical categories), you will be eligible to purchase your home using this scheme.

Click here to read through further details from the government.

How a mortgage advisor in Manchester may be able to help

Our experienced mortgage advice team in Manchester has your back from day one. Right from the beginning of your process when you call up, right through until completion and beyond, your dedicated advisor will make sure you are taken care of, ensuring that you end up with the most appropriate result for your individual circumstances.

As a company that prides itself on a fast and friendly customer experience that is stress-free, contact us today and see how we might be able to help you achieve your home owning dreams. 

Please note, the Forces Help to Buy is not the same as the standard UK Help to Buy scheme.

Help to Buy & Equity Loan Remortgage Advice in Manchester

Help to Buy Mortgage Advice in Manchester

Market Update: Help to Buy Equity Loan & Shared Ownership

A Help to Buy introduction

In 2013, during the aftermath of the credit crunch, the UK Government introduced a scheme in aid to try and get the property market kickstarted again. This scheme was called Help to Buy; its mission was to assist First Time Buyers in Manchester take a step up the property ladder.

Confidence crept back into the market once Help to Buy was introduced, however, some home owners were still left a little wary. Even lenders were still being cautious with who they lent to and how much they gave out.

There are multiple different Help to buy schemes, some have stuck around since 2013, others have not. One of most popular Help to Buy schemes is called the Help to Buy Equity Loan, you can still access this scheme now.

Help to Buy Equity Loan

If you are a First Time Buyer in Manchester, the Help to Buy Equity Loan scheme could be a great way to get yourself onto the property ladder. First of all, to access the Equity Loan scheme, you must be applying for a mortgage for on a newly built property and you must be a First Time Buyer. You used to able to access the scheme as a home mover, however this changed as of December 2020.

At application point, you must have a deposit of 5% or more and then the Government will loan you up to 20% to make up the total of a 25% deposit. For example, if you have a 10% deposit, the Government will loan you 15%; you have 7% they loan 18% etc.

Help-To-Buy | Manchestermoneyman
Help To Buy Equity Loan Explained | Manchestermoneyman

This Equity Loan is a loan remember, it’s not free money. This means that the loan will have to be paid back on top of your 75% mortgage. You get 5 years to pay back this loan interest-free, after these 5 years, you will start gaining interest on the remaining amount which starts at 1.75%.

Remortgage for your Equity Loan Repayment

You may have already accessed the scheme and have reached the 5 year period for your interest-free loan. If you haven’t paid off your Equity Loan, you may find the help from an expert Help to Buy Mortgage Advisor in Manchester extremely useful as you may need to reorganise your repayments.

Through Remortgaging in Manchester, it may be possible to combine your remaining mortgage amount and your equity loan amount into one set of monthly repayments.

Again, if you are struggling to meet your repayments, it may be a good idea to speak to a professional Remortgage and Help to Buy expert in Manchester today.

Shared Ownership

The Help to Buy Shared Ownership was brought into place to allow homebuyers to purchase a percentage of a property and then pay the rest back with rent. The share percentage of the home will usually be anywhere between 25-75%, whatever percentage that remains on the property is owned by the housing association.

This means that you share the property and you don’t own all of it. The percentage of the property that you own can be increased at a later date. As a Mortgage Broker in Manchester, we usually find that people increase their share in the home once they have settled in or when they have a little more money.

Help to Buy Mortgage Advice in Manchester

Are you in need of Help to Buy Mortgage Advisor in Manchester? If so, we are here to help, we have been helping struggling customers secure Help to Buy mortgages for many years now and know exactly how to guide you through the process in a fast and friendly way.

We are available 7 days a week, so don’t hesitate to get in touch with us for expert Help to Buy Mortgage Advice in Manchester.

The Importance of Changing Your Address

Mortgage Advice in Manchester

When it comes to applying for a mortgage, you need to be careful and watch out for your credit score. The higher your credit score, the more likely that it is that you will be accepted by a lender for a mortgage. There are many different things that can have an effect on your credit score.

One of these, is the fewer addresses you have on your record the better. People are starting to go about this the wrong way though.

More and more, we see applicants who have moved out of their parents address into rented accommodation, but are still leaving their bank statements, credit card and electoral roll information registered to their parents address.

For some reason, people think that it is a good idea and it could help their credit score, however, it can actually damage your credit score. Almost without fail, if you have moved to a new address, there will be some record of this on your credit report, whether you change your details or not.

Things as simple as a delivery address when you have ordered something online or a car/home insurance search can appear on your credit report.

Check before you apply

Before you perform a credit search and apply for a mortgage, you have to make sure that, to your knowledge, nothing will affect your credit score. You will need to get all of your accounts (credit cards / current accounts) and electoral roll are all changed over to your current residential address.

This only really applies to you if you have already moved out of your parents home, as when you are moving out to get a mortgage in a new home, you are able to change your details to the new property once you’ve moved in.

Regardless, all these things needs to be double and triple-checked when applying for a mortgage. We always find that people forget to update their address on their credit file and electoral roll. It can make a massive difference to you in your quest for a mortgage!

It’s important that you get the dates right too, knowing the exact date you moved into your rented property and the day that you left it. If you do happen to make a mistake with these dates, lenders may be under the impression you are living in two places at once.

Impress the lender

By making sure that every bit of information on your file is up-to-date, you are proving to the lender that you know what you are doing and you are taking the process seriously. It’s a more open and honest way of trying to apply for a mortgage. You want to impress them in any way you possibly can and this is a good way to start doing so.

If you still need a bit more help or just want some insight from a professional Mortgage Advisor in Manchester, feel free to get in touch for a free mortgage consultation.

We know that being a First Time Buyer in Manchester with no mortgage experience can be hard, which is where we are able to help. Get in touch with your friendly Mortgage Broker in Manchester today.

How Will Lockdown 2.0 Affect the Property Market?

Mortgage Advice in Manchester

On Saturday 31st October, the UK Prime Minister Boris Johnson announced that England would enter a second lockdown from Thursday 5th November, through until Wednesday 2nd December. This was done with the intention to decrease the spread of the coronavirus across the country, with additional restrictions in place.

Luckily for some, this lockdown is a little more relaxed than the first lockdown we experienced, allowing more industries and educational settings to remain open. The thing that initially concerned us the most, was what would happen to the property market. Thankfully, now that Lockdown 2.0 is underway, we can say that everything looks promising and the property market will remains open as normal.

Of course, there has been some minor changes to areas of the home buying process, most of them relating to social distancing. The property market is still standing strong though! Here is a look at some of the things you can still do:

  • View a property to buy or rent
  • Visit estate agents, letting agents, sales offices and show homes
  • Prepare a home to move into
  • Prepare a home for sale or rent
  • Move home

Lately we have received lots of mortgage questions from First Time Buyers and Home Movers in Manchester about the current national lockdown and how it affects the property market:

Can I move home in lockdown?

Unlike the start of the last lockdown when the rules were stricter, in this lockdown you are still able to move home if you need to. Home removal services, van hire, everything needed to move home will still be available for people to use.

As mentioned at the start, the process of moving home will have to be completed under the social distancing guidelines. This will be vital to follow if you are either viewing other people’s properties or taking house viewings on a regular basis.

Can I visit my estate agents?

Yes, the government are allowing you to visit your estate agent’s office. However, this is dependent on individual branches, as some estate agents have chosen to work form home and have closed their public office. You may have to check online to see whether they are open or not.

Nowadays a lot of people prefer to transact over the phone, so even if you can’t visit in person, you can rest assured that the staff are fully equipped to get the process started over the phone and even online.

We advise that you take your time if you are going through the process online, and make sure that you fully understand everything that is being communicated.

Can I continue with house viewings?

You can still continue with your house viewings, however, if your estate agent is offering a virtual house viewing, it is probably more recommended to try that. Most home buyers are shifting towards this new way of doing house viewings; as a Mortgage Broker in Manchester, we also expect that the number of virtual viewings will increase over the course of national lockdown.

Even though virtual viewings may be your safest option, we also understand that choosing your dream home is a really big decision for your life going, so if you want to view the property in person, this is understandable. Just remember to be careful!

Your estate agents will also check with the property owners that a property viewing is okay, so long as it is socially distanced property viewing. If they agree, then you can arrange a date and time. Depending on the time of day and the homeowner’s personal situation, they may go out somewhere so that there as few people in the household at one time as possible.

Can I put my property on the market?

The property market hasn’t been put on pause like it was earlier in 2020, so you are still able to go through the home selling process as normal. You will need to consider everything that comes with selling a property, including choosing an estate agent and a property valuation, getting pictures of the property taken and making it presentable for any viewers.

With the guidelines and restrictions in place, there may be some delay in certain areas of the process, though that should not put you off. Estate agents are very busy right now with enquiries and with all of the different measures in place, things that are normally easy to complete are taking a little longer than they would like.

Can I still use conveyancers?

Yes, conveyancing solicitors will remain open as normal. They will still be available to support the sale of your property. Much like estate agents, most solicitors are working from home and we advise that you be patient as due to the demand in the property market, things may not go as quickly as you’d normally hope for.

Can I take out a mortgage payment holiday during this lockdown?

As a dedicated Mortgage Broker in Manchester, this is a question that we have been asked quite a lot during the course of the pandemic. It was particularly asked by lots of homeowners during the first UK lockdown.

In this lockdown, even though it’s much shorter, you can take a mortgage payment holiday if it is really deemed necessary. We understand that there are many homeowners out there that need help meeting their mortgage payments. If this is your situation then taking one out could be a real lifeline for you and your home.

To find out more helpful information about mortgage payment holidays and whether you should take one out, check out our article on mortgage payment holidays.

If you took out a mortgage payment holiday during the first lockdown and are currently still on the scheme, you can extend your holiday further so that it comes to a total of six months holiday. However, if you have already had a six month payment holiday and you have already reached the six month limit and therefore unlikely that you will be able to utilise the scheme again going forward.

Catching up to speed

The property market is slowly catching up to speed and thankfully can continue marching on through this second lockdown. If you are wanting to start the mortgage/home buying process and would like help from someone with experience, it may be within your best interests to get professional Mortgage Advice in Manchester.

With all of the social distancing measures in place and the demand in the market, this could also make things a lot quicker for you. As an experienced Mortgage Broker in Manchester, we have a wealth of knowledge in helping customers achieve their mortgage dreams. We want the whole process to run as smoothly as your do; don’t hesitate to get in touch today and we will get you booked in with a mortgage advisor!

How to Improve Your Credit Score in Leeds

Way to improve your credit score | moneymanTV

The general rule of thumb, whether a first-time buyer, home mover, or budding Buy to Let landlord in Manchester, is the higher your score, the more likely you are to get accepted for a mortgage.

It is worth noting that lenders have an internal credit score that gets built on the information held on your credit report as well as information within your application. Every mortgage provider follows their credit scoring policy, so just because one high street bank declines you, it doesn’t necessarily follow that they will all say no.

When it comes to which credit reference agency to use, or which one will the lender use, unfortunately, they do not always divulge this information.

In any case, sometimes lenders chop and change between Experian, Equifax, and Call Credit. It is good practice when looking to obtain a mortgage to check multiple credit reference agencies. The reason for this is that information on one agency’s file may differ from that on another.

Top Tips to Improve your Credit Rating:

Stop Unnecessary Credit Searches

Until you have registered with one of the credit reference agencies to check your score, the first thing you need to do is stop applying for new items of credit. Be careful, something as simple as comparing car insurance on a price comparison website can register unwanted credit searches.

Are You on The Voters Roll?

Lenders will use the electoral roll to carry out identity checks, so this is a crucial step. Ensure that your names spelled correctly and you get registered at your current address, your credit file will show if you are registered or not, you can also check with your council.

Active Credit

Mortgage Lenders like to see some “active credit” so having a credit card that you use regularly and pay it off in full each month can help over time. However, bear in mind that taking out new credit could have a short-term negative impact. Don’t miss payments!

Don’t Run Close To Your Maximum Limit

Regularly running close to your limit on your credit card or going over the limit will harm your score. Using too much of your available credit will hurt your credit score.

Check Your Address History Gets Keyed Correctly

It is essential that you do not appear to be living in two places at once. In any case, this can happen when you incorrectly enter your dates in and dates out of previous addresses.

It’s worth spending some time double-checking the dates and making sure the formats of the addresses are consistent. However, this is tricky when you have lived in a flat/apartment.

Close Any Unused Credit Accounts

If you have any credit or store cards that you are not using you should cancel these. Please note again that this could have a short-term negative impact on your score.

The systems can’t tell whether it is you or the lender taking this action, but it helps in the long run. Also reduces the chances you’ll fall victim to fraud if they were ever to get stolen.

Check Your Account Addresses Are Correct

Ensure that all of your open accounts get registered at your current address and not a previous one.

Remove Any Previous Financial Links

Your ex-partners could affect yours if you hold joint accounts, a mortgage, or a loan. It is vital to inform the credit reference agencies that you are no longer associated and remove any links.

Love it or hate it credit scoring is here to stay. Also, it will have a significant bearing on whether you will qualify for the mortgage you need. It’s quicker and more consistent for lenders to rely on their systems than their human resources.

Having an up to date copy of your credit report to provide to your mortgage broker will help build up a full picture of your financial situation and help them recommend the most suitable mortgage for your circumstances.

Mortgage Advice in Manchester

How to Buy a Home in Manchester With a 5% Deposit | Mortgage Market Update 02/10/20

Update: How to Purchase a Property with a 5% Deposit! Help to Buy Equity Loan & Shared Ownership | MoneymanTV

The effects of the coronavirus have heavily hit the mortgage market and it’s still recovering. The whole economy has been affected; The impact has impacted everyone differently in some way or another.

At the moment, lenders are only offering 90% mortgages (10% deposit), which can prove quite expensive, particularly to First Time Buyers looking to purchase a property in Manchester.

There are ways, to get onto the property ladder with a 5% deposit. With our help, we thought that it would be within your best interests to explain to you how this can get achieved using the Help to Buy Equity Loan or the Shared Ownership scheme:

Help to Buy Equity Loan

With the Help to Buy Equity Loan, you can put down a deposit of 5% or more, and then the government will top up this percentage so that you have a total of a 25% deposit.

Whatever percentage that they loan you is the Equity Loan, which will also need to get paid off along with your mortgage. During the first 5 years of living in your house, this loan will be interest-free, however, if you don’t manage to pay it off within these five years, you will start receiving interest on it starting at 1.75%.

As you can see, it’s still possible to obtain a mortgage with a 5% deposit through the Help to Buy Equity Loan scheme. To qualify for the Help to Buy Equity Loan scheme, you need to know that:

  • You can only be buying a newly built property.
  • The maximum purchase price is £600,000.
  • You can only own this property.

You have to be buying the property for purely residential use only and not as a Buy to Let.

Do you fit the requirements?

If you think that the Help to Buy Equity Loan scheme is right for you? Then now would be the perfect time for you to start your Help to Buy mortgage journey. You have two options one is doing everything on your own, the other being approaching a Mortgage Broker in Manchester.

Getting Help to Buy Mortgage Advice in Manchester could take all of the stress that comes with mortgages off your back. An Advisor will walk you through the whole process and tell you precisely what is going on every step of the way.

Shared Ownership

The Shared Ownership scheme can also benefit you get onto the property ladder with a 5% deposit. This scheme lets you purchase a percentage of your mortgage and then pay the rest on rent.

Additionally, this percentage usually is anywhere between 25%-75%. As you only own part of the property, you share the property with the government.

Like the Help to Buy Equity Loan scheme, you have to qualify for the Shared Ownership scheme and meet specific requirements. Here we listed the rules that you will need to adhere to qualify:

  • You can’t have a household income of more than £80,000 per year
  • Can only access if you can’t get a mortgage any other way
  • You need a good credit history
  • You can only own this property

If you are struggling to obtain a standard mortgage, the Shared Ownership Scheme could be your best option. If you want Shared Ownership Mortgage Advice in Manchester, you should approach a Mortgage Broker.

They will tell you everything about the scheme and see if you qualify for it. Talking to a Mortgage Broker in Manchester could say to you exactly what you need.


Even though your options may be limited when trying to get a mortgage with a 5% deposit, these two schemes could be great options to consider. Both methods are still holding their weight in the mortgage market.

Whether it’s the Help to Buy Equity Loan scheme or the Shared Ownership scheme, we can help with both.

Firstly we will check if you qualify for a scheme and whether it will suit your personal and financial circumstances or not. If everything looks good, we can get your mortgage journey started.

Getting Mortgage Advice in Manchester could be within your best interests, especially in this day and age.

The mortgage market is up in the air at the moment, so getting advice will be extremely beneficial, especially if you are a First Time Buyer in Manchester. Feel free to get in touch so we can discuss your mortgage options.

Why Should I Use a Mortgage Broker in Manchester?

It is a no brainer why we think when going with a Mortgage Broker is beneficial and speaking to one of our Mortgage Advisors in Manchester, then going straight to a Mortgage Lender—saying that it’s still worth exploring your options. We find that most people use a Mortgage Broker in Manchester; however, in this article, we will explain the pros and cons of both paths.

A Mortgage Broker like us will likely charge a broker fee on top of the other costs, whereas the Mortgage Lenders do not require this payment, thus saving you money on that front.

The Lender offers exclusive direct deals. They do this to attract business from both consumers and brokers alike. In any case, these deals are sometimes available only via the Mortgage Broker and not the branch. Before 2014, your Mortgage Lender would be allowed to let any member of staff sway you towards a potential mortgage without any proper mortgage advice or consumer protection.

By 2014 this was thankfully banned, with only experienced Mortgage Advisors in Manchester allowed to provide Mortgage Advice and make recommendations for their products. However, this, of course, took some adjusting and customers could be left waiting for a month or maybe more, just for an initial appointment.

We still see today that sometimes this can always happen, which isn’t great when you’ve just had an offer accepted for a property. Because of issues like this, applications via Mortgage Brokers started to rise. We offer a same day service, aiming to put you through to a qualified Mortgage Advisor in Manchester either immediately or at the most within the same day.

Mortgage Advice in Manchester

Before the 2010s, it was much more challenging to compare possible mortgage deals. Fast forward to the present day and looking for such deals is significantly more comfortable, with everything just a Google search away. The difficulty now lies in finding a lender whose criteria and features can be personalised, based on your circumstances. It would help if you were wary though, that the deals with the lowest rates tend to carry high arrangement fees.

Another point to take note of its affordability. No matter how good a Lenders deal is, you must be able to afford it. Because this is such a big deal, many people choose to go with a Mortgage Broker in Manchester as we’ll compare the criteria and find something that matches you and your circumstances.

These days, thanks to tightened regulations post Credit Crunch, mortgage applications are no longer straightforward. There are a variety of things that could potentially be a hindrance when you are making your application. These can include:

  • I have a poor credit history.
  • I am receiving self-employed income.
  • I am using a mixed deposit source, i.e. Gifted & Savings.
  • Opting for Let to Buy. Renting your current home to buy another.
  • Being a contractor or working under a zero-hours contract.
  • I am struggling on the affordability front.

Lender vs Broker | Mortgage Advisor in Manchester

Over the years, Mortgage Lenders would show their competitive side, often trying to offer better deals than the next Lender. Nowadays, because of tightened margins, their differences come from their lending criteria.

Examples of these include the amount some would lend to the self-employed compared to others, as well as being slightly more lenient to previous adverse recordings on your credit report.

Whatever the situation, it is unique to you. When you explain this to an experienced Mortgage Broker in Manchester, they will likely have encountered something similar before. Hopefully, they’ll use this experience to recommend the most appropriate mortgage for you, at the lowest rate available to you.

Why a Mortgage Broker in Manchester will benefit You

Our service goes beyond just the mortgage too. Customers will rely on Mortgage Advisors in Manchester for more, even if the application is straightforward. They can discuss how much they’re planning to offer on a property, recommend services such as solicitors and property surveys, and go through any available protection.

Another significant aspect of the service a Mortgage Broker in Manchester provides is the ability to be more responsive than the lenders’ direct propositions. Out of hours and weekend, appointments are common-place, as are our Mortgage Advisors in Manchester working late on an evening to respond to customers’ emails.

An often-overlooked factor of why most applicants prefer a mortgage broker is that everyone seems to be busy, and you might need someone to handle the full transaction and take away your stress. Professional applicants will see the benefits of this as they have clients of their own that they’re able to charge their services.

Maybe in the future, lenders will want to take back more clients from brokers. If this happens, it’s relatively unlikely they’ll staff-up their branch networks. They will likely make investments in technology to transact with customers online.

For clients who want to do business that way, with say a straightforward product switch, it’s great. Generally, whether they are First Time Buyers in ManchesterSelf Employed in Manchester, or looking to Remortgage in Manchester, people enjoy having the “human touch” when it comes to the mortgage process.

Mortgage Advice in Manchester | Mortgage Advisor in Manchester

Need a Mortgage Agreement in Principle in Manchester?

What is an Agreement in Principle? | MoneymanTV

An Agreement in Principle (AIP) is where you pass a Lender credit score to qualify for a potential mortgage. Sometimes you may also hear it being called a Decision in Principle.

With an Agreement in Principle in hand, you are ready to support any offers you make as a First-Time Buyer in Manchester. You may be able to negotiate a lower price if you have one of these as it shows the seller you are serious and have the funds to proceed. 

Will obtaining an Agreement in Principle affect Credit Score? 

Nowadays we see more lenders using soft searches than not, however some may still affect your credit score. This can be the case if it is a hard search, but usually a soft search should leave your credit score unaffected.

Soft searches don’t dig as deeply as hard searches, though you can trust that the lender made the correct choice either way.

Should I avoid hard credit checks? 

If it is once every blue moon, then a hard search or two should not make too much difference. The problems arise if you start having multiple hard searches within a small window of time.

That being said, if your credit rating is good and you know it, do not let this put you off, especially if taking a hard search with that lender is the best deal.

Is an Agreement in Principle a guarantee that I will get the Mortgage? 

Though it would be nice, there are no guarantees that having an Agreement in Principle will get you a mortgage. The Lender will still need to see all your documents and only then will an Underwriter make the final decision.

Often we find that customers get in touch having been declined at application stage, due to missing some small print in their Agreement in Principle. You will need to provide ID to prove that you are genuine, payslips to prove you earn the amount you claimed and bank statements to prove you conduct your finances, before a lender will offer your case.

Can I make an offer without an Agreement in Principle? 

Though it is possible to make an offer without an Agreement in Principle, we would not recommend it. An Estate Agent with credibility will want you to prove you can in fact proceed.

How Long Does it take to get an Agreement in Principle? 

It is possible to obtain an Agreement in Principle within 24 hours of speaking with a Mortgage Advisor in Manchester.

How Long Does an Agreement in Principle Last For?

Usually an Agreement in Principle will expire after 30-90 days. You do not need to worry though as this does not mean you should just apply for the first house you find. If your Agreement in Principle expires, you can quite easily have it refreshed when you are ready to make an offer.

Finding a mortgage only to be declined a mortgage can understandably be disappointing. As such, we recommend getting an Agreement in Principle as early as possible.

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