Mortgage Broker in Derby

When you apply for a mortgage for a new house, banks and building societies will check a wide range of factors from the house that is being purchased, whether there are any odd circumstances to the purchase, as well as the credit history of the borrower.

This typically involves checking your credit rating, which weighs your borrowing history, amount of debt relative to earning, with each financial institution giving these factors a different weighting.

As a First Time Buyer, there are some helpful hints and tips you may need to ensure that you are fully in the know and that your purchasing experience is as smooth as it can be. The following information will hopefully act as a starting guide to becoming a home owner.

Getting the money together for a mortgage deposit can sometimes be a struggle. A lot of people are not aware that there are more ways to put down a deposit than just using your savings. There is in fact a wide variety of schemes and methods to pay for your deposit. Read on to find out more about the options available.

A second charge mortgage, or a secured loan, is the process of using any equity (the percentage of the property you own outright) you have in your home/property as security against another loan. Your home will therefore have two mortgages. Some people use second charge mortgages instead of remortgaging their property. 

The Shared Ownership scheme is exactly what is claims to be – a buyer (first time or currently not owning/selling their only property) has the opportunity to purchase a share in a property, for which they will pay a mortgage. They will then rent from a housing association who retains the remaining share in the property. Due to the fact you are only mortgaging your share of the property (which can be anywhere between 25%-75%), the initial purchase price is reduced significantly – the deposit generally being only around 5% of the share value.

‘Arrears’ is a term used in financial and legal situations, referring to the status of owed payments – and their corresponding due dates. It is used to describe something that has not received its payment by its set due date, so in simpler terms, ‘Arrears’ are overdue payments. If a payment is missed (one or more) the account will be in arrears – for example; a phone bill, or a mortgage.

There is always the question of whether to go with a mortgage broker, or directly through the bank, when you are applying for a mortgage. There are of course pros and cons for both, but ultimately it is the individual’s decision. Read on to find out more about your options.

Having a low credit score can be caused be a variety of factors. It could be debt/credit agreements you have had in the past that have gone bad e.g. you have missed a series of payments these could have ended up in default (normally 8 missed payments and the agreement has broken down between you a the lender) it could be you have utilised a lot of debt and have several amounts owing to different lenders across a series of credit cards, store cards or loans. You may have several credit cards that run very close each month to their credit limits.