First Time Buyer Advice

Posted on April 20th, 2015

First time buyers in Manchester

First time buyers are, by definition, generally at the bottom step of the ladder. Typically first time buyers require:

  • Very high Loan To Value (LTV) – as they do not have large deposits.
  • Extra Monies for home improvements
  • Higher income multipliers as many first time buyers are at the early stages in their careers
  • More mortgage advice than second time buyers or remortgage applicants.

We Know Mortgages Ltd strives to offer the best service to first time buyers and offers simple guide to first time buyers (below). The principles for a first time buyer remain the same irrelevant of market conditions.

Mortgage Agreement In Principle

First be ‘Agreed in Principle (AIP)’ by a mortgage lender. To obtain an AIP, a credit search is carried out taking all your personal details into consideration. Obtaining an AIP will indicate how much you can borrow (speak to one of our mortgage brokers for more information).

Some more lenders are stricter than others; too many credit searches trying to gain a pass is not advised as each ‘search’ leaves a footmark on your file. Our mortgage brokers will advise the best possible course and deal with your estate agent if need be.

Once accepted, an AIP certificate will be issued.

House Hunting

Secondly You should really get stuck into the property hunt, searching through websites, newspapers, and estate agents. The more properties you see the better.

Short list your potential properties, arrange viewings (our mortgage advisers can help with this), and if the property is right for you, speak to your designated mortgage consultant for an opinion and then make an offer. Also it is advised to take a family member or friend with you when viewing for neutral opinions.

It is always advised to negotiate the property to get the right deal for you. Speak to one of our advisers if you need help.

Mortgage Application

Finally, once your offer is accepted, the estate agent will generally require a copy of the AIP certificate and solicitors details. Our mortgage adviser will be able to forward these details to the estate agent; and then arrange for a mortgage application to be completed. Mortgage surveys/valuations are generally carried out immediately.

New build mortgages; Shared Equity mortgages; Shared Ownership mortgages, Right to Buy mortgages, all advised by our mortgage brokers based in Manchester city centre.

If you require mortgage advice and you’re a first time buyer; speak to one of our mortgage brokers we’ll go through your options. You can discuss all over the phone or come in to see an adviser in our Manchester city centre office. We have access to the whole mortgage market.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.


Second Time Buyer Advice

Posted on April 20th, 2015

Second time buyers (or next time buyers) are applicants whom currently have a mortgage on a property and are seeking to sell, to move into another property. Generally searching for a bigger property or relocating to another area.

Second time buyer mortgages have a similar path to a first time buyer where an agreement in principle is required before searching a property. However the sale of the existing property tends to determine when the initial mortgage application is completed. It is generally advised to complete a mortgage application when a solid offer is received on their existing property.

Second time buyers tend be on a chain of buyers, so completion timescales can vary pending all sales and desired moving in dates. Mortgage brokers and solicitors work together to achieve these dates.

Second time buyers generally fund costs from the sale of properties; therefore solicitor’s fees, stamp duty, arrangement fees, disbursements and deposits can be deducted from the sale proceedings minimizing set up costs being paid at outset. Generally the only fees to be paid upfront are the mortgage survey fee and solicitor searches. If there are insufficient funds from the sale proceeds, our mortgage advisers will advise from you at the outset. Our mortgage brokers could save you time and money.

If you require mortgage advice and you’re a next time buyer; please call our advisers based in Manchester. We offer unbiased mortgage advice and are not tied to estate agents. As mortgage brokers and access to the whole market we will go through your options and full costs of set up fees.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.


Remortgage Advice

Posted on April 20th, 2015

A remortgage, is also known as refinancing. The remortgage process involves obtaining a new mortgage to pay off the existing mortgage on the same property. Many clients remortgage for various reasons, such as:

  • Acquiring a better rate from another lender
  • Changing the mortgage term or loan amount.
  • Raising capital
  • Consolidating debt

Remortgages are determined by the value of a property and the loan amount required; this gives a Loan to Value (LTV), seen as a percentage; mortgage lenders in turn offer specific products deals based on Loan to Values i.e. 70%LTV; 80%LTV; 90%LTV. Generally, mortgage lenders offer incentives for remortgage applicants i.e. free basic survey or free legals; based on specific Loan to Values. Our mortgage advisers will advise you the right mortgage deal based on your circumstances; also searching those incentives.

It is important for any remortgage applicants to speak to one of our mortgage adviser as we’ll carry an affordability check i.e. look to reducing your mortgage term , loan amount or rate could save you thousands in interest payments. Our mortgage brokers based in Manchester will advise and recommend the right remortgage product for you.

Remortgage applicants are seen as a lower risk than a first time buyer as applicants have a mortgage payment profile, which in turn could help towards credit scoring.

Please note; you may have to pay an early repayment charge to your existing lender if you re-mortgage. Please double check your mortgage statements with current providers or speak to your mortgage provider.

If you require remortgage advice; speak to one of our advisers. With mortgage rates at record lows, you may save yourself  money for switching. You will also need to consider if mortgage rates increase in the coming years. Mortgage advice in 2015 is important. We have access to the whole mortgage market, please get in touch to discuss your options.

Think carefully before securing other debts against your home.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.


Let to Buy Mortgage Advice

Posted on April 20th, 2015

Let to Buy Mortgages

Due to current climates more mortgage borrowers are considering purchase properties whilst retaining their existing property and mortgage. This is referred as a Let to Buy mortgage. Mortgage borrowers may consider this option so they dont sell for a loss or keep the property as an investment.

Let to Buy mortgages are becoming more popular. Mortgage borrowers are taking more risks and seeking to increase their property portfolio for long term benefits.

Not all mortgage lenders offer Let to Buy mortgages as it poses greater risk as potential  customers maybe required to maintain both mortgages. Please speak to one of our mortgage brokers for more information as advice is certainly required in these circumstances.

Proof of an applicant existing mortgage switched to a Buy to Let mortgage maybe required. Some mortgage lenders may ask for projected rental incomes from an ARLA letting agent. In some instances though, an applicant’s income maybe sufficient to cover both mortgages and proof may not be required. Mortgage affordability assessments is thoroughly assessed as applicants will need to support both mortgages.

A Let to Buy mortgage offers an applicant flexibility. Selling existing properties can be stressful, therefore a let to buy mortgage maybe more favorable.

If you require let to buy mortgage advice; please speak to one our mortgage advisers. We’re based in Manchester city centre, and can offer face to face appointments with an experienced adviser. We are mortgage brokers and have access to the whole market and will go though your options.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.


Shared Ownership mortgages

Posted on April 20th, 2015

Shared Ownership Mortgages

A shared ownership is where a first time buyer purchases a proportion of a property (Usually 25%, 50%, or 75%) and rents the remaining balance. Shared Ownerships are usually offered by housing associations, to those who fit their specific criteria.

There are a number of government incentive schemes available which favour key workers and applicants on lower incomes i.e. Homebuy. Our mortgage advisers will help you with this type of purchase.

Shared ownership mortgages are available to first time buyers. We have access to the whole mortgage market and we’ll source the right shared ownership deal for you. We are based in Manchester.

If you need advice on a Shared Ownership mortgage, please speak to one of our mortgage advisers. Having access to the whole mortgage market and as mortgage brokers we will help you source the right mortgage product.

Please note for Shared Ownership mortgages, you will need to consider the rent element.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.


Help to Buy Mortgage Advice

Posted on April 20th, 2015

Help to Buy Mortgages

Help to Buy is common nowadays where as the mortgage borrower receives an interest free loan for 5 years. This would be classed as a shared equity mortgage.

Other shared equity mortgages are available where a first time buyer purchases the whole property at a discounted rate. The discount is then passed to the next first time buyers. These types of schemes are offered to key workers and applicants on lower incomes. Not all schemes are the same but the majority are similar. Our mortgage advisers will help you will help you with this type of purchase.

Shared equity mortgages are available to first time buyers.

We have access to the whole mortgage market and we’ll source the right shared equity mortgage for you.

If you require shared equity mortgage advice and you are a first time buyer seeking a Help to Buy mortgage; please submit your details above and one of our mortgage brokers will help you. We have access to the whole mortgage market and will guide you through the mortgage process from start to finish and complete your Help to Buy application.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.


Buy To Let Mortgage Advice

Posted on April 20th, 2015

Buy to Let Mortgage Advice

A buy to let mortgage is a loan for someone who purchases a residential property with a view to renting it out as an investment.

Mortgage lenders view Buy To Let as a greater financial risk because immediate vacant possession is not always guaranteed. Therefore mortgage lenders tend to:

  • Ask for bigger deposits, usually 15-20%
  • Charge a higher rate of interest
  • Require the rental income to be greater than the interest element of the monthly payment.
  • Usually charge higher mortgage arrangement fees or slightly higher rates
  • Require a minimum income
  • Require the applicant to be a homeowner

Please speak to one our mortgage advisers as we do have access to the whole market and criteria varies from lender to lender. A few mortgage lenders don’t require a minimum income. We are mortgage brokers and will find you the right mortgage lender.

2015 and beyond is expected to see an increase in Buy to Let lending as demand is increasing. Rental yields are improving; and student applications across the UK are increasing (as many students tend to rent). In some areas of the UK, letting agents are reporting a shortage of supply; as four to five sets of tenants are vying for the same property.

Mortgage lenders tend to require the rental incomes (normally carried out by a surveyor) to be greater than the monthly payment. If below, further evidence of income is required to cover any shortfall. Some mortgage lenders are happy with the same. Please speak to one of our mortgage brokers for more information.

If you require buy to let mortgage advice; please call one of our mortgage brokers. We have access to the whole mortgage market for buy to lets. We’ll guide you the mortgage process from start to finish and speak to your estate agents and solicitors.

Will writing and most forms of Buy-to-let mortgages are not regulated by the Financial Conduct Authority.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.


Why Write a Will?

Posted on April 20th, 2015

People commonly give three excuses for not having a Will:

  • I don’t need a Will because all my money will automatically go to my partner or children.
  • I don’t have enough money to write a Will.
  • I know I need to write a Will but I’ll do it later.

These excuses are misguided and the consequences of people dying without a Will can be horrendous for family and loved ones.

Why write a will?

If someone dies without a Will then their affairs will be settled according to the rules of Intestacy. These can be very unfair:

  • Unmarried partners are entitled to nothing
  • Married partners only get the first £250,000 or £450,000 (depending on whether or not they have children) and a life interest in half of the remainder.
  • If both parents die their children may be taken into local authority.
  • If the estate is worth more than £5000 its assets will be frozen until probate is granted which may leave the family without money to live.

Please speak to one of our advisers at We Know Mortgages Ltd and we’ll recommend you solicitors whom specialise in writing wills.

The Financial Conduct Authority does not regulate Will Writing, Inheritance Tax Planning and most forms of Buy To Let mortgage.