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Mortgage Advisor in Carlisle and Dumfries

We are proud of our continued success in winning awards for both our advice and our service

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Mortgage Brokerage of The Year 2023

UK Enterprise Awards 20233

Best Mortgage Broker of the year 2023 - Cumbria and South West Scotland

UK Enterprise Awards 2023

Client Service Excellence Award 2023

UK Enterprise Awards 2023

Did you know that as of December 2023 the value of all residential mortgage balances stood at £1.654.3 Billion?


Whether you're a first-time home buyer, a seasoned property investor, or anywhere in between, understanding the ins and outs of mortgages in the UK can be challenging but is essential.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.


Rest assured together we'll unpack the world of mortgages, helping you make sense of everything from valuation timelines to mortgage rate predictions.


Curious about what your next steps should be? Well, let's get started.

How to get a mortgage

Navigating the path to securing a mortgage can seem daunting, but understanding the process can make it much easier. So, let's break it down.


Firstly, you've got to assess your financial situation. Lenders will look at your income, outgoings, and your credit history to determine how much you can borrow. It's a good idea to check your credit report and correct any errors before applying.


Next, you've got to save for a deposit. The more you save, the better mortgage deal you're likely to get. Aim for at least 5% of the property's value, but remember, the bigger the deposit, the lower your interest rate could be.


Once you're financially prepared, it's time to approach lenders. You can go directly to banks or building societies, or use a mortgage broker who can compare deals for you. Make sure you understand the terms and conditions before signing anything.

How to get a mortgage on a low income 

You might be wondering, 'Can I get a mortgage on a low income?'


It's certainly possible, and we're about to explore how.


Specifically, we'll look at how to secure a mortgage while receiving benefits.

How to get a mortgage on benefits

Navigating the mortgage market on a low income or benefits can seem daunting, yet it's entirely possible with the right approach and knowledge.


1. Explore specialist lenders: Some lenders specialise in providing mortgages to individuals on benefits. You'll need to research these lenders, what they offer, and their eligibility criteria. Typically lenders will accept Universal Credit for mortgages, Child Maintenance, Child Benefit, Working Tax Credits and Child Tax Credits to name but a few. 

Remember not all lenders will accept all forms of benefit and those that do will accept varying amounts of this income


2. Evidence of income stability: Even on benefits, you must prove that your income is stable. Gather any documentation that illustrates consistent benefit payments.


3. Consider a Joint Borrower Sole Proprietor Mortgage: This type of mortgage will allow you to add others for affordability purposes. Often this is family members such as parents. Only you will own the property and once you meet affordability in your own rights then they can be removed from the mortgage.

Agreement in Principle Mortgage

A mortgage agreement in principle is a document that serves as a preliminary indication of the amount of funds a lender is willing to lend you for the purpose of purchasing a property. It is important to note that this document does not serve as a guarantee for mortgage approval, but rather provides an estimate of the maximum amount you can afford to borrow based on your financial circumstances and the lender's criteria. This document is typically valid for a limited period of time and is subject to further verification and assessment by the lender before a final mortgage offer is made.

Mortgage declined after an agreement in principle

Despite securing an agreement in principle for your mortgage, there's still a chance your application might be declined later on. This can be both frustrating and confusing, but understanding the reasons can help you avoid similar pitfalls in the future.


Here are three common reasons for a mortgage decline after an agreement in principle:


1. **Change in Circumstances**: Any changes in your income, job status, or credit score can affect the final decision.


2. **Property Issues**: If the lender's survey reveals issues with the property, such as a high-risk location or structural problems, your application might be declined.


3. **Deeper Credit Checks**: An agreement in principle is based on basic credit checks. A full application involves a more detailed review and may reveal issues that can lead to a decline.

How long does a mortgage take through a broker?

When you're looking to secure a mortgage through a broker, it's important to know that the process typically takes between 18 and 40 days. This time frame includes the initial application, the lender's decision, the property valuation, and the final approval.


You might wonder why it takes so long. A significant part of this time is spent on the mortgage underwriting process. This is when the broker and lender scrutinise your financial situation to ensure you're a good risk. They'll check your credit score, income, and outgoings.


Then comes the property valuation, which is a crucial step in the mortgage process. The lender wants to ensure the property is worth the amount you're borrowing. If there are any issues with the property, this could delay the mortgage approval.


Finally, there's the legal work. This involves conveyancing - transferring the legal title of the property from the seller to you. It's a complex process that can take a few weeks.


Remember that these timescales can vary. If you're organised and responsive, and if there are no issues with your application, the process could be quicker. But it's always wise to factor in a little extra time - just in case.

How long does a valuation take

While you're working with your solicitor on the legal aspects, it's also important to understand the timeline of a property valuation, which is a key step in securing a mortgage. Property valuations are vital as they determine how much a lender is willing to provide for your mortgage.


So, how long does a valuation take? Typically, the whole process takes anywhere from a few days up to two weeks. However, this timeline can vary due to a number of factors.


Here are three crucial aspects that can influence the duration of a property valuation:


1. Property Accessibility: If the property is easily accessible and the surveyor doesn't face any hitches in scheduling the visit, you can expect a quicker valuation process.


2. Property Complexity: Properties that are unique or have complex features may require a more detailed analysis, which can extend the timeline.


3. Surveyor's Workload: If the surveyor has a heavy workload, it might take longer for them to complete the valuation.

4. The type of valuation required: There are three main types of valuation in the UK: mortgage valuation report, home report, and building survey. A mortgage valuation report is a basic inspection of the property to determine its value and suitability for a mortgage. A home report is a more detailed inspection that includes a survey of the property's condition, as well as an energy report and property questionnaire. A building survey is the most comprehensive type of valuation, providing a detailed analysis of property's condition and any potential issues that may need to be addressed.

Will mortgage rates go down in the UK?

Predicting whether mortgage rates in the UK will go down isn't an exact science, but certain economic factors can provide some insight. You might be wondering what these factors are. Let's break it down:


1. Inflation: When inflation is low, mortgage rates usually drop. It's because lenders aren't as worried about the money they lend losing value over time.


2. Economic growth: If the economy is doing well, mortgage rates often rise. But if it's struggling, rates may decrease to stimulate borrowing and spending.


3. Bank of England's base rate: This rate influences all other interest rates in the country, including mortgages. If it drops, there's a good chance mortgage rates will too.

When will mortgage rates go down?

Great topic! This is quite possibly the question we are asked the most.

Mortgage rates are influenced by various factors, including inflation, economic growth, and the Bank of England's monetary policy. By keeping an eye on these indicators, you can get a sense of where rates might be headed.


However, predicting the future is never easy, so it's important to stay informed and be prepared for different scenarios.

Award Winning Mortgage Broker, Carlisle & Dumfries.

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01228 406443

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