If you are a First Time Buyer in Nottingham, and just found the right property for you, you’ll be needing to negotiate the asking price and put down an offer fast to avoid any other potential buyers sweeping up your desired property, at the same time you want to put down that ‘magic number’ to secure the property but, would prefer not to overpay for it. As a First Time Buyer in Nottingham, you may not be familiar with negotiating a property price. Below are the steps you may need to take to put you in a much better position when you make an offer.
Remember that there are other potential buyers. Therefore, it is vital to get your portfolio looking as good as possible to get yourself ahead. This will give you an advantage in getting your offer accepted. Another good tip is to work out how much mortgage you can afford, add your deposit, and set money aside for the costs of buying a property too.
We also recommend sending over a copy of your Mortgage Agreement in Principle, also known as a Mortgage in Principle and Decision in Principle. It gives you a better idea as to which properties you can afford and makes it easier whem making an offer. A Mortgage Broker in Nottingham like ourselves can help you with this, our team can usually turn around an Agreement in Principle within 24 hours after your initial contact with us.
Getting a mortgage is about negotiating. It will most likely turn out that your initial offer will be rejected but rest assured, this is expected. If this happens, you will be given an option by your Estate Agent to increase the offer. It is best to be sensible and go for the amount which seems the most reasonable price to which you can afford.
If your second offer is also not accepted, the possible reason for this could be down to willingness towards the payment of the asking price. Therefore, if the property is new to the market and the asking price seems too high, sometimes the best option is to be prepared to find another property.
“Sold” prices on Property websites such as Zoopla and Rightmove can be a great insight to giving you a right estimate on correct asking prices depending on the area. A lot of this data is compiled from the Land Registry, meaning it should be reliable.
Certain properties may stand out because they may seem much lower in price compared to the other houses that surround them, there will be an underlying reason for this. The most common reasons include:
In our service we will guide you with your offering strategy. It may seem nerve-wracking but it is also a very exciting part of the process.
Making a good offer is an integral part of getting the property you liked but there are certain things you need to consider when you are making an offer on any property that you wish to purchase. It is not enough just to be giving asking price to be a good buyer and stand out from other buyers but there are other things the seller considers while making the decision on choosing the buyer.
While you can get submit a verbal offer either in person or on phone, most of the agents now ask for you to send your offer via email these days, for records for both parties. This offer is then taken to the seller who chooses to accept or reject your offer. An agent is liable to pass any offer he received to the seller for their consideration.
The seller will take you more seriously if you come across as a well-prepared buyer who can show evidence that they can afford the property with a ‘mortgage agreement in principle’. You should also have a solicitor in place so you can advance their details when the offer on the property is accepted.
Any buyer without baggage of previous mortgages, first time buyers in Nottingham or buyers with pre-organised mortgages will have a benefit of preference from the seller.
Your transactions and agreements will process more swiftly if you are a chain free and organised house buyer.
Tip: If the seller is in hurry to sell or has been trying to sell the property for some time, they might accept a lower offer than the asking price as well, especially if your purchase will pass through quickly.
Some sellers are not constricted by time or other factors and hence will wait for the buyers who can offer a higher price to maximise the value of the property.
No matter what price you are offering for the property, do it with assertiveness and confidence. Most negotiations include several rounds of offers and counter-offers.
While you might be attracted to a certain property, you should always have a budget ceiling in mind. This will help you decide the maximum you can offer for a property and if the investment is worth for you in long term. An agent is required to be transparent and will let you know if other parties are interested in the properties to help you make your case.
Ensure that it is clear to all parties that the offer is:
Subject to Contract (STC) – the final sale is made when lawyers have exchanged and signed contracts.
Subject to Survey – allows any cost for faults and issues to be taken in account.
Ensure that the agent has taken the property off the market otherwise, you risk a chance of being gazumped.
When we face a client with a complex mortgage situation, we continuously try our best to get by it, aiming to secure our client a tailored mortgage deal.
As a mortgage broker in Nottingham, we would always recommend seeking professional advice from qualified mortgage advisors like us. As we can apply our knowledge to help overcome most mortgage hurdles for our customers, there is rarely a situation that we haven’t come across before.
Whether you’re a first time buyer in Nottingham, a home mover in Nottingham or a buy-to-let landlord in Nottingham, we think that you would find our mortgage advice service extremely beneficial.
One of the hurdles that come with getting a mortgage is passing a lenders credit score. Every lender has unique lending criteria that you need to match to get accepted by them for a mortgage. Every lender is likely to have very different standards from one another.
We often find that people don’t realise that lenders have these individual criteria. The more lenders you approach that carry out a credit search, the more likely it is that you will get declined. That’s why we always recommend not to rush anything and always know what you are applying before you go ahead.
To pass a lender’s strict lending criteria, you often require a high credit score; otherwise, it may not match what the lenders want. Having a low credit score could be down to numerous things, and sometimes the only way to continue up the property ladder is to try and improve your credit score. In some cases, it’s relatively easy to improve, just time-consuming.
Your credit score is critical, so if you are worried about your score, you should consider checking your credit file. We hope this can help! Take a look at Check My File for more details and a free 30-day trial.
When you apply for a mortgage, your lender will either perform a soft or hard credit search. Soft credit searches will give the lender basic information and will have little impact on your credit score. On the other hand, if they perform a hard credit search, they will get a more in-depth view of your file, leaving a more significant imprint on it.
If you struggle to find a better remortgage deal or don’t want to shop around, you can always try a mortgage broker in Nottingham like us. We will sort out everything for you and search through 1000’s of remortgage deals to try and find you the best mortgage deal, saving you time and money; for a more tailored answer, get in touch and speak with one of our advisors for a free remortgage consultation today.
If you are struggling to get a mortgage and want some help from an expert Mortgage Advisor in Nottingham, we are always here to offer a friendly helping hand. We know that it can be a complex and often stressful process, and that’s why we want to help you.
We often find that first time buyers in Nottingham like yourself can sometimes see the entire homebuyer experience stressful. It doesn’t have to be that way. To help you get prepared. This article will feature a shortlist of top questions to ask when considering enquiring about a property.
It’s always worth finding out how many people have viewed or enquired about the exact property you are after. Giving you a more accurate measure of how much time you have before making a definitive decision. After all, this will be one of, if not the most significant financial commitments in your life.
If there is no onward chain, you will likely be able to move quickly, especially if you are not part of a chain yourself. In addition, if there is no need to sell your property first, you will have more advantages as a buyer as you will not hold up the home buying process.
New build properties often come with extras to incentivise you to buy the house. In addition, they sometimes come with optional extras you can purchase brand new and ready for you on your moving day.
If you are not buying a new build property, some previous homeowners like to leave items behind to save on costs, which could work in your favour. These can include and not limited to a washing machine, fridge, freezer, or typically a shed if the property has a garden shed.
Try to gain insight into your new neighbours. as a good or bad neighbour, the experience can frequently make or break your experience of living in the property.
Running costs can depend on the property location. It’s always best to find out how much the Council Tax and the average spend on utilities by asking the seller or researching online.
Suppose you like relaxing in the garden in late summer evenings or reading books in the conservatory —the direction the house faces can make such an important difference.
When you move into your new home, you will often want to decorate your tastes and what other work needs to be done around the property. We tend to find older properties; you may have some ‘fixes’ or repairs to make. Or make improvements to energy efficiency, insulation and garden work.
Negotiating on a property price is a pretty standard part of the house-buying process. Therefore, it’s essential to be as prepared as possible to make an offer on a property that you like. You can learn more about improving negotiating on a property price and being one step ahead here.
By setting a date in your diary, you can plan your other jobs, such as instructing a conveyancing solicitor, packing your belongings and arranging a removal van to bring your belongings to the new property.
A credit score is a number that represents a person’s creditworthiness. Your credit score will be used to calculate your affordability for a mortgage, loan, credit card, etc. Your score will be listed on your credit file, so anyone that does a credit search on you will be able to see your score.
If your credit score is above 670, a lender will likely see no problem lending to you. On the flip side, if your score is less than 670, you may find it a little harder to get a mortgage and access the competitive deals that high credit scoring applicants are being offered.
If you want to access these types of rates, you may need to start thinking about trying to improve your credit score in Nottingham.
As a Mortgage Broker in Nottingham, we come across applicants in all different kinds of credit situations, some more specialist than others. There are lots of different reasons why your credit score may be low, some reasons are more common than you would realise.
We’ve seen a lot of customers suffering from a county court judgement (CCJ), a CCJ can severely impact your credit rating. If you fail to pay back a loan/lent money, you’ll be issued with a CCJ that won’t disappear from your credit file for 6 years or more.
This is why we always recommend that you pay off your debt before applying for credit; your lender will be able to see your ongoing finances and balances left to pay off. If a CCJ pops up during a credit search on your file, you will undoubtedly start getting asked questions.
Little things can cause damage too. For example, if you fail to keep up with your mobile phone contract payments and you end up with frequent bounced direct debits, your score will get harmed. Any sort of missed payments and bounced direct debits will appear badly on your credit file.
Even maximising into your overdraft every month could cause long term damage to your credit, without you even knowing. Your lender needs to know that you can manage your finances and not overspend. A lender will never accept an applicant who never has any money remaining at the end of the month, they need to know you have enough for your monthly payments.
This is just mentioning a few things that could negatively impact your credit rating, there are lots of other reasons why your credit score may be lower; some factors will cause more damage than others too. If you have a bad credit score and need some tips on how to improve it, feel free to get in touch with our team for Specialist Mortgage Advice in Nottingham. Whether you are a First Time Buyer in Nottingham, Home Mover or Self Employed, we are sure that you’ll benefit from our mortgage services.
Trying to improve your credit score can be hard, but hopefully, with the help of this handy guide, you can be nudged in the right direction towards improvement. You should know that every lender has different lending criteria, so you’ll never qualify for every mortgage deal, no matter how high your score is.
This means that you may still be able to access some specialist deals, even if you have a low score. Every lender and their criteria are different, so look out for their requirements before submitting your application. If you need help in finding a competitive mortgage product, speak to your Mortgage Broker in Nottingham today and we can recommend the best deal for you based on your personal and financial situation.
Multiple credit searches can have adverse effects on your credit score. Be careful when using price comparison websites that are known to be major culprits of credit searching on individuals. If you are applying for a mortgage soon it may be wise to apply for additional credit afterwards. Whilst having some credit and paying it back is a good thing for your score in the long run. Lenders prefer to see you leverage your borrowings right before setting up a mortgage application.
Making sure you’re enlisted on the electoral roll really increases your credit score. It indicates stability which lenders like. Ensure your name is spelt correctly and that it’s your current address which is registered online. If you aren’t registered, it’s straightforward and easy enough to do this online.
If you max out your card each month, your score will be reduced. Using a credit card to keep on top of your payments each month is a preferred method. This will be a good indicator to your lender that you are good at managing your money. The main red flag in a lender’s eyes is if you exceed an agreed card limit or overdraft. The reason lenders watch over this is because they want to know you’re able to take your finances responsibly.
Sometimes it can be perceived on your credit report that you are living in two places at the same time if providers have yet to be told that you have moved houses. It is pivotal that the addresses which you’re updating are spelt correctly; If you have been residing in a flat this can be a bit more complex as the address can be formatted in different ways.
If you no longer use certain store/credit cards you should get into contact with the providers to close the account for extra security. In the short term, this could be seen as having a brief impact on your score as the lender can’t tell who’s closing the account e.g. you or the provider but this will be for the better and an advantage to you in the long run. This is a good thing to do to reduce your chance of becoming a victim of fraud if you don’t notice you have a lost a card that you may use regularly.
Having family members or ex-partners connected to you financially could mean that they’re affecting your credit score unknowingly. Although you won’t be able to get the financial association removed if the account is still active though. To remove the links between you and another individual you should contact the reference agencies and make a request. The sooner you do this, the more beneficial it will be.
Many consumers feel that credit scoring is an unfair way of applications being assessed though lenders themselves are indifferent to this idea as it makes their overall job easier. It is more cost-effective for them to operate this way and computers give more consistent outcomes. On the other hand, some lenders do still do it the old-fashioned way but still apply the same rules about the number of defaults and CCJ’s they will allow.
When setting up your application, be sure your report is up to date to increase your chances of being accepted the first time. The more in-depth information which your Specialist Mortgage Advisor in Nottingham has at hand, the better.
A County Court Judgment (CCJ) is a court order in the UK that might get registered against you should you fail to repay the money that you owe. CCJ’s can negatively affect your ability to get a mortgage. However, good news, with the help of a Specialist Mortgage Broker in Nottingham we may be able to help you.
Your Mortgage Advisor will discuss the following with you in order to recommend the best mortgage for you with you’re CCJ:
???? The number of CCJ’s registered.
???? Amount of the CCJ.
???? Settled or unsettled.
???? Deposit size.
???? Date registered.
A County Court Judgement is issued if you fail to pay any outstanding money that you owe. A CCJ can have severe effects on your odds of getting a mortgage.
An unsettled CCJ will eventually disappear from your credit file after six years, however, it may be possible, with enough deposit, to get a mortgage within this time. Here we will explain how a CCJ affects your mortgage chances and how to get on the property ladder if you have Bad Credit in Nottingham.
Unless the claim got proved to be false or you paid the debt within 30 days, it might not appear on your credit history. However, if you failed to pay within 30 days, things become more arduous, but you are open to some options.
If the CCJ was recent and expensive, this could lower the chance of lenders willing to give you a mortgage. A CCJ often accompanies other credit problems stopping you from getting a mortgage.
???? Any issues involving money owed to a mortgage provider?
???? Did it affect the property?
???? Was the CCJ brought because you poorly managed your finances over an extended period?
This could help improve your chances: having a regular income, a clear credit history since the CCJ, getting CCJ settled or paying off a CCJ.
A growing number of lenders cater to applicants with CCJs, but the essential factor is how long ago the CCJ was. Going to an expert Mortgage Broker in Nottingham will be crucial. They can try and match you with the right deal if you suffer from a CCJ.
If you want to dispute a CCJ and want to re-open the case against you, you will need to make sure that you can supply enough evidence as to why you shouldn’t have been issued a CCJ in the first place. You can appeal to the CCJ by completing an N244 form. The fee will be pretty significant for them to re-open your case, however, if the court agrees that you shouldn’t have been issued the CCJ, it will be removed from the Register altogether.
Any CCJ longer than six years ago would have gotten removed. It would help increase your chances of passing a lenders criteria if your CCJ was more than four years old than one within the past year or two.
Each lender looks at CCJs differently. One lender might look at only when the CCJ was issued. Others will focus on when it got settled or if it got settled at all.
You need to prove it got paid within 30 days of being issued if it’s been over six years since you received the CCJ and successfully disputed it, or another party was proven responsible for it.
If you never received the CCJ initially and appeared on your file, you need to contact the court where the CCJ got made. You need to contact each of the credit reference agencies and get a ‘notice of correction’ added to your credit report.
You need to make sure you keep up to date payments on your CCJ and other credit agreements. If you think you might miss a payment, you need to contact the lender as quickly as possible and discuss your options.
Minimise applications for new credit, check your credit report and make sure all details are up-to-date. Check out our handy How to Improve Your Credit Score in Nottingham guide for further information.
We here at Nottinghammoneyman would like to wish everyone out there a very Merry Christmas, and we hope for a prosperous and healthy 2021 for all.
The values of properties in the UK have surprisingly held themselves up high during the pandemic. Due to stock shortage, undiminished consumer demand and the Stamp Duty Holiday (which is due to end in March of 2021).
Suppose we have learnt anything about the property market in 2020. In that case, it’s that you’ll never stop a dedicated and hard-working potential First Time Buyer in Nottingham from pushing through and doing whatever it takes to be a homeowner!
We predict that as we advance into 2021, despite unemployment levels going on the rise, we here at Nottinghammoneyman fully expect the consumer demand for buying property to continue to be on the rise.
With people spending more and more time at home, it’s only natural that people will inevitably start looking for something bigger, better or with a lovelier garden.
Also, around this time of year, we will see lots of remortgage activity from customers who are happy with their current home but would like to invest in their homes by expanding for some home improvements.
Interest rates are still relatively low, and off the back of Brexit, the Government will want the property sector to thrive, especially considering that it is one of the “wide multipliers”, e.g. it will uphold lots of jobs.
Once the vaccine is fully out there, and life starts to feel a little normal again. We believe there will be many people who adopt a “life’s too short” approach to their lives, something that should be good for the economy, especially those with involvement in the property market.
If you need Mortgage Advice in Nottingham or life insurance advice in 2021, please feel free to get in touch. Our dedicated mortgage advisors are available from early until late, seven days a week, from morning until late evening, to answer your questions. Contact us to book your free mortgage consultation!
Year after year, back to back, we see thousands of Interest-Only Mortgages in Nottingham reaching the end of their terms and customers unable to pay off their mortgage fully.
Here we will explain what they are, the situations people face and what to do if you have an Interest-Only Mortgage.
Residential Interest-Only Mortgages were the in thing back in the 1980s and 1990s. The concept was that you pay interest on the capital owed, then when you reach the end of the term, you pay a lump sum. Borrowers would get advised to set up an “Investment Vehicle” alongside their Interest-Only Mortgage.
These were low-cost assets offered by investment companies, to raise enough money to eventually pay off the lump sum at the end of the term. In some cases, these investments may even provide additional funds on top of paying off the mortgage. Investment Vehicles also acted as a means of providing life cover, should the customer ever unfortunately die.
When taking out their Interest-Only mortgages, many customers did not get informed about the risks involved. There was no guarantee that their investment would grow enough to pay off the mortgage, with some customers not even investing at all. There were many complaints, with thousands receiving compensation if they got mis-sold on their mortgage.
These days we find that Interest-Only Mortgages are mostly used in conjunction with Buy to Let Mortgages. In any case, this is because some landlords like to maximise their monthly profits as much as possible.
Endowment Mortgages haven’t been popular in some time. There may be people still using one of these and have not managed to get them switched into a Repayment Mortgage yet. If this is you, you may be understandably concerned about losing your property.
You can still get an Interest-Only Mortgage, but with stricter rules now in place, it is less likely to be seen or cause any trouble for customers. Not all lenders will offer interest-only and those that do have stringent criteria, such as an approved repayment vehicle in place and a bigger deposit.
At times some lenders have surprised the borrower by requesting full repayment of the balance. Though this would typically only occur if the lender had been a poor communicator. Lenders regularly write to the borrowers, to ensure they know they need to make their repayment plans.
If you realise you are unable to repay the capital when required, please communicate and be open with the lender. However, this will not be the first time they have encountered this situation. So make sure you keep them updated on your circumstances.
Lenders do not like repossessing properties from people who cannot payback. However, they need to make their money back somehow, so will do this if they have no alternative.
There are now a lot more Retirement Mortgage options available to borrowers directly than ever before. If you happen to qualify for one of these options. You may continue to pay interest as a means of protecting the equity currently present in the property.
On the flip side, if you are not worried about leaving an inheritance to your children. You can allow interest to roll up and flat out stop making any mortgage payments.
A significant problem with Equity Release Mortgages is usually the Loan to Value. To qualify for one of these, especially if you are in your 60’s. You need to have a decent amount of equity in your home.
Being a First Time Buyer in Nottingham or Home Mover in Nottingham when it comes to applying for a mortgage and your credit score, the fewer addresses you have on your record, the better, and it seems that people are becoming more savvy and aware of this.
Our Mortgage Advisors in Nottingham are now seeing more and more applicants who have moved out of their parent’s addresses into rented accommodation. Still, they think that it is a good idea to leave their bank statements, credit card, and Electoral Roll information registered at their previous address.
There are good reasons why people do this. However, this is now a flawed strategy. We tell our customers that if you have moved to a new address, there will be some record of this on your credit report. In any case, this could be from a delivery address when you have ordered something online or a car/home insurance search and many more.
By far, a better strategy for if you are thinking about taking out a mortgage is to get all of your accounts (credit cards / current accounts) and electoral roll changed over to your new address. When updating your address on your credit file and electoral roll ensure you double-check the date in and date out. If you do make a mistake with these dates, it may appear on your records that you are living in two places at the same time.
Bear in mind this will show a more open and honest way of trying to apply for a mortgage which will benefit you greatly in your Mortgage application and when it comes to approaching a Mortgage Advisor in Nottingham.
To help get the property market back on its feet in post-lockdown, the Government has put into action a stamp duty holiday which will stay in place up until the 31st March 2021.
Stamp Duty often acts as a barrier to most people who choose to buy a home, so with this new Government implementation, it should allow the Property Market to be more accessible to a wider range of the general public during the current times.
This holds hope from the Government that the temporary move will allow 9 out of 10 people who buy a home to be exempt from paying Stamp Duty.
Here’s how these changes may affect you:
Stamp Duty normally doesn’t affect First Time Buyers in Nottingham as they are already exempt up to £300,000. The holiday will only apply to properties up to the amount of £500,000, so if you are a First Time Buyer buying at that maximum figure then you would save £10,000 in Stamp Duty.
The ones who will mostly benefit from this will be the ones moving home. If you are moving home in Nottingham and the purchase is completed before March 31st 2020 then you will not pay Stamp Duty at all as along as the purchase price is <£500,000. The predicted average that the Governments think the Stamp Duty will fall by is £4,500 but for prices around £500,000, the savings will be £15,000.
The Stamp Duty surcharge still applies in this scenario. This was brought in so that more first-time Buyers in Nottingham gained more opportunity to step onto the Property Ladder but Buy to Let Investors in Nottingham will still be better off than before.
Under the old system, if you bought an investment property for £250,000, you’d have paid 3% on the first £125,000 and 5% on the second £125,000, resulting in a stamp duty bill of £10,000. During the holiday you will only pay 3% stamp duty on the whole purchase price, meaning a bill of £7,500.