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If you find it challenging to save for your mortgage deposit, consider exploring the government mortgage schemes available in Bristol.
These schemes are designed to make obtaining a mortgage more affordable.
The government aims to make homeownership more accessible in Bristol by offering a variety of mortgage schemes to assist buyers in getting onto the property ladder.
Each scheme operates differently; some help with saving for a deposit, while others help in purchasing a property.
Each mortgage scheme has specific criteria that must be met to qualify.
Not everyone will be eligible for every scheme. For example, some are exclusive to first-time buyers, while others are available to both first time buyers in Bristol and existing homeowners.
Here is a comprehensive list of the current government mortgage schemes available:
One of the most popular and widely used schemes is Shared Ownership in Bristol.
Shared Ownership allows homebuyers to take out a mortgage on a share of the property, usually between 25%-75%, though sometimes as low as 10%.
You will also pay rent on the remaining share owned by the landlord or building society. Your monthly payments will consist of mortgage payments on your owned share and rent on the landlord’s share.
To be eligible for Shared Ownership in Bristol, you must meet the following criteria:
Shared Ownership is primarily aimed at first time buyers in Bristol but is also accessible to existing homeowners.
Once you have qualified for the Shared Ownership Scheme, you can begin your mortgage process.
With Shared Ownership in Bristol, you will still need to find a suitable mortgage product based on your share of the property. This is where we come in!
Your mortgage advisor in Bristol will search through thousands of mortgages on your behalf to find the perfect mortgage deal for your personal and financial situation.
Once we find a tailor-made product for your Shared Ownership property, we can begin preparing your final mortgage application.
Speak to a Shared Ownership Mortgage Advisor – It’s Free!
Send a message, ask a question or arrange a callback with one our mortgage advisors.
Right to Buy in Bristol helps eligible council and housing association tenants purchase their homes at a discounted rate.
Discounts can rise up to £102,400 outside of London. This discount is available if you have been a secure tenant and a public sector tenant for at least three years.
This scheme is designed to make homeownership more accessible for individuals who might not otherwise afford it.
To be eligible for the Right to Buy Scheme, the following conditions must be met:
To start the application, tenants need to complete the Right to Buy application form (RTB1) and submit it to their landlord.
The landlord has up to four weeks (or eight weeks if the tenancy has been for less than three years) to respond and confirm eligibility.
If the application is approved, the landlord will send an offer notice detailing the property’s market value, the discount applied, and the price at which it can be bought. Tenants typically have 12 weeks to decide whether to proceed with the purchase.
During this period, it is advisable to speak with a mortgage advisor to arrange your Right to Buy mortgage in Bristol. Once all preparations are complete, tenants can proceed to complete the purchase, becoming homeowners under the Right to Buy Scheme.
Have a Question About Right to Buy Mortgages?
Send a message, ask a question or arrange a callback with one our mortgage advisors.
The Mortgage Guarantee Scheme is a government-backed initiative that enables homebuyers to purchase with a 5% deposit.
Taking out a mortgage with a 5% deposit allows homebuyers to access a 95% LTV Mortgage.
The scheme is accessible to both first time buyers in Bristol and existing homeowners, making property ownership more accessible and enabling a wider range of individuals to step onto the property ladder.
To be eligible for the Mortgage Guarantee Scheme, you must meet the following criteria:
The Mortgage Guarantee Scheme is designed to help individuals purchase a home with a smaller deposit, making homeownership more attainable.
The process begins by finding a suitable property within the UK, ensuring it does not exceed the £600,000 limit set by the scheme. Once you have found a property you want to make an offer on, the next step is to secure a mortgage. You will need to ensure that you have a deposit of at least 5% of the property’s value.
Next, you must prepare your mortgage application. The simplest way to do this is through a mortgage broker. They will arrange your mortgage and complete your application for you, ensuring a smooth process.
You will then undergo a thorough credit check and assess your financial situation to ensure you meet the criteria. If approved, the government provides a guarantee to the lender for a portion of the mortgage, reducing the lender’s risk and encouraging them to offer loans to those with smaller deposits.
Once the mortgage is secured, a mortgage broker in Bristol can then proceed with the usual steps of purchasing a home, such as hiring a solicitor, conducting surveys, and finalising the purchase.
Have a 5% Deposit?
If you have a 5% deposit, you may be eligible for a mortgage under the Mortgage Guarantee Scheme.
The Lifetime ISA, also known as LISA, is a type of savings account where individuals can save for their first home or retirement.
In each tax year, you can save up to £4,000 in your Lifetime ISA. This cap is in place because the government tops up your savings by 25% each year. Thus, if you maximise your contributions at £4,000, the government will generously add an additional £1,000 to your account.
Even if you do not manage to reach the savings cap, the government will still provide a 25% bonus on what you’ve managed to save.
If you are struggling to save for your first mortgage in Bristol, this scheme is perfect for you!
To open a Lifetime ISA account, you need to meet the criteria before you qualify:
Once you have saved enough for your deposit, it is important to know that you should not withdraw from your Lifetime ISA.
Withdrawing at any point from the Lifetime ISA will result in a 25% withdrawal fee. If you want to use the funds to buy your first home, you need to contact the bank where your LISA account is held, and they can arrange for the funds to be released.
When speaking with a mortgage broker in Bristol, they can liaise with the bank on your behalf if this is something that you need help with. Once the bank has accepted your withdrawal request, we can begin finding the perfect mortgage for your personal and financial situation.
Got Your Lifetime ISA Savings Ready?
If you have your LISA savings ready and need help finding the perfect mortgage for your new home, we’re here to help.
The Forces Help to Buy Scheme is a government-backed initiative designed to help armed forces members purchase their first home or move to a new property.
The Forces Help to Buy Scheme offers service members in Bristol an interest-free loan of up to 50% of their annual salary, capped at £25,000. This loan can be utilised for covering a deposit and related expenses associated with purchasing a home.
The scheme is only accessible to regular service personnel who have served for at least 12 months. The loan is repaid over a 10-year period through payroll deductions.
The funds acquired through this scheme can be employed for various purposes, including buying a new home, relocating closer to the place of work, adapting a residence for medical requirements, or extending a property to accommodate changing family needs.
The Forces Help to Buy Scheme is available to personnel who:
Buying a home through the Forces Help to Buy Scheme involves a straightforward process designed to assist military personnel in achieving homeownership.
Eligible service members can apply for an interest-free loan of up to 50% of their annual salary, capped at £25,000, to cover a deposit and associated expenses.
To begin the process, applicants must ensure they meet the eligibility criteria. Once eligibility is confirmed, service members can apply for the loan.
The application typically involves providing documentation to verify service history and financial status.
Upon approval, the loan is repaid over ten years through payroll deductions. This scheme offers military personnel a valuable opportunity to take significant steps towards homeownership, providing financial support and guidance throughout the process.
Have a Question for Our Mortgage Advisors?
If are looking to utilise any of these schemes and want further advice from an expert, don’t hesitate to get in touch.
If you want further clarification on any of the schemes mentioned above, make sure to reach out to our mortgage advisors in Bristol.
We have been helping homebuyers in Bristol achieve their mortgage goals for over 20 years! Having come across thousands of different mortgage scenarios, we are confident that we will be able to help you through your mortgage journey.
Book a free mortgage appointment online and speak to our mortgage advisors in Bristol about your situation and mortgage goals today.
The Shared Ownership Scheme is a government initiative in the UK designed to help individuals enter the property market, including those in Bristol. It is open to permanent UK residents who are either first time buyers or previous homeowners facing difficulties in purchasing a new home.
To qualify, your household income must be below £80,000, and the property you are buying in Bristol will typically be a leasehold property. This means you will own the home for a specified period of time.
Through the Shared Ownership Scheme, you can buy a portion of the property (usually between 25-75%) using a mortgage, while the remaining portion is rented. The rent, which may include service charges and ground rent, is typically lower than the market value and paid to a housing association.
Important updates were made to the Shared Ownership Scheme in April 2021 as part of the government’s Affordable Homes Programme. These changes brought some key modifications to how the scheme operates.
Previously, the minimum share you could purchase in a property was 25%. Under the updated rules, in some cases, it can now be as low as 10%.
Additionally, when buying additional shares in the property, you are no longer limited to minimum increments of 5-10%. Instead, you have the flexibility to purchase shares in 1% instalments.
Furthermore, the fees associated with buying these additional shares have been reduced. Additionally, for the first 10 years of ownership, the responsibility for maintenance and repair costs now falls on the landlord rather than the homeowner.
If you obtained a Shared Ownership Mortgage in Bristol before these changes were implemented, it is possible that these new rules may apply to you moving forward. It is always advisable to confirm the specifics with your mortgage provider, as individual cases may vary.
Before proceeding with the mortgage process, it is crucial to determine if you meet the eligibility criteria for Shared Ownership in Bristol. To do this, you should contact your local Help to Buy agent in the area where you intend to purchase.
During your conversation with the Help to Buy agent, they will likely require specific information from you. This may include details about your income, budget, preferred location, and credit history. Once your eligibility is confirmed, you can proceed with applying for your mortgage.
To navigate this process effectively, it is advisable to consult with a mortgage broker in Bristol. Not all mortgage lenders offer products for individuals utilising Shared Ownership in Bristol.
The amount you can borrow will typically be based on factors such as your income and associated fees, including rent payments.
Like any mortgage option, Shared Ownership Mortgages in Bristol have their advantages and disadvantages. It’s important to consider these factors before making a decision.
Firstly, not all mortgage lenders offer mortgages specifically for Shared Ownership in Bristol. That said, there are still many lenders, including some on our panel, who do offer these types of mortgages. This provides options for potential borrowers.
One of the benefits of a Shared Ownership Mortgage in Bristol is the potential for long-term stability. Through this scheme, you can become both an owner and occupier of a property, offering a sense of security.
Saving for a deposit can be challenging, but Shared Ownership Mortgages in Bristol typically require lower deposits compared to open market purchases. This makes homeownership more accessible, especially for individuals with lower wages.
It’s important to note that regardless of the share you own, you will be responsible for paying 100% of the ground rent and service charges associated with the property. Over time, you can participate in “staircasing” to increase your share ownership until you fully own the property.
At that point, you no longer pay rent, but your mortgage, ground rent, and service charges still apply. Keep in mind that once your owned share exceeds 80%, you may need to pay Stamp Duty on the entire property value, although exemptions may apply for first time buyers in Bristol.
Despite the potential costs, monthly mortgage payments for Shared Ownership Mortgages in Bristol can be more affordable than traditional mortgages or private renting.
It’s important to consider that as a part-owner, you will need permission from the housing provider before making any structural changes to the property. This requirement limits some of the freedom you would have if you owned the property outright.
When you own a home through a Shared Ownership Mortgage in Bristol, there are specific considerations if you decide to sell and move elsewhere.
The ability to sell your home with a Shared Ownership Mortgage in Bristol depends on the percentage of the property you own in shares. Typically, you need to own 100% of the property before you can proceed with selling it.
It’s important to be aware that the housing association you partnered with will usually have “first refusal” rights for the first 21 years after your purchase. This means they have the legal right to make an offer to buy the property themselves before you can put it on the open market.
If you do not currently own 100% of the property, you will need to explore the option of purchasing the remaining shares in order to become the sole owner before proceeding with the sale.
A Shared Ownership Mortgage in Bristol is a great option for first time buyers in Bristol who have limited savings for a deposit but still want to step onto the property ladder. This mortgage scheme can help make your homeownership dreams a reality.
It’s important to understand that navigating the process of a Shared Ownership Mortgage in Bristol can be complex, and there are various fees and contractual details to consider. It’s crucial to be fully prepared and informed before proceeding.
Ultimately, the decision to pursue a Shared Ownership Mortgage is a personal one. To ensure you are well-prepared and have all the necessary information, it’s advisable to schedule a free mortgage appointment with a trusted mortgage broker in Bristol.
They can provide guidance and assist you in preparing for this opportunity. For further information about the Shared Ownership Mortgage Scheme, you can visit the government’s OwnYourHome website, which offers more details and resources.
Help to Buy mortgages in Bristol was introduced in the 2010’s, off the back of the UK government’ previous FirstBuy Scheme. With a series of pre-existing and new schemes placed under that banner, it was designed to help first time buyers get onto the property ladder.
Over the years we have seen schemes under this banner disappear, whilst others have carried on without that branding. The most popular and well-known of these was the Help to Buy Equity Loan Scheme, which was closed to new applicants towards the end of 2022.
What this means is that first time buyers are no longer able to use a Help to Buy in Bristol or anywhere in the UK, though this doesn’t necessarily mean that support for home buyers has ended. There are still a variety of schemes that can help to buy in Bristol!
Shared Ownership mortgages in Bristol was also brought in as a way of helping applicants to purchase their home as only a percentage, rather than the full house, with the remaining percentage being paid as a rental amount to a local authority.
Typically speaking you will own between 25-75% of the property you are looking to purchase, with the percentage that is remaining being owned by a local council or housing association (known as a local authority).
This mortgage schemes works in a way where you will be paying back your monthly mortgage payments, but also a rental fee per month to the local authority, which means that you are paying 100% of the ground rent and service charge on your new home (even if you own the smallest amount.)
The good news is that this rental charge will not have interest, generally making it cheaper than paying the full mortgage amount. If you come into more money as your term progresses or if your property increases in value, you can increase your shares.
The Armed Forces Help to Buy scheme was brought forward back in 2014 after the vast ‘success’ of the Help to Buy Equity Loan Scheme (which no longer insists) after the credit crunch.
This government ran scheme was created with the aim to build upon the foundations of the original Help to Buy Scheme, with a view to help members of the Armed Forces get onto the property ladder.
If you match the criteria for the Armed Forces Help to Buy Scheme, this is something that could prove to be incredibly advantageous when you are looking to get onto the property ladder as a first time buyer in Bristol.
The government has thankfully rolled this into an enduring policy and we here at Bristolmoneyman genuinely hope it stays around, as the scheme is massively beneficial to Armed Forces members who want to buy their first home.
The Lifetime ISA, whilst technically not a Help to Buy Scheme, is a very helpful scheme that often slips people’s minds. It’s not high on everyone’s priority as a go-to scheme, though it could prove to be the scheme that helps you buy your home as a first time buyer in Bristol.
A Lifetime ISA is pretty much a savings account where your money is able to grow, completely tax free. You are also provided with a government top-up of an additional 25%!
This means that if you can put the maximum £4,000 in savings each year, you would receive a much welcomed and rather handy £1,000 bonus amount in your savings, to use later down the line.
In order to access this type of mortgage scheme, you have to meet rather specific mortgage lending criteria, which our dedicated mortgage advisors in Bristol can discuss with you. All of the information on this scheme is available on the government Lifetime ISA website.
fter the introduction of the Help-to-Buy Scheme in Bristol, a large number of home builders decided it best practice to start selling their newly built houses on a leasehold basis, as opposed to a freehold one. What does this mean exactly?
Well, the basic overview is that you own the property, but the land on which your property is on, is owned by the freeholder. Generally these leases are for hundreds of years, usually beyond the lifetime of the original leaseholder.
The catch with Leaseholds, is that you only own the property, not the land. This means you may have to pay ground rent, various service fees and at the end of your term, if the lease has not been extended, the freeholder takes back control of the property.
Regarding the end of the lease and the service charges, you should always have the right to extend if you wish and challenge any fee changes, though for more clarity it’s always worth speaking to a Conveyancing Solicitor, as it’s their job to cover the legalities of property.
Some of the fees can fluctuate 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, to ensure it is fair.
For the length of your term, yes, you own the property. As explained, the freeholder may be able to take their property back at the end of a term, but if your term is taken out over the course of a few hundred years, that property is effectively yours for the rest of your life.
One area that may require some thought, is if you were planning to make any home extensions or improvements. Whilst this may not always be the case with every freeholder, the majority will require you to seek permission for any changes that take place on their land.
Obtaining a mortgage on a leasehold is an interesting one. Not all lenders will accept this kind of deal, however those who do usually will only accept it if your term is at least a minimum of 60 years. The reason for this is down to resalability 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 with the freeholder via a legal representative.
One of the big issues around the property market right now, and has been for a few years, is something known in the industry as “land-banking”. This refers to some freeholders who are sitting on their land, whether property is finished or unfinished and despite the need for more homes in the UK, purely because there have been changes to the market and they’re waiting for a chance to make lots of profit.
As you would expect, this kind of practice is frowned upon by most, seeing it as unfair and leading for many to request that the government abolish leasehold altogether, as a means of avoiding this going forward.
Coupled with the service fees, 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 a viable option for you.
If you are looking at leasehold houses and debating whether to buy one, you should first & foremost speak to your Conveyancing Solicitor in regards to the lease and other legalities.
It’s very easy to get carried away with the excitement of buying a home but you need to also realise that this is a major investment decision that you need to think about it very carefully. If you would like to get the ball rolling on a leasehold house mortgage, please Get in Touch.
Making an initial step onto the property ladder for the first time, or taking the next step once your fixed term ends, can make you feel a little nervous from time to time.
There are lots of different routes that homeowners and home buyers can take, but if you can help it, it would be ideal to get it right the first time, especially when you’re dealing with a large amount of money.
Of course, we are strongly in the belief that our service as an open and honest mortgage broker in Bristol, will be beneficial to anyone who is going through their mortgage process, especially if you are a first-time buyer in Bristol.
Whilst we have confidence in our ability to help out our customers, we are also fully aware that it is not necessarily for everyone. Some may even be unsure of how exactly we can help.
With this in mind, we have compiled a balanced overview of why in some cases you might be better off getting in touch with a mortgage broker in Bristol, and how in some other cases, going direct might be your best choice.
It is the opinion of many, that you are a lot more likely to save some money by going directly to the bank and finding a mortgage deal yourself. There is indeed merit to this, as a mortgage broker in Bristol may charge you a fee, though this is circumstantial and depends on who you speak to.
If you are already experienced in finding your own mortgage, have a pretty simple case and have a knowledge of lender criteria, going it alone will probably be easier and more cost-effective.
Where a mortgage broker stands out, is the ability to help people with complex cases or those who don’t understand lender criteria.
Without the correct, up-to-date knowledge, you could possibly end up with a bad deal, or even being unable to successfully apply for a mortgage deal. In any case, this could cost you a lot of money or damage your credit score. The latter would in turn hinder your chances of applying for a mortgage at any point in the future.
A dedicated mortgage advisor in Bristol will always make sure that they get their recommendation right the first time, at the cheapest deal that is available to you. Again, this may entail you having to pay a service fee, though it will likely save you a lot more money in the long term.
Another point of view that customers who are older may think is a benefit of going to the bank directly, is the way you used to be able to get a mortgage. Prior to technology and online banking becoming a big deal, generally you would be a loyal customer of a local branch, typically speaking with the same members of staff.
When you wanted to apply for a mortgage, you would converse with the bank manager themselves. They would “know your finances like the back of their hand”, and would be the ones to personally approve a mortgage for you. Times have changed though, and credit scoring is now done via digital means.
The bank manager will no longer personally go through your case. Instead, your information will be put against a complex online system, to find out if you qualify for that mortgage. Nowadays, everyone gets the same chance as each other, no matter who your bank is.
Relating to the previous point, many are in the belief that there are better, exclusive deals only by going to the lender direct. Once again, there is an element of truth to this, but it is only part of the story. See, a lender can indeed offer great deals, but only deals that are from their own company.
One of the main problems here is that not all mortgage lenders are actually banks, meaning there are lots of options outside of what you are familiar with. The best deal you could get with your bank, might not be the best deal overall that you could’ve had access to.
That’s another benefit of enquiring for mortgage advice in Bristol. A trusted and experienced mortgage advisor will be able to take a look at your case, and have you matched up with a suitable deal from one of our panel of lenders, rather than one place.
It’s also worth mentioning that there may also be deals that can only be found with a mortgage broker in Bristol. Regardless of if you’re a first-time buyer, are considering your options for a remortgage in Bristol or have a complex case, a mortgage broker will have more options for you.
Following on from the 2007-08 credit crunch, the mortgage market was in dire need of a change. As was outlined in the 2014 Mortgage Market Review, lenders no longer had the ability to sell mortgages to customers on a non-advised basis.
This meant that you couldn’t just approach the bank, tell them you want a mortgage and be approved without any prior checks. You also couldn’t obtain a mortgage from any member of staff, as this used to happen regularly, whether they were qualified or not.
Further to this, these changes also introduced consumer protection, that you otherwise wouldn’t have gotten from the bank.
You now had the right to make a complaint to the Financial Ombudsman if you felt mis-advised for one reason or another. You also have the ability to make a claim via the Financial Services Compensation Scheme.
This is positive thing for both mortgage brokers and mortgage lender alike, as this means no matter who you choose to speak to or what your circumstances are, you’ll be safe, secure and advised professionally.
An area where a mortgage lender has the disadvantage, is that oftentimes it can quite literally take months to speak book an appointment. Once you can eventually speak to someone and kickstart your journey, you’re not always guaranteed to be kept up-to-date about your case progression.
A unique selling point here at Bristolmoneyman, is that we are able to speak with customers at a time that is convenient to them. Our mortgage advisors in Bristol work from early until late, 7 days a week, including weekends. We may also work on some bank holidays too!
If you’re quick enough and lucky enough, you might find that you can book an appointment on the same day, though you don’t always have to do that. If you would like to speak with someone in a few days time, you have the freedom to book a slot in advance!
We are here at time slots that best suit your lifestyle. If you work 9-5 and want to speak with someone in the evening, we can do that too! Using our online booking feature, it has truly never been easier to get in touch with a qualified mortgage advisor!
In addition to this, we are proud of our ability to be responsive with our customers. No matter what stage of your mortgage journey you’re in, we will always make sure you’re up-to-date. If your case changes at any point, your advisor will inform you as soon as they can.
It’s because of expert mortgage brokers in Bristol like us, who are able to offer a high level of customer service, that the public opinion of mortgage brokers has differed over the years. This has led to more and more people getting in touch with a local mortgage expert, instead of going to a big high street bank.
Sometimes a mortgage case may be a little more complex than the average case. Common examples of this that we have come across over the years, include (but are not limited to);
In the past, mortgage lenders were able to easily compete, by offering better deals than the others. Times have changed though, and now the main difference in choosing a deal, is whether or not you match their strict criteria.
A deal could be cheaper, but you may not qualify for it. The mortgage lender will perform either a hard credit search (leaves a footprint on your credit file) or soft credit search ( this leaves less of a footprint on your credit file), to see if you pass eligibility checks for that mortgage.
If you apply for a mortgage with a lender and are declined an agreement in principle, this will likely cause harm to your credit file. Worst of all, you probably will not be given a reason for why you were declined, which can be understandably disappointing and frustrating.
On the other hand, a trusted mortgage broker in Bristol will be able to take a look at your case beforehand, making sure everything is correct and prepared, informing you of any other steps you should take to better your chances of being accepted for the mortgage.
Using the lenders that we have on panel, you’ll be matched up with deals that you could be eligible for and we’ll look to get you agreed in principle. Obtaining your agreement in principle through Bristolmoneyman typically takes no more than 24 hours of your free mortgage appointment with one of our advisors.
Of course, this still doesn’t mean you are certain to receive an AIP, nor does it guarantee that you will get a mortgage, but it is a lot better for your credit file to have an expert analyse it beforehand. As expert mortgage advisors in Bristol, we always look to make the right recommendation first time.
At the end of the day , it’s your choice. As you can tell from the information above, there are both pros and cons to choosing a mortgage broker in Bristol. Conversely, there are also a lot of pros and cons to going direct with a lender. It all comes down to how quick of a service you would like, and how secure you want to be on your journey.
As a trusted mortgage broker in Bristol, led by 20+ year industry expert Malcolm Davidson, we have helped thousands of customers to achieve their mortgage goals. From first time buyers in Bristol taking a step onto the property ladder, to people reaching the end of their initial fixed period, looking to remortgage in Bristol, it’s safe to say we’ve seen it all.
To get in touch with a responsive, open & honest, FCA regulated mortgage team of experts, feel free to book yourself in for a free mortgage appointment or remortgage review, with a member of our amazing mortgage advice team. We’re here to help with all your concerns and queries during your process, with time slots that are convenient to you, subject to availability.
If you would like to learn more about our service, take a look at our genuine customer reviews. They are an amazing reflection of the service levels we provide our customers regularly. If you would like to learn more about the mortgage world, take a look at our YouTube Channel, MoneymanTV.
Once you’ve saved up for your money for a mortgage, the next step is preparation. You need to prepare for your mortgage application and get in a position where you are ready to start your process. If you are a first time buyer in Bristol, this guide will definitely help you progress with your mortgage application. Also, if you are Remortgaging or moving home in Bristol, you will still benefit from this article as it features some useful tips and tricks to help fast track your mortgage application.
One of the first things that you should obtain during the preparation process is an up-to-date credit report. Having an up-to-date credit report is essential for your mortgage application; ideally, you should try and get yours arranged prior to approaching a Mortgage Broker in Bristol. Your report will be reviewed by your Mortgage Advisor in Bristol before passing it onto the correct lender.
Another thing that you should get ready is an agreement in principle. You need one to make an offer on a property!
If you want a fully credit-checked agreement in principle within 24 hours of your application, you should get in touch with us. As an experienced Mortgage Broker in Bristol, we can often turn around an agreement in principle on the same day of your application.
In terms of proving who you are you’ll need to produce a photo ID. Most customers use a Driving license or passport for this element. You can’t use a Driving Licence for ID though if you are also using it for proof of address. If you are a non-UK national working over here on a Visa, you’ll need to produce that too.
When looking at proof of ID, the required documents will have to be photo identification such as a Driving Licence or Passport – though if you’re using one for proof of ID then it can’t be used as a proof of address. If you are a non-UK national working in England on a Visa then this will also need to be presented.
In addition to proof of identification, you will also be required to prove where you live. This is usually in the form of a utility bill or bank statement within the last 3 months.
Your bank statements should reflect your income and regular expenditures. It will be displeasure to Lenders if they see gambling transactions on your account and they will also not be happy if you are seen to have surpassed an agreed overdraft limit or your direct debits have bounced regularly. The key factor is to get ahead of the game and get prepared as best as you can.
Not all lenders will ask to see your Bank Statements but it is an option that is available to them if they choose to utilize it – regardless of whether they do ask for your bank statements, they want to be confident that you take your finances seriously. The bank statements which you produce should consist if your salary going in and your bills going out.
A vital step in the mortgage application is evidencing your deposit for Anti-Money Laundering purposes. To help the process it is best not to move finances around your accounts too much as this will make it a lot more difficult and may delay the process.
Lenders like to see that you are saving your money responsibly, but that doesn’t exempt you from having to account for any large recent deposits into your accounts. If you have been gifted a deposit, then there will need to be written confirmation stating it’s a non-refundable gift.
The most pivotal point of the application is proving your income. If you’re in employment then sufficient evidence would be your last 3 months’ payslips, though some lenders will also ask for your most recent P60. Lenders will take into account regular overtime, commission, shift allowance and bonuses. Additionally, extra earnings may also be considered with some lenders such as part-time jobs or self-employment.
Many applicants are Self Employed in Bristol nowadays – if you are a self-employed applicant then you may mean you will need to acquire your Accounts’ help to request your last two or three years’ proof of earnings from the Revenue. If you submit your own accounts then feel free to get in touch and we will be happy to advise you on how to go about downloading from the Government Gateway.
By working out an estimate of your expected outgoings after you move house means you can gain an idea of how much disposable income will be available to you to pay your mortgage after such things as regular expenditures, council tax, and utility bills have been paid out from your account. To help you with this, we are happy to send you our version of a Budget Planner to get you started.
As seen, there are many steps you must take in order to prepare fully for your mortgage application deeming it not an easy feat but it doesn’t mean you should worry. If you approach the mortgage application with due timing and an organized matter along with a Mortgage Broker in Bristol, you will be in safe hands.
As a dedicated mortgage broker in Bristol, our job is to support you through your mortgage process from beginning to end, making it a stress-free and easy-going experience. We aim to find you the most suitable mortgage product tailored to your specific financial and personal circumstances.
We feel the customer should know exactly how our service works and what different order parts of the process come in. So, to give you an insight into our process and how it works, we have put together a handy guide that we think you will find helpful.
First of all, once you have contact and speak to one of our responsive teams or book yourself in for a free mortgage appointment, they will take some details from you. This is to help build a profile to get a picture of who you are and what you’re looking to do. All this information will help us, partner, you up with a suitable mortgage advisor in Bristol.
During your free consultation with your dedicated advisor, they will ask you a few more questions. This will give them a closer look into your mortgage needs. From here on out, this advisor will help you find the ideal mortgage deal for you!
If they manage to find you a great deal that benefits both your personal and financial situation and you’re happy to take it up, we are ready to continue to step 3.
This step continues right after your consultation. Your advisor will arrange a mortgage agreement in principle (AIP) for you within 24-hours of your consultation.
Having an agreement in principle in place early on in the process is crucial. It shows a seller that a lender is willing to let you borrow from them. Of course, this can provide evidential documents to back up your income and credit score.
During this part of the process, if you haven’t already found a home to make an offer on. You can start hunting for houses with your agreement in principle to back up any offers.
After your agreement in principle is in place, we’ll begin collecting evidential documents from you to back up your mortgage application. This will include things like payslips, bank statements, photographic ID. These documents and the amount that you need to supply do vary if you are a self-employed applicant.
As soon as everything looks good on our end, we can move to the mortgage application submission stage!
We will only submit your mortgage application if we know that you’ll pass your lender’s credit scoring criteria; we don’t want it to be declined. Once your application is with your potential lender, it’s just a waiting game now. During this time, we’ll be regularly informing you on the progress of your mortgage application.
As soon as we get the green light, we will be in touch straight away to give you the confirmation that you’ve had your mortgage application accepted. Congratulations, you’re now on the road to moving into your new home!
At Bristolmoneyman, we want you to have the most straightforward mortgage process possible and come out with a great mortgage deal. However, we also deal with complex cases, so if you are struggling to get a mortgage through the traditional mortgage route, our service is in place to offer help when needed.
Our mortgage advisors in Bristol have been helping customers overcome complex cases for over 20 years now. We have had customers in the past who been turned away from their bank, and we’ve still been able to get them a mortgage offer. We love a good challenge, and our team would love to help anyone struggling with a complicated mortgage situation.
Now that you’ve learnt more about our service, it’s your job to get in touch. We are available 7 days a week. Book your free mortgage appointment today to speak to an experienced Mortgage Advisor in Bristol today.
Customer service means everything to us, and we want to ensure that you’re delighted with every part of our service. But, of course, it would help if you took advantage of our free consultation. So whether you’re a first time buyer in Bristol or moving home in Bristol, we recommend getting in touch now.
Saving for a mortgage deposit can be challenging. We recommend all first time buyer in Bristol save as much as possible to put yourself in the best position. For example, if you’ve seen a house in Bristol on the market for £300,000, the minimum you will need is 5% of the property’s value for the deposit, which amounts to £15,000. Here’s how it works and some ways that can help you save:
A mortgage deposit is the amount of money you pay upfront towards the purchase of a home, with the remainder being covered by your mortgage.
Deposits can come from various sources, such as your savings, a gift from family, an inheritance, or the proceeds from selling your current property if you’re moving home in Bristol.
The minimum deposit required for a mortgage is 5%, which would be a 95% mortgage. Depending on your circumstances and the property you are buying, you may need a higher deposit (e.g. 10% mortgage deposit, and a 90% mortgage).
Loan to Value (LTV) is a key metric used to measure the ratio of the loan amount to the value or purchase price of a property, whichever is lower. Expressed as a percentage, LTV helps lenders assess the risk associated with the mortgage.
For example, if you’re buying a property in Bristol for £300,000 with a £15,000 deposit, your deposit covers 5% of the property price. The remaining 95% will be financed through a mortgage, resulting in a 95% LTV mortgage.
Useful schemes you may be able to use include the shared ownership scheme, the right to buy and any government backed schemes.
There are also options such as guarantor mortgages, gifted deposit mortgage options and buying at a discounted rate from a family member or landlord to help first time buyers in Bristol.
A gifted deposit involves a family member or close friend providing the whole or part of funds needed for a deposit on a property purchase. Mortgage lenders will want an explanation of where the money is coming from.
A gifted deposit letter will contain a full list of key details and declarations that prove the overall intention and source of funds are legitimate.
For a more in-depth discussion regarding gifted deposit mortgages, it is advisable to speak with a mortgage broker in Bristol. We can help ensure that all parties involved fully understand their responsibilities and obligations related to gifted deposits.
It’s always been necessary to put down a larger deposit for Buy to Lets and most lenders at the moment are looking for 25%.
If you are purchasing as a sitting tenant at a discount from the open market value, from a family member or if you qualify for a discount under the Right to Buy scheme then you usually wouldn’t need to put any of your own money in as the equity from the discount can be used as your deposit.
It’s very important that you plan your mortgage journey in advance. There are various steps to take before jumping into offers and full mortgage applications to put you ahead of other first time buyers in Bristol.
One of these that should be at the top of your list is getting a mortgage agreement in principle, before searching for properties. Sometimes your plans might not go to plan. Unfortunately, even the most meticulous planners have a challenging process.
Some of these include poor credit, banks not lending enough, or even couples separating mid-process. The latter is not something that people can always prepare for, and it can cause you to take out a mortgage as a sole applicant, with very little time to plan again.
As mentioned earlier, planning is important because you can often find that your mortgage process will face many different obstacles. Having worked in the industry for over 20 years we have encountered many mortgage scenarios.
Below are some common problems we have found customers encounter:
By preparing yourself in enough time for all eventualities, you can potentially avoid as many of them as possible, ensuring a much smoother service. There are some inevitable cases, that’s where a mortgage broker in Bristol can often lend a helping hand.
Saving for a deposit can be quite difficult for some, especially when you try to make sure you achieve all your mortgage goals. This is even more so for first time buyers in Bristol who are renting and trying to save for their deposit simultaneously.
To get on the property ladder, you usually need at least 5% deposit, although this may be higher depending on circumstances. The question is, while this seems small, that can actually be a large amount of money, depending on the property price. You generally will not know the exact amount until you find a property.
Sometimes, when you have trouble making up for this percentage, you can get financial support from your family or friends through a gifted deposit in Bristol. Also, you might be able to use one of the various Help to Buy Schemes in Bristol.
These are usually popular with many first time buyers in Bristol to get them onto the property ladder. There could be a mortgage scheme out there that is perfect for you and your circumstances.
Credit scores are a major factor in your mortgage application. If your credit score is in poor condition, you will be less likely to get a mortgage, perhaps even not being able to get one with decent interest rates and repayments, depending on how low it is and your situation.
Obviously, it all depends on why your score is so low. Having bad credit due to something like a CCJ or bankruptcy will reduce your chances greatly, with the length of time that has since passed being a factor in this too.
Check My File is a fantastic website we would recommend you use if you are wanting insight into your credit score. This allows you to get a copy of your credit report that our team can view completely free of charge.
Try it FREE for 30 days, then £14.99 a month – cancel online anytime.
When it comes to applying for a mortgage, it is important to look at how well you manage your finances. This is because mortgage lenders will conduct a thorough analysis of these, checking your bank statement, income and outgoings.
Gambling transactions are something that they will be searching for. Large and frequent expenses can make you look unreliable with your money and have a significant impact on your chances of getting a mortgage. We recommend holding back for a couple of months, to paint yourself in the best light.
If you find yourself lucky to get a gifted deposit for your mortgage. We also suggest that the gifter keeps the money in his account so that you don’t have big bank transfers that would otherwise look suspicious to a mortgage lender.
If you are self employed in Bristol, you may find that your process will be different, then an employed applicant. This is because you will need to provide different evidence.
The evidence you need to provide as a self employed applicant includes your review of the tax year and the last 2/3 years of accounts, to name a few. This depends on the mortgage lender you are going with, but more evidence may be required.
Through your mortgage journey, you may find a range of hurdles that could limit the quickness of your process or even stop it. Preparing for them in advance can put you in the best position if they happen.
A mortgage broker in Bristol like us will work hard to help you overcome these hurdles. We are here to support you 7 days a week, from early until late. Book online and benefit from expert mortgage advice in Bristol, today.
One of the primary factors in why home movers & first time buyers in Bristol use a Mortgage Broker in Bristol, is to help the process of buying a home go as quickly and as smoothly as it can go. For many, the home buying process can be a very stressful experience and for our customers, it’s a comforting relief to know they have got someone on their side to deal with the hard parts, with availability to answer any questions they may have.
Your dedicated Mortgage Advisor will work incredibly hard to try and ensure that you obtain the cheapest or at least most favourable mortgage outcome for your personal needs. This level of dedication and passion for our work applies no matter the mortgage type. Whether you’re making your first purchase, a second purchase or you wish to Remortgage, we put everything we have into our service, to ensure our customers have the best outcome available to them.
If you’re looking at taking out mortgage advice when buying a home, we would personally recommend talking to a Mortgage Advisor in Bristol as early on in the process as you can. Your trusted member of the Moneyman team will be able to help you work out roughly how much you’ll be able to pay per month, as well as how much you may be able to borrow.
Different lenders each have different criteria, so speaking to an expert in the field, with a wealth of knowledge surrounding these criteria, will be of a great benefit to you. If you know what you are able afford well in advance of making an application, it may help you avoid any potential future disappointment.
Communication and responsiveness are also a large part of what we do. We aim to ensure all of our customers are kept informed about the progress of their mortgage application by email, so you are fully aware of what is going on and where the process is headed next. If something ever goes wrong or you have any questions, we are always available at the end of the telephone, ready to help you out in any way we can.
A trusted and loyal Mortgage Broker will work for the customer and not the Lender. This is something that is important to remember throughout your process. Our team are firmly in your corner, sometimes having to
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Bristolmoneyman.com & Bristolmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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Bristolmoneyman.com & Bristolmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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