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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.
Whether you’re navigating the complexities of mortgages as a first time buyer in Bristol or you already have some prior experience with property ownership, the term “mortgage broker” may either ring a bell or remain a mystery to you.
Engaging a mortgage broker in Bristol, especially during a home move, can not only simplify your task but also alleviate the stress associated with the process.
Here, we’ll delve into the key distinctions between utilising a mortgage broker in Bristol and relying on your bank.
Opting for your bank in your mortgage quest means you won’t incur a broker fee, potentially saving you money. However, banks are limited to their in-house mortgage products, whereas a mortgage broker in Bristol can explore diverse lenders to uncover the best product for your needs.
As a mortgage broker in Bristol, we have access to a range of lenders, both high street and specialist, enabling us to seek out competitive mortgage options. During your complimentary mortgage appointment with us, we conduct a free affordability assessment to identify accessible deals for you.
High street banks are often known for extended waiting periods to secure an appointment with a mortgage advisor, posing inconvenience, especially after having an offer accepted on a property.
Mortgage brokers in Bristol, like ourselves, offer flexible availability, allowing you to schedule a mortgage appointment at your convenience, even offering same-day availability on occasion.
If your mortgage application faces rejection from a high street bank, there’s a likelihood that other similar banks may follow suit. Mortgage brokers, with access to various lenders, including specialists, can explore alternatives tailored to your personal and financial situation if you’ve faced rejection.
If credit issues are a concern, our mortgage advisors in Bristol can guide you on improving your credit score and restoring financial stability.
Banks and brokers share a similar turnaround time for obtaining an agreement in principle (AIP). Our mortgage advisors in Bristol can typically secure an AIP within 24 hours of your free mortgage appointment. If the AIP expires, simply reach out to us, and we can promptly renew it for you.
In terms of availability for queries or updates on your mortgage application, banks may not be readily accessible. On the other hand, contacting your mortgage advisor in Bristol is convenient, allowing you to receive quick responses and updates during the potentially stressful mortgage process.
As your dedicated mortgage broker in Bristol, our commitment is to guide you through every stage of your mortgage journey, regardless of your situation – whether you’re a first time buyer in Bristol or a buy-to-let landlord.
Our responsive service gives you the option to book a free mortgage appointment or arrange a call back online, putting you in control of your schedule. Alternatively, give our team at Bristolmoneyman a call, and we’ll connect you with one of our expert mortgage advisors in Bristol.
For first time buyers in Bristol, the process of purchasing a home can seem overwhelming. One of the key aspects to consider is saving for a mortgage deposit. In this article, we’ll discuss effective strategies to help you achieve your savings goal.
To determine how much you need to save for a mortgage, start by calculating your monthly disposable income. Subtract your expenses and monthly outgoings from your monthly income to estimate the amount you can allocate towards your mortgage savings. This will allow you to set realistic goals for your monthly savings.
Typically, when obtaining a mortgage from a high street lender, you’ll need to provide at least 5% of the property’s cost as a deposit. However, some first time buyers in Bristol aim to save a minimum of 20% or more. A larger deposit can lead to lower monthly payments and access to competitive mortgage deals with lower interest rates.
Additionally, it portrays you as a less risky borrower to lenders. To determine the exact amount you’ll need to borrow for a mortgage, consult with a mortgage advisor.
It’s also important to factor in the additional costs associated with buying a property. Consider setting aside some money for insurance or cover for yourself and your property, which can be provided by a mortgage and protection advisor.
As a first time buyer in Bristol, you may be eligible for various government schemes designed to assist with homeownership.
One such scheme is the Shared Ownership Scheme, which allows individuals who can’t afford a mortgage on 100% of the home to purchase a share of the property (typically between 10% and 75% of the home’s value) and make up the remaining share through rent.
Over time, you have the option to buy larger shares if you can afford to. For more information on these schemes, feel free to contact us or book a free mortgage appointment with one of our expert mortgage advisors in Bristol. You can also visit the government’s OwnYourHome website for further details.
A gifted deposit from a family member can significantly help you when purchasing your first home, potentially covering some or all of the required deposit. Unlike a loan, a gifted deposit does not need to be repaid.
Reviewing your outgoings is another effective way to save for a deposit. Take a closer look at your bills and subscriptions to identify any potential areas for cost savings. You may find cheaper deals for your mobile phone and broadband packages.
Additionally, reassess leisure services such as gym memberships or streaming services to determine if you’re getting your money’s worth or if there are more affordable alternatives available. By optimising your expenses, you’ll free up more funds to save towards your deposit.
Consider purchasing a property with a friend or partner as a viable option for getting on the property ladder and saving for a deposit. Buying with another person can expedite the savings process compared to relying solely on a single income.
However, it’s important to note that if one person defaults, the other individual may become responsible for the entire mortgage. There are different types of mortgages available for those buying with a friend or partner, including Joint Tenants and Tenants in Common. These options offer varying levels of ownership and flexibility in terms of selling or giving away shares of the property.
If you have bad credit, obtaining a mortgage in Bristol may still be possible, albeit with higher interest rates that may necessitate a larger deposit. In this case, it’s advisable to begin by improving your credit score. Here are some strategies to consider:
– Register on the Voter’s Roll: Being listed on the electoral roll demonstrates stability to lenders. Ensure that all information on the form is accurate, including your name and current address.
– Stay Within Your Credit Limit: Maxing out your credit card each month can negatively impact your credit score. It’s best to use a credit card and pay off the balance in full each month.
– Meet Payment Deadlines: Paying bills on time and in full showcases your responsibility as a borrower. Well-managed, older accounts can positively influence your credit score.
– Build a Credit History: Having a history of credit, such as car finances, credit cards, and bill payments, can help companies assess your creditworthiness.
– Close Unused Credit Accounts: Contact your credit card providers to close any unused accounts. While this may temporarily lower your credit score, it can prevent potential fraud.
– Separate Financial Ties: Being financially connected to a family member or ex-partner can sometimes have a negative impact on your credit score. Contact the credit reference agency to request the removal of such ties.
We’re here to support you throughout your mortgage journey. We offer free mortgage appointments with our mortgage advisors in Bristol, which you can easily book through our website’s “Get Started” process.
During these appointments, our experts will provide the guidance you need to achieve your mortgage goals.
Remember, saving for a mortgage deposit may seem challenging, but with the right strategies and professional support, you can make your dream of owning a home in Bristol a reality.
Are you in search of valuable mortgage tips and guidance to help you on your homeownership journey? Within this article, our objective is to tackle your most pressing questions and offer invaluable insights to empower you in confidently navigating the world of mortgages.
Whether you find yourself as a first time buyer in Bristol or are considering a remortgage in Bristol, rest assured that we have your needs covered. Let’s work together to transform your homeownership aspirations into reality!
Evaluating your borrowing potential stands as a pivotal stage within the mortgage journey. Consider factors such as your income, outgoings, and existing financial obligations. You have the option to utilise online mortgage calculators for a preliminary approximation.
However, for a bespoke and precise evaluation, it is recommended that you speak with a specialised mortgage advisor in Bristol. They can craft an assessment that aligns with your individual financial circumstances.
Armed with this knowledge, you’ll be well-equipped to make informed choices, putting you on the track to securing your dream mortgage.
Maintaining a high level of awareness concerning interest rates is a fundamental aspect of making well-informed decisions.
To achieve this, it’s important to stay on top of financial news, read reliable websites, or seek the guidance of experienced mortgage advisors in Bristol. They can offer you real-time updates on interest rates, ensuring you remain current with market dynamics.
Your capacity to remain informed about prevailing market trends empowers you to make astute choices throughout your mortgage expedition.
For additional insights and regular updates on this subject, don’t forget to explore our YouTube channel, MoneymanTV, where we frequently share monthly market updates. Stay connected with the latest trends and knowledge to steer your mortgage journey in the right direction.
Devoting time to explore various mortgage types is a prudent step on your homeownership journey. Among the options available are fixed-rate mortgages, adjustable-rate mortgages, and interest-only mortgages, each accompanied by its own unique features, advantages, and nuances.
To make a well-informed decision, it’s essential to embark on thorough research and consult with mortgage specialists.
By doing so, you can pinpoint the mortgage type that best aligns with your individual requirements and financial objectives, setting you on a path towards securing the ideal mortgage for your circumstances.
Building a strong credit score is paramount when it comes to securing advantageous mortgage terms. This involves a commitment to punctual bill payments, maintaining a low credit utilisation ratio, and diligently reviewing your credit report for any inaccuracies or inconsistencies.
In the event that you face challenges related to your credit, there are reputable agencies that can offer valuable help and guidance, aiding you in enhancing your credit standing and positioning yourself for more favourable mortgage opportunities.
When it comes to standard documentation for mortgage applications, you can expect to provide evidence of your income, identification, bank statements, and a comprehensive employment history.
For a more customised list of necessary documents, tailored specifically to your individual circumstances, it’s advisable to engage with mortgage lenders or experienced mortgage advisors in Bristol.
They possess the expertise to walk you through the documentation requirements, ensuring a seamless and efficient mortgage application process.
Both options, using a mortgage broker in Bristol like us or directly approaching a mortgage lender, have their unique advantages.
Opting for a mortgage broker grants you access to a wide range of lenders, allowing for in-depth comparisons to secure the most favourable offers. On the other hand, approaching a mortgage lender directly can establish a direct relationship between you and the lender.
We recommend taking into account your personal preferences, conducting thorough research, and seeking recommendations to make an informed decision that aligns with your specific needs and objectives.
It’s important to keep a keen eye on expenses that go beyond the mortgage amount, including arrangement fees, valuation fees, legal fees, and potential early repayment charges.
To gain a comprehensive understanding of all the costs involved, carefully review fee schedules provided by mortgage lenders and consult with financial professionals who can provide expert guidance on these matters.
Saving for a deposit requires discipline and meticulous planning. Begin by establishing a budget, identifying areas where you can trim unnecessary expense & investigate government schemes like Help to Buy in Bristol or Right to Buy in Bristol, each of which comes with its own set of eligibility criteria.
Furthermore, explore high-interest savings accounts or ISAs designed specifically for first time buyers in Bristol. These accounts can help expedite your savings process, bringing you closer to your homeownership goals.
An agreement in principle serves as an initial estimate of the mortgage amount a lender may be willing to offer, typically based on fundamental information provided by the applicant.
In contrast, a formal mortgage offer represents a legally binding document in which the lender commits to providing the loan, subject to certain predefined conditions.
The timeline for processing a mortgage application can be variable, with an average duration of several weeks to complete the entire process. Several factors come into play, including the type of property, your credit history, and how efficiently all required documents are submitted.
To enhance the efficiency of this process, it’s advisable to maintain close communication with your mortgage advisor and be prepared for potential delays that might arise.
Now armed with these important answers to your most pressing mortgage questions, you’re equipped to confidently set out on your mortgage journey.
Keep in mind the significance of consulting trustworthy mortgage advisors in Bristol, conducting comprehensive research, and maintaining a proactive approach every step of the way.
With these proactive measures, you’re poised to approach your homeownership aspirations with unwavering confidence, taking the necessary steps to transform them into a tangible reality!
This is an age-old question that we find ourselves asked about all the time from both existing homeowners and budding home buyers alike. The answer is always entirely dependent on how the market is performing at any one time.
In order to keep yourself up-to-date with how the market is currently performing, including any changes to interest rates, government schemes and more, take a look at our “Mortgage Market Update” playlist on YouTube. We regularly post mortgage market updates as and when news comes out.
Mortgage rates are basically just the standard rate of interest that a mortgage lender will look to charge you against your mortgages balance.
This interest rate will be a contributing factor to your overall monthly mortgage costs. If you have lower interest rates, it’s likely that your monthly mortgage payments will be much lower also.
There are numerous factors that will go towards determining your mortgage rates, some you can control, some you cannot.
One of these factors that you definitely will be able to have control over, are the personal aspects of qualifying for a mortgage. Things like what your credit score is or how much deposit you have saved and can put towards the purchase of a property.
Typically speaking, the lower the risk, the better the rates.
As an open & honest mortgage broker in Bristol, we have the ability to run through your case, looking to find the most suitable mortgage deal for your home ownership plans. Our trusted mortgage advisors in Bristol ae able to search across 1000s of deals, including specialist one, for you.
What it all boils down to though, is how the market is performing at that particular time, as well as the state of the economy and position of the Bank of England base rate. A well-performing economy will usually see a higher demand for both goods and services, including properties as well.
In turn, higher demand usually means that the Bank of England base rate will rise, which will also see mortgage rates following suit. This is because mortgage rates that are set by your mortgage lender, will be at a percentage sitting above the Bank of England base rate.
Whilst having a better performing economy would mean people can theoretically afford more, mortgage lenders don’t have unlimited funds.
What this means, is that when the Bank of England base rate goes up, the cost of borrowing for a mortgage lender will also go up, which in turn sees mortgage rates also increase to a point where a mortgage lender can cover the cost of their own borrowing.
When the economy isn’t performing too well, this all work completely the opposite.
People will typically be unable to afford as much, which means interest rates will have to come down as a way to try and entice potential customers onto the property ladder, with the promise of possibly lower monthly mortgage payments.
As we have discussed above, one of the primary factors that can impact your mortgage rates, is the Bank of England base rate. As a general rule, a mortgage lender will set their own rates at a percentage above the base rate. This means fluctuations can take place, as the base rate rises and falls periodically.
Another factor that can impact the Bank of England base rate and see it fluctuate, is inflation. The UK government have a specific target that they like to reach, in order to make sure the cost of living is affordable for everyone. Unfortunately, these targets are not always met.
In situations such as these, we may see the cost of living going up. Unlike the typical cause and effect of seeing a stronger economy meaning people can afford more, when this happens, many are left in financial positions that are less than favourable, struggling to get onto the property ladder.
This is also unfortunate news for homeowners who have fixed-rates that are coming to an end. Someone may have, for example, fixed in at an incredibly low percentage, only to come out of their fixed-rate and be set to inherit double what it was before.
Having the help of a mortgage broker in Bristol here, can be truly beneficial.
The Bank of England base rate, generally speaking, will always fluctuate, though it’s not often by much. Tracker mortgages are a type of mortgage that will mirror the Bank of England base rate, sitting at a percentage above it and fluctuating alongside it.
This can be a great mortgage type when interest rates are sitting rather low, though when the rates go up, you could see your mortgage payments changing suddenly, making this a mortgage type without guaranteed consistency.
Whilst tracker mortgages can still be great for some people (your mortgage advisor in Bristol will help you to determine which mortgage deal is best for you), some may argue that a better option could be a fixed-rate mortgage.
These are always the more popular options and allow for customers to lock-in to whatever the interest rate is at that time, for a chosen duration. For example, if you lock-in at a 4% interest rate for 5 years, even if within the next year it jumps up to 6%, you’re still only going to be paying 4%.
On the other hand, if you locked-in for 6% and then it dropped to 4%, you’d be paying more than other homeowners and home buyers would. This is why for many, we see them fixing in for 2-5 years, in order to gauge how rates are changing and to make sure they are always on the best mortgage deal.
When you’re in periods of economic uncertainty, fixed-rate mortgages can provide consistency and ease stress for homeowners. You will have the freedom to choose your own fixed-period duration, which as we said is usually 2-5 years, though we do see customers choosing 7 or even 10 year fixed-rates.
The possibility of coming out a fixed-period into higher interest rates, can actually lead many to remortgage in Bristol earlier than they otherwise would, paying an early repayment charge, to fix-in for a rate that, whilst higher than they had, is much less than it is projected to be by the time their deal ends.
The answer to this is entirely dependent on the way that interest rates possibly change, as well as how your personal circumstances also are set to change. As we have discussed above, there are also personal factors that can have an impact on how mortgage rates possibly change.
Home buyers who have higher deposits may be able to open themselves up to a lower loan-to-value, which in turn can allow them to access much lower rates of interest.
If you find that you are currently in that situation, having taken out a mortgage with lower interest rates, you may wish to take out a fixed-rate mortgage for 5, maybe 10 years, in order to truly reap the benefits of your lower interest rates.
Of course this very much depends on circumstance and 10 years is a long time to wait.
In 10 years, you could see lots of things change; Interest rates could drop significantly lower than you were able to fix-in for, meaning you are paying much more than you would have if you’d only fixed-in for 2 years, remortgaging onto the lower rates much sooner.
A trusted and experienced mortgage broker in Bristol will work to ensure you are well prepared for your mortgage process and help you to make an informed decision. Using our knowledge, we will do everything we can to help you succeed.
Interest rates can change when you least expect them to, depending on how the economy is performing, as well as the state of the market and the Bank of England base rate. Pairing this up with your own personal factors, you might be a little uncertain about what to do next.
By getting in touch with us for expert remortgage advice in Bristol if you’re nearing the end of your initial mortgage deal, or first time buyer mortgage advice in Bristol if this is your first time buying a property, you will have the help of a qualified mortgage advisor in Bristol, who will find you the best deal.
We always want the best for all of our customers, working alongside you to make sure you are well protected from potential future interest rate rises, if we can do so. If the cost of living is concerning to you, a fixed-rate mortgage might be your best option.
Book yourself in for a free mortgage appointment or remortgage review today, and we will see how we can help, recommending the most suitable mortgage option for you.
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.
The benchmarks for passing a credit score differs depending on the lender. Sometimes it can be easy; other times it can be strict and challenging to pass. If a lender likely has failed you, you might not have been told why you failed. In some cases, this is because it was a combination of little things, and in truth, they aren’t sure why you had been declined.
It’s at this moment where you will feel the advantages of a mortgage broker in Bristol. We are here to help you and guide you everywhere in the early stages, right through to the end of your mortgage journey. Beforehand, it is strongly recommended that you obtain a copy of your credit file to show your Mortgage Advisor in Bristol.
They will be able to go through it with you and try to match you with the most suitable lender for your situation. The more deposit you have available for you to put down, the easier your chances will be to pass a credit score for a mortgage.
There are things you are able to do to improve your credit score, such as using a credit card regularly (if you have one) and ideally paying off the balance in full each month. You will also need to be on the voters roll for the area of which you live. That one can often be overlooked but is incredibly helpful. You can also close down old bank accounts and credit and store cards that you have since stopped using.
If you fail one lender’s credit score, do not give up! There may still be another lender willing to accept you, though please be wary about having too many hard credit footprints registered against you, as too many hard searches can affect your credit score.
The different lenders have their own individual ways of calculating how much you can borrow. It’s entirely plausible that you could approach 10 different Lenders and each one give different answers. Some lenders are more generous than others depending on the circumstance, with some, for example, known to be fairer to those who are self-employed.
Some mortgage lenders can consider assessing 100% of an employee’s overtime and bonuses, though this is not the case with every lender. Depending on the lender, some will also accept “unearned” income such as tax credits, child benefit and maintenance.
A mortgage broker in Bristol who deals with First-Time Buyer Mortgage Advice in Bristol can approach several different lenders without the need for a credit check, in order to perform an affordability assessment. If you are looking to buy a home, we would highly recommend that you have an affordability assessment carried out before you start viewing properties to avoid potential disappointment in the future.
If you are Moving Home in Bristol, proving that you have maintained mortgage or rent payments in the past is not an immediate guarantee that you will pass a lender’s own affordability test.
All lenders have their own specific, strict mortgage lending criteria, with some being better than others in certain situations. Lenders look to carve out niches for themselves to fit into, as a means of attracting good quality mortgage borrowers who might not tick all of the right boxes for their competitors.
Some examples as to why your application has been declined for being outside of policy are:
An experienced Mortgage Broker in Bristol will use their experience of lenders and criteria tools to recommend the most suitable mortgage for you, based on your own personal circumstances. If your situation is a little more complex, then you should look for mortgage advice as being declined elsewhere may affect your chances of being accepted for a mortgage going forward.
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.
Yes, there is most likely an option where you can have two mortgages as there are many situations that require a person to have more than one mortgage. Our Mortgage Advisors in Bristol can typically help with this.
If you have equity in your home and are looking for a second mortgage to release some of this to fund a purchase, then we may be able to help.
This situation is known as a further advance. A further advance is when you borrow more from your current lender to fund something like home improvements or a second mortgage.
The amount that you can borrow from them will depend on the amount of equity in your property. Your lender will need strong evidence to prove that you can afford both mortgages. Our mortgage advisors in Bristol can access competitive second mortgage deals and options through our large panel of lenders.
If you are looking to move house but keep hold of your existing property with the view to let it out, we may be able to help. Your second mortgage will be a new residential one.
If you are exploring the options available to you of helping your children or grandchildren with getting on the property ladder, there are now many products that we can run through to achieve this.
If you are looking to purchase a Buy to Let our Mortgage Advisors in Bristol will advise you on the best way to go about this. You will get asked to produce a higher deposit for this than a residential mortgage.
Are you currently named on another mortgage and would like to purchase a new property? In any case, this is a situation that our Mortgage Advisors in Bristol come across regularly, mainly due to divorce or separation and we are often able to help.
Whatever your situation is to get a second mortgage. As an Experienced Mortgage Broker in Bristol, we can search 1000’s of mortgage deals on your behalf. Additionally, recommend the most suitable product for you based on your situation.
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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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