Tag Archives: mortgage

Understanding your credit score and credit file

When you apply for a mortgage or any form of credit ( credit card / personal loan etc ) the provider will always check your credit history – they do this by doing a credit search on your name and addresses which cover your financial history for the last six years.

Understanding your credit score

Credit Reference Agencies ( CRA )

Each Credit Reference Agency is sent information by lenders about the credit you have and how you manage it. Other information, such as public records like the electoral roll, are also sent to the CRAs and form part of your credit report. Once a CRA has enough information on you, they will generate your credit report and calculate your credit score.

There are 3 main Credit Reference Agencies – Equifax, Experian & Transunion and each Agency will produce a personal credit score but as the Agencies record your information in different ways and produce scores out of either 700, 710 or 999 your credit score can differ.

Your Credit History

The way you have conducted your finances over the last 6 years will determine if lenders are willing to lend to you and if so at what interest rates.

Clean Credit History

This normally means that you have paid all your outstanding credit on time and is normally shown on your report as green ticks and all lenders would be willing to lend to you at their lowest rates with the smallest deposit required.

Late payments & Missed Payments

A late payment is when a payment should have been made say on the 1st of the month but is not made on that date but is then paid later in that month – depending on how this is shown on your report it may not effect your credit history.

A missed payment is when a payment is not made at all for that month – this will show on your report as a 1 – if the next months payment is made on time the report shows a green tick – however if the next months payments is missed it will show as a 2 and if this continues for the following four months would show as 3, 4, 5 & 6 on your report.

Missed payments will effect your credit score and reduce the number of lenders willing to lend to you and may also mean you may only be offered higher interest rates and you will also need a bigger deposit.

Defaults & County Court Judgements ( CCJ’s )

As you miss more and more payments providers will contact you to try and sort matters out but if you are unable to pay or ignore them they will a Default on your credit file – this shows other providers / lenders that you have failed to meet this financial obligation and will show on your file the provider, amount and date of default .

Normally if you pay a default in full within 28 days of it being registered it can be removed from your credit file otherwise it will remain on your file for 6 years.

Some providers will apply to the County Court for repayment of the debt – this is known as a CCJ where the Court issues papers with the provider / lender looking to recoup the funds owed which can include bailiffs calling round to your property seeking to obtain goods to cover the debt or the Courts requesting having money deducted from your wages.

Again if you pay a CCJ in full within 28 days of it being registered it can be removed from your credit file otherwise it will remain on your file for 6 years.

Even if payment is made to repay any Default or CCJ after 28 days if will still show on your credit file for 6 years but will be marked as Satisfied – however, this will still effect your credit file.

Defaults & CCJ’s greatly effect your credit file and will reduce the lenders available and attract higher interest rates payable and the need for larger deposits being required.

Debt Management Plans ( DMP’s ) & Individual Voluntary Arrangements ( IVA’s ) & Bankruptcy

There are a few specialist lenders who will lend if you are in a Debt Management Plan – again the interest rates offered will be high and the amount of deposit required greater.

Lenders usually require that IVA ‘s & Bankruptcy have been discharged for 6 years before they are willing to lend.

Payday Loans

Usually the Payday Loan has to have been repaid and taken more than 12 months before applying for mortgage.

SUMMARY

Your credit file and credit history will determine the lenders available to you and the amount of mortgage offered and the deposit required – in these challenging times lenders are currently changing their criteria on a daily basis.

The Importance of Telling the Truth

Here’s a cautionary tale which highlights the importance of telling to truth when applying for a mortgage….

a cautionary taleA mortgage broker was contacted by A & B who were life partners living at separate addresses in Stockport & Didsbury, both were employed with no children.

They wished to buy their first residential property together in Swinton from one of their parents at full market value with the deposit coming from raising money on a property bought nine months earlier for cash in A ‘s sole name which had been renovated and was now ready to rent out.

The mortgage broker was advised by A this property was empty and had been so since purchase.

However, both had poor credit histories.

Two mortgages were required –

  • one for the purchase of the residential property in joint names
  • one for the re-mortgage of the Buy to Let property in A’s sole name.

The number of lenders available were restricted due to their poor credit histories.

The mortgage broker researched the market and found two separate lenders willing to accept their poor credit histories and capital raise on the Buy to Let property.

Both A & B were both living at the Buy to Let property.

The addresses given for the mortgage applications were previous rented addresses and A & B had not changed their status on the electoral roll.

When the valuer called at the Buy to Let property to do the valuation for the lender the valuer asked client B who was living at the property as it was all fully furnished with photos on the wall of both A & B – B advised the valuer he was the property owners brother and lived there.

The valuer reported the circumstances back to the Buy to Let lender who cancelled the mortgage application on the basis that the applicant had given false information to obtain the mortgage.

This led to the mortgage broker cancelling the other mortgage application again due to false information being submitted.

The clients were out of pocket £ 450 for the valuation fee and additional monies that had been paid to solicitors before obtaining mortgage offers.

Giving false information to obtain a mortgage is mortgage fraud.

As the mortgage broker fully complied with the requirements of the Financial Conduct Authority ( FCA ) immediately withdrew both mortgage applications and refused to transact any further business with A & B.

The moral of this story is always tell the truth regarding your circumstances – in most cases a mortgage should be able to be achieved.

What to consider if you are selling your house in Swinton, Monton or Worsley

I am looking to buy my first house and I am looking around the Swinton, Monton, Worsley area. One of the things I need to find is a decent local mortgage broker.

I am not looking to buy a palace but the state some buyers show / leave their properties to be viewed leaves a lot to be desired.

worsley houseIt does not take 5 minutes to tidy up – I have lost count of the times I have been shown around properties in both Monton and Worsley with the owners underwear (both men’s and women’s ) drying on the radiators, unmade beds and children’s toys all over the floor !

The state of people’s bathrooms is also an eye opener – black mould all round the bath, towels on the floor and condensation running down the walls due to condensation and lack of ventilation. There was a house in Swinton that was particularly bad.

Manchester Mortgages in Swinton got me a great mortgage deal for two Manchester properties I was interested in buying: one in Monton and the other is Worlsey. The Manchester Mortgages office is in Swinton – see below

Manchester mortgage brokers and advisors in Swinton were local enough to provide really sound mortgage advice for both purchases in Monton and Worsley.

And now, back to the state of some of the properties… Kitchens full of unwashed pots in the sink, broken tiles and dripping taps all do not add to the saleability of the property.

Peoples bold choices of wall colour or wallpaper in rooms may appeal to the owner but if selling I would suggest each room is toned down so that a potential purchaser can see the opportunity to change the appearance of the room at a modest cost rather than thinking the whole house will need redecorating straight away.

Again I would suggest that if your property has the benefit of a garden you spend a little time tidying it up so that it can be shown as an advantage rather than a disadvantage to the buyer.

To conclude – if you are selling your property use Manchester Mortgages in Swinton, and if you are wanting a mortgage brokering service in Worsley or Monton, think how a potential purchaser will look at your property – try and think of the advantages your property has and make the most of them – any negatives should also be addressed – keep things tidy and you should not have any problems selling your property.

Also try and be in when potential viewers come round rather than leaving it up to the estate agent – after all you know the house a lot better than the estate agent- I have loss count of the time an estate agent has told me ‘this is the living room ‘ ‘ this is the bathroom ‘ – not rocket science – try asking an estate agent how old the boiler is, when were the electrics last replaced, how old is the kitchen, what the council tax is, how much does it cost for gas and electric each month – they will not have a clue !

Offers Over – How to spot a lazy Estate Agent

I am currently looking to buy my first property around the Chorlton, Didsbury or Withington area of South Manchester and I keep coming across the same problem.

When looking at properties estate agents are not putting the price of the houses at a set figure ie £250,000 but state the price is ‘offers over £250,000 ‘

How does this work – and what is the real selling price of the house – do you offer £250,500 or £255,000, even higher say £ 260,000 plus or beyond.

I was interested in a property advertised by the estate agent at offers over £250,000 and put in an offer of £251,000 only to be advised by the estate agent this would not be accepted as a higher offer had already been put forward.

The estate agent would not tell me what the higher offer was so I offered £255,000 only to be told again this was not acceptable.

Didsbury village, Manchester

Eventually after a bit of cat and mouse with the estate agents I increased my offer to £ 265,000 which was accepted. “Is this how the game works in Didsbury and Chorlton?” I asked myself.

This left me in the position of not knowing if I had offered too much for the property and if any higher offers were received from other interested buyers my offer would then be overtaken and I would then lose the property.

My view on this form of advertising by estate agents as ‘ offers over ‘ is LAZY ESTATE AGENCY – the agents are really saying we do not really know what the price of the property is and this leads to potential purchasers offering more than they wished or being outbid by ‘other potential purchasers’ who may or may not exist – a least if you were at a property auction you have the opportunity to see who is bidding against you.

I spoke to my independent mortgage broker in Wythenshawe who made the point that just because I had offered £265,000 for the property my chosen mortgage lender would send a valuer to value the property and if the valuer did not value the property at £265,000 the lender only lends on the purchase price or valuation WHICHEVER IS LOWER meaning I may have to pay more as a deposit.

As it turned out I never got to valuation as I received a phone call from the estate agent to advise me that a higher offer had been received and accepted – at this point I told the estate agent I was not prepared to play the game anymore and looked for other properties for sale through different estate agents who clearly advertised what the price of the property was.

I avoided any property being sold by local Chorlton, Didsbury and Withington estate agents such as Julian Wadden (https://www.julianwadden.co.uk/), Jordan Fishwick (https://jordanfishwick.co.uk/), Philip James, Gascoigne Halman which were advertised as ‘ offers over ‘ or ‘ offers in excess of ’ – sellers beware of how estate agents advise you to market your sale as it may cause potential purchasers like me to avoid viewing your property.

In my simple view all houses should be advertised at a set price – then at least you know what the price is.

Independent Mortgage Advice in Manchester

Manchester, the capital of the North West of England has a population of approximately 550,000 people, with the larger area of Greater Manchester having over 3 million people living inside it’s boundaries.

Popular areas where house buyers want to live include Wythenshawe, Didsbury, Monton, Swinton and Stockport. In my time, I have lived just outside Monton and Bury. In my experience, finding a decent mortgage broker to suit my needs was essential.

Ramsbottom, Bury during festival weekI found my house in Ramsbottom, Bury from an estate agents called Weale and Hitchen. Most estate agents will have a tie-in to a mortgage advisor that they use, but really if you’re smart, you’ll appreciate that this is often a “I’ll scratch your back if you’ll scratch mine” situation and you’ll often pay over the market rate for the service.

The best advice I can offer for personal experience is to use an independent mortgage broker who (because they are independent) will give you objective advice rather that some subjectively questionable advice.

The advice of an independent broker will usually be charged for, but I found the fee (of approx £395) was absorbed within the first 6 months of mortgage payment as they found me a good mortgage deal that was £70 per month cheaper than the one I’d been advised to take by another advisor !!

Getting a mortgage in Didsbury, Manchester

We recently helped a couple obtain a mortgage for a house they wanted to buy in Didsbury, Greater Manchester. He’s some feedback they provided about their story:

Didsbury“I didn’t realise how difficult it would be to get a mortgage appointment even though I live in Didsbury village surrounded by banks and Estate agents.

My partner and myself work in the centre of Manchester Monday to Friday and the earliest appointment we could get was in four weeks time with the Halifax. We couldn’t even get passed the door at the Nationwide, Cheadle branch.

We are both currently renting and have saved a deposit for a house and were being given money from my partners family towards the purchase.

But how would we find out what we could afford without knowing what we could lend ?

My partner stumbled across Manchester Mortgages when looking on the internet.

We were able to speak to an adviser that day and an appointment was made for 2 days time.

We were advised how much money we could borrow and how much it would cost so we now have a better idea of what we are now able to look for.

The mortgage adviser also explained what other costs were involved like solicitor costs and survey.

The meeting was informative and gave us a lot of food for thought and we now have a much better understanding of the house buying process.”

New Homes For Sale in Ramsbottom, Bury, Greater Manchester

Chatterton Place is a select development of new build homes currently being built by Eccleston Homes in the up market of Ramsbottom, Bury in Greater Manchester.

Ramsbottom viewThe reason this news has found it’s way onto the Yaxley site is that this new housing development will be of interest to a great number of people as Ramsbottom was recently voted one of the top places to live in the UK by The Times newspaper.

One of the reasons is the beautiful surrounding greenbelt countryside and the excellent local schools. There are 3 that are OFSTED rated as ‘Outstanding’ – St Joseph’s RC, Hazelhurst Community and Ramsbottom Stubbins which is about 100 yards away from the Chatterton development.

Having lived in Stubbins, Ramsbottom for 2 year myself I can attest to it’s beauty. In fact all my children went to Stubbins primary school and I too would recommend it.

So what is it about living in Ramsbottom? For me it’s the country feel. When I was younger I lived in Eccles and became fed up of the inner city lifestyle. Living in Ramsbottom gives you and your family space to breathe. You can get out an walk in nature, see wild animals and flowers and stroll through many of the local woods. The town is not very big so there aren’t many people, just lots of open green space where you can feel blessed to be living.

Recommended Mortgage Brokers – Ramsbottom and Bury
Here at the Yaxley blog we’re always on the look out for the latest reviews and information about mortgage brokers and advisors in Manchester. To see the mortgage brokers we recommend throughout Bury and Ramsbottom please see our home page

Buying a house without a large deposit

The financial crisis of 2008 hit almost everyone, especially home owners and house buyers. For those people wanting to buy a house suddenly a figure of 30% was conjured up out of nowhere to be a suitable deposit when buying a house.

Suddenly, my clients around Manchester, Liverpool and Chester were being asked to find £60,000 as a deposit for a modest £200,000 property. The effect his had was to kill the housing market as no one could afford to buy a house anymore unless they had a substantial amount of money behind them.

With house prices currently falling (see this Telegraph article), the number of people who have bought houses with only a 5% deposit has hit it’s height.

To clarify, a 5% deposit means that instead of a £60,000 (20% deposit) on a £200,000 house, buyers would only need to raise a far more modest £10,000 deposit. This is obviously great for home buyers, but when house prices start to fall, so does the equity of your house.

Let’s say you bought a £200,000 house when you moved from Manchester to Chester and you paid a 5% deposit of £10,000. Now imagine you’ve lived in that house for 2 years but it’s now worth only £150,000. In two years, you’ve probably paid off somewhere in the region of £8,000 from your mortgage of £190,000, but your house is now only worth £150,000, so in real terms you’ve lost almost £40,000.

House prices and equity values are just one of the things home buyers need to consider when spending large amounts of money on a house. The lesson: Be diligent and research well !

Recommended Mortgage Broker in Didsbury

A quick look at the Reeds Rains houses for sale in Didsbury web site lists many houses available to buy in what is a very desirable place to live in Manchester.

Didbury, Manchester

Didsbury is an excellent place to live in Manchester

But why is Didsbury so popular? There are many reason, a big one is being in very close proximity to Manchester city centre, but still having the feeling that you are separate from it. Another is the lifestyle, Didsbury is quite well off, many families with a yearly income of at least £60k live in Didsbury. This money makes it a pleasant community to live in. Third is the schools, there are many decent schools, for example the Didbsury CofE Primary has an “outstanding” OFSTED rating.

So how do you actually get a mortgage and buy a house in Didsbury? One of the best known recommended mortgage brokers in Didsbury is Alan Dee of Manchester Mortgages. His mortgage advice is highly regarded and he brokers many mortgages for people moving to Didsbury each year. Covering the surrounding areas for Withington, Fallowfield and Chorlton, Andy says “There are some excellent mortgages that are available to people wanting to move into the villages of Didsbury and Chorlton at the moment. Getting a fixed rate deal for 2 or 5 years will ensure you beat the rise in inflation too.”

It’s always a good idea to get advice from a mortgage broker when you are buying a property, even if you don’t end up using their services. With over 30 years experience in getting mortgages for people wanting to move to Didsbury, Alan’s knowledge of the local area is much sort after and a valuable commodity in this day and age.

House Mortgages in Warrington

Warrington is an interesting place to live, in between Manchester and Liverpool and well connected by both the M62 and M6 it has great access to all 4 compass points of England. With areas like St Helens and Culcheth nearby, there’s a great choice of different areas to buy houses in too (see this conversation on Mumsnet for more).

Warrington

Browsing Rightmove for houses for sale in Warrington produces a typical mixed bag of results, and there’s plenty of different houses available to suit different tastes and affordability.

Popular mortgage brokers are currently offering great mortgages on houses in Warrington for all types of buyer – ie. first time buyers, people who want to remortgage, those who wish to move into the area and those wanting to upsize into a bigger property. Indeed a popular mortgage broker from Manchester is currently offering a fixed term 5 year deal at a very attractive interest rate. It’s a mortgage deal that’s proving very popular with the inhabitants of Warrington, many of whom are from St Helens and are moving to Culcheth.

For those of you who don’t know, St Helens is a town – known for it’s rugby league team and has more of a city feel, Culcheth is out in the countryside and is known for its beautiful green parks and steam rallies during the summer months.

If you’re wanting to find a mortgage lender who can advise you on properties in the Warrington area then browse the pages of this blog to find some recommendations.