Struggling to get a mortgage? Eight top tips to help.
According to recent research from Zoopla.co.uk, UK homeowners are expecting house prices to rise by 4.5% over the next six months – a sign of significant confidence returning to the housing market. Couple this with other research from Zoopla that reveals that the number of properties currently for sale that have been reduced in price since first coming onto the market has fallen to its lowest level in almost three years and we have a positive picture emerging.
Despite this, buyers are struggling to secure a mortgage. Jessie Hewitson gathers eight handy tips to get you on the right track:
1. Speak to a good independent mortgage broker - get an idea of what is available and what you can afford, then get all of your financial documents in place. Said documents include pay slips, bank statements and contracts of employment – the vital pieces of paper that are only ever found by rummaging around in cardboard boxes at 11pm at night.
2. Mortgage agreed in principle – “I strongly recommend buyers – in particular first timers – get their mortgage agreed in principle before starting looking,” says John Phillips, director of financial services at Kinleigh Folkard & Hayward. “Having this in place will mean that you know for certain how much money you can borrow to and you can get the process of purchasing moving quickly. With such a competitive marketplace for first time buyers, doing your homework, having your documents in place and being able to agree your mortgage quickly will give you the best chance possible against the competition.”
3. Perform a credit record MOT – suggests Ashley Brown, director of independent mortgage brokers Moneysprite. “Check and clean up your credit record. Also, if you’re not registered on the electoral roll that can seriously hamper your chances of getting a home loan. When a lender does a search on an applicant and discovers they aren’t on the electoral register, their immediate reaction is to wonder why and whether they might be hiding something”.
4. Talk to your parents - known for the purposes of this article as the bank of Mum and Dad. We don’t need to tell you how insanely difficult it is to save for a deposit and if your parents can’t help with cold hard cash they may be able to use the equity in their home – speak to your broker about this – or act as a guarantor. “Some lenders also offer deals where parents use their own savings to reduce the deposit required,” adds Brown.
5. Get a credit card - having no credit history makes lenders twitchy – best to use a credit card and repay in full each month so you can prove you can manage credit responsibility.
6. Don’t go over your overdraft limit for your current account for at least three months if possible – show you’re in control of your finances, which means no bounced cheques.
7. Get your paperwork in order – If you’re self-employed, be prepared to be treated as a second-class citizen by the banks, who haven’t yet caught on to the notion of freelance employment as being a viable model. It’s likely you’ll need to provide more paperwork and answer even more questions. As a rule of thumb, you’ll need to show that you’ve been gainfully self-employed for two to three years before a bank will even consider you – a good mortgage broker who knows the best pro-self employed banks to approach will be worth their weight in gold.
8. Don’t get trigger happy and keep applying for mortgages – If you do over a short space of time, these applications can impact your all-important credit rating.
GUEST POST: Explaining Help to Buy
The Appleton, Rivington View, Eaves Lane, Chorley, Lancashire PR6
Dave Hesson, Regional Managing Director at Morris Homes, explains the new government Help to Buy scheme and how it will help househunters across the UK.
The government recently announced the launch of ‘Help to Buy’ in the recent budget – its new initiative for homebuyers.
It has been designed to support those who have a five per cent deposit buy their first home or move up the property ladder, improve the availability of new homes and increase the supply of low-deposit mortgages.
There are two ways to benefit from Help to Buy: Equity Loan and Mortgage Guarantee.
Equity Loan is already accessible across the UK from housebuilders like Morris and it is available for the next three years. Mortgage Guarantee won’t be available until January 2014.
New schemes like these can often be very confusing to buyers so we wanted to cut through the jargon and make it easier to understand.
Equity Loan
This effectively replaces the FirstBuy scheme that was previously available. It is open to both first-time buyers and existing homeowners as long as they buy a new build property up to the value of £600,000.
It means buyers only need to have saved a five per cent deposit to benefit from a 75 per cent mortgage which significantly reduces their monthly repayments.
This is because the government will supply the additional 20 per cent through an equity loan. The loan is interest free for the first five years and can be repaid at any time or on the point of sale.
The good news is that this means that on a Morris home worth £124,750 the figures stack up as follows*:
• Five per cent deposit required: £6,238
• Government loan: £24,950
• Mortgage amount: £93,562
• Monthly repayments could be: £473* (see below)
Mortgage Guarantee
The Mortgage Guarantee option is available from January 2014 and includes both new build and existing homes. Again, only a five per cent deposit is needed but rather than getting a loan, the government will instead guarantee a portion of the mortgage.
This security will encourage lenders to offer more low-deposit mortgages so that it’s possible to buy immediately instead of having to wait and save.
The Help to Buy scheme means that buying a new home is now affordable for millions of people across the UK. Housebuilders and the government will work together to ensure it helps as many people as possible make buying that dream home a reality.
*Monthly repayments: Monthly payment based on a 25 year repayment mortgage with Halifax borrowing £93,562.00 on a fixed rate of 3.59% until 30/09/2015 with 28 payments of £472.92 followed by 272 monthly payments of £491.72 at a standard variable rate currently 3.99% to give an APR of 4.1%. The valuation fee is £315.00 payable up front. There is no product arrangement fee to the lender. This is based on the 80/20 Help to Buy shared equity scheme and requires a 5% deposit of £6237.50 from the buyer. Please note these deals could change at any time.
WIN the last pair of tickets to WBA v MUFC this Sunday
In case you didn’t know, Zoopla.co.uk are the official sponsors of Premier League Club West Bromwich Albion who, this weekend, are playing Manchester United at home at The Hawthorns.
Normally this would be nothing other than another Premier League fixture, however this match is set to be epic. It’s Sir Alex Ferguson’s 1,500th game as manager of Manchester United, but also this will be his last ever game as manager -26 years!
Consequently tickets sold out in a flash. West Brom are preparing a special edition 144-page programme which has already sold over 5,000 copies online and Sir Alex Ferguson will be given the guard of honor by the Baggies.
However, not ones to let you down, we have the last remaining two home stand tickets to this game. Yes, you read correctly!
Here’s how you can give yourself the best possible chance to win them.
To enter the draw, all you have to do is follow @Zoopla on twitter and re-tweet this tweet on Twitter – link to tweet here or click on tweet image below
As we anticipate some demand for this prize, please make sure you are aware of the T’s & C’s stated below.
Good luck!
T’s and C’s
1. To be eligible for the draw you must follow @Zoopla on twitter and retweet the competition tweet.
2. The winner will be chosen at random and contacted via twitter just after 5pm May 17th 2013 and must reply to @Zoopla within an hour or another winner will be chosen.
3. The winner may not sell the tickets and will be required to show proof of ID when picking up the tickets.
4. The winner must be over 18.
5. The winner must be signed up to the West Bromwich Albion website.
REVEALED (again by @Zoopla ): The location of the 2013 Apprentice House
The 2013 Apprentice House, revealed by Zoopla.co.uk, with an estimated property value of £9,658,713
Another year and another set of Apprentice hopefuls come up against a bit of ear bashing from Lord Sugar and his advisers…yes the BBC’s Apprentice is back on our screens!
We love it. We love the show, but we also love it for another reason. It gives us the chance to do what we do best…a little property research. We love a challenge and using the tools on Zoopla.co.uk to help us sniff out where the Apprentices lived for 8 weeks. The properties are always exceptional and this year is no exception.
After a little studying of the first episode of this series, a few screen shots later and a little local knowledge from a colleague, we were able to pin down the street via Zoopla and once again this year’s property lives up to expectations – a stunning multi million pound property.
The 2013 Apprentice pad is situated on Lincoln’s Inn Field (number 6) in Holborn, London and we estimate its property value to be £9,658,713 – the most expensive house used in the last three series. Lincoln’s Inn Field, is which is said to be London’s largest public square has few residential premises these days but what were once private homes are now homes to businesses such as the Queen’s solicitors, Farrer & Co and the John Soames Museum.
Lincoln’s Inn Field
The property, which appears to have been on the market back in 2011 when it was listed for sale at £7,950,000 (according to the Zoopla Property Archive) and may have failed to sell, is a newly refurbished Grade II listed with 5/6 bedrooms, with a bespoke kitchen, double height floor to ceiling windows with an internal courtyard and superb views over Lincoln’s Inn fields.
In terms of local property values the average residential property value on Lincoln’s inn Field is £508,009, however the turnover of stock is low with just one residential property (of ten available) being sold on the square in the last five tears. In the wider WC2A postcode the average residential property value is £850,280.
So, how does this year’s house compare with the previous two houses, which we also revealed? For s start is is the most expensive.
The 2011 Apprentice’s took residence at a well-known Welsh singer’s home in East Sheen, in South West London (pic below) which we estimate has an average property value of £5,217,619. It was reported that she was paid £50,000 ‘rent’ during the 8 weeks the show was filmed. More on that house here.
The 2011 Apprentice House – estimated value of £5,217,619 by Zoopla.co.uk
Last year the 2012 Apprentice’s were treated to a Central London location on Porchester Terrace (pic below) in the Bayswater area of London and lived in a property that we estimate to have a current property value of £8,047,540. More on that property here.
The 2012 Apprentice House – estimated value of £8,047,540 by Zoopla.co.uk
As always, please feel free to share and use this info, all we ask is that you credit the source as Zoopla.co.uk and link to Zoopla.co.uk. Thank you.
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Is this Rod Stewart’s new home – a £4.65m mansion in the heart of Essex?
Rumours are circulating that British singer-songwriter Rod Stewart has added to his property portfolio and bought Durrington House in Essex for £4.65m.
A quick look on Zoopla and we see that Durrington House was previously listed for £3,150,000 back in May 2012. Naturally, we cannot help wondering what was behind the £1.5m price leap from one year ago, but unlikely we will ever know.
Price aside, if this is indeed Rod’s home he’ll be neighbours with another musical legend (depending on your musical taste), although maybe not for long, as he is trying to sell it.
Stephen Harris, the 56-year-old founder, main songwriter and lyricist for the world’s most famous heavy metal band, Iron Maiden has lived in Sheering Hall, Essex since 1994 and is currently on the market for £5.85m – you can see it here. It comes complete with its own pub and some rather interesting interior decor!
Anyhow, Rod’s new home is said to be one of the finest houses in the area, occupying a private and secluded position spanning 20 acres of land. The house is adorned with period features and surrounded by immaculate gardens and is the first time the house has come to the market in over 50 years, having been within the same family for two generations.
As you can see from the pictures, the property is set in extensive private and secluded grounds, with 10 bedrooms, 4 receptions and five bedrooms and a mixture of formal reception and family rooms.
Checkout the pictures below:
More details on the property here
Gardening this May bank holiday? Read this first…
Did you know that the contents of the average garden are now worth nearly £2,000 with home owners splashing out on £894 alone in the past 12 months on the likes of outdoor furniture and decorations.
Sounds like a lot doesn’t it? But if you have your eye on something it’s best to set a goal. The Money Advice Service guide How to set a savings goal could help.
One in ten homeowners recently admitted in a report that they have spent money on their garden as they can’t afford to move home, while one in three say that spending a lot of time outside (weather permitting) is the main reason for upgrading their outdoor spaces.
Despite this hefty investment, 12.5 million (or more than two in five) of homeowners are leaving their gardens unprotected, by not checking whether their items are covered under current policies, or by having no insurance at all.
It’s all the more worrying in light of the fact that 1.4 million thefts from gardens and outdoor spaces were recorded last year, marking a 17% increase over the last five years.
Follow these handy tips from the Money Advice Service for keeping your gardens safe:
1. Check your contents insurance documents to see what you are and are not covered for. If you have no contents insurance, it might be an idea to get some.
2. When possible, keep expensive tools, lawnmowers and bicycles out of sight and locked away.
3. Don’t forget about tools and ladders that could be used to break into your home too.
4. Make sure garden sheds, gates, garages and outbuildings remain bolted with a secure lock.
5. Plug gaps in fences or bushes to stop opportunistic thieves slipping through.
6. Use landscaping to your advantage. Try to plant some thorny plants and shrubs with prickly leaves as a natural barrier to deter the thieves.
7. Shrubs and overgrown trees can prove to be an asset to burglars. Make sure you prune overgrown and large trees.
8. Mark valuable items, such as patio furniture and ornaments, with your postcode, and keep photos of your garden valuables for your claim in case anything is stolen or vandalised
9. Keeping your driveways or front paths updated with pebbles or gravel can help you to hear someone approaching your property.
10. Look into joining your local Neighbourhood Watch scheme in order to help protect yours and your neighbours’ properties
Properties to buy in Huddersfield and Harrogate
Four properties to buy in Harrogate, West Yorkshire
3 bedroom end terrace house for sale £199,950
Torrs Road, Harrogate HG1
5 bedroom semi detached house for sale – offers over £425,000
Kent Bank, Harrogate, North Yorkshire HG1
2 bedroom flat for sale Guide price £315,000
Imperial Mansions, Royal Parade, Harrogate, North Yorkshire HG1
2 bedroom flat for sale Offers in region of £349,950
Otley Road, Harrogate, North Yorkshire HG2
Want to know what the market is doing in Harrogate? Check out our area property stats page
Four properties to buy in Huddersfield, West Yorkshire
5 bedroom detached house for sale offers in region of £595,000
St Helen’s Gate, Almondbury, Huddersfield, Kirklees HD4
2 bedroom flat for sale £389,950
Stoneleigh Pavillions, Bryan Road, Huddersfield HD2
4 bedroom terraced house for sale £234,950
Gledholt Road, Gledholt, Huddersfield, West Yorkshire HD1
2 bedroom flat for sale £190,000
Beech Hollow, Edgerton, Huddersfield HD3
Want to know what the market is doing in Huddersfield? Check out our area property stats page
