Getting a mortgage can be stressful and worrying. It’s not a complicated process, however, something as simple as not remembering to register to vote can bring the entire process to a halt. You could be left wondering why you were refused a mortgage when you seem to be such a safe bet for your bank! 

It starts with the right mortgage provider 

Each mortgage provider differs slightly in how they make lending decisions, but all will consider your deposit, income and employment status, credit history, outgoings and debts. 

Credit report 

Go online and take a look at your credit report and make sure all payments, past and present are on time. From your mobile phone contract to car finance, credit cards, overdrafts and any other borrowings. Then check your credit score, if you have always paid on time and your credit score is low, find out why. 

Make sure you are on the electoral register 

This takes two minutes to do online and without it you will not get a mortgage. 

Balance your borrowing and available credit 

If you have a credit card, with a high limit, even if you do not use it, this can dissuade a potential lender from offering you a mortgage because of the potential to run up a lot of debt. Yet it’s also worth remembering not to lower your limit to the balance as this looks like you have used all available credit. 

Equally, it's as important to have some credit history to show your lender you can pay back debt. As a general rule, the fewer debts you have - the fewer outgoings you have, meaning you can borrow more.

Streamline accounts

The more history you have with your bank the better so don’t close or switch accounts. However, if you have several accounts, you do not use, shut them down. You don’t want the risk of fraud ruining your chances.

Don’t apply for credit

If you are applying for a mortgage ideally avoid applying for any other credit beforehand. If you get refused this will show on your credit report.

Take a look at your spending

Your lender typically will want to see your last three bank statements so beforehand look at your spending and reduce it where you can.

Gather your paperwork

Your most recent payslips and bank statements for the past three months, proof of deposit, ID –passport, and proof of address.

Mortgage calculator

At any point, you can go online and get a reasonably accurate idea of how much you could borrow using one of the high street bank’s mortgage calculators.

Agreement in principle

An agreement in principle, allows you to see if a potential mortgage provider will lend to you and is a soft search of your credit history. You do not necessarily have to be in a position to buy to get an agreement in principle, although to process your application further following the steps above will help secure a mortgage successfully.

Are you ready to buy or do you simply need some advice? Browse our properties.

When it comes to property, there are no hard and fast rules when choosing where to invest. The UK has a rich, diverse and ever-evolving swathe of properties. From Art Deco, Tudor and Edwardian to ultra-modern there is an endless choice, and where you choose to invest comes down to your vision, budget and individual aspirations.

The possibilities are endless, it could be that you are a seasoned investor and you have now turned your attention to creating flats in what were terrace houses. Perhaps you are making your first steps on the buy-to-let ladder by letting your home. Perhaps you enjoy refurbishing properties or simply looking for a rental-ready property that needs no work for a solid and straightforward investment, managed by a letting agent.

A good opportunity is just that!

It’s no secret that property prices have increased rapidly over the past few years. Great investment property opportunities exist everywhere. Right now, as property price increases cool there is greater scope for buying below the asking price. This allows a little more budget for development. As a landlord, you can raise standards and achieve a greater rental yield.

Rental Yield

To calculate rental yield, divide the difference between annual rental income minus the annual costs, by the purchase price of the rental property. You can find many rental yield calculators online which will save time when calculating what is an appealing investment.

The Lancashire coast is an example of a region that in terms of an average rental yield offers a good return on investment. This is because the average property price is relatively low, while the average rent price is relatively high. House prices on the southeast coast over the past ten years have doubled, while in other regions prices have increased at a much slower rate.*

Every property is unique and while rental yields differ from property to property there are other factors to consider, as you seek your ideal property investments it’s important to focus on more than rental yields.

How quickly do you want to let your property?

Refurbishing a property depending on the level of work involved can take time. Investing in an already refurbished flat means it can be let out immediately. Waiting for builders or materials while you refurbish a terrace house or suburban detached house, can eat into your rental revenue. That said, letting a larger house room by room could offer a greater rental return and could be easily worth the investment of time and money.

What motivates you?

There are many developers and landlords savvy enough to realise that raising the standards of let properties is a passion that makes a lot of business sense. Providing the best possible property to let may cost more initially but it will increase, the value of your property and rental revenue and attract great tenants.

Not entirely sure where to invest in the property market? Contact us today to see how we can help.

*Office for National Statistics

You want to treat your partner this Valentine’s Day. Perhaps a meal out, a card, flowers and chocolates are more your style. After all, you are both trying to take your first steps on the property ladder; you are trying to save. It’s not easy, sometimes you feel like it’s never going to happen. You don’t want to spend on a property you don’t own. On the other hand, you want to make the most of where you live. The relationship you have with where you live is important. Showing that you care might just help you fall in love with your place. Here are a few tips and things you can do that won't break the bank!

Create the perfect space

It’s all about being comfortable in your surroundings. Functionality is important. The first part of creating a great ambience is decluttering or arranging your room so it is as stress-free as possible. Often less is more but you still want a feeling of space with cosiness.

Lights and candles

Lighting affects your mood. Candles particularly at this time of year are perfect for that romantic evening in. Don’t just use them on Valentine’s Day. Use them after a long day at work and relax in the soft lighting which will soothe you and create a relaxing ambience.

Conversely, simply changing a few bulbs and creating lots of light in the kitchen for example will create a feeling of space. Use LED bulbs and reduce your carbon footprint while saving some money.

Add some personal touches

Flowers, candles, paintings or pictures of a special time or place. Once your rooms are decluttered and clean these items will have a huge impact and help you to relax more quickly. This adds to the quality of your life while adding character and just enough detail to help stimulate your visual senses.

Plants

A few plants here and there reduce stress levels while adding an element of nature to your rooms. Improving the quality of the air in your home and giving you a sense of well-being that combines with the glorious effect of natural aesthetics.

Celebrate outdoor living

A nice space outside with candles or a stove underneath the stars is not only romantic but a great way to add another room to your house. It may be outside but create the right space and it’s as important as any room in the house.

TLC

Keeping everything clean and in good working order is one of the simplest and best ways to show the place where you live how much you care. In return, it might along with some other steps help you fall in love with the special place you live for you and your loved ones to share.

Browse our properties today you might just find a home you will love.

What does it really mean when you read a headline which mentions falling house prices? We hear this phrase so often that we are led to believe it! The media constantly churns out facts and figures to scare us all and warn of looming doom!   

For most people, buying a house is a long-term investment and if house prices rise or fall it’s always best not to focus on the headlines, instead take a step back and put things in perspective.  

If we look at last year, it’s true that houses price increases dipped due to interest rates rising and the impact of the minibudget. In 2022 house prices grew by 2.8% over all for the year, falling from a growth rate of 4.4% according to the Nationwide house price index. 

Yet according to the office for National Statistics average UK prices increased by 12.6% over the year to October 2022.  So, it depends on who you ask! Not to mention regional differences and property type - often houses increase in value more rapidly than flats.   

Predictions   

Zoopla predicts a 5% fall in house prices, while Lloyds bank give a higher figure of 9%. Many analysts agree house prices to fall for the next two years but rise again in 2025. Perhaps more optimistically the housing market could simply level out, with smaller drops in house prices. There is still a shortage of houses and therefore this will stabilise the market.  The housing market is simply returning to a pre-pandemic norm with more realistic interest rates. The good news is without rapidly rising prices, there is more long-term stability.  

The good news  

Ultimately if you are selling, the value of your home will have gone up considerably over the past years so if it falls a little you have still gained. If you are about to purchase your first property and still gathering the deposit and you know it may take a little longer, at least house prices are not rocketing which gives you a little more time.  And when you are in a position to make an offer, you may find that you have a lot more wriggle room in terms of making a lower offer and saving some money.   

Long term  

Buying a house is a long-term investment for most of us and even large drops in value will not create big gains or losses.  

For example, if you buy a house for £200,000, typically the deposit is 10%, £20,000. 

If you plan is to wait thinking house prices will drop by 10% you have saved £2000, in terms of a deposit. In a long-term investment this is not a significant amount of money.   

And if the worst happens and you buy a house tomorrow and house prices suddenly drop by 10% unless you are planning on selling within the next 2 years, with house prices set to rise again in 2025 then again realistically you have lost £2000, temporarily before gaining again.  

In both the above scenarios, in the long term, you will still gain.   

Conclusion 

The future looks good, yet even if there is sudden drop in the grand scheme of things, it’s not such bad thing! In fact, does it even matter? What’s important is finding a house you can call home and cherish the memories you make in it.  

Looking your first home or your forever home? Browse our properties.   

*TheTimes