As a mortgage broker in Liverpool, we have come across many different applicants who ask the question “what is an agreement in principle?”. We feel like people ask this question as there are a lot of different variations of an agreement in principle.
You will have heard agreement in principle, mortgage in principle and decision in principle. In fact, these are all exactly the same!
But how do they work? What is an agreement in principle? This article covers these questions and why an agreement in principle is essential during the start of your mortgage journey.
A mortgage agreement in principle or AIP is a formal agreement between the buyer and the lender stating that the buyer is able to borrow from them. This agreement is reliant on evidential documents that can back up income and affordability.
Having an agreement in principle in place also shows that you have passed a lender’s credit check. Whether they perform a hard or soft credit search is down to the lender.
An agreement in principle is needed to be able to make an offer on a property. At the point of making an offer, the estate agent will likely ask you whether or not you have one in place.
Sometimes, an agreement in principle can help you negotiate the asking price. If you are a first time buyer in Liverpool, it could be really useful to try and get the price lowered by a small amount.
If you have an agreement in principle in place, the seller will know that you are serious about your purchase and you have the funds to proceed.
Some agreements in principle can affect your credit score. This is down to the credit search that lenders carry out.
Lenders will usually opt for soft credit searches, which will mean that your credit is unaffected. However, if they choose to perform a hard credit search, if something bad appears on your file, it could adversely affect your credit score.
If nothing appears on your file, an occasional hard credit check on your file should not harm your credit. When several hard checks are made, things can start to negatively affect you.
No one will ever be guaranteed a mortgage, however, agreement in principle may be able to increase your chances of getting accepted now.
With your agreement in principle, you will need to supply documents that evidence your income and affordability. Lenders will need to see your ID, bank statements, P60, payslips and proof of deposit before accepting your application.
If you are self employed in Liverpool, you may need to supply slightly more things.
Yes, you can, however, it may take slightly longer to get approved as you have no written agreement between yourself and the lender.
An agreement in principle can take as little as 24 hours to come through. As a mortgage broker in Liverpool, we are able to get this to you within 24 hours of your free mortgage appointment. It’s that easy!
Typically, your AIP will last between 30-90 days and if it expires before you proceed with a property purchase, don’t panic, it can easily be renewed! Just get in touch with one of our mortgage advisors in Liverpool.
We recommend obtaining an agreement in principle as early in the process as possible. This way, you can avoid the disappointment of being let down or declined for a mortgage.
Speak to one of our team members to get your process started and receive a free mortgage appointment online.
Before you start your mortgage process, you should consider all of your options. Usually, customers are eager to get the whole thing over with as fast as possible. The most common mistake that customers make is rushing straight to a large estate agent and taking their in-house advice. We advise against this; in all honestly, you can get just as good and if not better advice elsewhere!
If you are a First Time Buyer in Liverpool, we strongly advise that you do your research and look around for external Mortgage Advisors in Liverpool that are more suited for your circumstances. On the other hand, if you do end up using in-house advisors, we have created a list of some sale tactics that estate agents use that you might find useful…
When you use your estate agent’s in-house Mortgage Advisor in Liverpool and their conveyancer, think about this… where has the money come from? The estate agents could be charging you extra on top of your other fees.
When you use a Mortgage Broker in Liverpool, you will get each and every cost broken down for you so that you can see exactly how your money has been spent. If you are unsure about anything whatsoever, it’s easy to ask and your question will be answered honestly. This is the personal touch of a Mortgage Broker in Liverpool.
On the rare occasion (as it’s illegal), estate agents may hold back your mortgage application just because you have used another financial advisor over theirs. For example, you could submit your application through a broker and then they could receive another application through their in-house system but then they could hold yours back to process their application first. Despite submitting your application first, you could end up being backlogged, even if your purchase is worth more than the other application! Remember to note that this is illegal.
If the estate agent is really trying their luck, they may try and charge you over the top in-house conveyancing fees. Even if your purchase is nice and straightforward, they could try and get an extra £1,500+ out of you for no reason. If this happens during your process, you should ask for a breakdown of where these extra costs are coming from.
There are plenty of other ways you can arrange a mortgage without using the estate agent. In this article we’ll cover the ways in which you can do so, helping you decide on who to use for your mortgage and getting the most out of your money.
If you would rather take matters into your own hands and get behind the wheel, you should know that it’s perfectly okay to do that! Everything that your advisor would arrange for you can be done online. Of course, you would be missing out on getting advice from a specialist, however, you would be avoiding the fee for getting the advice in the first place.
By using price comparison websites, you could end up finding yourself a great deal. You may also end up saving money down the line providing that you end up finding the right deal that suits your situation. Once you have your deal, you could end up getting through the process very quickly.
Here are some things to be aware of when switching your mortgage deal online:
Yes, it can be easy to make an appointment with your in-house advisor, however, is it your best option? Here are some things to take note of if you choose your in-house advisor:
Sometimes opting to use a Mortgage Broker in Liverpool, especially if you’ve been declined by your bank or are looking to access competitive mortgage rates. A Mortgage Broker has the potential to help you find a great deal, provide a personal service and get things completed quickly.
A Mortgage Broker in Liverpool will charge you for their services, however, they usually offer a free mortgage consultation up until the point where you send off your application.
At Liverpoolmoneyman Mortgage Brokers, we work solely for you and everything is kept strictly between us. We are also not tied to any estate agents, so we are free to access thousands of mortgage deals, it’s just the case of finding the right one for you!
Whether you are a First Time Buyer, Moving Home or looking to Remortgage in Liverpool, you will find our Mortgage Advice service extremely beneficial. As a trusted Mortgage Broker in Liverpool, we will guide you through the home buying process, giving good, honest and unbiased mortgage advice. Get in touch for a free mortgage consultation and we’ll see how we’re able to help you.
During the most recent Government announcement on 4th January 2021, the British Prime Minister Boris Johnson confirmed that the UK would enter national lockdown 3.0 on 5th January.
Now that we are into the thick of Lockdown 3.0, we can say that it is affecting many sectors in different ways. Some sectors have been treated more generously than others and are still continuing as normal. This lockdown is very similar to the previous November 2020 lockdown, however, the length of this lockdown is going to be around 8 weeks.
In terms of how the property market is performing, it’s safe to say that it’s still standing comfortably on its feet and everything is looking like it’s going to carry on as normal. This great news for the market, as it means that you’ll still be able to attend house viewings and continue your property purchase or sale.
Everything may be up and running as usual, but you should know that there may be some small delays during the process with some businesses. Solicitors and Surveyors are working the hardest that they can under the new restrictions, unfortunately, these changes may affect their speed of service. You have to also consider that the Stamp Duty Cut closing date is approaching, which means that there is already a lot of applicants applying to try and make the most of this deal.
Just because things are taking a little longer than usual doesn’t mean that you should put off your mortgage application, everything that could be completed before the lockdown still can be in the lockdown.
The most important thing to remember if you are on your Moving Home journey is to stay safe and follow the restrictions that have been put into place. The government’s guidelines consist of things that we have been getting told for months. For example, you will need to sanitise when taking up house viewings and wear your mask etc.
These latest government’s guidelines must be followed to ensure that everything is completed safely. So, if you are planning to/ are Moving Home in Liverpool, stay safe and stick to the rules indicated in the guidelines.
Yes… you read that right, 90% have made a slow comeback to the market. Lenders have started to gain enough confidence in the market to bring them back.
Hopeful applicants are trying to get their hands on these deals as most of them have been saving for their deposit all year. As a Mortgage Broker in Liverpool, we usually find that applicants hold a 5-10% deposit and that’s why it’s such a big deal that these sort of deal have made a return. Early 2020, you didn’t see these deals anywhere, some lenders even lowered to 80% mortgages which is a 20% deposit!
If you still can’t quite reach the 10% deposit minimum, you are in luck as there are other ways to grab yourself a 90% mortgage. It could be within your interests to take advantage of one of the two Help to Buy schemes. If you are a First Time Buyer in Liverpool the Help to Buy Equity Loan scheme or the Help to Buy Shared Ownership scheme could be for you. We have lots of helpful Help to Buy Mortgage Advice on our website if you want to find out more information.
Mortgage Payment Holidays were introduced in the March 2020 lockdown as a way for homeowners to postpone their mortgage payments for a short period. You could only use the scheme for a maximum of 6 months and the closing date was 31st October 2020. In good news, the government have announced that the Mortgage Payment Holiday scheme will be extended to 31st March 2021.
If you have yet to take up your offer for a Mortgage Payment Holiday, you’ll be able to request a full 6 month break from your mortgage payments. We advise that you only take one out if you really need to.
If you’ve already taken a Mortgage Payment Holiday of less than 6 months, you will be able to extend your existing holiday up until the 6 month mark.
Your Mortgage Broker in Liverpool is still hard at work and operating as normal during this lockdown. We are doing everything that we can to continue as normal so that we can carry on delivering our amazing fast and friendly mortgage advice service. Operating 7 days a week from 7am – 10pm, your Mortgage Broker in Liverpool is here to help.
All customers will still benefit from a free initial mortgage consultation, no matter the situation.
For a brief rundown of the current status of the property and mortgage market, please see our video from company director Malcolm Davidson, recorded the following day.
Rishi Sunak’s second Budget as Chancellor brought two pieces of welcome news for the property sector as the Government attempts to transform “Generation Rent” into “Generation Buy” to help stimulate the UK economy, namely the new 95% Mortgage Guarantee and an extension of the Stamp Duty Holiday.
The name of this scheme is misleading as not everyone that applies is guaranteed to be offered a mortgage, it is still subject to affordability and credit score. The “guarantee” itself is that the Government will ensure Lenders don’t stand a loss if they grant a 95% mortgage to a customer who then subsequently falls into arrears and is repossessed leaving behind negative equity.
This scheme should in theory give Lenders more confidence to lend even though the applicant only has a smaller deposit to put down. Of course, Lenders never want to repossess someone’s home unless it is the last resort, but if that happens then the new scheme would cover any shortfall.
Lenders have been worried about the prospect of home values decreasing so this measure should alleviate that concern although of course, the chances of negative equity occurring will naturally reduce should property prices increase as a result of these announcements!
The scheme is available to both 1st Time Buyers and Home Movers, it’s available on any property (not just new build) and will run until December 2022. Some major High Street Banks have already signed up to the scheme and it’s likely more will follow later on. It’s still a big challenge for Lenders to cope with the demand they are getting for mortgages due to the difficulties training and supervising staff working from home but they will want to offer as many of these mortgages as they can.
When the Stamp Duty Holiday was launched last year we all hoped life would be very much back to normal by the cut-off date of 31st March 2021 but things didn’t pan out that way as we know. Solicitors are struggling to keep up with the workload and if lots of chains had collapsed then it would have partly defeated the object of the exercise.
Therefore it was good to hear the scheme has been extended to 30th June for purchases up to £500,000 and 30th September for purchases up to £250,000.
The Government certainly sees the property sector as an area that can play a big part in our economic recovery and if you are looking to buy a home or remortgage this year please reach out and we will be happy to advise you.
Coming off the back of lockdown 2.0, it’s safe to safe that the property market is running nice and smoothly. We expected the lockdown to affect the market in some way, shape or form, however, to our surprise it was the opposite!
During the first lockdown, the market came to a brief halt, so, in true nature, people suspected a similar situation this time around. However, everyone knew what to expect and the guidelines were made very clear, so everyone knew how to prepare for the month-long lockdown.
As a Mortgage Broker in Liverpool, we have seen the market swing back and forth all year round which has put a lot of pressure and stress on home buyers. Even during the chaos, this year we still have managed to function effectively and still process thousands of mortgage applications. How have we managed? What have we been up to? Here is a look at behind the scenes to your Mortgage Broker in Liverpool and what it’s like getting Mortgage Advice in Liverpool during these unprecedented times.
Behind the scenes, your Mortgage Broker in Liverpool is running very smoothly, despite the bumps that have tried to trip us up over these last 12 months. Demand in the market is very high at the moment, which has allowed us to carry on providing expert Mortgage Advice in Liverpool.
Although everything is good on our end, although, there still may be a slight hold up with your mortgage application. This is because most estate agents, solicitors etc, are working from home now, so things that normally come with ease are taking a little longer to complete.
Maybe approaching a Mortgage Broker and getting Mortgage Advice in Liverpool could be your option; it could even speed things up! We know all of the measures that have been put in place and can still provide our full help and guidance over this December.
Beat the January rush! Think about all of the other homebuyers that you could put yourself in front of if you opt to get Mortgage Advice in Liverpool this December. January is one of the busiest time of the year to get your mortgage process started, so why not get ahead of the game?
We know that this time of year is already stressful enough, and that’s exactly why will be there for you at all time and will sort everything for you so that you have the easiest and most stress-free process as possible.
Whether you are a First Time Buyer in Liverpool or planning on Moving Home, we are here to help you take a step up the property ladder. Having a Mortgage Advisor in Liverpool by your side could be what you need, especially during these strange times.
Customer service is at the heart of our company; it always has been and always will be. Now our service is as important as ever and making sure that we are being responsive and reliable is our top priority with every customer.
No question is too small to ask, we want to keep you in the loop at all times. If you are unsure on anything whatsoever, if you ask us what’s going on, we will break it down for you so that it’s clear where you are in the process.
All of our Mortgage Advisors in Liverpool are here to support you through your whole mortgage journey. To show how amazing our customer service is, here is a quick look at some our reviews from over the lockdown…
“I found all the staff involved very helpful and easy to contact when needed. Every form and piece of information was spoken through and made easy to understand, very useful we buying a house for the first time.”
“Liverpoolmoneyman provide a great service and got us a mortgage really fast, Even through this pandemic, I couldn’t thank them enough and would definitely recommend”
“As a First Time Buyer, I honestly had no idea what I was in for! But Wayne and the team were super supportive and friendly to speak too! They provided step by step advice and were always available to speak too. If I had any queries or if they weren’t available right away they always got back to me within the same day.”
For more excellent feedback, feel free to check out our reviews page.
Your Mortgage Broker in Liverpool is ready to take your call and help you get your mortgage process started. We also provide a free mortgage consultation to anyone who approaches us for Mortgage Advice in Liverpool.
Just because your scenario is complicated, doesn’t mean we can’t help! We love a good challenge, so don’t hesitate to get in touch. We are available through December every single day, we can’t wait for you to contact your Mortgage Broker in Liverpool.
“What is a Lifetime ISA?” is a question that we receive on a regular basis as a Mortgage Broker in Liverpool. Despite applicants having heard of Lifetime ISAs, most of them don’t actually know what they are. People occasionally get them confused with the Help to Buy ISA, although they are similar, they also have their differences. Plus, the Help to Buy ISA is currently unavailable (as of March 2020).
Off the back of the interest in Lifetime ISAs, we decided to make a video and an article on the subject. Firstly, let’s look at the basics…
To put it simply, a Lifetime ISA is a savings account where your money grows tax-free. The government will also give you an extra 25% on top of whatever you save…sounds good right?
However, there is a small catch, you can only save a maximum of £4,000 a year and this total is without the government’s extra 25%. So, if you manage to save the full £4,000 and then you account for the extra £1,000, you can get a maximum of £5,000 a year.
The proceeds of your account can only be used to purchase your first property. You can’t use the savings on anything else but a home.
So, if you are a First Time Buyer in Liverpool but still want to hold off on your mortgage journey, you could invest now to prepare for that step onto the property ladder in the future. As a Mortgage Broker in Liverpool, we always advise applicants, especially first time buyers, to prepare sooner rather than later.
In order to qualify for the Lifetime ISA, you must meet some certain requirements:
If you want to find out some more helpful information on the government’s Lifetime ISA, feel free to check out their official Lifetime ISA page here: https://www.gov.uk/lifetime-isa.
If you are happy to go straight to a Mortgage Advisor in Liverpool and want to speak to them about your options, don’t hesitate to get in touch and we can talk you through your Lifetime ISA options.
If you think that the Lifetime ISA is for you, it may be time to get Mortgage Advice in Liverpool. Firstly, when you approach a Mortgage Broker in Liverpool like us, we can see if the Lifetime ISA scheme is right for you and can look at whether it will benefit your personal and financial situation as a First Time Buyer in Liverpool.
Even if you are looking for Mortgage Advice in Liverpool about a different mortgage situation, you should still get in touch. We offer a free mortgage consultation for every customer and every mortgage scenario. Whether you’re Self Employed in Liverpool, interested in Buy to Let mortgages or need Specialist Mortgage Advice, we have got your back and we can’t wait to try and help you through your mortgage journey!
Before you apply for a mortgage, it’s always a good idea to check on your credit score to see how it is looking. The higher your credit score is, the more likely it is that you will get accepted for a mortgage, so if it’s low, you may need to look at ways to how you can improve your credit score.
Your overall credit score can be affected by a lot of different things. For example, the more addresses that you have registered to your name can sometimes negatively impact your credit score. Once applicants realise that this is the case, they sometimes go about it in the wrong way.
As a Mortgage Broker in Liverpool, we are seeing applicants that have moved out of their parents address are leaving all of their information registered to that address and not their new rented accommodation. Leaving information such as bank statements, credit card and electoral roll information registered at a previous address can actually have a negative effect on your application in the future.
It can affect your application because when your lender searches through your credit file, there will be some sort of record that shows that you have moved to a new address. For example, it could be something as simple as a change in delivery address that could get picked up on. Your lender will notice this and it could end up having a negative effect on your credit score, so always change your address when you move.
As a Mortgage Broker in Liverpool, we know that sometimes applicants completely forget to change their address and everything is by accident. That’s another perk of using a Mortgage Broker in Liverpool, especially if you are a First Time Buyer, they will sort everything out for you and check that your application has the best chance of being accepted before submitting it with you.
We always recommend that you check everything you can before submitting your application. Things like the electoral roll and your accounts (credit cards/current accounts) can be easily changed and can make all of the difference. This mainly only affects people who are living in rented accommodation, however, there is nothing wrong with checking everything just in case. If you are moving straight from your parent’s address to a new property. You can do this once you move out.
Everything is always worth a double-check and sometimes a second opinion could help too. That’s why we think that speaking to a Mortgage Advisor in Liverpool would prove highly beneficial to you and your mortgage application.
It is very important that you know the exact date off when you moved to your rented apartment/new home and the date you moved out. This is because if you get the dates wrong, it can look like you are living in two different places at the same time.
A lender doesn’t just look at your application and decide there and then, they will go into extreme detail in order to see if you are the right applicant for them. So if you show that you have updated all of your information correctly and changed everything recently so that your application was stronger, they will be impressed by it. Having everything prepared nice and early doesn’t do any harm, it can sometimes give applicants that boost that they need!
Changing your address and double-checking your application are both really easy processes that can positively affect your mortgage application. However, if you are still struggling to get everything sorted, feel free to get in touch with a Specialist Mortgage Advisor in Liverpool at Liverpoolmoneyman, we are always happy to help.
As an experienced Mortgage Broker in Liverpool, we know that being a First Time Buyer with no mortgage experience can be hard. This is why we want to step in and offer you a helping hand. Get in touch with Liverpoolmoneyman, your expert Mortgage Broker in Liverpool today.
Following the latest government Stamp Duty holiday announcement, the mortgage market has significantly improved. However, the market is still lacking high loan to value mortgages, hopefully this will improve sooner rather than later. As a Mortgage Broker in Liverpool, we have been seeing more confidence within the mortgage market. People are beginning to become more comfortable. During the announcement, the government announced the changes to Stamp Duty and provided some guidelines for home buyers and owners:
If you would prefer to watch our moneymanTV YouTube video instead, feel free to watch it below:
There are some really low rates on offer, but with only the odd exception, as things stand you need 15% deposit. You are okay with 5% deposit for a new build from your own funds, which can be topped up to 25% with the government Help to Buy Equity loan.
Some lenders are drifting in and out of 90% loan to value but we really need the “big banks” to play ball before the market can return to normal. They are struggling to get people back into the office and get back to full capacity but are also concerned at job loss data and they don’t want to have to repossess any customers who might end up in negative equity. Once things stop holding them back, everything should slowly start returning to normal.
Demand continues to outweigh supply in terms of residential property so there has been nothing dramatic happening yet on house prices. We are seeing multiple people going for the same house so it’s vital you get an Agreement in Principle before making an offer.
When it’s time to apply for a mortgage, you need to make sure that you have the best chance of being accepted without needing Specialist mortgage advice in Liverpool. This means that you need to be wary of credit file and make sure that it’s going to impress your lender. Remember, the higher your credit score is, the greater chance you have of being accepted for a mortgage. Improving your credit score can sometimes be easy, it’s just knowing how to go about it.
Did you know that keeping your address up to date actually increases your credit score? It’s true that having fewer addresses on your file improves your credit score but people take this the wrong way. We see that some people leave their living address as their parent’s address after they move into rented accommodation. This actually has a negative impact on your score as you are basically saying that you live somewhere that you don’t.
You need to make sure that everything has been switched over to your new address. This includes all current/old accounts (credit cards) and electoral roll information registered to your previous address. There is always some way of finding out that you don’t live where you say you do, this could be something like a delivery address from online shopping or from car/home insurance search, etc.
The number one rule before anything though is to double-check your address is up to date. People seem to always seem to forget to change their address and lenders pick up on it very quickly.
When changing your address, it’s important that you get the dates right too. You need to know the exact date you moved into your rented apartment/new home and the day that you left it. If you do happen to make a mistake with these dates it can appear that you are living in two places at the same time.
As an experienced Mortgage Broker in Liverpool, we will provide our full help and support through the whole mortgage application process. Part of being a Mortgage Broker in Liverpool also allows us to perform a credit search for you without it affecting your file. We want you to try and have the best chances of being accepted for a mortgage so we sort everything for you with your best interests at heart at all times.
You always want to impress your lender and show that you are doing your best to improve your chances of being accepted. Whether this is making sure that you are on the electoral roll or changing your address, etc. Having every bit of information on your file updated is essential to the home buying process. Even if you are a First Time Buyer in Liverpool, by now you should be aware of this.
If you are still confused and just need a little more help or insight from a Mortgage Advisor in Liverpool, feel free to get in touch. We do offer a free mortgage consultation to every customer, no matter how complex their mortgage situation is.
Our Mortgage Advisors in Liverpool know that Moving Home can be stressful, especially in a competitive area like Liverpool. We want the best for you and for you to move into your perfect home with a smile on your face. We hope that you contact your Mortgage Broker in Liverpool today.
Once you have had an offer accepted, it time to move onto the next stage and arrange a property survey. A property survey will establish the condition of the property and ensure that it is worth what you are paying for it.
If something is found on the survey which wasn’t mentioned to you that could potentially affect the property price. You in a position by law to approach the seller and renegotiate a price.
There are quite a lot of different types of property surveys and it’s just the case of narrowing them down for you and finding which one will benefit you most.
Here’s a short video from the Royal Institution of Chartered Surveyors (RICS) that explains the different types available to you:
There are 3 main types of property surveys available to you:
A basic mortgage valuation is your cheapest option. You will be required to have one before you receive your mortgage offer. You can’t confuse this with a full survey. The mortgage valuation confirms to the lender that the property is worth at least what they are lending you.
Your mortgage lender may even offer you a free basic valuation as part of your deal. This really depends on the lender but they may add extra arrangements fees down the line if they offer you a free valuation.
Unfortunately, a basic mortgage valuation will not highlight any repairs that are needed. It will only point out obvious defects and recommend that you investigate further. If the defects could end up costing a lot to repair in the future. Then you may be able to negotiate a price reduction with the seller.
A homebuyer’s report will cover the health and safety side of things. For example, it will include structural safety and show if there are any leaks, etc. Most importantly it will state if the property does or does not meet current building regulations. This kind of report will give you an independent report of your property by an expert.
To ensure you are not paying for two surveys it is advisable to ask the mortgage companies surveyor to carry out this report for you – it will usually take a couple of hours to complete.
A full structural survey is recommended for older properties and for those of a non-standard construction.
Depending on the property size and type, a full structural survey can take as long as a day to complete but they will give you the best insight into your new property.
A full structural survey provides a detailed report on the condition of the property and highlights issues that should be investigated further before going ahead with the purchase, providing you with peace of mind about the condition of your property.
You can find a surveyor to carry out a Homebuyer’s report or building survey through the Royal Institution of Chartered Surveyors.
Are you a First Time Buyer in Liverpool or a current homeowner planning on Moving Home and want to know more about which property survey to choose? No problem, your local Mortgage Broker in Liverpool is just a phone call away to answer all of your property survey questions.
Get in touch for a free mortgage consultation today. Where we can pass you onto a Mortgage Advisor in Liverpool who can arrange everything out. To help you choose the best property survey for your new dream home in Liverpool.