Joint Mortgage - Getting a Mortgage with A Self Employed Partner

You may have heard the myths that getting a mortgage when you are self employed is more difficult. Some might even say it’s impossible. If you or your partner is self employed and you are hoping to get on the property ladder, you’ll be pleased to learn that this isn’t entirely true.

The process of applying for a mortgage is different for the self employed. But if you or your partner meet the requirements and the loan is affordable, you should have no trouble securing your mortgage.

What is a joint mortgage?

A joint mortgage will have two people on the application and both individuals will be responsible for making the payments. If one party will pay more towards the property, you can decide during the home buying process how to share the equity.

When applying for a joint mortgage, lenders will carry out checks on both parties to ensure that the mortgage is affordable. The benefit of applying for a joint mortgage over a single mortgage is that it allows you to combine incomes. This will mean you are able to buy a more expensive property than if one of you were to apply on your own.

Who can apply for a joint mortgage?

You don’t have to apply for a joint mortgage with your spouse. Unmarried couples are able to apply for a joint mortgage. Some lenders will even allow groups of up to four people to buy a property together. If you and a group of friends wanted to purchase a property you will all live in together, a joint mortgage could be one option.

When making a mortgage decision, lenders will look at a number of factors, including:

The amount of deposit
Affordability
Credit history of both applicants
Property type
Employment status

Is a self employed mortgage different?

When applying for a mortgage, lenders will want to know about your income. If you have a permanent work contract, you will simply provide details of your contract and evidence of past payslips. The lender will then calculate affordability based on your annual salary.

If you are self employed, this process is a little more complicated. Lenders will need to see evidence of your self employed accounts for the past 2-3 years. They may also want to see retainer contracts or future work contracts.

As a self employed worker, your income may be sporadic. Lenders will want to see that you don’t have any gaps in your earnings history.

How much will we be able to borrow?

If you pass the initial affordability checks, you will then be able to start thinking about how much you can borrow. This will all depend on the lender you choose. Some will allow you to borrow up to 4x your annual salary and some will offer 5x your annual salary.

If you or your partner is self employed and one is earning enough to make the application on their own, it can often be easier to proceed in this way. This is particularly true if you or your partner have not been self employed for very long.

How much deposit will we need?

As with any mortgage application, the more deposit you can provide, the better the rates you will be offered. The minimum you should consider saving would be 5% of the property value. If you can increase this amount to 15-20% of the property value, you are more likely to be accepted and to be offered a good deal.

Applying for a joint mortgage when one person is self employed might be a little bit more complicated, but it’s certainly not impossible. You can find out more about applying for joint self employed mortgages with Niche Mortgage Info here.

12 questions to ask your mortgage broker

When you first start the process of buying a home, you might be surprised to learn that not many people are on your side. Estate agents are working for the seller, so they will tell you anything you want to hear to get you to make an offer.

Banks and other lenders aren’t really the best source of help either, as they want you to take out a mortgage with them instead of their competitors. But when it comes to brokers, you can guarantee you’ll get some practical advice.

Before you start working with a broker, make sure you ask the following questions and that you are satisfied with the answers. Remember, brokers work on commission, so they only get paid when they secure an introduction. This means you can pretty much guarantee they want to get you the best possible deal. After all, their reputation and livelihood depends on it.

If you’re getting ready to start working with a mortgage broker, make sure you ask the following questions.

1. Are you regulated?

All brokers are required to be registered with and regulated by the Financial Conduct Authority. Before you start working with a broker, make sure that you check that they are on the FCA register. This will help to protect you in the event something goes wrong with your mortgage application.

2. How many lenders do you work with?

Some brokers will work with one lender, some will work with a select group of lenders and some will work with all lenders. A specialist broker with limited reach might sound tempting. After all, they will have in-depth knowledge of those particular lenders. But if you are looking for the best possible deal, a whole market broker will be able to give you the best options.

3. How much do you charge?

All brokers will charge a fee for their services. Some will charge you a fee, while others will take a cut from your chosen lender. The lender often passes this cost on to the borrower as part of their rates, so it is more of an invisible cost.

When working with a broker, you may be able to negotiate a deal whereby the first mortgage incurs a fee but remortgaging or securing a second mortgage in future is free of charge. If you are thinking long term, it’s worth asking for this option.

Buying a house can be an expensive process, but the broker’s fee will be paltry compared to the amount of money they will save you.

4. When is this fee due?

Make sure you are completely clear on how and when the broker will expect to be paid. In general, you shouldn’t be asked to pay anything up front. All fees should either be collected from the lender, or charged once your mortgage application has been accepted.

5. Do you work with…?

If you are in a niche group of applicants, now is the time to get specific. For example, if you are self employed or run your own business, it’s worth asking if the broker has experience working with people in your situation. Likewise if you already own a property, if you have a poor credit history, or if you are a contract worker.

6. What kind of mortgage can I get?

The best part of working with a broker is all of the insider knowledge they can share. You don’t have to navigate the small print in too much detail, because they can help decode it. Ask your mortgage broker what types of mortgage will be available to you based on your current circumstances. They will also be able to advise you on steps you can take to change your situation. For example, if you have very little credit history, they might advise taking out a credit card to build your credit.

7. What is the current interest rate?

Interest rates can be very confusing. Lenders will often try to tempt you with low interest rate offers which will increase after 4 or 5 years. This can make it very difficult to navigate the industry. It’s important to think about the lifetime value of the mortgage, not just the initial payments you will be making. This is where a mortgage broker can be invaluable. They will be able to help you determine what is affordable and what isn’t. They can also help you find a way to lock in a lower initial interest rate for longer.

8. What is affordable for me?

Affordability is key. A good broker will sit down and go through your finances to determine what you can comfortably afford to borrow. If you are applying with two applicants and two incomes, what would happen if one of you lost your job? These are the difficult questions that a mortgage broker will help you to answer so that you don’t become trapped in an expensive mortgage.

It all starts with being honest about your income and expenses on a monthly basis. Don’t be embarrassed to say how much you spend on certain items as this is key to determining what you can afford to borrow.

If you are self employed, a mortgage broker can help you to make your income look as regular and reliable as possible. And if you don’t have 3 years of accounts, they can help you find a lender willing to look at your application.

A mortgage broker can also give you advice on how to improve your credit score ahead of your application. These are all things that will make your application look more favourable in the eyes of a lender.

9. How much should I budget for fees?

As we’ve mentioned before, buying a house is an expensive business. There are surveys to think about, conveyancing, other solicitor’s fees and your broker fees. You may also need to budget for stamp duty and other move-in costs. Your broker can help you to break this down and make sure that you are prepared for the financial implications of taking on a mortgage.

Remember that not all fees will be due at the same time, so you can budget over a few months and ease the impact on your wallet.

10. What deposit do I need?

All lenders will require a deposit, but how much is a hotly debated topic. You might think it wise to try to get away with saving as little deposit as possible, but this can lead to higher rates on your mortgage.

The lender asks for a deposit to limit their risk. The more deposit you can provide, the less risk there is that they will be left out of pocket if you default on your mortgage payments. Some help to buy schemes will allow you to buy a house with as little as 5% deposit, but this is rare. Instead, you will more likely be aiming for a deposit of around 15-20% of the property value. This will mean you are only borrowing 80-85% of the property value.

A broker can help you to look for ways to maximise your deposit, either through help to buy schemes, or by setting your sights on a lower value property. Brokers are great at seeing the big picture and long-term thinking.

This is where their expertise can be valuable. Buying a less expensive starter home and getting a better deal on your mortgage can be a good strategy. It's far better than getting locked into a mortgage with poor rates. This type of mortgage will take you a lot longer to pay off.

11. Can my mortgage transfer to another property?

If you are thinking long term, you might already be planning another move. The idea of a forever home is slipping to the side. More people now accept that their needs will change over time. If you were to want to move house after a few years, check with your broker that your mortgage will transfer to your new property. This can reduce a lot of the fees associated with remortgaging.

If the mortgage will not transfer, then it’s worth negotiating a deal with your broker than any subsequent deals that they arrange will be free of charge. They will still have the opportunity to recoup their percentage from the lender, but you will only have to pay upfront fees once.

12. What else can you help me with?

Buying a home is a confusing time and it’s worth getting all of the advice you can. If there is anything about the home buying process that you find confusing, ask your mortgage broker if they can help you to decode it.

You might be confused about processing times, conveyancing, or the buyer’s part in the mortgage journey. As we’ve mentioned before, buyers often don’t have many places to turn when it comes to getting impartial mortgage advice. This is why working with an expert broker can be invaluable.

Not only will a broker help you to find the best possible deal, but they will also be on hand to clear up any confusion about the mortgage application process. You can also ask them questions about income, deposits and credit scores.

6 Facts About Mortgages in The UK

If you glaze over when the conversation turns to things like mortgages and finance, you’re not alone. Even those who work in the industry can find the chatter tiresome at the end of a long day. But if you want to get a great deal on your mortgage, it pays to get clued up.

We pride ourselves on offering straight-talking advice on the mortgage market. We don’t want to dazzle you with too much information, we just want to make sure you understand what is important to you. To that end, we’re going to share some interesting facts with you. These are things that not many people know, but it could save them time and money when it comes to securing a mortgage.

Having no credit history can hurt your application

The common misconception is that poor credit history is bad for a mortgage application and that no credit history is good. The reverse is actually the case. Poor credit won’t necessarily lead lenders to reject your application, but no credit history could.

This is because lenders want to see that you have been able to secure and pay back credit in the past. A few hiccups along the way won’t phase them, provided you have a strong deposit and steady income. But no credit history is likely to raise some eyebrows.

The self employed find it hardest to get a mortgage

Running your own business is tough enough, but when you learn that this can also make it harder to secure a mortgage it might make you wonder if it’s worth it. While it’s true that the self employed have it tougher, it’s not impossible to get a mortgage like some people would have you believe. You just need to make sure you’re speaking to the right people. There are some lenders who will be more than willing to offer mortgages for self employed with 1 years accounts.

Shopping around can save you a lot

Many people think that their pre-existing relationship with their own bank will lead to a great deal on their mortgage. Sadly, this isn’t the case. And even the lowest rates don’t always equal the best deal. It’s important to think about the lifetime value of your mortgage and consider all of the fees and bonuses available to you. Put simply, don’t assume the first offer you get will be the best.

Mortgage brokers are incredibly useful

People shy away from working with a broker because they assume it’s just another middleman lining up to take their cut. This couldn't be further than the truth. While the broker will charge a commission, they are some of the hardest working people in the mortgage business. Since their income usually relies on matching people with lenders, they always go above and beyond to help you find the best deal. And the best part is that they are experts in all things mortgages, so you don’t have to learn it all yourself.

Mortgage rates are volatile

When mortgage rates hit the news, it’s usually because of a huge change which has wide-reaching ramifications. What people don’t know is that mortgage rates are actually quite volatile and therefore changing all the time. If you have the option to wait, it’s always worth sticking around to see if rates fall again.

Paying off more can shave years off your mortgage

When you finally have your home and your mortgage, your mortgage repayments should really be seen as a minimum monthly payment. Paying extra into your mortgage at the beginning can shave years off the term of your loan. If you get a bonus at work or receive an inheritance, it’s worth putting some aside for your mortgage as it could save you a lot of money in the long term.

How To Qualify For A Mortgage If You're Self-Employed - 2020

The self employed sector is booming. More and more people are choosing to break free from the chains of conventional employment and build their own business. While this might save you from the dreaded commute and give you the freedom to be your own boss, it’s not without its downsides.

Securing credit is one of the things that gets a little bit harder when you’re self employed. And this includes mortgages. If you’re self employed and want to get on the property ladder in 2020, now is the time to start preparing.

With a little preparation now, you could be ready to take steps towards being a homeowner in the new year. Read on to discover how to make sure you’ll qualify for a self employed mortgage in 2020.

Get your credit score in order

One of the first things that lenders will look at is your credit score. This helps them to determine if you are a high risk borrower. Your credit score gives them a snapshot of your current borrowing habits, and how well you repay your debts. No lending history can often be just as bad as poor lending history.

Sign up for a free trial with Checkmyfile to discover what the credit agencies already know about you. You can then fix problems with your file, start building your credit, or discover ways to boost your score. Even just being on the electoral register can help to boost your credit score.

Save a healthy deposit

By saving a larger deposit, you can reassure lenders that you are low risk. When you pay more up-front, you will be borrowing less of the full amount. This means that if you default on your mortgage payments, the lender will have less to recoup than if you had offered a smaller deposit.

As a self employed applicant, you can make sure you get access to better rates by offering a higher deposit amount. Aim for at least 10-15%, but 20% would be even better.

Clear old debts

When lenders look at your application, they want to see that the loan is currently affordable and that it will remain affordable in the future. This is one reason that old debts against your name can make it more difficult to secure a mortgage.

If you have other monthly obligations, such as an old credit card bill, then lenders might see this as something that could compete with your mortgage payments if your income were to go down. This is a bigger risk for the self employed as they are more likely to have irregular income.

Get your accounts in order

A person in full-time employment will only need to provide pay slips and a contract to prove their income. The self employed need to jump through quite a few more hoops. Most lenders will ask to see your accounts for a specific period, and this will vary between lenders.

If you are fairly lax with your accounting, now is the time to get everything up to date. If you don’t have a strong head for numbers, consider hiring an accountant. For a small monthly fee, they will manage your accounts and prepare your taxes. This can make it much easier to provide evidence of your income for a mortgage.

Be honest

When completing your taxes, it can be tempting to adjust your income to lessen your tax bill. While many of these changes are completely legal and encouraged in many self employed circles, this can impact your mortgage application. Always be honest about your income as the lender will use a multiple of your annual income to determine how much you can borrow.

Get a mortgage in principle

If you are keen to start the house hunt, you can apply for something known as a “mortgage in principle”. This is an agreement with your bank that says they will be willing to lend you a certain amount of money. You will need to pass their second round of checks in order to get the full mortgage.

This can be helpful as it allows you to start the house hunt process and then put in an offer if you find something that you like. If your offer is accepted, then you would return to the bank and complete the application process. This method is not without its risks, as you could be rejected further down the line, but it can be helpful to move the process forward.

Speak to the experts

Perhaps the best way to get yourself mortgage ready by 2020 is to find some expert advice. By working with a mortgage broker, you can find a lender that is accustomed to handling mortgages for self employed workers.

They will be able to give you advice on how to spruce up your credit score, how to get your accounts in order and how much deposit to save.

Using Rental Income to Qualify for a Mortgage

If you already have a portfolio of properties, you may be wondering about the possibility of using your rental income to secure a mortgage on another property. While it is possible to get a mortgage with rental income as your primary source of income, expect the bank to ask you to jump through a few additional hoops.

In this article, we will look at the circumstances that might lead you to use rental income to qualify for a mortgage. We will also share some top tips that will allow you to make the most of this opportunity and navigate the mortgage process with ease.

Can I qualify for a mortgage with rental income?

If you already own one property that is currently rented and you would like to secure a mortgage against another property, you may be able to use the rental income as a proof of income. In some cases, you may even be able to use potential future rental income to secure a mortgage. It all depends on the type of mortgage you are looking for and the requirements set out by the bank.

Can I get a residential mortgage?

If you already have a rental property and this is your main source of income, you may be able to use your rental income to secure a residential mortgage. A residential mortgage would only be granted if you intend to live in the property.

If you are still paying a mortgage on your existing rental property then it is unlikely that you would be able to get an additional residential mortgage using the rental income from your property. Banks are primarily concerned with affordability. If you are already paying one mortgage and this is your only source of income then they may see this as a red flag.

Can I get a buy to let mortgage?

The rules for a buy to let mortgage are quite different. As the buy to let mortgage is intended for landlords, some will allow you to use the future rental as proof of income. However, this isn’t always the case.

If you have existing rental properties, you may be able to use the rental income from these properties as proof of income. But this isn’t always as straightforward. Lenders need to limit their risk. And there is always the risk that your rental property could remain empty. This could lead you to default on your mortgage.

How do I prove rental income?

Banks often need more than just rental agreements and bank statements to prove that you have income from rental properties. Since most landlords are self employed, they will be treated like any other self employed individual. When you’re using rental income to qualify for mortgage payments, you should approach this as a business venture.

This means that lenders will want to see tax returns or SA302 forms as proof of income. Some will ask for SA302 forms for the past 3 years. Others might only ask for your income from the past year.

How much can I borrow?

Once you have passed the lender’s checks, they will use a standard affordability calculation to determine how much you can borrow. This will often be a multiple of your annual income. If you annual income varies, some might take the average over the last 3 years as your income. Others might take the lowest annual income from the last 3 years. This all varies depending on the lender.

As with all mortgage questions, the final decision will always be left with the lender. This means that you should shop around and speak to a few different lenders before making a final decision.

4 Deadly Mortgage Mistakes to Avoid If You're Self-Employed

Getting a mortgage is never easy, but when you’re self employed, it can feel like the odds are stacked against you. Gone are the days when you can waltz into a bank and request a self certify mortgage. This type of mortgage was phased out following the financial crash in 2007. You have to work a little harder to prove your income for a mortgage application.

Misconceptions around the self employed mortgage industry means that a lot of people put off getting a mortgage while they are self employed. Worse still, they make some of these incredible common mistakes. If you’re thinking about applying for a mortgage while self employed, make sure you don’t make these incredibly common mistakes.

Heading straight to your own bank

A lot of people assume that their own bank is the best place to start. After all, if you already have a relationship with the bank, you would assume they would be willing to work with you. But you could be missing out on a great deal if you head straight to your own bank. You also run the risk of your application being rejected.

Not all high street lenders work well with the self employed, so it makes sense to shop around for the best deal. One of the best things you can do is approach a mortgage broker. A mortgage broker will be able to help you navigate the lenders and find a bank willing to offer mortgages for self employed workers.

Adjusting your income

When tax season rolls around, many self employed individuals will make legal adjustments to their tax return in order to reduce their tax bill. If you are applying for a mortgage, most lenders will offer a multiple of your annual income as a maximum amount. If you have adjusted your income, this could be much lower than you can actually afford.

Make sure you are honest with your income and offer an accurate reflection of what you earn every year. But don’t be tempted to inflate your income as this can be just as disastrous.

Changing your business structure

Many self employed people start out as a sole trader. When the time comes to apply for a mortgage, they look to strengthen their position. So they change their business structure to a limited company. A limited company should sound more impressive, but this is actually a huge mistake.

By changing your business structure, you are resetting the clock at zero. Your past accounts as a sole trader won’t count for anything, and your new business will have no accounts and no filing history. If you’re applying for a mortgage, leave your business structure alone.

Spending big before you apply

Many people will apply for a mortgage in principle before they submit their main application. This will give them time to look at properties, put in an offer, and then submit the full application. If you decide to do this, then don’t assume that anything is final until you’ve signed on the dotted line.

Many people relax once they have their mortgage in principle and decide to spend a little. This is usually in preparation for their big move. However, you should try to avoid any big spending sprees before you submit your final application. This can be a huge red flag to lenders and it could lead them to reject your application.

A rejected application will also show up on your record, which can make it difficult to secure a mortgage elsewhere. If you’re not sure what your credit file looks like, you can sign up for free with Checkmyfile.

How to live mortgage free

Everyone dreams of the day when they have paid off their mortgage and they are living mortgage free. Not many people know that you can achieve this sooner with a few simple steps and a lot of discipline. Imagine paying less interest, getting rid of your monthly mortgage payments and enjoying the complete peace of mind knowing that your home is your own.

If you dream of living mortgage free before you reach retirement, it’s not completely out of reach. Your mortgage is probably your largest monthly expense, so the prospect of paying it off early is likely to be an attractive prospect. Short of moving into a shipping container or swapping your three bedroom semi for a canal boat, there are a few tips you can try to help pay off your mortgage debt faster.

In this blog, we’ll share some of the most popular ways Brits can get rid of their mortgage payments sooner.

Set yourself a target

You’ll never pay off your mortgage early without some serious planning. If your aim is to pay off your mortgage in 10 years time, think about how much extra you will need to pay every month. Then calculate if this is even feasible with your current earnings and outgoings. If it isn’t possible, either extend your target, find a way to boost your income, or cut back on your expenses. For example, if you get rid of your car and use public transport, you could put the money you save towards paying off your mortgage early.

Make payments every two weeks instead of monthly

By switching to bi-monthly payments instead of monthly payments, you can actually increase the amount you pay back. There are 52 weeks in the year, so if you switch to making payments every 2 weeks instead of monthly, at the end of the year you will have made 13 full payments instead of just 12. This is a great way to chip away at your mortgage payment without realising you are paying more.

Increase your principal payments

This hardly deserves its own point on the list given that it is so obvious. The simplest way to pay off your mortgage sooner is to increase your principal payments or make more payments. When you make principal payments, these go towards bringing down the principal amount, rather than going towards the principal and interest. Many lenders will offer principal only products.

Put spare money towards your mortgage

Once you have your finances in order, you may find that you have spare money left over at the end of the month. Any extra cash should always go straight towards paying off your mortgage. If you get a pay rise at work, for example, put the extra money every month towards your mortgage. You won’t even notice that you don’t have the extra money, but it could have a huge impact on how quickly you pay off your mortgage.

Remortgage your property

Remortgaging is simply paying off your existing mortgage with a new mortgage and using your property as security. Most of the time, people remortgage to be able to secure a better deal and reduce their monthly payments. However, if you choose to remortgage and pay the same monthly payments, this could help to pay off your mortgage far quicker. Don’t forget to check the fees associated with remortgaging to ensure it is the right move for you.

Build your own home

Saving the money to build your own home could save you a lot of money in the long run. A short term self-build mortgage can help you to get the materials and labour you need. In theory, you could build two adjoining houses and then sell the neighbouring property when it is complete. If you are smart with your expenses, this could be enough to pay off the entire self build mortgage. Then you would be living mortgage free in a house you built yourself.

Take in a lodger

Taking in a lodger or putting a room in your home up for rent on a home sharing website could help to boost your monthly income from your property. It might not be the ideal situation for everyone, but if you don’t mind opening your home to strangers, the extra income could go a long way to helping you pay off your mortgage early.

Should I use a mortgage broker or a bank?

When you are thinking about buying a house, your instincts might tell you to keep things cheap. This might mean going for the cheapest conveyancing quote, opting for a bank over a broker and even opting for the cheapest house survey. You’re already making a huge investment, so why wouldn’t you want to keep your costs down?

When it comes to choosing between a bank and a broker, many prospective buyers will choose the former because they are concerned about the fees associated with the latter. In this article, we will outline some of the reasons this can be a false economy.

While you might be saving yourself the fees in the short term, in the long term, opting for a bank over a broker can lead you to pay thousands and even tens of thousands more on your mortgage. Read on to discover why a mortgage broker can actually save you money over going directly to high street lenders or your own bank.

Access the whole market

By working with a mortgage broker, you will have access to a wider range of lenders. A whole of market broker is one with connections and contacts across a huge selection of providers. This means that they have in-depth knowledge of the products available from many different lenders.

This kind of access and overview of the market is invaluable when you are looking for the best deal on your mortgage. And the best brokers will also offer up-to-date offers, meaning you will be the first to hear about new offers as they become available.

Find specialist lenders

If you are in a unique situation then working with a broker can help you to avoid being rejected by high street lenders. For example, if you have poor credit or if you have unusual income from freelancing, for example, then a broker will be able to point you in the direction of a lender who is more likely to accept your application.

It doesn’t matter how unique you think your situation is, a whole of market broker will be able to help you navigate the mortgage application field. You could have poor credit, irregular income through self employment and be looking for a buy to let property and a whole of market broker may still be able to find you a lender willing to work with you.

Not only can they help people in unique situations but they can also help those who are looking for the best deals. You don’t have to settle for high rates from your bank just because you have poor credit history.

It’s also worth noting that having your mortgage application rejected can damage your credit score and prevent you from securing credit in the future. This is another reason working with a broker can be so helpful. You will be able to avoid rejected applications which can damage your credit score and make it harder to secure a mortgage.

Access expert advice

Searching for a mortgage can be overwhelming. Very few people are experts in this field, and why would you be? You only need to know the information for a short time, just enough to be able to make an informed decision. But the mortgage market is always changing and updating, which can make it hard to get up to speed. This is where working with a mortgage broker can really help. You don’t have to be an expert, because your broker is there to help you navigate the industry. They’ll help you to understand key terms and also avoid any hidden costs or difficult payment terms.

It’s convenient

Perhaps the most overlooked reason for working with a mortgage broker is convenience. You might think you are saving money by doing all of the research yourself, but your time is also worth a lot. If you want the convenience of knowing that everything is in hand and you can simply sign on the dotted line with confidence then a mortgage broker is perfect for you.

If you want to find out if a mortgage broker could help you in your unique situation, get in touch with Niche Mortgage Info today. We will be able to help you navigate the mortgage market and put you in touch with the right broker for your needs.

Is moving home harder than being a first time buyer?

The process of buying a home is stressful no matter how you look at it. But which is worse, being a first time buyer or selling your home and buying another? In this blog post, we’ll break down some of the obstacles you might come up against as a first time buyer and how you can overcome them. We’ll also look at how you can make selling up and moving home easier.

Whatever stage in the process you are currently at, it always helps to get expert advice. If you’re struggling to understand your mortgage options, get in touch with Niche Mortgage Info today and we’ll be more than happy to help clear up any confusion.

Help for first time buyers

In many ways, being a first time buyer is easier as you won’t have the stress of selling your existing home while trying to buy your new home. When moving home, there’s a lot more that can go wrong in the chain. Imagine you are buying a home from someone who has to buy their new home before they can sell to you. And then imagine the person buying your home also has their own home to sell. That’s a lot of steps that could go wrong. As a first time buyer, you only need to think about yourself.

However, first time buyers are often overwhelmed by the options available to them. Navigating the mortgage process for the first time can be very complicated. There’s also the issue of saving up enough money for the deposit and all of the additional fees. The good news is that there is plenty of support for first time buyers. According to one property developer, around half of all properties sold in the first half of 2019 went to first time buyers. This shows that the schemes are helping people onto the property ladder, so the support is out there.

Do estate agents have your back?

As a first time buyer, you might lean on the expertise of the estate agent to help you navigate the depths. However, it’s important to be cautious. The estate agent doesn’t work for you, they work for their seller. They only earn commission when the property sells, and many won’t mind saying what you want to hear if it helps you make a decision. Instead, you should turn to the people you are paying for support and advice. This might include your mortgage broker, solicitor or even your bank.

Moving home puts you in the driving seat

While selling one property and buying another might be stressful, this is when you will feel most in control. Suddenly, you’ll have estate agents on your side as they will want to do everything they can to secure your sale. Not only will you be able to take the wheel, you’ll also be more familiar with the processes. Conveyancing will just be another bit of paperwork, not something that keeps you awake at night.

Now that you know what to look for, you can pick your providers with ease. Look for a proactive estate agent with in-depth knowledge of your local area. If they offer suggestions on things that might sell your home sooner, then it’s worth following their advice.

So, which is harder?

First time buyers and those selling up and moving will both face struggles along the way. Getting on the property ladder is difficult, and once you’re there, the process of moving to a different home can be daunting. The important thing to remember is that you will have support every step of the way. If you aren’t sure what your next steps should be, get in touch with the Niche Mortgage Info team for advice.

Avoidable things that can reduce the value of your house

If you’re trying to sell your home, you want to give prospective buyers the best possible experience when they come to look around. While you don’t have to go the whole nine yards and bake cookies every time someone wants to view your home, there are some easily avoidable things that can actually knock value off your home.

Whether your home is priced for a quick sale, no one wants to receive an offer that is below the asking price. So, how do you make sure that buyers see the value in your property? Here at Niche Mortgage Info, we love to share our top tips on the easily avoidable things that can reduce the value of your home.

Neglecting the exterior

Imagine walking up to a home you’re hoping to purchase and finding the lawn overgrown, broken toys on the front steps and chipped paint on the window frames. You’re already going to be thinking of the home in terms of work that needs to be done. While some people are great at looking past these minor details, other people need help seeing your home in all its glory. Give them a helping hand by making sure the exterior of your home is just as inviting as the interior. Something as simple as a bright and fresh hanging basket can vasty change a visitor’s opinion about your home.

Pet or smoking smells

When looking around a home, buyers want to imagine living there. This can be difficult to do if they are distracted by bad smells from smoke, cooking or pets. When you decide to put your home on the market, it’s time to take control of the smells that you might be completely blind to.

Make sure you empty and bleach all bins.
Wash bedding and soft furnishings. Use a fabric-safe freshener on things that cannot be washed.
Wash the dog’s bedding, even if he protests.
Move any pet items to the garage or another area while you have viewings.
Deep clean your carpets using a professional cleaning machine.
Use heavily scented cleaners like Zoflora to effectively eliminate smells from your home.
Open the windows before a buyer comes to look around to allow fresh air in.

Clutter

As above, people find it hard to imagine living in a home when there is too much clutter. Clutter can also make rooms seem much smaller. The worst area for clutter is always the kitchen. Make sure your clean your countertops and put appliances out of view. Put away any washing up that may be on a drying rack.

In your bathroom, hide your everyday items in a cabinet or put them in a box as a temporary solution. Leave a few decorative items out so that your home doesn’t seem too barren.

In your bedroom, make sure clothes are put away and your bed is nicely made. The buyer isn’t judging your furniture, but it can be difficult to imagine buying your home if they can’t even see past the clutter.

The small details

There are so many small details that can really put off buyers. Replace any broken light bulbs and add lampshades to any naked bulbs. You should also make sure that light switches are free from grubby fingerprints as this can really put buyers off. If you have any spots of mould around your bathtub, use a mould and mildew spray to get rid of them. You can also use this to brighten dull grout. And finally, make sure your windows have been cleaned inside and outside recently. This can make a huge difference to the brightness of your home.