Conveyancing & Mortgaging
For an efficient service, we can recommend our partner solicitors who we have worked with ensuring their values are as dear as our own.
We have asked to ensure that they aim to communicate with you in a clear and timely manner ensuring your needs are at heart. They will help you through the legal processes of either buying, selling, re-mortgaging or releasing equity in your home with the objective of giving you clarity and understanding throughout what can sometimes be a difficult process .
Contact us today for a free no obligation quote.
Our partner financial advisors are proud to be able to provide free, professional, whole-of-the-market mortgage advice to clients of Urban Residential. With exclusive rates available, whether you are buying your first home, re-mortgaging, moving or investing in buy-to let-property, we have the right mortgage for you.
We can also provide advice on all of your insurance needs to cover the same.
Mortgage Market Review
The Mortgage Market Review (MMR) mostly came in to effect in April 2014 and are designed to protect consumers from the kind of reckless mortgage lending that would leave them unable to make repayments.
They were drawn up during the financial crisis and originally planned to come into force last summer but changes were made following consultation with lenders.
There is a new affordability check that may see applicants interviewed by a lender and asked about their income and outgoings.
Previously, many mortgage offers were based on a multiple of the buyer or homeowner's income. Now, more consideration will be given to the household budget and how much spare money is available to them.
That is likely to mean more detailed checks, with questions asked about anything from subscriptions to childcare costs.
Applicants will be expected to explain if they are predicting any significant change in their income or spending.
Lenders will also have to "stress test" an applicant's ability to repay if interest rates increased over a five-year period. This is expected to lead to some applications being rejected.
However, the Building Societies Association (BSA) said this did not mean that those on lower incomes or those only able to offer a small deposit would be frozen out of the property market.
Please see below some top tips below so you can get ‘mortgage fit’
Top mortgage tips:
Check your credit score:
- You can do this easily online with credit reference agencies like Experian and Equifax.
- Ensure all your information is correct - if it isn't, write to the agency and request that they change it. If you have a poor score, start making changes to improve it. Once your credit file is ready, bring it with you for the mortgage adviser to go through as it will make you seem better prepared.
Keep up-to-date with payments:
- If you have existing credit such as credit cards and loans, you must ensure that you keep up with the minimum repayments. If you are struggling to pay, speak to your provider as this may show favourably on your credit score. Try not to get too close to your credit limit or use overdrafts, as lenders may view this as 'excessive' debt.
- Up to a third of applicants are rejected because of missed payments and defaulting on credit. Applicants may also be rejected for taking payday loans and for betting patterns being evident on bank statements.
Try to save instead of spend:
- Applicants should strike a sensible balance on their disposable income and show a savings habit if they want to increase their chances of getting a mortgage.
- Be consistent and double check
- One slip-up on the application form could scupper your chances. This could be from a simple mistake, but it could also be from inconsistent information, which can flag-up possible cases of fraud and could stop an application.
- Submitting numerous applications in a short space of time could have a negative effect, as lenders will worry why you have been rejected before.
If in doubt, speak to an expert
For a free consultation please contact Urban Residential today.