Burger Menu

Why use a Mortgage Broker in Liverpool

Why use a Mortgage Broker in Liverpool | MoneymanTV

Today we live in an uncertain economic environment. Yet, in a world full of opportunities, therefore we like to be prepared, and when it comes to our finances, there is one thing we all desire: being well informed. 

Are you looking for mortgage advice in Liverpool? 

As a group of experts, we believe that there are some excellent reasons to use a mortgage broker in Liverpool, so here we will talk about both methods’ positives and negatives so that you can make the best well-informed decision. 

We know that there are many mortgages options out there, for example, you can still go directly to the lender, whether via a branch or online. However, we discovered that most people still use a mortgage broker in Liverpool due to the benefits it brings.

Using a Broker instead of a bank

You may not have much experience, but one thing is for sure: We all like to save some money. So, when we think of mortgage advice, one of the options that first comes to mind is to go directly to a Bank or Building Society, so that you won’t have to pay a broker fee. However, that option became unattractive when credit scores came in a few years ago, and people started looking for other alternatives.

Mortgage Products Offered by Lenders

Another of the mortgage products on the market are those offered by lenders that are only available directly. This strategy gets implemented to attract a fair business distribution from consumers and brokers alike. By being exclusive, they can turn on and off these products when they deem it necessary, this method often confuses the market and consumers.

However, from 2014 onwards, lenders were no longer allowed to sell mortgages without professional advice. Many consumers felt that non-advisors had been trying to push solid advice on them, and they weren’t able to benefit from some of the consumer protection. A benefit that accompanies sales conducted by professionally trained mortgage advisors is why most people still use this service.

Because of this, in late 2014, it was not unusual to have to wait more than a month just for an appointment, and it still happens today. Not the best scenario when you’ve just had your offer accepted on the house. So, many began to make their applications through mortgage agents, who assure you professionalism and a mortgage service the same day, like ourselves.

Affordability

Another important point when applying for a mortgage is affordability, no matter how good the deal is if it is not enough money. That is why we believe that a broker is a perfect option. With our mortgage advice in Liverpool.

We can assure you of the best deal and our service when you need it, in a professional and personalized way. When you call us, we try and put you through with a qualified mortgage advisor either immediately or at the very least, within the same day (unless requested otherwise).

We Can Handle Difficult Cases

Applying for a mortgage can sometimes be difficult. Each case is unique, and many reasons can complicate an application. Some examples are:

• Poor credit history.

• Self-employed income.

• Mixed source of deposit (savings/gift).

• Let to Buy (keep your current home and buy another).

• Contract workers / zero-hour contracts.

• Affordability.

In previous years, lenders could stand out from the competition by merely offering a similar deal but better than another lender. In modern times this is very different, with lending criteria being what separates one lender from another.

However, as we mentioned before, when we talk about our well-being and finances, we like to be well informed and consult with experts on the subject. Your situation is unique, and what you need is not a better loan than someone else’s, but a better one for you and one that suits your situation.

We offer a Free Mortgage Consultation

That’s why we think that seeking professional mortgage advice in Liverpool is the best alternative. When you explain your position to an experienced mortgage broker in Liverpool, there is a chance they have come across something a little similar in the past, allowing them to personalize their service and help you through.

With a little luck, professionalism, and much work, your mortgage advisor will be able to recommend the most suitable mortgage for you at the lowest possible rate.

More than that, though, it’s not just about getting the mortgage. Even if the application itself is straightforward, our clients trust our experience and knowledge for more than that. For example, we will discuss how much they will offer for the property they are buying.

Our team of mortgage brokers in Liverpool can recommend other professional services such as solicitors and explain the different types of surveys and protection available to them. 

Responsive service

Another significant advantage of using a mortgage broker is that they tend to be much more responsive than lenders might be. It’s not been unheard of for our team to work late at night, out of hours, working hard on client cases at full speed to ensure service is prompt, but also efficient. Our team is committed to offering our assistance when you need it and how you need it.

Another point that gets overlooked when looking at why clients may prefer a broker is that everyone is very busy. You may be self-employed in Liverpool, a full-time worker, a working mom and you need a mortgage but do not have time to do it, that is where your advisor can take the burden off for you.

Professional applicants especially see the benefits of these as they have clients of their own to charge for their services and appreciate the benefits of having an expert on board.

Personalized service

Technology is taking over, and the future of the mortgage market is no different. Perhaps in the future, we will see lenders who want to compete with the broker’s business. If this happens, they are unlikely to staff-up their branch networks.

Technology is excellent, and it is a service particular for customers who are happy to do business that way, especially for straightforward cases. However, for most people, there is an element of “reality,” a “human touch,” that you can’t get anywhere other than talking to a mortgage counsellor yourself.

The mortgage broker becomes your ally and can provide you with a satisfying experience, a complete service with all the benefits that the client requires and attention that technology cannot offer.

Having said all this, the reasons for hiring a mortgage broker in Liverpool are vast and if you want to ask any questions related to mortgages. Seek or obtain this service from the hand of a professional team adapted to your needs, get in touch, and we’ll put you through with a mortgage advisor in Liverpool as soon as possible.

Do I Have to use my Estate Agent’s in-house Mortgage Advisor in Liverpool?

Estate Agent Mortgage Advice in Liverpool

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…

Sales tactics of estate agents

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.

How can I arrange a mortgage in Liverpool?

Do it yourself online

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:

  • Check that you match the criteria for the “Best Buy” rates before you apply for them. If you are declined, it could leave a negative print on your credit file.
  • Make sure that you have researched what sort of mortgage you are looking for and the differences between them.
  • If you pick the wrong mortgage deal it can be costly to get this changed. So be careful of valuation and application fees before selecting a deal with minimum research. You should know that these fees will be non-refundable and it will be hard to switch deals without a big cost even if you find a better one.
  • If you choose to go at it on your own, you must know that you are responsible for progressing your application to endpoint and you will have to resolve any issues that you come across on your own.

Using your bank’s in-house Mortgage Advisor in Liverpool

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:

  • Your in-house advisor will not search around for the best deal, they are restricted to their products and their products only. They are also under no obligation to tell you about cheaper deals elsewhere.
  • You can swoop up a mortgage appointment in no time, although, their waiting lists can sometimes go up to 6 months.
  • Your bank may not have advisors that specialise in specific mortgage areas. This could be a problem if you are in the middle of a sticky mortgage scenario and need specialist help.

Using a Mortgage Broker in Liverpool

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!

Why Should I Use A Mortgage Broker? | MoneymanTV


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.

Mortgage Advice in Liverpool

Opportunity For Tenants Buying From Landlords In Liverpool

Open & Honest Mortgage Advice in Liverpool

We regularly receive questions from private tenants buying from landlords, often due to some landlords offering first refusal (the opportunity to buy before it hits the open market) to existing tenants. Even if you don’t have this privilege, it might still be an option and it is always worth asking your landlord if they would be willing to offer this to you in the event of a sale.

The government decided to crack down on tax relief previously available on Buy to Let Mortgages. The changes were brought in over a 4-year period and it is only now this has taken effect that they are starting to see the impact of these changes as they receive their tax bills.

Property has been a solid means of income and a worthy investment for landlords over the years. Some landlords opted to ride out the tax changes because they are in it for the long haul, with a lengthy career as a landlord in mind.

However, some landlords were tempted to sell up and move on. There are lots of advantages on their part to selling you the property you currently reside in, which is why many of them took that route. Here are some of those:

Advantages to tenants buying from landlords in Liverpool

  • Avoiding estate agents fees – the national average estate agents fee is 1.8% + vat so just by that factor alone, they’re saving a lot of money.
  • Loss of rent – it’s actually quite difficult to sell a house with a tenant already living inside. This is because tenants won’t typically put themselves out to do viewings on behalf of their landlord. Because of this, there is a chance that they will just move out, creating a “rental void” where no income is being received. Selling to the tenant guarantees rent will keep coming in right up until completion.
  • No refurb costs – if the tenant moves out then the chances are the house will need at least a lick of paint, if not more significant refurbishment to get it ready to put up on the open market. Selling to a tenant means no extra work needs to go into it, as they know the tenant already likes it that way.

There are also advantages for the sitting tenants buying from Landlords in these kind of circumstances. Some are these are:

  • You are already very familiar with the property as it is your home, and you are aware of any possible improvements that need work.
  • There is no property chain involved, so the sale is less likely to fall through.
  • The landlord may offer you a slight discount from the open market value because of the costs they are avoiding.

Experienced Mortgage Advisor in Liverpool

Product Transfer V Remortgage Mortgage Advice In Liverpool

What is product transfer?

When your initial mortgage deal reaches the end of it’s term, your mortgage lender may offer you a new deal to stay with them. This process is known as a product transfer.

Are you rewarded for being loyal?

Unfortunately, lenders do not always reward customers for their loyalty over the years, and the offer they make may not be as competitive as deals you could have access to if you go elsewhere. They are more likely to reward a First Time Buyer in Liverpool than they are someone looking to Remortgage in Liverpool.

Tempted by an online switch?

Whilst the concept of swapping to a new deal with your current lender may seem like an easy process online, it is always in your interest to see what other deals you may have access to. Lenders will also try to tempt you towards a new deal without actually taking mortgage advice.

This can be really dangerous because if you undertake this process without professional mortgage advice you are waving goodbye to all the valuable consumer protection you would otherwise have benefitted from by speaking with a Mortgage Advisor in Liverpool.

You’ll be opting out of advice

We have seen many examples of customers affecting these “follow-on” deals and locking themselves into a deal that doesn’t benefit them and isn’t appropriate to their personal circumstances. Because you opted out of advice, you then give up your right to making a complaint if you don’t like something.

We had a case in the past where a customer who was pregnant did this and was declined for a small further advance to fund some necessary home improvements down the line. She then had to pay a large early repayment charge to swap to a new lender who would grant her further funding.

Always, get mortgage advice in Liverpool

If we think a product transfer is the most suitable deal for you we will recommend that as a course of action for you and if we arrange the mortgage for you as a Mortgage Broker in Liverpool then all the regulation and consumer protection will apply.

A second opinion costs nothing, and making a mistake when taking a new product can be costly. We will do our best to ensure you take the right path with your mortgage.

The Remortgage Market in Liverpool is highly competitive and savings can generally be made by searching the market for a new deal.

Agreements in Principle: Hard & Soft Credit Searches

An Agreement in Principle (also referred to as an AIP), is a piece of documentation you are given once you pass the lenders credit score. You will need one of these if you wish to qualify for a mortgage. Having an Agreement in Principle allows you to make an offer on a property you are interested in, as well as assisting when you want to negotiate on price, as it shows the seller you’re serious about your offer as a First Time Buyer in Liverpool.

What Is A Soft Credit Search For A Mortgage? | MoneymanTV

What effect does an AIP have on your credit score?

The effects of an Agreement in Principle on your credit score, completely depend on whether the lender takes a hard credit search or a soft credit search. What are the differences between these? Below we’ll answer this.

Hard credit searches:

Hard searches are more in-depth than soft searches. The main difference between hard and soft searches is that hard searches leave a footprint, which can negatively affect your credit score if you fail it too many times. If you have a good credit score however, you shouldn’t need to worry going into this as a First Time Buyer in Liverpool.

Soft credit searches:

The option you’re more likely to come across these days is that a lenders soft search. These are to hard searches, what a lite phone model is to the main release, usually requiring less information and in the majority cases leaving your credit score unaffected, even in the event of not passing.

Does an AIP guarantee me a mortgage in Liverpool?

Although an Agreement in Principle can be a massive help, it doesn’t always guarantee that you will successfully obtain a mortgage. The lender will still need you to provide them with documents in order for the underwriter to make their final decision.

You can usually find small print included on Agreements in Principle that may easily be missed. We find in some cases, when customers reach out for help about their Agreement in Principle, they’ve been turned away at full mortgage application stage.

The documents you will be required to provide can include; personal ID, payslips, bank statements and things of that ilk. As your dedicated Mortgage Broker in Liverpool, we take pride in helping our customers, whether Moving Home in Liverpool or Self Employed in Liverpool, get prepared for a mortgage.

Is my AIP a necessity when making an offer?

You may be able to get away with this, however, most credible estate agents will want evidence that you are able to proceed with the purchase in question.

How long will my AIP last For?

Your Agreement in Principle will usually need renewing after around 30-90 days, though this isn’t something you should worry about. The main reason we recommend getting one so early is to avoid being told the property you’re interested in is no longer available for purchase.

Getting your Agreement in Principle sorted also means you don’t just need to jump in and buy the first house you see. It’s a fairly easy process, so if it expires, we can quite easily help you get another one.

Mortgage Broker in Liverpool

How to get a Mortgage Agreement in Principle in Liverpool

What is an Agreement in Principle? | MoneymanTV

What is a mortgage agreement in principle?

The purpose of a mortgage agreement in principle (AIP) document is to prove that you do have a mortgage in place. To the estate agent, it proves you have good enough credit to proceed, as you have passed the lenders credit scoring system. That being said, getting a mortgage can never be guaranteed, as a full application will still require further background checks.

The value of a mortgage agreement in principle

Now you have your mortgage agreement in principle, what do you do with it? Well, having your mortgage agreed at the outset can help you negotiate on asking price with the owner of the property. It is relatively easy to obtain and is something we can arrange for all of our clients. Almost all lenders offer an Agreement in Principle.

To proceed further with a mortgage application, you will require further background checks to cover things like evidence of income, as well as a satisfactory valuation of the property itself.

Getting one in advance can really put you in a better position for negotiating, can help you avoid disappointment and allows you to figure out your limits.

Negotiating power with a mortgage agreement in principle

When you reach the point of being ready to make a formal offer on a new home, the majority of estate agents will undertake due diligence and ask you to prove that you can in fact afford to complete the purchase. Sufficient evidence of this include bank statements and also an agreement in principle certificate, which our team can provide for you. Once you have provided them with all this documentation, the estate agent will usually cease marketing the property and put a “sold” or “sale agreed” board up to let people know a deal is currently being processed.

If you already have a mortgage agreed before you make an offer, you are instantly more appealing to a seller as this proves you are not making this choice lightly and you’ve thought about how you’re going to afford the purchase. This might persuade a seller to accept an offer you put forward on their property that may be underneath their initial asking price.

Avoid disappointment with a mortgage agreement in principle

When it comes to buying a house some customers go full steam ahead and make an offer on a property without first checking that they have the means to proceed with the purchase. This can understandably leave people feeling very disappointed if this doesn’t quite work out how they’d hoped.

By that point they may have already got their heart set on their new potential family home. By getting in touch with us early on, this disappointment can be avoided. Sometimes there are things that are causing a mortgage to decline that can be overcome over time.

For example, there may be a small issue on your credit report that is proving to be a nuisance, perhaps a disputed mobile phone bill which can be easily fixed. Maybe you thought you were on the voters roll and you’re not, something that over time can be solved. In any case, it’s better than you know ahead of time, rather than mess people about. Our team will be able to tell you what you need to do to improve your credit score for the future.

Knowing your limits with a mortgage agreement in principle

Ok, so you know you’ve got a good credit rating because you’ve never been turned down for credit, you’re registered on the voters roll and you’ve always made your credit card payments on time – so what can go wrong?

Well, you could approach 10 different lenders these days and get 10 different maximum mortgage amounts! They all calculate affordability in their own unique ways. If you’re self-employed it really is a minefield: some lenders take your net profit, others your salary and divided. Some use your latest year, others an average over 3 years.

Knowing your borrowing limits is important as then you know for sure what your price range is. We’ll be able to advise you of the maximum mortgage available to you. Also, more importantly, together we’ll work out how much you can afford to pay back each month.

Mortgage Advice in Liverpool

Different Types Of Mortgages Explained

The Different Types of Mortgage Available in Liverpool

At the start of your mortgage process, you will soon realise that there are many different options available. If you are First Time Buyer in Liverpool, you are probably thinking “How could there be so many different types of mortgage?”

In this article we will provide a list of the most popular types of mortgages available on the market and hopefully answer any questions you have about them.

What is a fixed-rate mortgage?

What is a Fixed-Rate mortgage? | MoneymanTV

A fixed-rate mortgage means that your mortgage payments are not going to change for the length of your term. You are able to choose the length of this yourself, with common choices being 2, 3 or 5 years or longer. Regardless of what happens to inflation, interest rates or the economy, you have the security of knowing that your mortgage, likely your biggest outgoing payment each month, will remain the same.

What is a tracker mortgage?

What is a Tracker mortgage? | MoneymanTV

A tracker mortgage means that your interest rate will track the base rate set by the Bank of England. What this means is, the lender that you are with does not actually choose the rate that will be applied, and you will be paying a percentage above the Bank of England base rate. In an example, if the base rate is 1% and you are tracking at 1% above base rate, you will be paying a rate of 2%.

What is a repayment mortgage?

What is a Repayment mortgage? | MoneymanTV

When you take out a repayment mortgage this means that each month you are paying back a combination of both interest and capital. Providing that you keep your payments going for the full length of the mortgage term, you are almost guaranteed to have fully paid off the mortgage by the end of your term, resulting in the property becoming solely yours.

This is probably the most risk-free way to pay your capital back to the lender. Early on into your mortgage term, it is mainly the interest that you are paying and your balance will go down at a rather slow rate, especially if you have taken out a 25, 30 or 35-year term. The benefits of this arise in the last ten years or so of your mortgage, where your payments are covering more capital than interest and the balance will go down at a much quicker pace.

What is an interest-only mortgage?

What is an Interest-Only mortgage? | MoneymanTV

Whilst many Buy to Let Mortgages are set up on an interest-only basis, it is much harder task to get a residential property on that same basis.

The likelihood for lenders to offer an interest-only product now is a lot less than it was.  That being said, there are certain circumstances where this can be a viable option, including things like downsizing later on in life, or having other investments what you will use to pay the capital back. Lenders have stricter rules when it comes to offering these products now and the loan to values are a lot lower than they used to be.

What is an offset mortgage?

What is an Offset mortgage? | MoneymanTV

With an offset mortgage, the lender will set you up a savings account to work alongside your mortgage account. How this works is that, for example, if you have a mortgage balance of £100,000 and £20,000 is deposited into your savings account, you would only be paying interest on the difference, which in this case would be £80,000. This can be a much more efficient way of managing your money, especially if you pay a higher rate of tax.

Mortgage Broker in Liverpool

What do Lenders Look for When Assessing my Bank Statements?

What Do Lenders Look For On My Bank Statements? | MoneymanTV

When lenders ask for your bank statements, you can expect them to look for a wide range of things. However, their main goal is to assess whether you are the kind of person who handles money responsibly and is likely to keep up to date with their mortgage payments.

In recent months one question is being asked by applicants speaking with one of our Mortgage Advisors in Liverpool: “do gambling transactions look terrible on my bank statements”.

Questions to Consider

What has it got to do with the lender whether I gamble or not?

Whether you have an annual bet on the grand national or regularly use the internet betting sites. Clearly there is nothing illegal about properly licensed gambling.

Many people can see gambling as a mainstream hobby or pastime similar to many others. Still, it shouldn’t get forgotten that even the gambling advertisers urge customers to “please gamble responsibly” and this is the key to bear in mind when applying for a mortgage.

Consequently, whilst it is not a lender’s job to tell you how to live your life, how to spend your money or indeed to moralise on the ethical rights and wrongs of gambling, they do have a duty (underscored by mortgage regulation) to lend responsibly.

Suppose lenders need to prove to the regulators that they are making sensible lending decisions. In that case, it isn’t entirely unfair of them; therefore, to expect the people to whom they lend to adopt a similar approach when it comes to their finances.

Think about it. If you were lending your own money. Would you lend it to the applicant who gambles or the one who doesn’t?

I’ve got gambling transactions on my recent bank statements?

As mentioned above, it is not illegal to gamble so just because you have the odd gambling transaction on your bank statements it doesn’t automatically mean you will get declined for a mortgage.

However, the lender will consider whether these transactions are reasonable and responsible. Thus they will mainly look at the frequency of these transactions, the size of the transactions about the person’s income, and the impact upon the account balance.

If these transactions are infrequent small amounts that make no significant impact on a regular credit bank balance, then they are not likely to be regarded as necessary.

However, if you bet most weeks or you get overdrawn the lender continuously, therefore, expected to see that as being irresponsible and decline your application.

Is there anything else lenders wouldn’t want to see on my bank statements?

As we’ve seen, essentially lenders are looking at your bank statements to show how you manage your money and to help them establish whether this gives them either the confidence that you are financially sensible or the evidence that you are not.

Remember, lenders are financial institutions that, either directly or as part of a wider group, often sell current accounts, overdraft facilities credit cards and personal loans, so understand that these things can all play a considerable role in prudent financial planning.

The key for a mortgage applicant is how these facilities get managed. For example, having an overdraft facility and occasionally using it, is not inherently a bad thing; regularly exceeding the overdraft limit – not so good.

Consequently, lenders will look for excess overdraft fees or returned direct debits because these would generally show that the account is not being well conducted

Other things to look out for include credit transactions from payday loan companies; “undisclosed” loan repayments (i.e. if you said on the application that you have no other loans but there appear to be regular loan payments, this could be a problem).

They would look out for any missed payments; finally, they might also consider how much of a typical month get spent overdrawn – namely if you only go into credit on payday and for the rest of the month are exaggerated, how sustainable is this mortgage?

What can I do to improve things?

The simple answer is – be sensible and, if possible, plan. Typically, a bank would ask for up to three months of your most recent bank statements.

These will show your salary credits and all your regular bill payments. Thus, if you know you’re likely to want to apply for a mortgage in the not-too-distant future. Try to make sure that you avoid any of the above pitfalls.

Take a break from gambling for a short while. Then work on presenting your bank account in the best possible light.

Your mortgage broker can help you as some lenders may ask for fewer bank statements than others. Or indeed some may not even ask for them at all.

However, even these lenders would reserve the right to request bank statements in certain circumstances. So your best bet is to be as prudent as possible in the run-up to any mortgage application.

Remember, if you do gamble, please gamble responsibly!

Specialist Mortgage Advisors in Liverpool

If you are a first-time buyer in Liverpool who doesn’t know a lot about mortgages. You should get some specialist mortgage advice from a Mortgage Advisor in Liverpool.

We can guide you through the whole mortgage process and help you with your application. To get you on track so that lenders will be impressed.

How Much Can I Borrow For My Mortgage In Liverpool?

How Much Can I Borrow For A Mortgage | MoneymanTV

How much can you borrow?

Are you a budding First Time Buyer in Liverpool? Maybe you haven’t thought about Moving House for quite a while? In either of these cases you are probably asking yourself one of, or both of the following questions; “Can I get a mortgage in my situation?” and “How much can I borrow?”. These are two questions we hear regularly when providing mortgage advice in Liverpool. In this article, we explain the latter, something that over the last 10 years has changed quite a bit.

How much were you used to be able to borrow?

If we look back at the ’80s and ’90s, most mortgage applications were underwritten manually. This means there was lots of “human intervention” in the mortgage application approving process. You’d make an appointment with your local building society manager, and he or she would interview you about your circumstances.

They would encourage you to save with them for a while until you prove yourself to be good enough to handle credit. The manager would then grant you what was the equivalent of today’s Agreement in Principle. Following this you would receive mortgage advice and an estimation of how much they would be able to lend you.

At face value, this sounds very much like a highly personalised process with a common-sense approach. That being said, it could often lead to inconsistent decision-making. The manager had the discretion to interpret the lending manual as they saw fit. What this means is that you could possibly approach the same Building Society in a different town or city and the result would come out different.

To make sure things like this stopped happening and more importantly, to cut costs, lenders moved to automated affordability calculations. “Caps” were applied so they would lend you more than, say, 3 or 4 times your standard household income.

As the 2000s went onwards, lenders were becoming more and more generous in the amount they would lend customers. Some lenders would even offer self-certified mortgages, meaning no background checks were taken so they were taking the applicants word on how much they were earning!

Such practices of course failed, and the market crashed. 2008-2010 were very difficult years if you were trying to get on the property ladder, as the market was in a poor state. Lenders stopped lending for the time being and created a very cautious (over-corrected) lending environment.

How much can I borrow nowadays?

The market eventually (and thankfully) recovered, and in 2014 the regulator launched the Mortgage Market Review (MMR). This was a brand new set of rules for lenders to follow. The old-style income multipliers which took little account of household expenditure were now gone.

Before 2014, two applicants earning the same could borrow roughly the same as each other, regardless of the little details and differences, including how much they spent each month. Then came brand new affordability models. These took a much more forensic view of how mortgage applicants managed their money on a monthly basis.

There is still a “cap” in place (most lenders will not go past 4.75 times your annual income) but your spending habits are also analysed more harshly. So, for example, if you have high childcare costs, lots of credit commitments and a student loan, it is likely you will be offered less than your work-colleague who doesn’t have any of these things to pay for.

We still find ourselves regularly surprised by the large variances lender to lender in how much or little they will lend customers. Some lenders seem to penalise low-earners (they may only want one type of applicant) and some take pension contributions as a fixed outgoing, so would often lend the likes public sector worker with a big pension deduction less than a private sector.

If you need to maximise your borrowing capacity to obtain the home you need to buy then you’ll need the help of a trusted and experienced Mortgage Broker in Liverpool on your side. Our advisors are able to research the market on your behalf to see if anyone will lend you the amount you need.

Before you take out a mortgage you should sit down with a Mortgage Advisor in Liverpool and work out your finances together to ensure that the repayments are to the level you were expecting.

Mortgage Broker in Liverpool

Here at Liverpoolmoneyman, we offer a free initial mortgage consultation for all customers. Contact us and we’ll get you booked in as soon as possible.

Forces Help to Buy Scheme Has Been Extended

Positive news for those who served in the military, as according to Army Families Federation Defence Secretary, Ben Wallace, the current Help to Buy scheme that was designed to help military personnel get onto the property ladder has had an extension!

Originally announced back in 2014, this £200 million scheme was created as a means to boost anyone from the forces who needed help purchasing a home. Though it was meant to end in December 2019, as a token of gratitude for their commitment to serving this country, the government has extended this until the end of December 2022.

How does this help to buy work?  

Those who have served or are currently serving in the military have access to a borrowed deposit of up to half their annual salary (the maximum being £25,000), without any interest added on. This amount can then be used to either purchase their first property or remortgage for any home improvements, such as a new kitchen or an extension.

What makes this so great, is that this means you don’t need any current savings to get onto the property ladder. Some of the money raised from the loan you’ll receive via the scheme can also be put towards other costs, such as: 

  • Stamp duty 
  • Estate agent fees 
  • Solicitors fees 

Most lenders will accept the loan towards the deposit for a new home. In a better deal than other schemes, the Forces Help to Buy loan can be paid back over a period of 10 years, meaning you’re less stressed and don’t feel rushed.

No matter where you thought you stood in regard to the property ladder, if you have served your country, you are eligible to purchase your home using this government scheme.

Click here to read through more information from the Government.

How a mortgage advisor in Liverpool may be able to help

Our dedicated mortgage advice team in Liverpool will be supporting you from day one. Right from your initial enquiry, right through until competition and beyond, your mortgage advisor will be there to help, ensuring that you end up with the most appropriate result for your personal circumstances.

Contact us today and see how we might be able to help you achieve your property owning dreams. 

Please note, the Forces Help to Buy is not the same as the standard UK Help to Buy scheme.

Liverpoolmoneyman.com & Liverpoolmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited registered in England, registered number 6789312 and registered office 10 Consort Court, Hull, HU9 1PU.

© 2021 Liverpoolmoneyman

Liverpoolmoneyman, Rodney Chambers, 40 Rodney Street, Liverpool, L1 9AA.

Moneyman Logo







Moneyman Logo




Moneyman Logo







Moneyman Logo

Book your Free Consultation

7 Days 8am - 10pm

Moneyman Logo

Moneyman Logo

Moneyman Logo

Ask Your Question





    Moneyman Logo