Can Mortgages be Transferred?

 

Making the decision to transfer your mortgage and completing the transfer is sometimes quick and easy, but can also be a tiresome exercise if you don't know all the information about the process ahead of you. Oftentimes, when people choose to transfer their mortgage, it has been a considered decision that reflects the best interests of everyone involved – but they still might not have all the knowledge they need to start the process of transferring a mortgage.

In this Octagon Capital guide, we've broken down everything you need to know about mortgage transfers, including: what a mortgage transfer is, what an equity transfer is, if joint mortgages can be transferred to one person, if you can move your mortgage to another house, and amongst other things, how mortgages work when you decide to move house.

What is a mortgage transfer?

Sometimes known as porting a mortgage, a mortgage transfer is when you move your mortgage from the property it is currently for, to a new property. Mortgage transfer can also refer to the process of adding, removing or replacing a person on a mortgage agreement, such as in a divorce or separation.

Many people are not very informed of the ins and outs of the process of mortgage transfer, and have many questions when it comes to how it all works. That's why we've compiled this guide of what you need to know when transferring a mortgage – whether to another property or to someone else.

What is an equity transfer?

An equity transfer is where a person on the mortgage agreement is added, replaced, or removed. This is sometimes just known as a mortgage transfer, showing how important it is to know the different terminology that can be used throughout the process to ensure you make the most informed decision you can.

Equity refers to the portion of the property that a person legally owns. This is worked out through the amount of the mortgage that has already been repayed, as well as the split between people on the same mortgage. This equity is then taken on by another person.

 

Can mortgages be transferred?

 

Can mortgages be transferred? FAQs

If you've never transferred your mortgage to another property or person, it can be difficult to know how it works and which changes are allowed, and which are not. We've brought together all of our most frequently asked questions about mortgage transfers and equity transfers to help you throughout your mortgage transfer.

Can a joint mortgage be transferred to one person?

Yes, it is possible to transfer a joint mortgage to one person through a transfer of equity. It's important to make yourself aware of your lender's rules or policy on mortgage transfer so you know what to expect.

Before the joint mortgage can be transferred to one person, your lender, whether your current lender or a new mortgage lender that you would like to switch to, will want to make sure that you can afford to pay the mortgage off on your own. They will conduct various affordability checks to make sure you can afford the monthly repayments and will likely check your credit history too.

If the lender deems you eligible to transfer your joint mortgage, one partner usually buys out the other person's portion of the mortgage. If your lender doesn't offer what you need, there is the option to remortgage and find a new lender with a better interest rate.

Can a mortgage be transferred in a divorce?

Yes, mortgages can be transferred in a divorce or separation. The same process applies in this instance as for any other instance of transferring a joint mortgage to one person. We've covered this in more detail in a previous article, which you can find here.

 

Can a joint mortgage be transferred to one person

 

Can I move my mortgage to another house?

It is possible to move your mortgage to another property – by 'porting' your mortgage – in many instances.

However, some people do struggle to port their mortgage. The main reasons why some people struggle to transfer their mortgage to another property is because they no longer pass any revised affordability checks from their lender, or they are looking to borrow a larger sum of money. It's important to note that being unable to transfer your mortgage is not the same as being unable to swap your mortgage, wherein borrowers are 'mortgage prisoners'.

How do mortgages work when you move house?

When you move house to a new property, your mortgage needs to either be transferred to another property or to another person who will become financially responsible for the property. When porting your mortgage to a different property, you can either stick with the same lender if they have a low interest rate, or remortgage with a lender who offers a better interest rate. It's essential here to check if there will be any exit fees for remortgaging, as these should always be factored into your predicted costs.

 

As always, before committing and making any big financial decisions, it is absolutely imperative to speak to mortgage advisers and also to make sure that you can afford the move you want to make through a mortgage transfer. Make sure that you are only ever borrowing what you know you can afford to pay back. Defaulting on mortgage repayments or any other loan repayments can result in a cycle of debt due to late fees, as well as a damaged credit score and history.


Mortgage-Brokers-Negotiate-Fees

Can I Switch to a Fixed Rate Mortgage?

The process of buying a house can be exciting and scary at the same time. When it comes to taking out a mortgage to help you buy the property of your dreams, you need to make sure you're clued up on what the different types of mortgage available to you are, and how they differ.

Fixed rate mortgages offer some well-needed stability in the current cost-of-living crisis. As people with fixed rate mortgages are able to predict what their monthly mortgage bill will be, they are better able to budget their finances. If you don't have a fixed rate mortgage, you may feel stuck paying high interest rates with little way to predict what these payments could go up to. The good news is that it is possible to switch to a fixed rate mortgage.

Our Octagon Capital blog explores what fixed rate mortgages are, what impacts your eligibility for one, the benefits and disadvantages of fixed rate mortgages, and whether or not it is possible to switch to a fixed rate mortgage from a variable mortgage. Read on to find out more.

 

What is a Fixed Rate Mortgage?

With a fixed rate mortgage, the interest rate on your mortgage remains the same throughout the duration of your mortgage. Whereas with a variable mortgage the interest rates you are charged fluctuate according to the economic environment of the time, fixed rate mortgages stay the same as when you first took out your mortgage.

As with any type of mortgage, fixed rate mortgages are long term investments, and a huge commitment. If you aren't sure whether or not you would be able to meet your scheduled mortgage repayments, you shouldn't take one out. Defaulting on mortgage payments can damage your credit score – making it more difficult to borrow money in the future – and incur late fees. Only ever borrow what you know you definitely afford to pay back.

 

What Impacts Fixed Rate Mortgage Eligibility in the UK?

Your eligibility for a fixed rate mortgage can be impacted by a number of different variables, including but not limited to:

  • The amount of money you're looking to borrow.
  • How much money you have towards a deposit.
  • Your employment status, and any debts you may have.
  • The kind of property you are hoping to buy.
  • Your credit rating.
  • Your regular spending and how affordable the mortgage is for you.

 

As with any type of mortgage, fixed rate mortgages are long term investments, and a huge commitment. If you aren't sure whether or not you would be able to repay a mortgage, you shouldn't take one out.

 

What are the Benefits of Fixed Rate Mortgages?

People choose to take out fixed rate mortgages for a variety of different reasons. Some of the benefits of having a fixed rate mortgage include, but aren't limited to:

  • With a fixed rate mortgage, you will have a solid idea of what your mortgage bill will be each month, helping make it easier to budget and plan effectively.
  • If the interest rates are low at the time when you take out a fixed rate mortgage, you can benefit from these lower rates throughout the term of your fixed rate mortgage.
  • By choosing a fixed rate mortgage, you afford yourself some protection against increases to interest rates from the Bank of England.

 

What are the Disadvantages of a Fixed Rate Mortgage?

There are also some disadvantages to fixed rate mortgages. This includes:

  • If interest rates fall drastically, those with a fixed rate mortgage will have to refinance and remortgage to take advantage of these rates. With this comes the extra fees and costs associated with taking out a mortgage.
  • Fixed rate mortgages usually have early repayment fees, often charged as a percentage of the outstanding mortgage balance.
  • Some lenders restrict the amount you can overpay on a fixed rate mortgage each month.

 

 

Can I Switch to a Fixed Rate Mortgage?

Yes, it is possible to switch to a fixed rate mortgage. However, to do this, you will most likely need to remortgage.

In the current financial climate, many people are considering switching from a variable rate mortgage to a fixed rate mortgage, because of how volatile the markets are right now. Before you make this decision to switch to a fixed rate mortgage, you should consider all the pros and cons of fixed rate mortgages, and whether it will cost you additional money to do this.

As always, before making any big financial decisions, it's imperative to speak to advisers and also make sure you can afford the move you want to make. Make sure that you are only ever borrowing what you know you can afford to pay back. Defaulting on mortgage repayments or any other loan repayments can result in a cycle of debt due to late fees, as well as a damaged credit score and history.

 


Savings-for-a-mortgage

Can You Get a Mortgage With No Job if You Have Savings?

You may still be able to get a mortgage with no job, but it is more difficult. If you can prove to a lender that you have a sizable savings account, lots of assets or an alternative source of income, it may be possible.

 

Do Mortgage Lenders Look at Savings?

Mortgage lenders will look at any depository accounts on your bank statements; this includes any checking and savings accounts as well as any open lines of credit. Thus, if you do not have a regular income from a job, lenders will still take into account your savings to assess mortgage affordability.

If you want to highlight your savings to mortgage lenders, experts recommend showing lenders that you have enough money saved; the equivalent of six months or more of pay stubs.

 

Can You Get a Mortgage if You Have No Job?

If you are currently unemployed, whether by choice or after losing your job, it may be more difficult to secure a mortgage. Lenders typically look at a borrower’s salary in order to assess how much money they are willing to loan. Within this, many lenders will even specify a minimum income.

However, some mortgage providers are more flexible than others in how they define “income”. If this is the case, these lenders may accept savings accounts as long as you can prove that your monthly income is sufficient to meet payments.

If you are unemployed, you will usually need to have a good credit history as well as be able to put down a decent amount of down payment in order to secure a mortgage. Often, no-income loans, including mortgages, will come with higher interest rates and you will not be able to borrow as much money.

Mortgage No Job

How Do You Qualify for a Mortgage When You Are Unemployed?

If you are applying for a mortgage and cannot prove employment, you will need to be able to demonstrate some source of regular income which could include savings. Lenders will also require a good credit history. Regardless of whether you are unemployed by choice, such as taking retirement, or have lost your job, you will need to prove to any lender that you can make regular payments on time.

One way that you may be able to qualify for a mortgage whilst unemployed is by having a co-signer; this might be a relative, spouse or friend. This co-signer will need to be employed or have a high net worth. Co-signers make the mortgage less of a risk for the lender as they are securing the loan with their income and credit history.

 

Other Ways To Qualify for a Mortgage if You Have No Job

There are many ways you might be able to qualify a mortgage even if you are not in full-time employment:

Part-time employment, freelance work or gig economy experience - if you are able to demonstrate that you are on an employer’s payroll on a partime or freelance basis, it will help your case with lenders as long as the income is sufficient to qualify for the mortgage you are trying to secure. This should present to the lender that you have been able to generate a fairly stable income and have been able to support yourself financially.

Diverse sources of income - if you do not have one full-time job but can demonstrate that you have more than one source of regular work, it can help present yourself as financially stable to any potential lenders.

Tax payment - showing lenders your tax returns can help verify your income, especially in the absence of regular paychecks.

Exemplary credit record - if you do not have traditional employment, a good credit score shows lenders that you are a reliable borrower and can comfortably meet your financial obligations regardless of your job situation.

Boost your net income - lenders are most interested in your net income and look at this to see if you can meet payments.

Increase your down payment - the higher the down payment you are able to put down for a property, the less a lender has to put forward and the less risky it is for them.

Undergo a pre-qualification or pre-approval - if you get pre-qualified or pre-approved before bidding on a house, it can help dispel any concerns for the seller.

 

How Can I Demonstrate Eligibility for a Mortgage if I Have No Job?

In order to take out a loan when you are unemployed, you will still need to demonstrate how you will be able to meet repayments and show lenders that you have a solid credit history.

If you are unable to prove employment, you will most likely need to share the following information:

  • If you have missed any utility bill payments
  • How much credit you currently have available
  • If you have previously been declined for loans and how many times
  • If you are on the electoral roll

Lenders will only accept mortgage applications for the unemployed if they can be sure that you are able to meet monthly repayments. Demonstrating that you are able to make payments on time and can manage debt in a responsible manner will make you more likely to qualify for a loan.

 

bills
If you want to take out a loan when you are unemployed, you will still need to demonstrate how you will be able to meet repayments and show lenders that you have a solid credit history.

 

Can I Buy a House Without a Mortgage if I Have No Job?

Although mortgages are the most common way to purchase a home, there are other ways to purchase a house without the need to take out a loan, says When The Bank Says No.

Cash Purchase

If you are fortunate enough to have enough funds available to purchase a house outright, you may be able to save enough for a cash purchase. This is especially possible if you are a two-income household and can live comfortably off a single income for a few years.

In the case that you have no job, you will need substantial savings in order to afford this option or will need to be buying a house with someone who has enough income to support you both for the foreseeable future.

Sell Your Home To Purchase Another One

If you are already a homeowner and want to downsize or change living situations, you can sell your existing property and use the profit to purchase another home. This is only really a possibility if you have plenty of equity in your current home.
This can be a great option for those looking to downsize or move to a more cost-effective area where you could get more for your money.

Use an Investor

If you are looking to buy a house or property as an investment property, you may find it difficult to secure a mortgage, especially if you have no job.

Getting an investor to cover the expense of buying and renovating the home can be a good option. Many investors will be able to provide cash up front in order to buy the property and pay for any home improvements. Once the property is flipped and sold, you will split the proceeds with the investor.

 


Mortgage in Principle

How Long Does a Mortgage in Principle Last?

Choosing to take out a mortgage is a huge decision for anyone, no matter their circumstances, and one that should never be taken lightly. As your credit rating, capital, and property are all at risk when you take out a mortgage if you fail to make your scheduled repayments, this is a decision you should never rush into.

We've brought together all you need to know about having a mortgage agreement in principle, including how long a mortgage in principle lasts and what happens when it expires. Carry on reading for our Octagon Capital guide to mortgages in principle:

 

What is a Mortgage in Principle?

Before we get into the details about how long a mortgage agreement in principle lasts, it's important to make sure you fully understand what a mortgage in principle is, and how it differs from a standard mortgage. Mortgage agreements in principle are sometimes known as a decision in principle or a mortgage promise.

Put simply, mortgage agreements in principle are a way of understanding how much money you could borrow, before you actually apply for a mortgage. This involves a soft credit check, which does not impact your credit score. There's also no obligation with a mortgage agreement in principle, meaning you are under no pressure to accept that specific mortgage offer from the lender.

A mortgage in principle is a written indication from a bank or building society that states how much it might be prepared to lend you for a mortgage. Much as decision in principle is not binding on your part, it also is not binding on the part of the lender – they can still refuse to offer you funds for a variety of reasons. Mortgage agreements in principle provide you with an idea of the amount of money you may be able to get as a mortgage, before you start actually applying for one.

Mortgage in Principle Quote

What are the Benefits of a Mortgage in Principle Agreement?

There are several reasons why someone might choose to get a mortgage in principle, but many people choose to get a decision in principle because of the many benefits it offers, and insights it can provide you with. Some of the reasons why someone might choose to take out a mortgage agreement in principle include, but aren't limited to:

  • Mortgage amount – you get a clearer understanding of how much money you are likely to be offered as a mortgage.
  • Know your limits – by knowing the amount you could get as a mortgage, you can figure out what you can actually afford to spend on a property, helping to ensure you don't go over budget when searching and end up in debt.
  • Soft credit check – a mortgage in principle does not involve a full credit check, meaning your credit score will not be impacted. This means that there is no knock-on impact on your ability to take out any other loan products in the future.

 

Man-signing-mortgage-application
A mortgage in principle is a written indication from a bank or building society that states how much it might be prepared to lend you for a mortgage.

 

How Long Does a Mortgage in Principle Last?

A mortgage in principle typically lasts between 30 and 90 days, however this is dependent on your lender. It's really important to double check the terms of your mortgage in principle with your lender, so you know how long it is valid for.

 

What Happens if a Mortgage In Principle Expires?

When a mortgage in principle expires, it should be relatively simple to get another one. This means that if you didn't manage to find your dream home in time, you can still use a mortgage in principle going forwards, providing you re-apply. After your original decision in principle expires in 30 to 90 days, you will likely have to re-apply for a new mortgage in principle, on new terms.

Some factors that could impact how easy and quick it is to renew your decision in principle include, but aren't limited to: changes to your income, and significant changes to the economy.

 

When it comes to property searching and dealing with finances, it can feel like a minefield. That's why we've created this guide to mortgage agreements in principle, and how long they last. Armed with this information, you can continue your search for the perfect property, knowing exactly what you can expect to be able to afford.

You should only ever take out a mortgage – or any type of loan – if you are sure you will be able to meet the scheduled repayments. Defaulting on mortgage repayments can damage your credit score and leave you in greater financial difficulty.

 


Can I Get a Mortgage on Universal Credit?

Making the decision to buy a house and apply for a mortgage is never something to be taken lightly. Choosing to take out a mortgage is a huge financial commitment that you need to make fully sure you are  ready for.

This decision can be made a little more difficult – or even taken out of your hands completely – if you are in receipt of Universal Credit. However, it is still possible to take out a mortgage if you are on Universal Credit as other factors influence lenders' decisions about providing mortgages.

Find out all you need to know about getting a mortgage if you are on Universal Credit with our Octagon Capital guide:

 

How To Get a Mortgage on Universal Credit

While it can be significantly more difficult to get a mortgage if you are on Universal Credit, it is not impossible. Not all lenders accept benefits towards an income, so it's important to find one that does. Once you have found a suitable lender who accepts Universal Credit towards your income, they will need to conduct various checks to make sure you are suitable for a mortgage product.

Lenders will assess your income amount and type – as they do with anyone applying for a mortgage – as well as your dependency on your Universal Credit payments. They are also likely to take into consideration if you are in receipt of any other types of benefits.

As with any loan products, it's absolutely essential to only ever borrow what you know you can afford to pay back – the same applies to mortgages.

mortgage

 

What Checks Will a Lender Conduct?

When attempting to ascertain whether or not you are a suitable candidate for a mortgage, the lender will assess your application against a number of criteria. They will be looking to see whether or not you will be able to repay the mortgage on time. This will include checking your income to see what it consists of, how reliable your income is, and how dependent you are on any benefits you may be in receipt of.

  • Your Income & Assets – Lenders will assess what your monthly income is, and what it is made up of. They will also be interested in any other assets you have. Here, additional income sources aside from Universal Credit and other assets will support your mortgage application.
  • How Much of a Deposit You Have – Your deposit amount can be the difference between a lender accepting your application or not. Smaller deposits such as 5% or 10% may prove difficult to sway a lender, but higher amounts such as 20% and beyond will work in your favour.
  • Which Type of Mortgage You Are Applying For – Certain types of mortgage may be easier to secure on Universal Credit. Some mortgages like Buy to Let don't usually have minimum income requirements.
  • How Dependent You Are on Universal Credit – Lenders will be interested in whether or not you are totally dependent on your Universal Credit payments to get by. If you aren't 100% dependent on them, and you have other sources of income, your chances of being approved for a mortgage will be higher.
  • If You Receive Any Other Benefits – Lenders will also want to know whether or not you are receiving any other benefits as well as Universal Credit. If you are receiving other benefits and you choose a lender that accepts benefits as a form of income, this can benefit your application.

 

While it is likely to be more difficult to take out a mortgage if you are on Universal Credit, it is certainly possible. To better your chances of being approved for a mortgage, opt for a lender who accepts benefits as a form of income.

You should only ever take out a mortgage – or any type of loan – if you are sure you will be able to meet the scheduled repayments. Defaulting on payments can damage your credit score and leave you in greater financial difficulty.


What Happens if a Couple Decides to Separate But They Have a Joint Mortgage?

When a couple decides it's best for them to separate, it can be an emotional and confusing time. What can make this situation even more tricky to deal with is if the couple have a joint mortgage. Adding in financial matters to an already difficult situation can seem daunting to say the least.

We've broken down everything you need to know about what happens to a joint mortgage when a couple separates in this guide.

 

What is a Joint Mortgage?

Before we get into what happens to a joint mortgage when a couple separates, we need to establish what a joint mortgage actually is.

Put simply, a joint mortgage is a mortgage that you take out with other people, whether they be a partner, friend, or family member. In a joint mortgage, all owners share a joint responsibility for making the mortgage repayments. It's a good idea to only ever take out a joint mortgage with someone who you know will be able to keep up the repayments, to avoid your credit score being damaged.

Am I Able to Stop Paying My Joint Mortgage After a Separation?

No, you should not stop paying your joint mortgage after separating from your partner. While it may be a highly emotive and stressful period in your life, it is essential that you keep on top of your scheduled joint mortgage repayments, so as not to negatively impact your credit score and your ex-partner's.

While your mortgage may be at the bottom of your list of priorities during a separation, it's important to continue with your regular payments. Unfortunately, the numbers don't take into account your personal circumstances when it comes to your credit rating. A low credit rating can make it more difficult to take out any kind of loan, not just mortgages, in the future.

 

Mortgage-cost
Dealing with the breakdown of a relationship is difficult enough without adding in financial matters such as a joint mortgage. Find out what options are available when a couple who has a joint mortgage decides to separate.

 

What Can I Do When My Partner and I Have Separated But We Have a Joint Mortgage?

When you and your ex-partner signed up for a joint mortgage, you each took on an equal share of the ownership of the property. This means that even in the case of a separation, both you and your ex-partner have the legal right to remain living in the property should you choose to do so. It also means that you are both liable to pay the mortgage.

Thankfully, you do have some options when it comes to your joint mortgage with an ex-partner. Here, we'll go through some of your options:

 

One Person Can Buy Their Ex-Partner out of The Mortgage

If one person is keen to remain living in the property and has sufficient funds to pay the mortgage repayments alone, they can buy their ex-partner out of the joint mortgage. In cases like these, it's important to contact your lender to make sure they are happy for this to happen, and for the mortgage to be moved into just one person's name. Before this can happen, checks similar to those before you took out your mortgage will likely be made, including making sure the person can afford to keep up the repayments by themselves.

The logistics of how one person buys the other out of the mortgage are largely individual, and depend on various factors, including whether you use a solicitor or not. If the former couple decide to split things evenly, they would work out how much of the mortgage has already been paid, and half this amount. This would then be added to the deposit amount paid by the other person initially, and paid to the individual.

To illustrate, if a former couple wanted to have one buy the other out of their joint mortgage, they would follow the steps outlined above. If they have paid £50,000 towards their mortgage in a 50/50 split and each paid a deposit of £10,000, one person would have to pay the other £35,000 (£25,000 + £10,000) to buy them out of the joint mortgage.

 

One Person Takes On The Mortgage with a Guarantor

If one person wants to remain in the property and buy the other out of the joint mortgage, but they cannot afford to do so alone, they can use a guarantor. In this instance, the guarantor (usually a friend or family member) will sign a declaration agreeing to pay the mortgage repayments should the individual be unable to do so. The guarantor will have to pass the affordability checks set out by your lender.

 

Pay Off The Mortgage and Move On

If you and your partner separate when you are close to paying off your joint mortgage, an option is to continue making your scheduled repayments to pay off the remainder of the mortgage, then split the profits. This is likely only a viable option if the former couple are on good terms.

 

Sell Your Property and Split The Proceeds

Another option for how to deal with a joint mortgage when a couple separates is to sell the property. Once the property has been sold, the ex-couple will need to pay off the remainder of the mortgage, and split any profits – or debt relating to your equity – between you equally.


What is a Housing Disrepair Claim?

Housing disrepair claims can be made against your landlord if any aspect of the property or building that you live in has not been fixed or upgraded and has caused detrimental issues to your health or quality of live. The process essentially involves seeking compensation from your landlord or property owner either through the court or via legal action.

When living in rent accommodation, the tenant has a right for the property to be in a certain condition and maintain a certain level of standard - and it is the landlord's responsibility to maintain this, unless there are viable e

Housing disrepair is defined as the ‘poor condition of a building or structure due to neglect’. This means that work needs to be carried out in order to make the property safe to live in, and can include problems such as lack of heating, mould, and broken toilets. If you rent and your landlord isn’t providing you with safe accommodation, you could be eligible to claim for housing disrepair compensation.

There are 76,814 “non-decent” properties in the UK, according to the English Housing Survey, and 1 in 7 Council Homes do not meet the National Standard. With the current cost of living crisis, more and more rentals are slipping under the minimum standards of safety. If your landlord is refusing to safely maintain your home, you could be entitled to claim compensation.

What is Housing Disrepair?

Housing Disrepair is when your landlord does not carry out repairs on your rented property, resulting in your home being of an unsafe living standard. Legally, by paying rent, tenants are entitled to a clean and safe property to live in. 

The definition of disrepair is broad, and it covers problems such as pests, dampness, mould, lack of heating, and unsafe floors and stairs. Any type of rental property is eligible, including flats, houses, council homes, and even Airbnb properties. 

Tenants renting homes in a state of disrepair may face ill consequences to their lives. For example, a house infested with mould can cause health problems, as well as damage to a tenant's personal belongings such as clothes and bedding. It could even leave rooms unusable. 

If your landlord is refusing to carry out necessary repairs, you can claim for Housing Disrepair. A lot of the time, court proceedings are not even required, as this process can put pressure on landlords to act quickly to do the right thing.

 

housing disrepair claims

 

Am I eligible to claim for Housing Disrepair?

You could be eligible to claim if your property hasn’t been safely maintained by your landlord and fall under any of these categories::

  • You rent a council house
  • You rent a housing association property
  • You are in private rented accommodation 

 

Living in unsafe properties can take a toll on tenants’ physical and mental health, which is a viable reason to claim for Housing Disrepair. This can include personal injury, medical bills, sickness from mould, or even depression. 

If you believe you fall under any of these categories, you could be eligible to claim for Housing Disrepair. You can also check here to see if you are eligible by filling out a short form.

 

How does it work?

You are legally entitled to live in a safe home. If you have already reported safety issues to your landlord which they have failed to fix, you could claim Housing Disrepair and force them to complete the work and potentially even win yourself financial compensation.

Before filing a claim, you must notify your landlord of the problem and then wait 21 days. This gives landlords time to rectify the problem on their own. Make sure to do this in writing (such as a text message or an e-mail) so that you have a record of it.

You must also collect evidence of disrepair. This includes photos, medical bills, professional reports from surveyors, and the aforementioned request to your landlord. Any proof you can collect might be helpful.

If your landlord has not started the process of fixing the property’s safety issues within the time period, you can claim for Housing Disrepair. A typical claim can take around 9 to 12 months, but larger or more complex claims can take up to a year, or a year and a half. The average amount of money rewarded is £1,200.

 


benefits of using a mortgage advisor

What are the benefits of using a mortgage advisor when moving house?

Summary: An informative and comprehensive guide that informs readers on the many reasons why it's beneficial to use a mortgage advisor when moving house, including to save stress and ensure that the process is completed correctly. Also includes statistics about mortgages in the UK.

Whether it's a first-time property or you're just moving from one property to another, moving house is an important milestone that can carry a lot of stress. That's why many people opt to employ the services of a local mortgage advisor. But why do so? Here are just a few of the various benefits of hiring a mortgage advisor when buying a property:

 

Saves you money

Mortgage advisors have an extensive network of contacts including real estate agencies, solicitors and more. This means that they can scour for the latest and best properties within your budget without resorting to going above budget. The best mortgage advisors not only find properties at low prices, but they also take into consideration all of the additional fees and find great deals so you can get as much as possible for your money.

 

Saves you time

Mortgage advisors are skilled at what they do. Successful mortgage advisors are backed by years of experience, which means they're incredibly proficient at their job. While the average house hunting period takes place for anywhere between 3 to 6 weeks, a mortgage advisor can help to lower this stage by finding properties through their network quickly and efficiently. Their specialist tools can take all of your requirements and circumstances into consideration to filter properties swiftly.

You can read more about the house hunting stage of buying a property here.

 

Saves you stress

Mortgage advisors have helped hundreds of clients buy houses over the years. They understand how stressful the house-buying process is and are on hand to help make the process as easy as possible for you. Hiring a mortgage advisor means the work that would normally have to be done completely by you can now be split between yourself and a professional backed by formal training and practical experience. They can also take care of the paperwork so there's no risk of incorrect applications.

 

Other benefits of mortgage advisors

Alongside the above benefits, mortgage advisors also:

  • Provide generalised financial advice
  • Know the best lenders in your local area
  • Chase up your application as deadlines approach

Whether you're buying a house with chain or no-chain circumstances, mortgage advisors can simplify and streamline the process. It's an extra cost to consider but it can be well worth the money due to the many benefits they offer.

 

Contact Octagon Capital now

If you need assistance with equity release on an existing property, get in touch with our team here at Octagon Capital today. We can help you release between 20-60% of your property's value to receive money in a single lump sum. We also offer services relating to development finance and can help you find a viable solution if you need to take out a bridging loan.


Which Mortgage Can I Afford?

The mortgage you can afford will depend on many different factors and will vary from borrower to borrower. Additionally, different lenders will have different lending criteria. Mortgage affordability is typically calculated based on monthly outgoings and income.

 

What Is a Mortgage?

A mortgage is a type of home loan and acts as an agreement between borrowers and lenders in which a property is used as a guarantee. Once the mortgage transaction is made, borrowers will receive money and agree to a repayment plan with interest paid back to the lender over a set time period. 

 

Mortgage-cost

 

What Mortgage Can I Afford?

Before taking out a mortgage, lenders will look at a borrower to see if they want to lend them the money. Through this process, they will take into account the following details:

  • Income
  • Monthly outgoing payments (including any debts)
  • The amount of savings available to put down as a deposit

Experts suggest that a good rule of thumb is for your total mortgage not to exceed 28% of your pre-tax monthly income.

 

How Important Is Salary When Determining What Mortgage I Can Afford?

There are different opinions when it comes to factoring in your salary when calculating your mortgage. Many recommend that mortgages should be based on around four times your annual income. However, it will also depend on your income source. A fixed monthly income will always be more compelling for lenders than someone whose monthly income is dependent on benefits. 

 

Mortgage-application

 

One of the most important factors that should be taken into consideration when calculating mortgage affordability is an individual’s “debt-to-income” ratio which is a person’s salary relative to the amount of debts they owe. Greater debts means a higher volume of monthly outgoing payments for an individual to pay. This in turn may mean they are less eligible for a mortgage or are subject to less favourable terms such as higher interest rates.

In addition to salary, the majority of lenders will require proof of employment with many specifying a minimum of two years of past employment. Individuals who are self-employed, between jobs or who are not in full-time employment will find it more difficult to demonstrate their financial history.

 

Will My Credit Score Impact Which Mortgage I Can Afford?

Lenders will look at credit score in order to evaluate if the borrower is a good candidate for a loan. Credit scores are based on spending history including any borrowing behaviour and can see whether an individual makes repayments on time and their amount of debt. The higher the credit score, the better someone is as a candidate for a loan. 

If you have a higher credit score, you may be more likely to be approved for a loan as it shows that you can reliably meet payments. This in turn may mean that you can qualify for better loan terms including better interest rates and fewer fees.

It is still possible to get a mortgage if you have a poor credit score, however it is usually more difficult and the terms tend to be less favourable.

 

Does the Amount of Deposit Affect Mortgage Affordability?

The standard down payment for a mortgage is 20% of the property’s value with 80% funded by the lender, but this varies between lenders and different mortgage products. If a borrower is able to put down a bigger deposit, it could save them money in the long term. It is also less of a risk for the lender meaning that they may be able to offer better loan conditions such as lower interest rates and shorter repayment period.

 


Mortgage-cost

How Much Does a Mortgage Cost?

The cost of a mortgage will depend on how much you have borrowed, the interest rate and the length of the mortgage term.

 

What Is a Mortgage?

A mortgage is a type of loan used to finance the purchase of a property. When buying a home, a buyer will need to put down a deposit and pay for the rest over a long-term payment plan with money borrowed from a bank or building society; this borrowed money is the mortgage. The mortgage is then paid back, plus interest, in monthly instalments over a fixed period of time.

 

Mortgage-repayments

 

There are different types of mortgage deals available, including:

  • Fixed-rate mortgages
  • Tracker mortgages
  • Discount mortgages
  • Offset mortgages 

The type of mortgage that you choose will depend on a few factors including the amount of deposit you are able to put down, the length of time you want to repay the mortgage, and how much you can afford to pay back per month.

 

What Is the Average Cost of a Mortgage in the UK?

According to a study carried out by Boon Brokers, the average UK mortgage payment is £723 with an average interest rate of 2.48%. However, there is a great deal of variation between different regions due to the difference in house prices.

 

What Factors Will Influence the Cost of a Mortgage?

Mortgage cost will be determined on a case-by-case basis, based on both the mortgage provider chosen and the personal circumstances of the borrower. In general, there are many factors that go into the decision of how much a mortgage costs.

 

Does-Credit-Score-Affect-Mortgages

 

Key factors are the type of mortgage that you choose (i.e. interest-only, repayment or a mix of the two), the length of the mortgage term and the interest rate. Additionally, the amount of deposit that a buyer is able to put down will have a big impact. The value of the property will also affect the cost of the mortgage.

 

What Mortgage Can I Afford?

Before taking out a mortgage, lenders will look at a borrower to see if they want to lend them the money. Through this process, they will take into account income, monthly outgoing payments including any debts and the amount of savings available to put down as a deposit.

Experts suggest that a good rule of thumb is for your total mortgage not to exceed 28% of your pre-tax monthly income.

 

How Do Mortgage Lenders Calculate How Much You Can Borrow?

The amount of money that you can borrow will depend on the amount of income you have as well as your monthly outgoings.

Lenders will typically determine the size of the mortgage based on total annual income, be it that of a sole applicant or combined annual income for joint applicants.

 

 

Generally speaking, the higher the annual income, the higher the amount that you can borrow although there is variation between lenders with some willing to offer up to as much as six times your salary.

 

Will My Salary Influence the Cost of My Mortgage?

The amount that salary influences mortgages will depend on the lender, with many operating on the basis that a mortgage should be around four and a half times your annual income.

Arguably more important than salary is the debt-to-income ratio that an individual has; this is the amount of monthly debt they have relative to the amount of income they receive. If a borrower has more outgoings than incomings, it shows that a mortgage may not be affordable for them.

Along with income, a lot of lenders will require a borrower to show proof of employment, factoring in the amount that they earn as well as how long they have been in that position. For that reason, those who are self-employed, between jobs or who are not in full-time employment may find it more difficult to secure a mortgage.

 

Can Poor Credit History Make My Mortgage More Expensive?

Credit score is an important factor when trying to secure a mortgage; lenders will look at this in order to determine if the borrower is a good candidate for a loan. Credit scores are based on spending history including any borrowing behaviour and can see whether an individual makes repayments on time and their amount of debt. If an individual has a higher credit score, they will typically be a better candidate for a mortgage.

 

Calculating-credit

 

If you have a higher credit score, you may be more likely to be approved for a loan as it shows that you can reliably meet payments. This in turn may mean that you can qualify for better loan terms including better interest rates and fewer fees.

You could still secure a mortgage if you have no credit history or a poor credit score but it may be more difficult and also may be subject to less favourable rates.

 

Are Mortgages Cheaper With a Higher Deposit?

The standard deposit amount for a mortgage is 20% of the property’s value with 80% funded by the lender, but this varies between lenders and different mortgage products. Normally, if a borrower can put down a bigger down payment, it could save them money in the long term. It is also less of a risk for the lender meaning that they may be able to offer better loan conditions such as lower interest rates and shorter repayment period.